Min 09/21/1982 443
Wichita Falls, Texas
Memorial Auditorium Building
September 21 , 1982
Items 1 & 2
The Board of Aldermen of the City of Wichita Falls, Texas met in regular
session on the above date in the Council Room of the Memorial Auditorium Building
at 8:30 o'clock A.M. , with the following members present.
Gary D. Cook Mayor
Gene Shearman
Carol G. Russell
Craig A. Wilson Aldermen
Howard M. Morris
Horace 0. Boston
Stuart Bach City Manager
H. P. Hodge, Jr. City Attorney
Wilma J. Thomas City Clerk
Fred Werner Chief Accounting Officer
John W. Hampton Absent
The invocation was given by Jack Dial , Evangel Temple Assembly of God Church.
Item 3
Moved by Alderman Shearman that minutes of the meeting held September 14, 1982,
be approved.
Motion seconded by Alderman Morris, and carried unanimously.
Moved by Alderman Russell that minutes of the meeting held September 7, 1982,
be approved.
Motion seconded by Alderman Shearman, and carried unanimously.
Items 4a - 7d
Item 5a was moved to the regular agenda.
Moved by Alderman Morris that the remaining items on the consent agenda be
approved.
Motion seconded by Alderman Shearman.
Item 4a
ORDINANCE NO. 88-82
ORDINANCE CLOSING, VACATING, AND ABANDONING A FIFTEEN (15) FOOT UTILITY
EASEMENT LYING ADJACENT TO AND SOUTH OF THE NORTH PROPERTY LINE OF
LOT 29, BLOCK 3, KEMP AND NEWBY SUBDIVISION, AN ADDITION TO THE CITY OF
WICHITA FALLS, TEXAS.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Item 6a
The bid for an annual supply of anhydrous ammonia for water purification
was awarded to Texhoma Ag-Prod, Iowa Park, in the amount of $17,400.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
r
444
Item 7a
Minutes of the meeting of the Park Board held August 26, 1982, were received.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Minutes of the meeting of the Plumbing Advisory Board held September 1 , 1982,
were received.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Minutes of the meeting of the Board of Electrical Examiners held September 9,
1982, were received.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Minutes of the meeting of the Planning Board held September 8, 1982, were
received.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Item 5a
A proposed resolution was presented authorizing the City Manager to execute
one-year lease extensions to Rio Airways and Metroflight at the Municipal Airport.
RESOLUTION NO. 157-82
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE
EXTENSIONS OF ONE YEAR, AT CURRENT RATES, WITH RIO AIRWAYS, INC. AND
METROFLIGHT, INC. AT WICHITA FALLS MUNICIPAL AIRPORT.
WHEREAS, the City and Rio Airways, Inc. entered into an agreement and lease of
premises at Wichita Falls Municipal Airport, dated October 1 , 1980, for a term
expiring September 30, 1982; and,
WHEREAS, the City and Metroflight, Inc. entered into an agreement and lease of
premises at Wichita Falls Municipal Airport, dated October 1 , 1980, for a term
expiring September 30, 1982; and,
WHEREAS, the parties to such agreements desire to extend each of the above
agreements and leases for one year, so that each shall expire September 30, 1983.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
Such one year extensions of said two agreements and leases of premises, at
current rates, are hereby approved, and the City Manager is authorized to execute
instruments so extending such agreements and leases.
Moved by Alderman Boston that Resolution No. 157-82 be passed.
Motion seconded by Alderman Shearman.
Alderman Wilson asked why we are willing to do this at the current rates since
it is the third year? City Manager Stuart Bach stated that it is because of our
concern with industry and the economy.
Jack Griffin, Acting Director of Traffic and Transportation, stated that the
airlines are in dire straits, and we have budgeted to have an ending balance next
year. The airport will be completely self-supporting next year. The City Manager
stated that we would not want to make our space so expensive that it would make it
hard on the carriers at the airport.
Alderman Wilson felt that it would be unwise to lock ourselves into these
rates when we know our costs will be going up.
445
Item 5a, cont'd.
Mayor Cook expressed his concern that we should not subsidize these air
carriers at the cost of the taxpayers.
The City Manager stated that the costs are going up, but the revenues
we will be receiving will be paying for these costs.
The motion was carried by the following vote.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Morris and Boston
Nays: Alderman Wilson
Item 8a
Bids were opened on an oil and gas lease at Lake Kickapoo. Bids were
received from Burns Leasing Corporation, L & H Oil Company, and Leslie Finnell .
City Attorney H. P. Hodge, Jr. explained that they could either award the
bid today, or defer it to a future meeting if they needed to study the bids.
Jimmy Horany, of L & H Oil Company, stated that he believed it would be
legal to accept the alternate bid he submitted on Tract 2 for 1/8 Royalty since
he was the highest bidder on another tract.
Moved by Alderman Shearman that this matter be tabled until the next
regular meeting for further study.
Motion seconded by Alderman Morris, and carried unanimously.
Item 9a
A proposed ordinance was presented, changing the electrical code of the city.
ORDINANCE NO. 89-82
AN ORDINANCE AMENDING ORDINANCE NO. 2326 (THE 1967 ELECTRICAL CODE OF
THE CITY OF WICHITA FALLS) ALTERING THE MEMBERSHIP AND TERMS OF OFFICE
OF THE BOARD OF ELECTRICAL EXAMINERS, REQUIRING AVAILABILITY OF MASTER
ELECTRICIANS TO ELECTRICAL INSPECTOR, PROVIDING FOR MASTER ELECTRICIAN'S
LICENSE EXAMINATIONS, INCREASING APPLICATION FEE FOR MASTER ELECTRICIAN'S
LICENSE, INCREASING LICENSE FEE FOR MASTER ELECTRICIANS'S, INCREASING RE-EXAM-
INATION FEE FOR MASTER ELECTRICIAN'S LICENSE, PROVIDING FOR RENEWAL FOR MASTER
ELECTRICIAN'S LICENSES HELD BY PERSONS WHO HAVE NOT OBTAINED PERMITS
WITHIN A ONE-YEAR PERIOD PRIOR TO THE LICENSE RENEWAL DATE, INCREASING
RENEWAL FEE FOR MASTER ELECTRICIAN'S LICENSE, DELETING CLASSIFICATION OF
"INDUSTRIAL ELECTRICIAN", PROVIDING FOR RENEWAL OF EXISTING INDUSTRIAL
ELECTRICIAN' S LICENSES, PROVIDING FOR JOURNEYMAN ELECTRICIAN'S LICENSE
EXAMINATIONS, INCREASING APPLICATION FEE FOR JOURNEYMAN ELECTRICIAN' S
LICENSE, INCREASING RENEWAL FEE FOR JOURNEYMAN ELECTRICIAN'S LICENSE,
INCREASING LICENSE FEE FOR JOURNEYMAN ELECTRICIANS, PROVIDING WHO MAY
SUPERVISE APPRENTICES, TRAINEES OR HELPERS, INCREASING ORIGINAL REGISTRATION
AND RENEWAL FEES FOR MAINTENANCE ELECTRICIANS, DEFINING TERM "ACTUAL
SUPERVISION" , DELETING DEFINITION OF "INDUSTRIAL ELECTRICIAN" , PROVIDING
FOR INSTALLATION OF UNDERGROUND BRANCH CIRCUIT CABLE, PROVIDING FOR
ISSUANCE OF TEMPORARY SERVICES PERMITS, INCREASING FEE OF INSPECTION
OF ELECTRICAL WORK AND PROVIDING INSPECTION CHARGES FOR NEW CONSTRUCTION
RESIDENTIAL ELECTRICAL OUTLETS AND BATHROOM, SPACE OR SUPPLEMENTARY
RESISTANCE HEATERS.
Moved by Alderman Shearman that Ordinance No. 89-82 be passed.
Motion seconded by Alderman Morris.
Alderman Morris asked why the electrical board recommended the $200 fee,
and the staff recommended another? He would like to know the rationale of
the electrical board?
4aA
Item 9a cont'd.
Tommy McCulloch, Chairman of the Board of Electrical Examiners , stated
that they felt the fees were minimum, and they found that other cities were
using higher fees. They felt like it was outdated, and should be upgraded.
They feel that the inspectors are under-paid, and this is one way to upgrade
it. There were several other things they also changed.
Alderman Shearman noted that the Board was unanimous in their recommendation
to the Council .
Alderman Wilson asked if the electrical fees were passed on to the user?
Mr. McCulloch stated that the examination fee is a one-time fee.
Mayor Cook thanked the Electrical Board for their many hours of thought
given to this ordinance.
vote.The motion for passage of Ordinance No. 89-82 was carried by the following
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Item l0a
A proposed resolution was presented authorizing a contract with Child Care,
Inc. , for day care services.
RESOLUTION NO. 158-82
A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT WITH CHILD CARE, INC. FOR PROVISION OF DAY CARE SERVICES.
WHEREAS, the need for continuance of the day care services was advocated
during development of the Community Development Block Grant 1982-83 Final
Statement of Community Development Objectives and Projected Use of Funds; and,
WHEREAS, Child Care, Inc. submitted a proposal to provide day care
services in the Martin Luther King Center; and,
WHEREAS, the Board of Aldermen agreed to provide a maximum of $89,000.00
from FY 1982-83 Community Development Block Grant program funds; and,
WHEREAS, the negotiation of an agreement with Child Care, Inc. will
provide for the day care services in the Martin Luther King Center.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
The City Manager is authorized to execute a contract, a copy of which
is attached hereto, with Child Care, Inc. for the provision of the day care
services in the Martin Luther King Center for an amount not to exceed
$89,000.00.
Moved by Alderman Shearman that Resolution No. 158-82 be passed.
Motion seconded by Alderman Russell .
Mayor Cook noted that there is a waiting list of children for this facility.
They provide an outstanding service for single parents and those parents who
lack skills to be able to receive training for the work force. He wondered how
they know if the parent is still working.
Margaret Stewart, Executive Director of Child Care, Inc. , stated that the
parent signs an agreement that they will tell them if there is any change in
their family, ,job, etc. They routinely check them every six months. It is
also partly a matter of trust. She stated that they have seen a number of
success stories where the families are able to become totally self-sufficient.
Not all are this successful , however. They have 20-25 children on their
waiting list.
447
Item 10a, cont'd.
Alderman Boston asked if they could provide the same care with the $6,000.
reduction in City funding? Mrs. Stewart stated that they can because they will
be charging the parents more, and the City will not have to contribute as much.
They are collecting a higher rate from the parents than they thought they could.
Item 10b
A proposed resolution was presented authorizing the City Manager to increase
the public official liability insurance limits.
RESOLUTION NO. 159-82
RESOLUTION AUTHORIZING THE CITY MANAGER TO INCREASE THE PUBLIC OFFICIAL
LIABILITY INSURANCE FROM A $1 ,000,000 LIABILITY TO A $5,000,000.
LIABILITY LIMIT.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS
THAT:
The City Manager is authorized to increase the liability limits of the public
official liability insurance from $1 ,000,000 to $5,000,000.
Moved by Alderman Boston that Resolution No. 159-82 be passed.
Motion seconded by Alderman Shearman.
City Attorney H. P. Hodge, Jr. noted that it is infrequent that we have
liability cases, but it just has to happen once, and the liklihood of it coming
up is very real .
Risk Manager, Mark Wilson explained that public officials include Council
Members, City Manager, all directors, police chief, with certain exceptions, all
commissions of the city, and other city employees.
Mayor Cook asked if this is in accord with the Texas Municipal League's
liability insurance program? The City Manager stated that it is similar;
however, it is not their program.
Alderman Shearman asked if we really need $5 million dollars? The City
Manager and City Attorney agreed that this measure of protection is needed. We
have only had two suits here, but across the state it has been substantial .
Ed Barrett, Director of Administrative Services, stated that he talked with
Dave LaBrec at the Texas Municipal League, and it is multiplied by the number of
officials. We are not in the TML plan because we would also have to be in their
workmen's compensation plan.
The motion was carried by the following vote:
Ayes: Mayor Cook, Aldermen Russell , Wilson, Morris and Boston
Nays: None (Alderman Shearman was out of the room. )
Item 10c
A proposed resolution was presented authorizing the City Manager to execute
an agreement with Joe Nall for a gas rate analysis.
RESOLUTION NO. 160-82
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH JOE M. NALL & ASSOCIATES, INC. FOR PERFORMANCE OF AN
ANALYSIS OF THE RECENT LONE STAR GAS COMPANY RATE INCREASE REQUEST.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS,
TEXAS, THAT:
Certain agreement, a copy of which is attached hereto, between the City of
Wichita Falls and Joe M. Nall & Associates, Inc. for performance of an analysis
of the recent Lone Star Gas Company rate increase request, is hereby approved,
and the City Manager is authorized to execute the same for the City of Wichita Falls.
448
Item 10c cont'd.
Moved by Alderman Morris that Resolution No. 160-82 be passed.
Motion seconded by Alderman Russell .
Mayor Cook noted that it was his understanding that Lone Star Gas Company
indicated last year that Joe Nall was inexperienced in gas rate studies, and the
Council had to award something higher than he recommended. Also, that the Council
may have awarded a higher rate to forestall any future rate request increase.
City Manager Stuart Bach stated that Mr. Nall has done several hundred studies,
and that he was a candidate for a member of the Public Utilities Commission. City
Attorney H. P. Hodge, Jr. stated that last year was the first time we had used
Mr. Nall on a gas rate study.
Mayor Cook noted that the study would be for a fee not to exceed $14,899. It
was noted that the study last year involved more than just a rate study. It also
involved operating efficiencies.
The motion was carried by the following vote.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Item 10d
A proposed resolution was presented authorizing execution of a lease agreement
for a boat launching facility at Lake Arrowhead.
RESOLUTION NO. 161-82
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE
AGREEMENT WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT FOR THE PROPOSED
BOAT LAUNCHING FACILITY AT DEER CREEK PARK AT LAKE ARROWHEAD.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS,
THAT:
That certain lease agreement, a copy of which is attached hereto, between the
City of Wichita Falls and the Texas Parks and Wildlife Department for the proposed
boat launching facility at Deer Creek Park at Lake Arrowhead is hereby approved,
.and the City Manager is authorized to execute the same for the City of Wichita Falls.
Moved by Alderman Shearman that Resolution No. 161-82 be passed.
Motion seconded by Alderman Russell .
Alderman Shearman asked how many launching ramps we have at Lake Arrowhead?
Bill Hursh stated that there are four, besides the State park.
City Manager Stuart Bach stated that this request came from Field and Stream.
This is the same one that was requested last year. The State required that we pick
up trash and debris. We are keeping it up now. There are eight boat launching
facilities at the State park.
Alderman Shearman stated that he hates to see us put $23,000 in something when
in the long run, it will cost us to keep up this facility when sportsmen will be
using it. It is not very sportsman to be littering.
The motion was carried by the following vote.
Ayes: Mayor Cook, Aldermen Russell , Wilson, Morris and Boston
Nays: Alderman Shearman
449
Item 1Oe
A proposed resolution was presented authorizing a contract for fleet
liability and general liability claims.
RESOLUTION NO. 162-82
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH GAB BUSINESS SERVICES, INC. , PROVIDING
FOR THE ADJUSTMENT OF FLEET LIABILITY AND GENERAL LIABILITY CLAIMS.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS,
TEXAS THAT:
That certain contract, a copy of which is attached hereto, between the City
of Wichita Falls and GAB Business Services, Inc. , providing for the adjustment of
fleet liability and general liability claims, is hereby approved, and the
City Manager is authorized to execute the same for the City of Wichita Falls.
Moved by Alderman Shearman that Resolution No. 162-82 be passed.
Motion seconded by Alderman Russell .
Alderman Shearman asked if we are getting a price break on this? Mr. Bach
stated that we didn't.
Mark Wilson stated that GAB was the only one willing to bid it on a per
occurrence fee, or flat fee. We have not asked for bids, but we have asked for
quotations. The others quoted per photograph and per mile travel . Only GAB
and Crawford and Company would quote. You could not compare them because GAB
quoted on a flat fee, and the other did not.
Mayor Cook encouraged the staff to contact other companies in and outside
the city to see if someone would be interested in offering those services in
the future.
The motion was carried by the following vote.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston
Nays: None
Item 10f
Discussion was held on a proposed resolution concerning a revised service
agreement with Plumlee Ambulance.
A motion was made by Alderman Russell , and seconded by Alderman Boston,
for discussion purposes, that the proposed resolution be passed.
City Manager Stuart Bach stated that Plumlee had made a request several
months ago to all entities for an increase in subsidy. Two accountants were
sent to Weatherford to audit their books. They also checked the medicare costs.
Plumlee only receives 45 percent of the costs paid by medicare. They have
experienced a $100,000 loss. He is recommending an increase in subsidy in the
amount of $176,000. The City's share would be $73,920. They are also requesting
a change in their fiscal year so that it will allow budget requests to be
prepared in conjunction with the City's budget.
Mayor Cook asked why there would be a $100,000 loss on a multi-jurisdiction
agreement? The City Manager stated that the initial bid was not based on the
fullest of information, plus the medicare and medicaid situation.
Joe Plumlee stated that there were no financial records available to look
at. There are 17 nursing homes in Wichita Falls. Thirty percent of their business
is from nursing homes to doctor's offices. Medicare does not pay one penny of
this. There is a tremendous loss on nursing home care to the physician's office.
Mayor Cook asked why they did not bill the nursing home? Mr. Plumlee stated
that they are not responsible. Mayor Cook asked if this could not be worked out
as part of the overall cost of providing care to the patient? Mr. Plumlee stated
that the doctor, rather than the nursing home, orders the ambulance to take them
to his office.
450
Item 10f, cont'd
Mayor Cook noted that there are 162 non-emergency calls per month. Mr. Plumlee
noted that 30 percent of these calls are to and from doctors' offices. He also 4
noted that there is no difference in insurance rates for emergency and non-emergency.
Mayor Cook asked if that part of his business (transfer business) were awarded
to someone else, how would that impact his business - negatively, positively, or no
difference? Mr. Plumlee stated that if you take away what profit we do receive
from it, it would affect their costs at the end of the year.
Mr. Plumlee admitted that their rates are higher than in some other cities.
In November they plan to lower them. He stated that one-way rates for a transfer
are $80.00 and $125.00 for an emergency. Alderman Shearman asked how he arrives
at the cost per call ? Mr. Plumlee explained that he divides the expenses by the
number of calls. -
It was noted that the City of Wichita Falls owns two ambulances. Plumlee owns "
three on a lease-purchase. The two city-owned ambulances cost $43,000. Alderman
Shearman asked what our in-kind contributions are to provide fire stations for
these ambulances? The- City Manager stated that the in-kind contributions will be
there anyway. This would provide him space to improve response time to the citizens.
Mayor Cook stated that he is comparing Plumlee with Gold Cross. What would
it cost Gold Cross to rent facilities like the fire stations? The City Manager
stated that they agreed to let the company set the rates. We have to decide
whether we pay more in subsidy or rates? Mr. Plumlee stated that the two separate
fire stations were not his idea. He further stated that his request for a subsidy
is not based on the new rates, but on the old rates.
Moved by Alderman Shearman that this matter be tabled for further study.
Motion seconded by Alderman Wilson, and carried by the following vote.
Ayes: Mayor Cook, Aldermen Shearman, Russell , Wilson, Morris and Boston.
Nays: None
Item lla
Bids were considered on a portable air compressor for the Street Division.
Moved by Alderman Morris that the bid be awarded to Cessco Rental and Supply,
Wichita Falls, in the amount of $8,125.
Motion seconded by Alderman Shearman, and carried unanimously.
Item 12a
Permission was requested to advertise for bids for a 1000 gpm. Fire Department
pumper.
Moved by Alderman Shearman that authority be granted to advertise for bids,
as requested.
Motion seconded by Alderman Russell .
Fire Chief Jameson stated that there will be a pre-bid conference on the
specifications.
The motion was carried unanimously.
Item 13 a, b
There was no other business, and the Board of Aldermen recessed at 10:03 A.M.
to go into executive session pursuant to Article 6252-17, paragraphs (e) and (g)
of the Revised Texas Civil Statutes.
The Board of Aldermen reconvened at 11 :03 A.M. , and immediately adjourned.
451
Items 13 a, b cont'd.
PASSED AND APPROVED this �'1 day of 1982.
Z.":'z-
D. Mayor
ATTEST:
I �
Wilma J. Thomas, City Clerk
I
,_,_�
,,
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AGREEMENT EXTFNDINC V REEMFNT F dD LEASE OF PREMISES AT
WICHITA FALLS MUNICIPAL AIRPORT WITH
RIO AIRWAYS , INC.
WHEREAS, the City of Wichita Falls and Rio Airways , Inc. entered
into an agreement and lease of premises at Wichita Falls Municipal
Airport dated October 1, 1980, for a term expiring September 30, 1982 ,
and,
WHEREAS , the parties desire to extend such agreement and lease
for a period of one year.
NOW, THEREFORE, the parties hereto do hereby agree that such
r
agreement and lease is extended for a period of one year, so that
it shall expire September 30 , 1983 ; all other terms and conditions
of such agreement and lease of premises shall remain unchang
ed. �
DATED this the 21st day of September, 1982 . k
I `
CITY OF WICHITA FALLS
I
I
B I y
Y• i
City Manager _
'ATTEST : '
i
City Clerk
RIO AIRWAYS , INC.
By:_
President
ATTEST:
Secretary
i
f
AGREEVENT EXTENDING AC,PFFMrNm AND LEASE OF PP,EMISES AT
WICHITA FALLS MUNICIPAL AIRPORT WITH
MFTROFLIGHT, INC.
WHEREAS , the City of Wichita Falls and Metroflight , Inc. entered
into an agreement and lease of premises at Wichita Falls Municipal
Airport dated October 1, 1980 , for a term expiring September 30 , 1982 ,
and,
WHEREAS, the parties desire to extend such agreement and lease
for a period of one year.
NOW, THEREFORE, the parties hereto do hereby agree that such
r
w
agreement and lease is extended for a period of one year, so that
it shall expire September 30 , �• other terms and 1983 all n conditions
I t
Of such agreement and lease of premises shall remain unchanged.
r
DATED this the 21st day of September, 1982 .
II
kI
CITY OF WICHITA FALLS
F
By:
i
City Manager
ATTEST:
City Clerk
METROFLIGHT, INC.
By:
Vlce President/General Manager
ATTEST:
Secretary
Page of page
A4
MUNICIPALITY WORK ORDER DATE: September 1, 1982
CLIENT: City of Wichita Falls
Mr. Stuart A. Bach, City Manager
ADDRESS: P.O. Box 1431
Wichita Falls, Texas 76307
PROJECT: Gas Rate Analysis and Recommendation
JMN Job No. 20-82-GC
SCOPE OF SERVICES:
To provide expert assistance to the City of Wichita Falls in analyzing the Lone
Star Gas Company's request for rate relief in furnishing domestic gas service.
These services are to be provided at the direction of the City Manager and shall
include, but not be limited to: Analyses of the applications and requests of Lone Star
Gas Company for the determination of the proper rate base, revenues and expenses, and
rate of return that should be utilized in determining fair and equitable charges for
domestic gas consumption in Wichita Falls. .
The Consulting Engineer's findings and recommendations shall be set forth in a
written letter-type report to the City of Wichita Falls within a reasonable period of
time not to exceed ten weeks after all necessary underlying records, documents and other
information supplied by the Gas Company to the City of Wichita Falls have been reviewed
by the Consultant. If the Gas Company will submit their meter consumption record for
12 months on computer tape, then all rate structures recommended will be block analyzed
to assure coverage of revenue requirements.
The Consulting Engineer shall make available to the City expert witness with con-
siderable experience in gas utility rate making to present testimony.
BILLING AND ACCOUNTING DATA:
For services rendered, the Client shall pay Joe M. Nall & Associates, Inc. , Con-
sulting Engineers, upon submission of monthly invoices, an amount equal to the actual
hours of services furnished multiplied by the product of the Consulting Engineer's
established hourly salary cost. This expense shall come from current revenue or from
taxes which the municipality agrees to levy for the purpose of paying the same or from
the utility requesting change in the rate ordinance.
In addition, the Client shall reimburse the Consulting Engineer each month at
cost for all out-of-pocket expenses directly chargeable to the work.
The work of this agreement will be accomplished in accordance with the Standard
Fee Schedule at a fee and expense limit not to exceed 14,8
9 .00
ization from the City in the form of a signed amendment ofextennsionhofttheior workuorder.
APPROVED FOR:City of Wichita Falls APPROVED FOR: Joe M. Nall & Associates, Inc.
BY: �.
i le BY: 6_1
esident
DATE:
---------------
Paae 6 of 6 Pages
iA' e
Summary of Proposed Natural Gas Rate Study
City of Wichita Falls
The scope of the services would include a determination of:
A. The reasonableness of local service revenues, operating and main-
tenance expenses, allocations of division and/or regional expenses,
depreciation expenses claimed and the rates and schedules applied
to same, income tax liabilities claimed, interest expenses and in-
vestment tax credits and other relevant income and expense items.
B. The reasonableness of application of proper allocations, on a pro
forma basis, to expenses and income.
C. A reasonable rate base upon consideration of original cost, working
capital , construction work in progress, current cost new, reason-
ableness balances, adjustments for age and condition and other per-
tinent factors pertaining to used and useful plant in service.
D. A reasonable rate of return based upon debt capital costs, interest
costs, equity capital and other pertinent factors pertaining to the
Gas Utility' s financial integrity.
E. The revenue requirements and recommended rates and rate structures
needed to meet those requirements.
Study Requirements
The ability of the gas system to meet its near term financial obligations
will require an individual determination in five study areas:
1. Reasonable operating expenses incurred and revenues being provided
under known conditions with present rates.
a) Determine the reasonableness of local service revenues, operat-
ing and maintenance expenses, allocations of division and/or
regional expenses, depreciation expenses claimed, income tax
liabilities claimed, interest expenses and investment tax
credits; and
b) Check the allocations to expenses and income and determine if
the application is proper and reasonable.
2. Value of the Company's property used and useful in providing gas
service.
a) Find the Plant's original cost and depreciation;
Paae 3 of 6 Pages
1.
Agenda Item ro. lo.c.
A,4
b) Determine the plant's current cost, age and conditions; and
c) Develop the allowance for working capital and make other rate
base adjustments.
3. Sufficient rate of return to allow Company to compete in money
market and to avoid confiscatory rates.
a) Find the imbedded interest rate on debt and on preferred stock;
and
b) Determine a fair percent allowance for the equity portion of
Invested Capital .
4. Specific rate schedules for various classes of service.
a) Find the cost of service requirements by functional class,
b) Determine the needed rate structure, and
c) Analyze both step and flat rate structures,
d) Recommend the necessary rates to meet the revenue require-
ments of each class,
e) Verify the tax and gas cost adjustment factors.
/ 5. Level of gas service being furnished.
a) Investigate the operational efficiency and determine if pru-
dent measures are followed; and
b) Determine if the maintenance program carried out by the-
utility is both frugal and in the best interest of the con-
sumer.
Cost of Service Allocations
For a test year, provide cost and service characteristics, estimated to
be representative for a period to be covered by the initial revenue adjustment.
1. Estimate on the basis of recorded customer use data, the relative
responsibility of each customer class for system capacity, quantity
of service taken, and customer elements based upon local experience
and conditions.
2. Distribute the cost of service to be allocated to functional cost
components to the various customer classes on the basis of relative
responsibility of each class for service provided as determined.
2. Page 4 of 6 _ Pages
T___.3_ --
t,
3. Estimate the revenue under existing schedule of rates anticipated
from each customer class. Compare such revenue with the distrib-
uted functional cost of service and determine the adjustment in
revenue for each class required to equitably recover total cost of
service from the respective classes.
Rate Schedule Construction
For the representative test year for which cost of services studied
and allocated:
1. Construct a schedule of rates for gas service which will produce
the revenue required and equitably place the burden of cost on
each customer class and consumption group. Design of the rate
schedule would include consideration of the rate structure and
unit cost of service. The equity of each rate and the revenue
produced would be documented.
2. Varify the reasonable application of the systems gas cost adjust-
ments based on their own estimates of use in advance.
Miscellaneous Fees and Charges
Based on current policies and procedures and cost:
1. Review the current fee for appliance service, gas light service,
air conditioning service, and yard line repair and replacement
service. Recommend a level of fee to reflect current conditions
or discontinue them, but in no instance allow these services to
be subsidized by other fees.
2. Consider the desirability of removing the Gas Main Extension Rate
with recommended safeguard to the over building of gas plant.
Comparisons of Typical Bills for Gas Service
Make comparisons for typical bills for gas service.
1. Comparison of typical bills for gas service under the existing
schedule of rates with bills which would result from the schedule
of rates derived in this rate study.
2. Obtain schedules of rates for gas service which are currently in
effect in other cities with conditions similar to those of Wichita
Falls. Make comparisons of typical bills for gas service in other
cities with bills under Wichita Falls existing schedule of charges
and with bills that would result from schedule of rates derived
in this rate study.
3. Pacre 5 of 6 Paaes
Agenda Item No. 1O.c.
GABContract Services
Form 449 (9181)
Tailored Especially for
City of Wichita Falls Texas
P.O. Box 1431
Wichita Falls Texas Z3307
Attn: Stuart A.
Contract for
Administrative Investigative and Adjustment
I�
and General Liabilittcl_ i I'
I
Period October 1 1982 through September
covering Losses and Claims ® occurring ❑ reported during period ji
Price
Auto Liability - $128.50 per occurrence
General Liability $150 50 per occurrence
Premium Base Rate of % X I
Deposit payments of
monthly. Final payment
Deferred to !
Territory City of Wichita Falls Texas
Account(s)
Customer Contact City of Wichita F d1s,
Address
Telephone
GAB Account Executive
Dallas Texas
Telephone ?1 n 526 79�71
GAB Office -
Renewal Agreement To be ne oti d
Terms: GAB Business Services, Inc., 123 William Street, New York
New York 10038 (hereinafter referred to as GAB) agrees
i
Contract Continuation Page_ ot_l4
CABContract Services
to provide all its usual administrative, investigative and adjustment services to City of
Wichita Falls in connection with Auto Liability and General Liability claims during a
period of one (1) year commencing with October 1, 1982 through September 30, 1983, in
accordance with the requirements of any regulatory authority having jurisdiction.
1. In consideration of the contract agreement, GAB agrees to provide all its usual
administrative, investigative and adjustment 'services with no additional charge,
except for the following:
a. City attorney will provide all defensev,,ii be t services,
sforlther paying forcih
office or outside counsel, and ,City responsible
services.
b. City of Wichita Falls agrees to pay the cost of all experts and professional
assistance required to investigate and adjust claims. All such costs shall
have the prior approval of the City.
C. GAB may submit any invoices or request for payment of fees of attorneys,
experts and other professional assistance as described in la and lb above, to
City of Wichita Falls for payment approval. If so instructed by City' of
Wichita Falls GAB will make payment as outlined in paragraph 4A. Spch
expenses shall be classified as "allocated expenses" defined as legal fees,
court costs, independent medical examinations, and such other professional
assistance as is necessary to properly handle all matters assigned to GAB
_ and which it is not possible or feasible for GAB to provide with its bwn
personnel. No such expenses shall be incurred without prior approval of the
City. Allocated expenses, when paid by GAB, will be shown on draft copies
as expense items.
2. GAB will forward its recommendations regarding claim payments to the Cit� of
Wichita Falls for final disposition including payment.
3. Additional services included in this contract for service are as follows:
a. GAB will provide a Key Account Representative at Wichita Falls, Texas.
Key Account Representative will provide liaison between City of Wichita
Falls, their representatives-and GAB.
4. The contract price payable to GAB shall be determined in accordance with the
following:
a. GAB's charges shall $128.50 per occurrence for Auto Liability, and $150.50
per occurrence for General Liability claims. The customer will be billed for
each individual file and bill will be submitted with closing report. Customer
will pay each invoice as submitted.
i
' Contract Contfnuatlon VaAe�_ of--4
Contract Services
agreeme
nt
b. It is mutually agreed and understood
that
Cityiog W ch t Falls the term of hn connection
GAB is the only claims administrator the
All new notices of such claims terms
with Auto Liability claims. GAB of
of this agreement
willbnvestigatiforwardved and ladjuo o purpose
adjustment ser
vices, and City of
providing administrative, n new
Wichita Falls shall not administer
such
new
personclaims
other f than GAB,or aexcgept ng
notice to any claims administrator or
cases where there is apparently no liability on the part of City and these
isk
cases will not be assigned to anyone except City attorney or nce forwarded to GAB more than
Management Administrator. Any occurrence
30 days after date of loss shall be handled on a Time and Expense bass per
GAB prevailing pricing schedule.
either
C. GAB shall at reasonable
througes andh itsng normal accountants orness auditoors, have',the
through its own
right to inspect the books and records of City of Wichita Falls for the tole
purpose of verifying total number of claims.
5. The contract covers the initial period of twelv
e 12) months stated herein. I'Any
continuation or renewal shall be the subject of of WichitarFallhall
negotiation
exercise h,e of
parties. If the contract is not renewed, City
the following options:
a. City of Wichita Falls may require GAB to concludethe handling of all ppen
claims occurring during the contract period.
City of Wichita Falls may require GAB to return all open files ate the
b.
expiration of the contract.
ade
6, At the conc
lusion of the terms of this contract, an accounting shall rrbe of the
subject to paragraph 3a of the amount due either party under the
contract but in no event shall the payment of the amount due either party be
st 31, 1984.
deferred beyond Augu
7, Indemnity Agreement - City of Wichita Falls agrees that it will defend and
indemnify GAB against all claims, demands, proceedings, actions, damages, costs,
and expenses to which GAB may be subjected as a consequence of fulfilling its
obligations under this agreement, if not caused edy the willful by the willful misco nduct or
uct or
negligence of GAB employees, whether o not ca
negligent acts of City of Wichita Falls or its employees.
Ci
8, Indemnity Agreement - GAB agrees that twill
ldfend an nsd ind gni costsyaof
Wichita Falls against all claims, demands, proceedings,
nd
expenses, to which City of Wichita Falls may be subjected solely as a consequence
of the willful misconduct or negligent acts or omissions of GAB, its employees or
servants in connection with fulfilling its obligations under this ageement.
' Contract Continuation Page 4 or 4
GAB Contract Services
9. During the period of this agreement, and for a period of one (1) year thereafter
GAB agrees not to solicit for employment, or employ, any City of Wichita Falls
employee contact during the performance of this agreement; and City of Wichita
Falls agrees not to solicit for employment or employ during the period of this
agreement and for a period of one (1) year thereafter any employee of GAB
contacted by City of Wichita Falls during the performance of this agreement.
10. It is agreed that this contract shall be interpreted and construed in accordance with
the laws of the State of Texas.
11. The provisions set out herein constitute the whole and entire agreement between
the parties hereto and may be altered only by mutual agreement, reduced to
writing and executed by authorized officers of both parties.
I
GAB BUSINESS SERVICES, INC.��
BY: 4 Paul K. Dougherty
Senior Vice President
Aitnesso Date
CITY OF WICHITA FALLS, TEX6S
I'
BY:
Witness Date
i
i
LEASE AGREEMENT
THE STATE OF TEXAS X
COUNTY OF CLAY X
This agreement made and entered into this the day
of August, 1982, by and between the Texas Parks and Wildlife Depart-
ment ("Lessee") and the City of Wichita Falls, Texas, ("Lessor") , each
acting herein by and through its duly authorized officers.
WITNESSETH:
WHEREAS, Lessor owns a tract of land hereinafter described on
which Lessee desires to construct, maintain and operate a boat launching
facility; and,
WHEREAS, Lessor desires to grant a leasehold property interest
for the aforesaid purposes and perform certain maintenance and
operational duties..
NOW, THEREFORE, in consideration of the premises and the agree-
ments herein contained, Lessor hereby leases, demises, and lets unto
Lessee for the purpose of constructing, maintaining and operating a
boat launching ramp and associated support facilities all that certain
tract of land situated in Clay County, Texas, being more particularly
described on Exhibit A, which is attached hereto, containing 2 .63 acres,
more or less.
This lease is made subject, however, to the following terms and
conditions;
1. The term of this lease shall be from the day and year above
written for a period of twenty-five years, unless and until terminated
as provided herein.
2 . It is understood and agreed the Lessee may at its option
at any time during this lease term cease the operation of said boat
ramp facilities by serving written notice on the Lessor in which
event and thereupon this lease shall automatically terminate and
and the leasehold interest shall revert automatically to the Lessor
without suit or reentry and without any further obligation to the
Lessee.
3. It is understood and agreed that the Lessee shall construct
or cause to be constructed on the leased premises a boat launching
ramp and appurtenances. Title to all such improvements shall be in
the Lessor.
4 . It is understood and agreed the Lessor shall keep the said
facility at all times during the lease term in a clean, neat and
sanitary condition. In this connection, the Lessor agrees to keep
the leased premises free of litter and the grass mowed. Further, the
Lessor covenants to keep the facility under surveillance sufficiently
to preclude it from becoming a nuisance or hazard to the public or
adjacent property owners.
5. It is agreed and understood the operation of the said
facility shall be exclusively under the control of and governed by
the Lessee.
6. Lessee will be responsible for any annual maintenance
costs for the duration of the lease, provided that Texas Parks and
Wildlife Department approval is secured prior to expenditure.
IN WITNESS WHEREOF, this agreement is executed and effective as
of the day and year first above written.
CITY OF WICHITA FALLS
By:
Stuart A. Bach, City Manager
TEXAS PARKS AND WILDLIFE DEPARTMENT
By:
Charles D. Travis,
Executive Director
STATE OF TEXAS
COUNTY OF WICHITA
BEFORE ME, the undersigned authority, on this day personally
appeared Stuart A. Bach, City Manager, known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the purposes and consideration therein
expressed.
GIVEN under my hand and seal of office this the day of
1982 .
Notary Public in and for
Wichita County, Texas