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Min 10/07/2008 426 CITY COUNCIL MINUTES Wichita Falls, Texas Memorial Auditorium Building October 07, 2008 Item 1 The City Council of the City of Wichita Falls, Texas met in regular session on the above date in the Council Chambers of the Memorial Auditorium Building at 8:30 o'clock a.m., with the following members present. Lanham Lyne - Mayor - Councilors Glenn Barham - Michael Smith - Rick Hatcher - Jim Ginnings - Charles Elmore - Dorothy Roberts-Burns - Darron Leiker - City Manager Bill Sullivan - City Attorney Lydia Ozuna - City Clerk Mayor Lyne called the meeting to order. Item 2a Chaplain Richard Munsell, Sheppard Air Force Base, gave the invocation. Item 2b Mayor Lyne led in the Pledge of Allegiance. Item 3a Mayor proclaimed the week of October 6-12, 2008 as "Financial Planning Week in Wichita Falls" and encouraged citizens to work toward their financial goals and take advantage of the Financial Planning Association. Mr. Gary Silverman, representing the Financial Planning Association, accepted the proclamation. Item 3b Mayor proclaimed October 10, 2008 as "Wichita Theater Centennial Day in Wichita Falls" and congratulated Dwayne and Lisa Jackson, General Managers, and Jeral and Rowena Jackson Dwayne's parents who were instrumental in keeping Wichita Theatre alive. Dwayne and Lisa Jackson accepted the proclamation and thanked the City for their support. Item 3c Mr. Leon Edgett III, Parks and Recreation Maintenance Worker, was recognized as Employee of the Month for October 2008. Mayor presented Mr. Edgett with a plaque, a check, and restaurant certificates. Item 4 No one signed up to speak under comments from the public. 427 , Items 5 Minutes of the September 16, 2008 regular meeting, were approved with one correction. Items 6 City Manager gave a briefing on the items listed under the Consent Agenda. Moved by Councilor Hatcher that the Consent Agenda be approved. Motion seconded by Councilor Smith and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Items 6a-6d Minutes of the following Boards & Commissions were received. (a) 4B Sales Tax Corporation, May 13, 2008 (b) 4A WF Economic Development Corporation, August 18, 2008 (c) Business Park Assoc. Development Review Board, August 13, 2008 (d) Park Board, August 28, 2008 Item 7a ORDINANCE NO. 63-2008 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, ORDINANCE AMENDING ORDINANCE NO. 37-2008 DECLARING CERTAIN STRUCTURES AS DANGEROUS BY ALLOWING EXTRA TIME TO REHABILITATE 100 CLEVELAND TO CITY COUNCIL; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Elmore that Ordinance No. 63-2008 be passed. Motion seconded by Councilor Barham. Moved by Councilor Elmore to amend the proposed ordinance by inserting the following numbers in the blanks in Section 1: 30 days granted to obtain a Restoration Building Permit and 120 additional days for substantial completion, and 120 days from issuance of the permit. Section 1 would read as follows: "Additional time in the amount of 30 days to end at the end of the business day is granted to the property owner of 100 Cleveland to obtain a Restoration Building Permit, substantial progress shall have been accomplished 120 days after the above date, and complete restoration be accomplished by the end of the business day 120 days from issuance of the permit. Failure to complete timeframe requirements will result in the demolition of the structure, without further notification. Upon rehabilitation of structure, the demolition order shall become void. Motion seconded by Councilor Roberts-Burns and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Main motion as amended carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None ' ,428 Item 7b ORDINANCE NO. 64-2008 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, MAKING AN APPROPRIATION TO THE SPECIAL REVENUE FUND FOR STATE HEALTH SERVICES GRANT FUNDING IN THE AMOUNT OF $6,357 RECEIVED FROM TARRANT COUNTY, TEXAS AND AUTHORIZING THE CITY MANAGER ACCEPT SAME; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Roberts-Burns that Ordinance No. 64-2008 be passed. Motion seconded by Councilor Elmore and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 7c ORDINANCE NO. 65-2008 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AMENDING CHAPTER 26 OF THE CODE OF ORDINANCES, "BUSINESS REGULATIONS," BY THE ADDITION OF ARTICLE X, "MULTI-HOUSING," TO SAID CHAPTER; PROVIDING A REPEALER CLAUSE; PROVIDING FOR INCLUSION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Barham that Ordinance No. 65-2008 be passed. Motion seconded by Councilor Hatcher. Councilor Ginnings suggested changing the word "may" to "shall" in Section 26-842 (d). Councilor Ginnings requested that the Police Department provide reports before and after to see how this is working. Moved by Councilor Smith to amend the proposed ordinance by replacing the word "may" to "shall" in Section 26-842(d). That sentence would read "A prior owner shall advise the police official that he no longer holds any ownership interest in the property." Motion seconded by Councilor Hatcher and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Main motion as amended carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None 429 Item 7d ORDINANCE NO. 66-2008 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE ACCEPTANCE OF DEED RESTRICTIONS PROHIBITING THE USE OF DESIGNATED GROUNDWATER FROM BENEATH THE PROPERTY LOCATED AT 2522 IOWA PARK ROAD, WICHITA FALLS, TEXAS, 76306, TO FACILITATE CERTIFICATION OF A MUNICIPAL SETTING DESIGNATION (MSD) OF SAID PROPERTY BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (TCEQ) PURSUANT TO THE TEXAS SOLID WASTE DISPOSAL ACT; AND PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE. Moved by Councilor Roberts-Burns that Ordinance No. 66-2008 be passed. Motion seconded by Councilor Barham and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 8a RESOLUTION NO. 132-2008 A RESOLUTION IN SUPPORT OF THE APPLICATION OF IOWA PARK ROAD, L.L.C. TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR A MUNICIPAL SETTING DESIGNATION AT 2522 IOWA PARK ROAD, WICHITA FALLS, TEXAS. Moved by Councilor Ginnings that Resolution No.132 -2008 be passed. Motion seconded by Councilor Smith and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 8b RESOLUTION NO. 133-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, APPROVING AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH OLD DOMINION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hatcher that Resolution No. 133-2008 be passed. Motion seconded by Councilor Ginnings and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None ' 430 Item 8c RESOLUTION NO. 134-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, APPROVING THE 2008-2009 BUDGET OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Roberts-Burns that Resolution No. 134-2008 be passed. Motion seconded by Councilor Hatcher and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None City Council recessed at 9:30 a.m. and reconvened at 9:45 a.m. Item 8d This item was postponed until the end of this meeting. Item 8e RESOLUTION NO. 136-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AWARDING GRANTS FROM THE HOTEUMOTEL FUND FOR ARTS AND HISTORIC PRESERVATION PURPOSES TO TWELVE LOCAL ORGANIZATIONS; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Elmore that Resolution No. 136-2008 be passed. Motion seconded by Councilor Smith. Mrs. Elizabeth Yeager, Arts Commission Chair, expressed concern about the decrease in funding. She informed that the Arts Commission is working with Convention Visitors Bureau to promote the arts around the state. She expressed appreciation to Councilor Smith for his support. Mayor suggested looking at moving the crepe myrtle in Jones Park to another location. Motion carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None 431 Item 8f RESOLUTION NO. 137-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING AWARD OF BID FOR DEMOLITION, CLEARING AND CLEANING OF VARIOUS HAZARDOUS STRUCTURES TO NATIONWIDE DEMOLITION IN THE AMOUNT OF $36,865.05; GARRETT DEMOLITION IN THE AMOUNT OF $14,994.00; AND ZAC CORPORATION IN THE AMOUNT OF $2,200.00; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Elmore that Resolution No. 137-2008 be passed. Motion seconded by Councilor Hatcher and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 8g RESOLUTION NO. 138-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING AWARD OF BID FOR CONCRETE CRUSHING TO JP ENVIRONMENTAL IN THE AMOUNT OF $87,500.00; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Roberts-Burns that Resolution No. 138-2008 be passed. Motion seconded by Councilor Smith and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 8h RESOLUTION NO. 139-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, TO AWARD BID AND CONTRACT FOR THE 2008 ALLEY REHABILITATION PROJECT (CWF08-530-05); FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTUION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hatcher that Resolution No. 139-2008 be passed. Motion seconded by Councilor Elmore and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None ' 432 Item 8i RESOLUTION NO. 140-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, TO APPROVE CHANGE ORDER NO. 2 TO THE CYPRESS WATER TREATMENT PLANT 10MG CONCRETE GROUND STORAGE TANK PROJECT, CWF06-544-06 IN THE AMOUNT OF $46,057.53; FINDING AND DETERMINING THAT THE MEETING AT WHICH THE RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Barham that Resolution No. 140-2008 be passed. Motion seconded by Councilor Elmore and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 80 A proposed resolution was presented to approve Change Order No. 2 for the Jasper Water Treatment Plant New 5 Million Gallon Clearwell Project. Moved by Councilor Roberts-Burns that proposed resolution be passed. Motion seconded by Councilor Barham. Council expressed concern that this was a new tank and we should have been delivered a leak proof tank. City Attorney will look into this situation and this will be brought back to Council. Moved by Councilor Hatcher that this item be tabled. Motion seconded by Councilor Roberts-Burns and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None Item 8k RESOLUTION NO. 141-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, TO APPROVE CHANGE ORDER NO. 4 FOR 2008 STREET REHABILITATION PROJECT(CWF08-100-04); FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Hatcher that Resolution No. 141-2008 be passed. Motion seconded by Councilor Smith and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None 433 Item 9a Health Director Lou Franklin reminded everyone that the annual Flu Clinic will be held this Saturday at the J.S. Bridwell Agriculture Center. The Police Department will also be there to provide VIN number etching for vehicles. This will take place from 8 a.m. to 5 p.m. October 11, 2008. Dave Clark reported on the first of two Federal Government Bailout Schemes and informed that our City did not receive CDBG allocations. The good news is we have not had very many foreclosures here in Wichita Falls nor in most Texas cities. City Clerk Ozuna informed citizens that the upcoming election was being conducted by the County Clerk's Office and anyone needing a mail ballot or any information regarding that election could contact the County Clerk's Office at 766- 8100. Item 9b 1 Councilor Roberts-Burns asked that staff look into the pothole at Tulsa and Neff Streets. Councilor Roberts-Burns reminded everyone that the Race for the Cure would be this Saturday down town. Councilor Elmore asked anyone that is interested in participating in the downtown mural projects to contact him at 855-0303. You do not have to be an artist to participate. Councilor Elmore informed that they now have an organization "Save Our Bridge" to save the bridge at Behrens's Landing. Anyone interested in helping contact him or Councilor Hatcher. Councilor Elmore mentioned their tour through the Cypress Water Treatment Plant and sampling the Reverse Osmosis water. He suggested that the City bottle this water. It is very good water. Councilor Barham referred to bottling the Reverse Osmosis water and asked that staff do a study or inquire on the cost and expense for the City to take this project on. City Manager informed that the previous City Manager, Jim Berzina, had some people approach him about this but the issue is the cost of the plastic bottles. Those that are successful are those who have a bottling plant, like Coca Cola next to their plant. He did not think that was something staff wants to get involved in. Councilor Barham felt staff should inquire about it. Councilor Barham asked if we had an ordinance that prohibits blowing grass clippings onto the street and who enforces that. City Manager replied that it is not actively enforced because we do not have the staff to be out there enforcing this when violations occur. This falls under Code Enforcement. Councilor Barham stated that the problem is in the commercial locations like United and Sam's. City Manager commented that we can check the phone book and a letter could be sent out to these folks reminding them that it is illegal. Councilor Hatcher commented that there are a lot of people who do that but are not in the phone book. It will be difficult to get all of them. Councilor Hatcher was glad to see the Alley Rehab Project rolling. Councilor Hatcher encouraged folks to participate in the Race for the Cure this Saturday. Councilor Hatcher asked for an update on the crossing guard issue at West Foundation. Mr. John Burrus informed that they had met with Ben Shelton from the WFISD and we already have the crossing guard put out there. ' 434 Item 9b(1) continued Councilor Ginnings asked if the mowing and maintenance of medians and shoulders on Kell and the trash detail were a shared responsibility with TXDOT and the City. City Manager replied that technically that entire right of way maintenance is TXDOT's responsibility but we have taken a lot off their shoulders because we have asked them to allow us to landscape, so we will mow around the trees and irrigation spouts etc. Our standard of maintenance is high and folks passing by wonder why the City only mows one portion and not the other. Trash pick up is TXDOT's responsibility. I asked Jack Murphy to make contact with TXDOT about a week ago to have the City bid on their mowing jobs because it is done by State contract. If we could bid, it would be in our best interest because it would look better and it may be in TXDOT's best interest because it would be cheaper since we are already mobilized there. Larry Tagmire, with TXDOT, was going to check with Austin to see if that could be done. Mr. Jack Murphy informed that we spend more time in litter pickup than mowing and it is costly to pick up litter. Councilor Ginnings proposed a person designated by TXDOT and one by the City; create a plan, like what the City Manager just mentioned, and implement that plan. He suggested that a report be submitted whenever there is a glitch. He liked the City Manager's approach for us to take it over and be paid for it. Councilor Ginnings brought up the pigeon trash stating that it pollutes Harold Jones Park and the areas under the overpass; it is intolerable and we are going to have to do more in that area. Additional funds are needed to accelerate this program. He suggested furnishing some plans to outside contractors to see how that works. Councilor Ginnings asked if Council was opposed to him requesting from 4B Board to create a trail access at the end of Rhea Road. There was no opposition expressed by Council. Councilor Ginnings would like to start a discussion on the assessment of abandoned filling station sights and other sights within the City limits, or at least see a list to see what we might do to get these cleaned up. Councilor Smith had an opportunity to ride the new American Eagle ATR planes and encouraged citizens to look at that travel option. However, they have already had two cancellations and we need to watch their cancellations. Also, the reduction of flights and poor time schedules are a problem. Skylark Van has opened new service to DFW and that tells us that American Eagle is missing a market. We really need to talk to the American Eagle representative to express our thoughts about scheduling and an additional flight. They do not seem to be concerned about their clients in Wichita Falls. The new aircraft is really good. I hope people will give that a try. Mr. John Burrus informed that American Eagle's Representative Dale Morris is scheduled to be here October 21. Also, we have a new station manager in the local market and will encourage him to come as well. We are aware of the cancellations but excited with the cooperation of the new station manager. There are some missed opportunities and I applaud Skylark for their initiative to seize upon that. Councilor Smith mentioned that the public still needs information on the water and sanitation rates, and he asked that staff provide them the ten-city comparison chart and get it out to the media as well. He asked that it be placed on the City Channel and website so the citizens can better understand the reason for those rates to be increased. Mr. Dockery informed the he is placing a note in this month's water bills giving reasons for the increases. Councilor Smith asked that staff check the need for a stop sign where the new apartment complex is located east of Holiday Creek off Southwest Parkway; it is a new cement road off Southwest Parkway east of Taft. Councilor Smith requested that a study be done to see if the street sweeper could be scheduled more often in the downtown area. 435 Item 9b(1) continued Councilor Smith reminded that the green curbside carts are for organics. Some folks are using these for trash cans and that is defeating the purpose of the use for two different carts. Councilor Smith asked what would be done with the concrete on the Alley Project now that we have the concrete crusher, and if it could be recycled. Mr. Schreiber replied that it will be taken to the landfill but they will look into the possibility of reusing it. Mr. Schreiber commented that they received an inspection at the composting facility last week and were cited for having an alleged violation; the green yard waste is contaminated with inorganic material. He asked the citizens to help by keeping recyclables in the recycle cart and garbage and trash in the trash cart. This will help us at the landfill and keep us in compliance with TECQ regulations out there. Councilor Barham suggested charging a minimal fee for the compost instead of giving it away, and if they bring their water bill they can get it free. Mayor Lyne agreed with Councilor Barham's suggestion to charge for the compost. Mayor Lyne received calls on the deterioration and trash at Oakmont Street where they are doing a lot of construction. Contractors are leaving a lot of trash, those contractors need to be held more responsible for that. It is becoming a real issue for people in that area. Mayor Lyne informed that Taft Road between Southwest Parkway and Old Lake Road has become a cut-through street. Also, the two entrances need to have trees trimmed back in the area of Shepherd's Glen. Mayor Lyne expressed concern about political sign violations; what are we doing about that, signs on trailers cars, etc. Mr. Dave Clark informed that if Code Staff see signs in the right of way they remove them. We have been working with Legal in regards to what we can and cannot do. Some candidates are playing games with that; there are some fine lines as to whether there are signs on vehicles and it is unfortunate that is going on. We are responding to those calls when there is a violation. City Manager added that Traffic Control Staff and Parks Staff know that if signs are on public right of way they are to remove them. Councilor Elmore invited everyone to attend the City View Home Coming Parade on Wednesday at 6 p.m. Mayor Lyne referred to the pigeon problem and commented that he was glad we were already talking to Larry Tagmire about it although most of that comes from their structures. Mayor stated that if we need to we can go to Austin because TECQ will find a reason why we have to clean up the pigeon waste. It should not be our responsibility to take care of that but we may have to end up doing that. The State runs their budget by collecting fees from violators. That is pollution and it runs off to sanitary and water sewer areas, and it is just nasty. Mayor Lyne reminded everyone that tonight is National Night Out in recognition of the Neighborhood Watch Programs. He encouraged citizens to get together out doors and share a good time. Take advantage of that and meet your neighbors. If you do not have a Neighborhood Watch Program contact us. Mayor Lyne asked Mr. Bob Sullivan if the facility fees at the MPEC and the Coliseum were going to cause a loss of business there. Mr. Sullivan replied that they do not anticipate any negative impact. The facility fee and concession food prices are significantly lower than most other coliseums in the region, and we have had no resistance. City Council recessed at 11:00 a.m. and reconvened at 11:20 a.m. Councilor Elmore announced the sale of"Save our Bridge" t-shirts. ' 436 Item 9b 2 City Council discussed the possibility of a long term contract to purchase electricity by CAPP. City Attorney provided background information on CAPP and presented a video that explained the electricity contract with Lumina Energy. CAPP is a group of 120 member cities and we joined together and purchase electricity together. As customers we spend several million dollars a year in electricity. Since 2002 we have gone out for annual or two year contracts through the normal bid process. For the last six months or year the CAPP Board has looked at the possibility of buying electricity under a long term agreement. They have spent the last several months negotiating with Lumina Energy, which is the successor to TXU, and negotiated a long term 24 year agreement to purchase electricity. They are now going to the member cities asking if they want to participate in this long term agreement. The video will give a description of the process and what the general terms are. There is a November 5 deadline for those cities to decide if they want to participate and if they do not we can continue doing what we are currently doing, going out for annual or two year contract through the bid process. City Council viewed the video. Following the video, City Attorney informed that there are 120 cities dealing with this issue and to date ten cities have approved the contract; the majority will deal with this today or next week. We will provide Council with what those other cities decide as we receive the information. Mr. Jim Dockery provided financial information about what we have experienced over the last seven years since deregulation came into play. In FY 2002 the City spent $2.8 million on all of its electricity costs and today we are looking at $5.9 million. What is being contemplated here is the City's debt service or what we would be paying on an annual basis for 60% of our load would be $1.2 million. Our debt service will be about $1.2 million but we are paying $5.8 million or$5.9 million in cash every year under the natural gas pricing structure. The other 40% will still be out for the market to get current pricing. We are diversifying between coal and natural gas and that debt service is much smaller. We are anticipating that in the first year or two of this agreement that we can see our cost for electricity drop in the $1 million range. It is a fairly significant impact to our budget immediately and it does stabilize future budgets of not having to increase costs so substantially that we cannot do anything but pay for electricity. I am highly in favor of this agreement. Councilor Barham commented that according to Mr. Dockery 60% of our power would be coming from this contract and 40% from the open market, and he wanted to know why they are not doing 100% of the City's contract. City Attorney replied that they determined that the base need of the cities that is stable and that we know is going to be there and I am guessing that there was a reluctance to go out and prepay for electricity without an absolute assurance that you would need it. Mr. Dockery added that it gives your two sources and is diversifying your portfolio, and will leave some wiggle room. Mayor asked for clarification that we would be paying so much per kilowatt hour once the contract is signed and then also paying for debt obligation on top of that service. Mr. Dockery replied that the debt service is calculated into the kilowatt per hour. Mayor stated that essentially we are going to front the money whatever it is they need then pay for it over the next 24 years. City Attorney stated that that was correct. Lumina Energy has some obligations to clean up some of their existing plants and some of this prepayment may be used to meet those costs. Councilor Ginnings stated that it certainly was unique; we are fronting money to build some electric capacity and then we are going to receive a lower rate in our price. There was an indication in the video that if gas goes up electric rates goes up but you are talking about coal fired plants and price of coal is very stable. I am not aware of any contractual relationship between the price of gas and the price of electricity where coal generated plants are producing the electricity. It is tied to the market and what the market will bear. I thought that was an erroneous conclusion if it was a conclusion. Projections are difficult at 437 Item 9b(2) continued best but to project for 24 years is not worthy of discussion because it is impossible to do that. I have no confidence in these wild predictions. The savings that have been quoted by CAPP have been a little more than $17 million and they are now predicting billions and there is no way unless fuel continues to accelerate at the price it has over the past two or three years that you can ever realize that kind of savings. Councilor Ginnings' main concern is surrendering the City's taxing authority and control to this entity. We are saying we are going to give you this money and we expect you to be able operate and make this happen just like we projected. When they talk about risks and we have a first mortgage on the assets of Lumina, I do not understand how Lumina who had a $46 million debt going into it and $26 million of that was secured by major investment banks that are not even in existence right now. And we can turn around and have a first lien on those same assets and I do not understand how you can do that and how the people who hold that debt when we show up and tell them we want a first lien also. That may happen but I do not understand how that can happen under the contract law that exists today. Councilor Ginnings asked Council to keep in mind how Lumina came into being. A group of very smart intelligent people created this entity and bought out TXU. Whereas, do you buy the operating expertise and determination to serve the public along with that? But this was just a value created enterprise that I would not under any circumstances bet 24 years of my future on it. We have to live in the economic environment that exists. There are methods to hedge your liability by transferring it to somebody else. But in effect, buying electric plants or any other kind of primary generating asset does not appeal to me for the City. I have listened, read, and thought and I have no disrespect for the people that put this together and are recommending it. I respect the opinions of the staff and I know you are highly in favor of it. Councilor Ginnings stated "Do not ever think that anyone can predict 24 years down the road". Be very careful how we obligate our control over the taxing ability and taxing base of our City to outsiders. Councilor Barham commented that in the video they stated that the price of coal has been very stable but in today's national political climate coal production may be shut down. What would happen if that occurs? City Attorney replied that it was mentioned in the comments that there is a need for these plants to run and without them a ton of people in Texas would be without electricity. In terms of political issues, these plants have to run because that is the source that creates electricity. Mayor stated that he has a hard time going into a 24 year contract and that is his biggest reservation. Councilor Ginnings and I have been in the energy producing business for quite some time and we have seen and felt the fluctuations both positively and negatively. When Lumina came onto the market and bought out TXU, the first thing they did was cancel seven coal plants that were scheduled to be built, because of a large group in the metroplex and south of the metroplex. Much like coal being shut down it may be that the coal technology becomes so good that coal is reasonable. We bring the coal we burn in Texas primarily from Montana and Wyoming, and we have a lot of coal in east Texas. It is hard for me to think that bid ought to come every 24 years. I like locking in a price but it is hard to do. We do need to look at this very closely and find out more. Most councils are discussing it today and in the next couple of weeks. There are a lot of unknowns that we have seen prices go up and down in this market and recently up. One reason we have so many natural gas plants is because it was forever at $2/mcf. You did not make money on it but you had to sell it. At times we flared all our natural gas; it was an un-saleable product. We do have a lot of natural gas in our country if allowed to produce it and a lot of coal in our country if allowed to use it. It is hard for me to say that prices will continue to escalate up as technology changes. If you drop back 24 years from where we are today nobody would have predicted we would be where we are. I am reluctant to support the contract. '. • ' 438 Item 9b(2) continued Mr. Dockery stated that the 60% that we would be locking in, even at the end of the 24 years, the price we would be paying is two or three cents less than what we are paying today, and the price initially of 5.6 cents is half of what we are paying today. The price of fuel would have to go below what it is today significantly in order for this to be a bad deal. It is 24 years and who knows what the future holds and that is the reason why we are looking at 60% and keeping some flexibility on that 40%. Councilor Smith asked if there was an exit clause. Mr. Sullivan replied in the negative. It is a firm 24 year commitment for them and for us. Mayor said that as we gather more information we will pick that up. Items 10 and 11 City Council went into Executive session at 12:06 p.m. as authorized by Section 551.072 of the Texas Government Code and Section 551.074 of the Texas Government Code. City Council reconvened at 12:20 p.m. Mayor announced that no polls or votes were taken during Executive Session. Item 12a Moved by Councilor Ginnings to appoint Mr. Elvin Dudley to the Zoning Board of Adjustment, Place 7, with term to expire December 31, 2008. Motion seconded by Councilor Hatcher and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings, and Elmore Nays: None Item 12b No action was taken on the Arts Commission. Item 12c Moved by Councilor Elmore to appoint Mr. Steven Young to the Library Advisory Board, Place 2, with term to expire July 31, 2010. Motion seconded by Councilor Roberts-Burns and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings, and Elmore Nays: None Item 12d Moved by Councilor Hatcher to appoint Mr. Ben Filer to the Park Board, Place 9, with term to expire December 31, 2010. Motion seconded by Councilor Ginnings and carried by the following vote. 439 Item 12d continued Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings, and Elmore Nays: None Item 8d RESOLUTION NO. 135-2008 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, ENDORSING FUNDING APPLICATIONS TO THE 4B SALES TAX BOARD FOR THE FIRING RANGE, TRAIL EXTENSION AND PARK LAND ACQUISITION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Moved by Councilor Barham that Resolution No. 135-2008 be passed. Motion seconded by Councilor Roberts-Burns and carried by the following vote. Ayes: Mayor Lyne, Councilors Barham, Smith, Roberts-Burns, Hatcher, Ginnings and Elmore Nays: None City Council adjourned at 1:20 p.m. PASSED AND APPROVED this day of 2008. M O TEM ATTEST: Lydia Ozuna City Clerk NOTICE OF MEETING Regular Meeting Of The Mayor And City Council Of The City Of Wichita Falls, Texas, To Be Held In The City Council Chambers Of The Memorial Auditorium, 1300 Seventh Street, On Tuesday, October 7, 2008 Beginning At 8:30 A.M. City Council: Mayor Lanham Lyne, Councilors Glenn Barham, Michael Smith, Dorothy Roberts-Burns, Rick Hatcher, Jim Ginnings, and Charles Elmore. 1 . Call To Order 2. (a) Invocation: Colonel Richard Munsell Chaplain, Sheppard Air Force Base (b) Pledge Of Allegiance 3. Presentations (a) Proclamation — Financial Planning Week — Gary Silverman, Financial Planning Association (b) Proclamation - 100th Anniversary Of The Wichita Theater — Jackson Family (c) Employee Of The Month - Leon Edgett III, Parks & Recreation 4. Comments From The Public To Members Of The City Council Concerning Items That Are Not On The City Council Agenda. People Wishing To Address The Council Should Sign Up Prior To The Meeting Commencing. A Five Minute Time Frame Will Be Adhered To For Those Addressing Their Concerns. 5. Approval Of Minutes Of September 16, 2008 Regular Meeting Of The Mayor And City Council. CONSENT AGENDA 6. Receive Minutes (a) 4B Sales Tax Corporation, May 13, 2008 (b) 4A WF Economic Development Corporation, Aug.18, 2008 (c) Business Park Assoc. Development Review Board, Aug. 13, 2008 (d) Park Board, August 28, 2008 City Council Agenda Tuesday, October 7, 2008 Page 2 REGULAR AGENDA 7. Ordinances (a) Ordinance Amending Ordinance No. 37-2008 Declaring Certain Structures As Dangerous By Allowing Extra Time To Rehabilitate 100 Cleveland (Council Bill #204) (b) Ordinance Making An Appropriation To The Special Revenue Fund For State Health Services Grant Funding In The Amount OF $6,357 Received From Tarrant County, Texas And Authorizing The City Manager To Accept Same (Council Bill #205) (c) Ordinance Amending Chapter 26 Of The Code Of Ordinances, "Business Regulations," By The Addition Of Article X, "Multi- Housing" (Council Bill #206) (d) Ordinance Amending Chapter 106 Utilities, Article XI Entitled Municipal Setting Designations by Adding the Prohibited Potable Use of Groundwater Beneath 2522 Iowa Park Road (Council Bill #207) 8. Resolutions (a) Resolution to Support Iowa Park Road LLC Apply for Municipal Setting Designation (MSD) from the Texas Commission on Environmental Quality (TCEQ) (Council Bill #208) (b) Resolution Approving An Economic Development Incentive Agreement With Old Dominion (Council Bill #209) (c) Resolution Approving The 2008-2009 Budget Of The Wichita Falls Economic Development Corporation (Council Bill #210) (d) Resolution Endorsing Funding Applications To The 4B Sales Tax Board For The Firing Range, Trail Extension and Park Land Acquisition (Council Bill #211) (e) Resolution Awarding Grants From The Hotel/Motel Fund For Arts And Historic Preservation Purposes To Twelve Local Organizations (Council Bill #212) (f) Resolution Authorizing Award Of Bid For Demolition Of Hazardous Structures To Nationwide Demolition, In The Amount Of $36,865.05; Garrett Demolition, In The Amount Of $14,994.00; And ZAC Corporation In The Amount Of $2,200.00 (Council Bill #213) City Council Agenda Tuesday, October 7, 2008 Page 3 (g) Resolution Authorizing Award Of Bid For Concrete Crushing Of Approximately 10,000 Tons Of Concrete Rubble To JP Environmental In The Amount Of $87,500.00 (Council Bill #214) (h) Resolution To Award Bid And Contract For 2008 Alley Rehabilitation Project (CWF08-530-05) (Council Bill #215) (i) Resolution To Approve Change Order No. 2 To The Cypress Water Treatment Plant 10 MG Concrete Ground Storage Tank Project, CWF06-544-06 (Council Bill #216) (j) Resolution To Approve Change Order No. 2 For The Jasper Water Treatment Plant New Five Million Gallon Clearwell Project, CWF07-544-18 (Council Bill #217)\ (k) Resolution To Approve Change Order No. 4 For The 2008 Street Rehabilitation Project (CWF08-100-04) An Addition Of $42,126.09. The Purpose Is To Balance Out Final Quantities For Final Payment Due To Overruns On Contract Items (Council Bill #218) 9. Other Council Matters (a) Staff Council Discussion Discussion of possible long term contract to purchase electricity by CAPP (b) Discussion Of Items Of Concern To Members Of The City Council. 10. Executive Session To Deliberate The Purchase , Exchange Or Lease Of Real Property As Authorized By Section 551 .072 Of The Texas Government Code 11 . Executive Session To Consider Qualifications Of Possible Appointees To The Zoning Board of Adjustment As Authorized By Section 551 .074 Of The Texas Government Code 12. Open Session: Appointments To The Following Boards And Commissions: (a) Zoning Board of Adjustment (b) Arts Commission (c) Library Advisory Board (d) Park Board 13. Adjourn City Council Agenda Tuesday, October 7, 2008 Page 4 Wheelchair or handicapped accessibility to the meeting is possible by using the handicapped parking spaces and ramp located off the east parking lot on the Sixth Street entrance. Spanish language interpreters, deaf interpreters, Braille copies or any other special needs will be provided to any person requesting a special service with at least 24 hours notice. Please call the City Clerk's Office at 761-7409. Wireless Listening System devices are available at the City Manager's reception area or you may call 761-7404 for inquiries. CERTIFICATION I certify that the above notice of meeting was posted on the bulletin board at Memorial Auditorium, Wichita Falls, Texas on the day of 2008 at o'clock (a.m.)(p.m.). City Clerk