Mineral Wells Area News

Reporting & Photos By Gary Norman | Mineral Wells Area News

The Mineral Wells City Council met in regular session Tuesday, Dec. 2, addressing a reimbursement policy for fire and public works vehicles, extensive discussion on regulating vape shops, adoption of a new fixed/capital asset policy, approval of a marketing contract for City-owned properties, authorization of storage tank inspections, and publication of notices of intent to issue up to $70 million in Certificates of Obligation for water-system improvements. Mayor Regan Johnson presided, with Councilman Mike Rankin absent.

Consent Agenda

Council approved several items without discussion, including:

Reimbursement Resolution for Vehicle Purchases

A resolution allowing the City to reimburse itself from future financing proceeds associated with the purchase of Fire and Public Works vehicles. The action does not authorize debt issuance but establishes the legal framework for future reimbursement.

Contract With Diamond Communications

A five-year agreement with Diamond Communications to evaluate and market City-owned properties for potential use by communications companies. The City incurs no upfront costs and will retain 75% of any lease proceeds; Diamond Communications will receive 25%.

Discussion: Vape Shops, Smoke Shops, and Cigar Lounges

City Manager Jason Weeks briefed the Council on discussions held earlier that day by the Planning and Zoning (P&Z) Commission regarding possible revisions to the Code of Ordinances to regulate or prohibit smoke/tobacco shops, vape shops, and hookah lounges.

Weeks said local ISD officials and the Police Department report an uptick in vape pens confiscated at schools. He added that statewide limits on local control have contributed to the growing visibility of vape shops with bright, attention-grabbing storefronts.

“When you take that, along with kids and teens having access to it, we thought we would bring it to you to be proactive, starting with P and Z,” Weeks said.

A total ban would allow existing vape shops to continue operating but would prohibit expansion and transfer of ownership. Smoke shops that do not sell vape products or drug paraphernalia would be regulated separately. Weeks added that two vendors had expressed interest in opening cigar lounges downtown.

During the P&Z meeting, four commissioners supported a complete ban on vape shops, smoke shops, and hookah lounges; two supported limiting them to the light-industrial district. All six supported allowing cigar lounges.

Weeks emphasized that no action was being requested from Council at this stage and that staff needed direction to begin drafting an ordinance.

City Council Discussion

• Council Member Kyle Kelley said the City needs clear definitions distinguishing vape shops, smoke shops, and cigar lounges.
• City Attorney Eileen Hayman confirmed new definitions would be drafted and said similar regulations in Metroplex cities limit such uses to industrial areas with distance requirements from schools.
• Weeks clarified that the proposal would prohibit stand-alone vape shops but not the sale of vape products in convenience stores and other retailers where the products comprise less than 51% of sales.

Health, Safety, and Community Image

• Council Member Beth Watson asked whether the effort was driven primarily by public health. Weeks said health and public image were both considerations. Watson agreed the shops can be visually unappealing but noted that banning stand-alone stores would not prevent access to vape products.
• Police Chief Tim Denison added that stores selling to minors can be shut down and that businesses where more than 50% of sales come from vape products tend to be associated with more criminal activity.
• Council Member Kelley said minors will find access regardless but that limiting shops supports law enforcement and improves community image. “I am for getting rid of them or not allowing any more,” he said.
• Council Member Glenn Mitchell said he did not support outright prohibition but favored restricting locations for vape and smoke shops. He said he had no issue with cigar lounges operating “within the legal realms.”
• Mayor Johnson said she would like more information, including visiting a vape shop herself. “I would like to hear more public feedback,” she said.

Hayman confirmed that public notice and hearings will be required both before P&Z and the City Council. Weeks said his office could conduct a public survey as well.

Editorial Note: Just prior to publication of the article, the City released a survey regarding the subject of vape shops and you can participate by clicking here.

Storage Tank Inspection Contract

Council approved a $161,000 professional services agreement with Parkhill to inspect the City’s storage tanks and prepare a cost estimate for rehabilitating the Ram Tank.

The scope includes inspection of the 1-million-gallon Ram Tank and four additional tanks in the water system. The FY 2025–26 budget includes $500,000 for the tank rehabilitation program.

Parkhill’s services will be billed based on percentage of completion across seven tasks, from inspection to bidding and construction administration.

Public Works Director Scott McKennon told Mayor Johnson that completing rehabilitation will require adding additional funding in future budgets. “By the time we are doing bids or spending that money, we will be in next year’s budget, and we will have to add to that $500,000 to get Ram Tank done,” he said.

Fixed/Capital Asset Policy Adopted

Council approved a resolution adopting a formal Fixed/Capital Asset Policy. Finance Director/Assistant City Manager Aaron Bovos said implementing the policy resulted in the addition of approximately 70 previously unrecorded capital assets to the City’s books.

Notice of Intent to Issue Certificates of Obligation — $49 Million

Council approved publication of notice of intent to issue up to $49 million in Certificates of Obligation (COs) for major water system improvements affecting the treatment plant, raw water intake, pump station, and transmission lines.

The action authorizes notice only, not the issuance of debt. The notices will run in the Weatherford Democrat on Dec. 6 and 13 and will be posted on the City’s website for 46 days.

Bovos outlined preliminary financing details:

• 42% taxable / 58% tax-exempt
• 30-year term, final payment in 2055
• Estimated annual payments of $1.315 million (taxable portion) and $1.5 million (tax-exempt portion)
• Interest rates ranging from 1.66% to 4.85%

Weeks noted the Texas Water Development Board’s $10 million grant and low-interest loan significantly reduced the project cost. Without that assistance, he said, the project would have cost taxpayers “an additional $40 million.”

Notice of Intent to Issue Certificates of Obligation — $21 Million

Council also approved publication of notice of intent to issue up to $21 million in COs to meet Texas Water Development Board requirements for funding treated-water improvement projects.

TWDB requires the City to deposit $18.5 million into a segregated fund in order to fully meet the engineer’s cost estimate before TWDB delivers the previously approved $49 million in COs scheduled for March 2026.

Bovos explained:

“The net amount that’s needed is $18.5 million, however, we are asking for authorization of up to $21 million to cover expenses associated with the transactions.”

He continued:

“This debt will be issued 100% taxable… Again, it is thirty-year debt with the final payment in 2025.”

Because the issuance is structured as a 30-year obligation, the final maturity would fall around 2055–2056, not 2025.

Estimated annual payments are just over $1.43 million at approximately 5.25% interest.

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