HomeMy WebLinkAboutMinutes - City Council - Regular - 7/14/1988443
REGULAR CITY COUNCIL MEETING
JULY 14, 1988
9:00 A.M.
The City Council of the City of Lubbock, Texas met in regular session
an the 14th day of July in the City Council Chambers, first floor,
City Hall, 1625 13th Street, Lubbock, Texas at 9:00 a.m.
Present: Mayor B. C. McMinn, Mayor Pro Tem Joan Baker, Councilman T.
J. Patterson, Councilman George Carpenter, Councilman Gary Phillips,
Councilman Bill Maloy, City Manager Larry J. Cunningham, City
Attorney John C. Ross, Jr., and City Secretary Ranette Boyd.
Absent: Councilwoman Maggie Trejo.
Mayor McMinn called the meeting to order at 9:00 a.m.
( 1.} The Invocation was given by Robert Massengale,
Assistant City Manager.
2.) The Pledge of Allegiance was given in unison by
those in the Council Chambers.
( 3.) Motion was made by Councilman Patterson, seconded
by Councilman Phillips to approve the Minutes of
the June 23, 1988 City Council meeting as
written. Motion carried: 6 Yeas; 0 Nays.
Citizen Appearances
( 4.) Board Appointments
( 5.)
Representatives of the Lubbock Conventions and
Tourism Bureau and members of the Board appeared
to present the City Council with a Hero Award in
recognition of the City Council being
instrumental in getting the Texas Mayors and
Councilmembers Association meeting booked in
Lubbock for 1990.
[ 6.) Cindy Ethridge will appear an behalf of Oakrid e
A artments to request a Loudspeaker Permit for
July 22, 1988.
Cindy Ethridge appeared an behalf of Oakridge
Apartments to request a Loudspeaker Permit for a
resident's party an Friday, July 22, 1988 from
8:00 p.m. until 1:00 a.m. Saturday, July 23, 1988
at 5321 South Loop 289. Staff was informed that
entertainment will be provided by playing of
records and tapes and that no alcoholic beverages
will be sold at this event. Ms. Ethridge has
obtained the necessary signatures required from
444 July 14, 1988
residents and businesses in the area and no neg-
ative responses were received. The Oakridge
Apartments have met the requirements of the
ordinance regarding Loudspeaker Permits. City
Council approval was requested because this event
will be conducted in the late evening hours and
in a residential area.
Motion was made by Councilman Patterson, seconded
by Mayor Pro Tem Baker to approve issuance of a
Loudspeaker Permit to Oakridge Apartments for
July 22, 1988. Motion carried: 6 Yeas; 0 Nays.
ORDINANCE 9210
AN ORDINANCE AMENDING
TEIF STATE OF TEXAS R..'i+`6
SECTION 20-147 Of: THE Gu8-
BOCK CITY CODE TO CLARIFY
COUNTY OF LUBBOCK
PRE DATA FOOT RAres:
AMENDING SECTION 28-148 OF
Before me r r z�. i L I, S •li�� �=" `� L a Not.ary Public In and for Lubbock County
THE LUBBOCK CITY CODE TOCLAR4
T r �� ,7 - } I f r of the Sol
appeared �, -mod ;; �P,a«���—
RATA IRATES ON PROPERTFY FRONT FOOT Y
personally ��, �...-�, .
pers Corporation. publishers of the Lubbock Avalanche -Journal — Morning. Evenin€
ALREADY PLATTED; AMEND-
ING SECTION 28.150OF THE
TO
being by me duly sworn did depose and say that said newspaper has been published cor
LUBBOCK CITY CODE
CHANGE DETERMINING PER-
than fifty-two weeks prior to the first insertion of this _ ;� i�r �
SON TO BE THE DIRECTOR OF
WATER UTILI7IESFORSIIEOF
at Lubbock County. Texas and
SEWER INES; NG
secTIONL20-53OFhTHEDLIUB-
ed copy of the — ' ' jAL.1jirp is a true copy of the original and was prig
BOCK CITY CODE TO ADD AN
ILLUSTRATION THERETO TO
following dates: ° •
Avalanche-,lournal on.� li I Y 1.1a t ._� � .��[
CLARIFY WHEN THE COST OF
CLARIFY
LARGE MAINS IS PARTIALLY
•�•r . 'j =
PAID BY THE CITYt
AMENDING SECTION 20- 54 OF HE LUB-
BOCK CITY CODE TO ADD IL-
LUSTRAT;ONSTO CLARIFY
COST OF EXTENSION PROVI-
�—
SIONS; AMENDING SECTION
TO REVISE DEVELOPER
INSTALLATION PROVISIONS AS
REGARDS UTI
REGARDS UtILITIES; AMEND-
ING SECTION 28.157 OF THE
rim C'-stI i il'KrILA r
UBBOCK CITY CODE TO CLAR-
LFY SURVEYING REQUIRE-
LUBBOCK AVALANCHE —,JOURNAL
MENTS; AMENDING SECTION
29.158 OF THE LUBBOCK CITY
Southwestern Newspapers Corporation
CODE TO REVISE CONTRACTS
FOR REFUNDS PROCEDURE. -
AMENDING SECTION 20.140 OF
THE LUBBOCK CITY CODE TO
n-rw
Ii 1 Y 19
ADD A UNIT PRICE FOR
TRENCH SHORING REQUIRED
Subscribed and sworn to before me this '' day of .J~
BY A SEPARATE STATE STAT-
UTE; AMENDING SECTION
28-164 OF LUBBOCK CITY CODE
TO CLARIFY THE DEFINITION
OF PROPERTY OWNER; PRO-
VIDING A SAVINGS CLAUSE
AND PROVIDING FOR PUBLICA-
TION,
FORM as -in `,..
8847B-444-431
(7)
ORDINANCE #9210
ORDINANCE #9210
AN ORDINANCE AMENDING SECTION 28-147 OF THE LUBBOCK CITY CODE
TO CLARIFY PRO RATA FRONT FOOT RATES; AMENDING SECTION 28-148 OF THE
LUBBOCK CITY CODE TO CLARIFY FRONT FOOT PRO RATA RATES ON PROPERTY
ALREADY PLATTED; AMENDING SECTION 28-150 OF THE LUBBOCK CITY CODE TO
CHANGE DETERMINING PERSON TO BE THE DIRECTOR OF WATER UTILITIES FOR
SITE: OF SEWER LINES; AMENDING SECTION 28-153 OF THE LUBBOCK CITY CODE
TO ADD AN ILLUSTRATION THERETO TO CLARIFY WHEN THE COST OF LARGE
MAINS IS PARTIALLY PAID BY THE CITY; AMENDING SECTION 28-154 OF THE
LUBBOCK CITY CODE TO ADD ILLUSTRATIONS TO CLARIFY COST OF EXTENSION
PROVISIONS; AMENDING SECTION 28-155 TO REVISE DEVELOPER INSTALLATION
PROVISIONS AS REGARDS UTILITIES; AMENDING SECTION 28-157 OF THE
July 14, 1988
445
LUBBOCK CITY CODE TO CLARIFY SURVEYING REQUIREMENTS; AMENDING SECTION
28-158 OF THE LUBBOCK CITY CODE TO REVISE CONTRACTS FOR REFUNDS
PROCEDURE; AMENDING SECTION 28-160 OF THE LUBBOCK CITY CODE TO ADD A
UNIT PRICE FOR TRENCH SHORING REQUIRED BY A SEPARATE STATE STATUTE;
AMENDING SECTION 28-164 OF LUBBOCK CITY CODE TO CLARIFY THE
DEFINITION OF A PROPERTY OWNER; PROVIDING A SAVINGS CLAUSE AND
PROVIDING FOR PUBLICATION.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to pass on second and
final reading Ordinance #9210. Motion carried:
6 Yeas; 0 Nays.
88-478-4d5-432
{ 8.) Consider Resolution #2875 accepting paving
RESOLUTION #2875
RESOLUTION ACCEPTING IMPROVEMENTS ON PORTIONS OF STREETS AS
LISTED BELOW:
WHEREAS, in conformance with the paving requirement provisions
of City Ordinance 1331, the subdivider of Wheelocks 2nd Addition, Lot
I -A, Block 88, and Lot 1-A-1, Block 93, made arrangements with Gordon
Carey Construction for the construction of paving improvements on
certain streets dedicated in said subdivision under the provisions of
said Ordinance prior to the recording of the subdivision plat of the
above -mentioned addition including the following streets:
Elm Avenue Street stub removal on north side of 34th
Street known and designated as New Subdivision Sub -Unit
Number 46 of Unit Number 2033.
Cedar Avenue Street stub removal on north side of 34th
Street known and designated as New Subdivision Sub -Unit
Number 47 of Unit Number 2033; and
WHEREAS, the construction of the above improvements on the
above -mentioned streets was performed under the supervision of the
City Engineer, and said improvements have been completed and have
been inspected and found to have been constructed in accordance with
City specifications and in accordance with the provisions of City
Ordinance 1331; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the improvements on said portions of the
above -mentioned streets BE and the same are hereby accepted and the
City Engineer BE and he is hereby authorized to notify the developer
of acceptance by the Lubbock City Council.
SECTION 2. THAT this resolution shall take effect and be in
force from and after its passage.
446
July 14, 1988
Passed by the City Council this 14th day of August, 1988.
/s/ B. C. McMinn
R. C. McMINN, MAYOR
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
IsZ Larry Hertel /s/ J. Worth Fullingim
Larry Hertel, Acting City Engineer J. Worth Fullingim,
Assistant City
Attorney
88-47B=445-433
( 9.)
This is a routine acceptance of improvements
required at the time of platting. This new
subdivision is situated on the north side of 34th
Street between Elm and Cedar Avenues. The
improvements consist of removal of the paving
stubs at Elm and Cedar Avenues, which were closed
in the replat, and the construction of curb and
gutter to meet code requirements. There is no
City cost due the Contractor. Staff recommended
approval.
Motion was made by Councilman Patterson, seconded
by Councilman Carpenter to authorize Resolution
#2875 as recommended by Staff. Motion carried:
5 Yeas; a Nays.
RESOLUTION #2875
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the Mayor of the City of Lubbock BE and is
hereby authorized and directed to execute for and on behalf of said
City the cover (title) Sheet for the State of Texas Department of
Highways and Public Transportation plans and specifications for U. S.
87 Riprap Repairs at 82nd Street, 98th Street, 114th Street and F.M.
1585.
July 14, 1988
447
SECTION 2. THAT the execution of the Cover (title) Sheet by the
Mayor was requested by said State Department by letter dated June 28,
1988, addressed to Mr. Larry Cunningham, City Manager of the City of
Lubbock.
Passed by the City Council this 14th day of July, 1988.
ATTEST:
Isl Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Larry Hertel
Larry Hertel, Acting City Engineer
Assistant
/s B. C. McMinn
B. C. McMINN, MAYOR
APPROVED AS TO FORM:
/s1 J. Worth Fulling!m
J. Worth Fullingim,
City Attorney
This State project includes repair and
replacement of riprap at the overpasses at four
locations (82nd Street, 98th Street, 114th Street
and F.M. 1585) on U.S. 87 (Tahoka Highway).
Staff recommended approval.
Motion was made by Mayor Pro Tem 8aker, seconded
by Councilman Maloy to authorize Resolution #2876
as recommended by Staff. Motion carried: 5
Yeas; 0 Nays.
88-47B-447-434
(10.) Consider request of Chevron U.S.A., Inc. to
reduce the $25,000 bond on H. Newton Oil Well No.
2 to $10,000.
This is a routine request, as authorized in the
Oil Well Drilling Ordinance. All work has been
completed in conjunction with drilling of this
well, and the Ordinance allows a reduction of the
amount of the band. Staff recommended approval
of this request.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to approve request of
Chevron U.S.A., Inc. to reduce the $25,000 band
on H. Newton Oil Well No. 2 to $10,000. Motion
carried: 5 Yeas; 0 Nays.
B8-47B-447-435
(ll.j Consider Ordinance #9211 abandoning and closing
portions of a Storm Water Storage and Drainage
Easement located in Section 15, Block E-2.
ORDINANCE #9211
AN ORDINANCE ABANDONING AND CLOSING PORTIONS OF A STORM WATER
STORAGE AND DRAINAGE EASEMENT LOCATED IN SECTION 15, BLOCK E-2,
LUBBOCK COUNTY, TEXAS, AND MORE PARTICULARLY DESCRIBED IN THE BODY OF
THIS ORDINANCE; DIRECTING THE CITY ENGINEER TO MARK THE OFFICIAL MAPS
OF THE CITY OF LUBBOCK TO REFLECT SAID ABANDONMENT AND CLOSING;
PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION.
448 July 14, 1988
These three portions of a Storm Water Storage and
Drainage Easement are located between 82nd Street
and 84th Street, west ❑f Vicksburg Avenue in an
unplatted commercial area of the Lakeridge
Country Club Estates Addition. The proponent of
this closure is Larry Teaver for Lakeridge, the
original dedicators of this Easement. The reason
for this closure is for platting and commercial
building purposes. The three areas t❑ be closed
contain 29,285.3 sq.ft., 1,955.6 sq.ft., and
22,866.4 sq.ft., for a total closure area of
54,107.3 sq.ft. They are dedicating a 12,057.5
sq.ft. Underground Utility Easement and a 3,658.3
sq.ft. Storm Water Storage and Drainage Easement.
Also, a Cut -and -Fill Plan has been filed to
offset the Easement area being closed. The plat
has been filed and all utilities are in
agreement. Staff recommended approval.
Motion was made by Councilman Carpenter, seconded
by Councilman Patterson to pass on first reading
Ordinance #9211 as recommended by Staff. Motion
carried: 6 Yeas; 0 Nays.
88-47B-448-436
(12.) Consider Resolution #2877 approving the Lubbock
Hous i na Authority's apgl i cation for "Front End
Annual Contribution Contract" ACC funding for
Low Rent Public Housing tannin .
RESOLUTION #2877
RESOLUTION APPROVING APPLICATION FOR FRONT-END ACC FOR LOW -RENT
PUBLIC HOUSING
WHEREAS, it is the policy of this locality t❑ eliminate
substandard and ❑ther inadequate housing, to prevent the spread of
slums and blight, and to realize as soon as feasible the goal of a
decent home in a suitable living environment for all of its citizens;
and
WHEREAS, under the provisions of the United States Housing Act
of 1937, as amended, the United States ❑f America, acting through the
Secretary ❑f Housing and Urban Development (herein called the
"Government"), is authorized to provide financial assistance t❑ local
public housing agencies for undertaking and carrying out preliminary
planning of low -rent housing projects that will assist in meeting
this goal; and
WHEREAS, the Act provides that there shall be local
determination of need for low -rent housing to meet needs not being
adequately met by private enterprise and that the Government shall
not make any contract with a public housing agency for a fron-end ACC
for surveys and planning in respect to any low -rent housing projects
unless the governing body of the locality involved has by resolution
approved the application ❑f the public housing agency for such front-
end ACC; and
WHEREAS, the Housing Authority of the City ❑f Lubbock [herein
called the "Local Authority"] is a public housing agency and is
applying to the Government for a front-end ACC t❑ cover the costs ❑f
surveys and planning in connection with the development of low -rent
housing;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
SECTION 1. That there exists in the City of Lubbock a need for
such low -rent housing which is not being met by private enterprise.
July 14, 1988 449
SECTION 2. That the application of the local Authority to the
Government for a front-end ACC for surveys and planning in connection
with low -rent housing projects of not to exceed approximately 130
dwelling units is hereby approved.
Passed by the City Council of the City of Lubbock this 14th day
of July, 1988, on the motion of Councilman Carpenter, seconded by
Councilman Patterson, by the following vote: 6 yeas, O nays.
s B. C. McMinn
B. C. McMinn, Mayor
ATTEST:
/sZ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
s Sandy Ogletree
Sandy Ogletree, Community
Development Administrator
APPROVED AS TO FORM:
Is1 James Brewster
James Brewster, Civil Trial
Attorney
The Lubbock Housing Authority requested support
for the submission of an application to the
Department of Housing and Urban Development for
"Front End Annual Contribution Contract" (ACC)
funding to prepare detailed design and reha-
bilitation specifications for replacement
housing. This is a preliminary application,
which, if approved by HUD, will allow the LHA to
develop and submit a more detailed application
for funding for acquisition, rehabilitation and
other expenses for the replace-ment of the 130
units at Hub Homes.
As background to this application, the LHA is
currently negotiating the sale and disposition of
Hub Homes to the State Department of Highways and
Public Transportation since a portion of Hub
Homes is included in the right-of-way of
Interstate 27. Currently, the State has a
pending application with HUD to demolish the Hub
Homes project which will provide relocation
benefits to the current residents of the complex.
Hub Homes has a total of 130 units which includes
28 1-bedrooms, 53 2-bedrooms, 37 3-bedrooms, and
12 4-bedrooms. The LHA and the City of Lubbock
have a need for additional housing for low and
moderate income elderly persons. The LHA has
also begun the investigation of possible sites
for an elderly complex, two of which are the
Pioneer Hotel and the Civic Center Inn, both
located in the downtown area. No estimate has
been made by the LHA as to the number of
renovated LHA units there would be in the Pioneer
Hotel; the Civic Center Inn has the potential for
approximately 50 renovated units. In light of
the current development of a Central Business
450 July 14, 1988
District Revitalization Plan, the LHA staff met
with the representatives of the consulting firm,
RTKL, and discussed the projects. LHA also
presented the proposals to Downtown Lubbock, Inc.
and the Central Business District Steering
Committee.
The LHA will also seek additional 2-bedroom units
as replacements for the 3 and 4 bedroom units at
Hub Homes. It is the objective of the LHA to
replace all 130 units with housing for the
elderly and small families, since these are cur-
rently the areas of primary need for low and
moderate income housing.
If HUD approves this application for funding, the
LHA will prepare detailed proposals for the
replacement housing which will be presented to
the City Council for review and support prior to
submission to HUD. It is anticipated that the
HUD decision on this application will be made by
mid -September. The LHA application will receive
a priority rating due to the pending demolition
request and disposition to the SDHPT.
Staff recommended approval and minuted action
reflecting the concerns of the Central Business
District Steering Committee as follow: 1) that
the projects be limited to elderly housing units,
and 2) that any restoration or renovation be tied
to the historical character or other design
considerations as recom-mended by the Central
Business District Plan.
Councilman Maloy stated that he believes there is
a definite need for additional housing, and
questioned why two facilities in downtown Lubbock
are being considered, since these are not close
to shopping, and also since there are many other
locations available in Lubbock which would be
more accessible.
D. C. Fair, from the Lubbock Housing Authority,
stated that these are suggested because they
could be maintained in a way to afford protection
for the elderly. He went on to say that
hospitals are nearby, and that there is the
possibility of having Citibus service and bus
service by the Housing Authority to provide
transportation for the tenants to shop. He
stated it would be more economical to locate an
existing facility, than to build one, and that
use of an existing facility would be given a
higher priority by HUD than building a new
project.
Councilman Maloy asked what the cost would be,
and Mr. Fair stated that the cost is unknown at
this time. He said that a HUD formula would have
to be applied to determine the allowable
replacement cost per unit.
Councilman Carpenter stated he has personal
knowledge of the maintenance problems with the
mechanical system at the Civic Center Inn, and
that the facility has gone through its life span
and then asked if the structure would be
completely redone. Mr. Fair replied that the
facility would be renovated into 1-bedroom and
efficiency apartments, and that a large
July 14, 1988 451
percentage would have to be redone. He said
their intent is to take advantage of the load
baring walls. Mr. Carpenter asked what would be
done about the heating/air conditioning system,
and Mr. Fair replied that it probably would have
to be replaced.
Councilman Malay asked why other existing housing
is not being considered in light of the high cost
factor of this proposed acquisition and
renovation. Mr. Fair stated that several
facilities had been considered, but because of
the July 15, 1988 deadline for submission of the
application, availability of the facility is a
prime issue. He said that because of the
vacancies in Lubbock, new construction was, in
their opinion, not acceptable. Efforts had been
made to locate projects in receivership, and it
was determined that there are none in Lubbock.
Because this facility has been vacant for four
years, and because other cities renovate these
types of facilities for housing for elderly, this
facility was suggested.
Mayor Pro Tem Baker asked if the application is
made on one of these pieces of property --Civic
Center Inn or Pioneer hotel-- could it be amended
at a later date to change the location. Mr. Fair
stated that the application would be tied to that
piece of property and that renovation of that
facility would be less costly than building a new
high-rise facility. Councilman Patterson stated
that he favors this request.
Councilman Malay asked how the assumption could
be made that renovation will cost less than
building a new facility. He then stated that
based on an estimated $700,000 purchase price, it
would cost approximately $12,000 per unit to
purchase the facility and another $10,000 per
unit for renovation, and that almost any well-
built, new apartment property which is near
shopping and hospitals, would be much less than
$22,000 per unit. Mr. Fair pointed out that
Public housing program in Lubbock has been
progressive and aggressive in every way, but that
Public housing is not accepted in many areas of
town. Also, he said that federal regulations do
not allow location of new public housing in a
predominantly minority area.
Mayor Pro Tem Baker asked if the process was to
send in the application to HUD, then they make an
allotment of a specific amount, and if that was
why Mr. Fair did not know what the cost of this
project would be. Mr. Fair said that only so
much is allowed per unit, and that if HUD would
authorize the funds, the price of the buildings
could be negotiated to much less than the asking
price, but that because of the structure of the
programs, the cost is much greater.
Mr. Fair pointed out the high cost of labor, due
to the regulations of the Davis -Bacon Act, and
Councilman Carpenter responded that if new
property were purchased, the Davis -Bacon rates
would not apply. Mr. Fair said that HUD has sent
an announcement that existing facilities have
priority over new facilities, because of the
problem of property vacancies in cities.
452
July 14, 1988
Councilman Carpenter stated that he does not
oppose having a downtown location or renovating a
building, but rather is concerned with
maintenance costs of the Civic Center structure.
Mr. Carpenter concurred with Councilman Maloy
that the government will be wasting taxpayers'
money and sometimes Council has to say no. Mr.
Carpenter said that other cities do not have the
land to spread out for these type facilities and
that the City of Lubbock has relatively
inexpensive land and can spread out further or
use other buildings.
Councilman Patterson pointed out that this was
meant to enhance the downtown area and that is
what he is concerned with; to bring people
downtown with security. Councilman Maloy stated
that he understood about the enhancement of the
downtown area, but said he does not feel that the
long-term goal was to make it a housing area, but
a business and commerce area. Mr. Maloy stated
that housing is the most critical thing and if
federal funds are available, then it should be
used to help create a better environment and
further stated that he would not want senior
citizen housing downtown where they may not want
to live.
Mr. Fair said that any new construction based on
the notice that was sent out, would have to be
large family units and that they are requesting a
waiver to use this application for replacement.
Councilman Carpenter asked Mr. Fair if he thought
that the proposed operating budget for these
proposed buildings would be sufficient to
maintain and operate the facility.
Mr. Fair replied that he feels that they will.
He further stated that it has been several years
since they have received any subsidy for
management, and he feels they will be able to
operate it to the City's satisfaction.
Mayor Pro Tem Baker stated that she feels the
Council is in a precarious situation because they
understand that there has to be a place for the
people who are going to be displaced from their
homes and have stated their support for public
housing. She went on to say that she has an
additional problem with this in that she is not
sure the City is spending the money wisely but
then the Central Business district Steering
Committee has recommended Council approval of
this request. Ms. Baker said she personally
wished that there had been a member of that
Committee present so that they could discuss it
with them and find out what their thinking was.
Ms. Baker further stated Council is also
concerned about the downtown district they are
trying to revitalize and how to make best use of
the property downtown. She said she would like
to know what the Steering Committee's
recommendations are because of the questions
raised that need their reasoning.
July 14, 1988 453
Mayor McMinn said Council received the letter of
June 29 and that the subject is economics and
also questioned the locations. He stated that as
far as the question about being close to
shopping, even though Council may raise questions
about government spending, they are running
against a time frame. Mayor McMinn noted the
work which has already been done on this and
apprised Council that the Steering Committee has
looked at this in detail and stated that Council
needs to consider approval of the application.
Mr. Carpenter asked, of the people that are being
displaced by the highway, how many would be
eligible to move into this project. D. C. Fair
noted that those that aren't elderly will not go
into that project. Mary Myers, Assistant
Director of Lubbock Housing Authority, replied
that there are 47 elderly, with 5 of these being
couples.
Mr. Maloy asked that if the July 15 deadline is
missed, would there be another process to make
these applications since Council heard the case
just one day before the deadline and he was not
comfortable with it. Mr. Fair said he had
checked on the possibilities of an extension
before he began the process and that there was no
other process. Mr. Fair said that the notice
came out in May and that they followed all the
preliminary procedures before coming before
Council. Mayor Pro Tem Baker said that the
Council's dilemma was that they were trying to
support what he (Mr. Fair) was trying to do, what
the Business District Committee was trying to do
and that yet Council is trying to also be true to
their own cause and make the best use of the
money available. Mr. Fair said that if the
Business District had not supported it, he would
not have come before Council. Mayor Pro Tem
Baker replied that she wanted the Central
Business District Committee to tell Council why
they think it would help downtown as well as
helping the elderly.
Mr. Carpenter asked if, for some reason the
application is not approved, what would be the
next step and Mr. Fair replied that he did not
know and stated that the application is presently
in Washington to demolish the Hub Homes.
Mr. Carpenter asked what would happen to these
people if it is approved. Mr. Fair replied that
some would have to be overhoused in existing
units, that some would have to be given Section 8
certificates to go out and try to find a place,
but that none of them will be put on the streets
and all will be housed. He reported that they
had $1,800,000 to spend on Hub homes and were
told not to spend it because of the situation.
Councilman Maloy asked if the application was for
the Civic Center Inn or the Pioneer Hotel.
Assistant City Manager Jim Bertram replied that
the application is for 130 units of replacement
housing and mentions the two downtown locations
that the Housing Authority are going to look at,
but that those are not the only two that Council
is limited to, and Mr. Fair concurred. Mr.
Bertram went on to say that the application is
454 July 14, 1988
88--47B-454-437
(13.)
for planning funds to look at those locations and
others, if those two prove not to be feasible,
but that no matter what the final proposals are,
those applications have to come back to Council
before they are submitted to HUD. Mr. Maloy
asked if Council could approve the resolution
with a limitation that it not specifically be
tied to these two downtown facilities. Mayor
McMinn said he did not mind it being downtown,
but he did not feel that those two facilities
were the best built structures. Mr. Bertram
further said that this plan would fit well into
plans for downtown revitalization.
Motion was made by Councilman Carpenter, seconded
by Councilman Patterson to approve Resolution
#2877.
Mayor Pro Tem Baker stated that the application
was applying for replacement. Mr. Bertram
informed Council that these are planning funds
only, and that before they can submit an actual
plan to HUD for the actual funding, they have to
come back to Council for approval. Councilman
Carpenter said he thought Council should approve
it on the basis of the feasibility study and that
they are not approving any one project. After it
goes back for study and funds are available, they
will find that those two pieces of property are
too expensive and they can find good locations in
the downtown area for the senior citizens. He
stated he is in favor of doing that and that his
only objections to this item were to those two
pieces of property.
Motion carried: 5 Yeas; 0 Nays.
Consider Resolution #2878 authorizing the .Mayor
to execute an Amendment to a_Funding Agreement
with Guadalupe Economic Services Corporation._
RESOLUTION #2878
BE 'IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby
authorized and directed to execute for and on behalf of the City of
Lubbock an Amendment to an Emergency Shelter Grant Funding Agreement
by and between the City of Lubbock and Guadalupe Economic Services
Corporation, attached herewith, which shall be spread upon the
July 14, 1988
455
minutes of the Council and as spread upon the minutes of this Council
shall constitute and be a part of this Resolution as if fully copied
herein in detail.
LS1 B. C. McMinn
B. C. McMinn, Mayor
ATTEST:
Zsl Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
lam' -Sandy O letree
Sandy Ogletree, Community
Development Administrator
APPROVED AS TO FORM:
Z—sz' James Brewster
James Brewster, Civil Trial
Attorney
On June 25, 1987, the City Council passed a
resolution authorizing the Mayor to execute a
Funding Agreement with Guadalupe Economic
Services Corporation which provided them with
$30,000 from a Grant which the City received from
the Texas Department of Community Affairs' (TDCA)
Emergency Shelter Grant Program. The Grant
funded the renovation of a homeless shelter at
2701 Clovis Road which began operating in
December, 1987.
Guadalupe Economic Services Corporation has asked
that the termination date of the Agreement be
extended from the original date of June 24, 19B8,
to August 28, 1988. In addition, they have
requested that the Performance Statement be
amended to allow more expenditure of funds in the
Renovation/Major Rehabilitation Conversion
category. These two changes will allow Guadalupe
Economic Services to make needed repairs to the
parking area which services its homeless shelter.
Both of the changes would be in compliance with
the City of Lubbock's Emergency Shelter Grant
Program Contract with TDCA and is subject to
approval by TDCA. The total amount of the Grant
will not change.
Guadalupe Economic Services Corporation is
matching these Grant funds with the value of the
lease on the building, donated labor, the value
of time and services of volunteers, donated
materials and food, and private donations. Staff
recommended approval.
Motion was made by Mayor
by Councilman Patterson
#2878 as recommended by
5 Yeas; 0 Nays.
88-478-455-438
(14.) Consider Resolo
to sign a Contr
25th Street and
Pro Tem Baker, seconded
to authorize Resolution
Staff. Motion carried:
456 July 14, 1988
RESOLUTION #2879
8E IT RESOLVED 8Y THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby
authorized and directed to execute for and on behalf of the City of
Lubbock an Architectural Services Agreement by and between the City
of Lubbock and Atcheson & Associates to provide professional services
for the construction of Fire Station No. 3, 25th & Milwaukee Avenue,
attached herewith, which shall be spread upon the minutes of the
Council and as spread upon the minutes of this Council shall
constitute and be a part of this Resolution as if fully copied herein
in detail.
/S/ B. C. McMinn
B. C. McMinn, Mayor
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Lsj' Rita Harmon
Rita Harmon, Assistant City Manager
for, Public Safety & Services
APPROVED AS TO FORM:
ZsZ Donald G. Vandiver
First Assistant City Attorney
This Project will be funded by 1981 General
Obligation Bonds. The location is the northeast
corner of 25th Street and Milwaukee Avenue, Lots
1, 8, Block 18, West End Place.
The City of Lubbock has a set of drawings from a
previously constructed fire station which will be
used as a guide for the basic design for the
Project. The architect hired for the job will
adapt the building to the lots available, plan
the parking lot and traffic pattern, work with
representatives of the Fire Department in regard
to design modifications and supervision of the
project during construction, inspect the work
during construction to assure that the builder is
following the plans, and make sure that proper
tests are conducted during construction.
Following the presentation of the recommendation
of the Architectural Selection Committee at the
June 23 Council work session, the Council
authorized Staff to negotiate a Contract with
Atcheson and Associates.
The Committee recommended that Staff enter into a
Contract with the firm of Atcheson and Associates
based on a fixed fee of $16,500 and a rating of
number one on the Committee's evaluation. Mr.
Michael E. Atcheson designed Fire Station No. 13
in 1981, the prototype of the proposed facility,
July 14, 1988 457
and is thoroughly familiar with the product
desired. Steven P. Daughtry, P.E., A.I.A.,
Engineer and Architect, represents the firm of
Allied Associates, Lubbock, Texas and will
provide structural, plumbing, mechanical and
electrical engineering expertise for the Project.
Atcheson and Associates will approach this
Project as a new facility and document
accordingly, not assuming anything from the past
as correct and using the most up-to-date con-
struction methods, materials and economy of
design.
This fire station will also be designed to
accommodate a District Chief's living quarters
and office space which will add approximately 700
square feet to the facility. Mr. Atcheson
estimated the projected cost of construction
would run between $260,000 and $297,000.
Mr. Atcheson's initial fee for all the required
basic service was reduced from $17,820 to $16,500
after negotiating with Staff on July 1, 1988.
The construction phase is projected to begin
January 2, 1989, with acceptance scheduled for
June 2, 1989.
Staff recommended that the Council approve the
proposed Contract with Atcheson and Associates.
Motion was made by Councilman Carpenter, seconded
by Councilman Phillips to authorize Resolution
#2879 as recommended by Staff. Motion carried:
6 Yeas; 0 Nays.
88-478-457-439
(15.} Consider Ordinance #9212 setting the sewer rate.
ORDINANCE #9212
A.00L,f:LWN11 :
AN ORDINANCE AMENDING SECTION 28-92 OF THE CODE OF ORDINANCES
OF THE CITY OF LUBBOCK, TEXAS, IN ITS ENTIRETY SO AS TO CHANGE THE
RATES FOR SEWER SERVICE WITHIN THE CITY OF LUBBOCK EFFECTIVE AUGUST
1, 1988; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
Consistent with directions by the City Council on
the improvements for the land application site,
Staff recommended this Ordinance for setting of
the sewer rates to pay the debt service on the
proposed financing.
The Ordinance provides for an increase of 75¢ on
August 1, 1988 and another 75¢ increase on
January 1, 1989. This rate adjustment is
according to the plans as presented in the Budget
Work Sessions and as recommended by Staff.
Mayor McMinn announced that this item was briefly
discussed and that basically they decided 75t
would be imposed August 1, another 75¢ would be
imposed in January for a total of $1.50.
Councilman Carpenter asked what indebtedness this
would cover. Robert Massengale, Assistant City
Manager for Financial Services, replied that the
458 July 14, 1948
rate is designed to cover the proposed
indebtedness that they would be issuing on the $5
million CO's for the projects to be done in 1988-
89 plus the operating expenses. Councilman
Carpenter asked if this was only for the $5
million and Mr. Massengale said that it was only
for the $5 million and did not include any future
debt service. Councilman Carpenter then asked
what percentage of that is operating and what
percentage is construction. Mr. Massengale
replied that he did not have the percentages, but
that the majority of it is for operating
expenses.
Councilman Carpenter asked what it would take to
pay the $5 million indebtedness back and Mr.
Massengale said that the debt service schedule on
the $5 million was included in the backup and
explained that the way the schedule has been
designed, it includes future issues and past
issues. The third set of figures is the debt
service for the $5 million. Mr. Massengale went
on to say that the total for 1989 would be
$365,000 and will graduate up based on the
maturity schedule, to 1996, which would be the
peak. Councilman Carpenter stated he would still
like to know how much of that rate, the 75t and
the 75t, is going to be allocated to the bonds.
Mr. Massengale gave an approximate figure of 33%
of the $1.50 and said that it would be 75t for
six months and $1.50 for the next six months.
Councilman Carpenter asked if the other 75t would
not change so it would be $1.50 after six months,
and Mr. Massengale said that was correct and went
on to say it would produce more the next full
year and would cover some of increase in the debt
service.
Mayor Pro Tem Baker asked if 50t of the $1.50 is
going towards debt service, and Mr. Massengale
said that was an approximate figure and that it
would be more the next year --that it would flow
with the debt service. Ms. 8aker asked if most
of the $5 million would go for operating expenses
and Mr. Massengale replied that the $5 million is
all capital and that some of the rate increase is
for operating. Councilman Carpenter asked if 50t
of it retires the $5 million debt as an average,
and if the other $1.00 is for operating expenses,
and Mr. Massengale said that in 1988-89 this is
correct, but then more of it will go to debt
service the next year, then the next year.
Councilman Carpenter asked how much more and Mr.
Massengale stated that it will be based on the
way that the debt service increases up to 1996.
Councilman Carpenter asked if at that time Staff
would have to come back to Council and report the
debt service has gone up, and that the rate will
have to be increased to pick up the service from
the previous operation. Mr. Massengale replied
that it would not be from this $5 million and
that there are some of the older bonds that will
be maturing every year allowing money to be
available to assist in this --they will not have
to raise the rate anymore, for that $5 million or
service to it.
July 14, 1988 459
For the benefit of those in the audience, Mayor
McMinn stated that the bulk of this $5 million
would be to build the 500 million gallon storage
facility, but that it will cost somewhat less
than $5 million. Councilman Malay stated that
when they discussed this in a previous work
session he understood that the $1.50 was to go
for 100% bond retirement, and that now Staff is
saying 57% of it will go to operating expenses.
Mayor McMinn said he did not recall anyone saying
100% of this $1.50 would go toward bond
retirement. Councilman Malay recalls the
question being asked about how the City would pay
for this $5 million, and when they agreed to
raise the sewer rates (750 and then 75t again),
he did not hear anyone say they had a shortfall
in the operating revenues, and that the sewer
rates would have to be raised. Mr. Massengale
replied that they have not had a shortfall on the
operating revenues, but a major increase in
operating expense.
City Manager Larry Cunningham reported that they
have added several acres of land that are having
to be farmed and also changing the cropping
pattern. Councilman Maloy said he was aware of
all that, but that he thought the $1.50 was going
to the entire debt, not 57% of it to increase
operating expenses. Mayor McMinn stated they did
not discuss percentages at that briefing, and
that he did not hear anybody say all of it would
go to debt service. Councilman Carpenter stated
he did not hear anyone say any of it was going to
service --that all he heard was what Councilman
Maloy said, and that he just wanted to be sure
that Council didn't approve this and then come
back and get an answer that the debt service has
peaked and that Council would have to come back
and modify the service portion again. Councilman
Carpenter said that during the same briefing,
they were told they were going to have to come
back and do some additional work and sell
additional bonds next year, but that he was not
aware that Staff was going to refinance the
short-term bonds.
Mr. Cunningham stated that in the Council work
session on June 23, there was written information
as well as the discussion. Staff indicated they
would be recommending an increase of 75t in
August, 750 in January, and also the refinancing
of the debt already issued for the Grey site, and
if that was the way Council wanted to go, it
would be brought to them on July 14. 1n the
overall discussion, Mr. Cunningham said the
primary purpose was for capital improvements on
the reservoir, financing the operations, and the
debt service. Mr. Cunningham expanded on Mr.
Massengale comments and said that on this first
year of the debt quite a bit of the money will be
allocated to take care of the increased cost with
the additional acreage, etc. and also the losses
in revenue simply because they're going from the
cash crop to the more water user type crops. He
stated that in the following years as more debt
is paid for and debt service increases, the
percentage will go up, but that in looking at the
460 July 14, 1988
composite of all of the expenses, operating and
debt, the $1.50 plus the refinancing will take
care of the indebtedness being proposed --the $5
million plus the operations. When talking about
the stream quality plan (a different situation),
this will necessitate more funding.
Councilman Maloy said if currently 67% of this
$1.50 increase is going to operating expenses,
then in 1996, rather than pay $365,000 in debt
service, it leaves $613,000 in debt service. At
that time probably 60% of the money is going to
debt service as opposed to 33%. Are they going to
be able to effectively lower operating expenses
substantially by 1996, so that this $1.50
continues to cover the costs? Mr. Massengale
stated Council would probably have an opportunity
to consider this at that time because they are
going to be peaking on the debt service in the
next few years and the rate would be going up to
meet that debt service. After that it starts
falling off. If operating expenses have not gone
up, he thinks they could have an opportunity at
that time to adjust the rate if the rate is more
than necessary. Mr. Massengale stated he also
knew when they did the five-year maturity on the
1986 CO's that they would have a drop off in rate
if they didn't do anything else at the end of
five years, but all the additional requirements
came up.
Councilman Carpenter stated they all know it's
peaking and it may come down. But they're also
looking at another $26-30 million financing need
depending on the State and what they do. They
are not looking at any costs to come down and he
doesn't want to give any false impressions that
it will come down, because the way he looks at
it, it's only going to go up. Councilman Maloy
said his fear is that they may not be increasing
it right now sufficiently to build a cover
because if they're having to pay 67% of the
increase for operating expenses and that number
will be forced to be reduced 35-40%. If it does
not increase much more than that, he asked where
the rest of the money would come from. Mr.
Massengale said that theoretically the 67% could
still be applied to operations because there's
other cash that will be available from decreasing
debt service on prior issues. Councilman
Carpenter said his question is after the $1.50
goes into effect there probably is not enough to
service the increased debt. They know they're
going to have the additional expense coming up.
Would it not be better to gradually increase some
of the rates and build a reserve that they could
be drawing interest on, instead of paying later
when the next project comes up, level out the
rate increases and have a reserve on hand which
would not be tapped for anything except for this
next project which is already on the board. Mr.
Massengale agreed, and said their objective in
designing the rate has been to keep it at
strictly what was needed and when they needed it.
July 14, 1988 461
Councilman Carpenter said he meant that Staff
knows that they're going t❑ go up $4 or $5. He
did not think the citizens of Lubbock would
appreciate knowing that rate increases were going
for interest when they could have maybe gone with
$2-$2.50 and built part of it up in a reserve.
Mr. Cunningham stated that to raise the amount
that is needed to do the capital projects in the
high period, the rate would have to be tripled or
quadrupled. Mr. Massengale stated they could do
a number of variations and that he would agree
that if the big rate up front could be feasible
with all customers, then that's financially
better. Councilman Carpenter stated that if they
had three years head start on it at a reasonable
rate, then they could maybe avoid that high peak.
If they had already pre -collected and had that in
reserve when the next phase of projects comes on,
instead of going up $4 or $5, they might be able
to hold it to the $2 or $3 range. Mr. Massengale
said the rate could be raised more now and
possibly peak at less. Councilman Carpenter went
on to say that once it peaks and the debt service
on a 12-year refinancing begins to come off, then
they would begin to pick up some additional
leverage from the fact that some of the bonds
will have been matured. He just couldn't see
them all of a sudden hitting everyone with such
an exorbitant increase.
Mayor Pro Tem Baker stated her opinion that the
main thing Council was looking at when they
issued the 1986 CD's for five years was a short
term pay -back so they wouldn't have to have an
exorbitant interest cost. Now they're extending
through the refinancing to 12 years. This is more
than doubling the original maturity. Touching on
what Councilman Carpenter and Councilman Maloy
said, Ms. Baker stated it seems they are raising
the rate because there is a need for operating
money in which case she definitely thinks they
ought t❑ look to increase the sewer charge to
maybe $1.50. They should be financing the
operating expenses in this manner. Councilman
Maloy asked if the $1.50 raises them to $6.50.
Mr. Massengale replied that it depends and gave
the following example: at 6,000 gallons it would
be $6.34 at a minimum. Councilman Malay asked if
in 4 or 5 years that number would go to $13-$14.
Mr. Massengale replied that assuming they don't
get any more requirements from the EPA, it would
go to $10 or so.
Councilman Maloy said he understands Staff does
not know in advance and expanded on Councilman
Carpenter's comments that rather than go up $1.50
now and leave it stable, instead, get it up to
where it ought to be now, and then during the
years when money is not needed, keep it in some
form of reserve. He stated he wants to make sure
it is an isolated reserve and set aside. Mr.
Massengale stated they did something similar in
the water fund and put the money in a rate
stabilization fund. Councilman Carpenter stated,
instead of paying such a high rate of interest to
whomever buys the bonds, he would not set the
rate at 75¢ and 75�, he'd put it at $1.50 and
$1.50. Staff will have to know what would be
feasible and then have it on hand, or at least
have a portion of it and have a rate structure
462 July 14, 1988
already built in to pay the bonds. They know
they'll have to sell the bonds for the other big
projects and they'll never have that kind of
reserve, but it would be better management to
accumulate funds for those projects.
Mayor Pro Tem Baker made a suggestion that after
the vote and maybe at the next Council meeting,
they appoint a temporary tax advisory committee
to look at how Council should finance the
additional improvements or requirements at the
sewer farm. They should look at the list of
capital needs and the overall debt of the city
and make a recommendation to the Council as to
how the sewer farm improvements or requirements
should be financed. They should take a look at
how much debt Lubbock can afford and in addition,
they should set up some guidelines for issuance
of certificates of obligation so council can have
something to rely on. She thinks a committee
should be made up of bankers and business people,
not 100% bankers, but people in the business
community who understand financing who would make
the best recommendation to Council as to how
Lubbock and council can meet financial needs.
Mayor McMinn agreed and stated this has been
discussed before and if it was the consensus of
Council they would appoint such a committee.
Councilman Carpenter asked Mr. Massengale if it
would be proper to pass the bond resolution
without setting the rate until such time as Staff
has determined a rate which would keep it from
peaking out. Mayor Pro Tem Baker suggested
Council approve the 75� increase for August and
hold off on the other rate increase or come back
later and amend the ordinance if the figures
prove this is needed.
Motion was made by Councilman Carpenter to
approve Ordinance #9212 with the 75¢ rate
increase to be in effect August 1, and instructed
Staff to come back to Council with a proper
recommendation to keep the rate from peaking out
when the additional bonds are sold. Council will
act on it at that time and in the mean time the
first 75� increase will go into effect. Instead
of having the second 75� increase, they will take
up whatever rate should be applicable at that
time. Mayor Pro Tem Baker said they would need
the input from the committee if it is appointed
before the additional increase is set.
Councilman Carpenter requested Staff to come back
with new numbers prior to setting the next rate
increase. The motion was seconded by Councilman
Maloy. Motion carried; 6 Yeas; 0 Nays.
88-47B-462-440
(17„) Consider Resolution #2880 authorizing publication
of Notice of Intention to issue Certificates of
Obligation.
RESOLUTION #2880
A RESOLUTION APPROVING AND AUTHORIZING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CERTIFICATES OF OBLIGATION.
July 14, 1988 463
WHEREAS, the City Council of the City of Lubbock, Texas, has
determined that certificates of obligation should be issued under and
pursuant to the provisions of Subchapter C of Chapter 271, Local
Government Code, for the purpose of providing funds for the payment
of contractual obligations incurred with respect to (i) the purchase
of (a) additional land for authorized needs and purposes, to wit: a
sewer farm and (b) the expansion and upgrading of the land -
application site (including the construction of new irrigation
systems and piping on existing and newly acquired land, construction
of a terminal storage reservoir, and other construction and
improvement in connection therewith) and (ii) professional services;
and
WHEREAS, prior to the issuance of such certificates, the City
Councl is required to publish notice of its intention to issue the
same in a newspaper of general circulation in the City, said notice
stating (i) the time and place the Council tentatively proposes to
pass the ordinance authorizing the issuance of the certificates, (ii)
the maximum amount proposed to be issued, (iii) the purposes for
which the certificates are to be issued and (iv) the manner in which
the Council proposes to pay the certificates; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS:
SECTION 1: That the City Secretary is hereby authorized and
directed to cause notice to be published of the Council's intention
to -issue certificates of obligation in the principal amount not to
exceed $5,000,000 for the purpose of providing funds for the payment
of contractual obligations incurred with respect to (i) the purchase
of (a) additional land for authorized needs and purposes, to wit: a
sewer farm and (b) the expansion and upgrading of the land -
application site (including the construction of new irrigation
systems and piping on existing and newly acquired land, construction
of a terminal storage reservoir, and other construction and
improvement in connection therewith) and (ii) professional services,
such certificates to be payable from ad valorem taxes and a
subordinate lien on and pledge of the net revenues of the City's
Sewer System. The notice hereby approved and authorized to be
published shall read substantially in the form and content of Exhibit
A hereto attached and incorporated herein by reference as a part of
this resolution for all purposes.
SECTION 2: That the City Secretary shall cause the aforesaid
notice to be published in a newspaper of general circulation in the
City, once a week for two consecutive weeks, the date of the first
publication to be before the fourteenth day before the date stated
therein for the first reading of the ordinance authorizing the
issuance of the certificates of obligation.
PASSED AND APPROVED ON FIRST READING, THIS 14TH DAY OF JULY,
1988.
PASSED AND APPROVED ON SECOND AND FINAL READING, THIS 28TH DAY
OF JULY, 1988.
/s/ B. C. McMinn
B. C. McMINN, MAYOR
ATTE-ST:
LsL Ranette Boyd
Ranette Boyd, City Secretary
Lubbock, Texas
(City Seal)
464 July 14, 1988
This is the first step in the process of issuing
the $5,000,000 Combination Tax and Subordinate
Lien Revenue Certificates of Obligation. The
second reading will be during the July 28th
Council meeting. The Notice will be published
Sunday, July 31, 1988 and Sunday, August 7, 1988.
The first reading of the Ordinances to award the
refunding bonds and Certificates of Obligation
will be at the regular Council meeting held
August 25, 1988 and second reading will be during
a special meeting held on August 26, 1988.
Staff is proceeding with the combination of re-
funding of the 1986 Certificates of Obligation
and the issuance of $5,000,000 Combination Tax
and Sewer System Subordinate Lien Revenue
Certificates of Obligation. The proceeds of the
refunding bonds will be used to refund $2,700,000
outstanding Certificates of Obligation, Series
1986. The refunding will enable the City to more
efficiently provide for the Wastewater Treatment
and Effluent Disposal Improvement Program over
the period 1988-1991. The refunding will provide
for lower debt service payments in 1989, 1990 and
1991 by stretching the term to extend the debt
service obligations into years 1992 through 2000.
The proceeds from the 1988 Certificates of
Obligation will be used to fund the first phase
of a major Wastewater Treatment and Effluent
Disposal Improvement and Construction Program by
initiating the upgrading and expansion of the
City's Sewage Effluent Land Application Site
located adjacent to the City on the southeast.
Upgrading and expansion of the Site, including
purchase of 977 acres of land now under Lease -
Purchase Agreements, construction of a terminal
storage reservoir, replacement of existing
irrigation systems and piping on the City -owned
3,975 acres, and the construction of irrigation
systems and piping an the 977 acres to be
purchased, will permit the City to comply with
requirements for effluent disposal of the Texas
Water Commission. Financing alternatives
currently being investigated include the issuance
❑f additional Sewer System Improvement General
Obligation Debt (voted general obligation bonds
or additional certificates of obligation) and the
feasibility of applying for low interest loans
(currently 4%) from the Texas Water Development
Board's State Revolving Fund.
There are two options for handling the refunding
of the 1986 Certificates of Obligation and the
issuance of the $5,000,000 Combination Tax and
Sewer System Certificates of Obligation: One
option is to refund the 1986 CO's and provide the
private placement for these funds, which is the
normal method of refunding any issue, and then to
take bids for the $5,O00.000 in new CO's for the
storage reservoir; the second option is to
combine both the refunding and the sale of the
$5,000,000 into one negotiated sale. The City's
bond attorneys, financial advisors, and City
finance Staff recommended the combining of both
the refunding and the 55,000,000 sale into one
negotiated sale.
July 14, 1988
465
The proposed financing is unique in that it
combines an advanced refunding with a new issue,
and for that reason, Staff is able to negotiate
the rates rather than advertise for public bids.
Industry experience indicates that better rates
are received on negotiated issues.
Since the rating agencies have recently been
updated on the City of Lubbock, Staff requested a
rating without conferences in New York.
The underwriters being recommended by First
Southwest Company, the City's financial advisors,
to handle the refunding and sale are Thomson
McKinnon Securities, Inc., Lead Underwriter, and
Dean Witter Reynolds, Inc. These two were
selected after evaluation of the following
criteria:
1. Retail sales base available
2. Expertise in this type of sale
3. Local presence in the community
Therefore, Staff recommended proceeding with the
refunding and sale with Thomson McKinnon
Securities, Inc. and Dean Witter Reynolds, Inc.
as underwriters. Consensus of Council is all
that Staff needs at this point to proceed. The
final financing will be presented to the Council
on August 25, 1988.
Motion was made by Councilman Maloy, seconded by
Councilman Patterson to authorize Resolution
#2880 on first reading as recommended by Staff.
Motion carried: 6 Yeas; 0 Nays.
88-47B-465-441
(18.) BID #9820--Fire hose Fire Department).
Daco Fire Safety Equipment--4,500' 5" fire hose;
1,000' 2-1/2" fire hose; 2,500' 1-3/4" fire hose.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
88-47B-465-442
(19.) BID #9826--Tensioner„(Garage).
TSE Pengo International, Shreveport, LA--1 wire
tensioner.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
88-47B-465-443
(20.,) BID #9829--Traffic signal equipment (Traffic
Engineering).
Consolidated Traffic Controls, Arlington--4
Astro-Brat AB-102; 5 5-section programmable
traffic signal head.
Traffic Signal Control, Inc., Longmont, CA-4
Astro-Giac AB-103 w/tube extension; 4 Astro-Brae
AB-110.
466 duly 14, 1988
Traffic Parts, Spring--12 3-section traffic
signal head.
Reid Sales Agency--2 Type A pole, 40' mast arm; 1
Type A pole, 25' mast arm.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bids
meeting specifications. Motion carried: 6 Yeas;
0 Nays.
88-47B-466-444
(21.; BID #9831--Copper conductor_- 500 MCM, 15,000
volts (Central Warehouse).
Fields & Company--112,500' 500 MCM; 23,600 lbs
4/0 S.D. bare copper.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
88-47B-469V-445
(22.1 BID #9839--Electrical connectors - 15KV (Central
Warehouse).
Nelson Electric Supply--86 500 MCM pothead.
Cummins Supply, Amarillo--150 4/0 elbow.
Elastimold, Dallas--75 Bushing extension; 75
reducing tap well; 50 load break bushing; 200
600A elbow; 250 600A cable adapter; 60 600A
deadend plug; 300 600A ground device; 260 600A
insulating plug; 340 1/0 elbow; 300 500 MCM crimp
connector; 100 600A connector plug.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bids
meeting specifications. Motion carried: 6 Yeas;
0 Nays.
88-47B-466-446
(23.) BID #9840--Electrical conduit (Central_
Warehouse).
Temple, Inc.--400 5" 3-way spacer; 350 5" 3-way
spacer base; 150 5" 3-way conduit spacer cap.
General Electric Supply Co.--50,000' 5" PVC
conduit.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bids
meeting specifications. Motion carried: 6 Yeas;
0 Nays.
88-47B-466-447
(24.) BID #9841--Vacuum switches (Electric
Distribution).
Temple, Inc.--8 vacuum switch, 3-way, 3-switched;
3 vacuum switch, 4-way, 4-switched.
July 14, 1988
467
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
88-47B-467-448
(25.) BID #9808--Yearlyricing on pharmaceuticals
Health Departmentj_
Mission Pharacal Co., San Antonio--840 bl.
prenatal multivitamin w/folic acid, iron.
Goldline Laboratories, Ft. Lauderdale, FL--50 bl.
Gamma Globulin; 200 bl. Metronidazole; 600 bl.
Pyrinyl liquid, pediculcide; 100 bl. Lindane USP
1% shampoo; 50 bl. Lindane USP 1% lotion.
Ortho Pharmaceutical, Raritan, NJ--50
Contraceptive diaphragm, coil ❑r arching; 60
diaphragm jelly, 126GM tube; 3,000 contraceptive
foam w/applicator, 20GM; 360 Miconazole nitrate
tube w/applicator; 240 Miconazole nitrate, dual-
pak; 50 cs. Ortho-Novum 7/7/7; 5 cs. Ortho-Novum
10/11; 10 cs. Ortho-Novum 1/35; 5 cs. Ortho-Novum
1/50.
Care Pharmaceutical, Monsey, NY--90 bl.
Erythromycin base filmtab; 30 bl. Erythromycin
base or Stearate.
Lederle Laboratories, Wayne, NJ--10 bl.
Tuberculin, purified protein deriv.; 6 bl.
penicillin v potassium, 250 mg; 15 bl. penicillin
v potassium, 500 mg.
Rugby Laboratories, Westburg, NY--240 Sulfa
vaginal cream w/applicator.
Baxter Healthcare--10 bx. pregnancy test.
Barrett, Inc., Charlotte, NC--40 cs. condom
w/reservoir end.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bids
meeting specifications. Motion carried: 6 Yeas;
0 Nays.
88-47B-467-449
(26.) BID #9768--Temporary Employee Service (Personnel
Departments.
Boren Services --Cashier, Intermediate Clerk
Typist, Intermediate Clerk, Clerk Typist; Clerk,
Construction & Maintenance I; Grounds Maintenance
Worker; Food Service Assistant.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to accept low bid meeting
specifications. Motion carried: 6 Yeas; 0 Nays.
88-47B-467-450
(27.) Consider three appointments to the Citizens
Traffic Commission. The terms ❑f Alan Hatch,
Rita Wallace, and Harold Chatman expire on July
13, 1988.
� f i
July 14, 1988
88-47B-468-451
(28.)
88-47B-468-452
(29.)
88-47B-468-453
(3d.)
88-47B-468-454
(16,)
Motion was made by Councilman Phillips, seconded
by Councilman Patterson reappointing Alan Hatch,
Rita Wallace, and Harold Chatman on the Citizens
Traffic Commission. Motion carried: 6 Yeas; d
Nays.
July 24, 1988.
Motion was made by Councilman Phillips, seconded
by Councilman Maloy to reappoint 8. C. McMinn and
appointing Douglas Sanford to replace Marion
Sanford on the Lubbock Industrial Development
Corporation. Motion carried: 6 Yeas; d Nays.
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to appoint Greg Sherwood
to replace Pete Ragus on the Lubbock Athletic
Committee. Motion carried: 6 Yeas; 0 Nays.
Consider one appointment to the Transportation
Temporary Advisory Committee. (Joe McKay_
declined appointment.)_
Motion was made by Councilman Phillips, seconded
by Councilman Patterson to appoint Roy Roberts to
replace Joe McKay on the Transportation Temporary
Advisory Committee. Motion carried: 6 Yeas; d
Nays.
Hold an Executive Session to discuss pending
litigation --Water Utilities.
July 14, 1988 469
There being no further business to come before Council, motion was
made by Councilman Phillips, seconded by Councilman Maloy to adjourn
the meeting at 11:55 a.m. Motion carried: 6 Yeas; 0 Nays.
B. C. MCMINN, MAYOR
ATTEST:
Ran tte Boyd, City Secretary
READ AND APPROVED THIS 21'th DAY OF JULY, 1988.
t/7 C - h/ 2" e, �4
B. C. McM N , MAYOR
ATTEST:
ette Boyd, City Sec tar —