HomeMy WebLinkAboutMinutes - City Council - Regular - 11/16/1989CITY OF LUBBOCK
REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 1989
10:00 A.M.
The City Council of the City of Lubbock, Texas met in regular session on
the 16th day of November, 1989 in the City Council Chambers, first floor,
City Hall, 1625 13th Street, Lubbock, Texas at 10:00 A.M.
Present: Mayor B. C. McMinn, Mayor Pro Tem Joan Baker, Councilmember T. J.
Patterson, Councilmember Gary Phillips, Councilmember Bill Maloy,
Councilmember George Carpenter, Councilmember Maggie Trejo, City Manager
Larry J. Cunningham, City Attorney John C. Ross, Jr., and City Secretary
Ranette Boyd.
Mayor McMinn called the meeting to order at 10:00 A.M.
1.) The Invocation was given by Assistant City Manager Rita
Harmon.
2.) The Pledge of Allegiance was given in unison by those
in the Council Chambers.
( 3.) Motion was made by Councilmember Patterson, seconded by
Councilmember Phillips to approve the Minutes of the
November 9, 1989 Regular City Council meeting as
written. Motion carried: 7 Yeas; 0 Nays.
( 4•)
89-48B-906-670
( 5.)
Board Appo i ntment s
RESOLUTION #3246
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 a Quit Claim
Deed in favor of the Texas Department of Highways and Public Transporta-
tion, 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.
PasseA by the City Council this 16th day of November, 1989.
ATTEST:
LsLF:ane to Bgyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
/s/ Ed Buc
Ed Bucy, Right -of -Way Agent
Ls1 B. C. McMinn
B. C. McMIHN, MAYOR
APPROVED AS TO FORD:
Lsj -Harold Wi_1 lard
Harold Willard, Assistant City
Attorney
November 16, 1989
Page 907
QUITCLAIM DEED
THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS
COUNTY OF LUBBOCK
That, City of Lubbock of the County of Lubbock, State of Texas, hereinafter
referred to as Grantors, whether one or more, for and in consideration of
the sum of Ten and no/10O Dollars ($10.00) and other good and valuable
consideration to Grantors in hand paid by the State of Texas, acting by and
through the State Highway and Public Transportation Commission, the receipt
fo which is hereby acknowledged, and for which no lien is retained, either
expressed or implied, have Quitclaimed and do by these presents Bargain,
Sell, Release and forever Quitclaim unto the State of Texas all of
Grantors' right, title, interest, claim and demand in and to that certain
tract or parcel of land, situated in the County of Lubbock, State of Texas,
more particularly described as follows, to wit:
County:
Highway:
Project Limits:
Account:
Field Notes;
Lubbock
Interstate 27
From U.S. 62 (19th Street) to Loop 289 (North)
9005-27-13
Parcel 165
Being 28,023.50 square feet more or less, of land out of that certain tract
of land situated in the County of Lubbock, State of Texas, being out of Lot
8, George Addition, conveyed to Pittsburgh -Des Moines Steel Company by
Ducommun, Incorporated by Warranty Deed dated August 9, 1979 and recorded
in Volume 1652, Page 487 of the Deed Records of Lubbock County, Texas, said
28,023.50 square feet, more or less, being more particularly described by
metes and bounds as follows;
BEGINNING at a point in the north line of said tract and in the east right-
of-way line of North Ave. H, said point being the northwest corner of said
tract and 388.00 feet North 871,36'15" West of the northeast corner of said
tract;
1) THENCE, South 870 6'15" East along the north line of said tract
a distance of 60.58 feet to a point in the north line of said
tract;
2) THENCE, South 41,35'44" East along the east line of said tract a
distance of 404.29 feet to a point on a curve, said curve being
the east line of said tract;
3) THENCE, Southeasterly along said curve, to the left, having a
radius of 3604.72 feet and radius being North 852124'16" East,
said curve being the east line of said tract, a distance of
33.69 feet to a point on a curve in the south line of said
tract;
4) THENCE, Southwesterly along said curve, to the left, having a
radius of 1960.08 feet and radius bearing South 341,24'52" East,
said curve being the south line of said tract, a distance of
30.60 feet, to a point in the west line of said tract;
5) THENCE, North 111'16'56" west along the west line of said tract
and in the east right-of-way line of U.S. 87 a distance of
274.25 feet to a point in the west line of said tract;
6' THENCE, North 16129'14" West along the west line of said tract
and in the east right-of-way line of U.S. 87 a distance of
274.25 feet to a point in the west line of said tract;
7) THENCE, North 2123'45" East along the west line of said tract
and in the east right-of-way line of North Avenue H a distance
of 190.72 feet to the point of beginning.
November 16, 1989
Page 908
TO HAVE AND TO HOLD for said purposes together with all and sigular the
rights, privileges, and appurtenances thereto in any manner belonging unto
the said State of Texas forever.
IN WITNESS WHEREOF, this instrument is executed on this the 16th day of
November, 1989.
CITY OF LUBBOCK
By: Is1 B. C. McMinn
B. C. McNINN, MAYOR
CORPORATE ACKNOWLEDGEMENT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
BEFORE ME, Olivia R. Solis, on this day personally appeared B. C. McMinn,
Mayor, of the City of Lubbock, known to me to be the person and officer
whose name is subscribed to the foregoing instrument and acknowledged to me
that the same was the act of the said City of Lubbock, a corporation, that
he was duly authorized to perform the same by appropriate resolution of the
Board of Directors of such corporation and that he executed the same as the
act of such corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This 16th day of November, A.Q.,
1989.
89-488-908-671
s Olivia R. Solis
Notary Public, State of Texas
My Commission expires on the 30th day
of November, 1989.
This Quitclaim Deed would release an
Lubbock and LP&L have to a parcel of
by the State for 1-27 right-of-way,
west side of Lot 8, George Addition,
Municipal Drive and east of Amarillo
action will clear a title question o
parcel.
y right the City of
property acquired
located along the
which is north of
Road (I-27). This
n the acquired
The City's claim to this property is an Electrical
Easement located at the southwest corner. Last year,
the City acquired a new Easement for one being taken
for I-27, and the Highway Department reimbursed its
purchase price. The utilities in the old Easement have
been relocated, and the City no longer needs the old
easement. Staff recommended approval.
Motion was made by Councilmember Trejo, seconded by
Councilmember Patterson to authorize Resolution #3246
as recommended by Staff. Motion carried: 7 Yeas; 0
Nays.
6.) Consider Resolution #3 47 authorizing the Mayor t
ecgte a ,ease Agreement for G & G Aero.Service, _Inc.
RESOLUTION #3247
BE .IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LU88OCK:
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 a Fixed Base
Operator Agreement with G & G Aero Service, Inc., 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.
November 16, 1989
Page 909
Passed by the City Council this 16th day of November, 1989.
fs/ B. C. McMinn
B. C. McMINN, MAYOR
ATTEST:
Isf Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
s Bern E. Case fsf Harold Willard
Bern E. Case, Director of Aviation Harold Willard, Assistant
City Attorney
FIXED BASE OPERATOR AGREEMENT
THIS LEASE AGREEMENT, made this I6th day of November, 1989, by and
between the City of Lubbock, Texas, acting by and through its Mayor,
hereunto duly authorized, (hereinafter referred to as "LESSOR") and G & G
Aero Service, Inc., a corporation incorporated under the laws of the State
of Texas, with its principal office at Lubbock, Texas, (hereinafter
referred to as "LESSEE").
WITNESSETH
WHEREAS, LESSOR owns and operates the Lubbock International Airport,
located in Lubbock County, Texas (hereinafter referred to as "Airport");
and
WHEREAS, LESSOR deems it advantageous to itself and to its operation
of the Airport to lease unto LESSEE the premises described herein, together
with certain privileges, rights, uses and interests therein, as hereinafter
set forth; and
WHEREAS, LESSEE is a corporation primarily engaged in commercial
aviation, retail sales and the general activities of fixed base operation
and aircraft sales; and
WHEREAS, LESSEE proposes to lease on a net basis from LESSOR a
certain building and adjacent ground area and to avail itself of certain
privileges, rights and uses pertaining thereto; and
WHEREAS, LESSEE has indicated a willingness and ability to properly
keep, maintain and improve said premises in accordance with standards
established by LESSOR; NOW THEREFORE:
ARTICLE I
PREMISES AND PRIVILEGES
For and in consideration of the terms, conditions and covenants of
this Lease to be performed by LESSEE, all of which LESSEE accepts, LESSOR
does hereby lease unto LESSEE certain property together with improvements
thereon (hereinafter called "Leased Premises"), and certain attendant
privileges, uses and rights, as hereinafter specifically set forth.
A.. DESCRIPTION OF LEA EO PREMISES
Building T-302: Building 12,250 sq. ft. @ $.6461 per sq.
ft. per year.
Adjacent Land Area 24,784 sq. ft. @ $.0880
per sq. ft. per year.
The above described building and land are located at the Lubbock
International Airport, Lubbock County, Texas, and are more specifically
described on Exhibit A attached hereto and by this reference made a part
hereof.
November 16, 1989
Page 910
B. PURPOSES The purposes for which LESSEE may use the Leased
Premises described in paragraph A above are as follows:
1. LESSEE may engage in the business of aeronautics, engine
and aircraft repairs, modifications, sales and renting of aircraft,
sales of aircraft engine parts and accessories, inspections,
licensing, fabrication of aircraft components, flight instruction,
storage of aircraft and equipment, airplane charter flights and local
short flights, and may operate at the Lubbock International Airport
as a Fixed Base Operator.
2. LESSEE may give flying instructions, provide pilots for
planes for others, and carry passengers and freight for hire, subject
to all appropriate laws of the Federal Government, the State of
Texas, the County of Lubbock, Texas, and the requirements of all duly
authorized governmental agencies.
3. LESSEE shall have a nonexclusive right to sell aviation
fuel, oil and other propellants or lubricants to the general public
at said Airport.
ARTICLE II
A. The term of this Agreement shall commence on the 1st day of
December, 1989, and end on the 30th day of November, 1992, subject,
however, to earlier termination as hereinafter provided under Article VI.
B. The parties hereto mutually agree that during the term of this
Lease Agreement, the rental rate will be adjusted upward or downward for
each ensuing year beginning in January 1990, in direct proportion to the
fluctuation in the U. S. Department of Labor, Bureau of Labor Statistics
Consumer Price Index. For the purpose of computing all adjustments, the
Bureau of Labor Statistics Consumer Price Index as of January 1989, shall
be construed as the base period.
C. NATIONAL EMERGENCY In the event the rights and privileges
hereunder are suspended by reason of war or other national emergency, the
term of this Lease shall be extended by the amount of the period of such
suspension.
ARTICLE III
RENTALS AND FEES
In consideration of the rights and privileges herein granted, LESSEE
shall pay to the LESSOR the fallowing rentals and fees:
A. A fuel flowage fee of four cent (4�) per gallon for each gallon
of aviation fuel delivered to LESSEE or its agents at Lubbock International
Airport, excluding that sold or delivered by LESSEE to a regularly
certified airline under contract with LESSOR as a part of the pecuniary
consideration therefor. LESSOR shall be entitled t collect, and LESSEE
agrees to pay, a fuel flowage fee, as determined by LESSOR from time to
time, for each gallon of aviation fuel delivered for LESSEE'S consumption
on said Airport, excepting that portion which is specifically excluded,
unless said flowage fees are paid by the supplier on behalf of LESSEE. The
aforesaid flowage fees, if not paid by the supplier, shall be due on the
first (1st) day of the month succeeding that in which the aircraft fuels
and lubricants are received by LESSEE, and shall be delinquent if unpaid
before the fifteenth (15) day of each month. It is understood and agreed
that the total gallonage delivered to or purchased by LESSEE, other than
gasoline delivered to regularly scheduled airlines operating under contract
with LESSOR, may be reduced by an amount not to exceed two (2%) per centum
in computing charges as a maximum loss allowance from any and all causes.
November 16, 1989
Page 911
B. Ground rental in the amount of TWO THOUSAND ONE HUNDRED EIGHT
AND 99/100 DOLLARS ($2,180.99) per year for the land area of 24,784 square
feet described in Article I, Paragraph A hereof as land adjacent to
Building T-302, shown on Exhibit A hereto; which rental is computed at a
rate of $.0880 per square foot per year; such ground rental shall be paid
monthly in advance on the first (1st) day of each month at the rate of ONE
HUNDRED EIGHTY-ONE AND 75/100 DOLLARS ($181.75) per month, which is a sum
approximately equal to one -twelfth (1/12) of the annual ground rental due
hereunder.
C. Building rental in the amount of SEVEN THOUSAND NINE HUNDRED
FOURTEEN AND 73/100 DOLLARS ($7,914.72) per year for Building T-302, which
rental is computed at a rate of $.6461 per square foot per year; such
building rental shall be payable in advance on the first (1st) day of each
month at the rate of SIX HUNDRED FIFTY-NINE AND 56/100 DOLLARS ($659.56)
per month, which is a sum approximately equal to one -twelfth (1/12) of said
annual building rental due hereunder.
D. TWO THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($2,500.00) is the
established annual Fixed Base Operator's fee; however, other applicable
ground and building rentals and fuel flowage fees may be applied to satisfy
the requirements of the Fixed Base Operator fee. Amounts payable under
this Agreement shall be paid as follows:
Monthly payments for ground and building rentals effective with the
execution of this Agreement are payable in advance on the first (1st)
day of each month. Monthly payments for fuel flowage fees effective
with the execution of this Agreement are payable on the first (1st)
day of the month succeeding that in which the aircraft fuels and
lubricants are received by LESSEE. Operators whose payments for
ground and building rentals and fuel flowage fees do not satisfy the
minimum Fixed Base Operator's fee will pay a monthly pro rata amount
of TWO HUNDRED EIGHT AND 34/100 DOLLARS ($208.34) payable in advance
on the first (1st) day of each month.
ARTICLE IV
OBLIGATIONS AND RIGHTS OF LESSEE
A. ASSIGNMENT, TRANSFER, PLEDGE
LESSEE shall not at any time assign, transfer, pledge or otherwise
alienate this Agreement or any interest herein without the prior written
consent of the Director of Aviation of LESSOR.
B. SUBLEASING
LESSEE shall not sublease all or any part of the Leased Premises
hereunder without the specific written approval of the Director of Aviation
of LESSOR, such approval not to be unreasonably withheld.
C. TAXES AND ASSESSMENTS
LESSEE agrees to pay promptly when due all taxes and assessments
levied on the Leased Premises and any other taxes and assessments in
connection with its business which may be levied, and will promptly pay
when due all charges for water, electricity and any other utilities used in
connection with its operations at the Airport.
D. NONDISCRIMINATION
LESSEE, its successors in interest and assigns, as a part of the
consideration hereof, does hereby covenant and agree "as a covenant running
with the land" that in the event facilities are constructed, maintained or
otherwise operated on the Leased Premises for a purpose for which a
Department of Transportation program or activity is extended, or for
another purpose involving the provision of similar services or benefits,
LESSEE shall maintain and operate such facilities and services in
compliance with all other requirements imposed pursuant to 49 CFR Part 21,
November 16, 1989
Page 912
Nondiscrimination in Federally Assisted Programs of the Department of
Transportation, and as said Regulations may be amended.
LESSEE, its successors in interest and assigns, as a part of the
consideration hereof, does hereby further covenant and agree "as a covenant
running with the land" that: (1) no person on the grounds of race, color,
religion, sex or national origin shall be excluded from participation in,
be denied the benefits of, or be otherwise subjected to discrimination in
the use of said facilities; (2) that in the construction of any
improvements on, over or under such Leased Premises and the furnishing of
services thereon, no person on the grounds of race, color, religion, sex or
national origin shall be excluded from participation in, be denied the
benefits of, or otherwise be subjected to discrimination; (3) the Leased
Premises shall be used in compliance with all other requirements imposed by
or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted
Programs of the Department of Transportation, and as said Regulations may
be amended.
LESSEE will conduct its activities and operate its facilities in
accordance with the requirements of Section 504 of the Rehabilitation Act
of 1973 and will assure that no qualified handicapped person shall, solely
by reason of his or her handicap, be excluded from participation in, be
denied the benefits of, or otherwise be subjected to discrimination,
including discrimination in employment, under any program or activity of
the LESSEE.
E. PUBLIC BENEFIT
LESSEE agrees to operate the Leased Premises for the use and benefit
of the public and further agrees;
1. To furnish good, prompt and efficient services adequate to meet
all the demands for its service at the Airport;
2. To furnish said services on a fair, equal and nondiscriminatory
basis to all users thereof; and
3. To charge fair, reasonable and nondiscriminatory prices for
each unit of sale or service, provided that the LESSEE may be allowed
to make reasonable nondiscriminatory discounts, rebates or other
similar types of price reductions for volume purchases.
F. NONEXCLUSIVE
It is understood and agreed that nothing herein contained shall be
construed to grant or authorize the granting of an exclusive right within
the meaning of Section 308(a) of the Civil Aeronautics Act.
G. DEVELOPMENT OF AIRPORT
LESSEE agrees that LESSOR has the right to further develop or improve
the Airport as LESSOR sees fit, regardless of the desires or views of the
LESSEE, and without interference or hindrance therefrom.
H. RIGHTS OF OTHERS
It is clearly understood by the LESSEE that no right or privilege has
been granted which would operate to prevent any person, firm or corporation
operating aircraft on the Airport from performing any services on its own
aircraft with its own regular employees (including, but not limited to,
maintenance and repair) that such person, firm or corporation may choose to
perform.
I. OPERATION OF AIRCRAFT, COMPLIANCE WITH RULES AND REGULATIONS
LESSEE agrees to operate and conduct its business, including but not
limited to the operation of aircraft and the occupancy of said Leased
Premises, at all times in compliance with applicable federal, state and
local rules and regulations and in compliance with all applicable statutes,
ordinances, rules and regulations affecting the use, occupancy or operation
November 16, 1989
Page 913
of the Leased Premises and Airport. LESSEE further agrees that in the
event a civil penalty or fine is levied against the Airport as a result of
LESSEE'S failure to comply or act in accordance with said rules,
regulations, statutes and ordinances, LESSEE shall immediately reimburse
the Airport the full amount of the penalty or fine and correct the failure,
act, or omission leading to, causing or contributing to the violation.
J. Pal BLIC LIABILITY INSURANCE
LESSEE will carry and maintain Public Liability Insurance in
companies licensed to do business in the State of Texas for the protection
of LESSOR, naming LESSOR as an insured and insuring against all claims,
losses, costs and expenses arising out of injuries to persons whether or
not employed by the LESSEE, damage to property whether resulting from acts
or omissions, negligence or otherwise of the LESSEE or any of its agents,
employees, patrons or other persons, and growing out of the use of the said
Leased Premises by LESSEE, such policies to provide for a liability limit
on account of each accident resulting in bodily injury or death to one
person of not less than ONE HUNDRED THOUSAND AND NO/I00 DOLLARS
($100,000.00), a liability limit on account of each accident resulting in
bodily injury or death to more than one person of not less than THREE
HUNDRED THOUSAND AND NO/100 DOLLARS ($300,000.00), and a liability limit of
not less than ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) for
each accident for property damage. LESSEE shall furnish evidence to LESSOR
of continuance in force of said policies and said policies shall be so
worded as to insure ten (I0) days notice to the LESSOR of cancellation or
any modification of such policies. Said policies shall also be subject to
the approval of LESSOR.
K. HAZARQ ICI SURANC
LESSEE shall procure from a company authorized to do business in the
State of Texas and keep in force at all times for the term of this Lease
hazard and extended coverage insurance upon the building located on the
Leased Premises to eighty percent (80%) of the full insurable value
thereof. The value of said Building T-310 is hereby stipulated to be equal
to one -hundred times one -twelfth of the annual rental for said building or
100 x $559.56 - $65,956.00. LESSEE shall furnish LESSOR with evidence that
such coverage has been procured and is being maintained.
L . INSpECT IO1 OF_ BOOKS AND RECORDS
LESSEE shall maintain complete books and records of all transactions,
sales and income resulting from its operations at Lubbock International
Airport; which books and records may be inspected at any time by LESSOR or
its duly authorized representatives at Lubbock, Texas, upon reasonable
notice to LESSEE. In the event LESSEE requests such inspection to be
performed outside the Lubbock area, such request may be honored at LESSOR'S
discretion; however, any and all expenses incurred by so doing shall be
reimbursed by the LESSEE. LESSEE agrees to furnish facts and figures
necessary to determine the amount to be paid LESSOR, together with a
fiscal -year-end signed statement certified by a Certified Public Accountant
that said figures are correct and properly stated.
M. ON ITI NS OF F EMIS : INIPECTION
LESSEE agrees that the Leased Premises under LESSEE'S control will be
kept: clean and free of all debris and other waste matter. LESSOR shall
have the right at all reasonable times to enter upon the Leased Premises
for the purposes of inspecting the same.
N . MAINTENAIJC
LESSEE shall, at its sole cost and expense, maintain the Leased
Premises in a presentable condition consistent with good business practice.
LESSEE shall repair all damages to said Leased Premises caused by its
employees, patrons or its operations thereon; shall maintain and repair all
equipment thereon, including any drainage installations, paving, curbs,
islands, buildings and improvements; and shall repaint Building 7-302 as
necessary to maintain a clean and attractive appearance.
November 16, 1989
Page 914
LESSOR shall be the sale judge of the quality of maintenance, and
upon written notice by LESSOR to LESSEE, LESSEE shall be required to
perform whatever maintenance LESSOR deems necessary. If said maintenance
is not undertaken by LESSEE within twenty (20) days after receipt of
written notice, LESSOR shall have the right to enter upon the Leased
Premises and perform the necessary maintenance, the cost of which shall be
borne by LESSEE.
0. UTILITIES
LESSEE shall have the right to connect to any and all storm and
sanitary sewers and water and utility outlets (including metering devices)
at its own cost and expense; and LESSEE shall pay for any and all service
charges incurred therefor.
P. TRASH. GARBAGE, REFUSE• ETC.
LESSEE shall provide a complete and proper arrangement for the
adequate sanitary handling and disposal, away from the Airport, of all
trash, garbage and other refuse produced as a result of LESSEE'S operations
on the Leased Premises.
Q. ADVERTISING
LESSEE may not erect or cause to be erected on the Leased Premises
any billboards or advertising signs without the prior written consent of
the Director of Aviation of LESSOR.
R. INDEMNITY
LESSEE agrees to hold the City free and harmless from loss from each
and every claim and demand of whatsoever nature made on behalf of or by any
person or persons and resulting from LESSEE'S operations and/or use of the
Leased Premises and common areas owned by LESSOR and used by the LESSEE,
its agents, servants or employees, and from all loss and damages by reason
of negligence of the LESSEE, its agents, servants or employees.
S . USE OF AIRPORT
During the term of this Lease, LESSEE and its tenants shall have free
use of, in common with others at the Airport, all runways, ramps, parking
areas and any and all public facilities available at the Airport, and the
right of ingress to and egress from the above described premises, which
right shall extend to LESSEE'S customers, employees, guests, invitees,
tenants and patrons.
If, during the term of this Agreement, the use of the Airport by
LESSEE or its tenants is temporarily suspended, restricted or interfered
with for a period of ten (10) days or more for reasons beyond the practical
control of the LESSOR, in such manner so as to substantially affect the use
of the Leased Premises or the operation of aircraft by LESSEE or its
tenants, all fees during such period shall abate and the term of the
Agreement shall, at the election of LESSEE, be extended for an equivalent
period of time.
T. WORKERS' COMPENSATIOM
LESSEE shall furnish to LESSOR satisfactory evidence that it carries
Workers' Compensation Insurance in accordance with the laws of the State of
Texas.
U. IMPROVEMENTS
LESSEE shall not make, permit or suffer any additions, improvements
or alterations to the Leased Premises which constitute any major structural
change or changes without first submitting plans and specifications for
such additions, improvements or alterations to the Director of Aviation of
the City of Lubbock and securing prior written consent of the Director of
Aviation. Any such additions, improvements or alterations made with the
consent of the Director of Aviation shall be solely at the expense of the
November 16, 1989
Page 915
LESSEE and, unless such consent provides specifically that title to the
additions or improvements so made shall vest in the LESSEE, title thereto
shall at all times remain in LESSOR, and such additions or improvements
shall be subject to all terms and conditions of this Agreement. The LESSEE
agrees to hold LESSOR harmless from Mechanic's and Materialman's Liens
arising from any construction, additions, improvements, repairs or
alterations effected by the LESSEE.
V. PARKING
LESSEE shall, at its sole cost and expense, construct adequate and
suitable pavement areas for use by its customers for parking of aircraft
and automobile parking for its employees, patrons, guests and invitees.
W. VEHICULAR MOVEMENT
Except specifically authorized vehicles, LESSEE will not permit the
driving of vehicles by its employees, customers, guests or invitees on the
apron, taxiways, or runways.
X, SECURITY
LESSEE agrees to control all access to the air operations area (AOA)
through the Leased Premises and through gates assigned to or controlled in
whole or in part by LESSEE -so as to prevent unauthorized entry to the (AOA)
by persons, animals or vehicles. In the event that unauthorized access to
the (AOA) is gained through the Leased Premises or any area which LESSEE
controls or is obligated to control either by itself or jointly with other
Airport lessees, any fines or penalties assessed by the Federal Aviation
Administration shall be the responsibility of the LESSEE and LESSEE hereby
agrees to pay all such fines or penalties without delay and make any and
all requested changes in.its operations or facilities necessary to maintain
Airport security and prevent reoccurrence of any unauthorized entry.
ARTICLE V
OBLIGATIONS AND RIGHTS OF LESSOR
A. SAFETY
LESSOR reserves the right to take any action it considers necessary
to protect the aerial approaches of the Airport against obstruction,
together with the right to prevent LESSEE from erecting or permitting to be
erected any building or other structure on or off the Airport which, in the
opinion of LESSOR, would limit the usefulness of the Airport or constitute
a hazard to aircraft.
B. MAINTENANCE OF PUBLIC AREA
LESSOR reserves the right, but shall not be obligated to LESSEE, to
maintain and keep in repair the landing area of the Airport and all
publicly -owned facilities of the Airport, together with the right to direct
and control all activities of LESSEE in this regard.
C. STANDARDS
LESSOR reserves the right to establish standards for the
construction, maintenance, alterations, repairs, additions and improvements
to LESSEE'S facilities. This will include structural design, color,
materials used, landscaping and maintenance of LESSEE'S facilities and the
Leased Premises.
November 16, 1989
Page 916
D. LESSOR reserves the right to issue through the Director of
Aviation such rules, regulations and procedures for activities and
operations conducted on the Airport as deemed necessary to protect and
preserve the safety, security and welfare of the Airport and all persons,
property and facilities located thereon.
ARTICLE VI
TERMINATION
A. TERMINATION BY LESSEE
This Agreement shall be subject to cancellation by LESSEE, without
liability to LESSOR in the event of the happening of any one or more of the
following contingencies;
1. The permanent abandonment of the Airport as an air terminal.
2. The issuance by any court of competent jurisdiction of an
injunction which in any way prevents or restrains the use of the
Airport for at least thirty (30) days.
3. The breach by LESSOR of any of the terms, covenants or
conditions of this Agreement to be kept, performed and observed by
LESSOR, and the failure of LESSOR to remedy such breach for a period
of sixty (60) days after written notice from the LESSEE of the
existence of such breach.
4. The assumption by the United States Government, or any
authorized agency of same, of the operation, control or use of the
Airport and its facilities in such a manner as to substantially
restrict the LESSEE from conducting operations on the Leased
Premises, for a period of three (3) months or more.
B. TERMINATION BY LESSOR
This Agreement shall be subject to cancellation by LESSOR in the
event of the happening of any one or more of the following contingencies;
1. If the LESSEE makes an assignment for the benefit of creditors;
or files a voluntary petition of bankruptcy; or if proceedings in
bankruptcy shall be instituted against LESSEE and LESSEE is
thereafter adjudicated as bankrupt pursuant to such proceedings; or
if a court shall take jurisdiction of LESSEE and its assets pursuant
to proceedings brought under the provisions of any federal
reorganization act; or if a receiver for LESSEE'S assets is
appointed; or if LESSEE petitions or applies to any tribunal for the
appointment of a trustee or receiver for LESSEE under any bankruptcy,
reorganization arrangement, insolvency, readjustment of debt,
dissolution or liquidation law of any jurisdiction, whether now or
hereafter in effect.
2. If the LESSEE shall abandon and discontinue the conduct and
operation of said Fixed Base Operations.
3. If the LESSEE shall default in or fail to make any payments at
the time and in the amounts required of LESSEE under this Agreement.
4. If the LESSEE shall fail to perform, keep and observe all of
the covenants and conditions contained in this Agreement to be
performed, kept and observed by LESSEE.
5. If the LESSEE shall fail to abide by all applicable laws,
ordinances, rules and regulations of the United States, State of
Texas, City of Lubbock and Director of Aviation of the City of
Lubbock.
November 16, 1989
Page 917
LESSOR shall give written notice to LESSEE to correct or cure any
such default, failure to perform or breach and if, within thirty (30) days
from the date of such notice, the default, failure to perform or breach
complained of shall not have been corrected in a manner satisfactory to
LESSOR, then and in such event LESSOR shall have the right, at once and
without further notice to LESSEE, to declare this Agreement terminated and
to enter upon and take full possession of the Leased Premises and, provided
further, that upon the happening of any one of the contingencies enumerated
in Article VI, Section B, numbered Paragraph I hereof, this Agreement shall
be deemed to be breached by LESSEE and thereupon "ipso facto," and without
entry or any other action by LESSOR, the Agreement shall terminate, and be
reinstated only if such involuntary bankruptcy or insolvency proceedings,
petition for reorganization, trusteeship, receivership or other legal act
divesting LESSEE of its rights under this Agreement shall be denied, set
aside, vacated or terminated in LESSEE'S favor within thirty (30) days from
the happening of the contingency. Upon the happening of said latter
events, this Agreement shall be reinstated as if there had been no breach
occasioned by the happening of said contingencies, provided that LESSEE
shall, within ten (10) days after the final denial, vacating or setting
aside of such petition or vacating, terminating or setting aside of such
appointment, pay or discharge any and all sums of money which may have
become due under this Agreement in the interim and remain unpaid, and shall
likewise fully perform and discharge all other obligations which may have
accrued and become payable in the interim.
The acceptance of rentals and fees by LESSOR for any period or
periods after a default of any of the terms, covenants or conditions herein
contained and to be performed, kept or observed by LESSEE shall not be
deemed a waiver of any rights on the part of LESSOR to cancel this
Agreement for failure by LESSEE to so perform, keep or observe any of the
terms, covenants or conditions hereof to be performed, kept or observed.
No waiver by LESSOR or any of the terms of this Agreement to be kept,
performed and observed by the LESSEE shall be construed to be or act as a
waiver by LESSOR of any subsequent default on the part of the LESSEE.
C. OWNERSHIP
Within ninety (90) days after expiration of this Agreement as herein
provided, the LESSEE shall remove all improvements constructed or placed on
the Leased Premises such as buildings, equipment, goods, chattels and
fixtures belonging to LESSEE and restore the Leased Premises to the
condition in which they were received, reasonable wear and tear and damage
by fire or the elements excepted. In the event of the failure on the part
of LESSEE to immediately remove from the premises all property owned by
LESSEE under the requirements set forth in this paragraph, LESSOR may
effect such removal and store such property at LESSEE'S expense. LESSEE
covenants and agrees to pay all reasonable costs, attorneys' fees and
expenses that shall be incurred by LESSOR in enforcing the covenants and
conditions of this Agreement. In the event the LESSEE fails to pay the
expense to remove and store LESSEE'S property within thirty (30) days, such
property will be deemed abandoned and title will vest in LESSOR; however,
this in no way relieves the LESSEE of the debt incurred. LESSEE shall pay
a sum equal to the rentals stipulated herein, prorated to the period of
time that LESSEE'S property �emains on the Leased Premises after the
expiration of the term of this Agreement.
In the event LESSOR terminates this Agreement for cause, as contained
herein, or if LESSEE discontinues Fixed Base Operations at any time prior
to expiration, LESSOR shall retain ownership of LESSEE'S improvements to
the extent of the rentals due for the then remaining term.
D. This Lease shall be subordinate to the provisions of any
existing or future agreement between the LESSOR and the Unite States,
relative to the operation and maintenance of the Airport.
November 16, 1989
Page 918
ARTICLE YII
NOTICE
Any required notice to LESSOR provided for herein shall be sufficient
if sent by certified mail, postage prepaid, to the Director of Aviation,
Route 3, Box 389, Lubbock, Texas 79401, and any such notice to the LESSEE
shall be sufficient if sent in the same manner addressed to G & G Aero
Service, Inc., P. 0. Box 10728, Lubbock, Texas 79408, or such other
addresses as may be designated by LESSOR or LESSEE in writing from time to
time.
IN WITNESS WHEREOF, the parties have executed this Agreement this
16th day of November, 1989.
LESSOR:
CITY OF LUBBOCK, TEXAS
BY : /-s1 B— 0- M-cdinn-
B. C. McMINN, MAYOR -
ATTEST:
/sf Rag_ette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Bern Case,
Director of Aviation
APPROVED AS TO FORM:
ZsZ Harold Willard
Harold Willard, Assistant
City Attorney
LESSEE:
G & G AERQ SERVICE, INC.
BY:/s/ Garr T. Bradley
President
ATTEST:
This Lease is a renewal with G & G Aero Service. The
requirements remain the same in the new Lease. The new
Lease period is from December 1, 1989 to November 30,
1992. The building rate is $.6461 per square foot
times 12,250 square feet; the land rate is $.088 per
square foot times 24,784 square feet. The revenue will
remain constant with the previous lease with the
exception of the CPI increase effective January 1,
1990. According to Staff, G & G Aero Service, Inc. has
been an effective airport tenant. Staff recommended
approval of the new Lease.
Motion was made by Councilmember Carpenter, seconded by
Councilmember Maloy to authorize Resolution 03247 as
recommended by Staff. Motion carried: 7 Yeas; 0 Nays.
89-48B-1918-672
( 7.) Consider a Resolution authorizing the Mayor to execute
a Contract for _continua�t_i.on..of .professional real estate
services with Roy Middleton.
This item was held.
November 16, 1989
Page 919
89-488-919-673
( 8•)
89-48B-1919-674
( 9.)
Consider Board of Health recommendation concerning
request by WESTAF.
During the November 9 Council meeting, Greg Garrison,
Chairman of the Board of Health, presented a
recommendation regarding request of WESTAF for $73,600
to establish a fully staffed separate office.
The Board of Health recommendation was to fund a full-
time position within the Health Department which would
provide start-up administrative support to WESTAF and
also provide assistance to other AIDS and health -
related organizations. The Board recommended that all
assistance to other agencies be provided through the
Health Department and that all funds allocated by the
City for public health be provided to the Health
Department.
The cost of a full-time AIDS Health Coordinator would
be $27,464 for a period beginning January 1 through
September 30, 1990. The second year cost would be
$33,613.
Staff advised that because it is early in this fiscal
year, it is difficult to determine if expenses will be
lower or revenues greater than estimated and therefore
recommended that Council allocate a part of the General
Fund Contingency Reserve to fund this amount.
Motion was made by Councilmember Trejo seconded by
Councilmember Patterson to allocate funding from
General Fund Contingency Reserve as recommended by
Staff. Motion carried: 7 Yeas; 0 Nays.
RESOLUTION #3248
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is herby authorized and
directed to execute for and on behalf of the City of Lubbock an Agreement
by and between the City of Lubbock and HDR Engineering, Inc., for
professional engineering services for the Lubbock Water Treatment Plant,
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.
Passed by the City Council this loth day of November, 19B9.
ATTEST:
s Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
s Dan Hawkins
Dan Hawkins, Director of Water
Utilities
AGREEMENT FILED WITH RESOLUTION
/sZ B. C. McMinn
B. C. McMINN, MAYOR
APPROVED AS TO FORM:
Is1 Donald G. Vandiver
Donald G. Vandiver, First
Assistant City Attorney
November 16, 1989
Page 920
89-48B-420-575
(10.)
In work Session on October 24, the City Council
authorized Staff to negotiate a Contract with HDR
Engineering, Inc. for the water Treatment Plant
Evaluation Study to include:
(1) Identification of general problems within the
existing facilities.
(2) Evaluation of raw and treated water chemical
and physical quality.
(3) Recommended treatment alternatives.
(4) Evaluation of plant structures and equipment.
According to Staff, the end product of the evaluation
will be a comprehensive report which considers a 20-
year long-range improvement period and which will
contain recommendations for compliance with the Safe
Drinking water Act, water quality aesthetic
improvements, process improvements, and the
rehabilitation of plant equipment and structures.
A Contract has been negotiated with HDR Engineering,
Inc, and was presented for Council consideration.
Compensation for basic services will be on a per diem
basis, not to exceed $127,500 and the Contract provides
for reimbursement at cost of certain expenses related
to the basic services performed. Reimbursable
expenses, for such items as travel and chemical
analyses, are estimated to be $37,500. The total cost
of the evaluation study was estimated at $165,000. The
study is to begin November, 1989 and the final report
is to be completed in May, 1990.
Staff recommended approval of this Contract.
Motion was made by Councilmember Carpenter seconded by
Councilmember Trejo to authorize Resolution 93248 as
recommended by Staff. Motion carried: 7 Yeas; 0 Nays.
Consider Resolution #3249 authorizing City Manager to
issue Notice of Intention to terminate a Management
Agreement between the City and Standefer and Gray,
RESOLUTION #3249
RESOLUTION AUTHORIZING THE CITY MANAGER TO ISSUE NOTICE OF INTENTION
TO TERMINATE A MANAGEMENT AGREEMENT BETWEEN THE CITY AND STANDEFEK & GRAY,
INC., AND TO EXERCISE CITY`S OPTION TO PURCHASE DESIGNATED FARM EQUIPMENT
AND MACHINERY WHICH IS NECESSARY FOR THE HEALTH AND SAFETY OF THE CITY IN
THE PROPER MANAGEMENT OF 9q.!FT" nATERS.
WHEREAS, the City of Lubbock and Standefer '. Gray, Inc. did enter
into a Farm Management Agreement dated September 25, 1986; and
WHEREAS, Section 24(f) authorized the City to terminate this contract
upon giving thirty t30) days written notice to the operator (Standefer &
Gray, Inc.); and
WHEREAS, the City is desirous of taking this operation into the City
and operating it accordingly; and
November 16, 1989
Page 921
WHEREAS, the abave,mentianed contract further granted the City an
option to purchase farm equipment and machinery in accordance with the
terms of the aforementioned contract; and
WHEREAS, said farm equipment and machinery is necessary for the
health and safety of the City of Lubbock and its residents for the proper
management of waste waters; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Manager is hereby authorized to issue written notice of
termination of the aforementioned Management Agreement to Standefer & Gray,
Inc. at the appropriate address designated in the aforementioned Contract
of Sale.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Manager is authorized to exercise the option granted to
the City in the aforementioned contract to purchase designated farm
implements machinery and equipment necessary for the proper management of
waste water distribution and to protect the health, safety and welfare of
the community.
Passed by the City Council this 16th day of November, 1989.
/s/ B. C. McMinn
B. C. McMINN, MAYOR
ATTEST:
/s/ Ranette Boyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
/s/ Dan A -Hawkins _ _ /s/ Jahn C. Ross, . Jr.____
Dan A. Hawkins, Director of water John C. Ross, Jr.
Utilities City Attorney
The City of Lubbock entered into an Agreement with
Standefer and Gray, Inc., to manage the City -owned
Sewer Farm an September 25, 1986. This Agreement
authorized Standefer and Gray to manage the ultimate
disposal of the City's treated sewage effluent and
established a management fee of $135,000 per year which
covered the farm manager's salary and provided for
payments equal to the computed depreciation an farm
equipment owned by Standefer and Gray in return far
utilizing this equipment in the operation of the farm.
With the exception of the farm manager's salary, which
is included in the $135,000 per year management fee,
the current Contract provides that the City pay
virtually all of the operating costs of the farm and in
return, the City will receive all farm income.
Expenses which are paid by the City include wages and
benefits of employees, fuels, utilities, herbicides,
pesticides, fertilizers and other chemicals, seeds and
plant materials, insurance and bond costs, rental/lease
of additional farm equipment, maintenance of farm
machinery and equipment, additional expenses necessary
to comply with applicable regulatory rules or
regulations, maintenance of fences and other permanent
improvements, subcontractor expenses (when approved by
City), bookkeeping/accaunting expenses, and other
reasonable expenses incurred by the operator in
carrying out the obligations of the Contract.
November 16, 1989
Page 922
Staff recommended that
public's best interest
Standefer and Gray and
department.
at this time it is in the
to terminate the Contract with
to make the transition to a City
Assumption of the farming operation by the City of
Lubbock essentially involves two major areas:
Personnel and equipment. To provide continuity and
expertise, Staff recommended that the present employees
of Standefer and Gray be offered jobs as City
employees. Further recommendation was that the farm
machinery and equipment used by Standefer and Gray be
purchased at its depreciated value.
Personnel
For several months, dater Utilities has worked with the
Personnel Department to establish job classifications
and formulate job descriptions for all farm employees.
The staff at the farm consists of twelve full-time
positions, including the farm manager, and two part-
time positions and the recommendation is that the
present staffing level be continued and that the
salaries for all employees, with the exception of the
farm manager, be established at a level where their net
pay will not be decreased when they become City
employees.
Council was given a schedule showing salaries and
benefits for all farm employees under the Standefer and
Gray Contract and as City employees. The difference in
salaries is due in part to setting salaries at a level
to accommodate the City benefit package and not reduce
the net pay for the employees. Under the City pay
system, the net pay for nine employees would average a
$177 per year increase. For two employees, the
increase in net pay would be $1,346 per year. The
difference in gross sal, yes is not as great as it
appears because Standefer and Gray paid all of the FICA
taxes, whereas City of Lubbock employees now pay one-
half of the FICA taxes, which represents a cost of
7.51% of salary to the employee. (The Social Security
contribution will go to 7.65% effective January 1,
1g90.)
The establishment of proposed salaries for the various
farm employees was complicated by the housing and
vehicle benefits and allowances provided by Standefer
and Gray. Some employees are furnished vehicles
whereas others receive a vehicle allowance. It is
necessary to have some employees (currently four) live
on the farm for security purposes and for quick
response to address problems arising from time to time.
These employees will continue to live at the farm.
Other employees under the Standefer and Gray Contract
currently receive housing allowances to make their
compensation packages equal to those living in the
houses on the farm. One employee receives a $200 per
month vehicle allowance and two employees receive a
$100 per month truck -lease allowance. Another employee
receives a $200 per month housing allowance to offset a
$125 per month allowance for two employees who are
furnished housing at the site.
All of these factors were taken into account in setting
the salaries and as City employees, those workers who
furnish their own vehicles will receive a vehicle
allowance until such time as they are assigned a City
vehicle.
November 16, 1989
Page 923
In evaluating the salaries of the farm workers, there
was concern regarding overtime in that these employees
typically work 70 hours and 40 hours on alternate
weeks. However, these are agricultural workers and are
exempt from overtime provisions of the U.S. Department
of Labor.
As City employees, the farm employees would came under
the TMRS system. Since the salaries of all employees,
except for the manager, would be adjusted to ensure
that their net pay would remain the same, it is
proposed that the TMRS cost to the City be partially
recovered. To do this, employees would not be given a
raise in pay until such time when their cumulative
merit increases exceed 5% of their "adjusted" City pay.
There are currently three. part-time farm workers. Two
of these workers now earn $4.30 per hour and the third
earns $4.50. It is proposed that part-time
classification of farm worker be established with three
pay steps of $4.32, $4.67 and $5.04 per hour. Since
only two part-time employees have been budgeted for,
and since one budgeted full-time farm worker is now
vacant, a full-time farm worker will soon be hired and
one part-time worker will be released.
Even with the revised personnel salary package, the net
cost to the City for farm operations will decrease
because of the elimination of the management fee with
the net savings for the first year estimated at
$26,954. This amount would be reduced somewhat in the
future as employees receive merit raises.
Eoui nment,
The Contract with Standefer and Gray provides that the
City, at its option, may purchase the farm machinery
and equipment at the depreciated value. A list of this
equipment, showing the 1989 depreciated value and the
depreciated value for December 18, 1989 was presented
to Council.
This equipment has been verified by an inventory
performed by City staff and an independent appraiser
performed an inventory analysis to confirm that the
values shown are appropriate.
The total value of this equipment is approximately
$330,000; however, the actual payoff amount cannot be
computed until ten days prior to the payoff date due to
the bank accounting procedures which carry the loans on
the five vehicles. Staff advised that December 18,
1989 is the date that payment for the equipment will be
made if Council terminates the Contract with Standefer
and Gray.
Based upon the proposed staffing level and job
classifications, considering that once the equipment is
purchased the City will no longer pay equipment
depreciation costs, and projecting that all other
expenses will remain unchanged, should the farming
operation become a City department the City will
realize a net annual savings of $26,954 compared to the
costs of operations under the Standefer and Gray, Inc.
Contract.
Staff advised further that should Council choose to
terminate the Contract with Standefer and Gray, Inc., a
30-day notice could be served on November 17, 1989,
with final payments for farm equipment due on December
89-48B-924-576
(11.)
November 16, 1989
Page 924
18, 1989. Depreciation on the equipment between
October 1 and December 18 will reduce the final payment
for all equipment to approximately $330,000,
Motion was made by Councilmember Carpenter, seconded by
Councilmember Maloy to authorize Resolution #3249
terminating the Contract with Standefer and Gray and
giving City authority to exercise option to purchase
farm equipment needed. Motion carried: 7 Yeas; 0
Nays.
Crisis Grant.
RESOLUTION #3250
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 a Contract and
all related documents during the effective dates of the Contract, by and
between the City of Lubbock and the Texas Department of Community Affairs
for energy crisis intervention for low income persons, 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,
Passed by the City Council this 16th day of November, 1989.
ATTEST:
/s f Ranette Bgyd
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
Js/ Vaughn Hendrie
Vaughn Hendrie, Director of
Community Relations
CONTRACT FILED WITH RESOLUTION
Is/ B. C. McMinn
B. C. McMINN, MAYOR
APPROVED AS TO FORM:
lsl Donald G. Vandiver
Donald G. Vandiver, First
Assistant City Attorney
The City of Lubbock has received the 1989-1990 Contract
from the Texas Department of Community Affairs for the
Energy Crisis Intervention Program. The term of the
Contract is October 1, 1989 to September 30, 1990 and
funds available are $17,402 with anticipated additional
funds to be provided later totalling $85,534.
Of the total amount, 93.75% will be used for direct
assistance to pay utility bills in emergency situations
with the remaining 6.25% covering administrative costs
of the program.
Funds will be used to assist the elderly, handicapped
and families with pre-school age children and to be
eligible, families must be experiencing some
extraordinary crisis that has depleted resources
normally used to pay utility bills. Such instances
include accidents or illness resulting in high medical
bills, loss of employment, death or funeral expenses,
unusually high utility bills resulting from severe
weather, or termination of unemployment compensation.
November 16, 1989
Page 925
Termination of utility service alone does pay reconnect
fees or deposits. If necessary, Project Help money can
be used for these expenses. Assistance is available to
pay any utility bill, gas, electric, propane or water
if a health -threatening condition is involved.
The Community Services Department is required to
determine eligibility and arrange for payment of
utility bills within 48 hours of application.
State funds are to be spent county -wide. Project Help
money is spent within the City limits, primarily with
City of Lubbock bills. Last year, a total of 299
families were assisted.
Staff recommended approval of this Contract.
Motion was made by Councilmember Patterson, seconded by
Councilmember Trejo to authorize Resolution #3250 as
recommended by Staff. Motion carried: 7 Yeas; 0 Nays.
89-48B-925- 677
(12.) Consider Ordinance #9319 establishing Military Service
Credits wi_th_TMRS for City employees.
ORDINANCE #9319
TEXAS MUNICIPAL RETIREMENT SYSTEM
All ORDINANCE PERMITTING CERTAIN EMPLOYEES OF THE CITY OF LUBBOCK
UNDER CERTAIN CONDITIONS TO ESTABLISH CREDIT IN THE TEXAS MUNICIPAL
RETIREMENT SYSTEM FOR ACTIVE MILITARY SERVICE PERFORMED AS A MEMBER OF THE
ARMED FORCES OR ARMED FORCES RESERVES OF THE UNITED STATES OR OF AN
AUXILIARY OF THE ARMED FORCES OR ARMED FORCES RESERVES; AND PRESCRIBING THE
EFFECTIVE DATE OF THIS ORDINANCE.
This proposed Ordinance will allow eligible employees
in TMRS to purchase retirement credit for up to 60
months of prior active duty military service.
The military service credit has been an option
available through TMRS for a number of years, but
Legislation enacted this year removed some of the
previous restrictions on the credit and changed some
provisions to conform with feoeral law. The funding
mechanism for cities was also changed.
This legislation was initiated and supported by the
Texas Municipal Retirement System, and the actuarial
firm which advises TMRS estimated that adoption would
add .01% to .05% to the contribution rates of the
adopting city.
The military service credit operates as follows:
Employees with at least ten years of credited service
with TMRS may purchase up to five years (60 months) of
active duty military service and apply that credit
toward retirement. The member contributes $15 for each
month of military service credit purchased, and the
City matches that contribution (and accumulated
interest) at 2:1. The City is required to match only
if and when the employee retires and the required
matching funds are added to the plan's unfunded
liability which is amortized over a period of up to 25
years. This unfunded liability is reduced through the
City's prior service contribution rate.
A survey of employees was conducted in 1983 to
determine the number of eligible employees and the
November 16, 1989
Page 926
amount of credit which could be purchased and the
information was updated recently to remove
retired/terminated employees. Information on military
service of employees hired since 1983 is not presently
available; however, these employees would not be able
to purchase the credit until 1993.
Of the known employees who could purchase military
credit, 59 are eligible to retire in FY 1990 and have a
combined total of 2,010 months of military service.
The FY 1990 maximum potential unfunded liability if
these employees purchase their maximum credit and
retire this year is $60,300 (2,010 x $15 x 2) and since
the credit is "on deposit" for one year or less, it is
assumed here that the City would be matching
"principal" only.
Review of the Updated Service Credit and Annuity
Increase Study effective 1/1/90 indicates that an
increase to the City's unfunded liability of $57,000
equates to approximately a .01% increase to the City's
prior service contribution rate. The estimated
unfunded liability of $60,300 would therefore result in
a contribution rate increase of approximately .011%.
The estimated cost for Fiscal Year 1990 would be
$3,245, if adopted January 1, 1990, and this includes
the increased cost for TMRS, as well as an equivalent
percentage increase to the City's Fire Pension
contribution. The calculation is provided below:
% contribution rate increase 0.011%
TMRS earnings in 1988 $32,610,725
Increased cost for City TMRS $3,587
Fire Pension earnings 1988 $6,718,348
Increased cost for Fire Pension $739
Total annual increase $4,326
Increase for FY 1990 (9 months) $3,245
Staff recommended approval of this Ordinance.
Motion was made by Councilmember Phillips, seconded by
Councilmember Patterson to authorize Ordinance #9319 as
recommended by Staff. Motion carried: 6 Yeas; 1 Nay--
Councilmember Carpenter.
89-48B-926-679
(13.) Consider Resolution 03251 authorizing the Mayor to
execute an Agreement with Brazos River Authority
regarding tax exemption.
RESOLUTION #3251
RESOLUTION AUTHORIZING THE MAYOR OF THE
CITY OF LUBBOCK TO EXECUTE AN AGREEMENT WITH
BRAZOS RIVER AUTHORITY REGARDING TAX EXEMPTION
WHEREAS, the Brazos River Authority (the "Authority") has authorized
the issuance of its Special Facilities (Lake Alan Henry) Revenue Bonds,
Series 1989 (the "Bonds") for the purpose of constructing a reservoir (the
"Project") on the south fork of the double mountained fork of the Brazos
River to provide a long-term, firm supply of surface water to the City of
Lubbock, Texas ("Lubbock"); and
WHEREAS, the Authority and Lubbock have entered into a contract dated
May 11,. 1989, which provides, among other things, for the Authority to
construct the Project and operate and maintain it on the land acquired by
Lubbock and pursuant to easements granted to the Authority; and
November 16, 1989
Page 927
WHEREAS, the Authority has agreed to sell to Lubbock and Lubbock has
agreed to buy from the Authority and to pay as provided in the contract,
whether such water is actually used or not, the entire amount of the water
which can be supplied from the Project; and
WHEREAS, the payments received by the Authority with respect to such
sale will be used for the payment of debt service on the Bonds; and
WHEREAS, it is appropriate that Lubbock and the Authority enter into
an agreement whereby Lubbock agrees to refrain from any action which would
adversely affect, or to take such action to ensure, the treatment of the
Bonds as obligations described in section 103 of the Internal Revenue Code
of 1986, the interest on which is not includable in the "gross income" of
the holder for purposes of federal income taxation;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
1. The Mayor is authorized to enter into an agreement with the
Authority, and the City Secretary is authorized to affix the seal of the
City thereto and attest such agreement, being substantially in the form
attached hereto as Exhibit A and made a part hereof.
2„ The Mayor and other officers and employees of the City are
hereby authorized to take such further action as shall be appropriate or
necessary to carry out the intent and purposes of said agreement.
AGREEMENT BETWEEN BRAZOS RIVER AUTHORITY AND
CITY OF LUBBOCK, TEXAS REGARDING TAX EXEMPTION
WHEREAS, the Brazos River Authority (the "Authority") has authorized
and issued its Special Facilities (Lake Alan Henry) Revenue Bonds, Series
1989 (the "Bonds") for the purpose of constructing a reservoir (the
"Project") on the south fork of the double mountained fork of the Brazos
River to provide a long-term, firm supply of surface water to the City of
Lubbock, Texas ("Lubbock");
WHEREAS, the Authority and Lubbock have entered into a contract dated
May 11, 1989, which provides, among other things, for the Authority to
construct the Project and operate and maintain it on the land acquired by
Lubbock and pursuant to easements granted to the Authority;
WHEREAS, the Authority has agreed to sell to Lubbock and Lubbock has
agreed to buy from the Authority and to pay as'provided in the contract,
whether such water is actually used or not, the entire amount of the water
which can be supplied from the Project; and
WHEREAS, the payments received by the Authority with respect to such
sale will be used for the payment of debt service on the Bonds;
THE AUTHORITY AND LUBBOCK DO HEREBY AGREE AS FOLLOWS:
1„ Lubbock agrees to refrain from any action which would adversely
affect, or to take such action to ensure, the treatment of the Bonds as
obligations described in Section 103 of the Code, the interest on which is
not includable in the "gross income" of the holder for purposes of federal
income taxation.
2. In furtherance thereof, Lubbock agrees as follows:
(a) to take any action to assure that no portion of the
proceeds of the Bonds received by Lubbock or no more than five
percent of the output recedived by Lubbock from the Project are used
for any "private business use", as defined in section 141 (b) (6) of
the Code or, if more than 5 percent of the output is so used, that
amounts, whether or not received by Lubbock, with respect to such
private business use, do not, under the terms of the Resolution
adopted by the Authority or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 5 percent
of the debt service on the Bonds, in contravention of section 141
(b) (2) of the Code;
November 16, 1989
Page 928
(b) to refrain from taking any action which would otherwise
result in the Bonds being treated as "private activity bonds" within
the meaning of section 141 (b) of the Code;
(c) to refrain from taking any action that would result in
the Bonds being "federally guaranteed" within the meaning of section
149 (b) of the Code;
(d) to refrain from using any portion of the proceeds of the
Bonds or amounts treated as proceeds of the Bonds, directly or
indirectly, to acquire or to replace funds which were used, directly
or indirectly, to acquire investment property (as defined in section
148 (b) (2) of the Code) which produces a materially higher yield
over the term of the Bonds, other than investment property acquired
with --
(1) proceeds of the Bonds invested for a reasonable
temporary period of 3 years or less until such proceeds are
needed for the purpose for which the bonds are issued,
(2) amounts invested in a bona fide debt service fund,
within the meaning of section 1.103-13 (b) (12) of the
Treasury Regulations, and
(3) amounts deposited in any reasonably required
reserve or replacement fund to the extent such amounts do not
exceed 20 percent of the proceeds of the Bonds;
(e) to otherwise restrict the use of the proceeds of the
Bonds or amounts treated as proceeds of the Bonds, as may be
necessary, so that the Bonds do not otherwise contravene the
requirements of section 148 of the Code (relating to arbitrage) and,
to the extent applicable, section 149 (d) of the Code (relating to
advance refundings);
(f) to take such action as necessary to assist the Authority
in paying to the United States of America at least once during each
five-year period (beginning on the date of delivery of the Bonds) an
amount that is at least equal to 90 percent of the "Excess
Earnings", within the meaning of section 148 (f) of the Code and to
pay to the United States of America, not later than 60 days after
the Bonds have been paid in full, 100 percent of the amount then
required to be paid as a result of Excess Earnings under section 148
(f) of the Code; and
(g) to maintain such records as will enable Lubbock to
fulfill its responsibilities under this section and section 148 of
the Code and to retain such records for at least six years following
the final payment of principal and interest on the Bonds.
3. It is the understanding of the Authority and Lubbock that the
covenants contained herein are intended to assure compliance with the Code
and any regulations or rulings promulgated by the U.S. Department of the
Treasury pursuant thereto. In the event that regulations or ruling are
hereafter promulgated which modify, or expand provisions of the Code, as
applicable to the Bonds, Lubbock will not be required to comply with any
covenant contained herein to the extent that such failure to comply, in the
opinion of nationally -recognized bond cousenl, will not adversely affect
the exemption from federal income taxation of interest on the Bonds under
November lb, 1989
Page 929
section 103 of the Code. In the event that regulations or rulings are
hereafter promulgated which impose additional requirements which are
applicable to the Bonds, Lubbock agrees to comply with the additional
requirements to the extent necessary, in the opinion of nationally -
recognized bond counsel, to preserve the exemption from federal income
taxation of interest on the Bonds under section 103 of the Code.
Dated
Dated: November 16, 1989
APPROVED AS TO CONTENT:
/s/ Robert Massengale
Robert Massengale
BRAZOS RIVER AUTHORITY
/s/ Carson Hoge
Carson Hoge, General Manager
CITY OF LUBBOCK, TEXAS
/sZ B. C. McMinn
B. C. McMINN, MAYOR
APPROVED AS TO FORM:
/s/ John C. Ross, Jr.,p
John C. Ross, Jr., City Attorney
CERTIFICATE FOR
RESOLUTION AUTHORIZING THE MAYOR OF THE CITY OF
LUBBOCK TO EXECUTE AN AGREEMENT WITH BRAZOS RIVER
AUTHORITY REGARDING TAX EXEMPTION
THE STATE OF TEXAS
COUNTY OF LUBBOCK
CITY OF LUBBOCK
We, the undersigned officers of the City of Lubbock, Texas, hereby
certify as follows:
I. The City Council of said City convened in Regular Meeting on
the 16th day of November, 19B9, at the City Hall, and the roll was called
of the duly constituted officers and members of said City Council, to -wit:
B. C. "Peck" McMinn, Mayor Ranette Boyd, City Secretary
Joan Baker George Carpenter
Bill Malay T. J. Patterson
Gary D. Phillips Maggie Trejo
and all of said persons were present, except the following absentees:
None, thus constituting a quorum. Whereupon, among other business, the
following was transacted at said Meeting: a written
RESOLUTION AUTHORIZING THE MAYOR OF THE CITY OF
LUBBOCK TO EXECUTE AN AGREEMENT WITH BRAZOS RIVER
AUTHORITY REGARDING TAX EXEMPTION
was duly introduced for the consideration of said City Council for
adoption. It was then duly moved and seconded that said Resolution be
adopted; and, after due discussion, said motion, carrying with it the
adoption of said Resolution, prevailed and carried by the following vote:
7 voted "For, 0 voted "Against", 0 Abstained, all as shown in the official
Minutes of the City Council for the Meeting held on the aforesaid date.
2. That a true, full, and correct copy of the aforesaid Resolution
adopted at the Meeting described in the above and foregoing paragraph is
attached to and follows this Certificate; that said Resolution has been
duly recorded in said City Council's minutes of said Meeting; that the
above and foregoing paragraph is a true, full, and correct excerpt from
said City Council's minutes of said Meeting pertaining to the adoption of
said Resolution; that the persons named in the above and foregoing
paragraph are the duly chosen, qualified, and acting officers and members
of said City Council as indicated therein; and that each of the officers
and members of said City Council was duly and sufficiently notified
officially and personally, in advance, of the time, place, and purpose of
the aforesaid Meeting, and that said Resolution would be introduced and
November 16, 1989
Page 930
considered for adoption at said Meeting; and that said Meeting was open to
the public, and public notice of the time, place, and purpose of said
Meeting was given, all as required by Vernon's Ann. Civ. St. Article 6252-
17.
3. That the City Council of said City has approved, and hereby
approves, the aforesaid Resolution; that the Mayor and the City Secretary
of said City have duly signed said Resolution; and that the Mayor and the
City Secretary of said City hereby declare that their signing of this
Certificate shall constitute the signing of the attached and following copy
of said Resolution for all purposes.
SIGNED AND SEALED the 16th day of November, 1989.
Is/ Ranettg Boyd /sl B. C. McMinn
City Secretary Mayor
This Agreement was prepared and submitted by the bond
counsel for the Brazos River Authority and the purpose
of the Agreement is to assure the Brazos River
Authority and its bond holders that the City of Lubbock
will not take action to jeopardize the tax exemption
status of the bonds for the Lake Alan Henry project.
The overall spirit of the Resolution is that the
project is for public purposes and will not benefit
private activity in any material amount.
The Agreement has been reviewed by the City of
Lubbock's bond counsel and the staff, and it was
recommended approval.
Motion was made by Mayor Pro Tem Baker, seconded by
Councilmember Patterson to authorize Resolution #3251
as recommended by Staff, Motion carried: 7 Yeas; 4
Nays.
89-48B-930 -679
(14.) BID #10408--Annual pricing for water treatment
chemicals {Water Treatment).
DPC Industries, Inc.--300 ea. 1-Ton Liquid Chlorine;
300 ea. 150 lbs. Cylinders Chlorine Bailey County.
Big 3 Industries--160 ea. I50 lbs. Cylinder Liquid
Chlorine.
Russ Chemical--600 Tn. Liquid Aluminum Sulfate.
Van Waters & Rogers--30 Tn. Bulk Potassium
Permanganate; 6 Tn. Potassium Permanganate in Drums;
2a Tn. Powdered Activated Carbon.
Weskem, Inc.--300 Tn. Ferric Sulfate.
Motion was made by Councilmember Carpenter, seconded by
Mayor Pro Tem Baker to authorize low bids meeting
specifications. Motion carried: 7 Yeas; 0 Nays.
November 16, 1989
Page 931
89-48B-931-.680
(15.' BID #10336--Annual pricing for anti -freeze Gana e
Part
Scoggin Dickey Buick GMC--3,000 G1. Anti -Freeze in One
Gallon Containers; 220 G. Anti -Freeze in 55 Gallon
Drums.
Motion was made by Councilmember Carpenter, seconded by
Mayor Pro Tem Baker to authorize low bid meeting
specifications. Motion carried: 7 Yeas; 0 Nays.
89-48B-931 - 681
(16.) BID #10389--Traffic sign post {Central Warehouse).
W & N Steel Co,--600 ea. 2" Galvanized Sign Post.
Motion was made by Councilmember Carpenter, seconded by
Mayor Pro Tem Baker to authorize low bid meeting ,
specifications. Motion carried: 7 Yeas; 0 Nays.
89-48B-931 -682
(17.) BID #10347A--Paratransit vehicles (Citibus).
Lasseter Bus Co., Inc.--3 ea. Paratransit Vehicles.
Motion was made by Councilmember Carpenter, seconded by
Mayor Pro Tem Baker to authorize low bid meeting
specifications. Motion carried: 7 peas; 0 Nays.
(18.) Hold an Executive Session on personnel matters to
discuss duties -and -appointments to:
Joint Airport Zoning Board
Planning and Zoning Commission
Neighborhood Redevelopment
Southeast Lubbock Development Corporation
Parks and Recreation Board
Board of City Development
89-48B-931.. 683
(19.) Consider two appointments to the Joint Airport Zoning
Board. The terms of Buddy -Barron and E. Jack Brown
will expire on NovemuLr 14 1989.
Motion was made by Councilmember Phillips seconded by
Councilmember Patterson to reappoint Buddy Barron and
E. Jack Brown to the Joint Airport Zoning Board.
Motion carried: 7 Yeas; 0 Nays.
November 16, 1989
Page 932
89-488-932--684
(20.)
89-48B-932-685
(21.)
89-48B-932 _686
(22.)
89-48B-:932 -687
(23.)
89-48B- 932- 68F
(24.)
Motion was made by Councilmember Phillips, seconded by
Councilmember Patterson to reappoint Edwin Scott and
Kyle Fulton and to appoint Gilbert Flores to replace
Paulina Jacobo and Dan Barnett to replace Norman Igo on
the Planning and Zoning Commission. Motion carried: 7
Yeas; 0 Hays.
Consider four appointments to the Neighborhood
Redevelopment Commission. The terms of Eddie
Richardson, Jack R. Thompson, Craig Coles,_and_Benny-.R.
Aguilar will expire on November 26, 1989.
Motion was made by Councilmember Phillips, seconded by
Councilmember Trejo to reappoint Eddie Richardson, Jack
R. Thompson, Craig Coles, and Benny R. Aguilar to the
Neighborhood Redevelopment Commission. Motion carried:
7 Yeas; 0 Hays.
The Southeast Lubbock Development Corporation currently
has 20 parcels of land within their inventory. Only
one parcel of land has been sold within the last three
years. The Community Development Department currently
serves in an administrative support function for the
Southeast Lubbock Development Corporation.
Motion was made by Councilmember Phillips. seconded by
Councilmember Patterson to reappoint Earl Ince, Jr.,
Octavia Givens, Harold Chatman, and Doug Boren on the
Southeast Lubbock Development Corporation. Motion
carried: 7 Yeas; 0 Hays.
Consider one appointment to the Parks and .Recreation
Board to fill the unexpired term of Ph" Hoel.
Motion was made by Councilmember Phillips, seconded by
Councilmember Trejo to appoint Joe May to fill the
unexpired term of Phil Hoel on the Parks and Recreation
Board. Motion carried: 7 Yeas; 0 Hays.
Consider ten appointments to the Board of City
Development.
Motion was made by Councilmember Phillips, seconded by
Councilmember Patterson to reappoint Adolph Hanslik,
Ron Guajardo, and John Malouf and hold appointments for
the remaining seven positions on the Board of City
Development. Motion carried: 7 Yeas; 0 Hays.
November 16, 1989
Page 933
There being no further business to come before the Council, motion was made
by Councilmember Maloy, seconded by Councilmember Patterson to adjourn the
meeting at 11:27 a.m. Motion carried: 7 Yeas; 0 Nays.
-B. C. McMINN, MAYOR
(11
Ranet a Boy , City Se etary
READ AND APPROVED THIS 7TH DAY OF DECEMBER, 1989.
C
B. C. MCMI N, MAYOR
ATT T:
Ran to "Cityary
0