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HomeMy WebLinkAboutMinutes - City Council - Regular - 3/27/1997CITY OF LUBBOCK REGULAR CITY COUNCIL MEETING March 27,1997 8:00 A.M. The City Council of the City of Lubbock, Texas, met in regular session on the 27th day of March 1997, in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas, at 8:00 A.M. Present: Mayor Windy Sitton, Mayor Pro Tem Alex Cooke, Councilmember Victor Hernandez, Councilmember T. J. Patterson, Councilmember David Nelson, Councilmember Max Ince, Councilmember Randy Neugebauer, City Manager Bob Cass, First Assistant City Attorney Don Vandiver representing the City Attorney's Office, and City Secretary Kaythie Darnell. Absent: City Attorney Anita Burgess 8:00 A.M. CITY COUNCIL CONVENES City Council Chambers, 1625 13th Street, Lubbock, Texas Mayor Sitton stated the Council will be holding an Executive session, in accordance with the V.T.C.A. Government Code, Section 551.074(a)(1) to discuss personnel matters (City Manager and City Secretary); the purchase, exchange, lease, or value of real property (Culture & Leisure Services, and Fire Department); to discuss pending or contemplated litigation (Water Utilities); and personnel matters regarding duties, responsibilities, and/or appointments to boards. 8:05 A.M. CITY COUNCIL RECESSES TO EXECUTIVE SESSION City Council/City Manager's Conference Room (1•) Hold an executive session, in accordance with V.T.C.A. Government code, Section 551.074 (a)(1), to discuss personnel matters (City Manager and City Secretary) (2•) Hold an executive session, in accordance with V.T.C.A. Government Code, Section 551.072 to discuss the purchase, exchange, lease, or value of real property (Culture & Leisure Services, and Fire Department). (3•) Hold an executive session, in accordance with V.T.C.A. Government Code, Section 551.071 to discuss pending or contemplated litigation (Water Utilities). City Council Minutes March 27, 1997 Page 154 (4.) Hold an executive session, in accordance with V.T.C.A. Government Code, Section 551.074 (a)(1), to discuss personnel matters regarding duties, responsibilities, and/or appointments to . Appointments Advisory Board Board of Electrical Examiners Board of Health Citizens Traffic Commission Committee for Women Community Development & Services Board Neighborhood Redevelopment Commission Permit and License Appeal Board Planning and Zoning Commission Public Transit Advisory Board Structural Standards Commission Zoning Board of Adjustments 9:35 A.M. WORK SESSION CONVENES Committee Room 103 (5.) Discuss regular agenda items. Bob Cass deleted Item #10. Kaythie Darnell mentioned correction of March 13, 1997 minutes concerning BID #97034 reflecting a tie bid. (6.) Update on City's successful privatization of Meadowbrook Golf Course. (7,) Update of Solid Waste Operations. 10:33 A.M. CITY COUNCIL REGULAR MEETING RECONVENES City Council Chambers Mayor Sitton called the meeting to order at 10:33 A.M. (g,) The Invocation was given by David Langford, Minister of Quaker Avenue Church of Christ. (9,) Pledge of Allegiance was given in unison by those in the City Council Chambers. 154 City Council Minutes March 27, 1997 Page 155 BOARD RECOGNITI N Jim Gomez, David Sowell, Larry Rogers, Jane Anne Stinnett, Richard Molina, Eric Strong, and Alex Torres received board certificates for agreeing to serve on various City Council Advisory Committees. Rhonda Truett and Todd McKee were recognized, however, they were not in attendance. CITIZENS COMMENTS Bill Sowder, Criminal District Attorney, spoke as representative for the Fourth Corps Program thanking the Mayor and City Council for their support. Cecil Puryear spoke against City's proposed purchase of the Depot Restaurant building and recommending that Buddy Holly memorabilia be placed in the Civic Center. Mr. Puryear spoke of his concern for citizen input with such purchases. Ray Needham from England has visited Lubbock on 29 separate occasions as of last year as a fan of Buddy Holly. Mr. Needham encouraged tourism to be marketed for economic development. Mr. Needham mentioned the development of Holly International which will be unveiled in June. Ken Phillips stated that he thought the purchase of the Depot building could be a hasty decision. Mr. Phillips encouraged the City to consider all methods of payment when selling tickets at the Lubbock Auditorium. Mr. Phillips addressed the need for quality repair, referencing the lack of repair at the intersection of 34th Street and Quaker Avenue. Mayor Sitton noted that the citizens could be assured that all aspects of an acquisition were researched. The Mayor assured citizens that the staff who negotiate such acquisitions are extremely educated and experienced in such negotiations and acquisitions. Annette Moore expressed her thanks to the Mayor for the support of "Operation Clean Hands". Sue Poteet expressed concern for the physically disabled population for such inaccessible structures as the Depot. Mrs. Poteet noted her preference for contemporary structures complementing existing structures. Josh Brockenbech apologized for his strong statement to the City Council at the last council meeting. Mr. Brockenbech noted that he had not heard from the Municipal Judge. Eddie Price Richard, Jr., who is the Managing Director of the Southwest Digest which is the most read publication by the black community, noted his concern for his integrity being challenged with inaccurate facts at the previous council meeting. (10.) Presentation of a Proclamation declaring April 7-11, 1997 as Community Development Week. This item was deleted from the agenda. 155 City Council Minutes March 27, 1997 Page 156 (11.) Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve the minutes of the March 13, 1997, Regular City Council Meeting as written with the following correction: (31.) BID #97034 -- Office Furniture - Annual Pricing (Various Departments). There was a tie bid from Hesters/McGlaun and Baker Company. Mayor Sitton drew the bid of Hesters/McGlaun from an envelope provided by Purchasing Department. Motion carried: 7 Yeas, 0 Nays. (12.) Ordinance No. 9979--Abandoning and closing a portion of 82nd Street located in Section 13, Block E-2, Lubbock County (3001 82nd Street) ORDINANCE NO.9979 AN ORDINANCE ABANDONING AND CLOSING PORTIONS OF 82ND STREET LOCATED IN SECTION 13, 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 TO REFLECT SAID ABANDONMENT AND CLOSING; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass on second and final reading Ordinance No. 9979 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (13.) Consider Resolution No. 5445 authorizing the Right -of -Way Department to make an offer to the Cone Sisters Trust for a tract of land in Section 33, Block A, Lubbock County (west of and adjacent to the existing landfill). RESOLUTION NO. 5445 WHEREAS, the City of Lubbock, Texas, a Home Rule Municipality located in Lubbock County, Texas, has determined and does hereby determine that the public needs, safety and welfare demand and create a public necessity for the acquisition of additional land for municipal public use and purposes, to wit: landfill cover material and the City Council of said City finds it in the public interest and for public purposes and municipal purposes to proceed with the acquisition of land as needed for such purposes as aforesaid; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the fee simple title to the following described tract of land located in Lubbock County, Texas, be acquired for public purposes and municipal purposes as set forth in the preamble hereof, to wit: A tract of land out of Section Thirty -Three (33), Block A, Lubbock County, Texas being further described as follows: BEGINNING at a 1/2" rod found for the Northeast corner of this tract, whence a 1/2" rod and cap (HRA) found for the occupational Northeast corner of Section 33, Block A, Lubbock County, Texas bears North 01 °26'29" East, 2199.51 feet (2200.00 feet surface), and South 88° 10' 19" East, 2619.33 feet (2619.92 feet surface); 156 City Council Minutes March 27, 1997 Page 157 THENCE South 01 °26'29" West, along the West occupational line of the East 1/2 (E/2) of said Section 33, 3093.28 feet (3093.98 feet surface) to a 1/2" rod found for the Southeast corner of this tract; THENCE North 88°10'08" West, 707.12 feet (707.28 feet surface) to a 1/2" rod set for the Southwest corner of this tract; THENCE North 01 °26'29" East 3560.50 feet (3561.30 feet surface) to a 1/2" rod set for the Northwest corner of this tract; THENCE South 54°50'01" East, 850.18 feet (850.37 feet surface) to the PLACE OF BEGINNING. SECTION 2. THAT the owner of said tract, being the Cone Sisters Trust, BE offered through the Right -of -Way Department of the City of Lubbock the amount of $54,730, which is the amount appraised as the value and total damages for the fee simple title and acquisition of said real estate hereinabove described, for the use and benefit of the City of Lubbock, Texas for the purposes herein stated, and unless accepted forthwith, the City Attorney of said City of Lubbock is hereby authorized and instructed to institute condemnation (eminent domain) proceedings to acquire the fee simple title to said land as hereinabove described for public purposes and municipal purposes. SECTION 3. THAT Resolution No. 5394, dated January 23, 1997, is hereby repealed. Passed by the City Council this 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Ed Bucy Ed Bucy, Right -of -Way Agent APPROVED AS TO FORM: /s/ Linda L. Chamales Linda L. Chamales, Supervising Attorney/Office Practice Section _ On January 23, 1997 the City Council approved $54,730 through Resolution No. 5394 as the offer to the Cone Sisters Trust for 54 acres of land adjacent to the existing landfill to be used as cover material. The legal description in this original resolution omitted the beginning sentence which stated the exact block and section in which this tract of land is located. Our Legal Department has requested that a new resolution be submitted to the Council for 157 City Council Minutes March 27, 1997 Page 158 approval with the Block and Section named in the first sentence of the legal description since this acquisition is headed for condemnation. The Right -of -Way Department recommended the approval of this resolution correcting Resolution No. 5394. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5445 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (14.) Consider Resolution No. 5446 authorizing the Mayor to execute a street -use license with Kevin and Guy Atkins (9609 Uxbridge Avenue). RESOLUTION NO. 5446 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 Street Use License with Kevin and Gay Atkins, attached hereto and 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 27th day of March 1997. Is/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: Is/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: Is/ Ed Bucy Ed Bucy, Right -of -Way Agent APPROVED AS TO FORM: Is/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Street -Use License is filed with Resolution 5446. This street -use license is for a fence and storage building encroachment in the north right-of-way of 98th Street, just east of Uxbridge Avenue. This fence and storage building encroach into 98th Street for approximately 304 square feet. The charge for this street -use license will be $106.40 per year. This was calculated by taking the 304 square feet times the average lot square foot price in this area of Lakeridge times 10 per cent from the street -use license formula for a payment due the city of $106.40. This license is for 20 years and the first five year term amount due is $532.00. 158 City Council Minutes March 27, 1997 Page 159 The Right -of -Way Department recommended the approval of this street -use license. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5446 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (15.) Consider Resolution No. 5447 authorizing the Mayor to execute a contract with Contract Asset Management, Inc. for professional services. RESOLUTION NO. 5447 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 Professional Services Contract by and between the City of Lubbock and Contract Asset Management, Inc. (CAM,I), attached herewith, and any associated documents, which Contract 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 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ J. Robert Massengale J. Robert Massengale, Managing Director of Electric Utilities APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney A copy of the Professional Services Contract is filed with Resolution 5447. LP&L has maintained a sales department for many years. This department has been very successful. LP&L has increased its customer base from 32,000 in 1980 to 51,836 in 1997. Although Lubbock Power and Light has managed to obtain 61.2 per cent of the electric customers in Lubbock, most of our customer base is residential. Our performance in acquiring new commercial accounts has been weak. This is especially true with regional and national companies, i.e., McDonald's, Sonic, Lowe's, Home Depot, Hampton Inn, Outback Steakhouse, etc. 159 City Council Minutes March 27, 1997 Page 160 LP&L is submitting this proposed contract with Contract Asset Management, Inc., (CAM,I) a power broker and sales consultant, to try to increase commercial business customers. CAM,I is a corporation formed by a former SPS marketing person, Sharon Curry, who has been instrumental in the disparity in new commercial business between the two companies. CAM,I is responsible for all its expenses and will be compensated on a straight commission basis. If CAM,I does not perform, there will be no cost to LP&L. The commission will be based on profit margin, load factor and customer retention. An example of the application of this proposed contract to a typical commercial prospect is as follows: EXAMPLE: Payback Profit Commission Commission Commission 1 st Year 2nd Year 3rd Year 5.7 Mo. $4,753 $2,709 $1,129 $1,129 Staff feel that this contract is a positive move to try to increase our commercial revenues and continue to be the "home owned advantage" for the City. Staff highly recommended that the City Council approve this contract. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5447 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (16.) Consider Resolution No. 5448 authorizing the Mayor to accept a grant from the State Energy Conservation Office for the Solar Project. RESOLUTION NO. 5448 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 Agreement by and between the City of Lubbock and the State Energy Conservation Office of the General Services Commission, attached hereto and which shall be spread upon the minutes of the Council and shall constitute and be a part of this Resolution as if fully copied herein in detail. 160 City Council Minutes March 27, 1997 Page 161 Passed by the City Council this 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ J. Robert Massengale J. Robert Massengale, Director of Electric Utilities APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Contract Agreement is filed with Resolution 5448. On November 7, the City Council was briefed on a proposed solar power project to be constructed and operated by LP&L. This item concerns a $75,000 grant from the State of Texas and is only the first of several elements to accomplish prior to having the project put together. Solar power is rapidly becoming a very important component for providing energy in the future. Solar energy converted to electricity through photovoltaic technology is being used worldwide as the most cost efficient source for electricity for many specific applications. LP&L has been looking for some time for an opportunity to gain some experience in photovoltaic technology. Staff believe that this opportunity has presented itself through the Green Power Project that LP&L is proposing. The Green Power Project is a partnership of several government, non-profit and private sector entities. The current participants are LP&L, Breedlove Dehydration Plant, ENTECH, the State of Texas, 3M Corporation, Lubbock Teamsters Union, City of Austin, and Texas Tech. Additional participants being considered are the USDA and the U.S. Department of Energy. This project is to salvage a portion of a solar power project that currently is installed on the roof of the parking facility of the 3M Corporation facility in Austin, Texas. The project consists of four rows of sixty solar collectors which are proposed to be relocated to a site east of the Breedlove Dehydration Plant in Lubbock. The collectors, when reinstalled, will cover approximately one acre of land. The electricity will be taken into LP&L's grid and will be 161 City Council Minutes March 27, 1997 Page 162 credited partially to the Breedlove Dehydration Plant electricity charges. The 3M Corporation and the City of Austin have decided to remove the project because of damage that has occurred to about two-thirds of the project. The damage was inflicted on the equipment by a paint contractor who was engaged to paint the framework and inadvertently damaged the collectors in the sandblasting and painting process. There are currently twelve rows of collectors and staff are proposing to relocate four of the rows of collectors. The current estimated budget is $425,000. The approximate participant shares are as follows: LP&L (Cash) $75,000 LP&L (In -Kind Labor & Equip) $89,000 State of Texas Energy Conservation Office (Cash) $75,000 Breedlove (Site) $ 5,000 Breedlove (Transportation -Teamster Union) $35,000 3M and City of Austin (Cash) $75,000 Texas Tech (In -Kind Monitoring and Reporting) $20,000 Additional Needed $51,000 TOTAL i4ZLQ0A ENTECH, the company that originally manufactured the project, is providing the planning, engineering and supervision of the project. The Green Power Project will produce 80 kW at maximum output. It is estimated that it will produce 145,000 kWh per year. The Breedlove Plant will be credited with approximately $7,000 on their electricity charges annually. The benefit to LP&L will be primarily in research and training. There is benefit to LP&L in that the Green Power Project will be producing its highest output during the time that LP&L is in the most need of the energy, during the hottest times of the summer. This is the first element of several to be completed prior to the start of the project. Staff believe this project will benefit LP&L in research and as a power source, therefore, staff recommended approval of the resolution. Note that receipt of the grant does not, in and of itself, commit the City to implement the project. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5448 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (17.) Consider Resolution No. 5449 authorizing the Mayor to execute an Assignment of Franchise from Cox Cable Lubbock to CoxCom, Inc. 162 City Council Minutes March 27, 1997 Page 163 RESOLUTION NO.5449 WHEREAS, the City of Lubbock, a home rule municipal corporation of the State of Texas, has authority to grant non-exclusive franchises under applicable provisions of law pursuant to its authority to regulate and control the use of public streets, alleys and rights -of -way; and WHEREAS, the City of Lubbock has heretofore granted a franchise by Ordinance No. 8573 to Transvideo Corporation, a subsidiary of Cox Communications, Inc., doing business as Cox Cable Lubbock, ("Franchisee"); and WHEREAS, "Franchisee" desires to assign said City of Lubbock franchise to CoxCom, Inc., which also is a subsidiary of Cox Communications, Inc., doing business as Cox Communications as part of a process by which Cox Cable, Inc., is consolidating its many subsidiaries into a smaller number of subsidiaries to improve operational efficiency, reduce administrative burdens and to simplify Cox Cable, Inc.'s organizational structure; and WHEREAS, said consolidation will result in the Franchisee being merged with and into CoxCom, Inc., and CoxCom, Inc., will be the surviving corporation; and WHEREAS, CoxCom, Inc., desires to obtain said franchise and makes the commitments hereunder in consideration of the grant of authority by the City to make use of public streets, alleys and rights -of -way; and WHEREAS, the City Council finds the assignment to be in the best interest of the citizens of the City of Lubbock; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. The City of Lubbock hereby consents to the assignment of the franchise issued by Ordinance No. 8573 to CoxCom, Inc., subject to the terms contained herein. SECTION 2. CoxCom, Inc., shall, within thirty (30) days from the date of passage of this Resolution by the City Council file with the City Secretary of the City of Lubbock an executed acceptance of the franchise signed by persons that are duly authorized by CoxCom, Inc., to sign and make such an acceptance, in the following form: The Honorable Mayor and City Council of the City of Lubbock: CoxCom, Inc., for themselves, their successors and assigns, hereby accepts Cable Television Ordinance No. 8573 and any amendments thereto and hereby agrees to be fully bound by all of its terms and provisions hereafter. CoxCom, Inc. SECTION 3. A Transfer of Franchise in substantially the same form as is attached hereto as Exhibit A shall be provided to the substituted franchise holder upon receipt of the written acceptance of the franchise. SECTION 4. Should any section, paragraph, sentence, clause, phrase, or word of this Resolution be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. 163 City Council Minutes March 27, 1997 Page 164 Passed by the City Council this 27th day of March 1997. ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Debra B. Forte' Debra B. Forte', First Assistant City Manager APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney /s/ WINDY SITTON WINDY SITTON, MAYOR ASSIGNMENT OF FRANCHISE Pursuant to Resolution No. 5449 of the City of Lubbock, Texas, enacted on March 27, 1997, the City Council of the City of Lubbock hereby authorizes the T assignment of the franchise, right and privilege granted in Ordinance No. 8573 to Transvideo Corporation, a subsidiary of Cox Communications, Inc., to CoxCom, Inc. a subsidiary of Cox Communications, Inc., and each reference in said Ordinance to the Franchise Holder shall as of the date of this Transfer of Franchise be deemed a reference to CoxCom, Inc. Ordinance No. 8573 remains in full force and effect and this transfer is expressly made subordinate to the terms and conditions of said Franchise Ordinance, and a copy of this Transfer of Franchise shall be filed with said Ordinance in the official records of the City of Lubbock. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary Cox Communications is consolidating its many subsidiaries into a smaller number of subsidiaries to improve operational efficiency, reduce administrative burdens and simplify their organizational structure. This consolidation will result in Cox Cable being merged into CoxCom, Inc., with CoxCom being the surviving corporation. They have requested that the existing franchise agreement with the City of Lubbock be assigned to CoxCom, Inc. 164 City Council Minutes March 27, 1997 Page 165 CoxCom has agreed to be fully bound by the terms and provisions of the franchise. Staff recommended approval of the Assignment of Franchise. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5449 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (18.) Consider Resolution No. 5450 authorizing the Mayor to execute a contract with the Texas Department of Health to provide HIV counseling services for prevention and education. RE OLUTION NO. 5450 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 for HIV prevention activities, attached herewith, by and between the City of Lubbock and Texas Department of Health, and any associated documents, which Contract 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 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Mary Strange Mary Strange, Medical Services Manager APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney A copy of the Public Health Services Contract is filed with Resolution 5450. This contract with the Texas Department of Health (TDH) comes before the City Council annually. The contract includes the collaborative efforts among the Health Department, South Plains AIDS Resource Center, Catholic Family Services, and Mental Health Mental Retardation Center to provide HIV education, prevention, testing, and counseling. Each agency has a unique role in providing these services, not only to Lubbock residents, but to 165 City Council Minutes March 27, 1997 Page 166 the 15 southern counties that make up Region 1 of TDH. All agencies are needed to provide comprehensive, continuous care for persons at risk or who are diagnosed as HIV positive. The City Health Department provides testing and counseling services, both pre -test and post-test, with heavy emphasis placed on education and preventive measures. With the focus of HIV no longer being solely on the homosexual population, the counseling for education and preventive measures is increasing in the heterosexual population. The City Health Department targets various types of persons who are at risk for HIV infection, some of whom include: homosexuals, heterosexuals, teens, college students, incarcerated persons (both teen and adults), gang members, etc. Through these targeted groups education and preventive measure are presented. Due to our educational efforts the incidence of HIV/AIDS has not increased as rapidly as in other parts of the country. The total attachment amount is $41,933, which covers complete cost of travel, supplies and brochures, 98 per cent of salary and fringe benefits, and $1,600 in indirect (administrative) costs. Without the Texas Department of Health contract, the City of Lubbock Health Department would not be able to fulfill a segment of the prevention aspect of the Core Missions of Public Health. Therefore, staff recommended approval of this resolution. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to pass Resolution No. 5450 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (19.) Bid #13722--Lubbock Power & Light South Substation Landscaping and authorize same (Electric Distribution). RESOLUTION :TO.5451 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 Service Contract by and between the City of Lubbock and WARDROUP & ASSOCIATES, INC., of Lubbock, Texas, to install and furnish all materials and services as bid for the LP&L SOUTH SUBSTATION LANDSCAPING., attached hereto, 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. 166 City Council Minutes March 27, 1997 Page 167 Passed by the City Council this 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Victor Kilman Victor Kilman, Purchasing Manager APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 27th day of March, 1997, by and between the City of Lubbock, County of Lubbock, State of Texas, acting by and through Windy Sitton, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Wardroup & Associates, of the City of Lubbock, County of Lubbock, and the State of Texas, herein termed CONTRACTOR. WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the OWNER and under the conditions expressed in the bond bearing even date herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence and complete the construction of certain improvements described as follows: BID #13772 - LP&L SUBSTATION LANDSCAPING - $47,592.86 and all extra work in connection therewith, under the terms as stated in the contract documents, and at his (or their) own proper cost and expense to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete said construction in accordance with the contract documents as defined in the General Condition of Agreement. THE CONTRACTOR hereby agrees to commence work within ten days after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract documents. The OWNER agrees to pay the CONTRACTOR in current funds for the performance of the contract in accordance with the bid submitted therefore, subject to additions and deductions, as provided in the contract documents and to make payment on account thereof as provided therein. 167 City Council Minutes March 27, 1997 Page168 IN WITNESS WHEREOF, the parties to these presents have executed this agreement in Lubbock, Lubbock County, Texas in the year and day first above written. ATTEST: /s/ Kaythie Darnell Secretary APPROVED AS TO CONTENT: /s/ Wayne Hicks Owner's Representative APPROVED AS TO FORM: /s/ Don Vandiver City Attorney ATTEST: Corporate Secretary CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton MAYOR CONTRACTOR: Wardroup & Associates By: /s/ Dennis W. Wardroup PRINTED NAME: Dennis W. Wardroup TITLE: President COMPLETE ADDRESS: Wardroup & Associates P. O. Box 6999 Lubbock, Texas 79493 Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve Resolution No. 5451 as recommended by staff. Motion carried: 7 Yeas; 0 Nays. (20.) Bid #97021--Mail Opening & Extraction System (LP&L Utility Billing). Processing & Storage Technologies, Inc. - Total bid Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve low bids meeting specifications as recommended by staff. Motion carried: 7 Yeas; 0 Nays. (21.) Bid #97037--Utility Bodies & Tailgate Lifts (Fleet Services). Pick Up Pals, Inc.; 3 EA Tip -Top Utility Body per Spec #708, 2 EA Utility Body per Spec #713, 1 EA Tip -Top Utility Body per Spec #766, 4 EA Utility Body per Spec #768 J & B Trailers & Equipment, Inc. 2 EA Tailgate Lift per Spec #763 Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve low bids meeting specifications as recommended by staff. Motion carried: 7 Yeas; 0 Nays. (22.) Bid #97044--Contract Turf Maintenance (Culture & Leisure Services). Sport Lawn Care --Contract Turf Maintenance -Group 1 City Council Minutes March 27, 1997 Page 169 West Texas Maintenance, Inc. --Contract Turf Maintenance - Group 6, Group 8, Group 9-A, Peak Season and Group 9-A, Off Season. Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve low bids meeting specifications as recommended by staff. Motion carried: 7 Yeas; 0 Nays. (23.) Bid #97048--Construction of Fire Station 4 Facility and authorize same (Building Services). RESOLUTION NO.5452 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 Service Contract by and between the City of Lubbock and PHARR & COMPANY, of Lubbock, Texas, to install and furnish all materials and services as bid for CONSTRUCTION OF FIRE STATION #4 FACILITY, attached hereto, 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 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Victor Kilman Victor Kilman, Purchasing Manager APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 27th day of March, 1997, by and between the City of Lubbock, County of Lubbock, State of Texas, acting by and through Windy Sitton, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Pharr & Company, of the City of Lubbock, County of Lubbock, and the State of Texas, herein termed CONTRACTOR. 169 City Council Minutes March 27, 1997 Page 170 WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the OWNER and under the conditions expressed in the bond bearing even date herewith (if any) the CONTRACTOR hereby agrees with OWNER to commence and complete the construction of certain improvements described as follows: BID #97048 - CONSTRUCTION OF FIRE STATION #4 FACILITY - $719,498.00 and all extra work in connection therewith, under the terms as stated in the contract documents, and at his (or their) own proper cost and expense to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete said construction in accordance with the contract documents as defined in the General Condition of Agreement. THE CONTRACTOR hereby agrees to commence work within ten days after the date written notice to do so shall have been given to him and to substantially complete same within the time specified in the contract documents. The OWNER agrees to pay the CONTRACTOR in current funds for the performance of the contract in accordance with the bid submitted therefore, subject to additions and deductions, as provided in the contract documents and to make payment on account thereof as provided therein. IN WITNESS WHEREOF, the parties to these presents have executed this agreement in Lubbock, Lubbock County, Texas in the year and day first above written. ATTEST: /s/ Kaythie Darnell Secretary APPROVED AS TO CONTENT: /s/ Gary Smith Owner's Representative APPROVED AS TO FORM: /s/ Don Vandiver City Attorney ATTEST: Corporate Secretary /s/ Jackie Norrell CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton MAYOR CONTRACTOR: Pharr & Company By: /s/ Jimmy R. Pharr PRINTED NAME: Jimmy R. Phan TITLE: President COMPLETE ADDRESS: Phan & Company P. O. Box 2791 Lubbock, Texas 79408 Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve Resolution No. 5452 as recommended by staff. Motion carried: 7 Yeas; 0 Nays. 170 City Council Minutes March 27, 1997 Page 171 (24.) Bid #97049--Fertilizer (Parks & Recreation). Kitten Fertilizer & Supply: 106 TN Ammonium Sulfate 21-0-0, applied; 2400 LB Ammonium Sulfate 21-0-0, applied; 118 TN 16-4-12+2% Iron, w/30% Nitrogen, Sulfur Coated; 13 TN 16-4-12+2% Iron w/30% Nitrogen, Poly Coated, Applied; 3,000 LB 16-4-12+2% Iron w/30% Nitrogen, Sulfur Coated, Applied; 62 TN 16-4-12+2% Iron w/30% Nitrogen, Sulfur coated, Applied; 13 TN 16-4-12+2% Iron w/30% Nitrogen, Poly coated, Applied; 118 TN 16-4-12+2% Iron w/30% Nitrogen, Sulfur Coated, Applied; 13 TN 16-4-12+2% Iron w/30% Nitrogen, Poly Coated, Applied; 3,000 LB 16-4-12+2% Nitrogen, Sulfur Coated, Applied. Central Garden & Pet Company 250 Bags 16-4-12+2% Iron Motion was made by Councilmember Cooke, seconded by Councilmember Nelson to approve low bids meeting specifications as recommended by staff. Motion carried: 7 Yeas; 0 Nays. Staff recommended award of these bids to the bidder as indicated on the tabsheet. PUBLIC HEARINGS (25.) Ordinance No. 9980--ZONE CASE NO. 1893-U (North of 4th Street and west of Frankford Avenue): Hold a public hearing to consider request of Ken Flagg (for McDougal Construction) for zoning change from C-3 to A-2 with A-1 development standards for apartments on 6,490 acres of land out of Section 2, Block J-5, and to consider ordinance. ORDINANCE N0.9980 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 1893-U; A ZONING CHANGE FROM C-3 TO A-2 ZONING WITH A-1 DEVELOPMENT STANDARDS FOR APARTMENTS ON 6.490 ACRES OF LAND OUT OF SECTION 2, BLOCK J-5, LUBBOCK, TEXAS; SUBJECT TO CONDITIONS, PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor Sitton opened the public hearing at 11:18 a.m. Ken Flagg appeared on behalf of McDougal Construction to present the zone change from C-3 to A-2 with A-1 development standards for apartments. No one appeared in opposition. Mayor Sitton closed the hearing at 11:22 a.m. 171 City Council Minutes March 27, 1997 Page 172 Randy Henson, Senior Planner, presented staff comments. In a shuffle of location for commercial and apartment districts contained in the original Planned Unit Development for Shadow Hills, this request will change a C-3 tract to A-2, providing for three-story units and otherwise using A-1 development standards. The tract to the west was approved from GO to C-3 last month. Adjacent land uses: North - zoned A-1, developed as garden homes South - church East - apartments West - vacant commercial The proposal is filed as A-2 to accommodate the three-story structures with a condition to use A-1 development standards. The project is consistent with the Comprehensive Land Use Plan and zoning policies. No public opposition was expressed during the Planning and Zoning meeting. The project is adjacent to 4th Street which will be capable of handling the added traffic. The Planning and Zoning Commission recommended approval of the request subject to the following condition: Subject to A-1 development standards with the exception that three-story construction shall be allowed. The staff supports the recommendation of the Planning and Zoning Commission. Motion was made by Councilmember Cooke, seconded by Councilmember Ince to pass on first reading Ordinance No. 9980 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (26.) Ordinance No. 9981--ZONE CASE NO. 2318-B (South of 66th Street and west of Frankford Avenue): Hold a public hearing to consider request of Ken Flagg (for McDougal Construction) for zoning change from C-2 and R-1 to A-1 on 5.086 tract of land out of Section 29, Block A-K, and to consider ordinance. ORDINANCE NO. 9981 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2318-13; A ZONING CHANGE FROM C-2 and R-1 TO A-1 ZONING ON 5,086 TRACT OF LAND OUT OF SECTION 29, BLOCK A-K, LUBBOCK, TEXAS; SUBJECT TO CONDITIONS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor Sitton opened the public hearing at 11:26 a.m. Ken Flagg appeared on behalf of McDougal Construction to present the zone change from C-2 and R-1 to A-1. Councilmember Hernandez asked if homeowners purchased with the knowledge that something rather than residential would go in. Truett Craft also appeared on behalf of the zone change and stated that he felt strongly for the project. Clay Pritchett appeared in opposition. Mr. Pritchett spoke his concerns as a homeowner which consisted of 172 City Council Minutes March 27, 1997 Page 173 the direct view the second -level occupants would have into his backyard. Councilmember Hernandez noted that he was hopeful that all concerns of the Neighborhood Association had been addressed. Mr. Flagg noted that several were in attendance; however, they chose not to speak publicly. Mayor Sitton closed the hearing at 11:52 a.m. Randy Henson, Senior Planner, presented staff comments. The request is to accommodate an apartment complex. Adjacent land uses: North - heavy commercial South - zoned A-1, part is an apartment complex and part is developed as garden homes and townhomes East - single family across Frankford Avenue West - apartments The request is reasonably consistent with the Comprehensive Land Use Plan and zoning policies. This parcel is actually commercial on the plan, and buffered on the west and south by A-1 zoning. Most of the opposition expressed was from owners of garden homes built in the A-1 zone south of 67th. Garden homes are in a permitted use in the A-1 District. The project is adjacent to Frankford Avenue, which is a thoroughfare, and 66th Street (a collector). The additional traffic is not any greater than expected and should not affect the thoroughfare system. 67th Street is a 60 foot R-2 street designed for heavier traffic adjacent to shopping centers and apartments. The site plan indicates that a request will be made to close Genoa between 66th and 67th Streets. Traffic Engineering has scheduled traffic counts on Genoa to determine if closing the street will have any negative impact. The Planning Commission questioned if a security fence is proposed and suggested that the proponent have a more definitive plan for discussion at the Council meeting. Also, the Commission expressed sympathy with neighbor concerns but questioned why they had purchased homes close to property that was obviously going to be either commercial or apartments. No adequate response was made. The Planning and Zoning Commission recommended approval of the request subject to the following condition: A site plan, including building elevations showing materials, color, texture, a detailed landscape plan and irrigation plan, shall be submitted to the Planning and Zoning Commission for approval prior to the issuance of a building permit. Notice shall be mailed prior to the hearing. With the proposed condition (unless a detailed site plan is reviewed and adopted during the Council meeting) the staff supports the recommendation of the Planning and Zoning Commission. 173 City Council Minutes March 27, 1997 Page 174 Councilmember Neugebauer ask if a decision was required today. Mr. Henson noted that McDougal was requesting because the Planning and Zoning committee only meets once a month which could delay construction by 30 days. Motion was made by Councilmember Cooke, seconded by Councilmember Patterson to pass on first reading Ordinance No. 9981 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. _ Councilmember Neugebauer stepped away from the dais. (27.) Ordinance No. 9982--ZONE CASE NO. 2790 (West of Fulton Avenue and south of 4th Street): Hold a public hearing to consider request of Rick Betenbough for zoning change from R-1 to R-1 Specific Use for garden homes on a portion of land out of Section 9, Block J-5, and to consider ordinance. ORDINANCE NO.9982 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2790; A ZONING CHANGE FROM R-1 TO R-1 SPECIFIC USE ZONING FOR GARDEN HOMES ON A POTION OF LAND OUT OF SECTION 9, BLOCK J-S, LUBBOCK, TEXAS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor Sitton opened the public hearing at 12:00 noon. Rick Betenbough appeared to present the zone change from R-1 to R-1 Specific Use for Garden Homes. No one appeared in opposition. Mayor Sitton closed the hearing at 12:03 p.m. Randy Henson, Senior Planner, presented staff comments. The parcel is a remnant of the Revier Farms area where development stalled about 15 years ago. Adjacent land uses: North - two churches South - single family and a church East - townhomes and vacant R-1 West - single family Garden homes, which are a style of single family homes, are consistent with both the Comprehensive Land Use Plan and zoning policies. The project should have no adverse impact on the thoroughfare system. The Planning and Zoning Commission recommended approval of the request. The staff supports the recommendation of the Planning and Zoning Commission. Councilmember Hernandez ask if notices had been mailed, and Mr. Henson responded in the affirmative. Motion was made by Councilmember Patterson, seconded by Councilmember Nelson to pass on first reading Ordinance No. 9982 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. 174 City Council Minutes March 27, 1997 Page175 (28.) Ordinance No. 9983--ZONE CASE NO. 2791 (South of 90th Street and east of Elgin Avenue): Hold a public hearing to consider request of Rick Betenbough for zoning change from R-1 to R-1 Specific Use for garden homes on a portion of land out of Section 13, Block E-2, and to consider ordinance. ORDINANCE NO.9983 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 2791; A ZONING CHANGE FROM R-1 TO R-1 SPECIFIC USE ZONING FOR GARDEN HOMES ON A PORTION OF LAND OUT OF SECTION 13, BLOCK E-2, LUBBOCK, TEXAS; PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor Sitton opened the public hearing at 12:04 p.m. Rick Betenbough appeared to present the zone change from R-1 to R-1 Specific Use for garden homes. No one appeared in opposition. Councilmember Hernandez questioned the letter of opposition, and Mr. Betenbough was not aware of the letter. The garden homes will be sold and not leased or rented. Mayor Sitton closed the hearing at 12:06 a.m. Randy Henson, Senior Planner, presented staff comments. The proponent wishes the south side of 90th Street to match the existing garden home zoning on the north side. Adjacent land uses: North - vacant - R-1 South - single family East - park West - single family The request is consistent with both the Comprehensive Land Use Plan and zoning policies. The project will have no adverse impact on the thoroughfare system. The Planning and Zoning Commission recommended approval of the request. The staff supports the recommendation of the Planning and Zoning Commission. Motion was made by Councilmember Patterson, seconded by Councilmember Nelson to pass on first reading Ordinance No. 9983 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (29•) Consider a resolution authorizing the Right -of -Way Department to make an offer to Ronnie Thompson for a tract of land in Block 232, Original Town Addition to the City of Lubbock (1801 Avenue G). Motion was made by Councilmember Cooke, seconded by Councilmember Ince to take no action. Motion carried: 7 Yeas, 0 Nays. 175 City Council Minutes March 27, 1997 Page 176 (30.) Consider Resolution No. 5453 giving Notice of Intent to enter into a tax abatement agreement with Purina Mills, Inc. RESOLUTION NO. 5453 WHEREAS, the City Council has determined to give notice of its intent to enter into a Tax Abatement Agreement with Purina Mills, Inc.; and WHEREAS, V.T.C.A., Tax Code Section 312.2041 requires notice of the intent of the City Council to be given to the presiding officer of the governing body of each taxing unit in which the property to be subject to the Tax Abatement Agreement is located; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of the City Council to enter into a Tax Abatement Agreement with Purina Mills, Inc., said notice to be given to the presiding officers of each governing body of each taxing unit having jurisdiction in assessing taxes on property located at 201 E. Municipal Drive in the City of Lubbock, Lubbock County, Texas, and further described on Exhibit "B" attached to this Resolution. Passed by the City Council this 27th day of March 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Debra B. Forte' Debra B. Forte', First Assistant City Manager APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney Copies of Exhibits "A", `B", and "C" ("C" being the Purina Mills Agreement) are filed with Resolution 5453. Staff has received a request from Purina Mills, Inc. for industrial tax abatement in the North Enterprise Zone. Purina Mills is planning to replace the existing plant with a larger, modern, state- of -the -art facility to better meet the demands of Purina's growing customer base. 176 City Council Minutes March 27, 1997 Page177 Purina Mills plans to invest $15 million in this new facility. The breakdown will be $6.5 million for the new plant and $8.5 million for new equipment and machinery. Once the new plant is constructed, the old plant will be demolished. The current facility has an assessed value of approximately $575,000. Purina Mills has an annual average of 65 employees. During the winter, their peak time, they have approximately 71 employees. During the summer months the employment is less, since the demand for their product is less. The company does not plan to increase their employment with the upgrade of the new facility. They have requested tax abatement on the basis of retention of the existing average of 65 jobs. The Guidelines and Criteria governing tax abatement for all taxing units approved by the City Council and Lubbock County require a minimum investment of $1 million dollars and the creation of ten new jobs. Since Purina Mills is not planning on increasing their employment, they do not meet the minimum requirements for tax abatement according to the guidelines. However, the guidelines do provide for the City Council, upon the affirmative vote of three - fourths of its members, to vary any of the requirements when it is demonstrated by the applicant for tax abatement that variation is in the best interest of the Affected Jurisdiction and will enhance the economic development of the Affected Jurisdiction. Purina Mills is seeking a variance of the job creation requirement based on the following factors: The current facility has outlived its economic viability. Without this investment, the company would cease operations in Lubbock within three years, removing $3 million from the tax base and a 65 person, $2.1 million annual payroll from the economy. The scope of the project greatly exceeds the minimum investment criteria governing tax abatement. The total net investment, total investment minus taxable value of old plant and equipment, will be approximately $14.5 million. The average annual amount of the City tax abatement would be approximately $70,000, with depreciation built in. The total amount for the City of Lubbock over the life of the contract would be approximately $690,276. The average annual amount of the County tax abatement would be approximately $33,000. The total amount for Lubbock County over the life of the contract would be approximately $330,000. A twenty year cost/benefit analysis was performed on this project with the following results: Net Community Wide benefit of this project: $216,913,584 LISD will collect property tax over 20 years: $139,417,225 Retention of an average 65 jobs: Est. annual payroll: $2,140,559 Impact of annual payroll: $9,607,470 New Investment in North Enterprise Zone: $15,000,000 177 City Council Minutes March 27, 1997 Page178 Construction impact: Actual construction: Impact of construction: Utility Usage: approx. annual cost: approx. increase in cost with expansion: Cost/Benefit: The benefit far exceeds the cost. See attached schedule. $6,500,000 $15,044,250 $253,545 $49,931 The project will add $14.5 million in net new value to the tax base in the North Enterprise Zone and will result in the retention of an average 65 existing jobs, with a payroll of approximately $2.1 million. Under the current guidelines, Purina Mills does not meet the minimum job creation requirement, but based on the attached cost/benefit analysis, staff recommended that this requirement be waived for this project. Staff concurs with Market Lubbock, Inc.'s recommendation for approval of the tax abatement at 100 per cent for a period of ten years. (See attached memo from Market Lubbock, Inc.) Staff member Debra Forte', (First Assistant City Manager), Stephen Morath and Cheryl Brock representing Market Lubbock, Inc., and Dr. Ted Jackson representing Purina Mills were in attendance. Mr. Morath noted that the benefits far outweighed what will be given up. Purina Mills has been in business since 1941 and encouraged each abatement project be assessed in its own merit. Councilmember Hernandez questioned establishing the atmosphere whereby deviations were allowed. Hernandez noted the need to reassess the Abatement guidelines. Councilmember Hernandez asked that the reassessment be initiated then ask for Purina to return with request. Mr. Morath noted the need to act quickly for Purina's benefit. Bob Cass noted that the guidelines would be re-evaluated in September. Dr. Jackson stated that Purina's Board had approved the figures that included the abatement and that they needed to move forward; the time frame was critical. The facility has had no repairs for the last 2-3 years. During the last 5 years, Purina has added 15 jobs; however, they are reluctant to assure additional jobs at this time. Councilmember Hernandez asked if Purina had any intent to leave Lubbock. Dr. Jackson noted that there were other options. Councilmember Hernandez asked about a payback clause. Cheryl Brock responded that such a provision existed in that should the employment level at Purina drop below 65 (current level) the abatement would cease. W: City Council Minutes March 27, 1997 Page 179 Councilmember Patterson expressed support for the abatement based upon the established history of Purina. Councilmember Hernandez noted that Market Lubbock, Inc. was charged with creating good paying jobs. Ms. Brock responded by noting that the average of the low paying positions was $23,000. Ms. Brock noted that the contract would be audited and monitored. Councilmember Nelson asked if Purina was being courted by other cities. Dr. Jackson noted that all other cities were within a 75-mile radius of Lubbock. Councilmember Neugebauer noted his struggle in considering the abatement because the guidelines state that abatement was tied to jobs. Councilmember Neugebauer stated that Council needed to be fair, equitable and consistent. He further noted that state legislature's intent was to allow municipalities to compete with other states; however, the law is pitting one city against another. Councilmember Neugebauer stated that he was not ready to voice a decision, and he asked to hold for two weeks. Councilmember Nelson asked the value of the LP&L benefit. Ms. Brock responded $98,000. Councilmember Hernandez suggested a motion with a "stay" to any other businesses coming forward requesting exceptions until guidelines are revised. Mayor Sitton voiced support of Market Lubbock, Inc.; however, she, too, has struggled with a decision. The Mayor requested additional time to study. Councilmember Ince asked the amount of the abatement. Dr. Jackson noted that $140,000 annually in the new price and that Purina would continue with current tax amount. Councilmember Neugebauer questioned taxes would be raised at levels being projected. Councilmember Cooke asked to allow abatement based upon a lower ad valorem tax. Councilmember Nelson noted that he could not support and he made a motion to table item #30. Mayor Sitton requested, again, two weeks to study the abatement. Dr. Jackson stated that they could not allow that much time to pass. 1:00 P.M. Councilmember Neugebauer made the motion to recess and have staff to look into pending Legislation. Motion was seconded by Councilmember Cooke. Motion passed: 7 Yeas; 0 Nays. Councilmember Nelson withdrew his motion. 179 City Council Minutes March 27, 1997 Page180 3:50 p.m. CITY COUNCIL RECONVENES Mayor Sitton asked for the effect of two legislative bills Councilmember Hernandez read from a prepared statement. This statement is to be inserted into Exhibit "C" prior to the last "WHEREAS" paragraph in the preamble: WHEREAS, Section 312.204(f) of the Tax Code provides that Tax Abatement Agreements for property located in a municipal enterprise zone are not required to contain identical terms to all other Tax Abatement Agreements; and WHEREAS, it is anticipated that law resulting in reduced local ad valorem taxation by cities, counties and school districts on businesses shall be enacted by the Texas Legislature; and WHEREAS, the City Council finds that the total tax abatement to be provided by the City to the Company for the tax abatement term shall be reduced at the end of each term year after the base year by the same amount of any ad valorem tax reduction provided by the Texas legislature beyond the ad valorem tax rate that would otherwise have been in effect in without such legislation having been passed; and The amount of taxes herein abated shall be reduced dollar for dollar by any amount of ad valorem relief that shall be granted by the Texas Legislature during the term of this agreement. Such reduction in abatement shall be included in each year's tax payment by the Company to the City following the base year should the Legislature take such action. Furthermore, I would propose appending said motion to state that the City Council does not desire to grant any further exceptions to the Tax Abatement Policy and Guidelines and finally, append the motion to state that the City Council direct the City staff to immediately start the revision process to the Tax Abatement Policy and Guidelines. Dr. Jackson asked, with an affirmative vote today, that he would have a couple of days to review. Councilmember Nelson made a motion to substitute the motion by Councilmember Hernandez, seconded by Councilmember Ince. Councilmember Nelson stated that an Ordinance and Resolution were in place that do not allow abatement, and that he feels obligated to follow. Councilmember Nelson made a motion to table item #30. Mayor Sitton noted that this is one of the few methods whereby the City of Lubbock could be competitive. Mayor Sitton asked for those in favor of tabling for continuance item #30. The vote was 2 (Ince, Nelson) to 5. City Council Minutes March 27, 1997 Page181 Motion was made by Councilmember Hernandez, seconded by Councilmember Patterson to authorize Resolution No. 5453 as recommended by staff. Motion carried: 6 Yeas; 1 Nay; Councilmember David Nelson voted nay. (31.) Confirm appointment of Mark Proctor to the Appointments Advisory Board. Motion was made by Councilmember Cooke and seconded by Councilmember Hernandez to appoint Mark Proctor to the Appointments Advisory Board. Motion carried: 7 Yeas; 0 Nays (32.) Confirm appointment of Ray Duncan to the Board of Electrical Examiners. Motion was made by Councilmember Cooke and seconded by Councilmember Hernandez to appoint Ray Duncan to the Board of Electrical Examiners. Motion carried: 7 Yeas; 0 Nays (33.) Confirm reappointment of Betty Condra, Rose Mediano, Rita Melton, Carmyn Morrow, Barbara Sommerville, and Sharon Prather to the Committee for Women. Motion was made by Councilmember Cooke and seconded by Councilmember Hernandez to appoint Betty Condra, Rose Mediano, Rita Melton, Carmyn Morrow, Barbara Sommerville, and Sharon Prather to the Committee for Women. Motion carried: 7 Yeas; 0 Nays (34.) Consider the ratification of City Manager's appointment of Debra Shepherd to the Fire Fighter and Police Officer Civil Service Commission, according to Chapter 143.006 of the Local Government Code. Chapter 143 of the Local Government Code grants the Chief Executive Officer, who according to our City Charter is the City Manager, the authority to appoint the commissioners to the Civil Service Commission. Bill Wischkaemper's appointment ended January 25, 1997. Debra Shepherd has been appointed to take his place. Debra currently works for the Lubbock State School in the Human Resources department. She has worked in this department for the last eight years and worked in the same capacity with MHMR. She has received 60 hours of mediation training and all of her Human Resource experience has been in employee relations. She is therefore aware of all laws related to the employee/employer relationship. She has also served as a Grievance Officer for the State of Texas. Her term would be from March 27, 1997 to January 25, 2000. Staff recommended that Council ratify the appointment of Debra Shepherd to the Civil Service Commission. 181 City Council Minutes March 27, 1997 Page 182 Motion was made by Councilmember Cooke and seconded by Councilmember Hernandez to appoint Debra Shepherd to the Fire Fighter and Police Officer Civil Service Commission. Motion carried: 7 Yeas, 0 Nays 4:10 P.M. There being no further business to come before Council, Councilmember Patterson made a motion to adjourn, Councilmember Cooke seconded the motion. Motion carried: 7 Yeas; 0 Nays. WINDY SITCON, MAYOR ATTEST: ayt i Darnell, City ecretary Read and approved this of May 199 . qrz" WINDY SITT , MAYOR ATTEST: 944jw j Kayt i Darnell, City Secretary 182