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HomeMy WebLinkAboutMinutes - City Council - Regular - 4/10/1997CITY OF LUBBOCK REGULAR CITY COUNCIL MEETING April 10,1997 8:00 A.M. The City Council of the City of Lubbock, Texas, met in regular session on the loth day of April 1997, in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas, at 8:00 A.M. Present: Mayor Windy Sitton, Councilmember Victor Hernandez, Councilmember T. J. Patterson, Councilmember David Nelson, Councilmember Max Ince, Councilmember Randy Neugebauer, City Manager Bob Cass, City Attorney Anita Burgess, and City Secretary Kaythie Darnell. Absent: Mayor Pro Tem Alex Cooke 8:00 A.M. CITY COUNCIL CONVENES City Council Chambers, 1625 13th Street, Lubbock, Texas Mayor Sitton stated the Council would be holding an Executive session, in accordance with the V.T.C.A. Government Code, Section 551.074(a)(1) to discuss personal matters (City Manager and City Secretary); pending or contemplated litigation (Planning Department and Water Utilities); and to deliberate the purchase, exchange, lease, or value of land acquisition (Culture & Leisure Services and Electric Utilities). 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 551.071 to discuss pending or contemplated litigation (Planning Department and Water Utilities). (3.) Hold an executive session, in accordance with V.T.C.A. Government Code, Section 551.072 to deliberate the purchase, exchange, lease, or value of land acquisition (Culture & Leisure Services and Electric Utilities). 9:40 A.M. WORK SESSION CONVENES Committee Room 103 (4.) Discuss regular agenda items (5.) Discuss Community Development Week activities. This item was deleted from the agenda. (6.) Discuss legislative issues. City Council Minutes April 10, 1997 Page 184 10:49 A.M. CITY COUNCIL REGULAR MEETING RECONVENES City Council Chambers Mayor Sitton called the meeting to order at 10:49 A.M. (7•) The Invocation was given by Bishop Sam Hulsey, Episcopal Diocese of Northwest Texas. (g•) Pledge of Allegiance was given in unison by those in the City Council Chambers. BOARD RECOGNITION There were no board recognitions to be made. CITIZEN COMMENTS Shirley Christian, President of the Lubbock Chamber of Commerce, came forward to the microphone. Ms. Christian spoke of the huge success of Lubbock Day in Austin; 450 folks were in attendance including Speaker of the House Pete Laney. Representative Rob Junell, Carol Isett, Delwin Jones, and Senator Robert Duncan. Councilmember Neugebauer noted that he had been advised that the Stubbs Reception was the reception of the year for Austin. Mayor Sitton noted that newspaper articles reflect that citizens are not coming together, but that such folks as Shirley Christian and Chancellor Montford are actively trying to correct the perception. Councilmember Ince noted that he wanted to publicly compliment Congressman Combest and his staff for the excellent support that they provide to our community. Councilmember Nelson presented his top 10 reasons to say yes to Lubbock: LP&L; underground water acquifer; Tony Battie; beneficial bills in Austin; orchestra LSO; cotton ginners; Kalescope; Ya'll Come Back; environmental awareness; and SPAG. Mayor Sitton commented as to her enjoyment with the 1,500 square dancers that came together in Lubbock. CITIZEN APPEARANCES (9.) Presentation of a Proclamation to Doug Goodman, Managing Director of Health and Community Services, declaring April 7- 11, 1997 as Community Development Week. City Council Minutes April 10, 1997 Page 185 Doug Goodman, Managing Director for Health and Community Services, will accept this Proclamation. Since 1975, the Community Development Block Grant Program has operated to provide local governments with the resources required to meet the needs of persons with low to moderate income. These funds are used by thousands of neighborhood based non-profit organizations throughout the nation to address pressing neighborhood and human service needs. The City of Lubbock has demonstrated the capacity to administer and customize the CDBG program to identify and resolve local problems, such as affordable housing, neighborhood and human service needs, and job creation. The CDBG Program has a significant impact on our local economies through job creation and retention, physical redevelopment and improved local tax bases. (10.) Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve the minutes of the March 27, 1997 Regular City Council Meeting as written. Motion carried: 6 Yeas, 0 Nays. (11.) Ordinance No. 9980--Zone Case No. 1893-U (North of 4th Street and west of Frankford Avenue): 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. ORDINANCE NO.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. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass on second and final reading Ordinance No. 9980 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (12.) Ordinance No. 9981--Zone Case No. 2318-B (South of 66th Street and west of Frankford Avenue): 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. 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. 1.I City Council Minutes April 10, 1997 Page 186 Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass on second and final reading Ordinance No. 9981 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (13.) Ordinance No. 9982--Zone Case No. 2790 (West of Fulton Avenue and south of 4th Street): 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. 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. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass on second and final reading Ordinance No. 9982 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (14.) Ordinance No. 9983--Zone Case No. 2791 (South of 90th Street and east of Elgin Avenue): 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. 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. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass on second and final reading Ordinance No. 9983 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (15.) Consider Resolution No. 5454 authorizing the submission to the Texas Natural Resource Conservation Commission (TNRCC) of a permit application to construct and operate a Solid Waste Transfer Station. City Council Minutes April 10, 1997 Page 187 RESOLUTION NO. 5454 WHEREAS, the City of Lubbock deems it necessary and proper to apply for a permit to construct and operate a municipal solid waste landfill transfer station in accordance with Texas Natural Resource Conservation Commission, TAX 30, Chapter 330; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock as the Signatory Agent of the Applicant, or the successor of said Agent, is hereby authorized and directed to make application for the registration of said transfer station and to sign the application as well as any other documents required to complete the project on behalf of the above named applicant. Passed by the City Council this 1 Oth day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Mildred Cox Mildred Cox, Director of Transportation APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney Copies of the Applicant's Statement and Site Development Plan are filed with Resolution 5454. The City of Lubbock's new landfill is located 19 miles north of the existing landfill. An economic analysis has shown that the most cost-effective way of transporting solid waste to the new landfill is through the use of a transfer station. A permit from the TNRCC is required to construct and operate a transfer station. Approval of this resolution would authorize the submission of a permit application. Staff recommended approval. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass Resolution No. 5454 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. 187 City Council Minutes April 10, 1997 Page 188 (16.) Consider an ordinance abandoning and closing a portion of 66th Street and a portion of Genoa Avenue located in Section 29, Block AK, Lubbock County, (6610 Genoa Avenue). ORDINANCE NO.9984 AN ORDINANCE ABANDONING AND CLOSING A PORTION OF 66TH STREET LOCATED IN SECTION 29, BLOCK AK, LUBBOCK COUNTY, TEXAS, AND A PORTION OF GENOA AVENUE LOCATED IN SECTION 29, BLOCK AK, LUBBOCK COUNTY, TEXAS, EACH OF WHICH IS 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. This ordinance abandons and closes a 25,213 square foot portion of Genoa Avenue which runs between 66th Street and 67th Street, west of Frankford Avenue. This avenue is being closed for replat purposes. The proponent of this closure is Truett Craft, the original dedicator of the avenue. According to our closure ordinance, the original dedicator of a street area will not be charged for the street area since they originally dedicated it to the City. This ordinance also closes a 1,893 square foot portion of 66th Street, just west of Frankford Avenue for replat purposes. 66th Street was originally dedicated as an 80-foot wide street. However, 66th is now designated as a 64-foot wide collector street, and staff have 8 feet of excess street dedication on the south side of 66th Street and the north side which is being closed as the properties develop along 66th Street. The proponent of this street area will be charged for this area being closed at $1.00 per square foot taken from adjacent property values. The amount due the City will be 1,893 sq. ft x $1.00 per sq. ft. = $1,893. The Right -of -Way Department recommended the first reading of this ordinance. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass on first reading Ordinance No. 9984 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (17.) Consider Resolution No. 5455 authorizing the Mayor to execute Change Order No. 1 to the contract with Lydick -Hooks Roofing Company of Lubbock, Inc. for the Civic Center roof replacement. RESOLUTION NO. 5455 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 Change Order No. 1 to a contract by and between the City and Lydick -Hooks Roofing Company of Lubbock, Inc. for Civic Center Roof Replacement, Phase II, 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. :: City Council Minutes April 10, 1997 Page 189 Passed by the City Council this 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Carolyn Somma Carolyn Somma, Director of Culture/Leisure Services APPROVED AS TO FORM: /s/ Don Vandiver Don Vandiver, First Assistant City Attorney A copy of Change Order No. 1 is filed with Resolution 5455. During Phase I of the Roof Replacement project, it was discovered that the majority of the deck throughout the structure was deteriorated and needed replacement. This discovery occurred once construction had begun and resulted in a change in the scope of work to replace the deck in the most critical areas during the first phase. Funds were then approved for Phase II to complete the remainder of the roof replacement. Due to the problems encountered with the deck in the majority of the areas during Phase I, the specifications for Phase II included the replacement of all deck in the remaining areas. The specifications also included a unit cost price for deck replacement. This would allow for a deduction in the contract price for any gypsum deck found to be in sound condition with no replacement needed. Phase II of the roof replacement project was awarded to the lowest bidder, Lydick -Hooks Roofing Company of Lubbock, Inc. in the amount of $831,998. The unit price cost for gypsum deck was $3.80 per square foot. This amount would be used to determine a deduction in the contract price when the gypsum deck was not replaced in the specified areas. Once all the roofing materials were removed on the theater roof and the deck exposed, it was determined that 21,124 square feet of gypsum deck did not require replacement. These findings resulted in the submittal of the proposed Change Order No. 1 in the amount of $80,271.20. This reduces the amount of the contract by this amount. The proposed Change Order No. 1 in the amount of $80,217.20 is the result of gypsum deck material not required for replacement during the execution of the Civic Center Roof Replacement Phase II project. This amount will be deducted from the contract price of City Council Minutes April 10, 1997 Page190 $831,998, making the new contract price $751,726.80. Staff recommended that Change Order No. 1 submitted by Lydick - Hooks Roofing Company of Lubbock, Inc. be approved. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass Resolution No. 5455 as recommended by staff. Motion carried: 6 Yeas, 0 Nays (18.) Consider the price and condition of sale of Parcel Numbers 85430-2-17 & 18 at 209-11 Avenue L in the Guadalupe Area. This is a routine sale of property by the Urban Renewal Agency to Spectrum Construction, Inc.; Gary Patton, President, for $800 ($400/per lot). The property is to be redeveloped with a new 1,600 square foot single-family residence valued at $60,000. The land is properly zoned. The proposed sale was approved by the Urban Renewal Board of Commissioners on March 25, 1997. Staff recommended approval of the sale. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to authorize the sale of the parcels as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (19.) Consider Resolution No. 5456 authorizing the Mayor to execute an agreement between the City of Lubbock and Broadway Festivals, Inc. to provide funding from Community Development Block Grant funds for the 4th Corps Youth Program. RESOLUTION NO.5456 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 between the City of Lubbock and Broadway Festivals, Inc. to provide funding from Community Development Block Grant funds for the 4th Corps youth program. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. 190 City Council Minutes April 10, 1997 Page 191 Passed by the City Council this 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Doug Goodman Doug Goodman, Managing Director of Health and Community Services APPROVED AS TO FORM: /s/ Amy L. Whitt Amy L. Whitt, Assistant City Attorney A copy of the Community Development Funding Agreement is filed with Resolution 5456. Funding for this agreement was approved by City Council at the July 11, 1996 City Council meeting. These funds were allocated to Broadway Festivals from the 1996-97 Community Development Block Grant funds in the amount of $10,000. These funds are to be utilized to cover program participation costs for up to twenty low to moderate income youths. The program is a two week training session that gives the participants a chance to learn new job skills, and stresses the importance of a good work ethic, discipline, and pride in one's work. Staff recommended approval. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass Resolution No. 5456 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. 191 City Council Minutes April 10, 1997 Page192 (20.) Consider Resolution No. 5457 authorizing the Mayor to execute an agreement an agreement and all related documents with the South Plains Association of Governments (SPAG) to assist senior citizens. RESOLUTION NO. 5457 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 between South Plains Association of Governments and the City of Lubbock for senior citizen services, and any associated documents, 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 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Carolyn Aliamus Somma Carolyn Aliamus Somma, Director of Culture/Leisure Services APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Senior Citizens Services Contract is filed with Resolution 5457. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass Resolution No. 5457 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (21.) Consider Resolution No. 5458 authorizing the Mayor to execute an agreement and all related documents with the South Plains Association of Governments (SPAG) as related to SPAG's distribution of funds from the United States Department of Agriculture. 192 City Council Minutes April 10, 1997 Page 193 RESOLUTION NO. 5458 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 for Cash Payment in Lieu of Donated Commodities between South Plains Association of Governments and the City of Lubbock, and any associated documents, 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 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Carolyn Aliamus Somma Carolyn Aliamus Somma, Director of Culture/Leisure Services APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Cash Payment Agreement is filed with Resolution 5458. The City of Lubbock has contracted with the South Plains Association of Governments (SPAG) for the past 17 years to provide services for Lubbock's senior citizen population. SPAG serves as the agency that monitors and distributes federal funds from the Texas Department on Aging (TDOA), and the United States Department of Agriculture (USDA). These two resolutions permit the Mayor to execute documents related to the reimbursement of federal funds for the City of Lubbock's senior citizen congregate meal and transportation programs. The City of Lubbock does not provide a direct financial subsidy for the senior citizen congregate meal program. The City of Lubbock Senior Citizen Program targets any citizen 60 years or older and provides a hot meal, transportation, recreation, and social activities. The agreement with SPAG for the 1996-97 Fiscal Year reimburses the City for providing congregate meal and transportation services. In addition to meal and transportation reimbursement, the SPAG grant pays for supplies and 20 hours of 193 City Council Minutes April 10, 1997 Page 194 salary each week for the four part time employees who provide meal service at four of the congregate meal sites. The reimbursement rates are as follows: Meals $1.31 per meal (Texas Department on Aging) $ .58 per meal (USDA) (Hot meals are served five days a week at all six congregate meal sites.) Transportation $1.04 per unit of service (Transportation service is provided at all three full-time senior citizen center sites.) The total estimated revenue to the City of Lubbock from the SPAG grant, based on an estimated 80,000 meals served, is as follows: Texas Department on Aging $105,000 Transportation 13,500 USDA 46,400 164 900 This contract between SPAG and the City of Lubbock is for fiscal year October 1996 through September 1997. The City of Lubbock received the initial draft of the contract from SPAG in December 1996. The City of Lubbock Legal Department reviewed the contract and approved minor changes in the contract's language with staff at SPAG. SPAG has reimbursed the City of Lubbock for senior meal and transportation service during this interim period. Staff recommended the City Council approve these agreements as the funding assists in meeting the needs of Lubbock's senior citizen population and enhances the services offered by the City of Lubbock. Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to pass Resolution No. 5458 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (22.) Bid #97010--Janitorial Paper Supplies - Six Month Pricing (Central Warehouse). Dixon Paper Company of Lubbock, Texas $26,033.29 National Sanitary Supply Company of Lubbock, Texas 7,466.79 Gulf Coast Paper of Lubbock, Texas 4,009.27 Mayfield Paper Company of Lubbock, Texas 48.00 Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. 194 City Council Minutes April 10, 1997 Page 195 (23.) Bid #97015 - Video Camera Monitoring System, and authorize same (Water Reclamation) RESOLUTION NO.5459 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 with Lubbock Audio Visual of Lubbock, Texas, to install and furnish all materials and services as bid for the Video Camera Monitoring System, 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 1 Oth day of April 1997. 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 § /s/ WINDY SITTON WINDY SITTON, MAYOR THIS AGREEMENT, made and entered into this 10th day of April, 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 Lubbock Audio Visual, 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 #97015 - VIDEO CAMERA MONITORING SYSTEM - $29,800.00 195 City Council Minutes April 10, 1997 Page 196 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/ Connie Johnson 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: Lubbock Audio Visual By: /s/ Stan Wagnon PRINTED NAME: Stan Wagnon TITLE: President COMPLETE ADDRESS: Lubbock Audio Visual 2120 Avenue Q Lubbock, Texas 79405 Lubbock Audio Visual of Lubbock, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve Resolution No. 5459 as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (24.) Bid 497023--Refuse & Recycling Containers - Annual Pricing (Solid Waste). Caprock Welding & Supply of Lubbock --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. 196 City Council Minutes April 10, 1997 Page 197 (25.) Bid #97050--Paratransit Vans (Citibus) Lasseter Bus Company, Inc. of Dallas, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (26.) Bid #9705 1 --Refurbishing Sideloading & Frontloading Containers - Annual Pricing (Solid Waste) Caprock Welding & Supply of Lubbock, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (27.) Bid #97053--Ammonia & Chlorinating Facility, and authorize same (Water Utilities Engineering) RESOLUTION NO. 5460 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 with Red River Construction Company, of Plano, Texas, to install and furnish all materials and services as bid for the Ammonia & Chlorinating Facilities at Sandhills Water Well Production, 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 loth day of April 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 197 City Council Minutes April 10, 1997 Page 198 CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 10th day of April, 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 Red River Construction Company, of the City of Plano, County of Collin, 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 #97053 - AMMONIA & CHLORINATING FACILITIES AT SANDHILLS WATER WELL PRODUCTION - $939,900.00 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. 198 City Council Minutes April 10, 1997 Page 199 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: CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton /s/ Kaythie Darnell MAYOR Secretary APPROVED AS TO CONTENT: /s/ Mike Murphy CONTRACTOR: Owner's Representative Red River Construction Company APPROVED AS TO FORM: By: /s/ Dean Porter /s/ Don Vandiver City Attorney PRINTED NAME: Dean Porter TITLE: Chairman ATTEST: COMPLETE ADDRESS: Corporate Secretary Red River Construction Company 1506 Capital Avenue, Suite 200 /s/ Vicki A. M. Porter Plano, Texas 75075 Red River Construction Company of Plano, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve Resolution No. 5460 as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (28•) Bid #97057--Underground Service Cable (Central Warehouse). Techline, Inc. of Amarillo, Texas $153,360 Priester Supply Company, Inc. of Amarillo, Texas 70,896 Wesco Distribution of Amarillo, Texas 65,106 Temple, Inc. of Lubbock, Texas 9,860 Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (29•) Bid #97062--Frankford Avenue & Maxey Park Drainage Improvements, and authorize same (Street Drainage Engineering). RESOLUTION NO 5461 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 with Hub City Pavers, Inc., of Lubbock, Texas, to install and furnish all materials and services as bid for the Frankford Avenue & Maxey Park Drainage Improvements, 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. 199 City Council Minutes April 10, 1997 Page 200 Passed by the City Council this 10th day of April 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 loth day of April, 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 Hub City Pavers, Inc., 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 #97062 - FRANKFORD AVENUE AND MAXEY PARK DRAINAGE IMPROVEMENT - $68,205.75 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. 200 City Council Minutes April 10, 1997 Page 201 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/ Larry D. Hertel Owner's Representative APPROVED AS TO FORM: /s/ Don Vandiver City Attorney ATTEST: Corporate Secretary Diana G. Rodriguez CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton MAYOR CONTRACTOR: Hub City Pavers, Inc. By: /s/ Glen A. Sarten PRINTED NAME: Glen A. Sarten TITLE: President COMPLETE ADDRESS: Hub City Pavers, Inc. 4214 50th Street, Suite B Lubbock, Texas 79413 Hub City Pavers, Inc. of Lubbock, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve Resolution No. 5461 as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (30.) Bid #97074 - ACM Abatement at LP&L Plant #2, and authorize same (Facilities Management). RESOLUTION NO.5462 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 with Vanco Insulation Abatement, Inc., of Midland, Texas, to install and furnish all materials and services as bid for the ACM Abatement at LP&L Plant #2, 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. 201 City Council Minutes April 10, 1997 Page 202 Passed by the City Council this 1 Oth day of April 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 loth day of April, 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 Vanco Insulation Abatement, Inc., of the City of Midland, County of Midland, 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 #97074 - ACM ABATEMENT AT LUBBOCK POWER & LIGHT PLANT #2 - $51,478.00 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 continence 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. 202 City Council Minutes April 10, 1997 Page 203 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/ George Lisenbe Owner's Representative APPROVED AS TO FORM: /s/ Harold Willard City Attorney ATTEST: Corporate Secretary CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton MAYOR CONTRACTOR: Vanco Insulation Abatement, Inc. By: /s/ Coy Crow PRINTED NAME: Coy Crow TITLE: President COMPLETE ADDRESS: Vanco Insulation Abatement, Inc. 5804 So. Fin. Rd. 1788 Midland, Texas 79706 Vanco Insulation Abatement, Inc. of Midland, Texas Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve Resolution No. 5462 as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (31.) Bid #97075--SDR 26 PVC Pipe (Water Utilities). Watermaster Irrigation Supply, Inc. of Lubbock, Texas Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (32•) Bid #97078--80,000 LB GCW Truck Tractor (Fleet Services). Bruckner's Truck Sales, Inc. of Lubbock, Texas --Total Bid Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas; 0 Nays. (33) Bid #97087--LM 2500 Jet Engine Bearings (Electric Production). Stewart & Stevenson Technical Services, Inc. of Houston, Texas -- Total Bid 203 City Council Minutes April 10, 1997 Page 204 Motion was made by Councilmember Patterson, seconded by Councilmember Neugebauer to approve low bids meeting specifications as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (34.) Consider Resolution No. 5463 authorizing the Mayor to execute an agreement with the Texas Department of Transportation regarding the East/West Freeway which clarifies current ownership of the railroad and the percentage of reimbursement of eligible costs for which the State is responsible. RESOLUTION NO. 5463 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 with the Texas Department of Transportation entitled "Second Modification Agreement for the Relocation of a Portion of the Seagraves, Whiteface, and Lubbock Railroad for Construction of a Controlled Access Highway Facility in the City of Lubbock, Texas" which is attached hereto and incorporated herein as if fully set forth, and which shall be included in the minutes of this Council. Passed by the City Council this 1 Oth day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Mildred Cox Mildred Cox, Director of Transportation APPROVED AS TO FORM: /s/ Linda L. Chamales Linda L. Chamales, Supervising Attorney A copy of the Second Modification Agreement is filed with Resolution No. 5463. In January, 1991, the Council approved the execution of "An Agreement for the Relocation of a Portion of the Seagraves, Whiteface and Lubbock Railroad for Construction of a Controlled Access Highway Facility in the City of Lubbock" which sets out the responsibilities of the City and the Texas Department of Transportation in regard to the improvement of a 6.8 mile segment of the East-West Freeway from South Loop 289 (SW) northeast and east to a crossing with Interstate Highway 27, the acquisition 204 City Council Minutes April 10, 1997 Page 205 of a portion of the right of way, and the relocation of related trackage and facilities of the Seagraves, Whiteface, and Lubbock Railroad as part of the construction of the East-West Freeway. At that time the total cost estimate for the relocation was $10,800,000, of which the State was to pay 90 per cent and the City was to pay 10 per cent up to that figure. The agreement was amended in June, 1991, to more definitely provide for reimbursement of eligible costs and to identify who would perform the various actions necessary to effect the relocation. The cap for State reimbursement remained, however, at 90 per cent of the estimated $10,800,000. Current estimates place the probable construction costs in excess of 18 million dollars in spite of attempts by both City and State staffs to find alternatives that would reduce these costs. A State Task Force on this subject has reviewed the alternatives and recommended that the Department of Transportation remove the cap on reimbursement of eligible costs from the City/State agreement so that the State agrees to pay 90 per cent of all eligible costs incurred by the City in effecting the relocation. This recommendation is reflected in the modification of the agreement. Ownership of the railroad has also changed since the 1991 agreements. The railroad formerly owned and operated by the Seagraves, Whiteface, and Lubbock Railroad Corporation is now owned and operated by the West Texas and Lubbock Railroad. This change is also reflected in the "Second Modification Agreement for the Relocation of a Portion of the Seagraves, Whiteface, and Lubbock Railroad for Construction of a Controlled Access Highway Facility in the City of Lubbock, Texas." For the reasons stated above, staff recommended that the City Council approve this resolution authorizing the Mayor to execute the modification agreement. Jim Bertram, staff, presented information for the East-West Freeway project. Councilmember Neugebauer questioned the matching funds from the City of Lubbock. Bertram answered that the City had set the dollars aside in the reserves. Bertram estimated over 10 years, $8,000,000.00. Mayor Sitton ask the date that this project started. Bertram responded 1989. Motion was made by Councilmember Nelson, seconded by Councilmember Patterson to pass Resolution No. 5463 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (35.) Consider Resolution No. 5464 authorizing the Mayor to execute a Parking Concession Agreement with APCOA, Inc. to operate the parking lot at the airport. 205 City Council Minutes April 10, 1997 Page 206 RESOLUTION NO.5464 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 Parking Concession Agreement with APCOA, Inc., attached hereto and which Agreement 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 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Mark N. Earle Mark N. Earle, Director of Aviation APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Automobile Parking Concession Contract is filed with Resolution 5464. Last year, the Department of Aviation evaluated the efficiency of the commercial parking lot operation at Lubbock International Airport. A comparison to similar operations at other airports showed that LIA's parking lot generates far less revenue per enplaned passenger than most, and delivers a lower -than -average level of service to the airport's parking customer. As a part of the evaluation, the potential benefits of subcontracting the operation to a private sector company were studied. A test was devised to estimate the revenue stream that would have been generated during the past two years under such an arrangement. Because of market similarities and an almost identical parking fee structure, a private sector management contract currently in place at the Amarillo airport was used as a benchmark. The test revealed that a private sector management scenario at LIA in 1995 and 1996 would have produced net revenue levels at least 15 percent higher than what was actually realized in those periods. Further, the study showed that a private sector management scenario would have resulted in lower overhead and personnel costs, and thus would have allowed for the provision of a higher level of customer service. The study clearly demonstrated the need for change. 1: City Council Minutes April 10, 1997 Page 207 The RFP Process In February, a request for proposals for the parking operation was issued. To ensure that all respondents were competing on an even basis, a contract detailing the terms of the agreement and the expected level of service was attached to and made a part of the RFP (see Exhibit 1). The agreement specified a five year initial term with a five year option subject to the approval of both parties. Capital maintenance and O&M responsibilities were established in accordance with industry standards and were incorporated into the contract. Also included were specific performance measures for customer service such as a limitations on waiting times at the toll plazas and minimum coverage requirements for the shuttle operation. Five companies responded, each of them with experience and a nation-wide presence in the parking industry. The companies were asked to propose a fee structure that would require them to pay a minimum annual guarantee fee or a percentage of gross revenues, whichever is greater, in each of the five years of the initial term of the contract. The proposed minimums and percentage fees for each company are shown in Exhibit 2. A staff RFP review committee concluded that, from a financial standpoint, the APCOA proposal would be the most advantageous for the City. APCOA's proposed minimum annual guarantee and percentage fees far exceed those offered in the other proposals. The total dollar value of APCOA's proposal for the initial five year term of the agreement topped the nearest competitor's offer by $1,309,000 (see Exhibit 2). In the first year alone, the APCOA agreement would generate 19 percent more income than was generated in the previous year by the current parking operation (1996 net revenue of $1,008,833 vs. APCOA's $1,200,000 minimum guarantee). In addition to financial considerations, the review committee evaluated other factors such as the experience level of the proposer, the company's financial strength, and its commitment to customer service. The committee unanimously concluded that APCOA was the best qualified in these areas as well. Based on the proposed revenue to the City and the company's outstanding qualifications, the review committee unanimously recommended awarding the contract for the airport parking operation to APCOA. The Airport Board concurs with the staff s findings and also recommended approval of the agreement. David Jones, staff, presented information in the private contract for the parking at Lubbock International Airport. Motion was made by Councilmember Nelson, seconded by T Councilmember Patterson to pass Resolution No. 5464 as recommended by staff. Motion carried: 5 Yeas, 0 Nays. Councilmember Ince stepped away from the dais. 207 City Council Minutes April 10, 1997 Page 208 (36.) Consider Resolution No. 5465 authorizing the Mayor to execute a contract with Lubbock Arts Alliance for an economic impact study. RESOLUTION NO. 5465 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 Cooperative Agreement, attached herewith, by and between the City of Lubbock and Lubbock Arts Alliance, Inc., and any associated documents, which Agreement 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 1 Oth day of April 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. Fortd, First Assistant City Manager APPROVED AS TO FORM: /s/ City Attorney A copy of the Cooperative Agreement is filed with Resolution 5465. Lubbock Arts Alliance is requesting funds in the amount of $1,850 to conduct an economic impact study. The economic impact study would survey the level of impact that the arts and related organizations, businesses, and programs are having on the Lubbock economy. Cost for the economic impact study is estimated to be $3,700. Request from the City of Lubbock is $1,850. The funding source is hotel/motel taxes. Staff recommended that the City of Lubbock provide funding to the Lubbock Arts Alliance to conduct an economic impact study to find the level of impact that the arts are having on the Lubbock economy. Chris Wallace presented information for the Arts Festival. City Council Minutes April 10, 1997 Page 209 Motion was made by Councilmember Patterson, seconded by Councilmember Hernandez to pass Resolution No. 5465 as recommended by staff. Motion carried: 6 Yeas, 0 Nays (36A.) Consider Resolution No. 5466 establishing City of Lubbock position on potential electric utility deregulation. RESOLUTION NO. 5466 WHEREAS, the Legislature is considering legislation to deregulate the electric utility industry in Texas; and WHEREAS, the City of Lubbock owns and operates its own electric utility system, Lubbock Power & Light; and WHEREAS, Lubbock Power & Light serves over 61 per cent of the electric customers within the City of Lubbock in an already competitive environment; and WHEREAS, the City Council of the City of Lubbock should maintain local control over electrical utility services provided to the citizens of the City of Lubbock to ensure fair treatment of consumers; preservation of the quality, cost and reliability of electrical service; and protection of the investment of Lubbock's citizens in a home owned electric utility; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock, Texas, and the Electric Utility Board of the City of Lubbock, Texas, hereby urge the Legislature of the State of Texas to ensure that any legislation to deregulate the retail electric utility industry recognize that several municipalities own and operate electric utility systems in direct competition with investor owned electric utilities and electric cooperatives; and THAT electric services in and for such municipalities are locally controlled, electric rates and policies are set by city councils and local citizen utility boards; and THAT the City of Lubbock should to maintain local control over electric utility services provided to citizens of the City of Lubbock to ensure fair treatment of consumers, preservation of the quality, cost and reliability of electrical service and protection of the investment of the citizens of the City of Lubbock in a home owned utility; and THAT the ability of municipally owned utilities to compete in a deregulated market not be unduly hampered or restricted to preserve the benefits of many years of direct competition for those citizens; and issues of importance to the City of Lubbock include the following: 1) Local Control of Market Participation. Any retail deregulation legislation must preserve the current powers of the cities to set electric rates and establish electric utility policies. 2) Freeze/Reductions. Municipalities with home owned utilities already enjoy some of the lowest rates in the State of Texas and the nation, in Lubbock, Texas, it is not necessary to "freeze/reduce" such rates as they are already the result of direct competition for customers. 209 City Council Minutes April 10, 1997 Page 210 3) Local Control. In addition to the benefits of competition, municipalities are the most sensitive level of government to the matters that are most important to citizen owners/consumers. Decisions affecting local retail sales, rates and utility operations, including, but not limited to planning, dispute resolution, and customer service functions (billing, metering, collections) should remain under local control. Any legislation that preserves "de novo" appeals to the PUC of all local decisions in effect totally nullifies local decision making and eliminates local control. 4) Wholesale Market Access. Municipal utilities must continue to be allowed to fully participate in the wholesale market for electricity, including power purchases, sales and marketing. 5) Local Control of Transition to Retail Competition. All transition issues should be addressed locally through non-discriminatory processes. In addition to timing, those issues may include the organizational structures of municipal electric utilities. No structural "unbundling" or divestiture should be required. 6) Full Recovery of Stranded Investment. Municipally owned electric systems must be able to fully recover the investments they have made to serve their citizens/owners. In addition to stranded investment, local authorities should continue to have the ability to recover and be compensated for other costs, and to recover sufficient revenue to provide a return to the city. 7) No Abrogation of Existing Contracts. Existing wholesale and retail power contracts should remain valid for the term of the contract. 8) Freeze Existing Service Territories. The existing state certified electric service areas of utilities should remain in their current configuration except that citizen owned municipal utilities should be allowed to follow the boundaries of the municipality so that no citizens of the municipality are denied the benefits of direct electric competition by the utility that they own and operate. 9) Preserve Franchise Rights. The rights of municipalities to control public rights of way and to collect reasonable compensation for its use must be preserved so that the costs of such usage do not have to be borne by the ad valorem tax payers as opposed to the utility customers. 10) Removing Barriers to Municipal Competitiveness. In either the wholesale or the retail market, certain statutes applicable to local governments are very adverse to the competitive situation of municipally owned utilities. In particular, some open records, open meetings, and bid requirements place muncipally owned utilities at a tremendous disadvantage in competing with private utilities. 11) Tax Exemption. Current municipal exemptions from state and local taxes should be maintained. 210 City Council Minutes April 10, 1997 Page 211 Passed by the City Council this 10th day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Bob Cass Bob Cass, City Manager APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney Local Control of Market Participation: Any retail deregulation legislation must preserve the current powers of cities to set electric rates and establish electric utility policies. There is a great diversity among municipally - owned electric utilities in terms of size and operations. Each city needs the ability to decide how to best move toward retail competition given its own circumstances. These decisions will be made by duly elected or appointed local officials through open local public processes. Additional PUC regulation of municipally -owned electric utilities in a "deregulated" environment would be unnecessary, costly, and would duplicate the local regulatory process. Major retail deregulation bills enacted in other states have exempted public power systems from PUC regulation. In Texas, local authorities must be allowed to continue to exercise their existing authority to determine how and when their city - owned electric systems participate in the retail electric market. Specifically: Local choice on timing Local choice on rate "freeze/reductions" Local control of retail market participation, rates and operations Wholesale market access Local control of transition to retail competition Full recovery of stranded investment No abrogation of existing contracts Freeze existing service territories Preserve franchise rights Remove barriers to municipal competitiveness Staff believes that it is now time to more precisely clarify the City's position on electric utility deregulation. Staff recommended approval of this resolution. 211 City Council Minutes April 10, 1997 Page 212 Motion was made by Councilmember Ince, seconded by Councilmember Nelson to pass Resolution No. 5466 as recommended by staff. Motion carried 6 Yeas, 0 Nays. (37.) Consider Resolution No. 5467 authorizing the Mayor to execute an industrial tax abatement agreement with Purina Mills, Inc. RESOLUTION NO. 5467 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 and all related documents by and between the City of Lubbock and Purina Mills, Inc., 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 1 Oth day of April 1997. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Debra S. Forte Debra S. Forte, First Assistant City Manager APPROVED AS TO FORM: /s/ Harold Willard Harold Willard, Assistant City Attorney A copy of the Tax Abatement Agreement is filed with Resolution 5467. Staff have 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. 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 212 City Council Minutes April 10, 1997 Page 213 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: 3,715,841 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 Construction impact: Actual construction: 6,500,000 Impact of construction: 15,044,250 Utility Usage: Approx. annual cost: 253,545 Approx. increase in cost with expansion: 49,931 Cost/Benefit: The benefits far exceed the cost. 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 costibenefit 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. 213 City Council Minutes April 10, 1997 Page 214 Debra Forth, staff, presented information as to the Notice of Intent. Anita Burgess stated that the resolution took a simple majority vote. Motion was made by Councilmember Patterson, seconded by Councilmember Hernandez to pass Resolution No. 5467 as recommended by staff. Motion carried: 5 Yeas, 1 Nay. Councilmember Nelson voted Nay. 11:35 A.M. Council reconvened to executive session 1:39 P.M. There being no further business to come before the Council, Councilmember Neugebauer made a motion to adjourn, Councilmember Nelson seconded the motion: 6 Yeas; 0 Nays. MR .� g ►� • ' ATTEST: /�� Kay Ye Darnell, City Secretary Read and approved this 90/V of Lntl 4,17. DY SITT AYOR ATTEST: Kayt I Damell, City Secretary 214