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HomeMy WebLinkAboutMinutes - City Council - Regular - 7/8/1998CITY OF LUBBOCK REGULAR CITY COUNCIL MEETING July 8, 1998 8:00 A. M. The City Council of the City of Lubbock, Texas met in regular session on the 8th day of July, 1998, in Committee Room 103, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 8:00 A. M. 8:04 A. M. CITY COUNCIL CONVENED Committee Room 103, 1625 13th Street, Lubbock, Texas Present: Mayor Windy Sitton, Councilmember Alex "Ty" Cooke, Councilmember Victor Hernandez, Councilmember Marc McDougal, Councilmember David Nelson, Councilmember T. J. Patterson; Bob Cass, City Manager; Anita Burgess, City Attorney; and Kaythie Darnell, City Secretary Absent: Mayor Pro Tern Max Ince ( 1.) Invocation was given by Bob Cass, City Manager. (2.) Pledge of Allegiance was given by those present. Items No. 5 and 6 were considered immediately following the pledge. (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: Economic Development Task Force The executive session was not held. ( 5.) Consider one appointment to Economic Development Task Force. Motion was made by Councilmember Nelson, seconded by Councilmember McDougal to appoint Jim Gilbreath to the Economic Development Task Force. Motion carried: 6 Yeas, 0 Nays. (6.) Consider Resolution No. 5949 authorizing the Mayor to sign an Addendum to Gas Supply Contract between the Texas Municipal Gas Corporation and the City of Lubbock. RESOLUTION NO. 5949 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 Addendum to Gas Supply Contract by and between the City of Lubbock, L G & E Energy Marketing Inc. and Coral Energy Resources, L.P., 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. Regular City Council Meeting July 8, 1998 Page 2 Passed by City Council this 8th day of July, 1998. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Paul Thompson Paul Thompson, Managing Director of Electric Utilities APPROVED AS TO FORM: /s/ Richard K. Casner Richard K. Casner, Natural Resources Attorney A copy of the Addendum to Gas Supply Contract is filed with Resolution No. 5949. The City of Lubbock approved a Joint Gas Purchase Contract with the Texas Municipal Gas Corporation (TMGC) effective as of February 1, 1998. That contract gave Lubbock Power and Light the option of receiving a discount on gas purchased from our normal gas suppliers. Discounts of 10% are expected (approximately $2,000,000 per year). One of the mechanisms needed to achieve these discounts was a series of gas exchanges between LP&L, TMGC (through Coral), and LG&E (our primary gas supplier). TMGC has contracted with Coral Energy Resources to coordinate the gas exchanges. The referenced addendum provides the mechanism needed to implement the actual gas exchanges. This addendum was needed by TMGC to complete the exchanges and allow the project to proceed. No savings will occur until the TMGC project is completed. Approval of this addendum as soon as possible was necessary to keep the project on schedule and start gas savings before next fiscal year. A copy of the slide showing the gas exchanges was included in Council backup. Staff recommended that the City Council approve the recommended addendum. Motion was made by Councilmember Cooke, seconded by Councilmember McDougal to pass Resolution No. 5949 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. 9:50 A. M. COUNCIL RECESSED 10:27 A. M. COUNCIL RECONVENED ( 3.) Review of the Proposed FY 1998-99 Annual Budget and Capital Projects Budget for the City of Lubbock. Mayor Sitton noted that, depending on how the day went, there could be discussion to cancel Friday's meeting. If Friday's meeting is cancelled, the second meeting in July will be scheduled for July 30th. 2 Regular City Council Meeting July 8, 1998 Page 3 Bob Cass, City Manager, noted that $0.03 of the property tax would be reserved for economic development. Should the City not need the above reserves, the dollars would be transferred to Market Lubbock, Inc. for specific projects for economic development. The dollars cannot be utilized for overhead costs. Mayor Sitton asked when the last tax increase occurred; Cass stated 1987. Mayor Sitton asked what the cost would be for an additional 1 % increase for the _ fire department. Anna Mosqueda stated $103,000. Cass responded by stating that the 1 % increase would take the increase to a 5 % increase. Also, the police department is a 4 % increase with an additional 4 % increase as opposed to an 8 % overall increase. Councilmember Cooke stated that the 1 % would appear to be somewhat like a bonus and, the City does a good job at keeping the jobs competitive. For this reason, he has a little bit of a problem with an additional 1 % right now, when salaries in the fire department appear to be competitive. Mayor Sitton asked if there was adequate funding for the Trade Corridor Project. Cass responded in the affirmative. Anna Mosqueda, Director of Financial Services, made the budget presentation. 11:45 A. M. COUNCIL RECESSED FOR LUNCH 1:10 P. M. COUNCIL RECONVENED Councilmember Hernandez was not present when Council reconvened. Budget presentations by: Anita Burgess, City Attorney Kaythie Darnell, City Secretary Robert Doty, Municipal Court Judge Mayor Sitton stated that the consensus of the Council was for Bob Cass, City Manager, to file a copy of the proposed 1998-99 budget with the City Secretary's Department. Motion was made by Councilmember McDougal, seconded by Councilmember Patterson to file the proposed budget. Motion carried: 5 Yeas, 0 Nays. The Friday meeting will be cancelled, and the second meeting in July will be July 30th. c Regular City Council Meeting July 8, 1998 Page 4 ATTEST: , City Secretary C WINDY SIT N, MAYOR Read and approved this o?�1� day of , 1998. ATTEST: , City Secretary el Y SITTON, MAYOR El