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HomeMy WebLinkAboutMinutes - City Council - Special - 7/27/1999CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING July 27, 1999 10:00 A. M. The City Council of the City of Lubbock met in special session on the 27th day of July, 1999, in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 10:00 A. M. 10:01 A. M. COUNCIL CONVENED City Council Chambers, 1625 13th Street, Lubbock, Texas Present: Mayor Windy Sitton, Mayor Pro Tem Max Ince, Councilmember Victor Hernandez, Councilmember David Nelson, Councilmember T. J. Patterson; Bob Cass, City Manager; Anita Burgess, City Attorney; Kaythie Darnell, City Secretary Councilmember Marc McDougal was present via videoconference through CDS Computers, Branson, Missouri. Absent: Councilmember Alex "Ty" Cooke ( 1.) Invocation was given by Councilmember David Nelson. (2.) Pledge of Allegiance was given in unison by those present in the City Council Chambers. ( 3.) Presentation of Honorary Citizenship Certificates to Korean college students visiting Lubbock Christian University as part of the "American Democracy Bell Program." This item was deleted. (4.) Resolution No. 6423 authorizing the Mayor to execute Addendum No. 4 to Airline Lease Agreement between the City of Lubbock and Southwest Airlines Co. RESOLUTION NO. 6423 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 Addendum No. 4 to an Airline Lease Agreement, by and between the City of Lubbock and Southwest Airlines Company. 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. Special City Council Meeting July 27, 1999 Page 20 Passed by City Council this 27th day of July, 1999. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Mark Earle Mark Earle, Director of Aviation APPROVED AS TO FORM: /s/ Amy L. Sims Amy L. Sims, Assistant City Attorney A copy of Addendum No. 4 is filed with Resolution No. 6423. This amendment to the Southwest Airlines lease adds 596 square feet to their exclusive space. The additional space is necessary to accommodate their proposed remodeling project. Southwest proposes to remodel their office space behind the ticket counter, the office area behind the cargo counter downstairs, and will relocate the operations personnel to another set of offices on the ramp level. The additional space will produce an additional $8,117 annually in rent. The Airport Board and staff recommended approval. Motion was made by Councilmember Patterson, seconded by Councilmember Nelson to pass Resolution No. 6423 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (5.) Resolution No. 6424 authorizing the Mayor to execute a commercial tax abatement agreement with M.D.M. Investments, Inc. RESOLUTION NO. 6424 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 M.D.M. Investments, 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. 20 Special City Council Meeting July 27, 1999 Page 21 Passed by City Council this 27th day of July, 1999. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Kevin Walker Kevin Walker, Business Liaison Officer APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, First Assistant City Attorney A copy of the Agreement is filed with Resolution No. 6424. Staff has received a request from M.D.M. Investments, Inc. for commercial tax abatement in the North Enterprise Zone. M.D.M. Investments, Inc. intends to renovate the existing building located at 1206 14th Street of the original town of Lubbock. M.D.M. Investments, Inc. plans to expend approximately $4,270,000 in building related structural improvements and equipment on the project (Omni Office Centre). The recommended abatement term is five years with a declining percentage schedule beginning at 100 % and declining 20 % in each subsequent year of the abatement. The abatement amount for the City of Lubbock is: Year 1 100 % $24, 766 Year 2 80 % 19,813 Year 3 60 % 14,860 Year 4 40 % 9,906 Year 5 20 % 4,953 The total city abatement over the life of the contract is $74,298. The total county abatement over the life of the contract is $36,533. The expenditure of $4,270,000 exceeds the $250,000 minimum investment criteria set forth in Section IV(10)(a) of the Guidelines and Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones in the City of Lubbock adopted by the City through Resolution No. 5680. The project is estimated to add $4.27 million in new value to the tax base in the North Enterprise Zone and Lubbock's central business district. Under the current guidelines, M.D.M. Investments, Inc. is eligible and meets all the criteria for tax abatement. 21 Special City Council Meeting July 27, 1999 Page 22 The City Council approved the Notice of Intent Resolution at the City Council meeting on June 24, 1999. Staff concurred with Market Lubbock, Inc. for approval of the tax abatement for a term of five years with a declining schedule beginning with 100% and declining by 20% each year. Motion was made by Councilmember Nelson, seconded by Councilmember Patterson to pass Resolution No. 6424 as recommended by staff. Motion carried: 5 Yeas, 1 Nay. Councilmember Ince voted Nay. ( 6.) Resolution No. 6425Bid #99155—Above Ground Steel Pipe Coating (Water Utilities) RESOLUTION NO. 6425 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 above ground steel pipe coating, by and between the City of Lubbock and Arrow Construction Company, Inc. of Snyder, Texas, and related documents. Said contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by City Council this 27th day of July, 1999. /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/ William de Haas William de Haas, Competition and Contracts Manager/Attorney CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 27th day of July, 1999, 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 Arrow Construction Co., Inc., of the City of Snyder, County of Scurry, and the State of Texas, herein termed CONTRACTOR. 22 Special City Council Meeting July 27, 1999 Page 23 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 #99155 - ABOVE GROUND STEEL PIPE COATING - $64,294.12 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/ Ches Carthel Owner's Representative APPROVED AS TO FORM: /s/ William de Haas City Attorney ATTEST: Corporate Secretary /s/ Tammi Lyle CITY OF LUBBOCK, TEXAS (OWNER) /s/ Windy Sitton MAYOR CONTRACTOR: Arrow Construction Co., Inc. By: /s/ Rickey C. Daniell PRINTED NAME: Rickey C. Daniell TITLE: President COMPLETE ADDRESS: Arrow Construction Co., Inc. P. O. Box 576 Snyder, Texas 79550-0576 This project involves the removal of lead -based paint and re -coating of two above ground steel sanitary sewer lines at the Southeast Water Reclamation Plant. This work is required by the Texas Natural Resources and Conservation Commission. The Sewer Fund Capital Projects Plant Repairs budget amount is $70,000. The low bid is $64,294.12 from Arrow Construction Co., Inc. of Snyder, Texas. 23 Special City Council Meeting July 27, 1999 Page 24 Staff recommended award of this bid to Arrow Construction Co., Inc. Motion was made by Councilmember Nelson, seconded by Councilmember Patterson to pass Resolution No. 6425 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. ( 7.) Resolution No. 6426 - Discuss proposed tax rates for Fiscal Year 1999-2000 budget and take appropriate action. RESOLUTION NO. 6426 WHEREAS, Section 26.05(d) of the Tax Code of the State of Texas requires notice of a proposed increase in property tax revenue, even if the property tax rate remains the same; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the tax rate for FY 1999-2000 is proposed at the same rate as last year, which is at fifty eight cents (58G) per $100 valuation, which amount will result in a tax revenue increase because of new construction and re-evaluation of property by the tax appraisal district; and THAT a public hearing be held on the proposed tax rate and that notice be published of the date, time, and place of the hearing, and providing information about the proposed tax rate at least seven (7) days before the public hearing. Passed by the City Council of the City of Lubbock, Texas, on this 27th day of July, 1999, by the following vote: For the Proposal: Against the Proposal: Mayor Windy Sitton Mayor Pro Tern Max Ince Councilmember Victor Hernandez Councilmember Marc McDougal Councilmember David Nelson Councilmember T. J. Patterson Council Members present but not voting: None Council Members absent: Councilmember Alex "Ty" Cooke 24 Special City Council Meeting July 27, 1999 Page 25 /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Anna Mosqueda Anna Mosqueda, Director of Management Services APPROVED AS TO FORM: /s/ Linda L. Chamales Linda L. Chamales, Supervising Attorney, Office Practice At its budget review meetings the week of June 30, the City Council discussed the proposed budget and the proposed tax rate that would be necessary to fund both the debt and maintenance and operations requirements for the General Fund. As a result of changes made two legislative sessions ago as part of the school finance tax reform, the process for adopting a tax rate has changed. Changes were made in the recently completed session that will give cities back the 3 % window. However, those changes will not impact us until the 2000-2001 budget process. In past years municipalities had the latitude to adopt and levy a tax rate of up to 3 % above the effective rate (that rate which will generate the same amount of revenue from the same property on the tax rolls the prior year) without requiring publication of notices and a separate hearing to announce a tax increase. This allowed municipalities a modest growth of up to 3 % over the effective rate in order to offset some of the increased cost of services and delivery of additional services in a growing community. The state law now requires that notices be published and an additional public hearing be held (in addition to the regular public hearing on the budget) for any increase in revenue over the prior year; regardless of whether the increase is a result of revaluation or new improvements. Truth -in -taxation laws very strictly regulate the calculation and timetable for the adoption of a tax rate as well as the form for the published notices. Copies of the required notices that were published last year were included in agenda backup. The rate of 58 cents per $100 valuation proposed for the Fiscal Year 1999-2000 budget, although the same rate as adopted last year, will raise more property tax revenues. Staff did not receive the final certified tax roll from the Chief Appraiser until July 22, therefore the new certified value and final effective and rollback calculations were not computed until the certified roll was received. The information was calculated and distributed to Council for their review on Monday, July 26. 25 Special City Council Meeting July 27, 1999 Page 26 The remainder of the notice and hearing process is outlined below: July 27: Discuss, then vote to propose a tax increase. Council action required: • Official vote by the Council of its intent to place a proposal to adopt a tax rate of 58 cents per $100 valuation on the agenda of a future meeting as an action item. (Proposed rate must be specified; cannot vote to adopt a proposal to increase taxes by an unspecified amount.) • Record vote. • If motion passes, schedule a public hearing for August 12 at 5:00 p. in. for public input on proposed tax rate of 58 cents per $100 valuation. July 29 and August 1: Publish notice of budget public hearing (classified section - routine). August 3: Publish first '/a page ad "Notice of Public Hearing on Tax Increase" (size and wording prescribed by state law). Last year's copy included in agenda backup. August 4: Chief Appraiser publishes effective/rollback rates for taxing entities (routine process). August 12: • 5:00 p. m. - Public Hearing on proposal to increase tax revenues. Quorum of Council is required. Council cannot adopt tax rate at this hearing. Instead, at the end of the hearing it must set and announce date, time, and place at which it will hold a public meeting to adopt and levy the tax rate. This date is currently planned as the second regular Council meeting in August: August 26 at 10:30 a. in. at City Hall, 1625 13th Street. • 5:30 p. m. - Public Hearing on Budget • First reading of Budget Ordinance • First Reading of Tax Rate Ordinance • First reading of any rate change ordinances August 17: Publish second '/a page ad "Notice of Vote on Tax Rate". Must be published before meeting to adopt and levy tax rate. August 26: At its regular Council meeting, second reading of ordinances to adopt budget, adopt and levy tax rate, and adopt any rate change ordinances. After adoption, a copy of the final budget is filed with City Secretary and County Clerk's Office. Staff recommended timeline and proposed rate as outlined above. W Special City Council Meeting July 27, 1999 Page 27 Motion was made by Councilmember Ince, seconded by Councilmember Patterson to pass Resolution No. 6426 with the following amendment as proposed by Councilmember Nelson: "That the tax rate for FY 1999- 2000 is proposed at the same rate as last year, which is fifty-eight cents (58C) per $100 valuation..." which was accepted by Council. Motion carried: 6 Yeas, 0 Nays. (8.) Resolution No. 6427 - Discuss and set date for public hearing on proposed tax rate for Fiscal Year 1999-2000 budget and take appropriate action. RESOLUTION NO. 6427 WHEREAS, the City Council of the City of Lubbock desires to place a proposal to adopt a property tax rate that will result in additional revenue as outlined in Section 26.05(d) of the Tax Code of the State of Texas on the agenda of a future meeting as an action item and schedule a public hearing; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT a public hearing shall be held on August 12, 1999, at 5:00 p. in. in Council Chambers, 1625 13th Street, Lubbock, Texas; and THAT notice be published of the date, time, and place of the hearing, and providing information about the proposed tax rate at least seven (7) days before the public hearing. Passed by City Council this 27th day of July, 1999. /s/ WINDY SITTON WINDY SITTON, MAYOR ATTEST: /s/ Kaythie Darnell Kaythie Darnell, City Secretary APPROVED AS TO CONTENT: /s/ Anna Mosqueda Anna Mosqueda, Director of Management Services APPROVED AS TO FORM: /s/ Linda L. Chamales Linda L. Chamales, Supervising Attorney, Office Practice As outlined in agenda comments (above) for tax rate discussion, after the Council votes to place a proposal to adopt a tax rate of 58 cents per $100 valuation that will result in an increase of tax revenues, that vote must be recorded. Upon passage, a public hearing must be scheduled to allow public input on the proposed rate. 27 Special City Council Meeting July 27, 1999 Page 28 The public hearing on the tax increase is scheduled for the first regular Council meeting in August: August 12. This is the same day as the budget public hearing. Staff recommended both of these be scheduled at an evening meeting consistent with budget public hearing held in prior years to provide opportunity for citizen input. Staff recommended August 12 at 5:00 p. in. be set for the public hearing to hear taxpayer input on proposed rate. Motion was made by Councilmember Patterson, seconded by Councilmember Nelson to pass Resolution No. 6427 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. EXECUTIVE SESSION Mayor Sitton stated the Council would hold an executive session in accordance with the V.T.C.A. Government Code, Section 551.071(1)(A) to discuss pending or contemplated litigation (Aviation; Information Technology; Parks Department; Planning Department; Police Department; Streets Department.) 10:23 A. M. CITY COUNCIL RECESSED TO EXECUTIVE SESSION City Attorney Conference Room 205B ( 9.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.071(1)(A) to discuss pending or contemplated litigation (Aviation; Information Technology; Parks Department; Planning Department; Police Department; Streets Department). 10:56 A. M. COUNCIL RECONVENED 10:56 P. M. COUNCIL ADJOURNED There being no further business to come before Council, Councilmember Nelson made a motion to adjourn; Councilmember Patterson seconded the motion. Motion carried: 3 Yeas, 0 Nays, with the following members present at adjournment: Mayor Sitton and Councilmembers Nelson and Patterson. WINDY SITTO MXY0k ATTEST: I wtuu Kay t Darnell, City Secretary Read and approved this OIt day of, 1999 WIN Y SITTO MA OR ATTEST: )(a KayKiiA Darnell, City Secretary