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HomeMy WebLinkAboutMinutes - City Council - Special - 4/9/2003CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING APRIL 9, 2003 8:45 A. M. The City Council of the City of Lubbock, Texas met in special session on the 9th day of April, 2003, in Committee Room 103, City Hall, 1625 13th Street, Lubbock, Texas at 8:45 A. M. 9:00 A. M. CITY COUNCIL CONVENED Committee Room 103 Present: Mayor Marc McDougal, Mayor Pro Tem Victor Hernandez, Council Member Tom Martin, Council Member Frank W. Morrison, Council Member T.J. Patterson Absent: Council Members Boren and Cooke Mayor McDougal called the meeting to order at 9:00 A. M. Invocation by Senior Council Member T. J. Patterson. ( 1.) Accept the Certification of Unopposed Candidate for the May 3, 2003 Special City Election to fill the position of City Council, District 6. Only one candidate (Jim Gilbreath) filed an application for the office of City Council, District 6. Mr. Gilbreath was unopposed. This included being unopposed by any write-in candidates. The City Secretary, as the person responsible for preparing the election ballot, is required by statute to make the certification to the City Council that the candidate for office is unopposed. The City Secretary further certified that no proposition is to appear on the ballot at the election and no person has made a declaration of write-in candidacy. The deadline to file as a write-in candidate was April 7, 2003 by 5:00 p.m. Motion was made by Council Member Martin, seconded by Council Member Patterson to accept the certification of unopposed candidate for the May 3, 2003 Special City Election to fill the position of City Council, District 6 as recommended by staff. Motion carried: 5 Yeas, 0 Nays. (2.) Ordinance No. 2003-00027 canceling the May 3, 2003 Special City Election, and declaring the unopposed candidate elected to the office of City Council, District 6 (first reading). ORDINANCE NO.2003-00027 AN ORDINANCE DECLARING THE UNOPPOSED CANDIDATE IN THE MAY 3, 2003, SPECIAL CITY ELECTION TO FILL A VACANCY IN CITY COUNCIL DISTRICT NO. 6 TO BE ELECTED TO OFFICE; CANCELING THE ELECTION; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Only one candidate (Jim Gilbreath) filed an application for the office of City Council, District 6. Mr. Gilbreath was unopposed. This included being unopposed by any write-in candidates. The deadline to declare and file as a write-in was April 7, 2003 by 5:00 p.m. In addition, no proposition was to appear on the ballot. After receiving the certification of unopposed candidate from the City Secretary, the City Council, by ordinance, declared the unopposed candidate elected to office and the election cancelled. Council Member Boren arrived. Motion was made by Council Member Patterson, seconded by Council Member Martin to pass on first reading Ordinance No. 2003-00027 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Special City Council Meeting April 9, 2003 Page 312 9:05 A. M. CITY COUNCIL WORK SESSION CONVENED Committee Room 103 All council members were present, except Council Member Cooke. Mayor McDougal and Council Member Patterson recognized members of Delta Sigma Theta Sorority attending this work session. (3.) Presentation of the Monthly Financial Reports for the Month Ending February 2003 by Beverly Hodges, Managing Director of Financial Services, and Melissa Trevino, Budget Manager. Pursuant to a City Council request, the Financial Reports for the Month Ending February 2003 are scheduled monthly. This information included the following: 1. Financial Analysis — Analysis provided in narrative form by Fund. 2. Financial Summary a. Balance Sheet; Statement of Revenue, Expenditures and Changes in Fund Balance; Summary of Cash Balances; and Monthly Financial Summary Reports for: • General Fund • Airport Fund • Sewer Fund • Solid Waste Fund • Storm Drainage Fund • Water Fund b. Capital Projects Summary by Fund (all funds). 3. Economic Analysis — Includes Lubbock International Airport Enplanements Summary and Building Inspection Statistical Report 4. Investment Report — Investment Summary for the month of February 2003. Staff was prepared to address questions. Council Member Morrison requested that a third bar be put on the graph to show a five-year average on expenditures year-to-date, rather than one year versus another. Council Member Boren asked Interim City Manager Tommy Gonzalez to check on the $2m negative golf fund. He asked how the debt happened and why it is still there? He also asked Mr. Gonzalez to check and see where this shows up on the audits. Mr. Gonzalez summarized the issue stating that the golf fund was losing money and when the City closed the golf fund out and privatized it, there was a negative. Staff will reconcile the account and close it out. Council Member Martin stated he would like to see a history of when this debt started and how much of the debt has been paid. Council Member Patterson suggested looking at all funds and seeing what history is there. Council Member Martin asked who is authorized to approve expenditures out of the Community Improvement Fund? He was informed that all CIF expenditures have to be approved by City Council. Council Member Martin asked Ms. Hodges to add water, storm water, sewer, all enterprise funds, etc. to future cash balance slides to show trends. He also requested that the month -to -month summary be set up like the combined balance of the CAFER. Melissa Trevino, Budget Manager, spoke concerning the Capital Projects. 312 Special City Council Meeting April 9, 2003 Page 313 Council Member Hernandez stated he would like all frozen projects prioritized as far as need or critical need and any projections as to when they have to be done. He also cited the North University Improvement Project as an example of why projects are delayed. This project was delayed partially because it was in the latter part of the issuing cycle and also that the City applied for State funds. Council Member Hernandez stated that as far as he knew, there is no council directive that no department is off limits. Interim City Manager Tommy Gonzalez said that was correct. He had not heard that from the entire council. Ms. Trevino summed up her presentation as follows: There is a total of 227 projects across all funds, with the exception of electric, budgeted at about $272m, expending $158.2m, so available unexpended is $114.7m on capital projects. Council Member Martin questioned the $90,000 for CNN installation at the airport. Interim City Manager Tommy Gonzalez stated that this involved a project with Coca-Cola. When they purchased the video boards for the coliseum, the contract included the CNN monitors. That is how they were able to install the television monitors. Council Member Martin asked if it was possible to switch to Fox News channel? Mr. Gonzalez said this would be looked at. ( 4•) Presentation of financing plans for general purpose, enterprise fund, and tax increment fund capital projects. Andy Burcham, Cash and Debt Manager. Capital projects for streets, parks and traffic control were approved in the September 18, 1999 bond election —totaling $37.385 million. The City is preparing to issue $11.885 million in bonds to fund a portion of those approved projects. Park Benches/Seating Area $ 127,600 Canyon Lakes Dam # 2,043,950 Irrigation/Lighting 2,179,600 Various State -Federal Match 3,110,993 Drainage Improvements 122,894 Frankford Avenue to Slide Road 3,165,000 Computer system design 939,963 Traffic Signal new locations 195,000 Total $11,885,000 Various capital projects are planned to be funded by bonds in the following enterprise funds: Airport, Electric, Water, Sewer, Solid Waste and Storm Drainage. The Finance and Budget offices are working together to fine-tune the issuance amounts and projects to be funded. The current tentative schedule of projects funded by these bond issues include: WATER FUND Lake Alan Henry Rec. Improvements $ 445,000 Pump Station Rehab 3,500,000 Major Water Line Replacement 1,600,000 Downtown Water System Improvements 1,250,000 Lake Alan Henry Fencing 161 000 , SEWER FUND Stream Discharge 400,000 Major Sanitary Sewer Line Replacement 750,000 313 Special City Council Meeting April 9, 2003 Page 314 Pump Station VFD Controls 90,000 SOLID WASTE Cell II Construction 3,500,000 AIRPORT FUND Blast Wall Parking Facility 4,500,000 STORM DRAINAGE FUND South Central Drainage Project 4,000,000 South Lubbock Storm Sewer Project 7,000,000 A scheduled bond issue in the Tax Increment Fund (TIF) will fund various capital projects related to the development in the North Overton TIF. Also, a scheduled bond issue in the Electric Fund will fund various capital projects and refinance Electric bonds originally issued in 2002. Council Member Martin stated that in a competitive bidding situation, the City of Lubbock typically sends a contingent of city officials, along with several books on the City's financial condition, to visit with bond rating agencies prior to a scheduled competitive sale. He asked if there was any difference in the process if the City goes to a negotiated sale as opposed to a competitive sale? Mr. Burcham said there was absolutely no difference. He also mentioned the bond rating agencies would be coming to the City of Lubbock this year for the presentation. Council Member Boren asked if the City Attorney's staff has had an opportunity to be sure nothing is being misrepresented on the part of the City. City Attorney Anita Burgess stated they did have input on this process. She stated the bond council is intimately involved with the entire transaction. Mr. Burcham mentioned that the underwriters hired the disclosure council. Mr. Burcham presented level debt versus level principal version and stated the latter is preferred. Council Member Martin suggested there was a downside to level principal, because of the City's tight budget, etc. He asked if this was good for the City at this time. Mr. Burcham stated this was only a recommendation. Council Member Martin asked Mr. Burcham to find out what the State does on bond. Council Member Morrison requested that staff provide comparison of the City's debt structure with cities, other than Amarillo. ies Council Member Martin asked stafand oso ther public hmprovemeok at wheter other tnts use impact fees for financing streets, parks Council Member Boren asked Interim City Manager Gonzalez if Council was being asked to sign off on Work Session Item 2 for all the projects listed under the issuance of $11.8m of bonds? Mr. Burcham stated that all those listed, except for the airport, have already been approved in the 2002-03 budget. This presentation provided details on these proposed bond issues. Council action will be taken at a future date to approve the issuance of these bonds. No action was required on this item. 10:52 A. M. CITY COUNCIL RECESSED 314 Special City Council Meeting April 9, 2003 Page 315 11:10 A. M. CITY COUNCIL RECONVENED Mayor McDougal called the meeting to order at 11:10 A. M. Mayor McDougal asked Council Member Patterson to read a special recognition in honor of the Delta Sigma Theta Sorority. Ruby White, President, and other members of the sorority were present. (5.) Presentation by the Community Development Department regarding the 2000 census data as it relates to eligible areas of funding in accordance with Housing and Urban Development (HUD) guidelines and funding priorities and policies for Community Development funds. (15 minutes) Todd Steelman, Interim Community Development Director, made this presentation. The 2000 census information and low -mod income information has been received. The next step in the process is to determine which type of eligible area the City will use and report to HUD. There are two choices; Census Tracts, which are a larger area, or Block groups, which are smaller and make up Census Tracts. Either choice has ramifications on determining areas of eligibility. HUD requires cities to begin using the new data within a 60-day period from the start of the 2003 fiscal year. Once a choice is made, it will be the standard used for the next consolidated plan. HUD does not allow cities to mix the two; it is an either or situation. This presentation outlined what has been used, and what changes occur with each choice. Mr. Steelman stated staff has received census information from HUD and a choice must be made between census tracts and block groups. He asked for guidance as this will become part of the Community Development Department's consolidated plan for the next year and something they need to incorporate. Council Member Hernandez asked if going by census tracts rather than by block groups, you would lose a larger portion of the City in being eligible of CDBG money? Mr. Steelman stated this was correct. Council Member Martin asked if this required a formal council action or only a consensus? Mr. Steelman stated a consensus at this time would be sufficient. If staff wished this implemented in the current consolidated plan, it would need to be revisited in June 2003 for formal action. Consensus of Council was to go with block groups and revisit this in June. Due to fiscal concerns caused by both Federal and local budget constraints, the Community Development Service Board would like guidance from Council regarding funding priorities. Priorities could include public service programs such as childcare, youth, health, public facilities including renovations, new construction, acquisition, etc., and infrastructure activities such as street paving, sidewalks, water and sewer. It will also include a discussion on the funding of City programs such as Parks, Health, and Business and Neighborhood Development. Concerning the Consolidated Plan, Mr. Steelman asked if there were any issues needing to be brought back to the Advisory Board from Council. Council Member Hernandez asked if he was looking for direction in terms of priorities? Council Member Morrison requested a comprehensive list of areas or services the City could get into with those currently focused on delineated. 315 Special City Council Meeting April 9, 2003 Page 316 Council Member Martin asked if the committee had put together a list for the $90,000 for street paving, which was approved earlier? Council Members Hernandez and Patterson also spoke concerning the street paving. Mr. Steelman stated the list has been started and they were trying to prioritize the streets. He also stated recommendations would be brought to council in June. Mayor McDougal and Council Member Boren brought up childcare, as this would help increase the work force by allowing parents to be employed. Finally, a discussion on the 108-loan application the City of Lubbock has with HUD and if the City is to proceed with the contract. Mr. Steelman stated staff recommendation was to not proceed. However, he also pointed out if we do not proceed now, the 108 Program may not be there in the future. Consensus of Council was to not proceed with the 108 Program, as it may put general fund dollars at risk. (6.) Presentation from the Interim City Manager regarding activities and accomplishments for the month of March, 2003. Tommy Gonzalez, Interim City Manager, presented a monthly operations report to Council. The purpose of the report was to highlight the issues facing the City from an operational perspective. The report also highlighted accomplishments for the month of March 2003. Council Member Morrison asked that this report be used to replace one, which could be eliminated. This would reduce the number of reports. The next item considered was Item 8. (7.) Discuss West Texas Municipal Power Agency structure and organizational issues. This item was deleted. Mayor McDougal and Council Member Boren left the dais. (8.) Presentation on the Llano Estacado Tourism Society by Sandy Parker, Executive Director of the Llano Estacado Tourism Society. The Llano Estacado Tourism Society (LETS) is a network of businesses, individuals and organizations that work to promote regional tourism as an economic development tool for the Llano Estacado area. They were established in 2000, and their goals are as follow: • To develop, market and promote travel to the Llano Estacado through a strong domestic and international program; • To market and promote travel within our region, recognizing the vast number of attractions, sporting events, history, scenic and cultural assets in the area; and • To bring together all facets of the travel and entertainment industry to exchange ideas, to instruct and to plan programs that benefit members. Sandy Parker, LETS Executive Director, made a brief presentation at the request of Councilman T. J. Patterson. 316 Special City Council Meeting April 9, 2003 Page 317 12:16 P.M. COUNCIL ADJOURNED There being no further business to come before Council, Mayor Pro Tem Hernandez adjourned the meeting. Read and approved this � �4h day of NtbW , 2005. MARC MCDOUG,�L, MAYOR ATTEST: Re cca Garza, City Secretary 317