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HomeMy WebLinkAboutMinutes - City Council - Special - 7/9/2003CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING JULY 9, 2003 10:00 A. M. The City Council of the City of Lubbock, Texas met in special session on the 9th day of July, 2003, in Committee Room 103, City Hall, 1625 13th Street, Lubbock, Texas at 10:00 A. M. 10:04 A. M. CITY COUNCIL CONVENED City Council Chambers, 1625 13th Street, Lubbock, Texas Present: Mayor Pro Tem Victor Hernandez, Council Member Gary O. Boren, Council Member Jim Gilbreath, Council Member Tom Martin, Council Member Frank W. Morrison and Council Member T.J. Patterson Absent: Mayor Marc McDougal Mayor Pro Tem Hernandez called the meeting to order at 10:04 A. M. ( 1.) Presentation from the Interim City Manager regarding his activities and accomplishments for the month of June 2003. Tommy Gonzalez, Interim City Manager, presented a monthly operations report to Council, a copy of which was provided in council backup. The purpose of the report was to highlight the issues facing the City from an operational perspective. It also highlighted accomplishments for the month of June 2003. Mayor Pro Tem Hernandez mentioned that the CFO and Director of Internal Audit positions, together with the Director of Aviation and other key hires, would be discussed at the July 10, 2003 City Council Meeting. Recommendations would then be made as to whether or not to hold off on these positions until after the permanent City Manager is hired. ( 2.) Discussion on the benefits of a Foreign Trade Zone to economic development in Lubbock and authorization to move forward with the application process. Kenny McKay, Interim CEO, Market Lubbock, Inc. introduced Trey Boring, Vice President, IMS Worldwide, Inc. Mr. Boring made a presentation referencing the benefits of a Foreign Trade Zone for Lubbock. In late 2001, the City of Lubbock through Market Lubbock, Inc. (MLI) commissioned a feasibility study to determine whether a Foreign -Trade Zone (FTZ or Zone) project in the City of Lubbock could provide the necessary services, which companies located in the City and the surrounding areas were not receiving. The study also analyzed whether there was a need for an FTZ project, whether the project would be economically feasible, and what regulatory and political issues might exist. Generally, the benefits of FTZ status include being able to bring nearly any imported merchandise into the zone, duty free. Once inside the zone, the merchandise can be stored, sorted, cleaned, graded, repackaged, manufactured, processed, assembled, or otherwise manipulated, all without the payment of any U.S. Customs duties. Duty is paid only when the merchandise is put back into the stream of U.S. commerce and then usually at a much reduced rate than would have been paid on the imported component parts. On September 10, 2002, IMS Worldwide, Inc., a Foreign -Trade Zone and Industrial Park Consulting and Marketing firm, reported their findings and conclusions. The study concluded that an FTZ project could potentially benefit the City and its business base, offer new economic development opportunities in the area, and assist the City in its Special City Council Meeting July 9, 2003 Page 6 ongoing effort to market the area to international and domestic businesses. The study also recognized the City's continuous efforts to develop low cost land, the existing Port of Entry (POE) No. 5503 at the airport, and the research and educational opportunities of a nationally and internationally recognized Texas Tech University. These assets would influence the ultimate success of a Zone project in Lubbock by attracting additional business opportunities. After due consideration, and now with a tenant in the City's Interport Trade Center requesting FTZ services, the City needs to complete the application process for the grant of authority to establish a zone in Lubbock. The application process is quite lengthy and time-consuming. On average, most grants of authority take between 10 and 18 months for full review and action by the Commerce Department and Foreign Trade Zones Board. Market Lubbock, Inc., in conjunction with City Staff and Reese Technology staff, has begun to pull together some of the prerequisites with regard to submitting a formal application. The consulting firm, IMS Worldwide, is also assisting in this effort. Basically the work that is being completed to date is that part of the outreach program. This is mandated by the federal regulations, where letters of support from the surrounding region (FTZ Service Area) and the governing body sponsoring the port of entry are solicited and made a part of the application. The parties in agreement that our FTZ Service area will include Bailey, Cochran, Crosby, Dickens, Floyd, Garza, Hale, Hockley, Kent, Lamb, Lubbock, Lynn, Motley, Terry, Yoakum, and counties. To date, letters of support from all of the 15 counties in the service area have been received. Also, letters of support, which are necessary, have been received from all of the four associated school districts, along with support from the Market Lubbock Board and Reese Board. A resolution from the Lubbock City Council and a letter from the Lubbock Central Appraisal District are needed. A background on trade zones and a service area map were included in council backup. This agenda item was a briefing to the City Council on the benefits of a Foreign Trade Zone and an opportunity to answer any questions the Council may have concerning the zone. A resolution supporting the concept of FTZ and recommending that City Council authorize an application for this grant of authority is on the July 10, 2003 City Council agenda. The Airport Board was briefed and they recommended approval of this resolution. Also, Market Lubbock recommended approval. Council Member Martin asked Interim City Manager Tommy Gonzalez if staff recommended approval of this resolution. Mr. Gonzalez stated that it did. Mayor Pro Tem Hernandez stated there had been some rubs between LIA and Reese and asked if there were any concerns. Mark Earle, Director of Aviation, stated they had received a letter of support and a Board resolution from Reese. Mayor Pro Tem Hernandez requested copies of the budget information concerning this item. 11:05 A. M. Mayor McDougal arrived 11:25 A. M. CITY COUNCIL RECESSED 11:37 A. M. REGULAR CITY COUNCIL RECONVENED 2 Special City Council Meeting July 9, 2003 Page 7 ( 3.) Presentation of the Monthly Financial Reports for the Month Ending May 2003. Jeff Snyder, Chief Accountant. Per City Council request, Jeff Snyder, Chief Accountant, presented the Financial Reports for the Month Ending May 2003. This information was provided in council backup. This information included: 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 May 2003. Staff was prepared to address any questions. Council Member Morrison asked staff to break out the cash balances for future presentations. Council Member Gilbreath requested more detail in the monthly report. Beverly Hodges, Director of Finance, stated that some items are seasonal and that twice yearly, there is an extra payroll. Therefore, it is difficult to get to a monthly allocation. That is why they use the five-year comparison. As staff gives a report narrative monthly, Ms. Hodges stated detail would be provided at that time. Council Member Martin stated that looking at the graphs, one would think the City had plenty of money to spend. He added that this is confusing to the average citizen, and he requested this be addressed differently. Mayor Pro Tem Hernandez asked if council should establish policies for the transfer of funds, i.e. enterprise to general. Council Member Boren stated that a five-year trend in expenditures was misleading, as five years ago, there was a "boom period". Now the City has ups and down. He thought a two year comparison would be easier to deal with. Council Member Boren further stated establishing policies should wait until the budget sessions. Mayor Pro Tem Hernandez asked Interim City Manager Tommy Gonzalez to send out a draft copy of the budget to the council members and then schedule individual meetings. Staff recommended approval. 12:20 P. M. The next item considered was Item 8 in Executive Session. 7 Special City Council Meeting July 9, 2003 Page 8 1:37 P. M. CITY COUNCIL REGULAR MEETING RECONVENED Committee Room 103 Present: Council Member Gary O. Boren, Council Member Jim Gilbreath, Council Member Frank W. Morrison, Council Member T. J. Patterson; Tommy Gonzalez, Interim City Manager; Anita Burgess, City Attorney; and Rebecca Garza, City Secretary Absent: Mayor McDougal, Mayor Pro Tem Hernandez and Council Member Martin. Council Member Patterson called the meeting to order at 1:37 p. in. Council Member Martin arrived at 1:38 p. in. Mayor McDougal arrived at 1:39 p. in. The next item considered was Item 4. (4.) Discuss the possibility of establishing a Lubbock Water Commission. Terry Ellerbrook, Managing Director of Public Works. This was the first item considered following Executive Session. Staff was requested by Council to contact other cities and research the possibility of establishing a water board or commission. Staff contacted all large cities in Texas and smaller communities around Lubbock. Only one city was found to have a formal Council appointed board. Several cities have informal boards that are brought together as needed. One city conducts a Town Hall meeting every three months and all directors are required to attend to address citizens' concerns. FISCAL IMPACT: Undetermined Terry Ellerbrook, Managing Director of Public Works, made a presentation on the possibility of establishing a Lubbock Water Commission. Gaylyn Chapman, Educational Coordinator, was asked to email possible commission responsibilities to the council. Staff asked for direction from council on how to proceed on this issue. Staff recommended that the Commission consist of seven members. Each Council Member and the Mayor would appoint one member. The staff liaison would be appointed by the City Manager. There was also discussion of having it be five members (at large), plus three or four slotted positions. Canadian River Municipal Water Authority, Brazos River Authority, High Plains Underground Water District and Llano Estacado Water District were units mentioned from which to select members. Consensus of Council was to move forward, but to not state the number of members today. Mayor McDougal requested a copy of the draft resolution, which would be brought back at the July 24, 2003 City Council Meeting. The next item considered was Item 6. (5.) Presentation of existing School Zone and School Cross -walk Policy. Jere Hart, City Traffic Engineer This item was deleted. (6.) Discuss the Recommendations of the Council appointed Citizen Advisory Committee regarding Capital Improvement Projects and Options for Bond Election Dates This item was considered following Item 4. The Citizen Advisory Committee (CAC) presented their recommendations at the June llth City Council Work Session of the Capital Project needs �'3 Special City Council Meeting July 9, 2003 Page 9 for the next 6 years. City Council was interested in calling a November Bond election, but asked for additional information regarding the alternatives and the costs. This information was provided in council backup. Craig Farmer, Managing Director of Planning & Transportation, made a presentation. He handed out spreadsheets with recommendations from the Capital Projects Committee. He stated two memorandums had been submitted concerning the timing of the election. November 2003, February 2004 and May 2004 were months given as times for the elections. Mr. Farmer noted that if November 2003 were chosen, council would have to call for it at the July 24, 2003 meeting. Council Member Gilbreath reminded council that the Steering Committee of the Citizens Advisory Committee would be the ones responsible for raising the money and then promoting the bond election. This would take time, and November is not very far away. Mayor McDougal requested that Mr. Farmer get with Phyllis Jones to see if the Executive Committee of CAC would meet, discuss the timing of the election and provide a recommendation to council as soon as possible. Mayor McDougal stated that February or May of 2004 would be the most likely dates. ( 7.) Discuss possible revisions to the City of Lubbock Paving Policy pertaining to the criteria that streets or alleys are paved through assessment paving programs. Craig Farmer, Director of Planning and Transportation This item was the last item considered before adjournment. Because of State Law requirements, and court rulings pertaining to assessment paving, the staff is seeking discussion and direction from the Council on possible changes to methods in which unpaved streets or alleys are paved. Historically, minor streets and alleys have been petitioned by the abutting property owners to be paved through an assessment -paving program. State Law allows cities to perform this paving and establish assessment rates for the owners to pay for their share of the paving cost. The current Paving Policy requires the majority of the property owners, or owners of the majority of abutting footage, to sign the petition requesting the paving construction. With this method, all owners do not have to be in favor, but the City can establish a lien, or apparent lien, against the property for payment of their share of the paving cost. Another portion of the State Law prohibits the City from establishing an assessment in excess of the special benefits, or enhancement, to the abutting properties. In recent years, this enhancement value has, in most cases, been only a fraction of the cost to construct the paving improvements. City councils have historically believed the abutting property owners should pay the bulk of the paving costs, as they see primary benefits from the street or alley paving, rather than the public at large. In recent years, a statement or contract was required to be executed by the majority of abutting property owners stating they believe their property would be enhanced to the amount of the assessment. However, recent discovery of court rulings have indicated that property owners are not qualified to judge the enhanced value of paving improvements to their property. Craig Farmer, Managing Director of Planning & Transportation, gave a presentation concerning street assessments and paving of streets. He stated there has been some controversy in the past and many things have changed since the original program. An existing paving policy was passed on April 24, 1994, which basically gives direction. E Special City Council Meeting July 9, 2003 Page 10 Council Member Boren stated he did not feel we could sue citizens for paving assessments. Council Member Martin stated he was not in favor of doing more assessments. Mr. Farmer told council that staff would write up a recommended policy and an amendment to the resolution. Staff asked for guidance from the City Council on a suggested alternative to assessment paving, or any other alternatives, which City Council desires that staff investigate. Council adjourned after this item. EXECUTIVE SESSION Mayor McDougal stated: "City Council will hold an Executive Session today for the purpose of consulting with the City Staff with respect to economic development prospects as provided by Subchapter D of Chapter 551 of the Government Code, the Open Meetings Law." 12:20 P. M. CITY COUNCIL RECESSED TO EXECUTIVE SESSION City Councit/City Manager's Conference Room All council members were present. (8.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.087, to discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City and with which the City is conducting economic development negotiations and/or to deliberate the offer of a financial or other incentive to a business prospect (Texas Tech). This item was considered following Item 3. The next item considered was Item 4 in Regular Session. 2:37 P. M. COUNCIL ADJOURNED There being no further business to come before Council, Council Member Martin made a motion to adjourn. Read and approved this day of �� 32005. ARC C150UGAL, MAYOR ATTEST: Rebdcca Garza, City Secretary 10