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Home My WebLink AboutMinutes - City Council - Regular - 9/28/2004CORRECTED CITY OF LUBBOCK REGULAR CITY COUNCIL MEETING SEPTEMBER 28, 2004 7:30 A. M. The City Council of the City of Lubbock, Texas met in regular session on the 28th day of September, 2004, in the City Council Chambers, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 7:30 A. M. 7:34 A. M. CITY COUNCIL CONVENED City Council Chambers, 1625 13th Street, Lubbock, Texas Present: Mayor Pro Tem Tom Martin, Council Member Linda DeLeon, Council Member Phyllis Jones, Council Member Floyd Price 7:37 A. M. Mayor Marc McDougal and Council Member Jim Gilbreath arrived 7:39 A. M. Council Member Gary O. Boren arrived CITIZEN COMMENTS Four citizens expressed comments to the Council. They were: • Donna Walz had requested to discuss the status of the Buddy Holly Symposium, the contract with Maria Elena Holly, and the benefits of the Symposium to the people of Lubbock; however, she was not present. • Suzanne Arkle-Wilson, Co -Chair of the 2004 American Heart Association, appeared to inform Council of the 2004 Heart Walk, scheduled for Saturday, October 16, 2004. • Three citizens spoke concerning agenda item 23A (South Lubbock Drainage Improvements Project Package #1 — Main Trunk Line). They were: • Frank Renda, Vice President of Oscar Renda Contracting; • Ty Lane, Partner with Utility Contractors of America; and, • Paul Mendoza, Engineering Manager of Oscar Renda Contracting. 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 pending or contemplated litigation; the purchase, exchange, lease or value of real property; personnel; competitive matters of the public power utility; and discuss or deliberate regarding commercial or financial information from an economic development business prospect seeking to locate, stay, or expand in or near Lubbock as provided by Subchapter D of Chapter 551 of the Government Code, the Open Meetings Law." 7:43 A. M. CITY COUNCIL RECESSED TO EXECUTIVE SESSION City Council/City Manager's Conference Room All council members were present. ( 1.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.071(1)(A), to discuss pending or contemplated litigation (Cemetery; Community Services; Overton Park; Planning; Police; Water Utilities). (2.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.072, to deliberate pending or contemplated litigation (Community Services; Overton Park; Water Utilities). (3.) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.074(a)(1), to discuss personnel matters (City Attorney; City Manager; City Secretary) and take appropriate action. Regular City Council Meeting September 28, 200 Page 248 (4•) Hold an executive session in accordance with V.T.C.A. Government Code, Section 551.086, on the following competitive matters (Electric Utilities): to deliberate, vote and take final action on electric rates of Lubbock Power and Light; to deliberate, vote and take action on a competitive matter regarding operation, financing and capital statements and budgets, revenue and expense projections, strategic and business plans and studies of Lubbock Power and Light; to discuss and deliberate a competitive matter regarding financial protection and options related to the generation and distribution assets of Lubbock Power and Light; to discuss and deliberate a competitive matter regarding the strategies, goals, funding and strategic purpose of the City of Lubbock's relationship with and membership in the West Texas Municipal Power Agency. ( 5.) 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 governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations (Market Lubbock, Inc.). 9:35 A. M. EXECUTIVE SESSION RECESSED 9:40 A. M. CITY COUNCIL REGULAR MEETING RECONVENED City Council Chambers Present: Mayor Marc McDougal; Mayor Pro Tem Tom Martin; Council Member Gary O. Boren; Council Member Linda DeLeon; Council Member Jim Gilbreath; Council Member Phyllis Jones; Council Member Floyd Price; Lou Fox, City Manager; Anita Burgess, City Attorney; Rebecca Garza, City Secretary; and Richard Casner, First Assistant City Attorney Absent: No one. Mayor McDougal called the meeting to order at 9:43 A. M. (6.) Invocation by Father Joy Thachil, Priest in Residence for St. Elizabeth's Catholic Church. (7.) Pledge of Allegiance was given in unison by those in the City Council Chambers to both the United States flag and the Texas flag. BOARD APPOINTMENT RECOGNITION Student -Community Committee Receiving: Cyd Seideman (unable to attend) MINUTED ACTION At this time, Mayor Pro Tern Martin stated, "As a result of the Executive Session this morning, I move that the Mayor be authorized to sign a letter of engagement with the law firm of Craig, Terrill and Hale to represent the City of Lubbock in all matters concerning Lake Alan Henry." Motion was seconded by Council Member Gilbreath. Motion carried: 7 Yeas, 0 Nays. Council Member Boren left the dais. 248 Regular City Council Meeting September 28, 200 Page 249 CONSENT AGENDA (Items 8-12,14-19, 22, 22A, 231 Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to approve Items 8-12, 14-19, 22, 22A, 23 on consent agenda as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Council Member Boren was away from the dais. ( g,) Approval of Minutes: August 26, 2004 Regular City Council Meeting September 7, 2004 Special City Council Meeting September 16, 2004 Regular City Council Meeting ( 8A.) Resolution No. 2004-RO453 confirming the appointments of Robert Hurmence, Luis Cardenas, and Adrienne Cozart to the Civil Service Commission (Human Resources). RESOLUTION NO.2004-RO453 WHEREAS, Section 143.006 of the Local Government Code requires appointment of persons to the Civil Service Commission of the City of Lubbock to be made by the municipality's chief executive and confirmed by the municipality's governing body; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby confirms the appointment, by City Manager Lou Fox, of Robert Hurmence for a term of office of one year, Luis Cardenas for a term of office of two years, and Adrienne Cozart for a term of office of three years as members of the Civil Service Commission of the City of Lubbock. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED /s/ Lou Fox Lou Fox, City Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney Robert Hurmence has previously served on the Civil Service Commission as Commissioner from January 1968 through February 1969. He then served as Vice Chair from March 1969 through February 1970 and then as Chair from March 1970 through January 1971. Mr. Hurmence returned to serve on the Commission in November 1988 through September 1992 as Commissioner. He then served as Interim Chair from October 1992 through February 9, 1993 and then finally as Chair from February 23, 1993 through January 1995. Luis Cardenas attended undergraduate school at West Texas State University in Canyon, Texas from 1970-1974 and received a Bachelor's Degree in Secondary Education with a major in history and a minor in 249 Regular City Council Meeting September 28, 200 Page 250 Spanish. He then moved to Lubbock where he has been a member of the Lubbock Independent School District for the past 31 years. He was a classroom teacher for 11 years and then received his Master's Degree in Administration in 1985 from Texas Tech University. He was Assistant Principal of Bean Elementary from 1985-1987 and Arnett Elementary from 1987-1996. He then became Principal of Brown Elementary from 1996-1999 and has been Principal of McWhorter Elementary since 1999. Adrienne Cozart is a native of Washington D.C. and moved to Lubbock in 1995. She is currently the Vice President of Human Resources for UMC Health System with 27 years of human resource experience. Included in her 27 years of human resource experience she has worked as a civil servant for the Washington D.C. City Government and the Federal Government. She has a Bachelor's Degree in Political Science and has several Human Resource Certifications. She has served on several Lubbock community organization boards. She is enrolled in Leadership Lubbock and received the 1999 YWCA Women of Excellence Award for UMC Health System. The Commission members interpret State Civil Service Laws and enact and govern over Local Civil Service Laws applicable to classified civil service positions in the Fire and Police departments. Members are appointed by the City Manager as per Texas Local Government Code 143.006, and are confirmed by the governing body. The term for these appointments is three years and the meetings are held as needed. There are three members of the Commission as required by law. The terms of office will be Robert Hurmence for one year, Louis Cardenas for two years, and Adrienne Cozart for three years. The City Manager recommended confirmation of the appointees to this position. (9.) Ordinance No. 2004-00104 abandoning and closing a temporary garbage collection easement and a temporary water line easement in Section 19, Block E-2, in the City of Lubbock, (3202 100 Street) (Right -of -Way) first reading). ORDINANCE NO. 2004-00104 AN ORDINANCE ABANDONING AND CLOSING A TEMPORARY WATER LINE EASEMENT AND A TEMPORARY GARBAGE COLLECTION EASEMENT LOCATED IN SECTION 19, BLOCK E-2, LUBBOCK COUNTY, TEXAS, AND 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 temporary garbage collection easement and a temporary water line easement adjacent to 104`h Street, just east of Geneva Avenue. These easements were dedicated for temporary use when the Stonebrook Addition, Lots 1-83, was platted just east of Indiana Avenue adjacent to 1041h and 1051h Streets. A new addition is being platted to the east of the Stonebrook Addition and these easements are no longer needed. FISCAL IMPACT: None. The Right -of -Way Department recommended approval of this ordinance. (10.) Resolution No. 2004-RO454 authorizing the Mayor to execute, for and on behalf of the City of Lubbock, Change No. 06 to a contract with the Texas Department of Health (TDH Document No. 7560005906 2005) for Immunization Division —Local, and any associated documents, by and between the City of Lubbock and the Texas Department of Health (Health Department). 250 Regular City Council Meeting September 28, 200 Page 251 RESOLUTION NO.2004-RO454 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract Change No. 06 to a Contract with the Texas Department of Health (TDH Document No. 7560005906 2005) for Immunization Division - Local and any associated documents by and between the City of Lubbock and the Texas Department of Health, a copy of which Contract Change No. 06 and associated documents are attached hereto and which shall be spread upon the minutes of this Council and as spread upon the minutes of this Council shall constitute and be a part hereof as if fully copied herein in detail. Passed by the City Council this 26th day of September, 2004. /S/ MARC V'`CDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Tommy Camden Tommy Camden, Health Director APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, Attorney of Counsel A copy of the Contract Change No. 06 is filed with Resolution No. 2004-R0454. Contract change No. 6 to the Texas Department of Health (TDH) Document No. 7560005906 2005 increases the contract by an additional $46,088 to continue services through the end of the contract term. The total amount of the Immunization contract is now $138,264. The contract term ends December 31, 2004. At the time the Council approved the initial Immunization contract on January 8, 2004 (Resolution No. 2004-R0018), TDH was still waiting on additional funding from the federal government, which is now available for the remainder of the contract. The Lubbock Health Department continues to provide essential public health services as specified in our approved 2004 Interlocal Application for Immunization Services, dated June 16, 2003. This contract provides full salaries and fringe benefits for a Registered Nurse, a Licensed Vocational Nurse, and a Secretary to run the program. The City of Lubbock provides an immunization clinic with the fewest barriers to service. Activities include providing immunizations at the Health Department clinic, outreach activities for infants, children, and high -risk adults in their homes, correctional facilities, at day care centers, the South Plains Mall, health fairs, and senior citizen centers, and investigation and initiation of control measures for vaccine -preventable diseases. FISCAL IMPACT: The full contract amount of $138,264 covers full salary and benefits and there is no required contribution from the General Fund. 251 Regular City Council Meeting September 28, 200 Page 252 This program fulfills the Core Missions of Public Health —those of Surveillance and Disease Prevention. Without the funding from the Texas Department of Health contract, our local public health efforts would be greatly impaired and the risk of illness in Lubbock citizens would increase. Therefore, Health Department staff recommended approval of the resolution. (11.) Resolution No. 2004-RO455 authorizing the Mayor to execute a contract, by and between the City of Lubbock and the Standard Insurance Company, to provide a group life insurance plan (Human Resources). RESOLUTION NO.2004-RO455 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an Agreement with the Standard Insurance Company to provide services for the purpose of the Group Life Insurance Plan. 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 City Council. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Scott Snider Scott Snider, Director of Human Resources APPROVED AS TO FORM: /s/ John Kni ;ht John Knight, Assistant City Attorney A copy of the Agreement is filed with Resolution No. 2004-R0455. The City of Lubbock provides a $10,000 term life insurance policy for all full-time City of Lubbock employees. Employees have the option to purchase additional life insurance for themselves and for eligible dependents. Retired City of Lubbock employees are allowed to retain life insurance, at their expense, for themselves and eligible dependents. Canada Life Assurance has provided the group life insurance plan since December 1, 1999. A Request for Proposal for the life insurance program was announced on July 2, 2004. Fourteen proposals were received. The respondents were: Jefferson Pilot Insurance Company ING Employee Benefits Fort Dearborn Life Insurance Company Aetna Life Insurance Company Met Life Standard Insurance Company Unicare UnumProvident Allstate Cigna Colonial 252 Regular City Council Meeting September 28, 200 Page 253 AIG American General Texas Life AFLAC A committee of three City staff members reviewed the submitted proposals. Based on cost, financial stability, administrative capabilities, and :references, the Committee identified the following top three proposers: Score Standard Life Insurance Company 95 ING Employee Benefits 84 Ft. Dearborn Life Insurance Company 83 Based on the above criteria, Standard Insurance Company scored the highest. Standard provided a 3-year rate guarantee of $.08/$1,000 for the $10,000 life benefit. This compares to our current rate of $.22/$1,000, representing annual savings to the City of approximately $30,240. Additional coverage options will remain at their current levels. Employee and retiree rates will remain the same. The contract will be effective December 1, 2004. FISCAL IMPACT: The City's cost for the basic benefit will be approximately $32,000, a decrease of $30,240, for FY 2004-2005. The cost of this program has been included in the FY 2004-2005 Health Benefits Fund Operating Budget. Staff recommended approval of this resolution authorizing the Mayor to sign a contract with Standard Insurance Company for the group life insurance program. (12.) Resolution No. 2004-RO456 amending the City of Lubbock's Medical Services Contract with the Physicians Network Association (PNA) for one year (Police Department). RESOLUTION N0.200i=R0456 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an Amendment to the Contract between the City of Lubbock and Physicians Network Association for medical services at the City of Lubbock Temporary Holding Facility, and related documents. Said amendment 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 the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Tom Mann Tom Mann, Assistant Chief Lubbock Police Department 253 Regular City Council Meeting September 28, 200 Page 254 APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney A copy of the Amendment is filed with Resolution No. 2004-R0456. PNA provides medical services including intake -screening forms, on call licensed vocational nurse, access to a physician, nurse practitioner or physician assistant, suicide assessment, etc. for the Police Department Detention Facility. FISCAL IMPACT: This contract is budgeted at $20,000 in the FY 2004-2005 Operating Budget. The Police Department recommended approval of this resolution. The next items considered were Items 14-19. (13.) Resolution No. 2004-RO466 authorizing the Mayor to execute a Conditional Assignment of Lease Agreement between the City of Lubbock, the South Plains Professional Hockey Club, Ltd., and the Western Professional Hockey League, Inc. d/b/a the Central Hockey League (Civic Services). RESOLUTION NO. 2004-RO466 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Conditional Assignment of Lease Agreement with the South Plains Hockey Club, Ltd., to the Western Professional Hockey League, Inc., DBA Central Hockey League, a Texas Corporation, and any associated documents, a copy of which Conditional Assignment of Lease Agreement is attached hereto and which shall be spread upon the minutes of this Council and as spread upon the minutes of this Council shall constitute and be a part hereof as if fully copied herein in detail. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Vicki Key Vicki Key, Civic Services Director APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, Attorney of Counsel A copy of the Conditional Assignment of Lease Agreement is filed with Resolution No. 2004-R0466. This item was moved from consent agenda to regular agenda and was considered following Item 23. This is a three -party standard agreement required by the Western Professional Hockey League (WPHL)/Central Hockey League (CHL) of all their franchise teams and host facilities. It basically confirms that there 254 Regular City Council Meeting September 28, 200 Page 255 is a current lease agreement that is in full force and effect between the hockey franchise and the City of Lubbock for the use of the Municipal Coliseum and stipulates that the hockey franchise will not sublease, surrender, amend or add CHL In the event of a default of the Colisu or notification to the WPHL/ m Lease Agreement by the hockey franchise, the document also provides that the City would give 21 days notice to the WPHL/CHL and allow them the opportunity to cure the default, which could include the WPHL/CHL becoming the Team Owner or bringing in another Team Owner, either of which would be bound by the current Coliseum Lease Agreement. The key provisions had previously been incorporated into the Coliseum Lease agreement that expired last April and is now being executed as a separate agreement to be consistent with the other franchise teams and host cities. FISCAL IMPACT: None. Staff recommended approval of this resolution. Motion was made by Council Member Gilbreath, seconded by Mayor Pro Tern Martin to pass Resolution No. 2004-RO466 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Council Member Boren recused himself. The next items considered were Items 20-21A. Items 14-19 were considered following Item 12. (14.) Resolution No. 2004-RO457 to accept three grants in the amount of $522,751 and appropriate $522,751 in the Grants Fund, to be spent according to the terms of the grant and authorizing the Mayor to execute the necessary SFY 2005 contract documents and subsequent amendments with the Texas State Library and Archives Commission to support the West Texas Library System (WTLS), the Technical Assistance Negotiated Grant (TANG), and the Interlibrary Loan Grant Program (ILL) (Library). RESOLUTION NO.2004-RO457 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 one (1) Library System Operation Grant Agreement, one (1) Technical Assistance Negotiated Grant Agreement and one (1) Interlibrary Loan Center Grant by and between the City of Lubbock and Texas State Library and Archives Commission, and all related documents. Said Agreements are 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 the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Jane Clausen Jane Clausen, Library Director 255 Regular City Council Meeting September 28, 200 Page 256 APPROVED AS TO FORM: /s/ John M. Kni it John M. Knight, Assistant City Attorney A copy of the Agreements is filed with Resolution No. 2004-R457. The West Texas State Library System (WTLS) is a state funded grant Program designed to improve library service programs in a 29 county area. WTLS is one of ten established under the Library Systems Act, 1969, and the program is administered by the Texas State Library and Archives Commission. The WTLS service program, funded totally by the State of Texas, is comprised of various elements designed to improve and expand the service programs of the libraries that are members of the system. Also, the system encourages the establishment of public libraries in communities that do not have library services. At the end of the current state fiscal year (SFY 2004), 34 libraries were qualified for membership. The Lubbock Public Library was designated as the Major Resource Center, or headquarters, for the WTLS program as of September 1, 1974. This year is the 3Is' annual such contract renewal. As the Major Resource Center, the Lubbock Public Library also serves as the headquarters for the ILL grant program and the Technical Assistance program. The ILL Center locates and requests materials for all public libraries, community college libraries, and special libraries within the 29 county -area served by WTLS. The Technical Assistance program funds the hiring of a full-time Technical Advisor for public libraries in the WTLS service region. The Technical Advisor will provide training and technological assistance to all of these area libraries. These three programs are fully funded by the State of Texas and the City has no responsibility or obligation in the event that funds are not appropriated or provided. The Texas State Library and Archives Commission contracts with the City of Lubbock and the Public Library for housing of staff and implementation of the service program components. FISCAL IMPACT: The City of Lubbock will receive compensation of 9.03% of direct charges to reimburse the cost of fiscal administration of the grant. The West Texas Library System Grant Contract #470-05009 is $373,151. The Interlibrary Loan Grant Contract #771-05044 is $69,600. The Technical Assistance Negotiated Grant Contract #476-05019 is $80,000. Staff recommended approval of this resolution. (15.) Resolution No. 2004-RO458 authorizing the Mayor to execute a contract with The Thomas Agency for marketing services for Citibus — RFP #2004.3-FY 2005 Marketing Services (Citibus). RESOLUTION NO.2004-RO458 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Contract with the Thomas Agency for marketing services for Citibus, RFP #2004.3-FY2005. 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. 256 Regular City Council Meeting September 28, 200 Page 257 Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary T APPROVED AS TO CONTENT: /s/ Craig Farmer Craig Farmer Managing Director of Planning & Transportation APPROVED AS TO FORM: /s/ John M. Knight John M. Knight, Assistant City Attorney A copy of the Contract is filed with Resolution No. 2004-R458. This proposal is for Citibus' marketing contract. The contract will begin October 1, 2004, and will run through September 30, 2005. It may be extended for two additional one-year terms. The UP was advertised in the Avalanche -Journal on June 27 and July 4, 2004. The proposals were due in Citibus' offices on July 27, 2004. Three agencies submitted proposals. None of the submitting agencies were disqualified due to errors in submitting the Federal clauses. On August 24, 2004, the agencies made presentations to the Board, in a randomly assigned order: Walker Communications, King & Gibson Advertising, and The Thomas Agency. Each agency was allowed 15 minutes for their presentation and 10 minutes for a question and answer session. Each Board member was given evaluation sheets and scored each agency immediately following each presentation. After the last agency completed their presentation, Citibus staff tabulated the individual votes in a spreadsheet, which is included for the Council's review. The summary of scores follows: Walker Communications 312 King and Gibson Advertising 338 The Thomas Agency 356 Based on the scores, the Board voted unanimously to recommend to the City Council that the contract be awarded to The Thomas Agency. All three agencies were notified verbally, and in writing, of the Board's decision. FISCAL IMPACT: The cost of the advertising contract is included in the Citibus budget for FY 2004-2005. No additional funding will be needed from the City of Lubbock for the marketing services. The Lubbock Public Transit Advisory Board recommended that RFP 2004.3 be awarded to The Thomas Agency for $50,000 for the initial contract term of October 1, 2004—September 30, 2005, with the option of two additional one-year extensions. (16.) Resolution No. 2004-R0459 authorizing a Voice Product Addendum to a Master Service Agreement for Phone Switch Maintenance between the City of Lubbock and Southwestern Bell Telephone (SBC) Global Services, Inc. (Telecommunications). 257 Regular City Council Meeting September 28, 200 Page 258 RESOLUTION NO.2004-RO459 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Voice Product Addendum to a Master Agreement for phone switch maintenance, and any associated documents, by and between the City of Lubbock and SBC Global Services, Inc., a Delaware Corporation, a copy of which Voice Product Addendum are attached hereto which shall constitute and be a part hereof as if fully copied herein in detail. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Mark Yearwood Mark Yearwood, Information Technology Director APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, Attorney of Counsel A copy of the Voice Produce Addendum is filed with Resolution No. 2004-R459. A high tech RFP for Phone Switch Maintenance was taken to City Council on July 15, 2004, and based on the essentiality of timely service requirements, Council awarded the contract to SBC. Since the July 15, 2004 meeting, Telecommunications staff has negotiated an agreement for switch maintenance with SBC. Because the contract differs from the earlier presented contract, this item is a request for City Council to approve the attached contract. The agreement is for three years for maintenance on all telephone switches located in City of Lubbock facilities. A list of locations and annual price per location is attached to the agreement. FISCAL IMPACT: Annual maintenance is $85,237. The FY 2004-2005 Operating Budget includes $75,000 for phone switch maintenance; however, the overall Information Technology budget accommodates this additional cost. Staff recommended approval of this resolution. (17.) Resolution No. 2004-RO460 ratifying the amendment dated August 17, 2004 to the Pool Management Services Agreement (Resolution No. 2004-110144) to change the effective term of the contract to end on August 15, 2004 (Parks and Recreation). RESOLUTION NO.2004-RO460 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 Ratification of that certain Amendment to Pool Management Contract Between the City of Lubbock and USA Pools, dated August 17, 2004, and any other related documents. Said Ratification is attached hereto and incorporated 258 Regular City Council Meeting September 28, 200 Page 259 in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Corbin Pemberton Corbin Pemberton Parks and Recreation Director APPROVED AS TO FORM: /s/ Richard K. Casner Richard K. Casner First Assistant City Attorney A copy of the Ratification is filed with Resolution No. 2004-R460. On March 23, 2004, City Council approved the contract between the Parks and Recreation Department and USA Pools. Under this contract, USA Pools would provide the City of Lubbock staffing, programming, surveillance, chemical maintenance, and overall daily operation of the four municipal swimming pools. The contracted amount was $119,580 for the 2004 season. An additional fee of $12 per hour/per lifeguard is charged to the Parks and Recreation Department for all private pool reservations. The contract term ends on August 29, 2004, and then continues from year-to-year with the same terms and conditions set forth for the next two years, or until terminated by either party. An increase, not to exceed 5%, will be charged annually upon contract renewal. With the Lubbock Independent School District (LISD) scheduled to resume classes on August 16, 2004, and the overall general decline in participation at the facilities, the Parks and Recreation Department was prompted to amend the contract to close the facilities on August 15, 2004. FISCAL IMPACT: The City of Lubbock saved $4,500 for FY 2003-2004 by closing all four facilities on August 15, 2004, thus bringing the total paid to USA Pools to $115,080 (plus the additional cost of $12 per hour/per lifeguard for private reservations) for the 2004 swim season. Staff recommended approval of this resolution. (18.) Resolution No. 2004-RO461 ratifying the termination of the Pool Management Services Agreement (Resolution No. 2004-R0144) between the City of Lubbock and USA Pools, effective September 15, 2004 (Parks and Recreation). RESOLUTION NO. 2004-RO461 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 i:or and on behalf of the City of Lubbock a Ratification of that certain Notice dated September 10, 2004, to USA Pools, Inc., of Roswell, GA, and any other related documents. Said Ratification is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. 259 Regular City Council Meeting September 28, 200 Page 260 Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Corbin Pemberton Corbin Pemberton Parks and Recreation Director APPROVED AS TO FORM: /s/ Richard K. Casner Richard K. Casner First Assistant City Attorney A copy of the Ratification is filed with Resolution No. 2004-R461. On March 23, 2004, City Council approved the contract between the Parks and Recreation Department and USA Pools. Under this contract, USA Pools would provide the City of Lubbock staffing, programming, surveillance, chemical maintenance, and overall daily operation of the four municipal swimming pools. The contracted amount was $119,580 for the 2004 season. An additional fee of $12 per hour/per lifeguard is charged to the Parks and Recreation Department for all private pool reservations. This contract was slated to end on August 29, 2004, and then continue from year to year on the same terms and conditions set forth for the next two years, or until terminated by either party. An increase, not to exceed 5%, will be charged annually upon contract renewal. On August 24, 2004, staff presented the End of Season Pool Report to the Parks and Recreation Advisory Board. During this presentation, staff made the recommendation not to renew the contract with USA Pools for the 2005 pool season. Service, accountabilities and health and safety related issues forced the staff to make this recommendation: • Service issues have included the pools opening late, the inability of the guard staff to control the patrons, the public's inability to understand some of the guard staff due to a language barrier, the lifeguards and managers either arriving late or not showing up at all for private pool rentals and/or family night. • Accountability issues include the use of poor judgment, the loss of facility keys, starting a fire at Montelongo Pool and poor follow up on non -contractual obligations (training documentation and certifications, daily chemical logs, party reports and rescue/accident reports). • Health and safety issues have included pools not being properly vacuumed, algae problems, improper water balance, extremely high levels of chlorine or no chlorine at all in the pool(s). The Parks and Recreation Advisory Board recommended that the City Council terminate the Pool Services Contract with USA Pools. On September 10, 2004, a certified letter was sent to USA Pools informing them that the City of Lubbock will not renew the contract for 2005. This chart indicates the changes to the lifeguard stations and the proposed number of lifeguards for 2005: 260 Regular City Council Meeting September 28, 200 Page 261 Mae Clapp Pool 7 Maxey Pool 4 Montelongo Pool 8 Simmons Pool 4 City of Lubbock 2003 USA POOLS 5 2 3 2 2004 City of Lubbock 6 4 6 3 2005 FISCAL IMPACT: There is no fiscal impact. There is $131,655 earmarked in the proposed FY 2004-05 budget for this service. Instead of paying a contractor, this will be performed by City staff. The Parks and Recreation Advisory Board and staff recommended approval of this resolution. (19.) Resolution No. 2004-RO462 approving the cost allocation for the utility billing function to the participating utility funds, i.e. LP&L, Water, Sewer, Solid Waste, and Storm Water Drainage and also approving a reasonable allocation of the purchase price of the Banner Utility Billing System used for the above -mentioned funds and to transfer these amounts to the Electric Fund from the appropriate utilities enterprise funds (Accounting). RESOLUTION NO.2004-RO462 WHEREAS, the City's municipally owned electric utility, Lubbock Power & Light, operates a centralized utility billing system that provides billing services for the electric, water, sewer, solid waste and storm water drainage utilities commonly referred to as the Banner Utility Billing System; and WHEREAS, it is customary for the cost of a billing system to be shared by all participating utilities; and WHEREAS, the Director of Electric Utilities, the Assistant City Manager and the Chief Accountant of the City of Lubbock have reviewed the cost allocation of the Banner Utility Billing System and recommend that certain adjustments be made regarding the cost allocation among the various utility funds being served by the Banner Utility Billing System and as detailed in the memorandum attached to this resolution and incorporated herein as though set forth fully herein; and WHEREAS, The Electric Utility Board has been briefed on this issue and agrees with the recommendation as outlined in the attached memorandum; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock BE and is hereby authorized and directed, in accordance to the attached memorandum, to transfer to the electric utility fund the following amounts from the respective utility funds: Water: $ 589,266.00 Sewer: $ 601,412.00 Storm Water Drainage: $ 604,468.00 Solid Waste: $ 321,210.00 Total: $1,816,3 56.00 PT951 Regular City Council Meeting September 28, 200 Page 262 Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Quincy White Quincy White, Assistant City Manager APPROVED AS TO FORM: /s/ Matthew L. Wade Matthew L. Wade, Natural Resources Attorney LP&L operates a centralized utility billing system for the following services: electric, water, sewer, solid waste and storm water drainage. LP&L has two distinct services, customer service and field service, which make up the Utility Billing Department. Staff evaluated each of these processes to determine a rational and systematic method for allocating these costs to the City's utility funds. The recommended split was attached in a separate document. It is customary for the cost of a new billing system to be shared by all participating utilities. An evaluation of the amounts paid by all of the utility funds for the purchase of the Banner Utility Billing System indicates that additional payments should be made to LP&L from the other participating utilities. In the interest of fairness, staff is recommending that all of the utilities should contribute an equitable share of the purchase price of the Banner Utility Billing System. The LP&L Board approved this item at their September 8, 2004 meeting. FISCAL IMPACT: The additional payments required for the Banner Utility Billing System, from the Utility Funds is as follows: Water - $589,266 Sewer - $601,412 Storm Water Drainage — $604,468 Solid Waste — $321,210 This represents a total payment of $1,816,356 to LP&L. Staff recommended approval of this resolution. The next items considered were Item 22-23. Items 20-21A were moved from consent agenda to regular agenda and were considered following Item 13 and followed this discussion. Mayor Pro Tern Martin stated, "On Items 20, 20A, 21 and 21 A, they are involved in the Milwaukee Paving Project. We had originally signed Developer Agreements — we have signed them with all but two of the actual parcel owners along that route, and the deadline was today's meeting for all of the Developer Agreements to be approved, and this Friday, the I", was the date that all of the parties were to have their Irrevocable Letters of Credit posted. All of the developers, with the exception of one developer out of Dallas, which has kind of complicated it, since we have had to do a lot of the long distance legal work, have 262 Regular City Council Meeting September 28, 200 Page 263 signed their agreements. One of the landowners is a church that is not in a position today to put up their monthe overally, but hrn a roject�and therenth or is really no but they have a very small part of P harm -in letting them be able to get that letter back. It's been our position all along that the drop -dead date for everybody to have the money up was this Friday, and I'm very pained to not be able to have that done, because we still have some legal drafting that is being done between our legal department and the developer in Dallas, their lawyers in Dallas. Bottom line is, we need two additional weeks to get the job done. They swear that they're going to complete this. They have, I believe Mr. Farmer has provided us a commitment letter from their lender. They are ready to go. They just need to get all of this legal drafting done. So at this point, these four items and it's going to be somewhat of a complicated motion, but I'll make a motion that covers all four of these items, which will then put off until the next meeting on October I P for the final approval of this last Developer Agreement, and we'll give them until, I believe it's the 15`h of October. Is that correct for everybody to have that — this last developer to have the Irrevocable Letter of Credit. They're going to do it. It's just that we are caught in the middle of long distance legal drafting. So the motion is on Items 20 and 20A, move to continue to the October IP City Council Meeting. On Item 21, move to approve with the amendment that one, the prior resolution as referenced in this resolution, provides for a due date of October 131h, 2004 for the execution and delivery to the City of Lubbock of the Developer Agreements by Hub West Development, Limited Partnership, and the second part of that motion, Section 1.01 of the Developer Agreements conditionally accepted by the City, by the prior resolutions, be amended to require the cash payment or Letter of Credit regarding the estimated amount on or before October 15, 2004. On Item 21 A, move to approve with the amended date of October 16`11 as the Developer Agreement date." Council Member Gilbreath seconded the motion. Motion carried: 7 yeas, 0 Nays. (20.) Resolution No. 2004-R authorizing the Mayor to execute a Development Agreement, by and between the City of Lubbock, Texas and :Hub West Development, L.P. for the Milwaukee Avenue paving project from 341h to 92"d Streets (Planning and Transportation). This item was continued. The City of Lubbock has been working with local Developers on the Milwaukee Avenue paving project, which involves paving Milwaukee Avenue from 34`h to 92"d Streets. Contracting with the Developers with frontage on Milwaukee Avenue will allow the City of Lubbock to complete the project in its entirety and will benefit the City by realizing cost savings due to economies of scale and due to drainage and infrastructure installation, such as storm water, water, sewer, and other utility pipelines. The project will be an economic benefit to the Developers with property fronting Milwaukee Avenue by making their development more viable with this improvement. The project is being engineered by Parkhill, Smith & Cooper. The City of Lubbock has determined an estimate of the cost of the Developer's share of the Milwaukee Avenue project and the development contract requires the Developer to pay in cash or submit an irrevocable letter of credit for the estimated amount by October 1, 2004. The estimated amount is the Developers share of the total cost of the project, which includes, paving, water, sewer, and storm water, minus Yz the difference between concrete and asphalt paving. The contract requires the City of Lubbock to furnish the Developer with a description of the land needed for the paving and drainage, water, and sewer construction by February 1, 2005 and the Developer is required to dedicate, at no cost to the City, all land and real property interests necessary for the construction by March 1, 2005. 263 Regular City Council Meeting September 28, 200 Page 264 The contract stipulates the amount is only an estimate, and that the cost of the Developers share of the Milwaukee Project could be lesser or greater than the estimated amount. Subject to the limitation described in the following sentence, the Developer agrees in the contract to pay the actual bid cost. If the actual bid cost is greater than five percent of the estimated amount, the City of Lubbock and the Developer agree to negotiate the costs in excess of the estimated amount. FISCAL IMPACT: The total cost of the Milwaukee Project is estimated at $17,962,102. The cost to the City of Lubbock for their share of the project is $13,769,726. The project will be funded out of the Gateway Fund. The Milwaukee Project will benefit both the local Developers with frontage along Milwaukee Avenue and the City of Lubbock by completing the paving of Milwaukee in a timely manner. Staff recommended approval of this item. Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to continue Item 20 to the October 131h City Council Meeting. Motion carried: 7 Yeas, 0 Nays. (20A.) Resolution No. 2004-R authorizing the Mayor to execute a Development Agreement, by and between the City of Lubbock, Texas and Hub West Development, L.P. for the Milwaukee Avenue paving project from 34th to 92"d Streets (Planning and Transportation). This item was continued. The City of Lubbock has been working with local Developers on the Milwaukee Avenue paving project, which involves paving Milwaukee Avenue from 341h to 92nd Streets. Contracting with the Developers with frontage on Milwaukee Avenue will allow the City of Lubbock to complete the project in its entirety and will benefit the City by realizing cost savings due to economies of scale and due to drainage and infrastructure installation, such as storm water, water, sewer, and other utility pipelines. The project will be an economic benefit to the Developers with property fronting Milwaukee Avenue by making their development more viable with this improvement. The project is being engineered by Parkhill, Smith & Cooper. The City of Lubbock has determined an estimate of the cost of the Developer's share of the Milwaukee Avenue project and the development contract requires the Developer to pay in cash or submit an irrevocable letter of credit for the estimated amount by October 1, 2004. The estimated amount is the Developers share of the total cost of the project, which includes, paving, water, sewer, and storm water, minus '/2 the difference between concrete and asphalt paving. The contract requires the City of Lubbock to furnish the Developer with a description of the land needed for the paving and drainage, water, and sewer construction by February 1, 2005 and the Developer is required to dedicate, at no cost to the City, all land and real property interests necessary for the construction by March 1, 2005. The contract stipulates the amount is only an estimate, and that the cost of the Developers share of the Milwaukee Project could be lesser or greater than the estimated amount. Subject to the limitation described in the following sentence, the Developer agrees in the contract to pay the actual bid cost. If the actual bid cost is greater than five percent of the estimated amount, the City of Lubbock and the Developer agree to negotiate the costs in excess of the estimated amount. 264 Regular City Council Meeting September 28, 200 Page 265 This contract includes a requirement that the portion of the road covered by this agreement be completed by March 1, 2006, or the contractor will pay a penalty to the Developer. FISCAL IMPACT: The total cost of the Milwaukee Project is estimated at $17,962,102. The cost to the City of Lubbock for their share of the project is $13,769,726. The project will be funded out of the Gateway Fund. The Milwaukee Project will benefit both the local Developers with frontage along Milwaukee Avenue and the City of Lubbock by completing the paving of Milwaukee in a timely manner. Staff recommended approval of this item. Motion was made by Mayor Pro Tem Martin, seconded by Council Member Gilbreath to continue Item 20A to the October 131h City Council Meeting. Motion carried: 7 Yeas, 0 Nays. (21.) Resolution No. 2004-RO467 amending Resolution Numbers 2004-R0437, 2004-R0438, 2004-R0439, 2004-R0440, 2004-R0441, 2004-R0442, 2004-R0443, and 2004-R0444, excluding the requirement of an. executed contract from City View Christian Fellowship as a condition precedent to the City of Lubbock entering into the contracts authorized by such resolutions (Planning and Transportation). RESOLUTION NO.2004-RO467 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: WHEREAS, pursuant to Resolution Nos. 2004-R0437, 2004-R0438, 2004-R0439, 2004-R0440, 2004-R0441, 2004-R0442, 2004-R0443, and 2004-RO444 (the "Prior Resolutions"), the City Council of the City of Lubbock authorized the Mayor of the City of Lubbock to execute Development Agreements with the majority of the respective Developers neighboring the Milwaukee Avenue Paving Project from 341h to 92"d Streets; and WHEREAS, the Prior Resolutions contain a condition precedent to the City's execution of said Development Agreements, being the execution and delivery of, on or before September 27, 2004, Development Agreements to the City of Lubbock, in the same form as the Development Agreements attached to the Prior Resolutions, by, among other interests, Christian City View Fellowship; and WHEREAS, the City of Lubbock has determined that the execution and delivery of the Development Agreement by Christian City View Fellowship is no longer necessary for the Milwaukee Avenue Paving Project and that the execution and delivery of the Development Agreement by Christian City View Fellowship should no longer be a condition precedent for the City's execution of the Development Agreements authorized by the Prior Resolutions; and WHEREAS, the Prior Resolutions, and the Development Agreements conditionally accepted by the Prior Resolutions, are in need of amendment in regard to (i) the due date of the Development Agreement by Hub West Development , L.P.; and (ii) the due date of the tender of cash or letter of credit for the Estimated Amount (as defined in the Development Agreements); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City of Lubbock, Texas, hereby amends Resolution Nos. 2004-R0437, 2004-R0438, 2004-R0439, 2004-R0440, 2004-R0441, 2004-R0442, 2004-R0443, and 2004-RO444: 1. To delete as a condition precedent to the execution of the Development Agreements authorized by the Prior Resolutions, the execution and delivery of, on or before September 27, 2004, a Development Agreement by Christian City View Fellowship; 2. To provide a due date of October 13, 2004 for the execution and delivery to the City of Lubbock of the Development Agreement by Hub West Development, L.P.; and 265 Regular City Council Meeting September 28, 200 Page 266 3. To amend Section 1.01 of the Development Agreements conditionally accepted by the City by the Prior Resolutions, be amended to require cash payment or letter of credit regarding the Estimated Amount on or before October 15, 2004. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Craig Farmer Craig Farmer Director of Planning and Transportation APPROVED AS TO FORM: /s/ Richard K. Casner Richard K. Casner First Assistant City Attorney This resolution amends the original resolutions authorizing the Mayor to execute the developer contracts for the Milwaukee Project for Rick and Ron Betenbough (2004-R0437), Betenbough Capital, Inc. (2004-R0438), S & S Commercial Properties, LLC (2004-R0439), Bacon Crest, LTD (2004-R0440), Milwaukee, LTD (2004-R0441), S & S Commercial Properties, LLC (2004-R0442), Day Estates, LTD (2004-R0443), and Sonny Arnold Trust (2004-R0444) by excluding the requirement of an executed contract with City View Christian Fellowship as a condition to executing the other developer contracts. Approval of this resolution will allow us to move forward with the Milwaukee Project and give City View Christian Fellowship additional time to make decisions about their portion of the project. FISCAL IMPACT: No fiscal impact. Approval of this resolution will assist in moving forward with the Milwaukee Project with the Developers who have committed to the project. Staff recommended approval of this resolution. Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to pass Resolution No. 2004-R0467 with the amendment that one, the prior resolution as referenced in this resolution, provides for a due date of October 131h, 2004 for the execution and delivery to the City of Lubbock of the Developer Agreements by Hub West Development, Limited Partnership, and the second part of that motion, Section 1.01 of the Developer Agreements conditionally accepted by the City, by the prior resolutions, be amended to require the cash payment or Letter of Credit regarding the estimated amount on or before October 15, 2004. Motion carried: 7 Yeas, 0 Nays. 266 Regular City Council Meeting September 28, 200 Page 267 (21A.) Resolution No. 2004-RO468 authorizing the Mayor to execute Amendment No. 2 to that certain Agreement for Engineering Services, dated on or about April 22, 2004, by and between the City of Lubbock and Parkhill, Smith & Cooper, Inc., regarding the design and construction of Milwaukee Avenue (Planning and Transportation). RESOLUTION NO.2004-RO468 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, AMENDMENT NO. 3 TO AGREEMENT FOR ENGINEERING SERVICES CITY OF LUBBOCK, TEXAS AND PARKHILL, SMITH & COOPER, INC., relating to the design and construction of paving for Milwaukee Avenue from 34`h Street to 98`h Street. Said Amendment is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Cram Farmer Craig Farmer Director of Transportation APPROVED AS TO FORM: /s/ Richard K. Casner Richard K. Casner First Assistant City Attorney A copy of the Amendment is filed with Resolution No. 2004-R0468. This resolution authorizes the amendment of the agreement between the City of Lubbock and Parkhill, Smith & Cooper for Engineering Services on the Milwaukee Project. The amendment excludes City View Christian Fellowship from the requirement that all developer agreements be in place by October 1, 2004. FISCAL IMPACT: No fiscal impact. Approval of this resolution will assist in moving forward with the Milwaukee Project. Staff recommended approval of this resolution. Motion was made by Mayor Pro Tem Martin, seconded by Council Member Gilbreath to pass Resolution No. 2004-RO468 with the amended date of October 161h as the Developer Agreement date. Motion carried: 7 Yeas, 0 Nays. The next item considered was Item 22B. Items 22-23 were considered following Item 19. (22•) Resolution No. 2004-RO463 amending the City of Lubbock's Wrecker Services Contract with Lubbock Wrecker Service (Purchasing). 267 Regular City Council Meeting September 28, 200 Page 268 RESOLUTION NO.2004 R0463 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 Amendment to Wrecker Services Contract Between the City of Lubbock and Lubbock Wrecker Service, Inc., and all related documents. Said Amendment 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 the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Victor Kilman Victor Kilman, Purchasing Manager APPROVED AS TO FORM: /s/ Amv L. Sims Amy Sims, Assistant City Attorney A copy of the Amendment is filed with Resolution No. 2004-R0463. Lubbock Wrecker Services (the Contractor) and the City have previously entered into a contract dated August 5, 2001 (the Contract), and the City and the Contractor desire to amend the contract deleting services for the removal of junk vehicles and increasing daily storage fees from $7.50 to $10. Once the contract has been amended to delete the services for removal of junk vehicles, staff shall acquire these services under a separate contract with R. P.'s Heavy Duty Towing of Lubbock, Texas (Bid #094-04-VK). FISCAL IMPACT: A separate contract for the removal of junk vehicles will involve $18,000 in revenue for the City over a five-year period. Amend Wrecker Services Contract with Lubbock Wrecker Service of Lubbock, Texas. (22A.) Resolution No. 2004-RO464 authorizing the Mayor to sign an agreement with Cap Rock Telephone Company of Spur, Texas for antenna space on a radio tower at Lake Alan Henry and to create a special revenue fund called "Abandoned Vehicles" and to transfer the current balance of $246,757.77 into this fund (Police). RESOLUTION NO.2004-R0464 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager 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 antenna space on a radio tower at Lake Alan Henry. 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. RI Regular City Council Meeting September 28, 200 Page 269 Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Claude Jones Claude Jones, Chief of Police APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney A copy of the Agreement is filed with Resolution No. 2004-R0464. This agreement provides for the Lubbock Police Department to place two radio antennas on a cellular telephone tower located near Lake Alan Henry (LAH). It additionally allows the Department to place a small building on the tower site for the purpose of installing two radio repeaters. These radio repeaters are primarily used by Public Safety responders i.e. Garza County, the Lubbock Police Department, and the Lubbock Fire Department Dive Team. This equipment is currently located at a small tower near the dam at LAH. Moving this equipment will provide much higher elevation for the antennas and therefore increase the reliability of radio coverage for first responders. Cap Rock Telephone Company is waiving a $320 per month lease fee as part of its agreement with the City of Lubbock to grant an easement for Cap Rock Telephone Company to run a communications line through City property at Lake Alan Henry. FISCAL IMPACT: This agreement calls for paying Cap Rock Telephone Company $35 each month for electricity. Installation charges are estimated at $7000. Installation charges will be paid from excess abandoned vehicle funds. The Police Department recommended approval of this resolution. The next item considered was Item 23. (22B.) Resolution No. 2004-R0469 authorizing the Mayor to approve the recommendation of the Parks and Recreation Board regarding FY 2004.2005 use of in -kind services by City of Lubbock Departments for Special Event support (Parks and Recreation). RESOLUTION NO.2004-R0469 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT the City Council of the City of Lubbock hereby approves the recommendations of the Parks and Recreation Board with regard to FY 2004-05 use of in -kind services by City of Lubbock departments as set forth in Exhibit "A" hereto, which said Exhibit "A" is attached hereto and made a part hereof as if fully copied herein in detail. 269 Regular City Council Meeting September 28, 200 Page 270 Passed by the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: !s! Corbin Pemberton Corbin Pemberton Parks and Recreation Director APPROVED AS TO FORM: /s/ Amy L. Sims Amy L. Sims, Assistant City Attorney A copy of Exhibit A is filed with Resolution No. 2004-R469. This item was moved from consent agenda to regular agenda and was considered following Item 21A. At the January 9, 1997 City Council meeting, the City Council approved Ordinance #9965, which amended Chapter 2 of the Code of Ordinances of the City of Lubbock. In doing so, the duties of the Parks and Recreation Board were expanded to include review of requests for in -kind services for special community events. The special events policy was developed in order to track special event support and monitor the increase of requests received from non-profit organizations for special events in the City of Lubbock. The policy allocates up to $200,000 annually for in -kind services. Of that amount 90% ($180,000) is earmarked for existing events, while the remaining 10% ($20,000) is targeted for new events. The following recommendation, approved by the Parks and Recreation Board at their August 24, 2004 meeting, is submitted for applications for FY 2004-2005 in -kind services: Department Juneteenth March of Dimes 4th on Broadway American Diabetes Association National Cowbov S,,mposium Buddy Holly Festival (Symposium) Fiesta Del Llano Total Parks S250 S695 S6,645 S295 S250 52,360 S35C 510,845 Solid Waste S250 S250 52,000 S250 S250 S1,500 54,50 Streets S400 56,500 5200 S100 5450 57,65 Police S80 522.400 S64 5161700 S40,540 Estimated In -Kind Service Value SI,700 S945 537,545 S295 S70 53.35( 519,000 563,535 /o Rccomtnended 93% 92°/ 99% 900/ 900] 81% 96% In -Kind Value Recommended $1,581 869 $37,170 26 $630 $2,714 $18,240 $61,470 FISCAL IMPACT: The total dollar amount of FY 2004-2005 In -Kind Services recommended is $61,470. These amounts will be absorbed within the existing departmental budgets. Should the services exceed the recommended amount, the event organizations will be responsible for making up the difference. To date, no organizations have had to make up the difference. If approved, this will leave $138,530 for any additional requests that could be submitted for this fiscal year, including $20,000 for new events. 270 Regular City Council Meeting September 28, 200 Page 271 Staff recommended approval of this resolution according to the special events policy adopted by City Council. Motion was made by Council Member Gilbreath, seconded by Council Member DeLeon to pass Resolution No. 2004-RO463 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Council Member Jones recused herself. The next items considered were Items 23A-26. (23.) Resolution No. 2004-RO465 - ITB #04-138/BM— for Relocate Potable Water Distribution Line Ahead of Freeway (Water Utilities Engineering). RESOLUTION NO. R0465 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 to relocate a potable water distribution line ahead of freeway, by and between the City of Lubbock and Rink's Lease Service of Levelland, 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 the City Council this 26th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Victor Kilman Victor Kilman, Purchasing Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 28th day of September, 2004 by and between the City of Lubbock, County of Lubbock, State of Texas, acting by and through Marc McDougal, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Rinks Lease Service, of the City of Levelland, County of Hockley, 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 #04-138/13M — Relocate Potable Water Distribution Line Ahead of Freeway - $1,665,310 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. 271 Regular City Council Meeting September 28, 200 Page 272 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/ Rebecca Garza Secretary APPROVED AS TO CONTENT: /s/ Mike Gilliland Owner's Representative APPROVED AS TO FORM: /s/ Don Vandiver City Attorney CITY OF LUBBOCK, TEXAS (OWNER) /s/ Marc McDougal MAYOR CONTRACTOR: Rink's Lease Service By: /s/ Kip Middleton PRINTED NAME: Kip Middleton TITLE: General Manager ATTEST: Corporate Secretary COMPLETE ADDRESS: Rink's Lease Service /s/ «CorpSecretary» P. O. Box 456 Levelland,Texas 79336 This item was considered following Item 22A. This project is part of the utility relocation process in advance of the Marsha Sharp Freeway Project and involves relocating a large diameter water main along US Highway 82 from 291h Drive to Nashville Avenue. Although this construction is necessary due to the freeway project, and not a maintenance or operational project, there will be an operational savings resultant to this project. A section of the line that will be abandoned due to this project has a history of frequent breaks with substantial overtime and street repair costs. Time for completion of this project is 100 consecutive calendar days and liquidated damages is $1,000 per day. Thirty-seven local contractors were notified of this Invitation to Bid. FISCAL IMPACT: A total of $3,640,000 was appropriated and $2,460,000 is available in project number 9742 (Water Lines Ahead of Marsha Sharp Freeway) for this purpose. Award bid to Rink's Lease Service of Levelland, Texas for 51,665,310. The next item considered was Item 13. Items 23A-26 were moved from consent agenda to regular agenda and were considered following Item 22B. (23A.) Resolution No. 2004-R0470 - BID #001-04/VK— for South Lubbock Drainage Improvements Project Package #1 — Main Trunk Line (Storm Water). 272 Regular City Council Meeting September 28, 200 Page 273 RESOLUTION NO.2004-RO470 WHEREAS, the City of Lubbock is contemplating construction of a storm water drainage facility in the City; and WHEREAS, the City of Lubbock has received multiple bids to its Invitation to Bid regarding such project; and WHEREAS, the City of Lubbock is required to award the bid to the lowest responsible bidder; NOW, THEREFORE, BE IT RESOLVED 13Y THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock, after considering the experience, manpower, equipment, supervisory abilities, business judgment, efficiency, reliability, reputation, safety record, and capacity to perform the work of the bidders, finds that the lowest responsible bidder for Invitation to Bid Number 001-04NK is Utility Contractors of America, Ltd. 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 the Contract regarding Invitation to Bid Number 001-04/VK, by and between the City of Lubbock and Utility Contractors of America, Ltd., and any other related documents. Said Contract is attached hereto as Exhibit "A" and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 26th day of September, 2004 ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Victor Kilman Victor Kilman, Purchasing Manager APPROVED AS TO FORM: /s/ Richard K. Casn_er Richard K. Casner First Assistant City Attorney /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR CONTRACT STATE OF TEXAS § COUNTY OF LUBBOCK § THIS AGREEMENT, made and entered into this 28th day of September, 2004, by and between the City of Lubbock, County of Lubbock, State of Texas, acting by and through Marc McDougal, Mayor, thereunto authorized to do so, hereinafter referred to as OWNER, and Utility Contractors of America, Ltd., of the City of Wolfforth, 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 #001-04NK — South Lubbock Drainage Improvements Project — Package #1 (Main Trunk Line) - $25,699,455.50 273 Regular City Council Meeting September 28, 200 Page 274 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. CITY OF LUBBOCK, TEXAS (OWNER) By: /s/ Marc McDougal Mayor ATTEST: /s/ Rebecca Garza City Secretary APPROVED AS TO CONTENT: /s/ Larry Hertel Owner's Representative APPROVED AS TO FORM: /s/ lohn M Knight City Attorney UTILITY CONTRACTORS OF AMERICA, INC. By: /s/ Ty Lane PRINTED NAME: Ty Lane TITLE: GM COMPLETE ADDRESS: Utility Contractors of America, Ltd. 972 Highway 62 Wolfforth, Texas 79382 ATTEST: /s/ «CorpSecretar_y>> Corporate Secretary The City of Lubbock opened bids on Project #293-90141, ITB #001-04NK, Package #1 Main Trunk Line of the South Lubbock Drainage Project on August 3, 2004. The bidders and bid amounts were as follows: Oscar Renda Contracting — Roanoke, Texas $23,487,764.00 Utility Contractors of America — $25,699,455.50 Wolfforth, Texas S. J. Louis — Fort Worth, Texas $28,835,185.50 The Texas Local Government Code Section 252.043(d)(1) states that for drainage projects that the contract must be awarded to the lowest responsible bidder. Section 252.0435 also states that the safety record of the bidder can be considered. For this project, Bid #001-04NK, the Notice to Bidders, paragraph 31— Qualifications of Bidders is attached and states that the evaluation of the bidder's qualifications shall include the following: a. The ability, capacity, skill, and financial resources to perform the work or provide the service required. b. The ability of the bidder to perform the work or provide the service promptly or within the time specified, without delay or interference. C. The character, integrity, reputation, judgment, experience, and efficiency of the bidder. d. The quality of performance of previous contracts or services. 274 Regular City Council Meeting September 28, 200 Page 275 e. The safety record of the Contractor and proposed Sub -Contractors. Subsequent to the bids having been opened, staff began their due diligence in evaluating the bids by requesting the information contained in the Notice to Bidders from Oscar Renda Contracting and from Utility Contractors of America, Inc. Staff were able to obtain the required information including bidder's experience, their proposed Project Manager (Superintendent), their safety record, and their capacity to perform the proposed job. Staff developed a list of questions for the reference checks incorporating questions that would give the City information regarding manpower, supervisory record and requirements, efficiency, reliability, and the overall reputation of the Contractor and then performed the reference checks. Staff investigations of past performance on Oscar Renda Contracting concluded that there are some concerns regarding Oscar Renda Contracting based on reference checks. Staff found from discussions with representatives from other construction projects, that there have been poor quality of workmanship in laying pipe along with some safety, environmental, and owner concerns over complying with requests and issues of the public, including traffic control and access to property. Staff met with representatives, including from Oscar Renda Contracting, to get their side on each of these issues. Oscar Renda Contracting also provided several letters of reference directly to the City Council. Staff feels that some of the concerns have been resolved regarding safety issues and Oscar Renda Contracting gave us their interpretation of what had occurred regarding environmental concerns on a current project. Nothing was addressed regarding the owner concerns over complying with requests of the community for traffic control and access. Staff checked references on Utility Contractors of America and asked the same questions of their references. Based on their references, there were no issues raised in any area of performance. The South Lubbock Drainage Project — Package #1 Main Trunk Line includes the installation of approximately 10 miles of pipe with depths greater than 45' in places. This is an extremely high profile project, and there are a lot of things that will be required of the Contractor, including environmental permits with regulatory agencies, working with the public and with private owners of real property and lakes. Safety will be a concern for everyone involved in the project, and for the citizens of the City -of Lubbock, including the public traveling in the vicinity of the proposed work. FISCAL IMPACT: The total construction budget for the South Lubbock Drainage Project is currently $33,800,000. The Engineer's estimate for the construction of Phase: I — Main Trunk Line is $26,000,000 that is well within the current budget for the entire project. The bids are within the Engineer's estimate for this portion of the project. Staff investigation concludes that both Oscar Renda Contracting and Utility Contractors of America, Inc., are financially capable of performing the job, as well as having access to the proper equipment and manpower. Staff, however, still has concerns over the issues raised by the original reference checks on Oscar Renda Contracting regarding responsiveness to safety concerns, environmental issues, and owner requests to comply with the community concerns over traffic control and access. Staff recommended that the City Council award this project to the lowest responsible bidder. Motion was made by Mayor Pro Tem Martin, as follows: "that after considering the experience, manpower, equipment, supervisory abilities, business judgment efficiency, reliability, reputation, safety record, and capacity to perform the work of the bidders that Utility Contractors of America is the lowest reasonable responsible bidder for Bid No. 001- 275 Regular City Council Meeting September 28, 200 Page 276 04NK and due to such finding, move to award Bid No. 001-04NK to Utility Contractors of America, and to pass Resolution No. 2004-R0470." Motion was seconded by Council Member Boren "to award to a local community business." After the following discussion, motion carried: 4 Yeas, 3 Nays. Council Members DeLeon, Gilbreath, and Price voted Nay. Council Member Gilbreath stated that this is a situation where we have a twenty plus, million dollar project that the low bidder has come in about $2.2m less than the second low bidder. He asked Marsha Reed, Civil Engineer, if the low bidder has done any work here in the City before. Ms. Reed stated not with her department. Council Member Gilbreath stated that in doing due diligence on this bidder from cities where they had done work, Ms. Reed got mixed reviews. Some of the cities had "heartburn" in terms of safety record, change orders, etc.; however when doing some checking with management in those cities, she found that they were recommending the same company; giving them a good review. Ms. Reed stated this was correct, and this came from letters furnished by Oscar Renda Contracting. Council Member Gilbreath stated that he understood the following: that even after having conversations with the lower bidder, Ms. Reed still had some concerns, and also that she and her department have problems with leaving $2.2m on the table. Due to these concerns, the legal department has come up with a document proposing that if City Council chooses Renda as the awardee of this project, they will need to sign the document. Ms. Reed stated this was correct. First City Attorney Richard Casner stated, "This document was a sworn statement for Mr. Renda to execute that acknowledges the terms of the Invitation to Bid, as well as the specifications. It does not alter or modify any terms of the contract or the ITB or the specifications, but essentially acknowledges the material terms of the contract documents, including the thoroughness of the specifications, and then goes outside of the record to a limited extent for an acknowledgement that the company had an ample opportunity to ask questions and investigate the project site." (The signed Sworn Statement was passed to each Council Member). Council Member Gilbreath asked Ms. Reed, if because Renda had signed the Sworn Statement, her recommendation was to award the bid to Renda. Ms. Reed stated that she still had some reservations, but that was her recommendation. Council Member Gilbreath stated that he had a conversation with the engineer, who he assumed would oversee this job, and he felt like he could work with Renda. Council Member Gilbreath stated he just could not see leaving $2.2m on the table. He stated that if Renda was the successful bidder, they would be under a microscope and he could in good conscience go along with Renda. Mayor Pro Tem Martin asked Ms. Reed and Victor Kilman, Purchasing Agent, if they recalled another bid for construction being awarded where the City has required the supposed low bidder to sign an affidavit under oath that they are telling the truth. Both said they had not. Mayor Pro Tern Martin stated that the issue here is the responsibility of the low bidder, and the utility engineers question that, and he felt the fact that it is being proposed that the low bidder sign an affidavit under oath, that they are telling the truth, indicated to him a lack of responsibility. Mayor McDougal stated that his concern was that staff has some concerns over the low bidder. He had a bigger concern with throwing out all bids and starting over, in light of what construction materials had done in the last thirty days. They have literally gone through the roof, and continue to go up. Even with staff s recommendation in the backup, they are making no recommendation, other than we award to the lowest responsible bidder. 276 Regular City Council Meeting September 28, 200 Page 277 Ms. Reed stated that the memo given to City Council today still said "with reservations", but if they are willing to sign that sworn affidavit, her recommendation would be to go with Oscar Renda. Council Member Jones asked if the memo or agreement came about because of conflicting information received on both companies. Ms. Reed stated it came about because of the reference check done on Oscar Renda; however, they provided letters from people stating they were capable of doing the job. Council Member Price stated it was hard for him to look at the affidavit as being one that would say that an individual is not reputable. He stated that when you make a sworn affidavit, you put your reputation on the line. This may be the first time this has occurred, but $2m is a lot to leave on the table. Council Member DeLeon asked if there wasn't a memo stating that whatever company was selected, they would have to sign the sworn statement. Ms. Reed stated that in order to be fair at this point, yes. Council Member Boren stated that he felt he would go for the local company, Utility Contractors of America, because he didn't feel that the affidavit would make that much difference. Mayor Pro Tern Martin asked City Manager Fox in his long career of city management, how often he had seen this kind of an affidavit done. City Manager Fox answered "I've seen it once. Here." Mayor Pro Tern Martin also asked City Manager Fox if he had any prior experience with either of these companies. City Manager Fox stated that when he was with the City of San Antonio, the Renda Contracting Company had several projects with the San Antonio Water System. In making reference checks, it was pointed out to him there were several change orders that were proposed during those particular contracts. When he asked people if their names could be used in affirming that, they refused. Mayor Pro Tern Martin asked if he thought they were afraid of getting sued. City Manager Fox stated that he thought so. He also stated that if Renda was awarded this contract, they would be carefully monitored and there won't be any change orders; unreasonable change orders. ORDINANCES FOR PASSAGE SECOND READING (24.) ORDINANCE NO. 2004-00099—Amending Ordinance No. 2001--00109, which defines the guidelines of the Deferred Compensation Plan for City employees, to modify the ordinance to conform to federal law (Human Resources) (second and final reading). ORDINANCE NO.2004-00099 AN ORDINANCE AMENDING ORDINANCE NO. 2001-00109 OF THE CITY OF LUBBOCK, WHICH ORDINANCE PROVIDED PARTICULARS OF A DEFERRED COMPENSATION PLAN FOR CITY EMPLOYEES, AND MODIFYING SAID ORDINANCE TO CONFORM TO FEDERAL LAW. Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to pass on second and final reading of Ordinance No. 2004•-00099 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (25.) ORDINANCE NO. 2004-00100—Amending Chapter 9 of the Code of Ordinances of the City of Lubbock, Texas, by adding Article IV, Sections 9-40 through 9-46 to the Code of Ordinances of the City of Lubbock by providing installation guidelines and requirements for commercial properties of one acre, or less, and providing installation and cost recovery guidelines for electric distribution service for commercial properties of more than one acre; providing a savings 277 Regular City Council Meeting September 28, 200 Page 278 clause and providing for publication (LP&L) (second and final reading). ORDINANCE NO. 2004-00100 AN ORDINANCE AMENDING CHAPTER 9 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS BY ADDING ARTICLE IV, SECTIONS 940 THROUGH 9-46 TO THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK BY PROVIDING INSTALLATION GUIDELINES AND REQUIREMENTS for COMMERICIAL PROPERTIES OF ONE (1) ACRE OR LESS AND PROVIDING FOR INSTALLATION AND COST RECOVERY GUIDELINES FOR ELECTRIC UTILITY DISTRIBUTION SERVICE FOR COMMERCIAL PROPERTIES OF MORE THAN ONE (1) ACRE; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Motion was made by Mayor Pro Tem Martin, seconded by Council Member Price to pass on second and final reading of Ordinance No. 2004-00100 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (26.) ORDINANCE NO. 2004-00 10 1 —Amending Chapter 6 of the Code of Ordinances of the City of Lubbock, Texas, by amending Article V, Section 2-256 by providing for an increase in the rated capacity of main panels for service entrances installed by the public utility; providing a savings clause and providing for publication (LP&L) (second and final reading). ORDINANCE NO. 2004-00101 CONSIDER AN ORDINANCE AMENDING CHAPTER 6 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, BY AMENDING ARTICLE V, SECTION 2-256 BY PROVIDING FOR AN INCREASE IN THE RATED CAPACITY OF MAIN PANELS FOR SERVICE ENTRANCES INSTALLED BY THE PUBLIC UTILITY; PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Motion was made by Mayor Pro Tem Martin, seconded by Council Member Price to pass on second and final reading Ordinance No. 2004-00101 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. The next items considered were Items 30-42. PUBLIC HEARINGS 10:40 A. M. Zoning (27.) Ordinance No. 2004-0 - ZONE CASE NO. 2926-A (south of 981h Street and west of Quaker Avenue): Hold a public hearing to consider request of Ken Flagg (for Lakeridge Estates of Lubbock, LLP) for a zoning change from R-1 Specific Use to C-2 on an unplatted 4-acre tract out of Section 16, Block E2, first reading). This item was continued. The applicant is redesigning the subdivision to allow a four -acre parcel to be joined to the existing commercial along 98ch Street. Adjacent land uses: North — vacant commercial South — proposed residential East — proposed commercial West — proposed residential The request is reasonably consistent with the policy of the Comprehensive Land Use Plan regarding commercial development at the corner of two major thoroughfares. Noted in previous cases on this intersection, the realignment of both Quaker Avenue and 98`h Street to place most of the playa lake on the Lakeridge corner skewed the typical placement of ten acre tracts on each of the four corners at the intersection. The northwest corner is in the playa lake and will have no commercial without an extensive cut and fill process. The northeast corner allotment of NM Regular City Council Meeting September 28, 200 Page 279 commercial zoning was reduced to about two acres because of demand for residential north of 98`h Street. Because of commercial on Quaker Avenue south of 98`h Street that existed prior to annexation of the area, the southeast and southwest corners are distorted in size, but remain equal to each other on the south end. The four -acre addition to the existing 8.78 acres will constitute nearly thirteen acres within the Lakeridge project. An additional sixteen acres is anticipated on the balance of the southwest corner, although some of it may wind up being residential or a church tract. The approximate total is 29 acres for the southwest corner. The southeast corner has approximately 18 acres already zoned for commercial. All total, the objective of forty acres per intersection is not out of reason. The potential total is 49 acres. One adjacent resident withdrew a letter of opposition after learning that the subdivision will be redesigned and no access from the residential will be allowed to the commercial area. The proposal will not appreciably increase the impact of development on the corner or the thoroughfare system. The Planning Commission recommended the request subject to the following condition (taken from Ordinance for the 8+ acres adjoining on the north): 1. On the C-3 portion, a site plan, including building elevations showing materials, color and texture, shall be submitted and approved by the Planning and Zoning Commission prior to the issuance of a building permit. FISCAL IMPACT: Not applicable. Staff supported the recommendation of the Planning Commission. Mayor McDougal requested that this item be continued until the next council meeting. Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to continue Item 27 until the next council meeting. Motion carried: 7 Yeas, 0 Nays. (28.) Ordinance No. 2004-00110 - ZONE CASE NO. 3017 (6130 Avenue P): Hold a public hearing to consider request of Lloyd David Headrick for a zoning change from A-2 to R-1 Specific Use for garden homes on Lot 14, Block 20, Vandelia Village, (first reading). ORDINANCE NO.2004-00110 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 3017; A ZONING CHANGE FROM A-2 TO R-1 SPECIFIC USE FOR GARDEN HOMES ON LOT 14, BLOCK 20, VANDELIA VILLAGE, LUBBOCK, TEXAS; PROVIDING A PENALTY, PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor McDougal opened the public hearing at 10:41 a. in. No one appeared on behalf of Lloyd David Headrick. No one appeared in opposition. Mayor McDougal closed the hearing at 10:41 a. m. The applicant has built several dwellings in a garden home style adjacent to this property as single family, and is requesting the change because the A-2 District does not allow construction of single-family dwellings. Adjacent land uses: North — single family South — apartments East — apartments West — single family 279 Regular City Council Meeting September 28, 200 Page 280 The proposal is consistent with the Comprehensive Land Use Plan. This particular lot is not in line with the larger A-2 area to the south. The request has no impact on the thoroughfare system. The Planning Commission recommended approval of the request. FISCAL IMPACT: Not applicable. Staff supported the recommendation of the Planning Commission. Motion was made by Council Member Boren, seconded by Council Member Price to pass on first reading Ordinance No. 2004-00110 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (29.) Ordinance No. 2004-00111 - ZONE CASE NO. 3018 (from 61h to 8`h Streets, between Avenues W and X): Hold a public hearing to consider request of McConstruction Ltd. (for McCanton Wood) for a zoning change from R-2, A-2, and R-3 to A-3 Specific Use for apartments on Blocks 126 and 127, Overton Addition, first reading). ORDINANCE NO. 2004-00111 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 7084 AND THE OFFICIAL MAP OF THE CITY OF LUBBOCK MAKING THE FOLLOWING CHANGES: ZONE CASE NO. 3018; A ZONING CHANGE FROM R-2, A-2 AND R-3 TO A-3 SPECIFIC USE FOR APARTMENTS ON BLOCKS 126 AND 127, OVERTON ADDITION, LUBBOCK, TEXAS; SUBJECT TO CONDITIONS; PROVIDING A PENALTY, PROVIDING A SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION. Mayor Pro Tern Martin opened the public hearing at 10:42 a. m. No one appeared on behalf of McCanton Wood. No one appeared in opposition. Mayor Pro Tern Martin closed the hearing at 10:42 a. m. The request is a major block within the Overton redevelopment area. The project will accommodate 192 units with 576 bedrooms. Adjacent land uses: North — vacant South — apartments East — vacant West — apartments The project is in accord with the Comprehensive Land Use Plan as amended for the redevelopment effort. The project also meets the objectives of the zoning policy. The apartments are adjacent to the streets and the parking occupies the core of the parcel, continuing the objective to create the look and feel of the overall "new urbanism" concept that is the basis for the entire redevelopment. The project is providing an excess of parking with regard to the requirements of the Code. Impact on the street system will not be greater than anticipated for the entire redevelopment. The project is proposed as A-3 with a Specific Use permit. The Planning Commission recommended the request with the following conditions: 1. A decrease in setback (from 15 feet to 10 feet on 6th and 8th Streets and to 14 feet on Avenue X). 2. Tied to the proposed site plan. 3. The proposed trash enclosures shall be within a solid enclosure (on three sides). 4. The roofs shall be a tile product compatible with other projects in Overton and the walls adjacent to 6th Street, Avenue X and 8th Street shall be either stucco or masonry - exclusive of hardy plank. Regular City Council Meeting September 28, 200 Page 281 The fence on 6th and 8th Streets adjacent to the parking lots shall be masonry or a combination of masonry columns and wrought iron. A fence - the materials shall be chosen by the developer - shall be located on the east line. 5 rel FISCAL IMPACT: Not applicable. Staff supported the recommendation of the Planning Commission. _ Motion was made by Council Member Boren, seconded by Council Member Gilbreath to pass on first reading Ordinance No. 2004-00111 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Mayor McDougal recused himself. The next item considered was Work Session Item 43. At this time, City Council recessed to Work Session. FINANCE Items 30-42 were considered following Item 26 and followed this discussion. Referencing Items 30-32, Vince Vialle, First Southwest, made statements concerning the following three issues: 1) $22,600,000 General Obligation Refunding Bond issue whereby we are refunding seven prior issues of the City's debt. The rationale for the refunding is we are refunding at a lower interest rate and trying to achieve a savings for the City in debt service by doing this. We were able to save the City $875,000 in interest cost. The interest rate on the refunding issues is 3.58%. 2) $2,025,000 General Obligation Bond issue, which is a twenty-year maturity. This is off of the recent authorization we received from the City. The interest rate on this issue is 4.09%. 3) $3,100,000 Certificate of Obligation issue. It also is a twenty-year issue and the interest on this is 4.07%." He stated that all three of these issues are insured; so they are AAA rated. These were negotiated sales and the underwriters on these transactions were A. G. Edwards, Estrada Hinojosa and RBC Dain Rauscher. City Manager Fox requested that Mr. Vialle cover the rating agencies' observations. Mr. Vialle stated that on September 131h and 141h, some of the Council Members, staff and himself had meetings with rating analysts. In Mr. Vialle's 25-year history of bond ratings, they were some of the best meetings he had been involved with. The ratings received for the City were as follows: Moody's —A I with a stable outlook. Standard & Poors - AA minus with a stable outlook Fitch Investor Service — AA minus rating The previous outlooks were negative. Regarding LP&L, Moody's gave an A3 rating with a stable outlook. (30.) Ordinance No. 2004-00105 authorizing the issuance of City of Lubbock, Texas General Obligation Bonds, Series 2004, and all necessary documents related to the issuance first and only reading). 281 Regular City Council Meeting September 28, 200 Page 282 ORDINANCE NO. 2004-00105 AN ORDINANCE authorizing the issuance of "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2004"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval of a Paying Agent/Registrar Agreement and a Purchase Contract and the approval and distribution of an Official Statement pertaining thereto; and providing an effective date. On June 9, 2004, City Council approved the first step in the issuance process. Resolution No. 2004-R0281, dated June 9, 2004 was to approve and authorize publication of Notice of Sale with respect to the issuance of the General Obligation Bonds. Resolution No. 2004-R0385, dated August 16, 2004 postponed the issuance of this debt obligation until September 28, 2004. Senate Bill 1759 of the 77`h Legislative Session amends Subchapter B, Chapter 1201, of the Texas Government Code under Section 1201.028(3) allowing the authorization of a public security with only one reading of the ordinance. Therefore, this will be the only reading of this ordinance that authorizes the issuance of these bonds. Upon approval of this ordinance, the City will sell these bonds on a negotiated basis on September 28, 2004. On September 23, 2004, the City and First Southwest, the City's Financial Advisor, negotiated a purchase price for the bonds with the City's chosen underwriters (A. G. Edwards and Estrada Hinojosa). City Council will be asked to award the bonds, as well as approve the reading of the ordinance, and make final approval of all necessary documents related to the issuance at this meeting. FISCAL IMPACT: The amount of this bond issue totals $2,025,000. The interest cost will be determined at the time of the bond issuance. As this action is necessary to proceed with the bond issuance, staff recommended passage of this ordinance. Motion was made by Council Member Gilbreath, seconded by Council Member Jones to pass on the first and only reading of Ordinance No. 2004-00105 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (31.) Ordinance No. 2004-00106 authorizing the issuance of City of Lubbock, Texas, Tax and Waterworks System Surplus Revenue Certificates of Obligation, Series 2004, and all necessary documents related to the issuance first and only reading). ORDINANCE NO. 2004-00106 AN ORDINANCE authorizing the issuance of "CITY OF LUBBOCK, TEXAS, TAX AND WATERWORKS SYSTEM SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2004"; specifying the terms and features of said certificates; providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a lien on and pledge of the net revenues from the operation of the City's Waterworks System; and resolving other matters incident and related to the issuance, sale, security, payment and delivery of said certificates, including the approval of a Paying Agent/Registrar Agreement and a Purchase Contract and the approval and distribution of an Official Statement pertaining thereto; and providing an effective date. On June 9, 2004, City Council approved the first step in the issuance process. Resolution No. 2004-R0276, dated June 9, 2004 was to approve and authorize publication of Notice of Intent to Issue and Notice of Sale with respect to the issuance of the Certificates of Obligation. Resolution No. 2004-R0385, dated August 16, 2004 postponed the issuance of this debt obligation until September 28, 2004. 282 Regular City Council Meeting September 28, 200 Page 283 Senate Bill 1759 of the 77t' Legislative Session amends Subchapter B, Chapter 1201, of the Texas Government Code under Section 1201.028(3) allowing the authorization of a public security with only one reading of the ordinance. Therefore, this will be the only reading of this ordinance that authorizes the issuance of these bonds. Upon approval of this ordinance, the City will sell these bonds on a negotiated basis on September 28, 2004. On September 23, 2004, the City and First Southwest, the City's Financial Advisor, will negotiate a purchase price for the bonds with the City's chosen underwriters (A. G. Edwards and Estrada Hinojosa). City Council will be asked to award the bonds, as well as approve the reading of the ordinance, and make final approval of all necessary documents related to the issuance at this meeting. FISCAL IMPACT: The amount of this bond issue totals $3,100,000. The interest cost will be determined at the time of the bond sale, dependent upon market conditions on the; sale date. As this action is necessary to proceed with the bond issuance, staff recommended passage of this ordinance. Motion was made by Council Member Gilbreath, seconded by Council Member Jones to pass on the first and only reading of Ordinance No. 2004-00106 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (32.) Ordinance No. 2004-00107 authorizing the issuance of City of Lubbock, Texas, General Obligation Refunding Bonds, Series 2004, and all necessary documents related to the issuance, including providing for the redemption of certain outstanding obligations of the City first and only reading). ORDINANCE NO. 2004-00107 -- AN ORDINANCE authorizing the issuance of "CITY OF LUBBOCK, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2004"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement, a Purchase Contract and a Special Escrow Agreement and the approval and distribution of an Official Statement; providing for the redemption of certain outstanding obligations of the City; and providing an effective date. The City of Lubbock has previously issued, sold, and delivered, and there are currently outstanding, obligations totaling in principal an amount of $23,300,000, described as follows: 1. City of Lubbock, Texas, General Obligation Bonds, Series 1993, scheduled to mature on February 15 in the year 2011, in principal amount of $960,000; and 2. City of Lubbock, Texas, Combination Tax & Sewer System Subordinate Lien Revenue Certificates of Obligation, Series 1993, scheduled to mature on February 15 in each of the years 2007 through 2014, and aggregating in principal amount of $5,745,000; and 3. City of Lubbock, Texas, Tax & Waterworks System (Limited Pledge) Revenue Certificates of Obligation, Series 1993, scheduled to mature on February 15 in each of the years 2007 through 2011, and aggregating in principal amount of $375,000; and 4. City of Lubbock, Texas, General Obligation Bonds, Series 1995, scheduled to mature on February 15 in each of the years 2007 through 2015, and aggregating in principal amount of $2,115,000; and 283 Regular City Council Meeting September 28, 200 Page 284 5. City of Lubbock, Texas, General Obligation Bonds, Series 1995-A, scheduled to mature on February 15 in each of the years 2008 through 2014, and aggregating in principal amount of $2,275,000; and 6. City of Lubbock, Texas, Tax & Waterworks System (Limited Pledge) Revenue Certificates of Obligation, Series 1995, scheduled to mature on February 15 in each of the years 2008 through 2014, and aggregating in principal amount of $3,500,000; and 7. City of Lubbock, Texas, Tax & Waterworks System Surplus Revenue Certificates of Obligation, Series 1999, scheduled to mature on February 15 in each of the years 2011 through 2015, and aggregating in principal amount of $6,705,000; and 8. City of Lubbock, Texas, General Obligation Bonds, Series 2000, scheduled to mature on February 15 in each of the years 2012 through 2015 and aggregating in principal amount $1,625,000; This refunding will be issued in an amount totaling approximately $23,300,000 and further provide a nominal savings of approximately $800,000. The City will sell these bonds on a negotiated basis. At the time of sale, the City will negotiate a purchase price for the bonds with the City's chosen underwriters. The chosen Underwriting Syndicate for this issue includes the firms of A. G. Edwards, RBC Dain Rauscher, Inc. and Estrada Hinojosa & Company, Inc. Senate Bill 1759 of the 77t' Legislative Session amends Subchapter B, Chapter 1201, of the Texas Government Code under Section 1201.028(3) allowing the authorization of a public security with only one reading of the ordinance. Therefore, this will be the only reading of this ordinance that authorizes the issuance of these bonds. City Council will be asked to award the bonds, as well as approve the reading of the ordinance, and make final approval of all necessary documents related to the issuance at this meeting. FISCAL IMPACT: The exact par amount of these bonds and the interest cost will be determined at the time of the bond issuance. As this action is necessary to proceed with the bond issuance, staff recommended passage of this ordinance. Motion was made by Council Member Gilbreath, seconded by Council Member Jones to pass on the first and only reading of Ordinance No. 2004-00107 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (33.) ORDINANCE NO. 2004-00103—Approving and adopting a budget for FY 2004-2005 for the City of Lubbock (Finance) (second and final reading). ORDINANCE NO. 2004-00103 AN ORDINANCE APPROVING AND ADOPTING A BUDGET FOR FISCAL YEAR 2004-05; PROVIDING FOR NECESSARY TRANSFERS TO FUNDS BETWEEN ACCOUNTS AND DEPARTMENTS, IF REQUIRED; APPROPRIATING FUNDS FOR THE 2004-05 FISCAL YEAR BUDGET OF THE CITY OF LUBBOCK; ESTABLISHING CIVIL SERVICE CLASSIFICATIONS AND POSITIONS; AND PROVIDING FOR A SAVINGS CLAUSE. This is the second reading of the ordinance adopting the budget for the City of Lubbock for FY 2004-2005. The budget ordinance must be considered first, followed by the ordinance on the tax rate. 284 Regular City Council Meeting September 28, 200 Page 285 FISCAL IMPACT: Described in the budget document. Staff recommended approval. Motion was made by Mayor Pro Tern Martin, seconded by Council Member Gilbreath to pass on second and final reading of Ordinance No. 2004-00103. Motion carried: 7 Yeas, 0 Nays. (34.) ORDINANCE NO. 2004-00102—Setting the tax rate and levying a tax upon all property subject to taxation within the City of Lubbock, Texas for FY 2004-2005 (Finance) (second and final reading). ORDINANCE NO. 2004-00102 AN ORDINANCE SETTING THE TAX RATE AND LEVYING A TAX UPON ALL PROPERTY SUBJECT TO TAXATION WITHIN THE CITY OF LUBBOCK, TEXAS, FOR THE YEAR 2004; APPORTIONING SAID LEVY AMONG THE VARIOUS FUNDS AND ITEMS FOR WHICH REVENUE MUST BE RAISED; FIXING THE TIMES IN WHICH SAID TAXES SHALL BE PAID AND ASSESSING PENALTY AND INTEREST FOR NONPAYMENT OF SUCH TAXES WITHIN THE TIME PROVIDED. This is the second reading of the ordinance adopting and levying the tax rate fbr the City of Lubbock for FY 2004-2005. The budget ordinance must be considered first, followed by the ordinance adopting the levying of a tax rate. A property tax rate decrease is proposed. A decrease of .086 is proposed, decreasing the property tax from 0.5457 to 0.4597 per $100 valuation. The Chief Appraiser of the Lubbock Central Appraisal District submitted the certified net taxable value of $8,605,424,748. The tax rate is distributed as follows: Debt Service $0.09496 General Fund M&O $0.33474 Economic Development $0.03000 FISCAL IMPACT: Described in the operating budget. Staff recommended approval. Council Member Jones asked City Manager Fox where Lubbock ranked on our tax rate across the State of Texas. City Manager Fox stated staff would get that information to Council. Motion was made by Council Member Gilbreath, seconded by Council Member Price to pass on second and final reading Ordinance No. 2004-00102 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (34A.) Ordinance No. 2004-00108 - an emergency ordinance amending the FY 03-04 budget by forgiving a loan in the Airport Fund from Solid Waste and revising line item budgets for Market Lubbock Inc. and the Convention and Visitors Bureau first and only reading). ORDINANCE NO. 2004-00108 AN EMERGENCY ORDINANCE MAKING CHANGES IN THE FY 2003-04 BUDGET OF THE CITY OF LUBBOCK FOR MUNICIPAL PURPOSES. A loan from the Solid Waste Fund to the Airport Fund in the amount of $1,036,740 will not be paid back to Solid Waste beginning in FY 03-04. The Airport Fund will begin using the no longer needed funding to pay back this loan for parking lot improvements. Changes to the Market Lubbock Inc. and Convention and Visitors Bureau line -item budgets need to be amended to remain in compliance with the contracts with the City of Lubbock. No additional funding is being requested. Funding is being moved between several line -item accounts. 285 Regular City Council Meeting September 28, 200 Page 286 Motion was made by Mayor Pro Tern, seconded by Council Member Gilbreath to pass on the first and only reading of Ordinance No. 2004-00108 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (35.) Resolution No. 2004-RO471 providing for the prepayment of certain outstanding obligations of the City, and resolving other matters incident and related to the prepayment of such obligations. RESOLUTION NO.2004-RO471 A RESOLUTION providing for the prepayment of certain outstanding obligations of the City; and resolving other matters incident and related to the prepayment of such obligations. WHEREAS, pursuant to an ordinance passed and adopted by the City Council of Lubbock, Texas, the following described obligations were duly authorized and are currently outstanding to wit: City of Lubbock, Texas, Public Property Financial Contractual Obligations, Taxable Series 1991, dated May 15, 1991, maturing on February 15 in each of the years 2006 and 2011, and aggregating in installment contract amount $370,000; and WHEREAS, the above identified obligations were authorized, issued, sold and delivered subject to the right and authority of the City to prepay the same prior to maturity, as provided in the authorizing ordinance and in said obligations; and WHEREAS, the City Council hereby finds and determines that obligations of the such series should be prepaid prior to their maturities on the date and in the manner hereinafter provided and in accordance with the requirements prescribed therefor and notice of prepayment of such obligations should be approved and authorized to be given at this time by the Council; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1: The obligations of that series known as "City of Lubbock Texas, Public Property Finance Contractual Obligations, Taxable Series 1991", dated May 15, 1991, maturing in the years 2006 and 2011, and aggregating in amount $370,000, shall be prepaid and the same are hereby called for redemption on November 1, 2004, at the price of par and accrued interest to the date of prepayment. The City Secretary is hereby authorized and directed to file a copy of this resolution, together with a suggested form of notice of prepayment to be sent to contracting parties with JPMorgan Chase Bank, Dallas, Texas (successor paying agent/registrar to Texas Commerce Bank, National Association) in accordance with the prepayment provisions applicable to such obligations; such suggested form of notice of prepayment being attached hereto as EXHIBIT A and incorporated herein by reference as a part of this resolution for all purposes. SECTION 2: The City manager and the City Secretary are hereby authorized and directed to make all arrangements necessary to notify the contracting parts of the City's decision to prepay such obligations on the date and in the manner herein provided and in accordance with the ordinance authorizing the issuance of the obligations. PASSED AND ADOPTED, this September 28.2004. CITY OF LUBBOCK, TEXAS /s/ Marc McDougal Mayor ATTEST: /s/ Rebecca Garza City Secretary 286 Regular City Council Meeting September 28, 200 Page 287 On April 26, 1991, the City issued City of Lubbock Public Property Finance Contractual Obligations, Taxable Series 1991 to fund the acquisition of a leasehold interest in an Omnimax projection and audiovisual system for the Omnimax Theater in the Science Spectrum Exhibition Hall/Auditorium that was constructed by the City. These bonds were issued as taxable obligations of the City, and carry an interest rate between 9.000% and 9.125%. At the time of issuance, the City reserved the right to prepay the Contractual Obligations having stated maturities on and after February 15, 2006, in whole or in part, on February 15, 2001, or any date thereafter, at the par value plus accrued interest to the call date. The obligations maturing in the years 2006 and 2011, and aggregating in the amount of $370,000, will be prepaid and called for redemption on November 1, 2004, at the price of par and accrued interest to the date of prepayment. The ;resolution authorizes the City Secretary to file a copy of this resolution with J P Morgan Chase Bank, Dallas, Texas (successor paying agent/registrar to Texas Commerce Bank, National Association), in accordance with the prepayment provisions applicable to the obligations. Exhibit A was provided as the form of notice of prepayment to be filed with the paying agent/registrar. FISCAL IMPACT: The par amount of bonds called is $370,000. The accrued interest paid will be determined at the call date. The debt service fund will be the source of funds for prepayment of this obligation. Staff recommended approval of this resolution. Motion was made by Mayor Pro Tem, seconded by Council Member Price to pass Resolution No. 2004-R0471 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (35A.) Ordinance No. 2004-00109 - an emergency ordinance changing the FY 2003-2004 budget of the City of Lubbock to transfer $150,000 from the General Fund balance to Project #9616.9211.30000 Municipal Square Police Department Renovations for emergency boiler replacement first and only reading). ORDINANCE NO. 2004-00109 AN EMERGENCY ORDINANCE MAKING CHANGES IN THE FY2003-2004 BUDGET OF THE CITY OF LUBBOCK TO TRANSFER FUNDS FOR MUNICIPAL PURPOSES This project will supply all material and labor for replacing the two existing boilers at Municipal Square. The two boilers were "red tagged" with the notation "boilers have met their life expectancy and need to be completely rebuilt or replaced" during an Insurance Inspector certification inspection, in accordance with Texas Department of Licensing and Regulation requirements, on September 1, 2004. Annual certification inspections since 1999 have recommended boiler replacement which was considered to have been more than adequate time for actions to be implemented so condemning future use was implemented. Replacement is the only viable financial option, The plans and specifications for replacing the boilers were prepared last year by Fanning, Fanning and Associates, Inc. as part of a change request to the initial project. Once bids were obtained for the boiler replacement, unanticipated project expenditures for asbestos removal in the old Council Chambers created project finances that would not allow the boiler replacement change request to proceed. Approval of the emergency funds is necessary to allow boiler replacement to occur over the next eight weeks so heat can be provided in Municipal Square prior to severe winter conditions. 287 Regular City Council Meeting September 28, 200 Page 288 FISCAL IMPACT: Additional Emergency Project Funding of $150,000 will increase approved funding to $3,218,042 and allow the Municipal Square Police Department Renovation to be completed within approved funding. The General Fund balance at September 30, 2004 will decrease by this amount. Staff recommended approval of this Emergency Ordinance. Motion was made by Council Member Gilbreath, seconded by Council Member Price to pass on the first and only reading of Ordinance No. 2004-00109 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. (3511.) Resolution No. 2004-RO472 authorizing the Mayor to continue to hire police officers until there are two officers for every one thousand people in the city. RESOLUTION NO.2004-RO472 WHEREAS, the City Council of the City of Lubbock finds that it is of paramount importance to insure the health, safety and welfare of the citizens of the City of Lubbock (the "City"); and WHEREAS, the City Council desires to establish the means to decrease the instances of crime within the City; and WHEREAS, developing an increased police presence within the City would be effective in decreasing crime within the City; and WHEREAS, the City Council desires to establish a goal to increase the staffing level of police officers based upon the population of persons in the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council hereby establishes a goal to increase police staffing so that said staffing shall obtain a level of two (2) officers per one thousand (1000) population. City staff is further directed to hire qualified recruits in order to obtain the above -stated goal even if the budgeted limit of 320 police officers is surpassed. In event the budgeted number of officers is surpassed, the City budget shall be amended to reflect any such change. Passed by the City Council this 28th day of September, 2004. /s/ MARC MCDOUGAL MARC McDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Lee Ann Dumbauld Lee Ann Dumbauld, CFO/ACM APPROVED AS TO FORM: /s/ Amy L. Sims Amy L. Sims, Assistant City Attorney The City Council has authorized the Police Department to hire more police officers than are currently allowed in the budget in past years. This year, before the budget is approved, this agreement was put into the form of a resolution for the City Council to adopt. 288 Regular City Council Meeting September 28, 200 Page 289 FISCAL IMPACT: At such time as the FY 2004-2005 budget is exceeded due to recruitment of police officers, staff will present a budget amendment to City Council to provide gap funding for the additional positions. Staff .recommended approval of this resolution. Council Member DeLeon read the following resolution: "WHEREAS, the City Council of the City of Lubbock finds that it is of paramount importance to insure the health, safety and welfare of the citizens of the City of Lubbock (the "City"); and WHEREAS, the City Council desires to establish the means to decrease the instances of crime within the City; and WHEREAS, developing an increased police presence within the City would be effective in decreasing crime within the City; and WHEREAS, the City Council desires to establish a goal to increase the staffing level of police officers based upon the population of persons in the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council hereby establishes a goal to increase police staffing so that said staffing shall obtain a level of two (2) officers per one thousand (1000) population. City staff is further directed to hire qualified recruits in order to obtain the above -stated goal, even if the budgeted limit of 320 police officers is surpassed. In event the budgeted number of officers is surpassed, the City budget shall be amended to reflect any such change." Motion was made by Council Member DeLeon, seconded by Council Member Price to pass Resolution No. 2004-RO472 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. At this time, Mayor Pro Tem Martin left the dais. Risk Management (36.) Resolution No. 2004-RO473 authorizing the Mayor to execute purchase of Inland Marine Insurance Coverage from Great American Insurance Company, Crime Insurance Coverage from Great American Company, and Airport Directors and Officers Insurance Coverage from the Texas Municipal League -Intergovernmental Risk Pool. RESOLUTION NO. 2004-RO473 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 purchase for and on behalf of the City of Lubbock, inland marine insurance coverage by and between Great American Insurance in a total amount of $10,199; AIG Insurance in a total amount of $8,604; airport directors and officers insurance by and between the City of Lubbock and Texas Municipal League in a total amount of $10,504; and pipeline liability insurance coverage by and between the City of Lubbock and Chubb Group in a total amount of $5,150; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Regular City Council Meeting September 28, 200 Page 290 Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City purchased inland marine insurance from Great American Insurance Company for all of its artwork and sound and broadcasting equipment while on premises, on loan to others or in transit, along with coverage for property of others for a total coverage amount of $3,399,631 with a $2,500 deductible. The current year premium is $10,026. The City purchased crime coverage from Great American Insurance Company that includes employee dishonesty and forgery or alteration for a total coverage amount of $100,000 with a $5,000 deductible. The current year premium is $6,880. The City purchased Airport Director's and Officer's insurance coverage from TML-IRP with a total coverage amount of $10,000,000 and a $7,500 deductible. The current year premium is $9,879. For the upcoming fiscal year, the City's Broker of Record (BOR) approached the incumbent companies for a quotation. After receiving their quotations, the BOR was unable to obtain any additional quotations on the inland marine or Airport Director and Officer's policies. Other companies did not believe they could provide competitive pricing. TML-IRP did submit a quotation for crime coverage. Staff recommended that the City retain its coverage with Great American Insurance Company for the same coverage levels at $3,399,631. This is a premium increase of 2% to $10,199. Terrorism coverage is offered for an additional premium of $102; however, it is not recommended that this endorsement be purchased because of low risk at the insured locations. This increased limit more adequately approaches transactional risks. Both carriers quoted the desired expanded limit with a premium of $9,941. The quoted premiums represent an increase of 44% with a coverage increase of 1500%. Staff recommended that the City retain its coverage with Great American Insurance Company for the FY05 coverage period for a premium of $9,941. Staff also recommended that the City retain its coverage at a 7% increase in premiums with TML-IRP for the Airport Director and Officer's coverage for a cost of $10,602. FISCAL IMPACT: The premiums are included in the FY 2004-2005 Risk Fund Operating Budget. Staff recommended purchasing inland marine insurance coverage with Great American Insurance Company for a premium of $10,199, crime insurance with Great American Insurance Company for a premium of 290 Regular City Council Meeting September 28, 200 Page 291 $9,941 and Airport Director's and Officer's insurance with TML-IRP for a premium of $10,602. Motion was made by Council Member Price, seconded by Council Member Boren to pass Resolution No. 2004-RO473 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (37.) Resolution No. 2004-RO474 authorizing the Mayor to execute purchase of Property Insurance Coverage in layers from Lexington Insurance Company, for the Primary $20MM; Westchester Insurance Company (50%) and Commonwealth Insurance Company (50%) for the second $20MM excess of the first $20MM; and RSUI Indemnity Insurance for the remaining $260MM excess of the $40MM above. RESOLUTION NO. 2004-RO474 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 purchase for and on behalf of the City of Lubbock, property insurance coverage, by and between the City of Lubbock and Lexington Insurance, Westchester Insurance, Commonwealth Insurance Company, and RSUI Indemnity Insurance, and related documents. Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City of Lubbock purchases property insurance for all structures for a total value of $312,988,921 and contents valued at $326,138,912, including vehicles and equipment within 500 feet of the real property. The current year's total premium is $613,412 for $300,000,000 blanket coverage with stated values. This includes a $250,000 deductible on all but wind/hail, which carries a $1 % deductible limited to a $250,000 low and a $1,000,000 maximum. Terrorism coverage is included in the premium cost. The current carriers are Lexington Insurance Company for the primary $20,000,000, Westchester Surplus Lines Insurance Company (50%) and Commonwealth Insurance Company (50%) for the second $20,000,000 excess of the first $20,000,000 and RSUI Indemnity Insurance Company for the $260,000,000 excess of the $40,000,000. The property list has been updated for any changes and for replacement cost values. For the upcoming policy year, structures are valued at $415,234,751 and contents at $316,904,462. The City's Broker of Record solicited quotations from nine markets for coverage levels matching the current policies. All carriers solicited are "A" rated by A.M. Best Key Rating Guide. 291 Regular City Council Meeting September 28, 200 Page 292 Responses to quotes are listed below. FY04 Premium FY05 Premium Comments 1. Lexington (ACE) $396.400 $344,866 Primary 20M C Competitive Rate 2. Westchester Surplus $48,506 $41,560 50% of 20M xs. 20M 3. Commonwealth $48,506 $41,560 50% of 20M xs. 20M 4. RSUI Indemnity $120,000 $108,098 Excess of 40M @ Competitive Rate 5. Allianz Insurance Did Not Quote Did Not Quote Declined due to Electric Utility 6. Chubb Custom Did Not Quote Did Not Quote Declined due to Electric Utility Insurance 7. Crum & Forster Did Not Quote Did Not Quote Declined due to Electric Utility 8. IRI Did Not Quote Did Not Quote Could not support requested pricing 9. Wausau I Did Not Quote I Did Not Quote I Could not support 260M layer FISCAL IMPACT: The $536,085 in premiums is budgeted in the FY 2004-2005 Risk Fund Operating Budget. Staff recommended purchasing the property insurance coverage package from Lexington Insurance Company, Westchester Surplus Lines Insurance Company, Commonwealth Insurance Company and RSUI Indemnity Insurance Company for a total policy premium of $536,084.60 for FY 2005. This represents a premium decrease of 14% from the FY 2003-04 amount. Motion was made by Council Member Gilbreath, seconded by Council Member Boren to pass Resolution No. 2004-RO474 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (38.) Resolution No. 2004-RO475 authorizing the Mayor to execute purchase of Excess Liability Coverage from St. Paul Insurance Company. RESOLUTION NO. 2004-RO475 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 purchase for and on behalf of the City of Lubbock, excess liability coverage, by and between the City of Lubbock and St. Paul Insurance Company, in a total amount not to exceed $356,774; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City of Lubbock purchases excess liability insurance for all operations other than airport on one policy form. The current year's total cost is $404,228 for $10,000,000 in coverage with a $250,000 self -insured 292 Regular City Council Meeting September 28, 200 Page 293 (deductible) per claim. The current carrier is St. Paul Insurance retention Company. The City's Broker of Record solicited quotations from four carriers. Quotations were received from: FY05 Pro osed Premium Comments St. Paul (Incwnbent) $468,992@ $IOMM Limit, $250,000 SIR Incl. Terrorism Except Employment Practices Liability w/ a $IMM Limit TML — IRP $705,769 @ 10MM Limit $ 10,000r SIR Incl. All adjusting fees valued at $125,000 annually States Self -Insurers Risk Retention Group $656,401 @ 10MM Limit $n 00,000 S1 sm Princeton Excess and Surplus Lines Insurance $738,629 @ $9,750,000 General, $250,000 SIR Auto and Law Enforcement Does Not Incl. Terrorism Liability, $1,750,000 Public Officials and Employment Practices Liability and $750,000 Sexual Harassment and Sexual Abuse Liability FISCAL IMPACT: The premiums are included in the 2004-2005 Risk Fund Operating Budget. Staff' recommended purchasing insurance coverage from St. Paul Insurance Company for a total policy premium of $468,992 for $10,000,000 in limits for their Excess Liability Coverage for FY 2005. The premium represents an increase of 14% over the FY 2003-2004 level. Motion was made by Council Member Gilbreath, seconded by Council Member Boren to pass Resolution No. 2004-RO475 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (39.) Resolution No. 2004-RO476 authorizing the Mayor to execute purchase of Airport/Non-owned Aircraft Liability Coverage from ACE USA Insurance Company. RESOLUTION NO.2004-RO476 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 purchase for and on behalf of the City of Lubbock, airport/non-owned aircraft liability coverage, by and between the City of Lubbock and ACE USA, in a total amount of $46,465; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary 293 Regular City Council Meeting September 28, 200 Page 294 APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City purchases airport and non -owned aircraft liability insurance separately from its other liability insurance. The current year's policies include a primary $50M Airport Owners Liability with terrorism coverage at $60,715, excess $50M Airport Owners Liability coverage with no terrorism coverage at $25,329 and $50M in Non -owned Aircraft Liability with terrorism coverage at $13,901. There is currently $100M in total liability coverage. The current year's premium is $100,545. The policies have no deductible. The current carrier is ACE USA and the policy expires on 9/30/04. Risk Management requested that the policies be quoted to include a self - insured retention (deductible) in an effort to reduce premiums. Due to the City's outstanding claims history, ACE USA was not willing to offer any savings for the City's willingness to assume a deductible. Normally deductibles are used when there is a claim history problem. The City of Lubbock's Broker of Record solicited quotations from ACE USA and four other carriers. A summary of quotations follows: FY 05 Proposed Premium Comments TML — IRP $37,059 $10,000 per claim deductible/$20M coverage limits. $21,875 $ l OM in terrorism coverage. $26,238 $50M excess policy. TOTAL $85,172 Global Aerospace Did not quote Did not believe they could be competitive AIG Aviation Did not quote Could not meet time frame due to volume of requests for quotations in the underwriting department Phoenix Aviation Managers Did not quote Could not meet time frame due to volume of requests for quotations in the underwriting department During the course of obtaining quotations, the question was raised regarding the airport functions being governmental in nature and what kind of losses would require coverage greater than the $500,000 tort limits. The City Attorney's office researched this and they believe except for employment, civil rights issues and proprietary functions such as air shows, that all liability falls within the limits and functions of the Tort Claims Act. Because of this fact, staff recommended that the City purchase airport liability and non -owned aircraft liability with $50M limits at a premium of $47,300 from ACE USA. FISCAL IMPACT: The $47,300 in premiums is included in the FY 2004-2005 Risk Fund Operating Budget. Staff recommended purchasing insurance from ACE USA for a total package premium of $47,300 for their Airport/Non-Owned Aircraft Liability Coverage. Leisa Hutcheson, Risk Management Coordinator, stated there was a change in the recommendation for Airport Liability Coverage going from $100m to $50m and not recommending terrorism insurance based on research that was done. 0.. Regular City Council Meeting September 28, 200 Page 295 Motion was made by Council Member Gilbreath, seconded by Council Member Boren to pass Resolution No. 2004-R0476 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (40.) Resolution No. 2004-R0477 authorizing the Mayor to execute purchase of Boiler and Machinery Insurance Coverage from Zurich Insurance Company. RESOLUTION NO. 2004-R0477 BE IT RESOLVED 13Y THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, boiler and machinery insurance coverage, by and between the City of Lubbock and Zurich Insurance Company, in a total amount of $483,450; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City's current boiler and machinery insurance carrier is CNA Insurance Company. The current year's premium is $570,621 for the policy period from 10/1/03 through 9/30/04 for $50,000,000 in coverage with varying deductibles. The City's Broker of Record solicited quotations from CNA and three other carriers. In 1999, Hartford Steam Boiler non -renewed the City's coverage due to the number of losses suffered by LP&L. At that time, an extensive search of the market revealed that CNA was the only carrier interested in extending the coverage. CNA was willing to write the policy with strict loss control guidelines. CNA paid one loss shortly after the inception of the policy in the amount of $422,717 and has one loss pending of approximately $140,000. With these losses, CNA has notified the City of its intention to non -renew the policy with its existing terms for the coming year. CNA did provide a quotation for a new policy. The quoted policy terms are changed considerably, restricting coverage and increasing deductibles and premiums. 295 Regular City Council Meeting September 28, 200 Page 296 A summary of the quotations follows: 05-FY Proposed Premium Comments CNA (Incumbent) $595,621 New policy Explosion only on all power generating units except # 6 and # 7 Increased deductibles to $250,000 and $500,000 for power generating units and $50,000 for all others Zurich Insurance $400,160 Mechanical breakdown coverage included on all power generating units Increased deductibles to $250,000, $325,000 and $500,000 for power generating units and $100,000 for all others Lexington Did Not Unable to conduct engineering study Quote in time to quote Travelers Did Not Unable to conduct engineering study Quote in time to quote Even though some deductibles are higher on the Zurich policy, the premium is $223,544 lower than the new policy quotation from CNA. For this reason, Zurich is the recommended carrier. Zurich will also provide loss prevention functions that include state inspections for boilers, infrared thermographic testing, oil analysis and Doble testing. FISCAL IMPACT: The $400,160 in premiums is budgeted in the FY 2004-2005 Risk Fund Operating Budget. Staff recommended purchasing insurance coverage from Zurich Insurance Company for a total policy premium of $400,160 for Boiler and Machinery Coverage. Motion was made by Council Member Gilbreath, seconded by Council Member Boren to pass Resolution No. 2004-R0477 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. (41.) Resolution No. 2004-R0478 authorizing the Mayor to execute purchase of Worker's Compensation Coverage from the Texas Municipal League -Intergovernmental Risk Pool (TML-IRP). RESOLUTION NO.2004-R0478 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 purchase for and on behalf of the City of Lubbock, workers' compensation coverage, by and between the City of Lubbock and Texas Municipal League Intergovernmental Risk Pool, in a total amount of $1,512,645; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary e Regular City Council Meeting September 28, 200 Page 297 APPROVED AS TO CONTENT: /s/ Leisa Hutcheson Leisa Hutcheson, Risk Manager APPROVED AS TO FORM: /s/ John Knight John Knight, Assistant City Attorney The City of Lubbock has workers' compensation exposures for all City employees, including its volunteers. For the last five years, the City has purchased insurance coverage for these exposures. Currently, the City is insured by TML-IRP through its guaranteed cost program, i.e., fully insured (both claims handling and claims payments). The guaranteed premium for this coverage is $2,082,260 for FY 2003-2004. Because this is an insurance product, all claims reported during the FY 2003-2004 period will be paid by TML-IRP, regardless of the year(s) in which claims are paid. Based on the actuarial calculation, the City expects that only 30% of the ultimate value of a workers' compensation claim will be paid during the year of the initial injury. With the expiration of the policy year, the City's broker of record solicited quotations on the City's behalf for workers' compensation coverage. Two responses were received: TML-IRP, the current insurer, and ICON/Midwest Insurance Company. TML provided a guaranteed cost quotation and a self -insured program with excess coverage (deductible) quotation. ICON/Midwest provided only a self -insured program with excess coverage (deductible) quotation. ICON partnered with Midwest Insurance Company to provide the quotation - ICON serves as the Third Party Administrator and Midwest Insurance Company is the excess carrier. With the City's improved loss history over the past three years, TML-IRP lowered their guaranteed cost program premium by $213,611, a 10% reduction, for a total program cost of $1,868,649. Regardless of the number of, or magnitude of, worker injuries, the cost to the City for FY05 will be $1,868,649. TML-IRP also offered an alternative. The alternative is a self -insured program with a per claim deductible of $350,000. Assuming claims total $1,922,064, as estimated by the broker of record, with claims administration and an excess insurance premium of $474,585, the expected cost of the City's workers' compensation program will total $2,396,649. This estimate is entirely dependent upon the number of, and magnitude of, new claims occurring during the upcoming fiscal year. By comparison, the ICON/Midwest program is also a self -insured program with a higher per claim deductible of $500,000. Using the Midwest Insurance's assumption for total claims of $1,943,667, other costs will include per claim costs, cost containment fees on a per claim basis, $96,334 for the excess insurance premium, and other administrative fees. Based on the City's experience, staff believes these costs will total $185, 888, bringing the total program cost to $2,230,889. Again, this estimate is entirely dependent upon the number of, and magnitude of, new claims occurring during the upcoming fiscal year. If the number of claims incurred by the City is 422 or less, then ICON/Midwest is the better self -insured product. If the number of claims incurred by the City is greater than 423, then TML-IRP is the better self -insured product. Because the TML-IRP guaranteed cost program is lower than the forecasted self -insured programs for both TML-IRP and ICON/Midwest, staff recommended selection of the guaranteed cost program offered by 297 Regular City Council Meeting September 28, 200 Page 298 Texas Municipal League — Intergovernmental Risk Pool with a savings of over $285,000 for the life of the FY05 claim year. A summary of the proposals follows: Guaranteed Cost Program FY 04 Premium FY 05 Proposed Premium TML-IRP $2,082,260 $1,868,649 Self -Insured Retention (Deductible) Program Claims Other Excess Optional Estimated Total Administration Required Insurance Services New Claims Estimated Claims Premium Services Program Costs ICON/ Midwest $102,9751,3 $595.00 $96,334 $5,327 $1,943,6672 $2,230,8893 ($500,000 SIR) TML-IRP ($350,000 $474,585 Included Included Included $1,922,0644 $2,396,649 SIR) 'Quoted for 370 claims (City's 5-year average). Cost for over 370 claims is $570 per claim. 2Ultimate FY05 losses with $500,000/claim deductible per Midwest Insurance Company. 3Claims administration for life of contract only. Assuming a one-year contract, additional claims administration is estimated at $76,991 (4 years of claims administration run-off related to that FY). ¢Ultimate FY05 losses with $350,000/claim deductible per loss forecast by Broker of Record FISCAL IMPACT: The premiums are included in the FY 2004-05 Risk Fund Operating Budget. Staff recommended renewing coverage with Texas Municipal League — Intergovernmental Risk Pool under their guaranteed cost program for a premium of $1,868,649. Motion was made by Council Member Gilbreath, seconded by Council Member Boren to pass Resolution No. 2004-RO478 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. ADMINISTRATIVE SERVICES Facilities Management (41A.) Resolution No. 2004-RO479 BID #141-03/RS— authorizing the Mayor to execute a contract with Kleen-Tech Services Corporation for the City of Lubbock custodial services contract. RESOLUTION NO. 2004-RO479 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 Kleen-Tech Services Corporation, and the City of Lubbock, to furnish custodial services at various City facilities, and all 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. Regular City Council Meeting September 28, 200 Page 299 Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ harlda D. Stauffer Harlan Stauffer, Management Services APPROVED AS TO FORM: /s/ Don Vandiver for John M. Knight, Assistant City Attorney A copy of the Contract is filed with Resolution No. 2004-R479. This custodial services contract will provide cleaning services for 35 full time buildings and 8 buildings on an as requested basis. This contract will be for a period of one year, which may be renewed by mutual consent of both -parties for up to three additional one-year periods. Kleen-Tech is a Disadvantaged Woman -Owned Business Enterprise. FISCAL IMPACT: The new custodial contract will cost $663,749.46 per year. This is a cost savings of $27,546.54 per year over the current custodial contract amount. The current custodial services provider (Goodwill Industries) would need to increase the contract amount by $124,587 per year to continue providing services to the City of Lubbock. Staff recommended approval of this resolution. Motion was made by Council Member Price, seconded by Council Member Boren to pass Resolution No. 2004-RO479 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. Libra (42.) Resolution No. 2004-RO480 authorizing the Mayor to execute the necessary FY 2004-2005 contract for renewal of the leasing of library books with Baker and Taylor, Inc. of Charlotte, North Carolina (Library). RESOLUTION NO.2004-RO480 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 Acceptance of Proposal for Lease Purposes, for lease of library books, by and between the City of Lubbock and Baker & Taylor, Inc. of Charlotte, North Carolina, 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. 299 Regular City Council Meeting September 28, 200 Page 300 Passed by the City Council this 28th day of September, 2004. /S/ MARC MCDOUGAL MARC MCDOUGAL, MAYOR ATTEST: /s/ Rebecca Garza Rebecca Garza, City Secretary APPROVED AS TO CONTENT: /s/ Jane Clausen Jane Clausen, Library Director APPROVED AS TO FORM: /s/ Donald G. Vandiver Donald G. Vandiver, Attorney of Counsel A copy of the Contract is filed with Resolution No. 2004-R480. The leasing of library books for the Lubbock Public Library system has been in place since the 1970s and continues to provide new books for citizens in an economical and efficient way. Library patrons demand new titles quickly and this program provides that service. The cost of renewal for FY 2004-2005 will be $41,158.76. The program provides an inventory of current, hardcover titles that are selected by professional book buyers based on reviews and anticipated general public demand. Monthly pre -publication title lists are prepared with annotations to assist the Library staff with selections. The Library may also order titles not on the selection lists to be included in the leased books shipment. The Lubbock Public Library currently has a base collection of 2,170 volumes that are located in the four library facilities. Each month, the library will receive 217 new titles and will return books that have been circulating for at least six months. For every five books returned to Baker and Taylor, the Library is allowed to keep one book for free. During FY 2002-2003, there were a total of 41,317 leased books checked out throughout the library system. So far in the current fiscal year, there have been 36,218 checkouts. Library patrons rely on the Baker and Taylor Leased Plan to provide current and popular titles, both fiction and non-fiction. FISCAL IMPACT: $42,158.76 is the total cost for this service. It is a budgeted item for FY 2004-2005 in cost centers 5214, 5215, 5216, and 5217; account number 8705. Staff recommended the approval of this resolution. Motion was made by Council Member Boren, seconded by Council Member Price to pass Resolution No. 2004-RO480 as recommended by staff. Motion carried: 6 Yeas, 0 Nays. The next item considered was Item 27. 10:29 A. M. CITY COUNCIL RECESSED 10:40 A. M. CITY COUNCIL REGULAR MEETING RECONVENED City Council Chambers All council members were present. The first item considered was Item 27. 300 Regular City Council Meeting September 28, 2004 Page 301 10:43 A. M. CITY COUNCIL RECESSED TO WORK SESSION 10:45 A. M. CITY COUNCIL WORK SESSION CONVENED Committee Room 103 All council members were present. WORK SESSION (43.) Presentation providing the City Council a quarterly briefing on the North and East Lubbock Community Development Corporation. John Hall, Executive Director of North and East Lubbock Community _ Development Corporation, Greg Garrison, Chairman of the Board of Directors, and Board Member Esther Sepeda spoke. (44.) Presentation briefing the City Council on the amnesty program being put into place at the Municipal Court to lower the amount of outstanding warrants in Lubbock. Municipal Court Judge Robert Doty spoke concerning the amnesty program being put into place. Judge Doty stated the following: "Dates: November 8 thru November 30. Advertising: October 15 thru November 5 Warrants: Only those associated with Citations issued prior to 2004 (2003 citations and earlier) Conditions: - Voluntary appearance by Defendant at Municipal Court - NO arrests if Defendant appears voluntarily - Dismissal of FTA (`Failure to Appear') or Warrant fees - Fine adjustments (Possible upon submission of financial statement/at Court's discretion) - Community service (or Work Release) in lieu of payment (upon submission of financial statement/at Court's discretion) - Payment Plans (down payment/monthly payments based on financial situation. Submission of financial statement may be required Enforcement: (Post -amnesty): Point of emphasis by City Marshals; December/January time frame." Judge Doty stated that his staff would need to work overtime hours. He stated, "I am not asking for additional monies. That has been reported in the media and various places and that's a misconception. I'm not asking for additional monies to do this. What I would like to have is your approval if I can find the money in my existing budget, if I can move it around, shift it, use a little flexibility here to pay for this kind of thing, something else will have to suffer. I don't want to ask for additional monies, but I do need some flexibility in order to find the monies to deal with this. We may still not be able to add this feature, if I can't find the money in the budget; but we will do whatever we can to do that and make it a little bit more user friendly to the citizens." Mayor McDougal stated that from what he could see from the Council, everyone supported the issues. The overtime has not been discussed, but he stated he had heard complaints from citizens about having to take off at 4:00 o'clock and having to stand in line for 45 minutes to take care of a traffic citations. Mayor McDougal stated from his standpoint, if Judge Doty could find the money in the existing budget to extend the hours of operation, which would be beneficial to both his department and the citizens. Council Member Jones asked how many outstanding warrants we have and -the dollar amount they represent. Judge Doty stated the face value of the warrants was $11,879,000, which represents 30,666 outstanding warrants. This is an accumulation of six years. 301 Regular City Council Meeting September 28, 2004 Page 302 (44A.) Discussion of clerical staff classification and salaries. Scott Snider, Human Resources Director, gave comments on clerical staff classification and salaries. He provided backup to Council, and stated this information was requested by one of the Council Members. He stated the plan for the classification and salaries was looked at by outside parties back in 1978, and approximately four years ago, an inhouse look was taken. Council Member Boren asked Mr. Snider to provide him the differences between an Executive Assistant, Administrative Assistant, Office Supervisor and how many people are supervised, Legal 1, Legal 2, Legal 3, Lead Administrative Assistant, Lead Legal and Office Assistant. He stated he would like to see what true evidence is being used to make the determinations in these classifications and salaries. City Manager Fox stated that he and his staff would look and see if they could put an RFP together to solve some of the questions. He suggested doing a salary survey. Council stated the City needed to be competitive and not be a training agency for outside companies. They asked Mr. Fox to look at the system, and at a salary survey. 11:40 A. M. CITY COUNCIL RECESSED TO EXECUTIVE SESSION 2:40 P. M. CITY COUNCIL REGULAR MEETING RECONVENED City Council Chambers 2:40 P. M. COUNCIL ADJOURNED There being no further business to come before Council, Council Member Boren made a motion to adjourn; Mayor McDougal adjourned the meeting. Read and approved this; �� day of ARC MCDOUGAL, MAYOR ATTEST: Rebecca Garza, City Secretary 302