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HomeMy WebLinkAbout01/11/1990 - Regular Minutes City Council MINUTES CITY COUNCIL REGULAR MEETING THURSDAY, J~NU~RY 11, 1990 7=00 P.M. COUNCIL MEMBERS PRESENT= Mayor Ringer, Counoilmembers Haddox, MoIlhaney, Gardner, Birdwe11, and Schneider COUNCIL MEMBERS ABSENT= Councilman Brown STAFF PRESENT= City Manager Ragland, City Secretary Jones, Assistant City Manager Woody, Assistant City Manager Brymer, Parks and Recreation Director Beachy, Planning Director Callaway, MIS Director Cowell, Major John Kennedy, Facilities Maintenance Supervisor Shear, Fire Chief Landua, Develop- ment Services Director Ash, Finance Director Harrison, City Attorney Locke, Asst. City Attorney Banks, City Engineer Pullen, Senior Planner Kee, Assistant City Secretary Hooks VISITORS PRESENT= See guest register. Agenda Item No. i - Signing of a proclamation designating January 26t 1990 as -Southwestern Black Student Leadership Conference Day- in College Stationt Texas. Mayor Ringer read the proclamation and presented it to Ms. Tonya Rollins and Mr. Mark Stephenson from Texas A&M University. Aqenda Item No. 2 - A public hearing on the question of rezoning Lots 12, 13 & 14 Block A College Heights Addition Subdivisio- (first 3 lots north of university Drive on JaNe Street) from A-P Administrative-Professional to C-1 General Commercial. applicant is M. Patrick Sieqert for owners Michael M. Renqhofer~ Jr., Jan~ Elizabeth Renqhofer Ingram, & Theresa Francis Renghofer Pickett and McNeil and Mary Frances Fick. (89-108). Mayor Ringer noted that this item was considered at the last council meeting; the applicant has asked the council to reconsider this item because the owners had no representative present at that time. Councilman Schneider moved to reconsider this item. Councilman McIlhaney seconded the motion, which was approved by a unanimous vote of 6-0, with Councilman Brown absent. 007617 City Council Regular Meeting January 11, 1990 Page 2 Senior Planner Jane Kee stated that this item was considered at the December 14th meeting, and failed by a tie vote. Ms. Kee described the property and presented slides showing the sites surrounding it. The current A-P zoning is in compliance with the land use plan. She pointed out that at this time the predominant use in the area is residential and there are structures converted to office space. She added that the requested C-1 zone poses no conflict with the zoning districts; however, it conflicts with existing land uses and with the policies relative to the depth of commercial districts. She noted that twenty-five property owners were re-notified, and staff received a letter submitted from the management of the office building to the east expressing their opposition to the request. The Planning and Zoning Commission considered this request on November 15th, and recommended approval 5-1. Mayor Ringer asked if landscaping such as screening is required. Ms. Kee replied that the ordinance requires screen fencing between commercial and adjacent existing residential properties. Councilman Gardner asked if any benefits or incentives would be given to the property owners if the trees remained. Ms. Kee stated that the landscape ordinance gives bonus points for preserving existing landscaping of significant size. Councilman McIlhaney inquired about the depth requirements in C-N zoning regarding this property. Ms. Kee replied that the property is adequate for C-N zoning. She noted that the minimum depth for the C-N district is less than 150' for less than one acre. She further noted that the applicant has a particular use in mind that would not be allowed in C-N district. Mayor Ringer opened the public hearing. Mr. Patrick $iegert addressed the Council. He asked approval of the rezoning request. He commented that this particular tract is located more than 300' feet from the busiest intersection in a nine county area. He also noted that several people spoke at the Planning and Zoning Commission meeting in strong favor of the rezoning change. He referred to drug-related activity on Cooner Street and said that the neighborhood is deteriorating. Mr. Siegert stated that he has a letter of intent from the persons interested in the property. The likely candidate for this site is the restaurant "The Black-eyed Pea". He showed pictures indicative of the general appearance of these restaurants. 0076 8 City Council Regular Meeting Thursday, January 11, 1990 Page 3 Councilman Haddox inquired about the feeling of the neighbors in regard to this proposal. Mr. Siegert replied that among the people with whom he has spoken, the general consensus is that everyone realizes the other properties are ripe for commercialization by virtue of the site's location. Councilman Haddox asked if the property and parking are adequate for the "The Black Eyed Pea" restaurant. Mr. Siegert replied that the site plan is completed and it shows adequate space for the trees and parking is arranged around the trees. Ms. Mary Francis Fick, owner of Lots 12 and 13, spoke in favor of the rezoning. Mayor Ringer closed the public hearing. Aqenda Item No. 3 - Reconsideration of an ordinance rezonia~ th~ above property. Councilman Haddox moved approval of Ordinance No. 1835 rezoning Lots 12, 13, & 14, Block A College Heights Addition from A-P Administrative-Professional to C-1 General Commercial. (89-108). Councilman Schneider seconded the motion. Councilman Birdwell moved to defer consideration of this item until such time that a proposed plat of the development and parking are available; he commented that the property appears too small for the C-1 development planned. Councilman Gardner seconded Councilman Birdwell's motion. Councilman Birdwell stated that he does not feel it is the proper size of tract for this type of restaurant. He is inclined to vote against this request, because he would rather see a site plan illustrating how this restaurant will fit in this small tract. Mayor Ringer stated concern that the applicant may present a site plan with all the proper conditions for a C-1 request, and later another type of business may go there. Mr. Siegert responded that the "Black Eyed Pea" has three different site plans for this particular site. Councilman Gardner asked Ms. Kee to show the slide of the property. Mr. Gardner stated that there is a "micro" and "macro" way to look at this request. Councilman Schneider asked what type of plans were presented to the P&Z Committee. Ms. Kee replied that the P&Z did not see a site plan for development. The Commissioner who voted against the 0076 9 City Council Regular Meeting Thursday, January 11, 1990 Page 4 request was concerned about the traffic onto Jane Street and additional left turns onto University Drive. The Commission also discussed the impact on the existing single family residences. Councilman Haddox commented that he does not see any reason to delay this request. A vote was taken on Councilman Birdwell's motion to defer consideration. The motion was defeated by the following vote of 2-4: FOR: Councilmen Birdwell and Gardner AGAINST: Mayor Ringer, Councilmen Haddox, Schneider, and McIlhaney Councilman Gardner pointed out that there is a great deal of mixture of commercial businesses located eastward of the proposed rezoning tract. He pointed out that a good chance exists that this area is the only area where a concentration of A-P type uses remain. He expressed his concern and stated that the A-P zoning should remain. A vote was taken on the original motion to approve an ordinance rezoning this property from A-P to C-1. The motion was approved and Ordinance No. 1835 passed by a vote of 4-2, as follows: FOR: Mayor Ringer, Councilmen McIlhaney, Haddox, Schneider AGAINST: Councilmen Gardner, Birdwell &aenda Item No. 4 - I public hearinq on the question of rezoninq eiaht small tracts of land located alonq Texas &venue at th~ southwest corner of Texas ~venue a~d Holleman Drive from R-~ Sinqle Family Residential (approx, 12.2 acres) and R-6 Apartments Hiqh Density CaDDrox. 6.1 acres) to C-1 General Commercial. Applicant is Culpepper Management, Inc. (89-107). Senior Planner Kee explained this item, described the location and physical features of the tract. She stated that the request is to rezone to C-1 General Commercial 12.3 acres along the front of the tract currently zoned R-l, and 6.1 acres west of that, currently zoned R-6. Both tracts to be consolidated and rezoned to C-1 General Commercial. Ms. Kee gave a slide presentation of the subject property and area. She explained that the existing property is largely vacant with scattered residences and some agricultural uses. She stated that the Land Use Plan reflects commercial uses along Texas Avenue from Holleman to Southwest Parkway, with Medium Density Residential development reflected to the west. Councilman Haddox asked who has the responsibility for the triangular traffic medium on Holleman adjacent to the car dealership. Ms. Kee replied that this land is part of the Highway Department right-of-way. 007620 City Council Regular Meeting Thursday, January 11, 1990 Page 5 Councilman Schneider asked if there has been any discussion about straightening the road at the intersection of Texas Avenue and Holleman. Ms. Kee replied that this has not been discussed during this particular request. Ms. Kee continued stated that twenty four property owners were notified prior to the Planning and Commission meeting, one inquiry was received, and one call from a resident across Texas Avenue who was opposed to this request. The Planning and Zoning Commission recommended unanimous approval. Property owners were re-notified prior to the January llth council meeting. Councilman Gardner referred to the slide showing the map. He stated that the three parcels (R-6, R-5, R-I) are fairly large. Mayor Ringer opened the public hearing. Mr. Roy Hammons, engineer for the applicant, asked for approval of this rezoning. He pointed out that this property will be consistent with the properties along Texas Avenue. He introduced Mr. Robert Todd of Culpepper Management. Councilman Gardner asked Mr. Todd if he can disclose the user of this property. Mr. Todd replied that he could not state at this time, but leases are pending and the total area square footage is 160,000. Mr. Gardner noted that P&Z minutes referred to the property as being utilized for a "strip center.;" He added that three points of ingress and egress may be satisfactory; however, no traffic analysis has been conducted for this site. Councilman Gardner asked how the size of the strip center compared to Culpepper Shopping Center One. Mr. Todd replied that it is approximately the same size, but will have larger users. Councilman McIlhaney asked if the property will be developed as one unit and remain under one ownership. Mr. Todd replied that it will be one development, however, he cannot say for sure if it will remain under one ownership. Mayor Ringer asked if the property will be subdivided. Ms. Kee replied that there are existing property lines between R-1 and R-6. If the property is combined, the owner will need a subdivision plat. Mayor Ringer also asked if the residential tracts are separate properties. Ms. Kee replied affirmatively. In response to Councilman McIlhaney's concern, Mr. Hammons restated that the development will be initially developed as one complete plan. At this time, no one has any idea who will buy a portion of the property. Ms. McIlhaney remarked that she does not want to see a development created on one end of the property and another development located a further distance away, where the customer is compelled to leave the property and enter at another 00762! City Council Regular Meeting Thursday, January 11, 1990 Page 6 curb cut. Mr. Hammons replied that the development will have a common parking lot. Councilman Haddox expressed concern about landscaping. the property will be landscaped appropriately. He hoped Mayor Ringer closed the public hearing. Aqen~a Item No. $ - Ccnsi4erat~on of an ordinance rezoning fha above tract (89-107). Councilman Birdwell moved adoption of Ordinance No. 1836 rezoning eight small tracts of land along Texas Avenue at the southwest corner of Texas Avenue and Holleman Drive from R-1 Single Family Residential and R-6 Apartments High Density to C-1 General Commercial. Councilman Schneider seconded the motion. Councilman Gardner asked for a few minutes of the Council's time to make a presentation. Mr. Gardner referred to the P&Z minutes which state that the proposed request is in conformance with the Comprehensive Plan. This property does not qualify under the standards of major streets specified in the Comprehensive Plan. He presented a slide presentation, showed historical maps of the city's growth since 1952. The slides also included a vicinity map of the subject property. He pointed out that most deviations to the Plan have involved commercial zoning. Mr. Gardner noted that the city's powers are based on taxation, eminent domain, and police power. He added that zoning is an exercise under police power and city taxes are used to create a better economic situation. He stated that this case would seem to be counterproductive; on one hand, use taxation to improve the well-being of the existing commercial, and at the same time, proceed to rezone and add to the supply more than is needed. He commented that even if the proposed use were in conformance with the Plan and not contradictory to what the city is doing in terms of the economy, is this a suitable site for this develop- ment? Mr. Gardner expressed concern about the traffic and stated that it is critical to have an idea of what the prospect is. Mr. Gardner showed a vicinity picture of the east border of the site, abutting Texas Ave. He noted that the third lane of southbound traffic crossing Holleman is required to merge into the other two lanes as they pass the subject property. It appears to be a serious ingress and egress situation. 007622 City Council Regular Meeting Thursday, January 11, 1990 Page 7 In conclusion, Mr. Gardner recommended denial of the C-1 zoning as requested, and to affirm that the Council favors a higher use, possibly R-6 for the present residential property. The vote was taken on the motion to rezone this tract from R-1 and R-6 to C-1. Ordinance No. 1836 rezoning the tract was approved by a vote of 5-1 as follows: FOR: Mayor Ringer, Councilmen Haddox, McIlhaney, Schneider, and Birdwell AGAINST: Councilman Gardner Aqenda Item No. 6 - cossElq~ AGENDA: (6.1) Approval of the minutes of the Council's Workshop Session, December 13, 1989 and the Regular Session, December 14, 1989. (6.2) Approval of final plat - Southwood Valley Section 24D. (89-215) (6.3) Approval of a resolution authorizing the Mayor to enter into an agreement with the City of Bryan to provide jail assistance for Class C misdemeanor confinements. (renewal of annual agreement) (Council Issue No. 40) (6.4) Approval of the purchase of computer equipment and software to implement the Fleet Management Project as described in the 3-year MIS Plan. ($48,883 from budgeted funds) (6.5) Approval of a resolution to authorize the Mayor to execute a contract with the College Station Independent School District to build a Good Cents Home. (per discussion, workshop meeting, 01/10/90; $88,000 from Energy Project Fund) (6.6) Approval of 1989-90 Community Development funding agreements between the City of College Station and outside agencies as budgeted in July 1989. ($95,500) (6.7) Approval of the request to waive requirement for reimbursement of expenses for the Brazos County "Go Texan" parade. (6.8) Approval of a resolution supporting the State Department of Highways and Public Transportation Safety Project for the ramp relocations and Southwest Parkway overpass in connection with the conversion of the frontage roads to one-way operations. (per discussion, workshop meeting, 01/10/90) (6.9) Approval of purchase of body Armor for Police department; funds approved in the FY 1989-90 General Fund budget, staff recommends award to Law Enforcement Equipment as low bidder meeting specifications, total price $11,400. (low bidder, Hill Country Wholesale does not meet test requirements on vest) 007623 City Council Regular Meeting Thursday, January 11, 1990 Page 8 (6.10) Approval of purchase of miscellaneous mobile and handheld radios for Fire Dept., Police Dept., Public Utilities, Public Services, and Parks Dept. Bid #90-20, funds approved in General Fund and Utility Fund, FY 1989-90 budget; staff recommends award to G.E. and Motorola as low bidders meeting specifications, total price $24,604.57. (6.11) Approval of painting Refuse collection cab and body, (11 each), Bid #90-08, funds approved in the 1989-90 Sanitation Fund, staff recommends award to Texas Department of Corrections (TDC), total price $21,450. (6.12) Approval of street materials blanket order, Bid #90-09, Public Services Dept. funds approved in the FY 1989-90 general fund, staff recommends award to low bidder, Limeco, total price $33,312. (6.13) Approval of purchase of tractor front end loader, Bid #90-11, Parks Dept., funds budgeted in FY 1989-90 General Fund, staff recommends award to low bidder Brazos Machinery as low bidder, total price $18,976. (Replacement equipment for Parks Maintenance Division) (6.14) Approval of miscellaneous replacement vehicles for city fleet (24 vehicles for various departments) approved in FY 1989-90 budget for general, utility, and sanitation funds. Staff recommends purchasing through the State Purchasing and General Services Commission as awarded to various vendors as low bidders on state contract; total purchases $293,109. (6.15) Approval of a resolution authorizing the Mayor to execute a settlement agreement with James D. Hutchins and Mr. W. Fireworks to settle impending litigation. Mayor Ringer noted that staff has requested that Consent Agenda Item No. 6.3 be removed. Councilman Gardner removed Consent Agenda Item No. 6.2. Aqenda Item No. 6.2 - Final Plat - Southwood Valley Section 24D - (89-215). Councilman Gardner inquired about the possibility of bikeways in this subdivision. City Engineer Pullen replied that a study was not conducted for this particular subdivision, but representatives from the city staff, the school district, and TAMU Parks Department are in the process of developing a master plan for bikeways and walkways. Councilman Schneider moved approval of the final plat - Southwood Valley Section 24D (89-215). Councilman Haddox seconded the motion, which carried unanimously 6-0, with Councilman Brown absent. 007624 City Council Regular Meeting Thursday, January 11, 1990 Page 9 Aaenda Item No. 6.3 - Approval of a resolution authorizing th~ Mayor to enter into an agreement with the City of Bryan to provid~ jail assistance for Class C misdemeanor confinement. Major Kennedy of the COLLEGE STATION. Police Department explained that the Police Department wishes to enter into an agreement with the City of Bryan until July 1, 1990. Continuing the agreement after the first of July would be detrimental to the department's efforts toward accreditation. Recent information was obtained that the College Station Police Department would be impaired from receiving its accreditation through the commission's accreditation process, due to the fact that this contract will cause the CSPD jail facility to no longer fall under the term "holding facility." For accreditation purposes, it will meet the definition of "jail" and will not be accreditable under the commission's authority. Due to this recent information, the College Station Police Department requests that the Council approve the agreement with the City of Bryan with the period of the contract to continue until July 1, 1990. He added that the City receives a positive revenue from this operation. Councilman Birdwell moved approval of the resolution. Major Kennedy noted that he has advised Bryan City Manager Clark about this situation, and Mr. Clark has responded that he understands and has no problem with it. Councilman Birdwell's motion was seconded by Councilman McIlhaney. Mayor Ringer pointed out that Section $ of the proposed agreement will include a change in the expiration date, to July 1, 1990. The motion was approved by a unanimous vote of 6-0, with Councilman Brown absent. &qenda Item No. 7 - Consideration of an appeal of -- interpretation of Colleqe Station,s &coess Nanaq~ment & Drlvewa¥ Desiqn Policy. (Appeal submitted by Mike McClure, for property at northeast corner of Texas Avenue and Cooner Street). City Engineer Pullen explained a request has been received for driveway access to the property which is currently "The Bicycle Shop" at Cooner Street and Texas Avenue. The proposal is for development of a car wash facility. Mr. Pullen referred to the manual of design policies developed specifically for the processing of driveway access to streets. He further stated that the ordinances allow the City Engineer the opportunity to vary from the policy statements under specific considerations, such as variances arising from peculiar instances, not ordinarily existing in other areas. Accordingly, staff denied access to this site because staff felt the driveway would cause an inconvenience to the traffic on Texas Avenue and cause hazardous conditions on Texas Avenue. 007625 City Council Regular Meeting Thursday, January 11, 1990 Page 10 Councilman Gardner questioned the one-way access. Mr. Pullen clarified that the Texas Avenue access is proposed to be a one-way access and limit the number of turning movements, providing for a left-turn access movement from Texas Avenue into the site; however, it would eliminate either the right-turn movements out or the left-turn movements out. He noted that the entrance will be from Texas Avenue and the traffic will exit onto Cooner Street. City Engineer Pullen restated his reasons for denying the request. Mr. Pat Siegert spoke in favor of the applicant's request. He noted that this tract is owned by University National Bank; he encouraged the Council to give this matter their consideration. Mayor Ringer asked Mr. Pullen if the space is adequate for in-and- out movement off Cooner Street. Mr. Pullen replied affirmatively. Councilman Haddox commented that he would rather see the staff work with the applicant to come up with another approach. Councilman Birdwell moved to approve the curb cut with the minimum width of driveway. Discussion was held on the curb cut previously granted the restaurant fronting on Texas Avenue, "Taco Cabana". Councilman McIlhaney commented that the "Taco Cabana" case was different in that the problem involved access to a drive-up window. No second was made to Councilman Birdwell's motion. Councilman Haddox moved to disapprove the request of the applicant; he encouraged the property owner to work with the staff and look at other alternatives. Councilman Schneider seconded the motion. Discussion followed. Mayor Ringer commented that he feels there is not a viable alternative. The motion by Councilman Haddox was approved by a vote of 4-2, as follows: FOR: Councilmen Haddox, Schneider, McIlhaney, Gardner AGAINST: Mayor Ringer, Councilman Birdwell Mayor Ringer asked if the council would prefer that this type of request be appealed to the Zoning Board of Adjustment for review. City Attorney Locke suggested that the appeal go to the Planning and Zoning Commission for a final review. City Engineer Pullen pointed out that parking lot pavements, curbing requirements, etc. are heard by the Planning and Zoning Commission. The Council concurred to leave the process the same as it currently stands. 007626 City Council Regular Meeting Thursday, January 11, 1990 Page 11 &qend& Item No. 8 - Consideration of donatinq a vacant lot, 804 Fairview, owned by the City, to the Habitat for Humanity. Community Development Director Dan Fette described this item. He stated that community development funds were used to purchase the lot at 804 Fairview for the purpose of helping low income people improve their housing conditions. He noted that the Habitat for Humanity has the same goal. Mr. Dave Johnson, of Habitat for Humanity addressed the Council. He stated that the property at 804 Fairview suits the needs of their organization. Councilman Birdwell moved to donate the lot at 804 Fairview to Habitat for Humanity. The motion was seconded by Councilman Gardner. Mayor Ringer commented that the Council expects the house to be completed in a timely manner. Mr. Johnson indicated that the labor and materials are donated, and to respond to Mayor Ringer's concern, the project will be completed in a timely fashion. The motion was approved unanimously by a vote of 6-0, with Councilman Brown absent. Agenda Item No. 9 - Consideration of a resolution authorizing the Mayor to execute an agreement with the cities of Greenville, Bryan, Garland, and Denton for the purchase of electric power and energ~ and the option of participation in future generation in the Texas Municipal Power &gency. City Attorney Locke presented this item. She stated that the Council has received a contract in its final form from the City of Bryan. This contract has also been approved by the City of Garland and the City of Greenville. The City of Denton will review it next. Ms. Locke noted that this contract in summary will commence on January 1, 1992. It will be a full requirements contract until and if the City of College Station exercises its option to participate or until the City of College Station gets generation. She noted that the City of College Station can add its own generation under this contract. The supplying cities will continue to supply College Station's additional needs once College Station becomes a participant or adds its own generation. The obligations to make payments under this contract are discharged only from the electric utility revenues. The rates and charges are to be non-discriminatory, fair and reasonable based upon the supplying cities average cost of providing power and energy. The rates are adjusted annually to reflect the average cost. The demand charge is calculated on a maximum coincidental meter demand recorded over the billing month, meaning that, based on the number of meters they take the coincidental peak. 007627 City Council Regular Meeting Thursday, January 11, 1990 Page 12 Ms. Locke further explained that in the event of disputed payments, College Station has the option of escrowing that portion of the bill which is in dispute, until the dispute is resolved. Right-of-way use by the cities is limited to that which is necessary to supply the City of College Station with power unless otherwise authorized by the Council. Records and accounts are open to College Station's inspection. Ms. Locke pointed out a couple of minor changes within the contract itself that are limited to some changes in wordings. She referred to Section H on page 3, where it says the "obligation of the city to purchase power and energy shall not be indebted to the City of College Station, but shall be discharged". She inserted "as an operating expense of its electric utility and only from electric utility revenues". Going to Article III, she changed the wording to read: "The parties agree that College Station would be credited by the supplying cities in an amount pursuant to Schedule B." Continuing to page 5, Article VII Subsection (B), she noted that the date needs to be changed to September 30th rather than September 31st. Ms. Locke referred to the schedules which contained typographical errors. She clarified a paragraph to read: "the earlier of December 31, 1995 or the date of commercial operation of the generating unit in which College Station is either the joint owner of generating capacity with TMPA or a participant with TMPA." She made a minor change to Schedule B. Instead of the "supplying cities shall calculate," it will read "the value of the pro rata share of the existing facility will be calculated;" and, instead of instead of the "supplying cities will credit College Station $6 million," it will read "the supplying cities will not participate in the TMPA project unless College Station is credited $6 million. City Attorney Locke commented that these changes are cosmetic ones. Councilman Birdwell asked Ms. Locke to restate the last changes she addressed. Ms. Locke restated Schedule B. She explained that if College Station enters TMPA before a project, then it would require $6 million credit. This essentially ties the credit into a future project as mentioned in the contract negotiations. Ms. Locke noted that this contract has been reviewed by David Androl, the city's Washington, D.C. counsel with Vinson & Elkins. It also has been reviewed by the TMPA bond counsel, Elbert Mauro of Fulbright and Jaworski, who is the creator of the legislation of the municipal power agency legislation. Mr. Charles Glass of GSU addressed the Council. He stated that he was sorry the situation dictates that GSU be so persistent in their cause. He indicated that GSU felt like they had offered the City of College Station a proposal that everyone agrees is lower in cost over the term of the contract. The only discussion and controversy has been the amount that GSU is lower. GSU has offered elements in the contract or proposal which gave the City a 007628 City Council Regular Meeting Thursday, January 11, 1990 Page 13 distinct advantage in attracting new load for economic development. Mr. Glass further stated that GSU offered during those discussions in our proposal to include the City in an ownership role in a future power plant or in existing power plants that GSU owns. Mr. Glass commented about the way the consultant handled the evaluation of GSU's proposal in relationship to TMPA, that centered around the way the projected gas costs were handled. Mr. Glass mentioned that GSU received information about the historic gas cost in the last three years that both parties had experienced; therefore, he firmly believed that if given an impartial evaluation, GSU's proposal would put the city's ratepayers in at least a thirty-five million dollar advantage. He emphasized that this figures is of such magnitude which should not be ignored. He continued to state that GSU has offered to pay for another consultant to review the proposals. Mr. Glass called attention to the controversy about the savings over the first two years. He said GSU has informed the city that between the present rate and what GSU is offering, the city would save at least $8.5 million during the first two years and the next two years. In conclusion, he respectfully requested that the Council reconsider an evaluation by a nationally recognized reputable professional firm that could look at both proposals and tell the city the value of each one. He thanked the Council for their consideration. Mayor Ringer asked if anyone else would like to address the Council at this time. No one spoke. Mayor Ringer asked for a motion from Council. Councilman McIlhaney stated that this has been the hardest decision she has ever made since serving on the Council. Ms. McIlhaney said that she had made the motion to direct the staff to go with TMPA and she would move to authorize the mayor to sign a contract. She explained that she feels as though she is looking at a long range decision for College Station, and she is going with what she believes to be best for the city. Councilman McIlhaney moved that council direct staff to follow through with the contract signing. Mayor Ringer noted that Councilman McIlhaney had moved to approve the resolution. Councilman Gardner seconded the motion and discussed his reasons for doing so. Councilman Gardner stated that while there may be differences of opinion and maybe factual differences that the city doesn't know about, he believes that in the long term it's to the advantage of College Station to have some say in its energy 007629 City Council Regular Meeting Thursday, January 11, 1990 Page 14 destiny and get involved in the planning and long term impact of what is taking place in the whole area. Councilman Birdwell read a statement for the record as follows: "I would like to take this opportunity to explain why I'm not supporting Council action to purchase our future power from the TMPA cities from Bryan, Denton, Greenville, and Garland. The basic reasoning behind this decision is that in the longer term, the city will be better off buying its wholesale power from the TMPA cities on a cost basis as compared to buying from GSU at prices determined by a Federal Government regulated quasi-free market. Currently, market price for wholesale electric power is lower than cost because many of the power companies overbuilt in the late seventies and early eighties. This situation is expected to change in the future as growth uses up current excess capacity. It would be nice if it were possible to take advantage of the current buyer's market in wholesale power and protect ourselves from cost increases in the future. In fact, the TMPA cities offer has an element of that in its concept. But before we make such a long term decision we should carefully evaluate the premium we are going to pay in the short term. In order to fully evaluate the best course of action, the city retained an engineering firm with an excellent national reputation to solicit and evaluate proposals from interested suppliers. GSU and the TMPA cities were the best of several offers we received. For over six months, discussion between our staff and the suppliers have been going on. From time to time, reports in a summary fashion were made to the Council in executive session which indicated that the two proposals for the short term were very close together. In early December a detail report was given to the City Council. For the first time, I realized there were shortcomings and inconsistencies in the work of our engineering firm. The basic argument is how much extra we're paying over the next ten years, in the hopes that we will have a lower cost in the following thirty years. Our engineering firms suggest that it is less than three percent. GSU claims that the premium is as much as twenty percent. I don't believe either number. The evaluation of the two proposals is complex in that a number of unknowns have to be evaluated. The arithmetic is simple once the unknowns have been identified. When this type of study is done it is normal to ask a lot of "what if's". Our engineering firm did not do this. Two major factors they should have evaluated on a range of conditions are the growth in consumption, and the future price of natural gas. Neither was evaluated. In addition, no study was done of the underlying factors such as age, size, and condition of existing generation equipment. The heat rate or efficiency of the two companies was not compared. No review of existing fuel purchase arrangements was made. The future shift in fuel mix was considered only casually, and then only at the very last minute. Capital savings were inappropri- ately credited against electric rates. The effect of the absorption on fixed cost by including College Station in the TMPA system was not considered. The probable escalation of GSU rates after 1997 was not evaluated. The GSU savings in the first two 007650 City Council Regular Meeting Thursday, January 11, 1990 Page 15 years of their proposal is guaranteed by them but our consultant ignored this guarantee. I was totally disappointed in the work of our engineering firm and have expressed that to them. They blame GSU for making frequent changes in their offer, insist that my criticism of work is unfounded. They do not admit that they made significant errors in some of the work. Their final presentation left out a plot of unit cost comparisons that they had included in every prior presentation. Could it be that this was left out because that for the first time, GSU was lower in cost for every year? There was a way to resolve the deficiencies in their study. GSU offered to pay for an independent evaluation by an unbiased third party. A majority of the Council did not think that was necessary. This is a major decision of a long range nature. Going with the TMPA cities, will lower the Gulf States Utilities profit before tax by over $6 million a year. It is easy to understand why they are running full page ads. Going with the TMPA cities, reduces the TMPA cities effective electric power cost by almost $12 million a year. Bryan will share in that saving, and to the extent that they do, we will benefit indirectly. There's a lot at stake. The decision to go with the TMPA cities is politically popular and may well be an excellent choice; however, it is being made based on an analysis that is flawed and that offends my sense of fair play. Therefore, I will abstain from the vote." Councilman Haddox noted that he must abstain from the vote, for the simple reason that he has a conflict of interest. Mayor Ringer restated the motion. He asked for a vote. Ms. Maria Polites asked to speak to the Council. She presented herself as manager of Post Oak Mall and as a resident of College Station. She agreed with Mr. Birdwell's concern that there has not been enough research given to this matter. She said that she also spoke as a member of the College Station Economic Development Foundation and as a citizen vitally interested in the future of this community because of her job and residence. She commented about the economic development benefits related to the GSU offer. Mrs. Polites concluded by asking Council's consideration to look into this issue more thoroughly, as recommended by Councilman Birdwell. Mayor Ringer thanked Ms. Polites for her comments. The vote was taken and the motion passed by a vote of 4-0-2, as follows: FOR: Mayor Ringer, Councilmen McIlhaney, Schneider, Gardner AGAINST: (none) ABSTAINED: Councilmen Haddox and Birdwell ABSENT: Councilman Brown 007631 City Council Regular Meeting Thursday, January 11, 1990 Page 16 &qenda Item No. 10 - Consideration of amendments to the ordinance qoverninq false alarms in the City. Lieutenant Mike Patterson of the College Station Police Department addressed the Council. He referred to the information included with the packet materials. He stated that the proposed ordinance will provide a simpler and clearer interpretation of the regulations. Councilman Birdwell moved adoption of Ordinance No. 1837 amending the ordinance governing the false alarms in the city. Councilman Schneider seconded the motion, which carried unanimously 6-0, with Councilman Brown absent. agenda Item No. 11 - Consideration of appointment of representative from the City of College Station to serve on the Brazos Beautiful, Inc. Executive Board. PARD Director Steve Beachy addressed the Council. He recommended that the new Assistant Parks and Recreation Director Eric Ploeger serve as the replacement of Mr. Tony Cisneros, former Assistant PARD Director, to serve on this Board. Councilman Haddox moved approval of the recommendation. Councilman McIlhaney seconded the motion which carried unanimously, 6-0. Aqenda Item No. 12 - Consideration of a request submitted by John and Sharon Hansen for waiver of the city fee for a license to encroach. Assistant City Attorney Marianne Banks explained and stated that Mr. and Mrs. Hansen are preparing to apply for a license to encroach; the application will come before the Council at the next meeting. The Hansen's expressed a concern about the license fee and they requested to appeal the fee amount to the Council. Mr. John Hansen, 771§ Appomattox, addressed the Council. He stated that he is currently in the process of refinancing his home. One problem he has been faced with, is the license to encroach, a fee of $250.00 and a setback variance of $38.00. He noted that Bryan has a fee of $25.00 for their license to encroach. He indicated that the city inspectors on the job should have noticed this at the time the house was built in 1979. He noted the hardships which this problem has created. Mr. Hansen requested that the fee be waived or reduced. Councilman Birdwell mentioned that the $250.00 is a fair amount to compensate the city for the work conducted by the staff. He referred to a personal experience and commented that the staff spends a lot of time and work on these requests. He noted that 007632 city Council Regular Meeting Thursday, January 11, 1990 Page 17 the city does not survey the lot and is not liable for a house built on the wrong spot. Ms. Banks described the location of the house on the lot. Mayor Ringer noted his concern in setting a precedent for future applicants. City Manager Ragland explained the reason for the difference between the fee in College Station and the one in Bryan. He stated that the fee had been reviewed and is reasonable based upon the staff's time. Councilman Haddox commented that the city does not attempt to make money on this situation, just to recover the cost; also, the availability of the license is intended as a help to citizens. No further discussion was held on this item. &qenda Item No. ~3 - Hear Visitors. No one spoke. Aqenda Item No. X4 - Closed session to receive leqal report [6252- ~7¢2)(r)1 and discuss personnel -[$252-~7(2)¢a)~. 14.1 Legal Report [6252-17(2)(g)]. 14.2 Personnel [6252-17(2)(r)]. A.Discussion of appointments to the following boards. 1. Parks and Recreation Board. 2. Community Center Advisory Committee. 3. Energy Management Committee. B. Discussion of Administrative Personnel. 1. City Secretary The council moved into closed session. &qenda Item No. X5 - Action on closed session. The council reconvened in open session. Councilman Haddox moved to appoint Mr. Bill Lancaster to the Parks and Recreation Board to complete a two year term expiring May '91. Councilman Schneider seconded the motion, which carried unanimously 6-0, with Councilman Brown absent. Councilman Birdwell moved to appoint Mr. Randy Davis to the Community Center Advisory Committee, to a term expiring May 1991. Councilman McIlhaney seconded the motion, which carried unanimously 6-0, with Councilman Brown absent. Councilman Birdwell moved to appoint Mr. Charles Ray to the Energy Management Committee to complete a two year term expiring May '91. 007633 City Council Regular Meeting Thursday, January 11, 1990 Page 18 The motion was seconded by Councilman Haddox and was approved unanimously 6-0, with Councilman Brown absent. Aqenda Item No. 16 - Adjourn. Mayor Ringer adjourned the meeting. APPROVED: Mayor ~3ar~y~. Rin~r ATTEST: City Secretary Dian Jones 007634 GUEST REGISTER CITY COUNCIL REGULAR MEETING THURSDAY JANUARY 11, 1990 7:00 P.M. 6 11 12 13 14 15 16 10 20 007635