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HomeMy WebLinkAbout03 0211 minThe Plainview City Council met on February 11, 2003 at 7:00 p.m. in the City Council Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting was posted in City Hall at 4:45 p.m. on February 3, 2003. Mayor Mary Jane Shanes presided. Councilmembers present were: Belinda Pena-District 3, Ross Owen-District 5, Buddy McGehee-District 6 and Irene Favila-District 7. Mayor Lloyd C. Woods and Councilmember John N. Bertsch-District 4 and Kelvin Tipton-District 1 were absent. Staff members present were: James P. Jeffers-City Manager, Dale Simpson-Civil Service Director, Wally Hatch-City Attorney, Will Mull-Police Chief, Gary Glass-Fire Chief, John Berry-Director of Public Works, John Castro-Director of Community Services and Belinda :Hinojosa-City Secretary. News Media Representative: Richard Orr-Plainview Daily Herald Guests present were: Bill LaFont, Jimmy Hill, Donald Pace and Rollie Hyde. Mayor Shanes delivered the invocation. Mayor Shanes led in the Pledge of Allegiance. Councilmember McGehee moved to adopt the consent calendar. The motion was duly seconded by Councilmember Favila and carried by unanimous vote. Items approved on the Consent Calendar included: approval of the minutes of January 28, 2003 and February 6, 2003; receipt of departmental reports; approval of expenditures and the granting of an excused absence to Mayor Woods, Councilmember Kelvin Tipton and John N. Bertsch. The Council approved the award of the asphalt bids to Valero of San Antonio, Texas in the amount of $.779 per gallon. The Council approved the award of the gravel bid to Thrashers, Plainview, Texas in the amount of $20.48 per ton. The only other bid received was from Capitol Aggreats, Midland, Texas in the amount of $31~00 per ton. The Council approved the appointment of Bobby Brunson as an alternate to the Board of Adjustments with a term to expire January 1, 2005. The Council approved the appointment of Bobby Brunson to the Building Trades & Fire Code Board of Appeals with a term to expire January 1, 2007. The Council approved the appointment of Anita K. Lacy to the Convention and Visitors Bureau. The Council approved upon first reading Ordinance No. 03-3368, an Ordinance of the City of Plainview Amending Ordinance No. 02-3350 to Appropriate Funds in the Hotel/Motel Room Occupancy Fund in the 2002-2003 Budget to Increase Estimated Hotel Tax Revenue to Equal Approved Convention and Visitors Bureau Budget ("CVB"); to Increase Special Projects Account for Main Street Strategic Plan; to Increase Expenditures for CVB Pass Thru Monies and Projected CVB Allocations; Cumulativesness Clause; Severability Clause; Conflicts Clause; and Effective Date. The Council approved upon first reading Ordinance No. 03-3369, an Ordinance of the City of Plainview Providing for Changing the Name of a Portion of Purcell Drive from Columbia to Hutcherson Air Service to Hutcherson Drive, Cumulativesness Clause, Severability Clause; Conflicts Clause; and Effective Date. John Castro, Director of Community Services presented Ordinance No. 03-3367 for first reading, an Ordinance Amending the Zoning Map of the City of Plainview by Issuance of a Specific Use Permit to Operate a Mausoleum in an Agricultural (A) Zoning District Said Parcel Being a Tract of Land 0.39 Acres located in the SE Part of the W/2 of Section 40, Block JK-2; Cumulativesness Clause; Conflicts Clause; Severability Clause; 141 City of Plainview Minutes February 11, 2003 Page 1 of 3 142 and Effective Date. One favorable response was received. He stated the area is currently zoned agriculture. Mayor Shanes asked for public comment. Bill LaFont stated there would be no costs to the cemetery and the mausoleum is being built by a group who will sell the crypts to families. There will also be an area for cremation. It will take approximately three years to build and will have 588 spaces. The project will use local labor and will start as soon as possible. Councilmember Owen moved Ordinance 03-3367 be approved upon first reading. The motion was duly seconded by Councilmember Favila and carried unanimously. Jim Jeffers, City Manager presented Donald Pace, owner of Merritt Housing, LLC. He stated Merritt Housing, LLC is requesting a letter of support for the project from the City. Merritt will be the developer. Hunt Building Corp. or TWC Housing by Hunt is the largest developer of Federal housing and is based out of El Paso. The proposed development will have 43 three-bedroom houses and 24 four-bedroom houses. Each will have two bathrooms, 1 ~-car garage, and all brick with different brick colors which will make it look like a regular subdivision. The total projected development costs are $7,164,302. Mr. Pace stated rent on a three bedroom house would run anywhere from $239.00 to $545.00 and rent on a four bedroom house would run from $265.00 to $608.00. He stated they would pay property taxes with $38,400 being the projected amount in taxes for the first year. Mr. Pace stated Plainview was chosen for the following reasons: (1) a market study said Plainview is in need of three and four bedroom housing; (2) Plainview is located between Lubbock and Amarillo and they just finished a subdivision in Lubbock and will begin work in Amarillo; and (3) location of the project is near schools and close to other single-family housing. The application is due on February 28th and they will know if awarded by July 31st. The preapplication that was submitted scored the second highest in the region. He stated they need the support of the City in order for this project to happen. Mayor Shanes asked for public comment. Rollie Hyde of 1317 Borger representing the Industrial Foundation as Chairman of the Housing Committee stated they have an interest in housing. In the last five years, only 98 single-family homes have been built. He stated he would ask the Council for serious consideration. Councilmember Owen asked what happens next after the houses are built? Mr. Pace stated they must own the property a minimum of 15 years. Hunt Management will be the management company and will probably hire a local manager. They would be responsible for the upkeep. They do not allow grass to grow more than three inches tall. Mr. Pace stated that at fourteen years the company could go to the state and ask to be able to sell to the tenants at a lower discount rate. Upon questioning from Councilmember McGehee, Mr. Pace stated the rents are adjusted every year around February based on the median income provided by HUD. City of Plainview Minutes February 11, 2003 Page 2 of 3 Councilmember McGehee also asked if they would provide a guarantee for the water bill. Mr, Pace stated they have a program to assists the tenants for a period of a month or so. He assured the City would not lose money on tenant's water bills, stating they would work with the City and the individual. The City would have no loss for utilities. Councilmember Favila questioned what Merritt's investment in the project was. Mr. Pace stated they would be investing the development fee. The property needs to have a 90% lease up before they are able to draw the development fee. Councilmember Favila also asked if other sites had been looked at for the project. Mr. Pace stated this property was the ideal place for the project since the following could be found within a one-mile radius: (1) large company (Wal-Mart Distribution Center); (2) three schools within one-mile radius; (3) retail; and (4) shopping. Councilmember McGehee asked if HUD would subsidize the rents? Mr. Pace stated they would not be subsidized unless they met all the rules for HUD. Councilmember McGehee asked how they could afford rent for $239.00. Mr. Pace stated they only have 1.2-million mortgage payment on the entire property. The annual income from the project is $341,000 which includes rents; debt payment would be $218,000 with a net operating income of $122,000. The mortgage payment would be $100,000 with $22,000 in net operating income. Councilmember McGehee stated the most an individual could make would be $24,000 per year to live in these properties. Councilmember Shanes stated the property currently is just farmland and asked who would provide water and sewer? Mr. Pace stated Lexington and Quincy do have water & sewer. Part of the land is zoned single family and they propose to rezone it all to single family. They are projecting building 64 units at first and there would possibly be room for 64 more. Councilmember McGehee moved decision on the project be postponed :until the next council meeting on February 25th. The motion was duly seconded by Councilmember Pena. The motion carried with Mayor Shanes, Councilmember Pena, Owen and McGehee voting "for" and Councilmember Favila voting "against:" William Mull, Police Chief presented the Police Department Annual Report. He stated there was an overall decrease in crime. There being no further business, Mayor Shanes adjourned the meeting at 8:02 p.m. Belinda Hinojosa City Secretary 143 City of Plainview Minutes February 11, 2003 Page 3 of 3