CITY OF LAREDO CITY COUNCIL MEETING M2016-R-11 CITY COUNCIL CHAMBERS 1110 HOUSTON STREET LAREDO, TEXAS June 20, :30 P.M.

CITY OF LAREDO CITY COUNCIL MEETING M2016-R-11 CITY COUNCIL CHAMBERS 1110 HOUSTON STREET LAREDO, TEXAS 78040 June 20, 2016 5:30 P.M. I. CALL TO ORDER Mayor Pete Saenz called the meeting to order. II. PLEDGE OF ALLEGIANCE Mayor Pete Saenz led the pledge of allegiance. III. ROLL CALL In attendance: Pete Saenz Rudy Gonzalez Vidal Rodriguez Roque Vela, Jr. Charlie San Miguel George J. Altgelt Roberto Balli Heberto L. Ramirez Jesus Olivares Cynthia Collazo Horacio De Leon Robert A. Eads Raul Casso Mayor District I District II District V District VI District VII District VIII Acting City Secretary City Manager Deputy City Manager Assistant City Manager Assistant City Manager City Attorney Motion to excuse Cm. Perez and Cm. Narvaez. Second: Cm. Altgelt For: 6 Against: 0 Abstain: 0 Cm. Perez joined at 5:45. IV. MINUTES Approval of the minutes of June 6, 2016 Motion to approve the June 6, 2016 minutes. Second: Cm. Altgelt

For: 6 Against: 0 Abstain: 0 Cm. Perez was not present. V. COMMUNICATIONS AND RECOGNITIONS Recognitions a. Recognizing the Laredo Police Department Officers and Investigators, and presentation by Chief Garner. Ray Garner, Laredo Chief of Police, noted that 75 awards were given out of 485 officers. He recognized: Sgt. Elizondo, Supervisor of the Year Valerie Mora, Investigator of the Year Julio Soliz, Officer of the Year Eduardo Juarez, Medal of Valor Jose Hernandez, Medal of Valor Sgt. Tony Gomez, Medal of Valor Pedro Escamilla, Lifesaving Award Jesus Garza, Lifesaving Award Jay Reece, Lifesaving Award Julio Soliz, Lifesaving Award Sgt. Robert Garcia, Lifesaving Award Andres Martinez, Lifesaving Award Ulysses Reyes, Lifesaving Award Robert C. Torres, Lifesaving Award Manuel Santian, Lifesaving Award Mayor Pete Saenz thanked the officers for their courage and loyalty to the City of Laredo throughout their service. Cm. Altgelt noted that one officer was recognized for his use of restraint rather than deadly force in disarming an attacker. He recognized the Laredo Police Department as one of the finest law enforcement organizations to-date. b. Recognizing Salma Castellanos for earning a spot on the USA Taekwondo and becoming the first Laredoan to represent Laredo and the State of Texas at the USA Taekwondo Team Trials in Colorado Springs. Motion to table. For: 6 Against: 0 Abstain: 0 Cm. Perez was not present. c. Recognizing Alexis Perez for becoming the 1st Laredoan to compete on La Voz Kids, passing the blind audition and chosen by Mexican singer Pedro Fernandez to be part 2

of his team. Mayor Pete Saenz presented Alexis Perez with a certificate of recognition for his achievement. d. Recognizing Veronica Alva for winning 1st place at the 2016 SharpeVision LASIK Texas XC Mountain Bike State Championship Series: Cat 3 Women 40-99. Veronica Alva stated that through hard work, training, and dedication, she was able to win first place. Few individuals from Laredo compete, and the trails are tough. Local trails are similar to those at the competition and helped her prepare for the races. This type of race could take place on Laredo s trails. Ms. Alva noted she may attend the Lance Armstrong Race. Mayor Pete Saenz presented Ms. Alva with a certificate of recognition for her achievement. Citizen comments Francisco Castillo reported that the Master s Fellows Program which he has advocated has been progressing favorably with the City Manager s Office and TAMIU. He would like to see the City take a leading role in attracting students in the MPA program. Lakshmana Vish Viswanath noted that the first contract with First Recycling was signed in 2012, and the second contract was signed on February 27, 2013, for five years. The City should have started receiving payments on February 27, 2014. The contract clearly states that First Recycling owes the City of Laredo a share of profits from February 27, 2014 and onward. He stated that the City of Laredo, with the help of the City Attorney, should demand their share of the profits from First Recycling. He also noted that in December 2014, City Council approved an audit of Max Mandel Golf Course, UniTrade Stadium, and travel expenses. That audit is more than a year and a half old. Armando Cisneros thanked Cm. Vela for the opportunity to serve on the Library Advisory Committee for a few years in the past. He noticed a lot of water-related expenditures and asked if Council could hold a meeting to educate the public on the water system overview prior to the onset of the new budget. Water rates keep increasing 2% each year. He also noted that no work on the Canseco House appears to have been done. VI. APPOINTMENTS TO COMMISSIONS, BOARDS AND COMMITTEES a. Appointment by Council Member Roque Vela Jr. of Jeremiah Cabrera to the Library Advisory Committee. Motion to approve the nomination of Jeremiah Cabrera to the Library Advisory Committee. Second: Cm. Perez 3

b. Appointment by Council Member Vidal Rodriguez of Ricardo Jaime to the Economic Development Advisory Committee. Motion to approve the nomination of Ricardo Jaime to the Economic Development Advisory Committee. Second: Cm. Perez c. Appointment by Council Member Vidal Rodriguez of Victor A. Tijerina to the Airport Advisory Committee. Motion to approve the nomination of Victor A. Tijerina to the Airport Advisory Committee. Second: Cm. Perez d. Appointment by Council Member Vidal Rodriguez of Claudia Medellin to the Laredo Commission for Women. Motion to approve the nomination of Claudia Medellin to the Laredo Commission for Women. Second: Cm. Perez e. Appointment by Council Member Vidal Rodriguez of Adrian Dominguez to the Transportation & Traffic Safety Advisory Committee. Motion to approve the nomination of Adrian Dominguez to the Transportation & Traffic Safety Advisory Committee. Second: Cm. Perez VII. PUBLIC HEARINGS 1. Public Hearing and Introductory Ordinance amending Chapter 32, (Tow Services), Sections 32-88, 32-91 to 32-93, 32-100, 32-104, 32-105 and 32-109 of the code of the City of Laredo, Texas by modifying permit requirements and duties of tow services on the rotation list; establishing an inspection fee; increasing the fees for towing services, storage facilities, rotation list applications and permits; repealing all ordinances or parts of ordinances in conflict therewith; providing a savings clause; providing for severability; providing for codification; providing for publication; and providing an effective date. 4

Motion to open public hearing. Second: Cm. Altgelt Ray Garner, Chief of Police, clarified that this item addresses vehicles being repossessed legally. The Police Department experienced a problem with towing companies contacting them. This item would require the companies to contact PD within 45 minutes of picking up a vehicle and storing it. The language was also updated, and the fees of towing and storage were updated. Motion to close public hearing and introduce. Moved: Cm. Altgelt 2. Public Hearing and Introductory Ordinance closing the hearing and assessing a property lien and charge against the property owners for the paving and supplemental improvements completed at Mauro Sandoval Drive, formerly McDonald Road and formally accepting the completed road improvements and dedications. Motion to open public hearing. Second: Cm. Altgelt There was no public input. Motion to close public hearing and introduce. Moved: Cm. Altgelt 3. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by authorizing a Special Use Permit for a Restaurant Serving Alcohol, on Lot 5, Block 1, Encino Plaza Subdivision, Unit 2A, located at 7518 McPherson Road, Building C, Suite 510; providing for publication and effective date. Staff does not support the application and the Planning and Zoning Commission recommends approval of the Special Use Permit District V Motion to open public hearing. Second: Cm. Altgelt 5

There was no public input. Motion to close public hearing and introduce. Second: Cm. Altgelt 4. Public hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by rezoning Lot 1-A, Block 287, Eastern Division, located at 801 Gustavus Street from B-1 (Limited Commercial District) to B-3 (Community Business District); providing for publication and effective date. Staff is not in support of the application and the Planning and Zoning Commission recommends denial of the zone change. District III Motion to open public hearing. Second: Cm. Perez For: Against: Abstain: Raul Santos spoke in favor of the zone change. Motion to close public hearing and introduce. Moved: Cm. Perez 5. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by rezoning 8.34 acres as further described by metes and bounds in attached Exhibit A, located on Wormser Road and East end of La Terraza Way, from R-1A (Single-Family Reduced Area District) to R-1B (Single-Family High Density District); providing for publication and effective date. Staff is in support of the zone change and the Planning and Zoning Commission recommended approval of the zone change. District I Motion to open public hearing. There was no public input. Motion to close public hearing and introduce. Moved: Cm. Gonzalez 6

Second: Cm. Vela 6. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by authorizing a Conditional Use Permit for a Day Care on Lots 11 and 12, Block 1583, Eastern Division, located at 2602 and 2604 San Salvador Street; providing for publication and effective date. Staff does not support the application and the Planning and Zoning Commission recommends approval of the zone change. District II Motion to open public hearing. Josefina de la Cruz stated that she initially requested a zone change but that her request was amended to a Conditional Use Permit. Motion to close public hearing and introduce. Moved: Cm. Rodriguez Second: Cm. Vela For: 7 Against: 0 Abstain: 7. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by rezoning Lots 3 and 4A, Block 482, Western Division, located at 1911 San Dario Avenue and 1904 San Eduardo Avenue from B-1 (Limited Commercial District) to B-3 (Community Business District); providing for publication and effective date. Staff is in support of the application and the Planning and Zoning Commission recommends approval of the zone change. District VIII Motion to open public hearing. Moved: Cm. Balli Second: Cm. Altgelt There was no public input. Motion to close public hearing and introduce. Moved: Cm. Balli Second: Cm.Vela 8. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by rezoning the North 92.6 feet of Lots 5 and 6, Block 369, Eastern 7

Division, located 101 W. Locust Street, from R-3 (Mixed Residential District) to R-O (Residential/Office District); providing for publication and effective date. Staff is not in support of the application and the Planning and Zoning Commission recommends denial of the zone change. District IV Motion to open public hearing. Moved: Cm. Balli Adolfo Gutierrez, representing the owner of the property, spoke in favor of the zone change. Motion to table. Second: Cm. Altgelt For: 7 Against: Abstain: 9. Public Hearing and Introductory Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by authorizing a Special Use Permit for a restaurant serving alcohol on Lots 1 and 2, Unit 3 and Lot 3, Unit 2; Block 3, Khaledi Heights Subdivision, located at 3910 E. Del Mar Boulevard, Suites 205 & 206; providing for publication and effective date. Staff is in support of the application and the Planning and Zoning Commission recommends approval of the Special Use Permit. District VI Motion to open public hearing. Moved: Cm. San Miguel There was no public input. Motion to close public hearing and introduce. Moved: Cm. San Miguel Second: Cm. Vela 10. Public Hearing and Introductory Ordinance amending Chapter 31 (Utilities), Division 1 (Generally), Article II (Sewers and Sewage Disposal), section 31-16 (Definitions) of the City of Laredo Code of Ordinances, by adding Commercial and Multi-family Customer definitions, clarifying the Residential Customer, Approving Authority and Industrial Waste definitions, and deleting the General Manager definition; also amending Article III, (WATER), Division 3 (RATES AND CHARGES) by renaming section 31-138 (Water Rates and Availability) to (Water Rates). Creating subsection title 31-138.1 (Fees and 8

Service Charges); deleting Ductile Iron Pipe Costs for 6 to 16 from section 31-138 (new 138.1); moving Connect Fees For Construction /Fire Hydrant Meters from Sec 31-138 to Sec. 31-140; moving Sec. 31-141 (Changes and adjustments) contents under Sec. 31-138.1 and adding further definition on Adjustments and Back Billings/Under Billings. Creating subsection 31-138.2 (Fire Protection Fees For Fire Protection Tanks) and adding charges. Creating subsection 31-138.3 (Connection Fees For Temporary Construction Meters) and clarifying the temporary construction meter process under section 31-138 (new 138.3). Moving Water Availability contents from Sec. 31-138 to Sec. 31-141. Deleting the contents of section 31-139 (Outside City); renaming Sec. 31-139 to (Bulk Water Sales); moving Sec. 31-140.1 (Bulk Water Sales) contents under Sec. 31-139; and amending the (Bulk Water Sales) section. Renaming Sec. 31-140, (Rates and Connection Fees For On-Site Construction /Fire Hydrant Meters, Inside and Outside The City Limits) to (Fire Hydrant Meters); Amending section 31-140 (Fire Hydrant Meters), System Connection and Water Use, Application Process and Inspection, Fees and Charges, and Loss, Damage, and Payment; Deleting section 31-140.1 (Bulk Water Sales). Renaming section 31-141 (Changes or adjustments) to (Water Availability); Providing for publication and an effective date. Motion to open public hearing. Moved: Cm. Balli Second: Cm. Vela Riazul Mia, Utilities Director, clarified that the ordinance is being cleaned up to remove conflicting issues. The rates are not being raised. Some of the costs for fire hydrant meter fees to the City will be reduced. Motion to close public hearing and introduce. Moved: Cm. Balli VIII. INTRODUCTORY ORDINANCES 11. Authorizing the City Manager to execute an agricultural land lease with Kenneth Wilkins from Chapotal Farms, for the property located in La Grulla, Texas. Lease will consist of 926 acres to commence on September 1, 2016 for a (5) year term. Revenues will be generated by the tenant s sugarcane production and acreage not used to harvest will be leased at an annual rental rate of $60.00 per acreage. Revenues to be accounted for in the Water Fund - Water Availability Division. Lakshmana Vish Viswanath asked why the City is leasing this land for sugarcane, which requires a lot of water to grow. It does not seem right for the City to be in the real estate business in Starr County. In Starr County, similar properties were being sold for $1 million cheaper than what the City paid. Riazul Mia, Utilities Director, clarified that the land was a part of the water right purchase when this property was bought. The City has excess water rights for 9

future use and the land is not being utilized currently, so the City is leasing the property for a small profit rather than leaving it unutilized. He reported that in the next year, the tenant will stop producing sugarcane and will plant a different crop. He also reported that water demand has decreased as compared to the 2016 projection. Given the rarity of water rights available, the City benefits from buying those available water rights for future use. Cm. Altgelt agreed that sugarcane is a water-intensive crop. He noted that every quarter, another request is made to purchase more water rights, and this is counterproductive to becoming the self-sustaining and conservation-minded community that Laredo wants to become. Armando Cisneros asked how much riverfront acreage is needed to obtain water rights. He noted the City could have bought minimum acreage or chosen not to purchase water rights that were not needed. Cm. Balli noted that the money from the land lease should not be earmarked until there is a concrete or established project in place. Cm. Vela voiced his agreement to Cm. Balli s argument. Motion to authorize City Manager to execute the land lease with Kenneth Wilkins from Chapotal Farms with the proceeds from that rental be earmarked for developing a sustainable long-term water use practice in Laredo. Moved: Cm. Altgelt For: 3 Against: 4 Abstain: 0 Cm. Perez Cm. Gonzalez Cm. San Miguel Cm. Altgelt Ordinance Introduction: City Council Cm. Rodriguez Cm. Vela Cm. Balli 12. Amending the City of Laredo Waterworks Fund FY 2015-2016 Annual Budget by appropriating revenues and expenditures in the amount of $694,010.00 from the proceeds of the sale of a 5.23 Acre tract close to Borchers Elementary. Funds will be used for the purchase of needed equipment. Ordinance Introduction: City Council Mayor Pete Saenz confirmed that both introductory ordinances are Councilsponsored and introduced. IX. FINAL READING OF ORDINANCES Motion to waive final readings of Ordinances 2016-O-064, 2016-O-071, 2016-O-072, 2016- O-073, 2016-O-075, 2016-O-076, and 2016-O-077. 10

13. 2016-O-064 Amending the Zoning Ordinance (Map) of the City of Laredo by authorizing a Conditional Use Permit for an auto body and paint shop on the middle 1/3 of Lots 7 and 8, Block 1029, Western Division, located at 4103 Santa Maria Avenue; providing for publication and effective date. District VIII Motion to adopt. 14. 2016-O-071 Amending the City of Laredo Municipal Housing Fund FY 2015-2016 Annual Budget by increasing revenue and expenditures in the amount of $14,956.00 for the Downtown Elderly Duplexes located at 1901 Farragut Street. Funds are to be used for operating expenses such as salaries, maintenance repairs, lighting, water and other related improvements. Motion to adopt. 15. 2016-O-072 Authorizing the City Manager to amend the 2016 Transit Capital Budget by increasing revenues and expenses in the amount of $390,888.00 in order to appropriate FTA Capital Grant TX-2016-009-00 for the purchase of rolling stock. Motion to adopt. 16. 2016-O-073 Authorizing the City Manager to execute the lease renewals for the Webb County, Head Start Program for the following parcels at their current rate for a one (1) year term, as referenced below: Jesus Garcia Head 2518 Cedar Avenue $900.00 Start Tatangelo Head Start 2200 Zacatecas Street $616.00 Villa Alegre Head Start 3501 Eagle Pass Avenue $893.00 11

Leases will be renewed for one (1) year with an additional one (1) year option to extend at a new adjusted rate based on the Consumer Price Index (CPI). Motion to adopt. 17. 2016-O-075 Amending the Subdivision Ordinance of the City of Laredo by: Amending Chapter III, Section 3-4, B.2 through B.10 by providing for front of lot utilities in R-1B and R-1MH zoning districts and revising certain performance standards for the placement of same; and amending Chapter III, Section 3-9 to remove any conflicts in the placement of front of lot utilities; providing for publication and effective date. Motion to adopt. 18. 2016-O-076 Amending the Laredo Land Development Code of the City of Laredo by: Revising Article IV, Section 24-69.5, Provisions For Flood Plain Hazard Reduction, (B) Specific Standards, of the Laredo Land Development Code; providing for Publication and Effective Date. Motion to adopt. 19. 2016-O-077 An ordinance granting a Non-Exclusive Electric Franchise to AEP Texas Central Company for the transmission and distribution of electricity; and providing for publication and effective date. X. RESOLUTIONS Motion to adopt. 20. 2016-R-76 Accepting the conveyance of the following fifteen (15) foot Public Utility and Utility Access Easement, for the right to install, construct, reconstruct, repair and perpetually maintain utility improvements from: 12

Celadon Realty, LLC By: George Chasteen, Vice President - Utility easement as follows: A tract of land containing 2.74 acres, (119,444 square feet) more or less being part of Lot 1, Block 1 in Webb County, a copy of which conveyance is attached as Exhibits A & B: And directing that said Easement be filed of record in official property records of Webb County, Texas. 21. 2016-R-77 Authorizing the City Manager to sign a water rights sales agreement between the City of Laredo and Hidalgo County Water Control & Improvements District No.19, where by the City is agreeing, subject to notice required by Section 49 504 (b) Texas Water Code, to purchase the right to divert and use 250 acre feet per annum of class "A" irrigation water rights to the Rio Grande River which after conversion from Irrigation rights to Municipal rights amounts to 125 acre feet of Municipal use rights per annum at $3,000.00 per A/F for a purchase price of $375,000.00; and further authorizing the City Manager to sign and file necessary application(s) with the Texas Commission on Environmental Quality on behalf of the City requesting that said Water Rights be severed from Certificate of Adjudication no. 23-806 as amended of the seller and combined with Certificate of Adjudication no. 23-3997 as amended, of the City and that the point of diversion, purpose and place of use of said water right be changed as required by the City. Funding is available in the Water Fund - Water Availability Division. 22. 2016-R-78 Accepting the conveyance of the following fifteen (15) foot Public Utility and Utility Access Easement, for the right to install, construct, reconstruct, repair and perpetually maintain utility improvements from: 42 Laredo, LP By: Scott Rohrman, Manager of the GP, - Utility easement as follows: A tract of land containing 0.61 acres (26,759 square feet), being a strip of land on Lot 1, Block 1 of Fedex at N.D. Hachar Plat in Webb County, Texas, a copy of which conveyance is attached as Exhibits A & B: 13

And directing that said Easement be filed of record in official property records of Webb County, Texas. 23. 2016-R-79 Authorizing the City Manager to accept a grant award in the amount of $637,768.00 from the Texas Auto Burglary & Theft Prevention Authority to fund the Laredo Auto Theft Task Force for the period of September 1, 2016 through August 31, 2017 to pay for salaries and supplies. The grant requires a cash match in the amount of $341,959.00 which is available in the General Fund. 24. 2016-R-80 Authorizing the City Manager to accept and execute a contract amendment from the Department of State Health Services (DSHS) in the amount of $164,669.00 for a total award amount of $324,558.00 for the continuation of the City of Laredo Health Department Healthcare Preparedness Program (HPP), to conduct health care emergency response and preparedness to a healthcare surge, disaster or medical emergency and extend the term period from July 1, 2015 through June 30, 2017. 25. 2016-R-81 Accepting the conveyance of the following twenty (20) foot Public Utility and Utility Access Easement and Temporary Construction Easement, for the right to install, construct, reconstruct, repair and perpetually maintain utility improvements from: Calk L.L.C. No. 1 By: Elaine W. Calk, President - Utility easement as follows: A tract of land containing 0.7040 acres, more or less, situated in Porcion 34, Abstract 762 in Webb County, Texas, a copy of which conveyance is attached as Exhibits A & B: And directing that said Easement be filed of record in official property records of Webb County, Texas. 14

26. 2016-R-82 Authorizing the City Manager to execute an Advance Funding Agreement (AFA) NO. CSJ-0922-33-158 with the Texas Department of Transportation for the City Wide Traffic Signal Upgrade- Synchronization Project. This project is being funded by Coordinated Border Infrastructure (CBI) Funds. Funding is available in the Capital Grant Fund. 27. 2016-R-84 Authorizing the City Manager to execute a letter of intention with Killam Development with regard to the creation of a tax increment financing zone for The Coves at Winfield project and to engage professional appraisal services for Loop 20 right-of-way to be included in that zone. Mayor Pete Saenz asked if Council should discuss this item in executive session. Raul Casso, City Attorney, noted that if the letter of intention the City Manager is to pursue contains information that is still under negotiation, then Council can enter executive session if open discussion would be harmful to their negotiation position. However, if the discussion is simply whether or not to adopt the letter of intent during this meeting, that will conflict with the purpose of entering executive session. Jesus Olivares, City Manager, clarified that the resolution is simply to instruct the City Manager to pursue a letter of intention, not to finalize the content of that letter at this time. Motion to discuss this item in open session. Blakely Fernandez of Bracewell LLP noted that the letter of intention is a preliminary agreement and that the firm will later finalize a detailed agreement if Council chooses to move forward. The changes to the letter include the provision of an internal revenue code, the addition of a second owner as a signer of the agreement, and other nonsubstantive changes. Exhibit A of the letter covers terms which have 15

been agreed upon thus far. She confirmed that Council can alter the allocations listed in the exhibit. Once agreements are finalized, the allocations can be redistributed more efficiently. She clarified that the City of Laredo has two policies regarding tax increment reinvestment zones: one policy is a general policy, and one only applies to large zones, which are over 750 acres with investments of over $500 million. In the larger zones, there is more flexibility in how the City may structure terms, but one requirement is that the zone produces some type of solution to a significant infrastructure problem. The agreement was structured to be an incentive, not a subsidy. Because the City is capturing the costs of services upfront as a reimbursement fee, the City s financial risk is largely eliminated. Nathan Bratton, Planning Director, confirmed that proposition monies are competitively distributed amongst various formulas. David Earl, representing Killam Development, stated that this TIRZ agreement is by far the best deal he has ever seen for the City. It requires the developers to invest over $500 million into the City of Laredo s economy, which will stimulate the economy to produce around $8 billion. It increases the City s tax base by almost $1.5 billion after all ancillary increases. The developers assume all of the risk for this project, and this development will create over 2,000 jobs locally. He asked Council to vote in favor of this resolution. Gerry Schwebel stated that this important issue is being paralyzed by constant debate and nickel-and-diming. He urged Council to move forward and make a decision on this project. Motion to approve the letter of intention, amending the expenditures of Exhibit A-City Public Projects District 6 Recreation Center to increase to $7 million with a total Expenditure amount of $96.7 million. Moved: Cm. San Miguel Second: Cm. Perez For: 3 Against: 4 Abstain: 0 Cm. Perez Cm. Gonzalez Cm. San Miguel Cm. Altgelt Motion fails. Cm. Rodriguez Cm. Vela Cm. Balli Motion to place this resolution on the ballot for public vote. For: 4 Against: 0 Abstain: 0 Motion fails. 16

XI. MOTIONS 28. Consideration to authorize the purchase of Hewlett Packard and Cisco servers, storage, network equipment and related items for the Laredo Bridge System Electronic Toll Collection and Customer Service Center (CSC) Systems Replacement/Upgrade Project from Computer Solutions, San Antonio, Texas, through the State of Texas DIR Cooperative Purchase Contract #DIR-TSO-3359 and #DIR-TSO-2542 in the total amount of $850,658.19. Funding is available in the Bridge System Construction Fund. 29. Consideration to authorize the purchase of Dell servers, racks, network patch cables and related items for the Laredo Bridge System Electronic Toll Collection and Customer Service Center (CSC) Systems Replacement/Upgrade Project from Weaver Technologies, Fredericksburg, Texas, through the State of Texas DIR Cooperative Purchase Contract #DIR-SDD-1951 in the total amount of $237,376.30. Funding is available in the Bridge System Construction Fund. 30. Consideration to authorize the purchase of third party software licenses for the Laredo Bridge System Electronic Toll Collection and Customer Service Center (CSC) Systems Replacement/Upgrade Project from Shi Government Solutions, Austin, Texas, through the State of Texas DIR Cooperative Purchase Contract #DIR-SDD- 2500 and #DIR-SDD-2503 in the total amount of $251,509.45. Funding is available in the Bridge System Construction Fund. 31. Approving the submission of the 2016-2017 One Year Action Plan to the U.S. Department of Housing and Urban Development (HUD) in request for funding in the amounts of $3,436,805.00 in 42nd Action Year Community Development Block Grant (CDBG) funds, $854,378.00 through the HOME Investment Partnership Program 17

(HOME), and $311,462.00 through the Emergency Solutions Grant (ESG). An additional $4,128.00 is anticipated to be received through CDBG program income, $95,192.00 in Section 108 Loan Repayment, $72,000.00 in Housing Rehabilitation Revolving Loan funds, and $160,000.00 in HOME program income. Also authorizing the City Manager to execute all documents as a result of the Plan's submission. The plan identifies the projects proposed to be funded by HUD through entitlement program funds and anticipated program income, which are as follows: 42nd AY Community Development Block Grant Community Development Administration $661,072 Housing Rehabilitation Administration $293,475 Housing Rehabilitation Loan Program (PI) $450,000 Code Enforcement $511,214 Graffiti Removal Program $57,741 Section 108 Loan Repayment $95,192 Transitional Housing Development $200,000 Downtown Senior Recreational Program $156,084 Demolition of Substandard Structures $111,847 Canseco Park $400,000 Slaughter Park Improvements $100,000 St. Vincent de Paul Section 202 Housing Improvements $166,500 Farias Recreational Area $166,500 District VII Sidewalks $166,500 Total $3,536,125 Housing Rehabilitation Revolving Loan Administration $8,753 Housing Rehabilitation Revolving Loan Program $63,247 Total $72,000 HOME Investment Partnership Grant HOME Program Administration $77,768 Down payment Assistance Program (PI) $160,000 Tenant-Based Rental Assistance $390,050 15% CHDO Set-Aside $128,157 Purchase of Lots $258,403 Total $1,014,378 Emergency Solutions Grant ESG Program Administration $23,062 18

Emergency Shelter - Shelter Operations $85,000 Emergency Shelter - Essential Operations $45,000 Street Outreach $10,000 Rapid Re-Housing $80,400 Homeless Prevention $60,000 Homeless Management Information System (HMIS) $8,000 Total $311,462 32. Consideration for approval of award of construction contract to the lowest bidder 4X Construction Group, Mansfield, Texas, in the base bid amount of $4,107,867.75 for the City of Laredo Landfill Phase 3 Cell 2 with a construction contract time of one hundred eighty (180) calendar days; and authorizing the City Manager to execute all related contract documents contingent upon receipt and approval of insurance and bond documents. Completion date for the project is scheduled for January 2017. Funding is available in the 2010 PPFCO, 2013 PPFCO, 2014 PPFCO, 2012A CO, 2015 CO. 33. Consideration for approval of award of construction contract to the lowest bidder Nick Benavides, Laredo, Texas, in the amount of $198,200.00 (which includes the base bid and contingency amount of $30,000.00 for unforeseen circumstances) for the Chacon Creek Killam Lake Wetland Mitigation Project with a construction contract time of sixty (60) working days; and authorizing the City Manager to execute all related contract documents contingent upon receipt and approval of insurance and bond documents. Completion date for the project is scheduled for September 2016. Funding is available in the Public Property Finance Contractual Obligation, Series 2014 Fund. 19

34. Consideration to reject all proposals received for consulting services, equipment, and personnel for the monitoring and ongoing oversight of the oil and gas wells within the City of Laredo due to a change in proposed scope of work that would better serve the City's intent to service existing and future wells within City limits. 35. Authorizing the City Manager to submit a continuation grant application in the estimated amount of $521,159.00 to the Texas Health and Human Services Commission (HHSC) to continue the Nurse Family Partnership (NFP) for the City of Laredo Health Department (CLHD) to provide evidence-based nurse home visitation for first-time mothers to assure timely and quality prenatal care, social services support for the mother, child development and preventive care education and guidance to their children for the first two (2) years of life, to ensure a healthy birth outcome for mom and baby for the term beginning September 1, 2016 through August 31, 2017, with the option to renew for another three (3) years contingent on funding availability. 36. Authorizing the City Manager to enroll as a provider and execute any contract that may be awarded in the estimated amount of up to $200,000.00 by the Texas Department of State Health Services (DSHS) for Family Planning services that will assist with funding for women's preventive health and family planning services from July 1, 2016 through August 31, 2017 with the option to renew for up to two (2) additional two (2) year terms (a total of four (4) years) contingent on funding availability. 20

37. Authorizing the City Manager to enter into a Memorandum of Understanding between the Health & Human Services Commission and the City of Laredo - Public Library for the purpose of assisting with Online Community-Based Application Assistance through YourTexasBenefits.com for Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Medicaid, Children's Health Insurance Programs (CHIP), and Long-Term Care Services programs (LTC). 38. Authorizing the City Manager to enter into a Memorandum of Understanding between the Texas State Library and Archives Commission (TSLAC) and the City of Laredo, Laredo Public Library, a participant in the TSLAC Family Place Libraries Project and to accept a grant in the amount of $6,000.00 from TSLAC. This funding is to be used for the purchase of items for use specifically in the Family Place-designated space and learning environment at the Laredo Public Library. 39. Consideration to award annual supply contract FY16-037 for the purchase of aquatics pool chemicals to Mayfield Pool Supply, Laredo, Texas for the Parks & Leisure Services Dept. city pools and splash parks in an estimated amount up to $58,553.50. All items will be purchased on an as needed basis. The term of this contract shall be for a period of two (2) years beginning as of the date of execution. The contract may be extended for three (3) additional one (1) year periods each upon mutual agreement of the parties. Funding is available in the Parks and Leisure Services Department budget. 40. Authorizing the City Manager to execute a contract utilizing the HGAC Buy Cooperative Purchasing Program pricing to United Rentals Pump Solutions, of Converse, Texas, for the required by-pass pumping for the McPherson Lift Station 21

Repairs, in the amount of $77,001.11. This lift station services the Laredo Country Club, Plantation, D. J. Alexander, Lago del Mar, Winfield, part of Del Mar and adjacent areas. Funding is available in the 2014 Sewer Revenue Bond. 41. Authorizing the City Manager to execute a contract utilizing the BuyBoard cooperative purchasing program pricing to Insituform Technologies, LLC., of Chesterfield, Missouri, for the required repairs for the McPherson Lift Station in the amount of $115,165.00. This lift station services the Laredo Country Club, Plantation, D. J. Alexander, Lago del Mar, Winfield, part of Del Mar and adjacent areas. Funding is available in the 2014 Sewer Revenue Bond. 42. Approving monthly adjustments to the tax roll. The amounts to be adjusted for the month of May 2016, represent a decrease of $839.44. These adjustments are determined by the Webb County Appraisal District and by court orders. XII. EXECUTIVE SESSION 43. Request for executive session pursuant to Texas Government Code, Section 551.071, Section 551.072 and 551.087(2) to consult with counsel regarding real estate and economic development negotiations regarding incentives for The Coves at Winfield project. No action taken. 44. Request for executive session pursuant to Texas Government Code section 551.071(1)(A) to consult with City Attorney on pending mediation: Oda Garcia v. City of Laredo; Civil Action No. 5:14-cv-00140, In the U.S. District Court, Southern District 22

of Texas; and return to open session for possible action. Motion to go into executive session to consult with City Attorney on pending mediation: Oda Garcia v. City of Laredo, Civil Action No. 5:14-cv-00140, in the U.S. District Court, Southern District of Texas; and return to open session for possible action. Moved: Cm. Balli Second: Cm. Altgelt Cm. Vela was not present. Following executive session, Mayor Saenz reported that no action was taken. Motion to direct City Attorney to proceed as directed with negotiations with the plaintiff as discussed in executive session. Moved: Cm. Balli Second: Cm. Vela XIII. GENERAL COUNCIL DISCUSSIONS AND PRESENTATIONS 45. A. Request by Mayor Pete Saenz a. Discussion with possible action on holding a joint public meeting with the Laredo City Council and Webb County Commissioners Court for the purpose of exploring Intergovernmental Cooperation on matters of mutual interest. Mayor Saenz noted that Judge Tano Tijerina requested that Council consider joint public meetings between City Council and the Webb County Commissioners Court, especially regarding items that pertain to both entities. Such items may be for the International Bridge and trash collection. Mayor Saenz noted that this would be a good movement toward unification between the City and the County. Motion to hold joint public meetings between the Laredo City Council and the Webb County Commissioners Court for the purpose of exploring Intergovernmental Cooperation on matters of mutual interest. Moved: Cm. Altgelt Cm. Vela was not present. b. Discussion with possible action on the status of the Laredo Housing Authority 23

activity regarding Russell Terrace and Casa Verde housing projects. Jose Ceballos stated that the Casa Verde housing project is a low income housing tax credit project. It is the main project of the Laredo Housing Authority. The TWO main goals of the Laredo Housing Authority are to ensure that residents will be provided housing and to secure new investment into the community. He confirmed that the application submitted by the Laredo Housing Authority to HUD did not qualify the residence for demolition. The Board must define new points as to why the residence needs to be demolished. HUD will not allow demolition until the entity can provide alternative housing for the residents. He noted that the Russell Terrace residents are not typical tax credit tenants; they are public housing tenants. There will also be a significant impact on the school district given a move. The Housing Authority is researching the least expensive investment for the housing projects that doesn t displace the tenants. Partial demolition may be a viable option, and the board is currently quantifying a demolition. Cm. Vela noted that as the community continues to grow, the number of individuals who need low income housing will continue to increase. This is why the City should be aggressive in building new developments. Mr. Ceballos noted that within six weeks, the Laredo Housing Authority will have an update on their progress, and he hopes that HUD will have submitted a response by that time. Judd Brown of Brownstone Affordable Housing and Brownstone Construction noted that his company is the developer and general contractor working with the Laredo Housing Authority on these projects. To-date, Riverbank Village is the only tax credit development that has been constructed. All 152 units are fully occupied. Gustavo Flores, contributing consultant for the Laredo Housing Authority, noted that if a housing authority demolishes or sells public housing, that housing authority is entitled to up to 200 tenant protection vouchers to relocate the residents to a safe and sanitary housing alternative. It is called Housing Choice Voucher Program, which gives the tenant a choice of where they can relocate. In his experience, Mr. Flores stated that no housing authority has ever been denied these vouchers to assist residents in relocation. He voiced his disagreement with Mr. Ceballos argument that residents will not be able to afford rent if they are relocated. The vouchers will lock their rent in a new facility as it is currently, and they may provide the advantage of covering utilities like central air conditioning. Mr. Ceballos noted that Mr. Flores was the individual who prepared the application that was discontinued by HUD. The only way to receive the vouchers is to have the application approved for demolition. The voucher program is not as easy and attractive as described by Mr. Flores. Moving residents out of their districts is not easy, and diluting the school district can be hurtful to the community. He voiced his disagreement that students should be moved out of their school districts just so the board can develop new housing units. The goal of the Laredo Housing Authority is not to displace these tenants, as that can affect the economic development of the community. 24

Sara Rodriguez, Russell Terrace resident, voiced her opposition to the demolition of Russell Terrace. Residents are happy there and have good homes. They have everything they need and are within walking distances of the childrens schools. They are close to the bus station and have multiple shops, restaurants, and grocery stores. Residents are happy where they live and do not want to be displaced. She asked Council to consider that 200 families, surrounding businesses, and the Laredo Independent School District will be damaged if Russell Terrace is demolished and residents relocated. Maria de Jesus Montiveros, Russell Terrace resident, noted that her children are worried. Her family has a low income, and they can not afford to pay much for rent. Maria Morales, Russell Terrace resident, stated that this is a big problem. Many families live there, including the elderly. She asked Council to understand the situation of Russell Terrace residents. Mr. Flores noted that he believes Russell Terrace is at risk of losing its affordability. He clarified that the units at Casa Verde are to be built prior to the demolition of Russell Terrace so that the residents would have the opportunity and priority to move to Casa Verde. The tax credit program is very competitive. He confirmed that the consulting developer of Russell Terrace is also the architect for the Casa Verde project. Cm. Altgelt noted that he is not comfortable having a consultant making recommendations in which he would also receive a benefit as a developer. Cm. Balli agreed with the residents of Russell Terrace that the area is more livable than the Casa Verde housing. Casa Verde is not walkable and does not have as many commerce in the area that is already provided to the tenants at Russell Terrace. He commended the Laredo Housing Authority for working so hard to help Russell Terrace residents stay in homes that make them happy. B. Request by Council Member Charlie San Miguel a. Discussion with possible action to implement a requirement that all structures 5,000 square feet or more need to be designed by an architect. Ramon Chavez, Building Development Services Director, stated that this item falls under the Occupations Code, Section 1051.606, which thoroughly explains what needs to be designed by an architect. Exemptions from architectural design include but are not limited to: storage; agriculture; single-family or dual-family dwellings; and commercial buildings that do not exceed a height of two stories or a square footage of 20,000 square feet. Certain plans or specifications that need to be designed by an architect include but are not limited to: a new building for occupancy on a 24-hour basis by persons are receiving custodial care regardless of stories square footage; and a new building having construction exceeding 100,000 [did not specify unit] that is being constructed by a state agency or a political subdivision of the state or any other public entity of the state. City Attorney Raul Casso reiterated that certain types of public buildings must be 25

designed by an architect: educational buildings, public assembly buildings, institutional housing, and other types. Mr. Chavez clarified that a commercial building over 5,000 square feet requires design by a licensed engineer. No action taken. b. Discussion with possible action for the installation of a bike repair station at the Starbucks location on Loop 20 and McPherson as part of a continuation of the city's enhancement of its citywide bike repair/route network. Arturo Dominguez, Laredo Cycling Association Board Member, stated that a previously-implemented bike repair station near the La Bota trails has been a successful and helpful piece of equipment for cyclists. The proposed station at the Starbucks location will be located right next to the common bike rack near the store. City Manager Jesus Olivares stated that the City Manager s Office will work with the property owner and the City Attorney s Office to obtain the proper permissions. Motion to direct staff to enter into a Memorandum of Understanding with the property owner to allow for the bike repair station at the Starbucks location on Loop 20 and McPherson Road. Moved: Cm. San Miguel Second: Cm. Altgelt Cm. Gonzalez was not present. C. Request by Council Member George Altgelt a. Discussion with possible action to have all executive session meetings by the Laredo City Council to be recorded and digitally archived subject to the Texas Open Meetings Act. Cm. Altgelt noted that previous action resulted in the television broadcast of the Charter Review Commission meetings. In the same vein of transparency, he understands that other cities record and digitally archive their executive sessions so that the public and City Council may be protected in the event of a court order to review those sessions. City Attorney Raul Casso clarified for the record that the Texas Open Meetings Act (TOMA) requires recording of the executive session via a certified agenda, which is the current method, or tape recording, which would currently be a digital recording. Either process is a policy decision by Council. He added that if Council wishes to make this change, he recommended doing so by ordinance as this item related to complying with a law. He has seen the executive session challenged in an instance where someone filed a claim of every conceivable 26

TOMA violation possible, including the efficacy of the certified agenda. In that instance, the judge subpoenaed the certified agenda, reviewed it, and deemed that no violations took place and that the certified agenda was accurate and acceptable. Mr. Casso clarified that video recording is not allowable, only audio recording or certified agenda. Cm. Balli noted that he has not seen a situation where the executive session deliberation would need to be reviewed. As an attorney, he has never recorded a conversation with any of his clients. However, he understands that digital audio recording may serve as a protectant as well as a deterrent of behavior that is in violation of TOMA. Cm. San Miguel noted his surprise that Council does not digitally record executive sessions. He recommended that Cm. Altgelt formulate his motion to include directing the Charter Review Commission to include this requirement in the Laredo City Charter. He stated that Mr. Casso should allow the Council to approve the certified agenda or have a true verbatim recording of executive sessions. Mr. Casso reiterated that Council s current method of recording executive sessions is in compliance with the law, and the certified agendas that he keeps are adequate according to the law. The Mayor signs the certified agenda as a testament to its accuracy. Mr. Casso clarified that the Council does not have the option to view the certified agenda or a digital recording once it has been sealed. Such documentation of an executive session can only be viewed when subpoenaed by a court, and then it is only viewed by the judge. Motion to have all executive session meetings by the Laredo City Council to be audio recorded and/or digitally archived in accordance with the Texas Open Meetings Act and that be put in the form of an ordinance. Moved: Cm. Altgelt b. Discussion with possible action to have all Ethics Commission Meetings Televised. Motion to have all Ethics Commission meetings televised. Moved: Cm. Altgelt For: 6 Against: 0 Abstain: 0 Cm. Perez was not present. c. Discussion with possible action on how to implement the Texas Work Force Commission Study for the Laredo area and South Texas area regarding a living wage for all City of Laredo employees and people working within City limits. Motion to table. 27

Moved: Cm. Altgelt Cm. Gonzalez was not present. D. Request by Council Member Roberto Balli a. Discussion with possible action on Downtown H.E.B negotiations. Cm. Balli noted that H.E.B. has asked the City to consider what they would like to have done with the property on Farragut. Motion to direct the City Manager to create a committee including Cm. Balli and Mayor Saenz to look for possible uses for the H.E.B. building and report back to Council. Moved: Cm. Balli b. Discussion with possible action on the creation of a Downtown Restaurant Bar Incentive package for "It (Iturbide) Street." Julian Rotnofsky reported that majority of millennials noticed a need in entertainment investment in Laredo, particularly Downtown. Several large cities have streets which serve as entertainment corridors in the community. Iturbide Street has experienced much development. This street has the opportunity to be a very unique corridor for Laredo s culture for both locals and tourists. As Downtown gains more foot traffic in the near future with the outlet mall, Iturbide Street can serve as Laredo s entertainment corridor to incentivize people to stay downtown. Casandra Ramirez presented the IT Street Development Package, a list of incentives for bars and restaurants to open specifically on Iturbide Street. The list includes permit fee waivers, expedited procedures, and tenant improvement incentives. This package can be activated in two phases. Cm. Balli noted that developments do not occur by accident. The purpose of this package is to cluster bars and restaurants along Iturbide Street to create an atmosphere that people will want to linger around. Mr. Rotnofsky clarified that utilizing two phases will help consolidate the businesses that are developed along Iturbide Street. Motion to approve the IT Street Development Package provided to Council for Iturbide Street and to activate Phase I immediately and Phase II at a later time. 28