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AMENDED CITY OF WORKSHOP M2007-W-10 CITY COUNCIL CHAMBERS I. CALL TO ORDER With
a quorum present, Mayor Raul Salinas called the meeting to order. II. PLEDGE OF
ALLEGIANCE Mayor
III. ROLL CALL In
attendance: Raul
G. Mike
Garza, Council
Member, District I Hector
Garcia, Council
Member, District II Johnny
Amaya, Council Member, District IV Johnny
Rendon, Council
Member, District V Gene
Belmares, Mayor
Pro Tem, District VI Juan
Chavez, Council
Member, District VII Gustavo
Guevara, Jr., Horacio
De Leon, Assistant
City Manager Jesus
Olivares, Assistant
City Manager Raul
Casso, Motion
to excuse Cm. Ramirez. Moved: Cm. Rendon Second: Cm. Garcia For: 6 Against: 0 Abstain: 0 Cm.
Garza was not present. IV. MINUTES Approval
of the minutes of Motion
to approve. Moved: Cm. Rendon Second: Cm. Amaya For: 6 Against: 0 Abstain: 0 V. COMMUNICATIONS
AND RECOGNITIONS
Recognitions None. Communiqués Training
on the new Bosch Microphone voting system recently installed at the City
Council Chambers. George
Aguirre and Jeff Edwards, employees of
Musack, both gave an exclamation to City Council
on how to use the newly installed voting system. Mayor Salinas read the following letter which was addressed to
Robert D. Marcus from Time
Warner Cable: “Re: NFL Network on Time Warner Cable in Dear Messrs,
Bornstein and Marcus: The City of We strongly
recommend that you consider carrying Thursday’s game on the basic tier in Our concern
is first and foremost for our subscribers’ ability to watch what they choose and to choose what they watch. We have no interest in trying to tell you
how to manage
your businesses. But we encourage you
to work toward a solution that enables all The City
would be happy to host a meeting between your companies in Very truly
yours, Raul G. Citizen comments None. VI. MOTION 1. Motion to direct the City Manager to
prepare a resolution by the City of intent to enter into a tax abatement
agreement with Topaz Energy Group; pending submittal of
application. Motion to approve and amend the motion
to authorize the City Manager to prepare and execute the letter of intent of and the resolution
and for it to be presented to Council at the next meeting. Moved:
Cm. Garza Second:
Mayor Pro Tempore Belmares For:
7 Against: 0 Abstain: 0 Barbara Clemenhagen,
Vice President of Commercial & External Relations and Eric Geisler,
Director of Business Incentives Advisory gave the following presentation: Topaz Power Group, LLC Potential Energy Infrastructure Project For City of Overview of Topaz Power Group and
Current Assets Topaz Power Group is a Texaas-based independent power producer owned by Carlyle/Riverstone
Holdings. Originally formed in 2004
with the acquisition of non power plants in management of
power generation assets in In July 2006, Carlyle/Riverstone Global energy and Power fund III, L. P.
acquired facilities,
including the The company will continually assess
whether to hold, sell or invest in these assets. Topaz also continues to analyze new
investment opportunities in world. However, ERCOT anticipates terminating
the RMR agreement in 2010. The opportunity exists for the electric capacity and reliability
for current and future residential, commercial and, especially,
industrial customers in However, Topaz investors have strict ROI
targets that need to be met in order for the project to go forward. If this project is not approved, the plant
will be shut down and mothballed in
2010. A very unique opportunity to acquire two
General electric LMS 100 peaking units o
Units are ideally
suited to be a load pocket like o
If construction begins
in late 2007, Topaz could have units online by Summer 2008 o
New units could be well
positioned to provide power when it is critically required and o
continue to provide GE’s first production LMS100 aeroderivative gas turbine package recently completed assembly at the o
o
Far more efficient,
generating > 20 megawatts more than old units o
Quick start capability
– 10 minutes vs. 8 – 11 hours o
Much lower emissions
Notes: average of the
Max Allowable Emission Rate Table that is part of the permit. therefore the permit limits are the max
potential to emit (nameplate heat input rate times appropriate
emission factors). Potential Economic Impact (from Texas A
& M study) o
Potential new capital
investment: up to $145,000,000\ o
Estimated annual impact
to UISD: $1,000,000 o
Retain 6 – 10
high-paying jobs and create an estimated 75 new permanent indirect jobs
created through suppliers, etc. o
Estimated 250 temporary
construction jobs o
Estimated director
annual impact (local purchases, etc.) $9 million o
Estimated total indirect
economic impact of $101 million Recap of Project Benefits Long-term
capital investment $1,000,000 in UISD annual property tax
revenue Assets will be on city tax rolls long
after the abatement
New Technology Long-term electric reliability Much lower emissions Quick start capability Economic
Impact Estimated annual local impact $9,000,000
(local suppliers, etc.) Estimated 75 indirect jobs created Ability to attract high-tech industrial
companies Council
Consideration Investment decision will be heavily
influenced by financial impact of state/local Incentives We have already received formal
incentive commitments fro other communities under consideration. Request a commitment from the City of MOU or resolution stating amount/level
of abatement.
ASAP Topaz’s capital committee is currently
evaluating all projects and will be making investment
decisions on December 10th.
Carlos Villarreal, City Manager, stated
that the Utilities Director has reviewed the pilot project and it
has a lot of promise. He recommended
additional time for staff to return to City Council with recommendations. The technology will have a positive affect
to the City of funding
possibilities. Cm. Landeck asked that the City Manager
to consider both possibilities including the cost of the
treatment and the cost of bringing the water down. Motion to instruct City Manager to
negotiate on a pilot plan project for converging sludge and
solid waste into ethanol and treatment of brackish water. Moved:
Cm. Garcia Second:
Cm. Garza For:
7 Against: 0 Abstain:
0 Mayor Pro Tempore Belmares informed City
Council that the City may be able to set up the pilot program through the well at the water. Tomas Rodriguez, Utilities Director,
confirmed that the City of brackish water. Motion to instruct the City Manager to
enter into a discussion with Texas A & M Department of Chemical and solid
waste into ethanol and treatment of brackish water. Moved:
Mayor Pro Tempore Belmares Second:
Cm. Garcia For:
7 Against: 0 Abstain: 0 VII. STAFF REPORTS 2. Discussion with possible action regarding
the licensing, regulations, enforcement policies and
procedures of 8-liners and any other items incident thereto. Richard Raymond, State Representative, gave
a comprehensive report explaining that the Texas Constitution prohibits
gambling but allows municipalities to regulate the laws concerning
eight liners and entertainment devices.
He explained that if an establishment issues more than five dollars it is considered
gambling and they are breaking the law. He further explained that the voters of of the legislature; however,
establishments like Peter Pipers will no longer be able to operate. He acknowledged that there are
establishments throughout breaking the
law and further agreed that they must be stopped. He noted that he would be available to assist the City of suggestions, including implementing a
law that would charge violators with a felony instead of a misdemeanor and they would
not have the ability to open another establishment. Keith Selman, City Planner, stated that
the eight liners are currently allowed in the B-4 zoning designations; however, there is a
distance requirement from schools, churches, and residences. He noted that the City Council agreed to a revision
that changed the measuring mechanism and essentially
deregulated it which reduced the distance requirement from residences and other
residential zoning designations. Mayor Pro Tempore Belmares advised that
the intent was not to allow them to be closer to residential
areas but to measure differently. Keith Selman, City Planner, advised that
one of the provisions of the conditional use permit is that the applicant must
conform with the provisions of an ordinance and by loosening the terms of distance
requirement it made it more flexible for the applicant to receive a
conditional use permit under a B-3 zoning.
Cm. Garza asked if the City of quarterly checks on the permits to make sure that they have
not increased their number of
machines as opposed to what was initially reported during the application
processes. Raul Casso, City Attorney, advised
City Council that the permitting fee must have a rational
relationship to the actual cost of enforcing or issuing the permits. He continued to say that the City of Keith
Selman, City Planner, suggested implementation of a license process which
would allow the City of |