Regular Meeting 12115110



### CITY COMMISSION REGULAR MEETING HARLINGEN, TEXAS DECEMBER 15, 2010 A Regular Meeting ofthe Harlingen Elective Commission was held on Wednesday, December 15, 2010 at 5:30p.m. in Town Hall, City Hall, 118 E. Tyler Street, Harlingen, Texas. Those in attendance were: 

### Mayorand Citv Commission Mayor Chris Boswell Joey Trevino, Mayor Pro Tern Gustavo C. Ruiz, CommissionerDistrict I Robert Leftwich, CommissionerDistrict 

### i Kori Marra, Commissioner District 3 Jerry Prepejchal, Commissioner District4 

### StaffPresent: Carlos Yerena, City Manager Roxann P. Cotroneo, City Attorney SylviaR. Trevino, City Secretary Mayor Boswell called the meeting to order and stated that notice ofthe meeting had been duly posted according to law. 

### INVOCATION/PLEDGE OFALLEGIANCE/WELCOME CommissionerLeftwich delivered the invocation and the Pledge ofAllegiance followed. Atthis timethe City Attorney read the rules ofdecorum in their entirety. 

### BOARD MEMBER RECOGNITIONS None 

### CITIZEN COMMUNICATION Lorraine Woolam introduced a foreign exchange student from Brazil who is participating in an exchange program through the Harlingen Rotary Club. 

### SPECIALRECOGNITION: HARLINGEN FIREFIGHTERS Michael Rinaldi, Fire Chief, gave comments ofspecial recognition to a group of firefighters for their firefighting efforts conducted on a daily basis. 

### 2010 FIVE-STAR LOCAL REGISTRAR VITALREGISTRATION AWARD MayorPro Tern Trevino presented the 2010 Five-StarLocal Registrar Vital Registration Award to the Vital Statistics staffthat was present and read the accomplishments that led to the Award. 

### PRESENTATION -ANNUAL PROPERTY TAX COLLECTIONS REPORT JOHNGUEVARA John Guevara, representing Linebarger Goggan Blair and Sampson presented his annual property tax collections report for both delinquent and current collections. He distributed a copy ofthe current & delinquent tax collections percent collection report. Mr. Guevaraindicated that thatthe delinquent tax collectionprogram continues to emphasize on working with individual taxpayers to collect taxes owed and to keep litigation as the final option. Property inspection visits are aimed at informing taxpayersRegularMeeting 12/15/10 oftheir delinquency and to advise taxpayers ofavailable options to pay all amounts owed. During each property inspection attempts are made to advise taxpayers oftheir delinquency status and are given information on preventing taxes and collection costs from accruing. Mr. Guevarawent overthe delinquent tax collections for base taxes only from October through Septemberthatreflected a 31.4% collection rate and basetaxes, penalty and interest with a total collection amount of$872,121 for 2009-2010. As for lawsuits, Mr. Guevara statedthat most lawsuits do not go to tax sales. The firm is currently processing 38 title abstracts totaling approximately $111,653. Special emphasis will continue to beplaced onhigh dollar accounts and multiple-year delinquency accounts. He reported that 22 properties were sold and two wentto administrative review. He explainedthat property resales where no bids are submitted the propertiesget 'struck off. Mr. Guevara indicated that the next property resales would be conducted in March and June 20II. As properties are taken tojudgment, they will be reviewed and checked for payment. Further, the firm is currently monitoring the compliance of96 payment agreements, totaling over $48,302. Ifa default occurs, the taxpayer is sent a notice to cure the default and to re-establish their agreement. Ifnon-compliance withthe terms ofthe agreement continues, litigation will commence. Regarding bankruptcy, Mr. Guevara indicatedthat the firm would actively monitor and verify the 190 accounts in bankruptcy for the payment oftaxes, penalties, and interest owed to the City. These accounts represent over $116,266 in bankruptcy claims owed to the City. Mr. Guevara explainedthat they have had to change strategies to deal with those people that do not adhere to the payment agreements. Roxann Cotroneo thanked Mr. Guevara for working together with the City onthe properties that are for sale and their relation to the City's demolition program. 

### PRESENTATION BY THEPAN AMERICAN GOLFASSOCIATION REGARDING THEUSE OF ACITY FACILITY (PREPEJCHALrfREVINO) Lyle Garzamade his presentation and statedthat a few members ofthe Club are requesting a new lease on the Club House. Mr. Garzacontinued to give a history ofhow the Club House came about. He stated that the membership consists ofabout 45-95 members and that number fluctuates. The members get involved in the community and they award 2-4 scholarships throughout the year. The PAGA hosts 4-6 tournaments that generates outside interest and other golfcourses get involved with Harlingen's tournaments. Mr. Garza explained that thePAGA built the current Club House and storage shed in exchange for a lease. There is anevent center within that is rented out to the public for a· low rental fee and this benefits the community. The construction ofthe Club House dates backto 1972 or 1973. He stated that the lease amount is $1.00 peryear and the insurance costs are $7,000. The lease expired in 2008 and was not renewed. The fact is that there are a lot ofrepairs to be done and it is pretty expensive. The roofleaks andthe bathrooms needto be upgraded. Mr. Gabriel Gonzalezpointed out that 

### it would take about $30-40,000 to repair andthe PAGA did receive about $6,000 from insurance to repair theroof. Mr. Garza affirmed that they did receive a check but handed it right back to the City. Mr. Gonzalezexplainedthat the buildinghas to be repaired before anyone will insure it. Mr. Garza stated that because it has not been maintained it is in disarray. He explained that through rentals ofthe facility the PAGA makes about $30,000 annually but they end

2Regular Meeting 12115110 up clearing only about $2,000-$5,000 and 

### it is not financially prudent for them totake it on with a lease. He offered (2) I0-year terms at $1.00 peryear. CommissionerTrevino asked that the City Manager get involved and workon lease terms. to come back to the City Commission with. It was noted that the building was built right after Hurricane Beulah in 1968. Atthis time Martin Rodriguez also gave some history ofthe building and he stated that the building had been gutted out and the City allowed them to fix it up and they had to build another building so the City could store equipment and that is how they were able to get a 20-year lease way back then. Mr. Garza introducedJose Luis Garcia, thenew president ofPAGA.

Mr. Garza stated that part oftheir vision is to build a score board and host a 

### Jr. Golf school. MINUTES FORAPPROVAL- SPECIAL MEETING OF NOVEMBER 29, 2010 AND REGULAR MEETING OFDECEMBER 1, 2010

. CommissionerLeftwich made a motion to approve both sets ofminutes as presented. CommissionerPrepejchal seconded the motion and it carried unanimously. CONSENT AGENDA: A. REFUND OFPROPERTYTAXES APPROVED FOR NEIL AND LYNDA HAMAN, ACCOUNT NO. 98-0650-0000-0020-00 ($707.56) AND TO ELI SANCHEZ,ACCOUNT NO. 19-9800-0030-0120-00 ($582.86). B. EXTENSION GRANTED ONTHE CONSTRUCTION OF IMPROVEMETS WITH AN APPROVED LETTER OF CREDIT FOR CACTUS COUNTRY ESTATES SUBDIVISION, LOCATED AT THE INTERSECTION OFGRIMES AVENUE AND THE COURT PLACE. APPLICANT: FERRISAND FLYNN, LLC, C/0JOHN FLYNN 

### (PLANNINGANDZONING). C. RESOLUTION APPROVED REQUESTING THE MEMBERS OFTHE 82No LEGISLATIVE SESSION OFTHE STATE OFTEXAS SUPPORT LEGISLATIONTHATINCREASES FUNDING FORTHETEXAS RECREATION AND PARKS ACCOUNTLOCALPARK GRANT PROGRAMANDTHETEXAS PARK SYSTEM. 

### (PARKSDEPARTMENT) D. ORDINANCE ADOPTED ON FINALREADING ABANDONING CERTAINPUBLIC EASEMENTS ON AND AROUND THE BASS PRO SHOPS PROJECT SITE 

### (CITYCOMMISSION) Motion to approve consent agenda: Marra Second: Prepejchal Motion carried unanimously. 2ND PUBLIC HEARING CONDUCTEDAND ACTION TAKEN TO APPROVE ON SECONDREADING THE AMENDED MINORCURFEW ORDINANCE 

### (HARLINGENPOLICEDEPARTMENT) ChiefCastillo explainedthat there was one adjustment to the ordinance from the first reading. He explained.it was with regards to thepenalty provision on Page 8 ofthe ordinance. Mayor Pro Tern Trevino declared the public hearing open. There beingno comments from the public, Mayor Pro Tern Trevino declared the public hearing closed. The caption ofthe ordinance was read.



### 3Regular Meeting 12/15/10 ESTABLISHING A CURFEW FOR MINORS UNDER THE AGE OF SEVENTEEN YEARS OF AGE TO PROHIBIT BEING IN ANY PUBLIC PLACE DURING CERTAIN NIGHT TIME HOURS; PROVIDING DEFINITIONS; PROVIDING DEFENSES; PROVIDING AN ENFORCEMENT PROCEDURE; EST ABUSHING CRIMINAL PENALTIES FOR A VIOLATION; PROVIDING A SEVERABILTY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION; AND ORDAINING OTHER MATTERS PERTAINING TO THE FOREGOING. CommissionerLeftwich made a motion to adopt the ordinance on final reading with the adjustment as noted by ChiefCastillo. CommissionerMarra seconded the motion and it carried unanimously. 

### PUBLIC HEARING HELD TO HEAR COMMENTS FORORAGAINST THE REZONING FROM 'NOTDESIGNATED (N)' ZONETO 'GENERALRETAIL (GR)' ZONEFORA 2.54± 

### ACRE TRACT OF LAND OUT OF BLOCK54, 

### DAVID AND STEPHENSON SUBDIVISION, LOCATED ON THENORTH SIDE OF LOOP 499 WEST OFBRIGGS COLEMAN ROAD. APPLICANT: JOHN W. DRENNAN AND THECITYOFHARLINGEN (PLANNING & 

### ZONING) Joel Olivo, PlanningManager, explained that this property is located on the north side of Loop 499 and that most ofthe surrounding properties are vacant. The request is consistent with the City ofHarlingen Vision 20/20 Comprehensive Plan. Mayor Pro Tern Trevino declaredthe publichearing open. Steve Gano, general counsel for the applicant, stated that the applicant is asking for approval ofthe zoning for the expansion ofself-storage units (facility). They will also be asking for annexation in the following item. There being no further comments from the public Mayor Pro Tern Trevino closed the public hearing. 

### ORDINANCE ADOPTED ON FIRSTREADING ONTHEABOVE REZONING AN ORDINANCE AMENDING THE ZONING ORDINANCE (ORDINANCE NO. 07-27) OF THE CITY OF HARLINGEN: REZONING FROM 'NOT DESIGNATED (N)' ZONE TO 'GENERAL RETAIL (GR)' ZONE FOR 2.54± ACRE TRACT OF LAND OUT OF BLOCK 54, DAVID AND STEPHENSON SUBDIVISION, LOCATED ON THE NORTH SIDE OF LOOP 499 WEST OF BRIGGS COLEMAN ROAD; PROVIDING FOR PUBLICATION AND ORDAINING OTHERMATTERS RELATED TO THE FOREGOING. Commissioner Leftwich made a motion to adopt the ordinance on first reading. CommissionerPrepejchal seconded the motion and it carried unanimously. 

### PUBLIC HEARING HELD TO HEAR COMMENTS FORORAGAINST THE PROPOSEDANNEXATION AND THE INITIALZONING TO 'GENERAL RETAIL (GR)' FORA 0.425± 

### ACRE TRACT OF LANDOUT OF BLOCK54, 

### DAVID AND STEPHENSON SUBDIVISION, LOCATED ONTHENORTH SIDE OF LOOP499 WEST OF BRIGGS COLEMAN ROAD. APPLICANT: JOHN W. DRENNAN (PLANNING AND ZONING) Joel Olivo explained that the subject tract ofland is currently being processed as a resubdivision with the existingLot I, Block I, ReplatofLots I, 2 and4, Stone Subdivision Phase II and the request meets the requirements ofthe Texas Local Government Code, Section43.028 "Authority ofMunicipalities to Annex Sparsely OccupiedAreaon Petition ofAreaLand Owners". Mr. Olivo indicated that the developer would be responsible for all improvements.



### 4Regular Meeting 12/15110 Mayor Pro Tern Trevino declared the public hearing open. There being no comments from the public Mayor Pro Tern Trevino declared the public hearing closed. 

### ORDINANCE ADOPTED ON FIRST READING ONTHE ABOVE AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HARLINGEN THROUGH ANNEXATION AND ESTABLISHING THE INITIAL ZONING TO 'GENERAL RET AIL (GR)' ZONE CONSISTING OF THE FOLLOWING: A 0.425± ACRE TRACT OF LAND OUT OF BLOCK 54, DAVIDAND STEPHENSON SUBDIVISION, LOCATED ON THE NORTH SIDE OF LOOP 499 WEST OF BRIGGS COLEMAN ROAD; PROVIDING FORPUBLICATION AND ORDAINING OTHER MATTERS RELATED TO THE FOREGOING. Roxann Cotroneo stated thatthe City had already surpassedthe 30-day petition review as required by the Texas Local Government Code. She asked Mr. Gano ifthe applicant was waiving that requirement. Mr. Gano replied yes. CommissionerLeftwich made a motion to adopt the ordinance on first reading. CommissionerPrepejchal seconded the motion and it carried unanimously. 

### PUBLIC HEARING HELD TO HEAR COMMENTS FORORAGAINST THE REZONING FROM 'NOT DESIGNATED (N)' ZONETO 'RESIDENTIAL, SINGLE FAMILY (R-1)' ZONE FORA 29.6±

### ACRETRACT OFLAND OUT OF BLOCK 95, 

### HARLINGEN LAND AND WATER COMPANY SUBDIVISION, LOCATED ON THE NORTH SIDE OFRIO HONDO ROAD WEST OF MORGAN BOULEVARD. APPLICANT: HARLINGEN CISD/OSCAR TAPIA (PLANNINGANDZONING) Joel Olivo explained that the request is consistent with the land use plan. The applicant is requesting to rezone the subject property from 'not designated 

### (N)' zone to 'residential, single family (R-1); zone to allow for a proposed middle school on the subjectproperty. The request rezoning requires approval by the City Commission before the specific use permit can be processed. MayorPro Tern Trevino declared the public hearing open. Gail Moore, 709 Town Lane, asked ifletters were required to be sent to affected property owners. Mr. Olivo replied that notices were sentto property owners within the 200 

### ft. radius as required by statute. There were only two peoplethat attended the Planning and Zoning Commission and one phone call was received by the Planning staffregarding the rezoning. Mr. Olivo explained that the concerns that were expressed were addressed by the School District. Commissioner Ruiz asked about the drainage problems. Mr. Olivo replied that the plans have not been submitted yet because the zoning needs to have approval first. Jerry Moore expressed concerns overthe access to emergency vehicles on a roadthat is pretty narrow (Rio Hondo Road). He indicated that traffic would be held ifnot addressed accordingly. CommissionerMarrapointed outthat Rio Hondo Road has four lanes and theproperty will be designated as a school zone so this would increase safety on Rio Hondo Road. Yolanda Shoffeitt expressed concern overthe notices that are sent out and felt that maybe ifthe notices are sent also in Spanish it might generate more responses. Gail Moore expressed concerns with the drainage in the area. She asked thatthe Commission not consider the rezoning unless the City is going to install underground tanks for drainage.



### 5Regular Meeting 12/15/10 Oscar Tapia, representing the School District, explained that this is a rezoning request only. He still has to file a subdivision plat and he will be meeting with the Engineering Department. Right-of-way has to be dedicated. He statedthatthe School District also owns the adjacent property for future use and the property will have retention ponds. The School District will work with Harlingen Waterworks as well regarding the lift station that is on Rio Hondo Road and he stated thatthis property would be used for a new middle school. There being no further comments from the public Mayor Pro Tern Trevino declared the public hearing closed. ORDINANCEADOPTED ON FIRST READING ON THEABOVE REZONING AN ORDINANCE AMENDING THE ZONING ORDINANCE (ORDINANCE NO. 07-27) OF THE CITY OF HARLINGEN: REZONING FROM 'NOTDESIGNATED 

### (N)' ZONE TO 'RESIDENTIAL, SINGLE FAMILY (R-1) ZONE FOR29.6± ACRE TRACT OF LAND OUT OF BLOCK 95, HARLINGEN LAND AND WATER COMPANY SUBDIVISION, LOCATED ON THE NORTH SIDE OF RIO HONDO ROAD WEST OFMORGAN BOULEVARD; PROVIDING FOR PUBLICATION AND ORDAINING OTHER MATIERS RELATED TO THE FOREGOING. CommissionerLeftwich made a motion to adopt the ordinance on first reading. Commissioner Trevino seconded the motion and it carried unanimously. RESOLUTION APPROVED AUTHORIZING THE SOUTH TEXAS AGGREGATION PROJECT, INC. (STAP) TO NEGOTIATE AN EXTENSION TOTHE CURRENT ELECTRIC SUPPLYAND NECESSARY RELATED SERVICES AGREEMENTWITH NEXTERA FORA FIXED PRICEPER KWH THAT IS LOWERTHAN CONTRACT RATES FOR 2011-13, SAID EXTENSION TO CONTINUEUNTIL DECEMBER31,2018. 

### (ADMINISTRATION) Carlos Yerena, City Manager, explained that ST AP is askingthe City to consider extending its current 'blend and extend' contract. Ifapproved by the City Commission this action could result in additional savings for electricity perkilowatt-hour. This could generate a savings ofabout $300,000 per year. Currently, the contractexpires in 2013 and STAP is asking that it be extended to continue until December 31, 2018. Mr. Yerenapointed outthat other cities that have approved and passed resolutions are the Cities ofCorpus Christi, Mission, Victoria, and McAllen. CommissionerPrepejchal asked ifthe kilowatt per hour would increase. Mr. Yerena explained that by extending the contract a fixed rate would be locked in. Rich Newman asked ifthe City were to build windmills would the City getback penny for penny for these types ofsavings and suggested that this provision be included in the contract. Commissioner Leftwich stated that would be a stand-alone contract for electric generating devices. The City currently is implementing a solar project which will generate revenue to the City but would not affect this contract that is being considered but indicated that such a provision could be included inthe contract. Asked about a timeline, Mr. Yerenareplied that STAP would not committo a specific price until they have 75% commitment from other cities and right now they are at 70% but their goal could be reached by next week. Itcould be thatthey might have only 48 hours to 'pull the trigger' and ifneed be a Special City Commission could be called. Commissioner Prepejchal made a motion to approve the resolution. CommissionerMarra secondedthe motion and it carried unanimously.



### 6Regular Meeting 12/15/10 ACTION TAKEN TO AUTHORIZE THE EMPLOYMENT OFA PART-TIME MUNICIPAL COURT CLERK Roel Gutierrez, Director ofFinance, stated that currently the Municipal Court has one part-time court clerk for magistrate warnings and arraignments that are processed only in the morning hours. The employment ofan additional part-time court clerk will allow the Courtto process cases for the late afternoon magistrate warnings and arraignment proceedings. The part-time clerk will cost the City an additional $10,360 in salary and benefits and $750 in training for this fiscal year. Staffrecommended approval. Mr. Gutierrez stated that the following item would amend the City'sbudgetto accommodate this additional expense. Commissioner Prepejchal made a motion to authorize the employmentofa part-time Municipal Court Clerk. CommissionerMarra seconded the motion and it carried unanimously. RESOLUTION APPROVED TO AMEND THE DEVELOPMENT CORPORATION OFHARLINGEN, INC. BUDGET FORFISCAL YEAR 2010-11 Roel Gutierrez statedthat the amended budget was approved by the EDC onNovember 29, 2010. The amended are for contractual contracts where themoney was not spent and those funds need to be reprogrammed for FY 2011. The budget adjustments includethe RACH ($198,142); the 585-acre Industrial Park Certification ($55,000), Aloe Laboratories, Inc. ($40,000); Rental World ($75,000) and the Harlingen Industrial Foundation, Inc. ($50,000). The University Articulation and CareerCenterbudget adjustment of$1,312,715 represents a rollover from FY 2010 that was not fully spent. The Targeted Infrastructure budget adjustment of$433,878 represents a rollover from FY 2010 to complete the Tennessee/TreasureHills Road and the Dixieland Railroad crossing extension projects. TheArroyo Grande Retail, LP budget adjustment of$103,768 represents an increaseto the current FY 2011 budget for the anticipated incentive payments to the V-line drainage connection and for two retail establishments. CommissionerPrepejchal made a motion to approve the resolution amending the EDC budget. CommissionerMarra seconded the motion and it carried unanimously. ORDINANCE ADOPTED ON FIRST READING TOAMEND THE CITY'S 2010- 11 FISCAL YEAR BUDGET Roe! Gutierrez stated that this is the first amendmentto the 20I0-11 budget and contains three types ofamendments. The first are budget requests to fund a part time court clerk (as previously approved earlier in themeeting). The second are prioryear encumbrances, which are purchase orders budgeted and encumbered in the prioryearbut remained outstanding as ofSeptember 30, 20I0. These are basically items and services ordered last year but were not received orcompleted until this year and are scheduled to be paid in the current year. These unused budgeted amounts dropped inthe fund balance and need to.be carried overto the 20I0-11 budget. The third type is grants awarded to the City that were not originally budgeted for eitherrevenues orexpenditures. These adjustments will increase revenues by $658,587 and increase expenditures by $1,112,120. Staffrecommended approval. The caption ofthe ordinance was read. AN ORDINANCE AMENDING THE REVENUE AND EXPENDITURE BUDGETFOR THE CITY OF HARLINGEN, TEXAS, FOR THE FISCAL YEAR OCTOBER I, 2010 THROUGH SEPTEMBER 30,2011. TOTAL BUDGET REVENUES WILL INCREASE TO $63,553,628

7Regular Meeting 12115/10 Valley International AirportAttorney, and outside legal counsel regarding a Federal Aviation Administration complaint filed by Sun Valley Aviation, Inc. against the City of Harlingen, Valley International Airport 

### (CityAttorney) CLOSED/EXECUTIVE SESSIONPURSUANTTO CHAPTER551, SUBCHAPTERD., 

### V. 

### T.CA. GOVERNMENTCODE (SECTION 551.071) TO DISCUSS CONTEMPLATED OR PENDING LITIGATIONAND TO SEEK LEGAL ADVICE FROMTHE CITYATTORNEY, VALLEY INTERNATIONAL AIRPORT ATTORNEY, AND OUTSIDE LEGAL COUNSELREGARDING A FEDERALAVIATION ADMINISTRATION COMPLAINT FILED BY SUN VALLEY AVIATION, INC. AGAINSTTHE CITY OF HARLINGEN, VALLEY INTERNATIONALAIRPORT 

### (CITY ATTORNEY) The Closed/Executive Session convened at 6:54p.m. and concluded at 7:45 p.m. with no action taken in closed session. Present in Executive Session were: MayorPro Tern Trevino, Commissioners Ruiz, Leftwich, Marra, Prepejchal, Michael Browning, Gene McCullough, Bryan Wren, Carlos Yerena, Gabriel Gonzalez, Roxann Cotroneo, David Moran; Terry Chase; Sylvia Trevino. RESOLUTION APPROVING VALLEY INTERNATIONALAIRPORT'S AMENDED CAPITALBUDGET FORFISCAL YEAR 2010-11 

### (CITY MANAGER/CITY ATTORNEY) Mayor Boswell stated that he would allow 2 minutes for those that wished to speak on this item. JeffKohlman approached the podium and asked what is the Airport's requested budget amendment based on? He asked is it the need for additional FBO services? He replied no. He asked is it the liability for Sun Valley Aviation's plan? He replied no. He asked is it the ban(?) capacity analysis that wasn't done to determine the need for additional apron? Hereplied no. The injustice discriminatory terms that Sun Valley Aviation's draft agreement? He replied No. Mr. Kohlman stated that in fact it was his understanding that at last week's meeting and possibly here today there was no onepresent from Sun Valley Aviation to represent their request for monies. The only discussion at last Wednesday's meeting was the possibility oflosing FAAmonies. That was the focus---FAA monies. Mr. Kohlman continued by stating that in 1996 when the Park's 16th complaint process was established, there have been about II0 complaints filed with the FAA against airports. Over 75%ofthose were found in favor ofthe airports and those that weren't, the typical action oftheFAA in conjunction with the Airport, was to implement a corrective action plan. Mr. Kohlman pointed outthat only two airports lost FAA monies but that was at the airports' choice, not the FAA. TheFAA does not go out and impose fines. They do no require repayment. ofmonies and they do not go out withholding future funding. Theirgoal is to work with the airport moving forward. Referring to attorney Moran's comments, Mr. Kohlman stated that the airport is not in violation oftheir grant assurances today. From his professional experience voting against this budget amendment associated with the apron would not put the airpOrt in violation tomorrow. The FAA does not use the term same or equal when talking about treatment. Mr. Kohlman stated that he has identified about 22 points where it takes Sun Valley Aviation

.... (timer rings). Thankyou for yourtime. Debra Goetz, with Atlas Hall, representing GulfAviation, asked that the Commission think about exactly what they're doing and the timing with respect to how they're doing it. She stated that as JeffKohlman alluded to the Airport appears to be in compliance with the FAA as far as Sun Valley is concerned. However, there are many concerns about their compliance with respect to GulfAviation most ofthose were outlined in a letter and a draft FAA complaint, which was sent to the City Attorney and the Airport Attorney at the end ofNovember. She stated that they are still waiting on a response from that. She added that today they found outthat the Airport Attorney does not expectto get backto them until the end ofthis week. She stated that to act on the current amendment, which

9Regular Meeting 12/15/10 AND TOTAL BUDGET EXPENDITURES WILL INCREASE TO $65,637,484 RESPECTJVELY; PROVIDING FOR PUBLICATION OF THE CAPTION OF THIS ORDINANCE AND ORDAINING OTHER MATIERS RELATED TO THE FOREGOING. Commissioner Leftwich made a motion to adopt the ordinance on first reading. Commissioner Marra seconded the motion and it carried unanimously. RESOLUTION APPROVED TOAMEND THE HARLINGEN DOWNTOWN 2010-11 FISCAL YEAR BUDGET 

### (Note: CommissionerMarra signedan affidavitof conflictof interestandexitedthe meetingduring this item discussion). Roe) Gutierrez explained that this budget amendment is to carry over prioryear funds into the current year for various sign and storefront grants expenditures. These grants were started in fiscal year 2009-10 and will be completed and paid outin fiscal year 20I0-11. This adjustment will increase expenditures by a net $26,520. Staffrecommended approval ofthe budget amendments by resolution. CommissionerLeftwich made a motion to approve the resolution. Commissioner Prepejchal seconded the motion and it carried unanimously. BIDS ACCEPTEDFORTHE RE-ROOFING ANDRE-CLADDING OFTHE HARLINGENRECYCLING CENTERBUILDING UNDER BID NO. 2011-04 Dan Serna, Director ofPublic Works, stated that the project scope calls for the replacement ofthe corrugated metal roofand wall panels with new material. Italso calls for the repair ofany damaged ordeteriorated sections ofroofpulins and wall girts. The bid requests were broken down into a base bid, alternate bid, unit price per linear foot of purlin and wall girt replacement and unit price per square foot to wire brush and coat all ofthe rusted roofpurlins and wall girt. This was done in an effort tot stay within the allocated budget for the project. Mr. Serna recommended accepting the low base bid submitted by H20 Construction in the amount of$29,995.00 including the unit price bids of$20.00 per linear foot to replace damaged sections ofall girts and roofpurlins and $3.00 per square foot ofwire brush and coat all rusted all girts and roofpurlins. Staffalso recommended accepting the alternate bid submitted by H20 in the amount of$11,995.00. The total combined cost for the project would be $41,990.00. The combined cost does not include the cost to replace, repair or cat the wall girts and roofpurlins. Commissioner Leftwich made a motion to accept the low bid from H20 Construction as per staffrecommendation. Commissioner Prepejchal secondedthe motion and it carried unanimously. BOARD APPOINTMENTS CommissionerLeftwich appointed Ron Lozano to Harlingen Proud and Debby Ingram to Harlingen Proud also. CommissionerPrepejchal appointed Lori Davilato the Municipal Auditorium Advisory Board and Juan Garzato the Veterans Board. CommissionerPrepejchal also appointed Alex Trejo to the Veterans Advisory Board. Commissioner Leftwich made a motion to approve the appointments as made. Commissioner Prepejchal seconded the motion and it carried unanimously. Commissioner Leftwich made a motion to go into Closed/Executive Session pursuant to Chapter551, SubchapterD., 

### V. TC.A.Government Code (section 551.071) to discuss contemplated or pending litigation and to seek legal advice from the City Attorney,



### 8RegularMeeting 12115/10 arguably is goingto put the Airport into further violation ofthe FAA before addressing the existing concerns. 

### Itputs the City and the Airport at further risk to the extent you have concerns about the current compliance ofthe FAA. Going further with this is the exact opposite ofwhat we would expectthe City to actually do ifyou are looking at the City's interest. Furthermore, she asked thatthe City address the existing violations now with GulfAviation--- 2 ofthe existingproblems and then look into whetherornot there are further things that could be doneto enhance competition in the mannerthat the FAA allows, which is without any unfair discrimination against any ofthe parties involved. Ms. Goetzthanked that the Commission for its consideration. David Garza, with GulfAviation, thanked the Commission for listeningto him and stated that it has been a long battle that he has been fighting. He recalled that four years ago he approached the AirportBoard and asked for an extension to his contract after being here for 25 years and the Airport Board declined his request. When he asked why he was told that they had to go out for RFQs. We asked why? He stated thatthey had done everythingthey were told do and questioned why the RFQ process. Mr. Garza statedthat the reply was that the FAA was requiring the Airportto go out for RFQs. Mr. Garza statedthat the Airport did not ask Sun Valley to go out for RFQs. Afterwe asked for reasoning they changed their mind andtheAirport statedthatthey hadtalktothe FAA and then the negotiations started. TheAirport said we want you to invest so we invested and we need more investment so we did more investment andthis went on and on. Mr. Garza stated that when he finally satisfied the Airport's entire investment requirement, he then found out thatthe Airport started negotiations with anotherFBO. Mr. Garza was of the opinionthatthis was unfairto him. He commented that he was not awarethat he was goingto haveto enterinto competition. Mr. Garzacommented that now the Airport is asking GulfAviation to compete in an unfair environment. Mr. Garza felt thathe should have known ahead oftime. He stated that the Airport is not following the minimum standards that require that any new investorput out their own aprons and their own parking lots. Mr. Garza commentedthat for the Airport not to follow those standards that protect our investments is a violation ofhis rights. Mr. Garza stated that he is turningto the Commissionto enforce thoseregulations----otherwise his investments are in jeopardy. He statedthatthe Airport Board is refusing to honortheir rules. Dr. Bonnie de Ia Rosa Villarreal, Chairwoman ofthe VIA, stated that she was representing the interest ofthe Airport andthe entire community. The Airport administration and the boardhave been working diligently over the years to stay economically viable and the positive light ofour City. The Board voted unanimously in favor ofcontinuing negotiations with the second FBO. The first time this came about was in 2008. The economy, mainly aviation economics took a big hit. All major commercial airlines were suffering and general aviation may have suffered as well. Today is a different story with different numbers. We are upswing and now isthe time to take advantage ofit. TheAirport wants to grow and outshine our neighboring cities. This can be done with competition, that's basic. The FAA realizes this as well. FAA has saidthat we cannot inhibit competition and weplan on complying with that notion. The FAA has also said that wemust work iri good faith. Dr. Villarreal stated thatthe Airport Board plans to comply with that notion as well. The attorneys and staffhave worked diligently to make sure we work accordingly. Dr. Villarreal stated that there are two global issues here and it has nothing to do with sides oranyone's privatebusiness orpocketbook. One, our vendor such as Fed Ex, DHL overnight, some major airlinesjustto name a few, are very interested in the discussion ofcompetition. Competitive fees will cascade into better service. Competition will create new services, which are notcurrently in place. With these new services we can get new vendors. In this regards both FBOs can flourish with hard work and great attention totheirbusiness. She commented that this is a "win, win" for ourCity. Secondly, the FAA realizes all ofthis (bell rings) (Mayor Boswell allowed her extendedtime). Dr. Villarreal statedthat the Airport is in non-compliance now but we do not wantto be in the future. She stated that the Airport does not want to go through an FAA lawsuit orthe legal channels and in the end have a second FBO by force with extreme loss offunds in legal fees and, most importantly, complete community heart break. Dr. Villarreal felt that this issue would breakthe community more and more if

### it continues. A failure to act as the Airport Board has recommended may end in a "lose, lose" scenario for ourgreatAirport and community. Dr. Villarreal stated that it is her

10RegularMeeting 12/15110 extreme recommendation to bury this issue so that the Airport Board and staffcan continueto work on all the other aspects ofour great airport. Dr. Villarreal commented that her complete interest here and the interest ofourAirport Board is solely on the betterment ofyour airport. Ron Lozano commented that that there is documentation that could very welljeopardize through non-compliance by this current Airport Board. The way they have dealt with Sun Valley Aviation. People that are in collusionthrough business partnerships with them have, in fact, utilized their insider roles to try to effectuatethese favorable terms, whereas, in 1988 when his Dad appointed everyone, as is now the current fashion onthe Airport Board, they initially did what is suggested here-----let them buildtheir own. Regardless ofwhat transpired the following year the Airport Board reversed course and forced the lease on Gulf. So there's that despairoftreatment that Ms. De Ia Rosa'is familiar with. Mr. Lozano continued to state that it'sbeen suggested, pie in the sky. That new services are going to be created but it's not a given. The given is the history that is there. The differential treatment, which the law does not want, neither does the FAA as a regulatory body. Therefore, the community will suffer ifyou (the Commission) abide and ratifY this decision for the apron. Gulfs is a common apron for everybody; Sun Valley's will be different. Mayor Pro Tern Trevino asked what are the wishes ofthe Commission? CommissionerPrepejchal made a motion to accept the amendmentto the Airport budget with exclusions ofthe apron, which is the $75,000 that we had to put up for the grant and also the parking lot. Commissioner Ruiz seconded the motion and it carriedby the following vote: Aye: Prepejchal, Ruiz, Leftwich Nay: Marra The motion carried 3 to I. Commissioner Leftwich made a motion to go into Closed/Executive Session pursuant to Chapter 551, SubchapterD., V. T.C.A. Government Code (Section 551.087) regarding commercial and financial information from business prospects with which the City seeks to have located, stay orexpand in or near the territory ofthe City and with which the City is conducting economic development negotiations and/or to discuss ordeliberate financial orother incentives to a businessprospect known as Project Green. CommissionerMarra seconded the motion and it carried unanimously. 

### CLOSED/EXECUTIVE SESSION PURSUANT TO CHAPTER551, SUBCHAPTERD., 

### V.T.CA. GOVERNMENTCODE (SECTION 551.087) REGARDING COMMERCIALAND FINANCIAL INFORMATION FROM BUSINESS PROSPECTS WITHWHICHTHE CITY SEEKS TO HAVE LOCATE, STAY OREXPAND IN ORNEARTHE TERRITORY OFTHE CITY AND WITHWHICHTHECITY IS CONDUCTING ECONOMIC DEVELOPMENT NEGOTIATIONS AND/OR TO DISCUSS ORDELIBERATE FINANCIAL OROTHERINCENTIVES TO BUSINESS PROSPECTS KNOWN AS PROJECTGREEN 

### (ADMINISTRATION) The Closed/Executive Session convened at 8:01p.m. and concluded at 8:25p.m. with no action taken in closed session. Present in Executive Session were MayorPro Tern Trevino, Commissioners Ruiz, Leftwich, Marra, Prepejchal, Carlos Yerena, Roxann Cotroneo, Gabriel Gonzalez, Rick Rodriguez, CommissionerPrepejchal made a motion to go into Closed/Executive Session pursuant to Chapter55I, Subchapter D., V. T. 

### CA. Government Code (Section 551.074) personnel



### IIRegular Meeting 12/15/10 matters to deliberate the evaluation, duties, and performance ofthe City Attorney from December l, 2009 through December l, 20l0. Commissioner Marra seconded the motion and it carried unanimously. 

### CLOSED/EXECUTIVE SESSION PURSUANT TO CHAPTER551, SUBCHAPTER D., 

### V.T.C.A. GOVERNMENTCODE (SECTION 551.074) PERSONNEL MATTERS, TO DELIBERATETHE EVALUATION, DUTIES, AND PERFORMANCE OFTHE CITY ATTORNEY FROM DECEMBER 1, 2009 -DECEMBER 1, 2010. 

### (LEGAL) The Executive Session convened at 8:25p.m. and concluded at 9:15p.m. with no action taken in closed session. Present in Executive Session were: Mayor Pro Tern Trevino, Commissioners Ruiz, Leftwich, Marra, Prepejchal and City Attorney, Roxann Cotroneo. Both Carlos Yerena and the Director ofHuman Resources, Efren Fernandez were called in later during the Executive Session. There being no further business the meeting adjourned at 9:15 

### p.m.

Joey Trevino, Mayor Pro Tern Attest:

Sylvia R. Trevino, City Secretary

12