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MIN CC 01/27/1987• • MINUTES OF THE HUNTSVILLE CITY COUNCIL MUTING HELD ON THE 27TM DAT OF JANUARY, 1987 IM THE CITY BALL COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 7t00 P.M. The Council met in a regular session with the following members present: Jane Monday, Mayor 0. Eugene Barrett Ile Gaines Jerry Dowling Percy Howard, Jr. Stephen E. Davis Gary Bell Bill Green Member absent: Dick Wharton City Officers Present: Gene Pipes, City Manager Ruth DeShav, City Secretary Scott Bounds, City Attorney The Mayor convened the meeting for citizen input. CITIZEN INPUT Bo Bertling, 119 Willow Bend -- 295 -2048 Mr. Bertling presented a written address to the City Council concerning questions on the water /sewage extension on I -45 (as requested by Mr. Hugh D. Schmieder, President, Houston West Auto -Truck Center of Brookshire Texas for a new multi -use commercial complex -truck stop). His remarks are included in the minutes as follows: "1. If the project is completed, who would benefit now? The city would receive some undetermined amount of property and sales taxes, and TDC, Union 76, and some undeveloped land would benefit. "2. If the same money were spent renovating sewer /water systems downtown or in the older residential areas who would benefit? A large number of persons who have been paying city water bills for years. An example of one is the Cafe Texan, which has been paying water bills for the last 50 years. Mr. Pipes has said 'water and sewer are proprietary funds generated by the fees the city's customers pay for water and sewer service.' He also stated that 'there are areas of the city with water lines that need to be replaced, but without expanding the water system and bringing on new customers, the city would have to double its fees to pay for repairs and replacements.' I understand that the Hitchin' Pos has only been paying water bills for 20 years, but how much longer will the downtown area continue to wait for decent service lines, another 50 years or more? As a businessman I have supported such down- town projects as the Fair on the Square, donated time and money to the renovation and expansion of the Town Creek Park, as well as serving a term on the United Way board, and various other civic activities showing that I am willing to give of myself to aid the community. An I getting the same consideration? "3. Mr. Pipes said in the last council meeting in response to Mrs. Gaines' question about other business' ability to get on the proposed sewer system that 'should they become disfunctional they may want a solution other than rebuilding their sewer system....however they may never want to get on the sewer system if their septic systems continue to work fine.' I don't know who else Mr. Pipes contacted con- cerning this, but the Hitchin' Post discussed with the city larger size water lines and sewage service as far back as 15 years ago and as recently as 2 years ago. At that time the Blue Beacon Truck Wash was interested in locating in Huntsville, but could not arrive at an acceptable cost for water and sewer, so they located in Ennis instead. We were advised we would pay the entire cost of water and sewer extension, which at the time was 868,000. "We are within the city limits and are still on a septic system which has lines running out toward the city landfill. I wonder who in this county has a septic system that 'works fine' in comparison to our city sewage system? TDC wants us to improve their land values and all of a sudden TDC fits into our plans well enough for us to spend a quarter of a million dollars on it: "4. What kind of a precedent are we setting by this subsidation? Mr. Pipes has said in reference to the completion of the proposed water /sewer lines that 'future TDC leases.... (can) access and proceed to develop in a normal way.' Is normal the further acceleration of TDC land leases? Mr. Pipes said that 'Governor Clements is looking for additional funds and this lease program appears very favorable at this time.' If the answer to TDC's financial problems is to aggressively lease their lands, imagine the impact to our local private realtors trying to lease private lands (which are plentiful) in competition, with an entity that has not, will not, nor can not pay city land use taxes. It would definitely give TDC an edge that 1 personally would not like to be responsible for making that kind of a decision. "5. Are we creating new business and jobs for our community by doing this? The Hitchin' Post currently accepts Union 76 credit cards, so the fuel usage and sales tax would not be increased. The Blue Beacon' Truck Wash could have provided 15 to 20 jobs if the City would have subsidized it. That is approxi- mately the total number of jobs the proposed new facility plans to add. The Hitchin' Post currently pays *16,000 annualy in taxes. If it had been supported with water and sewer it would have seen more land improvements and, of course, sewage fees. There already are restaurants all up and down the Corridor and 1 doubt that they would be happy to share a little of it especially in these tough econo- mic times. I wonder if its the new motel planned, no, I don't think so, especially in light of the new Convention Center complex planned by the Chamber of Commerce that looks as if it will be a reality. Have you asked our local motel owners if their occupancy rate is adequate to meet their goals; don't unless you can stand to see a grown man cry. Perhaps it's the proposed strip center that will adjoin the complex, we really need another one of those! So ask yourself what we are getting for our quarter of a million dollars? Another bit out of our established business' pie, improved TDC land, and a lot of undeveloped land with sewage and water to it "6. Would the addition of a new truck stop escalate the chance of making the feeder roads beside 1 -45 one -way? Of course no one knows what's in the mind of the Texas Highway Department, but it would seem that the chances would increase drastically if heavy truck traffic increased. Go tell the business' along the Corridor that you voted for that! "In closing, I challenge the council to contact and inform the businesses to be affected and to think seriously about your decision on this matter. Especially in light of our depressed economy. Do we really need to spend our money to open new development when our present water and sewer system is in such poor shape? Do we need to take another chunk away from our current businesses' profits, or are we going to make another business go broke in the name of progress? We are not opposed to your assistance to a new business, on the contrary we would love to see Huntsville grow and prosper, but are asking you not to put us in a position of non - competitiveness. The Hitchin' Post has been in Huntsville since 1967 and pays taxes on our land as well as the improvements. We only ask that what is done for our competitors be done for us. Thank you. MINUTES OF JANUARY 27. 1987 -- CITY COUNCIL MEETING BOOR "0" PAGE 833 There being no one else signed up to speak during citizen input, Mayor Monday then closed the citizen input section of the agenda. PRESENTATION Kathy James, Grant Coordinator, to make presentation Ms. James advised she attended a luncheon on behalf of the Mayor in Lufkin, hosted by the Departmentcf Hous- ing & Rural Development, held in honor of grantees (cities) that had performed well in the administration of theft grant. She said the City of Huntsville received a certificate of appreciation at this luncheon as being one of approximately 32 cities and /or counties in the East Texas region being honored. She then displayed the Certificate of Appreciation in recognition of the successful completion of a $2.25 million Community Development Block Grant utilized in rehabilitating the New Addition property from the U. S. of America, Department of Hous- ing and Urban Development, expressing its appreciation for furthering the Administration's goal of a higher standard of living for all citizens. Mayor Monday commended Ms. James for her administration of that project. She said there is no doubt that Huntsville is a much better place to live because of what this grant allowed us to accomplish. FORMAL SESSION Mayor Monday then called the formal session open. She presented the invocator as Councilmember Percy Howard, Jr., Councilmember of Ward Three, who then presented the invocation. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Barrett made the motion to approve of the minutes of the meeting of January 13, 1987 and Councilmember Bell seconded the motion. All were in favor and the motion passed unanimously. CONSIDER AGREEMENT Consider the agreement for the conduct of joint elections with HISD on April 4, 1987 Mr. Pipes, City Manager, advised the Council of the terms of the agreement for the City to conduct a joint election with the school district. He advised it is similar to the contract we have had since 1982 with the district. He said it sets out the polling places, the procedures and the cost split for the election. He then recommended it for the Council's approval. Councilmember Gaines made the motion to approve of this joint elec- tion agreement with HISD and Councilmember Bell seconded the motion. All were in favor and the motion passed unanimously. CONSIDER ORDINANCE Consider Ordinance 87 -3 ordering a municipal election on April 4, 1987 Mayor Monday then presented this ordinance, the caption of which is as follows: ORDINANCE NO. 87 -3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, ORDERING A MUNICIPAL ELECTION TO BE HELD ON THE 4TH DAY OF APRIL, 1987, FOR THE PURPOSE OF ELECTING A MAYOR AT- LARGE, A COUNCIL MEMBER FROM AT -LARGE POSITION NUMBER THREE, AND FOUR COUNCILMEN ERS, ONE FROM EACH OF THE CITY'S FOUR WARDS ONE, TWO, THREE AND FOUR; PROVIDING FOR ELECTION OFFICERS; DESIGNATING THE PLACES AND MANNER OF HOLDING SAID ELECTION; AND PROVIDING FOR THE POSTING AND PUBLICATION OF NOTICE. The ordinance specified the names of the election judges and alternates. It was noted only one polling place has changed since the last municipal election and that is in Precinct 401 where the polling place is changing from the Goree Unit Recreation Building to the Walker County Appraisal District Office. This change was made to bring the polling place into compliance with the handicap regulations of the state election code. Councilmemb Barrett made a motion to approve the ordinance and Councilmember Davis seconded the motion. Discussion: Councilmember Jerry Dowling noted he has some difficulty calling an election for a position (at- large, Position Three) which, technically, is not vacant. Mayor Monday advised the Council that she has received a letter from Councilmember Stephen E. Davis, Councilmember, Position 3 at- large, which advises of his resignation notice to be effective February 23, 1987, due to his plan to move his residence to a place outside the city. Mayor Monday read the letter aloud to the City Council. She noted this is justification then to allow a place on the upcomin election ballot for this position. Councilmember Dowling noted the Charter requires that vacancies be filled by election, rather than by appointment by the Council. The resignation letter is reproduced below: "January 27, 1987 "City Council "City of Huntsville "Dear Mayor and Fellow Councilmembers: "I have enjoyed serving the City of Huntsville and its citizens as a councilmember for the past five years. I will, however, soon be required to resign my position as councilmember because I will be moving my residence to an area just outside the corporate limits of the City of Huntsville. "Please accept this letter as notice that, effective February 23, 1987, I resign myself from my position as Councilmember, At -Large Position 3, of the City Council of the City of Huntsville, Texas. "Good luck in the upcoming elections. "Sincerely, "Stephen Davis" There being no further discussion, all were in favor of the motion on the floor to adopt Ordinance No. 87 -3, as captioned above, and it passed unanimously. Z f a CONSIDER BIDS Consider Bid 87 -10- -chain link fence installation at Huntsville Housing Authority, as determined by lot due to tied low bid, to be funded by the street bond program proceeds Mr. Gene Pipes, City Manager, advised the Council that although there were seven bidders, the two low bidders are tied in their price: Champion Landscape and Four Seasons Fence Company, Inc., both bid $4,500 and both met specifications. He said this bid is for 1,000 linear feet of four foot high chainlink fence to be furnished and erected as required for the installation of chainlink fence for the Housing Authority on Avenue F. He said it is the staff's recommendation to accept the low bid of $4,500, the award of which is to be as per Article 2367A, Section One of Vernon Civil Statutes, which allows a coin flip to decide. The Council was advised that the installation of this fence is in lieu of a right -of -way acquired from the Housing Authority at the time the City straightened out the dog -leg in Avenue F at 3rd Street. He said the stipulation was to have a traffic control device (atop sign) at that intersection and also this chain link fence for the safety of the residents. Mayor Monday then said Champion Landscape will be assigned heads on the coin and Four Seasons Fence Company Inc. will be assigned tails. Mr. Pipes, City Manager, then flipped the coin and it landed heads up, therefore, Champion Landscape will be awarded the bid of $4,500 for this fence installation. Councilmember Barrett made the motion to approve of Champion Landscape's bid of $4,500 for the installation of the chain link fence at the Huntsville Housing Authority and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. Councilmember Davis expressed his concern that proper notice be given to the other low bidder as to the procedure used in selecting the tied bidder. Patricia Allen, Director of Finance, advised both low bidders were aware the decision would be made with a coin flip. Consider Bid 87 -9 for police radios to Motorola in the amount of $8,000 from budgeted funds, as recommended by staff Mr. Pipes, City Manager, noted these are replacement items for radios that are presently in service. He advised the other bidder did not meet specifications (Kennedy Assoc., Inc. at $4,888.60). Councilmember Green made the motion to approve the bid of Motorola in the amount of 98,000 from budgeted funds and Councilmember Bell seconded the motion. Discussion: Councilmember Green asked why Kennedy Assoc., Inc.'s bid did not meet specifications. Chief Hank Eckhardt, Police Chief, advised the specifications required a radio that could with- stand considerable jarring as they would be carried in the trunks of police cars and the Kennedy Assoc.'s radios did not meet those heavy duty specifications. He said in addition, their radios cannot be maintained easily as there 1s no one in the local area who carries repair parts. He said a local merchant stopped carrying these radios because of poor service support from the company. Councilmember Green said then their radio did not meet specifications from the technical standpoint because of jarring. Chief Eckhardt said the impact resistance standard required was not met. Councilmember Green asked if there is a standard abuse level that other companies can bid on. Chief Eckhardt said he could not positively answer that. Chief Eckhardt advised G.E. did not bid and that the local merchants were given the opportunity to bid. He said Motorola home office was asked to bid and they can quote a lower price than a local merchant. He said the motorola radios can be serviced by a Hunts- ville firm or one from Livingston, the latter of which plans to open a shop in Huntsville as well. He said to service the other bidder's radios would require taking the equipment to San Antonio or Houston and this would be difficult as it would mean tying a person up for a full day. Chief Eckhardt indicated he is comfortable with the Motorola bid as it is in line with the traditional costs of this quality equipment. Councilmember Dowling said Motorola is the predominant vendor of police radio equipment in America. He said it is good equipment, but the price is high. After some additional brief comments, the Mayor called for a vote on the motion. All were in favor and the motion passed unanimously. SUPPLEMENTAL AGENDA ITEM Discuss Elkins Lake incorporation /annexation criteria Mayor Jane Monday advised that this item was posted at 5:45 P.M. on January 26, 1987. She indicated the City Attorney, Scott Bounds, has prepared a paper in response to the petition received from the Elkins Lake residents recently (minutes of January 13, 1987). Mr. Bounds paper of January 27, 1987, is presented in its entirety below: "T0: City Council "FROM: Scott Bounds, City Attorney "RE: Elkins Lake "THE PROPOSAL "In late 1968 the City was approached by Mr. Helen and Mr. Baisdon (sic ?) about granting authority for a water district partially within the City's extra - territorial jurisdiction. The proposed water district, or M.U.D. included property acquired by the developers from Judge Elkins. At that time Mr. Constant R. Marks, an engine with Lockwood, Andrews d Newnan (LAN), was employed by the City to evaluate the developers' request. The proposed water district consisted of 1002.26 acres and was proposed to be called Lakewood Hills Municipal Utility District.fn 1 "Turner. Collie b Braden, Inc., the engineer for the proposed H.U.D. represented to the City of Huntsville, Texas, that initial occupancy of the proposed development would begin in late 1970, that the development would initially grow at a rate of 50 -100 homes per year, that the average growth of the development would be 150 homes per year, that the project would be 751 complete by 1980, that the average water use per lot would be 600 gallons per day, and that the estimated ultimate water use would be 1.5 mgdin 2 "THE ENGAGEMENT "On November 12, 1968, the City Council of the City of Huntsville, Texas unanimously approved a resolution giving consent to the creation of the M.U.D. That consent was conditioned upon three terms: fn 1 Since a Lakewood Hills M.U.D. already existed, the proposed water district was renamed. fn 2 In fact, initially the development grew at a rate of about 14 homes per year, that the average growth of the development has been about 34 homes per year, that the project was 152 complete at the end of 1980, project is about 232 complete, the average water use per lot is now 54 gallons per day (7,325 gal. /home per month), and the total eater consumption is about 107,670 mgd. r "(a) the construction of the District's water, sever and other improvements will be in accordance with applicable standards and specifications of the City of Huntsville, Texas, as established by the ordinances of the City of Huntsville, Texas, and shall be subject to approval by the City (emphasis added); , "(b) all bonds of the District shall be sold for cash at not less than 952 of the par value thereof, an no bonds shall be exchanged for property or services. All bonds of the District shall be subject to redemp- tion at par, plus • premium of not in excess of 52 on their 20th anniversary and at par on their 25th aniiver sary; and "(c) the district shall file an annual audit with the City, and all books and records of the District shall be open to the public inspection at all reasonable times. "SETTING THE DATE "The City openly addressed the ultimate annexation of Elkins Lake by the report of LAN which was made a part of the City's official minutes: 'It appears very likely that City may ultimately wish to annex the development. In fact the residents may ultimately desire the police, fire, garbage collection, and other services which the City can provide. Whenever the City does annex the Development, we understand that the City is legally required to take over the District's (N.U.D.) assets and assume its obligations within 90 days. Doing this at the proper time might not place any financial burden on the City. The District must set a fairly high valuation and ta: rate in order to finance the improvements during the early stage of development. If District is soundly engineered and financed, the time should come when the income (tax plus revenue) from the District will exce its costs (for bond service plus operation of the facilities). At this point the City could annex the devel, ment without incurring any financial burden. 'In other words, if the District's affairs are properly conducted, and if the Development is successful there should come a time when the City could annex it and realize enough revenue to offset the costs of assuming District's obligations.' "To date, the M.P.D. has not been so successful or so operated as to permit the City to annex it and realize enough revenue to offset the costs of assuming District's obligations. It is, however, clear that t City of Huntsville did desire in 1968 to ensure to the extent that it could that favorable conditions would exist for the future annexation of the M.U.D. by the City. "TRIAL SEPARATIONS (The five year itch) "Prior to Council's receipt this year of a petition for incorporation, there have been two previous efforts by some residents of the M.U.D. to accommodate incorporation. "(a) The 1976 -1977 incorporation effort "In April 1976, Cliff Anderson and Pete Wall asked that the City annex Elkins Lake. At that time needs stressed were no traffic control, no street maintenance, dog regulations, and burglaries result- ing from understaffing at Walker County Sheriff's Office. Mayor Waller noted that the City could not afford to annex Elkins Lake, but would be disappointed if Elkins Lake incorporated. In May 1976, City Council received a petition for its consent to permit an incorporation election. In June 1987, the Cit rejected the petitioners request stating that it was not in the best long term interests of the city to permit Elkins Lake to incorporate. "After the City rejected the petitioners request for consent to an incorporation election, petitioners requested the County to order an election on incorporation for all property outside ETJ of the City. In April 1977 those residents of Elkins Lake voted against incorporation.fn 3 "(b) The 1980 -1981 effort "On August 22, 1980, residents of the southern half of Elkins Lake petitioned Walker County Judge Davis to call an election on incorporation. In November 1980 the Judge set an election for January 196 According to The Item, unnamed proponents of the incorporation effort stated the reasons to be the need fcn road maintenance and the City would not annex the subdivision in the foreseeable future. "The 1980 -81 incorporation effort again included only the southern half of Elkins Lake bfcause the proponents of the incorporation did not want to meet the petition requirements for incorporation inside the City of Huntsville's ETJ. Therefore, they requested to incorporate only that part of Elkins Lake outside Huntsville's ETJ. The incorporation measure failed in January 1981.fn 4 "(c) The 1986 -87 effort "On January 13, 1987, Mr. Herman Wright presented to City Council a petition to incorporate 1,0004 acres of Elkins Lake. The petition is signed by 66 persons representing about 33 households in Elkins Lake.fn 5 The petition does not include the printed name of the signatories, their voter registration number, their address, or the date of signing. Section 1 of Acts 1985, 69th Leg., ch. 895, amended the Election Code by establishing uniform requirements for petitions. See TEXAS ELECTION CODE § 141.063; also V.A.T.S., TEXAS ELECTION CODE § 141.069. It therefore appears Chat the petition submitted to council requesting the City's consent for an incorporation election may be invalid. "GOING TO SEE A LAWYER "State law 1s not clear on whether the City should respond within 60 days or 6 months to a valid petitie requesting its consent to hold an election on incorporation that includes property within the City's ETJ. 11 the City does not respond, then consent is not granted. If the City consents to the petition request, the Walker County Judge must call an election solely on the issue of incorporation of Elkins Lake. "If the City does not consent, petitioners can after 6 months (and perhaps after 60 days) circulate a petition to request annexation of Elkins Lake by the City of Huntsville (or the area ultimately proposed to fn 3 fn 4 fn 5 The incorporation measure failed by a vote of 54 -62. The incorporation measure failed by a vote of 80 -121. There are approximately 480 households and 1500 property owners in Elkins Lake. • be incorporated) among the residents and propert)CRoweers. • or more o t s rigs en owners 303 or more of the property proposed to be Incorporated request that the City annex them, then either the City must annex the area within six months or else the Walker.County Judge must call the incorporation election. An incorporation election may be held without City consent only after the annexation petition is presented to the City and rejected or not acted on by the City. "PREDICTING THE FUTURE • "The relationship between the City and Elkins Lake may exist in (5 -10 years). First, the City and the M.U.D. may continue to co -exis by the expiration of the City's contractual duty to provide water to "Second, the City and the M.U.D. may tie the knot by annexation. process by an agreement for annexation. one t. the of three modes in the immediate future This relationship is impacted at least M.U.D. in 1989. The H.U.D. and City could expedite this "Third, all or part of the M.U.D. could divorce itself from the City by incorporation. "My recommendation to City Council is that it explore the possibilities with the M.U.D. of negotiating an annexation agreement. Additionally, I simply need more time to adequately address the pros and cons of these three relationships." (signed: Scott Bounds, City Attorney) Mayor Monday thanked Mr. Bounds for this presentation. She then asked the City Manager, Gene Pipes, to address the question of water service to Elkins Lake. The report given by Mr. Pipes is presented in its entirety as follows: "To: "FROM: "RE: Mayor and City Council Gene Pipes, City Manager Elkins Lake Water System Proposal "January 27, 1987 "Approximately two weeks ago the City was notified in a letter from Mr. Rascoe Story of a meeting planned by the Elkins Lake M.U.D. Board to hear a consulting engineer's report that would examine the feasibility of an independent water system for Elkins Lake in a greater depth than had been done by the Dannenbaum Study a year ago. Mr. Story's letter invited (a) City representative(s) to attend and Mr. Boyd Wilder and Mr. Glenn Isbel went to the Wednesday evening, January 14 meeting for the City. "Messrs. Wilder and Isbell have discussed their impressions of the outcome of this meeting with me and others in the intervening two weeks. Their analysis of the meeting's conclusion reflects the final statement in Mr. Story's letter of notice and invitation - -that is...'that an independent water system for Elkins Lake is most probably the 'best course of action' for Elkins Lake.' Several questions were raised from the small group of residents and interested persons in attendance at the meeting to which the response of various board members left the impression that there was no urgency to reach a decision other than a 17 month process time estimate for bringing the wells on line and a 1989 expiration of the water contract with the City of Huntsville. "Consequently, we were surprised to find out about the agenda of the 3:00 p.m. M.U.D. Board meeting around noon yesterday (January 26). We were amazed at the initiation of the process whereby approvals would be sought from the City and the Texas Water Commission on this matter. We are concerned that the vast majority of Elkins Lake residents are not aware or even suspect that the Board's action yesterday significantly changes the 19 yea old sympatico relationship with the City of Huntsville and abandons a number of initiatives that have been offered to remedy the targeted concerns that such an independent water system would address at a fraction of the purported costs. "As evidenced in the Huntsville Item story of today and the meetings of yesterday afternoon and two weeks ago tomorrow night, the estimated costs of an independent water system for Elkins Lake range from $800k to $2 million depending on several factors. The purpose cited is to provide better water at a cheaper cost. Each goal is commendable and deserves further amplification and analysis. "(1) better water: refers obviously to the periodic brown water episodes that Elkins and areas of Huntsvill* that are still served principally by well water are subject to without warning on a too frequent basis. No doubt that this problem is a sore spot - -it used to be a City -wide phenomenon that has been researched to death looking for a 'magic' cure. There is no such easy solution. However, the City Council Committee did offer two solutions to the problem to the M.U.D. Board during on -going negotiations last year. They were: "A. Flush the extensive pipe network that is the Elkins Lake distribution system on a regular and routine basis to move the water within the system and purge the mineral deposits. Boyd Wilder had proposed the same thing a year before on an 'at cost' basis but was turned down. The City Council Committee offered to do it for a year 'free' and was also rejected. (The engineers that were hired by the Board most recently reported that regular- routine maintenance (flushing) was a key element to ridding the system of brown water even if it were independent.) "B. The City Council also offered to joint venture a raw water transmission line from the Spring Creek plant (well water) back to Palm Street to maximize the City's water resource and mix with the surface water provided by T.R.A. in order to provide the same clarity and quality of water to the southern reaches of our water distribution system that all other users enjoy. The cost of this project (first envisioned in a 1968 engineering evaluation of the formation of E.L.M.U.D.) was $200,000 for Elkins and $400,000 for the City which included some costs that were uniquely ours in the difference. The H.U.D. Board rejected the proposal as a case of spending money on the 'City's system' ... the irony of which is that the kicker was a water rate parity for Elkins Lake residents. Funds for such a 'participation solution' to our joint problem were already available in the M.U.D.'s surplus and the City had sufficient reserve in our C.I.P. program to effect the plan. "(2) Cheaper cost is sometimes a matter of perspective and analyses. One might say that you can make the numbers say what you want them to. Some facts may clarify the issue of cost: "A. It ignores the solutions offered last year by the City at a fraction of the price. $200,000 vs. $800,000 - $2,000,000. "B. A single well system will not suffice for peak or emergency demands placed on the system in dry months and in case of fire and as stated in a December 1985 position paper on Elkins Lake, beyond the 1989 expira- tion date of our water contract, the City of Huntsville will not serve as a convenient back up for such an invalid system in light of our 19 years of being a crutch. Therefore, they will need a minimum of two water wells- -not one to provide any redundancy. *Director of Public Utilities * *Director of Design Engineering (City Engineer) zs "C. The method of repayment of these tremendous capital expendit.tres 1s somewhat nebulous in that one boar.' member mentioned the possibility of tax levy two weeks ago (for income tax purposes) and now there is talk rate payers picking up the tab. Either method, it is clear that the cost will be well in excess of qhe current status, the f ble future and even long range. "The news paper adequately covered the tax impact angle today. The projected 1.43/100 d valuation increase should be explained to further illuminate the facts and let the tax /ratepayers judge their ownself interest. We quickly calculated that 82M over 20 years at 92 interest at the current Elkins Lake evaluatior would require the 8.43 hike in the levy. In fairness, I'm sure that the values will increase in Elkins over time and the rates will proportionately decrease accordingly. But what about the chilling effect on develo; went that the far - and -away highest tax rate in Walker County may have on such growth. "The water rate route is similarly perplexing. The City now charges the M.U.D. $2.70/thousand gallon eater. They tack on a little surcharge but that's not our business. The Engineers hired by the Board and reporting to their meeting two weeks ago indicated that the capitalization for one well and filtration system would necessitate a $3.40/1000 gallon charge to the existing 500 residents declining to 82.40 when 750 residents are paying; then rising again as the second well 1s brought on line should the City not serve as a convenient backup. They already know the answer to that question so one must assume that the two are cheaper- than -one system might carry over to water well drilling business and they had better factor in such costs to their customers now, so that they can get acclimated to the price. "The H.U.D. Board's action of yesterday to initiate an independent water system is at least short sighted in that: "1. if the growth takes place that the M.U.D. Board expects in order to lower the water rates to currrent or lower levels, a second - -more devastating problem is just around the bend. That is sewer. The analysis that Glenn Isbell (City Engineer) will present later tonight will clearly indicate a rather substantial infiltration /inflow problem with the Elkins Lake collection system that may significantly reduce the 1140 residents that would normally be connected to the sewer system under an average daily flow per household calculation to use up the 400,000 gal /day capacity that was originally purchased. The next expansion of the T.B. Davidson (South) plant will be very expensive and Huntsville has all the capacity that it is likely to need for at least 20 years already in place. "2. The relative costs to Elkins Lake residents for water is greatly misunderstood. A side by side compariso: is a real eye opener. "City resident pays Elkins resident pays "3. $3.55 for the 1st 3000 gal. and $2.70 per 1000 $1.80 all over 1000 3000 gallons 810.65 $ 8.10 5000 gallons $14.25 $13.50 7000 gallons $17.85 518.90 "The average consumer in Elkins uses 7,325 gallons, so, their cost is only slightly higher than their 'in -town' neighbor (without surcharge). There is no doubt that any subdivision in Huntsville could get themselves disannexed; drill a couple of wells; and provide rudimentary utility service with a nearby good neighbor backing up their system do it cheaper than the City might in the short run (Spring Lake could for instance). But in the best interest of the entire entity, its planning and finance future and concerns about the auxili aspects -- police, fire, garbage, stray dogs, health, library, and business it is doubtful that any area benefits from moating itself. The matters that Scott has mentioned earlier; the 1985 position paper; the periodic negotiations offers; the 1968 engineering study and enabling resolution which led to the formation of the M.U.D. and all that has been otherwise written and said over the past 19 years of patient nurturing of our relationship deserves a mor enlightened evaluation of the proposals by the Board and the incorporation advocacy group. The City always stands ready to provide Information to any party interested in our future." Mayor Monday then thanked Mr. Pipes for this presentation. She asked the Council if they had any questions on any of the information presented. Councilmember Bell expressed concern for the impact on the city if Elkins %Lake drills a water well into the same aquifer serving the City's well. Mr. Pipes advised of earlier studies (germane to this and indicated it would indeed affect the city adversely. Councilmember Bell noted then it would be in our best interests to fight any attempt to drill into this aquifer. Mr. Pipes said this has been the city Uposition. Councilmember Bell noted too that if Elkins Lake incurs even additional debt, it will then be virtual impossible for the city to annex them financially. Mr. Pipes said Elkins Lake's current debt is in excess of $4.5 million ($4.7 million according to a 1986 city analysis). He said for the City to annex them would cost every taxpayer in the city 5c increase on the ad valorem taxes to absorb the debt alone, excluding additional maintenance costs, street repairs, police service, etc., lust to assume their current debt situation. He said should they incur additional expenses, it would indefinitely postpone annexation. Councilmember Green asked if the difference between $800,000 and $2,000,000 the cost of two wells instead of one. Mr. Pipes said that is the comfortable range for two wells(drilling, storage tank, in -line booster pumps, clorination and chemical feed systems, filtration system or sequestering agent) vitht he first costing 11.3 million and the second about 8800,000. Councilmember Bell noted if the City does not act as a back -up, Elkins would need two wells. Mr. Pipes said this depends on how much security the residents want. He said if they have one well and get into July and have a power failure or some other change in the system, they would have a very difficult situation especially if the ground storage tank is small. He said a fire pumper can pump a 10,000 gallon tank in two minut in the event of a fire. Councilmember Bell asked Mr. Pipes to give the approximate schedules for annexation without additional debt and with additional debt. Mr. Bounds said that information will be published soon. He said we had mentioned t date of 1992, without additional debt. He said there are things Elkins M.U.D. can do that would expedite those circumstances and he will be studying those in more detail. Mayor Monday said it is a very feasible thing to c if the inclination to do that is there. Councilmember Davis asked how Elkins Lake M.U.D.'s progressing on a new water well fit into our relationshf Mr. Pipes said the enabling resolution that allowed the creation of the district stipulated they must seek apprc of the City Council for any improvement or changes to their water system. He said he expects them to do that it the very near future. • • Councilmember Davis felt the city should think ion an4 ;hard before it acquires that many streets to rehabili- tate, keeping in mind their tax structure now. Mayor Monday noted • year ago the Council Subcommittee made negotiation attempts to improve water quality and to address rate parity. She said we proposed a ;200,000 solution to [heir eater quality problem and at the same time offered rate parity. They left the negotiating !•Die indicating water unlit is not the problem. B quality She noted now they are back asking for a better quality of water at a lower rate with a proposal for a $1.2 million solution as opposed to our ;200,000 solution offered six months ago. She said her question to Elkins Lake residents is "Why in the world would you spend ;1.2 to 2 million dollars to solve a problem we offered to solve jointly with you for $200,000?" She said the second thing she would ask the Elkins Lake people is, and she understands that streets are • problem at Elkins Lake- -the city offered to work cooperatively with Elkins Lake last may to solve those street problems as we move toward annexation through some sort of agreement- - "Why, if you could have solved your water quality problem with 8200,000 instead of 82 million, nottake that extra money and help form a Road Improvement District or begin to work to solve the street problem?" She said the City could look at working with them on a contract basis. She indicated she does not understand the dollar decisions being made by the Elkins Lake MUD Board. Mr. Pipes responded to Councilmember Bell's inquiry about the brown water problem. He said the well water is the source of the brown water problem. He said part of the well drilling program is the filtration or the sequestering agent program as options. He said once the water has entered into the distribution system (22 plus miles), the water lines of which were sized by Turner, Collie and Braden for maximum development of the 2200 lots with the projected 752 development by 1980. He said 54 gallons a day for 500 houses in a 12 inch main there would be a little trickle of water running through it and the best of it sits there in the line and the iron qxide develops in the lines. He said the City regularly and routinely flushes its dead -end lines to move the water through the system to flush out those deposits that can turn the water brown in color. He said the city is attempting to tie all of the dead -end lines together so that that water can move in both directions through the use of loop lines. He said after many studies, it has been found that flushing is a part of any solution to the system, no matter the kind of sequestering agent or how much filtration you do. Councilmember Dowling asked if Elkins Lake drills its own wells and thereby cease being a water customer of the City, how would the loss of that water revenue affect the water rates in the city. Patricia Allen, Director of Finance, noted it would be a loss of about $9,500 a month. Councilmember Dowling asked if the city' rates would go up if this indeed happens to cover the debt service on the regional water system. Gene Pipes, City Manager, projected that the rates would not be affected and that the city could absorb the difference; however, any loss of customers would be felt by the city although he has not analyzed that impact. Councilmember Dowling then asked about the policies germane to the regionalization of water systems. Mr. Bounds said there are some regionalization issues: by contract with TRA- -there would be some regionaliza- tion as they are a political entity and are designed to construct, finance, and encourage regionalization; there are some equitable doctrines that apply where you have a regional wholesale to retail businesses; and with regari to the limitations if one agrees to provide the water; and the Texas Water Commission has a policy addressing regionalization of water facilities. He said the TRA owns the water plant as it is a regional plant, but the city owns the lines to the city. Councilmember Green asked if once approval is given to drill into an aquifer, if this also gives certain property rights to the water. Mr. Bounds said inthat case, the person with the biggest well gets the most water, so there are technically no property rights. Councilmember Dowling asked what effect there is on the city if this Elkins Lake petition for annexation or incorporation is not a valid petition. Mr. Bounds said if the city denies it, probably nothing, but if it were heeded and an incorporation election were set, it would be possible for there to be a void election. He said he would like some additional time to address that question since there is some question in the statutes as to the validity of the petition requirements. He said it has historically been the city's position that it is in the long term best interest of the City to annex Elkins Lake and not to have a separate corporate entity. He said based on this historical position, he would suggest that the City would deny this petition. He said he would like to research further the specific situation of today, however, to as to submit to the Council some additional guidelines as to the "pros" and "cons" or incorporation vs. annexation. Mayor Monday noted Glenn Isbell will be submitting his sewer analysis report later this evening. She noted it appears, from his work to far, that Elkins Lake may have a serious infiltration /inflow problem in their sewer system. Mr. Pipes said Mr. Isbell's analysis indicates that by subtracting the flow rate from the Club Lake Lift Station and other known flow rates in our lift station system, that 139 rounded to 1407 of the water usage at Elkins Lake returns to the sewer system at the South Plant, whereas most of the city residents have 802 of their consumed water returned to the sewer system (79.82). He said there appearsto be many leaks in their system to indicate that a major portion of the total flow at the south plant is pure water. Councilmember Dowling noted this is indicative of an imperfectly sealed system. Mr. Pipes said this also indi- cates that our request to the M.C.D. last year to consider "smoking" their system was a perfectly valid request. Mayor Monday said the point she is moving up to is that it may well be that the sewer plant out there would serve about 1140 houses at Elkins Lake if it were a tight system and it may well mean that less than that can be served with their capacity. She said if she were a property owner at Elkins Lake, one of the questions she would ask is if I'm not in the first 1140 houses, will I be able to build with sewer service? She said then if 1 needed sewer out there and Elkins Lake is incorporated, 1 wild assume the way I'd get that is to bare the full price of a sewer plant expansion (approximately 51.5 million). Mayor Monday stressed again that last May, Elkins Lake residents, could, for a 5200,000 participation solve the water problem, have their water rate go from 52.70 to our city rates, not incur an additional 51.2 to 52 million, etc. Councilmember Davis commented that the City will have to think long and hard before it considers annexing Elkins Lake. Councilmember Bell asked the Council if they would indulge allowing questions from the floor, since there were some Elkins Lake residents present. The Council agreed. No one, however, from the audience, posed any questions of the Council or staff. CITY MANAGER'S REPORT Installation of sidewalks request Mr. Pipes advised the City has received a letter concerning sidewalks on 19th Street along Gibbs Park west to Normal Park. He said the letter indicated that with HISD's policy changes, there will be more children walking the one block from Gibbs Elementary School to the Little Red Schoolhouse. He said the letter is from Hrs. Muriel Knotts, Director of the Little Red Schoolhouse. Mr. Pipes said he is bringing this to the Council's attention now for its future consideration. Mayor Monday noted at this time she would like to ask the staff to look at some type of sidewalk participation policy for the City. Councilmember Dowling commented that if the City is going to start considering a sidewalk program, the first order of business should be to amend the subdivision ordinance to require sidewalks in the subdivisions. He said it makes no sense for the city to come back and retrofit sidewalks which is something that is traditionally development cost. Mayor Monday said we may need to look at this if indeed that is the vay the schools are going with the neighborhood school concept. She asked the City Manager to have the staff look into these alternatives. Sales tax revenue report Mr. Pipes advised the Council that to -date. there is a 4.92 decrease in sales tax revenues. He sail if this trend continues, the City could have a revenue shortfall of $76.575. He said he would be attending a meeting in Conroe tomorrow, at the request of the City Manager in Conroe, for • meeting of city managers bathe GSU service area to review strategy in dealing with that particular ongoing saga. He said all of these things continue to attack our revenue picture. He said at mid -year, we may need to do some further trimming of thtt budget. He wanted the Council to be advised that "things are not looking up vet." After some discussion of the comparison of sales tax revenues, the Council moved to the next item on the agenda. MAYOR'S REPORT Consider appointment to the Police Promotional Review Board Mayor Monday noted Dr. Robert Shearer's term has expired on this three member board. She then submitted the name of Dr. Jerry Etheredge to fill this vacancy on this board for the next three years. She noted the other members of this board are Dr. Walter Bennett (1988) and Mr. Ken Sherrill (1989). Councilmember Green made the motion to approve of the appointment of Dr. Jerry Etheredge and Councilmember Bell seconded the motion. All were in favor and the motion passed unanimously. Consider appointments to the Tourist Council Mayor Monday noted a new slate of members is being proposed for the next one year period to serve on the Tourist Council. She said this is a joint appointment between the City and the Chamber of Commerce to make decisions on how tourism dollars are spent in our area. (Note: since this is a joint board with the Chamber, membership is not limited to city residents only, as is the policy for city boards and commissions.) The names of the members being presented for approval are as follows (to serve a one year term, January 1 through December 31, 1987): Toni Bruner Steve Bullard Jim Carroll Donna Coffen Betty Colley Sally Craycraft Candy Dixon Don Kraemer Ruth Lynn Parker Lisa Trow William Wood Gloria Pickett Wright �I Councilmember Gaines made the motion to approve of these members for the following year and Councilmember Hower, seconded the motion. All were in favor and the motion passed unanimously. Walker County Metropolitan Transportation Committee Meeting Report Mayor Monday advised she attended this meeting this morning. She stated this committee was established a little over a year ago and includes all of the mayors of the cities in Walker County, plus the Walker County Judge and Chairman of the Walker County Chamber Transportation Committee. This committee meets collectively to set priorities for Walker County transportation and then attempts to get those priorities funded through Austin She said the good news is that in mid -1986, $17 million dollars of work in Walker County was either authorized or completed (Highway 30 6 I -45 intersection widening $456,000; rehabilitation of the Louisiana Pacific road $306,000; Wood Farm Road bridge $200,000; rehabilitation of College Lake Road $295,000; overlay of Sam Houston Avenue and llth Street- -half completed - -total dollars authorized for that are $500,000; State Highway 150 from 1 -45 to the county line rehabilitation $2485,000; Highway 19 project to Riverside, $12,000,000. She said on the drawing board is the Cedar Creek County bridge for 9200,000; and the latest award is Smither Farm Road for about $1,000,000). She said the bad news is that the Highway Department has become involved in what is c d a Project Development Plan (PDP) which basically is their ten year plan in that they have three areas, th t year letting which means those projects are being let right now for work; a four year letting plan and a e year plan after that adding up to a ten year plan. She said in that 10 year PDP for the Highway Department, Walker County has zero projects. She said about 1,000 projects were proposed, about 4(0 approved, and Walker County did not get included. This committee is looking at this to see if anything can be done, she said, noting the plan is revised every two years. She said we will be looking at our highway count numbers and our road count numbers. COUNCIL ACTION Neighborhood Schools, Sidewalks, Traffic Councilmember Green noted we talked tonight about sidewalks to all the neighborhood schools if EISD stops busing those who live in a two -mile radius of that particular school, but we should also be concerned about the kind of traffic this change will produce around our schools as well if parents must drive their children to the schools. He said a few sidewalks will not solve the problem. He said we need to deal with the signifi- cant traffic problem that will develop. He said private sector transportation may have to pick up wiuere the District stops service, but no matter whose problem that is, he said the city will need to look at the traffic situation. Mayor Monday said the bottom line answer to all of this is "dollars." Councilmember Bell asked who would be responsible for crossing guards. Mayor Monday noted that would be a responsibility of the school district; and noted volunteer crossing guards are a problem because of the liability issue. Abandoned Buildings Councilmember Bell noted he is pleased to see some action to remove some of the abandoned buildings around town (Click's and the old Casa Tomas). Log Trucks in New Addition Area Councilmember Howard reported• he has received several complaints about log trucks in the New Addition area. Chief Eckhardt noted he will check into it as this is definitely getting off the established truck route. Avenue F Signalization Councilmember Dowling asked about the status of signalization on Avenue F. Mr. Pipes advised Feb. 1 may be the completion date as the mast arms are due in within the next week, according to the contractor. Elkins Lake Discussion Councilmember Dowling felt it important that the Council keep in mind that it is not our job to tell folk, who have chosen to live at Elkins Lake how to run their lives. It is our job, he said, to do what is in e be, interest of the City of Huntsville. NEWS MEDIA INQUIRIES ADJOURNMENT TO WORK SESSION RESPECTFULLY SUBMITTED, t v, C y Secretary January 27, 1987