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MIN CC 02/24/1987MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING -- Fg3EUAJ.T 24, 1987, Book 0 PAGE ri MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 24 TH DAY OF FEBRUARY. 1987 IN THE CITY HALL COUNCIL CONFERENCE ROOM, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 12:00 NOON The Council met in a regular session with the folloving members present: Jane Monday, Mayor 0. Eugene Barrett Gary Bell (left during Entex discussions) Ile G. Gaines William B. Green Percy Howard, Jr. Members absent: City Officers Present: (Note: Position Three at -large is vacant — resignation of Stephen E. Davis is effective February 23, 1987) Jerry L. Dowling Dick Wharton Gene Pipes, City Manager Scott Bounds, City Attorney Ruth DeShaw, City Secretary FORMAL MEETING The meeting was called to order by the Honorable Jane Monday. Councilmember Percy Howard, Jr. presented the invocation. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Barrett made the motion to approve the minutes of the previous meeting of February 17, 1987 and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. CONSIDER GAS COST OF SERVICE INCREASE Consider an Entex cost of service increase of 2.1 cents per day per customer (or $0.65 per month) to become effective April 1. 1987 Mr. Pipes presented the information from Entex as captioned. He advised if the Council wishes to take some action on this request, it must do so by April 1. He introduced Mr. Luther Jones, Manager of Entex, to respond to the Council's questions and to present some additional information. Mr. Pipes distributed a copy of the history of the cost of service adjustments over the last several years. He said the total gas bill is a three part matter: cost of service. base bill, and gas cost adiustment. All three of these come together to satire the total bill. He said the rate increases requested is the 65c per month in the cost of service area. The Council was advised that over the last several years, the City has had an annual request for cost of service increase, which has been primarily attributable to the fact that one of the three parts to the total gas billing structure - -the gas cost adjustment - -has been falling rather precipitously since deregulation in early 1980's, Mr. Pipes advised. He said each of these cost of service increases fall on the heels of a history of going nearly ten years without such a request because gas costs were up and the margin was a good deal higher. He said the Council can make a decision, either by taking no action by April 1 or taking some formal action before that time on the requested rate increase. Mr. Pipes said Entex is regulated by the Railroad Commission and the rates are established by the Railroad Commission and not by the Public Utilities Commission. He said if the Council chooses to differ with the rate increase request, then the final arbiter is the Railroad Commissio in setting a fair rate of return. He said the practice on the Railroad Commission has been such that they have not balked at anything less than 12 or 13Z as far as a fair rate of return on equity by these gas companies. He said this equity in this particular request is 4.492 which is considerably below the equity issue that the Rail- road Commission would be ruling on if it were bounced up to them for a decision. Mr. Pipes said Entex has provided information which shows they have reduced their costs rather substantially to the tune of some 810,000,000, so their operating expenses have been reduced this year, although it does not show how the costs have been reduced specifically in this area. He said Mr. Jones can perhaps expound on this. Mayor Monday asked if the increase is the same throughout their service area. Mr. Pipes said they are tryin to make it the same with perhaps a differential of approximately 50C per customer per month in the total service area. Mr. Pipes recalled a situation of some years ago where one incorporated area had charged for a tranamissio line easment through that area so they were paying about 50c higher than everyone else because Entex was recover- ing the cost of that easement to get their transmission line through there. Also, several years ago, he said, there was a rate differential for rural customers because of the expense of putting the lines out in the rural areas - -one has to go much further to get one or two customers and therefore the cost of the lines were higher. He said the intent, however, in the last ten years has been to try to get the rates as uniform as possible throughout a service area. Mayor Monday encouraged the Council to ask Mr. Jones any quetions they may have now. She welcomed Mr. Jones to the meeting. Mr. Luther Jones said the rates for Trinity, Groveton and Huntsville will be the same, but Tyler does not have a discount (or penalty for late payments). He said most everyone in this service area will have the same rate. He said the base rate is taken from the cost of their gas. He said if it is costing them $4.00 per thousand and if they put the base rate in and if the gas cost goes up or down (their average cost over the East Texas Division) say a nickel. if it goes to .405, then the gas cost adjustment is 5c a thousand. He said if it goes down, to .395, then it would be a -5c a thousand. He said the gas cost will fluctuate and since 1984, it has been in a "minus" situation. Mr. Jones said the cost of service is the amount their operating expense increased over the previous year. He said it is to recoup the operating expenses of the year before. He said it doesn't always go to a minus, even though they have cut almost 810,000,000 out of the East Texas Division's operating expenses. He said their sales were down due to vacant homes and businesses as a result of the sluggish economy. He said in Huntsville, he has reduced the telephone bill, one pick -up, one operations and service supervisor (transferred to another town) and he assumed his job as well, changed to cheaper gasoline for the trucks as Huntsville's contribution to that 810 million cost reduction effort division-wide. Mayor Monday asked for a similar history over the last ten (10)years for the base bill costs as well as the gas cost adjustments, noting we have the history on the cost of service adjustments. Mr. Pipes said the gas costa since 1981 have gone down. Mayor Monday said she like to see the same history for all three components so as to weigh all of that together. Mr. Jones said the gas coat was high because of the previous base rate. Mr. Jones said obviously the gas cost has increased over the last ten years because of the drilling, etc. costs (their cost of gas). Mr. Jones said he could get this information for the Council to review. FAGE SSO DOOR "0" COUNCIL MEETING OF FEBRUARY 24. 1987 Ma or Monday asked Mr. Jones how much be has reduced the cost of operations in our area. Mr. Jones said Mr. Jones said there have bean cost of service increases mach ear for the last 13 years. from 25c to 11.00 at one time. for a total over 13 years of 87.58. He said this Is he cost of providing the service at a location. He said they have 7,000 meters (Trinity, Groveton, Riverside, and all the others) and this amount 1s divided by the amount it takes to put gas there (although extensions cost more and are only done if economically feasible). He said costs are incurred when lines have to be replaced vhere service is already in existence as these must be done. He said insurance cost increases also enter the picture. Mr. Jones said replacement coats of meters, mains, etc. is considerably higher now than before. He said replacements are mandatory by the rules of the Railroad Commission and Entex itself, for safety reasons. He said the Highway Department construction work also causes them extra costs as they have to move their utility lines to make way for highway improvements. He said often these costs of service are not anticipated, although they try to budget for these things. He said when the city makes street improvements. this affects their cost of service as they have to move lines (such as on Avenue F, 7th Street, Bois d'Arc, and Cedar). He acid if we know about these things ahead of time, we can budget for it, but we don't have control over it as to whether we have to do it or not. Councilmember Barrett asked if the cost for improvements division vide are passed on to all customers in the division. Mr. Jones said this is true. Mr. Jones said the East Texas Division goes from Mineola, down Highway 80, Longview, Marshall, Carthage, Center, Kilgore, Lufkin, Nacogdoches, Tyler with Huntsville on the southern end and it goes to the Louisiana line. Councilmember Green asked if the cost of gas is strictly a pass through item. Mr. Jones said it is • dollar for dollar pass through —it 1s not a profit situation. Councilmember Green noted his calculations show that the cost of service has increased 4002 since 1974. He said this is • good bit above the consumer price index which has not increased 4002 in that length of time. Councilmember Green said the consumer price index is about 360 now, but that is a 1968 base. Mx. Jones said he does not have figures as to this relationship with him. Councilmember Green noted if he is looking at this right, our cost per customer now is $131 whereas in 1974. it was 830. Mr. Jones said their greatest additional costs come from the maintenance end. He said the Avenue F protect was an expensive maintenance protect for Entex and this expense did not brine in any more customers and this would NOT be tired to the consumer price index: however. if he oav€ more for a truck this year over the year before would be tied to that index. Mayor Monday asked also for the percentage of increase over the last five years, each year, then collec- tively. She expressed her concern that every year we ate here with "x" amount of an increase and although it comes in little bits, it adds up cumulatively to a pretty big total. She said she sees a pattern here of which she is uncomfortable. Mr. Jones said be does not anticipate as much coat of service this year as the highway department is not spending that much money and the same is true for the cities and counties in the Division. He said if the economy isn't moving es fast, then their cost of service will not move as fast either. Mayor Monday said this is a time when all of us have and are working very hard to hold the line on any kind of increase because of the economic situation. She said she has a great deal of concern in just granting someone 52 annually when the city and others are not doing that. She said if he has any justification as to why the city should continue to do this along this pattern or for this particular year, she would like to have more information. Councilmember Green recognized that some of this increase cost of service is due to the fact that there has been a loss of customers. Mr. Jones said he attributes those losses to businesses which in turn is attri- butable to the oil industry problem, and this has affected home occupancy as well. He said these losses are not in the control of Entex and does result in additional costs for others. Councilmember Barrett asked Mr. Jones if they had across the board salary increases in 1986. Mr. Jones said they did not, but in December of 1985, they did have a 32 increase across the board. Councilmember Barrett said most of the other entities are holding the line on those across the board increases. Mr. Jones said the only salary increases they had were in the area of promotions or merit raises. He said Entex is looking at not replacing employees who leave, unless there is a great deal of justification to replace that person and this attitude will continue throughout this year. He said Entex does not have f a t in its budget. He said he himself is doing two jobs (supervisor and manager). Mayor Monday thanked Mr. Jones for this presentation. She asked that the additional information she requested beprovided for the Council's review at the next meeting. CONSIDER ORDINANCES Consider Ordinance redistricting City Ward Two and City Ward Four in order to include within election precinct 206 a suitable building available for use as a polling place Mr. Scott Bounds, City Attorney, distributed the ordinance, the caption of which is as follows: ORDINANCE 87 -5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, REDISTRICTING COUNCIL WARD NUMBERS 2 AND 4 BY THE DELETION AND ADDITION OF CERTAIN PROPERTIES; AND PROVIDING THE EFFECTIVE DATE HEREOF. Mr. Bounds referred to a map of the election precinct and pointed out the location of the polling place used in previous years for Election Precinct 206 as being the Pine Bluff Missionary Baptist Church. He advised that the city has recently learned of a scheduling conflict for the use of that facility as a polling place in that precinct for the April 4, 1987 City -HISD joint election; the conflict being with a regional church board meeting He said there is not room in that facility to hold the election there as well. He noted the Texas Election Code encourages the use of public buildings as polling places. Mr. Bounds said there isn't a suitable building of soy kind in this precinct that 1s easily accessible, highly visible, and handicap accessible. He advised that just across the street, which is also across the election precinct line, is the Education Service Center. Region VI, which is on the same road as the old polling place, just a little closer towards the city. He said it would be accessible to all the voters of Election Precinct 206 and it is handicap accessible and there is more than adequate parking and room for voting and tallying. Mr. Bounds advised the Council that the Texas Election Code. Section 42.031 provides that a boundary change can be made to "include within • precinct a suitable building available for use as a polling place if no suit- able building 1s available for that purpose within the existing precinct boundary." He then proposed that the boundary line between city ward four and city ward two be amended simply to include that one building in yard four from yard two, noting the dividing line between those wards runs dovo the middle of the road. He advised the county, school and hospital officials, as well a■ the democratic and republican party chairpersons If nanulra WC raa,u+wwa r +, �i..• ve bean advised of this change and they are all in concurrence. He said all of us envision this change to be rmanent . The Council vas advised the Walker County Commissioner's Court will consider amending the voting precinct line between Election Precicnt 202 and 206 in conjunction vith the actions taken by the city when they meet on March 2. Scott Bounds advised there are two ordinances to accomplish this action, one revises the ward line to the effect that it diverts the line around the Education Service Center building and then back to the exist- ing line, and the second amends the ordinance calling the April 4 election to redesignate the polling location for voters in Election Precinct 206. Councilmember Gaines asked if any homes are affected by this change. Mr. Bounds said none, only a state owned building. Councilmember Green asked what the relationship is between the ward line and the precinct line. Bounds said they are one and the same in the area in question. Mr. Bounds noted a majority of the residents in this precinct drive right past this facility to get to the previously designated facility. Councilmember Green noted then it would be even more convenient. Councilmember Gaines noted there is better parking as well. Councilmember Barrett made the motion to adopt Ordinance No. 87 -5 and Councilmember Green seconded the motion. All were in favor of the motion and it passed unanimously. Consider ordinance amending the ordinance calling the election on April 4, 1987 by changing the boundary of election precinct 206 in order to include within that precinct a suitable building available for use as a pollin place, and designating the Region VI Education Service Center as a polling place to replace Pine Bluff Mission*r Baptist Church In conjunction with the previous ordinance then, Mayor Monday presented the next ordinance, the caption which 1s as follows: ORDINANCE N0. 87 -6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING AN ORDINANCE 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 COUNCILMEMBERS, ONE FROM EACH OF THE CITY'S FOUR WARDS ONE, TWO, THREE AND FOUR; AMENDING THE ELECTION OFFICERS FOR PRECINCT 202; CHANGING THE POLLING; CHANGING THE POLLING PLACE FOR ELECTION PRECINCT 206; AND PROVIDING FOR THE POSTING AND PUBLICATION OF NOTICE. Councilmember Howard made the motion to approve of this ordinance, as presented, and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. Consider ordinance authorizing the publication of notice to bidders and notice of intention to issue certifi- cates of obligation for a tandem axle dump truck, cab cassis and body. Mr. Gene Pipes, City Manager, presented this ordinance, the caption of vhich is as follows: ORDINANCE N0. 87 -7 AN ORDINANCE AUTHORIZING PUBLICATION OF NOTICE TO BIDDERS AND NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR A TANDEM AXLE DUMP TRUCK- -CAB CHASSIS AND BODY, AND MAKING VARIOUS PROVISIONS RELATED THERETO. Pipes said in this year's budget planning, it was planned to issue two certificates of obligation. In the all, he said, we actually advertised for the bids to be taken on both items. He said prior to issuing formal otice of our intention to issue the C.O.'s, even though that was our intent through the budget adoption, we anted to make sure we had dotted all I's and crossed all T's, so we asked that the Council reject the bids at hat time for this particular piece of equipment. Additionally, he said, at that time we were working very verishly in trying to expedite a transfer station system or other solution for solid waste disposal other than he current landfill site operation. He said because of the election process and the county facilities and personnel and all the changes, adjustments and timeliness in that and because the process is so elongated by the notice provisions and the bids to be taken in the delivery of equipment, we have every expectation of being in the landfill business for at least one more year. He said this same equipment can be used in the Street Depart- ment in subsequent years, if in fact, we shut our landfill down completely. The Council was asked to give their authorization to advertise the notice of intent to use certificates of obligation on this tandem axle dump truck. He said ve need to start working in the landfill pits as soon as it stops raining so that we will have additional space for this coming year. He said we are in fact behind time already. He said this dump truck will expedite this work tremendously. He said if an alternate method to land - filling does occur later on, ve can always transfer this truck to the Street Department. Mr. Poteete, Director of Public Utilities, estimated delivery would be approximately 90-120 days. He noted this is an addition to the sanitation fleet, not a replacement. He said we had been swapping vehicles back and forth between the Street Department and the Sanitation Department, but with all the street construction work, we have not had it available to swap. Mr. Poteete said this item was budgeted at $53,500. Councilmember Green made the motion to approve of this ordinance No. 87 -7 and Councilmember Barrett seconde• the motion. All were in favor and the motion passed unanimously. CITY MANAGER'S REPORT Carrizo- Wilcox Aquifer Mr. Pipes said the Catahoula Aquifer serves the City of Huntsville at the present and underlies all of Walker County and is directly under Huntsville. He said this is where we get our well water. He said the Carrizo- Wilcox formation is on the western most perimeter of Walker County and does not come very far into the county. He said it would come near serving Bedias. He said in the Jack Waldron study that we commissioned in 1984, Mr. Waldron mentioned that within 25 miles of Huntsville is the Carrizo - Wilcox formation and it could produce • substantial amount of water if we could ever afford to build a pipe line across there to get to it. He said the same thing is true of the Sparta formation on the north end of the County and also the Jasper forma- tion that comes in from the east in towards Phelps. He said that is the total ammzt of ground water available 1 Walker County. The Council was advised that Mr. Pipes has discussed with his staff the possibility of participating in e Carriso- Wilcox Aquifer District debate. He said we consider it so far removed from practicality that we PAGE B52 BOOR "0e MINUTES OF 171E MELTING OF ►RRRUART 24, 1lS7 would not intervene. Re said this information came omt of the Texas Register and we found a sufficient publica- tion notice in one of the Houston papers. He passed around a map shoving the prospective boundary limits of the management area being considered. He said it just barely encroaches on the nocehwet side of Walker County. Mayor Monday asked the City Manager to provide this information to Walker County officials. March Meeting Calendar Mr. Pipes presented the March meeting calendar, as follows: March 3 noted the meeting will be early and short so Council can participate in the grand opening ceremonies of the new shopping mall on Highway 30 vest at 7:30 P.M. Review of the current financial situation- -sales tax picture, ad valorem tax picture sod all the revenues and expenditures) March 17 Review completed financial report with a view of our capital water program. March 8 -14 SPRING BREAK (HISD AND SHSU) March 24 Jerry Dowling's Reception for eight years of service March 31 SKIP April 4 RECEIVE RESULTS OF ELECTION April 7 COUNCIL NEETING -- Canvass results of election and regular meeting MAYOR'S REPORT Jurisdictional Meeting — Walker County Appraisal District Office Mayor Monday noted she attended this meeting earlier this morning. She noted it is suggested that this meeting be held quarterly. She advised Mr. Grover Cook, Chief Appraiser, reported that Mr. Cecil Williams has resigned as a board member of the District due to his election as County Commissioner, Precinct Two. She said the jurisdictions will nominate someone to fill that vacancy and the board will choose a replacement from the nominations. She asked the Council members to be thinking about a nominee. Councilmember Green recalled lone sort of agreement last time that if someone from New Waverly went off this board that that position would be filled by someone from New Waverly so that each taxing jurisdiction would have someone on the board. Mayor Monday said this is the city's philosophy, but she is not sure that is shared by all of the other jurisdictions. She said, however, that is vhat happened last time. Counamebmer Green asked what entity specifically did Cecil Williams represent. Mayor Monday said basically not any because the philosophy has always been there would not be jurisdictions represented as everybody works for everybody. She said ballots will be sent out in October and need to be back in to November so that voting can occur and the position filled by January 1. She said we will be discussing what the philosophy of the city will be again before that election. Mayor Monday advised several things are coming up in Austin that affect the Appraisal District. She said a proposal was introduced in the senate to have the Appraisal Board Members put on a general ballot se opposed to being nominated by the jurisdictions. This proposal is now over at the House after being defeated in the Senate. She also advised there is a move afoot to have the appraisal and the review board duties handled by the county, which would put all of the appraisal work under the county tax office and appraisal review charge to con under the commissioner's court. The definition of market value is being discussed in Austin, she noted. The example used was the Kentucky Fried Chicken location here that if that piece of property (if you'll remember the house that sat there) could only be assessed at the value of its present use and therefore if that house and land was worth 130.000 and it was assessed at that, she said, vhil.ein reality, when it sold, it sold for 1250,000 and that is quite a bit of difference. She said this bill is also inthe legislature at this time. She noted a number of bills in this regard are being presented to the legislature and Mr. Cook reviewed those at this meeting. She said • good deal of time was spent talking about the amount of money Walker County (all taxing entities loses on mobile homes due to the fact that many disappear in the middle of the night and they have never paid their taxes. She said although no conclusions were reached as to how to counteract that situation, it was thoroughly discussed. Mayor Monday noted Mr. Cook has just come back from a tax abatement seminar. She said he will be forward- ing information about that to her. COUNCIL ACTION Montgomery Road -- Councilmember Gaines noted this road is in need of maintenance. Mr. Pipes said this is FM 1374 and s highway department responsibility, so he would pass it on to them. Councilmember Gaines also expressed her concern for the amount of garbage dumped along the road in that are Centerstrtpe over Overpass — Councilmember Barrett asked Mr. Pipes is he has succeeded in his efforts to get that centeretripe reduced. Mr. Pipes said he has referred this to the Highway Department. Avenue F 6 11th Street -- Mr. Pipes said the traffic signals there are now operational. Pine Drive -- Councilmember Green said he has received concerned calls from people who either live on this 'tree or on the corner that faces another street that have a great deal of concern and hove water and traffic problems. They also say they were never asked their opinion about paving or not paving Pine Drive, noting the Council was under the impression no one on that street wanted improvements because they might loose some of their stately pine trees vhich are close to the street. He asked that she staff reconsider the situation out there as it regards our original plan to curb and gutter Pine Drive. Mr. Pipes said the City received a petition last fall from the residents on Pine Drive that they did not want those improve- ments. He maid the Council asked the staff to quit working over there. Mr. Pipes said Pine Drive is between the pine tree• es they exist, it is half a Street, and it is not in the center of the right -of -way. He said to square it up and put it in as • curb and gutter street connecting 11th Street and Cedar would mean it would have to be cut down some as it comes Into Gder and 44 pins trees would have to come out as they are in the 'treat right-of -way. Mayor Mooday asked Mr. Patriots to come op with alternative. to curb dad,.