MIN CC 03/03/1987MUTES OF TTIL BUHT$V1LL! CITY COUNCIL Mitti$IG HELD on THE 'y:. .OL ,NM= ., 191{7101 THE CITY HALL COUNCIL
SAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY HALL, CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:45 P.M.
The Council met in regular session with the following members present:
Jane Monday, Mayor City Officers Present:
Gene Pipes, City Manager
Gene Barrett Member absent: Scott Bounds, City Attorney
Ila Gaines Dick Wharton Ruth DeShaw, City Secretary
Jerry Dowling s
Percy Howard, Jr. Note: Steve Davis' resignation
Gary Bell was effective February 23, ..
Bill Green 1987
The meeting was called to order by the Honorable Jane Monday, #lyor. The invocation vas presented by
Councilmember Percy Howard, Jr.
CONSIDER THE MINUTES OF THE PREVIOUS MEETING
Councilmember Barrett made the motion to approve of the February 24, 1987 minutes and Councilmember Ile
Gaines seconded the motion. Discussion: Councilmember Bell wished to amend the minutes to show that the
reason he left during the Entex discussions was to attend class, noting the meeting was held at noon and he
had a 12:30 P.M. class. Councilmembers Barrett and Gaines approved of this amendment. All were in favor of th
motion and it passed unanimously.
CONSIDER UTILITY EXTENSION PARTICIPATION
Consider a request for a utility extension participation for sewer service to the Sam Houston Plaza Shopping
Center (new McDonald's site at Avenue I) for an amount estimated at $2,665 to be paid from budgeted utility
extension fund which has a balance of $140,000.
City Manager, Gene Pipes, advised this site (formerly the old Casa Tomas Restaurant site) has been pur-
chased by McDonalds for use as a McDonald's Restaurant. He said they are dividing up a site that was originall"
all in one piece. He said the buildings to the rear of the property access the sewer through the middle of
the site that McDonald's has acquired. He said in order to relocate the sewer line in a dedicated easement
and put them in the proper form for a connection requires a sewer extension paralleling the access of Sam
Houston Avenue across the front of the property in a ten foot utility easement intersection about the middle
of the parking lot on the shopping center side of where the old Casa Tomas was. He said $2,265 would be the
estimated cost for the city's participation. He said Mr. Joseph E. (Kooter) Galloway has already put up his
share of the utility extension as owner of the property behind the new McDonald's site.
Mr. Sonny Davidson, Planner, advised in a memorandum, that the extension is necessitated by the fact that
the eight inch line that would normally be tapped is underneath the pavement of recently resurfaced Sam Houston
Avenue (U.S. Highway 75 S.) and is inaccessible because it is at approximately the same grade and elevation as
an 18 inch storm sewer paralleling the sanitary sewer and approximately 15 feet south. He said engineering
plans and estimates prepared for the requestor (Mr. Galloway), indicate 327.69 feet of sewer line and two man-
holes will be required for a total cost for the project of $5,822, of which the city's share would be 82,665.02
or one -half of the first 300 feet of the extension. Mr. Davidson said Mr. Galloway has deposited his share of
$3,156.98 with the city.
Councilmember Barrett made the motion to approve of this utility extension request as discussed above and
Councilmember Gaines seconded the motion. Discussion: Councilmember Dowling asked some questions for clarifi
cation. He questioned whether this is a legitimate city expense. Mr. Pipes said it can be justified by the
fact that the line will go all the way across the front of the property so that if everybody accesses the sewer
that come down to that spot from up the way, rather than cutting the new paving surface on Sam Houston Avenue,
it will be to our advantage. Councilmember Dowling felt this should be totally a development cost and not a
participation cost of the city's. Mr. Pipes said it is a routine sewer extension request, but different some-
what it its circumstances; however, it still meets the city's requirements for city participation. Mr. Pipes
said they are also recommending this procedure on this extension not only because it would mean not having to
cut the new street, but also because we can't get around the storm drain that runs behind the curb all the
way along there. He said the storm drain went in after the sewer line service was already there.
Upon a vote of the motion on the floor, all present voted IN FAVOR with the exception of Councilmember
Dowling who voted AGAINST the motion. The motion, however, passed.
CONSIDER BIDS
Consider bid 187 -18 for rental of a soil pulverizer -mixer for the capital street program in the amount of
$6,100 to Mustang Tractor to be paid from capital street program funds
Mr. Gene Pipes, City Manager, presented the bid information for monthly rates for a pulverizer /mixer.
He noted the rates quoted will be good for one year. The Street Division will rent the machine to mix and
stabilize the road base on streets being reconstructed, he advised. He said some street reconstruction pro-
jects may take longer than one month to complete the base stabilization. The Council vas advised since monthl
rental rates will be in excess of 85,000, the bid process 1s required. He said in order to make optimum use o
construction time, the rental rates are being bid prior to construction. Mr. Pipes noted the Street Division
has streets ready to be stablized and the lowest bidder will be contracted to furnish the machine. Then, he
said, in the event his machines are rented out, the Street Division will contract the next lowest bidder so on
until a machine can be rented. He then recommended the Council accept the rates as quoted below on the basis
of lowest monthly rates, Including tine ware:
Mustang Tractor
Summit Equipment
E. L. Lester Company
$6,100
$6,200
$7,075
Councilmember Bell made the motion to approve of the rates quoted above and Councilmember Dowling
seconded the motion. Discussion: Councilmember Howard asked how expensive a pulverizer -mixer might be.
Mr. Poteete, Director of Public Works. advised they cost about $130,000. Councilmember Gaines asked if it
is rented by the month or just when needed. Mr. Poteete said it can be rented by the week or the month (which
is the way it is bid). Mr. Poteete said the bids reflected above reflect the monthly fee, but on the weekly
fees, the bid order is the same ($1,950 /week; $2,025 /week; and $2,253.75/week, respectively).
All trsze in 'inn. of the motion on the floor on the pulveriser -miser rental rates and it palmed unanimously.
Consider bid 167 -19 for a 60" flail mower for parks and recreation in the amount of $8,750 to Goldtbvaltes to
be paid from budgeted funds
Mr. Gene Pipes, City Manager, advised this bid is for the purchase of • riding mower for the Parks and
Recreation Division. He noted different types of mowers have been tested during past years, but the diesel
powered flail has been found to be the best mower for the city's uses. He recommended accepting the low bid
as captioned above. Councilmember Bell asked if any of the bidders were local. Mr. Pipes said the second low
bidder was local (Turner Lawn 6 Garden). Councilmember Bell expressed his concern as tocwhy the city would want
to go out of town (noting the bid 1s only 8100 more), when the return to the city doing business at home will
more than come beck to us. Mr. Pipes said the answer 1s state law - -we have to accept lov bid of the vendors on
the bid list or have requested to be on the bid list. He said there is no consideration that we can legally
give to the local bidders as there is no way we can exclude out of town bidders if they ask to be included on
the bid list. Councilmember Bell asked about the serviceability of an out of town product. Councilmember Green
noted the bidder would have to meet city specifications on that item as well. Mayor Monday said we have tried
to figure this one out but the state law will not alloy us to favor local bidders. Councilmember Green made the
motion to accept the low bid of Goldthwaites and Councilmember Barrett seconded the motion. All were in favor
and the motion passed unanimously. Mayor Monday noted the sentiment is on this council to award bids to the
local bidders, but we are just not able to do so.* Councilmember Green noted local bidders should be able to do
it cheaper than someone in Houston. Councilmember Gaines asked if this piece of equipment if an additional one
or to replace one. Mr. Pipes said it is a replacement for one of the old ones that will be taken out of service.
Consider bid 187 -20 for hydrated lime for the capital street program in the amount of $66.54 per ton to Austin
White Lime Company to be paid from capital street funds
Gene Pipes then advised the Council this bid is for the purchase and spreading of lime on streets being
reconstructed. He said quantities of lime will be purchased as the streets are ready to be stabilized and prices
on lime will be in effect for one year. He then recommended acceptance of the lowest bid meeting specifications
of Austin White Lime Company in the amount of $66.54 per ton.
Councilmember Barrett made the motion to approve of the bid as presented from Austin White Lime Company and
Councilmember Gaines seconded the motion. After some discussion for clarification, the motion passed unanimously
CITY MANAGER'S REPORT- -GENE PIPES
Review of current financial analysis
Mr. Pipes noted the main purpose for this meeting is to review the actual condition of the city at this
time.
Revenue Analysis
Mr. Pipes presented a revenue analysis of the various funds, noting the water and sewer fund and the
sanitation fund revenues and expenditures are in line with the budget. He noted in the general fund, however,
current property tax collections are down approximately 4% from this time last year and since we budgeted for
decreased collections, we are slightly ahead of what we budgeted. He said delinquent tax collections are
currently 81,840 over budget and an $11,000 overage could be anticipated here. Mr. Pipes said franchise taxes,
except for Telecable, are not collected until late summer. The Telecable franchise of $44,569 was collected
in February, he said, and the budgeted amount was 839,900. Mr. Pipes noted the only problem area seems to be
in the sales tax area. He said collections through February total $676,850 and, based on percentage collections
to -date, we could have as much as a $131,000 revenue shortfall this year in this area. Mr. Pipes also advised
licenses and permit collections are down from last year, however, current collections are currently in line
with the budget. She municipal court fines collections are up, he noted. and if they continue at this rate,
collections could exceed budget by $10,000+. He noted all general fund expenditures are within budget limits.
The Council was .advised that the position of Director of Community Development has been open for most of
the budget year. He said be will continue to leave that open in order to retain as much flexibility as we can
in the general fund area. He said the city is filling those positions that are field /service positions directly
related to the service end (Parks and Recreation, etc.) in areas that are expressing the greatest need, butunleas
we have a vacancy that is necessarily time critical, we are holding off on filling it as long as possible. He
said he did not anticipate having to make any other adjustments in order to meet the budgetary requirements for
the rest of the fiscal year.
Also, in terms of the general fund revenue, Mr. Pipes advised that the media reported last week that Gulf
States Utilities had received somewhat of the portion of the emergency rate request in Louisiana ($55 million
the requested $110 million), which is similiar to the $40 million of the 880 million request that the Texas
Public Utilities Commission granted GSU. He said with a $250 million line of credit that was the contingency o
the caveat that Texas award of the emergency rate increase amounted to, they should be able to make the year
vith the cash flow problems somewhat abated. He said with that the real crisis with GSU will probably not
materialize, although we have a special memo for that contingency in the packet. But, he said, suffice it to
say at this point that by the action of the Louisiana Power Commission and the Texas Utility Commission, we
probably will not have to implement anycf those considerations.
Additional Carry Forward Funds
Mr. Pipes then presented the additional funds available, as follows:
General Fund $156,871
Revenue Sharing 32
Sanitation Fund 1118,909
Water and Sewer Fund $787,006
Mr. Pipes said estimated funds available in the water and sewer fund and sanitation fund are not included in
the budget process. He noted because of revenue bond requirements, funds must be generated each year to cover
expenses for that year. This information was presented to the Council in a memorandum from Patricia Allen,
Director of Finance, dated February 18, 1987, which also advised the Council that it has been their policy to
incorporate these available enterprise funds into the capital improvements budget in water and sewer and the
capital expansion reserve in the sanitation fund.
*Point of clarification. Mayor Monday advised the City Attorney, Scott Bounds, states there are some areas in
which a city could specify local service and when we can, we do, but in this particular instance (lawn mower I�
maintenance), we cannot specify local service. Councilmember Bell asked that we watch this closely so that when
we can do it locally, we actually do. Mayor Monday said staff is cognizant of that fact.
•
•
•
Mr. Pipes noted t66 fiiedb available iul_Y :inter and sewer fund are largely due to the preparations that have
been made in the 1985 -1986 year for an .npected one million dollar revenue bond issue in the water and sewer
area to repair the infrastructure. He said that report will be forthcoming from Mr. Glenn Isbell. Director of
Design Engineering, shortly, which will show what some of those infrastructure repairs will be. He said along
with this information, the staff will present its recommendations on televising the sewer lines and suggestion
as a result of the I 6 I study.
Economical Personnel Policy Adjustments
Mr. Pipes presented three adjustments which could save some funds, as follows:
1. No paid holidays until completion of 6- months continuous service;
2. Sick leave accrual would begin after completion of 6 months continuous service; and
3. Reduction of vacation benefits from two weeks to one week per Oar until a person has
completed two continuous years of employment.
He said the change, according to Patricia Allen, Director of Finance, would result in an annual savings of
approximately $9,000. The change in the vacation policy would allow for reduction of overtime required to
compensate for absences, he noted. Mr. Pipes said much of our turnover occurs within the first two years of
employment and accrued leave pay at termination would be reduced,(according to a memo from Mrs. Allen, dated
February 26, 1987). Mr. Pipes said the staff recommends these changes not affect current employees, but to
become effective with any new hire. The Council was advised if adopted, these changes would require amendment
to the personnel policies, which amendment would be brought back in subsequent meetings for final action.
Councilmember Dowling expressed concern that the city might get into a position that because of declining
benefits we are no longer competitive for good employees, although he was not aware of what the city's turnover
rate is on employees. He said the benefits are a part of the general compensation package and we don't want to
short -side that. He felt the employee should be paid for the holidays at the outset as it is not their fault
the city observes a holiday. He also noted he felt state law controls sick leave accural for police and fire
employees. Mr. Pipes said they will check on that. Councilmember Green asked Mr. Pipes if he is recommending
these three changes now or is it subject to discussion. Mr. Pipes said it is being presented to discuss.
Councilmember Green felt this is "pretty much nickeling and dimeing it." Mr. Pipes said he feels like the budg
have been reduced to the point where the only money left to save is in this type of thing -- benefits reduction- -
nickel and dime. Councilmember Green said he is not sure the first part of what Mr. Pipes said is true, but it
is true this is nickel and dime savings. He said he is not comfortable eliminating paid holidays, although he
felt okay about the suggested vacation policy. He asked how much sick leave is accrued in the first six months
Patricia Allen, Director of Finance, said one day per month sick leave is accumulated. Councilmember Green sai
he has no problem with eliminating the sick leave accural during the first six months, but he thinks the holiday
should be left in.
Councilmember Barrett noted his appreciation for the staff working this savings up. He felt they are more
in touch with this matter than any of the Councilmembers. He said with the economy like it is, most employers
are having to do some of these same things. He said he appreciates the City of Huntsville trying to save
pennies because pennies make dollars. He said he is proud the city is making this suggestion as it does go alo
with the times. He said if it affects employment later on, we can always change it back. Councilmember Gaines
was concerned about the incentives the City has to offer new employees. Mr. Pipes said we have provisions for
merit raises for the lover classification positions each six months. He said currently, employees can accrue
one day per month in sick leave, so that at the end of six months, they have six days to their credit for sick
leave, although current policy does not allow them to take any of those days during the first six months.
He said the holidays have been paid in the past as another incentive. He said after one year's service, an
employee gets two weeks vacation paid. Mr. Pipes said the three suggestions made above are just three small ar
where we feel we can make reductions in cost without any effect on the existing employees today. He said all n
hires would go in under a different set of standards. Mr. Pipes said this is a small consideration in a $14
million budget. Councilmember Barrett noted however that the more employees the city gets, the more money that
will get to be.
Councilmember Bell felt the city is fairly generous with the vacation policy and that might be tightened
up, but he is not particularly interested in changing the policy on sick leave and holidays as he felt they
were pretty much in line with what others are doing. Mayor Monday noted she agreed with Councilmember Bell.
There being no other comments, Mr. Pipes moved on to the next item on the agenda.
Consider recommended budget adjustments for FY 1986 -1987
Mr. Pipes advised the budget adjustments in the General Fund that require Council review are as follows:
1. Available carry forward funds of $156,871 are requested to be set aside for use to meet unexpected
revenue shortfalls or to aid in budget considerations in FY 87 -88.
2. Transfer of portion of money budgeted for warehouse computer to Administration and Planning. The
warehouse computer can be purchased at a lesser price than budgeted. Purchase of P.C.'s in Administra
tion and Planning will allow for compatibility of all word processing files. Total amount transferred
- $2,489.
3. Allocation of funds for removal of structural hazards or dilapidated buildings - 15,400.
4. Underbudgeted in the janitorial services contract (15,000) and addition of new Service Center $3,600.
Total adjustment needed - $8,600.
After some general discussion of these items, all four were approved by the Council.
In the Revenue Sharing Fund, Mr. Pipes noted certain funds were requested to be encumbered. After review
by department heads, he said, it was recommended that $11,686 are not essential and these funds be allocated tc .
the capital street program. There were no obiections expressed by the Council, so this adiustment is approved.
Mayor Monday asked if this gives Revenue Sharing a "0" balance. Mr. Pipes said $5,000 was encumbered for an
Arts Commission matching grant, but if that grant does not come through, the Council will then have $5,000 in
this fund to allocate for something else.
Mr. Pipes then presented the sanitation fund budget adjustments, as follows:
1. Purchase of street sweeper -- $70,000. He noted if funded, the city recommends that funds be allocated
from the carry forward and reduce the increase to the reserve for capital expansion. He said this
adjustment is not included intransfers presented. Mr. Pipes said the street sweeper is worn out and
even though we've tried all models and configurations and there have been no great technological char.,
in their design or operation, we will need another one to sweep the streets, if that is the Council's
concern. He said it is needed to prepare for the street paving program as well. He said this is a
three year old street sweeper and it was purchased on a four year C.O. and it is yet unpaid for.
He admitted it is down mire than it runs, but we need a good, viable street sweeper. Mr.
Pipes said we moved this out of the general fund to the sanitation fund last year for purposes
of balancing out all of the fund expenditures. Be said this set aside of *70.000 would come out
of the adjusted carry forward which is ;119,000 and that would be put into the capital sanitation
fund. He said we are not recommending this sweeper be purchased by certificates of obligation,
because we have one year on the C. 0. remaining of the existing street sweeper. He recommended
purchasing the street sweeper, although this is discretionary on the part of the Council. He said
the staff feels this is a critical purchase at this time and he is recommending that it be done
as a mid -year budget approval.
Councilmember Dowling stated in his eight years at City Hall, this is the third (3rd) *70,000 street sweeper
the City has purchased. He said not only do they wear out every three years, but they don't stay ruining in year
one and two. He said he is ready to send two guys out with a broom to sweep the streets. Hr. Pipes described
the machinery and the conditions it encounters on the job. Councilmember Green asked what breaks. Mr. Pipes
said part of it is the sweeping mechanism and part is the suction lines, the brushes year out, the hoses and
gauges foul up and dust gets into everything including the engine, air intakes, etr,. He said no matter what
we do, it is going to break down. He noted the impact felt when the streets are not swept is not a desirable
situation either. Councilmember Barrett asked if we can use another kind. Councilmember Bell asked the staff
if they can check with the larger cities to see what they use. Mr. Pipes said we've used all types and everybody)
has problems with all the types. Councilmember Bell noted since the street sweeper also keeps the sewers from
filling up with trash and leaves, perhaps it could be funded from water and sewer. Mr. Pipes said money for the
street sweeper comes from a self - funding fund: street sanitation and it comes from sanitation fund surplus, not
general fund. Councilmember Green noted those are "real dollars too though." Councilmember Green said since
these swee.ers work on a three ear c cle rather than a four ear c cle, he would su::est that we still not bu 1
until we have the other C. 0. paid off and that when we buy another one, that we buy it on a shorter C. 0. cycle
like three years instead of four. He said he could not see buying another street sweeper at this point while we
still have the broken one not yet paid for.
Mayor Monday said the exception to this thinking is that if the job is worth doing, that it needs to be done
She said the question to Johnny Poteete, Director of Public Works, is can we go until next budget year and
accomplish what needs to be done with the existing equipment. Mr. Pipes said the reason he has this request
in here during mid -year is that with all of the street work underway, the street sweeper is an integral part
of that program in that all of the overlaying work must be preceded by brooming and vacuming of streets. Council-
member Dowling asked how much is it worth per year to keep the streets clean. He asked if it is worth ;25,000
per year on a three year C.O. to keep the streets clean. Mr. Pipes said the reason we put the street sweeper
into the sanitation division was to identify a separate program fund because at the time we discussed this,
there was confusion about what was street department function and what was other. He said it is the Council's
decision as to whether street sanitation is worth $30,000 a year. Councilmember Green noted it may be worth a
good deal more than that because we don't know what it would cost the city to clean up the sewer lines if we
didn't clean the streets.
Councilmember Dowling asked if there is any use for that chassis. Mr. Pipes said the city wants to keep
the existing equipment in service, but wants to purchase a back -up street sweeper and alternate the two as much
as possible. Councilmember Dowling said if the existing one can work and does work, use it - -we don't need two
that don't work. Mayor Monday again asked her question as to whether what we have can do what we need to accom-
plish. Gene Pipes said the answer is no, we will not be able to do what we need to accomplish, but we can get
by- -we'll "make the thing run for a year." Mr. Poteete said it is not running now. Councilmember Barrett
noted he would rather spend 870,000 to pave some streets to sweep, than buy another street sweeper now. Council-
member Dowling noted 570,000 mid -year budget adjustments make him nervous from a financial planning standpoint.
Gene Pipes, City Manager, noted he would get back with the Council later on this item, realizing there was no
support to purchase another street sweeper now.
In discussing the water and sewer fund, Mr. Pipes noted a transfer of carry forward funds to bhe capital
improvements budget has been past practice; purchase of P.C. and printer for lab services, $1,019; purchase of
air compressor and jack hammer, $12,000; and completion of dirt work at Old North Plant site, $5,000. Mr. Pipes
said this old North Plant site has been allowed to fill and settle for 18 months. He said the city will be able ,
to level it up for $5,000 and take down the old fence and turn it over to the Parks and Recreation Division, if
that is the Council's pleasure,for dedication as a park site.
Mr. Pipes said in regard to capital improvements, the city wishes to incorporate transfers from water and
sewer and revenue sharing; and allocate funds for television of sever lines ($200,000).
The Council then reviewed all of the budget adjustments that had already been made during this fiscal
year, as presented in the agenda packet and which had been previously reviewed by the Council. Mayor Monday
then asked the GOuOC11 for their consideration of all of the budget adjustments for 1986 -1987, WITH THE EXCEPTION
OF THE STREET S1, 'EEPER. Councilmember Green made the motion to approve of all the budget adjustments as discussed
and presented herein, deleting the street sweeper from this motion and Councilmember Howard seconded the motion.
All were in favor of the motion and it passed unanimously.
Consider recommended changes to the purchasing procedures manual
Mr. Pipes then presented a memorandum from Patricia Allen. Director of Finance, which outlined some changes
to the Purchasing Procedures Manual, all of which are under the $1,000 limit. Mr. Pipes said the changes imple-
ment some additional structure and procedures. He said principally the purchase of over 850 and under $200
would require three quotes and that the Director have approval of those purchases in the 8200 range by submittal
of those three quotes in written format. He said this will do away with the need to get a purchase order number
for every expense over 850. Mr. Pipes assured the Council there are plenty of check stops along the way even
with these changes to keep things in check and balance. After some general questions, the Council indicated no
objections to these changes.
Gulf States Utilities bankruptcy -- contingency plan
Mr. Pipes presented his contingency plan option for both short -term and long -term in the event of GSL's
bankruptcy (memo of February 26, 1987 from Patricia Alien, Director of Finance). Mr. Pipes noted, however, at
this time, it does not look like this plan will have to be implemented, although the situation will be monitored
very carefully and the Council will be kept abreast of any changes. He said the permanent rate increase being
requested by CSC as a follow up to the emergency rate increase is now pending before the PUC. He said if the
full schedule of rate increases over the next five years are implemented, the city can look for the power costs
of GSU to double for the consumers and the city (street lights, ball parks, swimming pool, water plant, sewer
plant, etc.). He said we will have to monitor any future rate increases to GSU carefully with an eye to the
physical health and viability of the City as well as GSU.
Status of t4nit`4f "rmprovemeniscmuegst.
Mr. Gene Pipes. City Manager. advised ve have in the capital street program a total over the next five ye
of 84,480.151 worth of work. He suggested the following ways to obtain this funding: a bond issue; conversio
of purpose of 82,100,000 prior issue (these bonds were approved as a match for grant received); certificates o
obligation /municipal lease. Mr. Pipes said the staff has discussed alternatives with Rennie Baker and he is i
the process of reviewing the options. He said a meeting is scheduled for the week of March 3, 1987.
Mr. Pipes said at this point, it is apparent that any funding alternative will require a tax increase. H
advised the issue of $1 million in each of the next two years with a 20 -year maturing at 9% would require appr
mately a 5% increase each year at our current collection rate. He said for property valued at $60,000, this
correlates to • $15 increase the first year, with an additional $15 increase the second year.
Mr. Pipes said the transfer of the additional carry forward funds of $787,006 will allow for the
addition of projects and /or increase to the infrastructure improvements budget in the water and sewer fund.
He said after completion of the analysis reports, it may be approprAate for Coz.cilto prioritize projects and
allocate these funds accordingly. Mr. Pipes noted projects in the current budget include:
a. Loop system and Boettcher - East - funds remaining
b. Willow Street utility relocation
c. Infrastructure improvements
d. Outer Loop
e. Lift stations
f. 13th Street sewer
g. S. H. Park Sewer
$200,000
$140,000
$455,573
$691,000
$202,000
$ 36,000
$108,000
In discussing the sanitation fund capital improvements budget, Mr. Pipes said as of September 30, 1986,
there was $142,994 in the reserve for capital expansion fund. In the FY 86 -87 budget, there is a $50,000 con-
tribution, Mr. Pipes said. He said depending on Council, the additional carry forward of $118,909 or the bala
after aid -year budget allocations, the street sweeper not taken out of it, could be added to this reserve. At
the close of this year, he said, we should have some $290,000- $300,000 accumulated reserve in the capital sani
Lion fund. He said slowly this fund will fill as we look toward a future solid waste disposal method and prog
Financial Information
Mr. Pipes presented a delinquent hotel /motel occupancy tax memo, dated February 20, 1987, indicating
eleven hotel /motels are responsible for paying hotel /motel occupancy tax to the city tax office and six of tho
were delinquent. He also presented a comparison of sales tax revenues from 1979 -1980 annually to -date. Mr.
Pipes advised the monthly tax report for January, 1987 reveals the total percentage collected of the 1986 tax
is 82.681 or $1,691,599.99 and the total delinquent collection is 18.391 or $40.160.83. Also presented for
the Council's information was the general fund statement of revenues as of January 31, 1987 which showed that
of the $5,246,375 budgeted, some $2,073,236 has been received, or some 39.50 percent.
MAYOR'S REPORT- -Jane Monday
Resignation Letter -- Councilmember Dick Wharton, Ward One (effective immediately)
Mayor Monday then read a letter from Dick Wharton, dated February 27, 1987, as follows:
"While coming as probably no surprise to most of you, due to personal demands on my time,
I regretfully submit my resignation as Councilmember of Ward One. Since I came to work here
I want you to know that having worked with each of you has been one of my most rewarding exper-
iences. Each of you and each member of the staff with whom 1 have worked has provided me with
rich memories of the accomplishments we have achieved together. I believe that this city has
been blessed to have leaders such as you, men and women that have as their only goal the better-
ment of Huntsville. May it continue to be so. God Bless You.
Dick Wharton"
Mayor Monday noted then this is Councilmember Dick Wharton's official resignation.
COUNCIL ACTION
Councilmember Bell: expressed his appreciation for the removal of abandoned buildings around tow:;.
Councilmember Dowling: expressed his appreciation for the street crew out fixing the chug holes in Avenue 0 a
other areas.
City Manager, Gene Pipes: reminded the Council to check with Ruth DeShav if they are interested in the March
meeting of the Region 14 TML group. Mr. Pipes said there will be no Council meeting next week and the ne
meeting will be March 17, 1987.
ADJOURNMENT
tfully submitted,
/
Ruth DeShlw,-City Secretary
March 3, 1987