MIN CC 05/26/1987OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 26TH DAY OF MAY, 1987 IN THE CITY HALL COUNCIL
CHAMBERS, LOCATED AT 1212 AVENUE M IN THE 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
0. Eugene Barrett
Gary Bell
Jim Carter
IOla G. Gaines
William B. Green
Percy Howard, Jr.
William H. Knotts, Jr.
Member absent: William L. Hammock
City Officers Present:
Gene Pipes, City Manager
Scott Bounds, City Attorney
Ruth DeShaw, City Secretary
Mayor Monday then opened the Public input session.
PUBLIC INPUT
Bo Hall, Representing Mr. Robert Cisneros's request for a utility extension
Mr. Hall again visited with the Council germane to Mr. Cisneros' need for water and sewer lines to his
itrailer home on Avenue F. Mr. Hall said, at the suggestion of the Mayor at the last meeting, he did meet with
Mr. Gene Pipes the next morning at 8:00 A.M. during which Mr. Pipes agreed he would review some facts and sug-
gested that Mr. Cisneros try to obtain private easements to get across adjacent property so that he can tie into
the lines on Avenue F and also the one at the bottom of the hill. He said after discussing this with Mr. Cisnero',
Mr. Cisneros said easements get to be a legal problem because they have to be drawn up and go through the process
of legaleeze and It will take some time and assume some costly steps possibly on his part. Mr. Hall said Mr.
Cisneros has asked him to ask Mr. Pipes to reconsider and let Mr. Cisneros run the sewer line in the city ease -
ment. He said Mr. Pipes then reported this could be done at a cost to Mr. Cisneros of $1500.00 ($3000 being the
total cost) as his share. He said Mr. Pipes cautioned him there would be other costs to Mr. Cisneros: approx-
imately $400 of tap fees, meter fees, etc. and he would have to run his own line from his trailer to the property
line. Mr. Hall said he then reported to Mr. Cisneros his costs would run somewhere around $2500 total costs, of
which $1500 would be shared with the city in participation with the sewer and water lines. Mr. Hall said
Mr. Cisneros advised he could not raise that much money, but rather only $1,000. Mr. Hall said Mr. Pipes
advised Mr. Hall if Mr. Cisneros could come up with his $1500 share, Mr. Pipes would then talk to the City Council
and the Planning Commission to see when those two groups could meet. Mr. Hall said he came down to pickup the
city council packet and noticed the information to be presented to the Council had a different price from that
11500 as being Mr. Cisneros' share. (He noted Mr. Cisneros has agreed to come up with the $1500.) He said the
price vas now $2,364.98 for Mr. Cisneros' share.) He said Mr. Pipes advised his this morning that when we dis-
cussed the $1,500 share, it was only on the water and not for sewer. He said Mr. Pipes indicated he had saved
Mr. Cisneros some money by getting the costs down from $1500 to $1400. He said if we had been talking about
$1400 to $1500 in eater costs, it looks like Mr. Cisneros' costs should be around $700 which is half of the coat
for water. Mr. Hall said he was then advised that not all the water costs were shown. He said he doesn't under-
stand why the story keeps changing every time he talks to the City Manager. Mr. Hall said Mr. Cisneros deserve
to have water, sewer and electricity. He encouraged the Council to get all the facts, know the truth and he was
then sure they would make the right decision.
{ Mayor Monday thanked Mr. Hall for his presentation and noted the City Manager will have a response in the
, City Manager's section later in the agenda. She stated that her concern is that procedures be followed tom-
pletely, equally and fairly to anyone that ever comes to the city.
Councilmember Bell asked Mr. Hall if Mr. Cisneros was aware there was no water and sewer service available
, to this lot when he bought it or was he led to believe these services were available. Mr. Hall said he under-
stands that when Mr. Cisneros was sold that property, the previous owner indicated to him he could have eater
and sewer for about $300 -$400 and supposedly that previous owner (a former councilmember) had talked to Mr.
Pipes, the City Manager about this. Councilmember Bell noted he saw two trailers on that lot, and not one as
the council had been advised. He asked if permits were drawn or regulations met to put two trailers on that lot
Mr. Ha:1 said he didn't know about that. Mr. Hall said neither trailer now is occupied and the old trailer on
that it has never been occupied and was set on that property some time ago. He said the trailer in the middle
of the property now is Mr. Cisneros' home and this is the one he wants hooked up - -the other trailer is just parke
there.
Councilmember Carter asked where Mr. Cisneros is living if he is not living in that trailer. Mr. Hall said
ne is living with either his mother or his brother -in -law. Councilmember Carter noted he understands Mr. Cisnero
is currently living in that trailer. Mr. Hall said that is not correct.
FORMAL SESSION
Mayor Monday then called the formal session to order. Councilmember Percy Howard, Jr. presented the invoca-
tion. The minutes of May 19, 1987 were not ready for approval and will be provided at the next meeting.
ATTENDING CITIZENS
Messrs. Max Threadgill and John Mendota to address Council concerning a planned Mobile Home Park in the area of
Old Houston Road and Highway 75 -South
Mr. John Neadors appeared to address the council germane to the proposed mobile home subdivision in their
neighborhood (Old Houston Road area). He said for the past several weeks, he has been talking to area home-
owners concerning undesirable structures that have been built in neighborhoods throughout the Huntsville area.
He said they are asking the City Council to protect their investments in their homes and neighborhoods. He said
they know that deed restrictions do not work. He said everyone he has talked Co in subdivisions has run into
problems with them. He said_in the promotion of the Super Collider, he has heard Huntsville referred to as a
yell- planned city - -he questioned this description of our city. He said he also questions if the scientists and
support personnel for this or other such projects would be willing to invest thousands of dollars in buying a
hose in Huntsville without protection from undesirable structures or developments. He said the only solution he
sees to this ever - increasing problem in our city is "zoning."
It vas noted Mr. Threadgill will not sake • presentation at this time.
CITY COLNCIL MINUTES OF MAY 26, 1987
BOO[ "0" PAGE 999
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Consider Bid 87 -31 for cleaning, Inspection and restoration of Sanitary Sever Mains and appurtenances to
Insituform Gulf South as low bidder for various work not to exceed the 8200,000 amount allotted in the CIP
utilities program
Mr. Gene Pipes, City Manager, advised this is a very specialized professional service and the staff knee
when it vent out for bide for it that it would be very difficult to evaluate the bids, but at the same time it
wanted to get as good a reading of what these costs might be. He said Insituform Gulf South made a presentation
to the Council earlier about their process of lining sewer lines "in- place" without excavating the streets.
e said the staff identified for the Council at that time and tried to accomplish this year the cleaning and
evising of the lines in the CIP program. He said Insituform Gulf South is the low bidder for this service
and the City expects to spend no more than 8200,000 and use the city's crew to do alot of the cleaning where
it is possible. He said the staff will do its very best to keep the costs as low as possible. He said they
will be working on the lines that are suspect at the present time. He then recommended approval of this low
bid.
Councilmember Knotts made the motion to approve the bid of Insituform Gulf South for cleaning, inspection
and restoration of sanitary sewer mains and appurtenances in an amount not to exceed $200,000 and Councilmember
Barrett seconded the motion. Discussion: Mayor Monday asked the City Manager if he will provide the Council
with a work schedule of the lines to be done and in what order. Mr. Pipes said the city will be relying on
coordination efforts between the Design Engineering Department and the Public Utilities Department and the
Insituform people, but he did not foresee any major upsets In the traffic patterns and things of that nature.
Mayor Monday asked for a monthly update on the findings and where the city is on the project so we can see where
our money is going. Councilmember Gaines expressed concern that the bid Is for 8235,500 and yet we say ve are
not going to spend more than $200,000 and was this understood by the bidder. Mr. Pipes said the bid was taken cm
everything on a unit price breakdown (cleaning per foot; televising per foot; grouting in place, sliplining, etc.l�
and the total bid all added up was $235,500, but undoubtedly the city will not use all that. He said the con-
tractor (j
understands this is on a unit basis per foot as needed. Councilmember Knotts asked how they would deter
mine whether there is infiltration in the line; would they have to wait for a big rain. Mr. Boyd Wilder said in
will be evident at all times, although the infiltration would be in greater volume during real wet weather.
All were in favor of the motion and it passed unanimously.
Consider Ordinance amending Chapter 15B -- Taxation - -of the Code of Ordinances, increasing the hotel -motel occupai
tax to 72 of consideration paid by occupants.
Mr. Bill Nash, Chairman of the Charter Commission for the convention center tourism commission (proposed)
advised he has asked the council to pass an ordinance that would increase the hotel -motel occupancy tax by
another 32 (from 42 to 72), with that 32 being designated for use for a convention center. He said he has
visited with the motel owners to review the plans envisioned in this project. He said all of the managers of
the local motels were contacted, but the meeting did not include restaurants, catering entities, etc., but only
those having a direct realtionship with the 32 increase in the hotel- motel tax being proposed. He said those
present at the meeting included Robert McCann, owner of Huntsville Inn; Joe Wilson, Manager of Holiday Inn;
Bill Terrell, Manager of Royal T; Steve Bullard with the University Hotel and Greg Woo of Huntsville National
Bank who is currently the temporary owner of the Sam Houston Inn. He said the members of the Bureau, which is
the new name for the Charter Commission for the convention center tourism commission and in full Bureau means:
Huntsville Area Conference and Visitors Bureau.
Mx. Nash said the motel managers were advised as to the plans and the need for the additional 32 tax. He
said concern was expressed regarding the success of the project; problems that existed in Bryan's experience
where funds derived for the convention center were used to the benefit of the primary hotel rather than for all
the hotels; problems with the host hotel lowering prices after project's initiation thereby competing with the
other motels; and in addition, positive comments were expressed that business could and would be helped by the
construction of the hotel /convention center. He said many at the meeting were in favor of the project, inepite
of the concerns. He then introduced Mr. McCann and Mr. Bullard, who were present. He said the meeting was an
informational exchange meeting with nothing really resolved. He said Mr. McCann's .rimer concern was the t
of the motel tax. He said he met with Mr. McCann and members of the City staff to further discuss the timing
of the tax issue. He said as • result of that meeting, a proposal was developed, which was reviewed by the
Bureau, to stage that tax as follows: 12 will go into effect at the time there is a groundbreaking of the con-
ference center; an additional 12 would go into effect six months later; and the final 12 not be added until its
specific need could be justified through a budget process-- the Bureau and the existing motel owners want tc
be sure that we would need that total 32 and not just say 22. He said the best way to do this is to do it by
knowing some actual costs or being confronted with the actual budgetary process rather than what we would have
to do now arbitrarily in the form of a pro forma that is much less accurate. He said he feels this is a reason-
able process and the contract the city has with the Bureau will call for everything to be justified with the
budget process. He said what we are saying is that no funds would even start to be collected on the third 1Z
until such time as there had been such a detailed budget process and a need of that final 12 is justified.
Mr. Nash advised Conroe only has the basic 42 and of the other five cities polled: College Station, Bry an.
Lufkin, Nacogdoches and Corsicana, two of them have the 72 and three of them have the 62 occupancy tax. He sa
this told us that at least three of those five cities were able to meet their needs with only a 62 tax or an
additional 22 for the convention center program. He said it may be they are, however, basing their motel tax nm
ther than 42 and the 62 could then include 32 for the convention center program. He said Conroe does not
have a conference center, but they are currently discussing the matter.
He said he feels it is important to go ahead and authorize the additional 32 by ordinance as it will be
extremely important that the Council make the commitment for the full 32 in order that it be known by investor-
that would be involved in this project that the 32 could be available if the need is justified to pay off the
things that will be the responsibility of this Bureau (mortgage payments on the finishing out of the shell of
the building, utilities and management, marketing and various other operating costs). He said we don't know
what the expenses or income will be at this point. He then recommended the Council authorize the 32, but only
set up the action to collect 22 of that at this time.
He said the Bureau understands there are quarterly reports and payments instead of monthly reports and pay-
ments and they do not feel this will be a problem for the Bureau.
Mr. Nash also advised the Council that during the initial stages of the operation, the hotel -motel occupan-
cy tax funding will come from existing motels. He said the short term results of marketing that would result
in conventions or conferences or local utilization would all be handled through the existing motel -hotel owe
therefore, it seems appropriate that they also have a member on the Bureau Board during this time. He said
the bylaw draft provisions provide for an advisory board member and it is felt a ember of the local lodging
industry be on that board as • voting member. He said the bylaws originally provided there would be two
members for two year terms, two would have three years and one would have four years. He said with the new
provision, that would be changed to two members for two years, tvo for three years and two for four years; no
d subse u•nt members of the board would be appointed for three year terms. Bot!
the developer and • member of the lodging industry would serve those first two year terms. After that, he wasn't
sure, but the developer's interest continues as an advisory member, but he felt the Bureau would want the local
lodging industry to have a representative as an advisory committee.
The Council was also advised by Mr. Nash that it is the feeling of the local lodging industry that they are
being selected out se the industry through which a tax would be levied and they would be the collectors and
reporters and payment makers on it for a purpose that benefits not just them, but it benefits the entire commun-
ity (restauranteurs, theaters, retail people, and others whose well -being may be increased by a more stabilized
market, a better economic situation or a better value on their house). He said it would therefore seem more
logical. that being the case, that everyone enjoyed paying for it on an equal basis without all of the funds
coming through this one tax. Therefore, Mr. Nash asked the Council to consider through some expression the
use of ad valorem taxes for this purpose. He said he is aware of previous statements of former Mayors and
Councilmembers, including himself, that this is a situation in which we put the interest of having a conference
center in competition with having police officers or other things of a basic need of the city. He said the
members of the local lodging industry, however. would appreciate hearing the thinking of the Council in this
regard.
Discussion by Council: Councilmember Green felt that if in fact the community feels it will benefit from
a convention center of this type, that he would be comfortable including this in the general budget; however,
there is no guarantee that funding would continue year after year and he was not sure it would be legal for the
city to do something like that. Councilmember Gaines asked if some time down the line. we could release this
hotel -motel tax collected for this purpose and fund the convention center from another source. so that this
hotel -motel 32 tax might not be a forever tax. Mr. Nash said it is possible, but we all know how difficult
it is to get tares lower once they are raised and this is one reason why they are only asking for the 22 right
now. He said the other sources of income would be with the Bureau acting as a booking agent for the host and
existing hotels and they would pay a fee for booking services and there mould also be some charges made for the
use of the rooms themselves and perhaps booking fees for items associated with this such as transportation.
He said it is difficult to say that will raise enough funds to take care of this. He said there are still many
unknowns such as possible gifts that may come to this program. He said after the initial mortgage is paid off
there will be a sudden drop in expenditures and at that point there could be a reduction in the occupancy tax
and this is certainly a point that should be considered. Councilmember Barrett suggested looking at sales tax
rather than ad valorem tax if we're looking for alternate funding because he feels the businesses will benefit
more and didn't feel we needed to involve the ad valorem tax structure which is already distressed. He said the
vehicle available to the city at this time to fund a convention center is the hotel -motel tax vehicle. Mayor
Monday agreed that this method of funding the convention center has been specifically provided for in the hotel -
motel tax and she agreed It is the beet method. Councilmember Carter did not feel the benefits are direct
enough to the whole community to justify involving ad valorem taxes. He said he didn't see how employees of
TDC are going to benefit so greatly from the trickle down from this activity. He said he didn't feel philoso-
phically that would be the right approach to take. He agreed with the Mayor that we should do it, if we do it,
using the hotel -motel tax method. He said this is really not a tax on them but rather on the guest staying in
the room. Councilmember 8.11 felt he needed more information as to what extent the whole community would
benefit and he asked for any studies on this.
Mr. Nash said he only mentioned ad valorem taxes because that is the only tax over which the city has con-
trol and can raise. Mr. Nash said the developer has done a study on the potential revenue to be realized, but
he has not read it in detail; however, to glancing at some of the figures, he would find them somewhat higher
than what he would be comfortable forecasting at this point. He said it will cost the Bureau same 1700,000 to
1900,000 to finish out the convention center. Be said it is hoped some of these funds will come from a gift.
Mr. Nash said at the current hotel -motel tax rate, the 12 is about 225,000, and several years ago, 240.000
would have been generated for each 12. He said if everything went as desired, most of this money would be used
for marketing and administrative costs and not for the paying of the mortgage. He said it would be hoped that
money would be generated from user fees and from booking fees to pay for the mortgage. Councilmember Bell asked
how much will the city be richer with the existence of this convention /conference /hotel center facility. Mayor
Monday said we are looking at a 215 million facility coming in that will provide from 150 to 200 jobs as well a
an increase in the hotel -motel occupancy taxes collected as well as an increase in sales tax.
Councilmember Barrett asked what the response is of the present motel owners to the fact that if we did haw
a convention center here there is a possibility of people staying in other places 1s as great as maybe staying
there. He said every convention he has ever been to, he has seen the surrounding, existing facilities not get
a benefit from a convention as everyone will stay in the host hotel. Mr. Nash said they recognize the poten-
tial for that benefit, however, they do have concerns and are looking for the control by this Bureau and the
support of everyone to try to insure this doesn't develop to be a one -hotel project as that is not the intent.
He said the booking process Intended is that packages would be offered to conventions which would allow guests
to stay at the host hotel at one rate or they could stay at the Huntsville Inn, Holiday Inn, or one of the othe
motels at a different rate —the opportunity would be given to stay in any one. The individuals will select
which one they will stay So. He said he can't say this is an equal situation because the hotel normally realize
an unfair advantage. Councilmember Barrett said many people choose a lesser room rate within driving distance
and all our motels are within easy driving distance. He said at a recent San Antonio meeting, there were as
many conference participants at the mniotodiog hotels as there were at the main hotel. Mr. Nash said this is the
hope and it will be in the Bureau's efforts to make it that ray. Mayor Monday said this was clear from the
very beginning that it would serve the entire community, not only the existing motels, but also the caterers and
others.
Councilmember Green said if this council does not pass something, it will be giving the wrong signal that
we don't want the convention center here, yet at the same time he still believes funding for this should come
up as part of our regular budget discussion. He said when we talk about our regular budget and look at our
sales taxes and ad valorem taxes. that we at least discuss the possibility of using some portion of that if this
in fact does benefit the entire community and he believed that it will. He said if this is something we can't
do, we can live with the botel -motel occupancy tax as the financing vehicle. He said if there are funds
generated from this project, then in fact some of those funds could go back in because if there are jobs
created and if there are increased property values and increased sales tax created, that could be justified.
He said maybe the TDC employees will not directly benefit, but he may have some indirect benefit in increased
property values or job opportunities that would not ordinarily be there.
Councilmember Carter disagreed with Councilmember Green's analysis. He noted Mr. Nash had said the Bureau
will have three types of expenses: legal; travel; and secretarial. He indicated he had a problem with the
arrangement that is being made for the secretarial service with the use of this money. Councilmember Carter
noted the Bureau intends to use an existing secretary in the Chamber of Commerce for this purpose and he object
to paying that person twice, once out of the existing tourist commission money and also out of the Bureau's
Commission money. He asked that this matter be resolved so a■ not to pay people out of two separate funds of
the city. Mr. Nash said he feels the expenses incurred by this Bureau should be paid by this Bureau and our
attorney has agreed not to get paid until the funds are available through this process; the Bureau members may
incur their own travel expenses until they can be reimbursed. He said the secretary is being provided by the
r
MINUTES OF MAT 26, 1987
BOOK "0" PAGE 901
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on their meetings but it is anticipated there will be some letter writing maybe en hour on Monday and Wednes-
day. He said this service is being provided by the Chamber and will be reimbursed to the Chamber as an entity
when bureau funds are available. He said the person would not receive dual pay, but the Chamber would be
reimbursed for the 18 months of office service. Councilmember Carter expressed some concern that the time spent
for the Bureau will mean time taken away from the primary duties of that person. Ha said as long as a Chamber
of Commerce person is involved in the new bureau, there is a linkage. He said he would prefer a greater distioc
tion and a greater separation between the newly created Bureau and the existing Commission and the Chamber's
role in both. Mr. Nash said he would be very pleased to get the city to do this. Councilmember Carter vas
concerned that we are draining off resources that are supposed to be used in another way and using them in a
different way. Mr. Nash said basically we are talking about a very small sum. Councilmember Carter said he
can't live with the arrangement es long as this is going on and said we peed • separate Bureau with separate
employees and we're not drawing from the same source and we are not draining resources. Mr. Hash said once ve
have funds and an office some place, that will be the case. Councilmember Carter said he would be willing to
hire part -time and create another job in the city than to use • Chamber person or an existing tourist employee.
Councilmember Carter said he favors the convention /conference center and he is happy with Mr. Nash heading
up this Bureau. He said he also has • problem with the structure of this new Bureau and that is that the
original Charter Commission ve created (and he is not sure how it was created yet because one night he was
told it was a Mayoral appointment and the next night he was told it was a City Council action and if it vas a
city council action, we did not have a discussion about the structure of it or the nature of the nominations
and appointments). He said since he has never had an opportunity to participate in the creation of this
structure, then at this point, there are too many unanswered questions for him to vote for this tax. He said
he favors the tax and the convention /conference Bureau as soon as we can settle some of these problems that he
perceives,he will vote for it. He said he is simply not ready to do so now.
Councilmember Gaines made the motion to adopt this ordiaance and Councilmember Barrett seconded the motion.
The caption of which is as follows:
ORDINANCE NO. 87 -12
AN ORDIANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 15B
TAXATION, OF THE CODE OF ORDINANCES OF THE CITY; INCREASING THE HOTEL -MOTEL OCCUPANCY
TAX TO 72 OF CONSIDERATION PAID BY OCCUPANTS; INCREASING THE INTEREST RATE ON DELIN-
QUENT PAYMENTS; AND MAKING OTHER PROVISIONS AND FINDINGS RELATED THERETO.
Questions: Councilmember Green asked that the words "whichever comes later" in subsection (2) on page 3 of
the ordinance, which will then read: (2) Effective January 1, 1988, or upon groundbreaking for a convention
facility site as determined herein, whichever comes later, there is levied an additional tax upon the
occupancy or space furnished by any hotel or motel of one (12) percent of the . . City Attorney, Scott
Bounds, advised that should have been in there as in subsection (3) and vas probably left out in the redraft.
Councilmember Green also questioned the wording in Subsection (3) alto whether or not we're providing for
22 or 12 effective July 1, 1988 or six months after groundbreaking, whichever is later. Mr. Bounds said it
is written in such a way that there will be a 22 tax, but In order for it to be 2%, the City Council will have
to take another affirmative step between now and then to either adopt a written resolution. He said it pro-
vides that the additional levy shall only be 12 unless Council determines by resolution adopted prior to that
time that the tax is needed. Mr. Nash stated that this section establishes the tax will be 2 additional per
cent and one of those two is the additional percent that you have to approve and this provision is intended
to provide that that third 1% will not be made available until after the Council approves it. Mr. Bounds said
in order for the third percent to actually go into effect, the City Council will have to adopt a resolution
finding a need for the third percent. Mr. Nash said the way it reads now, this puts an early date on when the
third 12 could possibly be done. There were no changes made to this section after this discussion.
Upon a vote on the motion on the floor, all were in favor of the motion to Adopt Ordinance No. 87 -12
EXCEPT COUNCILMEMBER CARTER, WHO VOTED N0. The motion, however, passed by a vote of eight to one.
CITY MANAGER'S REPORT --Gene Pipes
Consider a utility extension participation proposal for Robert Cisneros (tract on 10th Street west of Avenue F
— Martin Luther Ring Drive) in the amount of $2,364.98 plus connection fees and personal plumbing costs (his
share of the total installation costs that are yet to be determined)
Mr. Pipes advised the Council that he informed Mr. Hall that the biggest problem we apparently have here
is an illegal lot created by a land sale some years ago. He said a former city Councilmember had an entire
parent tract as a homestead and had sold the house and the front lot there on Avenue F and he retained owner-
ship of the back lot sometime in the middle 1970's. He said the ownership then was transferred to another
gentleman some time later in the 1979 -1980 era and then to Mr. Cisneros under an assumption deed. He said the
lot that was created does not have utilities at the present time and was therefore an illegal lot that had
been created in the subdivision rules in existence at the time and under the development code that exists today.
He said the problem is a twofold approach: the request he brought to the Council earlier for an extension
participation request of some $9,000 that would be jointly funded 50:50 because It was less than 300 feet in
either direction for water or sewer and this would be under our standard form, but frankly since it is an
illegal lot, he said, he was well out of bounds in bringing it to the City Council for its approval in the first
place under the principal of first things first. He said we should resolve the issue of the lot before the
utility extension Is considered. He said that was an error on his part. He said this would necessitate a
survey of the lot by a registered surveyor, a platting before the Planning Commission, and this would have
taken an additional amaait of time and a considerable expense upon Mr. Cisneros. He said if the utility exten-
sion costs were a problem, then certainly the administrative costs of a plan to extend utilities and formalize
his lot would have been that much more difficult for him.
Councilmember Green asked if it isn't the subdivider who is the one required to bring this to the Planning
Commission rather than the owner. Mr. Pipes said that is correct. Mr. Bounds, City Attorney. said it is kind
of a joint responsibility - -the owner would be responsible and the person who ultimately tried to develop the
lot. He said as a practical matter, we generally enforce the subdivision requirements against the person who
subsequently acquires the lot because they are the one that first comes to the city for the permits and often
the person who developed the lot is out of the picture. Mr. Pipes said in this case he has been out of the
picture for many years. Mr. Pipes said at this point our administration of the subdivision rules generally
come through the provision of the utilities anyway- -that is the regulatory /controlling authority and that is
when we straighten these things out. He said there is not enough staff, and there couldn't be, to keep tract
of every land transaction that takes place to make sure everything is according to form.
Mr. Pipes said the city also has • mechanism called a boundary line adjustment available if all other
aspects of the subdivision requirements are available. He said it is less expensive and less formal and the
staff can assist a mat dui in rovid rhos• thin a He said Os first task at hand seamed to him, as •
result of his original disucssion with Mr. gall, to try to figure some way Mr. Cisneros could afford to partici-
pate and to get the City's assistance for utilities. He said the original request /presentation was strictly by
the for of our past practice for an area that didn't have adequate firs protection (6 inch water main to support
a fire hydrant), which is a standard, and the extension of less than 6 inches is generally a service line to •
very limited number of houses or lots, but we do allow them under the development code. Mr. Pipes said we also
have a companion utility extension policy that has been used over the years on any occasions, but it is very
difficult in terms of application to get all of the high spots along the way.
Mr. Pipes said the extension policy calls for and our development code calls for the extension of water and
sewer services all the way across the for of the developer that has come in to make the request for the purpose o
future extensions picking up and going from there. In the case of the sewer extension, that was in the original
calculations. it required a 250 foot extension, he said, as Mr. Cisneros' lot is a little over 100 feet wide.
Mr. Pipes said the city felt that because all the services on Avenue F were served off of Avenue F, there was
simply no lot higher than his that could access the sewer line so it would be a reasonable request to come back
to tae City Council and ask that you vary your policy on that respect and limit the extension from 260 feet to
160 feet with participation remaining the same (same cost to the city and 50 percent cost to the property owner)
He said it would require a street cut on 10th Street that will require some stabilized sand and all the other
appurtenances going into it, but Mr. Cisneros' costs would be limited there to 160 feet rather than 260 feet
and thereby we could reduce some of the cost for the sewer service.
The Council was advised the water service was another problem and would require, in any respect, the cut tin
of Avenue F which is a newly paved street completed under the 1986 capital improvements program. He said he
told Mr. Hall he was not very enthusiastic about that, but for this particular situation, we would make every
pt to consider what costs were related there and giv. Mr. Cisneros the benefit of anything we crxtld come up
with. He said we could bring the service to the west side of the Avenue F right -of -way and Mr. Cisneros then
could pick up his service from that point and go beyond his lot to the east side where, in the future, the city
or another property owner or someone else could pick up the line and take it down to Avenue C and loop the line
which is the technical rule required under our development code. He said this is non- standard and it will
require city council special approval. He said it would reduce the costs, certainly below the 39,000 costs we
talked about two weeks ago, but it would require a special dispensation of the rules that the Council had, itse
created. He said he felt we could run that particular question and the sever line variance by the Council for
your consideration. And in the discussion accompanying all of those "what ifs," we were discussing the numbers,
costs, and all the distances, etc. realizing Mr. Hall had a very difficult task of acting as courier or shuttle
between Mr. Cisneros and myself, because, except for one time, he said he has never visited with Mr. Cisneros.
Mr. Pipes said he felt it would be advisable to reduce all this to writing (see packet).
Mr. Pipes said we have at this time a total cost of $4,729, but it not the total cost. He said he
wanted to keep the presentation as simple as possible so Mr. Cisneros would have the benefit of only the infor-
mation that he was required to participate in. He said we have not identified the cost of cutting, backfillin
and extending service outside Avenue F, because with the council's approval, the city will absorb all those
costs. He said we are not asking Mr. Cisneros because under that particular application of that rule in the
extension policy, if the city so chose, then we would do that. He said our standard policy is to add up all the
costa for the first 300 feat and divide it equally between the requesting individual and the city and go from
there. He said we were trying very diligently to reduce the costs as much as possible.
Mr. Cisneros, under this analysis, would be allowed to extend a two Inch line from the Avenue F right-of-
way across his property for water service and put in a blow -off to be connected later to take it on down to
Avenue G, Mr. Pipes said. Of course, he said, it would be an option to the city to take that line on down to
Avenue G now. He said he simply wanted to make the presentation as clear and concise as possible so there
would not be any confusion. He said under the rigid reading of the rule, Hr. Cisneros would have to pay
for a two inch root line from Avenue F to Avenue G, plus the water taps and his individual attachment to that.
He said he felt that in the interest of limiting the costs, if he bore all of the costs, which were estimated
at the time, to be $1500 for that two inch line that would really only serve him, that that would be the least
possible cost he would be required to pay. He said those caveats not withstanding. he admitted the city's
efforts here have been extremely confusing and it has been very difficult for all concerned. He said we have
had alot of things going during these last two weeks and there has simply not been sufficient time to tend to
this particular matter as directly and personally as he would have liked to have done. He said we have made an
effort to reduce the costs as much as possible. He said it still does not resolve the question of the legitimac
of the lot or any other circumstance.
Mr. Pipes indicated to the Council he feels it would be only prudent that the city extend a 6 inch line
outside the Avenue F right -of -way and install a fire hydrant at that point in order to achieve the fire protec-
tion services that the city would require any other individual in the same set of circumstances, and certainly
Mr. Cisneros deserves no less than adequate fire protection. At the same time, he said, those costs are not
identified. He said a fire hydrant is some $600 (installation at $1200) and the extension and ditch we'd
have to cut in Avenue F would be about the same for a two inch or six inch line. He said getting a six inch
line outside the Avenue F right -of -way and installing a fire hydrant would be the only way to keep from having
to grant a variance that we would recognize that this area of town simply did not have adequate fire protection.
Normally, the developer would have to pay half of all costs, he said, because it is at his instigation that any
development is going on.
Mr. Pipes said he was able to rationalize this for himself and if it is inadequate for the Council, he
apologizes for that. He said by 1990 or 1991, depending upon how our CIP funds are going, we would in all
liklihood extend water and sewer facilities throughout this whole area in conjunction with the rebuild of 10th
Street. He said we are simply moving it ahead three years or would be moving it ahead at Mr. Cisneros' insti-
gation. Mr. Pipes said he felt Mr. Cisneros' payment of the entire cost of $1500 for the water line since he
would be the only service at the present time, was appropriate, and it was also appropriate that the city absorb
those other costs in anticipation of the lay when we would be doing it anyway several years down the road. He
said this is totally non - standard.
Councilmember Green asked if there might be some other way to provide water other than cutting Avenue F
as the thought of that was uncomfortable for him. Mr. Pipes said we can come off of Avenue G- -there is a 6 Inch
main in Avenue G, but the distance is nearly three times the length of the extension (200 feet from Avenue F).
Mr. Pipes said there is a significant cost to cut Avenue F, but it is still less than the Avenue G option.
Councilmember Knotts said he is uncomfortable with this whole thing since it is an illegal situation
to start with. He said he is an advocate of strong adherence to our development code. He felt when the lot
transaction. etc., is made legal. the Council will look at it again. but not until then. Councilmember Carter
ne Pipes for all the effort he has gone to on this issue. He said he resents the implication that there
any kind of discrimination here because he feels the efforts and the energy or Mr. Pipes ought to dispel)
that.- He said we have bent over backwards. are asked to vary our code to such an extent that there is nothing
standard about this. He said he feels the Council has not been dealt with a■ completely as it might because two
c..t mods wiehn„e a nermir_ ind_ there are at
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least rumors there are people living on the lot and there 1s ■ health problem because of it. Be said there
are any number of reasons why we have problems with this from a participation point of view. Be agreed with
Mr. Knotts that we should hold to the code and once the lot is subdivided properly and all the other legal
reQufrements met, then we can consider how we want to participate. Councilmember Bell agreed. Councilmember
Green said he was not trying to suggest we do not follow the code with his comment. He said he is assuming
if Mr. Cisneros gets a plat, it will be approved, and then if there is a ray we can deal with the second problem
he'd like to at least discuss that alternative. He agreed the Council should not do anything until there Is an
approved plat, but he is also concerned about cutting a brand new street to serve one house. Councilmember Bel
said he is concerned about putting In a tvo inch line where a six inch line is called for by the code and the
precedent this might set. Mr. Pipes clarified a two inch line is permissible under the development code if it
is looped. He said what would be non - standard is to stop it at the vest line of Mr. Cisneros' lot and say that
1e for service to him only and in the future, it will be connected and carried on. He said it won't be looped
unless we carry it all the way down to Avenue H. He said this is where the development code's requirement for
two inch line minimum would require him to go from Avenue F to Avenue H and pay for 50 percent of the cost o
the first 300 feet plus all other extension costs and this would be well in excess of the $9,000. _
Mr. Knott* said the two inch is not in the capital improvement program. Mr. Pipes said the six inch is
in there, but the city could have a fire hydrant on either end of the block and get a 500 foot radius. He said
we could put the fire hydrant in the middle of the block on either corner. He said we really should not have
a fire hydrant looped off of a two inch line. He said if another two inch comes into it, it should be six inch
going to both directions.
Mayor Monday surmised the consensus of the Council is then that once the lot is le :al with
met, the Council will then take another look at how to provide utilities to that lot.
Consider a proposal to form a coalition of cities in the GSU service region of Southeast Texas and cost-
share studies necessary to provide information to chart a new course in future interrelationship
Gene Pipes, City Manager, noted this request is a result of several months of meetings he has been having
that have been an outgrowth of our difficulties last year in the emergency rate request by GSU and the impendin
bankruptcy that was threatened at that time and the normal rate request that is still pending including prudent
hearings in both Texas and Louisiana on the River Bend Nuclear Plant. He said area city administrators have
recognized the vicious cycle of rate increases year after year. Mr. Pipes said several cities were hiring
rate consultants and those costs were passed on to GSU and GSU passed them all back to the consumer and ve were
in a never ending chase of our tail to try to resolve the problem that we were all facing with GSU. He said
the managers' philosophy 1s to try to identify all of the viable options available in the GSU situation so that
the cities can intelligently and responsibly go to the GSU officials to try to develop a new approach to the
annual rate increase program that has been ongoing and 1s projected to be necessary for the next five or six
years if GSU is going to remain in fiscal good health.
The Council was advised the city's proportionate share of the cost of a study to identify all those areas
that can be evaluated is some $3,35i, which in the City Manager's budget for special studies, audits and
contracts, we have a reserve sufficient to pay that amount. He said he is not asking the Council tonight to
approve the model resolution offered by Beaumont, but is simply making the Council aware of the progress the
city manager's group has made to this point and asking them for their approval to permit those $3,356 in funds
so that the study can be completed and we can go on from there. He said he will be reporting back to the
Council with as much frequency as he can possibly manage so that the Council can also stay abreast of the
situation. He said they are trying to do this on a manager /manager format: the managers of the cities talkin
to the GSU's management and hopefully, together, resolving the problems to a mutually satisfactory benefit.
Mayor Monday noted what we need then is a motion to approve these funds for this purpose. Councilmember
Bell made the motion to approve of this expenditure to join in with this study and Councilmember Carter seconds
the motion. All were in favor and the motion passed unanimously. Mr. Pipes advised Mr. Joel Jeff cote, manag
of the local GSU, is just as anxious as the city managers are to find a solution to this problem and has been
working with us very cooperatively.
Grants Coordinator Resignation
Mr. Pipes advised the Council that Kathy James, our grants coordinator for the last five or six years,
has accepted a position in planning with the City of Newport News, Virginia. He said her loss will be a tre-
mendous impact on the city as she has administered the New Addition Grant of $2.125 million, the Boettcher's
Mill grant and she has worked recently on airport grants and has been a tremendous asset. He said she has bee
on the city's payroll for this entire length of time based on her ability to acquire new grants and has paid
basically from the water and Sever fund or from the general fund or from the grant itself based on what area
she was working in at the time. He said for the last year she has been funded out of water and sever because
she has been working on the Boettcher's Mill project. He said her final day 1s next week some time. He said
the commendations we received from HUD this spring on our handling fo the New Addition project in light of all
the difficulties other cities have had over the years with administering the block grant funds and the nature
of the project that we have been working on in Boettcher's Mill and the difficulties encountered there were
tremendously to her credit. He said we will miss her on staff and feel it is appropriate to express the appre-
ciation of the City Council and the staff for the fine job she has done. We wish her well in her new position
in Virginia.
MAYOR'S REPORT- -JANE MONDAY
Mayor Monday advised the Council will not meet on June 2, 1987, but the next meeting will be June 9, 1987.
She said the summer schedule will be ready then so that the Council can organize their schedule with the budget
aeeslo7m upcoming.
COUNCIL ACTION
USA Neighborhoods Conference in San Antonio: Percy Howard reported on his recent meeting in San Antonio.
He noted the conference opened with • welcome by Mayor Henry Cisneros and the theme of the conference was
that the neighborhoods are the building blocks of a community. He said much of San Antonio's success is
based on its ability to attract tourism and conventions. He promoted the idea of conventions, small and
large in Huntsville. noting the professional expertise available to us at the University should be an
asset to having seminars, etc. in this area on a professional level. He said Huntsville is also on the
crossroads of tourism and because of its history and quality of life, 1s prime for tourism.
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