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MIN CC 09/19/1987MINUTES OF A CITY COUNCIL MEETING HELD ON SETTLER 11, Mr MOOR "0" YAGL 9t MINUTES OF A HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 19TH DAY OF SEPTEMBER, 1987 IN THE CITY HALL COUNCIL I CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUTTSVILLE, COUNTY OF WALKER, TEXAS AT 10:30 A.N. The Council met In regular session with the following members present: Jane Monday, Mayor O. Eugene Barrett Gary Bell Bill Knots Ila G. Gaines William 8. Green William L. Hammock Percy Howard, Jr. Member absent: City Officers Present: Jim Carter Gene Pipes, City Manager Scott Bounds, City Attorney Ruth DeShaw, City Secretary FORMAL SESSION Mayor Monday called the meeting to order. Discuss the incentive proposal package for a Texas Department of Corrections unit location in Huntsville and Walker County Mayor Monday noted the City is responding to the request for proposals from the Texas Department of Corrections tor a 2,250 man maximum security facility !nd two 1,250 man regional reintegration centers by submitting a site location proposal for each of them. She noted these proposals are being developed by the Huntsville- Walker County Site Proposal Task Force which is composed of the City of Huntsville, County of Walker, Huntsville- Walker County Chamber of Commerce, Huntsville8Walker County Economic Development Corporation, Inc. and the Hunts'Oflle Independent School District. She noted the request for proposals was received approximately two and one -half weeks ago. She said our answer will be from two levels: a stand alone unit and the second will be for resources that can be made available as a whole for the location of these and the improvements that ve could offer for the entire system; this necessitates an "A" and "b" option in the proposal which means we'll be offering a variety proposal as opposed to a straight out proposal. She advised the Task Force will be pro - posing that the 2.250 man maximum security facility and one of the two 1,250 man regional reintegration centers be built in the Huntsville- Walker County area. Gene Pipes, City Manager, advised the 2,250 man maximum security facility will employ 776 people, will generate a monthly payroll of $1.3 million and the proposal states It is anticipated another million will be spent for utility payments. He said the 1,250 man regional reintegration center is projected to employ 383 people at full employment and will generate approximately $650,000 monthly payroll and a $500,000 annual cost for utilities. The Council was advised the proposal refers to the 2,250 man maximum security facility as Ellie III because there 1s more than ample land in the Ellis farm complex, 7.000 acres or more to put a third unit; although TDC 'will name it what they will. It is proposed to locate it at the corner of Smither Farm Road and FM 980; a future site location in TDC's master plan, according to the City's information. The proposal for this facility includes two options: A - -a stand alone proposal for this unit that addresses water, sewer, and garbage service for that unit by itself. He reminded the Council that two years ago we had a request from TDC staff to analyze the cost of providing water to the existing Ellis 1 and II units from the TRA plant. He said we did a prelimin- ary engineering study -- Turner. Collie b Braden -- through the auspices of TRA and we came up with some very good proposals for them. He said the Council then concurred to send a letter to TDC offering to construct approxi- mately a two million dollar water line across Meadowltnk Road and down Hwy 980 to the Ellis units to supply them with eater, if they would take a minimum quantity of water in order to recoup the capital over time. He said that proposal has been on the table now for some time but financial situations have perhaps played a role in preventing further action on this proposal. He said the staff has taken that original water proposal and fit it to Ellis III to say that we could extend the water fcr $2,701.000 to that site if this proposal is accepted (based on previous council commitment that has been on the table for Ellie I and II for some time). In the area of garbage, he said, the city- county Solid Waste Disposal Committee has been con8*dering `available options for the past 18 months, based on the Engineering Science solid waste study commissioned two years ago. It is recognized that the one key element to a fixed - placed permanent solid waste disposal facility — incinerator - -vas a customer, and TDC is that permanent customer in Walker County that can make that option work. This proposal pledges a further study which may be necessary to fit a solid waste disposal facility to some aspect of this TDC unit, either as steam generation or dry heat or electrical co- generation, if TDC is interested. He said we are also promising, through this proposal, to take TDC's garbage, no matter what. He said it is costly for TDC to operate landfills or other solid waste disposal facilities independently and the 'regulatory pressures and long -term liability those type operations have are those of which TDC is very sensitive nov. He said the city is putting its strength forward as its basic proposal - -we'll take TDC out of the garbage - business. He said the garbage option is the same on all of the city's proposals. He said the city could, if all things work right, spend $7,222,000 building a solid waste incineration facility, but the cost would be !paid back through users (TDC, SHSU, city and county users). The capital coat of the facility would be revenue bonds, as discussed in the Engineering Science report. He said the city expects its solid waste disposal costs to go up over the next several years, no matter what it does, due to regulatory pressuresamd if we make a decis- ion for an ultimate long term solution as to what to do, we still have additional rate increases to face in garbage. He said the association with TDC would not prompt or promote or accellerate those costs as we are going to have them no matter what. These costs, however, will be recovered through the rate payers associated with that service - -user fees. Similarly, he said, the city knows TDC has compliance problems with their wastewater discharge throughout their system, so the City is promising, through this proposal again, to initiate an engineering study to develop a facility that will match their effluent discharge and deliver a ;product - -a final water discharge, that will comply with the 10:15 permit parameters that will undoubtedly be required by the Water Commission because of this Unit's location in proximity to Lake Livingston. He said that potential'is $3,729,000 if the city builds a plant for Ellis III to serve that one unit, but that is only a projection based on the fact that we have a regional wastewater treatment plant in North and South Huntsville , and we have experience in regionalization with water and wastewater to the TRA facilities, and with one to one bond coverage on the volume of water and the strength of effluent we know we're dealing with at TDC, that is the' beat preliminary estimate we have that may be expected. He said TDC would be billed monthly based on a break; even situation- -all of our water and sewer and sanitation are break -even as we are not in the business to make money. He said it is important to underscore that in all of these proposals, the rate payers (residents) in the City of Huntsville are not and should not expect to have any increases associated with this proposal and he does'! not foresee any need to increase water rates or sewer rates to serve TDC, but they are in need of the service and it is an important economic aspect of the proposal and the city has included it for their consideration. _ d Mr. Pipes said he does anticipate rate increases in sanitation in the future, whether we are associated with TDC or not and he did not want there to be any misunderstanding about this. He said we'll have an increase this year and there will be-increases in the future in order to pay for the ever increasing cost of solid waste disposal, but these increases are not related to this proposal. Page BOOK "0" Minutes of September 19, 1987 Mr. Pipes said Option "B" of the 2,250 man maximum security facility proposal (Ellis 111). is to combine the water, sewer and sanitation needs of Ellis I and 11 and III along with the regional medical facility that is1 already authorized and planned at that maw site into a truly regional system that complies with the state's . mandate for regionalization and attains the goal the state has voiced and written and is, in fact, incorporated in the city's comprehensive plan. This will carry out our initial mandate and it is a very, very high priority 1 item that we have talked about for a long time. He said the city had not specifically planned sewer service to' the TDC Ellis Unit in the past, but we had planned for regional sewer service and we have situated our two existing plants to be regional sewer facilities, and we will be following that same mandate in making this pro- posal. He said the TRA surface water plant is a regional water supply system, although Huntsville is the only customer at the present; our distribution system includes Elkins Lake and areas outside the corporate limits of the city. He said this water line extension across Hwy 980 would open up the entire northern part of Walker County to a very good regional potable water supply for this area and would be a critical part of a developing ! economic base in that area. In addition to these three tangible items on the Ellis Unit, the city is incorporating transportation improvements that have been slated and ongoing for some time (four lane widening of Hwy 19 from Huntsville to Riverside - -$11.2 million project; Smither Farm Road designation as a farm -to- market road -- $940,000 project to , be let in March; widening of FM 247 from FM 2821 N to FM 980 with contract to be let in February for $850,000 'for a four -lane curb and gutter improvement). Mr. Pipes said the City will again make a proposal to the State Highway Department to widen and improve FM 980 itself from that "Y" to Riverside. He said the city has also advanced a proposal to the Highway Commission for a bridge at the end of the Smither Farm Road over to the Kittrell Cut -Off area which would join all of Walker County in a transportation link for the first time in history (old ferry crossing antiquity) - -this would be a major asset and advantage to TDC because tke Eaatham Unit personnel and supply line could be centralized or brought into the Ellis facility and on into the central supplies in Huntsville without making the 30 mile trip to Trinity and across the bridge or to Midway. Mayor Monday noted work on all of these projects was through the efforts of the Walker County Transportation Committee comprised of the County Judge, Mayors of all the Walker County towns, plus representatives of TDC. SHSU end { the Chamber of Commerce and the major thrust of all these efforts was to serve TDC -- tangible proof of this community's commitment to work with TDC to facilitate their needs. Other community resources that are a part of all three proposals include: the Hospitality House for inmate relatives; Brazos Transit Transportation to units; Lee College extension classes for inmates; Sam Houston State University higher education for inmates and employees; special court and prosecutor and defense counselor operations with courtrooms at Wynne Unit, C.J. Center, etc.; experienced Fire Department; transportation; churches, chaplaincy program, outreach programs, Prison Ministry; Criminal Justice Program; cooperative police department, etc. Mr. Pipes then referred to the 1,250 man regional reintegration center site location proposal and said it will contain two options -- Site One is at the Wynne unit across I -45. The city will be pledging to build the northwest segment of the city's 12 inch outer loop to supply water to them at a cost of $860,000. This would complete the city's outer loop system and benefit the entire community as well as acquire 383 new employee 1 He said this site could be accentuated by the north loop segment of the West Beltway and the link up with High- way 30. He said the city also proposes to build a lift station and force main sufficient topump the effluent from that unit back to the Diagnostic Unit for pretreatment to prevent the loading problems at the North Plant (*414,000 expenditure). He said the water and sewer costs would be recaptured through the rates necessary to N build those facilities and provide services. Site Two is at the Goree Unit on the south side of town where therel is 600 acres of land; Option A is for a stand alone 1,250 man unit and the city will provide water ($303,000) and sewer ($373,000) and Option B is to combine the sewer of existing Goree Unit and the new regional reintegra- tion unit which will requrie lift station:, and force mains from the site to the city's lift stations presently in service and the Southwood Drive lift station would need to be oversized and at least one lift station through the Elkins Lake collection system of which the city has 852 of the flow. With the recent expansion of the South Plant. the city will be able to take this extra TDC effluent at that plant as well as realize the frealization of that particular area of the community. He said there is no manufacturing at Goree, so they still use the lagoon system and area irrigation, so their effluent could be taken at the South Plant without pretreatment. Mayor Monday noted the study we are proposing would address future industrialization at the 1Goree Unit and how that would be addressed and provided for in the future. Mr. Pipes said in the area of j transportation, Southwood Drive may be upgraded and perhaps FM 2980 could be tied into the transportation system. The Council generally commended the Mayor. City Manager and staff for the very good proposal they have 11 put together. Councilmember Bell, as a member of the Solid Waste Study Committee, wished to underscore and C emphasize the incineratioi: proposal, noting it is the best ultimate solution to solid waste in addition to its 1' ability to generate electricity or steam, and he felt that should be extremely attractive to TDC. Mr. Pipes then read how that item is stated in the proposal. "The City of Huntsville will construct and operate a 150 iton incineration unit which will take all of the solid waste from the Diagnostic, Eastham, Ellis 1, 11, Ferguson[ Goree, Walls, Wynne, Pack I, II, with the solid wastes of the City of Huntsville and Walker County" (that is a { regional, comprehensive proposal and is all of the central regional units from Navasota to Palestine brought into Huntsville and burned at one unit -- that's economy). "This will remove the Texas Department of Corrections ';from the need to dispose of solid waste through landfilling and of maintaining state licensed landfill sites, the regulatory authority and liability long term. "Further, Option Two provides for generation of either steam or electricity which can be provided the Texas Department of Corrections for the operation of a manufacturing A processing facility. Option one provides for the construction of a 150 ton incinerator unit without production t or steam or electricity. The estimated cost of the facility would be $5,572 million, with a break even cost of 150 tons per day of $21.72 per ton, or ;1.63 per loose cubic yard, as compared to our $1.25 now, so the city would have to go up for everyone using it, but the city will be going up in costs anyway. Mr. Pipes said Optio* 2 provides for a facility car ble of producing steam and/or electricity for an estimated amount of $7.12 million with the estimated break-even cost at 100 tons per day at $19.36 or $1.45 a loose cubic yard, predirateo on rue' sale of electricity back to TDC in order to reduce their cost of operation. Mayor Monday noted we would not be able to make a presentation of this magnitude ii we were not as pro- gressive as we are in our data collection and computer application of that data. She said the bottom line in this proposal is "dollars" as we are offering a low cost proposition to save this state dollars. Councilmember Barrett made the motion to approve of the incentive proposal as discussed above for sub- . mission to TDC on Monday and Councilmember Green seconded the motion. All were in favor of the motion and it passed unanimously (Note: Jim Carter is absent). Mayor Monday then advised the Council of all of those vho have contributed to this proposal with time, money and expertise, including the Economic Development Council who paid for printing and binders- -Tom Hart, President; B111 Hammock has offered employee assistance in collation; Nancy Tiller of EDC has handled printing, paper, acquisition of binders, design; SWBT has sent an employee - -Frank Berryman, who has been writing around the clock for almost two days assisting Dale Brown; Glenn Isbell has done such writing and calculating; Helen Belcher has assisted tremendously, BUT ABOVE ALL, Dale Brown gets the credit for this presentation because he has organized, performed, and put it together and he will be mainly res onsible for delivery of this document. ADJOURNMENT Respectfully submitted: Ruth S v, ity sacra ary, September 19. 1987