MIN CC 09/30/1987 (2)1
1
1
1
MINUTES OF SEPTEMBER 30, 1987 BOOK "0" Page 953
I MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 30TH DAY OF SEPTEMBER, 1987 IN THE CITY HALL COUNCIL
CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:00 P.M.
The Council met in an emergency session with the following members present:
Jane Monday, Mayor
Gary Bell
Jim Carter
Ila Gaines
Bill Green
Bill Hammock
Percy Howard, Jr.
Bi11,Knotts
Member absent: City Officers Present:
Gene Barrett (arrived
after vote was taken)
Gene Pipes, City Manager
Scott Bounds, City Attorney
Ruth DeShaw, City Secretary
EMERGENCY MEETING
The brief (15 minute) emergency city council meeting was called to order by Mayor Monday. She noted the
purpose of this emergency meeting is to receive the Council's approval of an amendment to the City's original
'proposal to the Texas Department of Corrections for the selection of future sites of additional correctional units
in the state. She advised that on Friday, the staff received an addendum to the request for proposals from TDC.
She noted TDC is now considering locating four or more 1,000 bed cellblock units housing mixed custody level
inmates in lieu of the two 1,250 bed regional facilities originally described. She noted the facility is expected
to employ approximately 250 staff and would have an estimated monthly payroll of $560,000. The location of these
facilities, she said, is not restricted to 100 -mile radius of the Dallas /Fort Worth or Houston metropolitan areas
as originally specified. Also, she said, the facility is expected to require the same basic site criteria as
outlined in the original request for proposals, except for the following utility usage rates: water: 127,750 MGal/
yr. (on -site overhead storage of 150,000 gallons); sewer: 73,000 MGal /Year; Natural gas: 45,000 MCF /year; elec-
tricity: 4,000,000 KWH /year; and solid waste: 821 tons /year.
Mr. Gene Pipes, City Manager, advised the only monetary effect to the Huntsville- Walker County proposals
results frau the change in the on -site water storage and these would be increased costs borne by the City. He pre-
sented a breakdown of the original and amended proposals for the two proposed sites which showed the Goree site
increases by approximately $65,000 and the Wynne site by approximately $50,000. Mr. Pipes advised the City has
agreed to provide solid waste handling incentives ranging from land filling to incineration to incineration with
energy production with respective costs of $7,129,989, $5,572,500 and $7,266,000.
Patricia Allen, Director of Finance, advised this amendment will cause no problems to the city in relation to
its bonding capacity or ability to finance the projects. She said if the water expansion is done in conjunction
with TRA, costs will be treated as operations and maintenance costs and will not require additional bond coverage
or reduce the amount of bonds that can be issued. Ms. Allen noted bond coverages is sufficient if the council
elects to issue bonds. She said revenue bond coverage for the fiscal year ended September 30, 1986 was 4.55, for
1985, 5.02, and 1984, 4.79. She said our required bond coverage is 1 1/2 times the average annual debt. The
Council was also advised the selection of a solid waste alternative will require a detail analysis of financing
options and the required rate structure. Ms. Allen said the city has the ability to generate the required funds.
Mr. Pipes said the city is not proposing an elevated water storage facility at the Wynne Unit site because it
is in the approach path to the Huntsville Municipal Airport. The city proposes instead the use of the available
existing city distribution system elevated storage and an equal capacity ground storage facility - -hence the differ-
ence in the Goree Unit site and the Wynne unit site costs.
Mayor Monday asked for a motion to authorize the City to respond to this addendum to the proposal. Council-
member Knotts made the motion to respond to the addendum to the request for proposals, as outlined by the staff
and Councilmember Howard seconded the motion. Discussion: Councilmember Knotts asked if the City could use the
elevated water storage facility as well if it were built at the Goree unit. Mr. Pipes noted in the past the City
has not factored in either of the TDC impound units elevated storage in its calculations for its elevated water
tower requirements for state water system approval. He said if the city built the facilities in such a way and
tied them in in such a way that it did have a positive effect on our overall distribution system, the city should
be able to count that as part of its elevated storage. He said the city has air gap separation now at both the
Goree Unit and the Wynne Unit because of supplemental water supplies and Goree's water coming from wells that the
city has no control over. He felt we could design the facility to serve both the unit and the city's distribution
system. Councilmember Knotts noted 150,000 gallon overhead storage tank is not a large tank and the cost increase
would not be porportional to the increased capacity. Upon a vote of the motion on the floor, it passed unanimously.
(Note: Councilmember Barrett arrives.)
ully subm ted,
i
ut oe aw, w, y Secretary
September 30, 1987