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MIN CC 11/10/1987MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" MINUTES Of THE NUNTSVILLE CITY COUNCIL MEETING HELD ON TIIE.IOTH COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M, IN THE CITY OF HUNTSVILLE AND COUNTY OF WALKER, TEXAS AT 6:45 P.M. R, 1987 IN THE CITY HALL The Council met in regular session with the following members present: Jane Monday, Mayor 0. Eugene Barrett (formal session only) Gary Bell James L. Carter Ile G. Gaines William B. Green William L. Hammock Percy Howard, Jr. William H. Knotts, Jr. City Officers Present: Gene Pipes, City Manager Scott Bounds, City Attorney Ruth DeShaw, City Secretary EXECUTIVE SESSION The Council met in formal session at 6:00 P.M. and then recessed into an Executive Session to consider pending and contemplated litigation: Schaper Vs. City; Acker Vs. City; and City vs. Royal "T" Inn; and a proposed real estate acquisition on 13th Street. No formal action was taken in this Executive Session, which adjourned at 6:35 P.M. (Councilmember Barrett was absent from the Executive Session.) FORMAL SESSION Mayor Monday called the formal session to order. Councilmember and Mayor Pro Tem Percy Howard, Jr., presented the invocation. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Barrett made the motion to approve the minutes of the arevious meeting of October 27. 1987 and Councilmember Hammock seconded the motion. All were in favor and the motion passed unanimously. CONSIDER RESOLUTIONS Consider Resolution No. 87 -15 casting all of the City's allotted votes for Dr. Jerry Dowling for membership on the Walker Countv Appraisal District Board City Attorney, Scott Bards, then advised the Council of some changes to the proposed resolution to clarify what the votes ere being cast for and to change the word ordinance to resolution in Section 3. Councilmember Green then made the motion to adopt Resolution No. 87 -15 as amended by the City Attorney and Councilmember Knotts seconded the motion. Discussion: Councilmember Gaines suggested since there are only seven nominations and there are exactly seven positions to fill, that the city's votes should be divided among all of the nominees, rather than cast all votes for one position (Jerry Dowling). After some discussion, the Council agreed with Councilmember Gaines that the city's 953 votes be for all seven of the nominees so that the ballot the city returns to the Chief Appraiser will be as follows: John Amick 136 Ralph Lawson 136 Fred Cherry 136 Robert Oliphant 136 Jerry Dowling 137 J. S. Robinson 136 Joyce Robinson 953 MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" Councilmember Green noted he would entertain an amendment to his original motion to cast the city's votes for all seven candidates and Couicilmember Barrett seconded the aisendirn motion. All were in favor and it passed unanimously. Councilmember Bell noted a letter of appreciation should be sent to Colonel M. B. Etheredge for his service an this Board. Consider Resolution No. 87 -16 designating certain city -owned vehicles es unmarked vehicles and authorizing the City Manager and Purchasing Agent as signatories on necessary forms Gene Pipes, City Manager, advised state statutes require that all city -owned vehicles be clearly marked; however, in the lest legislative session, state law was provided that requires the governing body of the city to now designate in writing those motor vehicles to be used by the police as "unmarked" vehicles for the purpose of performing official duties. He said the City proposes to make this official designation of those "unmarked" cars by Resolution No. 87 -16, the caption of which is as follows: RESOLUTION NO. 87-16 A RESOLUTION OF THE CiTY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, DESIGNATING CERTAIN CITY-OWNED VEHICLES AS UNMARKED VEHICLES; AND MAKING OTHER PROVISIONS AND FINDINGS RELATED THERETO Mr. Pipes noted the investigative /detective vehicles listed below will carry the traditional license plate rather than an exempt license plate: 1982 Ford 1FABP21B7CK100532 1982 -Ford _ 1FABP2631CG114236 1985 Ford 1FABP3933FA163396 1985 Ford 1FABP3933FA117356 1982 Dodge 213311G26E8CR1614O5 1981 Dodge 1B3BR47KOBA118481 1985 Dodge 111311D2608GC199506 Counrilmember Carter noted his concern for not having too many of these unmarked vehicles because he feels there is some advantage to having marked cars highly visible as a crime deterrent. Councilmember Howard made the motion to adopt Resolution No. 87 -16 and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. CONSIDER ORDINANCES Consider Ordinance No. 87 -34 designating 21st Street at Avenue N 1/2 as a stop intersection. ORDINANCE NO. 87 -34 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, DECLARING 21ST STREET AT AVENUE N 1/2 TO BE A STOP INTERSECTION; PROVIDING FOR THE POSTING OF STOP SIGNS ON AVENUE N 1/2 AT SUCH INTERSECTION; PROVIDING A PENALTY OF UP TO $200.00 FOR CERTAIN VIOLATIONS; AND MAKING OTHER FINDINGS AND PROVISIONS RELATED THERETO. Mr. Pipes noted this is the request of a resident living in that area. He noted upon examination, it was decided to put up a "trial period" stop sign. The trial period is now up and it is before the Council for its consideration as a permanent four -way stop installation at this location. Councilmember Knotts made the nation to adopt Ordinance No. 87 -34 and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. 2 MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" 970 Consider Ordinance No. 87 -35 emending Chapter 12. Motor Vehicles and Traffic. by altering speed limit zones along Highway 30 (11th Street) within the city limits Gene Pipes, City Manager, noted this will codify what is actually in place today end amrked by signs. He said the ordinance book is simply in need of being updated. He then presented the caption of this ordinance, which is as follows: ORDINANCE NO. 87 -35 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE TEXAS, AMENDING CHAPTER 12, MOTOR VEHICLES AND TRAFFIC, OF ITS CODE OF ORDINANCES BY ALTERING SPEED LIMIT ZONES ALONG HIGHWAY 30 WITHIN THE CiTY LIMITS; PROVIDING A PENALTY OF UP TO 5200.00 A DAY FOR CERTAIN VIOLATIONS; MAKING OTHER FINDINGS AND PROVISIONS RELATED THERETO; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Councilmember Barrett made the motion to adopt Ordinance No. 87 -35 and Councilmember Bell seconded the motion. Discussion: Councilmember Knotts noted he drove these speed limits early one morning when there was little traffic and found the speeds to be uncomfortable to drive. Mr. Pipes noted these speed limits are set by the Texas Department of Highways and Public Transportation, but the city can certainly ask them to restudy it and consider resigning it. Councilmember Knotts noted he would like to see it 30 to 35 mph ell the way through town, unless it is this way in order to be synchronized with the traffic lights. Councilmember Knotts also pointed out an error in the Ordinance where it says "Avenue E to 200' west of Avenue C" to be 45 mph, should be "Avenue 0 to 200'. . ." The City Attorney, Scott Bounds, said this change is correct and should be noted. Councilmember Barrett and Bell accepted this a er hnent to their motion. All —were in favor of the motion on the floor and it passed unanimously. — Consider Ordinance No. 87 -36 amending Chapter 30. Cammnity Development. to incorporate changes in the National Flood Insurance Program Mr. Pipes, City Manager, advised this ordinance merely incorporates the new requirements of the National Flood Insurance Program into our existing code. He then presented the caption of the ordinance, as follows: ORDINANCE NO. 87-36 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 30, COMMUNITY DEVELOPMENT OF THE CODE OF ORDINANCES OF THE CITY; ADOPTING CHANGES Of THE FEDERAL EMERGENCY MANAGEMENT AGENCY TO THE NATIONAL FL00D INSURANCE PROGRAM; REQUIRING ALL MECHANICAL AND UTILITY EQUIPMENT TO BE FLOOD PROOFED; REVISING REFERENCES TO MANUFACTURED NC4ES (MOBILE HOMES); PROVIDING A PENALTY Of 5200 FOR CERTAIN VIOLATIONS AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATES HEREOF. Mr. Pipes summarized the changes being made, noting in order to retain federal flood insurance coverage, we must do what they ask. Councilmember Howard made the motion to adopt Ordinance No. 87 -36 and Councilmember Bell seconded the motion. After some discussion for clarification, the motion passed unanimously. Consider Ordinance No. 87 -37 authorizing publication of notice of intent to issue certificates of obligation for the purchase of a rear loading garbage truck as planned in the FY 87-88 budget for the Sanitation Division Mr. Gene Pipes, City Manager, presented this ordinance, the caption of which is as follows: 3 MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" 971 ORDINANCE NO. 87 -37 AN ORDINANCE AUTHORIZING PUBLICATION OF NOTICE TO BIDDERS AND NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR A REAR LOADING GARBAGE TRUCK, AND MAKING VARIOUS PROVISIONS RELATED THERETO. (Rear - Loading Garbage Truck, 157,000, 4 years) Mr. Pipes advised this is the one C.O. authorized in this year's budget. He said this is a replacement piece of equipment. Councilmember Barrett made the motion to adopt Ordinance No. 87 -37 and Councilmember Hammock seconded the motion. All were in favor and the motion passed unanimously. MAYOR'S ACTIVITY REPORT - -JANE MONDAY Consider participation in the TML intervention in a lawsuit concerning the revision of the Texas Water Quality Standards in the amount of 11,055.32 to be paid from unallocated reserve -- utility fund Mr. Pipes, City Manager, advised TML is very active in a number of causes across the state concerning matters affecting cities. He said from time to time, TML enlists the financial assistance of the member cities in areas that are of additional expense above and beyond what their normal dues program will cover. He said it is especially appropriate in those areas that require significant litigation. He said the U. S. EPA has been promulgating new rules concerning water quality standards for some time. He said the Sportsmen's Clubs of Texas, the Sierra Club and Environmental Defense Fund, Inc. filed suit last year to participate in the evolution of these EPA rules. He said the TML saw to it at that time to also enter the suit as a friend of the court - -third party - -to pursue what they felt is the best interest of the cities in the State in a theme of good science and sand economics that would maintain the practical aspects of regulatory criteria so asnot to bankrupt the cities in trying to implement new EPA rules. He said the city declined last year to participate in this request. He said the process has now gotten to the point of developing the rules and TML is asking us to reconsider our participation. He said the cost for our city to participate is S1,055.32, based on 35 cents per capita, based on our 1984 population as submitted to the Office of Revenue Sharing, which was 30,152. He felt it is appropriate for the city to respond to this request at this time. He said he saw no financial problems in participating because the funds would come from the water and sewer fund, which is in good financial shape. Councilmember Hammock felt this situation could cost the city many times the 11,000 participatory fee if EPA prevails on this case. Councilmember Hammock then made the motion to authorize the city to participate in this lawsuit and Councilmember Howard seconded the motion. Discussion: Councilmember Carter noted if the city provides support for this, it is actually providing support against the Sportsmen's Clubs of Texas, the Sierra Club and Environmental Defense Fund, Inc., and for this reason, it will be providing a moderating effect on providing water quality for the State of Texas, and he carrot support this. He felt we should accept the judgment of these experts to determine the water quality; he therefore spoke against the motion. Councilmember Hammock noted EPA has a lot more experts in water quality than the Sportsmen's Club of Texas. Cancilmember Carter said, however, that EPA has been gutted under Ronald Reagan's administration. Mr. Pipes said TML's intervention is to pursue the logic of good science (water quality) and sound economics for all interests and is not siding with either party. After some further discussion along these lines, the vote was taken. All were in favor of the motion on the floor EXCEPT Councilmembers Bell and Carter. The motion. therefore. passed by a vote of seven to two. Consider participation in the Texas Capitol Restoration Fund in the amount of S300.00 for a sidewalk paver in honor of the City of Huntsville. Mr. Gene Pipes, City Manager, then presented a request from the Texas Capitol Committee, consisting of Governor William P. Clements, Lieutenant Governor William P. Hobby, Jr., and Speaker Gibson D. Lewis, to participate in the restoration of the Great Walk leading up to the Capitol. It was noted this would be a diamond - shaped paver in the walkway etched with the name of a Texan of our choice who has played a role MINUTES Of NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" 972 in our history. Mr. Pipes noted there will be some 5,000 diamond shaped pavers in this walkway and surrounding it that will be etched with the name of each participant. This paver will be included for our City with the deposit of *300.00 for the capitol restoration fund. Mr. Pipes said the City carrot give public funds for this purpose, but we can contract for a paver of this type. He suggested the name of General Sam Houston be the Texan honored in the paver by Huntsville's contribution, if he is not already designated. He noted this *300 would have to come from the general fund, which is the fund most severely strapped economically. Councilmember Knotts noted if General Sam Houston is already so honored in this walkway, he would like to submit the name of Dr. J. L. Clark, a former Professor of History at Sam Houston State University, who has written several textbooks an Texas history, for consideration as an alternate. Mr. Pipes noted in an ideal situation, the historical committees or civic groups might be in a financial position to do this for a deserving historical individual. Mayor Monday asked for a motion on this item. Councilmember Green made the motion to approve the expenditure of *300,00 for a diamond shaped Paver in the walkway leading up to the Capitol in honor of General Sam Houston of Huntsville, Texas. as pert of the Capitol Restoration effort and Councilmember Knotts seconded the motion. Discussion: Councilmember Bell expressed his concern about this expenditure, recalling the general fund budget is so tight this year that we had to wipe out the HEAP celebration, which would have cost about *315. He said it bothers him that we had to bring that to a screetching halt but then turn around and spend *300 for a paver in Austin. While that per will reflect positively on this community, he said, it is not quite so immediate nor of so great a concern to such a large number of citizens as the HEAP celebration would have been. He asked if the Arts Commission could fund this. Mayor Monday said the guidelines for the use of hotel -motel tax monies will not permit an expenditure of those funds for this purpose. Councilmember Bell cautioned the Council on how it expends its fords in this difficult economic time, and spoke against the motion even though he would like some -type of Huntsville recognition in Austin. Councilmember Carter also expressed his concern for this type_of expenditure now, noting some of the police training - programs had -to be cut this year because of the lack of funds, and he agreed with Councilmember Bell in this regard. Upon a vote on the motion. all were in favor EXCEPT Councilmembers Bell and Carter: the motion, however. •= sed by a vote of seven to two. Acker v. City of Huntsville. provision of sewer service to that devel Scott Bounds, City Attorney, noted as a result of discussions in the executive session earlier this evening, he is now asking the Council for permission to submit a letter, on behalf of the city, with regard to the city's position on providing sewer service to the Aker's development. The Council indicated no objection to the preparation of this letter, so the City Attorney will proceed to do so. City vs. Royal "T" Inn. permission to file lawsuit City Attorney, Scott Bounds, then asked the Council's authorization, as a follow -up to the Executive Session discussions, to file a lawsuit in the City vs. Royal "T" Inn case in regard to past due hotel - motel taxes. There being no objection from the Council, the City Attorney will then proceed with the filing of this lawsuit. TDC Board Meeting in Austin co Monday- -New Prison Location Decision Mayor Monday noted she and Mr. Pipes attended the board meeting in Austin on Monday in the Senate Chambers. She reported seven entities made presentations: Gatesville, Marlin Falls, Liberty County, Woodville, Tyler County, Snyder and Scurry Counties, Childress and Amarillo. She said on the short list, there were ten entities, including the previous seven plus Huntsville, and areas to be designated later near Houston or Dallas. She said the results of the Board's decision are that there will be a maximum security unit in Gatesville; a maximum security unit in Amarillo; a retention center in Marlin Falls, Liberty, Woodville and Snyder, with Childress being the alternate to those. She said Jester 1 and 11 units, one near Dallas and one near Houston, were reclassified as regional centers. MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" 973 CiTY COUNCIL ACTION Dead Tree is Stilt There-- Councilmember Green reminded the staff to remove the deed tree just east of the Dairy Queen on llth Street. Workshop on Signs-- Councilmenber Bell reminded the staff of the proposed worksession on signs. Budget Concerns- -Cocci lmenber Bell expressed his concern again for the budget expenditures and asked for work sessions in the near future, noting his concern for a budget crunch next August and the need for salary adjustments. He felt the Council should become more actively involved, through work sessions, in plotting the city's strategy in coping with presumed financial difficulties and where it is going to tighten up and where pay raises might be appropriate, etc. He then recanmended to the Council that we take a close look at the budget in December. Mayor Monday advised that up to this point, everything is going according to whet the Council has already appropriated, noting there will be no other dollars appropriated at this time other than the dollars appropriated at budget time. She noted at mid -year budget adjustment time, we will be reviewing our financial situation and will then know what our carry forwards are so that we can re- evaluate our budget for changes. She said before then, we will not know where we are on carry forward funds, etc. She noted there. are some positive signs already in that our liability insurance rate may be much less than budgeted and the sales tax receipts are improving. Councilmember Bell agreed with this procedure, but still felt the Council needed to develop some general strategy an and discuss how it will spend any additional funds that may become available, rather than spend "off the cuff" almost. Mayor Monday noted this can certainly be done, but it is still necessary to weit until mid-year budget review time in order to see what funds do become available. _ Coucilmember- Carter also expressed concerns about the Council getting involved with next year's budget as soon as possible, preferably, prior to the creation of decision packages so that the Council can determine what types of decision packages will be offered, rather than only being asked to make incremental adjustments in the total budget. He felt the Council should be making policy decisions and performance decisions and setting goals for next year as early as it can. He concurred with Cohncilmember Bell and asked for budget work sessions as soon as possible to begin talking about next year's budget (1988 -89). Neighborhood Watch Program Meeting-- Councilmember Knotts said he attended a meeting recently on a neighborhood crime watch program for the 19th Street south neighborhood area (300 -400 homes- -most of Ward 2). He said the plan is to divide this area into three or four sub -areas and there will be four people taking care of those areas. Street captains will then be identified and a meeting set up before going to the individuals in the neighborhood. He noted this is a good program and he is anxious to get the word out to everyone. He felt the goat should be set to get the whole city involved. He said the idea is to meet once a month and to get to know your neighbors. Traffic on Avenue 0-- Cou►cilmenber Barrett asked the status of the speeding an Avenue 0. Gene Pipes, City Manager, noted he had nothing to report on this tonight end that it was a wetter of the Police Department working this review into their schedule. Councilmenber Barrett said it would be good to have some signs that indicate children live in the area and for motorists to be watchful and stay within the posted speed limit. Cancilmeaber Knotts noted there is also a truck parked along Avenue 0 for several weeks and it should be moved. Streets Need Sweeping-- Coucilmember Gaines inquired if the street sweeper was functioning, noting we are fast approaching our big tourism weekend (first weekend in Deceaber), and it is important that the city look its very best. Mr. Pipes assured Coucilmember Gaines the sweeper is working, but is just a little behind. MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING BOOK "0" 974 CITY MANAGER'S REPORT Consider purchase of lease purchase equipment for the construction divisions Mr. Pipes presented the Council with a general update of the capital water, sewer and street construction programs. Mr. Pipes said last year when Mr. Isbell completed his sewer analysis report, it contained a recommendation that we televise a large portion of our infrastructure --the old sewer system in town - -to more specifically identify those areas where infiltration and inflow were taking place that were indicated by the initial smoke test study of the sewer system. He said then in February of last year, when we talked about beginning the T.V. Camera analysis, we talked about this in correction only with the streets that Mr. Poteete would be paving in the foreseeable future because the procedure was to get the water and sewer division work finished and out of the way of the street paving crew. He said we then initiated T.V. inspection of the system and we called for :200,000 in seed money to begin the project and to do that portion of the work in association with these particular streets. He said the staff also talked about the work that was done, but did not go beck to the statistical tables which are parts of these reports and the original estimate on how much work in the total system needed to be done. Subsequent to this, he said, Mr. Wilder's department began this work. On October 27, 1987, Mr. Wilder proposed to purchase the T.V. Camera equipment, hire two additional people to operate the equipment, and cancel a contract for this TV inspection work with "lnsituform Gulf South, Inc.," so as to do this work in house and realize a savings. A memo from Mr. Wilder, dated October 29, 1987, indicated Mr. Isbell's report identified $753,000 for cleaning and inspecting certain areas of the collection system. Approximately $354,000 of this total was for TV inspection (approximately 55% of the entire system). Mr. Wilder noted Mr. isbell identified these areas in his report with inflow/infiltration problems in mind. He said the street improvement program was not a pert of the picture at that time; however, a few months later, during discussions of the street program, it was decided that the staff should not construct new streets over old lines without at least knowing the condition of the line. Mr. Wilder noted this information would allow the staff, if necessary, to repair, rehabilitate or replace the line prior to street construction, thus preventing any future damage to a new street. He said this decision did add areas to be inspected with the TV equipment that were not identified in Mr. Isbell's report. He said an estimated 100,000 feet of sewer line to be TV inspected was added to the original 354,000 feet identified in Mr. Isbell's report. The Council was then advised that the TV inspection work identified in Mr. Isbell's report will cost an estimated 1354,000 (based on $1.00 per foot contractor's price) and if the city continues under the current program of inspecting the lines under the proposed street improvements also, it can add another $100,000 for a total of $454,000 to inspect approximately 70% of the city's sewer system. Mr. Wilder said if the city chooses to purchase its own equipment, the cost would be approximately $243 ,000 for a three year program to do the entire system. If, however, the city chooses to do only the 454,000 feet, a two year program would be necessary at a cost of approximately $196,000. He said these are the two options now being presented to the Council. There was a lengthy discussion between the Council and the staff germane to the reasons why it is important to televise all the sewer lines before planning and decision making can take place regarding improvements to streets, etc. Councilmember Green was concerned about hiring additional people because experience shows that once hired, the city has a way of keeping employees on the payroll even after this particular job is done. Councilmember Knotts noted he is a firm believer in free enterprise and private work and hates to see the City do all the construction work. He said the voters approved $4.5 million in a bond issue for materials only and every dollar of that goes out of town, is not deposited in any bank here in town to create any loans- -noting a contractor here in town would be making loans to buy equipment and pay payrolls, whereas, the city is paying the same payroll. He said it is taking that such out of our economy. Councilmember Barrett noted he agrees with Councilmember Knotts' philosophy, but in this case, this camera will be a useful tool to the City to use for this and other projects, as needed, and will, in 4 MINUTES OF NOVEMBER 10, 1987 COUNCIL MEETING B00K "0" 975 the lone run, save the city money and be an added convenience. He noted the staff is telling us we can do it cheaper overall ourselves. While he agreed with the televising of the sewer tines, Mr. Knotts was concerned about whet the city is going to do with all of this equipment and staff when it is through, including asphalt Laydown equipment, etc. The Council then reviewed same of the televised sewer line films already done. Mr. Pipes advised if the City decides to do its own televising work, it will not affect the additional contract with Insituform Gulf South, Inc. to do the insituforming of the sewer lines, which is a separate contract altogether. Mr. Wilder said this company will use the City's films to review when determining how they will do the job; however, just before they put the lining in the pipes, they will televise it again just to be sure the situation is the same as when televised earlier and this cost is built into the lining project. Councilmember Bell made the motion to authorize the city to purchase its own T. V. Camera Equipment and authorized $62.000 from unallocated reserve in the Water and Sewer Fund for this equipment. to hire two additional individuals to complete the televising of the city's sewer lines. and to terminate the current contract with "Insituform Gulf South. Inc. for this televising work. and Councilmember Hammock seconded the motion. ALL were in favor of this motion EXCEPT Councilmember Knotts. who voted OPPOSED to this motion because he felt the city should try to rent this equipment for the time it is needed rather than purchase it. The motion. however. passed by a vote of eight to one. Consider purchase of lease purchase equipment for the construction divisions Mr. Pipes presented a memorandum from Patricia Allen, Director of Finance, advising that the City purchased in April of 1986, equipment (track hoe) that was financed through a lease-purchase arrangement. She noted because of the uncertainty- of the continuation of the street program, the equipment was not purchased outright. Since the bond issue has been approved, she recommends that the City - pay off the - lease. It was noted the balance as of 11 -1 -87 is approximately $44,715. Ms. Allen reported a savings in the amount of 84,021 would be realized and that the interest rate being paid on the equipment is 7.5X. She noted there is sufficient funds in the water and sewer capital projects to pay this cost. Ms. Allen also noted 820,000 has been included in the budget for the monthly payments and the balance can be obtained from the unallocated funds in the CIP budget. Councilmember Green asked if we were getting interest on our money, and are we getting 7.5% less. Ms. Allen noted the city was getting approximately 9% on its money; but now interest rates are down and the city is actually getting about 6.2%, or less than what it is paying. Mr. Pipes clarified it would actually save us a point and four tenths. Councilmember Green noted then that is not 84.021 but more like 8400. He felt for that amount of money. it would not be worth paying it off. The Council generally concurred. ADJOURNMENT R tfully submitted, uth eShaw, ity Secretary November 10, 1987 •