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MIN CC 07/12/1983A. MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 12TH DAY OF JULY, A.D., 1983 IN 1HE CITY HALL COUNCILij CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 7:08 P.M. The Council met in regular session with the following members present: William V. Nash, Mayor Murray A. Brown Larry Corley Stephen E. Davis Jerry L. Dowling Bill Hodges Percy Howard, Jr. Jane Monday Bob Tavenner The meeting r!as called to order by the Honorable William V. Nash, Mayor. The invocation was presented by the Reverend Elmer Fulp of the University Heights Baptist Church. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Monday made the motion to approve the City Council Minutes of June 21, 1983 and Councilmember Corley seconded the motion. All were in favor and therotion'passed'Unanimously. PLANS FOR A RETIREMENT LIVING CENTER 1 Jim Brale Administrator and Board Member Huntsville Memorial Hos ital to discuss their a lication and p ans or a ret remen v ny cen er ,t a w oca e. a.4 cen to t a er :u ng o osp tal), on Avenue N. between 12th and 11th Streets. Mr. Braley introduced Mr. Walt Whitmire, Architect, with the firm of FHBH in Houston and Mr. Mike Graue, Assistant Administrator of Huntsville Memorial Hospital. Mr. Braley noted the living center would be an inde- pendent living retirement apartment complex, four stories in height, containing 41 apartments. He asked that j the Council look favorably upon the project and support it when the Department of Housing and Urban Development 1 sends information to the City regarding the project. He noted Huntsville Memorial Hospital owns a 1.3 acre tract immediately adjacent to the Ella Smither Building, bordered by 11th Street and Avenue N and 12th Street. He note HUD funds have been requested. The two sponsors for the project are the HMH Board and Moody House (organization ii Galveston, Texas, which owns and manages several nursing homes). Mr. Whitmire, Architect, presented the Council with technical details on the project. Mr. Whitmire noted funds are requested under HUD's Section 202/8 Housing Program for the elderly and handicapped, which is available to private, non -profit sponsoring organizations (Huntsville Memorial Hospital and (body House, Inc.). He noted the City has indicated to HUD in their Housing Assistance Plan that there is a need for 30 units for elderly assisted housing. He noted this project can fill that need, although HUD may note the difference in number of units and be addressing that to the City. He asked the Council for their favorable support for the project, noting that this presentation is made so that the City will be aware of the project and will be able to comment on it when HUD sends out their information. Mr. Whitmir noted HUD will require permanent access to this facility, which may require that Avenue N not be closed as is planned for park purposes. Mr. Whitmire noted 3/4's of a parking space will be provided per dwelling unit, which differs from the Building Code, which requires 1 1/2 spaces per bedrocm. He noted they will requesj a variance from the City on this. He noted water and sewer are available off of llth Street and the Fire Department can handle a four story building for fire protection. Mr. Roy Williams, Executive. Director of the Chamber of Conmerc and involved in the Town Creek Park planning, noted the park plan can be revised to take into consideration the needs of this new housing development and alternatives to closing Avenue N will be investigated. After a short question and answer period by the Council, Mayor Nash noted the City looks forward to receiving the document from HUD and that it will make every effort to work with them in the program. PLANNING COMMISSION REPORT Mary Frances Park, Planning Commission Member, to report on their recent meeting -- Metering of condominium and apartment type units. Mrs. Park noted the Commission decided to revise the City's Subdivision Design Standards to read: "The developer shall provide individual utility connections of all metered utilities for all dwelling units intended for individual ownership, except water service to apartment type condominiums need not be individually metered." She said this gives the developer the option to go with individual meters, but does not require it. -- Building Side Set - Backs. Mrs. Park noted the Planning Commission recommends that Table 6 -1 in the Sub- division Design Standards be maintained as it is. It requires that set -backs be measured from the property line. She noted the present requirement is ten feet on each side of the property line for a 20 foot ease- ment. She noted the Planning Commission recommends revising the Building Code (6 -60 and 6 -61) to adopt Table 6 -1 regarding set -backs as is presented in the Subdivision Design Standards. The Commission is also recommending that an additional section be added providing a 10% of lot width requirement for setback with a minimum side set -back of five feet for lots already platted that are 60 feet or smaller in size. Mrs. Park noted this provision does not apply to the fire district (downtown area). The Commission feels that measurements should be taken from the exterior building to the property line and that there may be an overhang of no more than two feet into the set -back area. She felt this pretty well covers the subject as they discussed it last night. Mayor Nash thanked Mrs. Park for her very informative and descriptive report. He asked the staff to take this information and prepare it for Council consideration at the next meeting.on July 26. DECLARATION OF HUNTSVILLE AS AN ECONOMICALLY DEPRESSED AREA Bill Green, Member, Sam Houston Investors Dr. Green advised the Council that some years ago Congress passed a 1awwhich enabled states to pass enabling legislation which would allow them to issue industrial revenue bonds for financing industrial projects and com- mercial projects. He said in 1981, Texas passed a law which allowed us to use commercial projects to be financed using industrial revenue bonds.* He noted Texas' law requires that for an industrial revenue bond to be issued for a specific project, one of three things has to happen: either the entire county, the entire city, or part of the city has to be designated as "economically deprived and blighted." He noted 92 counties in the state have *These funds would-be used to build the Sam Houston National Bank Tower located at 3015 11th Street (five story office structure containing 51,144 gross square feet. mically deprived or blighted. He noted Sam Houston Investors has a project that does qualify for industrial revenue bonds as a method of financing. He said this project has been endorsed unanimously by the Walker County industrial Board. He introduced Roy Williams and Ron Mitchell of the Sam Houston Investors. He asked the Council to pass a resolution which would give notice of a public hearing to be held on whether the entire area of the city should be established as blighted or economically depressed. Dr. Green introduced Paul Williams, a specialist in the field of industrial revenue bonds (IDB's). toanswe any questions of the Council. Mr. Williams explained that an industrial revenue bond is a long term commerci loan with a tax - exempt status. He said it is private honey loaned by private people to private organization He said the user company who borrows the money or who receives the proceeds of the bonds pays the normal taxes, they have to pay the property taxes, etc. He said the only difference is that whoever purchases the bonds does not have to pay 100% of the taxes on the interest; it is similar to a government security. He said an industria development authority 1s created as a subsidiary of governmental unit. He said in Texas, since 1979, when the act went into effect here. 40 years after many of the other states had been doing it. there have been 354 city or county or governmental districts who have created these authorities to issue industrial development bonds. He noted in this area, the Walker County Commissioners Court created the Walker County Industrial Development Corporation. He said they have taken inducement on three different projects and have issued bonds on one (Brain 011 Tool Project) -- he said they issued industrial development bonds in order to provide financing to create those jobs. Mr. Williams requested the Council's consideration of a resolution to designate the entire area of Hunts- ville as blighted or economically depressed. He noted this resolution was adopted by the Walker County Develop- ment Foundation on July 1, which is the board set up by the Commissioners Court. The President of this Founda- tion is Nat Davis and Ron Mitchell is its Secretary. He noted they are requesting the Council's designation of the entire City as blighted or economically depressed to allow for commercial financing with Industrial Develop- . lent Bonds. He noted the Industrial Development Board leaves it to the discretion of the local government to make this designation for all or part of its city, to have a public heariny on it. and on each project that occurs within that designated area. He noted the Council will have to verify that the project is within the designated area and to approve the type of project proposed for this method of financing; noting this is done on a project by project basis. Mr. Williams noted the County is being asked to make this designation for the County. Councilmember Hodges made the motion to approve this Resolution No. 83 -9 and Councilmember Monday seconded the notion. iiscussion: Mr. Williams answered questions regarding IDB's competition with municipal bonds and noted that they have been competing with IDe's since the 193es and it Is nothing new for other states who have have IDB's for some time. He said they do drive the interest rate up. He noted in answering another question that the subject designation is good for five (5) years. He said it has nothing to do with property taxes or , property values but merely allows industrial commercial bond financing. Mayor Mash noted philosophically, he would not vote for this bill in Congress. but noted: They did not ask me.' He felt that now that it is here, he felt the City would work a considerable disadvantage if it did not take advantage of the same situation every other city and county and state has. He did not wish to penalize the City by not making this designation, but noted he still does notlike the bill. Councilmember Dowling agreed with the Mayor. After further discussion, a vote was taken on the Resolution and it passed unanimously. ROLL -OFF CONTAINER TRUCK Consider an Ordinance No. 83 -24 approving claim and delivery of cert ficates of obligation for a roll -off con tainer truck for the Commercial Sanitation Division and considering bids for the issuance of the C.O.'s in the amounts of $40,105 and $13.755. Mayor Nash presented this ordinance, the caption of which is as follows: ORDINANCE H0. 83 -24 AN ORDINANCE APPROVING CLAIM AND DELIVERY OF CERTIFICATES OF OBLIGATION; AND CONTAINING OTHER PROVISIONS RELATED HERETO. Mayor Nash then opened the bids from the area banking institutions on the interest rates to be paid for the certificates of obligation. The bid tabulation is as follows for the four year certificates: Sam Houston National Bank 9.51% First National Bank 10.75% American Bank 9.35% (low bidder) Huntsville National Bank 9.40% Councilmember Brown made the motion to accept the low bid of American Bank and to adopt Ordinance No. 83 -24 and Councilmember Corley seconded the motion. All were in favor and the motion passed unanimously. SOIL5 TESTING FOR NEW ADDITION PROJECT Consider a proposal for professional services for soils testing necessary to the HUD - -New Addition project, from East Texas Testing Laboratory. Inc. in an amount not to exceed $4.506 to be paid-from project funds. Mr. Pipes, City Manager, noted East Texas Testing Laboratory, Inc. has been recommended because they have now moved to Huntsville and have set up a branch office here. He noted logistical problems of the past make a local laboratory more desirable to do this work. He noted he found out just this afternoon that there is an additional soils testing laboratory recently relocated to Huntsville and they have not been contacted. He asked the Council for their consideration of postponing this matter for two weeks to allow the staff to get a quote from the new company regarding their costs to perform these services. Councilmember Brown made the motion to i table this item for two weeks and Councilmember Monday seconded the motion. All were in favor and the motion passed unanimously. Mayor Nash noted the price list provided from East Texas Testing Laboratory, inc. is a standard price list and is public information and he did not feel this delay would work a disadvantage to them. CITY MANAGER'S REPORT- -GENE PIPES Reclamation of the Old Worth Huntsville Sewage Treatment Plant on Avenue M Mr. Pipes reminded the Council that some 18 months ago, when the Parker Creek Sewage Treatment Plant (P. J. Brown Wastewater Treatment Plant) was opened, it was proposed in conjunction with the budget to reclaim the old plant at a total cost of some $95,000. He noted it was conceived that this land should be turned into a park and it is in this direction that the staff has pursued the reclamation. He noted the expense of the reclamation will reach the high $90,000's range and noted perhaps the value of this seven acres isn't worth the kind of money required to reclaim it. He asked the Council to again rethink what the best disposition of this property might be. Mr. Pipes, City Manager, presented to the Council a memorandum from Glenn Isbell, Director of Engineering Design regarding computer recommendations, dated July 12, 1983. Mr. Pipes noted the computer is a very elemen- tal building block for the Capital Improvements Program, noting that the City has not had the type of data avail- able to make the type of capital improvements decisions and to make good solid recommendations. He noted if the City is to get into this type of research and development type project, it needs the computational abilities this computer would bring to the Design Engineering Department. He noted the staff had recommended a combination of certificates of obligation last fall that would purchase this computer. He said the city originally set aside the money forC.O.'s to purchase new police cars and when the DPS vehicles came available, the city switched the computer for the DPS vehicles and it acknowledged at that time that it would have some $78,000 to $80,000 C.O. available, planned for, to purchase this computer. He asked the Council to review this report. Mr. Pipes noted the calculations now show that it will cost approximately $82,934. He asked the Council's guidance and direction as to pursuing the purchase of this equipment through certificates of obligation, as outlined. Discussion Item 1 (Reclamation of Old North Plant Property) Mayor Nash noted the city must spend whatever funds are necessary on this property to remove all hazards and render the property safe. He noted, however, that a full seven acre park there may not be desirable and perhaps a one -one and one -half acre park would be more desirable. He noted access to this area is difficult. He noted this area is close to the recreation area associated with lance Park Junior High School carpus. He felt the City may be able to spend this money elsewhere rather than on this area as a park. He asked the Council to consider selling approximately 6 acres of this land or trading it for other land. He asked the Council to think about this for the next two weeks and asked the Council to visit the site to see it for them- selves. Mr. Corley noted he agreed and said he would rather spend this money in Emancipation Park. Item 2 (Design Engineering Computer) Mayor Nash noted the tremendous amount of work needed in the water and sewer areas of the city. He noted the utility mapping program, underway for same three years, is an attempt to find out what we do have in the ground. He said a part of the Capital Improvements Program is to take this information and analyze it to deter -! mine what must be done with our system in order to get it to be the efficient, proper system that it should be. i He said many of the lines have been put in the ground rather haphazardly and alot of it is worn out and much of it is not effectively doing what it is supposed to do. He noted this analysis of data and design work can be either contracted out to another party's computer or for the City to purchase its own computer and do it in- house. Mr. Nash said if the City has the computer, it has all of the information, to be used for as long as it is needed, and the information can be added on to, adjusted, or rehabilitated. He said to him this computer is a part of the capital improvements program and is actually the design part of the water and sewer work. Mr. Pipes advised the Council that additional people will be needed to do the design and programming work for this computer. Mr. Nash noted he would have reservations about getting the computer, if the city does not plan to do all of its own design work. He felt that the City would, however, be better off having its own computer and getting all of its utilities on a computer. The Mayor asked the City Manager to bring this information back in two weeks for Council action. MAYOR'S REPORT Appointments to Library and Housing Authority Mayor Nash noted he is still working on the recommendations for board members. He noted he will have his appointments firmed up by the next meeting for Council approval. Interagency Council Meeting Mayor Nash noted he met with Gary Collins of HISD and Ralph Davis of Walker County today at noon. He noted Dr. Bowers and Mr. Estelle could not attend due to conflicts in their schedules. He noted they discussed the ruling by the Supreme Court that changed the taxing situation with regard to banks. He noted banks' federal securities are now exempt from taxation. He noted the City cannot budget this current year for an income from that source. He noted he did not know how much of a reduction that would be yet. COUNCIL ACTION Capital Improvements Shopping List Councilmember Brown suggested that the Council formulate their own priority lists for capital improvements, either individually or collec- tively, rather than waiting for recommendations from the staff. Mr. Pipes noted the charge to the staff from the last meeting was to develop !: an outline of a program approach, of which Council input and that of the community, Planning Commissi.m,etc. would certainly be a vital ele- ment. He said the outline should be ready on the 26th of July. Mayor Nash noted he thinks the Council should see the staff recommendations first so as not to pre-empt the staff's efforts. Councilmember Monday suggested the Council /staff develop these priorities together and then ask for public input on that priority listing that they jointly develop. Mr. Pipes noted a work session can be planned on this for next Tuesday night. Mayor Nash asked that the Council discuss only general obligation type capital improvement program on Tuesday night to make it less confus -! ing for the news media in reporting to the public, if several funds are discussed at the same time. Calendar for Council Meetings: July 19- -Work Session to discuss general obligation capital improvements., July 26 - -City Council Meeting July 30 -- Budget Work Session (Saturday at City Hall) (All day) August 2-- Council Meeting and Public Hearing on Economically Depressed Status August 16 - -City Council Meeting August 30 - -City Council Meeting Councilmember Corley advised the Audit Committee (Brown, Tavenner and Howard, that the committee will be interviewing prospective auditing firms beginning at 1:30 P.M. on Wednesday, July 27, and for thirty minute intervals thereafter until all firms have been reviewed. Percy Howard dittoed the comments of the Mayor earlier to spend any park funds at Emancipation Park, rather than on the old North Sewer Plant site. Coyncilmember Dowling warned against being overtly hasty in cancelling all park -type plans at the North Sewer plant site i pport of some portion being designated a neighborhood park the ncsrrc?r':1.. Park Plans fn