MIN CC 08/02/1983MINUTES.fF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE+END DAY OF AUGUST 11:8., 1983 iN THE CITY HALL COUNCIL
`CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:30 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
.Executive Session
The Council met in executive session to discuss pending legal matters: Nelson Vs. City and Mackey Vs. City
and personnel matters. No formal action was taken by the Council in this session.
FORMAL MEETING
Mayor Nash then called the meeting for the formal agenda open and the invocation was presented by Reverend
Gary McCormick of the First Christian Church.
CONSIDER THE MiNUTES OF THE PREVIOUS MEETING
Councilmember Monday made the motion to approve the minutes of the previous meeting of July 26, 1983 and
Councilmember Corley seconded the motion. All were in favor and the motion passed unanimously.
ATTENDING CITIZEN
Ms. D'Anne Crews of the Huntsville Arts Commission Regarding Request for Arts in FY 1983 -1984 Budget
Ms. Crews described in brief some of the programs and projects of the Commission planned for the new year.
She noted the new budget request reflects the Commission's very best judgement based upon economic as well as
aesthetic considerations. She noted costs have increased in the area of royalties and personnel and this year
is the first time the Commission recommends an increase since the inception of these activities since 1977. She
noted the Commission also recommends setting aside a small sum to be allocated for programs in the arts which
may be developed later during the fiscal year. She noted the Commission requests $36,500 for FY 1983 -1984
and noted this is slightly more than the current projected figures for 1% of the hotel -motel tax. She asked the
Council's consideration is making available from Revenue Sharing Funds the amount that may be required to meet
the $36,500 figure, should the hotel -motel taxes not be available to them at this level. The Mayor noted the
Council will review this when it studies the budget. Mr. Pipes noted the tourism budget has been adjusted down-
ward due to the trend now evident in the tourism industry and he did not project any dramatic change in this
Irituation in the new year. He di4 note, however, that additional motel rooms are being built and this may add
the income in this area. He noted it is projected that there will be $90,000 budgeted for tourism and $30,000
geted for arts. He noted too the Revenue Sharing budget is extremely tight and said there is practically
othing there to allocate. He said the carry forward this year is the smallest ever. He said, however, that the
mid -year adjustments will give us a great deal better picture of our income.
PUBLIC HEARING
Designation of City Limits of Huntsville as a Blighted Area to Permit Issuance of Industrial Revenue Bonds
To Finance Commercial development
Mayor Nash noted that the City posted a notice of public hearing and that proper legal notices have been
published in the local newspaper in this regard. He then called the public hearing to order. He introduced the
subject by stating the last legislature passed a law which comes into effect September 1, 1983 changing the
designations to allow that an area can be either designated a "blighted" area or a "development" area. He said
the criteria for a blighted area includes a relationship of the unemployed, stating it is not expected that the
City would comply with that particular designation of a "blighted" area; therefore, under the new law, Huntsville
will come under the definition of a "development" area. He said until September 1, however, we will be using
the word "blighted" area until the law takes effect. He then asked if anyone was present who would like to
speak to this issue.
Paul Williams, Development Solutions, Inc., a Corporate Financial Advisory Firm, Marshall, Texas. Mr.
Williams spoke on behalf of a group of local investors who wou'ld like to be the first organized group to try to
use this type of financing under this new program. He noted this program was just made available in Texas in 1979.
He noted in 1981, it became available for commercial projects in Texas. He noted SB 105 will take effect Septem-
ber 1 and will change the program a little more. He requested that the Council designate the city to fall under
the requirements of the Texas Industrial Commission to allow industrial revenue bond financing to be used for
commercial projects. He said there are 92 counties who have designated their entire county; 20 cities who have
designated their entire city; and there are 60 who have designated portions. He said the Texas industrial
Commission has stated that any of these designations passed this next month will be grandfathered and will be in
effect for a year until the Council has the opportunity to come back and change the designation.
Roy Williams, Executive Vice President, Huntsville - Walker County Chamber of Commerce. Mr. Williams noted
his concern for the overall economic betterment of this area and reinforced the statements already made. He said
if the Council provides this designation so that commercial entities can finance/their facilities through indus-
trial
revenue bonds, the City will be taking a positive step towards this economic betterment. He noted relative
to 18 months ago, our unemployment rate has practically doubled. He said our household effective buying income
continues to lag behind the state average by about $5,000, indicating the underemployment that exists here in
Huntsville. He noted substandard housing and commercial buildings exist throughout our community, all indicating
Cneed for redevelopment and the need to provide incentives to the private sector to remedy these situations.
said he believes this action will further foster a climate in this community that is conducive to business to
vide some jobs and payrolls which are essentially vital to the people in our community and the governmental
entities which rely on these individuals and businesses for their tax base. He noted this action will encourage
-development inside the city limits rather than on the fringes, thus adding to the tax base and facilitating the
planning process. He noted the Chamber of Commerce Board of Directors endorsed the request of the Walker County
Industrial Development Corporation, that the City designate the entire City as a blighted area to allow the use
of industrial revenue bond financing of commercial projects.
There were no further comments from the public, so Mayor Nash then closed the public hearing. He then moved
to the Resolution which will make this designation.
RESOLUTION NO. 83 -10
A RESOLUTION BY THE GOVERNING BODY OF THE CITY OF HUNTSVILLE, TEXAS, DESIGNATING THE
ENTIRE AREA OF THE CITY AS AN ELIGIBLE BLIGHTED OR ECONOMICALLY_DEPRESSED AREA UNDER
THE DEVELOPMENT CORPORATION ACT OF 1979, AS AMENDED, AND THE RULES AND REGULATIONS
ADOPTED BY THE TEXAS INDUSTRIAL COMMISSION, MAKING FINDINGS IN CONNECTION THEREWITH:
AND PROVIDING AN EFFECTIVE DATE.
Councilmember Corley made the motion to approve and adopt Resolution No. 83 -10 and Councilmember Howard seconded
the motion. Councilmembers Hodges, Tavenner and Monday advised they would be abstaining from voting on this
resolution due to a conflict of interest. Councilmember Dowling voted against the Resolution. Councilmember
Corley, Howard, Davis, Brown and Mayor Nash voted for the motion. The motion to adopt Resolution No. 83 -10
designating Huntsville as an eligible blighted or economically depressed area passed by a vote of five to one
with three abstentions.
CITY MANAGER'S REPORT - -Gene Pipes
TDC Contract - -EMS Services
Gene Pipes advised the Council that progress is still being made on the review of a possible contract with
TDC for EMS services through the Huntsville - Walker County EMS. He noted a draft contract will be brought to
the Council in September for their review:
ELMUD Contract -- Expansion of South Sewer Plant
Gene Pipes noted in March of 1983, the South Sewer Plant expansion project was initiated. He noted it will
be doubling in capacity because of Huntsville's needs. He said the original contracts we have with ELMUD have
become somewhat dated because of the references to capacity and formulas. He said the City is meeting with the
ELMUD Board to draft updated contracts for the consideration of the Council and the entire ELMUD Board at some
tine in the near future.
Shady Lane Water and Sewer Facilities
Gene Pipes noted in reference to this item on the agenda, the proposed project for city participation
envisioned a sewer line to serve one side of the street of Shady Lane (6 -7 houses) and a two inch loop water line.
He noted the problem with water on Shady Lane has historically been the first 200 -300 feet of the line off of
Highway 19 which suffers major difficulty. He noted Mr. Wilder, Director of Public Utilities, noted this could
be solved by changing this 2 inch water line and oversizing it to a 6 inch and thereby being able to extend water
down Shady Lane to provide fire protection at some future time. He noted this is an opportune time to straighten
out a long- standing problem. He then provided the Council with an updated memo which noted it will require an
increase of city money in the amount of $2,588.90 to oversize this line to a 6 inch size and solve the problem.
He noted funds are available in the capital projects (water and sewer) fund. Mayor Nash then moved thisitem up
for immediate consideration from its position later on the agenda. Councilmember Brown made the motion to approve
this project and the oversizing of the two inch line to a six inch line and to award the low bid to Crawford
Construction Company in the amount of 523,033.84 with the City's share in the participation formula for oversizing
to be 514,868.07. Councilmember Monday seconded the motion. All were in favor and the motion passed unanimously.
SOILS TESTING
Contract with East Texas Testes Laboratories, Inc. for Soils Testing and Evaluation in the HUD - -New Addition Area
Mayor Nash presented the staff's recommendation to award a contract to East Texas Testing Laboratories, Inc.
in the amount of 54,500 for soils testing and evaluation in the HUD - -New Addition area. Councilmember Corley
made the motion to award the bid to this company in this amount and Councilmember Dowling seconded the motion.
All were in favor and the motion passed unanimously. It was noted these funds will come out of grant funds from
HUD.
IMPROVE ROSENWALL ROAD
Consider Proposal from Parker & Park Realty, Developers of Northgate Meadows Subdivision, to Improve Rosenwall Rd:
Mayor Nash then presented a proposal from Parker & Park Realty, developers of Northgage Meadows Subdivision,
to widen and improve Rosenwall Road through the City to FM 2821 in a joint venture-cost sharing plan, to include
518,000 for rock as the City's share; $6,000 for rock as the developer's cost; with all labor and machinery pro-
vided by Walker County Precinct 1 Commissioner, Wayne Hooks. Councilmember Brown made the motion to approve this
518,000 for rock as the City's share and Councilmember Corley seconded the notion. Councilmember Dowling voted
opposed to this motion. Councilmembers Monday, Corley, Hodges, Howard, Davis, Tavenner, Brown and Mayor Nash
voted in favor of the motion; it therefore passed by a vote of 8 to 1.
TELEPHONE CHARGES CONSULTANT
Consider a proposal by Amtel Consulting Company of Houston to review the City's telephone charges
Mayor Nash then presented this proposal to the Council, noting that this company would be paid on a recovery
fee basis. Councilmember Dowling noted that he feels it would be appropriate that when this consultant finds
mistakes, etc. that they provide whatever report they file with the City to the Texas Public Utilities Commission.
Councilmember Corley made the motion to approve this concept and award the consultant contract to Amtel Consult-
ing Company of Houston on a recovery fee basis and Councilmember Monday seconded he motion. All were in favor
and the motion passed unanimously.
COUNCIL AUDIT. COMMITTEE RECOMMENDATION
Councilmember Corley noted he and Councilmembers Brown, Howard and Tavenner net to review two proposals to
do the City's audit for the coming year. He noted the Committee recommends awarding the proposal for a three year
period, with a set amount for the first year and the cost for the second and third year not to exceed 5% or the
national deflation rate. He noted it is the committee's recommendation to a.ard the contract to Breidenthal &
Reynolds for three years in the amount of $14,750 for the first year and at a cost for the second and third year
as noted above. Councilmember Brown made the motion to approve the Committee's recommendation and Councilmember
Monday seconded the motion. All were in favor and the motion passed unanimously.
MAYOR'S ACTIVITY REPORT
William V. Nash, Mayor
Appointment of City Secretary TO IIMC State Legislative Committee
Mayor Nash noted the City Secretary, Ruth DeShaw, has just received notice of her appointment by the IIMC
President to the IIMC State Legislative Committee from Region IV, which includes Texas, Oklahoma, Arkansas,
0 ouisiana and Mississippi, for 1983 -1984. He noted she is requesting the Council's approval of her committee
sionment. Councilmember Monday made the motion to approve of this committee assignment and Councilmember
rley seconded the motion. All were in favor and the motion _passed unanimously.
Library Board Appointments
Mayor Nash then made the following nominations of persons to serve on the Library Board, for the Council's
consideration and approval:
Mrs. Florence Dodd Mr. Don Baker is rotating off the board
Mrs. Elizabeth Anderson Mrs. Marge Rex is rotating off the board
He noted these terms commence July 1 and continue for three years, expiring on July 1, 1986. Councilmember
Monday made the motion to approve of these two new appointments for three year terms and Councilmember Corley
seconded the motion. All were in favor and the motion passed unanimously.
Huntsville Housing Authority -- Mr. Nash noted he still has one more appointment to make to this board and he
will probably have a recommendation by the next meeting for the Council's consideration. He noted Mrs.
Winnie Simon is continuing to serve in this position until her replacement can be appointed.
Fireworks & Christmas Decorations
Councilmember Brown
HEAP Annie Ticket Price
Councilmember Brown
OAP Production of Annie
Councilmember Dowling
Former Ward 2 Councilmember
Councilmember Dowling
COUNCIL ACTION
Noted in conversations he had recently with members of the community, it
was suggested that in order to improve and increase the fireworks display
and perhaps fund the christmas decorations needed for Huntsville, that $1.00
could be added to the water bills each month in order to establish a fund
for these needs. He also noted something needs to be done with the July 4
traffic problem at the fairgrounds after the fireworks display concludes.
He noted he has some idea about this which he plans to share with the
Police Chief, David Farrar.
expressed his appreciation to Linda Pease for the explanation she provided
regarding the increased costs this year for the HEAP production of Annie.
reminded those present that the production of Annie would begin on Thursday
evening, August 4 and continue through Saturday evening. He encouraged
everyone to attend.
advised the Council and those interested that his predecessor, Councilman Wayne
Daigle (SHSU Women's Softball Coach) is leaving Huntsville to move to
Lincoln, Nebraska. He noted he is sure the Council and city staff wish him
well as he advances upward and outward in the softball world.
ADJOURNMENT TO WORK SESSION
The Council then adjourned into a work session as posted.
Res.ectfully submitted,
uth DeShaw, City Secre ary
August 2, 1983
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