Loading...
MIN CC 02/22/1983PAGE 273 - -BOOK "N" MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 22ND DAY OF FEBRUARY, 1983 IN THE CITY HALL COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 7:00 P.M. The Council met in regular session with the following members present: MEMBERS ABSENT: William V. Nash, Murray A. Brown Larry Corley Stephen E. Davis Jerry L. Dowling Delora King Goree McGlothen Bill Hodges Jane Monday Mayor The meeting was called to order by the Honorable William V. Nash. The invocation was presented by the Reverend Dan Schiel of the Huntsville Christian Center. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Corley made the motion to accept the minutes of the previous meeting of February 8, 1983 and Councilmember King seconded the motion. All were in favor and the motion passed unanimously. AN ATTENDING CITIZEN: Mr. Wynn Earl Westover To Discuss Industrial Waste Products in the City's Water Supply Mr. Westover indicated he has a Bachelor's Degree fromWesleyan University, majoring in biology and chemis- try. He noted he attended medical school for approximately two and one -half years at the College of Physicians and Surgeons at Columbia University. He noted he did genetics research and cancer research during medical school, prior to and following. He said he has been a scientist and student of the fluoridation question for more than 20 years and led teams of scientists in the California State Legislature on two occasions in presen- tations on the fluoridation matter. He noted he has done research on his own. Mr. Westover advised the Council that fluoridation is a pollution waste product. He noted it is not speci- fically manufactured, but is acquired as a waste product which is derived from various processes of manufacturing. He said he is not an anti- fluoridationist but he believes people should have a choice. He said he represents the middle -of- the -road people, the undecided voters. He said since 1906, there has been a federal law requiring full disclosure of the toxicity effects of drugs and food items sold to the public and the burden of proof of safety is placed on the supplier industry. He cautioned the Council that fluoridation is not safe for the whole body, although it may be beneficial to the tooth cavity. He presented excerpts from three court trials and noted the outcome was that industry was unable to produce evidence to show that fluoridation is safe for the whole body. He then referred to his printed materials supplied to the Council which revealed that the court's findings -of -fact indicated that fluoridation is toxic to the human whole body. He noted the courts have estab- lished that there is medical toxicity. He then referred to his cancer death rate chart which showed the cancer death rate increased following fluoridation. He noted that while cancer is perhaps not directly caused by fluoride, fluoride does increase the death rate, as detailed in his research in Marin County, California. He noted the people gave permission for the use of fluoridation in 1970 with the understanding that it is safe to the whole body. He noted the cancer death rate information only appeared in 1975 and has been established in 1983 as a valid study. He strongly recommended advising all city water users on the back of the city water bill, about the possible toxicity of fluoridation to the whole body. He requested some feedback from the Council or from Dr. Davis, the oral surgeon on the City Council. Mayor Bill Nash Mayor Nash noted an election was held in 1970 in Huntsville on the fluoridation question and it was voted in. He advised the City's Charter provides for referendum elections by petition from the voters. He noted it is the City Attorney's opinion, that the City cannot call a referendum election because this would constitute the use of public funds for an unauthorized referendum. He advised, therefore, that the use of a petition would be the proper process. Mr. Nash noted he will forward whatever new information Mr. Westover has on this subject to the State Health Department and request their advice on this matter. He said this Department does establish the parameters under which the City operates. Mr. Nash said he does not feel the City has any scien- tific data to -date to support Mr. Westover's concerns, but merely has court cases and opinions. The City Attorney, Scott Bounds, advised the Council that he would keep them informed as to the outcome of a related case pending in Houston. Dr. Stephen E. Davis Dr. Stephen E. Davis, Councilmember and Oral Surgeon, presented excerpts from Preventive Medicine and Public Health (10th Edition) by Maxcy and Rosenau (1973) and Modern Nutrition in Hearth and Disease (6th Edition) by Goodhart, M.D., D.M.S. and Shils, M.D., Sc.D. (1980). He also advised of a conversation he has had with Dr. William Bock from the Center for Disease Control in Atlanta, Georgia and a statement issued from the U. S. Surgeon General's office He reported that the literature indicates there is no scientific evidence to disprove the benefits of fluoride for the human body or to indicate that it can cause harm to any person or age group. He noted Dr. Bock is 100 %+ in favor of fluoridating water supplies. He noted Dr. Koop has made the statement that water fluoridation is the single most important commitment that a community can have for dental health. (Dr. C. Everett Koop, Surgeon General, U.S.A. -- February, 1983). Dr. Davis provided this information to the City for their consideration. He summarized by stating that he's unabletofind anything scientific in nature that suggests that fluoride is toxic in any way. ENTEX - -COST OF SERVICE INCREASE Mr. Chester Powell of Entex to discuss the Entex Cost of Service increase. Mr. Powell noted the increase amounts to 9 tenths of 1% or a .43t increase per month for a customer using an average of 7000 cubic feet. He noted as of April 1, 1983, the following residential and commercial rates will be in effect: 214 Page 274 BOOK "N" Council Minutes of February 22, 1983 Residential Service (Net Monthly Rate) First Next Net Over 400 cf or less 2,600 cf 3,000 cf 6,000 cf $6.70 (base) .1340/100 cf .0933/100 cf .0676/100 cf Commercial Service (Net Monthly Rate) First Next Next Over 400 cf or less 3,600 cf 4,000 cf 8,000 cf $7.20 (base) .1515/100 cf .0923/100 cf .0676/100 cf Purchased Gas Adjustment: $.49302/100 cf of Purchased Gas Adjustment: $.49302/cf of gas consumed. gas consumed. He asked for the Council's consideration of this increase to the base amount. He noted the rates have not changed for the City of Huntsville since 1970. Mayor Nash noted he understands the procedure regarding considera- tion of this request allows the City 35 days to decide whether to vote against the increase, therefore, no action Is required this evening. He noted too that if the City decides not to oppose the increase, then it will auto - matically go into effect on April 1. The City Attorney noted if the City wishes to deny the increase, a series of public hearings must be scheduled. Mayor Nash thanked Entex for the presentation of such a "small" increase. PRESENTATION OF ANNUAL FINANCIAL REPORT ANO MANAGEMENT LETTER Mr. John Reynolds, Breidenthal and Reynolds, Auditors Mr. Reynolds noted the Council has received for review a copy of the financial report and the management letter. He noted he has reviewed them with the Council's Audit Committee. Mr. Reynolds noted he found the City's records more than acceptable and the procedures and internal control more detailed than anticipated by his firm. He noted the departments are well supervised and the controls for managing the funds for revenues and disbursements needed only minor adjustments in a few areas. He said the accounting system is very adequate and is improving since the City has the inhouse system. He noted increasing the computer system's capacity will generate more reports and this will facilitate additional improvement in the accounting records and information the Council will be able to derive from the system on a current nature rather than "after the fact." He noted no major problems were incurred either in the accounting records or with the personnel and noted his firm had help at every corner. He noted he would give the City an "A." Councilmember Corley noted he is a member of the Audit Committee along with Councilmembers Brown and Corley and advised this committee went over the report and letter in detail. He then presented the Audit Committee's recommendation to accept the audit report as presented by Breidenthal and Reynolds and made this a motion. Councilmember Brown seconded the motion and all were in favor. The motion therefore passed unanimously. PROPOSED ISSUANCE OF REVENUE BONDS -- ORDINANCE NO. 83 -9 Mr. Rennie Baker of Cowen & Company, Bond Consultant, to Review Bond Program Elements for Issuance of Revenue Bonds to Build an Elevated Water Storage Facility Mr. Nash noted the City has been under a state mandate to acquire an additional elevated water storage facility. He noted the City is approximately 1 million gallons deficient in elevated storage. He noted it would be for emergency use and as a source of water should there be a power outage. He noted the amount of elevated water storage needed is computed based on the number of users of water. He noted a new elevated water storage facility will make the City current with the requirement and would provide additional growth potential. He noted water rates were increased last year enough to provide the proper revenue for the bonds and to provide the reserve needed to provide income of one and one -half to one with regard to the debt service. Mr. Baker reviewed the City's present water and sewer debt. debt payable from the water and sewer system revenues made up of may incur additional bonded debt as long as the income available 1 1/2 times the annual requirement. He said the city also has a certificates of obligation issued for water and sewer purposes. not figure into the computations. He noted the City has one million dollars in four issues, all of which provide that the city to repay the debt, old and new, is at least few junior lein bonds outstanding and some He noted these two items must be repaid but do The Council was advised revenues available to service debt are approximately $1,400,000. He said the present debt requires approximately $200,000 for the next few years - -the City may comfortably issue and repay an additional bonded debt. He said we have indicated the current need for $2,400,000 to make the capital improve- ments. He suggested issuing bonds to mature over a 20 year period with a schedule that can provide for a level debt - -both principal and interest being approximately the same each year. He noted he is assuming an interest rate of 10 %. He noted the City would be paying approximately $285,000 per year to repay the $2,400,000. He noted if we add this to the $200,000 now obligated for, roughly $500,000, you have the one and one -half times required to pay it back. He suggested stretching out the repayment because there may be need in the future for additional capital improvements so some room should be left in debt service to borrow additional money in the next two, four, six, eight, ten years. He noted another reason for spreading it out is that the fluctuations in the costs of services, water treatment, sewer plant operations, summer rainfall, etc., mean that your history in that income has been fairly fluctuating from year to year. Another reason for spreading it out, he said, is that, in fact, the excess money over and above what is needed to repay the debt can, itself, be used for capital improvements when needed. Mr. Baker suggested the City reserve the right to call the bonds and pay them off after ten years have passed. He noted this would cover the possibility of lower interest rates in the future and the possibility that ample monies are available with no need for expenditures. He noted the City's bond rating is B -A -A -1 by Moody's rating service. He said if the City purchases insurance that the principal and interest would be repaid, that could generate a triple A rating by Standard & Poors (another service). He said it may be that the insurance premium would be less expensive than the additional interest costs if the City didn't get the triple A rating. He said this should be left open as a possibility. He noted the premium cost is somewhere between 1/2 of 1% and 1% of the total principal and interest to be repaid. He noted the cost of the rating by Moody's is approxi- mately $2,500 because it is simply an updating of a present rating. The approximate expenses of the bond issue, according to Mr. Baker, would total, including the preparation of an "offering circular," notice of sale and bid form by his firm, presentation of the information of the rating services by his firm and to the insurance group by his firm, legal work and opinions by the firm that handled the city's previous five issues, printing of the prospectus and bonds, $30,000. He noted an itemized bill would be " presented. He recommended that ' ,,, bonds be sold at competil i,;; ,•"iing. 1 ORDINANCE NO. 83 -9 ORDINANCE DIRECTING THE GIVING OF NOTICE OF INTENTION TO ISSUE CITY OF HUNTSVILLE, TEXAS, WATERWORKS AND SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 1983. Mayor Nash advised the Council the staff recommends April 19, 1983 as the date for the issuance of the bonds. He noted the amount of the Waterworks and Sanitary Sewer System Revenue Bonds would not exceed $2,400,000 and would not exceed a period of 40 years; noting Mr. Baker's recommendation of 20 years will be more probable. Mr. Baker noted the "call" privilege on these bonds would cost the City money, but that the City should go ahead and "bite the bullet" on it noting if the City can refund the bonds later at 8 %, we will wish we had called them early. He noted the callable feature may cost $25,000 and a higher rate of interest - -a ballpark figure. Councilmember Brown made the motion to adopt Ordinance No. 83 -9 and Councilmember Corley seconded the motion. All were in favor and the motion passed unanimously. LANDSCAPE REQUIREMENTS FOR ADDITIONS TO EXISTING BUILDINGS Ordinance No. 83 -10 Mayor Nash presented this ordinance, the caption of which is as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 6, BUILDINGS AND BUILDING REGULATIONS, OF THE CODE OF ORDINANCES OF THE CITY OF HUNTSVILLE TO PROVIDE LAND- SCAPING REQUIREMENTS FOR ADDITIONS TO EXISTING STRUCTURES AND BUILDING SITES; PROVIDING A PENALTY OF UP TO $200; PROVIDING SAVINGS ANJFREPEALING CLAUSES; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Mr. Nash suggested one change to the ordinance as presented, and that is to change the word "floor" to "building" in this sentence: The building site shall be landscaped in accordance with subsections (a) and (b) above; provided however, such landscaping need not exceed the percentage increase in gross floor (buildin ) area on said site. He noted the Council had decided on this change last week, but it was not incorporate into the new printing. Also, he noted in the formula is rather vague and requested the following addition to the formula description: Gross Building Area New Gross Building Area New and Existing - Landscape required* *add: equal to the ratio of landscape required to that required if the building were all new. Councilmember Corley made the motion to approve Ordinance No. 83 -10 as amended by Mr. Nash and Councilmember Brown seconded the motion. All were in favor and the motion passed unanimously. REDUCING THE MAXIMUM SIZE OF OFF- PREMISE SIGNS Consider an Ordinance to Amend Chapter 14, Signs, of the Code of Ordinances, Reducing the Maximum Size of Off - Premise Signs. Mayor Nash noted this ordinance proposes to reduce the sign face of all off - premise signs to 300 square feet or less. It was noted this would not affect already existing signs. Councilmember Brown noted this has not been discussed by the Council. CounTTmember King asked that it be discussed first in a work session with an explanation as to what this change will be trying to accomplish. Councilmember Dowling made the motion to table this proposed ordinance and Councilmember King seconded the motion. All were in favor and the motion passed unanimously. Mayor Nash asked the City Attorney to bring back samples of existing signs that are more than 300 square feet. Councilmember Corley also asked how many we now have that exceed that limit. AMENDMENT TO THE WRECKER ORDINANCE Consider an Ordinance to Amend Chapter 4A, Automobile Wreckers, of the Code of Ordinance, Regulating the Wrecker Business Mr. Nash noted this ordinance proposes a wrecker registration and permit fee of $25.00 for all vehicles for the wrecker service without relationship to type or category. He noted it requests insurance requirements be increased to $25,000 and $50,000 for each wrecker for liability and $25,000 for property and $12,000 for storage. Mr. Nash recanends that the insurance requirements be even higher. He noted the Council may want to table this ordinance also so that more consideration can be given to the insurance requirements. It was noted by the City Attorney that a good many of the wrecker businesses already have this amount of coverage or more; however, there will be some that will be required to increase theirs in certain areas (storage or liability). Councilmember Dowling questioned the need for increasing the insurance beyond what is required by state law. City Attorney Scott Bounds noted having the higher amounts of insurance would benefit the city in the event it is named in a suit against a wrecker hauling a vehicle under a contractual arrangement with the city. Having adequate insur- ance coverage to begin with, the City Attorney said, would help avoid having the city named in the suit in the first place, and this would be the primary reason for increasing the insurance requirements. Councilmember Brown made the motion to table this ordinance for further discussion and Councilmember Dowling seconded the motion. All were in favor and the motion passed unanimously. CONSIDER THE MID -TERM BUDGET ADJUSTMENTS Mayor Nash asked the Council for their consideration of tabling this item until Councilmembers Monday an Hodges could participate in the considerations. Councilmember Brown made the motion to table this item and Councilmember King seconded the motion. All were in favor and the motion passed unanimously. CONSIDER FINANCIAL REPORTS Quarterly Financial Report Mayor Nash presented this report for the quarter ending December 31, 1982. Councilmember King made the motion to approve the quarterly financial report and Councilmember Corley seconded the motion. All were in favor and the motion passed unanimously. q Quarterly Budget Adjustments ii Mayor Nash presented the budget adjustments for the quarter ending December 31, 1982. Mr. Nash requested that the language be changed where it says increase in "contingency allocation" to read increase in "reserve for future allocation" to remain consistent with our nomenclature; and likewise where it says additional "carry rward," change this to additional "reserve for future allocation "; and in the place of "carry forward," use the term "additional reserve for future allocations." Councilmember Corley made the motion to approve the quar- terly budget adjustments and Councilmember King seconded the motion. All were in favor and the motion passed unanimously. Quarterly Tax Reports Mayor Nash then presented the quarterly tax reports for October, November and December of 1982. Council- member Corley made the motion to approve the quarterly tax reports as presented and Councilmember King seconded the motion. All were in favor and the motion passed unanimously. BIDDER'S REQUEST TO WITHDRAW Consider a Re.uest from Trico International, Inc. to Withdraw Their Bid on Additions to the Southside Sewage Treatment Plant Mayor Nash noted it is the recommendation of the city staff and its consulting engineers, Wisenbaker, Fix and Associates, to approve Trico's request to withdraw as a bidder on this project without penalty. It was noted the firm requested withdrawal based on several factors, including the loss of one of its key personnel. He noted the city is presently qualifying other bidders under an extension of the thirty day approval cycle and hopes to have a recommendation for Council's review by March 1. Councilmember King made the motion to approve the withdrawal by Trico International, Inc. and Councilmember Corley seconded the motion. All were in favor and the motion passed unanimously. CONSIDER ADDENDUM TO WILLIAM - STACKHOUSE CONTRACT FOR U.S.G.S. SERIES Consider a Contract Addendum with William - Stackhouse for U.S.G.S. Series in the Amount of $7,625. Mayor Nash presented a memorandum from Glenn Isbell, Director of Engineering Design regarding the aerial mapping contract. He noted Mr. Isbell recommends additions to the existing contract with William - Stackhouse to provide for the preparation of 1" =500' scale base maps and 1 ""1000 scale USGS maps of Walker County. He noted the first set of maps will allow a comprehensive set of maps of all utilities to be prepared so that the overall utility situation can be reviewed and labeled and the second series will allow property information of subdivisions and larger tracts to be plotted so that easements, right -of -ways and other property information will be available on areas outside the E.T.J. It was noted funds are available in the budget to cover these additions to the project. Councilmember Corley made the motion to approve the addendum to the contract and the expenditure of the additional $7,625 and Councilmember King seconded the motion. All were in favor and the motion passed unani- mously. CITY MANAGER'S REPORT TRA Treatment Plant Gene Pipes, City Manager, noted the City has been monitoring a problem with precipitant which had caused an ice machine operation problem in Huntsville last fall. He noted it has been determined to be a calcium - carbonate problem and is a matter of lime stabilization, the alum and various chemicals that are used to stabi- lize the water or put into the water for various purposes, and the stabilization, the pH factor was somewhat out of balance. He noted the City has been meeting with TRA to resolve this problem and both entities consultants have been asked to review this situation. He noted a resolution is expected in short order. City Auction Mr. Pipes advised the Council that an auction of city vehicles is scheduled for March 26, held in conjunc- tion with an auction held by Huntsville Young Farmers. He noted the Huntsville Young Farmers are having an auction as a fund raising event. He noted five pieces of equipment will be subject to auction: garbage truck chassis (old), 1974 Pontiac Lamans, a tractor and motor grader and the ditching machine. He noted the cost to the city to join with the Young Farmers is 1% of the selling price (consignment fee) and this will benefit the Young Farmers Association and will take a load off of the city staff in preparing for the auction. He recom- mended the city follow this procedure in divesting itself of this old equipment. The City Attorney noted there is no legality problems with this arrangement. Missouri- Pacific Railroad Company Mr. Pipes advised the Council Mo -Pac has responded to the City's request for relief from the deteriorating condition at some railroad crossings in Huntsville (Sycamore and Avenue J). He said some preliminary cost estimates have been received from Mo -Pac and a proposal to share these costs was also provided to the city. He noted the City Engineer and our Engineering Design Division will review the proposals regarding the different approach grade for the Sycamore location and drainage problems on the Avenue J site. He noted this item will be brought back to the Council in the near future. MAYOR'S REPORT TML Legislative Seminar -- Austin Mayor Nash noted the Council traveled to Austin on February 14, 1983 to visit with its Senator and Repre- sentative and with the Director of the Department of Transportation, Mr. Goode. He said the meeting was success- ful and the information received from the TML was considered valuable. He noted he felt it is important for our elected representatives to be seen in Austin and this also gives our representatives there a better appreciation of our interest in their activities on our behalf. Texas Independence Day b Sam Houston's Birthday Reception Reminded the Council of this celebration on March 2 at First Methodist Church beginning at 9:30 A.M. ADJOURNMENT