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MIN CC 01/31/1984MINUTES OF THE CITY COUNCIL MEETING OF JANUARY 31, 1984 BOOK "N" -- PAGE 371 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 31ST DAY OF JANUARY, 1984 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: Larry Corley, Mayor Pro Tem Murray A. Brown Larry Corley Stephen E. Davis Jerry L. Dowling Bill Hodges Percy Howard, Jr. Jane Monday Bob Tavenner MEMBER ABSENT: Bill Nash, Mayor The meeting was called to order by the Honorable Larry Corley, Mayor Pro tem. The invocation was presented by Mr. Earnest Grover, Jr., representing the First Baptist Church on 10th Street in Huntsville, Texas. CONSIDER THE MINUTES OF THE PREVIOUS MEETINGS Councilmember Monday made the motion to approve the minutes of January 17 and 21 and Councilmember Dowling seconded the motion. All were in favor and the motion passed unanimously. ATTENDING CITIZENS James Patton, Representing Walker County Historical Commission Mr. Patton appeared before the Council to request consideration of a tax exempt status for 1984 for the Ben H. Powell home, located on the corner of Avenue M and llth Street, which is scheduled to be leased by the County of Walker from the Powell estate and established as a museum. He noted the County will lease the structure for $1.00 per year for 50 years. He advised there is a separate management agreement with the County which desig- nates the Walker County Historical Commission as the management agent for the museum. After some questioning from the Council for clarification, Mayor Pro -tem Corley advised Mr. Patton that the Council will take this request under advisement and make a formal decision at a later date. PUBLIC HEARINGS Public Hearing on whether the City should approve a commercial project within an eligible designated area -- applicant: David L. Revelle Mr. Paul Williams of Development Solutions, Inc., Corporate Financial Advisors, from Marshall, Texas, apprised the Council of the procedures regarding approval of these commercial projects. Mr. Williams advised the Council that Mr. Revelle's project is located at Avenue M and 14th Street on .4 acres and is approximately a $670,000 issue and includes approximately 9,000 square foot in the commercial project. He noted all preliminary steps have been taken and it is now before the Council for approval. Mr. Gary Chandler, citizen, asked what happens if the person involved has to default on this project as to what happens to the debt. Mr. Williams noted Industrial Development Bond financing is no obligation on the bonds to the city, county, state or federal government. He said they are revenue bonds and they are paid back strictly from the revenues of the project. He said it is a private developer and he uses private funds and he has to secure his own financing from an insurance company or a bank just like a commercial loan. He noted there have been over 1100 issues in the state in the last three or four years, over $3.3 billion dollars, and there has not been a default on any of those. He noted the purchaser of the bonds, the bank, or whoever buys the bonds on that project, is the one taking the full risk. He noted depending upon the methods of financing, whoever buys the bonds has either a first lien or a pari passe lien, which is equivalent to a first lean. He noted if a bank buys the bonds on this particular project, they would look at it just like a commercial loan - -they would take a lien against the real estate and the assets, etc. Mr. Williams noted there were 122 issues during this past month in the State of Texas and most of those rates averaged about 75% of prime, which today is about 8.25 percent. There being_no further comments in this portion of the public hearing, Mayor pry tem Corley then moved on to the next public hearing, to -wit: Public Hea a scant: Pp • on whether the Cit should a• +rove a commercial •ro ec 1 am odges. ith an eligible des nated area -- Mr. Paul Williams told the Council this project is proposed to be located on .92 acres near the intersection of 1 -45 and 19th Street and is proposed to be up to $750,000 and up to 12,000 square feet project. There were no comments in this public hearing, so Mayor Pro -tem Corley closed the public hearing and moved on to the next one, to -wit: Public Hearing on whether the City should approve a commercial project within an eligible designated area- - applicant: Sam Houston Investors. Mr. Paul Williams advised this project is located at 3015 llth Street and contains a little over two acres. He said the project will be a little over 53,000 square feet and the commercial building is proposed to be about a 3 -1/2 million dollar bond issue. Councilmember Dowling asked the City Manager if the traffic impact in this area had been studied. Mr. Pipes noted the voters approved a proposition in the recent bond election which will create,a fund to set aside monies to match State Highway Department funds to widen' Highway 30 from the overpass on 1 -45 beyond this commercial site to a four or five lane configuration with a center turning lane similar to llth Street inside the I -45 area. He had no projection as to when those funds might come available through state funding, however this particular area has high priority on the city's listing. He noted Governor White may be strongly considering a special session for transportation and education matt?rt !his item could be funded within a limited period of time. He noted it is the Highway Department's responsibility to make projections on volume on Highway 30. Councilmember Dowling asked Mr. Williams if there was a requirement that approval from the City be obtained prior to the construction of the project. Mr. Williams noted the applicant must receive an inducement resolution from the local development authority. He noted these were received sometime between July and November on these particular projects. He noted once this inducement date is set and on public record, the applicant can go ahead at their awn risk and begin the interim financing and start the project. He noted if and when the bonds are finally issued, they can go back to the inducement date and recover expenses and weld those into the bond issue. Mr. Williams noted on these three particular applications, the applicants have three years from the inducement resolution to actually issue the bonds; but if they proceed with interim financing and their project is placed in operation, they have one year to issue the bonds. Mr. Williams exphasized the concept behind the industrial development bond financing I4 to create jobs and to try to expand or stabilize your tax base by encouraging this development. Mr. Williams said there is a require- ment that they create at least one job. Mayor i'ro -tem Corley then closed the public hearing after calling for further comments, pro or con. CONSIDER RESOLUTIONS Consider Resolution No. 84 -4 approving a commercial project within an eligible designated area -- applicant: David L. Revelle. Mayor Pro-tem Corley then presented this Resolution, the caption of which is as follows: RESOLUTION NO. 84 -4 A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF HUNTSVILLE, TEXAS, APPROVING A COMMERCIAL PROJECT IN AN ELIGIBLE BLIGHTED AREA UNDER THE DEVELOPMENT CORPORATION ACT OF 1979, AS AMENDED, AND THE RULES OR REGULATIONS ADOPTED BY THE TEXAS ECONO- MIC DEVELOPMENT COMMISSION; AND MAKING FINDINGS IN CONNECTION HEREWITH (DAVID L. REVELLE). Councilmember Monde made the motion to a.•rove Resolution No. 84-4 and Councilmember Howard seconded the motion. Question: ounce member evenner as ed if this project meets all of the criteria for industrial development and Mr. Williams said it did, at this point. Mr. Pipes responded that it also met all city require- ments and codes. Councilmember Dowling noted he voted against the designation of Huntsville as a blighted area last August, pursuant to this process, and he noted he still feels this is not the most desirable means of financing private endeavors. He noted his complaint is probably with the U. S. Congress and not the City. He noted he feels all the projects are worthy and the people involved are all fine people and that he would vote positively on each of these projects; however, he wanted it stated in the record that he basically does not like the process. Councilmember Davis noted he too has problems with this process and felt uncomfortable approving commercial projects through the City Council. He noted he felt the City should take an impartial look at commercial developments unless it is for the redevelopment of a slum area or a blighted area, etc. Councilmember Brown noted he also feels that if the Council votes for these resolutions, it could be construed as the City officially approving these certain commercial enterprises; and, if it votes against them, it goes on record as the City opposing these particular commercial enterprises. He noted he does not like being put in that position. He said he doesn't think that is what the vote means but it could be so construed. Councilmember Dowling noted since the designation has been made, he did not feel he was in a position to decide whether one project if more or less worthy than another because the criteria are "pretty loose, at best." He noted he would have been happier if last August the Council had selected certain areas, such as we do with the community development grant, to target certain areas, using the "South Bronx Approach." He noted he was not certain it is too late to go back and amend our designation of what is a blighted area and do that. He felt if the City has an interest in any of this, it is to encourage commercial construction in those areas whereby it would either provide jobs for people in that particular depressed area, or would aid in an urban renewal or urban blight clean -up situation. He said since we have declared the whole city to be that way, he did not feel he is in a position to decide which project is good, bad, or indifferent. Mr. Williams noted the Legislature changed the term "blighted" this last year so that it can be called "redevelopment area," and the Industrial Commission is drawing up the appropriate designations. Mr. Pipes, City Manager, noted due to the size of Huntsville, it would be difficult to designate areas that are target areas or otherwise. He noted there is some question as to what can be considered a depressed area or a blighted area, noting that the new City Hall sits on a site which was rather substantially blighted. He noted if the County had taken steps a number of years ago to do this very thing, the City Hall site might have been eligible for that type of designation. He noted in the review process on a project by project basis, the City does have a veto and the City's purpose in reviewing these projects 1s not to endorse or oppose, but to check for obvious abuse. He noted these projects will increase the city's tax base. Councilmember Tavenner noted the Industrial Board is the screening agent for each applicant. Mr. Williams noted no projects have, as yet, gone all the way through the process to be approved at this point, but that some projects were not approved on their first application. Mr. Williams noted federal legislation restricts the types of projects which qualify for industrial development bonds and that restaurants, automobile sales and service, recreation, entertainment, etc. type entities would not qualify. Vote on the motion: Councilmember Davis voted OPPOSED to this Resolution and Councilmembers Monday, Dowling,-Hodges, Howard, Tavenner, Brown and Mayor Pro Tem Corley voted FOR the motion. The motion therefore passed seven to one. Consider Resolution No. 84 -5 approving a commercial project within an eligible designated area -- applicant: William H. Hodges Mayor Pro Tem Corley presented this resolution, the caption of which is as follows: RESOLUTION NO. 84 -5 A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF HUNTSVILLE, TEXAS, APPROVING A COMMERCIAL PROJECT IN AN ELIGIBLE BLIGHTED'AREA UNDER THE DEVELOPMENT CORPORA- TION ACT OF 1979, AS AMENDED, AND THE RULES OR REGULATIONS ADOPTED BY THE TEXAS ECONOMIC DEVELOPMENT COMMISSION; AND MAKING FINDINGS IN CONNECTION THEREWITH (WILLIAM H. HODGES). BOOK "N" -- PAGE 373 -- CITY COUNCIL MINUTES OF JANUARY 31, 1984 Councilmember Brown made the motion to approve of Resolution No. 84 -5 and Councilmember Monday seconded the motion. Councilmember Hodges ABSTAINED from voting, Councilmember DAVIS voted OPPOSED to the motion, and Councilmembers Monday, Dowling, Howard, Tavenner, Brown and Mayor Pro -tem Corley voted FOR the motion. The motion therefore passed. Consider Resolution No. 84 -6 approving a commercial project within an eligible designated area -- applicant: Sam Houston Investors — Mayor Pro-tem Corley presented this resolution, the caption of which is as follows: RESOLUTION NO. 84 -6 A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF HUNTSVILLE, TEXAS, APPROVING A COMMERCIAL PROJECT IN AN ELIGIBLE BLIGHTED AREA UNDER THE DEVELOPMENT CORPORA- TION ACT OF 1979, AS AMENDED, AND THE RULES OR REGULATIONS ADOPTED BY THE TEXAS ECONOMIC DEVELOPMENT COMMISSION; AND MAKING FINDINGS IN CONNECTION THEREWITH (SAM HOUSTON INVESTORS). Councilmember Howard made the motion to approve Resolution No. 84 -6 and Councilmember Brown seconded the motion. Councilmembers Tavenner Davis, Monday and Hodges ABSTAINED from voting and Councilmembers Dowling, Howard, Brown and Mayor Pro -tem Corley voted FOR the motion. The motion therefore carried. CONSIDER BID Consider Bid 84 -9 for purchase of traffic counters for research as planned, to the low bidder, Transportation Control Systems, in the amount of $16,610.00. Gene Pipes, City Manager, presented the staff's recommendation to accept the lowest bid meeting specifica- tions for the traffic counters submitted by Transportation Control Systems in the amount of $16,610 to be paid from capital improvement program funds which has an allocation for this purpose of $30,000. He noted these eight traffic counters, one recharging unit, twelve data modules and computer interfacing will be utilized by the Street Division and Engineering Design to compute traffic patterns and loads for future street improvement programs in the capital improvement program. After some discussion, the bid was accepted. Councilmember Brown. made the motion to approve the bid As outlined above and Councilmember Monday seconded the motion. All were in favor and Jthe motion passed unanimous. Consider Bid 84 -7 for the purchase of a track loader for the Sanitation Division throuah the issuance of C.O.'s as planned to the low bidder meeting specifications, Hyco Equipment Co.. Inc.. in the amount of $150,990. The City Manager noted this is a budgeted acquisition and loader with rippers and detachable bucket and blade for use by the staff's recommendation that the city accept the lowest bid Inc. for $160,990. He noted funds were allocated through a C. Councilmember Hodges made the motion to approve of Bid No. All were in favor and the motion passed unanimously. Consider Ordinance No. 84 -5 authorizing the issuance of an equipment acquisition certificate of obligation The City Manager, Gene Pipes, then submitted this ordinance, the caption of which is as follows: ORDINANCE NO. 84 -5 AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF HUNTSVILLE, TEXAS EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION IN THE AMOUNT OF $150,990.00; AND CONTAINING OTHER PROVISIONS RELATED TO THE SUBJECT. it was planned to issue a C.O. for this track the Sanitation Landfill Division. He presented meeting specifications submitted by Hyco Equipment 0. not to exceed $160,000. 84_7 and Councilmember Monday seconded the motion. Councilmember Hodges made the motion to approve of Ordinance No. 84 -5 as outlined,above and Councilmember Monday seconded the motion. All were in favor and the motion Passed unanimously. Consider Ordinance No. 84 -6 authorizing claim and delivery of certificates of obligation for the payment of $16,946.16 for two pickups in the Sanitation Division. Mayor Pro -tem Corley introduced this ordinance, the caption of which is as follows: ORDINANCE NO. 84 -6 AN ORDINANCE APPROVING CLAIM AND DELIVERY OF CERTIFICATES OF OBLIGATION; AND CONTAINING OTHER PROVISIONS RELATED HERETO Mr. Corley then read the bids on the interest rates from the various banks, as follows: American Bank John Henry Neiderhofer Huntsville National Bank 8.25 percent 8.70 percent 9.75 percent He noted American Bank is the low bidder at 8.25 percent. He noted the payout on this $16,946.16 is over a four year period at $4,236.29 per year on the principal and the interest would be $1,397.00. declining per year for total payout on the $16,946.16 at $20,440.10. Councilmember Dowling expressed his concern that the City of Huntsville floats C. 0.'s for $16,946.16 worth of pickup trucks which ends up costing them an extra $3,000+ in interest. He noted he has never liked this. Mr. Pipes noted this is part of a series of C. 0.'s issued in the Sanitation Division in this one year as a necessity to replace equipment all at one time. He said cumulatively, the city is issuing a sum of approximately $200,000 in C. 0.'s for the Sanitation Division this year; however, if you look at this single C. 0. alone on its individual merit, it would seem questionable. Mr. Pipes said that if there were a $200,000 cash reserve to replace equipment in the Sanitation Division, it would cause rates to increase. Councilmember Monday made the motion to approve of Ordinance No. 84 -6 and Councilmember Howard seconded the - motion. All were in favor and the motion passed unanimously. 374 PAGE 374, BOOK "N" -- CITY COUNCIL MINUTES OF JANUARY 31, 1984 Consider a proposal to retain an electrical engineering consultant for review of the design and specifications on the Service Center expansion project. Mayor Pro -tem Corley introduced this item. Gene Pipes, City Manager, noted Mr. Glenn Isbell, Director of Engineering Design, has completed the plans and specifications and contract documents for the Service Center Expansion and for the Electrical Engineer Consultant. He now requests the Council's authorization to contract with Mr. Kenneth Needham for consultation and review, as an electrical engineer, of both plans and specifica- tions with funding to come out of the service center project. He noted Mr. Needham has worked with the City on the water tower project and the emergency power evaluations and has done an excellent job. He noted a sum of $3,000 would be required to enter this contract. Councilmember Brown made the motion to accept the proposal from Mr. Needham, P. E. of Maken Industries, Inc. from Lufkin and Councilmember Monday seconded the motion. All were in favor and the motion passed unani- mously. CITY MANAGER'S REPORT Electrical Power Requirements Gene Pipes, City Manager, presented information regarding electrical power requirement needs during times of power outages in the City, similar to the conditions which occurred during the recent Hurricane Alicia. Mr. Pipes presented the recommendations of Mr. Kenneth E. Needham, electrical engineer, who has just completed a study to determine the electrical load on the City Hall, Municipal Justice Building, Service Center, Well #18, and Palm Street Water Plant and the various auxiliary per requirements which !should be available at each. Mr. Pipes noted the recommendations are as follows: ( City Hall 45KW natural gas generator and transfer switch $21,500 ) ( and electrical equipment ) Municipal Justice 45KW natural gas generator, transfer switch, ) ( Center and electrical equipment $21,500 ) AUXILIARY ( Palm Street Water 180KW diesel generator with automatic transfer $54,600 ) POWER ___( ( Plant " ' switch ) Well #18 Two alternatives: NEEDS i a. 230KW generator for . one well (supply $65,600, or ) ( minimum water supply demand) ) ( b. Emergency Power to TRA pump station $262,000 (alt.) ) ( and treatment plant (not yet studied) ) Service Center Due to expansion incomplete, a complete study ) will have to be made after construction is ) ( finished. No recommendation available. ) Mr. Pipes noted if this general outline of this work meets with the Council's approval, the appropriations can be discussed at mid -term budget adjustments in about two weeks. He noted the Council can decide at that time the extent of their expenditures. He noted the Palm Street water plant generator could be funded out of the water tower bonds, He noted there is some change order monies and some contingency money in that project. He noted the generators for City Hall and Municipal Justice Center would have to come from carry forward funds and evaluated on their merits with all other projects pending at that time. After some discussion by the Council regarding various power needs, Councilmember Monday noted of particular importance here is the power generator for the Palm Street Water Plant as this naturally needs to go to the top of the list. She requested a water flow analysis so as to determine where our most severe problems are in the time of a loss of power. Councilmember Monday noted in a case of emergency, it may make more sense to desig- nate a central headquarters where power generators are available, rather than try to keep all facilities going, regarding the costs for both City Hall and the Municipal Justice Center. She asked that these alternatives be studied and reported back to the Council. She felt these plans should compliment the new emergency management plan. The Council noted considerations should be given to how long our elevated water storage would last us with the completion of the new tower, in times of a power outage, and the need for power generation to pump water into the system at the intake structure. The Council asked the staff to study these proposals with a study to be conducted by TRA regarding their generation needs at the TRA pump station and treatment plant and report back to the Council. Councilmember Hodges asked how high a priority this auxiliary power supply is for the City, not wanting to minimize disaster. He noted he was concerned about the amount of money involved here for something that may or may not happen. Mr. Pipes noted the water would be the major consideration; noting that with the elevated tower, we have about one day's supply in reserve. He noted an auxiliary generator is merely an insurance policy. He noted the fire danger is foremost in concern. The Council asked the staff to finalize their recommendations based on the above discussions. Texas Municipal League -- Special Session of Le.islature Gene Pipes noted the TML has advised him of the possibility of the Governor (White) calling a special session to consider proposals to increase state funding on public schools and highways. He noted TML is provid- ing a survey to us for our miles of streets, the condition of our city- maintained streets and bridges, etc. and enlisting our support should our Governor call a special session, in getting the pothole bill as a high priority on the legislative session. He noted he would be responding to this request. Police Department Organizational Changes Gene Pipes advised the Council of some organizational changes to be made on Thursday of this week in the Police Department. He noted there are a number of problems with the present set -up with the patrol division and the support services division, mainly in the line of communication from one shift to another. He noted a team policing approach is about to be implemented with a lieutenant being a team leader for each area of town. He noted it should enhance the police - community relations because the individual police officers will have a ' patrol area that they are assigned to so that familiarity can be achieved with the area and between the resi- dents and the assigned officers of the area. Audit Committee -- Mr. Pipes noted the Audit Committee, composed of Councilmember Corley, Chairman, and Council - members Tavenner, Howard and Brown, will meet on Monday and the audit report will be presented to Council on Tuesday evening. BOOK "N" -- PAGE 375 -- CITY COUNCIL MEETING OF JANUARY 31, 1984 ti Budget Adjustments for Mid -Term Mr. Pipes noted the mid -term budget adjustments will be presented on January 14. Planning Commission Meet Mr. Pipes noted the Planning Commission will meet on January 9. Executive Session The City Manager asked the Council to remain after the meeting for the continuation of the executive session to discuss real estate matters. Mayor Pro -tem Corley noted the Council Meeting will not reconvene after the executive session. THE MAYOR'S REPORT - -MAYOR PRO TEM CORLEY Proclamations: Bird Awareness Week -- February 5 -11, 1984 and "1984" Awareness Month -- February, 1984. Mayor Pro -tem Corley noted these proclamations were issued prior to the Council Meeting this evening. Welcome: Mayor Pro -tem Corley noted Councilmember Monday will welcome, on behalf of the City, the Area IX Officers of Future Homemakers of America for the FHA Meeting at Sam Houston State University on March 10. COUNCIL ACTION Tentative Schedule for Work Sessions Councilmember Monday requested the City Manager to provide as soon as possible the tentative schedule of work sessions to cover some unfinished business items. She asked that the police team approach to policing be placed on this schedule for review with the Council regarding how this is working. Gibbs Elementary School Traffic Problems -- double and triple parking situations Councilmember Dowling asked that Chief Farrar dispatch someone to this general vicinity during peak traffic hours to observe the problems. Used Car Lots Councilmember Dowling asked for a review of the new used car lots to insure compliance with the codes of the City and the state laws. Old Colony Addition House Numbers Councilmember Howard advised the Council there are no house numbers on the homes in Old Colony Addition. He noted this is of conce n should an emergency arise. Mr. Pipes noted he would ask the Fire Chief to look into this situation and t4 work with personnel in the Community Development Department to clarify the numbers. Community Development Block Grant Councilmember Brown noted he would like a comprehensive review of the work todate on this three year project. He referred to the many financial problems being experienced by the City of Houston regarding the administration of their Block Grant Program and indicated a preference to have an update on our program. Mr. Pipes noted Mr. Dale Brown, Planner, would address this topic in his supplement to the State of the City Report, which will be presented next week. He noted this grant is audited religiously and the City of Huntsville is in very good shape in this regard. Emergency Corps Property Councilmember Brown noted he now understands that this property has been leased to a private individual. He asked the City staff to follow up on this information in light of the fact that the city was supposed to get this property for our use. Mr. Pipes noted Mr. Carl Voskamp, Director of EMS, will check on this. ADJOURNMENT TO EXECUTIVE SESSION EXECUTIVE SESSION Executive Session continued to discuss real estate matter. ully submitted 'APAPP1100(f ut DeShaw, ity Secretary January 31, 1984