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MIN CC 09/05/2000CITY COUNCIL MEETING OF SEPTEMBER 5, 2000 BOOK S" 282 (� MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 5TH DAY OF SEPTEMBER 2000, IN THE j; CITY HALL, LOCATED AT 1212AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M. The Council met in a regular session with the following members present: COUNCILMEMBER: William B. Green, Mayor Marjorie Rex Officers: Mark Erb JoAnn Castile Bob Hart, City Manager Ralph A. Davis, Jr. Steed Smith Paul Isham, City Attorney Dave Luning Vance Howard Danna Welter, City Secretary Absent: David Martinez FINANCE COMMITTEE MEETING [4:00 P.M. - 4:47 P.M.] 1. Discuss depository bid; 2. Budget adjustments; 3. Fiscal and Budgetary Policies; and 4. Investment Policies and approve broker dealer list. CALL TO ORDER Mayor Green called the meeting to order. INVOCATION Invocation by Bob Hart, City Manager. PUBLIC HEARING Received comments on the proposed budget for the City for the fiscal year October 1, 2000 through September 30, 2001from: David Standlee, Don Mathews, Charles W. Smither, Jr., Ron Steffa, Dee McFarland, Brian Woodward, Richard Watkins, Bill Nash, John Strickland and Morris Waller. PUBLIC COMMENTS 1. Stan Foley, Entergy, to discuss implementation of Senate Bill 7 effective September 1, 2000. Mr. Foley stated that with the implementation of Senate Bill 7, utility companies are no longer permitted to engage in competitive businesses. Specifically, Entergy will no longer install and lease security lights to residents, norwill they perform energy audits. Entergy will continue to install and maintain municipal street lights. 2. Emzie Bridges. Mr. Bridges expressed his displeasure regarding the City's attempt to purchase his property, but stated that he would consider an offer for his property. CONSENT AGENDA 1. Approve selection of American Bank as the City's Depository Bank for the two year period beginning October 1, 2000. 2. Approve bid for computer network installation for the Huntsville Public Library to X -Net Systems, Inc. in the amount of $51,164.00. 3. Consider Ordinance 2000 -09 -05.1 declaring the policy, support and commitment of the City to include participation by Minority Business Enterprises (MBE's) and Woman -Owned Business Enterprises ( WBE's) in all HOME contracts to the maximum extent possible. 4. Consider Resolution 2000 -09 -05.1 authorizing acceptance of a Tobacco Compliance Grant for the Huntsville Police Department in the amount of $3,000. 5. Consider Ordinance 2000 -09 -05.2 correcting Ordinance 2000 -15 adopted on August 22, 2000, by renaming Commerce Plaza as Col. Etheredge Boulevard. , Councilmember Rex made a motion to aoorovethe consent agenda, and Councilmember Castile seconded the motion. All were in favor and the motion passed unanimous) STATUTORY AGENDA 1. Discuss proposed FY 2000 -2001 budget, consider a record vote on the proposed ad valorem tax rate for FY 2000 -2001 and call a public hearing on the tax rate for September 19, 2000, as presented by Patricia Allen. CITY COUNCIL MEETING OF SEPTEMBER 5, 2000 BOOK "S" 283 Councilmember Luning made a motion to adopt a tax rate of $0.4325 per $100 valuation and set a public hearing for September 19 2000 at 5:15 p.m. for comments on the tax rate and Councilmember Howard seconded the motion. The motion passed unanimously. 2. Consider participation in street and storm drainage improvements on Vickie Drive, to be funded from available street funds, as presented by Boyd Wilder, Director of Public Works. Elkwood Development originally proposed a development with a private street which contained duplex lots with two (2) commercial lots fronting on Elks Drive. The construction of a private street would effectively block the extension of Vicki Drive as a through street connecting Powell Road and Elks Drive. City staff has encouraged Mr. Davis to revise his development plans to allow for the extension of Vickie Drive to Elks Drive as a public street, to add a north -south street which will allow access to adjoining property and to develop all of the property as duplex or multi - family lots. Mr. Davis is agreeable to revise his development plans provided the City participates in the construction of Vickie Drive, the north -south street and the associated drainage. Cost estimates prepared by Gerald Harris, P.E. indicate that the above will cost $194,304, which includes a 10% contingency. One -half of this cost would place the City participation at $97,152, however, in order to provide a clear demarcation, staff proposes that the City pay for the curb & gutter on Vickie Drive and the north -south street as well as the asphalt on Vickie Drive, the north -south street and Vickie Circle at an estimated cost of $96,821, of which $30,598 will be in -house labor and equipment. Councilmember Rex made a motion to approve City participation in the extension of Vickie Drive at a cost not to exceed $96,821 dollars in order to improve traffic circulation in the area between Powell Road and Montgomery Road, and Councilmember Castilla seconded the motion. The motion passed unanimously. ' 3. Consider approval of an Option and Lease Agreement with AT &T Wireless PCS, LLC for the construction of a cellular tower/pole on City -owned property on 10 Street, and authorize the City Manager to execute the agreement, as presented by Boyd Wilder. City proposes to create a lot from existing City property to lease to AT &T for the location of a cellular tower. AT &T's original site was located approximately two (2) blocks from the downtown area which would visually contrast with proposed improvements related to the `Main Street" and other aesthetic improvements in the downtown area. City staff began negotiations with AT &T to try to relocate the 160'tower to an alternate site and have reached an agreement on a site located in the 500 block of 14th Street. The agreement will require the City Manager to enter into a lease agreement with AT &T and the city staff to prepare a subdivision plat defining the lot. Councilmember Rex made a motion to approve an Option and Lease Agreement with AT &T Wireless PCS LLC for the construction of a cellular tower/pole on City -owned property on 14'h Street and authorize the City Manager to execute the agreement and Councilmember Howard seconded the motion. The motion passed unanimously. 4. Consider approval of Ordinance 2000 -09 -05.2 changing the name of West Hills Drive (north of S.H. 30 West and south from Col. Elheredge Blvd. to the west feeder road of I.H. 45 at the Goree Overpass) to Veterans Memorial Parkway, as presented by Boyd Wilder. There is an existing street platted as West Hills Drive that is located on the north side of S. H. 30 West and on the east side of the new Post Office. This is a dedicated street as per the plat of West Hill Park filed of record on October 8, 1998. The width is 70 feet and the length is approximately 525.0 feet. This street was considered an extension of the West Hills Drive that was recently changed to Veterans Memorial Drive. The other portion of road to be considered as Veterans Memorial Parkway is the proposed west arterial road that runs from Col. Etheredge Blvd. to the west feeder road of I. H. 45 at the Goree Overpass. Councilmember Smith made a motion to approve Ordinance 2000-09-05.2 changing the name of West Hills Drive (1) ' north of S H 30 West and (2) south from Col Elheredge Blvd to the west feeder road of I.H. 45 at the Goree Overpass to Veterans Memorial Parkway, and Councilmember Rex seconded the motion. The motion passed unanimously. PRESENTATIONS 1. Water /Sewer Rate Study, as presented by Dave Yanke, Navigant Consultants. Mr. Yanke outlined the recommendations as follows: ii CITY COUNCIL MEETING OF SEPTEMBER 5, 2000 BOOK -S- 284 A_ 1. RATE DESIGN NCI recommends that the City implement the water and wastewater rates shown on Schedules 6 and 7. There are several items that need to be emphasized with regard to this rate design recommendation: • This rate design would eliminate the assessing of each apartment unit with a minimum bill for water and wastewater service. Instead, each apartment complex would receive a minimum bill for water and wastewater based on the number j and size of master meters located at the apartment complex. For instance, if an apartment complex has one master meter to serve 20 units, it would be assessed a minimum bill for water, based on the size of that one meter. The I' wastewater minimum bill would be the same for all customers (residential, commercial, etc.), $12.00 per month in FY 2000 -01. • The minimum bill for water meters will be based on Schedule 6. The larger the meter size, the greater the minimum bill. For instance, in FY 2000 -01 a minimum bill for water consumption on a 3/4 inch meter is $12.00 per month, while a 2 -inch meter is $34.80 per month. As mentioned earlier in this section of the report, the higher minimum bill is reflective of the larger sized meter's ability to place a greater demand upon the City's water system_ • The minimum bill for 3/4 inch meters (primarily residential customers) would be increased from $10.65 to $12.00 for the first three years of this five year forecast and increased to $13.00 in years four and five. It is important to note that a $12.00 to $13.00 minimum bill, including 3.000 gallons of water usage is considered reasonable based on a comparison with other cities in Texas. The minimum bills for wastewater would be $12.00 during the first three years, and $13.00 in years four and five. This minimum bill would continue to include 3,000 gallons of wastewater flow, based on the users actual water consumption. Residential customers would continue to be "capped" on their wastewater bills at 10,000 gallons. In other words, the residential customers would not be billed for more than 10,000 gallons of wastewater, even if their water consumption were 20,000 gallons for a particular month. State agencies (SHSU and TDCJ) will begin to pay a minimum bill for water and wastewater connections based on the number and size of water meters and wastewater connections. Schedule 8 provides a comparison of what the average bill for a residential customer would be during the next five years. For the "typical" residential customer that uses 7,877 gallons of water per month, their monthly water and wastewater bill will increase from $43.49 to $51.36 in FY 2000 -01. This represents an approximate increase of 18 %. In FY 2004 -05 that same amount of consumption would cost $64.13, or approximately a 48% increase from the City's current rates. While this is a significant increase, it is important to realize that water and wastewater rates have not been increased in over 10 years, Annualizing these increases over a 15 -year period (1990 -2005) results in an increase of less than 3% per year. 2. TIMING OF RATE INCREASES The City will need to review Schedules 6 and 7 to determine when the water and wastewater rate increases need to be implemented during the next five years. A key issue that will need to be incorporated into this decision making process is -.'. ensuring that the City has adequate debt service coverage for the 12 months preceding the issuance of the two bond issues in FY 2001 -02 and FY 2003 -04. 3. FUTURE WATER PURCHASES The City is currently beginning to estimate its future water needs for the next 20 to 50 years. We would strongly encourage the City to purchase sufficient water rights from the Trinity River Authority so that it has adequate water to meet the City's needs in 2050 and beyond. Water is becoming a scarce commodity in Texas, and it is important that the City has an adequate supply. 4. DEVELOPMENT OF A WATER MASTER PLAN The City has included in its budget funds to conduct a water master plan to assist in determining the City's long -term water needs. We would recommend that this study be conducted to make sure that the City's water needs are adequately met during the next 20 to 50 years. 5. "WASTEWATER ONLY" RATES The City has a number of "wastewater only" customers that do not purchase water from the City. A significant number'•.', of these customers purchase their water from Walker County Rural Water Supply Corporation. We would recommend that the City obtain these customers' water consumption from their water supplier during the winter months (November, CITY COUNCIL MEETING OF SEPTEMBER 5 2000 BOOK_ S 285 December, January and February) to determi ne their monthlywater consumption during those months in which outside water use is at its lowest. This average consumption should provide the City with an accurate indicator as to the amount of water being returned to the wastewater system by these customers. Based on the collective average of these customers' wastewater usage, the City may wish to begin billing all "wastewater only" customers based on these new "wastewater' billing units 6. WASTEWATER SURCHARGE NCI reviewed the City's wastewater surcharge policy and recommends that the City keep its industrial wastewater surcharge unchanged at $.46 per 1,000 gallons of wastewater. 7. ANNUAL UPDATE OF STUDY This study is a five -year forecast of the City's projected water and wastewater rates. The City is operating its utility in a very dynamic environment. We would recommend that the City update this report annually, using the model we have developed for the City. Updating the model each year will allow the City to factor in changes such as: • Changes in interest rates (impacting the new bond issues). • Annexations (which will increase customer growth). • New TRA bond issue for water treatment plant expansion (it is important to note that the debt issue to expand the TRA water treatment plant is not included in this analysis). MAYOR'S ACTIVITY REPORT 1. Consider approval of expenditure of funds in excess of $500 per council member to enable attendance to the Texas ' Municipal League Annual Conference to be held in Austin in November. Councilmember Castille made a motion to approve expenditure of funds in excess of $500 per Councilmember for attendance to the Texas Municipal League conference in November, and Councilmember Rex seconded the motion The motion passed unanimously. 2. Reminder— Entergy Team City Conference, September 6 -7, Woodlands Conference Center EXECUTIVE SESSION [8:03 P.M. - 8:35 P.M.] 1. Section 551.072 - to deliberate the purchase, exchange, lease or value of real property or interest in real property, to wit: 1. Right -of -way acquisition for the Southern section of the West Arterial; 2. Lot on Sam Houston Avenue; 3. Lot North of 17'^ and East of Sycamore; and 4. Lot on Inverness. RECONVENE 1. Councilmember Castille made a motion to authorize purchase of the Fisher tract located in Block 63 of the City of Huntsville at $5,500.00, and Councilmember Smith seconded the motion. The motion passed unanimously. 2. Councilmember Castille made a motion to accept gift of the 0.25 of an acre tract located on Inverness Street known as 9501 - 003 -0 -00300 from Ms Tautenhahn and Councilmember Smith seconded the motion. The motion passed unanimously. 3. Councilmember Luning made a motion to authorize purchase of the green belt area (4.526 acres) from the Smither interest at the price of $26,156.00 and prepare an appraisal for the proposed arterial right -of -way in exchange for the right -of -way donation of 9.247 acres and Councilmember Smith seconded the motion. The motion passed unanimously. 4. Councilmember Castille made motion to accept the residue of a 4.2 acre tract from Steve O'Bannon to be used as open space for the City of Huntsville and Councilmember Smith seconded the motion. The motion passed unanimously. CITY COUNCIL MEETING OF SEPTEMBER 5 2000 BOOK S' 286 5 Councilmember Luning made a motion to authorize City Engineer to make an offer to Byron Sandel of $26,050.00 for ' j the 3.947 acres right -of -way and green belt acquisition with the reservation of a 50 foot strip across the green belt for ingress, egress and utilities access along the proposed extension of Oak Hills Drive and Councilmember Smith seconded �'. the motion. The motion passed unanimously. ADJOURNMENT [8:45 p.m.] P� Danna Welter, City Secretary , 1