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MIN CC 08/13/1991CITY COUNCIL MEETING OF AUGUST 13, 1991 BOOK "Q" 464 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 13TH DAY OF AUGUST, 1991 IN THE CITY HALL COUNCIL' CHAMBERS, LOCATED AT 1212 AVENUE 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: W. H. Hodges, Mayor William B. Green City officers present: 0. Eugene Barrett William H. Knotts, Jr. Gene Pipes, City Manager Gary Bell Charles Robinson Scott Bounds, City Attorney James L. Carter Its G. Gaines Ruth DeShaw, City Secretary Member absent: Ronald L. Lange CALL TO ORDER Mayor Hodges then called the formal session to order at 5:15 P.M Stephen's Episcopal Church presented the invocation. Reverend Bruce Whitmore of St.. CONSIDER THE MINUTES OF THE MEETING OF JULY 23 AND AUGUST 6, 1991 Councilmember Barrett made the motion to approve of the minutes of JULY 23 and Auqust 6 1991 as prepared and Councilmember Gaines seconded the motion. Discussion: Councitmember Knotts advised of several l' corrections to the July 30 1991 minutes on page 454 last paragraph second line should read "bid" your competition rather than beat your competition, on page 455 first paragraph Line 9 $100 should be 100 %: second paragraph second should read "Chamber" rather than "Council." and the fifth line should read "Chamber rather than "City "• and line 11 should read "5100 000" rather than $100. With these corrections_, all were in favor and the motion passed unanimously. CITIZEN INPUT /INQUIRY _SESSION Charles W. Smither, Jr., to comment on sewer line project in Pine Shadows /FM 1374 area Mr. Smither advised the sewer line project through his back yard is still not completed. He said he has not heard anything official on problems regarding the violation of the easement limits brought forth in his letter of August 3, 1991 to the City Manager. He said he knows this is a small problem in light of the city's budget situation, but it is meaningful to him and he thinks if the city looks, there might be a large number'. of people involved in that same project that may have similar types of questions or problems with the work that was done or is being done at this time. He said in looking over the sewer projects he thinks there is a'- question concerning the increase in bids from the first bidding that was not pursued to the second bidding which cost the taxpayers, as he sees it, about $8,800.00. He said he thinks the Council was remiss in not questioning'. this and finding out what had happened, if it was anything serious, and to highlight some kind of problem in the bidding process that should be looked into to insure it does not happen in the future. Mayor Hodges asked Mr. Pipes to respond. Mr. Pipes said they did receive Mr. Smither's letter last week while he was out of the office. He said Mr. Scott Bounds, City Attorney, has been working on it with the staff and a letter has been prepared which should go out in the morning in response to the concerns expressed. Councilmember Carter asked if he could hear some explanation now. Mr. Pipes advised this matter concerns the sewer lines across the back of Mr. Smither's property, which faces Possum Walk and a residence in the Pine Shadows Estates. He said in the early Spring, a difficult construction situation was experienced wherein there were heavy rains and lots of mud. He said still in all the rains stopped and the city took bids and awarded bids to two contractors. He noted the Council will remember the question raised by Councitmember Bell about everyone bidding each job. He said bids were awarded to the lowest bidder which is the city's accepted practice. Subsequently, each contractor was told to contact each property owner before making connections. He said it was the city's understanding that Mr. Bruce of Bruce Plumbing, made several attempts to contact Mr. Smither; he was unable to do so and proceeded to make the connections. He said there were still questions about the condition of clean -up of Mr. Smither- s property, finding his property corners, and other problems resulting from the effort. He noted, however, that Mr. Bounds's response to Mr. Smither's concerns is scheduled to be sent out Wednesday morning. CONSIDER CONTRACTS /AGREEMENTS Consider a proposal for soils testing to meet certification requirements for the next section of the landfill trench as submitted by Pickett - Jacobs Consultants inc in an amount not expected to exceed $17.000 Mr. Pipes, City Manager, presented information from Glenn E. Isbelt, Director of Engineering Design concerning the proposal for soils testing to meet certification requirements for the next section of the Landfill trench [soil and liner testing] . Councilmember Carter made the motion to approve of this contract and Councilmember Green seconded the motion All were in favor and the motion Passed unanimously. CITY COUNCIL MEETING OF AUGUST 13, 1991 BOOK "0" 465 Accountant, in the amount of $12.800 Councilmember Green, Chairman of the Council Finance Committee, presented the Committee's recommendation to extend the July 11, 1989 contract with Candyce Dixon for auditing services with the stipulation that the final audit report be submitted to the City Council no later than January 14, 1992 and that the total fee for this audit shalt not exceed $12,800. it was noted $100.00 per day will be deducted as Liquidated damages and /or penalties for any delay in delivery of the audit to the City past January 14, 1992 deadline. The extension agreement also provides that Ms. Dixon agrees to file with the City Secretary the annual financial statement (audit) within 120 days after the last day of the City's fiscal year (filing deadline January 28, 1992), he reported. Councilmember Green made the motion to approve of this extension agreement and Councilmember Robinson seconded the motion. There were several questions asked for clarification. Councilmember Green said it has been a long time since the city bid out the auditing contract and this particular contract is really a three year contract and this is the third year. He said some modifications have been made to the contract. He said the Committee reviewed several auditing firms out of Houston, Lufkin and The woodlands area. He said there were a number of personal problems, including the illness of Ms. Dixon, that delayed this audit. Upon a vote of the motion on the floor, all were in favor and the motion passed unanimously. the 25th of July. 1991 Mayor Hodges presented this information as captioned and advised the Council will need to approve that number. He reviewed the tax rate information concerning last year's tax rate, this year's effective tax rate and this year's rollback tax rate, as provided by Patricia Allen, Director of Finance. It was noted this year's adjusted tax base (after subtracting taxes on new property) is $368,960,550 and that this year's effective tax rate is $ .392681$100. Councilmember Gaines made the motion to approve of the certification of the 1991 appralsal roll: total value: b3C /. /p4,VSV, less exceptions of $16.616.4YU Tor a total taxable value of $371.135,540 and Councilmember Carter seconded the motion. All were in favor and the motion passed unanimously. Consider approval of certification of anticipated collection rate of 100 percent as provided by Patricia Allen Tax Assessor Collector Mr. Gene Pipes, City Manager, advised SB 1420 provides that the City's Tax Assessor /Collector certify that the anticipated collection rate for the fiscal year 1991.1992 is one hundred percent (1000. He advised Ms. Allen has certified to this and that the anticipated collection rate is the collector's best estimate for the total amount of taxes (current and delinquent), penalty, and interest that will be collected between July 1 of this year and July 1 of next year, divided by the total amount of taxes the collector projects the governing body will levy for the year 1991. Councilmember Robinson made the motion to approve of the certification of anticipated collection rate of 100 Percent and Councilmember Green seconded the motion ALL were in favor and the motion Passed unanimously. Consider approval of the 1991 property tax rate information and effective tax rate calculation for printing in Local newspaper. The effective tax rate calculation is $ .39268/$100 of assessed valuation Mr. Pipes discussed the effective tax rate and the calculations. He noted with the new numbers on assessed valuations, the effective rate is now $ .39268/$100. He said the maximum rate unless the city publishes notices and holds hearings is $ .40446/$100. He said the roll back rate would be $ .44438/$100. Councilmember Barrett noted here that he feels the city should stay with the same tax level that the city has now because of the increase in service fees the Council anticipates and also the fact that the sales tax numbers have increased. He said he feels the City has been overly conservative in making the estimate on the sales tax and feels the city needs to hold to the $.3844/$100. Mayor Hodges said the Council is not voting on a new tax rate tonight, but is merely approving the 1991 property tax rate information and effective tax rate calculation for printing in the local newspaper. Councilmember Barrett asked, Patricia Allen, Director of Finance, about the debt service for interest and sinking, which is listed at $408,563.00 and asked if those funds can be used for another purpose. Ms. Allen ' said they cannot. Councilmember Barrett asked why the city can't use some of that money, $200,000 at least, to reduce the city's debt service because the city does not earn as much interest on that money. He said the city is not earning as much money in savings on the bonds it is paying off as it would if it would - reduce the debt service. Ms. Allen said that is true. Mayor Hodges noted the spread is not that great as the debt on the general obligation just approved is a little over 6 percent. He asked Ms. Allen what the city is earning. She said a little over 6 percent. She said on some of the older debts, it is 7 or 7.5 percent, so there is probably an average of a percentage spread in what the city is earning vs. what overall the city is paying. She said CITY COUNCIL MEETING OF AUGUST 13, 1991 BOOK "0" 466 several years ago when the city was working with its financial adviser on this last bond issue, the city asked this very question: would it be feasible to reduce the amount of debt service fund and use a portion of this to a the debt. She said the advisor said that it was a pay appropriate to leave this amount of money in the fund as a ratio of the city's total debt and it had an effect on what the bond ratings were and therefore the !. interest rate that the city pays on its bonds. She said she will be happy to raise the question again, but that was the financial advisors advice. Councilmember Barrett noted, however, that if the city did use that $200,000, that would Lower the city's effective rate to .3536/$100, or it would lower the city's effective rate quite a bit. He felt some studies should be done to see if it is worth using or leaving this amount, noting he does not know how much the city needs to leave there to help the bond rate, however, if it would not harm '.. the city's rate, he would suggest using part of that money to lower the city's effective rate even more. Ms. Allen said she thinks what would actually happen, because the city's effective rate is based on the revenues that were generated in the prior year, is that it would not have an effect on the overall calculated rate is. She said what it would do, if the city uses $200,000 of this money to pay debt - -the city would transfer $200,000 Less to the debt fund and it would have $200,000 available in general fund - -but it would not actually affect the calculated rate because it is based on revenues generated in the prior year, not used from '.'. existing funds. She said it should not have an effect on this year or next year, but what it would do is affect the split between the operating funds and the debt service funds; the rate is based on total revenues the city is receiving, so it would not have an effect on the calculated rate itself, only on the dollar split between the two functions. CITY MANAGER'S REPORT '- Consider quarterly budget report Mr. Pipes presented the quarterly budget report for the month ended June 30, 1991. After a question for clarification, Councilmember Gaines made the motion to approve of this report as presented and Councilmember Robinson seconded the motion. ALI were in favor and the motion passed unanimously., Consider quarterly budget adiustments Mr. Pipes presented the budget adjustments through the period ended July 31, 1991. He pointed out the budget for park development for Bush - Miller park includes a $24,000 adjustment in this report for Ross Park Soccer /Baseball Field improvements, for a total in the park development fund then of $54,000 if this budget adjustment is approved. He said the Council had asked for information, especially as it affected the High School baseball field. Mr. Pipes presented a memorandum from Mr. Johnny Poteete, Director of Public Works, which clarifies the cost of the renovations that were requested for Kate Barr Ross Park. Mr. Poteete noted the HBBA made a request to the Parks Advisory Board for the following: 1. To construct a lighted soccer field across from the Lower softball field, but would also be used as four T -ball fields during ball season. The HBBA has requested that the city turd $15,000 of the cost of this project and the HBBA has proposed to fund $20,500. Total cost of this proposal is estimated to be $35,500. 2. To expand field #4 to better meet the needs of the older boys baseball programs, the cost to the city would be approximately $9,000 and the HBBA would be funding $19,000. The total cost ". of this proposal is estimated to be $28,000. During this past ball season the High School teams played 25 games on this field while the HBBA played 49 games. The HISD furnished maintenance people during the season to help maintain the field. In summary, Mr. Poteete advised, HBBA is requesting that the City fund $24.000 ($15,000 + $9,000) of - the project while the HBBA will provide $39,500. Mr. Pipes said this $24,000 is needed now to begin the work if it is to be finished for next spring's activities. He said the city can draw the carry forward down now in the general fund by this amount and proceed with the project. Councilmember Green made the motion to approve the budget adiustments for the month ending July, 1991 which includes the $24.000 for parks as discussed and Councilmember Barrett seconded the motion. Discussion: Councilmember Bell asked that this expenditure be discussed by the Council. ' Councilmember Green said we are really talking about two issues here: whether we decide to build /expand this field and 2) what the use of it will be. He the city is being asked to vote on the question of building the field but the city really needs to formalize an agreement for its use and this is a separate issue upon which the Council is not prepared to vote tonight because that could not be done without working out an arrangement with HISD. For the purpose of the issue before the Council tonight, he said he feels the city should approve the request to participate in expanding the field and direct the staff to formalize an interlocal agreement with CITY COUNCIL MEETING OF AUGUST 13, 1991 BOOK "O" 467 regard to the use of the field and other facilities. Councilmember Bell noted this is a tight budget year in which to spend $24,000 for this purpose. He noted this field has been used successfully for the past ten years as it exists. Mr. Pipes said this is the request that has been presented to the City for matching support. He reminded the CounciL that $15,000 of the total cost of this project is for the soccer field and $9,000 will be spent on this field out of the $24,000 being requested. There was a discussion concerning moving the fence back to catch the foul balls that are getting onto the highway and that the city should check on its liability, and consider installing a taller fence that is aesthetically pleasing rather than one that is an eyesore. Mayor Hodges said the fencing requirements are probably addressed in the 5A ballfield design rules. CounciLmember Bell again reminded the Council that this is $24,000 out of the general fund and he would prefer using that money to purchase police cars. He noted the Council deferred spending funds on the HISD's innovative playground and they are supplying $15,000 and asked the City for $5,000, but the Council declined to participate. He noted then the Baseball Association comes to ask the Council to participate with $24,000 if they match it with $39,000, and it seems the Council is going to approve this without much discussion. He noted also the improvement to the field is primarily being done so that the HISD can more comfortably play 5A ball and he didn't feel that was the city's responsibility but rather the responsibility of the School District. Mayor Hodges clarified that $9,000 is set to be spent on the baseball field and $15,000 at the soccer field. Councilmember Bell asked why the City will not spend $2,000 for the Innovative Playground, noting HISD came with matching funds and asked for help and yet the Council was very "tight fisted." Mayor Hodges said one of the differences is that this is city facility on city property and the area of the innovative playground is not city property. Mayor Hodges suggested the Council vote on the quarterly budget adjustments and then separately ask the City Manager to develop an interlocal agreement between HISD and the City on the use of the ballpark. Councilmember Bell asked if the approval will mean the city will include the $24,000 adjustment to the parks. Mayor Hodges said it will. He said the city did not know about this second parks grant last week when this was discussed. Councilmember Green made the motion to approve of the quarterly budget adjustments [with the $24,000 added to the parks budget as discussed above] and Councilmember Barrett seconded the motion. Councilmembers Bell and Knotts voted opposed, and the motion pass by a vote of six to two [note Councilmember Lange is absent]. COUNCIL ACTION Lights overlooking on -ramp coming onto the Loop 19 at Hwy 190 Council member Robinson noted he has been requested to check on getting lights repaired that overlook the on -ramp at this location. He said he brought this to the Counci L's attention a few months ago, but the Lights are still out. He asked if there is a major problem. Mr. Pipes, City Manager, said there is apparently a major problem. He said the city has written to Gulf States Utilities about the matter and also confirmed that it is not under the jurisdiction of the State Highway Department. Mr. Dale Brown, City Planner, said as he understands this, a crew will have to be sent up from Conroe as these lights are not maintained locally. He said he is not sure why GSU has not taken care of the matter. Mr. Pipes said Mr. Davidson of the city staff has written two letters as well as numerous phone calls. Mr. Pipes said it will be repaired sooner or Later. CITY COUNCIL MEETING SET FOR AUGUST 2 0. 1991 Mr. Pipes said the Council will meet next Tuesday evening, August 20, 1991 at 7:00 P.M. for a public hearing to consider whether or not to designate a certain area as a reinvestment zone eligible for commercial industrial tax abatement and to consider tax abatement and economic development. RECESS TO THE WORK SESSION Mr. Pipes then continued the review of the budget: utilities and engineering design funds and then a wrap up of all funds. There was also a discussion concerning establishing preliminary rates and fees for utility services. ADJOURNMENT Res �u tfty� /submit �G aw,f?ly uth Deshau, City August 13, 1991