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MIN CC 05/16/1989MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P° 354 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 16TH DAY OF MAY, 1989 IN THE CITY HALL COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:45 P.M. The Council met in a regular session with the following members present: Jane Monday, Mayor City officers present: 0. Eugene Barrett James L. Carter Gene Pipes, City Manager Ila G. Gaines William B. Green Scott Bounds, City Attorney William L. Hammock Percy Howard, Jr. Ruth DeShaw, City Secretary William H. Knotts, Jr. Councilmember Absent: Gary Bell CITIZEN INPUT Betty S. Dunlap of 2121 N 1/2 Street to discuss her concern for her trees Ms. Dunlap advised her property borders on 21 1/2, N 1/2 and 22nd Streets. She expressed her concern that the City may be planning to bulldoze all three sides of her property and killing her trees and devaluating her property. She asked the Council to consider alternative methods of laying the water lines. She thanked the Council for their consideration. FORMAL MEETING Mayor Monday then called the formal meeting to order. Councilmember Percy Howard, Jr., presented the invocation. Mayor Monday then welcomed those who were in attendance. She advised if they are here concerning the City's tree policy, Mr. Pipes will be giving a staff response concerning some of the questions that have been raised and will present that matter under the City Manager's Report later this evening. She said the city is eager to share the city council's policy with them. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Barrett made the motion to approve of the minutes as Prepared for the meeting of May 9. 1989 and Councilmember Howard seconded the motion. All were in favor and the motion Passed unanimously. ATTENDING CITIZENS Mr. Brian Elvin to address the Council regarding the Development Code Mr. Brian Elvin of 2828 Wolverton Street in Huntsville, advised he has been involved in concrete construction since the early 19701s. He said on May 7 he arrived at his customer's job site with a building permit in his hand to install a dumpster pad for the customer. He said his customer had given him a set of drawings, which to his knowledge did meet the development code, its standards and location. He said he proceeded to do an excavation to install this dumpster pad. He then called the city for an inspection. He said the inspectors arrived promptly and looked over the work and said there is no problem with the work, the location, or the specifications as they all meet the code and it is all done properly; however, they said there is a problem and that is that his customer needs to go to City Hall and talk to someone. Mr. Elvin said this left him with two problems: a loss of money, as the Brian Elvin Concrete Show costs about 565.00 an hour to put on and the time he lost coming off of this little job, which should only have taken a couple of hours, and coming back to it several days later cost him a lot of money; and the even greater problem was the hole in the street with the steel in it that he place there which had to be left open until the city visited with his customer, all of which placed him in a situation of liability if a motorist were to drive off into it. He said he did not appreciate being placed in a position of possible negligence. He said the reason for this delay did not seem justifiable to him, especially when all the city told his customer when he did visit with them is that it is out of their hands. He said he then poured the concrete pad after that time, but he is still upset that he had to be called off the job for several days. He said he is upset because he can follow the code and go out with a building permit and still be denied doing the 1 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 355 work. He said if the job were going to be stopped because of a problem, it should have been stopped at the permit phase and not allowed to go to the excavation stage. He said he feels this whole matter was not handled very well by the city. If this were the first time this ever happened to him, he said, he would not be here, but it is not the first time. He said he does the same work for the state and he can work for them at 30% less because they are more efficient and don't cost him so much to do work for them and he can still make a good profit. He said he can barely make any money working for the city because of indecision, indecisiveness and inefficiency in that they want him out there but they are not ready to do it. He said he's told he can't go ahead with this and he has to stop and they don't know what the elevation is or they don't know the location. He said when he goes to the state, he is given a contract and a set of plans and it is all decided and it is there and they know how they want it. He said his price is based on him doing his work efficiently, doing it one time, properly, collecting his money and getting out of there so he can make a living. He said if he can't work efficiently, then he is losing money or he has to charge the city more or someone has to charge more. He asked the city to look at what curb and gutter is costing now and then look at what the city is paying for curb and gutter per foot. He said he is installing curb and gutter for the state for 35 percent less and he is making money. He said the city could be paying a lot less for its work if it were efficient about how things were done. He said he is sorry to take up the Council's time with his personal problems, but he has lost money and he has been liable for an accident. He said it is more than just this; the city could be saving money in the budget. He said the leadership the Council has at City Hall did not handle this situation very well. He then thanked the Council for their time. Mayor Monday asked Mr. Gene Pipes, City Manager, to look into this problem and make a report back to the Council. Mr. Bill Carroll to address the Council regarding the methodology of appraising the value of trees as requested by Councilmember Carter Mr. Carroll said he received his degree in forestry and has spent the last 15 years involved in different phases of forestry. He said it used to be that the forests seemed to be a hazardous place for humans. Now, he said, it turns out that the city is a hazardous place for trees. He said in the urban environment, trees are subject to abuse from all of us, we skin their bark, we cut their limbs, we compact the soil, we cut and tear their roots, we poison their water and we pollute their air. He said in spite of all this, they manage to keep growing and doing positive things for us. He said to address the value of trees, the International Society of Horticulture has a formula for valuing shade trees in an urban environment that has been tried in the courts and has been justified. He said it essentially involves the size of the tree in square inches of horizontal stem area times $22.00 times a percent value for species, class, condition and location. He said as an example, a ten inch tree would have 78.5 square inches of diameter times $22.00 if it were in a prime location, in perfect condition, and in the most valuable species class and would be worth a little over $1,700; however, since "area" is a function of the "square," the value increases dramatically if the diameter increases. He said for a 25 inch diameter tree in the same class, location and condition, with 490.6 square inches of horizontal stem area, the worth would be $10,793. He said the trees by themselves are tremendously valuable. He said for trees in less optimum locations, or less desirable species, in less than perfect condition, different percentages in the formula are deducted from the original price; however, even when these deductions are made, one can still see that the City of Huntsville has a tremendous asset in trees that are in the right -of -way areas within the city limits. He advised other values that trees provide include air conditioning as trees are just like large evaporative coolers that are out there in the summer time, sometimes using well over 100 gallons of water a day; they prevent soil erosion and are wildlife shelters; air pollution control devices; and, suspended air particulates impact the leaves of trees and stay there until it rains, so they play a vital function in the role of air pollution control. He said the American Forestry Association recently did a study where they came up with the figure per year of the actual value of the benefits trees furnish. He said the air conditioning value was $73.00, the soil erosion and storm water control was $75.00; wildlife shelter, MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 356 $75.00; air pollution control, $75.00, which comes up to a total of $273.00 in annual benefits accrued from a large shade tree in the city. He said this total value compounded at 5% for 50 years comes out to a value of $57,151. In addition to those values, he said, the trees also contribute a significant amount to the value of residential property. He said a recent study done at Texas A&M University showed that in Austin, Texas, where they gathered their data, four neighborhoods that had houses ranging in value from $30,000 to $600,000 that 13 to 19 percent of the sales value of the property was contributed to the property by the trees on the property and 20% of the appraised value could be subject to the trees. He said trees do the same for us in Huntsville. A study done in Berkley, California by the American Meteorological Society, he reported, found that a 25 percent increase in tree cover would reduce the energy used in cooling a residence in the summer in Lake Charles, Louisiana or Phoenix , Arizona by 25 percent and also an additional 22 percent savings could be realized from lowering peak power consumption during the real hot times during the summer. He said what we find is that a 25 percent increase will help that much, so a 25 percent decrease can also raise the cost. He said every large tree that we lose in the city, if it is shading a house, has a tremendous effect on the utility bills that someone will have to pay. He said because in air pollution control we have what is called urban peak hours because of all the parking lots and very little vegetation and very little evaporative cooling in a city, the city tends to be much hotter than the regular open area. He said it has been found that through evaporative cooling, a forest is 9 degrees cooler than an open area and a forested urban area is 5 degrees cooler overall than an area with no tree canopy. Also, he noted, a concern is the amount of CO2 that is built up in the atmosphere. He said trees are a storehouse for carbons. Urban trees are ten times as effective in controlling the amount of CO2 build -up in our atmosphere, because in addition to storing carbon, they shade the houses and reduce the electricity rates and not as much fossil fuel has to be burned by the utility companies to cool our houses in the summer time. He said not only do they play an important role for the citizens on an individual basis, they do on a community, national and worldwide basis as well. Mr. Carroll said some ways to protect trees during construction is to erect temporary fencing around the trees to insure equipment operators don't compact the soil around the trees as 90 percent compaction can happen with one or two pass -overs by heavy equipment. He said the city can put the water lines in the street and it will have to determine, based on these figures and the value of the trees, whether the strip of asphalt and its repair is worth more than the trees. He said when the trees die two or three years Later, they don't just disappear and there is significant cost and risk in removing large trees that have died in an urban environment. Another option is boring. He said if the city gets two or three feet below the surface of the ground, it will miss 90 percent of the roots or more of the deciduous species of trees. He said the Austin city parks personnel use a rock saw to cut through the soil on the inside of the trenching area which prunes the roots underground before the trenching machine comes in; if a trenching machine comes in, it grabs and tears the roots out, it rips the root system further up into the tree and opens the tree up for more disease and rot and decay than would normally be the case. Also, he said, trees that were unavoidably damaged in the construction process, can be put on a nutrition program to do everything that can be done to increase the chances those trees will survive. While a renewable resource, Large trees in an urban environment are really an irreplaceable resource in our life time, he noted. He asked to go on record as saving "I think the City and the City Council and all of the community needs to do everything in their cower to protect the trees for the trees' benefit as well as our benefit because we seem to have co- evolved throughout the ages with trees and we are finding more and more every day the important role they play in maintaining a healthy environment for us." He then thanked the Council for allowing him to make this presentation to him. Mayor Monday thanked Mr. Carroll for his presentation. She noted the City Manager will be giving a city response in the City Manager's report. Mr. Carroll then handed out copies of his prepared comments. 1 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 357 CONSIDER BIDS Consider bids to purchase a used chassis to replace a fire tank truck as bucketed for Fire Department in the amount of $14.750 for a used diesel - powered cab and chassis as recommended by Chief Joe French and Harold Ramsey, Municipal Garage Superintendent Mr. Gene Pipes, City Manager, advised the city intended to purchase one used diesel powered cab and chassis for one tanker truck. He presented the recommendation of the Purchasing Division to accept the lowest of the two bids received, as presented by Gerald Kirkland for a 1973 diesel powered cab and chassis in the amount of $14,750. He advised while power steering was requested, the low bidder could only offer manual steering, which was then reviewed and finally accepted by the staff. Councilmember Knotts asked what the model year was on the other bid. Mr. Pipes said it was a 1982 with comparable mileage, etc. Councilmember Howard made the motion to approve of the low bid of Gerald Kirkland and Councilmember Barrett seconded the motion All were in favor and the motion passed unanimously. CONSIDER ORDINANCE Consider Ordinance No 89 -12 amending the Code of Ordinances to prohibit fishing from city streets, bridges or rights- of -wav The City Manager, Gene Pipes, presented this ordinance, the caption of which is as follows: ORDINANCE NO. 89 -12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, PROHIBITING FISHING FROM CITY STREETS; ESTABLISHING A FINE OF UP TO $200 PER DAY; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF Mr. Pipes, City Manager, advised there is a state law which prohibits fishing from bridges and other highway structures in the outlying areas of the state. He said the city does not have any such prohibition. He noted there are two locations in the city of which he is aware that will be governed by this ordinance, one of which is on Ryan's Ferry Road where the reservoir owned by Mr. Carl Matthews extends beyond the right -of -way and the bridge there is very narrow so that any fishing activity on the bridge does make it a hazardous situation for traffic and fishermen. He said the property owner has posted his lake as a "no fishing" area, but the lake can be reached from the street right -of -way, which makes it difficult from a civil enforcement matter as well as a police enforcement matter because the city has no such restriction. He said the same is true at Spring Lake on the dam end of the lake and the upper end where Winter Way crosses. He said there have been numerous cars parked in the road making it very difficult, especially in wet conditions, to pass and get across the road at the dam or spillway and similarly on the north end of the Lake at Winter Way. He said the lakes are both private lakes and accessing the lake that is totally on private property is through the public right -of -way that has been granted so that the streets can service the residents of that area. The ordinance tracks state law prohibiting accessing of those reservoirs for the purpose of fishing by using the street or street right-of -way or bridge structures. He then recommended it for approval. Councilmember Green made the motion to approve of Ordinance No. 89 -12 and Councilmember Knotts seconded the nation All were in favor and the nation passed unanimously. CONSIDER PROFESSIONAL SERVICES Consider proposals for professional services to conduct a review of the City's water, sewer and garbage rates as discussed to determine the appropriate user cost balance in the various customer classifications Mr. Gene Pipes, City Manager, advised that Willis, Graves 8 Associates, Inc. (WILLIS, GRAVES) bid $12,000 and Resource Management International, Inc. (RESOURCE) bid $18,000 and are both reputable firms in this field. He said they had some concern that WILLIS, GRAVES had not had particular experience with the sanitation rates which have been a long standing concern of the Council. He said RESOURCE had a very well qualified proposal, however the bid seemed to be higher but was based on an additional scope of work MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P° 358 estimated at 252 hours versus 120 for WILLIS, GRAVES. He said the staff has checked both of these consultants and the distinction that exists is that WILLIS, GRAVES was the firm that did the study that is the basis for the city's current rate structure. He said if the Council would like to have a totally new Look, then RESOURCE would be the appropriate choice. He said if there is no particular concern about the prior history, then of course WILLIS, GRAVES has done work for the city and is very familiar and would do a very competent job. He said the city has no particular preference. Mayor Monday asked if Mr. Pipes thinks the cost will be basically the same. Mr. Pipes felt when the scope of the work is reduced, the rates will be very, very similar and difficult to separate. Mr. Scott Bounds, City Attorney, felt the Council could negotiate a proposal within the guidelines that it prefers. Mr. Pipes said it is a matter of whether or not the Council wishes to use the same firm it has used before or go with a new one. Mayor Monday asked about he time frame. Mr. Pipes said the time frame is the same for both and that the study will be done in time for the budget. Councilmember Knotts said if it is agreeable with the staff, it might be a good idea to go with a different firm just to keep from using the same figures over and over again from the previous work. Mr. Pipes said he has no problem with this. Mayor Monday asked if Councilmember Knotts would like to make a motion to this effect. Councilmember Knotts then made the motion that the city use RESOURCE and the motion was seconded by Councilmember Green. Discussion: Councilmember Hammock clarified this motion to be contingent upon the cost to be comparable. City Attorney Bounds said the city can set a cap on the scope and cost of the work. Mr. Bounds said the city could ask RESOURCE to lower the scope of their work to a cost of lower than $18,000. Councilmember Green asked the difference between the 252 estimated hours on RESOURCE'S bid and the 120 hours estimated on WILLIS, GRAVES. Ms. Patricia Allen, Director of Finance, advised RESOURCE figured three days staff time dealing strictly with sanitation as they planned to visit the landfill and deal very specifically with sanitation in more depth than what WILLIS, GRAVES indicated they would do in their proposal. Ms. Allen advised WILLIS, GRAVES said they are more than willing to spend that amount of work if that is what the city desires and RESOURCE has indicated they are willing to spend less time. She said it is totally a matter of how much time the city wishes them to spend and how involved it wants the consultant to get into the overall analysis of the sanitation operations. Councilmember Green asked If we answer that by saying they can only spend one day on sanitation rates. Mr. Pipes said the City sets the scope of the work at a cost not to exceed $15,000. He said in the case of WILLIS, GRAVES, we would want them to beef up the sanitation study to the point that we have a thoroughness in the sanitation area sufficient to answer any questions that would be raised by a particular class of customer or anyone affected by any rate change. Councilmember Carter asked if this is defined in the contract as to exactly what they will be studying? He said it would seem the City would estimate how much time it will take from the scope of the job and the .scope would be defined by the city. Mr. Pipes said the city has defined the scope of the job and left it to their discretion to assess the time requirement for their firm to complete the task. He said the consultants are entirely independent from making that judgment. He said the staff talked with Mr. Graves at WILLIS, GRAVES and he said they had prior experience in a rate study in Wichita Falls and one in Marble Falls and he personally had experience with Browning 8 Ferris, Industries, prior to his going into the consulting business. He said Mr. Graves felt he could get this work done a whole lot faster than someone new coming in and having to familiarize themselves from the ground up. He said there is no doubt RESOURCES can do the work, and each consultant factors his strengths and weaknesses into any bid he gives and this is one Mr. Graves' felt he could do rather quickly and be satisfied that he had done a thorough job because of his prior experience. He said Wichita Falls is much Larger and Marble Falls much smaller, but they have similar problems. Councilmember Carter asked if the staff feels comfortable that WILLIS, GRAVES can do the job within the 120 hours they estimated. Mr. Pipes said they can do the work in that amount of time with the scope of the work they outlined. He said whether the council will be satisfied with the detail work is the question. Councilmember Carter asked what would be lacking in this WILLIS, GRAVES study that the city might get in the other study. Mr. Pipes said answers to questions such as special classes of customers, such as apartments and other multi- family users being charged on a single family residential basis rather than on commercial rates as are all other businesses 1 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 359 and what a shift in those costs would do, what the ripples on the pond would be to move the costs from one area to another as someone will have to pick it up. He said if we change our cost of operations significantly, we are going to change who pays the bill. Mayor Monday advised she did understand that the scope would be the same for both consultants and that one would adjust down or one would adjust up to respond to what we are asking for, which is a total evaluation of all categories. Mayor Monday asked Councilmember Knotts if he would amend his motion to include a cap not to exceed $15,000. Councitmember Knotts said he would amend his motion to include this cap. Councilmember Green said he made the second on the original motion, but asked if we are locking ourselves into using RESOURCE. He asked if the staff feels comfortable with them as he did not know enough about them. Mr. Pipes said the staff is comfortable with either one. Obviously, he said, these other four companies that bid are quite competent too, but their fees were significantly higher. Mr. Pipes said the two low bidders' fees are very comparable based on the projected hours and there is an issue as to what is sufficient time to spend on a particular subject. He said he feels $18,000 is too much and that $12,000 is too little. Mr. Pipes felt 180 hours would probably be adequate time to spend on this project, but WILLIS, GRAVES feels it has done the work before and they feel they know the territory, thus they bid less hours; RESOURCE, however, could perhaps get this work done more efficiently than they expect to as well because Huntsville is not that different from a lot of other cities. Mayor Monday asked if he is confident about the price and Mr. Pipes said he was totally comfortable with the price. Councilmember Barrett expressed his concern that perhaps this new company might be doing some things over that the other company has already done and this may be the reason they can save the money. He could not see why the city would not try to take a savings on someone who is already familiar with our area and our problem. Councilmember Carter agreed with Councilmember Barrett. Mr. Scott Bounds said the work done by WILLIS, GRAVES is some ten years old at this point. Councilmember Barrett asked the staff if they feel WILLIS, GRAVES can do it in the number of hours they have listed for the amount; noting maybe they would not need additional hours and he did not feel the city should spend the extra money if it does not need it. Mayor Monday asked Mr. Pipes if he feels a necessity to adjust the scope of the project the way it is listed here if it went to WILLIS, GRAVES up to the $15,000 cap. Mr. Pipes said he would not feel an absolute need, but feels based on the hourly rate they are very comparably priced. Mr. Pipes said WILLIS, GRAVES has a proposal on the table for 120 hours for $12,000 and he is comfortable with that. Councilmember Green withdrew his second to the original motion and Councilmember Knotts withdrew his original motion._ Councilmember Barrett then made a second motion to award the bid to Willis Graves & Associates Inc. for $12.000 maximum and Councilmember Carter seconded the motion. All were in favor and the motion passed unanimously. CONSIDER RESOLUTION Consider a final draft of the comprehensive plan as previously discussed --Dale Brown. City Planners and Resolution No. 89 -7 adopting same. Mr. Pipes presented this resolution adopting the Comprehensive Plan, the caption of which is as f2ollows: RESOLUTION NO. 89-7 A RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS ADOPTING A COMPREHENSIVE PLAN Mr. Pipes said this is the result of a year long work schedule to update the first comprehensive plan of 1981. He said the city had hired consultants in the decades previous to this, but never officially adopted a plan until 1981. This will be the city's second edition of that plan as a staff and council produced document, he advised. Mr. Pipes said it does represent a very accurate consensus of a number of people and uncountable hours diligently working for the cause of private citizens working through the Parks Board, the Open Space Action Committee, the Transportation Committee and many contributory groups such as the downtown group, businesses and individuals. He said there will always be changes to any plan and there will be appendices and other attachments to this one. Councilmember Knotts made the motion to approve of Resolution No 89 -7 adopting the Comprehensive Plan and Councilmember Gaines seconded the motion. Councilmember Carter commended Dale Brown for this plan and noted he does a good job for the city. He felt overall the MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 360 citizens will be pleased with what is contained in it. Mayor Monday said this plan will act as a blueprint for the city from the year 1990 to the year 2000 and it will take us into the next century on a very good standing. She said as we look back over the last plan and the accomplishments we have made, we can see the effects of long range planning. She felt within this document we also have the possibility of accomplishing more new things of which the citizens of Huntsville will be very proud. All were in favor and the motion passed unanimously. CITY MANAGER'S REPORT - -GENE PIPES Consider an agreement for Huntsville Theater Festival, as recommended by the Arts Commission Mr. Pipes presented this contract between the City and the Drama Department of Sam Houston State University for the Huntsville Theatre Festival wherein SHSU faculty members will produce or supervise the direction, design and management of one theatre production by children ages 9 to 16 for showing at the University Theatre Center; and one musical production for persons of all ages for showing at the University Theatre Center both of which are to be presented during the period June 1, 1989 and August 15, 1989 for a total sum from the city of $8,000 payable in May, 1989. Mayor Monday noted this is one of the finest productions in the City. Maureen McIntyre of the SHSU Drama Department advised they will be doing "Osma of Oz," one of the sequels for children; and Mr. Butler will be doing "Bye Bye Birdie," so as to involve lots of young people as well as adults. Councilmember Carter made the motion to approve of this contract and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. Gilpin House Possible Use Mr. Pipes advised he and Mayor Monday met with Dr. Barry Tacker, HISD Superintendent, last Monday, concerning the school district's plans to review the Gilpin House for demolition at an upcoming board meeting. He said the city had not had an opportunity to come to the Council with a specific proposal. He said the agreement at the time of this meeting was that the city would check with the staff to determine its possible use with the Arts Commission and then make a recommendation to the City Council. He said the Council can then take whatever action it feels is necessary and then it will be referred back. He said the letter from Dr. Tacker in the packet is to the Walker County Historical Commission advising the house will be scheduled for demolition in August pending some action by the Historical Commission or some other interested group. He assured the Council no decision has been made and every door has been left open at this point. He said from the staff's viewpoint at the present time, the city cannot justify any particular use for the house. He advised Mrs. Linda Pease, Arts Commission Coordinator, has not had an opportunity to meet with the Arts Commission or others with whom she has normal routine contact. He said he and the Mayor have not had a chance to discuss this with the Council at this time so as to come up with any recommendation on the use of the house. Councilmember Carter asked what the terms are for the use of this house. Mr. Pipes said the terms are nonspecific, but last fall HISD wanted to offer the use of the property as a park site with the attendant responsibility for maintaining the facilities. He said the city indicated at that time it saw no practical use at all for the buildings. He said if someone takes over the Gilpin house, HISD would consider Letting it remain on the property, because it is an expensive property to maintain from the viewpoint of vandalism and vandal proofing it for limited use would be an ongoing financial drain on HISD. He said the city would similarly be affected as it does not have a particular need at this time for a traditional office or storage space, therefore having another place to maintain is not something he could readily recommend to the Council. On the other hand, he said, the school district does not intend to give title to the property, but would only allow the city for some sort of a term lease or some sort of a cancellation notice lease to use the property for general open space and park property, therefore maintaining, mowing, etc. He said if anyone had a use for the building and would be willing to take on the cost of maintenance and upkeep of it, the school district would work out the terms. Mayor Monday said the letter to the Historical Commission basically says HISD is open to suggestions. She said the HISD proposed the land for a park, but not to be gifted to the city but only to be used in return for maintenance. Mr. Pipes said there would also be limited notice requirement so whenever the HISD has a need for the property, the city would vacate it. '1 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 361 Councilmember Barrett felt an effort should be made to save the house, and the city can probably find some use for it if it had title to it, but it cannot afford to put a lot of money into it if it is going to have to give it back and not have title to it. He said he would hate to see a brick house of this type torn down because while we may not have a use for it right at this moment, in the near future, the city certainty could find a use for it. Councilmember Carter noted it may be less expensive than building a new building. Councilmember Hammock felt that may be true, but it is not always the case. Mr. Pipes noted the utility costs for the house are quite expensive as the house is not well insulated, according to Dr. Tacker. City's Plans on Utility Proiect. 19th to 20th Street Area and Sam Houston Avenue west to Normal Park Mr. Pipes advised he is concerned there has been a lot of innuendo and perhaps statements made that may have been well intended, but were not based on fact. He hastened to say that this is not to say that anything Mr. Carroll said tonight is inaccurate and his information and presentation is very much appreciated and beneficial. He said he appreciates the time and labor devoted to the presentation. Mr. Pipes said he was advised by Mr. Brewer, Reporter of the Huntsville Item, that he had possession of an instrument that had been being circulated and wanted to know what his reaction was to it. He said a number of things it contained generally do not fairly represent what the city's general plans and policies are, especially the policy it has been following for the past two to three months regarding the plans for this particular project. He said the Design Engineering Department has tried to reflect the Council's and public's sensitivity in this area. Mr. Pipes wanted to answer questions as to what effect the nature of the city's work in this neighborhood will have on the property owners. He then posed and answered the following questions: What is a street right -of -watt Mr. Pipes said a street right-of -way, generally, is the pavement section, curb to curb, mostly curb and gutter and sidewalks, if there are any, addendum to that particular street; and approximately ten feet on either side of the curb, back of the curb into what everyone considers their front yard. He said the reason for this ten foot area is for the location of utilities, which includes water tines, sewer lines, electrical, gas, telecable and telephone lines. He said these cannot all be put in one ditch as a 400 volt electrical line over the top of a water line could tend to charge the house to which the lines are attached. There are many solid reasons why these various utilities must be spaced uniformly, he said. There are as many exceptions to the general rule of what is a street right -of -way in Huntsville as there is conformance. He said there is really no norm, but in established, platted neighborhoods, this is the norm. We have a street, ten feet on each side of the curb, for a total amount of 50 -70 feet right -of -way and generally then the property corners come down that and there is a stake somewhere in everyone's front yard, an iron rod or some other axle or hub or something that denotes the actual corner of the property, he said. Everyone mows the easements because they are considered part of the homeowner's yard, Pipes reported. Why does the city want to din behind the curb rather than the street in order to place a water tine? Mr. Pipes noted the first answer is "expense." He said it generally costs an additional $12 to $15 per linear foot to locate a line in the street rather than behind the curb and this is because of the street repair costs. He said water main breaks or service taps on lines in the street require digging up that expensive street resulting in patches and potholes and accelerated need for new service overlay. He said from April of 1988 to April of 1989, there were 165 water main breaks in the city, ranging from the two inch lines up to the big 12 inch lines. He said the cost associated with making repairs on those lines outside of the street was between $165 and $185 each for a total of $27,225 or up to 530,225 in costs for the repairs of those breaks that occurred behind the curb. He said the breaks that occurred in the street cost between $500.00 and $525.00 each to repair, for a 6' by 6' cut out that are made routinely throughout the year. He said the attendant cost there is between $82,500 and $86,500. He said we have roughly the difference from $30,000 and $85,000 costs for those same breaks occurring in the street rather than out of the street. He said and then we have a patch on the new street or an old street, but the patch is there until the next time there is an overlay. He said this is why the city likes to locate lines outside of the street, rather than in the street. He said sewer tines are not nearly as critical because they do not generally burst; although they sink, cave in and create voids, etc., but with our technology, we can televise those lines in- place, MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK °P" 362 find the problems, fix the plumbing sometimes in -place without ever scratching the surface. He said once those lines are fixed, they are generally in good condition for awhile and sewer line problems are not a very big problem, but water lines often are and it is best to have them out of the street right -of -way or out of the street surface itself if at all possible. What is the city's policy about trees? Mr. Pipes said the city has had an affirmative action plan on trees since 1980. He said the immediate predecessor of the comprehensive plan adopted tonight, was a plan, in place since 1980, for the preservation of trees which encouraged preservation and the planting of new stock. He said the city has incorporated a preservation statement on all building and development code information brochures. He said every place that the city has publicity or information provided to builders, developers and homeowners, this statement is on the front page, stating the city values trees and encourages their preservation and the city grants special credits toward the preservation of trees. The City has also developed an ambitious park and green space program which has resulted in eight new parks since 1982. He said the city has planted 861 new trees in the city, including some shrubs, but it has all been part of an ambitious urban forestation plan. He said the city has planted and maintained over 1,000 well established crepe mrytle plants. He said one of the parks the city established was Gibbs Park on 19th Street, which it has preserved as a natural area that has in excess of 1,000 trees. He said the city has also spent considerable funds to preserve and took great care not to disturb the root zones of the large oak and the pecan trees on the city hall property. Additionally, Mr. Pipes said, trees have been established in Ross Park in 1976 where previously there were no trees. Mr. Pipes said the city has also enacted ordinances requiring landscaping on all new developments with added incentives through a formula for the preservation of existing trees where one can get credit for preserving an eight inch tree on-site by taking special care to fence the area and not to compact the roots, etc. so that it lives. He said we have had a number of businesses comply enthusiastically with this. This afternoon, he was told one of our larger retail outlets in town has planted a number of rather sizeable trees in front of their facility on Highway 30 west that had been totally barren until this week. He said by the impetus provided by the city's landscaping ordinance, development code, and permitting process, there is quite an extensive group of new trees out Highway 30 west of 1 -45. The Council was advised the city has established an environmentally sensitive design procedure, originated by the Engineering Design staff three months ago, to limit the utility infrastructure renovation impact on settled areas, such as the 19th Street to 22nd Street areas, for which most of the people here tonight are concerned. hat has the city's record been in the oast on such utility proiects? Mr. Pipes referred to the Spring Lake ater and sewer project of 1988. He said fewer than 12 trees were cut along the eastern side of the Spring ake facility in the right -of -way, with more than ten times that many left. He said the neighbors out there re very happy with the new fire protection that was provided and the finished project. He said he will not ay there was not a lot of trepidation and concern before going into the project, but it looks very nice ut there and the residents are very happy with how they were treated and handled by the utility onstruction crews. Another example would be Sam Houston Memorial Park, Mr. Pipes noted, as last year the city came ough the middle of that park with two major sewer line repairs. He said the city scratched not one tree cut not one down, demonstrating a great sensitivity to the impact such an intrusion would have on a very uable asset to this community. He said there is no evidence of intrusion today as the city went to a lot extra expense as it was acknowledged ahead of time this was a very special case. The City certainly did onstrate its care and concern in this regard, he said. Mr. Pipes advised the city put a water line down Avenue 0, gas lines were laid, etc. and there was a single tree cut. He said on 17th Street, the city was forced to put the sidewalk in and in putting it 1 MINUTES Of THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 363 in, had to take out a few small saplings on a lot on the corner of 17th Street and Avenue 0. He said today one can hardly tell except for the improvements to the streets and sidewalks, that the city was even there. Mr. Pipes said the 10th Street project required the removal of a large Yoke Sycamore a couple months ago. He said the city was requested in November of 1985 by a prior owner to remove the tree because of the threat and danger of it falling across on top of the house they occupied at that time. He said they asked the city for assistance in removing that tree because of the danger to the house. He noted there is a memorandum in the file from the City Attorney, indicating that the city could do that and that it was obligated to do that if it was a clear and present danger, but it was not obligated to do it at the present time. He said the city chose not to remove it at that time, representing some of the sensitivity that is being challenged at this time. In addition to that, he said, as the city approached its utility project, and considered the alternatives to routing the 12 inch water line along 10th street, and considering that this 75 foot right- of-way is part of the original township plat that laid out extremely wide streets for the purpose of moving people in the future, that in all likelihood, 10th street would be widened significantly, just like it is two blocks to the west, that this would be the best route. following its policy, the city contacted the owners on 10th Street and discussed with them the alternatives, exhausted all of the possibilities with the attendant costs and then the City Manager's permission was sought according to the ordinance, created by the City Council in 1982 which grants authority only to the City Manager to cut trees in the city's street right -of -way. Mr. Pipes said practicality, economics and planning for the future, as well as the danger to private property, all figured into the decision to remove the large Sycamore on 10th street and put the water line in that location. He said if the city had gone three feet to the street side, it would have cut all of the lateral roots; root saw notwithstanding, the Sycamore would have fallen onto the house. He said it had an extensive horizontal root system. (Mr. Carroll interjected that is certainly a possibility, although he did not see the tree.] Mr. Pipes said the yoke tree was half hanging to the south and half hanging out over the street. He said certainly the current owner would have preferred that it stayed and certainly she understood that the street right -of -way is the public ownership and that the house, sitting very close to it, benefited from the tree. The question is what could best be the solution to this whole problem. He said the city crews again were highly complimented on the way they handled this project. He said given the history of that particular site, he felt the correct approach and due care and concern were exhibited. He said the city did not spend $400 to kill a tree; it spent some amount of money to remove a tree that was hollow for most of its height on the portion that overhung the house and it would have undoubtedly come down at some point in the future at a very inopportune and unfortunate time. what are the alternatives to the current Program? He said there are several alternatives. The City Council considered, prior to evolving the current policy in its present form, other alternatives, such as the clear- cutting of all rights -of -way and maintenance of this practice so that trees, fences, and obstructions do not crop up adjacent to the streets to insure whatever the future needs might be, the city could use what the public owns and has acquired and maintained at its expense. The second alternative was to put all the utility lines in the streets and pay the extra expense of maintaining the street, he noted. In this particular area, he noted, we are talking about 24,000 feet of water line in this overall project, which would require $300,000 to $360,000 additional dollars to place those lines in the street. He said setting precedent is a consideration. He said the city has done the very best it can in a number of areas, and if at this point, it begins to use the streets exclusively for the location of its utilities, then it is not being consistent with every other neighborhood in town. The $2 million bond issue passed in 1987 would have to be significantly increased to resurface the streets if the city would continue this project and put all the utilities in the streets, he said. The alternative is to continue patching and repairing potholes in the streets where they are and leave the water system at its current low pressure, which is a decades old problem in this particular area, Pipes noted. Another alternative would compromise the two extremes and concur with the engineering staff that a complete survey of the alternatives to be done in routing these improvements to accomplish the task in the least possible conflict to trees or other obstacles in the most desirable course. Then, follow the following protocols, which is the city's policy today: notify the affected property owner or tenant when a route is established - -a number have been established, tags have MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P° 364 en put on the trees, letters have been sent out; [many expect a lot worse than will actually occur because st of the work in this area has yet to be decided]; meet with the affected individuals on -site to discuss e alternatives; request the City Manager's authority when no other alternative exists; and design and Rd the improvements as planned. Mr. Pipes noted, however, there is one more choice, and that is to not make the water and sewer airs as we do the street work and to just shut it down, however, our 50 year old utility system andO rm drainage system have problems that we know about and this would amount to an ostrich approach. He d the city cannot ignore the known fact that the 19th to 22nd Street areas have had water pressure blems for decades and there is no doubt about this. He said the city could suspend the planned work and tinue patching the potholes in the streets in a maintenance format, but the property values in that area ld be greatly enhanced by improved water pressure and by totally resurfaced asphalt laid streets. Mr. Pipes said he does not feel it is possible to answer all of the innuendoes and suggestions. He said the city staff has and remains totally ready and available to discuss any particular project. He said Ms. Dunlap does have a reasonable concern in having three sides of her property affected at one time. He said Mr. Isbell and his staff are very reasonable people. He said if there is an alternate solution, certainly they will find it and work with her. He said the staff will be getting back with her to give her the benefit of all the information the staff has today. Mr. Pipes felt there is a good deal of concern that is the result of a lot of unfounded, distorted or otherwise misinformed individuals explaining the policies of the city rather than the city explaining its policies itself. He apologized for the length of his dissertation, but he appreciated the opportunity to try to straighten out some of the information. He said the city will be trying diligently in the next couple of weeks to send copies of its policy, what plans are known, and all of the attendant information available to every resident in the area so they will have the straight information as directly as the city can possibly provide for their benefit and understanding. He said he looks forward to hearing from anyone who has a concern. Councilmember Carter asked Mr. Pipes if a water line has a conflict with a tree that a resident wishes to preserve in the city's easement, is the city willing to put the line around that tree under the street under its present policy if that is the only alternative to preserving the tree? Mr. Pipes said, the blocking, etc. He said staving on one side of the street or the other or having a minimum number of deviations from a general straight direction or route is the current policy. He said the staff will go to whatever extent and to whatever expense the Council is willing to go. on the other hand, he said, from good sound engineering practice, doing a double elbow bend around a tree is not necessarily good for the tree and certainly not good for the street and that is where the breaks and future disturbances are going to occur. He said concerns at 3:00 A.M. when the water main is broken about what root the crew is trampling on will not be a high priority. Eventually, he said, that is not considered to be a good alternative, but that alternative would be exhausted as a possibility before any option is turned down. Councilmember Carter noted when the water line was put in on 18th Street, the line was bent around a utility pole and while not big and not severe, in every instance where they came to a utility pole, that line bent slightly around the utility pole. He felt in most places in the city one would see angles and curves because we are going to cross streets in some places. He asked if the city has the alternative to preserve someone's tree, is the city willing to put a utility line in the street? Mr. Pipes said this has been the city's stated policy for some time. Councilmember Carter said then if the resident requests this, the city will include that. Councilmember Green said he understood the city would not put the line under the street. Mr. Pipes said he misunderstood, but the city will do everything to avoid them where possible and that has been the city's policy for some time. He said it is not possible to miss every tree in the street rights -of -way in the City of Huntsville, but the minimum number of trees that can possibly be affected will be affected and that has been the city's stated policy. Councilmember Carter noted then the utility line takes precedence over the tree. Mr. Pipes said it does. Councilmember Knotts said we are also overlooking the detriment the trees do to the pavement if they are that close to the pavement as the roots suck the water out from under 1 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 365 the pavement and a good surface cannot be maintained nor the base compacted under it. He said if trees are that close, within 8 or 9 feet of a curb, then they are basically a detriment. He said these trees are there over the years from being neglected and left to grow by accident in the rights -of -way. He said the rights -of -way should have been kept cleared as now required in the City's code. Mayor Monday clarified the Council's position and that is that it has told the staff it wants them to use absolutely every consideration they can use to save a tree and to do it if they possibly can and that is what they are working under. She said they are going to be contacting every homeowner, there will be consultations, there will be numbers to call, and they will come out to visit with the homeowner. She said the letter will come out and it will let the homeowner know who to call and who to talk to and advise of which homeowner's property will be involved. She said the department is not even designing yet, so for some people this is all very premature. She said rumor has it that there is this oak tree that is sure to be killed. She said her understanding is that this is not at all true and that the staff is still in the tentative design stages and they do not know what they are going to do yet. She said there is just as good a chance that it won't be affected. She encouraged those present if they have any concerns to call City Hall to visit with staff so they can advise of the plan for their particular area. She reiterated that the City Council has instructed the staff to do everything they can to save the trees, but that is not to say it will save every tree in Huntsville, because it will not, but it will Lry to save every one. MAYOR'S ACTIVITY REPORT - -JANE MONDAY Consider a request by Mr. Gil Smith for the City to serve as the vehicle for a Texas Economic Develoanent Loan /Grant for expansion of his business Collateral Protection through the Texas Department of Commerce Mayor Monday advised the Texas Department of Commerce administers economic development grant loans at the state level, known as the Texas Capital Fund. She noted this funding mechanism is available to the city as another tool in its overall economic development program. According to a memorandum from Mr. Dale Brown, City Planner, the State of Texas has funds available to cities and counties to encourage economic development through the creation or retention of jobs. These funds are distributed in the form of low interest loans which are repaid to the state, Mr. Brown advised. Applicants must be cities or counties acting in behalf of private individuals or companies, he said. A city can apply for the funds for any existing or proposed business inside a city limits, Mr. Brown noted, and /or within the city's ETJ. The Council was advised a county may apply for funds only outside the incorporated areas of the county. The loans may be a minimum of $50,000 and a maximum of $500,000, Mr. Brown reported. He said items eligible for funding include land acquisition, depreciable property, working capital and municipal infrastructure improvements (if required by the site). He advised ineligible for funding are debt service, refinancing of loans or paying salaries of the business principles. The applicant city or county may, he noted, make as many applications, and as often as needed. Grants are approved on a one to one basis, he said, as submitted until funds are exhausted. It was explained the city makes the application on behalf of the business and, once the grant is awarded, administers the program. Mr. Brown said the funds would be paid to the city; the city, in turn, transfers the funds to the business- -the city, in effect, acts like a bank. Mr. Brown advised payments are received by the city and transferred to the state. The business provides the city with a deed of trust as collateral sufficient to guarantee the loan, he noted. Then, he said, according to the prearranged payment schedule, the business begins to pay off the loan. The payment of the loan, he noted, and the interest rate are negotiable with the State and are approved at the time the grant is awarded. Mr. Brown said the business agrees to repay the loan, to create and maintain for at least two years a specific number of jobs and to fill 51% of the jobs with people with low to moderate income. The business must also have at least a 1:1 ratio of private funds to public funds. The City agrees to administer the program for two years (and to receive payments and transfer them to the State until the loan is paid in full) which primarily involves assuring that all the necessary reports are filed, that the funds are MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK "P" 366 expended as agreed and that the agreed upon jobs are created and retained for the full two years. Mr. Brown stated the only long term obligation the city has is to continue to receive and forward payments and, if the business defaults in its payments, to initiate foreclosure proceedings. Once the loan is paid off, the city's obligations cease. The city may also apply for funding with the grant to reimburse its administrative expenses. He said this, too, would be based on the two year contract. The Council was advised this application process is very straight forward and similar to the grants the city has applied for under the Texas Community Development Program Fund. Once a business expresses an interest in the program, Mr. Brown noted, a meeting is held between the principles of the business, the City and the State to go over the grant requirements. He said the business then submits specific information requested by the State (loan commitments, business plan, cash flow projections, etc.) to the City for inclusion in the application. The application is scored on a 100 point system with a minimum acceptable score of 60. Factors scored are (1) project feasibility (30 points), (2) leverage ratio (30 points), (3) cost per job (20 points), and (4) minority hiring of the city and the business (20 points). Mr. Brown then asked for a consensus of the Council as to whether or not to proceed with the paperwork to become involved in this program. Mayor Monday then gave some background to Mr. Gil Smith's Collateral Protection, Inc. Insurance business, which began in January of 1977, and offers credit - related insurance products to financial institutions. She said his marketing area includes 600 financial institutions in 22 states, and one of their largest accounts is Texas Commerce Bank Shares, Inc. Collateral Protection is in its fourth physical location here in Huntsville: the first having 1,000 square feet; the second having 3,000 square feet; the third had 5,000 square feet; and its present location on Windsor Road has 10,700 square feet. As of December, 1987, they had a total of 95 employees, including some 42 new employees who were added during the year. As of December, 1988, they had a total of 100 employees, including 33 new employees added during the year. As of April, 1989, they had a total of 105 employees, which included some 14 new employees hired so far this year. By December of 1990, they will add a minim of 40 employees and this number could go up to 100, the Mayor reported. The Council was advised Mr. Smith has had a very successful business here in the city. Councilmember Green asked about foreclosure procedures and if the city would be responsible for the operation of the business in the event of foreclosure, and would it have to administer the repayment of these loans. Mr. Pipes said the city would not have to run the business in the event of a foreclosure, but it would have to continue to administer the repayment of the loan by collecting and remitting to the state according to the schedule established by the company with the Texas Department of Commerce. Councilmember Green noted then there is absolutely no liability on the city's part. Mr. Pipes said that is his understanding as the city is merely the vehicle or conduit through which this loan is made to the local business and has no debt obligation; payments are merely remitted to the city and the city remits them to the state and the city may charge an administrative fee at its own option. Councilmember Green noted then this procedure only adds an administrative overhead expense which makes no sense to him. Mr. Pipes said but it does put a local public agency in a monitoring position. Councilmember Carter asked who will monitor and under what conditions. Mr. Pipes said Mr. Dale Brown, City Planner, will be the monitor. Mayor Monday noted there will be dollars to offset this expense. Councilmember Carter asked if we would hire staff or will existing staff handle this. Mr. Pipes said there will have to be hired staff and this could be offset for some period of time. Mayor Monday said this particular grant will not necessitate the hiring of staff and that decision of whether to hire new staff would be the accumulation of the other two grants the city has received in combination with this one, but this one in itself will not necessitate the hiring of additional staff. Mr. Pipes said this is not the only grant that may be received from this particular fund as there may be ten other applicants. Mayor Monday said it is an application process and there is no guarantee that one will be awarded the grant. Mr._Brown said applicants can apply as often as they wish. He said the city will only be monitoring one thing and that is the agreement the applicant makes with the state that he will create so many jobs and that of those 1 MINUTES OF THE MAY 16, 1989 CITY COUNCIL MEETING BOOK upu 367 so many Sobs 60% will be low to moderate income People who are hired; for the first two rears, it is the city's responsibility to make sure that he maintains those positions. Councilmember Barrett made the motion to approve the request made by Mr. Gil Smith for the City to serve as a vehicle for a Texas Economic Development Loan Grant for the expansion of his business. and Councilmember Gaines seconded the motion All were in favor and the motion Passed unanimously. Parks Related Meetings Mayor Monday reported on two parks - related meetings. She said she met with the Parks Advisory Board, who is putting together a slide program to carry the story of the city's parks to all the groups of Huntsville to talk about the variety of the parks we have and some of the opportunities we have as well as the needs of the parks in order to educate the citizens generally about parks in the community. She said many people are just unaware of all of the neighborhood parks Huntsville has in operation. She said bike routes are also going to be established and the signs will be going up in the community. A proposal will be made to the Council soon for a budget item to fund those signs so they can be put up in the designated areas. She said they also have an innovative idea for a funding approach that the city can use to fund the parks and they will bring that forward as well. The second meeting she attended was with the Progressive Women's Association, whose members are very interested in adopting again the Martin Luther King facility at Emancipation Park. She said they have some interesting and exciting things they wish to contribute to help fund things for that building. She said they are now drawing up a proposal, for consideration, in which they wish to challenge the city in a matching situation for funds to make some permanent improvements to the building. She said they also have a Long range plan for the development of that building so that it can come up to its full utilization. She said they wish to be a part of this effort to help raise funds for these improvements. They will be working with the Parks Board first and then they will be bringing recommendations to the Council by way of the Parks Board, Mayor Monday advised. COUNCIL ACTION Neighborhood Interest in Trees Councilmember Carter noted he is very pleased that so many citizens came from the neighborhood to learn about the city's tree policy. He said if there are false rumors floating around, they are not coming just from this neighborhood but from other directions as well. He said he hopes we can all work together to do some of the things we are talking about doing. He said he is still going to push to put trees ahead of utility lines. Ryan's Ferry Road Improvements Councilmember Howard commended the city staff for the improvements made to Ryan's Ferry Road, noting it looks good and the residents have made comments of appreciation to him. Thanks to citizens for coming to the meeting Mayor Monday thanked the citizens for coming to the Council Meeting tonight to express their concerns and to learn more about the city's tree policy. She said the city looks forward to working with them as the utility plans proceed. ADJOURNMENT Respectfully submitted,