MIN CC 04/25/19891
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P° 315
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 25TH DAY OF APRIL, 1989 IN THE CITY HALL COUNCI
CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:30 P.M.
The Council met in a regular meeting with the following members present:
Jane Monday, Mayor 0. Eugene Barrett City Officers Present:
Gary Bell James L. Carter Gene Pipes, City Manager
Ila G. Gaines William L. Hammock Ruth DeShaw, City Secretary
William B. Green Percy Howard, Jr. Scott Bounds, City Attorney
William H. Knotts, Jr.
CONVENE AND RECESS TO EXECUTIVE SESSION
Mayor Monday called the formal session to order at 6:47 P.M. and then recessed into an execut
session to discuss a real estate acquisition on 7th Street. No formal action was taken in this execut
session, which ended at 7 :00 P.M.
RECONVENE FORMAL SESSION
Mayor Monday then reconvened the formal session. Councilmember Howard presented the invocation.
CONSIDER THE MINUTES OF APRIL 11, 1989
Howard seconded the motion. All were in favor and the motion passed unanimously.
CONSIDER ORDINANCE
Consider Ordinance No. 89 -11 amending the Employee Health Plan and Trust to include EMS employees
Mr. Pipes presented this ordinance, the caption of which is as follows:
ORDINANCE NO. 89-11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE
CITY OF HUNTSVILLE EMPLOYEE HEALTH PLAN AND TRUST TO INCLUDE THE HUNTSVILLE- WALKER
COUNTY EMERGENCY MEDICAL SERVICE, AND MAKING OTHER PROVISIONS RELATED THERETO
The Council was advised that some time ago, the Council had an extended discussion concerning including the
EMS employees into the city employee health plan. Mr. Pipes said this ordinance will approve their
inclusion. He also presented a resolution of unanimous consent from the trustees of the plan, authorizing
this change. He then recommended the approval of this ordinance to include the EMS employees in the city's
health plan and trust. Councilmember Barrett made the motion to adopt Ordinance No. 89 -11 and Councilmember
Howard seconded the motion. All were in favor and the motion passed unanimously.
CONSIDER RESOLUTION
Consider Resolution No. 89 -6 authorizing participation in the State Purchasing and General Services
Commission Program
The City Manager, Gene Pipes, presented this resolution which would authorize the State Purchasing
and General Services Commission to allow the city to participate in state contract purchases as an option
for certain classes of purchases and would authorize the City Manager to sign and deliver all necessary
requests and other documents in connection therewith. The classes requested include purchases of: air
conditioning, heating and ventilating equipment and supplies (Class No. 031); automobile and truck
accessories (055); automobiles and light duty trucks (070); laboratory chemicals and supplies (175);
coolers, drinking water (225); electrical equipment and supplies (285); engineering and surveying equipment
and supplies (305); envelopes (310); fire protection supplies (340); office machines, equipment and
accessories (600 -A1); photocopiers- -purchase (600 -A8); photo copiers -- rental (600 -A9); office mechanical
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 316
ids (605); carbon paper and ribbons (610); office supplies, general (615); telephone equipment and supplies
725 -A1); and tires and tubes (863). Councilmember Howard made the motion to adopt this Resolution No. 89 -6
CONSIDER BIDS
Mr. Pipes, City Manager, presented these bids from McCaffety Electric of Huntsville: Service
Center, 540,587 and Spring Creek, $69,113 for a total of $109,700. He advised there were two other bidders
whose total prices were $118,000 and $138,000. He advised funds are available for the Service Center
generator in the amount of $38,000; therefore, additional funding will be required in the amount of
$2,587.00 from the reserve for future allocation. Mr. Pipes also advised funds in the amount of $110,000
are available for the Spring Creek generator. Mr. Pipes said these generators will give the city the backup
power it needs in times of emergency. He noted the Spring Creek plant could supply a considerable amount of
water to the rest of the city during emergencies. Councilmember Bell made the motion to approve of these
Discussion: Councilmember Knotts asked for the justification on the Service Center generator. Mr. Pipes
said most of the city employees work out of the Service Center and during times of storms or civil
emergencies when power may be interrupted. the generator will keep the communications system working as well
as the electricity to the building. Mr. Pipes said the generator at the Spring Creek plant is not another
back -up power source, but the only back -up generator for the plant as it has no such backup power now,
although it had been discussed over time as a capital improvement project. Mr. Pipes said he feels these
purchases will be a great insurance policy for the overall services to the community. All were in favor and
CONSIDER ENGINEERING AGREEMENT
Consider authorization for the City Manager to enter into an agreement for engineering services with
from Water and Sewer Capital Improvement Funds
Mr. Gene Pipes, City Manager, advised the City has employed Weisenbaker, Fix and Associates over the
last 25 years for major capital improvements in the city's sewer system. He advised they designed the north
and south sewer plants and both of the lateral systems and most of the lift stations. He said they have
been the City's consulting engineer on wastewater for some time. He said most recently they redesigned and
supervised the installation of improvements at the Club Lake Lift Station and the College Farm Lift Station
built over the last couple of years in the Capital Improvements Program.
The Council was advised this year the city had planned to replace the Rustic Pines and Big D Mobile
Home Parks' lift stations, which have been notoriously poor for years. He said in moving the lift stations
to the east side of the East Loop, the City can increase its service area and greatly improve the
conditions at the Rustic Pines and the Big D Mobile Home Parks. Mr. Pipes advised the work load this year
of Mr. Glenn Isbell, Director of Design Engineering, with all of the capital water, sewer and street
programs, is such that he cannot assume an independent project such as this and complete it in a
satisfactory time frame. He then encouraged the Council to approve this contract with Weisenbaker Fix and
Associates because of the city's long standing good experience with that firm, in order to get these
projects underway for the construction season. Councilmember Green made the motion to approve of this
Discussion: Councilmember Knotts asked the City Manager if the city's surveying crew could find
time to do the land surveying for easement purposes. Mr. Pipes agreed, noting the city surely can do that
and probably reduce these costs. He said the documents indicate a "cost not to exceed $45,200" and the city
has not negotiated a specific contract at this time, but has taken the engineer's outside unit prices. He
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989
BOOK "P"
317
said the staff will work with them and discuss what the city can schedule efficiently and cost effectively,
and will negotiate with the consultant. Mr. Knotts felt the city has two surveying crews and should be
able to manage this project. Councilmember Knotts then made the motion to amend the motion on the floor to
state the city will do the land surveying for easements in -house and Councitmember Bell seconded the motion
Discussion: Mr. Boyd Wilder, Director of Public Utilities, advised he and Mr. Isbell discussed doing the
Land surveying for easements in- house, but the Engineering Design Department does have a "pretty good" work
Load on projects which involve the surveying crews. He said it is Mr. Isbell's recommendation that the
city contract out the surveying because of the current workload, especially at the prices the firm quoted as
it was found the prices were relatively good prices. He noted, however, that the city does plan on doing
the construction inspection. Mr. Wilder said the project calls for eliminating these two lift stations
completely as they currently exist and moving them downstream and moving numerous lateral lines also to
another site where the lift stations will be designed and built. Mr. Knotts still felt the city would be
doubling up on its engineering expenses, especially by contracting out this surveying work. Mr. Wilder
again noted it is Mr. Isbell's opinion that the city would be better served by contracting out this
particular surveying job. Upon a vote on the motion to amend the original motion Councilmembers Green
Hammock. Barrett. Gaines and Mayor Monday voted "OPPOSED" and Councilmembers Knotts Carter Howard and
Bell voted "FOR" the motion. The motion, however failed by a vote of five to four. Upon a vote of the
original motion to award the engineering contract to Weisenbaker. Fix and Associates all were in favor
except Councilmember Knotts. who voted opposed The main motion then passed by a vote of eight to one
CONSIDER POLICY
Consider a policy for abatement of taxes in conjunction with Walker County Huntsville Independent School
District and the Walker County Hospital District
Mr. Gene Pipes, City Manager, advised the City Attorney, Scott Bounds, is now passing out the most
recent edition of this policy, as approved by the Walker County Commissioner's Court and HISD Board of
Trustees, which would abate taxes 100% until the sixth and following years of operation or existence, among
other provisions. He advised these abatement policy discussions have been ongoing for some time and a great
deal of information has been considered. Mr. Bounds advised the changes to be made in the document in the
packet are to change references from Walker County to City of Huntsville; from Commissioner's Court to City
Council; and from County Judge to City Manager. He said in all other matters, the policy presented is
identical to those adopted by the other taxing entities.
Mr. Bounds then presented three areas of concern as discussed in the recent joint meeting of the
taxing entities. One of the matters concerned the fact that this policy needs to be clarified that it is
not intended for normal retail /office type development, but is rather for manufacturing or distribution
facilities, corporate offices, research parks, or similar facilities, if it can be demonstrated that their
development would create substantial capital improvements or jobs. And further that tax abatement,
generally, is not designed to encourage speculative office development, retail development, or other service
industries that market primarily in Walker County.
The second clarification, Mr. Bounds advised, concerned whether abatement policies would be extended
to a city's extraterritorial jurisdiction (ETJ). He clarified recent legislation concerning this matter,
noting the current tax abatement law, is that as passed by the Legislature in 1987, which was recodified
from Texas Revised Civ. Statute 1066f to Texas Tax Code Chapter 312. He said, however, after the
recodification bill was approved, two other amendments were passed to the law in its original (1066f) form.
Mr. Bounds said with regard to the provisions relating to abatement policies in a city's ETJ, three separate
bills in two different formats must be interpreted.
Mr. Bounds said it is his interpretation that within the city limits, only the city can create
reinvestment zones. He advised when the city enters into an abatement contract affecting property within
the zone, the hospital district must adopt the same agreement. He further advised the school and county may
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 318
elect either to follow the city policy or provide no tax abatement. Mr. Bounds further clarified that both
the City and the County may create reinvestment zones in the city's ETJ, noting when the city creates the
zone, either the city, school, or the county may enter into an abatement agreement. He stated if the city
enters into an agreement before annexation, only the city is bound to the agreement upon annexation.
However, he said, if the school or county enter into an agreement, the hospital district must adopt the same
agreement. The school or county, he said, may elect either to follow the other's policy or provide no tax
abatement. Mr. Bounds further stated outside the city's ETJ, only the county may create a reinvestment
zone. The hospital district, he said, and the city, if it annexes the property, must adopt the same
agreement that the county adopts. The school, however, he said may elect to adopt the agreement or provide
no tax abatement.
Councilmember Bell asked how the city can bind the Hospital District to an abatement of taxes
without their consent. Mr. Bounds said because they are a special tax district and because of the way the
Legislature adopted the law that created this special district. Mayor Monday noted the Hospital District is
not given independent authority. Councilmember Green noted then only the city and the county actually have
the possibility of creating a reinvestment zone and the school district has the option of either going along
or not going along, but the hospital district always has to go along. Mr. Bounds said this is true. it was
noted while the graduated abatement schedule was discussed by the school district and the county, they have
both adopted the 100% tax abatement for the first five years, as is presented in the proposed policy.
The Council was further advised concerning "recapture" that the provisions regarding recapture will
be detailed in a tax abatement agreement negotiated with property owners or prospective property owners in
the reinvestment zones designated by the city or county. He noted the model abatement policy was amended to
reflect that non - compliance with the abatement agreement will result in repayment of taxes.
Councilmember Green said within all of this information, there is no discussion relative to who
initiates, who must go along, and who has the option of going along or not going along. He said these
policies are simply independent. He asked if all the taxing authorities have an understanding about this
relationship, and if they do not, should that be a part of the policy or should it just be something that
stands out there that becomes an understood matter? Mr. Bounds said he has discussed his opinion about this
with all of the taxing entity's representatives that were present for the meeting last week. He said the
statutes are relatively ambiguous, however, especially the statute concerning whether or not the county and
the school district have to have the same agreement inside the city's ETJ. He said the ambiguity in the
statute arises in those situations where the city is not involved in the policy. Councilmember Green
expressed his concern for who someone goes to in order to request tax abatement and how are they to know the
procedures to follow for all of this to take place. Mayor Monday said this can be clarified as a policy.
Councilmember Green felt this should be with the tax abatement policy adopted. Mr. Bounds said if it is
within the City or the ETJ, one would either go to Walker County or the City, because first of all it has to
be designated as a reinvestment zone. He said if one goes to Walker County, they have to initiate the
process through the County Judge; if it is in the city or the ETJ, one would have to initiate that procedure
with the city. Councilmember Green felt somehow this procedure needs to be clarified so that everyone
concerned is aware. Mr. Bounds said that is in the policy under the application process.
Councilmember Carter asked if a representative from the hospital district was invited last week to
the tax abatement discussions. Councilmember Green said it does not matter as they have no authority in
this regard. Councilmember Carter felt that this policy will affect the hospital district's taxes and it
would be good to have contact with them in that regard. Councilmember Bell advised it was merely an
oversight that they were not included. Councilmember Green did not feel contact with them is necessary
prior to taking action on the tax abatement policy. Councilmember Carter, however, felt if the hospital
district had this type of control over the city's taxes, he would hope the city would be contacted.
Councilmember Green argued this policy does not affect anything the hospital district currently collects.
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 319
Councilmember Carter asked about the amendment concerning what types of businesses might be allowed
abatement, specifically, the amendment does not really answer the issue, in his opinion, as it still says to
him that a retail business could get tax abatement in a reinvestment zone because of the qualifying words in
the statement, such as "normally," and "genera lly, "and the purpose is "this" or not "that," but it does not
say it is not possible for a retail establishment to get tax abatement. He asked Councilmember Green if
this amendment accomplishes what it is intended to accomplish. Councilmember Green said he did not object
to the possibility of retail establishments getting tax abatement, but did want to point out to the
committee members that the existing policy did not preclude retail establishments and while this one still
does not, it does clarify "what is the expectation." Councilmember Carter asked then if he can live with
the possibility that a retail establishment might get tax abatement? Councilmember Green said he could.
Councilmember Bell noted here this is merely a guideline and the city has discretion about any specific
application it chooses. He said this is to establish the general guidelines but giving the Council complete
discretion on the final analysis.
Councilmember Carter then offered a motion to amend the motion on the floor to adopt the policy, to
make it a graduated tax abatement scale rather than 100% abatement of taxes for five years He then
Presented the following graduated schedule:
1st year
100% taxes abated
2nd year
75% taxes abated
3rd year
50% taxes abated
4th year
25% taxes abated
5th year
10% taxes abated
6th year and after
0% taxes abated
Councilmember Knotts seconded the motion. Discussion: Councilmember Bell spoke against the motion, noting
the city is right on the verge of completing nine months of work of getting a common policy between the
city, county and school and this is the first time in his recollection where there is commonalty among all
the entities. Frankly, he said, he wanted to stay with the 100% tax abatement for the five years, simply
because the city's sister entities have agreed to it and because it will provide more of an inducement for
companies to come in than a graduated abatement schedule would have over a five year period.
Councilmember Howard agreed with Councilmember Bell's comments and added the three entities have
gone over this time and time again and he felt this proposal as a guideline and policy is the most
meaningful policy on which these three entities can agree. Councilmember Gaines agreed with Councilmembers
Bell and Howard, and noted it is recognized this is not the perfect solution, but all three entities have
agreed to it and she did not feel the city should be the one to change it now. She said the real purpose in
this is to present to those people who are looking at Huntsville for business that we are a united front and
that we are in agreement with what we are doing and that we are trying to work together. She said all the
pros and cons were discussed and this is the policy the three entities have decided upon.
Councilmember Knotts said what he basically disagrees with is the fact that this instrument
basically came from Conroe and that we consider Conroe our competitor and all we are really doing is cutting
Conroe's price. He said when the city worked with Conroe on the Super Collider Proposal, the Mayor spoke
highly of the camaraderie that was developed regionally, etc. He said he wonders how Conroe is going to
take this policy. He said their policy was 2.38 million with 25 jobs and Huntsville, by their policy, is
basically cutting their price as it states 11S1 million and 15 new jobs." He felt this policy will not
create a lot of good will in our regional development. Mayor Monday said she did not feel this would hurt
the city's cooperative efforts as the city is in the mood to do a lot of things regionally where we will
work together on individual packages. She said it does not behoove the city to cut itself and not be in the
competitive mode. Councilmember Knotts did not wish to enter into a private war with other towns.
Councilmember Green said they [Conroe] cut Huntsville's price. Mayor Monday said this particular document
was not drawn up in lieu of or despite any other group. She said the three entities' committees have worked
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 320
very hard to come up with what they consider to be a very good program for this community and one they think
will work and for that reason, she will support it. Councilmember Barrett said if this policy were not to
not to have been accepted, it would not have been accepted by HISD as it will be hurt more than anyone
because it will have extra students to provide for with less taxes. For that reason, he felt the city
should present a united front and go along with the 100% abatement of taxes.
Councilmember Carter said the first purpose of this policy is not to be in agreement with other
taxing entities as this is not why we make policies. He said we make policies to make good public policy.
He said he does not feel this 100% tax abatement for five years is good public policy partly because the
city will have depreciation of the worth of this company over time, which means by the time the city taxes
them at all, the city will possibly not get very much from them. He said because of the track record of
businesses in Huntsville, what the city is doing, in a sense, is telling them to come in to give Huntsville
a try, but if they can't last five years, they won't have to pay any taxes. He said this has happened to
Huntsville in the past. Also, he said he would dispute the fact that we have met about this time and time
again, because he has only been involved in two meetings about tax abatement and this policy. He said there
have been people working on it, but this City Council has not met time and time again to discuss it. He
said when this policy was presented to the Council it was brought almost as a finished product, with 100%
tax abatement for five years. He said while the school district taxes heavier, and in that sense, they have
more to lose, but where they pick up two students, the city picks up two students and two parents so that
the city is providing city services for more people than they are providing in terms of school services to
students. He said over that five year period that the city is abating taxes, the city is providing city
services to employees that will be moving to town, or the business, in some sense, for street use, etc. He
felt it is not good public policy to abate a business its taxes over five years. He said he is in favor of
encouraging businesses to come here and is in favor of the idea of tax abatement in the same way the school
district said it was in favor of the concept, but he is not in favor of the five year, 100% tax abatement,
and if that is a part of the provisions, he will ultimately vote against it.
Councilmember Bell reminded the Council that the mayor- appointed committee reviewed the matter as
requested and these delegated representatives are now bringing back its recommendation. He said obviously
the Council has a right to disagree with it. He said the process was legitimate, however. He said it is
true that Brown Oil Tools company did not last five years, but the city has a recapture clause which is an
important part of this policy, in that if a business stays here for five years and takes advantage of the
tax abatement, and then leaves after that five years, the city can pursue them legally. He stressed this
policy will not be cutting anyone's taxes and all it does do is not tax them for a given time period. He
said the city is not losing taxes, but is just deferring the point at which it will collect those taxes.
Mayor Monday said we would not be decreasing the tax rolls at all because the taxes that come off will only
be on new improvements, etc., so this tax structure will not be affected. Councilmember Barrett disputed
Councilmember Carter's comments about the city losing taxes from families, because the families that come
in because of the new business will not have their personal taxes abated and they will be paying their
share of all taxes (city, county, school and hospital) in their residential areas.
Councilmember Carter said he did not intend to attack the process by which this abatement policy was
researched, studied and written, but he felt the City Council, as a body, should have more time to talk
about options and he was just not aware the council would be presented a finished product to vote up or down
without the opportunity for consideration of the options. He said he appreciates the committee's work and
the fact that a proposal has been submitted. He said he would like to hear all the arguments made in the
meetings prior to this submission. Councilmember Carter noted with regard to the taxes related to new
families coming in, that the city will be having expenditures in the city for new residents, if this occurs,
and in that sense will actually be cutting the tax roll; the city will be spending more money without taking
in the same amount from this new business. He said it is possibly a burden on the city's expenditures by
not taking taxes out on the new business.
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 321
Mayor Monday then called for a vote on the amending motion from Councitmembers Carter and Knotts to
change the 100% five year tax abatement to a graduated scale over the five year period from 100% abated the
first year, and then 75 %, 50 %, 25 %, 10% for each of the first five years, respectively to 0% in the 6th
year, as outlined above. Councilmember Knotts and Carter voted for the amendment and Councilmembers
Hammock Barrett Gaines Mayor Monday. Councilmembers Howard Bell and Green voted "Opposed" to the
amending motion The motion then failed by a vote of seven to two Upon a vote on the motion to accept
the originally proposed tax abatement policy reflecting 100 percent abatement of taxes for the first five
years All were in favor of the original motion except Councilmembers Knotts and Carter who voted
"OPPOSED." The motion passed by a vote of seven to two.
CITY MANAGER'S REPORT- -GENE PIPES
Report on taxi service request
Mr. Gene Pipes, City Manager, brought an update on the request of the meeting of April 11, 1989 for
taxicab parking zones at the bus station. He reminded the Council the staff was encouraged to meet with the
parties involved (taxicab owners and bus company owners) in order to come to some agreement. He presented a
memorandum from Mr. Scott Bounds, dated April 19, 1989, which detailed the discussions of that meeting. Mr.
Pipes said the discussion was a good interchange and at the conclusion, the parties involved indicated their
feeling they could perhaps work out their problems without city regulation. Mr. Pipes said he will keep the
Council advised of any change in this matter.
Request for Endorsement of Section 8 Loan Management Set Aside for HUD for Cedaridge Apartments
Mr. Pipes advised the city knows this apartment complex as the " Cedarwood Apartments" on Avenue I.
He said this request is not unusual, but the request coming on behalf of the Cedarwood Apartments is
unusual. He said he has advised the Council in the past about this apartment complex's tremendous calls for
service record with the police department and the impact it has had on the available police staff. He said
the city has increased the police staff substantially in the last year to meet the rising calls for service.
He pointed out that in consideration of this particular request for endorsement of this request for
additional assistance, that there were 48 police calls since January 1 in the Cedarwood Apartments; 20 calls
in December of 1988; 15 in November of 1988; 14 in October of 1988. He said the rap sheet of the calls
since 1986 for the Cedarwood Apartments are two large computer sheets Long. He advised the assistance
rendered range the full limit of city services. In light of the Secretary of HUD's general position of
cleaning up some of the undesirable criminal activity in these particular types of housing units, he would
encourage the Council that the City Attorney be directed to communicate to HUD the severe problem our Police
Department, Fire Department, EMS and other public safety groups have had in the city. He said the Council
has been informed in prior times of the rather serious threats from that particular unit. He said he feels
it would be a very inappropriate thing to respond favorably to this request for endorsement on this
particular housing project. He said Walker County Housing Authority is the agency that supervises this
particular type of program in Huntsville. He said he would encourage the council's approval of this
communication to them that this particular project is creating a great deal of difficulty in our community
and has a very undesirable effect and the city certainly would not endorse their application for additional
funds to maintain their project. The Mayor and City Council concurred with the City Manager's
recommendation.
Authorization for a personnel reallocation in Finance Department
Mr. Pipes advised several weeks ago the City's Tax Asessor- Collector resigned. He said the Council
subsequently designated the Director of Finance as the official Tax Collector. He said the City now seeks
the Council's approval of changing the job description title of that particular position, but maintaining
the position so that it can be utilized in other departments and other areas within the Finance Department,
as the seasonal tax situation changes. He said the city is well aware that in the future, perhaps the next
four or five years, the Legislature is very likely to enact a uniform or single collection agency for all
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 322
taxing jurisdictions. He said this is not the case at the present time. He said it is also quite commonly
discussed in Austin in the legislature that the County Tax Assessor - Collector be the single agency. He said
at the present time, the Appraisal District collects the taxes for a number of entities. He said the city
has made considerable investigation and discussion with them as to the cost to do this service for the City.
He said at the present time, the city feels it is a financial and efficiency advantage to the city to
maintain its own collections; however, it is recognized that in the future, undoubtedly, it will be mandated
that there will be a central collection agency. He said the city will be more than willing to address that
at that time. Mr. Pipes said the city would also be remiss if it did not continue to evaluate the Appraisal
District's position on this matter and consider it in conjunction with the fall budget or any other time
that we can have a fresh look at the matter. However, he said, at the present time, with the press of
business, the city does need to have this position filled, but it will be filled with a "utility in- fielder'
type employee, rather than a "specific tax office" employee. He requested the Council's approval of this
position. Mayor Monday noted she observes there is ageneral consensus being expressed by the Council to
Mr. Pipes advised the Council of some additional costs before move -in can be accomplished at the
Service Center garage facility. Mr. Pipes said some additional paving is needed adjacent to the garage,
especially where the city tore down the old container repair building (aka elephant barn), which area needs
to be paved over with two course penetration paving in order to maximize its utilization and also to keep
from tracking rock and soil onto the new concrete pads adjacent to the building itself. In addition, he
noted, there are some gas piping modifications and a metal door is needed to comply with codes. He said the
city needs material for a tire storage rack and right hand work tables in the garage itself. He said
installation of a window counter is also needed to disperse parts from the parts warehouse inventory to the
garage so as to maintain control there. He said the city needs to add to the salvage units the city
retrieved out of the other garage system (old warehouse) to make a heating unit for the garage work (by next
fall). He advised a hand washer for the garage employees in their area as well as an explosion proof fan
for the paint trendle so that the city will also be in compliance with the codes. Finally, he said, there
are some other minor items, such as additional lighting and concrete supports for the roof and other things
that had already been expended. He said the total is $19,800 out of a $33,700 available funds in the
Service Center Project (not reserve for future allocation). He said then $19,800 is needed to allow the
city to comfortably move into the new facility so as to make ready for the Council's review tour in a two
weeks. Councilmember Howard made the motion to approve of the additional move -in expenses in the amount of
m
Mr. Pipes presented Mr. Bounds' memorandum of April 21, 1989 answering questions concerning the
etirement program. Mayor Monday advised these are questions that came out of the last meeting and any
ther questions that may arise will be addressed so that all the discussions can be had in order to have
veryone comfortable with the program. She said if any of the Council are not comfortable with the
nformation or the retirement program, they are encouraged to contact Mr. Bounds or Mr. Pipes or ask their
uestions, or to do that this evening. She said when this is done, then the matter will be brought back for
vote. Mr. Bounds' memorandum answered the following questions:
Why change from the current retirement providers?
Answer: Presently, Kansas City Life Insurance Company (KCL) invests the funds for the City's
retirement program and Lauren D. Stark 8 Co. administers the plan. The City entered into a ten year
contract with KCL in 1979 to administer both the retirement fund and plan. KCL ceased administering
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 323
the plan on 9 -30 -86 because it cost too much. Over the past five years, KCL and TMRS have paid the
following interest rates:
Year
KCL
TMRS-1
1983 -84
10.5%
11%
1984 -85
11.1%
11.3%
1985 -86
10.05%
11.3%
1986 -87
9.33%
11.3%
1987 -88
9.13%
11.3%
Lauren Stark & Co. has advised the City that it cannot continue to administer the City's retirement
program because of its uniqueness. Recommend changing fund administrator because 1) a better
investment record may be expected by a change; and 2) KCL breached its obligation to administer the
City's plan for 10 years. Recommend) changing plan administrator because 1) Lauren D. Stark & Co.
has asked that it be replaced as plan administrator; 2) Lauren D. Stark & Co. has not timely
provided reports due as plan administrator.
COUNCIL DISCUSSION: Councilmember Green stated the interest rate that is payable on the various
programs really only warrants comparison, if in fact all of the interest goes to the employee. He
said as he reads through the TMRS handbook, it was never clear to him that the interest that is
earned on the portion of the money paid in by the city to TMRS actually ever goes to the employee.
He said unless the contract is different from what the book states, the interest earned on the
city's portion does not go to the employee in calculating his retirement benefit. So, he said, even
if it is earning 11 %, if that 11% does not go to the employee, but goes to something else, then the
actual dollars he may receive is what is the issue, not the interest earned on the fund. Mr. Bounds
said it is his understanding that the interest earned on both the employee's account and the city's
account, is charged to each of them at the same rate and that money is put into a credit which is
used to determine the annuity the employee gets upon retirement, but he will double check that.
Councilmember Green noted, however, on page 9 and the top of page 10, it clearly states the interest
paid for the employee contributes to his annuity, but it specifically says the sums paid in by the
city, with no mention of the interest that may be earned on the city's contribution. He said if the
city attorney can take the same information on essentially the same time period and show how much an
employee and the city would pay in under each contract and then at the end of five, ten or fifteen
years, etc., how many dollars does the employee get, not what interest is earned on the fund? Mr.
Bounds said certain assumptions will have to be made to project out that figure in the future. He
said if we assume that we are going to put a certain percent of salary and that salaries will be at
a certain level, there will be a certain interest rate on the monies earned in the fund, then under
the ICMA plan and under the TMRS plan, the employee will end up with the same lump sum at the end of
retirement because we are assuming the same contribution, the same salary, salary contribution rates
and interest earnings. Councilmember Green asked, however, if the interest earned on one - -the
city's portion -- doesn't necessarily go to the employee? Mr. Bounds said it is his understanding
that it does, and therefore, it is going to come out showing the same lump sum service credit at the
time one elects to take retirement benefits. Mr. Pipes said the booklet is a condensed version of a
very detailed contract document. Councilmember Green noted again the interest earned on the city's
contributions is not mentioned in the booklet. Mr. Pipes advised that can be verified in the
detailed contract document. Mr. Bounds noted the booklet also has other errors in it that have been
found. Mayor Monday said Mr. Bounds will be happy to address this question in writing.
1Interest data on ICMA is available. Since ICMA does not post annual interest on the total account,
a direct comparison with KCL & TMRS is inappropriate.
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 324
Q. What are
the City's options?
Answer:
While there are numerous options, the retirement committee narrowed those under
consideration
down to:
a.
Transfer the current 401a plan assets to ICMA -RC and have ICMA -RC administer the retirement
fund and plan; and
b.
Terminate the 401a plan and adopt a TMRS plan.
,3. What are
the advantages of each of the two options to the City employee?
Answer:
ICMA -RC has the following advantages:
a.
An employee becomes vested to 40% of the City's money contributed to his account after 4
years and vests to an additional 10% a year.
b.
The employee has a variety of investment alternatives that the City may permit him to use.
C.
The employee is entitled to a lump sum distribution of his moneys and the City's vested
portion upon termination /retirement.
d.
The employee may retire at any age.
e.
The City may at some time contribute more than 14% to an employee's retirement plan.
TMRS has the following advantage:
a.
The employee receives retirement credit for prior service with the city.
b.
The plan permits updated service credits during an employee's career.
C.
The plan permits cost of living adjustments in benefit schedules after retirement.
d.
The plan is portable to other governmental subdivisions of the State of Texas.
'4. What are
the advantages of each of the two options to the City?
Answer:
Both alternatives offer a single, dependable fund and plan administrator to the City,
competitive interest earnings on investment, and cost containment features to the City as
an entity.
'S. What are
the financial costs to the City?
Answer:
Based on City's recent experience and TMRS projections, the financial cost as a percentage
of payroll next year would be:
5% 6% 7%
2 for 1 2 for 1 2 for 1
ICMA 8.6% 10.32% 12.04%
% payroll
Cost (estimated)
TMRS 9.29% 11.11% 12.91%
% payroll
Cost (first year)
These numbers are not, however, directly comparable because the ICMA projections include
forfeitures while the TMRS projections do not. The TMRS projections are based upon the
f]
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P° 325
most conservative cost model because the Huntsville program would be a new program. It is
expected that the TMRS program costs would decline each year by about 1/2% until it
reached a rate slightly lower than that for ICMA's comparable plan (assuming no updated
service credit).
With the above noted qualifications, the first year increased cost of the 6% 2 for 1 TMRS
program with prior service credit over the ICMA 5% 2 for 1 plan would be about $80,000, and
about $37,000 more than a comparable ICMA 6% 2 for 1 plan.
106. How much of this cost is related to prior service credits? How much of that is related to the last
ten years?
Answer: The TMRS cost can be broken down as follows for the 6% 2 for 1 plan:
Of the 11.11% City cost, 6.33% is for normal service and 4.4% is for the prior service
credit. I [Bounds] would note that had the City adopted the TMRS plan in 1980, the 7% 2
for 1 plan would have cost the City 8.19%, 2.82% prior service and 5.08% normal service.
117. How do these costs compare to retirement costs of other local public employers?
Answer: Since the City does not participate in Social Security, its retirement benefit costs are
substantially less than other local public employers. Assuming an annual salary of
$25,000, SHSU pays 21.08% of salary to ORP retirement participants, TDC pays 19.6% of
salary to retirement participants, and Walker County pays 14.51%. The City's cost of
12.91% for the TMRS 7% 2 for 1 plan would be less than those.
118. Is the City required to terminate its 401a plan if it adopts TMRS?
Answer: Yes. By its own terms, the 401a plan terminates when the City ceases making contributions
to it. By state law, the City cannot contribute to TMRS and another employee retirement
plan. Upon termination, the City has two basic options regarding the assets of the 401a
plan. The City may distribute the moneys to the employees or the City may freeze the
account and distribute the money to the employee at the time they would normally be
eligible to receive a distribution.,'
COUNCIL DISCUSSION: Councilmember Bell asked if there has been enough time to get a feel from the
majority of the employees as to how they respond to this? He said he appreciates the recommendation
of the committee and he understands there was an overwhelming majority in favor of the proposal and
only a slight minority against it. He asked about the employees as a whole, however, including some
of the short-time people. Mr. Pipes, City Manager, said the city has tried purposefully not to poll
or tally a vote or get up any firm resolve or count heads on who is for and who is against on the
matter, because the city did not wish to create any circumstance or pressure or obligation, etc.
He said he did not want to get any employee's votes up or down or vise versa, but has tried to
disseminate information. He said this does not mean that this can't be done. He said there have
been some questions and some enthusiastic response. He said it is difficult to take a vote on
something that has as many variables as this does. He said if we were to take a vote, we would
almost have to start by saying who is in favor of staying with Kansas City and who is in favor of
getting out. He said most of the employees are probably very strongly aware that they haven't
gotten their last annual report that was due last fall, and there are probably a reasonable number
who are somewhat concerned about that, but the fact of the matter is that retirement matters are
supposed to be taken care of for the employee. He said once we eliminated Kansas City from
consideration and then started considering all of the areas, aspects, or impacts of the options
available under any number of plans, we arrived at the city's considered opinion. The purpose of
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 326
creating the committee in the first place, he said, was to analyze and sort out some of these things
to get it down to a more certified approach. He said beyond that, the ultimate decision rests with
the City Council. He said while the Council would appreciate the sense of where the employees are
as a group, he said, the problem with taking such a vote or getting such a straw poll, etc. tends to
cast a die in which the Council may not want to be. He said in order to avoid that or create a
situation of "us" and "them," the city would rather be in a "we" position and just answer all the
questions we can and provide all the information and realize that at some point in time we can't
make 200 employees all individually happy, but we do have to have the satisfaction and contentment
that we have answered all the questions and taken the necessary time and effort and expend the
effort to respond to any questions there are and then ask the Council for its best judgment. He
said if the Council would like, the city will try to structure such a straw poll or vote or some
sort.
Councilmember Hammock agreed with Mr. Pipes, as it is the Council's responsibility to set up the
retirement program it sees best for the employees. He said it means an investment of considerable
taxpayers money and while it may not be what the employees feel is best for them, most employees do
not have the ability to vote on their retirement system. Councilmember Belt noted the University
staff does have the option to vote on different retirement options that are made available to them.
Mr. Pipes noted, however, the programs made available to them were prescribed. Councilmember
Hammock said his main consideration is that this be a retirement plan and not just a savings plan.
Councilmember Hammock asked for more information about ICMA.
Mr. Bounds said ICMA -RC stands for the International City Manager's Association Retirement
Corporation, which is a non - profit corporation created in the Northeast United States for city
management type officials in that area that tended to go across state lines, who were looking for a
retirement vehicle for their people. He said it is a very large system, comparable in size now to
TMRS in numbers of people and dollars invested. He said Huntsville already uses ICMA as the
administrator of its Section 457 Deferred Compensation Program. Mr. Pipes said there should be no
reservation about the competency of the ICMA plan, noting the biggest difference, in the committee's
eyes, was the difference in a pure retirement program and what is basically a continuation under
ICMA of our current plan. Mr. Pipes said the concern is for the retirement pension aspects, not the
forced savings concern. Mr. Bounds said ICMA did not exist at the time the City adopted the Kansas
City Plan as it only began in 1982. Councilmember Hammock said the city would have the advantage of
rolling the 401a plan into ICMA, but it is just a continuation of a savings program and is not a
pension plan. Mr. Pipes said that is correct and once an employee retires, under ICMA, he would get
Lump sum distribution just like he would today under KCL. Mr. Pipes said all the problems we have
had would still be there. Councilmember Gaines noted we also would not have the portable time
element with ICMA that we will have with TMRS. Mr. Pipes said that is correct as we would not get
the bought back credit with ICMA.
Councilmember Bell expressed his concern for the retirement plan where one does not vest
for ten years as this becomes a bit burdensome, vesting 0% up to 10 years and for this reason,
ICMA's plan looks slightly more attractive to him. With ICMA, he noted, one starts vesting after
four years. Mr. Pipes said that is correct and that is what we have today with Kansas City Life.
He said it provides 40% vesting in four years. Councilmember Bell felt that seems more equitable to
him in terms of the employee. Mr. Pipes said it would be in terms of their own personal interest if
their career goals are not with the City of Huntsville. Mr. Pipes said the TMRS plan is the best
way the city can see, through a qualified pension program, to take care of all the employees, but it
does require ten years, because that is the only way to make it work actuarily.
Councilmember Barrett noted the new TMRS plan seems to be very flexible in that it is portable with
other govenmental entities. Mr. Pipes noted the EMS employees would benefit from the TMRS plan as
1
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 327
it is portable with other cities if they would decide to move as there are some 549 cities in the
plan and their job credits would be transportable, noting this is perhaps a greater asset than being
able to cash out and start over with another city. Councilmember Green noted this same statement is
true for ICMA and the ICMA plan can actually be transported to more places than TMRS.
Councilmember Green said he has somewhat of a problem when we speak of employee turnover, and ten
years, etc. as it concerns retirement, as he is not always sure, in every instance, that not having
turnover is a good thing. He said sometimes turnover gives the city some flexibility that it does
not otherwise have. He said he is not sure it is always great to encourage everybody to stay a long
time. Councilmember Barrett felt, however, that in the long run, it is costing the city more to
retrain new people. Councilmember Green said that may be true if one is trying to refill the same
positions, but the city may not always train the same as the flexibility allows the city to change
the jobs. He said one of the problems in a lot of institutions is not enough turnover.
Councilmember Barrett felt that the city does not have to keep people unless they are doing a good
job. Councilmember Green felt that it is not always easy to dismiss people in those circumstances
in some entities.
Councilmember Hammock felt we do have a real difference here in investing the city money in a
savings plan or in a retirement program. He said if we invest it in a savings program, then people
are and should be vested, but we do not have a retirement program. He said one should be vested in
his retirement program when he gets ready to retire, even though he might be vested before that, the
benefits should stay there until retirement comes. He felt we needed to keep this distinction
clear. He stated he didn't think it would be good service to invest the city's money in a savings
program and nothing in a retirement program, noting if we had social security or some other type of
retirement plan, it would be a different issue. He said he feels very strongly the city should be
involved in a "retirement" program versus a "savings" program that can be cashed out over a period
of time. Councilmember Barrett agreed that since employees do not have social security, they need a
retirement program they can actually live on and not just have to go out and go to work after they
retire from the city. He said they need something on which they can depend and one which they can
Live after retirement.
Mayor Monday felt this was another good discussion for clarification. She encouraged the Council to
get any other questions that may surface answered by the staff. She noted in the next couple of
weeks, this decision will be brought back for a decision. Mr. Pipes reiterated the city does not
want to force this issue until there is a comfort level about it.
GSU Joint - cities report
Mr. Pipes reported on a meeting held in Cleveland yesterday with the associated cities impacted by
the GSU rate increase. He said the meeting was hurriedly called last week to advise the member cities that
for the first time in anyone's memory, the flagship city of the Southeast Texas Gulf States Service region,
the leader in all of our prior history of contesting Gulf States' proposed rate increases, the City of
Beaumont, has opted not to join with the other cities in the combined effort. He said the reports in the
media have reflected various rationale for this decision, among which was that for years all of the smaller
cities had ridden Beaumont's coattails and now it was their turn to ride the combined cities' coattails.
Another rationale is that the combined cities were going to take care of it so Beaumont could afford the
luxury as an independent and just simply make the statement to the Commission that the whole system is
wrong.
Mr. Pipes said the impact of this particular finding is that while the combined cities had all
consented to join together to share the cost of the legal representation, the accounting and expert
witnesses necessary to put on a case, the population of Beaumont is a major portion of the service region
and they have always carried the lion's share of the cost. He said the preliminary headcount on those
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 328
ities already committed roughly are equivalent to the same number that participated the last time when the
ity of Huntsville opted out and bounced it on up to the PUC for their determination. He said there is a
igher number of cities representing the same number of people already committed to this particular course
f action, however, it was recognized that perhaps Beaumont would reconsider their situation and it was
ncouraged that the elected officials that are more appropriate to respond to the Beaumont situation be
ncouraged to contact Mayor Maurice Meyers of Beaumont and encourage them to resume their leadership
osition they have held for so many years. Mr. Pipes said he will keep the council informed, noting the
ity always has the option to reconsider its position of commitment and endorsement of the proiect. He said
f someone had not been carrying the banner, then the $320 million rate increase Gulf States had asked for
n 1986 would presently be in effect in its second phase and the current light bill would be about 40%
igher than what it is at the present time. He said it is the city's obligation to the citizens and
atepayers to keep some balance in this matter. He said the City of Huntsville, however, can ill afford to
e put into a position of carrying a disproportionate cost even though Huntsville avoided the costs the last
ime around. Mayor Monday said she has asked Mr. Pipes to evaluate this with the other cities and look at
hether or not there would be a monthly pay back and what the impact would be on Huntsville's contingency
unds, what is the projected pro -rata according to who is going to be in or out, and bring that financial
nformation back to the Council. Mr. Pipes said he will be providing that soon.
Mr. Pipes also said that the office of Jim Broyle advised that on April 27, the Travis County 250th
udicial District Court, with Judge Clark, will be considering the $1.4 billion prudency issue with River
end and whether Gulf States should have a second opportunity under the rules to have the Public Utility
ommission consider those costs. He said it is a legal position on the matter on behalf of the cities is
hat the company was afforded the opportunity and failed to prove the $1.4 billion cost of River Bend in
he initial hearing and they should not be given two opportunities to argue the case and therefore it has
een appealed to the District Court in Travis County.
Mr. Pipes advised on May 9 there will be a public hearing concerning the services being provided by
current Telecable Franchise holder. He noted the current franchise Ordinance is being reviewd for
oal and this hearing is required prior to negotiating a renewal on the franchise ordinance. He advised
current franchise holder, Texas Telecable, Inc., has submitted a request for consideration of this
aal. The Council wass advised the franchise ordinance is due to expire in 1991.
Mr. Pipes presented the current status of the building activity in Huntsville, noting from October,
987 through April 20, 1988, there were 72 commercial construction permits issued for a value of $1,482,975.
or the same period this year, he noted, there have been 44 commercial construction permits issued for a
alue of $1,936,855. He said there has been about a $500,000 increase in the value of building permits for
ommercial construction this year. In addition, he said, there were 40 permits for five units in
esidential construction totaling $389,222 last year. He said this year, there are 63 permits or a total of
units, for a total of $510,106, or right at a little over $110,000 in increased building activity in
esidential permits this year. He said things are beginning to look up in the permit activity department,
hich has always been a good barometer for economic activity.
MAYOR'S ACTIVITY REPORT - -JANE MONDAY
Mayor Monday advised the City has been notified that its application for a $331,614.00 sanitary
extension project grant has been approved by the State of Texas. She then read from a news release
red by City Planner, Mr. Dale Brown, as follows:
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 329
". . . Huntsville was ranked third out of 39 applicants in the Houston - Galveston regional allocation
for the 1988 Texas Community Development Grants Program. The top ranking applicants in the fourteen county
H -GAC area will share in award of approximately $3 million in grant funds from the state.
"The Huntsville funding will be used to construct sanitary sewer improvements for three
minority- low /moderate income neighborhoods of the city. The city will provide all administrative,
engineering and inspection services for an additional cost of $82,462.00 with a total combined project cost
of $414,076.00. The project will benefit 150 persons, of whom, 93 percent are low /moderate income and 100%
are minority. These 150 persons will be connected to the city sanitary sewage collection system for the
first time.
"The City proposes to construct the sanitary sewer improvements in the project area over an 18 month
time period. These improvements are part of the Master Plan for the wastewater collection system for the
City of Huntsville which incorporated the City's policy of providing sanitary sewer to unserved areas within
the city limits. The sanitary sewer improvements will encompass the construction of approximately 6,175
Linear feet of 4" sanitary sewer stubs.
"Neighborhood 1: FM 247 (Midway Road)
"The FM 247 (Midway Road) neighborhood is located in the northcentral part of the City of
Huntsville. The area has been in the city limits of Huntsville since 1973. The neighborhood was developed
approximately forty years ago while the area was still predominately rural in nature. Provision of public
utilities has been difficult due to land across the highway from the project area being state owned (Texas
Department of Corrections). The door- to-door survey conducted as part of the grant application provided
more specific information on the persons to benefit from the proposed project. The estimated population of
Neighborhood 1 is 29; 100 percent are black, 80 percent are classified as low / moderate income..
" Neighborhood 2: Watkins Street /RVans Ferry Road
"The Watkins Street /Ryan Ferry Road neighborhood is located in the northeastern part of the City of
Huntsville. The area has been in the city limits since 1949. The basic character of the neighborhood is
Low/moderate income minority (black) and it was established prior to annexation. Some additional
residential construction has occurred in the last thirty -five years but primarily the structures present
were in existence at the time of annexation. The door- to-door survey conducted as part of the grant
application provided more specific information on the persons to benefit from the proposed project. The
estimated population of Neighborhood 2 is 57; 100 percent are black, 97.9 percent are classified as
Low/moderate income.
"Neighborhood 3: Pine Hill /Montgomery Road (FM 1374)
"The Pine Hill Road /Montgomery Road (FM 1374) neighborhood is located in the southwest part of the
City of Huntsville. The area was annexed to the City in two annexations in November 1980 and January 1981.
Except for a couple of mobile homes that have recently been located in the area, all iesidential structures
date from between thirty and forty year ago; well before annexation. Like the other two neighborhoods,
Neighborhood 3 is 100 percent black and 87.3 percent low /moderate income."
Mayor Monday commended Mr. Dale Brown, City Planner, noting when we combin, this grant with the
airport grant, Dale Brown, our grants writer, has facilitated our receiving nearly a milt 4n dollars this
year in outside funds. She said this is exceptional and this is what we need to ix- doing in Huntsville in
bringing those outside dollars into the City. She said she is also very proud of the fact that we will now
be able to provide sewer for these particular areas which has been a goal of the city's in its capital
improvement program for some time. She congratulated the staff and Mayor Pro tem Howard and Mr. Date Brown
for their efforts.
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 330
Mayor Monday advised before the 1989 Legislature convened, she had visited with Representative
ightower about the possibility of some new legislative action which would allow the city to use land the
ity already owns, that is not now dedicated park land, as the city's match for a state of Texas matching
rant for state funds, to complement some of the projects the city has on the drawing board.. She advised
he law currently states if the city already owns the land, even if it is not dedicated park land, it cannot
ffer it as a matching grant for funds out of the state. She said Mr. Bill Baldwin of the Texas Parks and
ildlife Department called her to say that at this time there is no way to do this. He advised he envisions
he legislation will not be successful and the law, as it exists now, would not allow that to occur. City
anager Gene Pipes noted, for instance, if the city added to Ross Park some of the adjacent airport
roperty, which is just there in the clear zone, it is not eligible for grant match because the city already
wns it. Mayor Monday said if the city has a private individual that wants to donate land, the problem we
ill get into is that if the city wants to use that land as a match, and the citizen wants to donate it, the
ity cannot accept it before it applies for the grant or the city will then be caught in the rules of not
eing able to offer land it owns as a match. Mr. Baldwin recommended the city provide for a non - profit
ntity to accept that land and hold it for the city until the time the city could then utilize it with a
rant, Mayor Monday reported. She said the staff may be coming back to the Council with a ricommendation to
o that to utilize both for green space purposes as well as parks purposes. She asked the Council to expect
his and to know that this project is under consideration. She said this information will be taken to both
he Parks Advisory Board and the Open Space Action Committee to see if they will entertain the idea.
Mayor Monday asked the Council representatives to the Tourism Committee to remain after this meeting
a brief meeting.
Mayor Monday advised during the East Texas Folk Festival she had the opportunity to be involved in
he videotaping of the family members of Sam Houston, arranged by Dr. Elliott T. Bowers, President of Sam
ouston state University, to capture their remembrances of the Sam Houston family. She said five family
embers were in Huntsville; three descendants from Margaret Houston and one from Mary Willie, and one from
emple. She said Dr. Robert Eubanks, Head of the Radio, Televison & Film Department at SHSU, did interview
hem after the East Texas Folk Festival Parade on Saturday and the taping went on for almost one and
ne -half hours. She said she hopes this will be the beginning of some very interesting archival material to
e at Sam Houston.
Mayor Monday said she did attend the Solid Waste Committee Meeting wherein the discussions were to
ing the two new commissioner's court members up -to -date concerning some of the activities in which the
Tmittee was involved over the last 18 months. She said they talked about different concepts of recycling.
specific information came out of the meeting, she said, but the new members were able to become familiar
general terms.
Mayor Monday noted the TDC task force is continuing to meet on a possible proposal, but there are
iot yet specifics concerning a request for proposals for a new prison unit in Huntsville to report at this
Ame.
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MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P° 331
Mayor Monday advised she did have the opportunity to make a presentation to the Sons of the War c
1812 at Sam Houston's grave where they marked that grave. She said this group was also very interested i
the Prison Museum and it was arranged for the Museum to be opened especially for them that afternoon t
tour.
SHSU's Freshman Leadership program
Mayor Monday noted she spoke with this group in general about Huntsville and the city government
its involvement.
U.S. Senator Phil Grams
Mayor Monday noted she had an opportunity to meet Senator Gramm and to take him into the Festiva
and to visit with him. She said he had just announced his crime package the day before and that was a topi
on his mind. She said it has a great deal of influence on this community and this was discussed at lengt
with him. She said she will share this information with the Council, but it was covered well in th
Huntsville Item story.
Commendation to Police Department
Mayor Monday read a letter of commendation from Mr. Len George to the Police Department, especially
the assistance and leadership of Chief Hank Eckhardt and Lt. Mark Pemberton, concerning security, traffic,
parking areas and transportation plans and the planning, coordination and enforcemermt of those items during
the East Texas Folk Festival. She said he lauded the smooth and efficient operation of the festival
directly reflects on the skill with which Huntsville's Police Department responded. The Mayor congratulatec
the Police Department and all the other city employees and members of the City Council who worked with the
Festival volunteers in carrying out the work which allowed this Festival to be so successful.
Economic Development Committee Meeting
Mayor Monday advised she met with the Economic Network Committee at noon yesterday and t
discussed a general wrap up on the festival and what was going on there.
COUNCIL ACTION
Advance Notice on Agenda Related Items Requested
Councilmember Barrett requested that the City Manager refrain from providing information right)
before the meeting on which he expects the Council to vote. He said he can understand unavoidable)
situations from time to time, but he would like for this type of situation to be kept to a minimum. He felt
some of these items should have been included in the overall plan; i.e., structural engineering and soil
testing, which should be included in the original amount. He said he did not know why it costs $1,500 to
wash someone's hands. He said he likes to be able to ask questions and note things before he votes on them.
Mayor Monday felt it would certainly be appropriate to go back and answer those questions now. Mayor Monday
asked the staff to bring back the answers to these questions next time. She asked that if there are any
other questions, they should be given to the City Manager for response.
City Clean Up Crews
Councilmember Gaines expressed her appreciation to the city's clean -up crews for doing an excellent
job in making the city look good for the Festival. She said she and Councilmember Bell had the opportunity
to show guests around on Sunday. She said Colonel Carroll Lewis, Head of the Texas Army, wanted to see more
MINUTES OF THE CITY COUNCIL MEETING OF APRIL 25, 1989 BOOK "P" 332
of Huntsville. She said he was impressed with the unity of the people that had come together to make the
folk festival happen. He was apprised of the things the community is trying to do here, she said. He is
also interested to know if there might be an old house for sale here. She said they pointed out several for
his consideration. She said in visiting with people from outlying areas, she received no negative comments
and everyone was very impressed. She felt the city put its best foot forward. She said it was definitely a
corporate effort on the part of the City of Huntsville.
Big Tree Contest
Councilmember Carter encouraged the local media to become aware and publicize the biggest tree in
Huntsville, a post oak, located at 7th Street, which could perhaps qualify as the State Champion under the
guidelines in the Big Tree Program. He said it has a 90 foot span at the crown and it is a 13 foot tree
around its girth. He said it is in the curve of 7th Street in a yard on Mr. Harvey Vance's property at 609
7th Street. Mr. Howard said it is near the end of 7th Street as it turns west near the cemetery off of
Avenue F behind the HISD track field.
Environmental Utility Policy -- application on 10th Street
Councilmember Carter advised he visited with the owner of the tree that was taken down on 10th
Street recently, and this owner is apparently not happy about the way this was done and the renters also
expressed their unhappiness. He was concerned that perhaps sufficient alternatives may not have been
presented to them. Mayor Monday noted if there is a problem with the City's environmental utility policy,
it can be amended or if the policy was violated in any way, it should be reviewed. Mr. Pipes referred to
the minutes of April 11 wherein Mr. Wilder advised the renter had indicated to the city crew that he was
pleased with the way the project looked when completed. Councilmember Carter noted the city may wish to
contact the owner and renter again to visit about the matter.
EXECUTIVE SESSION
Mayor Monday advised there will not be an executive session following the regular meeting, as
originally posted.
ADJOURNMENT
Respectfully submitted,
\ _--�I truth DeShaw, City Secretary
April 25, 1989