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MIN CC 06/27/19891 HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 405 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 27TH DAY OF JUNE, 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 0. Eugene Barrett City officers present: Gary Bell 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. CITIZEN INPUT Mayor Monday then opened the citizen input session, noting three citizens have registered to speak. She asked if anyone else is present who wishes to speak they should complete the citizen inquiry registration card and present it to the City Secretary. Clyde Lavelle, 2013 Avenue 0. 295 -6184 Mr. Lavelle advised that many of the City's policies sound good in theory, but are not carried out that way in the real world. He said when the crews go out on their jobs, things are not always done according to the way the Council expects they are to be done. He noted Mr. Pipes stated last week that the redbud trees that were cut were in the city street right -of -way; in actuality, only one of them was in the street right -of -way and the other six that were cut were on park property 15 feet away from the curb. He said the property line there is 8 feet from the curb. He noted Mr. Pipes made a statement at the City's Parks Board Meeting one evening that the Gibbs family was given their ten day notice letter. He said this was a misstatement because the Gibbs' letter was sent after his letter, Later in the day and he only received a four day notice, so they were both given only four days notice. He said then all of these things the Council says, about a ten day policy, trees, etc., are not really the way it is in the real world. He said Mr. Pipes continues to make the issue whether the residents want water lines or not, and this is not the issue as none of them will disagree that the water pressure is very bad. He said Paul Ruffin's house and his have the lowest water pressure of anyone in the city and they are not arguing whether they want the water lines or not; they are saying they simply want to save some of the trees. He said they do not say that all of the lines have to be run in the street. He asked that the issue not be clouded by trying to make them appear to be against water lines as was done at the picnic. Mr. Lavelle said the very next morning after a city council meeting, wherein Councilmember Bell asked the residents to trust the City Council in that the city would do better than the residents really expected, there was a crew of five people cutting redbud trees in the city park. He said his conservative figures estimate that the men were there three and one -half hours and there were five men, excluding the time of the two supervisors, who came over later and stood around for an hour, nor Mr. Poteete's time, nor the two vehicles that were tied up all that time and going to the city dump to dump the redbud trees. Just the manhours for the crew that was there cutting park property, when they were supposed to be on the other side, comes to 17 1/2 manhours at $4.00, or $70.00, he said, and if we take the other things into consideration, probably it is closer to $150.00 of the city tax money that was spent cutting redbud trees in the park. He said the city passed this off casually last week and sit there and smirk right now as it was an accident and it was unfortunate, but it was an accident. He said he is sorry, but they paid tax dollars to have the redbud trees cut out of the city park and he disagrees with this. He said this shows extreme inefficiency of management of our tax money. He said he did not understand why the crews were there with chain saws in the first place if they were to clear brush, etc.; why were they given chain saws and why did they not stop when they were asked to stop. He said Mr. Pipes indicated they stopped immediately when they were asked, but that is not the case as it took him an hour to get them to stop. He said the whole time, the Mayor, Glenn Isbell and Gene Pipes were in a meeting, none of whom ever returned his calls that day. He said Mr. Poteete was the first one to answer his call and come. HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 406 Mr. Lavelle felt what the City Council does not understand is that these crews really do not have he expertise if they were sent out and given a policy to clean the trees out of the banks and the trees hat are in the stream beds. He said he has asked a couple of City Councilmembers to come to look at the ituation as it is now. He said there is one big willow tree and if it comes out of the center of that tream bed, the erosion problems are going to be twice as bad and it does not stop the flow of water now; it hannels it just as well as an embankment would. He said if it is removed, it is going to totally change he course of the stream and erode the whole bank behind it. Not only that, he said, the drainage study the ity made him do, that cost over $3,000 a year ago, shows that the 100 year flood level in that creek is m y four feet. None of these redbuds, he said, were within the four foot 100-year flood level of the creek ides there because of mismanagement. He said it seems to be a joke with City Council and with city anagement that it was a mistake and it was unfortunate, but because of that, we have not only lost the edbuds, but now the bank is going to erode. He said if the council will bother to come over there and look ike several of the City Councilmembers have, they will see what a big erosion problem they have there at hat creek. He said they have not had flooding and have never had flooding and will never have any because hat creek is so big and huge, not because of the volume of water that goes through it, it never carries ank top water like the Town Creek does here where it is 20 feet deep; it only carries four feet in a 100 ear flood. Because of the erosion problems, he said, it has washed out a stream there that is huge. He aid the Council should not be misled into thinking that creek carries a huge volume of water and that these rees are in the way. He said he wants Councilmember Gaines to realize that if the stream beds are cleared pstream like this, that water is going to get down to her area twice as fast and there will be more water oming down to her area instead of absorbing in slower. He said she has not seen any flooding yet compared o what she will see if the city clears those banks upstream, not to mention the sitting-in that will take Lace from the erosion and this will just make the flooding in her area and in the Town Creek area much orse when it silts in from upstream. In short. Mr. Lavelle said what bothers him is that the city's policies sound real good but in eality they are not what really happens with the city crews. He said he wished the city's policy could be arried out as the people would not be so scared and afraid of the City Council if things would really appen the way they say they will. He said the Council says it is going to be sensitive, etc., but people re afraid of what the city management is going to do. He said there is no confidence in the city anagement; there is no confidence in the city crews; not because anything the people have done, but because f what the crews have done repeatedly. He said if the city's policy would be carried out and logical, ducated people were running it, instead of somebody who accidentally gets on the wrong side of the street nd clears and somebody who accidentally spends tax money to cut down redbuds, and somebody who accidentally akes the banks there erode worse - -all of this we pay tax money for and it just doesn't make sense. He felt here exists great reason and great cause for citizens to have a lack of trust and confidence in their city dministration. He felt it was up to the City Council to see that in reality things are really carried out he way they want them carried out and to gain that confidence and trust back which it does not have now. Ms. Delaney advised she has additional concerns to express. Her first concern was regarding the tizens inability to obtain a "free" copy of the city council meeting minutes She said this may be a nor thing to the Council, but it could be somewhat prohibitive in terms of communicating with residents cause not everybody has the financial resources that she has that would enable her to come down to pay to ve the minutes duplicated. She said she would like for the Council to consider a policy which would make certain number of copies available free to the community as this would enhance communications. Ms. Delaney noted the main issue she wishes to raise again is that of strengthening the tree policy said the Association now perceives the tree policy currently really as a "notification" policy and feel HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 407 it does not have information specifically addressing how the trees will be handled. She said they know the Council is planning to work on this and to meet with staff, but they ask that the Council seriously consider revising that policy and strengthening it in terms of dealing with trees and what types, sizes, location, measurement of trees will be preserved. The Council was advised by Ms. Delaney that the Association feels the 10 day notification policy is not ample time for notification in this community, considering the number or residents that have university schedules, public school schedules, that are likely to be gone for vacation periods, over spring break, Christmas, several weeks in the summer, etc. She said they feel a notification policy of 45 to 60 days would be more appropriate as it would enable all of the residents to have ample time to return should the be gone on vacation and to investigate the intended work of the city. She said they feel this would be more appropriate and they would like for the city to consider this. The Council was also requested to investigate the "Urban Tree Preservation Bill" presently in Congress [which stands a very aood chance of being passed] because there are funds that will be allocated on this as incentive grants to communities to preserve trees. Ms. Delaney noted perhaps the City, in conjunction with the University, could apply for some of those funds so that there can be a pool of resources so as to better facilitate the hiring of an arborist and doing other things that they know the city would like to do. Ms Delaney advised they also wish to be made aware of the city's intentions in terms of responding to the issues raised by the Antiquities Commission by direct contact or through announcement at the City Council Meeting etc and perhaps the Association members would be permitted to view copies of the correspondence that would take place between the city's lawyer and the Texas Antiquities Commission regarding that issue through the public records act. The Council was again urged to took at two areas about which the Association expressed concern two weeks ago: the 10th Street area right of way and the corner of 16th Street and Avenue 0. She said she personally feels the Mayor and Council, as individuals, are sensitive and responsive to the things the Association is expressing, but maybe they are really not aware of how things have been done around the city. She felt that seeing asphalt cement rubble and dirt and weeds in the city easements where the street work has been done would help them to understand their position even better. As a private person, Ms. Delaney then advised she lives at the corner of Avenue P and 19th Street, up several blocks from where the creek bed incident [clearing] took place. She said she has a concern about clear cutting [while she shares the environmental concerns because they are legitimate in terms of the vegetation in the creek beds carrying and channeling the water and helping it be absorbed as opposed to letting it flow through], because as a parent of an eight and a five year old, the elementary school is only one block away from that creek bed and until that creek bed was cleared like that, the kids didn't even know there was a creek bed down there. She said there is now about a 20 foot drop into that creek bed that is open from the road and visible. She noted today as she drove home she noticed two little boys down there. She said she is just waiting to see when we are going to have our first accident in that kids now have access off of a main thoroughfare into a creek bed. She said she hopes the city will address this because as a parent, she is concerned if the city clear cuts all of the creek beds, they will be putting our youngsters at risk. She said little boys and girls are very curious and if they have direct access to a thing like this, because it is open and it is enticing, we are putting them at risk. She asked the Council to consider this when they consider the policy. Bonnie Strub, 1918 Avenue N Ms. Strub said she is anxious to hear the reply to her questions of last week. She said before any decision can be intelligently made, information on which to base that decision must be gathered. She said at least one family is planning to have an appraisal of their present property value done as well as an appraisal of their property value if the trees in jeopardy are removed or die. She said whether market HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 408 lue or the IRS formula listing the value of various trees is used, a substantial devaluation will occur. e said if enough homes are devalued because of our capital improvement program, Huntsville could suffer a op in tax revenue over a long term basis. She said all factors affecting the tree issue need to be nsidered before a policy can be made to deal with the issue. She said Mayor Monday deserves praise for r determination to treat all citizens of Huntsville equally and at the same time not bankrupt the city. e said this is a tall order and a heavy responsibility. She said keeping 100 percent of the population ppy is impossible. On the tree issue, she said, the Mayor and Council are between a rock and a hard ace. She noted perhaps another criteria for deciding where to lay the water pipes would help. She said ditting carefully estimated cost factors in each separate area helps to decide which procedure or ination of procedures to use. She noted removing large trees is expensive, even if the city crew does e work, especially if stump removal is involved. Accurate cost estimates for each circumstance countered throughout the city could be a key to making the plan work, she noted. Losing many large trees well as beautiful landscaping by using sidewalk installation and later finding that the actual cost ran igher than street installation is sad indeed, Ms. Strub advised, especially if Huntsville loses tax revenue e to property devaluation besides. She said on University Avenue, where no trees were involved, using the tideivat walk area is un uestionabl most cost effective. In other areas she said the added cost of tree work plus possible loss of tax revenue from devalued property, may well make using the street more ilost effective. In many cases she noted overhead wires may complicate the safe removal of trees and add the cost of the job. One more proposal to consider, Ms. Strub said, would be to protect large trees which are the only urce of shade for an entire yard as well a mature fruit and nut trees used as a food source by the sidents. She said perhaps the above measures would be enough under the present economic circumstance, but is may be a category worthy of special attention. She said keeping as many big, old trees as possible lso adds to the overall charm of our city. She said this little old fashioned town feeling will continue encourage our growing tourist industry. She said in this aspect alone, our trees are a valuable asset to Many of our local businesses. Whenever costs are the same or nearly the same, she noted, the Council could t lic to dictate using the street installation to reserve as much of our green space as She aid if the possibility exists that even using the most cost effective measures possible. the capital rovements plan could go over budget due to unforeseen circumstances of spiraling inflation. She said if nother referendum becomes necessary to finish the lob, the outcome could be affected by Council's actions ow. She said a distrustful public would not be Likely to give approval. She said people who are confident n Council's competence will be far more likely to approve of sharing any over - budgeted expense. Ecological actors have already been well- covered by forestry expert, Mr. Bill Carroll. She said the points he made st also be kept in mind, especially the job the trees do in reducing pollution by filtering our air and arboring wildlife. She said mosquitoes do not need trees to survive, but the birds who eat the mosquitoes o. Even considering only the economics of getting the job done, she said, perhaps allowing most of the reel to stand will prove more, or at least cost - effective, as removing them. She said when all pertinent actors are considered, saving them may well prove to be the best solution. She said applying the above ormula throughout the entire city would assure all residents of Huntsville equal treatment. She said the ity may even be able to save many of the trees and money too. She asked the Mayor and council to please onsider very carefully before removing a part of Huntsville's heritage. FORMAL SESSION Mayor Monday then called the formal session to order. Reverend David Shirley of the Grace Baptist hurch then presented the invocation. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmember Barrett made the motion to approve the minutes of the City Council Meeting of June 13, 1989 and Councilmember Howard seconded the motion. All were in favor and the motion passed unanimously. 1 1 HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "p" 409 ATTENDING CITIZEN Mr. John Smither to discuss the continuing operation of a Farmer's Market Mr. Smither advised this project started off as a summer job for him, but soon grew to a full -tim job. He said his former history teacher, Councilmember Bell, asked him what the city could do for th Farmer's Market effort. He said the city has already done quite a bit. He thanked the Mayor and he associates, as well as the newspaper and radio media, for helping him get the Farmer's Market started noting they have all been very supportive. He said the original intent for the use of his family's Propert Located on the west side of I-45, just south of the Highway 30 overpass, was to create a Canton styl outdoor market. He said after living in Dallas for approximately four years and knowing the success c Canton, he thought Huntsville could have the same type of situation right here on I -45. He said it is better location and is close to Houston and Huntsville itself is a nice -sized community and the way th Huntsville and Walker County area is growing, he felt Huntsville would be a good place for a Canton styl market. He said as he began to look around, he visited with Bettye Nelson at the Bluebonnet Square store who advised she had been working with the Mayor on a committee to look for a site for a Farmer's Market. H said he then contacted the Mayor who met with him and it was decided this site might be just right for th Farmer's Market. He said the next Saturday the farmer's met there and sold out of their products by 9:3 well. He said the farmers participating consist not only of 6 -7 true farmers, but people who have larg backyard gardens as well. He said the city can help by encouraging the farmers and the agriculture industr in general. He said in terms of the outdoor market he envisions people coming off the freeway that woul bring money into Walker County by buying Walker County produce crafts products or antiques, etc. He sai he feels this whole project could benefit the city. He said he would like to see charities become involvec In one of the meetings, he noted, it was suggested that charities could have plots of land at the farmer' farmer's market. After visiting with his family, he determined this is the kind of project that will wor in economic times we are currently experiencing; noting while taxes are being paid on the land, no one wF currently obtaining any use from the land. He felt this type of use would be good for the whole community. bringing people in for that as well as the farmers having a place where they can sell. He said he woul like to provide for a place where everyone can make some money and to work with the city to generate income He said he is not aware of how the city can really help, but he is ready to answer any questions the Counci has at this time, noting he is open for suggestions and ideas. Councilmember Barrett said he feels Mr. Smither has done a marvelous job coordinating this prof with his family, the city and the farmers. He said the city has looked for someone like him to have initiative to get out and do this. He congratulated him. Mayor Monday said they share a dream here, noting they started working about a year ago, with th idea of trying to bring truck farming back to what it used to be in Walker County as an economically viabl industry. She said nothing breeds success like success. She said the example this summer of farmers beir able to go out there and sell their produce will hopefully encourage others to do the same thing. She sai of someday we will be actually canning and processing here in Walker County as a regional center. She sai this is the dream and it may be that Mr. Smither can help them take the first step. She was hopeful thing will now just go forward. She said the Council is there to brainstorm with him. She then recognized Betty Nelson who was in the audience, noting she is really the one that got this thing started. Bettye said i takes "networking" and passing an idea on to another. Mr. Smither invited everyone to come out to th Farmer's Market Saturday morning, but to come early. HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 410 CONSIDER REPORT Consider a report by T.P.F. & C. (Towers- Perrin). Mr. Paul Cascio. C.I.S., analyzing the city employees' retirement plan options, as requested by City Council Mr. Scott Bounds, City Attorney, then introduced Mr. Paul Cascio. Mr. Bounds advised about a month ago, the Council asked that the staff employ someone to help evaluate the city's employee retirement committee's recommendations. Mr. Cascio said he plans to summarize briefly what is in his report. He said the purpose of their report was to identify the key differences between the two alternatives that have been developed by the employee committee and to highlight these differences so that the Council could make a decision on what made sense for the city. He said the purpose was not to make a specific recommendation. so he has not made one. He then summarized what they understood the proposal by the employee committee to be. He said the committee, as they understand it, has recommended the current pension trust be terminated with 100% vesting of current account balances and distribution of all accounts; participants would be able to roll over their accounts into an IRA to avoid current taxation. Secondly, the committee recommended to adopt the Texas Municipal Retirement System Plan with a number of optional features, including a contribution rate of 7% by the employees, a city matching contribution basis of two for one, 100 percent vesting after 10 years of service, retirement at any age once the employee has 25 years of service, or at age 60 if the individual has 10 years of service, and certain disability and death benefits that are optional in the program. He said they understood the Council has indicated an interest in the 6% contribution level as well as the 7%. He said in their report, they have identified what they see as the advantages and disadvantages of that program as well as the other program that has been considered, which is a defined contribution, money purchase pension plan with an organization known as I.C.M.A. He then summarized the key differences between the two that they have identified in their report. Mr. Cascio said the "cost for the participation" in the TMRS has been estimated by their actuary to be initially 11.1% if the 6% employee contribution level is adopted This compares with a cost for the ICMA Program initially of 10.3 %; initially the TMRS would involve a somewhat larger city contribution. He said the pattern of cost over the future years, however, would be expected to be different between the two programs; the ICMA program would be expected to be the same level of costs over time as long as the pattern of termination rates among the work force didn't change; whereas the contribution rate for the TMRS would be expected to decline over time somewhat. He said there has not been precise estimates of how much it would decline; part of the cost is amortizing a past- service credit. If the period over which that is being funded would be 25 years; this represents 4% of the 11.1% city contribution. He said after 25 years, the city contribution rate would be expected to drop to 7%, but they have also indicated they have used early conservative projection for future turn -over on the work force and that after the city has participated for two or three years, they would anticipate adopting a turn -over projection which is more realistic and that should produce also a lower cost. He said what they would expect with the TMRS is to start at about 11 %, and after two or three years, see that drop maybe down to 9 or 10% depending upon the level of turn -over and then stay at that level until 25 years of participation, at which point it would drop perhaps down to 7%. He said this all assumes that there will be no changes in the program that could otherwise be elected by the city, such as cost-of- Living adjustments or past service updates. Mr. Cascio said the second key difference is the "ability to invest funds.,, He said in the TMRS there is absolutely no flexibility given to employees as to how the monies are invested He said the funds are invested by the system in a variety of government and corporate securities. For ICMA. he said. there are four alternative investment funds that are made available to employees He said they may select how they'd like their funds to be invested with alternatives ranging from a guaranteed fund where the rate of interest to be paid is guaranteed for the year, to the other extreme, a fund which would invest in common stocks and involve a little bit more risk and possibly a little bit more reward. He said the employees 1 1 HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1969 BOOK "P" 411 would be given a choice with ICMA to select how much risk one would like to undertake in the investment of the assets. "Vesting" is a third area where the programs differ. Mr. Cascio noted, under the -MRS. the earliest vesting that is permitted would be no vesting until an employee would have ten years of service and then the individual would be 100% invested in city contributions at that point. Under the ICMA alternative, he said, there would be flexibility to set the vesting schedule however the city likes. He said he understands the discussion has been around continuing the current vesting schedule if the city were to go in this direction, which involves 40% vesting after four years of service and then 10% additional for each year thereafter until an employee is 100% invested after 10 years of service. The next comparison made is the "determination of the benefit itself." he said, and the key difference here is that in both systems the amount of funds deposited by the employee over his career would accumulate with interest earnings be matched by the city's contribution on a two for one basis. and any interest that would be earned on those funds and those funds are made available in some form or another to the employee upon retirement: however the kev difference is that in the TMRS there is an additional benefit This benefit relates to past service credit he said that would be given to employees currently in the work force and essentially would consist of approximately the amount that would have been accumulated in their accounts had the city been participating their entire career in the TMRS. He said there is this additional benefit that would be added under that approach that would not be available under ICMA. In regard to the "form of benefit." Mr. Cascio said under the TMRS there are a number of alternative forms of annuity that would be available most of which involving some death benefits of some sort upon the death of the retiree perhaps continuation of a benefit to the spouse perhaps a continuation of a benefit to the estate or to a named beneficiary, but there is no alternative to take the benefit in the form of a lump sum He said this alternative is currently available and would be available under the ICMA plan. Mr. Cascio noted in the area of "death and disability." without getting into details of exactly what is provided the benefits available under the TMRS are generally a little bit better than what would be available under the ICMA system. "Administrative expenses." Mr. Cascio noted, the TMRS, being such a large system and having a large base of assets over which to spread its operating expenses, is considerably more efficient in that it charges a far smaller administrative expenses. He said they have estimated that for 1987, the operating expenses which are paid out of gross investment earnings of the system were only 1 /10th of a percent of the fund assets. In the case of ICMA, however, he noted, expenses are charged at a full percent of the account balance each year or ten times effectively as much plus there is a $12.00 per year account charge. Mr. Cascio noted these are, in summary, the key differences. Council Questions Mayor Monday asked the Council for any questions they may have. She noted some members of the Council were able to meet with Mr. Cascio earlier today to review his study and to ask questions at that time. She asked if the councilmembers who could not be present earlier had any questions now. Councilmember Barrett asked if this information basically tells us that the TMRS is a real retirement plan whereas the other plan (ICMA) is more of a savings type plan. Mr. Cascio said the TMRS would certainly be viewed as a more traditional type retirement plan because of the fact that the benefit is in the form of a pension - -a monthly annuity; whereas the ICMA plan, because of the lump sum option, may well be used as a retirement plan as a person may take this and buy an annuity upon retirement or he can also use that lump sum for another purpose, and in that sense, it can be viewed as a savings plan and not as a pension plan. Councilmember Barrett noted however there is not as much potential in the ICMA plan as far as HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 412 benefits if an employee stayed with the city a long time and was planning to retire after 25 years. He asked if Mr. Cascio sees there is more potential in that event with TMRS to accumulate more funds for the employee. Mr. Cascio said this is true for a current employee, because of the past service credit. For someone hired in the future, he said, both systems offer a comparable potential, the key difference being as to how much will be available when they retire being the differences in the investment earnings of the two funds as well as the administrative expenses of the two funds, but both would have the same city contribution and employee contribution as related to an employee hired in the future. Councilmember Gaines asked if she understood from the afternoon discussion that in regard to the cost contribution that it would be reduced to 7% ultimately if the city did not elect to give cost of living increases nor the buy back option. She asked if it would remain the same throughout if the city elected to do that. Mr. Cascio said that is correct. He explained the TMRS has the option whereby, from time to time, a city may improve the benefits that have been earned in the past by what is called a "past service update," and at the same time they may grant a cost -of- living adjustment to people who are already retired on this system. He said it is completely optional whether the city does this a a city, but it it does take advantage of this, the pattern of contribution would be somewhat different than he described and would be expected to probably be pretty much level over time staying at the 11.1% level he described indefinitely. Councilmember Green said he needs clarification on a point made this afternoon, noting, if, in fact, the updated service credits were made by the city, it would increase the city's costs, but this would not necessarily translate into increased benefits for the employee because the interest rate at which that is credited to the account. Mr. Cascio said it would, for most employees, result in increased benefit. He said the point he was making this afternoon was simply that it would not necessarily result in an increased benefit for every employee. But, he said, if done consistently over time, it would be expected for most employees to result in a bigger benefit. Councilmember Green said it is not clear to him why it costs the city a good deal more to do that then not automatically translate into increased benefits. Mr. Cascio said when the city does this, they do two things: giving a cost- of-living adjustment to retirees as well as this past service update. Councilmember Green noted then the city is giving it to people who are retired as well as to the current employees. Mr. Cascio said yes, typically, and certainly the retiree cost -of- living adjustment is an increase in benefit for everyone; a cost for everyone. He said the past service update is an increase in benefit for most people, but not necessarily all active employees. For that reason, it is expected to generate some costs over time, because most employees will get a benefit from it; it is not every single employee. Councilmember Green asked if an employee could be made worse off. Mr. Cascio said no to that, but it can be they will not necessarily be better off. Mayor Monday thanked Mr. Cascio for bringing this summary, noting he has helped to clarify a lot of points for the Council. She said then with consensus from the Council she would like to appoint a committee of the council to review all of the materials that have been presented and come back with a recommendation. She asked Councilmember Green to co -chair this committee with Councilmember Bell and Councilmembers Hammock and Gaines to serve as committee members. She said a full review will be made when the committee feels it has reviewed the materials sufficiently noting it will be done on the committee's own time frame. The Mayor noted she will also serve as an ex- officio member of this committee CONSIDER RESOLUTION Consider Resolution No. 89 -8 amending the minority business enterprise program by renaming and otherwise adopting 1988 federal D.B.A. guidelines as needed to complete the city's F.A.A. grant application Mr. Gene Pipes, City Manager, advised the city was fortunate to be awarded an FAA grant last year. He said the city is about to go out for bid in July for this work -- improvements to the airport - -He said one of the requirements is to update the minority business enterprise program to rename it the Disadvantages Business Enterprise Program and make other changes as required through the federal codes for grant administration and project administration. He said they have reviewed all this information and it does 1 HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 413 comport with the FAA guidelines. He recommenaea it Tor the uouncit•s consioeration. ne sa]a IL 51111,.r broadens the terminology and redefines some of the criteria. The caption of this Resolution is as follows: RESOLUTION NO. 89-8 A RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE MINORITY BUSINESS ENTERPRISE PROGRAM; RENAMING IT DISADVANTAGED BUSINESS ENTERPRISE PROGRAM; REDESIGNATING THE CITY'S LIAISON OFFICER; ADOPTING 1988 FEDERAL DBA GUIDELINES; AND MAKING OTHER PROVISIONS RELATED THERETO Councilmember Knotts made the motion to approve of this resolution and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. CONSIDER BIDS Consider bids for concrete work for various projects to Triton Construction in the amount of $21.994.30 to be paid from various budgeted accounts Mr. Pipes presented the three bids received, ranging from $21,994.30 to $29,563.62 for the repair of existing sidewalks, replacement of sidewalks and curb and gutter work. He advised funding will be as follows: 1) sidewalk fund, amount available: $10,000 (bid amount $9,152.26) for repair of existing sidewalks along Rather Park on University Avenue; Avenue F, west side between 9th and 11th Streets; and along Avenue 0, west side between 12th and 11th Streets; 2) C.I.P. Water Fund (bid amount: $8,389.21) for 10th Street sidewalk and curb and gutter replacement; 14th Street sidewalk and curb and gutter replacement; and 3) C.I.P. Street Fund (bid amount: $4,452.13 for 10th Street valley gutter and curb and gutter replacement, and 14th Street curb and gutter replacement. Councilmember Howard made the motion to award this bid to Triton Construction in the amount of $21.994.30 and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. CITY MANAGER'S REPORT- -GENE PIPES Response to citizen inquiry questions of June 13. 1989 by Ms. Strub and Ms. Delaney Mr. Pipes noted as has been our practice in other council meetings, when we have citizen input, the city does take note and the minutes reflect the information brought to the Council. To make it a matter of permanent record, he said, the city also endeavors in subsequent council meetings to respond to questions that are raised so that the Council and the citizens bringing those questions have the benefit of the information. He advised at the June 13, 1989 Council Meeting, Ms. Strub appeared to ask several questions concerning the city's water line construction policies. He noted one question concerned the cost of removing massive trees in the sidewalk area and if such cost would figure in the $12.00 per linear foot additional cost between laying pipe in the street or in the sidewalk area. He said the only large tree removal they have contracted was approximately $450.00 on 10th Street. He said the necessity to remove such trees is so infrequent that factoring such costs into averages, such as the $12.00 per linear foot, simply would be of negligible effect. He said the city's costs are charged to the project and are carefully kept. He said if we are talking about saving money for great distances; for instance, the project in the 19th Street area costing a total of $680,000 and the cost for the removal of trees would not have a great deal of affect on the average that it would cost per foot that would be implemented in that particular type of project. He noted Mrs. Strub also inquired about the loss of landscaping on property values. He said the Appraisal District has indicated the individual lot values in that area are established on a mass appraisal method of the entire neighborhood and therefore little effect would likely occur on any impacted particular individual lot. He said certainly the Appraisal District does have a review process of values that are established subject to review. He said each property owner is given that opportunity on an annual basis and information could be presented to the Appraisal District that may, in fact, on an individual basis, change the valuation of that particular property. In terms of general information, methodology, used by the HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 414 Appraisal District, the neighborhood mass appraisal system is in effect and the value of the water lines, other improvements, streets, drainage, etc. would also enure to the valuation of those properties; therefore, it is expected that little effective value would occur by loss of the individual landscaping on the property. Mr. Pipes advised Ms. Delaney also appeared at the last meeting representing the Woodlands Association to express concerns and raise questions germane to the proposed project. He advised she wished to know the city's response to the Texas Antiquities Committee. He said the response to this question is that the city expects to have an archeologist survey the project area and make a report to the committee before the city begins the work. He said this is not as vet done but this is the process the city will be following in responding to an official notice by a state commission. Mr. Pipes advised Ms. Delaney also stated they would like to see the city street policy revised in writing. He said the staff has no problem with this and it endeavors to always follow the council's written policies and certainly clarifying any questions that may be raised in writing would be of benefit in many respects. He noted the city's right -of -way repair policy was also questioned. He indicated the city's current policy is that the city will replace sidewalks that are affected or moved by the utility construction activity. He said the city will also replace driveways parking lots as well as grade and seed the terrain. Ms. Delaney also raised questions about the city's master plan and whether there were plans for widening any street, such as 22nd Street, in the area, Mr. Pipes noted. He said neither the city's project plans nor its master plan call for street widening in this particular area. He said easements that have been requested from property owners on 22nd Street are for utilities - -water line placement only - -as indicated in the instruments. He said the city does not intend to widen the streets. Mr. Pipes advised the final question by Ms. Delaney about the city's intent to condemn properties to obtain easements. He said it would be inappropriate to respond to this in that the city has not even considered such a matter and therefore the City Council did not consider such a matter. He said it would therefore be a privileged legal matter under the Texas Open Meetings Law if it were, in fact, contemplated; however, it has not been at this timeand has not been discussed by the City Council. Mr. Pipes said to his knowledge, this answers all of the questions as reflected in the minutes by these two individuals. Discuss water line construction policy regarding trees /arborist• notice to affected property owners-residents: and grass replacement Mr. Pipes advised the city has completed a contract for services with a local forester, Mr. Mark Erb, and his partner, Wilson Braeden, who is the urban arborist. He said they have made one trip to Huntsville. He said their preliminary reports on three proposed projects: 13th Street, University Avenue and 15th Street, are expected this week. He said the city will then be able to determine the cost based on their recommendations, for the affected trees and be able to present some findings to the City Council at the next meeting in hopes of reaching a consensus on a modified policy. In regard to "improved communications" with the affected property owners about a proposed project, Mr. Pines proposed a staff recommendation that the field crews and project contact person place a handbill of project information at each residence or business in the planned construction zone the day the project is survey staked. He said hopefully this will dispel rumors and allay concerns of those who notice the blue flagging and markings. He said it is also suggested the notice contain a brief summary of the project an HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "p" 415 explanation of the stakes the main phone number and office hours of the staff and proiect supervisor. He said he would hope the owners and residents would be encouraged to call to inform staff members about any questions or concerns they may have about the project or make an appointment for an on -site person to person visit. He said he feels this is the best way to get the information out. He said certainly the lapse of time since the last experience of staking on Friday and then having a Memorial Day weekend occur did not help the situation. Mr. Pipes noted Councilmember Bell also asked the staff to provide some information concerning the city's policy on "grass replacement" in the right -of -ways at the conclusion of a project. He said a memorandum from Mr. Boyd Wilder, Director of Public Utilities, has been provided, indicating the costs of sodding or sprigging that may be contracted out as the Council wishes. He noted this is just the beginning of the story: watering, fertilizing, maintaining after it is in place is something that would be logistically very difficult to do if the abutting property owner was not willing to take care of it after it had been replaced. He said this also might create a problem matching the various stains of San Augustine or Bermuda turf found in various lawns and individual choice may create a whole new set of issues for the city. he said the staff would recommend that the city stay with its present policy. He said the city frequently makes the effort to remove grass that is in place in the yards and set it aside so that the residents may maintain it and replace it for them after the terrain has been restored to grade. He said this is the city's practice and the city is willing to make every effort to change that at the Council's desire and direction. Councilmember Bell felt the handbill being passed out to residents on the day the flagged stakes go up is an excellent idea, and he appreciated that shift in emphasis and attempt to more fully disseminate information. He said he hopes this meets some of the problems that have developed in communications in they Woodlands area. In regard to the sod issue, Councilmember Bell referred to Mr. Boyd Wilder's memo. Mayor Monday read aloud the memo so that all could be aware of the information it contained. Mr. Wilder's memo of June 26, 1989 advised: "Our current policy for clean up of an area in which water or sewer construction has been completed requires us to seed the area upon completion. During winter months we use rye grass seed and during the warm months we use common bermuda grass seed. After construction is complete, the area disturbed by the excavation is covered with top soil and raked (hand tools) prior to seeding. This would need to be done if sodding was required also, therefore, for price comparison, I will assume the area is ready for seeding or sodding. The seeding costs approximately 3.005 cents per square foot. This includes labor. If the policy required sodding, the cost would be approximately 5.30 cents per square foot of the area covered. Or, if a lot was 150 feet wide and we disturbed a fifteen foot wide area across the lot, the cost for sodding would be approximately $675.00. If we utilized a "checker board" method of sodding, the cost for this same area would be 5337.50 (half the cost). The cost for seeding this same area would be approximately $11.25." Councilmember Bell noted the $675.00 cost for a lot is a high charge and there is some financial disadvantage to sod the lot as this memo indicates; however, drawing from the Spring Lake experience, it seems to him there is a satisfactory compromise here that the Council should seriously consider. He said he didn't know why the city could not take the existing sod and carefully scrape it off and stack it and then replace it over the trench once the construction is over. He said this would meet the criteria of putting in the right stuff in the right place; it would be considerably less expensive than going out and contracting a resodding job to a local nursery. He said he draws again upon the Spring Lake experiences because his neighbors report that when the construction project started at Spring Lake, they were told HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 416 not to worry that the city would resod it for them. He said several of them had already indicated they wanted to remove their own sod to save it. He said as a result, they didn't save it and when the area was not resodded, they were quite upset; they would have been happy to save it if they had been told that option was available to them. He said it seems to him that the city could meet residents of a given area half -way by scraping off the sod, stacking it for them, and then replacing it when the city completed its work and then let the resident take over the care and maintenance /fertilization of it. He asked if this would be an acceptable compromise for a relatively small dollar investment and there would be high returns in terms of public perceptions of the care and sensitivity of the city staff. Mayor Monday advised this is one of the things she feels the city staff may want to take into consideration and if there are any questions, they can come back to the Council. Mr. Pipes indicated the staff will do that. Councilmember Bell asked the City Manager if he had any initial objections to this plan and he indicated he had none. Mayor Monday noted she sees consensus on the Council to refer Councilmember Bell's suggestion to the staff and let them get back to the Council concerning what this option might require. Mayor Monday asked if it is the consensus of the Council, the staff will implement the communication (handbill) procedure for all upcoming projects. Councilmember Green asked for the time frame once the stakes are set and the handbill delivered within which the effected residents must respond. Mr. Pipes noted at the present time there is a period of 1110 days" before construction should be expected to begin. Mr. Pipes said the preliminary staking was intended to create a forum of discussion and information from the affected property owner and the staff about what exactly would go on and the formal notice would be following. Councilmember Green asked if the notification given at the time of the staking 'indicates a time frame during which to respond, rather than just a telephone number and who to call. Mr. Pipes said in addition to the handbill at the time of staking, affected property owners will receive a follow -up letter. Mayor Monday said Councilmember Green is asking that the handbill give a general time resident has a particular time to respond and if they do not respond during the time frame it is assumed that they have no objections possibly. He said he hates to see something quite to open- ended. Councilmember Knotts said all of that time information is in the second notice. Councilmember Green asked when the second notice goes out. Mr. Pipes said shortly thereafter, noting by the time the city gets out to stake the area, and do the property research, there may be a lapse of four or five days. Mayor Monday said it looks like at least two weeks, or a week before they get the letter and then ten days after that. Councilmember Green felt it needs to be clarified. Mayor Monday noted then he is suggesting when the She felt the staff could handle this. Councilmember Green said if this is not done, we will be in a nebulous situation where no one knows when, for sure, anything is going to happen. Councilmember Knotts reminded the Council the initial staking may not be the final route, although it is the intended route. Councilmember Carter asked what Councilmember Green's suggested time frame might be. Councilmember Green noted he did not have one, but felt the city's time frame should be indicated. Councilmember Bell asked if the city is going to explain what the various flags (colors) mean; red flags around a tree mean one thing, a blue flag along a ground means another thing, etc. Mr. Pipes said the initial blue flag staking indicates the route and the red flags do not go up until after the final route had been determined and that was part of the information in the second notice. Mr. Isbell clarified the staff makes a preliminary determination of the "best route." and then stake the blue flags He said any trees that are going to be affected in that preliminary route are flagged so that the property owners will be on notice that the trees are in the work area. Mr. Pipes said then the time starts from that date. Mr. Isbell agreed, noting then the letters are sent, because without the property owners seeing the stakes on the ground, the letter really does not mean much to them as they still would not know where it is going. He said it was felt the city needed to stake it and then send the letters so that the HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 417 Property owner could then Physically go out and out his foot on the around where the water line is going to go. Councilmember Carter asked if we are going to consider extending that ten day period beyond the ten day limit. Mayor Monday said in Dhysically carrying out the procedures there will most probably be some lag time in there. Consider a proposal to create a foundation to receive donated Dark property Mr. Pipes advised available grants under the federal and state grant structure are limited to property that has been donated in a timely fashion and yet not formally or officially received so that the value of that property can be used to secure funds to perhaps develop or improve that particular tract. Therefore, he said. the creation of a foundation has taken Place in many communities to facilitate this Process. He Presented the Articles of Incorporation for the Proposed "Huntsville Natural and Cultural Resources. Inc." as developed by the City Attorney, Mr. Scott Bounds. He noted the purpose of the corporation is outlined and Mr. Bounds is listed as one of the incorporators. In summary, Mr. Pipes, noted the purpose is to receive Park property in a manner that will facilitate securing of grants that may be used for the development of that property by beina able to use the value of the property itself in that Process. He said the city will proceed with the filing of this corporation unless there are any objections from the Council. City Attorney, Scott Bounds, advised Dr. Barry Tacker will be removed as a member of the Board of Directors because he is an ex- officio member of the City Parks Advisory Board; the other directors are the current Parks Advisory Board members. He said this item does not need council approval as it is intended to be a separate legal entity, but he did want Council to recognize it and that the city is, in fact, incorporating the Parks Advisory Board. In response to Councilmember Carter's question, Mr. Bounds explained the Board of Directors for this corporation will be selected from time to time pursuant to the Resolution that created the Parks Advisory Board and selection will be the same - -by the Mayor and City Council. Councilmember Bell asked if there will be liability now that this board is incorporated. Mr. Bounds said there would be liability, but that it is covered under the city's general liability insurance policy. Building Official REcognized- -Cindy Kellgren Mr. Pipes announced that Ms. Cindy Kellgren, Chief Building Official, will be recognized in two very important positions during the coming year. He advised she will be chairing the Education Committee at the National Southern Building Code Congress to be held in July in Birmingham, Alabama and in October, in Charlotte, North Carolina. The Southern Building Code Congress Education Committee is responsible for reviewing education materials, such as videos and manuals, formulating questions for certification examinations, addressing appeals of the testing procedures and scores and awarding college scholarships. He said Cindy will also serve on the newly formed Education Committee of the Building Official Association of Texas, which originates courses to help building officials pass national certification examinations and will develop seminars to educate building inspectors about new techniques, materials and problem areas in the building field. Third Consecutive Award of Excellence for Distinguished Budget Presentation Mr. Pipes reported the Government Finance Officers Association has just advised the City that it will be receiving its third consecutive Award of Excellence for Distinguished Budget Presentation. He noted since 1984, over 300 governmental entities have received the Distinguished Budget Presentation Award nationwide. He said winning entries represent truly pioneering efforts to improve the quality of budgeting and provide excellent examples for other governments throughout North America. He said to receive this award, effectiveness of the budget is viewed as a policy document, an operations guide, a financial plan and a communications device. He said the city's budget process has been rated as proficient in all four categories. He commended the Director of Finance and the administrative staff for their hard work on this budget every year. HUNTSVILLE CITY COUNCILMEETING OF JUNE 27, 1989 BOOK "P" 418 Consider adiustments to the employee medical benefits, as projected by the City's Administrator, Employer Plan Services, Inc. Mr. Pipes provided a memorandum from the Director of Finance, Patricia Allen, which advises the city has received information on fund experience for the past plan year for the city's self-insured health plan. He said it states claims experience for the prior year indicates ti,at 81% of claims paid were for employees and 19% were for employees' dependents, he noted. This is a reverse of prior year claims experience as reported by the administrator, he noted. The memo indicated last year, rates for dependent coverage were increased and the city's rate for employees was not adjusted. This year, he said, just the opposite is needed; dependent coverage premium can remain the same, but the employee cost paid by the city should be adjusted based on claim experience. Mr. Pipes noted to fund the plan at the level of last year's expenditures, approximately a 20% increase would be required. Expenditures for the prior plan year (based on an 11 month actual cost and one month estimated) is $379,784. City rate (at 20% incr.) S 94.95 x 219 x 12 = S 249,528.60 Dependent coverage $160.00 x 53 x 12 = S 101.760.00 $351,288.60 The memorandum indicated the plan has approximately $140,000 in reserve. Assuming $14,000 in interest will be earned, Ms. Patricia Allen advised, the reserve would be reduced to $125,504.60. She indicated she would not recommend that the reserve be reduced beyond this level because of the establishing of the rates to generate revenues based on the prior year experience. Claim costs, she noted (as medical expenses increase) are projected to increase as are the stop loss premiums and administrative costs. If claims increased by 22 %, she noted (worst case scenario - -as presented by the administrator), the reserve could be decreased to as low as $46,321.00. She noted the estimated cost of the premium increase to the City is $39,100. Mr. Pipes advised this information is provided so that the Council can be kept informed of the situation. MAYOR'S ACTIVITY REPORT - -JANE MONDAY Orientation - -SHSU Mayor Monday advised she has been working extensive with SHSU, both welcoming the parents and students on an individual basis as well as welcoming them collectively, along with some of the councilmembers. She urged the Council to continue their support of this recruitment effort. She noted there is a record enrollment this summer and it is anticipated there will also be a record enrollment for the fall semester. She noted two more recruitment sessions are planned this summer. Library Board Appointments Mayor Monday then presented the names of David Burris and Janice Lange to fill the vacancies created by the completion of the three year terms of Susan Knuth and Ann Fleming. Councilmember Barrett made the motion to approve of these appointments and Councilmember Howard seconded the motion All were in favor and the motion passed unanimously. COUNCIL ACTION Washed Out Area--Avenue M Councilmember Howard asked the staff to investigate a washed out area just beyond the Diagnostic Unit on Avenue M to see if it is the city's responsibility. RECESS TO WORK SESSION Discuss with members of the Arts Commission plans for goals five and six of the Comprehensive Plan ADJOURNMENT tfully submitted,Gf June 27, 1989 ueS aw,, q retary