MIN CC 09/05/1989MINUTES OF THE SEPTEMBER 5, 1989 COUNCIL MEETING BOOK "P" 476
NUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 5TH DAY OF SEPTEMBER, 1989 IN THE CITY HALL
UNCIL 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:
ne Monday 0. Eugene Barrett City officers present:
ry Bell James L. Carter Gene Pipes, City Manager
a G. Gaines William B. Green Scott Bounds, City Attorney
LLiam H. Knotts, Jr. Percy Howard, Jr. Ruth DeShaw, City Secretary
Absent: William L. Hammock
FORMAL MEETING CONVENED
Mayor Monday called the formal meeting to order at 6:15 P.M. and then recessed the Council into an
xecutive Session to consider pending litigation: CAUR appeals. The Executive Session ended at 7:00 P.M.
o other items were discussed and no formal action was taken, according to the certified agenda filed by the
Mayor Monday then reconvened the formal session. Councilmember and Mayor Pro Tem Percy Howard, Jr.
A the invocation.
CONSIDER THE MINUTES OF THE PREVIOUS MEETING
Councilmember Barrett made the motion to approve the minutes of September 22, 1989 and Councilmember
PUBLIC HEARING
Mr. Gene Pipes, City Manager, asked the Council to review this franchise agreement very carefully.
e said this franchise agreement will be a renewal of the current franchise which expires in two years. Mr.
cott Bounds, City Attorney, advised the City opened a public hearing much earlier in the year after a
equest late last year or early this year by Telecable, Inc. to consider renewing their Telecable Franchise
nder the provisions of the Federal Cable Act and under City Ordinance. Mr. Bounds said originally
elecable, Inc. provided the City with a proposed franchise agreement. He said the city took that
greement and redrafted it many times. He said what is proposed is a staff recommendation. Mr. Bounds
aid the procedure required by the city's ordinance is that a franchise ordinance has to be passed twice,
ublished in the paper in its entirety within five days after each time that it is passed. He said the
econd time it is passed has to be at least thirty days after the first time it is passed. He said the city
as assisted the Telecable, Inc. to prepare the ordinance for publication by reducing it so it will fit on
ne newspaper page.
CounciLmember Carter asked for an outline of the major differences between this proposed franchise
greement and the one under which the company currently operates. Mayor Monday noted that would be most
ppropriate for the Council to review and take time to study it so that they can come back to ask the staff
ny questions they may have. Councilmember Green asked how gross revenues are calculated - -do they include
remium channel revenues? Mr. Bounds said it does not include all revenues; it covers pay channels other
han commercial advertisements, paid for view, cable video store, and revenue from connects and disconnects.
ounciLmember Green said he thought there should be no charge for disconnects. Mr. Bounds said the company
s able to charge for both connects and disconnects. Mr. Bounds clarified there is no charge for connects
nd disconnects for basic services, but those charges are permissible on the premium channels.
ounciLmember Green noted the ordinance states that "In the event that a subscriber fails to pay as properly
ue and owing a fee or charge, the company may disconnect the subscriber's service outlet, upon giving at
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MINUTES OF THE SEPTEMBER 5, 1989 COUNCIL MEETING BOOK "P" 477
Least seven days written notice thereof," and asked when that seven days begins, or is there a separate
notice sent other than the bill itself. Mr. Nathan Geick of TCI said there is an actual, separate, red
dated "disconnect notice" sent out. He said they don' t count the day it is sent out and they don't count
the weekends. He said they try to call the people before they disconnect them and knock on their door
before they disconnect them. He said we do disconnect people and they have some that disconnect regularly
and then get right back on the service.
Mr. Geick said TCI is asking for a model franchise that has been carefully reviewed by the City
Attorney. He said it is very fair and they have all worked very hard on it. In essence, he said, what TCI
is asking for is the opportunity to continue to do business in the City of Huntsville in the manner in which
it has been and to pay 4% gross receipts back to the city for the privilege of doing business. He said the
franchise is written so that gross revenues include the pay services. He said they have agreed to do so.
He said it is hard to do this because TCI is paying the fee on the total amounts and they are having to pay
considerably more than 60 or 70% for most of the services. He said if his man goes out to disconnect
someone, that is a direct labor charge as there is absolutely no profit in a disconnection or even in an
installation because the profit comes from keeping the customer on and the reoccurring monthly charge. He
said this is why the labor charges are not subject to the gross receipts. Mr. Bounds said it is standard
practice in this geographic area not to include the revenues for connects and disconnects in the calculation
for gross revenues. He said the model ordinance suggested these revenues be included, but as a matter of
practice, it is not included and has not been. He said the calculation of gross receipts is basically as it
has always been in the past.
Mr. Geick said their record has been good for the last four or five years and they realize they have
a nonexclusive franchise and they are on the line every day. He said the 4% tax is about a percent above
what is normal- -usually it is 3%. He said in some cities it is 2%. He said in Conroe it is 4%. He said he
appreciates the councils consideration that they are a business and they have to meet their obligations to
their customers. He said anything that costs them additional money will affect that one way or another. He
said they are open to answer any and all questions. Councilmember Green noted this franchise agreement then
is completely independent of the rate ordinance. Mr. Bounds said that is correct. Mayor Monday asked if a
motion is needed to table this matter at this time so that the Council can continue its review. Mr. Geick
encouraged the Council to give their questions to Mr. Bounds in advance so that they can do any research
necessary to get them the right answers by the next meeting. Councilmember Carter asked for a copy of the
previous franchise agreement so they can compare it with the new one. Mr. Bounds said he has all of that
information, including the amendment ordinance which somewhat superseded the first franchise and allowed for
the rebuild of the telecable system, along with the various drafts that led to the proposed document. He
said it is difficult to just look at one document and do a comparison. He said he also has some model
ordinances he may wish to review. He said the Council is free to come by his office to look at those
documents. Councilmember Carter said he will then try to come by to see these documents if he has any
questions.
CONSIDER DEPOSITORY
Consider depository contract bids for the next biennium as Presented at the meeting
Mr. Gene Pipes, City Manager, advised only one bid was received and it was from First National Bank.
He said the staff is continuing to evaluate that bid and will be bringing a recommendation to the Council at
a subsequent meeting. He said since it is a single bid and it is for a two year period and a rather
important financial tool for the city, the staff feels this would be the appropriate thing to do.
CONSIDER LEASE AGREEMENT
Consider a lease agreement with Huntsville Natural and Cultural Resources Inc for 3.664 acres to be
dedicated as the Bush - Miller park
Mr. Scott Bounds, City Attorney, said the city has created a corporation known as the Huntsville
Natural and Cultural Resources, Inc. He said a copy of its by -laws are included in the agenda packet. He
said this corporation exists primarily to receive gifts of property or money from citizens that might be
interested in improving the city. This corporation will hold those properties until it is appropriate to
MINUTES OF THE SEPTEMBER 5, 1989 COUNCIL MEETING BOOK "P" 478
reconvey them to the city when an effort can be made to obtain state of federal matching funds, he noted.
He said the by -laws are for the Council's information and he would be happy to answer any questions about
them. He said the corporation has been chartered. He said the directors of this corporation are basically
members of the Parks Board for the city. Mr. Bounds said the city is fortunate in having already received a
gift of 3.7 acres from Mrs. Josephine Miller Bush to be dedicated to the memory of Dr. Leonard Ewing Bush
and Mr. and Mrs. Rufus Walter Miller, Sr. He said this property is near the Forest Hills Subdivision and is
to be used for park property. A history of the owners of the land was included in the packet. The history
included a detail as to why it is being given to the city. Mr. Bounds proposed the City of Huntsville
Lease this property from the corporation so as to permit the city to work on the property in the form of
clean -up and to make some improvements and make it usable for park purposes and also to provide a mechanism
to provide some insurance coverage for the city and the owners of the corporation. There being no questions
from the Council, the Mayor asked for a motion. Councilmember Knotts made the motion to approve of this
lease agreement and Councilmember Carter seconded the motion. All were in favor and the motion passed
unanimously. Mayor Monday noted it is hoped the property can be dedicated sometime in the fall of 1989.
CONSIDER ADDITIONAL LIBRARY PERSONNEL
Consider approval of funding from the reserve for future allocations (General Fund) in the amount of $1.280
to expedite the hiring of additional Library rsonnel so that operational hours may be extended as soon as
possible
Mr. Gene Pipes, City Manager, advised this was discussed during the general fund work session on the
budget. He said hiring of employees to fill Clerk I and intern positions deleted in 1987 would allow the
Library to return to forty hours of public service per week beginning in October, 1989. He advised an
estimated $1,280 is needed from the reserve for future allocation to fund these employees. He noted
authorization is needed now to allow for the two week advertisement time prior to October 1. Mayor Monday
noted now that school is in session, the city is anxious to extend those hours to allow students additional
time for research activities. Councilmember Barrett made the motion to approve the $1.280 from the reserve
for future allocations in the general fund for the hring of additional library personnel, as discussed above
and Councilmember Howard seconded the motion. All were in favor and the motion passed unanimously.
CITY MANAGER'S REPORT--GENE PIPES
New Pages for the Budget
Mr. Pipes presented some new summary pages to be inserted in the Council's budgets, which correspond
to the Council's changes and adjustments in the budget He asked the Council to include them in their budget
documents. He said this proposed budget now operates on a 38.44 cent tax rate which is exactly the same as
what the City has this year. He said it operates on the same water and sewer rates that the city has had in
effect since 1984. He said this is a significant point of pride. He said the city will make some
adjustments in the rate mechanism so that some of the city's particular customers will be granted some
relief. He said for example, apartments will be able to file an affidavit on their vacancies within a given
period of time on a monthly basis in order to receive due credit for non - occupied units. He said the city
will continue to charge them on a per unit basis as it does all of the city's other residential units.
Review drafts of ordinances for rates and budget adoption for public hearing and adoption consideration on
September 12, 1989
Mr. Pipes then distributed copies of the proposed ordinances. He said the ordinances show the
changes in the city's application of the utility rates. Attached to it is the affidavit of vacancy that
would be applicable, he said. The tax rate ordinance will be offered at next week's meeting indicating a
tax rate of 38.44 cents, Mr. Pipes noted. He also presented the ordinance finding all things requisite and
necessary have been done in presentation of the annual budget, approving the budget, subject to the
(Council's vote next Tuesday night. He noted a public hearing on the will begin on the budget just after
7:00 p.m. next Tuesday prior to the ordinance being considered. Mr. Pipes then presented a summary of the
changes in the city's billing procedures for water, sewer and garbage that wilt be in effect as a result of
this budget discussions this year. He said if there are any questions, they will be happy to answer them at
this time or between now and next Tuesday night.
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MINUTES Of THE SEPTEMBER 5, 1989 COUNCIL MEETING BOOK "P" 479
TML Resolutions to be considered at 1989 Conference- - Deadline September 11. 1989
Mr. Pipes advised the Council of the deadline for submitting resolutions to the TML. He said
Council could adopt such resolutions at its next meeting.
H -GAC Region 14 Meeting in Houston on September 8
Mr. Pipes asked the Council to advise the City Secretary by noon tomorrow if they wish to attend t
TML Region 14 meeting on Thursday evening, September 8.
MAYOR'S ACTIVITY REPORT
Realtor's Organization
Mayor Monday advised she, Mr. Pipes and Linda Pease, Arts Commission Coordinator, had an opportuni
this day to meet with the Realtor's organization to look at the next decade, 1990 -2000 and the things t
city will be approaching in the comprehensive plan. She said she did that review and Mr. Pipes presented
brief review of the budget and the city's rates. Linda Pease did an extensive program of the downtown a
showed pictures and was able to visit with them about what is going on there, she advised.
Applied Sciences, SHSU
Mayor Monday advised this letter informed her that on this day SHSU has successfully completed its
first summer program with the Saitama Women's Junior College. They said they learned as much from them as
they learned from us. The letter said the program could not have been a success without the support of the
University and the community in general. The letter offered its thanks to the city for its contribution to
their educational activities program. Mayor Monday said SHSU anticipates these young women will be back in
the spring and perhaps again next summer. Mayor Monday noted we may have established a permanent link here
and she thanked the Council for their support.
TML Meeting
Mayor Monday asked the Council to mark their calendars for the TML annual conference to be held
October 26 -28 in San Antonio. She noted the City Secretary has blocked roans for the Council to attend this
conference.
PERSONNEL COMMITTEE REPORT
Councilmember Howard presented the following report:
"The Personnel Committee met with Charter Officers on August 28, 29, and 30, 1989 in a mid -year review. Each
officer was given the opportunity to communicate his /her needs and /or concerns to the committee. The
response made by the City Manager were basically good and the committee considered his performance to be
very good. He expressed the need for additional staff to help facilitate his workload as part of the new
organizational changes in job description. Judge DeLong gave the committee some new insights on the number
of court cases and how his office can eliminate some of the problems. The City Manager, City Attorney, City
Judge and Court Clerk have endorsed a new operational procedure in which the committee concurred. It was
recommended that a greater utilization of the community work program be phased into a clean -up program
through the community. The City Manager is in charge of facilitating this program. The City Attorney's
performance was considered to be very good. In spite of a large number of legal cases, he has given the
Council good legal advice. Mrs. DeShaw, the City Secretary, is charged with microfilming the City records.
This is a slow and tedious process, but she is doing a good job. Mrs. DeShaw discussed with the committee
the new Local Government Records Act (H.B. 1285), which explains the rules and regulations regarding the
maintenance of public records. She further stated that a formal appointment of a records officer should be
made by June 1, 1990, and a management plan by January, 1991.
"The subject of pay raise came up several times. It was recommended that administrative heads would
receive a 3% cost of living increase and a merit review of their salaries is planned to take place in the
first quarter by the Personnel Committee who will then report back to Council."
MINUTES Of THE SEPTEMBER 5, 1989 COUNCIL MEETING BOOK "P° 480
COUNCIL ACTION
Pep Rally Planned
Councilmember Gaines advised that the city has always considered SHSU to be an important economic
development tool. She said last year a number of merchants got together to hold the first pep rally for the
Sam Houston football team. She said they are doing that again this year and it will be on Thursday evening
from 6:30 to 8:30 P.M. at the Midway Plaza. She invited everyone to come noting the football team will be
there along with the band, cheerleaders, a dance group, and the Mayor will say a few words and Coach
Randleman will have a few words to say. She said they had about 1500 -2000 children there last year and they
hope to have that many this year. She said they will be serving watermelon, ice cream, homemade fudge and
cokes.
SHSU's Enrollment is Up
Councilmember Green said as of 5:00 P.M. yesterday, enrollment figures were over 12,215 which will
be a new record enrollment, up some 500 -600 over what it was last fall.
Role of Planning Commission with the Comprehensive Plan
Councilmember Carter asked if at some point the council could have a discussion about the Planning
Commission and the Comprehensive Plan because of the discussion that was brought to the Council recently. He
felt there was a need to be sure that all parts of the city are bound by the city's Comprehensive Plan to
some degree. He said he is not sure that the Planning Commission and the action it took about the drainage
situation was following the Comprehensive Plan. He said he would like a general discussion with the City's
Planner and perhaps even with some members of the Planning Commission as to what degree they feel that they
are bound by what the city has planned for the next ten years. Mayor Monday suggested he review that with
Mr. Scott Bounds, City Attorney, concerning any repercussions since the Planning Commission is, by law, a
separate body, and let Mr. Bounds get back with him on that. Councilmember Carter said it bothers him that
we have someone that has that much control over development in the city and if they are independent of the
City's Comprehensive Plan, it seems that the City's Comprehensive Plan is null and void. He said he feels
the Planning Commission should be just as bound by the Comprehensive Plan strictures as is the City Council.
Changes in Allocation and Use of Tourism Money
Councilmember Carter said he knows some changes have been made in the allocation and use of tourism
money because this was discussed when the Council discussed the National Endowment for the Arts grant
application. He said he would like to see a complete reconsideration of the way the city is using the
tourism money since there have been changes of the same sort, not applied to the grant money, but applied to
what we are doing with the money in the Chamber of Commerce. Mayor Monday advised that agreement is almost
expired andit will be reviewed as a new contract. Councilmember Carter felt the new law might also require
some changes in the way the city is using that money now. Mayor Monday suggested that Mr. Scott Bounds,
City Attorney, review that also for him.
MEDIA INQUIRIES
Mayor Monday introduced and welcomed Caroline Boyd who is the student news representative from
ISHSU's Channel 7.
ADJOURNMENT
ctfully su fitted,
,-C
Ruth DeShaw, City Secretary
September 5, 1989