MIN CC 11/21/1989MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 556
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 21ST DAY OF NOVEMBER, 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 Ruth DeShaw, City Secretary
Members absent: William H. Knotts, Jr. and Percy Howard, Jr.
CITIZEN INPUT /INQUIRY SESSION
L. Jack Spence. Jr.. Highway 19, 291 -7605. to discuss the_Hotel -Motel Occupancy Tax Funds
Mr. Spence said he understands that the Council Tourism Committee had a meeting since the last
Council Meeting concerning the contract with the Chamber. He said sometimes one can't see the forest for
the trees and he would like to try to highlight some figures. He said for nine years, 1980 -1988, the
Chamber has taken in $790,082 in hotel -motel tax. He said they have accounted for the direct expenditure of
$339,444. He said they have transferred $426,308 to their unrestricted general fund. He said there are
$24,330 that are not accounted for in that breakdown. In 1982, he said, the Chamber had $208,859 in C.D.'s,
however, that figure has decreased to $47,414. He said they have just kept spending money just like there
was no tomorrow, of course, they had unlimited access to funds.
He said his point is that for three - quarters of a million dollars the City could have a real nice
convention center, or at least the downpayment on one He said the amount of tourism that has been
generated from this $339,000 is somewhat over - estimated in his opinion. He expressed dismay that $426,000
of that money was transferred to the general fund of the Chamber, whose real function is the promotion of
the city in the first place, at the expense of the taxpayers, as the City has raised taxes or produced other
revenue where these funds could either have been utilized in the construction of a community center or
reduced the taxes that the other people have paid or reduced the tax that the people who stay in our motels
pay, which might contribute to an increase in tourism. He said we lost our tourist attraction when no one
would make the effort to save the rodeo. He thanked the Council for their time.
FORMAL SESSION
Mayor Monday called the formal session to order. Councilmember Ila Gaines presented the invocation.
CONSIDER CONTRACT FOR TOURISM SERVICES
Consider contracting for services with the Huntsville - Walker County Chamber of Commerce for tourism
promotion
Mayor Monday advised the Council Tourism Committee, consisting of Councilmembers Hammock, Gaines,
Bell an herself, met last week to consider the proposal presented by the Chamber. She presented their
recommendations:
1. Enter into a two year contract with the Chamber of Commerce for the expenditure of tourism
dollars; such contract to be reviewed after the first year. [She noted it will always have
a two year lead on it and will require a one year cancellation if the Council decides not
to renew it];
2. Approve the proposed $90,000 budget;
3. Authorize the transfer from the reserve of $15,000 to be dedicated to public attractions,
[and for the written specifics of that to come back to the Council at a later date for
Council approval]; and
4. Authorize Mr. Scott Bounds, City Attorney, to write the contract in accordance with the new
state law provisions.
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MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 557
She said Ms. Dee McFarland, Acting President of the Chamber, will present a report on what contributions
tourism the Chamber has made as an entity.
Dee McFarland, Acting President. Chamber of Commerce
Ms. McFarland said the question was raised as to what the Chamber of Commerce contributed to touri
outside of the current tourist contract. She said they feel their biggest contribution is the volunte
force they already have in place and those who have served on the Tourist Council for years, will contir
to do so. She said other contributions are best found in the Constitution of the Huntsville- Walker Cour
Chamber of Commerce, which reads as follows:
The Chamber of Commerce is a non - profit corporation whose purpose shall be
a) to promote the human and environmental resources of Walker County Texas and
environs while encouraging the maintenance of a beautiful and healthful physical
environment and the responsible use of the natural resources;
b) to promote economic programs and activities designed to strengthen and expand the
income potential within Walker County;
c) to promote programs and activities of a civic, social and cultural nature which
are designed to increase the functional and aesthetic values of the community;
d) to encourage high ethical standards in all business or professional activities,
and
e) to speak for the Chamber's members in city, county, state and national
Legislative and governmental matters, while maintaining a nonpartisan and
nonsectarian approach and philosophy.
Ms. McFarland made the following statements: that the Huntsville community, and specifically the Huntsville
Tourist Council, is trying to make meetings and visitors a part of Huntsville's overall economic development
effort; that there are many categories of business in the Huntsville community and absolutely none of them
are exempt of the benefits; that the hotel -motel occupancy tax, the user tax, is a good example of economic
development; that it is approved income from non-residents, and this is also just the beginning of what they
spend in the Huntsville community; that all businesses in Walker County receive direct and indirect
benefits; and that the dollars realized are clean dollars and require a small ratio of expense to income on
the part of the community prior to, during, and after they have been realized.
She said the Chamber has received strong support for the tourism program through the business
community. The membership knows the Chamber is very much involved in the travel industry, she noted. Even
no- growth advocates can be comfortable with tourism as an alternate method for economic development, she
said. The advised that travel dollars can fill the void of normal growth by providing an economic base
through the generation of tax dollars and income through visitors who come, spend their money, then depart;]
that an aggressive and successful travel effort will also assure a large variety of goods and services,!,
which also benefits the local buyers; that entertainment and cultural offerings usually improve as the need,
to attract the transient market places such demands on this community; and that the appearance of the
community and the positive attitudes of its people are also enhanced.
Ms. McFarland said, in summary, that "tourism- -the visitor industry," is an extremely integral part
of the Chamber's purpose and their other divisions and the programs they represent are the majority of the
Chamber's contribution to tourism. For instance, for the last several years, the Transportation Division)
has supported improvements and expansions on Highway 19, Highway 30, FM 980 and other arteries into the
City, she said. Ms. McFarland stated that this helps provide modern convenient and attractive access into
the community; that visitors don't come if the community is not attractive; and that visitors can't get
there without the highways. She said the Chamber helps promote retail services in Huntsville to enhance the
visitor's perception and to promote the expenditure of dollars here. The Legislative Council provides a
direct link between the Chamber, City and County to the Legislature and helps keep the occupancy tax in
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 558
existence and works for the everlasting concerns of permanent attractions in our community, she noted. The
Council was advised the Chamber maintains existing businesses and creates and expands employment
opportunities and the economic base by assisting existing business; the list of contributing divisions in
the Chamber, goes on and on and there is very little the Chamber does that does not relate to tourism,
whether directly or indirectly; and particular events, such as the Fair on the Square and the Lobster Fiesta
bring hundreds and thousands of people into the community. In short, she said, the Chamber contributes
some of each and every employee, program and dollar it spends in tourism.
Now consider Contract
Mayor Monday restated the recommendations of the Council Tourism Committee, as noted previously.
Scott Bounds, City Attorney, advised there have been several changes in the law governing hotel -motel taxes
and their use where a city contracts with a third party, such as the Chamber. He said a lot of those
provisions are very specific and are directed to the City of Houston and the way it expends its hotel -motel
tax funds. He said it will require that Huntsville also add some provisions to its former contract with the
Chamber and to think in some other areas in more detail than in the past; i.e., financial
accountability - -there are now very specific provisions regarding the accounting of funds that are expended
through a third party regarding the public access to those documents, imposing a fiduciary duty on the third
party with regard to the expenditure of those funds. He said he feels that fiduciary duty and the right of
public access to those records is something that is going to be helpful and should be spelled out in some
detail in the contract. As a result, he said he will spend a little more time in drafting the contract and
returning it to the Council for their consideration.
Mayor Monday then asked the Council "to approve the intent to contract with the Chamber as
recommended by the Council Tourism Committee." with the specific contract being brought back at a later
date after the City Attorney drafts it. Councilmember Barrett made the motion to approve "of the intent to
contract with the Chamber of Commerce for tourism services as recommended by the Council Tourism
Committee." and Councilmember Gaines seconded the motion Discussion: Councilmember Carter said over the
years he has also been a critic of the way in which the City and Chamber have handled the tourism dollars,
and he has some questions about past expenditures and whether they all went sufficiently to tourism in the
way that he would wish they had.He said he does not know how they could ever recoup or even prove one way or
the other that those dollars were spent properly or improperly because of some past accounting practices or
Lack of them, but over the past two-three years he has seen some changes made. This new law tightens things
up even more, he said. He said he appreciates the work of Ms. McFarland, Joe Henderson as President of the
Chamber, and he is ready now to change some of his critical attitude without losing some of the interest he
has in the program. He said he is willing to support a two year contract with a one year cancellation and
he is looking forward to working with the Chamber president. He advised Mr. Spence that the Council will be
watching those dollars as much as it can to make sure that they are going toward the programs they agree
should receive those funds. He noted the recommendation is for a $90,000 budget for 1990 and asked how much
is in the reserve. Mayor Monday asked Councilmember Carter to raise this question when the proposed budget
is discussed in the next agenda item. Councilmember Carter agreed to raise the question then. All were in
favor and the motion Passed unanimously.
CONSIDER TOURISM 1990 BUDGET
IConsider a Proposed budget for 1990 from the Proposed tourism contractor, as Previously Provided
Mayor Monday presented the $90,000 budget for the tourism contract for 1990, as follows:
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MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P"
Program
Budget
Personnel Costs
Total
Advertising /Marketing*
16,000
7,100
23,100
Visitor Inquiry
9,335
11,065
20,400
Permanent Attractions
3,000
5,100
8,100
Annual /Special Events
16,000
5,400
21,400
Conference Solicitation
4,000
2,747
6,747
Permanent Attractions Operations * **
* **
0
* **
Accounting
0
3,000
3,000
Utilities
2,173
0
2,173
Physical Plant
2,000
0
2,000
Office Supplies
1,200
0
1,200
Dues /Subscriptions
1,000
0
1,000
Audit
880
0
880
55,588
34,412
90,000
* Not including a $20,000 billboard
contribution.
** *Permanent Attractions Operations to be determined according to needs.
Personnel Costs
Program coordination
20,000
( 1,000)
19,000
Receptionist
5,000
2,420
7,420
Retirement (5 %)
1,350
96
1,446
Insurance (5 %)
1,350
96
1,446
Social Security
1.800
300
2,100
29,500
1,912
31,412
559
Mayor Monday then asked the Council for their approval of this budget, as outlined above. with one
addition and that is that $15.000 be brought out of the reserve which has an approximate balance of $34,000
according to Patricia Allen, Director of Finance. Mayor Monday said Ms. Allen is comfortable after a year's
track record, of holding in reserve approximately $20,000 as a guarantee on this $90,000 budget in the case
that all of the hotel -motel tax funds are not realized as projected. Mayor Monday advised this $15,000 can
be carried forward to be appropriated in the 1990 budget in addition to the $90,000. She said last week
there was considerable support from the Council to invest more funds into the permanent attractions for next
year. She said the Council Tourism Committee is recommending that this $15,000 be designated to be
contributed in the area of permanent attractions with the specifics to be submitted to the Council with
recommendations from the Tourist Council at a later date. Councilmember Green made the motion to approve of
the proposed 1990 budget for Tourist Services in the amount of $90,000 and the transfer of $15.000 from the
reserve for allocation in the 1990 budget in the area of permanent attractions and Councilmember Gaines
seconded the motion.
Discussion: Councilmember Green asked, in regard to the $20,000 amount in reserve to cover
shortfalls, if this indicates the City's Finance Director is anticipating a 25% reduction in the hotel -motel
tax given that this is to guarantee a $90,000 budget which assumes $70,000 would be the amount collected.
Ms. Allen advised the Council Tourism Committee had discussed this number and asked if she was comfortable
with it and she indicated she is comfortable with that amount. She said the current year collections are up
from the prior year and based on collections next year equal to about what they are this year, the city
should be able to fund the $90,000 without going into the reserve at all. She said the amount for the
reserve is at the Council's discretion. Mayor Monday said in the mechanism the city now has achieved for
operation, it is now the procedure that the Council Tourism Committee will meet with the Tourist Council on
a quarterly basis. She said if, on a quarterly basis, the Council Tourism Committee /Tourist Council find
that the funds are there and that additional dollars will be coming in, they will assume then those dollars
can be appropriated into the budget upon review and brought back to the Council for approval. She said if
they find next year that they are doing better, as no one wants money to sit in reserve that could be
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 560
rking in the tourism effort, then on a quarterly basis, they can jointly make recommendations and come to
a City Council for approval for those dollars to continue to be put into the budget, rather than having to
it until the end of the year. She said this year the Committee was not comfortable doing that.
Councilmember Green felt one of the problems the City can have with a situation like setting aside a
fixed amount of reserve is that there is a tendency, perhaps, to spend so that one doesn't lose the money
for the year, and we don't build up amounts that possibly could carry over for larger, more permanent
attractions. He said it would seem that anything the city might build up in a reserve would behoove the
committee or the Tourist Council to think in terms of long term bigger projects for funding rather than
spending money so that the money is not lost for the year. Mayor Monday said there is no problem with this
and noted it was suggested that a reserve fund be started to build toward a convention center. She said
this is one of the things they are gong to mention to the Council and they may want to consider it and
jointly the Council Tourism Committee and Tourist Council may want to start one and the goal may be to add
so much to it every year. She said the nice thing about this is there is a framework and all this can be
worked out. Councilmember Green said he was not suggesting a convention center. Mayor Monday noted she
nentions a convention center because it was mentioned last week, but there are a number of other projects
that can be considered. She said the flexibility is there to consider other things. She said the reserve
is also to cover peaks and valleys in the hotel motel tax collections, in the event the Tourist Council
needs to fund some things on short notice, then money can be advanced. She felt a little reserve should
always be held back in case there are some particular needs, or some specific requests that come in during
the year, in the event the Tourist Council gets some very nice requests it wants to honor, then the money
would be there.
In summary. Mayor Monday advised Councilmember Green suggested that there may be other uses for the
CONSIDER RESTRUCTURING COMPUTER SYSTEMS
Ms. Allen advised in the mid -year budget adjustments, she requested replacement of the city's
!xisting NCR 920 which it had outgrown and the maintenance costs had increased tremendously, and to replace
hat with two systems, one for utility billing and one for accounting. She said she recommended the city
urchase utility billing software from Ad Valorem of Houston, a company with whom the city has done business
or many years on its tax accounting. To -date, she said, Ad Valorem has not been able to provide the
oftware that is functional and meeting the city's needs. She said she is now requesting permission to
pgrade the recently approved computer for the accounting system, Ethe Model 35 from NCR] to an NCR Model
5. She said this is a larger capacity system and is capable of handling both utility billing and the
ccounting system. She requested permission to convert the existing software for use on that system. This
arger capacity system will allow the city to take advantage of many of the enhancements it was looking
orward to in the Ad Valorem system, she said, noting they had wanted to incorporate the bar coding system,
ame searches, and several things they felt were going to be available from Ad Valorem. The additional cost
f the upgrade from the Model 35 to Model 55 is $25,000. She said they have $18,000 that is still available
n the city's upgrade funds that it has not expended to -date. She said the City has not yet paid any money
o Ad Valorem for software. She requested an additional allocation of $7,000 from the General Fund Reserve
o fund the difference and requested authorization to cancel the contract with Ad Valorem. Councilmember
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MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 561
Valorem and Councilmember Green seconded the motion.
Discussion: Councilmember Green asked about a pay -off agreement if the city cancels a contract
with Ad Valorem. Ms. Allen advised the owner of the company is in agreement to cancel the contract with no
payment. She said no payment has been made on the contract and Ad Valorem has not provided the product;
therefore, there is no problem canceling the contract without cost. Councilmember Green asked if this is in
writing in the contract, other than just this oral approval. Gene Pipes, City Manager, advised the city has
requested this in writing today and will not act until this arrangement is agreed upon in writing from Ad
Valorem. Ms. Allen advised the contract was signed in April of 1988 and Ad Valorem has still not provided
the service and there does not appear to be a problem in canceling this contract at ail. Councilmember
Carter asked if there is a penalty in the favor of the city for its expense in time, effort and energy. Ms.
Allen said the city has expended a tot of personnel time but has also gained a learning experience in the
process. Ms. Allen said the city has accepted delivery on the Model 35 and NCR has agreed to allow the
city to upgrade; therefore, the Model 35 here on -site will be returned. After some additional questions for
clarification. all were in favor and the motion passed unanimously.
CONSIDER ORDINANCE
Reaffirm Ordinance No. 89 -34 amending Chapter 30, Community Development of the Code of Ordinances to
require the seller of property to notify the Purchaser in writing of restrictions and the city's right to
enforce compliance
Gene Pipes, City Manager, presented this ordinance, the caption of which is as follows:
ORDINANCE NO. 89 -39
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, HEREBY
AMENDS CHAPTER 30, COMMUNITY DEVELOPMENT, OF THE CODE OF ORDINANCES
OF THE CITY OF HUNTSVILLE, TEXAS, TO REQUIRE ANY PERSON WHO SELLS OR
CONVEYS RESTRICTED PROPERTY TO FIRST GIVE TO THE PURCHASER WRITTEN
NOTICE OF THE RESTRICTIONS AND NOTICE OF THE CITY'S RIGHT TO ENFORCE
COMPLIANCE; DIRECTING THE CITY SECRETARY TO FILE IN THE REAL PROPERTY
RECORDS OF THE COUNTY CLERK'S OFFICE A COPY OF THE FORM OF NOTICE;
PROVIDING A PENALTY OF UP TO $500.00; REQUIRING PUBLICATION; AND SETTING
AN EFFECTIVE DATE
Mr. Pipes advised while the Council passed this ordinance earlier, due to publication problems, the city is
concerned about the effectiveness of the ordinance because to become effective, it had to be published twice
within 10 days of passage; noting the Huntsville Item only published one time. He said it is therefore
being resubmitted for approval a second time so that the publications can be rescheduled. Councilmember
Barrett made the motion to approve of Ordinance No. 89 -39 [formerly numbered Ordinance No 89 -341 and
Councilmember Carter seconded the motion. All were in favor and the motion Passed unanimously.
Consider Ordinance No. 89 -33 amending Chapter 17 Water and Sewers of the Code of Ordinances to update the
Industrial Waste Regulations to current E.P.A. standards
Mr. Pipes, City Manager, then resubmitted this ordinance, the caption of which is as follows:
ORDINANCE NO. 89 -33
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AMENDING CHAPTER 17, WATER AND SEWERS, OF ITS CODE OF ORDINANCES
TO ALTER AND PROVIDE CERTAIN DEFINITIONS RELATING TO INDUSTRIAL
WASTE REGULATIONS; TO ALTER SITE SPECIFIC EFFLUENT /INFLUENT
STANDARDS FOR ZINC AND THALLIUM; TO ALTER SIGNATORY REQUIREMENTS OF
DOCUMENTS PROVIDED TO AND APPROVED BY THE CITY; TO ALTER THE
SURCHARGE COST OF VIOLATING DISCHARGE STANDARDS; TO PROHIBIT
BYPASSES EXCEPT UNDER LIMITED CIRCUMSTANCES; AND TO INCREASE THE
PENALTY FOR VIOLATIONS UP TO $1,000 PER DAY; PROVIDING FOR
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 562
PUBLICATION; AND MAKING OTHER PROVISIONS AND FINDINGS RELATED
THERETO
Councilmember Carter made the motion to reaffirm and readopt Ordinance No. 89 -33 and Councilmember Gaines
seconded the motion All were in favor and the motion passed unanimously.
CONSIDER EXPANDED RUSTIC PINES /BIG "D" SEWER IMPROVEMENTS ENGINEERING CONTRACT
Consider a revision to the Wisenbaker, Fix Engineering contract on the Rustic Pines /Big "D" sewer
improvements to expand the scope of work by $5 ,920 to include additional service area. as detailed by Glenn
Isbell. City Engineer
Mr. Gene Pipes, City Manager, advised the additional areas are on Old Sycamore Street, which is
behind the Walker County Appraisal District facility with Bowers Boulevard and Bearkat Boulevard on the
lower end of the triangular piece of property that is across the street from the Prison Cemetery along
Bearkat Boulevard. He said these areas have not previously been severed and they are within the range and
scope of this particular service area. He said expanding services to this area will bring another area into
service. He said this is additional work outside of the scope of the original contract and Council approval
is needed. Councilmember Barrett made the motion to authorize the expansion of the scope of work by $5,920
to include additional service area as described by the City Manager and Councilmember Gaines seconded the
motion. Discussion Councilmember Carter said while he is not a "no-growth advocate," if the city does
extend service to this triangular piece of property, it is much more likely it will develop. He said he
thinks this is a very nice green area in this direction and he is not completely satisfied with this, noting
one way a city can control its growth, if it does not have zoning or other land use regulations, is with its
utility expansion program. Mr. Pipes said this is true, however, most of the area, especially along
Sycamore and across Bowers and Bearkat Boulevards have occupant housing and businesses already in place. He
said the extreme point of this property, with the intersection of Bowers and Bearkat, would be the only
undeveloped area in this tract. He said this block is about one -half developed and the remainder is a very
nice open area, and it could develop. Mayor Monday advised this area has been a problem for the city for a
number of years. Mr. Pipes said there has been some substantial flow problems in this area. Councilmember
Carter noted he is going to vote for this project, but wanted the Council to understand that when it does
this kind of thing, it is making provisions for some development and growth and it may not be development
and growth that it is particularly pleased with in some instances. Mayor Monday noted this is a point well
made, but most of these have been identified as problem areas. Councilmember Carter noted this is a good
point too and he understands that. All were in favor of the motion on the floor and it passed unanimously.
CONSIDER BIDS FOR 13TH STREET CONCRETE WORK
Consider bids for 13th Street concrete work to Spivey Construction in the amount of $43,545.70 to be funded
from water and street C1P funds
Mr. Pipes, City Manager, advised an additional source of funds for this work is also from the
drainage fund as this is probably the largest single contract for curb and gutter work in conjunction with
the street program the city has had in some time. He said for such a short distance, this seems to be a
very high amount, but is very competitive judging from the three bids received. He said this is primarily
due to the grade changes on the block joining city Hall in which there are a number of things that have to
be done, such as a substantial retaining wall on 13th Street east of Avenue M toward Sam Houston Avenue in
order to get the curb and gutter line to drain. He said the city has overlaid that street a number of times
and will have to rebuild the entire curb and gutter section from Sam Houston Avenue to Avenue M. He said
three bids were received from local companies ranging from $43,545.70 to $57,844.28. He said the City is
substantially under budget in terms of the overall street program for the year. He presented the
recommendation that the contract be awarded to Spivey Construction in the amount of $43,545.70 with funding
to come from the Water and Street CIP in the amount of $8,920.45 and $34,625.25, respectively.
Councilmember Green made the motion to approve of the bid of Spivey Construction in the amount of $43,545.70
and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously.
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MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 563
CONSIDER UNSEWERED AREA PROJECTS
Consider approval of a priority list for Proiects under the unsewered area category and budget allocation as
requested and recommended by staff
Mr. Pipes, City Manager, presented the recommendation of Glenn Isbell, Director of Engineering
Design, that four areas be considered for sewer service, with funding from the CIP program for areas without
existing city sewer. Mr. Pipes noted the 1988 -89 budget and the 1989 -90 budget each contained $100,000 for
this purpose for a total of $200,000. Mr. Isbell's recommendations are:
1) Hitchin Post Truck Terminal S 72,450.00
2) West Cline -- Prentice Area S 58,420.00
3) F.M. 1374 Area S 13,570.00
4) 16th Street Area S 11.385.00
5155,825.00
It was noted the Hitchin Post has requested this sewer service and has operated on septic tanks for some
years. He said when the city worked on the relocation of the directional signal at the airport, it
encountered the Hitchin Post sewer and its outflow to the back of the property. He said it is something
that needs to be remedied rather rapidly. He said this has been a limiter to additional economic
development at this particular location. He said sewer service is available adjacent to it by a force main
built originally by Brown Oil Tools to sewer the plant farther up the interstate. He said this would
require a gravity line and force main of the approximate same length and lift station in order to sewer
these areas. He said the Hitchin Post and other adjoining properties will then come to that lift station at
their own cost. He said there is a compelling argument for maintaining those businesses and activities that
are already in the community as the Hitchin Post Truck Stop has been a very active economic site for many,
many years and their request indicates the strength of their operations and commitment to future expansion.
He advised the city has also received a request during citizen input some time ago from a lady in the 16th
Street area. He said the FM 1374 area recommended for sewer service has frontage along Possum Walk north of
the motel and dairy queen and the property backs up to Casa Tomas where the existing houses are on septic
tanks. Mr. Pipes said the nearest available sewer trunk for the West Cline - Prentice area is on Lake Road
and without running an interceptor into that area to pick up those houses, they remain problem areas. He
noted the city has prepared detailed cost estimates and maps for these projects. He said these projects
will require both this year's and last year's funding carried forward to complete the project.
Mayor Monday pointed out the Hitchin Post currently employs 127 people and has a $1.5 million
payroll. With the expansion they are envisioning if they get sewer service, she noted, they will construct
a $123,000 full service truck wash which will employ another 23 people. She said this is certainly an
economic development tool as well as bringing sewer to an area that has needed it for a very long time.
Councilmember Gaines made the motion to approve of these four areas for priority listing for sewer
service and Councilmember Barrett seconded the motion. Discussion: Councilmember Carter asked if this new
truck wash facility will fall under the city's industrial waste regulations and EPA standards. Mr. Pipes
said it probably would and there is no question its discharge will be monitored as are those of most similar
facilities. All were in favor and the motion passed unanimously.
CONSIDER REMOVING UTILITY POLES IN DOWNTOWN AREA
Consider a proposal to remove some power telecable and telephone lines in the downtown area as presented
by Glenn Isbell, City Engineer
Mr. Glenn Isbell, City Engineer, advised he has been working with the Highway Department, Gulf
States Utilities, Southwestern Bell Telephone and Telecable, Inc. on the feasibility of removing the wooden
poles in the downtown area. He said all entities have been extremely cooperative and have spent a great
deal of time and effort in coordinating and preparing solutions to the problem. He noted at this time, a
preliminary solution has been reached on the area on the north side of the Square and the area along Sam
Houston Avenue adjacent to the Methodist Church. He advised he will not have all of the costs associated
with the project until early next week, but feels that a presentation should be given to the Council at the
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 564
artiest opportunity to determine the extent of participation that will be required by the City to
ccomplish these common objectives. He felt it is important to keep the momentum moving toward accomplishing
oint objectives. He presented a fold -out map and several sheets detailing the areas under consideration
or the removal of wooden poles, which is basically the north side of 11th Street from Avenue M to
niversity, and the south side of 11th Street from Sam Houston Avenue west approximately one -half block, or
pproximately 150 feet. He said there are about 10 wooden poles in this area that will be replaced with
nderground utilities and metal light standards for the lighting, similar to what is on the west side of the
quare. He said the cost summary in the Council's handout shows the costs between $69.000 to S88,000.
Mr. Isbell advised on the north side of 11th Street from Avenue M to University Avenue, the traffic
ignals are tied together with an interconnect cable, which is what synchronizes the lights and provides
nergency power to the traffic signals if the power fails. He said this is an area with aerial wires on
oles that would have to be placed underground in conduit. He said the Highway Department has indicated
He said to relocate the telephone service will cost approximately $6,200: an alternate cost would be
$5,000 if the city will lay two parallel PVC lines from roughly the Police Department to the east side of
University Avenue, or 150 feet each side of University, with the Telephone Company furnishing the materials
and the city furnishing the labor. He said he is not sure this would be cost effective for the city, and
this should be reviewed. Mr. Isbell said the telecable relocation will cost approximately $1,070 with no
city labor or materials involved.
He said the GSU utilities relocation is broken into two segments that portion on the south side of
osts range from $12.700 to $19.817. He said in each of these scenarios, previous problems were in double
iguring many of the costs as the Telephone company would figure replacement of the sidewalk and the city
ould figure costs of replacing the same sidewalk, so we were seeing some high dollars, but there were
ctually some dollars entering into the computations two or three times. Mr. Isbell asked the companies to
liminate all of that and let the city figure those costs because it is more in tune with figuring that type
f construction. He said the cost to replace the sidewalks would range from $42,751 to $54.826. depending
Mr. Pipes said some of these costs are fairly moderate and could be attainable with the reserve for
uture allocation. He said the sidewalk costs will be considerable in that the city has been budgeting
round $20,000 for sidewalk replacement, and $42,000 is a big step forward. He said the city does not have
is downtown streetscape plan completed and it would be somewhat premature to determine what style of
idewalk pending the work done by the urban planner. He noted the city had this discussion earlier about
he work done on 12th Street. He said those sidewalks are used every day and businesses that front the
orth side of the Square would not want to be kept on dirt, mud or boards for weeks or months while the city
omes to this type of decision. He said the work can be scheduled as soon as the next month or two, or it
an be delayed for some time depending upon what is actually the impetus for the whole project, which is the
ork undertaken by the Methodist Church on their new classroom building on the south side of their facility.
, said some work will have to be done in conjunction with that, but the city can't take the power away from
hose traffic signals without relaying the interconnecting cable and providing an alternate power to those
ignals. He said many of those wooden posts that are going to be moved carry street lights at the present
t✓'
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 565
time and it will become very dark downtown once those overhead lines and poles are removed without the
galvanized poles and replacement street light heads back in with the attendant conduit.
Mr. Pipes said it really comes down to this being the easiest and the cheapest half of the Square on
which to work. He advised for a number of years, since Sam Houston Avenue was widened in the late 19601s,
most of the overhead lines had been removed on the west side of the Square, and the galvanized poles are in
place. He said the north side will be the next easiest project because most of the GSU lines are gone
except to this particular corner which powers the Courthouse, both signals, and the street lights down Sam
Houston Avenue north. He said the telephone cable, the interconnecting cable, for those three intersections
and the telecable installations are the easiest to remove and, in fact, the cheapest in this particular
area. He said this will give the city a substantial start on the east side of the Square. He said the east
and south sides are more comprehensive and require a great deal more planning and work in terms of the
preliminaries in order to get to the proposal stage. He said the city feels very confident that the
Telephone Company, GSU, and the Telecable Company will be able to continue on once this portion of the
project is completed to the ultimate goal of removing all the lines in the downtown area. He said this is
the first step and it is a considerable amount of money because of all of the attendant sidewalk work. An
earlier estimate this summer gave rise to considerable concern for the work in the 12th Street area where
Mr. Standefer was working as it had the sidewalk costs figured in and that $38,000 was alarming. He said we
can get considerable savings by the appearance of the utility work if the city is going to do the sidewalk
work and the utilities don't have to figures in those costs. He said if we can coordinate everyone's
ditching work at the same time, then we can maximize our situation, and the city is in the best position to
be the coordinator. He said this represents a considerable amount of cooperation among these utility
companies, the SDHPT, and the City to get to this point. He said the city is not under a definite time line
and it may well be the Council would like to think about this for a week or so He said this is a
bellwether for a commitment necessary to get the work done downtown because this is the easiest and cheapest
portion or phase of this project in the whole downtown area. He saidertainly that sidewalk figure is
substantially over cost as the city had not previously budgeted for that this particular year.
Mayor Monday congratulated the committee for their planning and encouraged it so the city can
address all four sides of the Square. She said she would assume if these dollars are expended before the
grant is received. then will not be considered as the city's matching grant She asked if there is some way
to stage this so that the dollars the city will be spending can be included as a cart of the city's first
Year grant match. She said she doesn't now how this work conforms with First Methodist Church's work, the
sidewalks, etc. She noted the city could commit $48,000, but it may not be grant eligible. Mr. Isbell said
some of these funds may be grant eligible and some may not be. Mayor Monday felt the staff should look at
that and coordinate the work. Mr. Pipes said the timing is that most of the work outlined by Mr. Isbell
this evening is somewhat independent of the work of First Methodist Church. He said, however, if we remove
three poles on Sam Houston Avenue, then the route to receive power to those traffic signals at that
intersection is removed. He said the poles don't have to come out immediately for the work to be done and
can be staged, but the work on the north side of 11th Street from the Police Station driveway to the corner,
which is scheduled for underground power and the interconnect cable, etc., could go at the same time because
if the city opens the ditch and tears up the sidewalk, it needs to get that back in place. He said doing
without sidewalks during the whole construction period on that block would Probably be alright but the city
can't iust do the interconnect cable for 150 feet as it will have to go between the signals and all the war
across. He said it can get out in the Parking area in front of the store fronts on the north side of the
Square and not actually tear up the sidewalk in order to Put the interconnect cable etc in The city can
Leave the sidewalk in- Place, he said and Postpone that maior expenditure of money for some time in the
future as a scheduling alternative: i.e.. not literally putting it in the sidewalk but putting the cables
etc. immediately adiacent to the sidewalk in the parking lane and just Patch that back pending a future
overlay moject or doing the sidewalk work. He said we could save the concrete dollars for grant match and
this way coordinate with the work whenever it needs to be done in a most time effective manner. Mr. Pipes
said whatever dollars are spent before the grant is authorized and ongoing are going to be in jeopardy as
far as the grant application. Mayor Monday felt we need to know the time frame for the church work if that
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 566
s a consideration, or anything else that is pending. Mr. Pipes said nothing is that urgent except the
tility companies have contributed a lot of time and the city has managed to get them to this point. Mayor
idewalk and have the construction of the sidewalk eligible for grant match. Councilmember Green felt the
ity should be careful to insure that even though the city may not have spent funds prior to receiving the
rant, that these funds be applicable to the city's grant match.
Mayor Monday said the city may want to accept the plans so that the utility companies know this is
e way the city is headed. Mr. Pipes said there does need to be some indication from the Council because a
t of work has gone into it to this point. He said no one expects the city to throw money at the project
keep it going. Mayor Monday asked if he needed an affirmation that the city is going to take the poles
wn. Mr. Pipes said the utility companies need specific permission of the city to remove the wires and the
Les before they can proceed. He said this is not the first act, but this authorization is a dovetail
mmitment with the city spending money. He said the city can't authorize the removal of poles until the
uncil is willing to commit to spending some money. He said it could be construed that the downtown
oject is already ongoing and if that is jeopardy for the grant, then we've already have ample evidence.
uncilmember Green said he was referring to a specific project that has not yet been voted on and if we
to on this and begin on it, then the funding may not be considered grant eligible. Mr. Pipes said it is
t necessary to confirm or affirm this particular situation. He said the staff felt obligated to bring it
the Council at the earliest possible time to make the Council aware of what can be done and at what cost.
said they tried to cover everything, and to bookend everything including the possibilities of whatever
cisions the Council may make on the type of sidewalk it might ultimately have without the benefit of the
anner, the downtown streetscape, etc., because that is part of the grant. Councilmember Green asked what
e City Manager is asking the Council to do now. Mr. Pipes said he just wanted to make them aware of this.
Councilmember Bell felt authorization to proceed should be delayed for at least a week because he
eeds more time to review this. Councilmember Barrett said this intent complies with the city's long term
oal to get the utility poles down and place the wires underground, but he certainly doesn't want anything
tarted or cut down that would tie up Christmas traffic or hinder businesses on the Square during he
hristmas season. He said he would too like to know about financing. Mayor Monday suggested the Council
e grant. He said at this point, the Council can begin to develop time frames. Councilmember Bell said
is will also give the Council time to visit with Mr. Pipes privately to ask questions about some of the
chnical specifications.
Councilmember Carter said he is appreciative of Mr. Isbell's work. He said some good points have
een raised tonight that should be addressed before the commitment is made. He said he is sorry they are
of making the commitment tonight to spend the money. He said the city is not sure it will get the grant
nd if it does, the city is matching two to their one, so it is not a grant in which we have huge
ommitments coming in from someone else. He said the city is actually putting up more than the federal
overnment. He said he would just as soon spend the money whether the city gets the federal money or not.
e said he wishes there were some way these questions could be answered as quickly as possible. He said Mr.
ingletary [with GSUI deserves some credit because the city ran into resistance locally prior to his
eadership. He said he hates to take a chance that some of these agreements might break down. He again
hanked Mr. Isbell and the utility companies and city staff. He said he hopes in a few days the city can do
hat it is discussing.
Mayor Monday agreed, noting whether or not the grant comes, this is something to which the city is
fitted, but felt it is sometimes worthwhile to work smart and to review the ramifications.
cilmember Barrett felt too the city should get credit for as much of the money they plan to spend as
ible, it certainly does want to go ahead with the project.
1
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 567
CITY MANAGER'S REPORT- -GENE PIPES
Texas Highway Trunk System
Mr. Pipes, City Manager, advised a copy of Huntsville's presentation to the Commission and staff of
the Texas Highway Commission for the public hearings on the Texas Highway Trunk System is in the Council's
packet, and represents a compilation of the presentations that have been made on behalf of the City, Walker
County and the Highway 19 Association over the past two months. He said the city has attended four hearings
[Houston, Austin, Arlington, Longview] in an attempt to stress the importance of Highway 19 as the most
economical and practical alternative to expanding I -45 [north -south arterial route] to Houston and Dallas,
Oklahoma City, Tulsa and beyond. He said they have encountered some interesting perspectives from other
cities and communities presenting on behalf of other highways and highway associations across the state. He
said they have been told that if Highway 19 and other designations are not included in this trunk system
planning for the next 30 year planning period, then they are out for that period of time. He said we have
the possibility of having local projects funded for improvement, and in all likelihood, if Highway 19 does
not reach the threshold this time around, then that period is lost. He said this is the exact situation the
Highway 19 Association was in in the late 1950's and 19601s, when I -45 was selected as the route for the
interstate system and the Highway 19 Association was active at that time trying to reach this threshold. He
said it has been 30 years and we have gotten some local projects done and we are grateful for them, but
being left out of the system for another long planning period would be a major set back in this particular
effort.
Mayor Monday commended Mr. Pipes for make presentations at all of the hearings. She said he is the
only one that has made all of these hearings. She encouraged the Council to read the presentation, noting
Mr. Dale Brown, City Planner, authored it and she feels it is one of the finest speeches she has ever seen
done. She said there are eight counties working on this and 15 cities and while there have been lots of
speeches made, this speech is by far out ahead of anyone else as it is beautifully done. She said this
shows the type of work Huntsville does and she felt the presentations and materials presented were very
professionally done. She said Huntsville has gone the second mile on this effort. Mr. Pipes said the only
consolation he will have if they are not successful is that he knows there was no stone unturned and it
won't be for a lack of effort. He said the towns and counties along the route have turned out very
diligently, however, now it is up to the Highway Commission as to how we will measure up in February. He
said he is hoping as many of the highway delegations as possible will go to the Highway Commission meeting
in Austin in February for the final determination on the highway trunk system and for another presentation
by the Highway 19 Association to the full commission. Hhe said he will keep the Council advised about this
meeting.
Taxing Decisions
Mr. Pipes then presented an excerpt from a local newspaper alerting the City to the taxing decisions
about the Freeport Amendment that was passed as a constitutional amendment in November. It was noted
Constitutional Amendment No. 5 provides for a local option exemption from Property taxes for most goods
temporarily in Texas for manufacturing or Processing and shipped out of state within 175 days of being
imported or acquired in the state. It was also noted this amemdment was envisioned as an effort to enhance
Texas' ability to attract and hold investments and create more jobs.
Mr. Pipes said the city will have to take affirmative action or this will take effect, without
action, in the very near future. He said the Appraisal District has provided some additional information
today and he will provide it to the Council at the next meeting. He said this is a substantial concern for
both the city, county, school, and everyone affected because, as an optional system, the city has one time
during which it can opt out and it can then get back into the system, but if the city lets it go into
effect by inaction, then it is locked in as long as the constitution reads as it does today for "goods in
transit." He said this is substantial revenue to some local taxing entities. He said it is not
particularly meaningful to the City of Huntsville, but may well be meaningful in future considerations as
the city expands and moves outward.
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 568
Mayor Monday noted the date for this decision to be made is April 1. 1990. Councilmember Barrett
aid if we want this to go into effect in 1990, it has to be by January 1. 1990. Councilmember Green asked
he City Manager is he is suggesting the city would want to tax "goods in transit." Mr. Pipes said this is
hat we do today, and if we don't take affirmative action to continue that practice, then we will lose that
mount of revenue. Councilmember Green said and if we do, we may also lose as they may find another place
o locate. Mr. Pipes noted this is quite possible. Councilmember Bell asked City Manager, Gene Pipes, to
eview what impact this will have on the city. Mr. Pipes said it is difficult to determine as the Chief
ppraiser, Grover Cook, has already commented it depends upon the declaration of the company at the time.
e said it is difficult to predict what will be the impact of a particular situation within the corporate
imits. He noted the city probably has two, maybe three companies, [quality Valve and Masters Chemical]
eing the most likely to have something of this nature. He said in the county, immediately adjacent to the
ity limits at the present time, in the school district, we have Texas Mirror, McMurry Oil Tools facility,
nd others that would have some goods in transit, but pegging what those would be and establishing what
ffect that would have will be most difficult. He said in a large metropolitan area, such as Harris County,
ith all of the activity and tax base they have, it would probably not be noticeable in terms of a barometer
ype reading, but in terms of a local school district with a single plant facility, one might have
onsiderable school tax revenue lost at one time if lost in "goods in transit" property taxes.
Councilmember Green commented he suspects Huntsville may not be considered for the location of a
iew plant if it has a "goods in transit" tax. Councilmember Barrett felt, however, if Huntsville does not
ass this now, it will be tying the hands of future councils because the city can always terminate the tax,
ut may not retrieve it after April 1 [or January 1 for 19901. Mayor Monday asked Mr. Pipes to check on the
rocedure to reinstate the tax at a later date; i.e., will it be a year or two days; if there were a
listribution center that wanted to locate in Huntsville contingent upon no "goods in transit tax, " - -how much
ime is required for the city to relinquish it? Councilmember Hammock felt the council needs a lot more
nformation and questions answered, noting this article is just a media report. Mr. Pipes advised he just
canted the Council to be aware of the magnitude of the decision it will need to reach in the next several
MAYOR'S ACTIVITY REPORT --JANE MONDAY
Mayor Monday noted a Huntsville, Alabama Storm Relief Fund has been established. She noted since
sville, Alabama is Huntsville's sister city, Mr. Bounds, City Attorney, was asked to call there to see
things were going. She said the City and County were most appreciative of this initial contact. She
uraged the Council and their friends to contribute to this fund in the next week or so as this will be a
appreciative gesture from one city and county to another.
Mayor Monday advised the Council when the officials from Huntsville, Alabama [Mayor and Rotary Club
:,resident], were here in 1985 and toured the City they asked where the city's spring site is located as
they were established around a spring and thought Huntsville, Texas may be as well. She said she was
- mbarrassed to have to show them Foster's Car Wash as the spring site. She said they sent a picture of
their spring site after they returned to Alabama, and it is very nicely landscaped, beautified, and is the
:enter of their town. She said this is the point at which the dream for the development of Huntsville's
>pring was born as since then she has wanted to open Huntsville's spring. This is a now a part of
luntsville's downtown plan. She said now that Walker County owns this property, it is hoped this mutual
pat will now be accomplished.
1
1
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 569
Retired Teachers Presentation
Mayor Monday advised she spoke to the Retired Teachers recently to update them on the City's 1990
budget and what is envisioned for the next decade.
Drug and Alcohol Abuse Task Force Action Plan
Mayor Monday advised the Drug and Alcohol Abuse Task Force will have their action plan in the
Council's packet by December 5, 1989. She said on December 12, they will be invited to make a formal
presentation for adoption. She proposed the city host a reception for the 100 volunteers who have worked on
bringing this action plan to the Council the first time and for all the volunteers who agreed to work on the
steering committee and the action plan for the next year. She said this group has met with the school
district, the county and with Sam Houston representatives who are all well pleased with it. She said once
it is adopted, they hope to go to the county for adoption and then to the school district. She said with
the Council's approval, she will proceed with those plans. The Council indicated concurrence.
Welcomed SHSU Students and Parents
Mayor Monday advised she welcomed students and their parents at the University Saturday and that
they had a nice crowd.
LULAC Organized in Huntsville
On Saturday evening, Mayor Monday advised she joined Councilmember Carter to participate in the
installation of the Huntsville Chapter of LULAC. It was one of the largest chapters ever as most chapters
start with ten members, but this one started with 61 members and excellent leadership, she noted. She said
it was a very formal evening, beautifully done.
Judge Robinson Roast
Last evening County Judge Frank Robinson allowed himself to be verbally roasted by his friends and
associates to raise funds for the Early Childhood Prevention Program of MHMR, reported Mayor Monday.
Councilmember Barrett commended the Mayor on her rendition of Mimi Pearl during the Roast, noting she did a
good job and can go on to Nashville when she completes her term as Mayor. He also commended Mr. Pipes for
his role in the Roast.
Home Health Care Proclamation
Calendar
The Council was advised the Mayor signed a proclamation on behalf of Home Health Care of Huntsville.
December 5. 1989 -- City Council Group Photo will be taken.
December 7. 1989 -- Christmas Parade, 7:00 P.M. - -the Council is invited to ride in it and will
receive a letter from the Lion's Club soon.
Christmas Decorations
Mayor Monday updated the Council on the downtown Christmas decorations. She said the large wooden,
painted teddy bears, tin soldiers and Raggedy Anns, being created by local citizens, look great and will
soon be installed in the downtown area.
MINUTES OF THE MEETING OF NOVEMBER 21, 1989 BOOK "P" 570
COUNCIL ACTION
Councilmember Gaines indicated how pleased she is with the development of downtown.
Councilmember Bell indicated he noticed Avenue J is being paved and commended the city for all its
paving work. He suggested the Council take a tour of all of the new paved streets. Mayor Monday felt this
is a good idea and asked the City Manager to arrange the tour.
Councilmember Gaines and Mayor Monday wished everyone a Happy Thanksgiving.
MEDIA INFORMATION
Mr. Brewer advised the Council this will be his last City Council meeting because he will be opening
nd managing the Trinity edition of the Huntsville Item, with a weekly beginning in December and the
rinity edition of the Item starting in January. He said he will do all of the editorial writing and
tories. Mr. Brewer noted it is sort of a promotion for him and he will be able to set his own hours
hich will expedite his graduation from SHSU. He thanked the Council and staff for putting up with a
oung reporter and for their support during his time as the City Hall Reporter, noting it is quite an
ducation to cover the City Council. While they have been through some interesting times, he said he wanted
o thank them all, and stated one never knows, the way things go, he could be back as the City Hall Reporter
n three weeks. Mayor Monday said the Council will follow his career with a great deal of interest.
Mr. Don Norman, Reporter of KSAM -KHUN Radio, advised some $1,500 has been raised for the Huntsville,
labama Storm Relief Fund and $2,500 has been raised from the County Judge's Roast for the Early Childhood
revention Center Program for MHMR.
Respectfully submitted,
au t Uh e , City Secretary
November 21, 1989