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MIN CC 03/25/1997CITY COUNCIL MEETING OF MARCH 25, 1997 BOOK "S" 81 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 25TH DAY OF MARCH, 1997, IN THE CITY HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M. The Council met in regular session with the following members present: COUNCILMEM 3ERS: William B. Green, Mayor Dave Luuing Officers: Dan S. Davis David Martinez Gene Pipes, City Manager Ronald L. Lange Ann lames Scott Bounds, City Attorney Vance Howard Marjorie Rex Danna Welter, City Secretary ABSENT: JoAnn Matthews 5:00 P.M. Proclamation honoring Captain H. B. (Smooth) Lawson on his retirement from the Huntsville Fire Department following 20 years and 8 months of service as a volunteer firefighter. OPEN PUBLIC HEARING TO RECEIVE COMMENTS CONCERNING THE PROPOSED FREEZE AND PLAN BY ENTERGY /GSU AND THE RESPONSE TO THE PLAN AS RECOMMENDED BY THE COALITION OF CITIES AND THEIR RATE CASE CONSULTANTS 1. Stan Foley, Entergy, discussed the Company's "Transition to Competition Plan". INVOCATION Invocation by Boyd Wagner, First United Methodist Church. ATTENDING CITIZENS 1. Walker County Judge Charles Wagamon. to discuss the Walker Countv Trash Bash Day activities and reouest funding assistance to dispose of the waste that is collected. III Judge Wagamon and Commissioner Reynolds stated that action taken this morning in Commissioner's Court commits the County to match funds dollar for dollar with the City for transfer station fees up to $3,000 for the April 5th trash bash, and requested that the I� City take similar action. The first $4,000 would be paid by Walker County Proud with donated funds, with the remainder to be split �f between the City and County (up to $3,000 each). �i Councilmember Lange made a motion to approve up to S3,000 to be matched by the County to fund the transfer station fees for the April 5 trash bash and Councilmember James seconded the motion The motion passed unanimously. NOTE Councitmember Matthews absent. CONSIDER ORDINANCE 97 -3 -25.1 IMPLEMENTING THE RATE PLAN AS PROPOSED BY THE COALITION OF CITIES IN RESPONSE TO THE ENTERGYIGSU MID- MERGER RATE FILING AND PROPOSED DEREGULATION IMPLEMENTATION PLAN Councilmember Luning stated that he and Mr. Pipes went to Beaumont yesterday for the public hearing on the rate case with Entergy and to meet with the Coalition of Cities. One thing that has been brought out and that we are all aware of and very appreciative of is that Entergy is a very good corporate citizen. Through their Team Cities program, they make very generous contributions toward Economic Development in various cities and towns throughout East Texas, including Huntsville. Entergy also makes generous charitable contributions and participates in many local activities. For all of this we give a heartfelt thank you! As to the rate case, Entergy and the Coalition of Cities have somewhat different viewpoints as to an appropriate approach. Entergy, being an IOU, of course wants to provide good service while generating a profit for their shareholders. Most people believe that deregulation in some form or other will occur. Entergy has presented a rate case plan anticipating deregulation and trying to position the company for when this does occur. As to date, the legislature has not addressed deregulation and it is unclear the time frame in 11 which deregulation will occur. The consultants for the Coalition of Cities have approached the rate case by taking into account the merger agreement between Entergy and GSU in which it is stated that merger related savings are to be shared equally by the customers and the shareholders, and by also following existing regulatory statutes. Since it is unknown what the legislature will eventually do, it appears to be better to go with a rate case analysis based on existing statutes. If the proposed ordinance is adopted, it states that the new rates will go into effect immediately. Entergy then has ten days in which to implement new tariffs. There is a variety of things that can happen before any new rates will go into effect, and most likely the PUC will make some sort of a final decision, which may be a year from now. CITY COUNCIL MEETING OF MARCH 25, 1997 BOOK S' 82 However t deadline if t t 1 i d t h th h ld b I i th we are now a a ea met we want exercise our pnmary roe n e ema ng w at a rates s on e. t s important at we tell the PUC what we think the rates should be and not just abdicate the decision to them. We also need to act so that when new rates are implemented, we are assured that for the residents of Huntsville, the rates are retroactive to June 1996. He also stated that our consultants have stated that there are other areas for analysis that will need to be completed which may lead to a request for a further reduction in the rates. Councilmember Luning made a motion to aoorove Ordinance 97 -3 -25.1 imolementing the rate plan as pronosed by the Coalition in response to the Entergv /GSU mid - merger rate filing and oroposed deregulation implementation plan, and seconded by Councilmember Davis. The motion passed unanimously. CONSIDER BID 97 -12, ANNUAL CONTRACT FOR POLICE UNIFORMS TO R & R UNIFORMS Councilmember Rex made a motion to approve bid 97 -12, annual contract for police uniforms to R & R Uniforms. and Councilmember James seconded the motion. The motion passed unanimously. CONSIDER RESOLUTION 97 -3 -25.1 AUTHORIZING THE SUBMISSION OF A TEXAS COMMUNITY DEVELOPMENT PROGRAM APPLICATION FOR A BLOCK GRANT - THOMASON AND AVENUE H (SEWER) AND TALL TIMBERS PHASE II (WATER AND SEWER) Councilmember James made a motion to aoorove Resolution 97 -3 -25.1 authorizing the submission of a TCDP application for a block grant. and Councilmember Rex seconded the motion. The motion passed unanimously. CONSIDER RESOLUTION 97 -3 -25.2 AUTHORIZING SUBMISSION OF A HOME INVESTMENT PARTNERSHIP PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR THE OWNER OCCUPIED HOUSING ASSISTANCE PROGRAM ' Councilmember Rex made a motion to approve Resolution 973 -25.2 authorizing submission of a HOME Investment Partnership Program application to the TDHCA for the Owner Occupied Housing Assistance Program. and Councilmember Lange seconded the motion. The motion passed unanimously. MAYOR'S ACTIVITY REPORT 1. Discuss the postponement of the 911 emergency address change public hearing. Mayor Green stated that with consensus of City Council the public hearing for the 911 emergency address changes will be postponed. The Community Development Department is extremely busy with other priority projects. CITY COUNCILMEMBER ACTION Authorize the City Manager to enter into an agreement with First Southwest Company as agent for the City in securing repurchase agreement for bond construction funds; authorize the City Manager to enter into arbitrage compliance agreement with First Southwest Company; and approve amendments to the Investment Policies by approval of Ordinance 97.3 -25.2. Councilmember Davis made a motion to authorize the Citv Mutineer to enter into an aereement with FSC as agent for the Citv in securing renurchase agreement for bond construction funds and authorize the City Manaeer to enter into arbitrage compliance agreement with FSC. and Councilmember James seconded the motion. The motion passed unanimously. Councilmember Davis stated that the Finance Committee recommends two additional changes to the Investment Policies: 1) Section XHI - "at least 1020/6"; and 2) Section XVI - "at least three broker dealers." Councilmember Davis made a motion to approve Ordinance 97 -3 -25.2 anoroving the amended Investment Policies. and Councilmember Lunina seconded the motion. The motion passed unanimously. 2. Authorize the City Manager to enter into a Trust Agreement with East Texas Bank of Palestine and fund the cost in the amount of $23,075.88 fmm Sanitation unallocated funds to comply with TNRCC regulations related to financial assurance for closure of the transfer station. ' Councilmember Davis made a motion to authorize the City Manager to enter into a Trust Agreement with East Texas Bank of Palestine and fund the trust in the amount of $23.075.88 from Sanitation unallocated funds to comDly with TNRCC regulations for the closure of the transfer station. and Councilmember James seconded the motion The motion passed unanimousl TML Sorin2 Meeting. Councilmember Davis stated that the TML Spring Meeting will be held on April 9, at the Houston City Club CITY COUNCIL MEETING OF MARCH 25, 1997 BOOK "S" and encouraged Councilmembers to attend; Mayor Bob Lanier will be the guest speaker. 83 Chamber of Commerce Reports. Councilmember James stated that the Chamber is not submitting their monthly reports to the City as required by the agreement. Mayor Green asked that staff check on this issue. Recvctine. Councilmember Luning stated that he will recommend that a recycling consultant be funded during the FY 97 -98 budget discussions. EMS Reauest. Councilmember Rex stated that at the next Council meeting, she will present a request for in -kind services from the Emergency Medical Service. MEDIA INQUIRIES None. ADJOURNMENT Recess into EXECUTIVE SESSION to discuss: a) pending litigation: McDonald Creek, Sam Houston Inn, Attorney General Opinion, and Townsend; and b) land acquisition: Robinson Creek Wastewater Treatment Plant site, and Avenue I and 9th Street. Danna Welter, City Secretary