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MIN CC 09/11/1990MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "0" 191 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 11TH DAY OF SEPTEMBER, 1990 IN THE CITY HALL COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:00 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. Hammack Percy Howard, Jr. Ruth DeShaw, City Secretary William H. Knotts, Jr. CONVENE AND RECESS TO EXECUTIVE SESSION Mayor Monday called the meeting to order at 5:30 P.M. and then recessed the meeting into an executive session in the conference roam to review the personnel committee's recommended evaluations of Charter officers. The executive session ended at 6:00 P.M. The Council then entered its posted work session to review the 1990 -91 proposed budget. CITIZEN INPUT The Council reassembled in the Council Chambers at 6:45 P.M. to hear citizen input and inquiry. Councilmember Bell noted if he is reading the figures correctly, the city's property taxes have gone down by $466,000 and the sale taxes have gone up by $970,000, which is approximately a $500,000 increase in net revenues over a period of five years. Mr. Spence said this compares 1983 -84 against 1988 -89. Councilmember Bell said then we have gone up by $500,000 in absolute figures. He asked what the inflation rate was during this same period of time. Mr. Spence said we have to remember there was another $300,000 increase during that same period of time from the rest of the revenues. He said on the Last page, general fund totals, the last two columns represent the gross increase in revenues comparing 1988-89 with 1983 -84 and /or 1986.87. Councilmember Bell asked if he had taken into account inflation during this same period. Mr. Spence said these are just figures off of the city's books and they are not projections. Councilmember L. Jack Spence Mr. Jack Spence said he asked for some figures and decided to bring them himself. He apologized for the heading on the report he passed out, noting he is not a computer expert. He said an expert is anybody that is 500 miles from home. He noted pages 1 and 3 go on top of page 2 and 4. He said the general fund total in the first column is actual revenue, 1983 -84; second column is actual revenue, 1986 -87; third cot" is the difference between 1983 -84 and 1986 -87; fourth column is actual 1988 -89; fifth column is the difference between 1983 -84 and 1988 -89; the last column is the difference between 1986 -87 and 1988 -89. He said the increase in revenue for 1988 -89 over 1983 -84 is 5804,939. He said this is only revenue and he thinks it should be done in this same fashion for expenses. He said he realized the city's audit shows a ten year trend, but his point is the current property taxes have only decreased $456,000 and sales tax has increased in that same period of time to $970,000; the sales tax has increased twice, as compared to the reduction in property taxes. He said he does not remember which year the extra sales tax went into effect. He said the troops [and he is talking about the guys out there, not the Council] don't understand a budget that a show dog couldn't jump over. But they can understand a comparison, a trend, by showing what the city spent one year and what the city took in two years later and how that trend, of those items, compares with what the city is attempting to do. He said if the expenses were done in this same fashion, and he didn't have time, or he would have done it, then we can see where the money went. He said the Council's objective, in his opinion, should not be how many dollars can 1 spend, but how few dollars can I spend. Electrical franchises total 5620,000- -who pays that, he asked. He said this is just another form of tax - -you and 1 pay it. He said "a skunk by any other name would stink just as loud." Councilmember Bell noted if he is reading the figures correctly, the city's property taxes have gone down by $466,000 and the sale taxes have gone up by $970,000, which is approximately a $500,000 increase in net revenues over a period of five years. Mr. Spence said this compares 1983 -84 against 1988 -89. Councilmember Bell said then we have gone up by $500,000 in absolute figures. He asked what the inflation rate was during this same period of time. Mr. Spence said we have to remember there was another $300,000 increase during that same period of time from the rest of the revenues. He said on the Last page, general fund totals, the last two columns represent the gross increase in revenues comparing 1988-89 with 1983 -84 and /or 1986.87. Councilmember Bell asked if he had taken into account inflation during this same period. Mr. Spence said these are just figures off of the city's books and they are not projections. Councilmember MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "O" 192 Bell asked about the percentage of increase compared to the rate of inflation during this same period. Mr.i Spence said ten percent over four years would be $509,000 roughly. Councilmember Bell noted then the cityl, just kept even with inflation. Mr. Spence said this may or may not be true. A discussion ensued concerning',.' the actual rate of inflation for the last five years. Councilmember Bell felt it has been at least 3�i percent a year; Mayor Monday noted it may be a total of 12 percent; Councilmember Green felt it was moreli than that. Councilmember Bell noted then, what Mr. Spence is saying, compared to inflation, the city shoutdli be commended, because it basically spent less and took in less than it did in 1983, relatively speaking. Mr. Spence said the only way one can establish that for sure would be to have the rest of the figures. He said this is only the income. He asked where did the money go? Than, he said, we'll have a better idea of how much of it was payroll. Councilmember Bell said we can't deficit spend so the City obviously could not spend more than it took in. Mr. Spence said the point is what is the increase by account number? He asked how much more money did the police department spend for people, not equipment? How much and where did each one of those $589,205 go, he asked? Councilmember Bell said probably for inflationary dollars. Mr. Spence said no, because the city is carrying a sinking fund from one year to the next, so it hasn't spent it all - -how much does the fund fluctuate? He listed the hotel motel tax amounts of $121,000 in 1983; $99,000 in 1986; $112,000 in 1988, and asked where did the money go? He said two of those years, the city wasn't even checking where the money went. He said he knew and the Council knows now but it didn't know then. Councilmember Bell asked what he meant by this. Mr. Spence said the city took back control of the hotel -motel tax as far as the Chamber of Commerce was concerned. He said in 1983, the City didn't know where the money went, because the Chamber spent $300,000 in four years and nobody even knew it. Mayor Monday noted they had a budget that was accepted and adopted which is of public record and there was also an audit; these documents are at( of record. Mr. Spence said he has most of those copies and it took some doing to get them. Mayor Monday noted again, these are all public record. Mr. Spence said when when one tried to get it in 1986 and 1987, it wasn't public record, because they would not give him the figures. He said the City is now back in the same trap with the Festival. He asked if the City has checked on it. He asked if they noticed this year there was no announcement on how much money was made. He said the City has contributed, he knows, because in the Chamber of Commerce's budget presented here recently, there was $7,500 listed in the arts fund. He asked if the city requires people to account for how they spend the city's money? Mayor Monday asked Mr. Pipes to respond to this. Mr. Spence said he would like to see it. Mr. Pipes said all of this is public record. Mayor Monday said the staff will be glad to provide the public '- record to him. Mr. Pipes said he didn't have a response specifically to these figures, but they are over the same period for which Mr. Spence raised the question last week. He said he asked for a comparison of five years between 1985 and 1990, so taking the budget year 1985 -86, the total budget in General Fund, Water 8 Sewer and Sanitation, totals $13,568,939. He said the budget the city is considering tonight totals $14,076,240, l or a net difference of $507,301, or a 3.73 percent increase over five years. He said there was a greater increase in general fund in that period of time, some $860,746, which is a 15 percent increase. He said the !..' Police Department, for instance, had a 37.8 percent increase during that time from a budget of 81,395,000 to $1,721,000; most of this was the police officers added in 1988 and 1989 to meet the requirements of the rising crime rate and the reaction to those situations at the time. Mr. Pipes advised other major budget increases were due to parks. He said the City added a number of new parks (now totaling 14) in that same period. He felt it is quite a considerable accomplishment in itself to maintain and develop those facilities for the difference of $69,960. Finally, there has been an increase in the street department expenditures budget in that same period of 1G.7 percent or $92,696, and noted it was a period of some considerable inflation. He said 1987 was the year that the city did have the 112 cent sales tax referendum, which was approved by 80 percent of the voters. He said the city did reduce ' the tax rate from 52.5 cents to 38.4 cents and this rate has been held for three years since that time. He said a 3.73 percent increase overall during that period of time speaks very well for the local unit of government serving the citizens here in Huntsville. At the same time, he said, the water and sewer fund is absolutely flat - -there are very, very few dollars difference in the operating budgets in water and sewer in 1985 -86 and 1990 -91, and in fact, the major increases are in the sanitation area and every increase that has MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK ego 193 been added to the sanitation fund budget, as the Council well knows, is attributable to the regulat( requirements of the Texas Department of Health and the Environmental Protection Agency for environmental operational sensitivities that are certainly meritorious and all those increases had to be implemented to in compliance with state law and regulations. He said he is quite proud of the budgets that Mr. Spence brought to the Council's attention. Charles Smither. Jr. Mr. Smither said he came to get the answer he was promised several weeks ago concerning the questi on statements before the Council. Just to refresh the Council's memory, he said, in the July 24 meeting the Council, three contracts were approved by the Council: Mr. Richard Haas working drawings for artwor Mr. Kim Williams, Architect, for construction management; and Mr. Kim Williams, Architect, for landsca master plan. During a later discussion, he said, it was stated in a direct answer to a question, as understands the minutes, that these funds were all Meadows money, not taxpayers' money. He said believes, from reading the budget of the Meadows contract, that this statement was incorrect. He said has not received a response from the City concerning this and he would like to get an answer to h question. Mr. Pipes said the minutes of the Council meetings are not verbatim transcriptions. He said h believes, if he recalls correctly, that Mr. Knotts did ask if the murals in the downtown area were Meadow. Foundation money. He said his response was that yes, that is correct --the mural paintings on the building were Meadows money. Mr. Knotts said the Council made the contract with Mr. Haas with the stipulation the when this instrument is executed, the city would pay $16,000. He said it was in this regard that he aske if this would be city money or Meadows money and Mr. Pipes responded that this is Meadows money. He sai Mayor Monday then said the city has not spent any city money yet and it will not until the Council goe through the budget. Mr. Pipes said he misunderstood this question. He said, as he remembers, th preliminary discussions on those three contracts, this money was an attempt on the city's part to get a jum on the situation and have the murals ready for implementation as soon after October 1 as possible. He sai he never remembers any indication whatsoever that the Meadows money would even be available until October CounciLmember Knotts said he just asked the question as to whether these contracts are paid from city mone or Meadows Foundation money and Mr. Pipes said it is all Meadows money and then the Mayor said the Counci is not spending any city money. Mr. Pipes said all of the expenditures on July 24 were out of local funds Mr. Knotts said the whole issue has been very confused like the easement--one says to perpetuity; Linda say Scott was supposed to write it . . . Mayor Malay said she is really sorry Councilmember Knotts had to mis Last evening as the Council spent about two and one -half hours on this. Mayor Monday said she feels it i very important that he be clear on this and she wants him to be. She asked him to visit with Mr. Pipe tomorrow or some time this week and let him go over all of that information that the Council had Last nigh and what the Council's questions were, etc. Councilmember Knotts said he'll Listen to the meeting taf recordings. Mayor Monday said good and if he has any other questions, please check with the staff becau=. the Council spent an extensive amount of time last night discussing each of those issues. Counci lmemtx Knotts said he understand that and he is sorry he had to miss. Mayor Monday said she certainly wants him 1 get his answers. Councilmember Green noted he sees there is some question about what dollars go to which project, an noted if the Meadows Foundation is going to throw in x number of dollars and the city is going to throw in number of dollars and it goes into a pot, is it then possible to identify which of those dollars comes fre which, or are they just dollars. He said he is not sure we can; we approved a budget and it makes n ' difference which dollars are used. Mr. Pipes said the city has tried to maintain identificatic segregation, but when we get right down to it, Councilmember Green is right, the city has got to put i $300,000 to get the $150,000 in order to do the mural work and it is going to be real hard to tell whit dollar is what. Councilmember Green said so the question doesn't really make any difference. Mr. Pipe agreed it is somewhat academic. MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "G" 194 Councilmenber Carter said he does not necessarily agree with this because we don't want to spend $300,000 for the murals - -we want to know how much the murals are going to cost and how much tangible other . . . . Mayor Monday noted the budget is spoken to, the City Council spent two and one -half hours on it last night - -every dollar was identified and spent and approved by Council in an open session in a lengthy discussion. Mayor Monday said it is delineated in the budget where those dollars are going and where they are going to be spent. Richard Allen Mr. Allen said he finds that the timing for what he is about to present to the Council is in conjunction with a budget meeting. He said he is sure the Council already knows that the Local K -Mart has announced, last Friday, that it will be closing as of December 21, 1990. He said it is his understanding that this decision was based not only on sales information but also there will be requirements coming very soon for each and every K- Mart--a minimum standard as far as square footage that they are going to have to meet. He said the store here does not meet those criteria, so it is not a matter of the K -Mart Corporation no longer wishing to be here in Huntsville; it is more of a corporate decision on their part that Criteria A and Criteria B have not been met and so therefore, their decision has been to close the store down as of December 21. Currently, he said, he has a project that is gearing up in an effort to garner support from the community and he is trying to get the information out through the local media. He said so far the people at K- HUN /K -SAM have been running exclusively with the story and they are hoping, within the next few days, to get everybody together to try to focus all this into a unified effort and hopefully convince the K -Mart Corporation to remain open here in Huntsville, and considering their criteria, to build a new store here. He said he has been in contact with Mr. Randy ELLisor of the Huntsville Cable TV, who has agreed to write a public information message across a couple of the channels and to provide the use of one of his Local numbers where the people can get the information as to where to write to the K -Mart Corporation or to calL the 800 number to contact the international headquarters in Troy, Michigan. Mr. ELLisor has also offered his Cable TV office facilities, he said. He said there are certain company policies that must be adhered, so K -Mart employees themselves have not been able to have an organizational meeting, but that should occur tomorrow evening and hopefully, then they can start work. He said they have distributed some informational fliers. He said the content of the flier will remain the same, but there will be a slight change in the wording. He said they are trying to be very upbeat, very unified, totally non - confrontational. He said K-Mart has announced that they are going to close, so we have to look at the situation realistically. If we do not make some type of effort to convince them to either review or reverse their decision, then it is done and there are no winners in that situation; K -Mart will not be here, we're losing the revenue, the jobs, and there will be an impact, not only on Huntsville, but Walker County in general. He said he would urge the Council to please either individually or collectively draft some type of information and send it to Mr. Antonini, who is Chairman of the Board of the K -Mart Corporation. Hopefully, he said, with the support of the Council, and if we can get a good community effort started, we can get their attention and allow them to see that we do want K -Mart here in our community. The focus of this should not be the basic fact that the K -Mart is closing, but what we are Looking at here is a major corporation that is pulling out of our area. At this time, no one has said anything as to whether or not they are going to be back, whether or not any of their subsidiaries will build here in the future or pull out. Right now, he said, we have everything to gain and nothing to Lose by making the effort. He thanked the Council very much. Mayor Monday advised she did reach Mr. Dave Cich, President of the Chamber of Commerce, who has written a very nice letter form the Chamber of Commerce which he has shared with the Council. She said on behalf of the Council, she will be writing a letter to the K -Mart Corporation expressing the city's desire to have K -Mart remain in Huntsville and she will share that with each of the Council. She said a copy of the letter will be made available in the Council Meeting for review if anyone would Like to write a similar Letter. She said she feels she can speak for herself and also the Council in saying that the City is certainly interested and supportive of this effort. MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "0" 195 Councilmember Green asked if K -Mart owns or Leases its facilities. Mr. Allen said he did not know Councitmember Green noted historically, they Lease and do not build their own. Mr. Allen noted Mr Antonini, Chairman of the Board, is a personal hero of his. He has selected a new direction for K -Mart i the 1990's and the corporation itself wilt be undergoing some changes that are going to be extreme[ beneficial to the communities in which they are located, he said. whether or not they own their ow facility, he did not know, however, there is a public relations office at their International Headquarters He said Ms. Mary Lorenz is the Public Relations person who has been releasing the quotes to the pres locally. He said she will probably be able to provide additional information. CONVENE REGULAR MEETING Mayor Monday then reconvened the formal meeting. Councilmmber Percy Howard, Jr., presented invocation. CONSIDER THE MINUTES OF THE PREVIOUS MEETING Councilmamber Howard seconded the motion All were in favor and the motion passed unanimous Lv. OPEN PUBLIC HEARING utility rates. Charles Smither. Jr. Mr. Smither said he wants to speak in opposition to what is termed the "downtown revitalization project," or the "Meadows Grant." Based on the contract agreement letter between the City and the Meadows Foundation, just considering the subtotal for the three year project, not including a special project, such as the downtown facilities or improvements, simply the above the line sort of thing, the city has, in effect, agreed to and is committed to spending $383,500, with the exception of some office furniture that is budgeted at 51,800, being no hard assets received by the city, no sidewalks, there won't be any utility relocation out of this money, no handicapped access, only the murals and facade painting is what will be David Burris. Library Board Member Mr. Burris, a member of the Library Board, said four decision packages were submitted on behalf of the Library to the City Council for an additional clerk 11, additional equipment [library shelving], and the repaving and restriping of the parking lot. He said most of that requested is minimum to keep the library going. He said the Council needs to be aware that these items are not going to solve the Library's problems Long term and the Council at Least needs to be aware of a few problems the Library is going to have. According to Texas Library Association statistics, for a population of 26,500, such as Huntsville„ the City should have 13 staff members at the Library; it currently has six full time and they have asked for one more. He said Huntsville should have a minimum of 16,000 feet to house the holdings of the Library but it currently has approximately 7,000 square feet. He said the library staff does a very good job with what is available to them, but essentially, the insufficient space has led to the fact that they are not able to�� have enough different collections to satisfy the members of the community. He said there are many things ! that the community would Like to have that they can't house and won't be able to house unless they have more space. Of course the lack of staff has led to a problem, he said, as they are currently not able to keep the library open as many hours as many citizens of the community would like. In general, he said, with the current location of the Library, it is never really going to be possible to satisfy these needs. He said at one time, prior to his board term, the Library had a consultant Look at putting a second floor on the Library. He said the building is really not built so that a second floor would be a feasible thing to do. He said he wanted to make the Council aware that at some point in the not too distant future, some very serious consideration needs to be given to finding another location for the library and increasing the staffing and space. Charles Smither. Jr. Mr. Smither said he wants to speak in opposition to what is termed the "downtown revitalization project," or the "Meadows Grant." Based on the contract agreement letter between the City and the Meadows Foundation, just considering the subtotal for the three year project, not including a special project, such as the downtown facilities or improvements, simply the above the line sort of thing, the city has, in effect, agreed to and is committed to spending $383,500, with the exception of some office furniture that is budgeted at 51,800, being no hard assets received by the city, no sidewalks, there won't be any utility relocation out of this money, no handicapped access, only the murals and facade painting is what will be MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "G" 196 received for this 8382,500. Part of this money is the grant from the Meadows Foundation and maybe there is some grant money from some other organizations, but he feels that under the circumstances, this large amount of money could be much better spent in many other areas of the city that will benefit more citizens. If nothing else, he said, the city could complete part of the water system someplace and make it more attractive for industry. ((CLOSE PUBLIC HEARING � CONSIDER FLOW METERS FOR SEWER COLLECTION Flow Meters for sewer collection system in conjunction with ELMUD to Bradburn & Associates in the amount of 820.430 to be paid as Prescribed by contract on a 1/3 for utility district and 2/3's for city basis �(813.620). Mr. Pipes said the City has been exploring the installation of a metering system on the sewer collection facilities in South Huntsville for some time. He presented Mr. F. Boyd Wilder's memorandum of ISeptember 6, which advised that in the June 26, 1990 City Council meeting, the staff obtained permission frw the Council to advertise for bids for metering equipment for the ELMUD /City sewer collection system. Mr. Wilder noted this metering equipment is part of the "agreement for water, sewer, and garbage services (between the City and ELMUD." The Council was advised that it approved $16,000 for this purchase, with i ELMUD paying one third, or 85,333. ii Mr. Wilder reported that three bids were opened on August 17, 1990 for this metering equipment, Iranging from 820,430 to $23,400. He then recommended the award of the bid to Bradburn & Associates for Ii820,430 to be paid from "Reserve for Future Allocations," with the city's share being 813,620. Mr. Pipes Isaid Elkins Lake Municipal Utility District has agreed to pay one third of the low bid, which amounts to �1IS6,810. Councilmember Green made the motion to approve of the bid and payment Plan as outlined above and Councilmember Bell seconded the motion. All were in favor and the motion passed unanimously. 'I ,Consider annual contract for uniform services to A.R.A. for a second year at $3.65 Per employee per week Mr. Pipes presented a memorarxkm from Mr. Mark Bosma, Purchasing Agent, advising that the City has Ijust completed the second year of a three year optional contract for uniform services. Mr. Bosma noted the '!contract states that the City reserves the right to extend the contract for two years, based on a period of one year at a time. Mr. Pipes advised it is the staff's recommendation to continue the contract for a lsecond year with ARA uniforms at the rate of 83.65 per employee per week. He noted the present rate elsewhere for the same service is 84.25 per week. Mr. Pipes advised this company had a rather significant �afire in their facility recently, in which a large number of uniforms were destroyed, however, they have Ireplaced those uniforms and are maintaining the current rate to the city. Mr. Pipes said the city had been Ipaying 85.75 at one time for uniform services, so this is quite a considerable savings. Councilmember Green made the motion to approve of this bid as presented and Councilmember Gaines seconded the motion All were Ilin favor and the motion passed unanimously. ( l CONSIDER ANNUAL BID FOR ACID Consider Bid No. 90 -1 for Hydrofluosilicic Acid for a second Year to Van Waters & Ropers Inc at 8 1495 Per pound Mr. Pipes advised the City has just completed the first year of a two year optional contract. He said the city has the right to extend this contract for another year. He presented the recommendation of the Purchasing Agent, Mr. Mark Bosma, to continue the contract for a second year with Van Waters & Rogers, (,Inc. He noted we are currently paying 8 .1495 per pound and the supplier has agreed to honor that price for another year. Councilmember Howard made the motion to approve of this recommendation and Councilmember Barrett seconded the motion. All were in favor and the motion passed unanimously. i I I� iJ MINUTES OF THE COUNCIL MEETING OF SEPTEMBER 11, 1990 BOOK "011 197 CONSIDER JOHN DEER REPAIR undercarriage Mr. Pipes advised this machine is currently working in the landfill. He said repairs are needed the undercarriage in the amount of E7,930.29, including freight charges. He recommended its repair as s as possible. Counci Lmember Green made the motion to approve of this expenditure as outlined Councilmeaber Bell seconded the motion. ALI were in favor and the motion passed unanimously. ADJOURNMENT Respectfully submitted, � i, 1 tRdi DeSh�u, 6 ty Secretary September 11, 1990