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MIN CC 05/14/1991CITY COUNCIL MEETING OF May 14, 1991 BOOK "Q" 383 FORMAL SESSION Executive Session Mayor Hodges called the meeting to order at 5:15 P.M. He then recessed the Council into an Executive Session to consider real estate acquisition and disposition matters concerning Sam Houston Avenue, 13th Street, MLK Boulevard and Third Street and 10th Street. The Council also discussed pending or contemplated litigation concerning Acker V. City of Huntsville and the Jet rodder /vacuum truck supplier matter. RECONVENE FORMAL MEETING Consider the minutes of the meeting of April 30, 1991 Councilmember Barrett made the motion to approve of the minutes of April 30 1991 and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. CITIZEN INPUT INQUIRY SESSION Mr. George Russell -- Concern for destruction of environment ' Mr. George Russell expressed his concern about ". .. the treatment of public properties, i.e., Largely park land owned by the taxpayers and citizens of Huntsville and managed by the City, allegedly in the best interest of the citizens." Some months ago, he said, after the fiasco at Bush - Miller Park where the native vegetation was largely destroyed and replaced with a monocuLture grass species, the Huntsville Audubon Society voted unanimously to have the Audobon President address this group about fears that similar clearings would take place at the new Thomason Park. In the meantime, he said, the President moved to Austin and did not have an opportunity to address the group. Recently at the dedication of the Thomason Park, Mr. Russell noted, he was extremely shocked to see that the same type of bulldozing, including many trees and shrubs that had flags on them, which he had been led to believe would be saved, were knocked down, pushed into piles, and burned, right at the initiation of the nesting species of many birds in this community. He said he feels that the technological methodology was not proper in that case and feels that complete species inventories were not taken; and that those persons in charge of the public domain were insensitive to the values of soil, water quality, native species diversity, and the needs of the wildlife that inhabited that area. Mr. Russell said we need to step back and use the available expertise in this community at little or no expense to the taxpayers to Look at these areas before crews are sent in who are not knowledgeable, perhaps as far as the techniques of chopping and bulldozing and hacking, and ways of doing it in a more sensitive manner. This afternoon, on 10th Street, he noted, he just happened to drive by a Little corner lot and observed city crews out hacking and chopping on that corner lot right in the height of song bird breeding season. The question is, he said, "Did anyone bother to go out to see if Cardinals, Mockingbirds, various species of native sparrows, or other species of Warblers, Woodpeckers were residing and trying to raise a family on that particular lot "? He said he thinks that did not happen. In addition, he said, just a few minutes before this meeting, he drove by again but didn't have the time to get out and do an adequate survey of the damage which occurred, but he did notice that this was an old house site and there were species of plants that were planted many years ago which have some historic significance, which had been indiscriminately hacked down. He said it is so foolish in this day and age when we are in the year of 1991 and the rest of the wold is talking about environmental concerns and care for ecosystems that we are running amuck with bulldozers and crews of men at taxpayer expense. He said we have got to stop, there has to be some oversight. He said we must begin to recognize the value of the native plant communities and the native species on public lands. Every bush, shrub, tree, or wildflower or bird belongs to the citizens of this community, of this state, of this nation. For us to ignorantly squander, not only the taxpayers' dollar destroying our patrimony, without thinking, is to him, completely irresponsible in this day and age if we are going to promote this community as a progressive community. He said for us to operate as if this is 1950 or 1960 is irresponsible. MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 14TH DAY OF NAY, 1991 IN THE CITY XALL COUNCIL CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M. The Council met in a regular session with the following members present: W. H. Hodges, Mayor William B. Green City officers present: 0. Eugene Barrett William H. Knotts, Jr. Gene Pipes, City Manager Gary Bell Ronald L. Lange Scott Bounds, City Attorney Jams L. Carter Charles Robinson Ruth DeShaw, City Secretary Ila G. Gaines FORMAL SESSION Executive Session Mayor Hodges called the meeting to order at 5:15 P.M. He then recessed the Council into an Executive Session to consider real estate acquisition and disposition matters concerning Sam Houston Avenue, 13th Street, MLK Boulevard and Third Street and 10th Street. The Council also discussed pending or contemplated litigation concerning Acker V. City of Huntsville and the Jet rodder /vacuum truck supplier matter. RECONVENE FORMAL MEETING Consider the minutes of the meeting of April 30, 1991 Councilmember Barrett made the motion to approve of the minutes of April 30 1991 and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. CITIZEN INPUT INQUIRY SESSION Mr. George Russell -- Concern for destruction of environment ' Mr. George Russell expressed his concern about ". .. the treatment of public properties, i.e., Largely park land owned by the taxpayers and citizens of Huntsville and managed by the City, allegedly in the best interest of the citizens." Some months ago, he said, after the fiasco at Bush - Miller Park where the native vegetation was largely destroyed and replaced with a monocuLture grass species, the Huntsville Audubon Society voted unanimously to have the Audobon President address this group about fears that similar clearings would take place at the new Thomason Park. In the meantime, he said, the President moved to Austin and did not have an opportunity to address the group. Recently at the dedication of the Thomason Park, Mr. Russell noted, he was extremely shocked to see that the same type of bulldozing, including many trees and shrubs that had flags on them, which he had been led to believe would be saved, were knocked down, pushed into piles, and burned, right at the initiation of the nesting species of many birds in this community. He said he feels that the technological methodology was not proper in that case and feels that complete species inventories were not taken; and that those persons in charge of the public domain were insensitive to the values of soil, water quality, native species diversity, and the needs of the wildlife that inhabited that area. Mr. Russell said we need to step back and use the available expertise in this community at little or no expense to the taxpayers to Look at these areas before crews are sent in who are not knowledgeable, perhaps as far as the techniques of chopping and bulldozing and hacking, and ways of doing it in a more sensitive manner. This afternoon, on 10th Street, he noted, he just happened to drive by a Little corner lot and observed city crews out hacking and chopping on that corner lot right in the height of song bird breeding season. The question is, he said, "Did anyone bother to go out to see if Cardinals, Mockingbirds, various species of native sparrows, or other species of Warblers, Woodpeckers were residing and trying to raise a family on that particular lot "? He said he thinks that did not happen. In addition, he said, just a few minutes before this meeting, he drove by again but didn't have the time to get out and do an adequate survey of the damage which occurred, but he did notice that this was an old house site and there were species of plants that were planted many years ago which have some historic significance, which had been indiscriminately hacked down. He said it is so foolish in this day and age when we are in the year of 1991 and the rest of the wold is talking about environmental concerns and care for ecosystems that we are running amuck with bulldozers and crews of men at taxpayer expense. He said we have got to stop, there has to be some oversight. He said we must begin to recognize the value of the native plant communities and the native species on public lands. Every bush, shrub, tree, or wildflower or bird belongs to the citizens of this community, of this state, of this nation. For us to ignorantly squander, not only the taxpayers' dollar destroying our patrimony, without thinking, is to him, completely irresponsible in this day and age if we are going to promote this community as a progressive community. He said for us to operate as if this is 1950 or 1960 is irresponsible. CITY COUNCIL MEETING OF May 14, 1991 BOOK "0" 384 Mr. Russet said another concernis the change in plans on the color scheme on the murals on the north side of the Square. He said he had been told some time ago before the senseless demolition of the historic Thomason building, which was constructed of hand -made Walker County brick, that the color theme would be an '< historic color theme, reflective of Walker County and the Square in the 19th Century. He said he was befuddled by the sort of anemic pastel tones that were being painted on the building, but thought that those must be just -- undercoatings of some kind. He said he has been led to believe that those anemic, washed out colors, which have no historical significance at all, as far as our community is concerned, and as far as 19th Century Huntsville is concerned, are the colors that have been selected. Once again, he said, the public and the Historical Commission have been misinformed and iLL- informed, and that this lack of comunicati on, which is very costly !!. to us, must cease. Mr. Russell also told the Council that today he was driving down Highway 75 North and saw a project which he feels was completely unnecessary and wasted oast of the taxpayers' dollars of the State of Texas, 'i namely, the widening project which destroyed a number of trees which didn't need to be destroyed. He said it '.I seems that the sidewalks are being built right up against the curb, which, to him is a safety hazard on a road where 16 or 18 wheeled vehicles may be traveling at 55 or 60 mph. He said if a child were to trip or fall or be playing with a bell, bouncing it on the way to the park, just one misstep would throw that child right into S the traffic. He said there is no green median between the sidewalk and that highway - -once again, "BAD PLANNING "; we have a serious problem with planning in this community and it must be addressed. He said he has been somewhat silent about it for some time, and usually waits until his blood pressure gets real high before he comments, but there are too many of these things stacking up on us for us to continue to play ostrich and bury our heads in the sand while untold thousands of tax dollars are being foolishly spent. He then thanked the Council. Mr. Matt Hannes- Public Relations Officer, Huntsville Fireman's Pumper Team Mr. Hannes advised this year Huntsville hosted the first parade and muster which was successful. He , thanked the city for all the help it gave in resources and materials, etc. He thanked Mayor Hodges for being one of the judges and also thanked Mr. Pipes. He said he hopes everyone enjoyed helping them out. He said they are looking forward to next year's muster and to seeing more people out from the City next year. He said while the parade and event were held to awaken people to the work of the firemen, he understands the noise from the event did actually awaken some folks. Mayor Hodges felt the participation was good and there were folks here from out of town. Mr. Hannes said a team came from Conroe and as far away as Hearne. Mayor Hodges expressed his preference for red fire trucks because he feels all fire trucks should be red, not white, yellow or green. Mayor Hodges thanked Mr. Hannes for the effort of his department in conducting this successful event. Mr. Hannes said the Last such event was held in 1982. CONSIDER PURCHASING ITEMS Consider bid 91- 15-- asphaltic oil -- semi - annual contract to Gulf States Asphalt Company in the amount of $ .6525 per gallon. City Manager Gene Pipes presented the recommendation of the Purchasing Agent, Mr. Mark Bosma to establish a semi -annual contract for the periodic purchase of HFRS -2P (estimated quantity 25,000 gallons), to the low bidder Gulf States Asphalt Company, who of four other bidders bid the lowest price at S .6525 per Batton. It was noted a total of six bids were smiled out. Councilmember Knotts made the motion to approve of this bid and Councitmember Green seconded the motion. ALL were in favor and the motion passed unanimously. Consider Project 90 -10 -06 for sidewalk bids to Spivey Construction in the amount of $75.745, plus the additional walk work adjacent to the Sam Houston Grave Site and Hance Park Junior Hiah in the amount of $4.553.70 City Manager Pipes then presented the recommendation of Mr. Glenn E. Isbell, Director of Engineering Design, to award the bid for sidewalk construction to Spivey Construction in the amount of $75,745. It was noted there were a total of four bids received and this was the lowest bid. Councilmember Knotts made the motion to approve of this bid and Councilmember Green seconded the motion. All were in favor and the motion eased unanimous) Consider preliminary development costs of the Pleasant Gray Spring Site greenspace development in the amount ' of $3_,200 to be paid from general fund reserve for future allocation City Manager Pipes presented information from Mr. Glenn Isbell, Director of Engineering Design concerning the Pleasant Gray spring site parking lot and greenspace development on the southeast corner of 10th Street and University Avenue. Mr. Isbell advised in discussions with Mr. Jerry Nemec, the County's engineering consultant, several items to be considered by the Council are: CITY COUNCIL MEETING Of May 14, 1991 BOOK "4" 385 1. The area south of the District Attorney's building will be constructed and paved in order to accommodate parking in the area during the construction of the north parking lot and greenspace area; 11 1 2. The county wiLL extend the box culvert to the east as originally proposed. 3. The county will complete excavation and spring development on the north parking Lot area; 4. Mr. Isbell said he would recommend that the City install approximately 250 linear feet of curb and gutter around the parking area at an estimated cost of $2,000. He provided a sketch showing this design, noting this will divert the storm water around the greenspace area. 5. The City will furnish an existing inlet (salvaged) ring and grate and the county will install it. 6. The City will install approximately 450 cubic yards of top soil (1 inch deep) at an estimated materials cost of S900.00. The City will then seed and fertilize the greenspace area at an estimated materials cost of $300.00. Mr. Isbell said this proposal for the immediate basic work will total approximately 83,200. He also noted decisions on the greenspace development will need to be made in regard to sprinkler systems, decorative lighting and underground conduits, pavestone sidewalks, benches, railings, and Landscaping. He noted these decisions can be made at a later date without interfering with the parking lot area. Councilmemmmber Knotts made the motion to approve of the expenditure of $3,200 and Councilmember Bell seconded the motion. Discussion: Councilmember Barrett said he is going to vote against this motion because he is against the whole project, and not because he does not like parks, but feels this is an unnecessary project. ' Counci Lmember Carter noted in support of a previous comment from Councilmember Barrett, he agrees that he is right in that the Council should know what it is going to cost to develop our parks, such as Bush - Miller Park. He noted when we accept Thomason Park and begin to do work in it, we ought to have some estimate as to what that will cost. He said in this instance, the reason he disagreed with Councilmember Barrett concerning the need for a cost estimate, was because he felt we could probably calculate the cost of this small park quickly and easily if we wanted to. However, he said, he does not understand why, in the past, the city hasn't had some sort of an estimate as to what the development costs are for the parks it acquires. He expressed a concern that the city is turning some low maintenance park areas into high maintenance park areas and this will cost the city some dollars over time. He said Councilmember Barrett is exactly right; we ought to know the cost of these projects or at least have some estimate of those costs before we vote on acceptance of park lards. He said we are not doing the citizens of Huntsville a favor by voting without having those cost figures. Councilmember Barrett said he appreciates Councilme ber Carter's comments. Mayor Hodges than called for a vote on the motion on the floor. All were in favor of the motion on the floor to expend $3-200 on the Pleasant Grav Spring Site Park area except Councilmember Barrett who voted against the motion The motion however passed by a vote of eight to one. CITY MANAGER'S REPORT - -GENE PIPES Downtown revitalization/cultural plan status report Mr. Gene Pipes, City Manager, presented this report from MS. Linda Pease, Project Coordinator, to update the Council on the status of the downtown revitalization program. Ms. Pease advised painting has begun on two of the six downtown buildings scheduled for Haas murals under the Meadows Grant. She noted two artists from American Illusion, Inc. and three local artists can be seen daily (weather permitting) on scaffolding on the Gibbs Building and on the Smither Building (Adams Furniture). The Council was advised Mr. Haas was recently in town to met with the artists and to recommend signage for the participating buildings. Ms. Pease advised the target date for completion is August 9. Buildings scheduled for Haas designs are: all north side buildings, (except King's Candies which is not participating and Bargain Boxx, now under facade renovation) and the Texas Prison Museum, Ms. Pease noted, and that Scotties is complete except for signage. Mr. Pease noted that at the June 11 Council Meeting, a limited scope contract for architectural oversight of a second phase of facade ' improvement will be presented for Council approval. Mr. Pease also updated the Council concerning the master cultural plan. She noted the Arts Commission met in Houston on Friday, May 4, with Marion McCollam, a recosmended Cultural planner, who is presently designing Houston's plans. The Commission was pleased with the visit, she said, and would Like to present to the Council in June a proposal based on Ms. McCollam's agreement or recommendations that Huntsville hire a Local person to develop the cultural plan and bring an independent cultural planner to Huntsville for CITY CCUNCIL MEETING OF May 14, 1991 BOOK "0" 386 concentrated expertise in designing the process and finally to make use of Houston's consultants, as available. II She advised minutes of the meeting with Ms. McCollam are being prepared. The Council was advised that a staff assignment has been made concerning the master streetscape plan, to the Director of Community Development, to oversee the implementation of the streetscape plan, which has been accepted in concept by the Council and will be presented in final form after additional public input within the next 30 days. Ms. Pease noted currently, planning is ongoing for the priority of removal of overhead utilities on the south side of the Square. Mr. Schindler will be reporting to the Council, Pease said. Several groups have met concerning the downtown facilities /improvements, to discuss needs for theater /faci Lities development. There is a need, she noted, for community -wide planning which may be accomplished best as the process of the master cu Ltural plan is developed. Ms. Pease noted the temporary staff position recommended and budgeted is still needed and would facilitate the coordination of activities and communication in the downtown in order to highlight the events and momentum of the projects. Historical Building Survey The survey of historic buildings and sites project is on hold, Pease reported, with the possibility of consideration of the project at a Later date. Questions and concerns regarding the historic buildings of the area are answered as much as possible, she said, with already existing inventories or by reference to the walker County Historical Commission. There is the possibility of a special assignment of research assistance through the History Department at SHSU in the fall, she noted, if a professional has been hired to accomplish the survey. Consider response to Proposed IRS rules regarding FICA taxes for local governmental employees ' Mr. Pipes than presented information from the City Attorney concerning a proposed IRS regulation regarding FICA taxes for local goverment employees [56 Federal Register 14487 -95, April 10, 19917. Mr. Bounds Ili advised IRS has proposed regulations relating to whether a city employee is a member of a retirement system for purposes of determining whether the employee's wages are subject to tax under the Federal Insurance Contribution Act (FICA). A public hearing on the proposed regulations is scheduled in Washington on May 20, but outlines '! of comments of presenters must be received by the IRS by May 6, 1991. He noted the proposed regulations,, generally require all cities to begin paying FICA taxes on part -time, seasonal and temporary employees by July 1, 1991. The Council was advised that after reviewing the proposed rules, Mr. Bounds feels it appears that the rules fail to contemplate the existence of hybrid retirement programs such as TMRS and that the rules require a city to pay FICA taxes for all part -time, temporary and seasonal employees. The other practical effects, he said, include the increasing of cities payroll costs for seasonal, part -time and temporary employees by at least seven percent, and incurring to cities additional administrative expenses related to payroll program changes. Finally, Mr. Bounds reported, the IRS establishes the precedent to determine by rule that a "temporary' - employee is any employee who does not vest in TMRS. As stated in an IRS overview of the regulations, he said: 'Because retirement systems maintained by State and local government entities generally lack the full portability feature of social security, a requirement that part -time, seasonal and temporary employees be vested in any retirement benefits relied on to meet the minimum retirement benefit requirement is necessary to provide retirement income protection that is comparable to the protection provided under the Social Security system. The proposed regulations therefore require that, in order for such an employee to be treated as a member of a retirement system, he or she must be 100 percent vested in the retirement benefit used to satisfy the minimum retirement benefit requirement.-" Mr. Bounds noted if the city is required to provide Social Security for all employees not vesting in TMRS, the financial impact on the City would be substantial. Mr. Bounds said the City of Arlington has sent a response to the IRS and he presented that response to the Council. Mr. Bounds asked the Councils approval for him to send comments to the proposed rules concerning the problems noted, such as the expense of the rules, the problem of timing in making payroll adjustments and modifications, but more importantly to object philosophically to the rules on the grounds of vesting. He said CITY COUNCIL MEETING OF May 14, 1991 BOOK "G" 387 the whole purpose of public retirements systems is not being subject to general vesting requirements for other programs as indicated by Congress some time ago; for the IRS to be able to rule that because certain employees happen to be 100 vested in a retirement program or else be in social security, is contrary to Congress' mandate that those public retirement systems not be subject to vesting requirements. He said he proposed that the city oppose the rule on that basis. Councilmember Green asked even if we have a six month vesting period, etc. before someone becomes fully vested, until that time they are classified as a temporary employee from IRS rules standpoint; so from the standpoint that they are not fully vested, would the city be required to withhold from their check that portion of the FICA that they pay until they become fully vested and if they do not become fully vested because they terminate, would the city be liable for the full 15 percent or would the city have to go back to the employee for the other 7.65 percent. Mr. Bounds said he believes the city would have to withhold 15 percent during the employee's temporary status. Counci [member Green noted then until a person is fully vested, we would hold that. He asked if we turn it over to the IRS while we are holding it. Mr. Bounds said it is paid. Councilmember Green asked if the city can claim a refund when the employee becomes vested. Mr. Bonds said the city could claim no refund; this generates additional revenues for the FICA fund. Cou cilmeober Green asked if there is a reimbursement when the employee becomes 100 percent vested. Mr. Pipes said there is no reimbursement. Counci lmemmber Knotts said when the employee becomes 100 percent vested, his social security wiLL stop. Mr. Pipes said the city will have to pay into the fund the whole 15 percent for that period of time. Mr. Pipes said this is why the rule is so contrary to logic. Mr. Bounds said the rule is consistent with the past position that alt persons be subject to Social Security; it is just an attempt to do, by rule, what Congress was unwilling to do, which is to extend Social Security. 11 Councilmember Carter rated however this rule does not extend it to all public employees. Mr. Bounds ' said, as a practical matter, it may end up that either one is in social security or is in a public retirement system. Councilmember Green asked then if this means, from the city's perspective, that the city will hire only those people who are transferring within a TARS plan because that would limit that. Mr. Pipes said they would have to be vested in a TMRS plan in order to avoid this expenditure. Councilmember Green noted the 100 percent vesting is now ten years. He asked if there is any partial vesting. Mr. Bounds said there is not; onLy 100 percent vesting. Counci Lmember Green asked about the portion the employee contributes. Mr. Pipes said the employee can withdraw his portion of contribution if he withdraws prior to vesting. Mr. Bounds said the rules are not clear whether that would be sufficient; under the rules one has to have at least seven percent of one's salary vested and the city's current contribution is six percent. Mayor Hodges noted the City Attorney is asking permission to write a letter in opposition. Counc ilmember Knotts said when the city adopted TMRS and dropped the plan it had and the City employees opted out of Social Security, the city did this on the pretense that historically it had about a 50 percent turn over of personnel and for it not to cost the city any more money than originally planned, it had to maintain or assumed it would keep that same turnover ratio. He said he feels it is unfair to these employees that don't stay with the city ten years and do not vest, to not let them enter into the Social Security program because they are losing up to nine or ten years of their working life that they are getting no credit for if they leave unless they go to another TMRS plan. He said he feels the city owes this to those employees. He said the word IRS uses is "portability" and he thinks this is what they are referring to in that Social Security would be portable to wherever they go to work, regardless if it is a TMRS program or not. Councilmember Green noted the city will have to pay double now. Mr. Pipes said that is the problem as there is not going to be a way to discern which ones are going to stay ten years or Longer. Councilmenber Knotts said the city won't know that. Mr. Pipes said the city is going to have to pay for everyone. Mr. Knotts said the ones that stay it will just add to their retirement because they'll get the credit for the ten years of social security. Mr. Pipes said the city's contribution to the retirement benefit then more than doubles. Councilmember Knotts said it will cost the city 7 1/2 percent more on salaries. He said the city owes this to the people because it is assuming that it is going to have a 50 percent turnover. Mayor Hodges said it will ' cost both the city and the employees 7 1/2 percent. Councilmember Knotts felt the city should go along with this because it would be unfair to 50 percent of its employees that are not going to stay here long enough to be vested. Councilmember Green said the employees voted out of Sociat Security. Councilmember Knotts said these employees didn't; it was the previous employees. Counci Lmember Green said the employees who come to work know this. Councilmember Knotts said it is a matter of how one wants to look at this and one can justify it any way one wants to go, but he feels the city would be taking ten years out of an employee's working life if he or she does not stay here. Counci [member Green said unless an employeee takes that same amount of money and CITY COUNCIL MEETING OF MaY 14, 1991 BOOK "0" 388 does whatever he /she wants to with it. Councilmember Knotts said but the employee can't be in the Social Security program for that many years if he leaves. Mayor Hodges said he will have that retirement here that he can roll over into another program. Counci Lmember Knotts noted not if he is not vested. Mayor Hodges noted takes 10 years to become vested in TMRS. Councilmember Knotts said there is a ten year lapse in there and if a man works nine and one -half years and leaves, he doesn't have Social Security or TMRS. Councilmember Lange noted while he is not familiar with the city's plan, during the first ten years, the city is paying a certain amount of money into a retirement program for our people already. Mr. Pipes said both the employee and the city are making a contribution. Counci Lmember Lange noted then this rule Mr. Bounds has presented says the city Will be investing twice in its people's retirement program, once with the program it aLready has, no matter if they are vested or not, the city is still putting money into a program, plus the city will be paying the employer's 7.65 percent in addition to that, so the city is going to be paying twice for a retirement program for its people that have been with the city less than ten years. Mr. Pipes said that is correct. Councilmember Lange noted then after ten years, they become vested in the city's retirement program [TMRSI. Mr. Pipes said the city cannot then apply for a refund of the FICA monies. City Attorney Band said under the current rule, this would only affect employees that are temporary, or those who work less than 1000 hours. He said if one is here for two years, then the city can cease to withhold Social Security under the rule, as drafted. Theoretically, he said, once they make that leap, there is nothing precluding them from requiring that social security benefits be made, as long as one is not vested. He said the city will not be making social security contributions for all employees who have Less than 10 years service. Councilmember Green noted then it is only for those who have been with the city Less than two years. III Mr. Bounds said less than 1000 hours a year, which is about six months. CounciLmember Bell said that then is not a sizeable financial contribution. Mr. Bounds said while it is not significant now, seven percent [7.65X] of those employees that work Less than 1000 hours or six months, once that is adopted, given the theory under which they are adopting the rule that one has to be 100 percent vested in a retirement system or else one should I' ' be in social security, the logical extension of that reasoning is that we should be paying Social Security for everyone up to ten years of service and, in his opinion, that is the next step we will see the IRS take. He said he thinks this is inconsistent with the congressional mandate for public funds. I Councilmember Knotts said while he hates to agree with IRS, he agrees with their statement; we owe it to the employees because we are expecting half of them to leave, because under the pretense under which we adopted TMRS, it was stated that we have a 50 percent turnover. He said if we are turning away 50 percent of the employees, they have no retirement, no Social Security, they have nothing up to ten years. Councilmember Bell said the employees do get their contribution. CounciLmember Knotts noted however, they are not getting credit on their social security on their total retirement system at 65 years of age; it makes a difference to those who are getting close to that age. Councilmember Green said even with this discussion, he still wishes to make the motion that Mr. Scott Bounds, City Attorney, draft a letter that opposes the rule as it applies to the City of Huntsville and all the other cities in the Sam situation and Councilmember Gaines seconded them motion Upon a vote all were in favor except Councilmembers Knotts. BeLL and Carter but it Passed by a vote of six to three Watkins -Clark Homes -- payment in lieu of taxes rPILOTI Payments Mr. Gene Pipes, City Manager, presented information from Delores Mathews, Executive Director of the Watkins -Clark Homes, Huntsville Housing Authority [HHAI, dated May 5, 1991, in Which Ms. Mathews presented a statement reflecting the PILOT payments made to the City by HHA. She noted the statement reflects payments from 1984 through 1989 that were made in error. She noted instead of paying those amounts to the City during those years, the payment should have been split among aLL the taxing entities, as follows: 838,559.70 8,210.93 20,678.48 7,260.01 2,410.28 SCHEDULE OF PAYMENTS - -PILOT PAID TO CITY OF HUNTSVILLE, 1984 -1989 TOTAL PILOT YEAR CITY SCHOOL COUNTY HOSPITAL 86,983.22 1984 1,777.76 3,555.52 1,206.36 443.58 84,199.74 1985 988.16 2,170.43 794.10 247.05 86,210.00 1986 1,459.85 3,172.40 1,221.20 356.55 ' 56,111.28 1987 1,420.58 3,095.26 1,234.82 360.62 87,585.86 1988 1,337.99 4,263.87 1,479.30 504.70 87,469.60 1989 1,226.59 4,421.00 1,324.23 497.78 838,559.70 8,210.93 20,678.48 7,260.01 2,410.28 CITY COUNCIL MEETING OF May 14, 1991 BOOK "g" 389 Ms. Mathews noted all distributions are calculated on the correct tax rate for each year. Mr. Pipes said there are a number of questions about this that deserve considerable legal review by Mr. Bounds. He said it is his recommendation to defer this matter to him for consideration and for discussion at a later time. Councilmember Barrett made the motion to refer this matter to the City Attorney and Councilmember Gaines seconded the motion. All were in favor and the motion Passed unanimously. Rescheduling of Chamber of Commerce Tourism Division Marketing Plan Study Proposal to meetina of May 28. Mr. Pipes said he has spoken to Mr. David Cich of the Chamber of Commerce today who reports that the hotel -motel tax fund picture looks much better now than it did when he visited the Council on April 30, 1991. He said the marketing study will be presented on May 28. Consider innovative Playground construction assistance request by H.I.S.D. Mr. Pipes, City Manager, reminded the Council of the request by HISD to participate in the funding of the innovative playground. He said there are additional efforts in the traditional fund raising manner around town, for the project planned behind the Samuel Houston Elementary School, adjacent to the Gilpin house, the Black History Museum and adjacent to 7th Street, Thomason Park and the W. S. Gibbs Cultural Center site location. He said there are a lot of related development that may take place in that area and in the future. He said obviously this request was to get some work out of the Building Trades Class before the summer was over. He said it is being brought back for the Council's consideration, noting they asked for 85,000. He said it is felt this will be an ongoing request from year to year for the next several years to develop that entire area. Mayor Hodges asked where the money would come from if the Council decides to fund this. Mr. Pipes said it will need to come from General Fund Reserve for Future Allocation which has a balance of approximately $105,000. Councilmember Robinson asked if 85,000 is the maximum they are requesting this year and if the Council is to assume that in subsequent years it will be less than 85,000. Mr. Pipes said since they have not ' designed the other pieces of equipment yet, there is no way to determine what subsequent years funding needs will be. Mayor Hodges said he thinks their total cost for development of the planned project this year is $10,000. Councilmember Knotts said the Council saw a model of that project recently, but they don't have plans made yet beyond that. Councilmember Bell asked how much the County is contributing to this. Councilmember Barrett asked how much HISD has committed to this project. Mr. Pipes said he is not aware of a funding commitment, but they have committed the Building Trades classes and school officials /instructors, support, land, and property but was not aware of any cash outlay for the project. Mayor Hodges felt the 810,000 is the funding goal they have set for this year and they have just started on a hopefully very successful fund raiser. He suggested it may be wise for the Council to wait until the end of the fund raiser to see how successful or unsuccessful it was; not that the City should pick up the balance at that point, but that would be something the Council could discuss and consider. He felt Councilmember Bell raised an interesting point as to how the other taxing authorities in this community are participating. Councilmember Bell was concerned about the city becoming involved in such projects. No action was taken on this item. MAYOR'S ACTIVITY REPORT - -BILL HODGES City Charter Review Comm ission Mayor Hodges then appointed the following individuals to the Charter Review Commission: Charles Davis, a local attorney who was on the original committee that drafted the Charter, Mr. Dan Davis, a local banker, and Mr. Robert McCann, a local businessman. He said Mr. Scott Bounds, City Attorney,will be the city's liaison to this committee. He said they will bring their report of amendments to the Charter back for the Council's consideration this fall. Mr. Pipes noted this item can be a referendum on the January, 1992. city officer's election ballot. Mayor Hodges said if any of the Cou cilmembers have any items they would like to be reviewed, such as Councilmember Carter's concerns on the election date, they should share them with this committee. Councilmember Carter asked if the staff has determined whether the city can change the election date through the charter process. Mr. Pipes advised Mr. Bounds has a report ready to present on that and he will do so later. Councilmember Barrett made the motion to accept these appointments and Councilmember Green seconded the motion. All were in favor and the motion passed unanimously. ' Consider Various Board and Commission Appointments Mayor Hodges then presented the following appointment suggestions. He said he personally selected the Charter Review Committee members, but the following individuals have been suggested by the City Counci Lnembers a Long with some volunteers who called in search of citizens to serve, and the City Council Personnel Committee has reviewed the various boards and commissions in -place and made recommendations to Mr. Pipes. Counci lmember Robinson noted, under the Planning and Zoning Commission, he was of the understanding that Ms. Jaspyr Sanford's name was to appear as a candidate for appointment. Mr. Pipes said she is currently serving on another board CITY COUNCIL MEETING OF May 4, 1991 BOOK "g" 390 and would have to resign before she could be reappointed. He said he made his recommerdations based on avoiding duplicate service. Councilmember Robinson said he also suggested a new for the Planning Commission to Dan Davis, of the Planing Commission, who said he would in turn give the name to Mr. Pipes, but assumes Mr. Pipes did not receive it. Councilmember Knotts asked about the person that asked last year to serve on it that had been on the Fort Worth Planning Department. Mr. Pipes said that name is Carl Prier and he is listed as a candidate for the Board of Adjustment. Councilmember Knotts said he thought he would be effective on the Planning Commission. Mr. Pipes said he tried to balance things out as much as he could and he does not remember) Mr. Davis giving him a name and he is sorry about that. ! Mayor Hodges said the Co munity Grant Writing Committee will be disbanded, however, this work will still be done in -house as in the past. He said the Open Space Action Committee will be merged into the Parks Board, because it has become a duplication of services. He then asked for a motion. Councilmember Barrett made the motion that the board appointments as listed be approved and Councilmember Gaines seconded the motion Discussion: Councilmember Bell requested that these items be tabled until the next meeting.11 Councilmember Knotts asked if these appointments had been approved by the Personnel Committee as the mayor said. Mr. Pipes said they have not. Mayor Hodges clarified that there were some meetings held in which various members of the Personnel Committee attended wherein these items were discussed, but that they did not approvel�l the nominations. Councilmember Green asked if these nominations are the Mayors. Mayor Hodges said hisiil nomination are the Charter Review Committee and the rest of the nominations are through Genre Pipes' office withli citizen and Council input. Councilmember Barrett said the Mayor is responsible for all appointments. He saidil these names have been published in the paper and he feels the Council is obligated to approve them tonight.i Mayor Hodges said the names include those who have volunteered to serve on these committees. Councilmember SeLLI said there is a question here of a counci Lnember submitting a name and some other naves circulating that he hasp'! heard about but which are not here on this List and he would like to not move quite so quickly; published in the paper, notwithstanding. Mayor Hodges asked if CounciLmember Bell would like to make a motion to table. Councilmember Barrett noted there is already a motion to approve. Mayor Hodges rated a motion to table takesi precedence. Councilmember Barrett said the Council does not go by Roberts Rules of Order. Councilmember' Carter said not too long ago, this Council agreed through a gentleman's or gentlewoman's agreement to table if a councilmenber requested it. Councilmember Barrett said the Council voted that down. Councilmember Carter'. lit noted the Council voted down an "automatic" tabling, but agreed to the gentleperson's tabling if a councilmemberl requested it. Councilmember Bell made the motion to table ratification of the Mayor's appointments until the'', next meeting of the Council so that the Council will have a chance for further consideration and Councilmember l Carter seconded the motion. All were in favor of the motion to table except Counci Lmembers Green Gaines and Barrett. The motion to table Passed by a vote of six to three. Note: This action does not affect the Charter' l Review Commission, which was approved under separate action, as stated above. l CITY COUNCIL ACTION ! Local Environmental Protection Act l Councilmember Carter advised some time ago he asked Mr. Bounds to provide him with a model ordinance on what he calls a "Local Environmental Protection Act," which would be modeled after the National Environmental Protection Act, which would require the City to do an environmental assessment before it does city projects.11 He said there was a lot of resistance to this at the National level, and the Council does not want to hear ai,' Lecture on the history of that and the problems they encountered and how it works now, and it does work well, 'll but basically, [and he is not in league on this with George Russell, which he is sometimes accused of, but despite his presence at this meeting, he'll say this anyway] the city often does work without taking into" i account the environment. He said he has complained about this numerous times and the only way we are going to l,l begin taking it into account is to have something like an environmental assessment before the city does its projects; street work, utility work, park work; almost anything the city does would require an environmental assessment -- counting the numbers of trees, tree species, animal species, habitat loss, soil erosion problems possibly, whatever it might be that might impact the environment. Counci Lmember Carter said he has waited very', patiently and Mr. Bounds and Mr. Pipes have been very good about providing the model ordinance to him earlier. 'I He said he would Like for this to be on the agenda for the Council's consideration. He said he wants to start , the process to do that now. Basal Tree Area Policy Counci )member Carter said not too long ago he asked about a policy on what he is calling the "Basal Area Policy of Trees," involving, for example, Martin Luther King Boulevard, where he understands the city is planning to remove some trees to do some sidewalk and /or street work. He said he proposes that the City have a policy that requires it to replace all the trees it removes with an equivalent beset area, so that if it takes) CITY COUNCIL MEETING OF May 14, 1991 BOOK "g" 391 out a ten inch cedar, it would have to at least put back in, somewhere, ten one inch cedars or two five inch cedars, or whatever, but that it replace the basal area of the trees that are removed. Again, he said, he has waited patiently on that and it has not come back up on the agenda. He said he would like to once again make !' a request that the City Council consider that as a public policy. He said he would like to consider it before the city does the work on Martin Luther King Boulevard because one of the reasons he wants it to be done is that if the city does have to remove those trees that it have a policy that allows it to replace those trees. Sidewalks on Highway 75 North ? Councilmember Carter said he understands the sidewalks on Highway 75 North are going to be built next to the curb. He said he understands that the city could not put the sidewalks next to the curb on Martin Luther King Boulevard in order to save the trees. Mr. Pipes said that is incorrect; the illustration was immediately adjacent to the curb. Councilmember Green rated the city found that it could not put them behind the trees. I�! Councilmember Carter rated then where those cedar trees are, the sidewalk will be up against the curb. Mr. II Pipes said that is correct. Councilmember Carter asked if those trees will be lost if this is done. Mr. Pipes!11 said that is not conclusive yet. Councilmember Carter then withdrew this concern and apologized if he misrepresented Mr. Pipes. Historical Survey Councilmember Carter said he agrees with comments made by Councilmember Lange in that the Council has given the local people who may be interested in doing this historical buildings and sites survey enough time to step forward if they are going to do this survey. He said since they have not come forward, he would like this item to be placed back on the agenda for the Council to vote, in the fall, or whenever it needs to be done so that planning can get started with the go ahead given by the council for the project. He said the people who contacted him do not seem to have the interest they expressed over the phone to do the work. He said it is now time to go back to see if there is someone else who wilL do it. ' Fire Hydrant at Carter's Cycle & Marine Needs Protection CounciLmenber Knotts said he almost backed into this fire hydrant because it is not protected with a - pipe guard of some type. He said the way the parking lot is constructed, when a person backs out, it is in direct line to be hit, and if there are other vehicles in the way, it cannot be seen. He said it is a wonder someone has not already hit it. Post Office - - Avenue N, One -Nay for One Block Councilmember Knotts advised that a postal employee suggested to him that Avenue N be one way for one block. He asked if the Post Office has submitted a request concerning this. Mr. Pipes said he has not received such a request. Councilmember Knotts said the postal employees are having trouble getting in and out in their trucks. He said in a postal employee meeting recently, they discussed making Avenue N one way for one block from 11th Street to 10th Street. Councilmember Knotts thought his is a good idea worth reviewing so that the city is knowledgeable of it when the request is submitted. He felt it would alleviate a Lot of things, especially that maiL box, so that it can come out of that parking lot then and onto the street. RECESS TO CONTINUE EXECUTIVE SESSION DISCUSSIONS Mayor Hodges then recessed the Council back to the Executive Session to continue the discussions from the first session. RECONVENE FORMAL SESSION Consider ordinance No. 91 -8 authorizing the issuance of $2,500,000 City of Huntsville Texas Street Improvement Bonds, Series 1991 Mayor Hodges then introduced Rennie Baker, the City Bond Counsel, to give the Council a bid report on the $2,500,000 Street Improvement Bonds. Mr. Baker presented the materials sent to prospective bidders and to the rating agencies and those entities that insure municipal bonds. He rated the information is more than the Council wants to absorb, but it is a good thing to have and they can read it at their leisure. He said his job is to represent the City in telling bidders that this is a quality bond for which they want to new a good interest rate. He said he thinks the Council will be well pleased. He presented one good faith check, used by all the different bidders, in the amount of $50,000 to the City Secretary, Ruth DeShaw, for safekeeping. Mr. Baker said the idea is to get the lowest net interest cost, a measurement of a successful bid. He presented a bid form for the Council's use in recording the ten bids involving 28 firms. Mr. Baker then opened the bids. As an aside, Mr. Baker said "The difference in a quarter of one percent in the net interest cost amounts to $75,000 in interest over the life of the bond; and the difference in interest cost of ten /hundredths of a percent amounts to $30,000 over the life of the bond. He said these numbers may sound boring, but they do make a lot of difference. l CITY COUNCIL MEETING OF MaY 14, 1991 392 Bidder Net April 1, 1991 Interest Cost* to October 1, 2007 Net Effective Interest Rate ' i 1 Bank One, Texas, N.A. 2,018,253.75 6.727513 Kidder Peabody Kemper Capital Markets Barre & Company 2,030,416.75 6.768056'. Robert W. Baird & Company �! Crews & Associates J Edward 0. Jones Morgan Keegan Clayton Brown & Associates, Inc. 2,034,918.25 6.7830 Dean Witter Reynolds, Inc. 1,999,265.63 6.6642188 'i � Prudential Securities Donaldson, Lufkin & Jenrette I' Merrill Lynch Capital Markets First City Texas, Houston 2,031,387.50 6.7712 Griffin, Kubik, Stephens & Thompson 2,035,987.50 6.786625 Powell & Satterfield, Inc. 2,008,700.00 6.69566 Masterson Moreland Sauer Whisman, Inc. NCNB Capital Markets 2,007,415.63 6.691385 Texas Commerce Bank First Southwest Company Southwest Securities, Inc. M. E. Allison & Co., Inc. Cowen & Co. Hibernia National Bank of Texas Finer investment Corp. Lehman Brothers 2,031,487.50 6.77162' The Principal /Eppler, Guerin & Turner ;'1 Smith Barney Harris Upham 2,019,651.37 6.732171 *Less cash premium. Mr. Baker said on the surface, he feels the best bid if Dean Witter Reynolds, Inc, at 6.6642 percent, -L. which he is well pleased with because it is a good rate. He said they assumed an interest rate on all these,, figures at 7.5 percent, which is always too high so the bids will look good when they come in, but he didn-t.' think it would come in this low. He said he thought it would be under 7 percent. He said he will now conpute' the figures to insure they are correct on the net interest cost. Counci lmeaber Green asked about the interest;' payment dates, which he understands to be April 1; the premium they are paying is the premium because they will be receiving interest from April 1? Mr. Baker said they will pay the city the accrued interest from the date they pay for the bonds. He said the premium is just a little mechanics that some people think is lucky if they'. put in 8200.00 and beat someone else by $200.00. Councilmarber Green asked what will happen when the fonds are!', issued due to the fact that interest has been accruing since April 1. Mr. Baker said they will pay the city $2,500,000 plus the accrued interest from April 1, or the date they pick up the bonds, as stipulated in thei contract. CITY COUNCIL MEETING OF May 14, 1991 BOOK nan 393 Mayor Hodges—asked- odges asked Mr. Baker-to-comment on the city's rating. Mr. Baker said the Moody Rating, which ;{ is the one they applied for, is BAA1. He said the ratings go AAA, AA, A, BAA1, BAA, and all the way down to C and D. He said this is an investment grade rating, that in his opinion, ought to be A, but it isn't and they I! have never been able to convince them. He said what took place this time, as it did before, is the bidders decided to pay the premium by municipal bond insurance from, in this case, two of the municipal bond insurers, agreed to sell them insurance to insure the payment of the bonds, and that kicked the rating up to AAA. He said the bidder pays the premium, which is just like a premium on any other insurance policy. In this case, he said, it was approximately $19,800 and the city will pay for the increased ratings, but from those figures, it can be seen if it is kicked my a little or down a little in interest costs, it saves a considerable amount of money. Mayor Hodges asked if this rating is the same the City has had for some ten years. Mr. Baker said it is. Mayor Hodges noted then he suspects this isn't too bad if we Look at the City of Houston and other cities who have slipped substantially. Mr. Baker said Huntsville's has not dropped any, which is a negative compliment, but better than the other; it has held in at exactly the same. He said Huntsville has had a dec Line in assessed values and a change in its taxes on its monthly sales. He said there have been some changes that '! could have stirred up some problems. He said with two institutions here that do so much toward the economy are here and going to be here and that is the thing that keeps Huntsville good financially in the eyes of the outsiders. Mr. Pipes said it probably hurts Huntsville on its ratings because of so much exempt property, but it helps it on the other side because it makes Huntsville stable. He said we may be stuck at BAA1 rather indefinitely, but it works out well with insurance anyway. Counci Lmember Barrett asked about the effect the 1/2 cent sales tax has on Huntsville's rating, noting.'.. this should be a plus for the City as it is income. Councilmember Green said but it just replaces the property LI: tax. Mr. Baker said it is really kind of a ^wash," but it is a different source and those figures are in there I. for the people to see. REPORT ON ELECTION DATES--SCOTT BOUNDS CITY ATTORNEY Mr. Scott Bounds, City Attorney, said he contacted Allen Hightower's office with regard to changing the election date, which he indicated would probably have to be done by special Legislation. He said Hightower's office contacted, in turn, legal assistance who confirmed that the City could not change the election date in the absence of special legislation, but they confirmed that this is after the filing date of new legislation 7 for this session, so that bill cannot be carried by Allen Hightower's office in this session. He said the other thing they indicated to him is that they had talked to the Secretary of State's office and there had not been '- other cities complaining about the election date, and indicated they had no real problem with the city sponsoring legislation to permit them to change the election date. He said Mr. Hightower's office indicated that if the Council desires, they would be willing to sponsor some legislation permitting the Council or the City, by Charter amendment, to change the election date to another uniform election date. He said this could be made a part of a special legislation during special session that they expect to be coming up soon after this regular session ends. He said this is the status as of now. Councilmember Barrett asked if an ApriL date can be had. Mr. Bounds said no, it would have to be one of the other two uniform election dates, the first Saturday in May or the second Saturday in August. Councilmember Barrett pointed out that in this last May election, we had two for one in January versus May on the turnout. He said this may disprove the fact that January is such a bad month. Mayor Hodges said to use that information and when he visits with Scott or members of that committee, to Let his thoughts be known at that time. Councilmember Carter said Huntsville is almost the only city in this area holding January elections. He said if the Council paid attention to television reports from CoLLege Station, Bryan, Houston, etc., almost everyone holds May elections. He said we are almost alone in this region in holding January elections. He said the city could combine with the School Board, save some money for both of us, and probably increase turn out if it held more than one election at a time. He said the School Board is not going to January because they know better, and we are not going to May unless we get a special legislative bill. He said he did not care if we did it tonight, but at some point, he would like to move that the state legislator carry a bill on a special session for Huntsville or in the next available session to change the election date. Councilmember Barrett ' rated that the city did combine with the Hospital District in January, that they should be considered as another entity, and that they do pay one third of the EMS fund. Councilmember Carter said it is not just a question of turn out, but a question of time; campaigning over the holidays, raising money over the holidays, getting people to pay attention to elections over the holidays - -none of it makes any sense. He said he is stiLL hoping we can change our election to a spring date. CITY COUNCIL MEETING OF May 14, 1991 BOOK "Q" 394 MEDIA INQUIRIES Selwa Choucair, Huntsville Item reporter, asked for the exact names of the bidders on the bond. She asked when the last bond was issued. Mr. Pipes said the election was in August of 1987 and they were issued subsequent to that, possibly in January. Mr. Baker said it was either Late 1987 or early 1988. Mr. Pipes said! that began the second phase of the city's ten year total capital rehabilitation of the streets. He said the':' ! city began in 1984 with a $2,000,000 no tax increase issue. He said the city combined in 1987 this issue withli.. the one -half cent sales tax referendum so that the sales tax could be reduced from 52 cents to 34 cents and then'! added four cents back to cover that 2,000,000 issue in 1987. He said this issue will again be a no tax increase'.! issue because the debt payment system wilt fall off in 1993 sufficient to where the City will not have to raise' taxes to issue this final $2,500,000. He said the total, in round figures, of $2,000,000, $2,000,000 and!, $2,500,000; $6.5 to $7 million basically cost four cents on the tax rate and in the process we have gotten aLll''. of the streets in the city resurfaced. He said this was the set program in 1984, ratified by the voters byl';. about a 78 percent favorable turnout in 1987. He said this is the final phase of that and we can now see thel "light at the arid of the tunnet." He said there were a significant, good number of bids and a lot of interest.;', He said secondly, there were that many of them grouped that close together is cheaper money than anyone etsel! can borrow money at the present time. He said it is a super benefit to the City of Huntsville and anl'. outstanding issue. CONSIDER ORDINANCE Award of bid on street improvement bonds. series 1991 Mr. Rennie Baker returned from his review of the bids to report the successful bidder is indeed Dean', Witter Reynolds, Inc. at 6.6642 percent. Mayor Hodges then presented the ordinance, the caption of which is as follows: ORDINANCE N0. 91 -8 ORDINANCE AUTHORIZING THE ISSUANCE OF $2,500,000 CITY OF HUNTSVILLE, TEXAS, STREET IMPROVEMENT BONDS, SERIES 1991 COUnciLmember Green made the motion to adopt Ordinance No 91 -8 and the successful low bidder of Dean Witter '.'. Remolds. Inc. and Councilmember Barrett seconded the motion Discussion: Councilmember Green rated concerning how the interest is calculated, in reference to page two of the contract, the designation date and interest payments date, it indicates that interest will accrue from April 1 or October 1, whichever date occurs, the most recent date. He asked why isn't there some provision in there that indicates that whatever interest will have accrued at the time the bonds will be repaid to the city. Mr. Baker said that is in the bid form, as follows: "We offer to purchase the bonds for par value thereof, plus a cash premium of [zero in this case] plus accrued interest from the date of the bond or the date of delivery of the bonds to the city. Mr. Pipes noted Mr. Clifford Youngblood says it is also in the ordinance, page 14, paragraph 20, Sale. Councilmember Green noted he sees that now and thanked Mr. Baker for the page reference. Upon a vote on acceptance of this ordinance andii bid, all were in favor and the nation passed unanimously. The City Secretary, Ruth DeShaw and the Mayor, Bill 'I Hodges, then signed all the necessary documents. ADJOURNMENT idly subm /tted, uth a w, City S Secretary May 14, 1991 L JI