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MIN CC 09/03/1991CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "0" 474 CALL TO ORDER Mayor Hodges called the meeting to order at 5:15 P.M. Mayor Hodges then recessed the Council to ad Executive Session to consider a real estate acquisition matter: 10th Street right- of-way exchange. No othed'' items were discussed in this session and no formal action was taken. RECONVENE IN FORMAL SESSION Mayor Hodges reconvened the formal session at 5:30 P.M. Councilmember Gaines presented the invocation.. Mayor Hodges advised there will be no action required in this formal session as a result of the executive] session discussions. OPEN PUBLIC HEARING Public Hearing on the proposed FY 1991 -92 budget. and on the tax utility and sanitation rates Mayor Hodges then opened the public hearing. Mr. Pipes presented the most recent amendments to the proposed budget for 1991 -92. He said the major change is in the sanitation fund area. He said House Bill 11, the disposal fee, added about 820,000 in sanitation fees that the city will have to pay to the State Health Department. He said the fee was 50 cents per ton or 17 cents per compacted cubic yard. It is now the "greater of 50 cents per ton, 50 cents per compacted, or 10 cents per uncompacted cubic yard, he said. Mr. Pipes'. ' advised it was removed from the solid waste fee bill and then somehow reappeared in the appropriations bill and, the city staff was unaware of it. He felt because of a need to generate revenue, particularly for the State. Health Department, this new appropriations bill was passed [Subtitle D will be signed by October 1, 1991.1 He said when it was learned on Thursday, the staff decided to adjust the budget numbers to reflect the additional $20,000 revenue needed. He said they had projected a rate increase to 89.40 for residential units . but found it necessary to increase it to 89.50 to pay for the effective cost of the state's increase. He said this will be revenue for the state by virtue of the city having to pay fees to the state. Counci Lmember Bell asked for the philosophical justification. Mr. Pipes said it is a user fee the state can pass on to the cities so it will not have to generate it in a revenue bill for themselves. Councilmember, Bell asked if it is to build up a toxic waste fund or recapture some Licensing fees, etc. Mr. Pipes said they are trying to pay for the operation of the State Health Department. Mr. Poteete, Director of Public Works, said 50 percent of this goes to the State Health Department and 50 percent is used for a matching funds to perform. the H -GAC regional plans, studies, etc; it is a fund for that purpose. Mr. Pipes said the net effect is the staff worked Friday afternoon and Saturday morning to adjust figures, hence the agenda packet was late in being, delivered. He said when one number is changed in a budget, it causes 25 pages in the summaries to change. He said all the pages had to be redone and the book recompiled before the agenda packet could be sent out. He said the agenda was posted at the appropriate time but the supporting information took more time to prepare. He said the summary numbers have all changed to reflect the sanitation rate increase and the expenditure increase of approximately 820,000 net from what was discussed just two weeks ago. He said the old axiom of: "Be careful'. about your budget when the legislature is in session," has proven to be true in this case. Mayor Hodges said this will be addressed in a separate item on the agenda. He said Mr. Pipes is explaining this now so that we can get on with the public hearing. Mr. Pipes said as far as an overview for the public hearing, this is the change to the numbers and the budgets since the Council's last review session. Mayor Hodges then asked if anyone would like to make any comments or ask any questions concerning the proposed budget. There being no one present to speak, Mayor Hodges closed the public hearing. CITIZEN INPUTIINOUIRY SESSION Hotel- Motel /Tourist Council Budget Mr. Pipes advised Mr. Dave Cich, President, Chamber of Commerce, has provided information concerning:: the hotel-motel tax and the Tourist Council's budget for the Council's review. MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 3RD DAY OF SEPTEMBER, 1991 IN THE CITY HALL COUNCII' CHAMBERS, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M. a The Council met in a regular session with the following members present: W. H. Hodges, Mayor city officers present: Gary Belt William H. Knotts, Jr. Gene Pipes, City Manager 0. Eugene Barrett Ronald L. Lange Scott Bounds, City Attorney James L. Carter William B. Green Ruth DeShaw, City Secretary Ila G. Gaines Charles Robinson CALL TO ORDER Mayor Hodges called the meeting to order at 5:15 P.M. Mayor Hodges then recessed the Council to ad Executive Session to consider a real estate acquisition matter: 10th Street right- of-way exchange. No othed'' items were discussed in this session and no formal action was taken. RECONVENE IN FORMAL SESSION Mayor Hodges reconvened the formal session at 5:30 P.M. Councilmember Gaines presented the invocation.. Mayor Hodges advised there will be no action required in this formal session as a result of the executive] session discussions. OPEN PUBLIC HEARING Public Hearing on the proposed FY 1991 -92 budget. and on the tax utility and sanitation rates Mayor Hodges then opened the public hearing. Mr. Pipes presented the most recent amendments to the proposed budget for 1991 -92. He said the major change is in the sanitation fund area. He said House Bill 11, the disposal fee, added about 820,000 in sanitation fees that the city will have to pay to the State Health Department. He said the fee was 50 cents per ton or 17 cents per compacted cubic yard. It is now the "greater of 50 cents per ton, 50 cents per compacted, or 10 cents per uncompacted cubic yard, he said. Mr. Pipes'. ' advised it was removed from the solid waste fee bill and then somehow reappeared in the appropriations bill and, the city staff was unaware of it. He felt because of a need to generate revenue, particularly for the State. Health Department, this new appropriations bill was passed [Subtitle D will be signed by October 1, 1991.1 He said when it was learned on Thursday, the staff decided to adjust the budget numbers to reflect the additional $20,000 revenue needed. He said they had projected a rate increase to 89.40 for residential units . but found it necessary to increase it to 89.50 to pay for the effective cost of the state's increase. He said this will be revenue for the state by virtue of the city having to pay fees to the state. Counci Lmember Bell asked for the philosophical justification. Mr. Pipes said it is a user fee the state can pass on to the cities so it will not have to generate it in a revenue bill for themselves. Councilmember, Bell asked if it is to build up a toxic waste fund or recapture some Licensing fees, etc. Mr. Pipes said they are trying to pay for the operation of the State Health Department. Mr. Poteete, Director of Public Works, said 50 percent of this goes to the State Health Department and 50 percent is used for a matching funds to perform. the H -GAC regional plans, studies, etc; it is a fund for that purpose. Mr. Pipes said the net effect is the staff worked Friday afternoon and Saturday morning to adjust figures, hence the agenda packet was late in being, delivered. He said when one number is changed in a budget, it causes 25 pages in the summaries to change. He said all the pages had to be redone and the book recompiled before the agenda packet could be sent out. He said the agenda was posted at the appropriate time but the supporting information took more time to prepare. He said the summary numbers have all changed to reflect the sanitation rate increase and the expenditure increase of approximately 820,000 net from what was discussed just two weeks ago. He said the old axiom of: "Be careful'. about your budget when the legislature is in session," has proven to be true in this case. Mayor Hodges said this will be addressed in a separate item on the agenda. He said Mr. Pipes is explaining this now so that we can get on with the public hearing. Mr. Pipes said as far as an overview for the public hearing, this is the change to the numbers and the budgets since the Council's last review session. Mayor Hodges then asked if anyone would like to make any comments or ask any questions concerning the proposed budget. There being no one present to speak, Mayor Hodges closed the public hearing. CITIZEN INPUTIINOUIRY SESSION Hotel- Motel /Tourist Council Budget Mr. Pipes advised Mr. Dave Cich, President, Chamber of Commerce, has provided information concerning:: the hotel-motel tax and the Tourist Council's budget for the Council's review. CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "Q" 475 CONSIDER THE MINUTES seconded the motion. Discussion: Councilmember Bell noted he has every other page of the minutes missing f his packet and there may be others who also have this omission. There being others with the same situati he requested delaying approval of the minutes until all of the Councilmembers have the opportunity to rev a complete set of minutes. Mayor Hodges agreed, noting they will be approved at a Later date. CONSIDER ORDINANCES Consider ordinance No. 91 -20 adopting the budget for Fiscal Year 1991-92 Mr. Pipes, City Manager, presented this ordinance, the caption of which is as follows: ORDINANCE NO. 91-20 AN ORDINANCE FINDING THAT ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF AN ANNUAL BUDGET; APPROVING AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENTS BUDGET FOR THE CITY OF HUNTSVILLE, TEXAS, FOR THE PERIOD OCTOBER 1, 1991 THROUGH SEPTEMBER 30, 1992; AND PROVIDING FOR AN EFFECTIVE DATE. This ordinance provides that the appropriation for the ensuing fiscal year for the operations budget shall fixed and determined as follows: General Fund ................ $ 7,060,355 General Debt Service Fund.... S 898,672 Water and Sewer Fund......... $ 6,034,337 Sanitation Fund ............. $ 1,860,828 ' Design Engineering Fund...... $ 596.367 Total Operating Funds $16,450,559 The appropriation for the ensuing fiscal year for the capital improvement budget shall be fixed and determi as follows: Street Improvements......... $1,126,202 Water & Sewer Projects...... $2,802,530 Drainage Improvement Projects$ 147,121 Downtown project .............$ 238,510 Transfer to Debt Service ..... $ 173.094 Total Capital Improvements ... $4,487,457 motion. Discussion: Councilmember Green asked if, upon adopting this budget, the tax rate is set. Mr. Pipes said it is because the city has to have a rate to implement the budget. Mayor Hodges said we have to have "a rate" and this budget is based on $0.3844 per $100 valuation. Mr. Pipes said the numbers in the budget have been based on $0.3844 since July. He said the tax rate ordinance is also on the agenda and the Council must adopt a rate sufficient to fund the budget. Ms. Patricia ALLen, Director of Finance, advised this is the expenditure portion of the budget which wiLL not change regardless of which tax rate the Council adopts. She said if the Council adopts the effective rate ($0.39268) it will increase the unallocated reserve and if the Council adopts the regular tax rate ($0.3844), it will result in a lower unallocated reserve. All were in favor and the motion passed unanimously. Consider Ordinance No. 91 -21 adopting a tax rate Mayor Hodges then presented this ordinance, the caption of which is as follows: ' ORDINANCE NO. 91 -21 AN ORDINANCE ADOPTING THE TAX RATE AND LEVYING TAXES FOR THE CITY OF HUNTSVILLE FOR THE ENSUING FISCAL YEAR UPON ALL TAXABLE PROPERTY LOCATED WITHIN AND SUBJECT TO TAXATION IN THE CITY; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "O" 476 Councilmember Barrett advised he would like to see this Council adopt the same tax rate because the city is planning to raise service fees. He said he feels comfortable with the current rate and the staff has done an I! excellent job in preparing the budget under this tax rate (80.3844). Councilmember Barrett made the motion to adopt Ordinance No 91 -21 adopting the $0 .3844 tax rate and Councilmember Gaines seconded the motion All were In favor and the motion Passed unanimously. ORDINANCE NO. 91 -22 AN ORDINANCE AMENDING CHAPTER 17, WATER AND SEWERS OF THE CODE OF ORDINANCES OF THE CITY OF HUNTSVILLE, TEXAS, INCREASING THE RATES FOR SEWER SERVICE PROVIDED BY THE CITY; AND MAKING OTHER PROVISIONS AND FINDINGS RELATED THERETO Mr. Gene Pipes, City Manager, presented the charges for sewer: first 3,000 minimum monthly charge: $8.15; all over 3,000 gallons, 81.60 per 1,000 gallons with a cap on that of 819.35. He said other changes concern deposit policies. Mayor Hodges noted this ordinance also provides that a customer with no more than two jointly metered residential units may file in advance a quarterly notice of vacancy [rather than monthly] . Counci Lmember Lange made the motion to approve of this ordinance and Councilmember Barrett seconded the motion All were in favor and the motion passed unanimously. Consider Ordinance No. 91 -23 amending the sanitation rate ordinance Mr. Pipes, City Manager, presented this ordinance, the caption of which is as follows: ORDINANCE NO. 91 -23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 9, GARBAGE, REFUSE AND RUBBISH, OF THE CODE OF ORDINANCES OF THE CITY OF HUNTSVILLE, TEXAS, INCREASING THE RATES FOR COLLECTION AND DISPOSAL OF REFUSE BY THE CITY; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF Mr. Pipes advised the 89.50 per month for single family residential pickup, as a minimum charge, is the adjustment for that 820,000 additional expense in the residential rate. He said commercial collection charges, landfill fees, Elkins Lake charges and rates for other out of town services are proportionately increased based on the residential voL we to the affected customers that are in each of those categories. He said it has been increased both in the commercial and residential areas to maintain the addition of expenses to the appropriate user and the spacing has been maintained by adjusting all of the rates appropriate to that increase. Councilmember Barrett made the motion to approve of Ordinance No 91 -23 and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. Consider Ordinance No. 91 -24 amending the permit fee schedule Mr. Gene Pipes, City Manager, presented this ordinance, the caption of which is as follows: ORDINANCE NO. 91 -24 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, INCREASING PERMIT FEES FOR BUILDINGS,PLUMBING AND ELECTRICAL WORK; ADDING AN ADDITIONAL FEE FOR PLAN CHECKING; AND MAKING PROVISIONS RELATED THERETO Mr. Pipes advised these rates were discussed extensively during the budget review process. He said it has been about ten years since these fees were adjusted. He said fees are adjusted to provide those services to the users without having as great a subsidy from the general taxpayers for that service. Councilmember Barrett made the motion to approve Ordinance No 91 -24 and Councilmember Gaines seconded the motion All were in favor and the motion passed unanimously. Summary /Analysis of net operating budgets Mr. Pipes distributed a summary /analysis of net operating budgets. He noted the major increase was the $338,000 increase in salaries. He said the debt service increased 8395,636.73, which is a 35 percent increase. He said the bond issue in May was the cause of that and the increase is so dramatic, because prior to that time the city did not have significant increases in those numbers. Combined, all of the increases and decreases offsetting, the city has a 5.2 percent increase, including new debt service. He said if debt service is removed, we have a total increase in all funds of 2.4 percent. He said the cast -of- living adjustment to the pay classification system was 2 percent. He said the net operating budget increase is very, very tight. CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "O" 477 Councilmember Barrett congratulated the City Manager on this because these are difficult times and people are having a hard time paying their taxes. He felt if the city can hold its tax rate the same and have this increase, it is a real pat on the back for our staff. Mayor Hodges agreed. Councilmember BeLL said to amplify that somewhat, the Council also has at their place figures concerning the net increase in the city's budget over the last ten years. He said the city has a net budget now of about 814,891,000 and in 1981 -1982, the city had a budget of 89,513,000. He called to the Council's attention that this is about a 39 percent increase but we have experienced an inflation rate in this country of about 37 percent. Councilmember Green clarified that the "price index" has increased about 37 percent since 1982. Councilmember Bell surmised that the City has gone up almost nothing over the inflation rate on the national level, which he feels is a remarkable achievement for a city that is growing and providing more services yet holding the tax rate and budget. Mayor Hodges said those numbers don't include an increase in population of 11,000 people. Councilmember Bell noted this is his point, that we have provided a lot more services and yet the city has not increased any more than simply the inflation rate. Mr. Pipes said included in those figures also and is the two annexations that the city made during that time. He said there is always concern when the city annexes that it cannot divide up the same level of service for the same amount of money. He said obviously if we take inflation out and don't consider that we annexed all of the south end of Huntsville [Spring Lake and the west side around the loop /1 -45 area] and then Fish Hatchery Road and a large part of East Huntsville [Boettcher's MiLL, etc.] the city has provided basic services for all those areas [sewer and water3 that had not previously been served and has done this within the basic same budget framework for ten years. Mayor Hodges felt the comments are well made. Meadows Foundation's Inclination for Adjustment to Grant Mr. Pipes said during the budget discussions, the Council asked if the Meadows Foundation would be inclined to adjust the grant stipulations. He read a Letter from the Meadows Foundation which thanked the City ' for its informative letter of August 13 and stating that the amended budget proposed is certainly acceptable to them, especially as their funds are directed toward accomplishing the facade painting and the city's funds towards the other project components. He said they are glad to hear of the progress and local enthusiasm for the project and they noted it sounds like a model for other communities to emuLate. He said they look forward to receiving the final report on their grant when the physical improvements and painting are completed. Mayor Hodges asked Ms. Linda Pease if the Meadows Foundation has been provided with photographs of progress throughout this project. She said they have been sent a copy of each newspaper article that has been published and one other set of photographs. Consider Resolution No 91 -9 authorizing a grant application to the Texas Forest Service for participation in a tree planting program Mayor Hodges presented this resolution, the caption of which is as follows: RESOLUTION NO. 91 -9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE TEXAS FOREST SERVICE- - SMALL BUSINESS ADMINISTRATION TREE PLANTING GRANT PROGRAM AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE TREE PLANTING GRANT PROGRAM Mr. Pipes advised the City has identified the Bush- Miller Park as 3.664 acres and has applied to the Texas Forest Service and SmaLL Business Administration National Tree Planting Grant Program for a total of 84,350 in grant funds to carry out tree planting at Bush - Miller Park. He said the city is committing, as an in -kind contribution, 83,560 to the project to plant the trees once they are acquired, for a total of 87,910. He encouraged the Council to approve this submission so that the city can accept the funds when they are awarded. ' Councilmember BeLL made the motion to adopt Resolution No. 91 -9 and Councilmember Carter seconded the motion ALL were in favor and the motion passed unanimously. CONSIDER BIDS Consider bid No. 92 -1, hvdrofluosilic acid to Harcros Chemical. Inc, in the amount of 8 .1375/lb Mayor Hodges presented the staff's information concerning the two bids that were received for the annual contract for the periodic purchase of hydrofluosilic acid. It was noted the staff recommends acceptance of the lowest bid presented by Harcros Chemicals, Inc. in the amount of 8 .1375. The Council was advised that three CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK 110" 478 bids were mailed out and that last year's annual bid price was $ .1495 per pound. the motion to annrnve of tha staff's rnrrmmuMnf inn nn rh;c wia n...l r..��...:1 �...4.e.. Discussion: CounciLmember Robinson asked about the use of this acid. Mr. Pipes said it is the fluoride put in the water as a dental decay preventative. All were in favor and the motion passed unanimously. Consider Bid No. 92 -3. uniform rental to Aratex Services at $4.35 per man week Mayor Hodges presented the staff's information concerning the two bids received for the annual contract for the rental of employee uniforms. It was noted six bids mailed out and of those received, the staff recommends the lowest bid presented by Aratex Services in the amount of 84.35 per man per week. The staff'. advised 81.00 to 81.25 per change per man is the standard in the industry and that the city will pay S .87.x. For the past three years, the city paid $ .73 per change per man. Councilmember Barrett made the motion tW accept this bid as presented and CounciLmember Gaines seconded the motion Discussion: CounciLmember Bell' asked if anyone from the community bid on this contract. Mr. J. D. Schindler, Director of Community.. Development, said Local people were involved in the process. AIL were in favor of the motion and it passed l' unanimous Lv. CITY MANAGER'S REPORT--GENE PIPES Consider a Texas Department of Highways and Public Transportation Agreement and Resolution No 91 -10 to assume maintenance of twenty -one traffic signals Mr. Pipes presented a letter from Mr. Robert R. Odstrcil, P. E. Traffic Engineer, District Seventeen, State Department of Highways and Public Transportation in Bryan concerning the inventory of the traffic signals presently maintained and operated by the City of Huntsville that are on the State Highway System. He noted according to their inventory, the city currently maintains seventeen stop and go signaLs, two overhead beacon installations and two school zones. Mr. OdstrciL advised during their investigation of these signals, they found that no electrical meters were present at the intersections of US 190 and Spur 94, SH 75 and 19th Street. Prior to acceptance of these signals by the state, he said, electrical meters should be installed so that the ' state can be billed for the amount of electricity used. He also advised the Locks on the traffic controlLers have been changed by the city from the standard number 2 key and he requested that the city reinstall the standard number 2 key lock prior to state assumption of these signals. Mr. Pipes presented the agreement which states the state wiLL assume the maintenance and operation of the twenty -one existing traffic signals for the Council's approval, and Resolution No. 91 -10 approving the agreement, the caption of which is as follows: RESOLUTION NO. 91 -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, APPROVING THE AGREEMENT BETWEEN THE CITY OF HUNTSVILLE AND THE STATE OF TEXAS FOR THE INSTALLATION, CONSTRUCTION, EXISTENCE, USE, OPERATION AND MAINTENANCE OF CERTAIN HIGHWAY TRAFFIC SIGNALS /ILLUMINATION AT 21 LOCATIONS IN THE CITY OF HUNTSVILLE, TO TAKE EFFECT IMMEDIATELY UPON ITS PASSAGE Mr. Pipes said the city has been expecting this for about one year. He said it is particularly appropriate from a timing standpoint because Mr. Tom McBee, who has been the city's signaL maintenance man for a number of years, wiLL be retiring soon [December or January]. He said the city will never be able to do without a sign maintenance program, but obviously, the mechanical controllers, etc. will be turned over to the state and the city wilt not have the responsibility for the technical aspects and mainly the expense of it [approximately.'. 84,000 savings per month in electricity costs, which will be passed on to the state]. CounciLmember Robinson asked why the city changed the locks. Mr. Pipes said the city did change the Locks on the controllers in the city for which it had responsibility a number of years ago because the state has locks all the same all over the state and the city didn't want someone coming through and flipping all the signals just for convenience or for a certain circumstance without the city being aware of it, since it was responsible for the maintenance. He said the city will change the locks back now because any such events wiLL be the state's to maintain. CounciLmember Robinson was concerned about signaL problems and the resultant traffic jams, and how long it would take the state to respond concerning maintenance. Mr. Pipes said if the signals fail, the city will switch them to flash and call the state. CounciLmember Barrett noted then the city can turn them on to flash in the case of an emergency. Mr. Pipes said yes. CounciLmember BeLL noted this is his concern as yesterday three signals went out and the city had them fixed almost instantaneously. He said District 17 covers a lot of territory and fast service may be impossible. Mr. Pipes said he feels they will contract out this service'- to private enterprise and this is a budget category that the state has committed to as far as statewide signal '.! CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "Q" 479 maintenance is concerned and they do intend to spend the money. He said the question is whether the city allows them to spend the money for us or not. He said there will be more of a delay than usual. Mr. Poteete, Director of Public Works, said the state already maintains the signals on Highway 75 North, I -45, and FM 1374. He said they have maintenance personnel and support people out of Bryan. He said they have been training someone Locally; someone that used to work for the city. Councilmember Bell asked about the equipment available for making repairs, such as a "cherry picker." Mr. Poteete said the SDHPT already has one available. Councilmember Barrett made the motion to approve of this agreement and Resolution No. 91-10 as presented and Councilmember Gaines seconded the motion. All were in favor and the motion passed unanimously. CONSIDER EMPLOYEE TRAVEL REIMBURSEMENTS Consider an employee travel and training reimbursement policy Mr. Pipes advised there will be an appendix to the Personnel Policies to standardize the travel and training policies of the employees. He said the general policy covers transportation, meals, lodging and other expenses for travel reimbursement. Councilmember Barrett made the motion to approve of this policy and Councilmember Gaines seconded the motion. All were in favor and the motion Passed unanimously. Consider a report on the Environmental Protection Agency administrative order Mr. Pipes advised in January, the City had two extremely heavy rain periods in a short period of time and there were a number of wash outs and bypasses that occurred at that time. He said it is the City's duty to report all of its bypasses and spills to the state. He said in doing so, EPA has issued an administrative order to the city for its compliance. He said city staff went to Dallas in May to meet with the EPA to discuss the situation and to explain all of the ongoing work: the installation of the SCADA system, the repairs on the sewer lines through the remote television work, the repairs to the infrastructure generally, the standby power added to the lift stations, etc. indicative that the city is well ahead of any administrative order. He said EPA has responded with four projects to complete on a time line: ' 1. Complete SCADA Monitoring System by August 31, 1991. 2. Complete construction on Gibbs Park sewer line by December 31, 1993. 3. Complete remaining repairs identified in the 1985 Randolph Report by June 30, 1994. 4. Attain compliance with permit bypass limitations by June 30, 1994. Mr. Pipes said when the street construction work is over, more than half of the sewer system will still not have been touched because what the city is doing today adjacent to the streets is in conjunction with the street program. He said EPA knows the city has a lot of work to do, so they are telling the city it has to continue with that work. He said there is also a substantial line from Gibbs Park to 11th Street that has been on schedule for some time. He said there are some easement and access problems there, and this project will begin very soon, noting EPA has ordered the city to complete this project by December 31, 1993. Mr. Boyd Wilder, Director of Public Utilities, said the city plans to begin this work within two weeks. He said item number 3 above is virtually an impossibility, but a good faith effort will certainly be extended. He said the Council needs to be aware of this order and its impact. He said the city is already doing all these things; the only question is if the city is doing it fast enough and is it going to continue to complete the projects begun in 1986. He noted this is for the Council's information only and does not require formal action. Consider a reauest for economic development incentive assistance from Eds West.Inc. for Drovision of utilitv mains (water and sewer) Mr. Pipes, City Manager, presented the request of Eds West for consideration of extension of utilities- - water and sewer- -for an economic development incentive to the building site at approximately 1,200 feet north on Industrial Drive as presented by Mr. B. B. Jones, Eds West, Inc. Mr. Pipes advised this request is made by Mr. Jones pursuant to the City's development code requirement for Eds West to build a 37 foot public access street. Mr. Jones advised Eds West will dedicate the street improvements (extension of Industrial Drive) to the City and all necessary utility drainage easements. The Council was advised by Mr. Pipes that in 1986, the Council set aside 8250,000 to provide service to any industrial employer or any employer that could provide a minimum threshold number of jobs to impact the community. The prospect the Council was dealing with at that time didn't come to fruition, however, the Council continued each year as it went through the budget cycle to leave that 8250,000 as the city's individual effort to attract business, industries and employers to the community to expand the tax base. He said this is the next opportunity and Eds West has made the request. He said Mr. Glenn Isbell, Director of Engineering has done some preliminary analyses which indicate the water and sewer costs will range from $54,480 18 inch lines] to 882,080 [12 inch lines], depending on fire protection requirement information to be furnished by Eds West's engineers. CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "ga 480 He noted funding sources are available from the "Reserve for Economic Development Extension Fund," which a balance of $250,000. Mr. Pipes said this is strictly a City Council decision. Mayor Hodges asked what the city will receive in return. Mr. Pipes said the city will be provided an 1,100 or 1,200 foot long traffic load street that is 37 feet wide, curbed and guttered, dedicated to the City'. which will be an extension of the city's transportation system; the city will parallel its water and sewer system to this street. He said there is additional property behind this tract on which the city will aLsd acquire an easement for future extensions if they are necessary and desirable. He said this will open up a Large parcel adjacent to this and make it totally accessible by taking the right -of -way all the way to the back'' so any future development would simply have to do an extension of this Industrial Drive. He said the city wiI Lj: receive a substantial public improvement for the city's contribution of water and sewer improvements paralle L,j to it. Councilmember Barrett made the motion to approve this economic development request from Eds West as outlined above not to exceed $82,080 to be funded from the Economic Development Extension Fund and Councilmember Gaines seconded the motion. Discussion: Councilmember Lange said he feels the Council needs a little history on this property. He said he supports Eds Nest coming to Huntsville. However, he said, about . ten years ago, under the subdivision ordinance of that time, a developer subdivided the property but did not install roads and utilities, as required. He said the developer should have installed the required streets, sewer, etc. He said the city taxpayers are now going to have to pay a portion of this. He said the alternative of not doing this would be that Eds West would not put in the street. In which case, the city would then have the potential nightmare of a street with only one entrance and one exit; a situation that exists in many areas:' in Huntsville and which is very dangerous if one were ever caught in an area in which there was a disaster; with only one entrance and exit, one could not get out. He said since we already have this situation in Huntsville he would not want to see it repeated. He said he met with the Planning Department the evening the Location was made public. At that time, he said, it was noted this was going to be a problem. He said he notified the ' Chamber of Commerce the next morning to advise them. He said there was no contact from Eds West to the City's. Planning Department, so now it is coming up and the city is paying for it. He said he would be opposed to this project because this is the third time they have come to us. He said he can understand the time frame between the Freeport Exemption and the tax statement requests, but he believes this should have been brought to the Council at tax abatement time. He said in regard to the funds sets aside for the city to improve the utilities,.. etc. for industries coming in, he thinks these funds should be used to construct improvements on city property . and not for use on the private property of industries or companies. He said he hopes in the future that it can be done this way. He said he will vote for this because if the city does not do this, it will have the nightmare of a single access /single exit street. He stressed that his vote on this tonight, however, is not given as an incentive for Eds West coning here. Councilmember Carter asked what the cost would be for the road and how much is Eds West committing for the road. Mr. Isbell said it would be approximately 8100 per foot or $120,000. Councilmember Carter asked what other users would ultimately be possible for the water and sewer lines being discussed. Mr. Pipes said it would be in a public street right -of -way, therefore, abutting property owners on either side would be potential users . and any extension from the far end of the lots is possible. He said this is more true of water than it is of sewer because it breaks over a hill at the site about 1,200 feet into the 33 acre tract, about the 20 acre mark, and there is approximately one -third of the property beyond that. He said in terms of sewer, there would have to be a lift station behind it to get the sewer back over the hill. He said the city will have the sewer main;, and the manhole there built to at Least the top of the hill. He said there is some additional property [approximately 200 acres] immediately adjacent to this that can be accessed with water and sewer lines. Councilmember Carter said he wants more jobs to come to Huntsville. He asked what minimal threshold does this set for this type of action to be taken. City Manager Pipes said the Council referred to a minimal threshold,'. with the idea that there should be an equal value or some value in new jobs to offset the expense, but to his knowledge, a number was never established. Councilmember Carter asked how many jobs we are promised by this company locating here. Mr. Dave Cich, ' President, Chamber or Commerce, said their initial projections when they applied for bond financing and tax abatement, was over 100 jobs in 1992 and over 450 jobs by 1996. He said they plan substantial expansion in consolidating operations from other parts of the country. Mayor Hodges said the plants in Conroe are closing because they are inefficient and out of space. Mr. Cich said they have 70 jobs now and the 100 jobs for the first year will include whomever moves up or commutes from Conroe. Councilmember Carter asked who is going to be hired; noting if we are not creating jobs for local Huntsville taxpaying residents, but instead are creating jobs that someone else is going to move in and take, he would question whether we are gaining anything for this CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "O" 481 community. He asked what kind of guarantee we have that we are going to have Local hiring. Mr. Cich said Eds West is already advertising locally and is working with the Texas Employment Commission to hire local residents. Mr. Cich said existing employees will have the opportunity to move to Huntsville if they want to keep their jobs. Mr. Cich said some of the existing employees are already Walker County residents [Huntsville and New Waverly residents] and they are ready to begin hiring residents from the community. He said he is comfortable they are going to be hiring a substantial number of Walker County residents. Councilmember Carter asked when they plan to begin construction. Mr. Cich said as soon as they can get approval. Councilmember Carter said he would Like to make a motion to delay this action until the Council can see the kind of hiring practices this company uses before the Council votes to spend this money. Councilmember Lange pointed out the initial construction [preliminary work] for Eds West has been done with firms from Huntsville. He said their first step forward towards this city seems to be a good effort as they are not bringing in people from Conroe to do their preliminary construction work but rather are seeking out Huntsville firms. Councilmember Carter noted this helps some, but he would have voted against tax abatement had he been at the meeting that night. He said he agrees with what Councilmember Knolls has said repeatedly. He said he feels city after city, state after state, are being blackmailed by business corporations, leaving them looking Like they are anti - development if they do not give away certain things in order to lure them to come to the community. He said he reads the literature as much and as constantly as he can find it, and he has still yet to find where the coamunity benefits. He said a recent book on the Midwest and the problems of declining communities in the Midwest where they gave away tax abatements and incentives for businesses to come to the community, supports his comments. He said every bit of data in that book or other books indicate the communities did not gain. For example, he said, when jobs were created in this one particular community, what happened was lots of people in other declining communities heard about the jobs and moved to that community, and in fact created all kinds of social problems which created a greater demand on the services of the city government, which in fact consumed any benefit and the jobs that were created were low wage jobs. He said he ' is for economic development, but is not sure that philosophically or in practice, what this Council is talking about doing, achieves the goals it is talking about achieving. He said he is planning to vote against this and is appreciative of the history presented by Councilmember Lange because that adds a little acre fuel to his opposition. He said he understands the problem with the street outlet, but if Eds West wants to come here and wants to be a good citizen, they should build the street, whether the city participates in the water and sewer extensions or not. He said if the street is going to create a traffic problem, whether the city votes to spend the money for water and sewer lines or not, Eds West can still build the street and be a good citizen by not creating a traffic problem to which Councilmember Lange refers. Councilmember Lange said if an easement is not granted to that particular piece of property, then they do not have to do it and this town has a major problem. He said that area of Huntsville is going to be developed some day because it is not just going to sit there - -this town is going to grow and is not going to be stagnant - -and that area has major potential as an industrial area. He said if the city does not get a road easement in there, the city will get one road into a major industrial area; it will have an industrial area like Elkins Lake or Spring Lake. He said what would happen if one truck would have a major problem at the gate to Elkins Lake, where would the people go; what if there was an accident at the entrance to Spring Lake - -what would the people do? What if there were a toxic chemical spill out there, how would one get his family out of that subdivision? He said we are talking about an industrial area here and we must have a road in there. Councilmember Carter said there is no disagreement about the road, but he feels the business or industry should pay for it rather than the citizens of the City of Huntsville. Councilmember Green said he thinks the city should cooperate with this request, while agreeing and disagreeing with some of the discussion. He said he does not feet blackmailed- -the city does not have to do this - -it is not as if it has no option. He said he thinks this project will benefit the community overall, noting if he didn't see that benefit, he would not vote for it. He asked Councilmember Lange if he said this street was not being built on a public right -of -way but on a private right -of -way. Councilmember Lange said the Eds West tract was cut out of another tract of lard. The acreage that Eds West is buying abuts the public ' road right up to it, but not through it. He said they have public access but when the property was first being divided, there was a plat drawn up and that plat showed a road where Eds West is proposing to put this road, but the property was sold as one tract and it was never a dedicated tract so it has not become a legal document. Also, he said, the land has gone through a couple of owners since that time. Councilmember Green said he is still confused as to whether the city is discussing building a water line on private property. Councilmember Lange said when the parcel of property was originally supposed to be subdivided by the subdivision regulations of this city, the developer was supposed to put in the roads and the utilities. He said CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "0" 482 the property was subdivided, not legally, but it was subdivided and the person who subdivided it did not do I; those two items and now it is actually a piece of private property, so in essence, the city is putting in something that should have been put in prior to this. Counci Lmember Green said he was under the impression they were going to dedicate this to the city so it will then be public property. Counci Lmember Lange said the roads were supposed to be put in prior to it becoming public property. He said the roads that should be constructed I; and the utilities that are supposed to be constructed prior to the two dedications are not there. CounciLmember Green said then the city is riot proposing to build these lines on private property. Councilmember Lange said now it will be dedicated prior to that construction. Councilmember Bell asked if the city can recapture sane of the costs of this line, via taps and making water accessible to the other undeveloped areas around it. Mr. Pipes said yes, there is no question that as those developments take place, the city will recoup some of its costs; obviously there is a substantial investment in the water treatment plant and there are large capacity residuals in the sewer treatment in which the city could stand to share some costs. He said Eds West is not going to be a major water customer, but if _ someone goes in on the other side of the street from Eds West, the water tap and water sales are sources of revenue. Counci Lmember Carter said this seems inconsistent to him as we are going to allow Eds West to come in and pay for their water and sewer line but if another industry canes in, they are going to have to pay their costs. Mr. Pipes said the developer would pay for the tap fee, just as Eds West will. Councilmember Carter asked how the city will recoup $80,000 on tap fees alone. Mr. Pipes said the city will not recoup a substantial part of construction costs. Councilmember Barrett said the city will be receiving a nice street that costs over $100,000. Mr. Pipes said over the last couple of years, the city has installed a tremendous portion of the 12 inch outer loop at no expense to anyone but the public. Counci Lmember Bell said it is his understanding that Eds West is under a tight construction schedule and wishes to complete its construction by March 1. He said he would Like to see the Council facilitate their schedule because the sooner they get here, the sooner more jobs will be made available. Councilmember Knotts asked Mr. Isbell what the city's costs would be on a normal sewer extension. Mr. Isbell said the costs would be on one half of the first 300 feet and this is 1,200 feet long. Councilmember Knotts said then the city would be talking about spending Less than $10,000 on a normal extension. He said he can't find in the budget where the city has this $250,000. Ms. Patricia Allen, Director of Finance, advised it is in the capital improvements budget in the available funds category. Councilmember Knotts said it is not allocated for this purpose; it shows 8612,000 is available in unallocated funds. Ms. Allen said $250,000 of that is for this purpose. Councilmember Knotts said there is nothing in this budget to show the Council that there has ever been $250,000 allocated for this. City Manager Pipes said it has been in the budget every year. Councilmember Knotts said but it is not itemized as such and there is no way for him to see that it is there by looking at the budget. Ms. Allen said it is not a legal reserve; the Council has the option at any time ... Councilmember Knotts said Mr. Pipes advised at the beginning of this discussion that the Council set aside $250,000 as an incentive reserve, however, Mr. Knotts felt it was never itemized nor explained that way. Ms. Allen said she feels it has been explained that way, it is in the available funds, it is not allocated because the Council has never allocated any of that money, but it does have that option at any time. Councilmember Knotts noted he sees that it is unallocated funds, but it has never been explained to him in any meeting that the Council had $250,000 set up as an incentive package. City Manager Pipes said it has been a while since it was mentioned, but it was discussed. Mayor Hodges asked for a vote on the motion on the floor as underscored above. Upon a vote, Councilmembers Knotts and Carter voted OPPOSED and the remaining Councilmembers and Mayor [Barrett. Lange. Gaines Robinson Bell Green and Mayor Hodges] voted for the motion The motion therefore, passed by a vote of seven to two. Report on the exceeded Limit for change orders on the Supervisory Control and Data Acquisition (SCADA] System contract Mr. Pipes said Last fall the staff brought to the Council a change order on the SCADA system in which it added the Rustic Pines and BrookhoLLow Lift stations to the initial bid of $99,000 to build the SCADA system. ' He said the staff also brought in conjunction a change in the communication system, because the frequency that had been expected could not be acquired. He said Boyd Wilder went to Florida to view a similar installation and determined there simply were no frequencies available in this area to operate the system as it was originally envisioned. He said the total change order presented to the Council at that time was $29,000 to combine the two projects to insure that the city received compatible equipment so it would aLL be interrelated and coordinated properly. He said the staff determined, within the past two weeks, through obvious common sense logic, that a $99,000 bid and a $29,000 change order did exceed the 25 percent limit for change orders under CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "g" 483 state Law. He said obviously the contractor is owed and since the project is substantially complete, the total cost of the contract is $129,000. He said the Council approved the change order. There was no acknowledgement of this at that time because the necessity of the change in radio communications, and the combination of it with the BrookhoLLow and Rustic Pines Lift Stations into one overall master project, was clearly to the best advantage to the City of Huntsville. He said this item requries no action from the Council, but he simply wanted to make them aware this is the only instance, to his knowledge, where the staff inadvertently exceeded the 25 percent Limit of change order limitations [in this case, on a 8100,000 contract by some four percent]. MAYOR'S ACTIVITY REPORT - -BILL HODGES Exchange of right -of -ways on 10th Street Property Mayor Hodges said the Council did discuss the exchange of rights -of -way on 10th Street in Executive Session but the Council is not prepared to move forward at this time. COUNCIL ACTION Reserve for Economic Development Expansion Fund--Suggested Uses for Unallocated Funds Councitmember Knotts said there were two letters in the Council's packet concerning traffic signals [19th Street and Sam Houston; and Brazos Drive and Highway 301. He said the state does not have the money to install the signals. He said he would rather see the city spend some money on projects like that because they are needed for the safety of the residents. He said the city often overlooks projects like this and gives its money away. Drainage Concerns CounciLmember Gaines said she is grateful the storm runoff water didn't enter her business establishment, although it came within inches. She said this comment is made to let the Council know there is still a problem. City Manager Pipes noted drainage is still a problem. Councilmember Knotts said an open channel will solve that problem right down from her business. Congratulations extended to city crew Councilmember Barrett said the city employees [Leslie Lee, Ike Isaac and Terry Thomas] who found the Lost articles [gold Rolex watch, billfold and keys] in the street and returned them should be commended and congratulated. Mayor Hodges asked that this act of good citizenship be noted in the personnel files of these employees. Comm endations for water line work Councilmember Green noted a constituent sought him out to tell him how pleased he was for the level of expertise shown in the construction of the water Line on 19th Street and to compliment the staff on the way they have worked with him in trying to preserve the trees around his house. He said it is unusual for someone to actually seek a Councilmember in order to relay favorable comments. He said he passes this on to the staff. Councilmember Barrett noted he has also had this experience. Weight Limits on City Streets Needed CounciLmember Bell said he feels time has come for the Council to set some weight limits for the city streets. He asked that the staff look at this in the very near future and prepare an ordinance to address this situation, particularly logging trucks on residential streets. Mr. Pipes said the staff will address this issue. Mr. Pipes said scales are available at the landfill and trucks can be routed to the landfill for weighing. Mayor Hodges noted city residential streets are built to different weight limit standards than state and federal highways. Councilmember Bell noted Autumn Drive has been damaged by overweight vehicles. Sidewalk on 19th Street CounciLmember Bell commended the staff for resolving the sidewalk problem on 19th Street at Gibbs Elementary School, noting it was very pleasant to see it completed before school started. Trip to Japan Councilmember Bell asked if the Mayor will go to Japan as a part of the sister city relationship. Mayor Hodges advised as Mayor he has been invited, but the invitation is open to anyone in the city. Canada Trip Reaps Consulting Work CounciLmember Carter reported that as a result of the trip he made on behalf of the City to Canada this year, he has been invited to do some consulting work for cities in British Columbia. He said he will be Leaving next week to go to British Columbia to consult with Mayors from the cities of British Columbia. He thanked the CITY COUNCIL MEETING OF SEPTEMBER 3, 1991 BOOK "9" 484 Council for assisting in the funding of his earlier trip. !i 19th Street and Avenue P 112 Councilmember Carter noted before the city did the street work, to his knowledge, there was no flooding �f at the end of Avenue P 1/2. Councilmember Carter said he has heard from residents of that area who do not remember going through deep water there. He said as one travels north on P 1/2, the inlet box that should be draining that area appears to have collapsed in the middle. He said one edge of the inlet box is at Least two to three inches Larger than the middle of the inlet box; it does not conform to the contours of the street. He said it dips in the middle about two to three inches and felt it could not meet city standards. Mayor Hodges asked Mr. Isbell to check on this. Mr. Isbell said the street is not yet complete with its overlay applications and that he will look at it, noting there is a swag installation at that Location. Councilmember Carter said he has had other complaints from George Russell about other work on that street. Councilmember Carter felt this inlet box is not equal to the standard of work the city should be doing in the city. Lights Highways 30. 19 & Loco 19 CounciLmember Robinson commended whomever is responsible for the installation of lighting at this intersection. He said he saw one light and is not sure all are working, but the crew was there working about two days later. Mr. Pipes said it was the State Department of Highways and Public Transportation and it was their responsibility, not Gulf States, and he apologized publicly for misinforming the Council in that regard. Councilmember Robinson noted he was also reprimanded for this misunderstanding by the District Director of GSU. He said nonetheless, he appreciates the lights. Bicycle and Skateboarding on Maior Thoroughfares Councilmember Robinson advised of complaints concerning the increased incidence of bicycling and skateboarding down 11th Street and Sam Houston Avenue. He asked if there are any ordinances which regulate those activities. Mr. Pipes said there is no city regulation on bicycling, but there is an ordinance prohibiting skateboarding. Mayor Hodges asked that this matter be referred to the Chief of Police. Mr. Pipes said bicycles are permitted vehicles. Councilmember Robinson noted then the city should be able to License them and tine them. ADJOURNMENT Res uUy submitted, DeShaw, City SeW ret September 3, 1991 n 1