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2005 06 09 WS MinutesMINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN June 9, 2005 The City Council of the City of Baytown, Texas, met in work session on June 9, 2005, at 4:45 p.m. in the Council Chamber, Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Ronnie Anderson Brandon Capetillo Sammy Mahan Don Murray Mercedes Renteria Calvin Mundinger Gary M. Jackson Bob Leiper Kelvin Knauf Gary W. Smith Absent was: Scott Sheley, Council Member. Council Member Council Member Council Member Council Member Council Member Mayor City Manager Deputy City Manager Assistant City Manager City Clerk. The meeting was opened with a quorum present after which the following business was conducted: Receive report and discuss the report on Taft Circle apartments. Gary Jackson, City Manager, stated that a memorandum from Kevin Byal, Chief Building Official, and Ignacio Ramirez, Sr., City Attorney, summarized the condition of the premises at Taft Circle and the process for demolition of the buildings. Mr. Byal reported that the buildings were severely dilapidated. In 2001 many violations were found, the owner failed to remedy the problems, and the property was declared uninhabitable. Many citations and much correspondence have issued relating to the property. In response, the pool was filled with soil and the clubhouse was demolished. The roof on every building has a breach and the interior or each building is deteriorating. Reputable contractors were consulted to obtain estimates for the cost of demolition of the property. Mr. Jackson stated that the demolition estimates were taken for the demolition of the buildings and the demolition of the buildings and removal of the concrete slabs and parking lots. A separate estimate was obtained for the asbestos abatement. The range for the complete demolition is from $150,000 to $300,000. The range for removal of the buildings only is from $100,000 to $240,000. The estimate for asbestos abatement ranges from $500,000 to $716,000. Page 2 of 4 Minutes of the Work Session — June 9, 2005 Mr. Jackson reviewed the enforcement efforts at 1601 Garth Road, the Woodcreek Apartments. The project was in similar disrepair. The owner kept the City in litigation for two and one -half years. Redevelopment agreements were entered, but never honored. Bob Fredrichs acquired the property and, with assistance through tax credits, has reconstructed the project. With the right people involved, private owners can abate the problems. Mr. Byal reported that A &K Investments, owned by Alfred Antonini, is a part owner of the Taft Circle apartments. The other owner is Cornerstone Properties. Council Member Anderson stated that the condition of the apartments is a health and safety hazard for the nearby residents. Mr. Byal reported that Mr. Fredrichs has unsuccessfully attempted to acquire the property. Mr. Jackson stated that the plan is to take the project to the Urban Rehabilitation Standards Review Board on July 11, 2005. The Board may issue an order for demolition. If that order is issued and if the City is not enjoined from acting on the order, the City must be prepared to enforce the order. Funding is necessary and there are not sufficient funds budgeted for the purpose. Approximately $200,000 is in the Council's discretionary funds that could be dedicated to the demolition. Council may declare an emergency and hold a public hearing. After the public hearing, Council may amend the budget and provide the needed funds from the emergency fund balance. Council Member Murray questioned why the taxpayers must bear the expense caused by negligent property owners. Bob Leiper, Deputy City Manager, responded that a suit to force the owner to demolish the property would likely end with the City funding the demolition and filing a lien against the property. Council Member Anderson encouraged staff to take action to resolve the problem and to seek recovery of the City's expenses. Mayor Mundinger commended staff for providing comprehensive information on the property. Review capital improvement projects. Mr. Jackson reviewed the map of capital projects undertaken since 1999. The projects are in all areas of the City. He commended the Engineering Department, Planning and Development Services Department, Public Works Department, Finance Department, and Mr. Leiper for the day - to -day management of the projects. He also commended Matthew Bailey for his creation of the map. Joe Lysengen, Assistant City Engineer, provided a summary of the sanitary sewer work performed since 1999. Between 1999 and 2001, 17 projects (rehabilitation and lift stations) were completed at a cost of $16,700,000. These projects rehabilitated 22.6 miles of sewer lines, of which City staff designed 9.7 miles. Five miles of collection lines were installed. From 2001 to the present, 11 rehabilitation projects have been completed and 21 rehabilitation projects are underway. These projects have a $54,000,000 value and will affect 66.1 miles of lines. New collection lines for the Northeast Wastewater Treatment Plant will add 4.5 miles to the system. City staff has designed Page 3 of 4 Minutes of the Work Session — June 9, 2005 projects totaling 37 miles. The work of staff is equivalent to a $1,700,000 savings over having an outside firm prepare the plans. Council Member Renteria related that citizens urge that the work be performed by City staff rather than consultants. Council Member Murray encouraged the use of staff when it is more beneficial than retaining a consultant. Discuss the current and proposed expansion of the utility bond program. Mr. Jackson explained that wastewater service is important. The three keys to wastewater improvement are customer service, regulatory compliance, and capacity for new development. The Northeast Wastewater Treatment Plant will transfer 1,000,000 gallons per day from the East District Plant. The Northeast Plant site has sufficient room for future expansion. Mr. Lysengen stated that construction of the Northeast Plant is scheduled to begin in December, 2005. The funding is through the Texas Water Development Board. Comment periods still remain and there are steps left to achieve prior to the project being funded. The design of the plant is at 90% completion. Mr. Jackson stated that the staff has regular communication with the Texas Commission on Environmental Quality concerning the City's wastewater program. This communication avoids order and penalties. A key goal is to maintain the system to avoid problems during rain events. There is great interest in the area by developers. In order to maintain the interest and to achieve growth, the service must be provided. The utility bond program has been expanded from $29,000,000 to $67,000,000. The City and area have seen a significant increase in the number of housing starts and lots platted. There has been an increase in commercial development. The improvements to the system are paid by user fees. The recent rate study must be updated to include the increases in the cost of chemicals, electricity, raw water, and capital. It is reasonable to extend the current program for an additional five years. Otherwise, there will be an overlap in projects. In budget preparation, staff will include an expanded utility capital program but not a new general obligation bond program. Staff will compare the proposed rates required to cover the increased costs and the expanded program with the rates of other cities. The expanded program will include improvements in the water and wastewater systems. The focus will change from the collection lines to the trunk lines. An item is included on the regular meeting agenda to provide guidance to staff concerning the expansion of the utility bond program. Discuss appointments. Construction Board of Adjustments and Appeals. Council Member Mahan stated that he would move the appointment of James A. Davis as a citizen at large to the Construction Board of Adjustments and Appeals. Page 4 of 4 Minutes of the Work Session — June 9, 2005 00' Adjourn. There being no further business, the meeting adjourned at 5:54 p.m. Gary W. Smith City Clerk