1971 09 07 CC Minutes5073
MINUTES OF THE REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
September 7, 1971
The City Council of the City of Baytown, Texas met in regular session on Tuesday,
September 7, 1971 at 6 :30 p.m., in the Council Room of the Baytown City Hall with the
following members in attendance:
Ted Kloesel
C. 0. Walker
Jody Lander
Leonard Stasney
Allen Cannon
Jim McWilliams
Councilman
Councilman
Councilman
Councilman
Councilman
Councilman
C. Glen Walker Mayor
D. R. Voelkel
City
Manager
Howard Northcutt
Adm.
Assistant
Neel Richardson
City
Attorney
Edna Oliver
City
Clerk
The Mayor called the meeting to order and the Invocation was offered by The
Reverend Stephen Heather, Wooster Baptist Church. He then called for the minutes of the
August 3, 9, 17, 30, 31 and September2. Councilman Stasney corrected minutes of
August 17 Exception Off Street Parking New Church. Councilman Stasney stated that
exceptions can be made, etc. Councilman Kloesel then moved to approve the minutes as
amended including August 9 through September 2. Councilman Walker seconded the motion.
The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
Consider Bank Depository Bid Proposals
The bank depository bids for the two ensuing years were received and tabulated as
follows:
First National Bank
I. A. Rate of interest on single maturity time
1. Maturity 30 -89 days
2. Maturity 90 -179 days
3. Maturity 180 days or more, but
less than one year
4. Maturity One year or more
deposits of $100,000 or more:
5.49 % per annum
5.49 % per annum
5.49 % per annum
5.49 % per annum
B.
Rate of interest
on single maturity time deposits of
less than $100,000:
1.
Maturity
30 days, but less than one year
5 % per annum
2.
Maturity
One year, but less than 2 years
5.49 % per annum
Stated rates will not be affected by any adjustments in the maximum rates of interest
permitted by regulatory authority.
Note: Stated rates may be varied during the terms of the contract being subject to the
fluctuations that may occur with the prime rate.
S69
II. Interest on Loans:
1. Interest rate to be paid
by City
on temporary overdrafts up to $100,000 where
City does'not have compensating
balance
in other demand accounts:
New York Prime rate at
time of
Overdraft
2. Interest rate to be paid
by City
on current loans to a maximum of $500,000 to be
repaid in current fiscal year:
New York Prime at inception of note
Note: Stated rates may be varied during the terms of the contract being subject to the
fluctuations that may occur with the prime rate.
S69
5074
Minutes, September 7, 1971
Peoples State Bank
I. A. Rate of interest on single maturity time deposits of $100,000 or more:
I. Maturity 30 -89 days 1.10 % per annum greater
than the published average auction rate for 90 day U. S. Treasury Bills at the last
such sale preceding the date on which the deposit is made with interest to be compounded
continuously on a 360 day basis; provided, however, that the interest rates to be
paid will not exceed the maximum interest rate which may be paid in accordance with
Federal Deposit Insurance Corporation.
2. Maturity 90 -170 days 1.25 % per annum,
3. Maturity 180 days or more, 7
but less than one year 1.50 % per annum, etc
4. Maturity One year or more 2.00 % per annum,etc
B. Rate of interest on single maturity time deposits of less than $100,000:
1. Maturity 30 days, but less Same as items IA1, IA2,
than one year and IA 3, above, etc
2. Maturity One year, but less than
two years Same as item IA4 above etc
Note: Stated rates will be affected by any adjustments in the maximum rates of
interest permitted by regulatory authority.
II. Interest on Loans:
1. Interest rate to be paid by City on temporary overdrafts up to $100,000
-0- $
2. Interest to be paid by City on current loans
maximum of $500,000 (repaid in current fiscal year) -0-
Note: Stated rates nay not be varied during the term of contract.
im
Citizens National Bank & Trust Company
1. A. Rate of interest on single maturity time deposits of $100,000
1.
Maturity
30 -89 days
6.15
%
per
annum
2.
Maturity
90 -179 days
6.15-%
per
annum
3.
Maturity
180 days or more, but less
than one year
6.15
%
per
annum --
4.
Maturity
One year or more
6.15-%
per
annum
B.
Rate of
interest on single maturity time deposits of less
than
$100,000
1.
Maturity
30 days, but less than one year
5.00
%
per
annym
2.
Maturity
One year, but less than two years
511
%
per
annum
Note: Stated rates will not be affected by any adjustments in the maximum rates of
interest permitted by regulatory authority.
II. Interest on loans
1. Temporary overdrafts up to $100,000 -0-
2. Current loans to a maximum of $500,000 to be repaid in
current fiscal year -0- %
Note: Stated rates may not be varied during the term of the contract.
Since two bids were firm and one bid provided fluctuating interest rates, the
Council's decision would be based on which rate would appear to be better. Rep-
resentatives from Peoples State and Citizens National were--present and each firm
submitted additional information supporting its respective bid. At the request
of the Council, City Manager Voelkel also submitted a depository schedule on
bond funds now on deposit with the First National Bank, the City's present
depository. It was pointed out, however, that these were short term deposits
extending through. -the present contract period only. During the discussion which
followed, Councilmen Lander and Stasney suggested seeking the advice of the City's
I i (�
Minutes, September 7, 1971
5075
financial advisor, Tom Masterson, before awarding the bids as there were merits on both
bids. This would take some time and Councilman Stasney proposed postponing this item,
call a special council meeting for Thursday, September 9 at 6:30. In the meantime,
attempt to secure as much professional advice as possible on projected expenditures
under the bond program. Others felt that the bond advisor would not make a firm
recommendation for acceptance. Following other discussion, Councilman Stasney moved
to table this item until 6:30 p.m., Thursday, September 9. Councilman Walker seconded
the motion. The vote follows:
Ayes: Councilman Stasney and Walker
Nays: Councilmen Kloesel, Lander ,McWilliams and Cannon
Mayor Walker
Councilman Lander then moved to defer the item until Thursday afternoon; in the
meantime consult with the fiscal agent to get his advice, if any advice_. Councilman
Stasney seconded the motion. Councilman McWilliams moved to table the motion. Councilman
Kloesel seconded the motion. The vote follows:
Ayes: Councilmen Kloesel and McWilliams
Nays: Councilmen Lander, Stasney, Walker and Cannon
Mayor Walker
Director of Finance LeFever gave an oral report on a comparative projection which
he had prepared based on the interest shown in each bid, afterwhich, Mayor Walker
called for the vote on the motion to defer. The results follows:
Ayes: Councilmen Lander, Stasney, Walker and Cannon
Mayor Walker
Nays: Councilmen Kloesel and McWilliams
** Item reconsidered later in meeting.
Consider Ordinance - First Reading Annexation of Acreage North Cedar Bayou Lynchburg Road
City Attorney Neel Richardson introduced and read, on first reading an ordinance
annexing the 55 acre tract of land owned by the City of Baytown in the G.C. & S. F. RR
Survey. Councilman McWilliams moved to refer this ordinance until the next regular meeting
of the Council. Councilman Cannon seconded the motion to get the discussion on the floor.
City Attorney Richardson reviewed the steps regulating annexation proceedings for the
benefit of those attending the meeting, afterwhich, Councilman McWilliams expressed his
concern over the apparent lack of communication between the Committee which was appointed
at the time of the public hearing on the proposed annexation and the residents of the area
who expressed a willingness to work with the Committee in an attempt to find a site
suitable for a landfill site. He felt that they should have an opportunity to try and
find a site prior to the next meeting of the Council. Mr Harman submitted petitions
requesting the Council not to annex the parcel of land becuase it is not wanted by the
community, or residents of Kenwood Estates for purposed df a landfill site. Following
some further disucssion, the vote was taken on the motion to postpone and the vote
follows:
Ayes: Councilmen McWilliams and Stasney
Nays: Councilmen Lander, Kloesel, Walker and Cannon
Mayor Walker
Councilman Lander then moved to adopt the annexation ordinance on first reading.
Councilman Walker sedonded the motion. Councilman McWilliams asked for answers to three
questions presented by residents of the Cody Community at the public hearing, namely:
(1) Would landfill site pollute Goose Creek stream more than now polluted; (2) would it
pollute water supply in Cody; and (3) question of depth of water level in the area. When
informed that no answers were available at this time, he proposed deferment until the
answers were made available. the vote was then taken on the motion to adopt ordinance
on first reading. The results follows:
Ayes: Conncilmen Kloesel, Lander, Walker, and Cannon
Mayor Walker
Nays: Councilmen Stasney and MCWilliams
9
5076
Minutes, September 7, 1971
The caption of the ordinance follows:
ORDINANCE NO. 1120
AN ORDINANCE PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF
THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF CERTAIN TERRITORY WHICH
SAID TERRITORY LIES ADJACENT TO AND ADJOINS THE PRESENT BOUNDARY LIMITS
OF THE CITY OF BAYTOWN, TEXAS.
Mayor Walker stated that a public hearing would be held for any determined use
of the land should there be a second reading prior to the 90 day period. If
nothing happens within 90 days, the matter is dropped completely. He reactivated
the Committee appointed at the time of the public hearing with Councilman Kloesel
as Chairman, Councilmen Stasney, Walker, and McWilliams, who will work with the
Cody Community Committee in an attempt to find an alternate site for a sanitary
landfill. = Vhe Administration was also instructed to come up with answers to the
three (3) questions posed by the residents of Cody at the public hearing and
reintroduced by Councilman McWilliams.
Ordinance _Abandoning Ground Easement Wilburn Brothers Subdivision
City Attorney Richardson introduced and read an ordinance abandoning an easement
which was dedicated to the City at the time Wilburn Brothers Subdivision was developed.
It was to provide utilities to Lot 21, Block 2 of the subdividion but the property
is now owned by one person. The lots can be served from any point on the side
street and the owner wants to enlarge the building located on the site; this would
extend over the easement. Following some discussion, Councilman Cannon moved to
adopt the ordinance as read. councilman Stasney seconded the motion. The vote
follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
The caption of the ordinance follows:
ORDINANCE NO. 1121
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, ABANDONING THE
12' GROUND EASEMENT ALONG THE REAR OF LOT 20 AND THE 12' BY 5' GROUND
EASEMENT ALONG A PORTION OF THE REAR OF LOT 21, BLOCK 1, OF WILBURN
BROTHERS SUBDIVISION, SECTION 2, AS RECORDED IN VOLUME 36 AT PAGE 73
OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS; AUTHORIZING THE MAYOR AND
THE CITY CLERK TO EXECUTE SUCH INSTRUMENTS AS ARE NECESSARY FOR SUCH
ABANDONMENT, IF ANY, AND PROVIDING FOR AN EFFECTIVE DATE HEREOF.
Request - James Irons Exception in Fire Zone
The @ouncil considered the request of James Irons for an exception in the City's
Fire Zone to permit him to locate a house trailer on Lot 2, Block 6 of Jones
Addition. He had originallyk purchased the lot as a business location but made
other investments which required him to defer construction of the building.
He moved a house trailer on the lot not knowing it was within the fire zone. It
is 30 -feet from the left side facing West Main and 45 -feet from John's Trim Shop
and needed an exception to be made in order to have the City make the necessary
water and sewer taps to service the house trailer. The fire zone extends 100
feet back from West Main, the entire length of the lot in question. He was
told that the Fire Chief has been asked to submit recommendations for modification
of the present fire zone, but the report will not be ready for approximately 60
days. Following some further dissussion, the Administration was asked to
look into the particular situation and see if a possible compromise solution can
be worked out. The Administration will present its recommendation at the
Thursday night budget workshop.
5077
Minutes, September 7, 1971
Ordinance - Authorizing Contract - Otis Graham Appraisal Services, Bond Program
Councilman Stasney moved to adopt an ordinance authorizing the Mayor
to enter into a contract with Otis Graham, Realtor, for appraisal services concerning
right -of -way acquisitions incident to the construction of permanent street
improvements in the 1970 Bond Program. Councilman Lander seconded the motion.
Following discussion proposing the sue of other appraisers in connection with
' the bond program rather than one, the vote was taken. The results follow:
Il Ayes: Councilmen Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: Councilmen Kloesel and Walker
The caption of the ordinance follows:'
ORDINANCE NO. 1122
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH OTIS GRAHAM,
REALTOR, FOR APPRAISAL SERVICES FOR USE IN ACQUISITION OF RIGHTS -OF-
WAY INCIDENT TO CONSTRUCTION OF PERMANENT STREET IMPROVEMENTS UNDER
THE 1970 BOND PROGRAM CONSISTENT WITH THE TERMS, RATES AND FEES SET
OUT IN THE PROPOSAL OF OTIS GRAHAM, REALTOR, DATED JULY 27, 1971;
AUTHORIZING THE CONTRACTING OF INDEBTEDNESS BY THE CITY CONSISTENT
WITH THE TERMS AND FOR THE AMOUNTS AND RATES SET OUT IN SAID PROPOSAL
ANM.PROVIDING FOR AN EFFECTIVE DATE HEREOF.
Resolution - Expressing Gratitude H. O. & R. C. - Park Site -Busch Terrace Subdivision
Councilman Walker moved to adopt resolution expressing gratitude to Humble
Oil & Refing Company for the donation of a park site in Busch Terrace Addition, and
to employees of Humble and Enjay Chemical Company for donation of their time, and
efforts in the construction and installation of playground equipment can the park site.
Councilman Cannon seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
RESOLUTION NO. 347
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN EXPRESSING
ITS DEEP GRATITUDE AND SINCERE APPRECIATION TO HUMBLE OIL & REFINING
COMPANY FOR THE GIFT TO THE CITY OF LAND TO BE SUED AS A PARK SITE AND
FOR THE GIFT OF MATERIALS FOR THE CONSTRUCTION OF PLAYGROUND EQUIPMENT;
RECOGNIZING AND THANKING THE EMPLOYEES OF HUMBLE OIL & REFINING COMPANY
AND ENJAY CHEMICAL COMPANY, BAYTOWN PLANTS, FOR THE DONATION OF THEIR
TIME AND EFFORTS IN THE CONSTRUCTION AND INSTALLATION OF PLAYGROUND
EQUIPMENT ON THE ABOVE MENTIONED PARK SITE; AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THIS RESOLUTION AND DIRECTING THE CITY MANAGER
TO FORWARD CERTIFIED COPIES OF SAME TO HUMBLE OIL & REFINING COMPANY,
THE EMPLOYEES OF HUMBLE OIL & REFINING COMPANY AND ENJAY CHEMICAL COMPANY.
Consider Ordinance - Acceptance Sewer Improvement Bowie Drive -Busch Terrace -
A�prove Payment
Councilman Stasney moved to table action on an ordinance accepting the sanitary
sewer improvements made by Bayshore Constructors on Bowie Drive and Meyers Street
in Busch Terrace Addition until repairs are made to restore both Bowie Drive and
Mygrs Street to their original condition. Councilman Cannon seconded the motion.
The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
969
5078
Minutes, September 7, 1971
Appoint Henry Armstrong - Parks and Recreation
Councilman Kloesel moved to accept the recommendation of Mayor Walker
and reappoint Henry Armstrong to the Parks and Recreation Board for a
second term. Councilman Stasney seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon &
McWi]Liams
Mayor Walker
Nays: None
Action upon a second appointment was deferred until the next
regular meeting of the Council.
"Reconsider Bank Depository Bids
At this point the Council interrupted the order of the agenda to
al&ow the City's fiscal agent, Tom Matterson, to submit his recommendation
relative to the depository bids because he would be unable to attend the
Thursday night meeting. Councilman Kloesel moved to reconsider Item No. 2
Bank Depository Bids. Councilman Lander seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Landers, Stasney, Cannon and
McWilliams
Mayor Walker
Nays/ None
Before Mr. Masterson spike, A. J. Busch, Jr., consulting engineer,
submitted an oral report on the projected expenditures for capital improvements
under the bond program. After receiving the report, Mr. Masterson stated that
he had no feeling on the projected expenditures, but offered comments on the
depository bids. As a result of President Nixon's message on August 15, he
felt lower interest rates would be seen for a period of time, probably
in the 41j to 4 5/8 range. On this basis, the fixed rate of 6.15% would
be better on deposits of less than one year and not as good on the over
one year investments, however, he pointed out that :he had not had time to
make a complete analysis. If wage and Price control continues, he did not
expect interest rates to return to thehigher levels, this was used by the
Administration to control the economy. Following a lengthly discussion,
Councilman Kloesel moved to award the depository contract to Peoples State
Bank. Councilman Walker seconded the motion. John C. Echols of Citizens
National then asked to make other comments following which Councilman McWilliams
moved to table the motion. Councilman Lander seconded the motion. The vote
follows:
Ayes: Councilmen McWilliams and Lander
Nays Councilmen Kloesel, Walker, Stasney, Cannon
Mayor Walker
Upon hearing other comments, Councilman Walker withdrew his second
to the motion of Councilman Kloesel, Councilman Stasney then seconded the
original motion. The vote follows:
Ayes: Councilmen Kloesel and Stasney
Nays: Councilmen Walker, Lander, Cannon and McWilliams
Mayor Walker
Councilman Cannon then moved that the depository contract be awarded
to Citizens National Bank & Trust Company. Councilman McWilliams seconded
the motion. The vote follows:
Ayes: councilmen Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: Councilman Kloesel
Councilman Cannon then moved that the City request Citizens National Bank
& Trust Company to compound the interest daily-Councilman McWilliams seconded the
motion. The vote follows: Ayes: Councilmen Walker, Lander, Stasney,Cannon& McWilli&
Mayor Walker
Nays: None
�11(i7
Minutes, September 7, 1971 5079 259
George Simon`- AuXiliary Police schooling 'Resolution of Support
After hearing a plea from George Simon relative to Auxiliary Police Schooling, Councilman
Kloesel moved to adopt a resolution supporting the attempts of Lee College to get a certi-
fication program for the Police Department, both regular and auxiliary. Councilman Stasney
seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
Councilman Kloesel made a motion that the City Louncil continue the concept of using the
Police Reserve in useful missions to augment the regular Police force. Councilman Walker
seconded the motion. The vote follows:
Ayes: Councilmen Walker, Kloesel, Lander, Stasney, Cannon & McWilliams , Mayor Walker
Nays: None
"Reconsider Request Citizens National Bank - Interest Calaulations
Councilman Cannon moved to reconsider the request of Citizens National Bank & Trust
Company on the method of interest calculations. Councilman Kloesel seconded the motion. Th.
vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams, Mayor Walker
Nays: None
Councilman Cannon moved to request Citizens National Bank & Trust Company to compound
interest continually on the City's depository contract. Councilman Walker seconded the
motion. The vote follows:
Ayes: Councilman Kloesel, Walker, Lander, Stasney, Cannon and McWilliams, Mayor Walker
Nays: None
Status Report Bond Program Projects
A. J. Busch, Jr. consluting engineer, gave a report on thestatus of the bond program
Projects which included water, streets, parks, police building, public works complex,
and fire station. He asked for authorization to complete Phase I of the water works.
Councilman Kloesel moved to authorize the firm to proceed with preparation of plans and
spedifications for the remaining distribution mains, water well, elevated storage and
central control system under Phase I. Councilman Stasney seconded the motion. The vote
follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays:,, None
Ivan Langford, an associate of A.J. Busch, gave a report on the status of the sewage
projects, including connector mains, treatment plants, etc. In the discussion following,
Councilman McWilliam suggested that the Council may want to retain permanent operations
at the Craigmont Plant by enlarging the facilities rather than installing interceptor
mains from this point to the West Main Plant and then phasing the Craigmont Plant out
as first planned. -
Accept Petitions - Opposing annexation of 55 acre Tract
Councilman McWilliams moved to officially receive the petitions presented by Mr. Harman
requesting the Council not to annex the parcel of land known as KENWOOD ESTATES for the
purpose of a landfill site. Councilman Kloesel seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
Adjourn
There being no further business to bring before the Council, the motion was made
by Councilman Kloesel and seconded by Councilman Walker that the meeting adjourn. The
ayes were unanimous and the Mayor declared the meeting adjourned.
C. GLEN WALKER, Mayor
ATTEST:
�WN -LlJ ��'INU {N
EDNA OLIVER, City Clerk
5079•�(�a.
Status Report Bond Program Projects
A. J. Busch, Jr., consulting engineer, gave a report on the status of the
bond program projects which included water, streets, parks, police building, public
works complex and fire station. He asked for authorization to complete Phase I
of the waterworks. councilman Kloesel moved to authorize the firm to proceed with
preparation of plans and specifications for the remaining distribution mains,
water well, elevated storage and central control system under Phase I. Councilman
Stasney seconded the motion. The vote follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
Ivan Langibrd, an associate of A. J. Busch, gave a report on the status
of the sewage projects including connector mains, treatment plants, etc. In the
discussion following, Councilman McWilliams suggested that the Council may want
to retain permanent operations at the Craigmont Treatment Plant by enlarging the
facilities rather than installing interceptor mains from this point to the West
Main Plant and then phasing the Craigmont Plant out as first planned.
Accept Petitions - Opposing Annexation of 55 acre Tract
Councilman McWilliams moved to officially receive the petitions presented
by Mr. Harman requesting the Council not to annex She parcel of land known as
KENWOOD ESTATES for the purpose of a landfill site. Councilman Kloesel seconded
the motion. The vote.follows:
Ayes: Councilmen Kloesel, Walker, Lander, Stasney, Cannon and McWilliams
Mayor Walker
Nays: None
Adjourn
There
being no
further
business to bring before the Council,
the motion
was made by Councilman
Kloesel
and seconded by Councilman Walker that the meeting
j adjourn. The
ayes were
unanimous and the Mayor declared the meeting
adjourned.
% /��
�.! i
ATTEST.
�2
EDNA OLIVER, City Clerk
^t(