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1978 04 27 CC Minutes80427 -1 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN April 27, 1978 The City Council of the City of Baytown, Texas, met in regular session, Thursday, April 27, 1978, at 6:30 p.m. in the Council Chamber of the Baytown City Hall. The following members were in attendance: *Jody Lander *Jack Kimmons Ted Kloesel *Mary E. Wilbanks Eileen Caffey Emmett 0. Hutto Fritz Lanham Dan Savage Scott Bounds Eileen P. Hall Absent: Allen Cannon Councilman Councilman Councilman Councilwoman Councilwoman Mayor City Manager Assistant City Manager City Attorney City Clerk Councilman Mayor Hutto called the meeting to order and the invocation was offered by the Reverend Burnette Dowler. Administer Oath of Office to Council Member from District No. 2 Judge Raymond T. Donnelly administered the Oath of Office to the newly appointed Councilwoman Eileen Caffey who will serve the remainder of the unexpired term for Council District No. 2. *Council members Jody Lander and Mary E. Wilbanks present. Approve Minutes Councilwoman Wilbanks moved to approve the minutes of the regular meeting of April 13, 1978, and ratification of actions taken concerning each of the matters listed on the agenda of said meeting; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks, and Caffey Mayor Hutto Nays: None Receive Petitions Mr. Lanham explained that he had received a petition from the residents living on St. Andrew Street in Country Club requesting that the street be named St. Andrews. It is felt that St. Andrews was the name intended for the street but the plat shows St. Andrew. Mr. Andrew Lannie explained that he was present on behalf of a number of residents of the Kingsbend Subdivision who have circulated a petition to be presented to the City Council with approximately 163 signatures. The petition requests that the City Council establish regulations prohibiting the hauling of dirt, concrete or land fill materials through and across Tompkins Drive in Kingsbend. Each of the petitioners felt that the constant use of Tompkins Drive as a truck thoroughfare destroys the residential character of the subdivision and is a safety hazard for the small children living on each side of said street and in the subdivision generally. The petition requested that the truck traffic be prohibited and diverted to adjacent access roads. Minutes of the Regular Meeting 80427 -2 April 27, 1978 This land fill material is being hauled to the Whispering Pines Subdivision for a large land fill project that is probably 707o complete. The trucks come by Tompkins Drive in great numbers. They come by loaded and at an unsafe rate of speed. Tompkins Drive is a curbed and guttered street and sidewalks are built near the curb. Children play near the curb and sides of the street. Mr. Lannie explained that he understands that there may not be a truck route to get this material to the Whispering Pines Subdivision. The route is slightly longer if Massey Tompkins and Raccoon Drive are used. Massey Tomkins Road and Raccoon Drive are not curb and gutter streets. Councilman Lander commented that he thought the City had ordinances controlling and prohibiting truck traffic through residential areas. Mr. Lanham explained that there is a truck route ordinance but if materials are being hauled to a construction site within that general area, trucks may travel off the truck route. Mr. Lanham explained that the Administration and the Police Department are aware of the problem, and about 3 or 4 weeks ago, the Chief of Police began working on the problem. The Chief of Police has had several conversations with the management of at least one of the companies that has been hauling in that area, and he was assured that their trucks are no longer using Tompkins Road. Over the last two months, a total of 24 tickets have been issued for traveling off truck routes in the city. Mr. Lanham commented that the Police Department will continue to police this area. Mr. Lannie commented that the petitioners would certainly appreciate consideration that Council might urge in this respect. In response to a question from Councilwoman Wilbanks, Bo Turner, Chief of Police, explained that most of the concrete trucks are Gifford -Hill trucks and the dispatcher and the manager of Gifford -Hill said that their trucks will be dispatched down Massey Tompkins and up Raccoon Drive. The man that operates the dirt pit said that he would talk to all of his drivers and get them to use Massey Tompkins. Chief Turner commented that he thought the situation had been resolved except for a few stragglers. Mr. Stoney McAlister, a resident of the Kingsbend Subdivision, commented that the problem is that it is still happening. Mayor Hutto recognized Marie Read, also a resident of the Kingsbend Subdivision, and she explained that she has seen the Police Department out in the subdivision during the day but the trucks come through the subdivision at about 10:00 a.m. and leave around 3:30 p.m., just about the time the children are arriving home from school. Councilwoman Wilbanks moved to accept the petition and refer it to the Administration to see if the City can get stricter enforcement out there and get the trucks on the Massey Tompkins route; Councilman Kloesel seconded the motion. Councilman Kloesel commented that there needed to be stronger enforcement of the ordinance with regard to trucks moving through residential areas. He also pointed out that there are quite a few large trucks being parked in residential areas that are an obstruction to the flow of traffic. Councilman Kloesel commented that the truckers in both the Houston and Baytown area tend to get by with just a little more in traffic violations than the average citizen. The vote follows: Ayes: Council members Lander, Kimmons, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None 80427 -3 Minutes of the Regular Meeting April 27, 1978 City Manager's Report Resurfacing of West Main Street - The Administration has been notified by Commissioner Jim Fonteno's office that the County is going to begin the resurfacing of West Main Street either Tuesday or Wednesday of next week. The City is in the process of raising the manholes and valves along that street. The County is planning to lay 1J inches of hot mix on that street. Enforcement Order - The City of Baytown is under an enforcement order from the Texas Department of Water Resources to construct a sewage treatment plant in the west part of the City to replace the existing Lakewood Treatment Plant. In all of the correspondence we have had with the State and in testimony, we indicated that the replacement of that Lakewood Treatment Plant and the construction of a new one was dependent on the City of Baytown receiving federal funds to pay 75% of the cost. We have completed Step 1, and submitted all of the required reports to the Department of Water Resources. We have not received the grant funds as yet, therefore, it appears that it will be doubtful that the City can construct a treatment plant before January 1979. The Administration has talked with representatives of the State who indicated that probably the earliest this project would receive funding would be for the federal fiscal year 1979, which begins October 1, 1978 - -that is assuming that funds are available and that the City of Baytown ranks high enough on the priority list. Mr. Lanham explained that the Administration would like to ask for an extension to the enforcement order. The City does not have the money to construct this plant without receiving federal money or by somehow coming up with the additional money. Mr. Lanham explained that all the Administration wants to do is to ask for an extension to the enforcement order which would not require Council action. Council had no objections. P.S. Contractors - In March, 1978, the Administration reported to Council that they had been notified of an application of P.S. Contractors to discharge domestic sewage effluent into Goose Creek Stream and thence to Tabbs Bay. The Administration advised the Texas Department of Water Resources that the City of Baytown was opposed to this application and requested that the applicant look for another location to dispose of the effluent. The Administration has been advised by the State that the hearing examiner has recommended that the permit be issued. It is the opinion of the hearing examiner that the issuance of the proposed permit would not be adverse to any party of the preceeding. Mr. Lanham explained that members of the City Council could appear on May 8, which is the date the State will be considering this application. Council members felt that this application should be opposed because the effluent would be discharged into Goose Creek which is the body of water that runs through the City. Councilman Lander inquired if there is an alternate place to dispose of the sewage effluent. Mr. Lanham explained that he believed that the effluent could be discharged into the San Jacinto River or Cedar Bayou. Mr. Lanham commented that the Administration can prepare a presentation if Council would like to continue to oppose the application of P.S. Contractors. Council concurred that the application should be opposed. 80427 -4 Minutes of the Regular Meeting April 27, 1978 Sports Complex - The project is about 90% complete with most of the asphalt parking and drives in place. The tennis courts have been built and the lots on the ball fields have been installed. About the only work remaining is the fences around the tennis courts and ball fields. Country Club Water Line Replacement - This project is approximately 30 % complete. The work is still progressing rapidly with very good cooperation from the citizens in that area. The contractor is doing an excellent job with the management of the operation. Kilgore Road /Mockingbird Lane Storm Sewer Project - The contractor has moved equipment and materials to the job site but has not started any construction. Sewer Lines on Kentucky Street - At the last Council meeting, the Administration was asked to look at the problems with the sanitary sewers in the Kentucky-Street area. The investigation revealed that several of the homes in that area are tapped onto a four -inch line, therefore, the Administration proposes to replace 180 feet of line with a six -inch line. The Administration could determine no other apparent reason for the problem. Councilman Kloesel commented that at least two of the residences have replaced their lines and it has not improved the problem to any extent. Special Council Meeting - The City Council must meet Monday, May 1, 1978, to canvass the election returns for the run -off election. The Administration suggested the Council meet at 5:00 p.m. Council had no objection to this meeting time. Hold a Public Hearing on the Request of Entex, Inc. for Rate Increase to Effect Cost of Service Adjustments Mayor Hutto declared the public hearing open on the request of Entex, Inc. for rate increase to effect cost of service adjustment. Mayor Hutto recognized Richard DeSalme of Entex, Inc., who stated that on March 27, 1978, Entex filed a Statement of Intent with the City of Baytown requesting a $.40 per month cost of service adjustment. Mr. DeSalme explained that at that time he left informational booklets for all City officials explaining the $.40 adjustment, and also Entex's position on this adjustment. The yearly cost of service adjustment is computed by comparing 1976 cost of service and the 1977 cost of service. Mr. DeSalme explained that on Entex's cost of service adjustment, there are two items which are not covered - -one being the return on additional plant investment that has occurred since last year. It also does not include the cost of capital, better known as interest on borrowed money. Our cost of service adjustment clause covers only operating expenses for 1977, the largest portion of which is salaries and wages. This $.40 adjustment that is being proposed is identical to rates that are being proposed in other cities in the Texas Coast Division. Currently, there are 46 cities in Entex's Texas Coast Division. Out of these 46 cities, in our December 1976 rate filing, 34 of these cities granted Entex the automatic cost of service clause. There are also 12 other cities in the Texas Coast Division that rejected the automatic cost of 80427 -5 Minutes of the Regular Meeting April 27, 1978 service clause. This means that on May 1, 1978, this $.40 adjustment automatically goes into effect for these 34 cities. Of the 12 cities that do not have the cost of service clause, Entex has filed letters of intent. Through tonight, Entex has held public hearings, workshop sessions, and has attended Council Meetings where other cities approved this increase. Mr. DeSalme explained that several public hearings are being held tonight and a few hearings are scheduled for next week. Mr DeSalme assured Council that if the $.40 cost of service adjustment were granted, Entex would not come back to Council to ask for another cost adjustment for at least one year for the residential and small commercial users. Councilman Kloesel stated that he was not convinced that it is costing Entex that much to produce, to install pipeline, and to distribute the gas. Mr. DeSalme explained that this $.40 does not include any additional pipelines. This increase is due to operating expenses incurred during 1977. Mr. DeSalme explained that for 1977, Entex's total expenses for the Texas Coast Division were $6,931,000 for a total of 108,230 customers. When dividing the number of customers into the expense, Entex had an average expense of $5.34 a month to serve each customer. In response to another question from Council, Mr. DeSalme explained that Entex does have control over salaries but that there are certain items that this cost of service adjustment covers that Entex has no control over. However, without any salary increase for employees, there is no possible way that any company can expect an employee to continue working for that company. Mayor Hutto recognized Doug Tromblee of 3407 Surrey Lane, who requested to appear to question Entex concerning stock dividends paid by that company and earnings of Entex during the year 1977 compared to prior years. Mr. Tromblee pointed out that there are Entex operations in Louisiana and Mississippi, as well as Texas. Afterwhich, he questioned if Louisiana and Mississippi had granted the increase on a city by city basis, the same as is being asked for the State of Texas. Mr. Tromblee commented that the point he is trying to make is that in June of 1973, the net profit for Entex was $1.15, 1974 - $1.30, 1975 - $1.55, 1976 - $2.10, and in 1977, the net profit was $3.61. For a period of 12 months beginning in 1977 to 1978, the net profit was $3.82. This is a 30% increase in earnings. Of this 30po increase in earnings, what amount has been invested into stocks for these 3 states nationally? Mr. Tromblee explained that the reason he would like to know this is perhaps that members of Council and other people of the City of Baytown do not know that there is 85% dividend granted to corporations and individuals on Entex stock. Air. Tromblee commented that his point is that citizens are paying double tax since many corporations including Entex possibly buy out their own stock to receive 8570 dividend exclusion which would be tax free. Individual citizens would be paying more tax money on these exclusions, plus paying the rate increase. This is on common and preferred stock. These facts are well known to most investment houses. Mr. Tromblee commented that had intended to ask was answered Mr. Tromblee asked if the return included in the dividends and if it is included? The reason this 50% of the company's earnings go into dividends. In other words, the next question that he by Mr. DeSalme previously. on capital investment was it is included, how much of question was asked is that into dividends or can go if Entex is asking $.40 80427 -6 Minutes of the Regular Meeting April 27, 1978 increase per customer per month, is $.20 of this $.40 going into dividends. Is this the reason the customers are being asked to pay the rate increase? How much of this is capital investment? Mr. Tromblee commented that Mr. DeSalme explained that the rate increase is due to operating expenses, which the largest portion of this would be for wages and salaries, but made no mention at all as to whether this included all operating expenses. Mr. Tromblee also stated Entex is receiving interest on capital improvements, so then why should the users have to pay this additional cost because this money will go into stocks. Mr. Tromblee also inquired about the 10% late charge which is charged to all customers who do not pay their bill before the due date. Mr. Tromblee felt that it is not fair for the customers to have to pay the late charge if the mail is slow getting to their residence. The law states that a person should not have to pay more than a 10% fine or late charge for a past -due bill. Mayor Hutto recognized Mr. Lee R. Patterson of 909 Bob Smith Road. Mr. Patterson commented that he had received his gas bill yesterday and the initial cost of the bill was $15.54, but the total bill was $55.73 after cost of service and other costs were added. Mr. Patterson commented that he did not feel that Entex has installed that many pipelines to have a bill with such a large amount for service adjustment. Mayor Hutto recognized Bob Chase of 104 Graham. Mr. Chase felt that the gas company is asking for an increase in rates when the customers are receiving a decrease in service, and that advertising by the gas company is unnecessary because Entex is a legal monopoly. Mr. Chase urged City Council to reject any increase in rates for any utility company in the City of Baytown. Mayor Hutto recognized Lee Alexander of 704 East Hunnicutt, who stated that a 135,000 BTU heater is installed in his home. He commented that his home consists of 1600 square feet of space, is well insulated, and only his wife and himself are in residence. Mr. Alexander asked that the City Council consider very carefully when voting on a rate increase. Mr. Dick DeSalme commented that in regard to Mr. Tromblee's questions concerning earnings per share from 1971 to 1977, there are a number of circumstances that need to be considered. Mr. DeSalme explained that Entex does operate in Mississippi and Louisiana and there are a number of companies besides the Texas Coast Division. Mr. DeSalme commented that the earnings per share over a period of time have gone up, but when you talk about earning per share, you are talking about the total company and not just the Texas Coast Division. In 1976, Entex purchased the properties of Houston Natural Corporation, which represented a very good increase in earnings per share. Entex bought 360,000 customers from Houston Natural Gas Corporation. Mr. DeSalme said that he would be glad to offer his assistance to Mr. Tromblee if he has any specific questions regarding any type of earnings. In the State of Texas, by law Entex has the right to earn a fair rate of return. In regard to Mr. Patterson's question, Mr. DeSalme explained that there is a discount of the bills for prompt payment. These discounts are revenues received when customers do not pay their bills on time and go toward establishing what Entex's fair rate of return is. Mr. DeSalme pointed out that if a bill is delayed in getting to a customer's home, the customer may call the local office and the discount will be allowed. 80427 -7 Minutes of the Regular Meeting April 27, 1978 In explanation to Mr. Alexander's comments, Mr. DeSalme commented that he realized gas bills have gone up in the past few years, but since 1971 Entex Company's costs have increased 50010, and the company has no control over this. Mr. DeSalme commented that in regard to citizens on a fixed income, arrangements can be made with Entex to pay gas bills as it suits the customer. The rate of return for 1977 in the City of Baytown was 4.270. Mr. DeSalme explained that this request for increase is being filed on a division -wide level which is the most advantageous plan for the citizens, because if not, Entex will have to pull the City of Baytown out of the Texas Coast Division and file for an individual rate increase. Mr. DeSalme asked that Council take all the facts into consideration, and to consider granting Entex the $.40 rate increase for service adjustment. Councilwoman Wilbanks inquired as to what would the difference be in the procedures if an individual rate increase were filed. Mr. DeSalme explained that the Entex Company would pull Baytown from the Texas Coast Division and make an individual study and expect Council to go along with whatever the figures show after the individual study is made. Mr. DeSalme explained the rate of return for the City of Baytown is very low. It is a rapidly growing area and the plant investment grows every year. The City of Baytown has the lowest rates of any other city in the Texas Coast Division. Entex is not fortunate enough to have the industrial revenues in the City of Baytown, but there are industrial revenues in the Texas Coast Division. As a matter of fact, approximately 2076 of Entex's revenues come from industrial revenues. From the City of Baytown, Entex receives only 2% industrial revenue. *Councilman Kimmons no longer in attendance. Councilwoman Wilbanks inquired if Entex has ever worked with a city on an individual basis. Air. DeSalme explained that he has had experience with one city where an individual study was made. The city refused the increase indicated by the study, an outside rate attorney was retained and after further study, Entex received the increase that they had asked for plus an additional 25%. Councilwoman Wilbanks commented that the reason she asked this question was because this emphasizes a very frustrating position in which the Council members are placed - -that is, if Council does not give Entex the rate increase, the Council is taking the risk that the outcome could be that the citizens of Baytown will have to pay more. Councilman Kloesel commented that he is opposed to this rate increase, and he felt the problem is in the organization of the corporation. Mayor Hutto commented that it would appear that the best way the citizens can get representation is for this Council to reject this rate increase. However, to do so may mean that the City of Baytown will end up at a general rate hearing plus the fact that the City will have to hire rate experts and attorneys. The last time that happened in the City of Baytown, the City Council spent a great deal of money and still got the rate increase. This would not be looking out for the public's best interest. Mayor Hutto declared the public hearing closed. 80427 -8 Minutes of the Regular Meeting April 27, 1978 Ordinance - Determining and Fixing the Maximum Schedules of Rates to be Charged by Entex, Inc. The proposed ordinance amends the rate increase for natural gas service in Baytown by increasing the cost of the first 400 cubic feet of gas from $4.00 to $4.40. The Administration recommended approval of the ordinance. Councilman Lander moved for adoption of the ordinance; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Lander and Caffey Mayor Hutto Nays: Council members Kloesel and Wilbanks ORDINANCE NO. 2452 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN, TEXAS; DETERMINING AND FIXING THE SCHEDULES OF RATES TO BE CHARGED BY ENTEX, INC. IN THE CITY OF BAYTOWN, TEXAS, FOR NATURAL GAS AND NATURAL GAS SERVICE FURNISHED BY IT TO RESIDENTIAL AND COMMERCIAL CONSUMERS; FIXING THE EFFECTIVE DATES OF GAS RATES PRESCRIBED IN THIS ORDINANCE; MAKING MISCELLANEOUS PROVISIONS AND REPEALING ALL ORDINANCES IN CONFLICT. Consider Statement of Houston Lighting and Power Company Cost of Service and Fuel Cost Adjustment for May Council has received a copy of a statement of Houston Lighting and Power Company Cost of Service and Fuel Cost Adjustment for May, 1978, from Mr. Quin McWhirter, District Manager of Houston Lighting and Power Company. In his letter, Mr. McWhirter indicated that the consumer's cost for 1000 KWH of electricity will increase from April to May a total of $3.05. However, of that increase, $2.40 is due to resumption of the normal summer rate schedule, $.47 increase because of fuel cost, $.03 increase in cost of service, and $.15 increase in sales tax. Councilman Kloesel commented that there is a constant increase over the months and years, and he is aware that inflation is a factor but believes that many times this becomes an excuse. Councilman Kloesel moved that Council disallow this increase by Houston Lighting and Power. In response to a question from Council, Scott Bounds, City Attorney, stated that in 1975 City Council adopted a set of rates and established a fuel cost adjustment clause. In May of 1976, there was a cost of service provision added and since that time, Houston Lighting and Power Company had the automatic cost of service adjustments. Houston Lighting and Power is presenting their cost of service and fuel cost adjustment for May, and if Council felt those to be inappro- priate, the City of Baytown can start the rate making process on H L & P's entire rate schedule. Councilman Kloesel's motion died for lack of a second. Councilman Kloesel felt that the Houston Lighting and Power Company should prove that the increase is justified. Each month there is a slight increase and he felt that this cost of service and cost of fuel is a very dangerous situation for the consumer. Mayor Hutto recognized Jim Parsons of Houston Lighting and Power, who stated that the fuel cost figures and the 80427 -9 Minutes of the Regular Meeting April 27, 1978 cost of service adjustment figures are based on facts and figures that are presented to Council for consideration. Mr. Parsons explained that the cost of service fluctuates throughout the months based again on certain factors such as revenue and cost of fuel. The adjustments reflect not only increases but also decreases in Houston Lighting and Power revenues and expenses. Mayor Hutto commented that when this statement is submitted to Council for review, it appears to be a mere formality since as it now stands, Council has no recourse. Council took no action. Consider Approval of Plans and Authorization to Advertise for Bids for Phase I of the 1975 Signal Improvement Program Traffic Engineers, Inc. has prepared the plans and speci- fications for Phase I of the 1975 Signal Improvement Program. The 1975 bond program included $650,000 for improvements to the City of Baytown signals system. In addition to this amount, the Administration has been notified that Baytown will receive a federal grant of $116,200 which will increase the funds available for this project to approximately $760,000. The estimated cost of the projects that will be presented tonight will be $642,000. These plans have been reviewed by the Council's Traffic Committee and the City Staff. The Administration recommended approval of the plans and speci- fications and request authorization to advertise for bids for Phase I of the 1975 Signal Improvement Program. Mr. Almquist of Traffic Engineers, Inc. was present to review the plans and specifications with Council. Essentially, there are two separate sets of plans. One for which federal funds will be expended, and the other for which city funds will be expended. There is a federal program where if a city has a substantial number of accidents and that city can justify an improvement that will reduce the accident rate, then on a state -wide basis the city must compete with other cities. If that city's improvement is the most cost benefit effective, then this city would receive funding under this federal program to improve the traffic signals system. Baytown has applied for this type of funding and has been notified that funds would be allocated on seven intersections under this federal program. There were seven intersections which rated very high in cost benefit to modernize the signals on a state- wide basis. The total estimate of cost for improving these locations was $166,000. The State will pay 70% and the City of Baytown will pay 307o of the cost of modernizing the signals. The plans and specifications were separated into separate contracts because one contract will be let by the State, and in order to obtain the funds, the project was split. One of the main improvements that would be made is to interconnect major arterials so that the lights can be progressed or turn green as you approach the light. This is being planned along North Main Street, Highway 146, Decker Drive and Pruett Street. These intersections were separated and can be tied into the other project. There is no real problem foreseen except obtaining funds for the two projects. The first plans and specifications presented to Council is the set that will be federally funded. It involves six intersections along Alain Street. The plans are to install mast armed mounted signals. The mast armed mounted signal 80427 -10 Minutes of the Regular Meeting April 27, 1978 is a pole that comes out into the roadway. There will be two indications for each approach so that if one light burns out, the other run will burn. Essentially, what is being planned is designing to meet State standards in modernizing signals so that they also meet the necessary safety standards. Mr. Almquist asked for approval of the plans so that the Administration can go out for bids on the system in the near future. Councilman Kloesel stated that he felt that Council would not have sufficient time to review the plans and specifications at this meeting, and he stated that he would like these plans to be made available to the public. Councilman Kloesel felt that the public might have interest in the signalization program. Therefore, he suggested that action be postponed until the next regular Council meeting. At this time, Mr. Almquist presented the other set of plans and specifications that will not receive federal funding. This set of plans involves 28 intersections. These intersections were in the bond issue and the two fit together to form a group coordinated signal system for the City. The plans are very similar and are based on the same standards for both areas. There are state requirements on when an intersection is to be signalized, and certain warrants must be met before a signal can be installed. Mr. Lanham explained that these are the plans and specifications that show the four systems that will be interconnected. The systems will be along Alexander Drive from Texas Avenue to Cedar Bayou Road, and along North Main Street from Texas Avenue to Massey Tompkins Road. Several signals are being added along Pruett from Texas Avenue to Park Street that are justified at the present time, and these will be interconnected so that a motorist can drive through the system without stopping. The other system will be located from Decker Drive and Garth Road onto Market Street and Lee Drive. The plans also include a system to be located at Airhart Drive and Market Street, and Market Street and West Main Street. The plan is to tie these systems together so that you may drive through without having to stop each time. Mr. Almquist also explained that after the intersection layout, there are sheets that contain timed- spaced diagrams, which give an idea as to how the system works. Mr. Almquist felt that the timed - spaced factor will greatly improve the traffic flow along all of these major arteries. The plans are also to use larger signal heads. The old standard was 8 -inch signals, and the present standard is 12 -inch signals. The 12 -inch signals are much more effective in preventing rear -end collisions and right angle collisions because they are much easier to see. It is still standard procedure to use a smaller signal head at minor intersections where the streets are more narrow. Mr. Almquist felt that with this new system, the City of Baytown will experience a substantial reduction in accidents along North Main and Highway 146. Councilwoman Wilbanks inquired if the lights along Decker from Garth to Bayway are on a timed lapse or a trigger, and would it be possible to add those signals into our progression timing. Bill Cornelius, Director of Planning and Traffic, explained that it would be possible to tie those signals into the City's timing but that the State is considering the possibility of putting these signals on a timed -lapse basis. Mr. Cornelius explained that Decker Drive is a limited access highway and their funding can be used only on limited access highways. 80427 -11 Minutes of the Regular Meeting April 27, 1978 Mr. Lanham explained that under this program, the City of Baytown will be signalizing several intersections that are not now signalized. These intersections will include Park and North Main, Baker and North Main, Bob Smith and West Defee, North Commerce and West Sterling, North Commerce and West Defee, and Airhart and Market Street. Councilwoman Wilbanks inquired about the light that was previously located at the Garth and Baker intersection and would like to know if the light will be replaced. Mr. Cornelius explained that this signal was included in the bond program to be modernized, and when the County determines where the new sections of Garth Road and Baker Road are to be located, then the City can install a signal at that intersection. At the present time the County is working on plans for the new section of Garth Road. ?fir. Lanham explained that the Administration needs authorization to advertise for bids for Phase I of the 1975 Signal Improvement Program. Councilman Kloesel felt this to be a large project that the new Council representatives might like to look at; therefore, Councilman Kloesel moved that Council delay action on this item and have it put on the agenda for the next regular Council meeting. Mayor Hutto explained that he has been advised by the Administration that it is necessary for Council to take action on this matter, and he would therefore entertain a motion for approval of the plans and specifications and authorization to advertise for bids. Councilman Kloesel moved that the motion be amended to state that the Administra- tion be authorized to advertise for bids after the next Council meeting. Councilman Kloesel withdrew his motion. Mr. Almquist commented that the Administration would like to advertise for bids about a week from Monday. In response to a question from Council, Mr. Cornelius explained that after bids are received, the Administration will be able to foresee if it will be more economical for the contractor or for the city to purchase the materials. Councilman Lander moved for approval of the plans and specifications and to authorize the Administration to advertise for bids for Phase I of the 1975 Signal Improvement Program; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Wilbanks and Caffey Mayor Hutto Nays: Councilman Kloesel Receive Annual Audit Report Ed Hullum of Gerace, Hullum and McQueen, Inc. was present to present the annual audit report. At the end of the last fiscal year, the General Fund has an unappropriated surplus of $591,000. In the Water Fund there was a surplus of $100,000. In the General Interest and Sinking Fund there was a surplus of $147,000 unappropriated in the Waterwork and Interest Sinking Fund. This surplus increase was due to a bond ordinance requirement. The only fund that operated at a deficit for the last fiscal year was the Water Fund, but ended the fiscal year with a surplus of $100,000. Mr. Gerace explained that he would be happy to answer any questions that the Council members may have, and would be willing to come back at another meeting after Council had time to review the report. Councilman Lander commented that City Council raised the water rates in the fall to cover the cost of the principal 80427 -12 Minutes of the Regular Meeting April 27, 1978 and interest payment for the BAWA bonds and increased costs in the Water and Sewer Departments. Air. Lanham commented that he felt it is important to emphasize the point that the surplus shown in Waterworks and Interest Sinking Fund is not money that can be used for operating expense. This is not a surplus in the same sense as the surplus in the General Fund. It is a required surplus. Councilman Kloesel moved to accept the Report of Examination of September 30, 1977; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caf f ey Mayor Hutto Nays: None Ordinance - First Reading on the Proposed Annexation of Ginger Creek Subdivision At the last Council meeting, a public hearing was held on the annexation of the Ginger Creek Subdivision located north of Quail Hollow Subdivision on Cedar Bayou - Lynchburg Road and there was no opposition to the annexation. The Administration recommended approval of the ordinance. Councilman Lander moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesek, Wilbanks and Caf f ey Mayor Hutto Nays: None ORDINANCE NO. 2453 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. Ordinance - Second and Final Reading of the Proposed Annexation of Whispering Pines, Section 4 Council has approved the annexation of Whispering Pines, Section 4 on the first reading. There has been no opposition to this annexation. The Administration recommended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2430 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. 80427 -13 Minutes of the Regular Meeting April 27, 1978 Ordinance - Reducing the Maximum Speed on Public Library Avenue The Council's Traffic Committee heard a request from the Board of the Sterling Municipal Library to consider reducing the maximum speed limit on Public Library Avenue between West Texas Avenue and West Sterling Street to 10 MPH. This is the street that runs through the Library parking lot. Traffic has increased on this street because a portion of West Sterling Street is closed and because of the installation of signals at Thomas Circle. The Council's Traffic Committee felt that for the safety of the library patrons this request be granted and the Administration concurred in this recommendation. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2454 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, DESIGNATING SPEED LIMIT ZONES BY ALTERING THE PRIMA FACIE SPEED LIMITS ESTABLISHED FOR VEHICLES UNDER THE PROVISIONS OF ARTICLE 6701d, VERNON'S TEXAS CIVIL STATUTES, UPON THE BASIS OF AN ENGINEERING AND TRAFFIC INVESTIGATION, WITHIN THE CORPORATE LIMITS OF THE CITY OF BAYTOWN, AS SET OUT IN THIS ORDINANCE; PRESCRIBING A MAXIMUM PENALTY OF TWO HUNDRED AND N01100 ($200.00) DOLLARS FOR VIOLATION THEREOF; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Ordinance - Authorizing the Removal of Certain Stop Signs This is also a recommendation of the Council's Traffic Committee and it would authorize the removal of stop signs at the following locations: McKinney Road at Cedar Bayou Road; Cedar Bayou Road at Pecan Street; James Bowie Drive at Cedar Bayou Road, and Cedar Bayou Road at Cedar Bayou Road. The Administration recommended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2455 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE REMOVAL OF STOP SIGNS AT CERTAIN INTERSECTIONS; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF Ordinance - Establishing Signalized Intersections This is a follow -up to the plans that were discussed earlier. The ordinance would approve a recommendation which would establish signalized intersections at the following locations: Park at North Main; Bob Smith at North Pain; North Pruett at West Defee; North Commerce at West Defee; Baker at North Main; North Pruett at West Sterling; North Commerce at West Sterling, and Airhart at Market. These intersections will all be signalized as part of the 1975 80427 -14 Minutes of the Regular Meeting April 27, 1978 Signal Improvement Program. This is also a recommendation of the Council's Traffic Committee; the Administration concurred with this recommendation. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2456 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE INSTALLATION OF TRAFFIC SIGNALS AT CERTAIN LOCATIONS; PRESCRIBING A MAXIMUM PENALTY OF TWO HUNDRED AND N01100 ($200.00) DOLLARS; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Ordinance - Approving a Lease Agreement Contract with Exxon for Radio Equipment Exxon has requested to enter into lease agreement with the City for the operation of a radar unit which will enable Exxon to control traffic speed in the refinery area. Under the terms of this agreement, Exxon would purchase and maintain the proposed radar unit, but would lease this unit to the City. The City in turn would secure the necessary license to operate this piece of equipment from the Federal Communications Commission. Exxon is not able to secure a Federal Communications Commission Permit to operate this equipment. This is a similar contract that the City has on the radios for the Baytown Ambulance Service that operates on the City of Baytown frequency. The Administration recommended approval of the ordinance. Councilman Kloesel inquired as to the reason that Exxon cannot obtain a FCC Permit. Scott Bounds, City Attorney, explained that any radio equipment that is licensed by the FCC has to be type accepted for a frequency range of 10,500 to 10,550 megahertz at 5 watts power. That particular frequency is the Police Department frequency for public service institutions. The City of Baytown is a public service institution that can be licensed under that provision and Exxon cannot. Councilwoman Wilbanks moved for adoption of the ordinance; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Lander, Wilbanks, and Caffey Mayor Hutto Nays: Councilman Kloesel ORDINANCE NO. 2457 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER AND THE CITY CLERK OF THE CITY OF BAYTOWN TO EXECUTE AND ATTEST TO A LEASE AGREEMENT WITH EXXON COMPANY, USA FOR RADIO EQUIPMENT AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Designating Cary's Bayou as a "No Wake Zone." At the last Council meeting, Councilwoman Wilbanks requested that the Administration prepare an ordinance designating Cary's Bayou as a "No Wake Zone." When this item was considered several months ago, there was some 80427 -15 Minutes of the Regular Meeting April 27, 1978 opposition to designating this particular body as a "No Wake Zone" but there is no longer any opposition being expressed. The Administration recommended approval of the ordinance. Councilman Kloesel inquired how this ordinance is enforced. Mr. Lanham explained that this is enforced on a complaint basis, and the City calls the Texas Department of Wildlife for their assistance. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caf f ey Mayor Hutto Nays: None ORDINANCE NO. 2458 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, DESIGNATING CARY'S BAYOU AS A NO WAKE ZONE; REPEALING ORDINANCES INCONSISTENT HEREWITH; PROVIDING FOR A PENALTY FOR THE VIOLATION THEREOF; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Ordinance- Awarding the Bid for the Purchase of Fiberglas Buoys Two bids were received for the purchase of fiberglas buoys to replace those missing from Crystal and Scott Bays. The bid tabulation follows: BLUE WATER MARINE QUAN. ITEM UNIT PRICE EXTENDED PRICE 15 Fiberglas Buoys $340.00 $5100.00 Installed AUTOMATIC POWER " $262.40 $3936.00 At the time the Administration advertised for bids, the buoys had not been recovered but the buoys have since been located. However, the weights, chains and counterweights for the missing buoys were not recovered. The Administration has checked with the supplier on what the cost would be to replace the weights, chains, and counterweights and put the buoys back in service. The estimated cost is approximately $3100.00. The low bid for replacement buoys was $3936.00, submitted by Automatic Power, Inc. Because of the amount of repair work needed, the Administration would have to advertise for bids for the purchase of materials to repair the buoys and then install them. The Administration recommended that Council award the contract for new buoys to the low bidder and then the City would have these additional buoys to use as replacements if necessary. Mr. Lanham commented that a few days ago, the Administration received a call from the Corps of Engineers indicating that the City of Baytown's permit provided for nineteen buoys, and if new buoys were placed with new weights, chains, and counterweights, the City would need to remove the old weights, chains, and etc. The Corps of Engineers also indicated that if the old weights and chains were not removed the City of Baytown would be liable in the event of damages. Mr. Lanham felt that there would be a great deal of delay if the Administration had to advertise for bids for the repair parts for the buoys. 80427 -16 Minutes of the Regular Meeting April 27, 1978 Councilman Lander moved for adoption of the ordinance; Councilwoman Caffey seconded the motion. Councilman Kloesel commented that he opposes the motion because he felt that City Council should take advantage of small savings. The vote follows: Ayes: Council members Lander, Wilbanks and Caffey Mayor Hutto Nays: Councilman Kloesel ORDINANCE NO. 2459 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS ACCEPTING THE BID OF AUTOMATIC POWER, INC. FOR THE PURCHASE AND INSTALLATION OF FIBERGLAS BUOYS ON A UNIT PRICE BASIS, WITH THE COMPENSATION TO BE PAID BASED UPON THE ACTUAL NUMBER SUPPLIED; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Awarding the Bid for the Purchase of Traffic Paint Three bids were received for the purchase of traffic paint. The bid tabulation follows: A one (1) year contract for the City's requirements for traffic paint GLIDDEN PAINT QUAN. DESCRIPTION UNIT PRICE EXTENDED PRICE Approx. white traffic paint $5.47 $2188.00 400 gal. Approx. yellow traffic paint $5.70 $5700.00 1000 gal. The Ennis Company failed to indicate the trade name of the paint in the bid form. The reason that the trade name was not indicated on the bid form was because the name of the paint is Ennis Paint. Their bid is considerably lower than the Cook Paint bid and the Glidden Paint bid. The Administration has checked to find that the State Highway Department has used Ennis Paint and has been satisfied with it. Mr. Lanham commented that he has asked that the City Attorney brief Council on this matter. Scott Bounds explained that in its discretion, City Council can award the bid to whoever it determines is the low bidder if the omission in the bid is merely technical. Mr. Bounds explained that it is apparent COOK PAINT QUAN. DESCRIPTION UNIT PRICE EXTENDED PRICE Approx. white traffic paint $5.40 $2160.00 400 gal. Approx. yellow traffic paint $6.89 $6890.00 1000 gal. ENNIS PAINT QUAN. DESCRIPTION UNIT PRICE EXTENDED PRICE Approx. white traffic paint $3.80 $1520.00 400 gal. Approx. yellow traffic paint $3.80 $3800.00 1000 gal. The Ennis Company failed to indicate the trade name of the paint in the bid form. The reason that the trade name was not indicated on the bid form was because the name of the paint is Ennis Paint. Their bid is considerably lower than the Cook Paint bid and the Glidden Paint bid. The Administration has checked to find that the State Highway Department has used Ennis Paint and has been satisfied with it. Mr. Lanham commented that he has asked that the City Attorney brief Council on this matter. Scott Bounds explained that in its discretion, City Council can award the bid to whoever it determines is the low bidder if the omission in the bid is merely technical. Mr. Bounds explained that it is apparent 80427 -17 Minutes of the Regular Meeting April 27, 1978 that the reason companies are asked to specify the brand name on the paint is so that the person taking the bids will know who the manufacturer of the paint is. Consistent with this policy, the City has in the past corrected technical errors in bids, such as mathematical errors and then accepted the bid as being in substantial compliance with the bid proposal. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2460 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE BID OF ENNIS PAINT MANUFACTURING INC. FOR THE PURCHASE OF ESTIMATED QUANTITIES OF TRAFFIC PAINT ON A UNIT PRICE BASIS, WITH THE COMPENSATION TO BE PAID TO BE BASED UPON THE ACTUAL QUANTITIES SUPPLIED AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Awarding the Bid for the Purchase of Asphalt Two bids were received for the purchase of hot mix cold lay asphalt. The bid tabulation follows: HOT MIX, INC. QUAN. DESCRIPTION UNIT PRICE EXTENDED PRICE 500 tons hot mix cold lay $15.25 $7625.00 asphalt RATCLIFF MATERIALS " 11 $15.25 $7625.00 Both companies submitted identical bids at the plant site. However, Hot Mix, Inc. is located just outside of the city limits and on the alternate bid which is delivered to the City of Baytown's storage area at the West Main Treatment Plant Hot Mix, Inc. was low. The Administration recommended approval of the ordinance awarding the bid to Hot Mix, Inc. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2461 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE BID OF HOT MIX, INC. FOR THE PURCHASE OF ESTI ?.SATED QUANTITIES OF HOT MIX COLD LAY ASPHALT ON A UNIT PRICE BASIS, WITH THE COMPENSATION TO BE PAID TO BE BASED UPON THE ACTUAL QUANTITIES SUPPLIED AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. 80427 -18 Minutes of the Regular Meeting April 27, 1978 Ordinance - Awarding the Bid for the Purchase of Concrete Pipe Two bids were received for the purchase of concrete pipe for drainage work. The bid tabulation follows: MONROE FERRELL CONC. QUAN. PIPE DESCRIPTION UNIT PRICE EXTENDED PRICE 1500 ft. 12 in. RCP $3.50 $5250.00 3800 ft. 15 in. RCP 3.97 15,086.00 1800 ft. 18 in. RCP 4.60 8280.00 1000 ft. 24 in. RCP NO BID NO BID 500 ft. 30 in. RCP If ft 100 ft. 36 in. RCP If it 10 @.....$42.02 $49.80 WHITE SUPPLY $44.72 QUAN. 8 ply PIPE DESCRIPTION UNIT PRICE EXTENDED PRICE 1500 ft. 12 in. RCP $3.43 $5145.00 3800 ft. 15 in. RCP 3.86 14,668.00 1800 ft. 18 in. RCP 4.41 7938.00 1000 ft. 24 in. RCP 6.62 6620.00 500 ft. 30 in. RCP 9.45 4725.00 100 ft. 36 in. RCP 13.61 1361.00 White Supply Company submitted the low bid on all items. The Administration recommended approval of the ordinance. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2462 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE BID OF WHITE SUPPLY COMPANY FOR THE PURCHASE OF CONCRETE PIPE AND AUTHORIZING THE PAYMENT BY THE CITY OF THE SUM OF FORTY THOUSAND FOUR HUNDRED FIFTY -SEVEN AND N01100 ($40,457.00) DOLLARS. Ordinance - Awarding the Bid for the Purchase of Tires Four bids were received for the purchase of miscellaneous tires for various City departments. The bid tabulation follows: hi GOODYEAR CITY TIRE B.F. GENERAL SEXON SERVICE GOODRICH TIRE SERV. L78 -15 LTD 50 @.....$37.72 $47.00 $48.80 $36.36 11 R22.5X steel radial 10 @.....$229.74 $239.00 $206.70 $209.81 1300 x 24 - 10 ply motorgrader 10 @.....$192.47 $189.25 $206.00 $266.21 111 -16 SL - 10 ply 10 @.....$42.02 $49.80 $75.90 $44.72 136 -28R4 - 8 ply 10 @.....NO BID $110.00 NO BID $123.48 hi 80427 -19 Minutes of the Regular Meeting April 27, 1978 GROSS TL: $12,700.20 $15,671.50 $11,174.00 $15,648.60 The bid of General Tire Service did not meet specifications because their tires did not have the required ply rating. The low bids meeting specifications are as follows: Goodyear on Items No. 1 and 4; City Tire Service on Items 3,5,6,7,8, and 9; B.F. Goodrich on Item No. 2. The Administration recommended approval of the ordinance. Councilman Lander moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2463 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE PURCHASE OF TIRES BY ACCEPTING THE BIDS OF GOODYEAR "SEXSON TIRE COMPANY" FOR ITEMS NOS. I AND IV; CITY TIRE SERVICE FOR ITEM NOS. III, V, VI, VII, VIII, AND IX; AND B.F. GOODRICH COMPANY FOR ITEM NO. II OF THE CITY OF BAYTOWN BID NO. 784 -55; AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN FOR EACH ITEM AS SET OUT BELOW. Mayor Hutto called a ten - minute recess. Ordinance - Awarding the Bid GOODYEAR CITY TIRE B.F. GENERAL - J.C. Hollaway SEXON SERVICE GOODRICH TIRE SERV. 14.9 -24R4 - 8 ply the pruchase of playground equipment to be utilized at 10 @.....$177.47 J.C. Hollaway $144.00 $179.80 $171.97 17.5L -24R4 - 8 ply E. MIRACLE PERSONAIRE KNORI 10 @.....$224.51 CO. EQUIP. $169.00 NO BID $197.31 16.9 -2484 - 8 ply 2 whirl 10 @.....$215.21 @ $162.10 $205.00 $194.60 16.9 -30R4 - 8 ply 10 @ ..... NO BID $269.00 NO BID $174.86 GROSS TL: $12,700.20 $15,671.50 $11,174.00 $15,648.60 The bid of General Tire Service did not meet specifications because their tires did not have the required ply rating. The low bids meeting specifications are as follows: Goodyear on Items No. 1 and 4; City Tire Service on Items 3,5,6,7,8, and 9; B.F. Goodrich on Item No. 2. The Administration recommended approval of the ordinance. Councilman Lander moved for adoption of the ordinance; Councilman Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2463 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE PURCHASE OF TIRES BY ACCEPTING THE BIDS OF GOODYEAR "SEXSON TIRE COMPANY" FOR ITEMS NOS. I AND IV; CITY TIRE SERVICE FOR ITEM NOS. III, V, VI, VII, VIII, AND IX; AND B.F. GOODRICH COMPANY FOR ITEM NO. II OF THE CITY OF BAYTOWN BID NO. 784 -55; AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN FOR EACH ITEM AS SET OUT BELOW. Mayor Hutto called a ten - minute recess. Ordinance - Awarding the Bid for the Purchase of Playground Equipment to be Utilized at W.L. Jenkins - J.C. Hollaway Park Five bids were received for the pruchase of playground equipment to be utilized at W.L. Jenkins - J.C. Hollaway Park. The bid tabulation follows: VAUGHAN & PAUL E. MIRACLE PERSONAIRE KNORI ASSOC. ALLEN CO. EQUIP. PARK PRO. ASSOC. 2 whirl @ $453.00 NO BID $511.00 $499.00 NO BID 4 Bsktbl bkbrd, goals, supports @ $261.00 $258.00 $278.00 $275.00 $275.00 2 tot swing @ $380.00 NO BID $425.00 $407.00 NO BID 6 saddlemate units @ $103.00 122.00 $123.00 $ 99.00 $110.00 2 buck -a -bout @ NO BID NO BID $682.00 $754.00 NO BID 80427 -20 Minutes of the Regular Meeting April 27, 1978 1 swing unit @ $466.00 $449.00 1 metal park shelter @ $1508.00 NO BID 12 alumninum park tables @ $184.00 $222.00 12 park stove @ $58.00 $58.25 $579.00 $499.00 NO BID $1440.00 $1425.00 NO BID $188.00 $188.00 $185.00 $60.00 $65.00 $59.00 4 five -row bleachers @ $431.00 NO BID $531.00 $355.00 $579.00 The John Dollinger, Jr. Company made only one bid as follows: 4 five -row bleachers @ $318.25. The low bidders meeting specifications for each section are as follows: Personaire Playground Products on Item Nos. 1,4,5,6,10 and 12; Vaughan and Associates on Item Nos. 3,7, and 11; Paul E. Allen and Company on Item Nos. 2,8, and 9, and John Dollinger, Jr. on Item No. 13. This is to be paid for with 1975 Parks Bond Funds. The Administration recom- mended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2464 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE PURCHASE OF PLAYGROUND EQUIPMENT FOR JENKINS - HOLLAWAY PARK BY ACCEPTING THE BIDS OF PERSONAIRE PLAYGROUND PRODUCTS FOR ITEM NOS. I, IV, V, VI, X, AND XII; VAUGHAN AND ASSOCIATES FOR ITEM NOS. III, VII, AND XI; PAUL E. ALLEN COMPANY, INC. FOR ITEM NOS. II, VIII, AND IX, AND JOHN DOLLINGER,,JR. INC. FOR ITEM NO. XIII OF THE CITY OF BAYTOWN BID NO. 784 -61; AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN FOR EACH GROUP AS SET OUT BELOW. Fk VAUGHAN & PAUL E. MIRACLE PERSONAIRE KNORI ASSOC. ALLEN CO. EQUIP. PARK PRO. ASSOC. 12 permanent aluminum park benches @ $82.00 $84.00 $118.00 $ 79.00 $90.00 1 arch swing @ $860.00 $916.00 $871.00 $878.00 NO BID 2 climber and slide combination @ $811.00 $798.00 $876.00 $809.00 NO BID 1 swing unit @ $466.00 $449.00 1 metal park shelter @ $1508.00 NO BID 12 alumninum park tables @ $184.00 $222.00 12 park stove @ $58.00 $58.25 $579.00 $499.00 NO BID $1440.00 $1425.00 NO BID $188.00 $188.00 $185.00 $60.00 $65.00 $59.00 4 five -row bleachers @ $431.00 NO BID $531.00 $355.00 $579.00 The John Dollinger, Jr. Company made only one bid as follows: 4 five -row bleachers @ $318.25. The low bidders meeting specifications for each section are as follows: Personaire Playground Products on Item Nos. 1,4,5,6,10 and 12; Vaughan and Associates on Item Nos. 3,7, and 11; Paul E. Allen and Company on Item Nos. 2,8, and 9, and John Dollinger, Jr. on Item No. 13. This is to be paid for with 1975 Parks Bond Funds. The Administration recom- mended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None ORDINANCE NO. 2464 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE PURCHASE OF PLAYGROUND EQUIPMENT FOR JENKINS - HOLLAWAY PARK BY ACCEPTING THE BIDS OF PERSONAIRE PLAYGROUND PRODUCTS FOR ITEM NOS. I, IV, V, VI, X, AND XII; VAUGHAN AND ASSOCIATES FOR ITEM NOS. III, VII, AND XI; PAUL E. ALLEN COMPANY, INC. FOR ITEM NOS. II, VIII, AND IX, AND JOHN DOLLINGER,,JR. INC. FOR ITEM NO. XIII OF THE CITY OF BAYTOWN BID NO. 784 -61; AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN FOR EACH GROUP AS SET OUT BELOW. Fk 80427 -21 Minutes of the Regular Meeting April 27, 1978 Ordinance - Authorizing the Aministration to Enter into an Agreement with the Texas Department of Community Affairs for operation of the Youth Conservation Corps Program For the past two years, the City has entered into an agreement with the Texas Department of Community Affairs for the operation of the Youth Conservation Corps Program during the summer months. This year, the City proposes to hire 27 youths and 4 college age supervisors to continue the Youth Conservation Corps Program. The type of work that will be done is light construction in playground and picnic areas, horticultural work, and other enviromentally related work. The program will last for 8 weeks beginning the first week of June. The grant amount is $22,525.00. The City's share will be $5,850.00. These funds are provided through a joint program sponsored by the United States Department of Interior and the United States Department of Agriculture. The Administration recommended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Councilwoman Wilbanks seconded the motion. Councilman Lander inquired what the hourly rate that an employee under this program will be paid. Bobby Rountree, Director of Parks and Recreation, explained that field employees will be paid $2.65 and supervisors will receive $4.00 per hour. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caf fey Mayor Hutto Nays: None ORDINANCE NO. 2465 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER AND CITY CLERK OF THE CITY OF BAYTOWN TO EXECUTE AND ATTEST TO A CONTRACT WITH THE TEXAS DEPARTMENT OF COMMUNITY AFFAIRS WITH REGARD TO A YOUTH CONSERVATION CORPS PROGRAM AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Awarding the Contract to Provide Group Insurance for City Employees On April 21, 1978, three bids were received for group medical and life insurance for City employees. The bidders included the current carrier, Massachusetts Mutual, represented locally by Frank Robinson, Mutual of New York represented locally by Bailey Anderson, and San Jac International represented locally by Tom Gentry. The bid tabulation follows: Bid Tabulation on next page. 80427 -22 Minutes of the Regular Meeting April 27, 1978 Pregnancy Complications Employee Included 1.31 NO BID Emp. /Child in 1.31 " Emp. /Spouse base 9.34 " Emp. /Family bid 9.35 " Major Medical Deductible Employee MASS -3.67 NO BID Emp. /Child SAN JAC Emp. /Spouse -8.92 MUTUAL MONY -13.95 INTERNATIONAL Life per 1000 Employee A. B. C. D. Basic Policy .10 .055 .10 .10 .10 .10 Employee $42.61 36.65 46.21 38.76 35.94 34.91 Emp. /Child 70.52 60.46 76.21 63.93 59.28 57.16 Emp. /Spouse 107.94 92.86 117.05 98.00 91.04 87.79 Emp. /Family 135.60 116.66 147.07 127.35 114.37 110.28 Hospital Charges Employee 4.91 .79 NO BID Emp. /Child 9.82 1.30 " Emp. /Spouse 14.71 1.98 " Emp. /Family 19.62 2.49 Pregnancy Complications Employee Included 1.31 NO BID Emp. /Child in 1.31 " Emp. /Spouse base 9.34 " Emp. /Family bid 9.35 " Major Medical Deductible Employee -5.03 -3.67 NO BID Emp. /Child -10.06 -6.05 " Emp. /Spouse -8.92 -9.29 if Emp. /Family -13.95 -11.68 it Life per 1000 Employee .60 .455* .60 .60 .60 .60 AD & D per 1000 Employee .10 .055 .10 .10 .10 .10 *this is an estimated composite bid for optional life insurance. Mr. Lanham explained that these bids have been analyzed very carefully and asked that Dan Savage, Assistant City Manager, present the Administration's recommendation to Council. Air. Savage explained that this year bidders were invited to bid on the City's present policy with several options: (1) average semi - private room instead of $35.00 per day; (2) pregnancy complications, and (3) a $200.00 deductible instead of a $100.00 deductible. All three bidders submitted bids which met the specifications regarding the schedule of benefits and the policy provisions. However, the bid of San Jac International is based on a self- funding proposal and the rates quoted are potential costs with a maximum stop loss. Because the cost of any self- funding proposal is tied to actual as opposed to predicted experience, this cost can vary widely depending on group experience. In recent years the City's group experience has been relatively bad. The renewal notice which Massachusetts Mutual submitted to the City showed that group medical insurance premiums for the year ending January 31, 1978, totalled $217,087.60, while group claims paid during this same period amount to $259,943.13. Although the City's experience during this period was bad, there is no way of knowing for certain whether this experience trend will continue or change for the better. The proposal which San Jac International submitted sets the aggregate stop loss for the City's group medical at $69.23 per employee per month. Annually this represents a potential aggregate liability of $386,303.40 for group 80427 -23 Minutes of the Regular Meeting April 27, 1978 medical claims. This represents claims of 125% of expected experience. Aggregate claims above this figure would be reinsured. Administrative charges and reinsurance costs amounting to $93,855.60 would have to be added to the potential claims liability. The total potential cost would be $480,159.00. It is highly unlikely that the City would experience expenses approaching this figure. Contribution rate D which is the most favorable situation presented in the San Jac proposal produces an annual liability of $313,921.92 for group medical coverage. This rate assumes a favorable situation of claims occuring at 90% of the projected rate, plus the use of cash flow and reserve accumulation advantages which are potentially available with self - funding. It is possible that the City could have a claims experience even below the 90% projected rate. The group medical cost at 100% of projected experience is $402,876.00. The explanation presented above shows that the range of potential costs under the San Jac proposal is very great. Group medical costs could be below $313,921.92 and range up to a highly unlikely maximum of $480,159.00. The advantage of a self- funding proposal is that contributions paid in excess of claims and expenses remain in the City's loss fund. The disadvantage is that the City is liable for all claims up to the aggregate stop loss. In simple terms, the self- funding approach exposes the City to a greater risk with potential rewards for good experience and potential liabilities for bad experience. Because the self- funding proposal does not present a firm cost figure, it is difficult to compare with the other bids. No true comparison can be made as to which bid is the low bid meeting specifications. For this reason, Mr. Savage does not think it is fair to consider the self - funding proposal. Because self- funding represents a different risk philosophy, he thinks the question that needs to be answered is whether or not the City wants to adopt a more liberal risk strategy in regard to group medical insurance. If the answer is yes, then Mr. Savage recommends that all bids be rejected and that the City seek new bids based on the self - funding concept. If the City wishes to continue its present risk stategy toward group medical insurance, then the choice is between Massachusetts Mutual and Mutual of New York (MONY). The bid of MONY is the lower bid, even if the various options are considered. However, it is worth noting that many carriers refuse to bid on the City's group insurance because the City has changed carriers so frequently. The effect of accepting the MONY bid might be to reduce or eliminate the possibility of getting other bids in the future. Mr. Savage explained that last year, the City of Baytown's medical claims were approximately $130,000.00, the dependents claims were approximately $129,000.00. The City paid approximately $117,000.00 toward employee premiums, and the employees paid approximately $90,000.00 toward dependent premiums. The present policy with Massachusetts Mutual expires effective May 1, 1978. The Administration has some need for the City Council to take action. Mr. Savage explained that he had spoken with Mr. Dick McKay of Massachusetts Alutual who felt that if City Council did not take any action on this item, his company would probably be able to extend the policy at the proposed rates. At this point, Mr. Savage introduced Frank Robinson, the present agent for the City of Baytown and local agent 80427 -24 Minutes of the Regular Meeting April 27, 1978 for the Massachusetts Mutual Company. Mr. Robinson extended his appreciation for being associated with the City of Baytown. Mr. Robinson explained that he submitted the specifications to several different companies, and each company felt the City of Baytown to be a poor risk due to the past practice of receiving bids on insurance each year. Last year Massachusetts Mutual spent $1.10 out of every dollar contributed into the program. Mr. Robinson felt that Massachusetts Mutual has done an outstanding job, and he said that personally he would like to see Massachusetts Mutual retain the business. Mr. Robinson suggested that City Council consider resubmitting bids on a comprehensive major medical program. This would restrain people from flaunting insurance. He stated that insurance is designed to prevent problems on a catastrophe basis or a crisis basis. Mr. Robinson explained that if it is possible for the City of Baytown to carry Massachusetts Mutual Company's policy for one more year, then the city of Baytown will be in a better position when going out for bids in the future. Councilwoman Wilbanks inquired if the bids were taken on the same standards that were used last year. Mr. Savage explained that when preparing the specifications, last years specifications were used as a guideline but several options were added as were mentioned earlier. Mr. Savage explained that in discussion with other agents, a number of them suggested that if the City would add specifications based on a comprehensive policy, they would be more interested in bidding. Mr. Lanham explained that traditionally when the Adminis- tration had made major changes in the specifications for hospitalization insurance, the City has had an employees committee made up of people representing the various departments to meet with representatives of various companies in working up specifications. Mr. Lanham commented that the Administration did not have time to appoint a committee. If Council elects to have an employees committee appointed, then the Council and Administration need to make arrangements to continue our coverage with Massachusetts Mutual for a few months. Mr. Robinson explained that Massachusetts Mutual Company has indicated that they will extend their policy to accomodate the City, but at the renewal rate. Mr. Robinson commented that he would be cooperative in helping the Administration and Council to explain the specifications to the employees and their families. Mayor Hutto recognized Bailey Anderson, local representative for MONY, who explained that the Insurance Administrative Group is a third party plans administrator and is located in Baytown, Texas. At the present time, this agency handles approximately 10,000 people who reside in the Baytown area. The average claim turn around is usually between three and five days. The plan that is being recommended by MONY has had some changes that will help hold down expenses. Councilman Lander inquired as to what a comprehensive policy plan means? Mr. Anderson explained that this is a policy that is designed similar to a base plan where front end benefits are guaranteed and then go into a major medical plan. Mr. Anderson pointed out that one of the cost savings in a comprehensive policy is that it is easier to administer. Mr. Savage pointed out that another main factor in a plan of this type would be that an employee pays 200 of the cost and the policy pays 80% of the cost. 80427 -25 Minutes of the Regular Meeting April 27, 1978 Mayor Hutto commented that he is concerned about the City of Baytown receiving a reputation for shopping around for insurance on a year -to -year basis. Mr. Savage explained that in regard to shopping around for insurance, the reason that the Administration went out for bids is that the City of Baytown got a sizeable renewal notice. By the Administration advertising for bids, this showed the employees that the Administration is trying to find the best bargain for City employees. Councilman Lander commented that he would like to see some input from employees, and since the policy is lapsing on May 1, 1978, it is causing a complex problem. Councilman Lander also commented that he is reluctant because the employee pays half of the premium. The Administration recommended that the insurance bid be awarded to Mutual of New York (MONY). Councilman Kloesel moved for adoption of the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, and Wilbanks Mayor Hutto Nays: None Abstained: Councilwoman Caffey Councilwoman Caffey commented that she abstained due to the fact that she did not understand the information that was presented. ORDINANCE NO. 2466 AN ORDINANCE OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE BID OF MUTUAL OF NEW YORK FOR A GROUP INSURANCE POLICY PROVIDING FOR LIFE INSURANCE,MAJOR MEDICAL BENEFITS, AND BASIC MEDICAL BENEFITS FOR THE CITY OF BAYTOWN EMPLOYEES; AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST TO A CONTRACT WITH MUTUAL OF NEW YORK, AND DIRECTING PAYMENTS OF PREMIUMS PURSUANT TO THE TERMS OF SAID CONTRACT AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Resolution No. 618 - Directing the Foxed Beverage Permit Application of Chimes Square -The Fever Tree Located at 4119 Crosby -Cedar Bayou Road to the Proper County and State Officials At the last Council meeting, several citizens who live outside the city limits presented a petition to Council to oppose the mixed beverage permit application of Chimes Square -The Fever Tree which will be located at 4119 Crosby - Cedar Bayou Road outside the city limits. The resolution that has been prepared indicates that this location is outside the city limits and that the County Judge, the Sheriff, and the County Attorney are the appropriate local officials to recommend action concerning this request and points out that the place in which the applicant proposes to conduct this business warrant refusal of a permit based on the general welfare, health, peace, morals, and safety of the people due to public sense of decency. The resolution also states that the petition that was filed with the City be presented to the Texas Alcoholic Beverage Commission for consideration in the determination of the request of Chimes Square -The Fever Tree for a beverage permit. Mr. Lanham explained that since this establishment is outside the city limits, the Administration felt that the City Council has no authority in this area regarding this matter. 80427 -26 "linutes of the Regular Aieeting April 27, 1978 Councilman Kloesel moved for adoption of the resolution; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesek, Wilbanks and Caf f ey Mayor Hutto Nays: None RESOLUTION NO. 618 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, FORWARDING TO THE COUNTY JUDGE AND ALCOHOLIC BEVERAGE COMMISSION A PETITION OPPOSING A MIXED BEVERAGE LATE HOUR PERMIT. Resolution No. 619 - Authorizing Transfer of Funds from General Fund Contingency to 1975 Bond Program At the last Council meeting, Council approved final payment for the Bayway Drive arterial water main and reimbursement to Mr. F. A. Richardson for installing approximately 600 feet of water main on Rollingbrook Drive. The cost overrun on the Bayway Drive Project was $43,394.86. The reimbursement due to Mr. Richardson was $13,496.12. The proposed resolution authorizes transferring funds from the General Fund Contingency Account to the 1975 Bond Program Fund to cover the deficit anticipated by these expenditures. Councilman Kloesel moved for adoption of the ordinance; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, and Caf f ey Mayor Hutto Nays: None RESOLUTION NO. 619 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO TRANSFER FIFTY SIX THOUSAND EIGHT HUNDRED NINETY -ONE AND N01100 ($56,891.00) DOLLARS FROM GENERAL FUND ACCOUNT NO. 0101 -12 -0100, "CONTINGENCIES," TO 1975 BOND PROGRAM FUND ACCOUNT NO. 0101 -13 -0200. Resolution No. 620 - Amending the "City of Baytown Parks and Recreation Policy Manual" by the Amendment of the Schedule of Fees for Admission to Swimming Pools Council received a copy of a memorandum from Bobby Rountree, Director of Parks and Recreation, and a chart showing swimming pool admission fees in other Texas Cities. The recommendation of the Parks and Recreation Department and the Parks Board is that admission fees for all persons at the swimming pool be $.50 except for the wading pool. Presently, the charges are as follows: up to 12 years of age - 25¢; 13 to 17 years of age - 35¢, and 18 years and up - 500. The wading pool is free and would remain so. The Administration recommended approval of the resolution. Councilman Kloesel explained that he would oppose the increase in admission fees to the swimming pools. The low admission fees to the pools encourage youngsters to swim and gives them a good place to be. Councilman Lander concurred. The item died for lack of a motion. 80427 -27 Minutes of the Regular Meeting April 27, 1978 Consider the Removal of Planter Boxes on Texas Avenue Councilman Kloesel commented that he requested that this item be placed on the agenda. The he requested that there be no discussion of the item, and that the Administration place this item on the agenda for the next Council meeting. Councilman Kloesel asked to delay action on this item as he is planning to meet with some of the merchants who are located on Texas Avenue prior to the next Council meeting. Consider the Railroad Crossing Designs for Southern Pacific at North Main / Lobit Mr. Lanham asked that Bill Cornelius, Director of Planning and Traffic present this item. Council has received a copy of a letter from Mr. Omer F. Poorman, District Engineer for the State Department of Highways and Public Transportation regarding the railroad crossing protection at the intersection of North Main and Lobit. Mr. Cornelius explained that two diagrams showing alternative ways of signalizing this intersection are included. In his letter, Mr. Poorman states that the State Department of Highways and Public Transportation would be willing to install a single diagonal overhead span as shown on Diagram No. 1. Diagram No. 1 calls for 2 forty -foot wooden poles with the cable that would go across and two signal heads. When a train comes through, a signal will flash red for all directions of the intersection. Pair. Cornelius explained that the City of Baytown is trying to get rid of wooden poles and overhead cables. This design would require a 22 foot clearance over the intersection. This proposal is inconsistent with the City's current design policy. The design that the Administration is recommending is Diagram No. 2, which would consist of mass arms with the same type signal heads that will be placed at the traffic signal intersections. The Highway Department's estimated cost is under $10,000.00 on their project and the Administration estimated that it will be more to install the City's recommendation. The Administration would like approval to indicate that the City of Baytown prefers Design No. 2. Councilman Lander moved to give the Administration approval to indicate to the State Highway Department that the City of Baytown prefers Design No. 2; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel Wilbanks and Caf f ey Mayor Hutto Nays: None Consider Paving Rollingbrook Drive East of Garth Road Mayor Hutto commented that for sometime he has been trustee for this tract of land and for the discussion of this item, he would like to turn the chair over to Mayor Pro Tem Lander. *Mayor Hutto left the Council Chamber for the discussion of this item. Mr. Lanham explained that Councilman Cannon asked that this item be placed on the agenda for tonight's meeting. Mr. Lanham explained that in 1969 -1970, the Planning Department and the Planning Commission worked with the owners of land along what is now Rollingbrook Drive and worked out agreements with all of them whereby the owners paid the cost of paving 80427 -28 Minutes of the Regular Meeting April 27, 1978 the street. The owners were interested in developing their land. It was agreed that the City would accept dedication of the street if the owners paid the cost of paving. The deed that the City received from the trustee of this particular tract of land at that time, who was Ronnie Marshall, has the following stipulation: "The grantor, his successors and the assigns shall upon the development of his abutting property and the acquisition of a building permit, pay the direct contract cost of improving the hearin above described ease- ment as a street." Mr. Lanham explained that he would like authorization from Council to approach the owners to ask them if they would try to work out a way whereby they could go ahead and pave the street. Mr. Lanham said that he would indicate that this street is needed to carry the east and west traffic. Mr. Lanham explained that the north half is paved and this strip of land is the only portion that is not paved. Councilman Kloesel moved that the owners of this property be contacted by the Administration in an effort to speed up the pavement of this proposed project; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Kloesel, Wilbanks and Caffey Mayor Pro Tem Lander Nays: None *Mayor Hutto presiding. Consider Authorization to Advertise for Bids to Purchase Additional Disk Drive for Computer System Mr. Lanham asked Dan Savage to present this item to Council. Currently, the City has its data processing equipment on a five -year lease /purchase plan. Included in this purchase are two Model 275 disk drives. These drives provide the City with the capability of storing a tremendous amount of data. In 1976 when the City entered into its purchase agreement with Honeywell, the cost of one of these disk drives was $16,000.00. Under our purchase plan the monthly cost for one of these drives is $425.00, plus an additional $116.00 monthly for maintenance. Presently, the data processing staff consists of two City employees and a consultant. The total budget for the data processing operation amounts to approximately $75,000.00. At present the production responsibilities of the data processing staff include the semi - monthly payroll, twice monthly utility billing, weekly accounts payable check writing, weekly utility cash posting, monthly tax cash posting, monthly budget reporting, and annual tax billing. Each of these job streams requires backup, editing and updating runs. The addition of a third disk drive will enable the data processing staff to handle these production tasks in a more timely manner and will enable us to add more production tasks and do more program testing within the time alloted. The Administration would like permission to advertise for bids for a third disk drive. Mr. Savage felt that the Honeywell Company is probably the only company that could bid on a disk drive that is compatible with the City of Baytown's equipment. Their price on a disk drive is $10,400.00. The monthly payment would be $318.00 toward the purchase and $137.00 per month maintenance charge. The total annual payment for this disk drive would be $5460.00. Mr. Savage proposed that this disk drive be purchased on the three year lease /purchase plan. 80427 -29 Minutes of the Regular Meeting April 27, 1978 Councilman Lander moved that permission be given to the Adminstration to advertise for bids for the lease - purchase of a disk drive; Councilman Kloesel seconded the motion. The vote follows: Ayes: Councilmembers Lander, Kloesel, Wilbanks and Caf f ey Mayor Hutto Nays: None Hear a Report on Water Problems in Southwest Addition and Lee Heights Mr. Lanham explained that in regard to Lee Heights, during the time that the Market Street Bridge was under construction, a line that fed the Lee Heights area was taken out of service. This line was placed back in service about three weeks ago. Presently, this area has a three -way feed and should have no further problems. The City has had problems with the Southwest Addition for several years. Several years ago, an additional line was installed to provide a two -way feed; therefore, the engineers do not know why the residents in this area continue to have problems with their water. The Administration felt that the solution is to build an eight -inch line along Highway 146, extending from the Southwest Addition over to Lee Drive. The estimated cost for this project for materials only is $40,000.00; the contract would probably be twice that much. It would be necessary to obtain permission from the Highway Department to attach the pipe to the bridge. The Administration felt that this needs to be included in next year's budget. In the meantime, the Administration will be checking with the State Department of Highways and Public Transportation to obtain permission to attach the lines to the bridge. Consider Appointment to the Baytown Library Board This will be discussed in executive session. Committee Reports None. Unfinished Business None. Recess into Executive Session Mayor Hutto recessed the open meeting into executive session to discuss personnel and legal matters. When the open meeting reconvened, the following business was transacted: Consider Appointment to the Baytown Library Board Mr. Perry Smith has resigned as a member of the Sterling Municipal Library Board. Mr. Smith's term would have expired in March 1979. Mr. Lanham explained that he would like to appoint Mr. Lawrence Riley to the remainder of Mr. Smith's unexpired term which would expire in March 1979. Councilman Lander moved to appoint Mr. Lawrence Riley to the Sterling Municipal Library Board; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caf fey Mayor Hutto Nays: None 80427 -30 Minutes of the Regular Meeting April 27, 1978 Reference to the Citv Hanazer's Report Councilman Lander commented that he would be able to attend the hearing to be held on May 8, 1978, concerning the application for the disposal of sewage effluent. Mr. Lanham stated that the Administration will develop information for Councilman Lander's presentation. Adjourn With no further business to be transacted, Councilman Kloesel moved for adjournment; Councilman Lander seconded the motion. The vote for adjournment was unanimous. 0,-AQ m) pow ID Karen Petru, Deputy City Clerk Approved: Eileen P. Hall, City Clerk