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1978 07 27 CC Minutes80727 -1 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS July 27, 1978 The City Council of the City of Baytown, Texas, met in regular session Thursday, July 27, 1978, at 6:30 p.m. in the Council Chamber of the Baytown City Hall. The following mem- bers were in attendance: Jody Lander Ted Kloesel Mary E. Wilbanks Eileen Caffey *Allen Cannon Emmett O. Hutto Fritz Lanham Dan Savage Scott Bounds Eileen P. Hall Absent: Jimmy Johnson Councilman Councilman Councilwoman Councilwoman Councilman Mayor City Manager Assistant City Manager City Attorney City Clerk Councilman Mayor Hutto called the meeting to order and Reverend Frank Boutwell of St. Marks Methodist Church offered the invocation. Approve Minutes Councilwoman Wilbanks moved to approve the minutes of the regular meeting of July 13, 1978, and the special meeting of July 20, 1978, and ratification of actions taken concerning each of the matters listed on the agendas of said meetings; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks and Caffey Mayor Hutto Nays: None Receive Petitions Result of Employee Retirement System Election - At a prior Council meeting, City Council discussed the possibility of merging the Texas Municipal Retirement System with the Supplemental Retire- ment System. Council authorized the Administration to discuss the possible merger with the employees which was accomplished by holding approximately 15 meetings. A vote of the employees was taken by use of paper ballots. Of 450 employees, 358 voted with 313 employees voting yes and 45 employees voting no. In the budget that the Administration is preparing, funds are being included to implement this merger. Baytown Area Water Authority Bond Sale - Bids on the Baytown Area Water Authority Bond Sale will be coming in on August 10, 1978, at 5:00 p.m. The water plant bids will be coming in at 2:00 p.m. on August 16, 1978. The BAWA Board may accept the bids, study them, and make a recommendation at a later date. Budget and Revenue Sharing Hearing - The Administration indicated that the revenue sharing hearing will be held on August 10, 1978, and suggested that Council also hold the hearing on the annual budget at that time. It is not necessary for Council to complete the review of the budget before holding the public hearing. Council had no objection to holding a public hearing on both the budget and revenue sharing hearing at the next regular Council meeting to be held on August 10, 1978. 80727 -2 Minutes of the Regular Meeting - July 27, 1978 The Administration will deliver the recommended budget to City Council early next week and asked for suggestions as to when Council members would like to hold the budget workshops to review the budget. Mr. Lanham suggested that the workshops begin the week of August 7, 1978. Council concurred that the workshops be held August 7 - 9, 1978, at 5:00 p.m. each evening. 1978 Street Improvement Program - The 1978 Street Improvement Program project was awarded to Brown and Root, Inc. and representa- tives of that company have notified the Administration that they will begin work on the project on August 7, 1978. Brown and Root will start work on James Bowie Drive and Denby Street first because both of these streets are near schools and need to be completed, if possible prior to the beginning of school. Mockingbird /Kilgore Road Storm Sewer Project - All of the pipe is in the ground and was tested on Thursday. Inlets and junction boxes are approximately 90% complete on Kilgore Road and the con- tractor is just starting work on the inlets and junction boxes on Mockingbird Lane. The project is approximately 756 complete. Country Club Water Line Replacement - The Country Club Water Line Replacement Project is approximately 99% complete. The old system is out of service and all the homes are connected to the new line. The contractor does have cleanup work remaining, and several sidewalks and driveways to replace. Jenkins - Holloway Park - The work at the Jenkins - Holloway Park is approximately 33% complete. This is where the two baseball diamonds are being constructed along with playground and tennis courts. The tennis courts are poured and are being fenced. The limestone is being placed for the parking lots, the concession stand slab has been poured and the ball fields are nearing com- pletion. *Councilman Cannon present. Sports Complex Neighborhood Center - Work on this project has just begun with the initial stages of the slab construction underway. Industrial District Committee - At the last Council meeting, Councilwoman Wilbanks inquired about the makeup of the Industrial District Committee. The Industrial District Committee consists of three Council members: Council members Wilbanks, Cannon and Mayor Hutto. City Attorney's Opinion Regarding Taxation and Taxation Re- evaluation Program - A copy of the City Attorney's opinion regarding taxation and the re- evaluation program has been placed at the Council table. Scott Bounds, City Attorney, reviewed his opinion with Council. Mr. Bounds explained that the memo gives the constitutional and statutory base for the City's levy of taxes. The Constitution and the statutes require that taxation be equal and uniform in proportion to the value or the true and full value in money of the personal and real property tax. -It is recognized that it is very difficult to assess all property at its true and full market value. The courts have, therefore, approved a system like that that Baytown has in which all of the property in the city is reassessed on a cycle plan. The City may not, however, adopt any plan in which they treat real property different from personal property or residential property different from commercial property. All categories of property must be taxed at full market value, and property within each category must be taxed according to market value. There has been a resolution introduced at the special session of the Texas Legislature to limit yearly evaluation increases on real property. This proposal would limit increases 80727 -3 Minutes of the Regular Meeting - July 27, 1978 for single and multi - family dwellings to loo per year; all other realty would be limited to 20% per year. At the present time, however, no authority to limit valuation increased for property exists. To minimize the effect of valuation increased during an inflationary economy, City Council has only two administrative alternatives: (1) to re- evaluate the property more often and /or (2) reduce the tax rate. Councilman Cannon quizzed if this meant that City Council could not freeze evaluations at last year's tax level. The City ,+ of Baytown's Tax Department has re- evaluated property this year and set appraised value. Mr. Bounds pointed out that the action of the Tax Department has been reviewed by the Board of Equal- ization. Councilman Cannon then commented that these re -eval- uations were therefore set and that the City Council, as a whole, would be unable to stay with last year's value. Mr. Bounds stated that any action that City Council would take along those lines would make the entire tax roll suspect. Councilman Cannon commented that he felt the City of Baytown has made some people suffer by not having appraised value on a more current basis. Mr. Lanham commented that whatever action the state legis- lature takes, there would have to be a way to equalize everything before a ceiling could be placed on taxation. Otherwise, there will be built in inequities. Questions or Comments Regarding City Manager's Report Councilman Kloesel stated that he continues to receive con- versation about the delayed water billing. Some of the citizens do not object to a delay in water billing but others would like to have bills current so that they would know where they stand financially. Councilman Kloesel inquired why citizens were unable to pay on a current basis rather than the delayed action program. Dan Savage, Assistant City Manager, explained that in terms of billing process, the computer bills based on readings that are submitted to it and the bills that are currently being sent out are less than 2 months behind. Councilman Kloesel suggested that since there are only a small number of citizens who would like an up -to -date bill, the bill could be a hand -typed bill. Mr. Savage explained that the bill could be estimated without any problem. Mr. Savage commented that with the billing process that is being used at the present time, the Water Department is trying to catch up and making a very good effort to catch up. He also explained that the City is taking a look at the computer programs to determine what can be done toward the development of a final billing routine. Councilman Kloesel inquired what problem would be involved in presenting a total bill and indicating on this bill that the customer has the same number of days to pay this bill as is planned in the delayed billing process. Councilman Kloesel inquired as to the length of time to catch up under the delayed billing plan. Mr. Savage responded that at the current rate, water bills should be billed on a current basis at this time next year. 70727 -4 Minutes of the Regular Meeting - July 27, 1978 Councilman Kloesel inquired what is the procedure for final billing? Mr. Savage explained that when a final bill is requested, the billing process continues as normal until the Water Department catches up to this point. For example, if a citizen moved out of Baytown today, it would take 52 days before he received his final bill. Councilman Cannon inquired as to how much revenue is this to the City? J. B. LeFevre, Director of Finance, responded that one complete billing cycle would bring in revenue of approximately $300,000.00. Councilman Cannon inquired if the City can bill two months bill and commented that this might work in helping to bring the bills current. Mr. Savage explained that the City can bill any number of months but the City ordinance would have to be changed and also changes would have to be applied to the computer program because the automatic monthly sanitation rate would have to be increased. The problem here is that if the City mailed a bill for two months, the bill would be doubled or tripled compared to what the citizen usually receives; therefore, persons on fixed incomes would not be able to pay this bill. Councilman Cannon commented that he hoped that the new computer systems that the City of Baytown is developing will be more flexible. Mr. Savage explained that in terms of a final bill, the problem lies within the computer program. Councilman Kloesel suggested again that the total bill be mailed indicating on the bill 52 days to make payment, the portion that is due to be paid immediately and the portion that is due to be paid within 52 days. Council members felt that this method would be completely misunderstood and would ultimately cause more problems. Mr. Lanham commented that the City has set a goal of picking up 5 days a month so that at the end of this fiscal year, the City will be only 30 days behind. Public Hearing Held on Proposed Annexation of Certain Properties Belonging to Mobay Chemical Corporation (7:00 p.m.) At 7:00 p.m., Mayor Hutto opened the public hearing on the proposed annexation of certain properties belonging to Mobay Chemical Corporation. This annexation is in keeping with the City's industrial district policy of annexing 20% of the property belonging to an industry within an industrial district. This property is put on the tax roll and the remaining 807o is placed in an industrial district. There was no opposition expressed, therefore, Mayor Hutto declared the public hearing closed. Questions or Comments'Regarding the City Manager's Report (Cont.) Councilman Kloesel inquired if Mr. Savage felt that it would be practical to work up total billing for individual customers. Mr. Savage commented that on an individual basis, the Water Depart- ment could do this, but to attempt total billing for everyone would be very difficult. 80727 -5 Minutes of the Regular Meeting - July 27, 1978 Mayor Hutto commented that Council members have heard about the Metropolitan Transit Authority's upcoming election in August and Council members are familiar with Mr. Bill Black, who appeared at a work session and who also held a hearing in the Council Cham- ber. Mayor Hutto commented that he would like the City Council to address this election. Councilman Kloesel suggested that Council hold a special meeting to consider this matter since Council could only take action after giving proper notice. Councilwoman Wilbanks inquired if Council received a copy of the transportation plan; the members of Council who had not received a copy of the plan were given one. Mayor Hutto suggested that a Special Meeting be held on Monday, July 31, 1978, at 6:00 p.m. to consider the Metropolitan Transit Authority Election. Council concurred with this suggestion. Councilwoman Wilbanks pointed out that there are two comments in the transportation plan that are real adaptable to the City of Baytown. Under the Harris County Transit Plan, transit plans pro- posed by those cities having existing planning staff should be imple- mented as soon as practical and the service guidelines adopted realizing the lack of transit experience by the residents and the need for patience in the evaluation of such. That fits the situation of the Baytown because the City of Baytown does have a Planning Depart- ment and the City has sent in plans which have been accepted. Council- woman Wilbanks commented that she felt it will be incumbent on Baytown if the proposal is voted in to implement our plan as soon as prac- tical. The Metropolitan Transit Authority has adopted a goal to assure roughly a balance between the tax income from a particular city or area and the transit expenditures in that area; and the Board has passed a resolution supporting that position. Councilman Kloesel commented that if possible he would like the Administration to obtain a copy of the resolution that was passed so that Council could review it. Councilwoman Wilbanks commented that there would be a possibility, depending on the percentage of votes outside the Houston Metropolitan Area, that the makeup of the Board would change after the election by the appointment of two people from the incorporated cities and two people from Harris County. Ms. Leola Greer Appeared Ms. Leola Greer appeared regarding the difficulty involved in the approach to her property due to excessive speed on Garth Road and the eight foot driveway onto her property. Ms. Greer commented when Garth Road was rebuilt there was an eighty foot driveway to the prop- erty which was replaced with an eight foot driveway. Ms. Greer said that this eight foot driveway has almost caused many serious accidents because it is impossible to turn into the driveway from the outside lane without ruining a tire or hitting the curb. Ms. Greer requested that City Council authorize a larger driveway because it is impossible to turn onto the eight foot driveway without ruining a tire and without the threat of being hit from behind. Its. Greer commented that motorists do pay attention to arrows and suggested that white arrows be painted from north to south. Mayor Hutto inquired what the requirements are for a residential driveway? Jack Cramer, Chief Building Inspector, explained that the standard residential driveway is eighteen feet wide unless there is a wider garage. 80727 -6 Minutes of the Regular Meeting - July 27, 1978 ris. Greer commented that prior to the reconstruction of Garth, there was an eighty foot driveway to her property, and when the driveways were replaced all her neighbors received twelve foot driveways. In response to a question from Council, Mr. Lanham explained that according to the ordinance the maximum driveway for commercial property is 35 feet. Mayor Hutto suggested that this item be referred to the Admin- istration. Mr. Lanham explained that he will have someone from his staff to go out to check on the situation. Steve Donnelly Appeared Steve Donnelly, a resident of Baytown, requested to appear regarding the delayed water billing. Mr. Donnelly explained that he sold some property in Baytown and had some water billing problems. He suggested that one of the problems that Council might consider is the water customers that have water leaks who are unaware of a leak because of delayed billing. Mr. Donnelly explained that between March 31, 1978 and May 31, 1978, when he received a bill indicating that there was a problem with excessive water used on his property, approximately 90,000 gallons of water had gone through the meter. Mr. Donnelly pointed out that everyone is concerned about a water shortage and all this water was wasted while he knew nothing about the leak. Air. Donnelly said that he called the water department concerning the high bill, and the water department had the meter checked. Mr. Donnelly then received a form letter indicating that the meter was not faulty. The City of Baytown is only allowed to adjust for two months, but the bill was in the third month of high usage before he received the bill. Mr. Donnelly stated that he agrees with Councilman Kloesel that something needs to be done immediately to have the water bills made current. Councilman Cannon commented that the City of Baytown invites problems when getting behind on billing cycles. Councilman Kloesel asked that this item be placed on the agenda for the next Council meeting so that Council could attempt to resolve the problem. Texas 0. Dittman Appeared Texas 0. Dittman spoke in favor of stricter enforcement of the City of Baytown's litter regulations. Consider Statement of Houston Lighting and Power Company Cost of Service and Fuel Cost Adjustment for August The agenda packet included a letter from Quin McWhirter, District Manager of Houston Lighting and Power Company. In his letter, Mr. McWhirter submitted Houston Lighting and Power Company's proposed Fuel Cost and Cost of Service Adjustment factors for the month of August, 1978. The proposed increase raises the cost of 2000 kilowatt hours of electricity from $70.70 in July to $74.2 in August. The reason for this increase is an underrecovery of fuel cost for the month of May, 1978. Most of this increase is in the fuel cost adjustment. This is in accordance with the formula involving fuel cost adjustments and cost of service adjustments. 80727 -7 Minutes of the Regular Meeting - July 27, 1978 Councilman Cannon commented that the figures indicate a 48% increase in the fuel cost for Houston Lighting and Power Company for a one year period. Councilman Cannon inquired if their company has long -term contracts for fuel. In response, Mr. McWhirter com- mented that the increase is only a 20% increase over last year. Last year Houston Lighting and Power paid $1.10 per MBTU, and this year $1.33 MBTU. Most of the contracts that Houston Lighting and Power having for natural gas which are long -term contracts and have been in existence for sometime. The price that Houston Lighting and Power pays under these contracts are higher from one supplier than from others. Mr. McWhirter explained that some months his company uses more fuel from one supplier than others which causes a change in the unit price. Mr. McWhirter also commented that his company is now receiving contracts for coal and some months the company must burn oil because of restrictions on coal usage. The mix of different types of fuels affects the unit price. Mr. McWhirter explained that during the past few years, Houston Lighting and Power Company has been experiencing at least a 20% increase in the unit price for fuel and in some cases a 25% increase. This particular month's increase does not reflect any increase-in the unit price. The price that Houston Lighting and Power is paying for August does not reflect any increase in the unit price. The price that Houston Lighting and Power is paying for August is about the same price that they were paying in July. Air. McWhirter explained that his company has to estimate for the month ahead as to approximately how much electricity will be sold and what they will have to pay for fuel. The formula provides for an adjustment for either an under - recovery or an overrecovery. Mr. McWhirter further commented that if the usage for the month of May would have been what was estimated, there would not have been a need for such high fuel cost adjustment. Councilman Cannon commented that the Council members are receiving many complaints concerning their electrical bills and the possible rate increase. Councilman Cannon stated that he had received many comments regarding the advertisements of Houston Lighting and Power. Mr.. McWhirter explained that the approximate total cost of advertising amounts to a nickel or dime on each electrical bill. Several years ago, Houston Lighting and Power discontinued promotional advertising. All of the advertising that is done is designed to educate customers concerning matters and inform customers what Houston Lighting and Power is doing as far as nuclear power or other fields to explain how to conserve energy. The Light Company receives massive requests for this type information and if the customers are utilizing this information, Houston Lighting and Power is being saved hundreds of dollars. Councilman Kloesel commented that the Council is going to take action on the Houston Lighting and Power Company's rate increase request at a later time, but felt that it would be consistent to challenge this fuel cost adjustment. Councilman Kloesel stated that he was not convinced that the fuel cost adjustment should be this great. He felt that Council, as a whole, should challenge this request because he felt that it would reinforce Council's position in challenging the base rate increase. Therefore, Councilman Kloesel moved to disallow Houston Lighting and Power Company's request for an increase in the fuel cost and cost of service adjustment for August, 1978. The motion died for lack of second. Councilman Cannon inquired if Councilman Kloesel felt that the numbers were not there. Councilman Kloesel stated that he felt this to be a substantial increase which he would favor using any resources possible to verify. Councilman Kloesel further stated that Council has an obligation to the citizens of Baytown to challenge these figures. 80727 -8 Minutes of the Regular Meeting - July 27, 1978 Councilman Cannon stated that he felt the numbers would be subject to audit and that it might be a comfort to Council to expend $5,000.00 toward an audit to verify a month at random. Councilman Kloesel moved that the Administration contact a Certified Public Accountant Firm to assist the Council in auditing the Houston Lighting and Power Company's request for fuel cost adjustment for the month of August, 1978; Councilman Cannon seconded the motion. Councilman Cannon clarified that the motion included that a firm be contacted with this proposal and that the Administraton come back for approval from Council before contracting for the audit. Councilman Lander commented that he questioned the wisdom of making this one audit because Council is preparing to get into a full scale audit in the rate case hearing. Councilman Lander felt that the City Council should wait and look at the increases as a whole. Councilwoman Wilbanks commented that there is another item on the agenda concerning 120 days proposed delay on the rate increase. During that 120 day period, every month the City Council will be looking again at fuel cost adjust- ment and cost of service adjustment just as Council has done in the past. Councilman Kloesel commented that the proposed base rate increase is a different matter to deal with. The cost of service and the cost of fuel adjustment are covered by one type of thing and base rate increase is in a different type. They should be challenged separately. Mr. Bounds commented that if City Council enters a full scale general rate increase hearing, it will include an analysis of their cost of service and fuel cost adjustment clauses for the last test year. The rates that would be established as a result of the general rate increase will be starting point zero and if the City Council adopts a fuel cost adjustment and cost of service adjustment as a part of that general rate, then Houston Lighting and Power Company will start at point zero and the fuel cost adjustment will come to the City each month starting new. The new general rate increase will take everything into account as of the date that that goes into effect. The cost of service adjustment and the cost of fuel cost adjustment are simply a part of the general rate that City.Council has set. The rates that have been proposed take the fuel costs completely out of the base rate which is in line with the guidelines that the Public Utilities Commission set. The fuel cost adjustment will each month be a total fuel cost adjustment so that it will be seen in its entirety and separated from the rest of the bill. Councilwoman Wilbanks inquired what are the alternatives at the end of this 120 days? What figures are going to come to the Council as far as rate or fuel cost adjustment? Mr. Lanham explained that Mr. Bounds is going to a meeting on Friday where the plan of action by a number of cities is going to be discussed. One of the things that will be discussed is the possibility of employing an accounting firm to audit the books and present information to City Council to take action. Another possibility that will be discussed is the possibility of hiring an attorney to be employed by a number of cities to represent those cities in this matter. 80727 -9 Minutes of the Regular Meeting - July 27, 1978 Mr. Bounds commented that he hoped the end result of all actions taken will be that City Council will be able to adopt a set of rates which will allow Houston Lighting and Power a fair rate of return for providing utility service for our area. Councilwoman Wilbanks inquired if Council is talking about having an audit that would be beneficial to the City of Baytown for approximately four months or will Council find themselves in a situation that this audit would be valuable to the City for a period of a year. Councilman Cannon commented his second to the motion was not to do a detailed audit over the previous 12 -month period or from the last rate increase. Councilman Cannon stated that he would like to have an auditor to look at Houston Lighting and Power Company's book to see if Houston Lighting and Power checked their calculations, and verify cost of fuel. Council- man Cannon commented that he expects these numbers are accurate, but if the figures differ substantially, this would concern him. Councilman Lander commented that he would vote against the motion because he felt it would be a waste of money because the City will be entering into a full scale audit very soon. The vote follows: Ayes: Council members Kloesel, Wilbanks and Cannon Mayor Hutto Nays: Council members Lander and Caffey Ordinance - Suspending Houston Lighting and Power's Request for a General Rate Increase On July 14, 1978, Houston Lighting and Power Company submitted a request for a general rate increase. This was discussed at a previous Council meeting and the Administration indicated that they would present this to Council tonight. The proposed ordinance would suspend the proposed rates that Houston Lighting and Power has requested for a period of 120 days beginning August 21, 1978. This will give the Administration and City Council time to evaluate the request, to gather information that Council will need in order to make a decision on the request. The Administration recommended approval of the ordinance. Councilman Kloesel moved for adoption of the ordinance; Council- man Lander seconded the motion. Councilman Cannon inquired what would transpire if Council has not agreed on a solution at the end of the 120 day period, will the requested rates go into effect. Mr. Bounds explained that if the City of Baytown has not agreed at the end of the 120 day period, City Council has the authority to extend the suspension for an additional 30 days and at that time, if City Council has not taken any action, Houston Lighting and Power's proposed rates will go into effect as proposed. Councilwoman Caffey inquired about the 185 days that was quoted at the last meeting. Mr. McWhirter explained that there is an addi- tional 35 days that the rates could be suspended prior to August 21, 1978. In response to a question from Council, Mr. Bounds explained that the Public Utilities Commission is, with relation to rural rates, operating on the same timetable as the cities. 80727 -10 Minutes of the Regular Meeting - July 27,- 1978 Mr. Lanham explained that City Council does not have to wait until the Public Utilities Commission renders a decision to take action. Air. Bounds explained that hopefully City Council will have their own rate expert and can be working on the same material at the same time. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2506 AN ORDINANCE SUSPENDING HOUSTON LIGHTING AND POWER COMPANY'S PROPOSED INCREASE IN RATES FOR 120 DAYS AND MAKING CERTAIN FINDINGS AND PROVISIONS. Ordinance - Authorizing the City to Implement Hotel /Motel Tax for Baytown The proposed ordinance would authorize the City of Baytown to implement a hotel /motel occupancy tax for Baytown. Under the terms of this ordinance, the proposed tax is 4 %. Collection of this tax would be handled by the City Tax Collector. Payments would be made on a quarterly basis. One quarter of the 40 tax would have to be used for advertising to promote the City of Baytown. The remaining funds would be used to support tourism, convention center, or performing arts activities. If Council chooses to pass the ordinance, it would levy the 4% and Council would have to determine at a later date how these funds would actually be used. Councilman Kloesel commented that he felt the City Council needs to meet with a representative group from the hotel /motel owners because this tax will place a burden on the hotel /motel owners who are already having to collect taxes. Councilman Kloesel asked that Council support him in having the Administration send letters to the major hotel /motels in Baytown to set up a meeting to determine what their feelings and reactions are to this tax. Councilman Kloesel said that he realized that the hotel /motel owners have the opportunity to come before Council, but it just does not work this way sometime. Councilwoman Caffey commented that in the past she traveled three out of every four weeks in a fairly wide area, and that she always paid a hotel /motel tax and expected to pay the tax. Councilwoman Caffey commented that she had just returned from the Beautify Texas Council Convention where she observed much historical restoration. All of these funds for this restoration were derived from the hotel /motel tax. Councilman Kloesel commented that he had traveled and had paid the hotel /motel tax, but did not appreciate having to pay the tax. Councilman Kloesel felt that funds to support a museum and to promote Baytown and the performing arts, should come from the regular budget. Councilwoman Caffey stated that the hotel /motel tax could certainly do alot for Baytown and tourism especially since Baytown has no brochure to offer the people who come to visit. A brochure is only one of the things that could be done if the City received this tax. 80727 -11 Minutes of the Regular Meeting - July 27, 1978 Mayor Hutto stated that he would be against any new taxes that are not voted by the citizens, and the he was opposed to taxing persons who must travel to Baytown because of employ- ment. Mayor Hutto commented that the group promoting the hotel/ motel tax are well deserving and that he would be the first on the Council to support a request for funds to be budgeted. The Mayor stated that he would not be supportive of a tax to some- one visiting Baytown. He stated that funds can be allocated from revenue sharing funds or from budget funds for things such as the museum. Mrs. Jean Shepherd stated that she appreciates the City Council's support of the museum, but explained that the hotel/ motel tax would not only help the museum, the tax will help the City of Baytown, as well as the performing arts in the City of Baytown, otherwise, there is no cause to come to the City to ask for this money. Mrs. Shepherd explained that there are no brochures at hotels or motels to tell tourists what facilities the City of Baytown offers. As far as persons traveling to Baytown because of employment, Mrs. Shepherd felt very strongly that any time a businessman comes into this area to make his living, in someway he should contribute something back to this community, and the hotel /motel tax is a very small portion of how he can contribute to the community. There has been some statements made that Baytown has nothing to promote but Baytown certainly does have things to promote. Mrs. Shepherd stated that each member of Council would not be serving on the Council if they were not well aware of what Baytown has to promote. Councilwoman Wilbanks commented that these various groups have come to Council during budget sessions over the last few years and have not received a great deal of support. The museum had some money set aside several years ago but this money was never added to since then. There was alot of people in the community that were interested enough to support a museum, community orchestra or community chorus who gave a great deal of their own time in an effort to get these things started Councilwoman Wilbanks felt that this speaks to an interest in the Baytown area in such things. Councilman Cannon commented that it is his understanding that the state law permits up the 4% tax and what is the estimate at the 4% rate. Mr. Lanham responded that the 4% tax would bring approximately $60,000.00 to $80,000.00. Councilman Lander commented that he has reservation about taxing the City's guests for something for which the City will benefit. Councilman Lander stated that if the City wanted these things, the prudent thing to do would be for the citizens to pay for it and not tax the guests visiting in the City. Councilman Cannon commented that he did not have any partic- ular problem with the tax, but suggested that the hotel /motel tax be implemented on a graduated basis by setting the tax at 20 for a few years to see what is accomplished with the funds. He stated that he could support the hotel /motel tax if it would be done on a graduated basis. Mrs. Shepherd commented that in the last session of the legislature, it was decided that if a City charges lower than 4% tax on the hotel /motel bill, the City will have to put a higher percentage on the promotion of the City. 80727 -12 Minutes of the Special Meeting - July 27, 1978 Councilman Lander inquired if the hotel and motel bills are subject to sales tax. Mr. Lanham responded that he thought that hotel /motel bills were subject to 5qo sales tax. Councilman Lander commented that if the hotel /motel tax would be added to a bill, the bill would be subject to 9qo tax. In response to a prior question concerning the percentage of the tax that must go towards tourism, Mr. Bounds explained that if the City levies the taxes at 3% or less, then one -half of one percent must be spent on the promotion of tourism. Mayor Hutto expressed doubt that if given the opportunity, the citizens of Baytown would vote favorably on a hotel /motel tax. Councilwoman Caffey requested that the Administration check to determine if there is a sales tax charged to hotels and motels. Councilwoman Caffey requested that this item be placed on the next agenda. Resolution No. 632 - Authorizing the Administration to Apply for a STEP Grant for Fiscal Year 1979 At the last meeting, Council took no action on a proposal to apply for a STEP Grant for the 1979 Fiscal Year. The pro- posed resolution would authorize the Administration to make application for a grant for the amount of $113,272.00 which would be 100% federally funded. If the application is submitted and approved, the City of Baytown would employ one police sergeant and four patrolmen on an overtime basis for a maximum of 30 hours per week for selective traffic enforcement. At this level, the program would be reduced by approximately one -third under the past program, and in addition a municipal court clerk would be paid with these funds. The continuation of the STEP Program has been recommended by the Council Traffic Committee at this reduced level. The Administration recommended approval of the resolution. Councilman Lander moved for the adoption of the resolution; Councilwoman Caffey seconded the motion. In response to a question from Council, Bill Cornelius, Director of Planning and Traffic, explained that the grant would pay for a sergeant and four patrolmen per shift up to 30 hours per week. The maximum that could be worked per shift would be four hours. Mayor Hutto recognized Mr. Doug Tromblee who stated his general disapproval, not in the STEP Program, but in the fact that the monies derived from this program are being placed in the general fund, rather than being set aside to be used exclusively for safety purposes such as warning signs indicating radar enforce- ment or speed zone changes. Also, he felt that the monies could be utilizied toward the hire of more patrolmen and equipment for the police department, as well as the repair of streets, because deteriorated streets lend to accidents. Mr. Tromblee was also concerned that no accounting was required of the monies received from the grant, as well as the fines collected. nor. Lanham explained that all monies collected from the various services provided by the City of Baytown go into the general fund or the water fund to be distributed in the budget process by the City Council to the areas that the Council deem most advantageous. Therefore, the Council would determine where these monies are to be expended, that is toward more police protection, the repair of streets, etc. Mr. Lanham pointed out the danger of earmarking funds for certain purposes because when funds are earmarked, these funds must be expended toward 80727 -13 Minutes of the Regular Meeting - July 27, 1978 that purpose. In the present system, the City Council determines each year how all the funds collected by the City will be expended, and can thereby distribute more funds to the areas where the need is greater. As far as the grant funds, there is definitely an accounting made to the government as to the manner in which these funds are expended. Councilwoman Wilbanks said that Mr. Tromblee had made several good points and that she felt that the Council should be hearing that the citizens of Baytown want more safety control devices, people or whatever it takes in that area. She also stated that the Council needs to take this into account during the budget work sessions next month. Mayor Hutto stated that one of his objections to the program is the fact that the patrolmen under this program must work high accident areas while there are other areas of the city that need more enforcement, but these areas do not qualify as high accident areas, and therefore, do not benefit. Also, the Mayor felt that the City should place warning signs and devices to apprise citizens of changes in traffic control signs or devices, or danger. Also, he felt that warning tickets should be given. Mayor Hutto stated that Mr. Tromblee had made several good points and that he would hate to see the Council approve this program for another 12 months without implementing some of the suggestions made by the citizens. Councilman Lander stated that if Council desires to make these type changes, this can be handled during budget sessions. Councilwoman Wilbanks stated that she felt the concept of enforcing traffic safety is very important in the community, but she questioned the necessity of having numerous patrolmen working in one area at one time. She felt that one patrolman, two at the very most, should ever be in one location at one time. More bene- fit would be received by having the patrolmen dispersed throughout the community. Councilman Kloesel stated that he consistently receives complaints from citizens who are concerned about the STEP Program establishing a negative attitude in the Police Department, and concurred with Councilwoman Wilbanks. Mayor Hutto stated that he was definitely in favor of safety and safety equipment, but it would be very difficult for him to support the funding of more sophisticated radar equipment to be operated by one person when passing a STEP station and three -four patrolmen are working that station. Councilman Cannon stated he had no objection to having two patrolmen working radar -one to take the readings and one to stop violators. Councilwoman Caffey stated that the only comments that she had received were favorable to the program, but at a reduced rate. She also emphasized that the laws should be enforced and those who break the law should be ticketed. Councilman Kloesel requested that the implementation of issuing warning tickets should be placed on the next agenda. Councilman Cannon requested that the Administration formulate figures regarding costs of the placement of warning signs in all areas of the city where there are speed zone changes versus a reduced program. Mayor Hutto commented that he felt it unnecessary to place these signs in all areas of the city, but there were areas that definitely needed warning signs. The vote follows: 80727 -14 Minutes of the Regular Meeting - July 27, 1978 Ayes: Council members Lander, Wilbanks, Caffey and Cannon Nays: Councilman Kloesel Mayor Hutto RESOLUTION NO. 632 A RESOLUTION AUTHORIZING THE DIRECTOR OF PLANNING AND TRAFFIC TO EXECUTE THE NECESSARY APPLICATION INSTRUMENTS TO APPLY TO THE OFFICE OF TRAFFIC SAFETY, DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION, FOR GRANT FUNDS FOR THE EXTENSION OF THE SELECTIVE TRAFFIC ENFORCEMENT PRO- GRAM FOR THE CITY OF BAYTOWN. Ordinance - Granting a Permit to Amos Wyatt to Use a Portion of Street Right of Way Mr. Wyatt is planning to purchase a house located at 411 Stimson Street. This house is located on property that was originally sold by metes and bounds, even though the property had been platted at one time. A portion of his house is located on dedicated street right of way, but the street has never been opened. The Administration can foresee no need to open the street; therefore, the Administration recommended that Mr. Wyatt be granted the right to use that street for 30 years at a cost of $10.00 per year with the City retaining the right to withdraw this consent by giving 30 days notice. Mayor Hutto inquired if this right of use would be transfer- able. Mr. Bounds responded that Council could so specify, and that he would add to the ordinance that the permit shall be transferable. Councilman Kloesel moved for adoption of the ordinance; Council- woman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2507 AN ORDINANCE GRANTING A PERMIT TO AMOS WYATT TO USE A PORTION OF STIMSON STREET RIGHT -OF -WAY. Ordinance - Authorizing Change Order No. 1 to the Contract with Signal Engineering Company for the Furnishing of Traffic Signal Control Equipment Council has authorized a contract for the purchase of signal equipment and a separate contract for the installation of the equip- ment. The Administration would like to purchase four additional controllers to be added to the purchase contract at a total cost of $10,873.70. The Administration recommended approval of the ordinance. In response to a question from Council, the Director of Planning and Traffic stated that one controller would be used for the North Main Street System, another would be used at Garth and Baker, one will be used at Garth and Park, and the other one will be used at Loop 201 and Missouri. Councilman Cannon moved for the adoption of the ordinance; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None N 80727 -15 Minutes of the Regular Meeting - July 27, 1978 In response to a question from Council, the Director of Planning and Traffic stated that weather permitting the installation at Baker and Garth would be completed prior to the beginning of the school year. The signal at Park and Decker has no use at this time because it is to be used for the Loop. ORDINANCE NO. 2508 AN ORDINANCE AUTHORIZING CHANGE ORDER NO. 1 TO THE CONTRACT WITH SIGNAL ENGINEERING COMPANY TO PROVIDE FOR THE PURCHASE OF ADDITIONAL CONTROL EQUIPMENT AND PRO- VIDING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Awarding the Sliplining Contract Two bids were received. Shur -Flo bid $197,179.50 and Channel Construction bid $230,118.00. Shur -Flo has performed this type work for the City in the past; therefore, the Administration recommended approval of the ordinance awarding the contract to the low bidder, Shur -Flo. Air. Lanham did mention that the bid was $10,000.00 over what had been estimated. Councilwoman Wilbanks moved for adoption of the ordinance; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2509 AN ORDINANCE ACCEPTING THE BID OF SHUR -FLO, INC. FOR THE SLIPLINING OF CERTAIN SANITARY SEWER LINES AS ENUMBERATED IN CITY OF BAYTOWN BID NO. 787 -60 AND AUTHORIZING THE CONTRACTING OF INDEBTEDNESS BY THE CITY FOR THE SUM OF ONE HUNDRED NINETY -SEVEN THOUSAND ONE HUNDRED SEVENTY -NINE AND 50/100 ($197,179.50) DOLLARS WITH REGARD TO SUCH AGREEMENT. Ordinance - Awarding the Bid for the Purchase of a Traffic Recorder/ Reader The City Council authorized the Administration to advertise for bids at which time Council was informed that probably only one bid would be received. The only bid which was received for the purchase of a traffic recorder /reader was submitted by Streeter -Amet for the amount of $4,205.00. The Administration recommended that the contract be awarded to Streeter -Amet. Councilman Cannon moved for the adoption of the ordinance; Council- man Kloesel seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2510 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN ACCEPTING THE BID OF STREETER -AMET FOR THE PURCHASE OF ONE TRAFFIC READER AND TWO TRAFFIC RECORDERS AND AUTHORIZING THE PAYMENT BY THE CITY OF THE SUM OF FOUR THOUSAND TWO HUNDRED FIVE AND N01100 ($4,205.00) DOLLARS. 80727 -16 Minutes of the Regular Meeting - July 27, 1978 Ordinance - Authorizing the Merger of the Volunteer Firemen's Penison Plan Provided by House Bill No. 258 with the Plan Provided by Senate Bill No. 411 This matter had been discussed by the Council in a work session. The proposed ordinance would effect the merger of the two systems. Also, provided in the ordinance is a provision limiting the total number of volunteers allowed to participate in the system of 120 which could be changed in the future by Council action if necessary; the minimum age for eligibility to enter the system is established to be 18; maximum age, 35. The City's contribution would be $144.00 per year for each participant. At the present time there are 83 participants in the system, along with 18 retirees and 1 widow receiving benefits. The estimated cost of the plan if 120 persons participate is $33,446.00 per year which includes a 10 -year pay out for the buy back with accrued time, plus the annual payment for the current members and the retirees. The buy back is included in the $33,446.00 figure. The Administration recommended approval of the ordinance. Councilman Kloesel questioned how much this would affect retirees? The City Clerk responded that the retirees would be paid the amount that was currently being received under House Bill 258. Councilman Kloesel moved for adoption of the ordinance; Councilman Lander seconded the motion. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2511 AN ORDINANCE AUTHORIZING THE MERGER OF ITS CURRENT PENSION PLAN FOR VOLUNTEER FIREMEN WITH THE PENSION SYSTEM PROVIDED BY THE VOLUNTEER FIRE FIGHTERS' RELIEF AND RETIREMENT FUND ACT (S.B. 411) AND MAKING VARIOUS FINDINGS AND PROVISIONS RELATED THERETO. Ordinance - Amending the Minimum Property Standards for One and Two Living Units to Exclude the Property Line Requirements Mrs. Martinez appeared before Council two meetings ago regarding the need for a carport and indicated that inasmuch as her home is located 15 feet back from the right of way, the City of Baytown's minimum property standards would prohibit the building of a carport that would take care of the needs of this family. Since that time, the Administration has given this matter considerable study and has determined that in a number.of areas, particular in the older parts of the City, many homes do have 15 foot setbacks. Therefore, there would be no practical way that those persons could have carports, unless the ordinance is amended to provide that the overhang may extend to the front property line with the poles being set at least 3 feet back from the property line. The Administration recommended that Council consider this change to the minimum property standards which would allow carports to be built with the overhang up to the property line so long as the poles are 3 feet back and the carport has 3 open sides. Mr. Lanham emphasized that he felt the only places that this would be likely to occur would be in the older sections where the homes are 15 feet back from the property line. Councilman Kloesel moved for adoption of the ordinance; Council- woman Caffey seconded the motion. Minutes of the Regular Meeting - July 27, 1978 Councilman Lander inquired how far back must a home from the property line to comply with the Building Code. Lanham responded that the Building Code provided for a 15 setback, but most deed restrictions require from 15 to 25 If subdivision deed restrictions are stricter, than those restrictions would control. Those restrictions would be by the persons residing in the subdivision and not by the Baytown. The vote follows: Ayes: Council members Kloesel and Caffey Mayor Hutto Nays: Councilman Cannon Abstained: Council members Lander and Wilbanks ORDINANCE NO. 2512 80727 -17 be built Mr. foot feet. enforced City of AN ORDINANCE AMENDING SECTION 7 -5.1, MINIMUM PROPERTY STANDARDS FOR ONE AND TWO LIVING UNITS -- AMENDMENTS, OF THE CODE OF ORDINANCES TO ESTABLISH MINIMUM DISTANCES BETWEEN STRUCTURES AND PROPERTY LINES; REPEALING CON- FLICTING ORDINANCES; CONTAINING A SAVINGS CLAUSE AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Request of Richard Rady for Water Service Outside the City Limits A copy of Mr. Rady's letter was included in the Counci packet where he requests to tie into the City of Baytown's water system, and possibly the sewer system that was built by Mr. Walker as part of the Timber Ridge Development, which will be transferred to the City of Baytown upon completion. At the present time, the City of Baytown does not own the system, and the Administration felt that the wells that are in place were provided to serve the homes in the Timber Ridge Development. Therefore, the Administration felt that the City of Baytown should not jeopardize the water supply to those residents by allowing others to tie into that system. There is no way to determine what the future demand will be. Also, the City of Baytown is attempting to convert from well water to surface water; therefore, for these reasons the Administration recommended that the request of Richard Rady to tie into the water system of the Timber Ridge Development be rejected. Councilman Cannon moved to deny the request of Mr. Rady; Councilman Lander seconded the motion. Councilman Kloesel stated that the Administration's reasoning sounded reasonable, but he would need to know more about this matter; therefore, he would abstain. Mayor Hutto stated that he felt the Administration had brought forth very pertinent information, and added that the City of Baytown is requiring the developer of Timber Ridge to guarantee that system for one year after acceptance by the City. Therefore, the Mayor felt that the City of Baytown would be obligated to release the developer of that liability if the City chose to allow Mr. Rady to tie into that system. Councilman Kloesel concurred with Mayor Hutto. The vote follows: Ayes: Council members Lander, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None Committee Reports None. 80727 -18 Minutes ot.the Regular Meeting July 27,• 1978 Unfinished Business None. Dispensed with Executive Session and Adjourned Since there was no business to be transacted in executive session, the Mayor dispensed with the executive session. Council- man Kloesel moved for adjournment; Councilman Lander seconded the motion. The vote was unanimous to- adjourn. �-�auffl) I LAJ Karen Sue Petru, Deputy City Clerk APPROVED: e'-I 140. "Z=:I� - Eileen P. Hall, City Clerk