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.
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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.
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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.
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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.
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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.
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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.
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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