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1978 07 31 CC Minutes, Special80731 -1 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS July 31, 1978 The City Council of the City of Baytown, Texas, met in special session, July 31, 1978, at 6:00 p.m. in the Council Chamber of the Baytown City Hall. The following members were in attendance: Jody Lander Jimmy Johnson Ted Kloesel Mary E. Wilbanks Eileen Caffey Allen Cannon Emmett 0. Hutto Fritz Lanham Dan Savage Eileen P. Hall Scott Bounds Councilman Councilman Councilman Councilwoman Councilwoman Councilman Mayor City Manager Assistant City Manager City Clerk City Attorney Mayor Hutto called the meeting to order. Mr. Bill Black, who is on the Board of the Metropolitan Transit Authority, was recognized by Mayor Hutto to discuss the upcoming election to be held on August 12, 1978, and what events will transpire as a result of that election. Mr. Black stated that earlier in the afternoon the City Council of Galena Park and Jacinto City had expressed support of the Metropolitan Transit Authority. Mr. Black informed Council of events which had transpired since the work session with Council two weeks earlier. At the Council meeting which followed that work session, the City Council of the City of Baytown adopted a plan for implementation of a regional plan for the Baytown area which the staff in the Planning Department had developed. Mr. Black commended the Planning Department for a very fine job, and stated since the adoption of this plan, the Transit Authority Board had taken action which would be of interest to the Council. For one thing, the Board will be able to implement this service after January 1. The election is in August and if the proposition prevails, the Board will use the time between August and January 1 to get organized properly. On January 1, the Board becomes a working entity and will begin to receive funds in May. Mini buses will be diverted to the Baytown system immediately, and the Board will also want to work with the staff in attempting to establish park- and -ride facilities for this area. With regard to the purchase of the Houtran System, Mr. Black said that these negotiations are being finalized, and even though he had not been directly involved, he was aware of what direction the negotiations had taken and that the arrangement would be very fair for the Metropolitan Transit Authority. Also, he stated that the pension fund would not be dissipated because for one thing there are federal regulations which would prohibit this sort of action. Mr. Black pointed out that the transit way for I -10 was not included in the original plan because there was no transit expe- rience on I -10, but capital funding was included for the first year with regard to access lanes for availability. However, when this was called to the attention of the Board, the Board included I -10 in the plan as far as the initial feasibility study; therefore, I -10 will receive the same treatment as other freeways. 80731 -2 Minutes of the Special Meeting - July 31, 1978 Mr. Black stated that he did not realize that Crosby was an unincorporated area in Harris County and that he had placed Crosby as an incorporated area outside Harris County. The Board is now trying to determine some location for park- and -ride facilities in that area, roughly at the Crosby- Lynchburg Crossing and Highway 90. Mr. Black emphasized that the Board has no money; therefore, no detailed studies are being performed. However, the Board is attemping to establish criteria to cover these areas. Mayor Hutto commended former Mayor Black for the time and effort which he had personally contributed to this project. In response to a question from Council, Mr. Black emphasized that in the future it will not be necessary for everyone to go to downtown Houston, then be transported to other areas of the City. The final determination of the routes will be made by making surveys. There will be four transit terminals placed at the peripheries of downtown Houston where buses will travel to, and from which indi- viduals will transfer to go to other areas. Eventually, Main Street in Houston will be converted to a transit mall with no automobiles allowed, only transit vehicles and pedestrians will be allowed. Buses will be travelling from park- and -ride facilities to other areas besides downtown, particularly to the medical center. Mr. Black stated at the present time it is rather difficult to say where the buses will run. For the present, the largest problem is that there are no cross -town buses in Houston whatsoever. One must go to downtown Houston to go anywhere. In summarization, Mr. Black stated that immediately from the park- and -ride areas, there will be buses to other activity points in Houston besides downtown such as the Medical Center, Greenway Plaza, the Galleria area, and the Airport. Later cross -town routes will be developed and probably one the first cross -town routes would be at the Loop because there would be transfer terminals from the Loop so that one could catch a bus to a given destination. With regard to the 1% tax increase, Councilman Johnson was concerned that this tax once levied would never be lifted. Mr. Black explained that for the first ten years of operation, the operating deficit would be $667,000,000.00. The rate of recovery would be from 40% to 50%. Equipment acquisition will cost approx- imately $237,000,000.00; maintenance facilities, $127,000,000.00; management, $155,000,000.00; terminal facilities, $191,000,000.00; park- and -ride facilities, $58,000,000.00; freeway improvements, $19,000,000.00 and transit ways, $523,000,000.00. Conversion to a rail system from transit ways will cost approximately $251,000,000.00. Therefore, there would be a total expenditure expected over a ten - year period of $1,295 Billion. Mr. Black said because of the tremendous costs involved, he could see no way to reduce the tax during the first ten years of operation, but more realistically after 15 years. He did point out that no bonds would be issued which would save $200,000,000.00 in interest payments. Mr. Black also pointed out that a surplus would be built up eventually, but this would be utilized to pay for the conversion to rail facilities. The Board intends to build this facility on a pay -as- you -go basis. After the original capital costs are paid, then the tax could possibly be cut back. 11, Councilman Johnson was also curious as to which entity would have the authority to remove the 1% tax. Mr. Black responded that the Transit Authority Board could remove the tax by its own action, but the only other entity that could remove the tax would be the State Legislature. There is no possibility of diversion of these funds to any other area; therefore, if there is more money being collected than needed, the Board would cut back. 80731 -3 Minutes of the Special Meeting - July 31, 1978 Councilwoman Wilbanks moved for the adoption of the resolution; Councilman Kloesel seconded the motion. In response to a question from Council, fir. Black responded that Houston presently owns 468 buses, but 132 are inoperable. One of the first actions of the Board would be to have private enterprises repair these buses. The Transit Authority will assume buses that have been ordered and are due for delivery in October, 1978. The first group of buses that the Board will actually purchase will probably be pur- chased without federal funds; therefore, the Board will begin by purchasing primarily middle -sized buses and mini buses to be utilized on inner -city routes where the big buses are now being utilized, and use the mini buses and middle -sized buses for park- and -ride situations. Mr. Black emphasized the fact that Baytown would have 10 buses by the end of January. Arrangements will have to be made for temporary main- tenance facilities and temporary transit terminal facilities. The Metropolitan Transit Authority will pay for all costs. A labor man- agement firm probably will be necessary because of the legal situation with the labor union. There will be no effort by the Board to dis- sipate the rights or privileges of union members. Mr. Black stressed the fact that the Board would encourage employment of local concerns and local people. Alayor Hutto stated that he was confident that the necessary safe- guards to protect the interest of the citizens of Baytown in respect to assuring the citizens of a full return on their tax dollar had been established by the Board through no small effort on the part of Mr. Black. The vote follows: Ayes: Council members Lander, Johnson, Kloesel, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None RESOLUTION NO. 633 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN ENDORSING THE CONCEPTS OF THE METROPOLITAN TRANSIT AUTHORITY'S METRO REGIONAL TRANSIT PLAN, AND URGING ITS CITIZENS TO VOTE FOR THE PROPOSITION CONFIRMING THE CREATION OF THE METROPOLITAN TRANSIT AUTHORITY. There being no further business to be transacted, the motion to adjourn was made by Councilman Kloesel; seconded by Councilman Cannon. The vote was unanimous to adjourn. "/0" 1�- "541xze i een P. Hal , City Clerk