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1979 11 26 CC Minutes, Special91126 -1 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN November 26, 1979 The City Council of the City of Baytown, Texas, met in special session on Monday, November 26, 1979, at 5:00 p.m. in the Council Chamber of the Baytown City Hall with the following members in attendance: Fred T. Philips Jimmy Johnson Ted Kloesel Mary E. Wilbanks Emmett 0. Hutto Fritz Lanham Dan Savage Scott Bounds Eileen P. Hall Councilman Councilman Councilman Councilwoman Mayor City Manager Assistant City Manager City Attorney City Clerk Absent: Eileen Caffey Councilwoman Allen Cannon Councilman The meeting was called to order by Mayor Hutto. Resolution No. 708 - Designating the Baytown Housing Finance Corporation as the Instrumentality of the City of Baytown for the Purpose of Issuing Tax - Exempt Obligations to Finance Owner- Occupied Residences Scott Bounds, City Attorney, explained that there is pending in the U.S. House of Representatives, House Bill No. 5741 en- titled the "Mortgage Subsidy Bond and Interest Exclusion Tax Act of 1979." If passed, this act would have some effect upon the tax - exempt status of certain corporations like that created by City Council recently in the Baytown Housing Finance Corporation. This resolution is an attempt to maintain the tax - exempt status of the Baytown Housing Finance Corporation, assuming that bill does pass. It does not, in any way, change the obligations of the City or the legal status of the Baytown Housing Finance Corporation. The Administration recommended approval of the resolution. Councilwoman Wilbanks moved for adoption of the resolution; Councilman Johnson seconded the motion. Councilman Kloesel commented that he had voted against the original Baytown Housing Finance Corporation because it was essentially controlled by the Baytown Housing Authority, but he prefaced that statement by stating that he was certainly for progress and has no opposition to the federal participation in the program. Councilman Kloesel went on to state that he had a lack of confidence in the Baytown Housing Authority and as a result, he would vote against the resolution. The vote follows: Ayes: Council members Philips, Johnson and Wilbanks Mayor Hutto Nays: Councilman Kloesel RESOLUTION NO. 708 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS DESIGNATING THE BAYTOWN HOUSING FINANCE CORPORATION AS THE INSTRUMENTALITY OF THE CITY OF BAYTOWN FOR THE PURPOSE OF ISSUING TAX - EXEMPT OBLIGATIONS TO FINANCE OWNER- OCCUPIED RESIDENCES. 91126 -2 Minutes of the Special Meeting - November 26, 1979 Resolution No. 709 - Notifying the U. S. Army Corps of Engineers that the City is Withdrawing Local Sponsorship of Wooster and Portions of Lakewood as Included in the Project Area Defined by the Baytown, Texas Project At the last meeting, the City Council instructed the Admin- istration and the Mayor to contact the Corps of Engineers to ask for clarification of a portion of the report that Council was provided by the Corps of Engineers regarding the rights of the individual property owners adjacent to the projected 151 foot elevation with respect to whether they would have an opportunity to opt in or out of the project. Mr. Lanham and Mayor Hutto met with representatives of the U.S. Army Corps of Engineers on Friday morning. Many other possibilities were discussed for clarifying this portion of the report. As a result of those discussions, it was suggested by the Corps of Engineers that another possible action would be for the local sponsor, the City of Baytown, to indicate its sponsorship withdrawal of certain areas of the project. Mr. Lanham commented that they were dis- cussing specifically those portions of the project that had not been involved in extensive flooding. They are separable incre- ments. That is that they are not part of the Brownwood area and not a part of the major portion of Lakewood that is in the pro- ject. Mr. Lanham commented that he and the mayor had indicated that there had not been a great deal of support from the resi- dents of these particular areas to be included in the project. From the meeting with the Corps of Engineers, the Administration has developed the proposed resolution which would express to the Corps of Engineers the intent of the City of Baytown to withdraw local sponsorship of four areas presently in the project. One being an area along Spring Gully on North Burnett, another would be the area of the intersection of Burnett Drive and also two sections in the Wooster area. The project would then include all of Brownwood and the southern part of Lakewood which is the lowest part of Lakewood. If Council approves the proposed resolution, the City can expect the Corps of Engineers to place those areas in inactive status and if sometime in the future, the local sponsor requested it, those areas could be put back into the project. Mr. Lanham stated the reasons for doing this: (1) there has not been a great deal of support from the residents in those areas to be included; (2) those areas are not in the area that is flooded by high tides; and (3) it would be costly for the City to have to develop those into park areas. For those reasons, the Administration recommended approval of the resolution. Mayor Hutto commented that he and Mr. Lanham were elated with the reception that they got from the Corps of Engineers, Colonel Sigler and his staff. There were several other options explored. Councilman Philips commented that he is delighted with this result and felt that this was the flexibility that the City had been lead to believe could be worked out. He felt that by the City of Baytown taking the initiative to get those areas dropped will now make the City's bond proposition much more palatable. It will eliminate those areas in opposition. Councilman Philips stated that he is delighted. Councilman Philips moved to adopt the resolution as pre- sented and recommended that the City attach these two plates as shown here to the resolution so that there will be maps to define the areas that the Council is talking about; Councilman Johnson seconded the motion. Councilman Johnson expressed his thanks to the Administra- tion and to Mayor Hutto for all the work they did in trying to get this scaled down. 91126 -3 Minutes of the Special Meeting - November 26, 1979 Councilman Kloesel questioned whether this project will take approximately five years to complete? Mr. Lanham responded that this has been mentioned, but Council has requested that the Corps expedite the project and hopefully, it can be done in two to three years. Councilman Kloesel commented that with the action that Coun- cil is taking, it is possible that another Council, because of some alarming situation of flooding, could include these areas. Mr. Lanham responded that that is correct. Councilman Kloesel felt that at the last regular Council meeting, the Council voted on the plan as presented by the Corps of Engineers and the City Council adopted an ordinance which is legally binding. He further commented that he is not convinced that a resolution, as proposed, can amend that ordinance calling an election. He felt in order to change or modify the action that the City Council took at the last regular Council meeting should be done by ordinance. Councilwoman Wilbanks commented that the proposed resolution is directed to the Corps of Engineers expressing clarification or affirming the discussion that the Mayor and Mr. Lanham had with the Corps of Engineers since the last Council meeting. Mr. Lanham explained that Resolution No. 674 previously endorsed participation in the project and that this resolution would be altering that. Mr. Bounds explained that the City of Baytown had been asked by the Corps of Engineers at a previous date to approve by resolution the proposed Baytown Project Plan which defined the Baytown Project. The proposed resolution is modi- fying Council's previous approval of that plan by withdrawing sponsorship of those areas designated on the attachments and states why the City of Baytown is withdrawing its sponsorship. The ordinance that was passed at the last Council meeting was an election ordinance, calling an election which generally gives the City Council authority to enter into a contract for monies to be provided by the selling of bonds. Mr. Bounds did not feel that this action by resolution is going to be ineffective because it is by resolution rather than ordinance. Mayor Hutto recognized John Wilson of 176 North Burnett, who expressed concern that the resolution being considered by Council would be binding on the Corps of Engineers or a future Council. Mayor Hutto explained that the present Council could in no way commit a future Council, and according to Colonel Sigler with the Corps of Engineers, this resolution will most effectively keep the Corps out of the areas specified as being withdrawn from local support. Of all of the options discussed, this option gives the people on North Burnett and adjacent areas more pro- tection. Those areas still have the protection after 3 or 4 years, so long as this program is in effect, to petition Council to opt those areas back in. Mr. Wilson thanked Council for their efforts and expressed that he could not feel confident that adoption of this resolution provides assurances. Councilman Philips stated that to put this in another vein, with this action, Council is withdrawing its 20% support from the 80/20 provision of the law so that under those conditions the federal government is not interested in any portion where the 200 participation is withdrawn. Mayor Hutto recognized Jack Walker who lives at 170 North Burnett who expressed confidence in the City Council and stated that he would support what Council is proposing to do by reso- lution, but would feel better if the action would be taken by ordinance. Councilman Kloesel stated that he opposed endorsing the City's participation in this project and certainly does not want to endorse the project which this resolution endorses. He felt that the people who reside in the areas outlined in the attach- ments should be removed from the project, but by the same token, 91126 -4 Minutes of the Special Meeting - November 26, 1979 there is a question and therefore, he would not be able to support the endorsement. Mayor Hutto recognized Mrs. Norman D. Olive, who resides on Bayway Drive, and she requested clarification if the Olive prop- erty and Vinson property were included in the withdrawal area. Mr. Lanham responded by pointing to an area shown to be in the withdrawal area which Mrs. Olive stated was her property. The vote follows: Ayes: Council members Philips, Johnson and Wilbanks Mayor Hutto Nays: Councilman Kloesel RESOLUTION NO. 709 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, NOTIFYING THE U. S. ARMY CORPS OF ENGINEERS THAT THE CITY IS WITHDRAWING LOCAL SPONSORSHIP OF WOOSTER AND PORTIONS OF LAKEWOOD AS INCLUDED IN THE PROJECT AREA DEFINED BY THE BAYTOWN, TEXAS PROJECT. Councilwoman Wilbanks commented that she is still concerned about the wording on the ballot. Has the Administration seen any signs that this might be modified? Mr. Bounds explained that the wording is about as specific as possible without putting the entire caption of the resolution on the ballot which would be more confusing. Mayor Hutto stated that many problems have been resolved by people working together and that perhaps the Administration should be back in contact with the bond attorneys concerning the wording of the ballot. Councilman Philips stated that he cannot believe that the English language is that short on expressive phrases. Mr. Lanham explained that it is important though that when the bonds are voted, that the City will be able to sell them. The attorneys are trying to protect the City's interest in this regard. Mayor Hutto recognized Marion Johnson of 194 North Burnett, who stated that the accepted cause of subsidence has been the pumping of sub - surface water. Several years ago, there was formed a Subsidence District and the purpose of that district was to reduce the amount of sub - surface water that is pumped for both municipal and industry use, as well as to provide for the treat- ment of surface water. Air. Johnson inquired if it would be possible to involve the Subsidence District in any way in the support of the City's portion of this expense. The Subsidence District would spread the cost of this 20% over a rather large area. Mr. Bounds explained that he was not aware of what authority the Subsidence District would have. Mr. Lanham stated that the Administration would certainly check into that possibility. That authority was set up for a very specific purpose. Councilman Kloesel commented that the school district will be holding a trustee election on Saturday, January 19, 1980, and moved to combine the bond election with the school election to be held on January 19. Councilman Philips stated that one of the problems that the City Council had after the last election was that there was a lot of feeling that the issue did not get considered on its own merits. Council wants to make certain this time, because depen- ding upon the results of this election, Council will then go to the voters with a multi - million dollar capital improvements bond issue. ia 91126 -5 Minutes of the Special Meeting - November 26, 1979 Councilman Kloesel felt when the City has an election, Council should attempt to make it as convenient for voters as possible and felt that the voters could distinguish between the two. The motion died for lack of second. Adj ourn With no further business to be transacted, Mayor Hutto adjourned the meeting. Karen Petru, Deputy City Clerk APPROVED: P X4-� Eileen P. Hall, City Clerk