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1980 08 26 CC Minutes00826 -1 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 26, 1980 The City Council of the City of Baytown, Texas, met in lar session on Tuesday, August 26, 1980, at 6:30 p.m. in the Council Chamber of the Baytown City Hall with the following bers in attendance: Fred T. Philips *Jimmy Johnson Perry Simmons Mary E. Wilbanks Eileen Caffey Allen Cannon Emmett 0. Hutto Fritz Lanham Dan Savage Randy Strong Eileen P. Hall Councilman Councilman Councilman Councilwoman Councilwoman Councilman Mayor regu- mem- City manager Assistant City Manager City Attorney City Clerk The meeting was called to order by Mayor Hutto and the invo- cation was offered by Councilman Philips. Councilwoman Wilbanks stated that she would like to see Council act as a body to send a resolution expressing Council's condolences to the family of Colonel Pelly Dittman and recogni- zing all those services that he contributed to the City during his term of office. Councilwoman Wilbanks moved to instruc-� the Administration to prepare a resolution expressing the condolences and recognizing the work of Pelly Dittman during his term on the Council; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None Minutes Councilwoman Caffey moved for approval of the minutes of the regular meeting of August 14, 1980 and the special meeting of August 21, 1980; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None Receive Petitions None. City Manager's Report Houston Lighting and Power - Council received a copy of a letter from Houston Lighting and Power regarding their cost of service comparison. HL&P's cost of service for the month of September for a customer using 2,000 kilowatt hours is approxi- mately $5.10 less than it was in the month of August. There is a significant reduction in fuel costs. Building Code - Arthur Morgan appeared before City Council 00826 -2 Minutes of the Regular Meeting - August 26, 1980 at the last meeting regarding a variance from the building set- back line for a garage. Mr. Morgan would like to enclose a carport that has been constructed at that location. The City Attorney has reviewed city ordinances in this regard, and also went out to Mr. Morgan's neighborhood and noticed that the build- ing setback line which was established by the plat had been violated in several instances. The City's Building Code, which is the FHA Minimum Property Standard Code, provides for a 15 -foot setback from the front property line. There is a requirement of the plat of that subdivision that there be a 30 -foot setback line which is the reason for the confusion. It is the City Attorney's opinion that because there has been other violations, that re- striction is probably no longer valid. The Building Department has been instructed to issue the permit. Wade Road - Councilman Philips had requested that the Admin- istration check on the possibility of Wade Road being designated as an escape route since it is at a higher elevation than some of the other roads that go north to Interstate 10. Mr. Lanham stated that he had asked Fletcher Hickerson to review that possi- bility. Councilman Philips had received a copy of the memo from Mr. Hickerson and in that memo, Mr. Hickerson indicates that in his opinion and in all probability, it will not be necessary to evacuate Baytown even in the event of a strong hurricane. Per- sons living in areas that are subject to flooding and in mobile homes would need to move to safe locations within the city and those who want to leave would not be discouraged from doing so. It is always emphasized that if citizens intend to leave the city in the event or threat of a hurricane, they should leave early when all escape routes are open and go to locations where they know there are shelters. Mr. Lanham explained that the Civil Defense office tried to keep the plan flexible as to the location of the escape routes because depending on the rainfall and the flooding, it can change from time to time, and Civil Defense feels that as many options as possible need to be kept open. It is Mr. Hickerson's feeling that if the city designated one or two roads as escape routes, this could cause problems. Mr. Lanham pointed out that motorists cannot turn right at Wade Road and Interstate 10 because of a railroad that blocks that intersection. It is something that the Administration will continue to work on and the Administration will be in touch with the State Department of Highways and Public Transportation to see if there are ways that that can be improved to help the City in the event Wade Road needs to be used. Councilman Philips stated that what the city is looking at are contingency alternatives and felt that the city needs to open up as many contingency routes as possible. Councilman Philips requested that the Administration and the Civil Defense Director keep this in mind and try to implement this as another escape route from Baytown. Drainage - The Administration has been reviewing the recom- mendations of the Drainage Study Committee and the staff's goal is to have a number of ordinance changes for Council's consid- eration at the second meeting in September. The implementation of those recommendations for the most part will require either amending existing ordinances or require new ordinances. Water Supply - All of the city wells are in operation. Councilman Philips requested that the Administration forward copies of the proposed ordinances on drainage to the Drainage Study Committee as soon as possible to allow time for review of the proposed ordinances so that the committee can give Council some input in this regard. Street Improvement Program - All of the work is complete with the exception of Market Street and general cleanup. Sliplining - Approximately 120 feet of five -inch liner has been pulled from Narcille between Bruce and Colby Street and the project is approximately 30% complete. 9d 00826 -3 Minutes of the Regular Meeting - August 26, 1980 Community Development Program - All of the tie -ins to the six inch water line have been made and the dirt work has been completed on Cedar Street from Airhart to Cherry Street. The project is approximately 30% complete. Concerning the drainage project on Baker Road, the final elevations and cross - sectional drawings of the pipeline intersec- tion have been completed and have been forwarded to the compa- nies. The city has worked out a tentative agreement with Texas Eastern Company which was one of the major problem areas. Water Line Projects - The Interstate 10 water line and the Sjolander Road water line have both been completed and tests are underway. Baytown Area Water Authority Line - The Baytown Area Water Authority line that the Sjolander Road line connects to has been completed. Pressure tests have been made and there are no major leaks. Park Street - The contractor is 95% complete with the storm sewer work and 95% complete with the concrete work on the south side of Park Street. East District Sewer Projects - The contractor has completed most of the 8 -inch gravity sanitary sewer line along Raccoon Drive from Cary's Bayou south to the end of the line. The con- tractor is installing the 8 -inch line on Knight Lane and is beginning to install the 24 -inch line along Cary's Bayou near Raccoon Drive. The lift station contractor has started forming the walls for the lift station. Drainage Work - City forces - Timberlane Drive and Weaver Street drainage projects have been completed and the Airhart Drive work is approximately 60% complete. Questions and Comments Regarding the City Manager's Report Councilman Johnson inquired about the small sliplining project on Bruce Street. Mr. Lanham stated that that project is underway and the contractor has installed 120 feet of pipe and five connections have been made. Councilman Philips requested that the Administration contact the railroad company about having the railroad crossing on Air - hart Drive repaired. Councilwoman Wilbanks stated that at the last meeting, the Council discussed the Area Housing Opportunity Plan and the Coun- cil could not see too many advantages for Baytown's encouragement of regional participation in this type plan. This same position was taken by many other municipalities. Houston - Galveston Area Council has decided not to go with the formulation of the plan but to make every effort to help the smaller communities with any technical assistance so that they would have more of an opportu- nity to participate. Councilman Cannon stated that out in the recently annexed area of Garth Road and Cedar Bayou- Lynchburg, the stop sign is down on Garth Road. He asked that the city pay particular atten- tion to this area because recently there was a fatal traffic accident at that location. Ordinance - Authorizing Sale of Easement Across Three Parcels of City Property to Texas Eastern Transmission Company Texas Eastern Transmission Company wishes to purchase pipe- line easements across three parcels of city property north of Baker Road. The properties include a 25 foot easement along the eastern edge of the Baker Road water well site, a 25 foot ease- ment along the eastern edge of the Craigmont lift station site, and a 25 foot easement across the eastern edge of the Coady land- 00826 -4 Minutes of the Regular Meeting - August 26, 1980 fill site. These easements abutt existing Texas Eastern pipeline easements. In addition to these easement requests, the company is asking for temporary easements for construction purposes at each location. The City has had the property appraised. Total value of the temporary and permanent easements is $12,802. The Administration recommended approval of the ordinance authorizing the sale of easements across three parcels of city property to Texas Eastern Transmission Company for $12,802. Councilman Philips inquired if any of these easements are possible areas where drainage could be interfered with and stated that he is thinking in terms of stipulating in the sale that no pipeline work would interfere with normal drainage. Councilman Philips felt that the city needs to protect its inter- est in this regard. Randy Strong, City Attorney, explained that he had discussed this with the representative of Texas Eastern, and they had taken their plans to Harris County Flood Control District because at one point, the pipeline actually crosses Goose Creek Stream. Harris County Flood Control District did approve the plans. Mr. Strong explained that Texas Eastern is aware of the city's concern. Mr. Lanham stated that a clause could be added to this ordinance indicating that Texas Eastern Transmission Company not interfere with drainage. Council concurred. Councilman Philips moved for adoption of the ordinance; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2958 AN ORDINANCE AUTHORIZING THE CONVEYANCE OF RIGHT OF WAY AND PIPE- LINE EASEMENTS UNDER, UPON, OVER, AND THROUGH LANDS WHICH THE CITY OF BAYTOWN OWNS; DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO INSTRUMENTS GRANTING RIGHT OF WAY AND PIPELINE EASEMENTS TO TEXAS EASTERN TRANSMISSION CORPORATION; AND PROVI- DING FOR THE EFFECTIVE DATE HEREOF. Ordinance - Amending Chapter 2, "Administration," of the Code to Restructure the Membership of the Baytown Traffic Commission The Administration explained that a proposed ordinance was sent out to Council but since that time, something was added to the ordinance; therefore, a revised ordinance was placed at the Council table. The proposed ordinance amends Chapter 2, "Admin- istration," to restructure the membership of the Baytown Traffic Commission. Presently, the Commission is comprised of four mem- bers appointed by the City Council and a fifth member who is the Chairman of the Citizens Safety Committee. The proposed ordi- nance provides for a membership of seven members, to be appointed by City Council. Members of the Commission may be removed by the City Council with or without cause. Four members shall be appointed during odd numbered years, and three members shall be appointed during even numbered years. The proposed ordinance also indicates that certain administrative people serve as ex- officio members. There is also a section which sets forth what constitutes a quorum and that approval of any action shall require an affirmative vote of a majority of those present. Councilman Johnson inquired if the Council had ever deter- mined that the Traffic Commission should consist of seven mem- bers? Mr. Lanham responded that that was never decided and the proposed ordinance can be changed to five members if Council so desires. Mr. Lanham explained that the problem with five members to a committee is that if only three members show up, there is a problem as to who seconds the motion. 00826 -5 Minutes of the Regular Meeting - August 26, 1980 Councilwoman Wilbanks favored enlarging the committee to seven members to provide representation from throughout the community. Mayor Hutto felt that the members who are on the Traffic Commission should be persons who travel throughout the city and are familiar with the different streets and locations. Councilman Philips stated that members of boards and commis- sions should be individuals who are knowledgeable in that area and who are willing to attend the meetings. Councilwoman Wilbanks moved for adoption of the ordinance which expands the membership of the Traffic Commission to seven members; Councilman Cannon seconded the motion. The vote follows: Ayes: Council members Wilbanks, Caffey and Cannon Nays: Council members Philips, Johnson and Simmons Mayor Hutto Councilman Philips moved that the ordinance be adopted as presented with the exception membership be reduced from seven to five members; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson and Simmons Mayor Hutto Nays: Council members Wilbanks, Caffey and Cannon ORDINANCE NO. 2959 AN ORDINANCE AMENDING CHAPTER 2, "ADMINISTRATION," OF THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN TO RESTRUCTURE MEMBERSHIP OF THE TRAFFIC COMMISSION. Hold Public Hearing on Proposed 1980 -81 City of Baytown Budget (7:00 p.m.) Mayor Hutto declared the public hearing on the proposed ex- penditure of budgeted funds for the 1980 -81 fiscal year to be open. Air. Lanham explained that the proposed budget for 1980 -81 fiscal year has been on file in the City Clerk's office and also at Sterling Municipal Library for interested citizens to review. The proposed budget is broken down into four funds. The first and largest fund is the General Fund, which is used to finance those operations of the City other than water and sewer opera- tions and which includes all other departments of the City. The total for the General Fund is $14,262,718. There are modest improvements in services in the Police and Fire Departments and Sterling Municipal Library. The Clean City Commission would be fully city- funded in this proposed budget. There are modest improvements in services to be provided by the Garage and by the Engineering Departments. In the proposed budget that the Council has been considering, there is a reduction in the amount of funds that are proposed for street rebuilding -- $50,000. Drainage, which has been a high priority item for the last several years would be maintained at about the same level. The major changes in the budget are in four categories. Personal services is the largest of those four and it amounts to approximately $1,323,000; energy costs are approximately $131,000 more than the current year; street lighting has increased by approximately $141,000 which is a result of a rate change that was approved by the Public Utilities Commission. Those three areas account for almost $1,600,000 of the total increase in the general fund budget of approximately $2,026,000. The remainder includes funds for the purchase of equipment such as a replacement gradall for the Street Department and replacement for a number of vehicles, particularly in the Police Department. Additional employees are Minutes of the Regular Meeting - August 26, 1980 in this recommended budget as follows: Library - an additional Junior Librarian and a part -time Junior Librarian that would work approximately 10 hours a week; Police Department - seven addi- tional employees; five civilian jailers are to be employed to replace four patrol officers. These officers would be placed in the patrol division, along with one additional patrol position to give the Police Department a total of five patrolmen which would enable the City to create an additional district in Baytown. One mechanic has been proposed for the police garage. The Fire Department - one additional inspector /investigator is proposed; Engineering Department - one additional engineering position and a part -time engineering aide position is being proposed; Parks and Recreation Department - the Administration is recommending the addition of one district foreman position and deletion of one custodian position, and one additional lifeguard, which is a part -time position at McElroy Park. In the General Fund, with respect to revenue, the major in- crease in revenue that the Administration expects to receive to finance this budget is taxes. A tax rate decrease is recommended from $1.44 to $1.35; however, because of re- evaluation and in- creases in industrial values, there will be a significant in- crease in tax revenue. The Administration is also recommending that the solid waste charge be increased from $4.50 to $5.50 per month. The second major fund in the budget is the water and sewer fund, which is the largest increase percentage -wise and in dollars, has been increased by $2,677,000. The major change in that budget results from the planned conversion to surface water. That change will cost approximately $2,200,000 over current costs. In Personal services, the Administration expects to add three people in water and sewer departments. Those additional people plus pay increases totals approximately $507,000. Energy costs in the proposed budget will be approximately $130,000. The third fund is the General Obligation Interest and Sink- ing Fund, which is the fund from which bond requirements are paid. The City of Baytown for several years has issued bonds for the construction of capital improvements. Each year a portion of the tax money that is collected goes into this special Interest and Sinking Fund and the city makes the payments to the bond holders from that fund. The requirements for next year in this particular fund have increased by approximately $30,000. The fourth fund is the Water and Sewer Interest and Sinking Fund, from which revenue bonds that have been issued to make im- provements in the water and sewer systems will be paid. There is a small reduction in this fund of approximately $500 because the City has not issued any revenue bonds in recent years. Mr. Lanham further explained that in order to have funds to finance this water and sewer fund budget which has been increased by approximately $2,700,000, the Administration recommended to City Council that there be an increase in water rates of approxi- mately 91% and an increase in the sewer charge of approximately 57 %. The proposed budget for 1980 -81 fiscal year is approximately a 26% increase over the current budget. Jocelyn Wesselhoft, director of the senior citizens nutri- tion center and the First Presbyterian Church appeared to request in addition to the $4,000 included in the proposed budget an additional $1,000 allocation. Due to tremendous increase in utilities cost, the church's allocation will be reduced next year by $400 even though their total contribution is greatly increased by providing space, utilities and janitorial services. Also, the first six months of the nutrition center's expenditures this year are over half of the center's allocated amount of $4,000. Therefore, the nutrition center needs an additional $1,000 from the city to maintain the same level of operation. 00826 -7 Minutes of the Regular Meeting - August 26, 1980 In response to an inquiry from Council, Mrs. Wesselhoft explained that the center is serving approximately 70 to 8G people per day. Last year, the center had 420 different senior citizens and served over 20,000 meals. The center has just recently been funded for a home delivery program. Two vans are presently being operated. One van is specifically for the handicapped. The other van seats 18 people. There being no other persons desiring to speak, Mayor Hutto declared the public hearing to be closed. Hold Public Hearing on Proposed 1980 -81 Revenue Sharing Budget (7:15 p.m.) Mayor Hutto declared the public hearing on the proposed ex- penditure of Revenue Sharing Funds for Entitlement Period XII in session. Mr. Lanham explained that the law which established the Revenue Sharing program requires that two public hearings be held on the use of those funds. There is a requirement that the chief administrator of the city hold a public hearing. On Wednesday, July 16, 1980, the City Manager held a public hearing in the City Hall Council Chamber to receive requests for the proposed use of these funds. Mr. Lanham explained that the City of Baytown expects to receive approximately $500,000 next year in revenue sharing funds covering the period October 1, 1980 through Septem- ber 30, 1981. This amount is only an estimate and is less than what the City of Baytown received for the fiscal year 1979 -80. This recommendation is based on the assumption that the City will continue to receive revenue sharing funds. Congress has not enacted new legislation which will extend the Revenue Sharing program beyond September 30, 1980. The following items were recommended for inclusion in the Entitlement XII Revenue Sharing Budget: 1. Demolition of Structures - $25_,000. These funds would be used to continue demolishing buildings under the Urban Rehabi- litation Program. 2. City Hall Handicapped Facilities - $6,000. These funds would be used to bring City Hall into compliance with federal standards relating to use of public buildings by handicapped individuals. Modifications would be made in restrooms, drinking fountains, and public telephone facilities. 3. Community Center - $13,350. These funds would be used to provide fans in meeting rooms and install facilities for the handicapped in the Community Center. 4. Water Meters - $25,000. These funds would be used to continue the meter replacement program. Around 800 meters would be purchased with these funds. 5. Library Materials - $20,000. These funds would be used to buy library books and materials to help expand the collection of the Sterling Municipal Library. 6. Nutrition Center - $15,_000. These funds would be used to pay for the cost of operating one of the vans at the Nutrition Center for a one -year period. Operating costs include driver's salary, fuel, maintenance and insurance. 7. Museum - $15,000. These funds would be used to enable the Baytown Tri-storical museum to continue providing museum service to the citizens of Baytown. 8. Sliplining - $50,000. These funds would be used to rehabilitate sanitary sewer lines that have collapsed. 9. West District Wastewater Treatment Plant Construction - $325,650. These funds would be used to help pay for the City's matching share of the cost of building the new West District Wastewater Treatment Plant. 00826 -8 Minutes of the Regular Meeting - August 26, 1980 10. Audit - $5,000. These funds would be used to pay for costs associated with the Revenue Sharing audit. Councilwoman Wilbanks inquired as to the number of water meters that have been replaced within the last two years. Pete Cote, Utility Office Manager, explained that approximately 1,700 residential meters were replaced and in excess of 50 large meters. Councilwoman Wilbanks stated that if the city were able to purchase 800 meters at a time, it would be reasonable to expect that the meters be installed within the next year. Mr. Cote explained that at the present time, his department is in- stalling approximately 120 - 140 meters per month and it would be easy to install 800 within a year. Mayor Hutto stated that it was his understanding that the city was going to replace only the older type meters and not some that were purchased during the last few years. Mr. Cote ex- plained that meters that are being replaced are those meters that have failed and the older type, mechanical drive meters. Mr. Lanham explained that the Administration has given priority to the replacement of the large meters. Councilman Simmons inquired about the $5,000 proposed allo- cation for an audit and inquired if this audit is an independent audit or an in -house audit. Mr. Lanham explained that the audit is an independent audit which is conducted as part of the city's regular annual audit. It is a requirement that revenue sharing funds be audited and in the past, the fee for the audit was paid out of the general fund. Jocelyn Wesselhoft, director of the senior citizens nutri- tion center at the First Presbyterian Church, appeared to answer any questions that Council might have concerning the operation of the van that the city has funded during the first year of opera- tion. The van is carrying an average of 20 people per day to and from the nutrition center. Besides providing transportation to the nutrition center, it carries older adults to the Cerebral Palsy Center for therapy and takes them on shopping trips. Also, the van has been used to transport nursing home residents to a picnic. The van was also put on standby recently for use in evacuating a nursing home during the hurricane threat. The van has also been used for two trips to the new dental clinic in Houston and three people without any teeth at all are now in process of getting dentures. During this past year, the van has been covered under warranty. Mrs. Wesselhoft felt that the $15,000 revenue sharing allocation will be adequate for the next year's operation. In response to an inquiry from Council, Mrs. Wesselhoft ex- plained that the main support for the center comes from First Presbyterian Church. The center was assisted with the purchase of a van by the Westminister Presbyterian Church. The United Way is assuming the salary for two part -time employees at the rate of one -third each year because First Presbyterian Church supplied the seed money for the first two years of operation. Now, the United Way is going to take over those salaries. Mrs. Wesselhoft does seek assistance from other civic groups and has received funding from the Junior Forum and the Service League, etc. Councilwoman Wilbanks inquired how long the van has been in use in Baytown? Mrs. Wesselhoft responded that the van has been in operation for eight months. Mrs. Wesselhoft also stated that the van driver is planning to take a course in sign language in order to help her communicate better with the passengers. Robert L. Wright, President of the Bay Area Heritage Soci- ety, appeared to resubmit their earlier request for $20,000 in revenue sharing funds for the Baytown Historical Museum. A total of $15,000 has been recommended by the city administration. Air. Wright reported that the museum is drawing increasing participa- tion from the community. More than 5,000 persons, including some 1,000 school pupils, toured the museum in the past year. Also, a number of special events were held at the museum, including field 11. Minutes of the Regular Meeting - August 26, 1980 trips for youngsters. Recently, the museum has acquired some material that needs additional protection beyond what is avail- able. The Bay Area Heritage Society would like to secure fire- proof cabinets to store this material. The Bay Area Heritage Society would like to hire professional help to advise the Board so that the museum can be expanded. The Society has begun to receive outside requests. In fact, Jean Shepherd is visiting with the Chambers County Heritage Society tonight. Councilman Philips stated that recently he had visited the museum and is encouraged by what the Bay Area Heritage Society is trying to do with the museum. With no further comments to be heard, Mayor Hutto declared the public hearing to be closed. Hold Public Hearing on Proposed Annexation of 163 Acres More or Less Located North of Massey Tompkins Road Between North Main Street and the Subdivisions of Chaparral Village and C. A. Wright (7 :30 p.m.) Mayor Hutto opened the public hearing at 7:30 p.m. on the proposed annexation of 163 acres more or less located north of Massey Tompkins Road between North Main Street and the subdivi- sions of Chaparral Village and C. A. Wright. Mr. Lanham reviewed the area of the proposed annexation with Council. The area that is being proposed for annexation is bounded on the west by North Main, on the south by Massey Tomp- kins Road and on the east by Chaparral Village. This is the tract of land where a portion is to be developed into a residen- tial subdivision. The developer has requested annexation because he would like to have city services. The Administration has also included other areas in that vicinity that should be part of this annexation. Presently, the City has a contract to construct a sanitary sewer line along Barkuloo Road and the city should be able to provide that service within the next few months. There was no one present who desired to speak; therefore, Mayor Hutto closed the public hearing. Ordinance - Adding the Newly Annexed Area Along Garth Road Between Baker Road and Interstate 10 to the Proper Council District At the last meeting, the City Council completed annexation of property along Garth Road between Baker Road and Interstate 10. It is necessary to assign this newly annexed property to a Council District. This property abutts Council District No. 6. The Administration recommended approval of the proposed ordinance which adds the newly annexed area to Council District No. 6. Councilman Johnson moved for adoption of the ordinance; Councilman Philips seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2960 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN ADDING CERTAIN PROPERTY TO COUNCIL DISTRICT NO. 6; REPEALING ORDINANCES INCONSISTENT HEREWITH; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. 00826 -10 Minutes of the Regular Meeting - August 26, 1980 Ordinance - Adding the Newly Annexed Tierra Del Oro Subdivision to the Proper Council District At the last meeting, City Council completed the annexation of Tierra del Oro Subdivision to the City of Baytown. This sub- division abutts Council District No. 4. The Administration recommended approval of the proposed ordinance which adds the newly annexed area to Council District No. 4. Councilwoman Wilbanks moved for adoption of the ordinance; Councilwoman Caffey seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2961 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN ADDING CERTAIN PROPERTY TO COUNCIL DISTRICT NO. 4; REPEALING ORDINANCES INCONSISTENT HEREWITH; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. Ordinance - Amending the Contract with City of Houston for 1980 Senior Citizen Taxi Service Program The City of Houston has assigned the wrong account number to the grant for the City of Baytown Senior Citizen Taxi Program. The City of Houston administers these funds through the Areawide Agency on Aging, which is a division of the Mayor's Office of the City of Houston. No other change is made in the terms of this contract. The Administration recommended approval of the pro- posed ordinance which changes the account number for the 1980 Senior Citizen Taxi Service Program. Councilman Philips moved for adoption of the ordinance; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None ORDINANCE NO. 2962 AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST TO AN AMENDMENT OF THE CONTRACT WITH THE CITY OF HOUSTON FOR THE SENIOR CITIZENS' TAXICAB PROGRAM AND PROVIDING FOR AN EFFECTIVE DATE. Ordinance - Authorizing Final Payment to McKey Construction Company for Ward Road Storm Drainage Project The proposed ordinance authorizes final payment to McKey Construction Company for the Ward Road Storm Drainage Project. Total cost of this contract was $278,877.65 which includes an overrun of $29,247.65. Mr. Lanham explained that he has a detailed list of the overruns and approximately $23,000 repre- sents additional concrete work. Final payment of $28,667.47 remains. The Administration recommended approval of the ordi- nance which authorizes final payment to McKey Construction Company. Councilman Philips moved for adoption of the ordinance; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Minutes of the Regular Meeting - August 26, 1980 Nays: None ORDINANCE NO. 2963 00826 -11 AN ORDINANCE APPROVING AND ACCEPTING CONSTRUCTION OF McKEY CON- STRUCTION AND EQUIPMENT, INC. BY FINDING THAT THE IMPROVEMENTS ARE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT; ACCEPTING THE CONSULTING ENGINEERS' CERTIFICATE OF FINAL ACCEPTANCE; AUTHO- RIZING THE FINAL PAYMENT TO THE SAID McKEY CONSTRUCTION AND EQUIPMENT, INC., AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Consider Request to Make Median Cut on North Main Near Proposed Briarcreek Subdivision The Administration suggested that action be delayed on this item until the Planning Commission takes action on the plat. This plat was approved by the vote of two members of the Planning Commission with five members abstaining. Since that time, the City Attorney has ruled that that vote was invalid. Median cuts do not have to go to the Planning Commission for approval, but the Planning Commission would need to approve the plat for the subdivision to establish the location of the street before City Council can determine where the median should be. The proposed median cut would be on North Main at the proposed Podea Boulevard. In the past, median cuts have been made at the expense of the developer. Mayor Hutto suggested that in the future, left turn safety lanes be provided when median cuts are made. Council expressed concern that five members of the Planning Commission abstained from voting on the plat for Briarcreek. Council felt that the members of the Planning Commission should have the facts before them and vote according to those facts. Bill Cornelius, Director of Planning and Traffic, in response to an inquiry from Council, stated that the Planning Commission meets on Mondays and a packet of information pertaining to items on the agenda is forwarded to each member on Tuesday prior to the Monday meeting in most cases. Councilman Philips also suggested that Council look at having drainage work done as part of development of a subdivi- sion. No action was taken on this item. Discuss Specifications for City Depository Contract Until recent years, the general rule for cities taking bids for a depository contract has been to ask for and receive guar- anteed fixed interest rates on time deposits for one or two years. Pat Tobin, Director of Finance, has made a survey of what other cities are doing and more and more cities are taking bids on some basis other than a fixed -rate bid. Mr. Tobin reviewed with Council some of the practices of other cities and reviewed the Administration's recommendation. Mr. Tobin explained that he surveyed six cities, the largest being Fort Worth with a popula- tion of over 400,000 and the smallest, Freeport, with a popu- lation of 13,000. The majority of the cities surveyed have tried to tie their rates on time deposits to some form of the treasury bills. In the past, the City of Baytown has requested bids on a fixed rate. One of the problems toward the end of the contract is what to do with the funds maturing during the last few weeks of the contract. Also, during the course of the year when the city receives small amounts of money, what to do with those funds for a short period of time. The cities that were surveyed indi- cated that what they do in this regard is to have a re- purchase agreement with the banks whereby funds of less than $100,000 which are to be deposited for less than 30 days are utilized to purchase collateral that the bank has on hand in excess of its needs for a stipulated rate to be cashed in at a future date. 00826 -12 Minutes of the Regular Meeting - August 26, 1980 Interest received on loans or time deposits within the general fund represents the fifth largest resource of the city and this year within the general fund, that amount is estimated to be approximately $300,000. Currently, the city has approximately $9,700,000 on time deposits which includes all funds except BAWA. The $300,000 would represent approximately 163% increase over last year. It is important to note that the city needs a very flexible policy in order to administer the time deposits. During the last year, the market has experienced a high degree of fluc- tuation. The city or the finance department is caretaker for taxpayer dollars and extreme care and diligence must be taken in investments. Therefore, Mr. Tobin recommended that the city bid its deposits on some form of the treasury bill rate. The Administration had placed at the Council table a pro- posed bid form which is the same as that used in the past with two exceptions. Previously, the city had listed various lengths of time for funds to mature and requested the bank bid a fixed interest rate. On the proposed bid form, the form simply states that the depository agrees to pay to the City of Baytown interest on time deposits of $100,000 or more at a rate equal to the interest rate for U. S. Treasury bills of like maturity, plus whatever percentage the bidder wants to include. That is where the bid process comes in and the bidder can simply bid the trea- sury rate or the treasury rate plus some percentage points above it, depending on how competitive they want to be. The rate is determined by the rate of treasury bills as published in the prior day's Wall Street Journal for treasury bills of the same length of maturity. Mr. Strong explained that the other change that is mentioned on the bid form is that this would not be an exclusive account. The city could maintain time deposits in other banks and institu- tions. The contract would also contain a provision allowing the city to participate in these re- purchase agreements with the depository bank or another bank located within the city limits. Mr. Lanham pointed out that the depository contract would be for two years rather than one year. The city's current contract provides an interest rate of 9.55% which was a good rate; how- ever, if the rate had been tied to the treasury rate last year, the rate would have gone as high as 15 or 16 %, with a low of 7 %. Mr. Lanham stated that with the fluctuating rates, banks have difficulty determining what kind of fixed rate to bid. Mayor Hutto stated that in the proposed bid form, he does not see anything that would prohibit a bank from outside the city limits bidding on the depository. He inquired if it were possi- ble to restrict banks from outside the city limits to bid on the depository contract. The City Attorney explained that he did not have the statutes with him but he felt one of the requirements on city depository is that the bidder be a local depository. Councilman Philips inquired if the bidder could be a savings and loan establishment. Mr. Tobin explained that in the course of time, there will be some very extreme changes in the banking business, and by having the provision of a non - exclusive contract on the time deposits, this would allow cities to go to savings and loan institutions if the law is changed. Mayor Hutto inquired if Mr. Tobin felt that the local banks would be willing to bid the new form? Mr. Tobin responded that he felt that the banks would be willing to bid the new form to some extent. He did not feel that the new bid form will answer all of the city's needs and in trying to be really fair with all of the banks, he contacted some of the banks and the banks indi- cated they would be willing to share the city's money. Mr. Tobin stated that one of the problems of the city is that state law dictates that the city has to go out for bids on the regular bank accounts. However, the city can deviate and take quotes for bids everytime the city has $100,000. Mr. Tobin felt that this is what the majority of the institutions would like. At any one time, an institution may not need or want $100,000 or $500,000. W 00826 -13 Minutes of the Regular Meeting - August 26, 1980 *Councilman Johnson gone. In response to questions from Council, the Administration explained that rather than borrowing small amounts, past proce- dure has been to borrow between funds. However, cities do have the authority to borrow for short terms but this would probably take Council action. Councilman Philips felt that the revised bid form for the depository contract is in keeping and in tune with the current money market situation. Therefore, Councilman Philips moved for the adoption of the procedure; Councilman Cannon seconded the motion. Mr. Lanham called attention to one factor - -the specified rate must be equal to or above the rate for U. S. Treasury bills and a lesser rate shall be cause for rejection of the bid. The vote follows: Ayes: Council members Philips, Simmons, Wilbanks, Caffey and Cannon Mayor Hutto Nays: None Budget Hearinz Continued Councilman Simmons brought to Mayor Hutto's attention the fact that there were two gentlemen in the audience who had arrived late, but would like to address Council concerning the budget. Mayor Hutto recognized Mr. E. A. Brigham, who stated that he came to the meeting to hear comments made by Council on the proposed budget. Mr. Brigham stated that he had reviewed the city budget and had four general comments that he would like to make. Mr. Brigham stated that it is his understanding that there is a 13% pay increase included for city employees of the City of Baytown. Mr. Lanham responded that the city's fiscal year is October 1 through September 30 and the employees had received a 9.5% pay increase during the last budget year. Mr. Brigham stated that as a private citizen and a worker who depends on salary too, he cannot really fault the 13% pay raise, but he felt the raise is a little high compared to the increases being granted in industry. Mr. Lanham stated that the consumer price index in the Houston area, as of the end of June, was 13.2% which is the figure the Administration used to base proposed salaries. Mr. Brigham stated that as he looked over the city budget and got an explanation of the various departments, it seemed to him that in the future, there may be some opportunity for re- organization of some of the departments and clarification of some of the responsibilities. He stated that he noticed two or three particular departments where there was an overlapping of respon- sibilities. Mr. Brigham suggested that revenue sharing funds be treated as part of the regular budget because those are tax dollars. He felt that the budget should be budgeted on a need basis and revenue sharing funds, in his judgment, ought to be applied to that budget and not treated differently. Mr. Brigham also suggested that the city forego the expense of repeated elections when there has been no basic change to take place in the issues involved in the election. 00826 -14 Minutes of the Regular Meeting - August 26, 1980 Recess and Reconvene Mayor Hutto recessed the open meeting into executive session to discuss personnel matters and pending litigation. When the open meeting reconvened, the following business was transacted: Consider Appointments to Joint City - School Parks Committee Councilwoman Caffey nominated Bobby Rountree and Wayne Gray to be appointed to the Joint City - School Parks Committee. Coun- cil voted unanimously to approve the nomination. Adjourn With no further business to be transacted, Mayor Hutto adjourned the meeting. Karen Petra, Deputy City Clerk APPROVED: 2z�� v � Eileen P. Hall, City Clerk 1