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1981 08 27 CC Minutes10827 -1 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 27, 1981 The City Council of the City of Baytown, Texas, met in regular session on Thursday, August 27, 1981, at 6:30 p.m. in the Council Chamber of the Baytown City Hall with the following attendance: Fred T. Philips Jimmy Johnson Perry Simmons * *Mary E. Wilbanks * *Roy L. Fuller Absent: Allen Cannon Emmett 0. Hutto Fritz Lanham Randy Strong Eileen P. Hall Councilman Councilman Councilman Councilwoman Councilman Councilman Mayor City Manager City Attorney City Clerk The meeting was called to order with a quorum present and the invocation was offered, afterwhich the following business was conducted: Minutes Councilman Johnson moved for approval of the minutes for the meeting held August 13, 1981; Councilman Philips seconded the motion. The vote follows: Ayes: Council members Philips, Johnson and Simmons Mayor Hutto Nays: None * *Councilmembers Wilbanks and Fuller now present. Councilman Philips requested that the Administration respond to the petition presented at the last Council meeting concerning problems at Bergeron Park on Kentucky and Foote Park on West Main. Mr. Lanham stated that a report would be made at a future meeting. Councilman Philips responded to an inquiry made by Councilwoman Wilbanks concerning action of Council regarding the recommendation of Baytown Library Board in response to First American Bank's request to acquire city -owned property. He stated that a committee composed of the two Council members appointed by Mayor Hutto, along with two representa- tives of the Baytown Library Board met as a city committee with representatives of First American Bank. He also reported that the meeting was very productive. Mr. Lanham reported that the representives of the Library Board are Vic Glass and David Kad.jar. Pea titinnQ The Administration had received a petition signed by residents of the 1200 block of Olive who are requesting relief from flooding during heavy rains. 10827 -2 Minutes of the Regular Meeting - August 27, 1981 Mr. Lanham reported that this area would probably be included in the same drainage study as the Greenwood area. In response to an inquiry from Council, Mr. Lanham stated that the city is currently in the process of studying drainage problems, not only in the Greenwood area, but other areas which have been called to the attention of the Administration. Councilman Johnson moved that the petition be duly accepted and noted; Councilwoman Wilbanks seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None Mr. Lanham stated that he was mistaken, the 1200 block of Olive is not in the vicinity of Greenwood; it is in the vicinity of Danubina and will, therefore, be a separate study. City Manager's Report Senior Citizens Taxicab Program - The Senior Citizens Taxicab Program was recently evaluated by the Area Agency on Aging and the City of Baytown was given an excellent report. Houston Lighting and Power Company Statement of Fuel Cost Adjustments for September - Council was furnished with a copy of a letter from Jim Schaefer, District Manager of Houston Lighting and Power Company, setting forth statement of cost comparisons for the billing month of September, 1981. The cost for a user of 2,000 KWH for September will be $129.82 compared to $134.31 for August and $142.41 for July. Bond Program - The Administration furnished Council architectural and engineering firms that have indicated an interest in being involved in some of the capital improvements work. In the past, Councils have elected to interview some of the firms whose names were submitted and from those interviews made final determinations. Councilman Philips stated that Council needs to have some sort of plan and selections need to be made on basis of those most qualified. Mr. Lanham suggested that perhaps Council would like to discuss this in a work session and perhaps even tentatively select firms to interview. Fourteen engineering firms have expressed an interest and four architectural firms. Councilman Fuller stated that Council would also need to look at the various firms' work loads since timing on these bond projects is very important. Councilman Simmons suggested that two points should be verified: (1) the firm's current work load and (2) the firm's past history. Councilman Philips stated that Council would need to look at what projects are to be considered first to determine which firms would best qualify. 10827 -3 Minutes of the Regular Meeting - August 27, 1981 Council scheduled a work session for 4:00 p.m., Tuesday, September 1, 1981. Related to that is the sale of bonds. Council has approved the development of a plan to sell 5.6 million in bonds in September. The bond market today is probably at its worst. San Antonio sold double "A" rated General Obligation Bonds at 11.9%. Mr. Masterson, the City of Baytown's bond consultant, indicated that if Baytown sold bonds today the rate would be 11.25% or 11.500. Baytown bonds would sell for a lower rate than San Antonio because the average maturity is less. Included in the first sale are funds that will be needed for preparation of plans and specifications and construction costs for several of the projects. The city could move ahead on the project by selling less -than originally anticipated which would provide the funds to get the engineering work underway, along with necessary funding for purchase of rights of way. Mr. Lanham suggested that a $2,000,000 sale would be sufficient to accomplish engineering and purchase of rights of way. However, he emphasized that there are no assurances that several months from present, when the city needs to sell the next installment, that the bond market will have improved. Councilman Philips stated opinion from another financial that the Administration needed constitutes the $2,000,000. that he would like to have an consultant. He also suggested to provide by line item what Mr. Lanham stated that he could give Council tentative figures -- $230,000 is planned for land and plans for the fire station; for water, the original plan was $2,000,000, but $200,000 should be enough to get the plans underway. For sewer improvements, $1,150,000 is needed because of the grant for the West District Improvements; $170,000 is needed to continue with the Baker /Bayway project; $250,000 is necessary to move the little league park in time for next season. It is not necessary to sell bonds for street purposes because there are funds remaining in the 1975 Street Bond Fund. Mr. Lanham stated that the Administration could go into more detail on Tuesday, but presently he would like guidance from Council regarding placement of an item on the agenda. Possibly, Council will want to consider the sale of $2,000,000 now and the remainder in a few months when it becomes necessary to have money to award contracts. Councilman Philips stressed the importance of getting the bond program in place and stated inflation will continue for a long while. Mayor Hutto stated that $2,000,000 is a goodly portion of the 5.6 million and the remainder could be sold in a few months. Mr. Lanham stated that for the 1975 bond projects, ^ initially $1,000,000 was sold to get the engineering work underway and then another sale was held to get the plans prepared. There was no delay in getting the projects underway. Councilman Simmons stated that in other words the Council would be doing what is absolutely necessary at this time and wait in hopes that the bond market would improve. Mr. Lanham stated that was correct except that at that point Council may be faced with the prospect of selling at a higher rate or postponing the sale and thereby, postponing 10827 -4 Minutes of the Regular Meeting - August 27, 1981 the project. Council concurred that an item could be placed on the agenda for Tuesday night for Council consideration. West District Sewerage Treatment Plant - The contractor has completed the site work and has performed some of the excavation for the treatment unit. East District - All the work on the East District project is complete with the exception of the lift station which is to be completed by the end of August. Startup should be possible the first week in September. Drainage - In connection with the drainage work, the right of way has been acquired for the Bayway /Baker ditch; therefore, the only necessary task is to finalize the plans and get the county and the city in a position to begin the work. The drainage work on Pecan Manor is 75% complete; Goose Creek Drive is 70% complete. Councilman Philips commended the Public Works /Engineering Department for the completion of the minor drainage jobs as indicated by the report furnished Council. Mr. Lanham mentioned that after the Administration had taken a closer look at some of the minor jobs on the list, it was discovered that no work was necessary. Therefore, those three or four projects are listed as being complete. The Administration plans to come to Council in early September with a recommended list for next fiscal year. . 1981 Street Improvement Program - The contractor has completed Indiana. The curb and gutter work on Kansas is 75% complete; the excavation work and surfacing remain to be done. The sidewalk to Crockett School from Chaparral School is in place. Some cleanup work is needed, but the sidewalk can be used by the students to get to the school. Massey Street is 95% complete. The contractor expects to have that street open by the time school begins on Monday because the street is near Horace Mann School and is utilized by school traffic. Excavation work is underway for curb and gutter at Tejas Park. Signalization of Lynchburg Cedar Bayou at Garth - The signal has been installed at Lynchburg Cedar Bayou at Garth and will be placed in service either tomorrow or Monday. Demolition - Council was furnished with a copy of a letter from the owner of property on Pearce Street who has requested more time to demolish the structure. This is on the agenda for the Urban Rehab Board to consider. The Administration will recommend to that Board that the extension be given. Questions and Comments Regarding City Manager's Report In response to an inquiry from Council, Ed Shackelford explained that when work began on Kansas Street, the existing curb and gutter was not on grade but that situation has been corrected which resulted in the curb and gutter being lower than the existing roadway in some cases. However, this will not hamper drainage in that area. 10827 -5 Minutes of the Regular Meeting - August 27, 1981 In response to an inquiry concerning topless dancers at Club Oasis, the City Attorney explained that the city does not regulate businesses that sell alcoholic beverages due tc state statute. Hold Public Hearing on Proposed 1981 -82 Budget (7:00 p.m. Mayor Hutto announced that the public hearing on the proposed 1981 -82 City of Baytown Budget was open and in- formed those present that there was a register in the hallway to be signed by those desiring to speak. Mayor Hutto requested that Fritz Lanham, City Manager, summarize the proposed budget. Mr. Lanham reported that the proposed budget for the fiscal year 1981 -82 totals $27,039,452 which represents almost $3,400,000 increase over the current year's budget or a 14.38% increase. This is less than half the percentage this year's budget was increased over last year's budget. The 14.38% increase is due in part to inflation, plus a limited number of increases in levels of services to be provided. The pay plan adjustment for city employees is a major adjustment. Also, the Administration is recommending some additional employees next year. In the general fund, the recommendation is to add 24J new positions with the majority of these being in the public safety area - -9 addi- tional fire department positions and 11 additional police department positions, with the vehicles and other things that go along with public safety, represents a substantial part of this increase. The recommendation includes an increase in the level of service to be provided by streets and drainage department in terms of street cleaning, right of way mowing and maintenance of streets. Inspection services on construction are to be increased. In the water and sewer department last year at this time there was a major increase-because of the conversion to surface water. The increase recommended this year is not nearly so large. It is only 7.3% over the current year's budget. Pay plan adjustment is also being recommended for the water and sewer department plus six additional employees. Two of the six will be assigned to water distribution so that the city can respond more quickly to water line breaks and leaks. Two additional people will be added to the sanitary sewer collections and one additional person will be provided at the sewerage treatment plant that is under construction to monitor construction. Once the plant has been completed, there will be several new hires. There will be one additional person hired for the collections office. In solid waste collections the recommendation is that an additional route be added with the addition of one truck and a person to operate that vehicle. In the general fund, interest and sinking fund, because of bonds that have been sold in the past and Certificates of Obligation that have been sold, the need for funds has increased. With respect to revenues, a $ .50 increase has been recommended in the charge to collect garbage and trash which will increase the monthly charge from $5.50 to $6.00. A $ .04 reduction is being recommended in the tax rate. This year the tax rate is $1.28 based on property being assessed at 5076 market value. Next year, property must be assessed 10827 -6 Minutes of the Regular Meeting - August 27, 1981 at 100% market value; therefore, the rate that would be comparable to the $1.28 would be $ .64. The Administration is recommending that the tax rate be decreased to $ .60. That reduction is not enough to off -set the increase in taxes that most citizens will pay as a result of the reappraisal program. Most homes have received an increase in value because the last appraisal was based on 1977 values, but now all property is at current appraisal value. Jocelyn M. Wesselhoft, Director of Baytown Senior Citizens Nutrition Center, appeared to request continued support of the van which transports senior citizens and handicapped persons of the community. The request is for $15,000 to cover the driver's salary, gasoline and oil, maintenance and insurance necessary to operate the van. Mrs. Wesselhoft mentioned that the center has been able to keep costs for operation of the van at $15,000 and will attempt to do so in 1981 -82. Council commended Mrs. Wesselhoft for providing this service to the elderly and handicapped without increased costs. In response to an inquiry from Council, Mrs. Wesselhoft explained that the van transports between 15 and 20 persons per day to the nutrition center. However, the van is equipped to transport the handicapped as well and will transport the elderly and handicapped to doctor's appointments, to shop, etc. Refugio Martinez, 3126 Nebraska, representative of DeZavala Neighborhood Council, appeared to request budgeted funds to assist in handling the trash, garbage and debris problems present in the old Baytown area on both public and private property. Mr. Martinez had no specific estimate, but requested that money be allocated in the budget to provide city departments that would be involved with adequate staff to combat those type problems. He mentioned that a list of violations had been compiled by the DeZavala Council which will be presented September 24, 1981, along with a petition. Mary Rose Myers, 5009 Goose Creek Drive, appeared on behalf of the Retired Senior Volunteer Program which is in its eighth year of operation. The program is representative of 115 volunteers who have served 17 different non - profit organizations this year. RSVP is requesting $3,186 in budgeted funds to support this program. This is the same amount that was budgeted last year. Jean Shepherd, 148 Linwood, appeared as representative of residents of Brownwood to request that Council consider an amount to be placed in the budget to effect drainage improvements along Brownwood Drive. During heavy rainfall, the pumps are inadequate to handle the large amount of drainage that flows to the Brownwood Drive ditch. Mrs. Shepherd stated that an earthen berm could be placed to direct water into the bay which would keep 25 to 30 homes from flooding during heavy rains. This would be a fairly inexpensive solution. Mr. Lanham responded that the Administration intends to build the berm. It is only a question of being able to move the necessary equipment and allocating time to perform the work. 10827 -7 Minutes of the Regular Meeting - August 27, 1981 Mr. Lanham introduced a letter from Bill Eiland, Director of the Baytown Housing Authority, which sets forth Mr. Eiland's request that $55,000 be allocated from the 1981 -82 City of Baytown Budget -- $32,000 to pay for the emergency gas line repairs at Archia Courts and $23,000 for loss of subsidy effective July 1, 1981 when Sam Houston and Lincoln Courts were removed from the low -rent public housing program. In his letter, Mr. Eiland indicates that he will appear before Council at a later date to document fully the Housing Authority's needs. Since there were no further questions or comments, nor other persons desiring to speak, Mayor Hutto declared the public hearing on the budget to be closed. Hold Public Hearing on Proposed Expenditure of Revenue Sharing Funds from Entitlement XII, Entitlement XIII and Accumulated Interest (7:15 p.m.) Mayor Hutto announced that the public hearing on the proposed expenditure of revenue sharing funds from Enti- tlement XII, Entitlement XIII and Accumulated Interest was open and informed those present that there was a register in the hallway to be signed by those desiring to speak. Mayor Hutto requested that the City Manager summarize the proposed revenue sharing budget. Mr. Lanham explained that the Administration expects to have available a total of $703,623 in revenue sharing monies as follows: Entitlement XIII $ 596,103 Unappropriated (Interest) 54,000 Unappropriated (Entitlement XII) 53,520 $ 703,623 Regulations relating to revenue sharing require that the City Administrator hold a public hearing in order to develop recommendations for Council and then for Council to hold a public hearing prior to making final determination. The City Manager's recommendations follow: 1. Fire protection - $12,300 to purchase additional monitors and radios for volunteers and to complete the volunteers meeting room at Station No. 6. 2. Telephone system for City Hall - $40,000 to replace current system which is overloaded. 3. Water meter vaults and bypasses - $11,000 to cover the installation of approximately thirty large meter vaults, the materials for meter bypasses and labor. These installations would give the capability of testing, replacing, and maintaining large meters. 4. Oversizing water and sewer lines on Garth and Raccoon - $90,304 to provide the city's share of the costs. 5. Sewer lift station monitors - $25,000 to install monitors at five large lift stations to provide 24 -hour monitoring at the lift stations. 10827 -8 Minutes of the Regular Meeting - August 27, 1981 6. Sewer line sliplining - $100,000 to supplement bond funds that are in the first year of the Capital Improvements Program because there are several sewer lines in the city that need to be sliplined as soon as funds can be made available. 7. Street reconstruction - $255,519 to supplement the funds in the proposed 1981 -82 budget for street reconstruction. 8. Establishment of bench marks - $55,000 to establish a bench mark every 2,000 -3,000 feet in street rights of way. A detailed description and an assigned number would be included. This system would enable the Engineering Department to give accurate information to citizens concerning the flood hazard area, provide information to engineers and surveyors working in Baytown, and provide information needed to implement one of the recommendations of the Tax Equalization Board. 9. Fencing - Gray Sports Complex - $8,500 to provide fenced, protected warm -up areas for softball teams. 10. Library - $30,000 to purchase library books and materials to continue to expand the collection. 11. Word Processor - $9,000 for Legal Department to replace the present Mag Card II typewriter. 12. Demolition of Structures - $50,000 to be used to continue the demolition of buildings under the Urban Rehabilitation Program, including parts of the Brownwood Subdivision. 13. Museum Assistance - $15,000 to continue to provide museum services to the citizens of Baytown. 14. Audit - $2,000 to pay for the audit of revenue sharing funds. Mr. Lanham reminded Council that revenue sharing funds may be used for any purpose that city funds may be used. Councilwoman Wilbanks requested that the Administration provide Council with information concerning the number of participants under the volunteer firemen's program. During budget sessions last year, Council was looking at a 2 -3 year program regarding purchase of radios for volunteers. Steven Donnelly, 4503 Ponderosa, appeared as a representative of the Baytown Volunteer Fire Department to explain that the request for two additional two -way monitors is to provide communications between those persons fighting the fire and the driver. Since the fire department is considering allocating certain times of the day to the volunteers to man Unit Nos. 51 and 61, the volunteers would definitely need the monitors to provide good communications at the scene of a fire. Wendell Romans, 1507 Narcille, appeared to explain that an expenditure of $1800 would buy six pocket monitors to replace monitors which are in a state of disrepair. Mr. Romans stated that this purchase would enhance attendance at fires and would definitely be beneficial if Unit Nos. 51 and 61 are assigned to volunteers certain times of the day. 10827 -9 Minutes of the Regular Meeting - August 27, 1981 Lynn Hughes, 1700 Narcille, representative of Baytown Area Women's Center, appeared to request funding for that center. Mrs. Hughes explained that a group of individuals are attempting to establish a shelter for battered women and their children. There is a need for this facility as established through records of the Baytown Police Department. Last year almost 400 cases of battered women were reported to the Baytown Police Department. State -wide averages according to the Criminal Justice Center at Sam Houston State University, indicate that only twenty (20%) percent of women report such occurrences. If that figure can be related to Baytown, that means that there are approximately 2,000 victims. Since this work has begun, several calls have been received from local hospitals and doctors who have patients that they would like to refer. At present, there is no shelter, but the search is being made to locate one. What the group is requesting is $29,600 to cover renovation and maintenance, utilities and food. The Houston shelter has been handling Baytown cases and that shelter is at full capacity at all times. Each day the Houston shelter must turn away 8 -10 women. The aim is to save lives and provide counseling for all members of the family who desire help. In response to an inquiry from Council, Mrs. Hughes stated that the United Way had been contacted during the summer when no approved budget was available. However, the United Way had approved funding for a director's salary and some office expenses. Councilwoman Wilbanks mentioned that projects such as this have come through the Houston - Galveston Area Council and there are some state funds available to aid in this, but in most cases it is after the center has been established. Susan Hodson, Director of the center, responded that the center will be eligible for funding in 1983. Refugio Martinez, 3126 Nebraska, appeared to request funding for the old Baytown area of the city since this area has existing structures which are eyesores, nuisances and /or threats to public health. Mr. Martinez requested consider- ation of revenue sharing funds in the event this problem cannot be attacked through use of budgeted funds. Jean Shepherd, 148 Linwood, appeared as representative of the Bay Area Historical Society to report to Council on that group's activities since that group is requesting continued support of the Baytown Museum in the amount of $15,000. In the 1980 -81 period, over 4,000 persons registered at the museum. Ten cub scout, groups toured the museum. The scouts must tour the museum after the museum is officially closed. Nine different clubs or organizations have utilized the museum to hold their meetings which are also held during hours when the museum is not officially open. The museum is officially open from 1 :00 to 5 :00 p.m., Tuesday through Friday and on Sunday from 2:00 to 5 :00 p.m. Every spring there is a tour for the Texas history students and thus far, 1200 Texas history students have toured the museum. Other 10827 -10 Minutes of the Regular Meeting - August 27, 1981 than the 1200 Texas history students, 600 elementary school students have toured the museum during times when the museum is not officially open. There were six summer programs for ages 9 through 11 with 20 in each group. The program consisted of picnic lunch at different historical sites. There were 18 presentations made to local organizations through the museum speaker's bureau. There were five programs of special interest to the public at the museum through the year and there were four special exhibits. Mexican Americans have the first day of'the Posada at the museum. The museum has been toured by five historical groups outside the city with most favorable comments. The museum has continued with the part time employee and was able to get the professional curator that worked at the Museum of Natural Science to work for the Baytown Museum. This person is not a full time employee, but does work on the weekend. The museum has almost completed its cataloguing and hopes to apply next year to be a fully accredited museum. Once the museum is accredited, this will provide a better avenue to obtain grant funds. The museum conducted a home tour and had a booth at the Bicentennial Park from which two events $5,000 was raised. Since there were no further questions or comments, nor other persons desiring to speak, Mayor Hutto declared the public hearing on revenue sharing to be closed. Consider Proposed Ordinance, First Reading on Proposed Annexation of Property North of Massey Tompkins Road The proposed ordinance will institute annexation proceed- ings on the scaled -down area that was discussed at the last Council meeting. Persons appeared at the public hearing to inform Council of large vacant tracts and requested that those large tracts be excluded from annexation. Therefore, for the most part, only areas that are occupied are being recommended for annexation; however, the narrow strip that was discussed by Mr. Wright is included in this annexation. The Administration recommended approval of the ordinance. Councilman Philips moved to adopt the ordinance; Council- man Fuller seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None ORDINANCE NO. 3213 AN ORDINANCE PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, AND THE ANNEXATION OF PROPERTY NORTH OF MASSEY TOMPKINS ROAD, WHICH SAID TERRITORY LIES ADJACENT TO AND ADJOINS THE PRESENT BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS. 10827 -11 Minutes of the Regular Meeting - August 27, 1981 Consider Proposed Ordinance, Authorizing Change Order No. 1 to Raccoon Drive Water and Sanitary Sewer Utility Extension Contract The Administration has developed a change order for Council consideration on the Raccoon Drive Water and Sanitary Sewer Utility Extension Contract. The total amount is $6,503.03. The change order has resulted from the fact that before construction began, the Administration was notified that the contractor had been notified by the County that a maintenance bond would be required. Also, Harris County required different type of bracket.attachments for the water line on the bridge crossing Carey's Bayou which added $2,814.28 to the contract. The water line had to be altered because of a conflict with an eight inch water main and a four inch Entex main which required additional bends at a cost of $1,800. The city required the contractor to install two additional valves that were not shown in the original plans which cost $1,400. The Administration recommended approval of the ordinance. Councilman Philips moved for adoption of the ordinance; Councilman Fuller seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None ORDINANCE NO. 3214 AN ORDINANCE AUTHORIZING CHANGE ORDER NO. 1 TO THE CONTRACT WITH JESSE LOVELACE CONSTRUCTION CO. FOR THE RACCOON DRIVE WATER AND SANITARY SEWER UTILITY EXTENSION FOR THE CITY OF BAYTOWN. Consider Proposed Tax Rate for 1981 -81 Fiscal Year and Set Date for Public Hearing In addition to the hearings held this evening on the proposed 1981 -82 City of Baytown Budget and Revenue Sharing Budget, tax laws require that Council hold a hearing on the proposed tax rate. The Administration is recommending that that hearing be held on the $ .60 rate necessary to fund the proposed budget. If Council adopts that rate tonight, Council is adopting that rate for the purpose of that hear- ing, not for the purpose that that rate is to be levied. However, by law notice must be given of the vote and the public hearing. The rate that will be published will be based on the $ .60 compared to the $ .53 rate established by the Tax Assessor which computes to 13.2% increase. The Administration recommended that Council consider holding the hearing in conjunction with the next Council meeting night, but at a different time since the law is explicit that the hearing must be held at a separate time with only that item on the agenda. The Administration suggested that Council may want to hold the regular meeting at 5:30 p.m. and the public hearing on the tax rate at 7 :30 p.m. Related to that there are possible changes in the tentative schedule. Mayor Hutto must be out of the city on September 24 which is a regular meeting night; however, on September 17, the whole Council will be available to meet. The Administration inquired if Council would like to hold a Special Meeting on September 17 to take final action on the tax rate and budget. 10827 -12 Minutes of the Regular Meeting - August 27, 1981 Council must take action on the budget and tax rate before September 27. At the end of the public hearing on the tax rate, Council must take another vote on the proposed tax rate and a second notice will be published, notifying citizens of the meeting where the tax rate will be adopted. If at that public hearing, Council determines to adopt a different rate, the entire procedure must be reinstituted. The Administration recommended that the proposed tax rate be $ .60 and that the public hearing be held at 7 :30 p.m. on September 10, with the regular Council meeting to be scheduled for 5:30 p.m. Councilman Johnson moved to accept the Administration's recommendation; Councilman Philips seconded the motion. The vote follows: Council expressed the feeling that the required notice is deceptive to the public. The vote follows: Ayes: Council members Philips, Johnson, Wilbanks, and Fuller Mayor Hutto Nays: Councilman Simmons Consider Proposed Resolution No. 784, Approving Formation of South East Texas Housing Finance Corporation THE STATE OF TEXAS COUNTY OF HARRIS The City Council of the City of Baytown, Texas, convened in Regular Meeting, open to the public, on the 27th day of August, 1981, in the City Hall, 2401 Market Street, City of Baytown, and the roll was called of the duly constituted officers and members of said City Council, the Mayor and the City Secretary, to -wit: Emmett 0. Hutto Fred T. Philips Jimmy Johnson Perry Simmons Mary E. Wilbanks Roy L. Fuller Allen Cannon Eileen P. Hall Mayor Councilman Councilman Councilman Coucillwoman Councilman Councilman City Secretary and all of said persons were present, except: Councilman Allen Cannon, this constituting a quorum. Whereupon, the following (among other) business was transacted at said meeting: a written resolution entitled: RESOLUTION DECLARING THE WISDOM, EXPEDIENCY, NECESSITY AND ADVISABILITY FOR THE FORMATION OF THE SOUTH EAST TEXAS HOUSING FINANCE CORPORATION; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY. id 6 10827 -13 Minutes of the Regular Meeting - August 27, 1981 was duly introduced for the consideration of said City Council and read in full. Councilman Simmons made a motion that the resolution be adopted. Councilman Philips seconded the motion for adoption of the resolution. The motion, carrying with it the adoption of the resolution, prevailed by the following vote: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None The Mayor thereupon announced that the resolution had been duly and lawfully adopted and was in full force and effect. The resolution thus adopted follows: (See Page No. 10827 -14) 10827 -14 RESOLUTION ISO. 784 A RESOLUTION OF THE CITY OF BAYTOWN DECLARING THE WISDOM, EXPEDIENCY, NECESSITY AND ADVISABILITY FOR THE FORMATION OF THE SOUTH EAST TEXAS HOUSING FINANCE CORPORATION; CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. WHEREAS, as hereinafter recited, it has been proposed that "The South East Texas Housing Finance Corporation" be formed to serve the City of Baytown, (the "Area of Operations "); WHEREAS, the Texas Housing Finance Corporations Act, Article 1269 1 -7, Vernon's Texas Civil Statutes, as amended authorizes nonprofit housing finance corporations for the purpose of providing a means of financing the cost of residential ownership and development that will provide decent, safe and sanitary housing for residents of the Area of Operations; WHEREAS, pursuant to the provisions of the Act, three or more residents of each of the sponsoring political subdivi- sions (the "Incorporators "), each being a citizen of the State of Texas, of the age of 18 years or more, have Made application in writing to the City Council of the.City (the "City Council ") seeking the incorporation under the Act of a public nonprofit housing finance corporation to be called "The South East Texas Housing Finance Corporation" (the "Corporation ") with authority to carry out the public purposes for which it is incorporated, to exercise the powers with which it is invested by the Act and its Article of Incorporat- ion, including the power to issue its obligations to accomplish - such public purposes and powers, as a public instrumentality and nonprofit corporation to exist and act on behalf of, and for the benefit of, the general public, its sponsoring political subdivisions and the State of Texas, and have attached to such application the form of Articles of Incorpora- tion to be used to organize the Corporation for approval by the City Council together with such application; and 10827 -15 WHEREAS, the Act provides that the Corporation may not be formed unless such application and such Articles of Incorporation shall have been first filed with the City Council and the City Council shall have by appropriate AWN resolution duly adopted (1) found and determined that it is wise, expedient, necessary and advisable that the Corporation be formed and (2) approved the form of the Articles of Incorporation to be used in organizing the Corporation; and WHEREAS, the City Council has determined, upon its own motion, to adopt such resolution; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: Section 1: That the City Council officially finds, determines, recites and declares that (1) it is wise, expedient, necessary and advisable that there be provided in the City a means of financing the cost of residential ownership and development that will provide decent, safe and sanitary housing for residents of the City at prices that they can afford; (2) that such residential ownership and development will (a) provide for and promote the public health, safety, morals and welfare; (b) relieve conditions of unemployment and encourage the increase of industry and commercial activity and economic development so as to reduce the evils attendant upon unemployment; (c) provide for efficient and wellplanned urban growth and development including the elimination and Prevention of potential urban blight and the proper coordination of industrial facilities with public services, safe and sanitary housing which they can afford; and (e) preserve and increase the ad valorem tax basis of the City; (3) that the City should cooperate with the other sponsoring political subdivisions constituting the Area of Operations for the mutual benefit of the City and such other sponsoring political subdivisions, and (4) that in order to accomplish the foregoing -2- 10827 -16 public purposes and benefits there should.be formed, pursuant to the application of Incorporators and the attached Article of Incorporation presented therewith to this City Council, a public nonprofit housing finance corporation to be called "The South East Texas Housing Finance Corporation" (the "Corporation ") with authority to carry out the public purposes for which it is incorporated, to exercise the powers with which it is invested by the laws of the State of Texas, its -- sponsoring political subdivisions and its Articles of Incorpor- ation, including the power to issue its obligations to accomplish such purposes and powers, as a public instrumentality and nonprofit corporation to exist and act on behalf of and for the benefit of the general public, the City and the State of Texas. Section 2. That, having considered the application of the Incorporators attached hereto as Exhibit "A", the said application of the Incorporators to this City Council for approval of the formation of the Corporation in accordance with the provisions of the Act is hereby approved; that the Articles of Incorporation presented to this City Council by the Incorporators with said application and attached hereto as Exhibit "B" are hereby approved; and that the Incorporators are hereby authorized and directed to file with the Secretary of State of the State of Texas duplicate originals of the Articles of Incorporation. Section 3: That upon the issuance by the Secretary of State of a Certificate of Incorporation, the Incorporators are hereby authorized and directed, in accordance with the provisions of the Act, to call the organizational meeting of the Corporation after having given at least three days' notice thereof by mail to each director named in the Articles of Incorporation, which notice shall state the time and place of such organizational meeting. -3- 10827 -17 Section 4: That, having given consideration to the qualifications of , to serve as director of the Corporation and having determined that the public good will be furthered by making such appointment, he is hereby appointed by this City Coucil to the initial Board of Directors of the Corporation to serve, subject to removal by the City Council for cause or at will, for such term as is stipulated in the Articles of Incorporation. Section 5: That upon the issuance of its Certificate of Incorporation the existence of the Corporation shall .begin; that the Corporation shall constitute a public instrumentality and nonprofit corporation operating under the name of "The South East Texas Housing Finance Corporation "; and that the Corporation shall be authorized, in accordance with the provisions of the Act, this Resolution and subsequent actions of the City Council, and its Articles of Incorporation to carry out the public purposes and powers set forth therein and herein; provided, however, that the governing bodies of the sponsoring political subdivisions may, either upon (1) the application of the Board of Directors of the Corporation, or (2) their own motion, by appropriate resolutions duly adopted cause the Articles of Incorporation to be amended to alter or change the structure, organization, powers, programs or activities of the Corporation, and may cause the existence of the Corporation to be terminated, subject to the provisions of the Act and to any limitation on the impairment of contracts entered into by the Corporation. Section 6: That, pursuant to the provisions of the Act, upon the issuance by the Secretary of State-of the State of Texas of a Certificated of Dissolution of the Corporation, the Corporation shall thereupon stand dissolved and title to all funds and properties owned by the Corporation at the time of such dissolution shall vest severally in the sponsoring 05E 10827 -18 political subdivisions in proportion to the ratio that each of their populations (as reflected by the 1980 decennial census) bears to their total population (as reflected by the 1980 decennial census). Section 7: That, pursuant to the provisions of the Act, the Corporation shall be a public instrumentality and nonprofit corporation existing and acting on behalf of, but separate and apart from the sponsoring political subdivisions, and the sponsoring political subdivisions shall not be liable for any of the obligations of the Corporation or bound by any actions or proceedings of the Corporation except as may be specifically assumed by the sponsoring political subdivisions. Section 8: That the Mayor and the City Secretary of the City and other appropriate officials of the City are hereby authorized and directed to execute all appropriate Certificates and to do any and all other things necessary and /or convenient to carry out the provisions of this resolu- tion. Section 9: That a duly certified copy of this resolution shall be admissible in evidence in any suit, action or proceeding involving the validity or enforcement of or otherwise relating to any contract of the Corporation, and shall be deemed conclusive proof that the Corporation has been authorized to be formed and to transact business and exercise its powers pursuant to the provisions of the Act. Section 10: That this resolution and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the authorization of the formation and operation of the Corporation. If any word, phrase, clause, sentence, paragraph, section or other part of this resolution, or the application thereof to any person or circumstance, shall ever be held-to -5- 10827 -19 be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this resolution and the application of such word, phrase, clause, sentence, paragraph, section or other part of this resolution to any other persons or circumstances shall not be affected therecy. Section 11: That the City Council has considered evi- dence of the posting of notice of this meeting of the City Council, and the City Council officially finds, determines recites and declares that a sufficient written notice of the date, place, and hour of this meeting of the City Council. of the subject of this resolution was posted for at least seventy two hours before this meeting was convened; that such notice.was posted on a bullentin board in the City Hall located at a place of convenience to the general public at all times from the time of posting until this meeting was convened; and that this meeting has been open to the public at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon; all as required by Open Meetings Law, Article 6252 -17, Vernon's Annotated Texas Civil Statutes, as amended. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 12: This Resolution shall take effect immediately from and after its passage. INTRODUCED, READ and PASSED by the affirmative vote of the City Council on this the 27th day of August 1981. E METT O. HUTTO, Mayor A'F.TEST/: i EILEEN 1 .'HALL, City Clerk APPROVED: 9AD L T NG, ZC. Attorney M EXHIBIT "A" 10827 -21 APPLICATION FOR AUTHORIZATION F�:O T,rPRO'vAL OF THE FOR14ATION OF TH3 SOUTH Ek': -J T TEXAS HOUSING FINANCE CORP6p�1T1OL- STATE OF TEXAS § COUNTY OF _ _ § WHEREAS, we, the undersigned persons (the "incorpora- tors") believe that there is a need existing in the cisv _ of Ba tocm the "Area of OperYElon"Y for the provi.- sion of a means of financing of the cost of residential ownership and development that will provide decent, safe and sanitary housing for low and moderate income residents of the Area of Operation; and WHEREAS, the Texas Housing Finance Corporations Act, Article 1269 1 -7, Vernon is Texas Civil Statutes, as amended authorizes cities and /or counties to jointly create and utilize public' nonprofit housing finance corporations for the purpose of providing a means of. financing the cost of residential ownership and development that will provide decent, safe and sanitary. housing for residents of the Area of Operations] NOW, THEREFORE (1) Pursuant to the provisions of the Act, the under- signed Incorporators, each being a citizen-of the State of Texas, of the age of IS years or more and a resident of the City, hereby p make aplication to the City Council of the City (the "City Council ) for the authorization and approval of the incorporation of a public nonprofit housing finance corporation to be called "The South East Texas Housing Finance Corporation" (the "Corporation , which Corporation shall have the authority to carry out the public purposes for which it is incorporated, to exercise the powers with which it is invested by the Act, its Articles of Incorporation and its sponsoring political subdivi- sions including the power to issue its obligations to accomplish such public purposes and powers, as a public instrumentality and nonprofit corporation to exist and act on behalf of, and for the benefit of, the general public, its sponsoring political subdivi- sions and the State of Texas. M 10827 -22 (2) Pursuant to the provisions of the Act, the under- signed Incorporators attach hereto and present herewith to the City Council for approval, proposed Articles of Incorporation pursuant to which it is proposed that the Corporation be formed. (3) Pursuant to the provisions of the Act, and this application, the undersigned Incorporators hereby .request that the City Council adopt appropriate resolutions authorizing and approving the formation of the corporation,-the filing of the Articles of Incorporation, and appointing an initial Board of Directors of the Corporation. DATED this 11th day of August 1981, at the City of Baytown , Texas. Respectfully submitted, -2_ M M 10827 -24 ARTICLES OF INCORPORATION or• THE SOUTH EAST TEXAS HOUSING FINANCE CORPORATION We, the undersigned natural persons of the age of eighteen years or more, all of whom are citizens of the State of Texas and residents of the State of Texas, acting as incorporators of a corporation under the Texas Housing Finance Corporations Act, do hereby adopt the following Articles of Incorporation for such corporation: ARTICLE I The name of the Corporation is THE SOUTH EAST TEXAS FINANCE CORPORATION. ARTICLE II The Corporation is a public nonprofit corporation. ARTICLE III The duration of the Corporation shall be perpetual. ARTICLE IV HOUSING The Corporation is organized solely to carry out the purposes of The Texas Housing Finance Corporations Act; provided, however, that the corporation may not issue obligations for or on behalf of any private or public entity other than those. ipol i tica 7 _subdivisions joining urith the citu of Bagtotm to form the South East Texas Housing Finance Corporation. the "Sponsoring Political Subdivision"). ARTICLE V The Corporation shall have no members. ARTICLE VI The street address of the initial registered office of the Corporation is 805 Nazro Stxeat • Baut_orr, , Texas 77520 and the name of its initial registered agent at such address is William N. Eiland, Jr. - 10827 -25 ARTICLE VII The number of directors constituting the initial Board of Directors of the Corporation is five (S) and the names, addresses and terms of office of the persons who are to serve as the ini- tial directors are: Name Term Address W Each member of the initial Board of Directors shall hold office for the term specified beside his or her name above or until his or her successor is appointed in the manner provided below. Each of the initial directors resides within one of the Sponsoring Political Subdivisions. Directors shall be appointed by the majority vote of the governing, body of each of the Sponsoring Political Subdivisions. All directors shall be residents of one of the Sponsoring Politi- cal Subdivisions at all times during their term of office. Each - director shall hold office for the term for which he or she is appointed and until his or her successor shall have been ap- pointed and qualified. Any vacancy occurring in the board of directors shall be immediately filled. by appointment by the governing body of each of the Sponsoring Political Subdivisions. A director may be removed from office for cause or at will and no director 'shall be appointed for a term in excess of six (6) years. &Z W IWO 10827 -26 ARTICLE VIII The name and street address of each incorporator are: Name Address David C. Gunn 4002 Garth Roue Baytown, Texas 77520 Tony Campos 2518 W. Hu,-,b2e Baytown, Texas 77520 Ctrs. Norma R. Wilder 121 Mapleton _ Baytown, Texas 77520 0. J. Howell 14 E. Cleveland Street Baytown, Texas 77520 -3- 10827 -27 Each incorporator resides within one of the Sponsoring Political Subdivisions. ARTICLE IX Resolutions approving the form of these Articles of Incorpo- ration have -been duly adopted by the governing body of each of the Sponsoring Political Subdivisions. ARTICLE X Any net earnings of the Corporation (beyond that necessary for retirement of its indebtedness or to implement the public purpose or purposes or program of the Corporation) may 'not inure- to the benefit of any person or entity, other than the Sponsoring Political Subdivisions. The Corporation shall not participate in or intervene in (including the publication or distribution of statements) any political campaign on behalf of any candidate for public office. ARTICLE XI Subject to any valid liens, charges or encumbrances and the prior rights of the holders of any obligation of this Corporation and any creditors of the Corporation, in the event of dissolution of this Corporation, at any time or for any reason, title to all of the funds, properties and assets of this Corporation shall vest severally in each of the Sponsoring Political Subdivisions in proportion to the ratio which its population (as reflected by the 1980 decennial census) bears to the total population of all Sponsoring Political Subdivisions (as reflected by the 1980 decennial census); it being intended that no officer or director of this corporation or any other private person or entity shall ever derive or. receive any financial or pecuniary gain or profit from this corporation on dissolution, liquidation or winding up. ARTICLE XII The governing bodies of the political subdivisions who serve as sponsors of the Corporation may, at their sole discretion and at any time, either upon (1) the application of the Board of Directors of the Corporation, or (2) their own motions, by appro- priate resolutions duly adopted cause the Articles of Incorpora- tion to be amended to alter or change the structure, organiza- tion, powers, programs or activities of the Corporation and may cause the existence of the Corporation to be terminated, subject -4- • 10327 -23 the existence of the Corporation to be terminated, subject to the provisions of the Act and to any limitation on the impairment of contracts entered into by the Corporation. IN WITNESS WHEREOF, we have hereunto set our hands this 10th day of AUGUST 1981. -5- 10827 -29 THE STATE OF TEXAS § COUNTY OF HARRIS § I, RONALD D. HADDOX , a notary public, do hereby certify-that on this 11th day of AUGUST 1981, personally appeared before me: DAVID C. GUNN + TONY CANPOS ( ^ AIRS. NORM R. WILDER + O.J. H014E LL + r ' r - r and who each being by me first duly sworn, severally declared that they are the persons who signed the foregoing document as Incor- porators, and that the statements therein contained are true. -6- 10827 -30 IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year above written. ' /// f Notary Public in and for the State of Texas My c mission expire r' Ile Printed Name of Notary Public -- -7- 10827 -31 Minutes of the Regular Meeting - August 27, 1981 Consider Request of Walnut Ridge Condominiums Homeowners' Association for the City to Assume Ownership and Main- tenance of Lift Station Mr. Ed Schultz, 1505 Ward Road, Condominium No. 220, President of the Walnut Ridge Condominiums Homeowners' Association, addressed Council with regard to the request of the association for the city to assume ownership and main- tenance of Walnut Ridge Condominiums lift station. Walnut Ridge is a condominium complex in Baytown which was the first unit built from the ground up as a condominium complex. The complex consists of 19 buildings and 137 units. The residents of Walnut Ridge consider themselves to be homeowners. As homeowners, a homeowners association has been formed with five elected officials. Those persons were present and were introduced to Council by Mr. Schultz. Mr. Schultz stated that this group has the responsibility of keeping the complex up to par and operating smoothly. Therefore, the directors are requesting that the city assume ownership and maintenance of Walnut Ridge lift station. The owners, upon purchase of the condos, were unaware of ownership of the lift station. Within the last two years, the directors have come to the conclusion that maintenance and upkeep of the lift station could better be handled by the city since the homeowners do not have the expertise to handle problems related to the operation and maintenance of a lift station. The homeowners proposed to do whatever Council deems necessary to make this particular lift station appropriate and acceptable to the city. In response to an inquiry from Council, Mr. Lanham referred to a memorandum from Norman Dykes, Director of Public Works /City Engineer, which indicates that the developer of the condo was not required to build a lift station as the city would build one or would require the developer of a subdivision to construct one. At that time, the understanding was that the developer would construct the lift station and the lift station would be his to own and operate. What he built there was satisfactory to him. The system is a dual submersible pump system which does not meet city standards. In order to meet city standards, the system should have three phase motors, dual pump and be above ground with at least a three inch force main. This particular problem is unique since this is not a subdivision in the usual sense and it is not an apartment complex. As mentioned earlier, this complex was the first built in Baytown and after this complex was constructed, Council adopted an ordinance relating to condominiums and in the future, any new condo complex would be required to meet city standards with regard to lift stations. With regard to estimated cost to bring the lift station up to city standards, the Administration has not attempted to develop that information. However, if Council would like to pursue this, the Administration's suggestion was that cost figures be developed and that the Administration get back to Council and to the homeowners' association with that information. If the lift station were brought up to city standards, then it would be appropriate for the city to accept the station. Councilman Philips stated that that would be reasonable since if the station were brought up to standards, then the city wouldn't be taking on a burden that would be passed on to other Baytown citizens. 10827 -32 Minutes of the Regular Meeting - August 27, 1981 Mr. Schultz stated that the Board has addressed this question and has agreed that once a cost is derived, that the association will weigh this cost to extend the life of the condominium complex. The association will be looking toward the long -term good and are willing to do whatever Council deems necessary to bring the lift station up to city standards. Mr. Lanham stated that in doing this, he would think that Council would want to make it clear that the city is not agreeing to take possession of the collection lines, water lines, streets or anything else in this or any other condominium complex. Those would remain the responsibility of the owners. Mayor Hutto stated that the Administration would report back to Council and at that time Council could make a determination. Council concurred. Consider Proposed Ordinance, Awarding Demolition Contract for 7001 Decker Drive Mr. Jay Meyer, Attorney for Ben Milan, owner of the property at 7001 Decker Drive, appeared on Mr. Milam's behalf. Mr. Meyer stated that part of the problem is that Mr. Milam would like to retain the slab underneath the existing building. Tuesday, a structural engineer examined the building and slab and verified that the building should be demolished. However, the slab is sound. Mr. Meyer requested that Council reject the bid that has been submitted because that bid does include removal of the slab, which is the bulk of the bid. There is a meeting Monday afternoon of the Urban Rehabilitation Review Board which both Mr. Milam and Mr. Meyer will attend. Mr. Milam has purchased equipment to demolish the building and feels that the building could be removed within the next 60 days. At the meeting before the Urban Rehab Board, some sort of guarantee will be established that the building will be demolished. For this reason, Mr. Meyer requested that Council reject the bids for demolition on this project. The Administration recommended that the matter be referred to the Board, but by the same token Mr. Lanham felt that the Board would definitely want some assurance that the building will be demolished. Council informed Mr. Meyer that this matter is expected to be brought to a hasty conclusion. Councilman Johnson moved to reject all bids and refer the matter to the Urban Rehabilitation Review Board; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto ' Nays: None Consent Agenda The Administration had requested that 12d be removed from the agenda; therefore Council considered Item Nos. 12a through c and 12e. 10827 -33 Minutes of the Regular Meeting - August 27, 1981 In response to an inquiry from Council, Mr. Lanham explained that several meetings ago, Council had approved a water line extension along Archer Road west from Gentry School. There were 3 or 4 residents who paid for the line. These 3 residents are between those who originally paid for the line and have made arrangements to pay a portion of the original costs. These people will need to pay a tapping fee and will be billed at the city rate for those residents outside the city limits. Mr. Dykes explained that there will be a total of 6 to 7 customers on this line which should not present pressure problems. Councilman Johnson voiced his objection to citizens of Baytown subsidizing out of city dwellers, but stated that he would vote for the request. Council considered the consent agenda as set forth in the Council packet as follows: a. Six bids were received for the demolition of a structure at 718 East Humble. The Urban Rehabili- tation Standards Board has reviewed the bid and recommends that the contract be awarded to Luckett Construction, with a low bid of $2,675. We recommend approval of Proposed Ordinance No. 10827 -4. b. Six bids were received for the demolition of a structure at 2111 Alva. The Urban Rehabilitation Standards Board has reviewed these bids and recommends that the contract be awarded to the low bidder, Martin and Sons, with a bid of $3,385. We recommend approval of Proposed Ordinance No. 10827 -5. C. Channel Construction Company has completed work on the 1981 Sanitary Sewer Sliplining Project - Phase II. The original contract amount was $42,475 and the total of the work performed was $38,738, an underrun of $3,737. The underrun resulted from the reduction in the amount of pipe installed and in the number of service connections from the original estimate. The City Engineer has inspected the work and we recommend approval of final payment in the amount of $11,187.83. We recommend approval of Proposed Ordinance No. 10827 -6. e. We have received a request for water service from three residents living on Archer Road near Stallworth Stadium. A water line has recently been constructed at the expense of other homeowners living in this vicinity who were given approval by the City Council to connect to city water service. Mr. Harlon, Mr. Ludtke, and Mr. Salinas have arranged with their neighbors who financed the original extension to pay a portion of the cost of the line and it is necessary for them the secure city approval before connecting to the line. We recommend approval of this request. 10827 -34 Minutes of the Regular Meeting - August 27, 1981 Councilman Fuller moved to adopt the consent agenda Item Nos. 12a through 12c and Item No. 12e; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None ORDINANCE NO. 3215 AN ORDINANCE ACCEPTING THE BID OF LUCKETT CONSTRUCTION CO. FOR THE DEMOLITION OF THE STRUCTURES AT 718 EAST HUMBLE; AUTHORIZING EXECUTION OF A CONTRACT FOR TWO THOUSAND SIX HUNDRED SEVENTY -FIVE AND N0 1100 ($2,675.00) DOLLARS; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT. ORDINANCE NO. 3216 AN ORDINANCE ACCEPTING THE BID OF MARTIN & SONS FOR THE DEMOLITION OF THE STRUCTURES AT 2112 ALVA; AUTHORIZING EXECUTION OF A CONTRACT FOR THREE THOUSAND THREE HUNDRED EIGHTY -FIVE AND N01100 ($3,385.00) DOLLARS; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT. For bid tabulation, see Attachment "A ". ORDINANCE NO. 3217 AN ORDINANCE AUTHORIZING FINAL PAYMENT TO CHANNEL CONSTRUCTION COMPANY FOR THE 1981 SANITARY SLIPLINING - PHASE II PROJECT, AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Hear Report from Entex Regarding Purchased Gas Adjustment Dick DeSalme, BayPorte District Manager, was present and explained that Entex primarily has three different type rate adjustments, not only in the City of Baytown, but throughout the United States. The first one is the cost of gas adjustment which is the one submitted August 6. In the City of Baytown these rates are adjusted in February and August. The rate ordinance currently in effect in the City of Baytown has a purchase gas adjustment clause. Most cities in the State of Texas have this clause in the local ordinance. The cost of gas adjustment is simply the increased cost of gas to Entex by pipeline suppliers. In February of 1971, Entex was paying 38.3 cents per MCF for gas purchased from pipeline suppliers. Effective August, 1981, Entex is paying $3.55 for the same amount of gas. Mr. Lanham explained that Entex's purchased gas adjustment is very similar to Houston Lighting and Power Company's monthly adjustments. Entex adjusts semi - annually rather than monthly. With regard to a question from Council, concerning incentive of Entex to keep cost of service adjustment minimal, Mr. DeSalme stated that Entex has guidelines regarding the number of employees on the payroll and what type work is to be done. Certain jobs are contracted. Since 1976, Entex has not added one new employee to its payroll for the BayPorte area. Jobs have been consolidated. Supplies are purchased in bulk and Entex purchases directly from manufacturers. 10827 -35 Minutes of the Regular Meeting - August 27, 1981 Cost of service adjustment is filed with the City of Baytown in March of each year. This adjustment recovers increased operating expenses only, over prior year. The City of Baytown has original jurisdiction over the cost of service adjustment. General rate increase which is filed when rate of return dictates is governed by: 1. Operating expenses; 2. Return on plant investment; 3. Cost of capital. The City of Baytown has original jurisdiction over General Rate Increases. The last such increase in Baytown was in November, 1976. Normally a General Rate Increase is filed every 3 to 5 years. Councilman Philips stated that Mr. DeSalme's information was very helpful. Consider Offer to Donate Property at 115 West Texas Avenue to City of Baytown William J. Gidley, Vice President and Trust Officer for Citizens Bank and Trust Company, agent for owner of the property at 115 'Vest Texas Avenue, in a letter dated August 131 1981, offered to donate that property to the City of Baytown. This property is the building where The Style Shoppe was previously located. The Urban Rehabilitation Review Board has considered this building and has directed that the first steps in demolition be instituted. If the owner refuses to remove the building, the city will have the building removed and have a lien placed on the property under the demolition process. The Administration has not made a detailed study, but the estimate for removing the building and leaving the slab is $6,000. There is a possibility for future of the property for parking. Councilman Johnson suggested that the owner remove the building and then donate the property to the city. Councilman Philips stated that he would like to clear out that area, but at the same time, this could develop into • great cost to the city. Therefore, he would like to have • counter - proposal made to determine if the owner will bear the cost of removal or at least part of it. Councilman Johnson moved that a counter- proposal be made to Mrs. Abrams that she bear the expense of tearing down and removing the building, that the property be free of all liens or encumbrances, and then the Council will accept the donation and pay for guaranteed title policy. Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None 10827 -36 Minutes of the Regular Meeting - August 27, 1981 Consider Authorizing Preliminary Engineering Study on Rollingbrook Drive Extension Mr. Lanham explained that the Administration had been requested at the last Council meeting to.place this item on the agenda. Since there is remaining in the 1975 bond fund for street improvements $600,000 which can be used for street improvements in other parts of the city, Council could proceed with engineering for Rollingbrook Drive Extension. In response to an inquiry from Council, Mr. Lanham stated that the firm selected for the preliminary engineering study should be the firm to handle final plans and construction inspection. Under the existing contracts or those that were executed under the 1975 Bond Program, for engineering services, there was the preliminary phase, design phase and construction phase. Depending on the type work, Classification "A" is 1.09% of the cost of the project and Classification "B" is .880. Mr. Lanham stated that he thought that bridges and streets fall under Classification "A ". Field surveys are in addition to that and that is a good part of the expense since alignment and soil tests will be required on this project. Council decided that since Council would be meeting in work session on Tuesday to discuss the procedure for selection of engineers that would be a good time to discuss the matter further. Consider Appointments to Baytown Area Water Authority Board Mr. Lanham had'contacted the members of the Baytown Area Water Authority Board whose terms are expiring. Robert L. Gillette and Dr. Robert Hill have agreed to serve another term; however, I. J. Butrick who has served on the board since 1973 has declined reappointment. Councilwoman Wilbanks moved that Robert L. Gillette and Dr. Robert Hill be reappointed to serve on the Baytown Area Water Authority Board and that Dan Mundinger be appointed to serve; Councilman Simmons seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None Consider Proposed Ordinance, Authorizing Contract with Layne Texas to Repair James Street Water Well The well on East James Street is one of the city's major wells and is the well that the city has been using most since converting to surface water. This well has failed and the Administration asked Layne Texas to come out to pull the shaft and pump to determine the cost to repair the well. That has been done. Norman Dykes, Director of Public Works /City Engineer, explained that when Layne Texas pulled the shaft earlier in the week, it was discovered that one of the couplings was completely sheared. Shafts are out of round, bearings are out of round and badly worn. The tubing is gone. In other words the mechanism is completely worn. This well pumps over 1,000,000 gallons per day. The 10827 -37 Minutes of the Regular Meeting - August 27, 1981 well is needed for pressure and in the event of emergency. For future purposes, this is one of the wells that the city would want to keep on a standby basis. Cost to repair the well is estimated to be $18,500, barring any other unforeseen expenses. The company estimates approximately four days to complete the repairs. Mr. Dykes recommended that the company be authorized to make the repairs on an emergency basis. Councilwoman Wilbanks moved to adopt the ordinance on emergency basis; Councilman Johnson seconded the motion. The vote follows: Ayes: Council members Philips, Johnson, Simmons, Wilbanks and Fuller Mayor Hutto Nays: None ORDINANCE NO. 3218 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, DECLARING THAT AN EMERGENCY SITUATION EXISTS; AUTHO- RIZING AND DIRECTING THE CITY MANAGER AND CITY CLERK TO ENTER INTO A CONTRACT WITH LAYNE TEXAS COMPANY TO REPAIR A CITY WATER WELL; AUTHORIZING THE PAYMENT OF THE SUM OF EIGHTEEN THOUSAND FIVE HUNDRED & N01100 ($18,500.00) DOLLARS WITH REGARD TO SUCH ACCEPTANCE; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. Adj ourn There being no further business to be transacted, the meeting was adjourned. Eileen P. Hall, City Clerk