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2003 06 26 CC MinutesMINUTES OF THE REGULAR SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN June 26, 2003 6:30 p.m. The City Council of the City of Baytown, Texas, met in regular session on June 26, 2003, at 6:30 p.m. in the Council Chamber of Baytown City Hall with the following in attendance: Ronnie Anderson Council Member Coleman Godwin Council Member Calvin Mundinger Council Member Don Murray Council Member Mercedes Renteria III Council Member Scott Sheley Council Member Pete C. Alfaro Mayor Gary M. Jackson City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk The meeting was opened with a quorum present and Council Member Renteria led the pledge of allegiance and offered the invocation after which the following business was conducted: Consider approval of minutes of the minutes for the regular meeting held on June 12, 2003. Council Member Sheley moved approval of the minutes of the minutes for the regular meeting held on June 12, 2003. Council Member Murray seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. Conduct a public hearing regarding bond issuance by the Milford Higher Education Facilities Corporation for loan to Baytown Christian Academy, Inc. The public hearing was called to order at 6:35 p.m. The purpose of the bonds is to finance the construction of a school campus consisting of five buildings including classrooms, library, computer lab, cafetorium, administrative facilities, parking facilities and a gymnasium, to be located at the new school campus, 5555 North Main Street. The bonds will be issued in an amount not to exceed 52,500,000. The sole user of the bonds will be Baytown Christian Academy, Inc. The bonds do not constitute an obligation of the City of Baytown, the State of Texas, or any political subdivision whatsoever, and are not to be repaid from taxes or other public funds. The bonds are to be repaid solely from loan payments to be made by Baytown Christian Academy, Inc. Page 2 of 11 Minutes of the Regular Session — June 26, 2003 David Truncale, 9734 Bayou Woods Drive, representing the Baytown Christian Academy School Board, spoke in favor of the proposed resolution. The public hearing was closed at 6:37 p.m. Consider Proposed Resolution No. 030626 -1, approving the issuance of Education Revenue Bonds by the Milford Higher Education Facilities Corporation for Baytown Christian Academy, Inc. Under the provisions of Section 147(f) of the Internal Revenue Code, bonds for private schools have to be approved both by the City where the bonds are being issued (in this case, the City of Milford) and by the city where the project being financed with the bonds is located (in this case, Baytown). Section 147(f) and the accompanying regulations to the Code require two steps to obtain the necessary approval in the City of Baytown: 1. A public hearing must be held after notice has been published in the official newspaper of the city at least 14 days prior to a public hearing about the bond issue. 2. After the public hearing, a written approval has to be given by the "applicable elected representative" of Baytown. The bonds are not a liability of the City of Baytown. The bonds along with all issuance costs are to be paid solely by the school. The bonds also do not count against Baytown's bonding authority in any way whatsoever. The advantage to the school is this lets them borrow the money at a low interest rate since the bonds are tax - exempt. In this case the initial rate is 5.5% per annum although it can adjust depending on the prime rate. Council Member Anderson moved adoption of the proposed resolution. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. RESOLUTION NO. 1590 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE ISSUANCE OF EDUCATION REVENUE BONDS BY THE MILFORD HIGHER EDUCATION FACILITIES CORPORATION FOR BAYTOWN CHRISTIAN ACADEMY, INC., AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Conduct a public hearing to consider the application of the City of Baytown to amend the Official Zoning Map of the City of Baytown to rezone property described as Country Club Oaks, Section Seventeen, Lots 1 -42, Harris County, Texas from Mixed Use to Neighborhood Conservation. The public hearing was called to order at 6:40 p.m. Page 3 of 11 Minutes of the Regular Session — June 26, 2003 Notice of the public hearing was published in the Baytown Sun on June 2, 2003, more than 16 days before the public hearing. Notice was mailed to all property owners within 300 feet of this location on or before June 2, 2003, more than 16 days before the public hearing. The Baytown Zoning Commission met on May 21, 2003, and voted unanimously to recommend that City Council approve the request to change the zoning district classification of the property described as Country Club Oaks, Section Seventeen, Lots 1 -42, Harris County, Texas from Mixed Use to Neighborhood Conservation. The City received a request from the President of Country Club Oaks Section Seventeen Homeowners Association to rezone this 42 -lot residential subdivision from Mixed Use to Neighborhood Conservation. The Neighborhood Conservation district designation will preserve and reinforce existing low- density, residential land use patterns, promote a high - quality living environment and ensure the provision of adequate light, air, privacy, and open space to serve the needs of residents. It ensures land use compatibility and protects residential uses from adverse land use impacts that can occur when high - density residential or nonresidential development is located near residential uses. The Mixed Use district allows for a variety of land uses. Based on the staff analysis, the request meets the six amendment criteria established in the Zoning Ordinance. Lewis McRee, 4019 Applerock Drive, president of the Country Club Oaks Section Seventeen Homeowners Association, spoke in favor of the proposed ordinance and urged rezoning on any new residential development. He noted that while he serves as Chair of the Baytown Zoning Commission and the Growth Management and Development Commission, due to the conflict of interest, he did not preside over the meeting during consideration of this item. The public hearing was closed at 6:46 p.m. Consider Proposed Ordinance No. 030626 -1, amending the Official Zoning Map of the City of Baytown to rezone property described as Country Club Oaks, Section Seventeen, Lots 142, Harris County, Texas from Mixed Use to Neighborhood Conservation. The Baytown Zoning Commission met on May 21, 2003, and voted unanimously to recommend that City Council approve the request to change the zoning district classification of the property described as Country Club Oaks, Section Seventeen, Lots 1 -42, Hams County, Texas from Mixed Use to Neighborhood Conservation. The City received a request from the President of Country Club Oaks Section Seventeen Homeowners Association to rezone this 42 -lot residential subdivision from Mixed Use to Neighborhood Conservation. The Neighborhood Conservation district designation will preserve and reinforce existing low - density, residential land use patterns, promote a high- quality living environment and ensure the provision of adequate light, air, privacy, and open space to serve the needs of residents. It ensures land use compatibility and protects residential uses from adverse land use impacts that can occur when high - density residential or nonresidential development is located near residential uses. The Mixed Use district allows for a variety of land uses. Based on the staff analysis, the request meets the six amendment criteria established in the Zoning Ordinance. Council Member Murray moved adoption of the proposed ordinance. Council Member Godwin seconded the motion. The vote follows: Page 4 of 11 Minutes of the Regular Session — June 26, 2003 Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. ORDINANCE NO. 9579 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF BAYTOWN CONCERNING PROPERTY DESCRIBED AS COUNTRY CLUB OAKS SECTION SEVENTEEN, LOTS 1 THROUGH 42, BAYTOWN, HARRIS COUNTY, TEXAS, FROM A MIXED USE (MU) DISTRICT TO A NEIGHBORHOOD CONSERVATION (NC) DISTRICT; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. Consider Proposed Ordinance No. 030626 -2 approving final payment to G & Z Contracting, Inc. and accepting the renovations to Fire Station No. One. Proposed Ordinance No. 030626 -2 approves final payment to G & Z Contracting Inc. in the amount of $29,470.34 and accepts the renovations to Fire Station No. One. The City is in receipt of a letter from the consultant stating that the project has been completed in accordance with the plans and specifications and has recommended final payment. The original contract amount was $285,000 and there were four administratively approved change orders totaling $9,703.39, for an amended contract amount of $294,703.39. The four change orders represent a 3.4% cost increase. The original contract duration was 140 calendar days and the project was completed on schedule. The contractor's workmanship was satisfactory. This work was funded with Capital Replacement Funds. Council Member Sheley moved adoption of the proposed ordinance. Council Member Mundinger seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. ORDINANCE NO. 9580 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE RENOVATION OF FIRE STATION NO. 1 AND IMPROVEMENTS; AUTHORIZING FINAL PAYMENT OF THE SUM OF TWENTY -NINE THOUSAND FOUR HUNDRED SEVENTY AND 34/100 DOLLARS ($29,470.34); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 5ofII Minutes of the Regular Session — June 26, 2003 Consider Proposed Ordinance No. 030626 -3, authorizing a professional services contract for the West Baytown Sanitary Sewer Rehabilitation Project. Proposed Ordinance No. 030626 -3 awards a professional services contract in an amount not to exceed $180,257 to Lockwood, Andrews, & Newnam, Inc. for the West Baytown Sanitary Sewer Rehabilitation Project. Compensation for basic services will not exceed the amount of $145,152. The project's reimbursable expenses shall not exceed $4,003 while the surveying charges will be $31,102. The scope of work includes the design and specifications for the West Baytown Sanitary Sewer Project. This project will be funded by CIP funds. This is the first phase of a three -phase project. The estimated construction cost for this phase is $2,000,000. Council Member Renteria moved adoption of the proposed ordinance. Council Member Sheley seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. ORDINANCE NO. 9581 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH LOCKWOOD, ANDREWS, & NEWNAM, INC., FOR THE WEST BAYTOWN SANITARY SEWER REHABILITATION PROJECT; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN IN AN AMOUNT NOT TO EXCEED ONE HUNDRED EIGHTY THOUSAND TWO HUNDRED FIFTY -SEVEN AND NO /100 DOLLARS ($180,257.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider Proposed Ordinance No. 0306264, amending Chapter 110 "Floods," Article II "Flood Damage," Division 2 "Administration," Section 110 -69 "Development permit procedures," Subsection (a)(1); and Division 3 "Hazard Reduction," Sections 110 -102 "Specific standards," and 110 -104 "Standards for areas of shallow flooding (AO /AH zones)" to ensure compliance with the National Flood Insurance Program's regulations and to receive the community rating system credit. This Amendment is necessary to keep our community in compliance with the National Flood Insurance Program's regulations and to keep our Community Rating System (CRS) classification. The amendment not only ensures that the lowest floor of any new building is elevated above the base flood elevation but also requires the electrical, heating, ventilation, plumbing, air conditioning and other service facilities to be located or designed to prevent water from entering or accumulating within the components during flood conditions. Council Member Anderson moved adoption of the proposed ordinance. Council Member Mundinger seconded the motion. The vote follows: Page 6 of 11 Minutes of the Regular Session — June 26, 2003 Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. ORDINANCE NO. 9582 AN ORDINANCE OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER 110 "FLOODS," ARTICLE II "FLOOD DAMAGE PREVENTION," DIVISION 2 "ADMINISTRATION," SECTION 110 -69 "DEVELOPMENT PERMIT PROCEDURES," SUBSECTION (A)(1); AND DIVISION 3 "FLOOD HAZARD REDUCTION," SECTIONS 110 -102 "SPECIFIC STANDARDS," AND 110 -104 "STANDARDS FOR AREAS OF SHALLOW FLOODING (AO /AH ZONES)" TO ENSURE COMPLIANCE WITH THE NATIONAL FLOOD INSURANCE PROGRAM'S REGULATIONS AND TO RECEIVE THE COMMUNITY RATING SYSTEM CREDIT; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PENALTY OF FIVE HUNDRED AND NO 1100 DOLLARS ($500.00); AND PROVIDING FOR THE PUBLICATION AND THE EFFECTIVE DATE THEREOF. Consider Proposed Resolution No. 030626 -2, accepting a local jurisdictional First Responder grant from Texas Engineering Extension Service and the Houston - Galveston Area Council. This item was not ready for consideration. Consider Proposed Resolution No. 030626 -3, accepting a regional jurisdictional First Responder grant from Texas Engineering Extension Service and the Houston- Galveston Area Council. This item was not ready for consideration. The City has been nominated to receive Homeland Security subgrants of $249,945 for local needs and $500,000 for regional needs. The City has not received the subrecipient agreement and conditions. Therefore the items are not ready for consideration. Consider Proposed Resolution No. 0306264, approving the creation of a reinvestment zone on Tri- Cities Beach Road for tax increment financing. Proposed Resolution No. 030626 -4 approves the creation of a reinvestment zone on Tri- Cities Beach Road for tax increment financing for the development of a master planned waterfront community proposed by Commonwealth Housing Corporation (CHC). CHC plans to acquire and develop 700 acres of land into a residential community of 1256 homes over the next eight to ten years by creating lots for sale to Royce Builders. Critical to the success of this plan is a TIRZ, which will allow for the: Infrastructure necessary to make this development economically possible; Purchase of a "package plant" by CHC to increase the City's existing water treatment facility capacity, and alleviate immediate water and sewer problems in the area; Creation of just under $300 million in real estate value to reimburse the TIRZ infrastructure improvements; and, Economic benefit of local economy and additional sales tax dollars from new residents to the City. Page 7 of 11 Minutes of the Regular Session — June 26, 2003 In addition to this economic revitalization, water, sewer, and streets will be brought up to code in Bay Oaks Harbor RV and Mobile Home Parks, eliminating health and safety concerns of citizens. Lewis D. Foley of Commonwealth Housing Corporation responded to Council's questions and noted that approval of this resolution will be of assistance with this project. Council Member Mundinger moved adoption of the proposed resolution. Council Member Renteria seconded the motion. Council Member Mundinger accepted a friendly amendment by Council Member Murray that a traffic impact analysis to address ingress and egress concerns be made a part of the proposed resolution. Council Member Renteria accepted the amendment. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. RESOLUTION NO. 1591 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE CONSIDERATION OF A TAX INCREMENT REINVESTMENT ZONE ALONG TRI- CITIES BEACH ROAD, BAYTOWN, HARRIS COUNTY, TEXAS, FOR THE ISLAND PARK PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider approval of the plans and specifications for the Eva Maud Sanitary Sewer Rehabilitation Project and authorize advertisement for bids. The scope of work includes rehabilitation work primarily using the pipe bursting method, but will also include some removal and replacement by open trench methods, as needed. The estimated construction cost for the base bid amount, which includes a 10% contingency, is $789,683.40. The estimated cost for in -house inspection services is $26,000, for a total estimated base bid project cost of $815,683.40. Staff has also included alternate bid items for additional line rehabilitation within the subdivision. If competitive bids and unit prices are received, there may be enough funding for an additional 1,251 linear feet of pipe bursting. The total estimated cost for the alternate bid items, with a 10% percent contingency, is $67,085.70. The total budget for the project is $830,000 and will be funded by 2003 Certificates of Obligation. Construction duration is estimated to be 120 calendar days. Council Member Godwin moved approval of plans and specifications for the Eva Maud Sanitary Sewer Rehabilitation Project and authorization for advertisement for bids. Council Member Sheley seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. Page 8 of 11 Minutes of the Regular Session — June 26, 2003 Consent Agenda a. Proposed Ordinance No. 030626 -5 approves a contract in the amount of $29,720 with Johnson Controls for repair and modification of the air conditioning system for Sterling Municipal Library. Historically, the Library has had numerous problems with the air conditioning system. Last year, Johnson Controls, a nationally recognized service for chilled water and automated air conditioning systems, was called in to analyze the problems and recommend solutions. Portions of the recommendations were completed in the previous budget year. With this ordinance, the remainder of the needed major repairs can be completed. Johnson Controls is a QISV vendor. Johnson Controls employs McQuay trained technicians and one is assigned to our system. Funds are available in the Library budget to implement these repairs. A local government that participates in the cooperative purchasing program established under sections 271.082 and 271.083 of the Local Government Code satisfies otherwise applicable competitive bidding requirements when it makes a purchase through the catalogue purchasing procedure established by article 6701b, section 3.081, V.T.C.S. The purpose of the QISV (Qualified Information Systems Vendors) Catalogue Purchasing Program is to allow for qualified entities (state agencies and political subdivisions) to purchase automated information systems products and/or services in an efficient, cost effective, and competitive procurement method. b. This item was removed for separate consideration. C. Proposed Ordinance Number No. 030626 -7 awards the annual contract in the amount of $56,188 for outsourcing the printing and mailing of the City's utility bills to Lason Systems, Inc. Total award of contract is based on the best value for the City and includes a one -time setup fee and notification of address change. For evaluation purposes, bid is based on the total cost per postcard mailed. Estimated monthly cost for mailing utility bills is $4,490.65. Invitations to bid were distributed to 13 bidders with five bidders responding and one bid received after bid opening date. Three companies were disqualified for not meeting specifications. d. Proposed Ordinance Number No. 030626 -8 awards the third renewal of the annual residential solid waste collection and disposal services contract to Waste Management of Texas in the amount of $1,660,437.72. Waste Management submitted a written request to renew the current contract for the same unit pricing, terms, and conditions. Unit price is $8.31 per residential unit for 16,651 units. The monthly cost is $138,369.81. e. Proposed Ordinance No. 030626 -9 awards the third renewal of the annual recycling center services contract to Waste Management of Texas in the amount of $68,760. Waste Management has submitted a written request to renew the current contract for the same pricing, terms, and conditions. Monthly charge for operation of the Recycling Center is $2,850. Monthly cost for 12 hauls per month is $2,880. Price per haul is $240. Council Member Renteria moved adoption of the consent agenda, items a and c through e. Council Member Mundinger seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. Page 9 of 11 Minutes of the Regular Session — June 26, 2003 ORDINANCE NO. 9583 AN ORDINANCE OF THE CITY COUNCIL, CITY OF BAYTOWN, TEXAS, AUTHORIZING THE PAYMENT OF TWENTY -NINE THOUSAND SEVEN HUNDRED TWENTY AND NO 1100 DOLLARS ($29,720.00) TO JOHNSON CONTROLS, INC., FOR THE REPAIR AND MODIFICATION OF THE AIR CONDITIONING SYSTEM AT STERLING MUNICIPAL LIBRARY; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ORDINANCE NO. 9584 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ACCEPTING THE BID OF LASON SYSTEMS, INC., FOR THE ANNUAL OUTSOURCING: UTILITY BILLING CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FIFTY -SIX THOUSAND ONE HUNDRED EIGHTY -EIGHT AND NO 1100 DOLLARS ($56,188.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ORDINANCE NO. 9585 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE CONTRACT OF WASTE MANAGEMENT OF TEXAS FOR THE ANNUAL RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL SERVICES CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF ONE MILLION SIX HUNDRED SIXTY THOUSAND FOUR HUNDRED THIRTY -SEVEN AND 72/100 DOLLARS ($1,660,437.72); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ORDINANCE NO. 9586 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE CONTRACT OF WASTE MANAGEMENT OF TEXAS FOR THE ANNUAL RECYCLING CENTER SERVICES CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SIXTY -EIGHT THOUSAND SEVEN HUNDRED SIXTY AND NO /100 DOLLARS ($68,760.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Proposed Ordinance No. 030626 -6 abandons West Hunnicut Street between North Main and North Commerce Streets. Galo and Margaret Lucatero filed a petition requesting abandonment of West Hunnicut Street between Main and Commerce. Consent to the abandonment has been received from Centerpoint Energy, and Verizon. Time -Warner has been contacted, but has failed to respond. The adjacent property owners, Raymond Martin and the Porter Warren, Sr. Estate have been notified. Raymond Martin has consented to the abandonment, while no response has been received from the Warren Estate. All City departments have been contacted and none has expressed an interest in retaining the right of way. West Hunnicut, between Main and Commerce has not been developed. The Harris County Appraisal District values the lots fronting on Commerce at $0.60 per square foot and the lots fronting on Main Street at $1.20 per square foot. If Council approves the ordinance, notice will be given to the owners of the property adjacent to the abandoned right -of -way of their opportunity to purchase the property for the appraised value. Page 10 of 11 Minutes of the Regular Session — June 26, 2003 Margaret Lucatero, 401 Scott Avenue, spoke in favor of the proposed ordinance. Council Member Sheley moved adoption of the proposed ordinance. Council Member Mundinger seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. ORDINANCE NO. 9587 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, DISCONTINUING, ABANDONING FOR PUBLIC USE, AND CLOSING WEST HUNNICUT STREET BETWEEN NORTH MAIN STREET AND NORTH COMMERCE STREET, BAYTOWN, HARRIS COUNTY, TEXAS; ABANDONING AND QUITCLAIMING ALL INTEREST OF THE CITY OF BAYTOWN AND THE PUBLIC IN AND TO SAID WEST HUNNICUT STREET; AUTHORIZING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST AND DELIVER CONVEYANCE TO THE ABUTTING OWNERS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider appointment of a temporary Association Municipal Court Judge. Robert Barfield tendered his resignation as Associate Municipal Court Judge, effective on June 25, 2003. Appointment of a temporary Associate Municipal Court Judge will allow Council time to determine the process and select an Association Municipal Court Judge without impacting the schedule at Baytown Municipal Court. Council Member Anderson moved appointment of Randall B. Strong as temporary Associate Municipal Court Judge, effective until such time that Council makes a permanent appointment. Council Member Sheley seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carved. City Manager's Report City Manager Jackson informed Council that an update on the Bayland Island bid package will be presented at the work session on July 10, 2003. Mr. Jackson noted that the Annual Water Quality Report had been mailed to all customers. He said that it will be discussed during the work session on July 24, 2003. Page 11 of 11 Minutes of the Regular Session — June 26, 2003 Mr. Jackson announced that Flood Preparedness brochures and letters concerning insurance maps had also been distributed City-wide. Mr. Jackson reminded Council of the Fourth of July festivities in Bicentennial Park the following week. Mayor Alfaro requested that Council let him know the desired starting times for the budget work sessions in August. He also requested that Council submit their vacation calendars for July and August in order to schedule upcoming meetings. Adjourn Council Member Mundinger moved that the meeting adjourn. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley. Mayor Alfaro. Nays: None. The motion carried. There being no further business, the meeting adjourned at 7.21 p.m. 4. GW mith City Clerk MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN June 26, 2003 The City Council of the City of Baytown, Texas, met in work session on June 26, 2003, at 4:10 p.m. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Coleman Godwin Council Member Calvin Mundinger Council Member Don Murray Council Member Mercedes Renteria III Council Member Scott Sheley Council Member Pete C. Alfaro Mayor Gary M. Jackson City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk The meeting was opened with a quorum present after which the following business was conducted: Discuss Street Program policies and design and construction alternatives. City Manager Gary Jackson reported that during the Claunch & Miller report on the street program, several issues that could impact the cost were brought to the Council's attention, including paved parking, drainage and street width. Bill Pedersen, City Engineer, reviewed the eight items and the cost implications with Council. Amy, Utah, Pruett, and McFarland Streets have drainage distances in excess of the City's ordinance limiting the maximum gutter run to 600 feet. No hydraulic analysis has been performed but the history on the streets indicates that exceeding the maximum gutter run will not adversely impact drainage. This will allow the work to be completed without constructing additional storm drains on the streets. The savings are estimated to be $260,000. At a few locations on North Burnett and Tanglewood, the residents have paved parking areas adjacent to the roadway. The parking areas are within the City's right -of -way and not authorized by the City. Staff recommends limited driveway paving to 35' per driveway with a maximum of two driveways per residence. Only existing driveways would be replaced. The cost savings is estimated to be $14,000. At a variety of locations, the property owners have installed driveways and sidewalks with materials other than concrete, .including exposed aggregate, pavers and stamped and stained concrete. Staff recommends replacing the improvements with like -kind materials. The savings, if the improvements were replaced with concrete, would be $5,000. Many property owners have constructed headwalls and curbs for sidewalks and driveways. Staff recommends replacing these headwalls and curbs. Not replacing the curbs and headwalls could save $10,000. FLO Page 2 of 5 Minutes of the Work Session — June 26, 2003 Several of the streets are in established neighborhoods and widening the streets to the ordinance standard would require removal of trees and destruction of improvements that have long existed. The affected streets are Ohio, Fleetwood, McFarland, and Pruett. Paving the streets at the existing width, and paving Pruett at a uniform width, will produce savings of $180,000 and cause less disruption in the neighborhoods. A greater width will change the slope of driveways, sidewalks and lawns. Staff will seek a variance from this requirement. Automatic replacement of existing culverts along North Burnett and Tanglewood may cause the street to be lowered and cause an uneven entrance to private driveways. Historically the water has been drained by the existing culverts. Use of the existing culverts will produce a savings of $385,000 and avoid the potential problem related to paving of private parking areas. At a drainage crossing under North Burnett, elimination of the headwall was considered. This would have produced a savings of $71,500. Staff recommends construction of the headwall to improve safety at the location. Amy and McFarland Streets and Country Club Drive do not have sidewalks along them for their full lengths. Elimination of the sidewalk ramps /curb cuts was considered, but regulations may require their installation. Council expressed a desire to eliminate the sidewalk ramps /curb cuts where no sidewalks exist, if the installation is not required. The savings would be $13,000. The potential savings recommended by staff are $825,000. Council Member Anderson arrived at 4:45 p.m. Receive presentation and discuss post retirement medical benefits and 20 -year retirement. Alison Smith, Human Resources Director, stated that an actuarial study had been performed to reflect the balance sheet cost and the cash costs. The study included current employees only. Under the present system, any employee hired on or after October 1, 1993 must pay 100% of the post retirement health care benefits. At a previous work session other options were presented to Council, including all employees hired hereafter will be required to pay 100% of the post retirement health care benefits or a tiered system, as follows: Years of service 1 >15 5 >20 20 > 25 25+ Cost to retiree 100% 75% 50% 20 %. Current retirees are grand fathered and will pay the same as current employees. Phil Peters, HCC, addressed Council on the actuarial study. The objectives were to update the 1997 actuarial study, reflect the new GASB accounting standards, project annual claims payment, project new annual accounting charges and liability, and develop plan design modifications. Since 1997 there have been significant increases in claims. Under current guidelines, the system is operated and reported on a cash basis. Under the new GASB requirements, the reporting will be on an accrual basis for annual accruals and for retirees and future retirees. Page 3 of 5 Minutes of the Work Session — June 26, 2003 In 1997 the claims were $650,000. The claims grew to $1,053,000 in 2003 and are projected to be $10,650,000 in 2033. The annual accrual was $2,460,000 in 1997, $8,050,000 in 2003 and is project to be $5,400,000 in 2033. The study compared the plan under 25 -year retirement and 20 -year retirement. Conversion to a 20- year retirement is projected to cost the plan an additional 7% each year. A tiered plan reduces projected claims. The City must comply with GASB in the fiscal year beginning after June 15, 2007. Discuss application to the U. S. Department of Housing and Urban Development for 2003- 2004 Community Development Block Grant Funds. Mr. Jackson reminded Council of the process for review of requests for funding for Block Grant funds. Over $3,000,000 in requests was received. The available funds were reduced from last year. In response to a question from Council Member Murray, Mr. Jackson explained that the funding for the repair of private sewer lines was set aside as a pilot program. The program will provide funding for 16 applicants at $3,000 per applicant. Tiffany Foster, Community Development Planner, reviewed the differences between the staff recommendation and the Community Development Advisory Committee (CDAC) recommendation. Bay Area Rehabilitation requested $67,500 for landscaping and drainage work for the handicapped accessible park. CDAC recommended $46,850 for the drainage. Staff reviewed the submission and determined that the drainage cost was $35,048. Phase I of Tejas Park was funded in the last fiscal year. Due to the issues related to East Little League approval of the request was delayed. Eric Halverson, Chairman of CDAC, responded to a question from Council Member Renteria concerning Our Promise for West Baytown, and said that Our Promise was funded $35,000 last year that has not been spent. The Committee prefers to see groups use the funding to seek additional funding. Ms. Foster continued and related that staff supported keeping the funding for the sidewalks, curbs and alleys at the requested level, a 6% decrease from last year. Funding for the vacant lots and alleys clearance is used to fund a position in the Neighborhood Protection Division of the Health Department. The position is currently vacant. Staff recommended that the funding be provided at the requested level. Staff recommends that the funding for Downtown Redevelopment be decreased to $2099 and the funds be placed into Administration. Downtown Redevelopment now has a non - profit organization to assist in the raising of funds. Administration does not have the same capability. Council Member Sheley inquired why funding was not provided for the requested parking for Central Little League Park. Mr. Halverson responded that the Committee had mixed feelings about the project and the limited budget lead the Committee to its recommendation. Page 4 of 5 Minutes of the Work Session — June 26, 2003 Mr. Halverson explained that the reduction in the request for Our Promise was due to the Committee's preference that funding not be used for salaries. The non -salary items were approved. Mr. Halverson further indicated that it was the Committee's intent to spread the pain of reduced funding to all recipients. The Council recessed the meeting at 5:35 p.m. The meeting reconvened at 5:41 p.m. Discuss establishment of Tax Increment Reinvestment Zone (TIRZ) Guidelines and Criteria. Mr. Jackson informed Council that three groups have expressed interest in the creation of Tax Increment Reinvestment Zones. In order to provide uniform evaluation and treatment, it would be beneficial to have a standard set of guidelines and criteria. A draft of guidelines has been provided to Council. The overriding issues are as follows: Does Council wish to consider creation of a TIRZ if the City is the only participant? If the City is the only participant, then the payback is extended over the period with other taxing entities participating in the Zone. The City does not receive the incremental tax during the life of the TIRZ. The guidelines should contain a requirement for the applicant to obtain commitments from other taxing entities prior to making formal application for the Zone. David Hawes, Hawes, Hill & Assoc., the City's TIRZ consultant, responded to a question about the requirement and noted that the other entities cannot give an actual commitment prior to creation of the Zone, but it is appropriate for the developers to measure the level of support from the other entities. The City would weigh each application to determine if the City's policies are fulfilled and the benefits that will be provided by the development. • The City should not operate temporary facilities of a TIRZ. The developer will not operate the facilities. It may be necessary to create a Public Improvement District. Different values may apply to commercial developments. The length of the TIRZ is significant, especially in a residential development, because the improvements may lose value before the end of the TIRZ. Council Member Sheley noted that the guidelines must consider the public safety demands of large residential developments and the cost of the capital expenditures must be recovered. Discuss a request from Commonwealth Housing Corporation for designation of a Tax Increment Reinvestment Zone (TIRZ) for a master planned waterfront community. Louis Foley, Commonwealth Housing Corporation, described the plans for the redevelopment of Bay Oaks Harbor I and Bay Oaks Harbor II and the 550 acres along Tri- Cities Beach Road. It will solve a problem area by bringing the existing infrastructure to code and a package wastewater plant will reduce the load on the City's wastewater system. The first phase will be production homes and later phases will bring larger lots, estate homes and custom homes. Commonwealth is a non - profit corporation, but the development will be conducted by a for profit corporation, Chartwell Land Development, L.L.C. Commonwealth will be the guarantor of the project. Page 5 of 5 Minutes of the Work Session — June 26, 2003 01" Council Members expressed concern over the ability to complete the development, the impact on the sanitary sewer, the elevation, and ingress and egress for the development. Mr. Foley explained that Commonwealth was purchasing only 97 lots in Bay Oaks Harbor 1. He also explained that a production home is one that is put up in a reasonable and quick manner. It is not a modular home. Discuss the selection process for Associate Municipal Court Judge and appointment of a temporary Associate Municipal Court Judge. Due to time limitations, this item was not discussed. Adjourn. There being no fiuther business, Council Member Godwin moved adjournment. Council Member Renteria seconded the motion. The vote follows: Aye: Council Members Anderson, Godwin, Mundinger, Murray, Renteria and Sheley Mayor Alfaro Nay: None. The motion carried and the meeting adjourned at 6:29 p.m. Gaffy W. Smith City Clerk !0�