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2004 07 22 CC MinutesMINUTES OF THE REGULAR SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN July 22, 2004 6:30 p.m. The City Council of the City of Baytown, Texas, met in regular session on July 22, 2004, at 6:30 p.m. in the Council Chamber of Baytown City Hall with the following in attendance: Ronnie Anderson Sammy Mahan Don Murray Mercedes Renteria III Scott Sheley Calvin Mundinger Gary M. Jackson Bob Leiper Ignacio Ramirez, Sr. Gary W. Smith Council Member Council Member Council Member Council Member Council Member Mayor City Manager Assistant City Manager City Attorney City Clerk The meeting was opened with a quorum present and Council Member Sheley led the pledge of allegiance and offered the invocation. Council Member Sheley moved for a brief recess in order for the Mayor to present a proclamation to the Blue Thunder Softball Team, state champions. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. Mayor Mundinger reconvened the meeting at 6:38 p.m., after which the following business was conducted: Consider approval of minutes of the special meeting held on July 6, 2004. Council Member Murray moved approval of the minutes of the special meeting held on July 6, 2004. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. Council Member Anderson abstained. The motion carried. Page 2 of 13 Minutes of the Regular Session — July 22, 2004 Consider approval of minutes of the work session and regular meeting held on July 8, 2004. Council Member Mahan moved approval of the minutes of the work session and regular meeting held on July 8, 2004. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. Council Member Anderson abstained. The motion carried. Consider approval of minutes of the special meeting held on July 16, 2004. Council Member Sheley moved approval of the minutes of the special meeting held on July 16, 2004. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. Consider selection of Council Member, District 3. The following persons registered to speak to Council regarding the selection of Council Member, District 3: Tom Cottar.1214 Mesquite Lane Mr. Cottar spoke in favor of the appointment of Charles Shaffer to the District 3 Council Member position. David Havel, 613 S. Circle Mr. Havel spoke in favor of the appointment of Charles Shaffer to the District 3 Council Member position. Ginner McKay, 148 N. Burnet Ms. McKay spoke in favor of the appointment of Lisa Urban to the District 3 Council Member position. Korky Smith, no address aiven Ms. Smith spoke in favor of the appointment of Lisa Urban to the District 3 Council Member position. Page 3of13 Minutes of the Regular Session — July 22, 2004 Mayor Mundinger then opened the floor for nominations. Council Member Sheley nominated Charles Shaffer. Council Member Anderson nominated Lisa Urban. Council Member Renteria nominated Kenneth Mayo. Charles Shaffer's name was drawn first. The vote follows: For: Council Members Mahan, Renteria, and Sheley. Against: Council Members Anderson, Murray and Mayor Mundinger. Mr. Shaffer was not elected. Kenneth Mayo's name was drawn second. The vote follows: For: Council Members Renteria and Sheley. Against: Council Members Anderson, Mahan, Murray and Mayor Mundinger. Lisa Urban's name was drawn third. The vote follows: For: Council Members Anderson, Murray and Mayor Mundinger. Against: Council Members Mahan, Renteria, and Sheley. Ms. Urban was not elected. Mayor Mundinger informed Council that, upon the advice of the City Attorney, a deadlock could not be declared and that this item will be carried over to future meetings until it is resolved and someone is appointed to represent District 3. The Council discussed how to proceed. It was ultimately decided that those candidates who had withdrawn their names from consideration could place them back into consideration, if they desired. City Attorney Ramirez was asked to research whether or not the decision could be made by the toss of a coin, or other method of chance. Administer Oath of Office to the newly appointed Council Member and deliver Certificate of Appointment. This item was not necessary. Page 4 of 13 Minutes of the Regular Session — July 22, 2004 Consider Proposed Ordinance No. 040722 -1, the first reading of the Ordinance annexing property currently within the extra - territorial jurisdiction of the City of Baytown and being Lot 14 of Huron Subdivision in Harris County, Texas. The property is located south of Interstate Highway No. 10 and west of North Main Street. Mayron Babin, the owner of the property, requested annexation as a prerequisite to receiving City services. The property is proposed to be developed for equipment sales. City Council approved a petition to annex this property. In accordance with state law, two public hearings were held on the proposed annexation on June 24, 2004. If approved on first reading, the ordinance will be published on July 26, 2004, and may be read for the second time on August 26, 2004. Council Member Murray moved adoption of the proposed ordinance. Council Member Anderson seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9837 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF LOT 14 OF HURON SUBDIVISION, HARRIS COUNTY, TEXAS; WHICH SAID TERRITORIES LIE ADJACENT TO AND ADJOIN THE PRESENT BOUNDARY LIMITS FOR THE CITY OF BAYTOWN, TEXAS. Consider Proposed Ordinance No. 040722 -2, the first reading of the Ordinance annexing property currently within the extra - territorial jurisdiction of the City of Baytown and being a 22.55 acre tract situated in the Jacob Armstrong Survey, Abstract 2, in Chambers County, Texas. The property is located east of State Highway 146 and south of Staples Addition. Brazos River North South LTD., the owner of the property, requested annexation as a prerequisite to receiving City services. The property is proposed to be developed as a residential subdivision. City Council approved a petition to annex this property. In accordance with state law, two public hearings were held on the proposed annexation on June 24, 2004. If approved on first reading, the ordinance will be published on July 26, 2004, and may be read for the second time on August 26, 2004. Council Member Anderson moved adoption of the proposed ordinance. Council Member Sheley seconded the motion. The vote follows: Page 5 of 13 Minutes of the Regular Session — July 22, 2004 Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9838 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF A 22.55 ACRE TRACT OF LAND IN THE JACOB ARMSTRONG SURVEY, ABSTRACT 2, CHAMBERS COUNTY, TEXAS; WHICH SAID TERRITORIES LIE ADJACENT TO AND ADJOIN THE PRESENT BOUNDARY LIMITS FOR THE CITY OF BAYTOWN, TEXAS. Consider Proposed Ordinance No. 040722 -3, the first reading of the Ordinance annexing property currently within the extra - territorial jurisdiction of the City of Baytown and being a 71.570 -acre tract of land located in the William Bloodgood Survey, A4, and the J. P. Sjolander Survey, A -1644, south of Needlepoint Road and east of Landmark Estates in Harris County, Texas. Moody Simmons Baytown, Ltd., the owner of the property, requested annexation as a prerequisite to receiving City services. The property is proposed to be developed as a residential subdivision. City Council approved a petition to annex this property. In accordance with state law, two public hearings were held on the proposed annexation on June 24, 2004. If approved on first reading, the ordinance will be published on July 26, 2004, and may be read for the second time on August 26, 2004. Council Member Murray moved adoption of the proposed ordinance. Council Member Mahan seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9839 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF A 71.570 ACRE TRACT OF LAND IN THE WILLIAM BLOODGOOD SURVEY, A -4, AND THE J.P. SJOLANDER SURVEY, A -1644, LOCATED SOUTH OF NEEDLEPOINT ROAD AND EAST OF LANDMARK ESTATES IN HARRIS COUNTY, TEXAS; WHICH SAID TERRITORIES LIE ADJACENT TO AND ADJOIN THE PRESENT BOUNDARY LIMITS FOR THE CITY OF BAYTOWN, TEXAS. Page 6of13 Minutes of the Regular Session — July 22, 2004 Consider Proposed Ordinance No.0407224, approving Change Order No. 6 to the Baytown Community Center Renovations Project contract with the Spigener Corporation. Proposed Ordinance No. 040722 -4 approves Change Order No. 6, in the amount of $7,260.98, to the Baytown Community Center Renovation Project with the Spigener Corporation. The original contract amount with Spigener was $1,472,935. Change Order No. 1, in the amount of $24,886.56, was approved administratively and increased the contract amount to $1,497,821.56. Change Order No. 2 increased the contract amount to $1,524,827.10. Change Order 3, which was for various minor items, did not increase the contract amount since the cost associated with the revisions was covered by a credit to the unused structural allowance. Change Order No. 4 in the amount of $30,763.65 was approved for painting and texturing throughout the building. Change Order No. 5 was approved for door louvers, a roof drain, and gas line relocation. Change Order No. 6 approves a new metal plate cover, a box built around a column, electrical wiring for circulating pumps, electrical wiring for A/C controls, and re- certifying the backflow preventer. The new contract amount will be $1,575,883.46. Change Order No. 6 is a 0.49% increase over the original contract. Cumulatively, all change orders have increased the contract amount by 6.9 %. The electrical items and re- certification of the backflow preventer were items that were not included in the plans and specifications prepared by the architect. The City will seek compensation from the consultant by filing a claim against the architect's professional liability insurance policy upon completion of the project. Council Member Anderson moved adoption of the proposed ordinance. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9840 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING CHANGE ORDER NO. 6 WITH THE SPIGENER CORPORATION FOR THE BAYTOWN COMMUNITY CENTER RENOVATIONS PROJECT; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SEVEN THOUSAND TWO HUNDRED SIXTY AND 98/100 DOLLARS ($7,260.98); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider Proposed Ordinance No. 040722 -5, awarding a contract for professional services for evaluation of the Central District Waste Water Treatment Plant Rehabilitation Project. Proposed Ordinance No. 040722 -5 awards a professional services contract in the amount of $168,088 for engineering services to Lockwood, Andrews, and Newnan, Inc. for preparing a preliminary engineering report (PER) of the Central District Waste Water Treatment Plant Rehabilitation Project. Compensation for basic services will not exceed $128,528 and $3,540 for reimbursables. Page 7 of 13 Minutes of the Regular Session — July 22, 2004 Additional services will not exceed $30,320 and will include all TWDB coordination, PEFR report, and continued TWDB support. This project will also include surveying not to exceed $3,500 and geotechnical services not to exceed $2,200. The Certificates of Obligation, Series 2004, will fund the PER and the future final design professional services contract. Council Member Renteria moved adoption of the proposed ordinance. Council Member Sheley seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9841 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A PROFESSIONAL SERVICES AGREEMENT WITH LOCKWOOD, ANDREWS AND NEWNAN, INC., FOR EVALUATION OF THE CENTRAL DISTRICT WASTE WATER TREATMENT PLANT REHABILITATION PROJECT; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN IN AN AMOUNT NOT TO EXCEED ONE HUNDRED SIXTY -EIGHT THOUSAND EIGHTY -EIGHT AND NO /100 DOLLARS ($168,088.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider Proposed Ordinance No. 040722 -6, approving the purchase of communication radios for use in the Public Works Department, Parks & Recreation Department, and Communications Division. Proposed Ordinance No. 040722 -6 approves the purchase of 161 radios for the Public Works Department, Parks & Recreation Department, and Communications Division from Motorola, Inc., through H -GAC. The purchase price is $404,516, including the H -GAC fee of $5,922.65 and includes 120 radios for Public Works, 25 radios for Parks & Recreation, and 16 radios for Communications. This will complete our plan, which began in 1999, to convert all Departments to the Harris County 800 MHz radio system. It affords optimum interoperability between all Departments for normal business communications and in disaster recovery or other events that involve multiple departments. The radios will replace the UHF radios currently in use, which were hand -me -downs from the Police Department. The equipment is several decades old and most devices are non - repairable and have poor signal quality. These frequencies will be returned to FCC as we will not renew our current license. Funding is available from the voter approved 2001 General Obligation Bonds, Series 2003 and 2004. Council Member Anderson moved adoption of the proposed ordinance. Council Member Murray seconded the motion. The vote follows: Page 8 of 13 Minutes of the Regular Session — July 22, 2004 Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9842 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE PAYMENT OF FOUR HUNDRED FOUR THOUSAND FIVE HUNDRED SIXTEEN AND NO / 100 DOLLARS ($404,516.00) TO HOUSTON - GALVESTON AREA COUNCIL FOR THE PURCHASE OF RADIOS FOR PUBLIC WORKS, PARKS & RECREATION, AND COMMUNICATIONS DEPARTMENTS; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider Proposed Ordinance No. 040722 -7, authorizing the purchase of VoIP hardware and software. Proposed Ordinance No. 040722 -7 authorizes the purchase of VoIP hardware and software from Verizon South, Inc. in the amount of $299,541.10. This hardware is the next phase in converting all of the telephones at locations capable of handling digital phones from CentraNet (managed by Verizon) to a new digital phone system managed internally. Making the purchase at this time will save the City of Baytown approximately 7% over waiting until the October/November time frame. This purchase will include all the required hardware and software necessary to make the transition with only the installation and configuration remaining to be accomplished. Verizon South, Inc. is a QISV vendor, thereby satisfying the sealed bid requirement of state law. Funding is available from the voter approved 2001 General Obligation Bonds, Series 2004. Council Member Murray moved adoption of the proposed ordinance. Council Member Mahan seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9843 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE PAYMENT OF TWO HUNDRED NINETY -NINE THOUSAND FIVE HUNDRED FORTY -ONE AND 10 /100 DOLLARS ($299,541.10) TO VERIZON SOUTH, INC., FOR THE PURCHASE OF VOIP HARDWARE AND SOFTWARE; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 9 of 13 Minutes of the Regular Session — July 22, 2004 Consider Proposed Resolution No. 040722 -1, establishing a policy relating to the annexation of adjacent streets or roads in conjunction with petitions for annexation. Proposed Resolution No. 040722 -1 establishes a policy requiring a petitioner to provide a sufficient legal description of any adjacent street or road not then within the city limits at the time of filing a petition for annexation. The inclusion of the description of the adjacent street or road will allow the City to annex the street or road at the same time as the requested tract is annexed. This policy will avoid confusion over law enforcement and other authority related to the street or road. Council Member Anderson moved adoption of the proposed resolution. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. RESOLUTION NO. 1664 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ESTABLISHING A POLICY CONCERNING THE ANNEXATION OF ROADS OR STREETS ADJACENT TO PROPERTY SUBJECT TO A PETITION FOR ANNEXATION; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Receive quarterly financials and investment report for the calendar quarter ending June 30, 2004 for the City of Baytown. These statements were presented to the Finance Committee on Tuesday, July 20, 2004. City Manager Jackson informed Council that the sales tax for the year -to -date is slightly up, but there is concern over the effect of June's heavy rainfall has had on water revenue, street work and the amount of chemicals necessary for wastewater treatment. Consent Agenda a. Proposed Resolution No. 040722 -2 authorizes and directs the Mayor to execute General Certificates of Local Governmental Unit relating to Southeast Texas Housing Finance Corporation's ( "SETH ") issuance of Multifamily Housing Revenue Bonds. SETH is issuing the bonds to finance the construction of a multifamily property for seniors in Pasadena. The issuance of the bonds is expected to advance SETH's continued efforts in providing safe, decent, sanitary and affordable housing to residents of its sponsoring political subdivisions, including the City of Baytown. To gain approval of the Texas Attorney General's Office for the issuance of the desired bonds, SETH has asked that the City of Baytown confirm certain information regarding SETH, including, but not limited to, the City's approval of SETH's Restated Articles of Incorporation, the City's appointment of Daniel Sandoval to SETH's Board of Directors, and the fact there is no litigation pending or threatened against the City relating to SETH. Page 10 of 13 Minutes of the Regular Session — July 22, 2004 b. Proposed Resolution No. 040722 -3 approves the application by the City Manager for a grant from the United States Department of Justice for the Local Law Enforcement Block Grants Program. The proposed resolution designates the City Manager as the Authorized Official and authorizes the City Manager to accept any grant awarded from the application. The total grant will be $19,250. The City of Baytown's match portion of the grant is $2,139. C. Proposed Ordinance No. 040722 -8 awards the first renewal of the annual electrical services contract to Instrumentation and Electrical Specialist, LLC., (IES) in the amount of $75,000. IES submitted a written request to exercise their renewal option for the same pricing, terms, and conditions. All departments use the services provided under this contract for electrical services regarding emergencies, bucket truck service and miscellaneous electrical services. The Parks & Recreation Department is the primary user of the bucket truck service. d. Proposed Ordinance No. 040722 -9 sets a public hearing concerning a revised Municipal Drainage Utility System (MDUS) fee at 6:40 p.m. on Thursday, September 9, 2004 in the Council Chamber, Baytown City Hall. When the MDUS fee is revised a public hearing must be held as required by the Municipal Drainage Utility Systems Act. The governing body must publish the notice three times before the date of the hearing. The first publication must occur on or before the 30`h day before the date of the hearing. Council Member Murray moved adoption of the consent agenda, items a through d. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. RESOLUTION NO. 1665 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE THE GENERAL CERTIFICATE OF LOCAL GOVERNMENTAL UNIT RELATING TO SOUTHEAST TEXAS HOUSING FINANCE CORPORATION'S ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS (PRIMROSE AT PASADENA APARTMENTS) IN ONE OR MORE SERICES IN AN AGGREGATE AMOUNT NOT TO EXCEED SIXTEEN MILLION AND NO /100 DOLLARS ($16,000,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 11 of 13 Minutes of the Regular Session — July 22, 2004 RESOLUTION NO. 1666 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO MAKE APPLICATION TO THE UNITED STATES DEPARTMENT OF JUSTICE FROM THE LOCAL LAW ENFORCEMENT BLOCK GRANTS PROGRAM; AUTHORIZING TWO THOUSAND ONE HUNDRED THIRTY -NINE AND NO/IOODOLLARS ($2,139.00) IN MATCHING FUNDS; DESIGNATING AN AUTHORIZED REPRESENTATIVE; AUTHORIZING THE REPRESENTATIVE TO ACCEPT OR AFFIRM ANY GRANT AWARD THAT MAY RESULT THEREFROM; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ORDINANCE NO. 9844 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE CONTRACT OF INSTRUMENTATION AND ELECTRICAL SPECIALIST, LLC FOR THE ANNUAL ELECTRICAL SERVICES CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SEVENTY - FIVE THOUSAND AND NO /100 DOLLARS ($75,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ORDINANCE NO. 9845 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, SETTING THE TIME, DATE AND PLACE FOR A PUBLIC HEARING ON THE SCHEDULE OF DRAINAGE CHARGES; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider approving the dates and times of Council budget work sessions. This item allows Council to confirm these dates and times or to select dates and times preferred by Council. The Council budget work sessions have been scheduled as follows: • Monday, August 2 "a from 7 a.m. until approximately noon, • Tuesday, August P from 7 a.m. until approximately noon, and • Wednesday, August 4'h from 3:30 p.m. until approximately 6 p.m. Council Member Murray moved approval of the above referenced dates and times for the Council's budget work sessions and the special Council meeting to receive the budget on Friday, July 30 at 8:00 a.m.. Council Member Mahan seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. Page 12 of 13 Minutes of the Regular Session — July 22, 2004 Discuss limited purpose annexation and a proposed strategic partnership agreement. City Manager Jackson explained to Council that growth is occurring in the City's extraterritorial jurisdiction and that Municipal Utility Districts (MUDs) are likely to develop there. The MUDs are used to finance the infrastructure for the developments. The MUD sells debt and the taxes paid to the MUD pay for the infrastructure. If the City should annex the MUD under the usual conditions, the City must assume all debt of the MUD. To obtain City utility services, the MUD could request annexation. Otherwise the MUD must build its own utilities. The Baytown Area Water Authority could sell water to the MUD on a wholesale basis, but the MUD must extend lines to the BAWA facility. However, with limited purpose annexation and a strategic partnership agreement, the City could specify the services it would provide. Staff has discussed such an agreement with Chambers County MUD No. 1. The City could also collect sales and hotel/motel taxes in the area. Staff is proposing to provide water and collect sales tax in the area. It is difficult to project if sales tax will be generated, since it is market -driven and retail may not develop. Water would be sold at one and one -half the City's usual rate. The term of the agreement would be based on the remaining term of the water supply contract with the MUD. The City would regulate off - premise signs, junkyards and sexually oriented businesses. The state statute requires two public hearings before such an annexation may take place. Dale Conger, representing Chambers County MUD No. 1, expressed the MUD's concern for continuation of the MUD's water supply. Assistant City Manager Leiper informed Council that the City would be responsible for the same type of fire response as with the mutual -aid agreements it already has in place with other entities. The City would be providing water. The lines are in place. The City has the capacity to sell the water. He said there would be no negative impact if retail did not develop in the area. Consider the request for an audit on income on /generated by the Baytown Nature Center. Council Members Sheley, Mahan and Renteria requested this item be placed on the agenda. This item was discussed during the work session held prior to the meeting and therefore no action was required. City Manager's Report. City Manager Jackson announced that the annual National Night Out would be held on Tuesday, August 3, 2004, in neighborhoods throughout the City. Mr. Jackson distributed photographs of the Park Street pavement failure. He said it is a serious problem that requires attention. The structural damage could require $500,000 to repair. Goose Creek undermined the roadway. Page 13 of 13 Minutes of the Regular Session— July 22, 2004 Adjourn. Council Member Anderson moved that the meeting adjourn. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. There being no further business, the meeting adjourned at 8:28 p.m. Gary W. Smith City Clerk P�