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HomeMy WebLinkAbout06/27/1985 - Regular Minutes City Council MINUTES REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 7:00 P.M. COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS ABSENT: STAFF PRESENT: STUDENT GOVT. LIAISON: VISITORS PRESENT: Mayor Halter, Councilmen Boughton, Bond, Brown, McIlhaney, Runnels, Tongco None Assistant City Manager VanDever, City Attorney Locke, Director of Capital Im- provements Ash, Deputy Finance Director Schroeder, Parks Director Beachy, As- sistant Parks Director Czimskey, Park Planner Tate, Draftsman Richards, City Secretary Jones, Fire Chief Landua, En- ergy Specialist Shear, Assistant Utili- ties Office Manager Albright, Ambulance Supervisor Schaer, Director of Communi- ty Center Calliham, Major Feldman, Aquatics Superintendent Szabuniewicz, Personnel Manager Dickson, Finance Sec- retary Barnett, Purchasing Agent McCartney, Council Coordinator Jones Hachtman See guest register. A~enda Item No. 1 - Approval of the minutes of the Workshop City Council Meeting, June 12, 1985, the Regular City Council Meeting, June 13, 1985 and the Special City Council Meeting, June 17, 1985. Councilman Tongco stated that in the minutes of the Regular City Council Meeting, June 13, 1985, page 13, the stipulation on the motion granting sponsorship to Ms. Robertson in the amount of $500.00 was that she promote general interest in this co~nunity in the countries in which she visits. Councilman Runnels moved approval of the minutes of the Workshop City Council Meeting, June 12, 1985, the Regular City Council Meeting, June 13, 1985 as corrected, and the Special City Council Meeting, June 17, 1985. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 2 Agenda Item No. 2 - CONSENT AGENDA: BIDS: 50,000 ~ Roll-Off Hoist for Roll-Off Sludge Container Type I Modular Ambulance and Installed Radio System PLATS: Master Preliminary Plat - Belmont Place (85-306) Master Preliminary Plat - Nantucket Phase III (ETJ) (85-307) Final Plat - Southwood Valley Section 25A (85-211) Ail items were approved by common consent. Agenda Item No. 3 - Consideration of the Final Plan for Richard Carter Park. Assistant Parks Director Czimskey presented the item. He stated that Richard Carter Park is located on the corner of Brazoswood Drive and the East Bypass. He listed the primary elements of the proposed design, as follows: (1) Entry Development; (2) Inter- pretive Center; (3) Well Site; (4) Cemetery Site; (5) Adventure Garden; (6) Fountain and/or Sculpture; and, (7) Wildflower Mead- ows. He stated that the entire budget for this project is $100,000.00. He noted that the Parks and Recreation Board has recommended acceptance of the proposed final plan. Councilman Brown moved approval of the Final Plan for Richard Carter Park. Councilman McIlhaney seconded the motion which was approved unan- imously, 7-0. Agenda Item No. 4 - Consideration of the Final Plan for Lincoln Center Landscape. Mr. Casey Tate, Park Planner, presented the item. He noted that the construction and renovation of Lincoln Center is nearing com- pletion and the Parks and Recreation Department is preparing plans for improvements on the site surrounding the Center. He listed the primary elements, in order of their priority, of the proposed final plan, as follows: (1) Recreational Lighting; (2) Plantings; (3) Picnic Units; (4) Exercise Walkway; (5) Playground Improvements; (6) Basketball Court Improvements; (7) Athletic Fields; and, (8) Bridge over creek (to access rear of property). He noted that the Lincoln Center Advisory Committee and the Parks and Recreation Board reviewed the program and design concepts which resulted in the proposed final plan. He further stated that the total budget for this project is approximately $32,000.00 to be funded from Community Development. REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 3 Councilman Boughton moved approval of the Final Plan for the Lincoln Center landscape. Councilman Bond seconded the motion which was approved unanimous- ly, 7-0. Agenda Item No. 5 - Consideration of the Final Plan for Hense] Park Improvements. Mr. Dave Richards, Draftsman for the Parks and Recreation Depart- ment, presented the item. He explained that the city has reached an agreement with Texas A&M University, which will allow the cit- izens of College Station to use the facilities at Hensel Park. He stated that the proposed final plan for the park includes de- velopment of a playground area and an exercise court. He stated that the total budget for the project is approximately $19,000.00 to be funded through the expenditure of parkland dedication funds for capital improvements. He noted that the program and design concepts for this project were approved by the Parks and Recre- ation Board. Mayor Halter pointed out that parkland dedication funds must be spent within designated park zones in the city. He stated that this proposal will provide public parkland in the Northgate area, an area which has been without public park facilities for many years. Councilman Runnels moved approval of the Final Plan for Hensel Park Improvements. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. Agenda Item No. 6 - Consideration of award of contract for East- side Interceptor CIP ~R-81-81-12. Director of Capital Improvements Ash presented the item. He re- ferred to his memorandum dated June 20, 1985 and a letter from Riewe and Wischmeyer, the city's consulting engineering firm, in- cluded in the packet recommending award of contract to Lakemont Construction Company, Inc. of Conroe, the low bidder. He noted that the bid was in the amount of $407,909.25 with a contract completion time of 180 calendar days. Councilman Boughton moved to award the contract for construction of Eastside Interceptor to Lakemont Construction Company, Inc., the low bidder, in the amount of $407,909.25. REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 4 Councilman Brown seconded the motion which was approved unani- mously, 7-0. Agenda Item No. 7 - EMERGENCY ITEM: Consideration of an Ordi- nance amending Chapter 11, Section 2, Sub-section A(1) and Sub- section E of the Code of Ordinances of the City of College Sta- tion, Texas, relating to Water and Sewer Services. Councilman Runnels moved to declare Agenda Item No. 7 an emergen- cy. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. Assistant City Manager VanDever stated that this proposal was in- cluded in the original budget document. Councilman Bond requested the staff to provide justification for the recommendation to increase water rates. Assistant City Manager VanDever stated that the Utility Fund is comprised of water, sewer and electrical, but is considered as a single entity for budgetary and debt service purposes. He ex- plained that each component part is analyzed thoroughly to insure that it is carrying its load. He noted that over the past sever- al years the city has built a new water system, which makes the debt associated with the system relatively high. At this point the water section is not carrying its load and will lose approxi- mately two million dollars in FY 1985-86, in light of the pro- posed increase. He further stated that the city is losing dol- lars in both the water and sewer sections; however, these losses will decrease as the city grows to meet capacity. Councilman Bond asked what is the current water rate. Assistant City Manager VanDever replied that the current water rate is $1.25 per thousand gallons and this proposal would increase the water rate to $1.33 per thousand gallons-effectively representing a six percent increase. Councilman Bond asked what the sewer loss will be for FY 1985-86. Assistant City Manager VanDever replied that the sewer section will lose approximately two million dollars in FY 1985-86. Councilman Bond stated that the city's electricity rate is arti- ficially high because it carries both water and sewer. He ques- tioned if the practice of charging higher rates for electric ser- vices in order to subsidize water and sewer services is typical. REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 5 Assistant City Manager VanDever stated that the practice is not typical, but very few cities have an entire new water system. Mayor Halter also noted that a large portion of the city' system is new. s sewer Councilman Bond asked if the capital improvements to the water and sewer systems were bond funded. Assistant City Manager VanDever replied affirmatively. Mayor Halter stated that the city has built a water system that will allow for expansion several times into the future, but is paying for costs that are not being completely utilized. He pointed out that in the long term this practice will payoff. Councilman Bond noted that in light of how the utility fund is handled, an individual who is a high electrical user and at the same time is a low sewer and water user carries a greater burden in his electric bill. Mayor Halter stated that if the Council so desires it is possible to change the way the utility fund is handled. Councilman Bond asked how the proposed rate of $1.33 per thousand gallons compares with water rates in neighboring cities. Assis- tant City Manager VanDever stated that the proposed rate is on the high side of the rate scale. Councilman Bond asked what the consequences would be if the pro- posed rate increase was not approved. Assistant City Manager VanDever replied that the proposed rate increase will generate approximately $200,000.00 in revenues. Councilman Bond questioned what type of bonds funded the capital improvements to the water and sewer systems. Assistant City Man- ager VanDever explained that in 1976 there were some general ob- ligation bonds issued, but by ordinance they were required to be supported by revenues of the utility system. Councilman Bond noted that the city currently has water rates which are ranked high on the rate scale but continues to propose rate increases. He questioned what will be the pattern for the future. 005 1! REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 6 Councilman McIlhaney questioned what the effects were of the re- financing of the bonds. Assistant City Manager VanDever stated that the refinancing transaction will save the city approximately $300,000.00 - $400,000.00 per year. He noted that the savings effected for FY 85-86 were built into the proposed budget. Councilman Brown asked what size population is the city's water system built to serve. Director of Capital Improvements Ash stated that the well field was constructed approximately thirteen miles northwest of the comunity. He noted that there is a thirty inch pipe line that comes into the city that will serve up to seventeen million gal- lons of water per day and currently serves between nine and ten million gallons per day. He further stated that at the present time there are three wells, capable of producing between thirteen and fourteen million gallons per day. He noted that more wells will be constructed as needed. He further stated that when the well field can supply seventeen million gallons per day, the ca- pacity of the thirty inch water line, the city has the ability to install an in-line booster station on the pipe line to boost the capacity of the line up to twenty-five million gallons per day, which is approximately three times the city's current maximum. Mayor Halter stated that the major costs of the system were the pipes and the large facilities. He suggested that Councilmembers who have not seen the city's facilities should do so. Councilman McIlhaney asked what major factors were requiring the proposed increase. She noted that there are between $400,000.00 - $500,000.00 additional funds this year due to the savings ef- fected from the refinancing of the bonds and the proposed rate increase. Assistant City Manager VanDever stated that the proposed increase is associated with everything in the budget and referred to page 230 of the budget document. Councilman Bond questioned how the pipe line installed to the new elevated water tower was funded. Mayor Halter replied that the line was funded through bond funds. Director of Capital Improvements Ash explained that the pipe line was installed to serve the elevated water tower and not to gain customers. REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 7 Councilman Boughton pointed out that the elevated water tower was to have been built in the Southwood Valley area, but the location was shot down for several reasons, as follows: (1) the location was in line with the airport; and, (2) the location has a fault that runs through it. Councilman Brown questioned how much population growth will be required to break even. Assistant City Manager VanDever stated that he was not prepared to address the question. Councilman Bond stated that it is relevant to know how far into the future the city has built itself into a debt service situa- tion with rates that are considerably above normal. Mayor Halter stated that in the years past the projections that were made by the city were never enough. He noted that there is a possibility that the system was over built, but that he does not believe that to be true. Councilman Boughton moved approval of Ordinance No. 1598 amending Chapter 11, Section 2, Sub-section A(1) and Sub-section E of the Code of Ordinances of the City of College Station, Texas, relat- ing to Water and Sewer Services. Councilman Tongco seconded the motion which was approved unani- mously, 7-0. Agenda Item No. 8 - Discussion of Hotel/Motel Tax Fund FY 1985-86. Mayor Halter referred to a memorandum distributed which delin- eated the Finance Council Committee's recommendations concerning the appropriation of funds from the Hotel/Motel Tax Fund for FY 1985-86. He explained that there are requests totaling $573,000.00 and anticipated funds of $433,000.00, which leaves a difference between requests over funds available of approximately $130,878.00. He stated that the Committee recommends a one per- cent increase in the Hotel/Motel Tax Rate with the provision that the proposed rate be in effect for one year and at that time will be reconsidered by Council. After further discussion, Mayor Halter stated that the increase in the tax rate would be in effect from July 11, 1985 to June 30, 1986. no5 13 REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 8 Councilman Tongco expressed concern with the limited amount of contingency available for FY 1985-86 and suggested that the fund- ing for the summer concerts be trimmed down if possible. Parks Director Beachy stated that the bands for the summer con- certs are booked six months in advance and a separate contract is negotiated with each band. Councilman McIlhaney suggested that next year during the budget process the Council review the requests for appropriations from the Hotel/Motel Tax Fund and direct appropriations more toward tourist and convention promotion and other programs of that mag- nitude. Mayor Halter stated that the Council should review the policies regarding the types of programs to be supported with monies from the Hotel/Motel Tax Fund. He suggested that the city's art pro- grams be coordinated with the Arts Council to effect more finan- cial savings as well as to produce programs of wider appeal. Councilman Tongco stated that she did not want to infer that the proposed programs do not show insight, but expressed her opinion that the Council is put in a position where it must approve fund- ing because the items are booked so far in advance. A~enda Item No. 9 - Consideration of an ordinance increasin~ the Hotel/Motel tax rate. Councilman Boughton moved approval of Ordinance No. 1599 increas- ing the Hotel/Motel tax rate to six percent of the consideration paid by the occupant of such room to such hotel, including the addition of a statement to read "It is ordained that this ordi- nance shall become effective from July 11, 1985 and continuing in effect until June 30, 1986 in accordance with the City Charter of the City of College Station." Councilman Runnels seconded the motion which was approved unani- mously, 7-0. Mayor Halter pointed out that the funding for the Artist in Resi- dence should be in the amount of $10,500.00 and the funding for the Arts Council should be in the amount of $64,500.00. He ex- plained that this is due to the fact that grant monies in the amount of $4,500.00 were received for this project through the Arts Council. nO5114 REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 9 Agenda Item No. 10 - Consideration of an ordinance lev~in~ the taxes for the use and support of the Municipal Government of the City of College Station and ~rovidin~ for the Interest and Sink- in~ Fund for the Year 1985-86 and a~ortionin~ each levy for the specific purpose. Mayor Halter stated that if the Council intended to fund the air- port and the Branch Library in College Station it would be neces- sary to increase the property tax rate by approximately $.02/$100 of assessed valuation. Assistant City Manager VanDever distributed and summarized a mem- orandum delineating all the changes that were made to the origi- nal budget document. Councilman Brown asked if it would be possible to fund the Col- lege Station Branch Library and the Bryan Library with monies from the Gulf States Utilities Rebate. Assistant City Manager VanDever stated that funding of the li- braries with monies from the Gulf States Utilities Rebate would not be appropriate. He noted that Utility Fund revenues cannot be appropriated for General Fund items. After further discussion about the use of the Rebate monies, Councilman Tongco asked what is being done with the interest in- come received from the Gulf States Utilities Rebate. She stated that she has a problem with increasing the water rate when there is $1,000,000.00 sitting in the bank. Councilman Boughton explained that the Council previously decided that the monies would be better utilized if they were kept and the interest accrued is used to fund energy conservation pro- grams. She pointed out that by maintaining the Rebate intact it will be more beneficial in the long term to the citizens of Col- lege Station. Mayor Halter stated that instead of increasing the water rate the Council could authorize appropriation of $200,000.00 from the GSU Rebate to subsidize the Utility Fund, but in his opinion it would only postpone getting the water rates to the point where they are self-sustaining. Councilman Brown asked if there would be any possible way to ap- propriate $200,000.00 from the GSU Rebate to fund the College Station Branch Library in order to avoid raising property taxes. nO51 i5 REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 10 Assistant City Manager VanDever explained that there are two transfers that can be made from the Utility Fund to the General Fund, transfers to cover administrative costs and transfers that are considered profit. He explained that the Public Utility Com- mission allows a transfer of sixteen percent on equity and the city's practice to this date has been to transfer fourteen per- cent on equity. He pointed out that if the Council so desired it could increase the percentage to sixteen percent. Councilman McIlhaney stated that she would rather the city in- crease the percentage of profit and transfer those funds to cover the libraries rather than increase property taxes. Mayor Halter stated that the voters, by over seventy percent, approved a $.02 increase in the tax rate to support a library. Councilman McIlhaney replied that the voters approved a library and a $.02 increase in the property tax rate if it were needed. She stated her opinion that there is enough community interest in the library that some of the funds can come from fund raisers. Mayor Halter expressed his opinion that the city would receive private donations for the library, but noted that there is a cer- tain amount of uncertainty associated with private funding. He pointed out that if the Council decides not to raise property taxes then the problem of funding will only be delayed another year. He further noted that a library is very expensive to oper- ate and the city will need to provide support to sustain it in the future. He stated his opinion that there is a need for a community library. Councilman Runnels moved approval of Ordinance No. 1600 increas- ing the property tax rate to $.38 on each $100.00 of assessed valuation. Councilman Boughton seconded the motion which was approved by a vote of 4-3 as follows: FOR: Mayor Halter, Councilmen Boughton, Bond, Runnels AGAINST: Councilman Brown, McIlhaney, Tongco. n ("j 5 I t6 REGULAR CITY COUNCIL MEETING THURSDAY, JUNE 27, 1985 PAGE 11 A~enda Item No. 11 - Consideration of an ordinance adopting a Budget for the 1985-1986 Fiscal Year and authorizin9 expenditures therein. Councilman Boughton moved approval of Ordinance No. 1601 adopting a Budget for the 1985-1986 Fiscal Year and authorizing expendi- tures therein as amended by Council in previous discussions. Councilman Brown seconded the motion which was approved unani- mously, 7-0. A~enda Item No. 12 - Hear Visitors. No one spoke. A~enda Item No. 13 - Closed session to discuss pendin~ litigation [6252-17(2)(e)] and personnel [6252-17(2)(9)]. Am Personnel [6252-17 (2)(g)]. 1. Discussion of Administrative Appointments. The Council moved to closed session and later reopened to the public. A~enda Item No. 14 - Action on closed session. No action was taken on closed session. A~enda Item No. 15 - Adjourn. Mayor Halter adjourned the meeting at 9:20 P.M. ATTEST .- ~ ~ Dian- Jone ,~~y Secretary Gary Hair, Mayor c) 051 EitlEST RE,~ISTER RE~UI.AR CZ:Fid COUNCI£ ~EETINEi TJ.IUR$1)A,lJ~ JLINE 27~ ! 985 7:00 P.M. 18. 19. 21. 25. 10. 27. 28. 12. 29. 13. 30. 14.. 31. 32. 16. 33. 17. 005118