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HomeMy WebLinkAbout02/05/1990 City Council MIN~.FrES OF THE GOUNCIL MEETING HELD ON FEBRUARY 5, 1990 The Regular Session of the City Council of the City of The Colony, Texas was called to order at 7:00 p,m, on the 5th day of February, 1990 at City Hall with the following Council roll call: Don Amick, Mayor Present Steve Withers, Councilman Absent Mike Alianell, Councilman Present Steve Glazener, Councilman Absent Dick Weaver, Councilman Present Joel Marks, Councilman Present and with four present, a quorum was established and the following items were addressed: 1. OATH OF OFFICE ADMINISTERED TO COUNCILMAN PLACE 1 Mayor Amick administered the Oath of Office to Dr. Bill Manning, who had been appointed on February 1, 1990 to fill the Place 1 Council seat vacated by Rick Harris. After the oath was administered, Councilman Manning took his place on the council dais. PRE-COUNCIL~/ORK SESSION 1. DISCUSSION OF CONSENT AGENDA ITEMS 3E - Councilman Manning asked if mowing and trash pick up are separate items in Mr. Miller's bid. Bill Hall said they are, and noted that the City has used Mr. Miller in the past, going on to say that our bid specs did not include trash pick up, but Mr. Miller bid it as an extra. Mr. Hall did state that the $18.00 includes mowing and bagging the clippings. Brief discussion regarding having medians and parkways mowed by contract to keep from adding a mower. 3F - Councilman Manning asked if bidders changing items is a problem, ie, type of metal, length, etc. Mr. Hall said David Yordy had reviewed these bids and that both metals are acceptable. Mr. Hall went on to say that no one supplier could furnish all the items specified, therefore the recommendation is to award to the bidder who can furnish the most items for the least. 3I - Councilman Manning asked about relocating the fence on the IBM property. Mr. Hall said the cost will be approximately $21,000.00. 2. DISCUSSION OF REGULAR AGENDA ITEMS 6.- Brief discussion regarding parking in the area. 00350. Recess at 7:20 p.m. REG~JLAR SESSION AGENDA 1. PLEDGE OF ALLEGIANCE Mayor Amick led the Council and audience in the pledge of allegiance to the flag of the United States of America. 2. CITIZEN INPUT R.W. McCarthy, 7200 Galloway Ct. requested help from the city in repairing the culvert between his house and his neighbor's house, noting it appears to have collapsed, going on to say a child can get into it and that he has chased several children out. Mayor Amick directed the City Manager to address that problem and get back to Mr. McCarthy. 3. CONSENT AGENDA A. CONSIDERATION OF APPROVAL OF MINUTES OF THE JANUARY 8, AND 15 COUNCIL MEETINGS Councilman Weaver moved to approve the minutes as read and Councilman Marks seconded the motion which carried with all members voting Aye, with the exception of Councilman Manning who abstained. B. CONSIDERATION OF AN ORDINANCE ORDERING AN ELECTION OF THE QUALIFIED VOTERS ON THE FIFTH DAY OF MAY, 1990 FOR THE PURPOSE OF ELECTING FOUR COUNCILMEMBERS FOR THE CITY OF THE COLONY Mayor Amick read the caption of the ordinance as follows: AN ORDINANCE OF THE CITY OF THE GOLONY, TEXAS, ORDERING AN ELECTION OF THE QUALIFIED VOTERS OF SAID CITY ON THE FIFTH DAY OF MAY, 1990, FOR THE PURPOSE OF ELECTING FIVE CO*JNCILMEMBERS FOR SAID CITY Councilman Weaver moved to approve the ordinance, as amended to include Place 1 on the ballot and Councilman Marks seconded the motion which carried with a unanimous roll call vote. C. CONSIDERATION OF AN RESOLUTION APPROVING A JOINT ELECTION WITH LEWISVILLE INDEPENDENT SCHOOL DISTRICT TO BE HELD MAY 5, 1990 Councilman Weaver moved to approve the resolution and Councilman Marks seconded the motion which carried with a unanimous roll call vote. D. CONSIDERATION OF ACCEPTANCE OF A LETTER OF RESIGNATION FROM WAYNE SANDY OF THE PARK AND RECREATION BOARD 008,50 Councilman Weaver moved to accept the resignation, and Councilman Marks seconded the motion which carried with a unanimous roll call vote. E. CONSIDERATION OF ACCEPTANCE, AWARD AND APPROVAL OF AN ORDINANCE AUTHORIZING A CONTRACT FOR THE ANNUAL MOWING OF STEWARTS CREEK PARK, A PORTION OF NORTH COLONY BOULEVARD, A PORTION OF SOUTH COLONY BOULEVARD AND A PORTION OF PAIGE ROAD Councilman Weaver moved to accept the bids, award as recommended by staff and approve the ordinance authorizing the contracts; Councilman Marks seconded the motion which carried with a unanimous roll call vote. F0 CONSIDERATION OF ACCEPTANCE, AWARD AND APPROVAL OF AN ORDINANCE AUTHORIZING A CONTRACT FOR THE ANNUAL PURCHASE OF WATER DEPARTMENT PARTS AND SUPPLIES Councilman Weaver moved to accept the bids, award as recommended by staff and approve the ordinance authorizing the contracts; Councilman Marks seconded the motion which carried with a unanimous roll call vote. G. CONSIDERATION OF APPROVAL OF A POLICY REGARDING THE DISBURSEMENT OF DONATED FUNDS Councilman Marks agreed with the policy but felt one item should be added, stating that a Council committee should be formed to make decisions regarding donations if requested. Councilman Weaver moved to approve the policy as amended and Councilman Marks seconded the motion which carried with a unanimous roll call vote. H. CONSIDERATION OF APPROVAL OF COUNCIL EXPENDITURES Councilman Weaver moved to approve the expenditures and Councilman Marks seconded the motion which carried with a unanimous roll call vote. I. CONSIDERATION OF APPROVAL OF A RESOLUTION REGARDING IBM R.O.W. FOR HWY 121 Mayor Amick read the caption of the resolution as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS AUTHORIZING A CONTRACT BETWEEN THE CITY AND STATE OF TEXAS RELATIVE TO THE CITY'S ASSUMPTION OF DRAINAGE RESPONSIBILITIES FOR AN AREA TO BE ABANDONED AND QUIT CLAIMED BY THE STATE; AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH AN AGREEMENT; AND DECLARING AN EFFECTIVE DATE After a brief discussion Councilman Marks moved to approve 003500 the resolution and Councilman Alianell seconded the motion which carried with a unanimous roll call vote. 4. PUBLIC HEARING FOR THE PURPOSE OF HEARING CITIZEN INPUT REGARDING THE WATER AND SEWER RATE STUDY Mayor Amick stated that all persons speaking should limit themselves to five minutes and they should not be redundant. The Mayor went on to say a Council Corffnittee will be appointed after the hearing to further study this issue. Keith Griffith, 4309 Ireland, asked the Council how they could justify a rate increase when money is being taken from the Utility Fund, which is operating in the black, and giving it to the General Fund, reminding all present that the M.U.D. board had forecast this to happen. Mr. Griffith said $600,000 is too much to transfer. Mr. Griffith went on to say he got 13 bills in 1989 and asked why the Vehicle Maintenance Department is out of balance. Mr. Griffith said The Colony is known as a high tax rate city and the Council raises the water rates, no one will water their yard, and The Colony will be known as the ugliest city. Ken Wood, 5000 N. Colony, said he realizes this is not easy for the Council, but is concerned that the rate is not fair, and sees no justification for a 44% increase, going on to say costs have not gone up 44%. Mr. Wood said in examining the budget he found several discrepancies and asked what the $600,000 transfer is for, stating he doesn't think the answer given earlier was satisfactory. Mr. Wood said the actual costs and proposed increase should match, stating he thinks this is a game of shifting money around. Pat Geary, 5013 Avery Lane sees no reason to separate water and sewer, stating we don't have to do what other cities do. Thelma Elam, 5117 Arbor Glen said she writes her check to the Utility Department not to the General Fund and wants her money spent in the Utility Department, not the General Fund. Ms. Elam said she feels it should be a criminal offense to take money from one account to another and proposed a decrease in water, sewer and trash pick up by 10%. Barbara Hoffman, 4841 Graham Ct. asked why the city needs to increase revenue, stating it has been proven, we can generate money and conserve water, going on to say a higher rate won't teach conservation. Edith Gibson, 4607 Chapman, said she used figures published in The Colony Leader and found approximately 6755 homes in The Colony and if water costs $12.06 for the average usage, and the city presently charges $20.50 for it (water) there is a difference of $8.44 per household per month, for a total of $684,146.40 per year. Ms. Gibson went on to say that with the profit from sewer service, the city has an adjusted gross income of $1,616,336.40 annually. Ms. Gibson said if the city raises the rates, the .profit will be exorbitant, Mike Lynch, 4921 Roberts noted the study said we must conserve water and asked if the City buildings should pay for water to help offset the $600,000 transfer. Mr. Lynch also asked if soccer filed could be watered with treated water to conserve, noting that to his family this increase would be 60%. Councilman Weaver said he has studied this for awhile and thought we would get good things from the study. The Councilman asked why it costs $600,000 for administrative services from the General Fund to the Utility Fund. Councilman Weaver noted several discrepancies he has found in the budget and accounting practices and then told Mayor Amick he would work the committee to study this issue. Councilman Weaver then asked if he could move that there would be no increase this fiscal year, and Mayor Amick advised a motion was not in order at this time. Councilman Weaver asked for a straw vote regarding not raising the rates. Amick - no opinion until after the study Marks - agreed with Weaver Alianell - opinion after study, rate should reflect actual costs Manning - abstain Mayor Amick then appointed the following persons to serve on a Water and Sewer Rate Study Committee: Don Amick, Bill Manning, Dick Weaver, Ken Wood, Carol Ball. The Mayor then advised there would be no action to raise rates until another public hearing was held, stating a city cannot work for profit. 5. CONSIDERATION OF PROPOSAL TO CONSTRUCT A NEW GATE HOUSE AT STEWART CREEK PARK Mr. Hall said three proposals had been received. Councilman marks asked how far from the present gate house this would be and Ms. Sylvia Brantley said approximately 300 feet to the east. There was a brief discussion regarding adding gates or not. Councilman Alianell clarified this money would come from the Stewart Creek Park Fund. Councilman Weaver then moved to approve as recommended and Councilman Alianell seconded the motion which carried with all members voting Aye except Councilman Manning who abstained. 6. CONSIDERATION OF DESIGNATING A LOCATION FOR A SAIL BOAT LAUNCH AT STEWART CREEK PARK Bill Hall said this had been requested by residents, that it has been before the Park and Recreation Board, who has recorrmended approval. Mayor Amick asked about using 100 yards, and removing picnicking, swimming and fishing areas. Ms. Brantley said that was discussed and it was felt those activities could be moved further east. Mayor Amick said it is an excellent idea, but perhaps another location should be investigated for launching sail boats so other activities are not penalized. David Williford, sail boat representative, said that was considered, but there is lots of room left, noting sail boats are not like motor boats, they need more space to launch. Councilman Manning said if we want to encourage sailing in Stewart Creek Park, we have to give them (sail boats) more than a little strip of land. Mayor Amick reiterated he is not in favor of wiping out an area used by families. Councilman Alianell asked if 25 yards would be acceptable and Mr. iilliford said yes, but they need more room so more than 2 or 3 boats can be launch at a time. Councilman Alianell moved to refer this item to the Park and Recreation Board for an alternative location and Councilman Weaver seconded the motion which carried with a unanimous roll call vote. 7. FIRST READING OF AN ORDINANCE AMENDING CHAPTER 6 OF THE CODE OF ORDINANCES RELATING TO SPECIAL PURPOSE AND POLITICAL SIGNS Councilman Alianell moved to table this item until February 12, 1990 and Councilman Manning seconded the motion which carried with a unanimous roll call vote. 8. CONSIDERATION OF AUTHORIZING FORMAL APPLICATION FOR A STATE REVOLVING LOAN OF $1,080,000.00 AND ESTABLISHING A MANNER FOR PREPAYMENT Bill Hall explained the Texas Water Development Board loan process, stating the City has applied for a loan and for a grant through Texas Department of Community Development. Mr. Hall said the loan would be at 5.4% interest and it is felt this is a good approach, however, there is a deadline to meet before final steps can be taken. Mr. Hall said the Eastvale area sewer project can be done and this is the least expensive way to borrow the money. Mr. Hall said a formal motion is need to approve going ahead with the project and we need to determine a method of pay back. Mr. Hall went on to explain the Public Hearing which must be set for March 9 has to have a formal transcript and notice of that hearing has to be published at least 30 days prior to the date. Mr. Hall noted the manner of repayment must be so stated in the notice of public hearing. There followed a lengthy discussion regarding the amount of money needed to cover the entire project and the methods of repayment available. Terry Millican and Larry Freeman were present and fielded questions from the Council. Councilman Weaver reminded everyone that it would not be fair for the residents in the Eastvale are to bear all the costs. Melanie Able, a resident in the target area, said she thinks her tax money should pay for the improvements. Mayor Amick said the Council must decide tonight whether or not to go on with the project and if so the city has to come up with $100,000 up front, which will be reimbursed. Mayor Amick said tax money is used for operations such as police, fire, ambulance and street repair. The Mayor said right now there is no money to repay the loan. Mr. Hall said the $100,000 can be taken from contingency then replaced when we get the loan, noting we are number 1 in the State for receiving the loan. Mayor Amick said the council should vote tonight to corrrnit $100,000 and then later will vote to accept the loan and exactly how to repay the loan. Councilman Weaver said there really are no alternatives to get the sewer system and noted that the loan money will not include hook up charges to each home. Mr. Hall said individual will pay between $900 and $1500 to get hooked up to the system and law requires that once the system is in place, residents must hook up. There was a lengthy discussion regarding assessing $12.90 to each home where sewer is hooked up. Councilman Marks said it is not fair to ask residents in the target area to pay the hook up charge and then $12.90 per month for 25 years. Terry Millican said the city does not have to come up with the $100,000 now, noting it will be about 3 months. After more lengthy discussions regarding methods of repayment, taxes, etc. Councilman Weaver moved to pursue the S.R.F. loan and authorize publication of the notice of Public Hearing as recommended. Councilman Alianell seconded the motion. Councilman Manning asked why the $12.90 assessment has to be published. The Mayor said it could be changed later and Mr. Millican stated that if the Council thinks this assessment may be spread over the entire city, that should be noted in the notice. Councilman Weaver withdrew his motion at this time. At this time, Mayor Amick called a brief recess for engineers to determine the approximate assessment amount if spread over the entire city. Upon reconvening, Councilman Weaver moved to pursue the S.R.F. Loan and advertise the public hearing for March 9, 1990 at 6:30 p.m., at a possible assessment of $12.90 per home or $1.15 per home. Councilman Alianell seconded the motion which carried with a unanimous roll call vote. 9. PUBLIC HEARING TO RECEIVE A PRESENTATION FROM TEXAS UTILITIES ELECTRIC REGARDING A PROPOSED RATE INCREASE John Weinberg representing T.U.E. stated the company is asking for an increase of 10.2%, noting the last increase had been in 1984. Mr. Weinberg said that Comanche Peak is almost ready to open and that the costs had been much higher than anticipated, and the company's financial standing is no longer strong. Councilman Weaver said he had read volume 15 of the testimony and noted that by the time the case is done, T.U.E. will have spent $38 million just to put the case before the P.U.C. Councilman Weaver said the main thrust is to prove prudence and stated that about 50 cities have joined as interveners, also noting that any money spent by those cities is to be reimbursed by T.U.E. 00850, Councilman Weaver said if no one complains, then the P.U.C. will probably approve the 10.2% increase. Mayor Amick said the city has been asked to intervene in many cases and if we are concerned and don~t help other cities then those other cities don~t appreciate our lack of interest and perhaps would not help us when we needed it. 10. CONSIDERATION OF THE APPROVAL OF ONE OF THE FOLLOWING DOCUMENTS AS PREPARED BY TEXAS UTILITIES ELECTRIC IN REGARD TO THE PROPOSED RATE INCREASE: A. A RESOLUTION SUSPENDING THE PROPOSED EFFECTIVE DATE OF THE PROPOSED RATE SCHEDULES AND SERVICE REGULATIONS OF TEXAS UTILITIES ELECTRIC COMPANY, PROVIDING THAT THE RATE SCHEDULES AND SERVICE REGULATIONS OF SAID COMPANY SHALL REMAIN UNCHANGED DURING THE PERIOD OF SUSPENSION, PROVIDING FOR NOTICE HEREOF TO SAID COMPANY, AND FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW B. AN ORDINANCE APPROVING RATE SCHEDULES AND SERVICE REGULATIONS FOR TEXAS UTILITIES ELECTRIC COMPANY, PROVIDING AN EFFECTIVE DATE THEREFOR, PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES AND SERVICE REGULATIONS MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN, FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW, AND DECLARING AN EMERGENCY C. AN ORDINANCE APPROVING RATE SCHEDULES AND SERVICE REGULATIONS FOR TEXAS UTILITIES ELECTRIC COMPANY, PROVIDING AN EFFECTIVE DATE THEREFOR, PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES AND SERVICE REGULATIONS MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN, FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW, AND DECLARING AN EMERGENCY John Weinberg explained that one document accepts the PUC final order, and one suspends the rate effective date for 90 days. Councilman Weaver moved to reject all three documents and Councilman Manning seconded the motion which carried with all members voting Aye except Councilman Marks who abstained. 11. CONSIDERATION OF A RESOLUTION AUTHORIZING THE STEERING COMMITTEE OF TU ELECTRIC SERVICE AREA CITIES TO RETAIN LEGAL COUNSEL AND RATE CASE CONSULTANTS; AUTHORIZING THE STEERING COMMITTEE TO INTERVENE ON BEHALF OF THE CITY OF THE COLONY IN THE TEXAS PUBLIC UTILITY COMMISSION TEXAS UTILITIES ELECTRIC COMPANY RATE CASE, RURAL RATE CASE, PUC DOCKET NO. 9220 (PRUDENCY INQUIRY) AND RELATED DOCKETS; SUSPENDING THE PROPOSED TARIFF AND SCHEDULE OF RATES OF TEXAS UTILITIES ELECTRIC COMPANY Mayor Amick read the caption of the resolution as follows: 003 0° A RESOLUTION AUTHORIZING THE STEERING COMMITTEE OF TU ELECTRIC SERVICE AREA CITIES TO RETAIN LEGAL COUNSEL AND RATE CASE CONSULTANTS; AUTHORIZING THE STEERING COMMITTEE TO INTERVENE ON BEHALF OF THE CITY OF THE COLONY IN THE TEXAS PUBLIC UTILITY COMMISSION TEXAS UTILITIES ELECTRIC COMPANY RATE CASE, RURAL RATE CASE, PUC DOCKET NO. 9220 (PRUDENCY INQUIRY) AND RELATED DOCKETS; SUSPENDING THE PROPOSED TARIFF AND SCHEDULE OF RATES OF TEXAS UTILITIES ELECTRIC COMPANY Councilman Weaver said we don't have the capability to study this issue at a city level, but the executive committee of the steering committee was set up to make recommendations to all cities acting as interveners and that each participating city will get one vote. Councilman Weaver recommended Bill Hall represent the City on this committee. There were no objections. Councilman Weaver moved to approve the resolution and Councilman Alianell seconded the motion which carried with all members voting Aye, except Councilman Marks who abstained. 12. COUNCIL COMMITTEE REPORTS (OPTIONAL) Mayor Amick stated that no member of Council endorsed the findings of the water and sewer rate study and that Council felt it was important to hear how the public feels about issues. 13. CITY MANAGER'S REPORT Mr. Hall stated he had been misquoted four times in the last week and one/half regarding the 1.1 million dollar shortfall, stating that he never made such a statement and that he is making this statement after reviewing tape of the meeting in question. Mr. Hall introduced two new employees: Gretchen Bergman, Park and Recreation and Jody Morale, Inspections. Mr. Hall advised that the City has been asked to join intervention in a Southwestern Bell rate case and that it will be on the next agenda for action. Mr. Hall also advised that the city has the opportunity to enter into an interlocal with the Houston/Galveston Area Council to purchase equipment and this will be on the next agenda for approval to purchase the fire department vehicle. Mayor advised there will be a Special Session February 12, 1990. 10:55 p.m. EMERGENCY AGENDA ITEMS 1. CLOSED DOOR SESSION AS AUTHORIZED BY ARTICLE 6252-17 V.A.C.S., SECTION 2E, REGARDING LITIGATION, TO-WIT: 00" -03 A. JAY HAWKS ESTATE 11:20 p.m. 2. CONSIDERATION OF ANY APPROPRIATE ACTION TO BE TAKEN AS A RESULT OF THE CLOSED DOOR SESSION Councilman A1 ianel 1 moved to pursue litigation as recommended by the City Manager and Councilman Weaver seconded the motion, which carried with a unanimous roll call vote. With no further business to address, Councilman Weaver moved to adjourn, Councilman Aliane11 seconded the motion which carried with all members voting Aye. Mayor Amick adjourned the meeting at 11:21 p.m. APPROVED: Don~-A~ic M, ATTEST: Pa'tti A. Hicks, City Secretary [SEAL]