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HomeMy WebLinkAbout042604R CC Min CITY COUNCIL REGULAR SESSION MONDAY, APRIL 26, 2004 MUNICIPAL BUILDING 3800 UNIVERSITY BLVD. 6:30 P.M. The City Council convened in Regular Session in the Municipal Building Council Chambers (3800 University Blvd.) on April 26, 2004, with the following members present: Mayor Ballanfant presiding, Council Members Segal, Farley, Fogler and Woods. The City Manager, City Secretary, City Attorney, Assistant City Manager/Public Works Director, Police Chief, Fire Captain, City Planner and Technical Services were also present. The notice for this meeting was posted in accordance with the Texas Government Code, nd Chapter 551, on the 22 day of April 2004 at 4:00 p.m. Formal Session Citizen Comments Mayor Ballanfant invited citizens who wished to address the City Council to come forward as their names were called. Glen Cole, a representative from CenterPoint Energy Entex, spoke to the Council regarding the proposed gas rate increase. He pointed out that if the cities deny Entex’s request, Entex is entitled to appeal the cities’ decision to the Railroad Commission where Entex may seek a rate increase of at least $27.5 million, calculated on a division-wide basis, and an increase of at least $4.64 per residential bill; and seek the recovery of rate case expenses (which could amount to $1.0 to $2.0 million) through a surcharge on customers residing within the cities that have denied the rate request, and the impact to those customers could range from $60 to $120 per customer. He stated that the Railroad Commission could, in turn determine that Entex is entitled to a greater rate increase than the $13.9 million settled with the City of Houston, and a residential customer charge greater than $10.50; follow the cost allocation methodology in the TXU case increasing residential rates by at least $2.17 per bill and deny the reimbursement of the cities’ rate case expenses which could range from $250,000 to $750,000. School finance or tax system reforms. Matters related to school finance or tax system reforms including Resolution No. 2004-04 Mayor Ballanfant read the caption of Resolution No. 2004-04 as follows: A resolution of the City of West University Place, Texas on school finance or tax system reforms that would affect city revenues and economic development efforts City Council Regular Session, April 26, 2004 Finance Director Walter Thomas reported that Governor Rick Perry has proposed a series of reforms designed to achieve “educational excellence” by creating “real and meaningful” relief from municipal property taxes. Resolution No. 2004-04 opposes any school finance reforms or any tax system reforms that would negatively affect City revenues. Mr. Thomas stated that several aspects of the Governor’s Proposal are troubling: ?? The Governor’s proposal to cap property tax revenue at last year’s level plus a growth factor made of up inflation and property tax growth without voter approval would have left the City approximately $1,000,000 short of the revenues needed to balance the 2004 General Fund Budget. ?? The Governor’s proposal will complicate an already arcane budget adoption process. The current truth in taxation rules already provide a landslide of information to interested taxpayers; and are adequate to protect taxpayers from “stealth tax increases”. ?? The Governor’s proposal will limit the property assessed value growth to no more than three percent a year. This could result in substantially different taxable values between similar properties. As property is sold, its assessed value will be adjusted to its appraised value. A similar property that has not been transferred would have a substantially lower value, especially in periods of rising values. ?? The Governor’s proposal contains at least two unfounded mandates: Appraisal Districts are funded by taxing entities based on their share of the o total tax levy in the District. In most Texas counties, including Harris, this means that the school districts shoulder much of the burden of funding the appraisal districts. School finance reform would shift school financing from the property tax to state funds, resulting in reduction of the school district’s share of the cost of the appraisal district. These costs would be shifted to other taxing entities. The cost of complying with additional state regulation of the budget/tax o process will increase. ?? The Governor’s proposal threatens the City’s share of Sales Tax. The most apparent source of additional funds for the State is to expand the base of the sales tax to include services not previously taxed. Rather than allow the Cities to apply its tax rate to the expanded base, the Governor proposes to divert any increase in sales taxes accruing to a city to a State Education Fund. This is troubling because it will be difficult if not impossible to separate an increase in sales tax revenue arising from expanding the base from other reasons that sales tax could increase. The State Legislature is about to undertake enacting far-reaching and badly needed reforms to school finance. Resolution No. 2004-04 states the City of West University Place’s opposition to any reform that negatively impacts the economic ability of the City to provide basic essential services. 2 City Council Regular Session, April 26, 2004 A motion was made by Council Member Fogler, seconded by Council Member Woods, to approve Resolution No. 2004-04 as presented. Council Member Segal commented that it was his understanding that, if the tax reform goes through, the property values that are limited might be next to one that recently sold so properties of equal value would have widely different values on them and taxed differently. He suggested that this language be included in the resolution. Mr. Thomas agreed that the proposed tax reform could result in disparit values. The kind of growth that the City has had where the house values go up 50% over three years, someone living in their home would have a cap and someone buying in their home would not. This would cause two houses of equal value sitting next to each other to be on two separate tax systems. Mayor Ballanfant commented that he believed in democracy and that the administration of each individual city and its finances is a matter for its City Council and its citizens. He suggested an amendment to the motion by adding the following language: Whereas, it is the voters of individual cities to pass on the fiscal administration of their city at the ballot box and not by state statue and Whereas, efforts to limit the ability of cities to collect sales and property tax revenues or to set tax rates would have severe negative impact on city services, city employees, economic development efforts and ultimately the citizens of the State of Texas which should be subject to local taxpayer control not state statue. Council Member Farley seconded the amended motion. Council Member Segal commented that he relies on the facts presented by the Texas Municipal League and would like to leave the language in the Resolution as is and add the Mayor’s suggested changes too. Council Member Segal suggested amending the motion by adding the following clause: Whereas, certain restrictions on the right of a City to impose property taxes might violate the Texas Constitution’s equal taxation provision resulting in substantially different taxable values between similar properties. Council Member Farley seconded the amended motion. A vote was taken on adding the amendments to the original motion with the following result: 3 City Council Regular Session, April 26, 2004 Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None A motion was made by Council Member Fogler, seconded by Council Member Woods, to approve the overall resolution as amended. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None Gas Rates. Matters relating to gas rates, including the Statement of Intent to change gas rates including Resolution No. 2004-05. Mayor Ballanfant read the caption of Resolution No. 2004-05 as follows: A resolution of the City of West University Place, Texas denying rate relief requested by CenterPoint Energy Entex effective May 1, 2004, subject to possible settlement and further proceedings, and containing findings and provisions relating to the subject. Council Member Farley filed an affidavit declaring debt and equity holdings in excess of $15,000 in Center Point Energy with the City Secretary and did not participate in the discussion or vote of this item. December 2003, CenterPoint Energy Entex, a City Attorney Jim Dougherty reported that in division of CenterPoint Energy Resources Corp., (“Entex”) filed a Statement of Intent to change gas rates in various municipalities in the Harris, Montgomery and Fort Bend County area effective February 1, 2004 (“Application”). The City and other municipalities in the area suspended the proposed rates until May 1 and formed a coalition to analyze them. The Entex Application is based on a settlement reached with the City of Houston, not on cost of service, revenues or expenses specific to the coalition cities. Rate analysis done for the coalition indicates that the Houston rates, if applied within the coalition cities, would have a disproportionate impact in those cities. The analysts have requested information from Entex to determine if the impact can be mitigated. Some of that information has not yet been received. 4 City Council Regular Session, April 26, 2004 The Entex Application includes a 10-day payment “discount” that is not cost-based and that falls disproportionately on single-family and other low-consumption customers. Many customers would consider it a penalty, and reportedly, it is contrary to Railroad Commission rules. The coalition cities have requested Entex to extend its proposed effective date to allow time to evaluate the remainder of the information (requested from Entex) and to work on a settlement of open issues. (Note: most rate cases are settled in this manner, and extensions are commonly granted.). Entex has declined to do so, which, as a practical matter, leaves only two choices for each coalition city: (1) take no action, in which case Entex will probably attempt to implement the Houston rates on May 1, or (2) adopt a resolution denying relief, in which case Entex would have the right to appeal to the Railroad Commission. However, Coalition Rate Counsel Geoffrey Gay has recommended that any resolution denying relief also contain a sort of “escape clause” allowing Entex to extend its effective date. This would leave open the possibility of reaching a final decision at the city level, without having to appeal to the Railroad Commission, at the option of Entex. Council Member Segal pointed out a typographical error on the resolution. A motion was made by Council Member Segal, seconded by Council Member Fogler, to approve Resolution No. 2004-05 with the modification noted. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Fogler and Woods Voting Nay: None Absent: None Tree inventory and management plan. Matters related to a tree inventory and management plan including proposals received April 19, 2004 and award of contract. City Planner/ Urban Forester Nes Tesno reported that in 2003 city staff was directed to investigate the cost of a citywide tree inventory, and the possibility of receiving a grant and the creation of a Tree Master Plan. The City of West U does not presently have a street tree master plan. A street tree master plan is a planning and management tool that usually includes an inventory of all city trees and a policy on removals, replacement, and maintenance requirements. An inventory could document condition; size, species and any other characteristic that would help the city manage its urban forest. This inventory could then be used to plan removals of any hazardous trees, pruning of low limbs, or removals of undesirable trees. Inventories also record empty spaces that allow for planting of trees. A 5 City Council Regular Session, April 26, 2004 tree planting program can be implemented that would plant desirable trees in appropriate locations. The Texas Forest Service, in cooperation with the United States Department of Agriculture Forest Service and the Texas Urban Forestry Council, Inc., has established a statewide Urban Forestry Partnership Grant Program as part of its overall goal of developing long-range urban forestry programs in communities across Texas. Staff applied for this grant to help defray the costs associated with collecting the data for the Tree Inventory and creation of the Tree Master Plan. The City of West U was awarded a $10,000 matching grant for the purpose of creating a Tree Inventory and a Master Plan. Grant funding will not accrue until after the project is complete. Mrs. Tesno stated that Request for Proposals were advertised and the submittals opened on Monday, April 19, 2004. Three firms submitted proposals, Tri-Global Technologies LLC, Burditt and Geographic Technologies Group, Inc. Burditt was evaluated as the firm with the highest score based on the selection factors. The fee quoted for the Tree Inventory was $29,200 and $2,700 for the Tree Master Plan. The total expenditure required is $31,900. Upon project completion and reimbursement of the grant funds, the City’s net contribution will total $21,900. There is $25,000 in the Capital Improvement Fund set aside in the 2004 budget to fund unforeseen projects. These funds could be designated to this project. A motion was made by Council Member Fogler, seconded by Council Member Farley, to award a contract to Burditt in the amount of $29,200 for the Tree Inventory and $2,700 for the Tree Master Plan with the appropriation of funds for this project. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None Security Alarms . Matters related to security alarms including a contract with a systems contractor. Police Chief Ken Walker reported that due to issues with the current contractor, the Police Department recommends that the City change companies that install our Type 2 (Direct Link) alarm service. Resource Protection Management has submitted a proposal that is comparable with the current contract for this service. The price will remain at $3,000 per month and $2.50 for each active (on-line) system with Type 2 permit. The Texas Municipal League Intergovernmental Risk Pool provides liability coverage for our Type 2 alarm service. 6 City Council Regular Session, April 26, 2004 A motion was made by Council Member Farley, seconded by Council Member Woods, to authorize the City Manager to negotiate and enter into a contract with Resource Protection Management to provide the Direct Link Alarm service. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None Comprehensive Inter-local agreement. Matters related to a comprehensive Inter-local agreement with the City of Southside Place including street sweeping, building inspections, emergency medical services and related revenues and expenses. The City Staff requested that this item be withdrawn from the agenda at this time. Bark Park. Matters related to a bark park including the creation of a Task Force. Council Member Farley requested that Council authorize the creation of a Task Force comprised of five to seven members to study the feasibility, funding, location and establishment of a park where dogs are allowed to run unencumbered by physical restraint. He suggested that they solicit volunteers for the Task Force. Council Member Segal asked if his request included that the Task Force study the operations of the Dog Park. Council Farley commented that the operation of the park should be included in the study. A motion was made by Council Member Farley, seconded by Council Member Fogler, to authorize the creation of a Bark Park Task Force comprised of five to seven members, to be determined, and to begin soliciting applicants. Council Member Woods asked if the motion was excluding the cooperation of the City of Bellaire. Council Member Farley commented that he was sure that cooperation with Bellaire would be something the Task Force would want to look into. A vote was taken on the motion with the following result: 7 City Council Regular Session, April 26, 2004 Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None City Council minutes. Matters related to the minutes of the Regular Session conducted on April 12, 2004. A motion was made by Council Member Farley, seconded by Council Member Segal, to approve the minutes as presented. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None Intergovernmental & Infrastructure Issues; Staff or Council Report. Matters relating to intergovernmental relations and agreements including negotiations, extra jurisdictional meetings, regional issues, Metropolitan Transit Authority agreements, infrastructure projects, drainage, flooding, Kirby Drive construction, streetlights and related matters. This may include report(s) from staff and reports and directives to staff from Council Members. City Manager Michael Ross reported that the Texas Department of Transportation is recommending that the city proceed with the City Center project and it will be scheduled for construction as soon as school lets out. He also reported that the Staff is planning to bid the second sidewalk project in May. Council Member Fogler reported that there were some properties in the city that were not in compliance with the 80% rule. The issue has been discussed with Mr. Ross and Mr. Wicker. Mayor Ballanfant inquired about existing deed restrictions in the city. Mr. Dougherty commented that enforcement of private deed restrictions is limited to cities that do not have zoning. Mayor Ballanfant requested that the Zoning and Planning Commission review the deed restrictions and attempt to harmonize them with the current zoning rules. Adjournment. 8 City Council Regular Session, April 26, 2004 With no further business to come before the City Council at this time, a motion was made by Council Member Farley, seconded by Council Member Segal, to adjourn. The Council meeting adjourned at 7:28 p.m. 9