MIN CC 09/07/2010
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MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 7 DAY OF SEPTEMBER 2010, IN THE CITY HALL,
LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6PM.
The Council met in a regular session with the following:
COUNCILMEMBERS PRESENT: J. Turner, Mac Woodward, Jack Wagamon, Charles Forbus, Lanny Ray, Dalene Zender, Melissa Templeton,
Wayne Barrett, Tom Cole
COUNCILMEMBERS ABSENT: None
OFFICERS PRESENT: Bill Baine, City Manager; Leonard Schneider, City Attorney, Lee Woodward, City Secretary
WORKSHOP SESSION [5:30PM]
The Council will discuss the transfer of lots to the Neighborhood Stabilization Program, and a discussion of traffic circulation around
Huntsville High School. [Bill Baine, City Manager]
The City Manager discussed the proposed donation of City lots for the construction of subsidized single-family homes. Councilmember Barrett
expressed concern that some of the lots were not in blighted areas, that perhaps the City was entering into real estate speculation, and whether
the homes would be in standard with each neighborhood’s covenants, and more clearly fit the “abandoned” language of the grant. Mr. Baine
said the covenant issues had been reviewed by Dr. McKibben, Community Development Specialist.
Councilmember Templeton addressed that this was an underserved market, and confirmed with Dr. McKibben that the homes were under two
liens and could not be quickly sold for profit.
The Mayor asked what the carrying cost would be if qualified homeowners were not found. Mr. Baine said he felt the demand was very high,
and Dr. McKibben said HUD would provide the financing.
Councilmember Barrett said he was concerned that they help a neighborhood become healthier, as is the intent of the grant, and that perhaps
there were other locations in town with more need for neighborhood stabilization.
Mr. Baine then addressed that the high school had asked for assistance in constructing an additional driveway to relieve traffic congestion
(below). He said he thought the City should pay for no more than one-third of the labor. Councilmember Templeton suggested coordinating with
the County. Councilmember Cole suggested the school district contract the work themselves. Councilmember Wagamon asked if the
superintendant had just gotten an additional pay raise, and pointed out it was approximately five times the median income in the community, and
the school district’s budget dwarfs that of the City.
Councilmember Ray said he was okay with helping with an in-kind contribution at a commensurate level, but suggested a different traffic pattern
in addition, to alleviate congestion from not being able to exit to the west.
Councilmember Barrett said the area needed a master plan to show how a new traffic configuration could really help the problem.
REGULAR SESSION* [6:00PM]
1. CALL TO ORDER
Mayor Turner called the meeting to order at 6:03pm.
2. PLEDGES OF ALLEGIANCE
3. INVOCATION
Councilmember Barrett gave the invocation.
4. PROCLAMATIONS AND PRESENTATIONS
Councilmember Zender introduced members of Girl Scout Troop 10698, and presented them with coins commemorating the City’s
th
175 Birthday.
The Mayor read a proclamation in honor of the Winner’s Circle upcoming fundraiser with former Texas A&M Coach Jackie Sherrill.
5. PUBLIC COMMENT
Steve DuFrane of Shawshank Disc Golf Course spoke about their upcoming tournament this Saturday, September 11, 2010, and the
Masters Cup coming next April 2011.
Charles Smither, Jr. spoke about the proposed donation of lots for low-income housing. He said he had a special concern about a lot
by Emancipation Park, and that he felt it more important that it be reserved for park use. He also mentioned there was no paved street
at the lots at Helen Street, as required.
6. PUBLIC HEARING
a. City Council will hold a public hearing to receive citizen input regarding the Fiscal Year 2010-2011 Annual Budget.
[Winston Duke, Finance Director]
The public hearing began and ended at 6:14pm. No one chose to provide input.
7. CONSENT AGENDA
(Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff
recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion
by request of a member of Council.)
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a. Approve the minutes of the City Council meetings held on the 17 and 26 of August 2010. [Lee Woodward, City
Secretary
b. Authorize the City Manager to donate six City-owned properties to the NSP Program. [Bill Baine, City Manager]
c. Authorize the City Manager to apply for, accept upon award, and implement the 2010 Community Development Planning
and Capacity Building Grant. [Dr. Sherry McKibben, Community Development Specialist]
d. Authorize the City Manager to apply for, accept, and implement the 2010 SAFER Grant for four new firefighters. [Dr.
Sherry McKibben, Community Development Specialist]
e. Ratifyresolution authorizing participation in TexPool/TexPool Prime and designating authorized representatives.
[Winston Duke, Finance Director]
f. Ratify City Manager’s approval of Tegrity Homes, LLC, Frisco, Texas, to construct low-income housing with TDHCA grant
funds, with City matching requirements. [Winston Duke, Finance Director]
Councilmember Forbus made a motion to approve the Consent Agenda. Councilmember Templeton seconded the motion.
Councilmember Ray asked to pull item b. Councilmember Zender asked to pull items c and f. Councilmember Barrett asked to
pull item d. Items a and e remained under the motion to approve.
The motion passed unanimously.
The Mayor said item b was pulled from agenda.
Councilmember Woodward made a motion to approve item c. Councilmember Wagamon seconded the motion.
Dr. Sherry McKibben explained this was to earn a grant to pay for the drainage study of Tanyard Creek, and included a $10,000
match. Tom Weger confirmed it was not related to construction on Highway 19, but rather was one of the eight local watersheds,
which Dr. McKibben said were all to be studied.
Councilmember Wagamon asked that future agenda postings include more information from the Agenda Item Cover Sheet.
Dr. McKibben said the grant was a federal grant distributed through the state, and that she felt they had a fair chance to receive
the grant.
The motion passed unanimously.
Councilmember Ray made a motion to approve item d. Councilmember Templeton seconded the motion.
Councilmember Barrett asked when the grant might be received; Dr. McKibben said they would be hired this November and begin
work in February. Councilmember Barrett said he had spoken to the City Manager concerning the cost of the four firefighters after
the two years of the grant had passed, at about $243,000. Mr. Baine said he didn’t think it would be that much.
The City Manager said the City had thirteen full-time firefighters, one of whom was a full-time emergency manager. He said there
was one in the newest station, and eleven in the older stations. He said the City depended on volunteer firefighters bunking in the
stations at night. Mr. Baine said the upcoming budget included four part-time firefighters for the new fire stations, at roughly
$12,000 each. He said he felt they needed more firefighters, and some studies showed a need in excess of fifty. He said they
would be entry-level employees, but that upfront equipment expenses were high, as were the benefits. He said he expected it
would cost closer to $180,000 in the third year.
Councilmember Templeton confirmed with Dr. McKibben that ICO insurance scores resulted in lower insurance costs for residents
with additional trained firefighters.
Councilmember Forbus referred to a study showing the City needed additional firefighters, and supported gaining them through
the grant.
Councilmember Wagamon compared the current gross budget of $838,000 [Mr. Baine later restated it at $1.158 million] for
firefighter salaries to the approximate $775,000 in the upcoming budget for Arts & Tourism. He said he did not object to spending
the money on Arts & Tourism, but said that perhaps spending four times that amount on firefighting might be a relevant
comparison.
Councilmember Templeton said she would support this measure, and asked why the City was not funded last year. Dr. McKibben
said the computer did not score the City highly enough.
Councilmember Woodward pointed out that Arts & Tourism brought tax monies into the General Fund to help pay for firefighters.
Councilmember Ray seconded Councilmember Woodward’s comment, and said the comparison was the total Arts & Tourism
budget compared to the salaries and benefits portion of the firefighters. He said it could be viewed as $240,000 for four firefighters
for three years.
Councilmember Barrett said he also supported the item, but that it was important to be clear about supporting grants that include
bills that come due later, as a future Council was unlikely to let go of four needed firefighters.
The motion passed unanimously.
Councilmember Ray made a motion to ratify item f. Councilmember Forbus seconded the motion.
Mr. Baine confirmed this item was for contracting the builder, not only for the lots in item b. Councilmember Templeton asked if
the builder had been used before. Dr. McKibben said they had not, that their references had been checked, they were
professional, and they were the H-GAC builder for Hurricane Ike. Councilmember Woodward was told that no local builders had
bid.
City Manager Baine said the City had purchased dilapidated property available for around $8.000 per lot. He said the builder had
agreed to deliver homes for $76,900, and that the government would cover permit fees and driveways.
Councilmember Forbus confirmed the building process could begin this fall, even if the Council did not approve the other Consent
Agenda item for lots.
Mr. Baine said they had been given the opportunity to obligate an additional $500,000, but had only a day to do so. He said the
ratification was in lieu of a Council special session.
Councilmember Zender thanked Dr. McKibben for looking for this money, and said there was a definite need for this type of
housing in the community, and that there was the benefit of additional ad valorem tax income to the City.
The motion passed unanimously.
8. STATUTORY AGENDA
a. Presentation, discussion, and possible action regarding Option to Purchase and Agreement to Pursue Water Supply,
Water Supply Agreement, and Joint Defense Agreement with the Montgomery County Municipal Utility Districts Nos. 8
and 9, and regarding authorizing the City Manager to take action necessary to effectuate the agreements with the
municipal utility districts, including filing a water rights application, approving Resolution 2010-31 for same. [Carol Reed]
Councilmember Forbus made a motion to approve. Councilmember Ray seconded the motion.
Councilmember Woodward confirmed the City Attorney had reviewed the new contracts. Mr. Schneider said he had no objections,
and felt they were good agreements addressing the City’s concerns.
Councilmember Cole asked if the MUDs could still draw water downstream if no agreements were signed. Mr. Schneider said, as
he understood it, they would need a permit, and would be able to draw their own discharge.
Councilmember Wagamon asked if some details were to be kept confidential. Mr. Schneider said the Joint Defense Confidentiality
Agreement was, but that the agreements were public records.
Councilmember Ray summarized the issue as being that the City treated its effluent and released it into McGary Creek. He said
that Montgomery County MUDs were buying an option to draw up to the amount released, from Lake Conroe, for roughly what the
City was paying for the water pulled from the Trinity River, effectively creating something from nothing.
Councilmember Woodward said he understood the MUDs had to find a source to purchase a certain proportion of their water as
surface water. Mr. Schneider confirmed that. Carol Reed said all three of the City’s plants operated at about fifty percent of
capacity. Councilmember Woodward asked if the City could sell more if created. Ms. Reed said the MUDs would not likely need
much more than one million gallons, and that two million was perhaps an upper limit, but, if the City were able to secure the rights
to the discharge, it could be sold to other entities.
Councilmember Forbus asked if the MUDs were paying for the City to pursue this endeavor. Ms. Reed said the City had paid for
its legal representation to this point. If the agreements are made and the City continues to seek a water rights permit, the MUDs
would pay the City’s expenses if it were unsuccessful, and would pay approximately 70% of the charges if successful, in the form
of a credit.
Councilmember Cole asked about public hearings. Ms. Reed said public hearings would occur much closer to when a permit was
considered. Mr. Schneider said public hearings were for the administrative agency to hear public input. Councilmember Cole
asked if a lease shorter than forty years were possible, Mr. Schneider said the City had asked for it.
Councilmember Barrett was told the City had the potential to receive a little over $100,000 annually.
The motion passed 8-1, with Councilmember Cole voting against.
b. Presentation, discussion, and possible action to approve Resolution 2010-32 to authorize Mayor to execute Advanced
Funding Agreement with Texas Department of Transportation (TxDoT). [Aron Kulhavy, Director of Public Works]
Councilmember Woodward made a motion to approve. Councilmember Ray seconded the motion.
Councilmember Templeton confirmed this item was a pass-through and would incur no cost to the public. Mr. Kulhavy clarified
this was for construction of storm drainage at The Forum Apartments.
The motion passed unanimously.
c. Presentation, discussion and possible action to approve and award the construction contract for the sewer for Highway
19/Old Phelps Road Unserved/Underserved area to 5T Utilities Construction Company of Huntsville, Texas, in the amount
of $182,894.16. [Aron Kulhavy, Director of Public Works]
Councilmember Templeton made a motion to approve. Councilmember Forbus seconded the motion.
The motion passed unanimously.
9. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT
a. Presentation, discussion and possible action to discuss water policy issues. [Standing item on first agenda of each
month.]
The Mayor discussed a spreadsheet of the divisions of water users and associated revenue.
Ms. Reed gave the Council an update on wells. She said water well #19 repairs were completed by Holly Water Wells, for just
less than $150,000. She said a televised inspection of well #17 had just been conducted. She said well #14 was still experiencing
sand intrusion and a reduced capacity, after expenditures of around $240,000, and that the recommendation was to abandon the
well.
The Mayor asked if a well could be drilled in an adjacent location. Ms. Reed said they had discussed doing so by the former well
#12. She said they would propose an engineering study and a test well at that location. She said there were many challenges to
working in the area of well #14, and she did not recommend drilling again in that area.
Mr. Baine said they had been trying to increase their well capacity in the upcoming budget. Councilmember Forbus asked how
long it would take to drill a new well, Ms. Reed said perhaps a year, but the infrastructure from well #12 to the Palm Street Plant
would improve the time.
b. Presentation, discussion and possible action on nominations for appointments to boards and commissions. [Mayor
Turner]
The Mayor made a motion to approve. Councilmember Zender seconded the motion.
The Mayor read a list of the nominees and the boards to which he was nominating their appointments.
Nominations/Reappointments for Boards and Commissions
Huntsville Arts Commission
Appoint Michael Henderson
Youth Advisory Board
Economic Development Council Appoint Dessie Cherry
Appoint Barry Shoemake Appoint Paula Armstrong
Appoint Maria McIver Appoint Taylor Garrison
Appoint Renee Pritchard
Hotel Occupancy Tax Board
Reappoint David DeShaw Board of Adjustments – Zoning
Appoint Nate Grigsby to Position 1
Planning and Zoning Commission Appoint Joe E. Kirk, Jr. to Position 3
Reappoint Beth Newton Appoint to John Cromer Alternate Position A
Appoint Bobby Crowson to Alternate Position B
Tax Increment Reinvestment Zone Number One – Board of Reappoint Dan Phillips
Directors
Reappoint Councilmember Dalene Zender Veterans Affairs Advisory Board
Appoint Tom Oleinik
Walker County Public Safety Communications Center Executive Appoint Capt. Patrick Harty
Board Appoint Art Mosley
Reappoint City Manager Bill Baine
The motion passed unanimously.
c. Presentation, discussion and possible action to approve Ordinance 2010-45, to formally create the
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Veterans Affairs Advisory Committee, 1 reading. [Mayor Turner]
The Mayor said the board had been formed earlier in the year, that it had been very active, and that he felt it
should be codified, as the other boards.
Councilmember Woodward asked about prior discussions on a VA clinic, and whether it was still possible. The
Mayor confirmed that it was, and that there was also consideration of a veteran’s cemetery.
d. Presentation, discussion and possible action to discuss the August 16, 2010 meeting of the Gifts and
Donations Policy Ad-Hoc Committee. [Councilmember Templeton]
Councilmember Templeton said the Committee had met and discussed the items below:
The Mayor suggested a threshold of $10,000-$25,000 a definition of moving from a minor to a major gift.
Councilmember Woodward asked the Committee to define a gift, and differentiate between a voluntary gift versus
a requested gift. He encouraged the Council to be accommodating, but beware of gifts with encumbrances.
Councilmember Templeton said she had considered a decision tree as a visual model. Councilmember
Woodward agreed a dollar amount was a good idea
Mr. Baine pointed out that $150,000 of goods, services, and cash had already been donated to the library
expansion, for which he was thankful. He said there were citizens who made other gifts such as easements, etc.
He said he did think gifts needed to be vetted, but asked the Council to be liberal in their allowances of an
appropriate level he could approve.
Councilmember Templeton said she had heard of a City wish list, and would like to see it.
Councilmember Barrett said he felt a policy was good to prevent misunderstanding, and guidelines that were
streamlined and accommodating, but not “rules upon rules.” Councilmember Ray agreed.
Councilmember Templeton summarized that the City Manager would like a liberal policy, that Councilmembers
wanted a simple policy, and whether donors expected something in return could connote when an item should be
presented to Council.
e. Presentation, discussion and possible action regarding update of ongoing litigation against the
Huntsville-Walker County Chamber of Commerce to recover misspent and misapplied Hotel Occupancy
Funds, primarily to update the citizens and council as to what has occurred and is in the public record
and or available to the public. [standing item, Councilmember Ray]
Councilmember Ray said mediation was held in Houston on September 3, but that a tentative settlement had not
yet been reached. He said a hearing for Summary Judgment to Dismiss the Counterclaim had been taken under
advisement, and that trial was still set for early October.
Councilmember Ray said the Chambers attorney had asked that the update include the fact that he was
successful in overcoming the City’s efforts to quash the request for depositions of the Mayor and City Secretary.
f. Discussion of possible ordinance concerning skirting of mobile homes. [Councilmember Wagamon]
Councilmember Wagamon said this item was about skirting new trailer homes, that most people liked to skirt their
trailers because the view from below was very unsightly, and that he would be working with Aron Kulhavy to look
for a way to require this.
The Mayor reminded the public that the Development Code was in a review and updating process, and
encouraged citizens to participate.
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g. Discussion of proposed 25 Street project. [Councilmember Wagamon]
Councilmember Wagamon said it had originally been called Smither Road Extension, and suggested to alleviate
traffic congestion. He said a bond election would have to be held due to the size of the project if it were ever
done. He asked for Council input as to whether they thought it would ever happen, should it happen, should it be
on the Capital Improvement Plan (CIP) in advance of a bond election, and should easements or other work be
underway without an election being held.
Councilmember Woodward confirmed with Mr. Kulhavy that the project had been in the Transportation Plan since
2001, to take some pressure off cross streets, and link back to South Sam Houston Avenue.
Councilmember Woodward asked Councilmember Wagamon if he had heard complaint about the project.
Councilmember Wagamon said it had been on the CIP budget for a long time, and was a very large project. Mr.
Kulhavy confirmed approximately 250’ of the street at University House Apartments had been constructed and
dedicated as a City street.
The Mayor said he had spoken with the City Manager, and asked if Councilmember Wagamon would like an
entire work session be given to this issue to allow for discussion. Councilmember Wagamon said he would.
Councilmember Woodward agreed, saying that this was a major project as considered in the Transportation Plan,
and that they should review why it was included.
h. City Manager’s Report
1. Update on unfunded liability
Mr. Baine discussed the unfunded liability to the City (below).
Current (09/10) Adopted (10/11)
As
Insurance 19,941,025$ 11,974,907 (Trust)
$
Retirement $ 22,812,287 $ 11,960,974
Total $ 42,753,312 $ 23,935,881
He said the City would be purchasing Medi-Gap policies for retirees over 65, and were modestly increasing
co-pays. He said the City intended to begin its medical trust with about $1 million. Mr. Baine said he hoped
to continue funding annually to be to about 80% funded, hoping to be about 72-74% funded by the end of the
next fiscal year.
2. Update on sidewalks and advance funding agreement
He said TxDoT was giving the City the authority to let the jobs. Mr. Kulhavy said he expected construction
within six months of receipt of the agreement.
3. Update on Highway 19
Mr. Baine said the City would be casings on Highway 19 in early 2011.
4. Update on Town Creek project
Mr. Baine said this project would require the participation of all citizens.
5. Update on NSP Housing
Mr. Baine said the City was trying to raise affordable single-family housing for moderate to low-income
families.
6. Discussion of need for consensus
[Mentioned briefly with item 4.]
7. Update on donations to library
Mr. Baine said there was a need for $20,000 or more for matching funds for a generator for the library.
8. Needs list – lots, cars, funding
Mr. Baine said the City had been bulldozing homes for twenty years, and encouraged lot owners to donate,
pledge, or sell lots to the City affordably. He said the City needed fuel-efficient cars and light vehicles. He
said cash was always welcome, especially for things the City did not have money, especially a ball field,
which cost about $250,000. He later suggested donating heavy machinery time.
9. Thanks
Mr. Baine thanked the Chevrolet dealer for low-cost rental cars for undercover officers. He also thanked
TDCJ for the use of their work squads, for which he was very appreciative. Mr. Baine said he was also
thankful for the new flagpole that had arrived, and said it was scheduled to be dedicated on November 11.
He thanked the law firm of Cantrell, Ray & Barcus for all the money to buy commemorative coins for the
returning Soldiers, and encouraged the public to purchase the coins. He thanked Winston Duke and Laurie
O’Brien for over a year of hard work identifying the unfunded liability. He thanked Billie Smith, Trey Owens
and Tom Weger for identifying the lots. He thanked Dr. Sherry McKibben for her work on the library grant,
saying she had worked all night for it to be completed properly and on time.
Councilmember Templeton asked if donors could get a tax write-off for donations, and Mr. Baine said they
could if the Council agreed it was in the public interest.
Councilmember Woodward asked if the donations committee could see what opportunities were already in
place, such as endowments.
10. Pepsi Refresh challenge
Mr. Baine encouraged the public to vote twice a day (online and by text). Councilmember Zender had the
related video shown, and complimented the staff for their work on the project.
10. PUBLIC COMMENT
John Cromer spoke in support of paid firefighters, and a system of more firefighters manning the stations.
11. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
There were no media inquiries.
12. ITEMS OF COMMUNITY INTEREST
(Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City
staff for which no action will be discussed or taken.)
The Mayor thanked John Kerr Smither and the Grace Methodist Church for donating parking during the library
expansion.
The Mayor told the public about the Ruck March on September 25 for the Wounded Warrior Project, the Huntsville
Fire Department and the Huntsville Police Department.
The Mayor said that on September 25 helicopters and the ROTC would have a tailgate party at Sam Houston State
University.
Councilmember Templeton reported Rita B. Huff had their annual garage sale, and thanked the public for making
donations, and that the HEARTS Museum would be having their garage sale the coming weekend.
13. EXECUTIVE SESSION
a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551,
Section 551.074 - personnel matters regarding the evaluation of City Secretary Lee Woodward. [Mayor
Turner]
b. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551,
Section 551.074 - personnel matters regarding the evaluation of City Manager Bill Baine. [Mayor Turner]
c. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551,
Section 551.071 and 551.072 – possible condemnation for easement. [Bill Baine, City Manager]
d. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551;
Section 551.071 – consultation with counsel on legal matters including current and pending litigation,
including, but not limited to, the City of Huntsville vs. Huntsville/Walker-County Chamber of Commerce.
[Leonard Schneider, City Attorney]
The Council adjourned at 8:02pm, to reconvene in Executive Session.
14. RECONVENE
a. Take action, if necessary, on item addressed during Executive Session.
The Council reconvened at 9:17pm and did not take further action.
15. ADJOURNMENT
The meeting was adjourned at 9:17pm.
_________________________________
Lee Woodward, City Secretary