MIN CC 10/05/2010City Council Meetings of October 2010 Book °V"
MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 5TH DAY OF OCTOBER 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 Zander,
Melissa Templeton, Wayne Barrett, Tom Cole
COUNCILMEMBERS ABSENT: None
OFFICERS PRESENT: Bill Baine, City Manager, Leonard Schneider, City Attorney, Lee Woodward, City Secretary
REGULAR SESSION` [6:0013M]
1. CALL TO ORDER
Mayor Turner called the meeting to order at 6:00pm.
2. PLEDGES OF ALLEGIANCE
3. INVOCATION
Counciimember Barrett gave the invocation.
4. PROCLAMATIONS AND PRESENTATIONS
The Mayor presented Proclamation 2011 -03 In honor of Fire Prevention Week.
The Mayor presented Proclamation 2011 -02 In honor of National Night Out.
5. PUBLIC COMMENT
Bill Elmer said the City Council was "on a roll" and that he did not want to see any of them replaced. He thanked City
• Manager Baine for enforcement of campaign signs in rights -of -way. Mr. Elmer also said the community had an issue
with illegal immigrants. He implored courts to suspend the license of drivers without insurance.
Diane Linklater spoke on her concerns of heavy traffic in the Avenues, and her neighborhood's requests for relief.
The Mayor permitted the City Manager to respond, who said he could put up a speed recording sign.
Charles Smither, Jr. spoke on the bid process for land and the City lot on tonight's agenda, saying that incomplete
legal descriptions were used.
Jake Fuqua spoke on traffic issues in the Avenues.
Glenda Fuqua spoke on traffic issues in the Avenues.
6. 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.)
a Approve the minutes of the City Council meetings held on the 141' and 2e of September, and the 1s` of
October 2010. [Lee Woodward, City Secretary]
b. Adopt Resolution 2011 -01 designating The Huntsville Item as the official newspaper for the City of
Huntsville for FY2010 -11. [Lee Woodward, City Secretary]
c. Approve the agreement with the U.S. Conference of Mayors Deferred Compensation Program, approving
Nationwide for the City's options for payroll deductions. [Winston Duke, Finance Director]
d. Authorize the City Manager to allocate 902 Avenue C to the Neighborhood Stabilization Program (NSP).
[Bill Baine, City Manager]
e. Approve bid on Property ID #24645 and allow City staff to purchase Property ID #24645 for future
projects, In the amount of $5,000.00, plus filing fees. [Bill Balne, City Manager]
[Councilmember Ray left the room.]
Councilmember Forbus made a motion to approve the Consent Agenda. Councilmember Templeton seconded the
motion.
Counciimember Wagamon asked to pull items d and a to explore them in reference to Mr. Smither's concerns during
public comment. Counciimember Forbus asked that item c also be pulled.
The motion to approve items a and b passed unanimously.
City Council Meetings of October 2010 Book °W
In addressing item c, Winston Duke, Finance Director, said it was a deferred compensation plan for payroll deduction,
similar to the ICMA program with no real cost to City.
Councllmember Zender made a motion to aoprove item c Counciimember Forbus seconded the motion.
The motion passed unanimously.
Councilmember Wagamon began to address items d and e, asking if there was a more effective legal description than
the Property ID from the Walker County Appraisal District (WCAD). Mr. Schneider asked if Councilmember Wagamon
was discussing an agenda item, as Mr. Smither had spoken about a lot up for bid. Mr. Baine confirmed that item e
was a purchase by the City, which he said had been previously approved twice by the Council. Mr. Schneider and Mr.
Baine also stated that item d was the transfer of a City-owned lot to the NSP project.
Councilmember Wagamon asked if the description was an address or a legal description, and asked Mr. Smither If
that had been his concern. Councllmember Wagamon also consulted with Mr. Baine that neither of these items were
bids that had been put out by Purchasing. Mr. Baine said item a was simply acquisition for possible future
development.
Councilmember Zander suggested that Mr. Smither would prefer including also the legal description and the tax ID
number so that an address could be cross- referenced on the WCAD maps.
Councilmember Templeton recommended a standard policy for the description of property. [ Councilmember Ray
returned while Templeton was speaking.]
Councllmember Waaamon moved to approve items d & e. Councilmember Zender seconded the motion.
The Mayor said he would agree to vote on both at the same time, but that he personally opposed the purchase on I&
Street because he could not vote for an item to promote the extension of 10"' Street Councilmember Templeton said
she would like to research item d more, as she recalled there had been opposition to it in the past. The Mayor said
the overall plan was one -way east -west traffic on 10r' and 11th Streets, an idea that had been tried in Conroe and was
°a disaster." He said that one -way streets were not neighborhood - friendly, that those particular streets also had
elevation issues, and that he could not support it.
Councilmember Ray asked if the alternative was to keep widening 11'J' Street. The Mayor said owners on 11th Street •
knew they were purchasing on a federal highway, and that it would be destructive to the community to extend 10"'
Street at either end.
Councllmember Wagamon asked what serious issues a western 10°i Street cut-through would cause. The Mayor said
there were a number of single - family detached homes at the western end in Forest Hills, there were day care centers
and the YMCA in the middle area, and more homes further east. He repeated that his concern was not over a $5,000
purchase, and that he realized that an extension would not be imminent, but that any east extension would have to tie
in to Highway 30, and could not tie in to Highway 190. Councilmember Templeton said she recommended the Council
reviewing it further and possibly having a workshop. The Mayor said this was a situation in which a bid had to be
approved or denied.
Mr. Baine said the bid had been made. He said the City had a Transportation Plan, and that he purchased property at
a reasonable price when it became available. He suggested that the staff should work to continue in line with the
Plan, and the Council could support it or change the Plan. Councilmember Templeton recalled that I& Street would
end in the parking lot of the Good Shepherd Mission. Mr. Baine said the City had told the Mission they could use the
easement to access their additional buildings. Councilmember Woodward confirmed that the right -of -way by Good
Shepherd Mission was already there, and that this property was further down. Councilmember Woodward clarified the
City was simply purchasing a piece of property that may create options for the City in the future.
Councilmember Wagamon said he would support the purchase. He said that the 2e Street project had been
mentioned several times, but, while he appreciated the comments about the character of 10"' Street at this time, he
thought the lot affordable and that the City should take advantage of the opportunity.
Councllmember Ray said this project was on the master street plan, that this seemed like a bargain, and said this was
a good time to buy it. Councilmember Templeton confirmed the City would not have to pay the back taxes.
The motion passed 7 -2 with the Mayor and Councilmember Templeton voting against.
7. STATUTORY AGENDA
a. Presentation, discussion, and possible action to authorize the City Manager to execute a contract with •
the Texas Municipal League (TML) and approve renewals of City health Insurance programs. [1Mnston
Duke, Finance Director]
Counciimember Templeton made a motion to approve. Councilmember Ray seconded the motion.
City Council Meetings of October 2010 Book °V
Mr. Duke said the cost savings from the present plan for this year was $225,000, which would be in cash, for next
year, and that the following year it would be closer to $140,000, assuming all claims and other factors remained the
same, and that all the savings were In administration. He said TML was the administrator, and that United Health
was still the carrier, although it would be a different subsidiary of theirs. Counciimember Templeton confirmed the
City would save $226,000.
Councilmember Forbus thanked Mr. Baine and Mr. Duke for their diligence in saving money and improving the City's
health plan for its employees.
The motion sassed unanimously,
b. Presentation, discussion, and possible action to authorize City Manager Bill Balne to enter into the
Interlocal Agreement between Texas Municipal League (TML) Intergovernmental Employee Benefits Pool
and the City of Huntsville, Texas. [Winston Duke, Finance Director]
Councilmember Woodward made a motion to aoorove. Councilmembers Templeton and Forbus seconded the
Lion
The motion passed unanimously,
b. Presentation, discussion, and possible action to approve Community Development Consulting
Contract with Dr. Sherry McKibben. [Bill Baine, City Manager)
Counciimember Forbus made a motion to approve. Coundlmember Cole seconded the motion.
Councilmember Woodward asked to amend the motion to the amount of the previous year, without the $3.000
increase. Councilmember Ray seconded the motion.
Mr. Baine said increase was due to the City getting grants, but the time lag of up to 14 months often precluded
Dr. McKibben receiving possible bonuses. He felt she deserved the increase, and cited the Highway 19 grant
success, and other projects in which she played a role, but was not directly attributed to her. Mr. Baine cited
several other projects of considerable amounts for which the City had to accept a delay in payment for from the
federal government. He said he believed her job would be harder in the coming year, and described her contract
as "perform or perish, and felt $3,000 was a prudent amount.
The Mayor asked if she received any bonus in last year. Mr. Balne said no. The Mayor asked if any projects
were in pipeline for which she would receive a bonus. Mr. Baine said he would be asking Council for some
money if the Town Creek grant came through, but no others, although he said there should also be a sense of
fairness and good faith, and that he would probably ask for a bonus for Dr. McKibben if he thought It appropriate.
Mr. Baine said that at the writing of the first contract, he didn't believe that the City could apply for a grant, wait six
to eight months for approval, and then still not receive the funds for another year, although that does seem to be
the routine.
Councilmember Templeton asked If she got any benefits. Mr. Baine said she is pure contract, a consultant.
Councilmember Templeton confirmed with Mr. Duke that benefits typically meant an increase of about 30 %.
Councilmember Woodward asked how many full time employees got a step increase or a cost of living increase
in this year's budget. Mr. Baine said none. Councilmember Woodward said he had no objection to Dr.
McKibben's work, but could not see a $3,000 Increase on a $72,000 salary when the other employees would
receive no increase.
Councilmember Ray how much the City received in grants before Dr. McKibben came, and Mr. Baine said about
$300,000 annually. Councilmember Ray then confirmed that at this point Dr. McKibben was not eligible to
receive a bonus on the Highway 19 project, but that Dr. McKibben was eligible for bonuses within a given year.
Councilmember Ray asked Dr. McKibben if she would quit if did not receive increase. Mr. Baine reminded the
Council that it was a competitive business.
Councilmember Zander asked if Dr. McKibben had requested the amounts, Mr. Baine said yes. Councilmember
Zander confirmed that the time was expired on the Town Creek or other prior projects. The Mayor also confirmed
this with Mr. Baine.
Councilmember Wagamon said this was an unusual situation, that Dr. McKibben has a doctorate and not getting
benefits of other employees. He said he did think it unfair to give a raise when others weren't, but that Dr.
McKibben would likely be getting a lot more if she received City benefits. He said he would like the Council to
later take up whether to hire Dr. McKibben as employee, but would support it at this time.
Councilmember Woodward said he thought Mr. Baine had wanted to hire Dr. McKibben, so the Council created a
contractual situation because they felt there were too many full time employees. Mr. Baine recalled that he
himself was unwilling at the time because of the benefits package.
City Council Meetings of October 2010 Book °V°
Councilmember Barrett said he shared the perspective that this was a contract for consulting services, and that
fair comparisons would be to other contracts, if they increased or the City chose not to continue them and why.
He said the Council did not what costs Dr. McKibben might be incurring in relation to benefits that she had to
cover herself. He said this had been a very successful contract for services, and, while he understood concern •
over salaries, they were being presented something the City Manager thought was a good value, and that this
was not a salary and did not include benefits. Councilmember Barrett concluded he thought it was a good value
also.
Councilmember Woodward said that if they did this, he thought City should pay the additional amounts the
employees would have to pay this year for health care for themselves and their families.
Councilmember Ray confirmed Dr. McKibben could take outside work. He said he didn't think this topic related to
unfunded liability. He also said he thought this looked inappropriate at this time. He said he supported keeping
the salary at $72,000.
Councilmember Templeton asked if City Attorney had reviewed the contract. Mr. Schneider said he had reviewed
it briefly, that he saw no glaring red flags, that it was a standard agreement, and had trusted Mr. Baine.
Councilmember Templeton said this was a hard decision for her, that it was a lot of money, and that everyone
has sacrificed a lot. She said Dr. McKibben brings a lot to the .table, but that she saves the City money, and
pointed out that benefits would be an additional $22,000. Councilmember Templeton said $72,000 was a little
low for a PhD. working full time in grant writing, and that Dr. McKibben worked long hours. Councilmember
Templeton said would support the original motion. The Mayor reminded all that they were voting on the
amendment.
Councilmember Woodward withdrew his amendment. and Councilmember Ray agreed.
Mr. Schneider said' he would like to address an item in the contract, and the Council could table it or address it in
Executive Session.
Councilmember Templeton asked when Dr. McKibben's contract was up; Mr. Baine confirmed it had already
expired.
Councilmember Forbus made a motion to table. Councilmember Templeton seconded the motion.
The motion failed 4-5 with The Mayor, and Councilmembers Forbus. Templeton. and Woodward voting to table. •
Councilmember Woodward suggested the Council move Into Executive Session. Councilmember Wagamon
agreed, saying they normally did not handle employee issues on camera. The Council adjourned into Executive
Session under Section 551.074. at 7:05pm.
The Council reconvened at 7:09om.
Councilmember Zander moved to amend contract by removing section 7a. Councilmember Temoleton seconded
the motion.
The Mayor said the City Attorney had advised that having a severance provision with a contract employee would
be improper.
The Council voted unanimously to remove 7a from the contract under discussion.
The Council voted to approve the contract, 7 -2 with Councilmembers Forbus and Woodward voting against the
measure.
8. MAYORICITY COUNCIL AND CITY MANAGER REPORT
a. Presentation, discussion, and possible action to approve Mayor's nomination of Jerry McGinty to the
Economic Development Council. [Mayor Turner]
The Mayor made a motion to approve.
The Mayor said Mr. McGinty was the Chief Financial Officer for the TDCJ and had been recommended to him for the
Board.
Councilmember Cole seconded the motion.
The motion passed unanimously.
b. Presentation, discussion, and possible action to approve Mayor's nomination of Dessie Cherry to the H-
GAC Aging Programs Advisory Committee. [Mayor Turner]
City Council Meetings of October 2010 Book'W
The Mayor made a motion to approve.
40 The Mayor said this nomination was to fill a vacancy.
Councilmember Zander seconded the motion. ,
The motion passed unanimously.
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. JCouncllmember Ray]
Councilmember Ray said the City had enjoyed good coverage In the media and that he appreciated it He said a
pretrial conference had been held on Friday, October 1. He said the Chamber had entered several motions for
summary judgment, which were all denied. Councilmember Ray said the Chamber had also moved for continuance
on the grounds that Mrs. Everett was under indictment and could not testify, and that this was also denied.
Yesterday, Councilmember Ray continued, the Chamber lawyers moved to transfer case due to publicity. He said this
was done on the record but outside of public view, and that the Court transferred case to Leon County to begin one
week from today.
Councilmember Ray explained settlements, saying the media has reported that the Council had rejected settlements.
He said the Council has to vote in public, and that when the Council had declined something, the other side had also
declined something, that each side was counter offering, as all tried to reach common ground.
d. City Manager's Report
1. Discussion of permitting
Aron Kulhavy, Director of Public
through Permitting. He said it
[presentation slides below]. He
student housing, along Sycamore.
that a Travel Center would be c
approval today.
Works, presented information on recent construction projects coming
at four lease spaces were being constructed at Ravenwood Village
also mentioned two large apartment complexes under construction for
Mr. Kulhavy said two housing tax credit projects were under construction,
in Highway 75 North, and that MetroNational received preliminary plat
Recent Projects
Permits,Valuations, and Fees
Village ($2.8 million)
y
�
. 1968 Construction Related Permits
Marshairs
DoffarTrce
• $77 million total valuation
2 tease spaces
v
. $32 million residential
e Forum at Sam Houston ($ 16 million)
_ $40 million commercial
Ilas of Sycamore ($17.8 million)
_ $1.8 mMon public Improvements
ontgomery Meadows ($2 million)
< Oilier
nkrrviiiages of Huntsville ($3.4 million)
, Estimated $62 million in taxable
ravel FM 1791 Center@ and 75 North ($755k)
10 etro National
`^
Improvements
w $500 thousand in permit fees
Mr. Kulhavy also discussed that over 4000 construction- related permits had been issued, and displayed the
breakdown. He said approximately $62 million in permit evaluation would be added to tax rolls, and that the
City had had revenues of over $500,000 in permit fees this year,
Counciimember Ray asked if there was anything to the rumor of a HEB, but Mr. Kulhavy said h e had heard
nothing to confirm that. The Council speculated as to what kind of hotel would be built on the Metro National
property, and Mr. Kulhavy said he did not expect an economy -grade hotel, possibly more like the Holiday Inn
Express.
Councilmember Zender asked Mr. Kulhavy about the Travel Center, and he responded that it was Edwin
Thomason's old family property, and would be a gas station with a small restaurant.
Councilmember Forbus asked how the $40 million In commercial development would break out. Mr. Kulhavy
said he recalled remodels, Ravenwood Village, and the Travel Center, and smaller projects including
churches. Mr. Kulhavy said that Hyponex could be considered as industrial. Mr. Kulhavy said single- family
residential had been strong In the first half of year, but dropped off after the tax credit expired, and that 75%
of his numbers had been done in the last 4-5 months.
Councilmember Wagamon commented tongue -in -cheek that Mr. Balne needed to reprimand Mr. Kulhavy for
not being aware of the conspiracy to stifle economic development in the community.
Mr. Balne, reminded the Council of the collection of $500,000 In permit fees, roughly $200,000 greater than
expected. He said he had Instructed Mr. Duke to escrow a portion of them, and that Mr. Kulhavy had asked
City Council Meetings of October 2010 Book "W
for additional inspector, although he [Mr. Baine] had told him to contract work out until he knows If an
additional full -time employee is needed. Mr. Baine commended Mr. Kulhavy.
Councilmember Woodward thanked Mr. Baine for addressing these concerns and working on trying to •
resolve the Issue. Councilmember Templeton said she also really wanted to commend the City Manager for
his efforts to save money for the City, saying he had done an amazing job, enabling the Council to hold the
budget and tax rate as it was.
Mr. Baine complimented Kim McAuliffe saying how pleased he was with her performance, and that she was
very entrepreneurial. He said she had compiled a wish list for Main Street, and was a driver behind recent
$150,000 and a $25,000 grants, and increasingly approached the private sector for event support. He said
he was impressed with here level of ownership and responsibility.
2. TRA plant staging cost estimate
This item was not addressed.
9. PUBLIC COMMENT
There were no additional public comments.
10. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
There were no media Inquiries.
11. 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 announced that the City Manager had had a physical exam, which confirmed that he still has a heart.
12. 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
51.071 — consultation with counsel on legal matters including current and pending litigation, including, but
not limited to, the City of Huntsville vs. the HuntsvilleWalker -County Chamber of Commerce. [Leonard
Schneider, City Attorney]
d. 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]
The Council adiourned into Executive Session at 7:32pm.
13. RECONVENE
a. Take action, If necessary, on Item addressed during Executive Session.
The Council reconvened at 9:27om.
The Council did not take any action.
14. ADJOURNMENT
The meeting was adjoufed at 9:27p.m.
City