Minutes - 10/16/2012 I
MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 16TH DAY-OF OCTOBER 2012; IN THE
CITY HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:00
O PM.
The-C-ou_ncjL-nieti.nareg.ulacsession-with-ttreoIlaw n
COUNCILMEMBERS PRESENT: Mac Woodward, James Fitch, Lydia Montgomery, Don H. Johnson, Keith D. Olson, Joe Emmett, Tish
Humphrey,Ronald Alien,Clyde Loll
COUNCILMEMBERS ABSENT: None
OFFICERS PRESENT:Chuck Pinto,Interim City Manager Leonard Schneider City Attorney Lee Woodward City Secretary
WORKSHOP SESSION [5:00 PM] —The Council will discuss budget initiatives.
Matt Lumpkins, Director of Community Services, presented options for revisions to the City's Recreation programming and
fees.
REGULAR SESSION [6:00PM]
1. CALL TO ORDER—Mayor Woodward called the meeting to order at 6:04 p.m.
2. INVOCATION AND PLEDGES— Councilmember Montgomery led the invocation and Devon Olivier of Alpha Omega
Academy led the pledges.
3. PRESENTATIONS
a. Presentation by Boyd London of First Southwest Securities regarding results of the City's recent refunding(2012
issue): $4,440,00 Series 2002 Water and Sewer Bonds; $270,000 Series 2004 General Obligation Bonds;
$2,575,000 Series 2005 Refunding;$1,085,000 Series 2007 Refunding Bonds.
Mr. London spoke on the successful bond sale with a savings to the City of over$1.1 million. He attributed this to the
strength of Texas sales,the City's Fitch rating,and the continued record of responsible financial management at the City.
4. PUBLIC HEARING
a. City Council will hold a public hearing concerning a request for a change in the zoning classification from
Management to Neighborhood Conservation for Lots 13-15,Block 2; Lots 1-8 Block 3; Lots 1 and 2, Block 4; and
Lots 1-10 and 14-19, Block 13 of the Gibbs-Pritchett-Abercrombie Subdivision; and Lot 11 of the Smither
Subdivision generally located in the 1300 to 1500 blocks of Avenue Q and Avenue 0 and from 13th Street to 15th
Street, 15`hearing,action item to be on November 13,2012 City Council agenda.[Aron Kulhavy,Director of Public
OWorks]
Mayor Woodward took the item ahead of item 3 and opened the Hearing at 6.07 pm. Aron Kulhavy, Director of Public
Works,said the petition for the item had been withdrawn. No one spoke for the hearing. The Mayor closed the Hearing at
6:07 pm.
.5. PUBLIC COMMENT
Norman Ward of the Huntsville Men's Choir spoke in support of the choir's funding, listing their many special
performances and their service in the local community.
6. CONSENT AGENDA
a. Approve the minutes of the City Council Regular Session held on October 2, 2012 and the Special Sessions of
October 1 and 9,2012.[Lee Woodward,City Secretary]
b. Approve Ordinance 2013-01 denying CenterPoint Energy rate increase, 2nd reading. [Leonard Schneider, City
Attorney]
c. Consider selection for the City's bank depository.[Winston Duke,Finance Director]
d. Approve and record advisors and consultants for investments and extension of Milliman agreement to manage
trust funds.[Winston Duke,Finance Director]
e. Amend the Investment & Banking Policy to authorize the City to purchase Certificates of Deposit in financial
institutions located outside Texas.[Winston Duke,Finance Director]
f. Approve annual payment to Dell for Microsoft licensing and software assurance in an amount not to exceed
$41,000.[Chris Vasquez,IT Manager]
g. Authorize the City Manager to approve renewal of New World annual maintenance and an upgrade in the amount
of$50,250.[Chris Vasquez,IT Manager]
Councilmember Fitch moved to approve the Consent Agenda and was seconded by Councilmember Loll
Winston Duke, Finance Director,addressed item c, noting that First Financial was recommended for approval, and
introduced representatives of the organization. Mr. Duke also noted that item a covered a change in allowance
from two years ago and noted this brought the City's Investment & Banking Policy in line with the Public
Investment Funds Act.
The motion passed unanimously.
7. STATUTORY AGENDA
a. Presentation,discussion,and possible action to authorize the Interim City Manager to sign proposed Community
Safe Room Agreement, Lease Agreement, and Deed of Trust with Walker County Boys & Girls Club for the
tornado shelter.[Leonard Schneider,City Attorney]
1
Chuck Pinto, Interim City Manager, noted the item had been pulled and would be brought back after further
discussion between the entities.
b. Presentation, discussion, and possible action to consider the request for a change in the zoning classification
from Management to Neighbs�rho_ad_Oons ervation-for-Lots_1.3-1.5,Block-2;-Lots-1-1-Block-3�Lots-1-and-2,Block-4� -
--and-Lots 1-4-0
an -fS t31 ck 13 of o t e Gi i�bbs-Pritchett-Abercrombie Subdivision; and Lot 11 of the Smither
Subdivision generally located in the 1300 to 1500 blocks of Avenue Q and Avenue O and from 13th Street to 15th
Street,1st reading.[Aron Kulhavy]
The Mayor noted this item was pulled in accordance with the Public Hearing.
c. Presentation, discussion, and possible action to authorize the City Manager to approve purchasing of computer
equipment from Dell in accordance with the State of Texas Department of Information Resource contract.[Chris
Vasquez,IT Manager]
Councilmember Humphrey moved to approve the offer and the motion was seconded by Councilmember Johnson
Councilmember Montgomery said she had spoken with Chris Vasquez, IT Manager, concerning how much of this
item would be from the General Fund, an amount that came to just over $42,000, as the servers were partially
allocated to other funds,was a scheduled replacement, and budgeted. Councilmember Allen asked if the item had
gone through Purchasing, to which Mr. Vasquez noted it had been viewed by Purchasing, Finance, and the City
Manager.
The motion passed unanimously.
d. Presentation, discussion, and possible action to approve the document management project expansion as
provided for in the CIP budget in the amount of$90,000.[Chris Vasquez,IT Manager]
Councilmember Montgomery moved to approve the item and Councilmember Humphrey seconded
Councilmember Montgomery said she had spoken with Chris Vasquez, IT Manager, concerning how much of this
item would be from the General Fund, an amount of around $18,000, noting it was a CIP project and budgeted.
Mr. Vasquez discussed the document management plan implementation, such as security, multiple copies stored,
and accessibility. Councilmember Johnson noted the rollout of this plan had been addressed in depth previously.
The motion passed unanimously.
e. Presentation, discussion, and possible action to authorize the City Manager to approve a 3-year contract with
SuddenLink Communications in the amount of$17,400 per year for the next 3 years for a total amount of$52,200.
[Chris Vasquez,IT Manager]
Councilmember Montgomery moved to approve item a and was seconded by Councilmember Johnson
City Attorney Leonard Schneider noted the contract had been changed in the favor of the City concerning
arbitration and indemnity.
The motion passed unanimously.
f. Presentation, discussion, and possible action to approve the TIRZ 2011 Annual Report, Project Plan, Finance
Plan and Feasibility Analysis for 2011 for filing and submission.[Winston Duke,Finance Director]
Councilmember Humphrey moved to approve item f and was seconded by Councilmember Olson The motion
Passed unanimously.
g. Presentation, discussion, and possible action to authorize the City Manager to approve the continued use of
Verizon services in the amount of $67,000 in accordance with the State of Texas Department of Information
Resource contract.[Chris Vasquez,IT Manager]
Councilmember Olson moved to approve item g and was seconded by Councilmember Loll The motion passed
unanimously.
h. Presentation, discussion, and possible action to approve the construction contract with 5-T's Utility in the
amount of$195,423.41 for the construction of first time sewer in the project area.[Tom Weger,Project Manager]
Councilmember Johnson moved to approve item h and was seconded by Councilmember Olson
Tom Weger, Project Manager, said the project was to reach underserved/underserviced (U/U) areas and that it
had taken several years to acquire all the easements, and noted Ed Shackelford of Jones&Carter Engineers was
present. Mr. Weger said there were three or four properties in severe need of public sewer who would connect
and added the line would parallel Highway 19 to access other properties along it. He said the main issue was
topography. Councilmember Montgomery asked how many properties would be impacted and Mr. Weger said
there would be about eight, some tracts being very large and about half containing homes, the rest commercial.
Mr.Weger told the Mayor there were two other 2009/2010 funded projects in the U/U project and was working on
easements but that no one was calling about service in those areas.
Councilmember Loll expressed surprise at the City only receiving two bids. Mr. Weger said they would like more
bids but noted difficulties and expenses out-of-town contractors might be considering and reaffirmed the bid
O advertising the City had used. Councilmember Humphrey confirmed the amount for the project was for it only, not
the remaining funded areas. Councilmember Johnson said it was a sign of good planning to have bids so close,
thatit sho wed-well=pr-epar-ed=ducumen-t&and=cor-rgr-atolated=the wo—rl—done.
The motion passed unanimously.
i. Presentation, discussion, and possible action to donate military surplus generator to KSAM radio station. [Matt
Lumpkins,Community Services Director]
Councilmember Johnson moved to approve item i and was seconded by Councilmember Montgomery.
Councilmember Johnson reminded all that the generator was a military surplus and that the item was for public
notification in times of emergency. Councilmember Allen was told by Matt Lumpkins, Director of Community
Services, that the City would no longer maintain the generator after its delivery. Councilmember Montgomery
noted KSAM had used a city generator previously and that the City had received this generator at no cost, recalling
her need for their information during the last major hurricane, citing it a public service and public safety issue.
The motion passed unanimously.
8. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT
a. Presentation,discussion,and possible action to approve nominations. [Mayor Woodward]
The Mayor made the nominations below."
10/16/12 Nominations for Appointment
Youth Advisory Board–Justin Stem,youth appointment
Tamara Chasteen,adult appointment
Labor Standards Officer for Texas Community Development Block Grants(CDBG)–Dr.Sherry McKibben,
Community Development Specialist,City of Huntsville
Labor Standards Officer for Texas General Land Office(GLO)grants–Dr.Sherry McKibben,Community
Development Specialist,City of Huntsville
OAd Hoc.anticipated October 2012-May 2013-City of Huntsville Housing Case Study funded by H-GAC,
"Housing as an Economic Development Tool in Huntsville,Texas: Nimbyism,Affordability,and Economic
Development"
Dalene Zender,REALTOR®,and former Council member
Tim Paulsel,Walker County Commissioner
Pam Markham, REALTOR®
Dr.Sherry McKibben,City of Huntsville
Chandra Steinback,City of Huntsville
Representative of Planning Division,City of Huntsville
Kelly Porter, Houston-Galveston Area Council,ex-officio member
Ad Hoc Committee for Election Officials for election of 19 employees to participate in Medicare:
Chair, Missy Davidson
Chief Kevin Lunsford
Lee Woodward
The motion passed unanimously.
b. Presentation,discussion,and possible action on a nomination for the City's FY2011-12 auditing and reporting.
[Mayor Woodward]
Councilmember Olson moved to approve the selection of Patillo Brown & Hill L.L.P. to Perform the FY2011 12
audit and was seconded by Councilmember Humphrey.
Councilmember Olson said the City had had the same auditor for a number of years and had received excellent
service, but that it was a responsible accounting practice to change from time to time. He noted six firms that met
the City's requirements and necessary accreditation had applied and that the Finance Committed had used criteria
to select Patillo,Brown,&Hill, L.L.P. Chris Pruitt of the firm introduced himself.
The motion passed unanimously.
Oc. Discussion on the selection of a permanent City Manager,standing item.[Mayor Woodward]
The Mayor said the search had been narrowed to eight candidates and that the Council would meet again on October 30
to reduce the selection for personal visits to the City.
d. Presentation,discussion,and possible action on the 8"irrigation water line at Elkins Lake.[Councilmember
Allen]
Councilmember Allen said he had been asked about the line. Carol Reed, Director of Public Utilities, said the City was
approached by the Elkins Lake Recreation Corporation about two years ago about drilling a well to refill the lake which
was used for irrigation of the golf course�p4s-Reed sai.d-ithas-been-part-of-her-intent in-her-time-in-her-position_to_lim t the -_-
- --- -TU—Mbler oo new wells wit ili the City lim i s to mitigate their impact on water availability. She pointed out that the City could
not control water rights.
Ms. Reed said an agreement was reached so that the City would sell untreated raw water with controls over when the
water could be pumped,including a take-or-pay of 10-40 million gallons of water to be pumped at night only in the months
of October to March, at$0.27 per 1000 gallons. She said a 400-foot 8-inch pipeline was constructed, with Elkins Lake
paying for the materials used and the City covering about$4,000 in labor costs. The Mayor noted the service agreement
did not meet the threshold to require it to come to Council and he and Ms. Reed noted that the Mayor, Mayor Pro Tem,
and City Manager were aware of the process of the development of the agreement.
Councilmember Allen said his opinion was that staff set the rate and signed the contract rather than the Council doing so
and said he wanted to know if the staff had set the rates for any other contract. Ms. Reed told the Mayor there were no
other water contracts for raw water. Councilmember Allen reemphasized his concern about staff setting any other rates.
The Mayor noted the City did not deviate from the published rate[fee]schedule.
Councilmember Allen asked if the Elkins agreement rate fit a current or new budget and Mr. Duke said it was not part of
the fee schedule. Councilmember Johnson said the City leadership knew of the rates charged and the agreement was
reviewed by the City Attorney, adding that it helped to protect the City's well and also benefitted Elkins Lake. The Mayor
tasked the City Attorney to provide him with any information on setting water rates. Councilmember Allen again said he
was concerned about all rates,not just water,that the staff could not be permitted to set rates of any type and that the City
must follow its policies.
Councilmember Fitch said he had also received calls on the item and said this rate was not included in the City's fee or
rate schedule. The Mayor confirmed the rate had not been approved by the Council and said the City Attorney would
provide the Council with whatever they wanted to know about setting the policy, for review at the October 30 Special
Session. Councilmember Fitch suggested this may prompt a need for a policy or policy revision. Mr.Schneider said this
discussion and negotiation occurred almost ten months ago and that he had not pursued where the rate had come from or
if it had been approved previously. He apologized for the error.
e. City Manager's Report
1. Updates on City construction,grants,studies,City projects,City purchases,and economic development.
Mr. Pinto had no report.
9. PUBLIC COMMENT
a. Related to any City business-2 minutes per speaker
Ramiro Jaime, Jr., SHSU Student Government, announced there would be a debate for the upcoming municipal
election next Tuesday on campus. He said there would be a Presidential debate on campus next Wednesday.
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 SHSU Homecoming Parade will be this Thursday at 6:30 pm. and the game would be on Saturday.
Councilmember Humphrey said there would be a Women's Wellness event Thursday afternoon and urged attendance.
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 appointment, employment, evaluation, reassignment, duties,
discipline, or dismissal of a public officer or employee, regarding City Attorney Leonard Schneider. [Mayor
Woodward]
The Council adjourned into Executive Session at 7.28 pm. The Mayor said there would not be any action after the
session.
13. RECONVENE
a. Take action,if necessary,on items addressed during Executive Session.
The Council reconvened at 8:15 pm. There was no further action.
14. ADJOURNMENT
The Mayor adiourned the meeting at 8:15 Dm
Respectfully submitted,
Lee Wood rd,City Secrete