City Council Meeting Agenda Packet 12-21-20211
Russell Humphrey, Mayor Pro Tem, Ward 2 Daiquiri Beebe, Ward 1 Deloris Massey, Ward 3 Jon Strong, Ward 4
CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Bert Lyle, Position 1 At-Large Dee Howard Mullins, Position 2 At-Large Vicki McKenzie, Position 3 At-Large Pat Graham, Position 4 At-Large HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, DECEMBER 21, 2021 REGULAR SESSION 6:00 P.M. - City Council Chambers Huntsville City Hall, 1212 Avenue M, Huntsville, Texas, 77340 Persons with disabilities who plan to attend this meeting and may need auxiliary aids or services are requested to contact the City Secretary’s office (936.291.5413) two working days prior to the meeting for appropriate arrangements. MAIN SESSION [6:00 p.m.] CALL TO ORDER
INVOCATION AND PLEDGES - U.S. Flag and Texas Flag: Honor the Texas Flag. I pledge
allegiance to thee, Texas, one state, under God, one, and indivisible.
1. CONSENT AGENDA The presiding officer will call for public comments before action is taken on these items. (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. Consider adoption of Ordinance No. 2021-41 to amend the budget for FY 21-22 and/or CIP Project budgets. [Steve Ritter, Finance Director]
b. Consider authorizing the City Manager to award a contract to Maximum Construction and Fabrication for enclosing the Robinson Creek WWTP UV Disinfection Area. [Brent S. Sherrod, P.E., Public Works Director] c. Consider authorizing the City Manager to award a contract to DXP Enterprises for replacing the Robinson Creek WWTP Light Return Sludge Pumps. [Brent S. Sherrod, P.E., Public
Works Director] d. Consider authorizing the City Manager to continue a contract with Routeware, Inc. to supply the Solid Waste and Recycling Department routing hardware and software products to optimize pick up routes and customer service. [Brent S. Sherrod, P.E., Public Works Director]
e. Consider adopting Resolution No. 2021-22 and authorize the City Manager to execute the
settlement agreement adopting the allocation method for opioid settlement proceeds as set forth in the settlement allocation term sheet. [Rick Rudometkin, Deputy City Manager]
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2. STATUTORY AGENDA a. Receive a developer’s presentation and consider approval of their request for the creation of a Public Improvement District (PID) inside the city on property located in the 3400 block of State Highway 30 west. [Kevin Byal, Director of Development Services] b. FIRST READING - Consider authorizing the City Manager to award contract to Dedicated Controls, LLC for the Rehab of the #1 One Million Gallon Ground Storage tank. [Brent S.
Sherrod, P.E., Public Works Director] c. Consider Martin Luther King, Jr. Community Center construction project options. [Aron Kulhavy, City Manager] 3. CITY COUNCIL/MAYOR/CITY MANAGER
a. Consider an additional funding request from the HEARTS museum for participation in the
replica Vietnam Veterans War Memorial project. [Andy Brauninger, Mayor] 4. REQUESTS FOR CITIZEN PARTICIPATION (An opportunity for citizens to be heard on any topic and for the City Council to participate in the
discussion. No action will be taken.)
None 5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
6. 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.)
7. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice concerning litigation; City of Huntsville v Walker County ESD No. 3, et al, cause# 2130313; 278th District Court, Walker County, Texas.
b. City Council will convene in closed session as authorized by Texas Government Code,
Chapter 551, Section 551.071 – consultation with legal counsel on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with chapter 551 relating to and for the purpose of attorney-client communications concerning City of Huntsville New
Police Headquarters and Fire Station #2/Fire Administration Building Project.
8. RECONVENE Take action on item discussed in executive session, if needed.
ADJOURNMENT *If during the course of the meeting and discussion of any items covered by this notice, City Council determines that a Closed or Executive session of the Council is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section 551.071 – consultation with counsel on legal matters; 551.072 – deliberation regarding purchase, exchange, lease or value of real property; 551.073 – deliberation regarding a prospective gift; 551.074
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–personnel matters regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a
public officer or employee; 551.076 – implementation of security personnel or devices; 551.087 – deliberation regardingeconomic development negotiation; Sec. 551.089 - deliberation regarding security devices or security audits; and/or other
matters as authorized under the Texas Government Code. If a Closed or Executive session is held in accordance with theTexas Government Code as set out above, the City Council will reconvene in Open Session to take action, if necessary, on
the items addressed during Executive Session.
CERTIFICATE I, Kristy Doll, City Secretary, do hereby certify that the above notice was posted on the City Hall bulletin board, a place convenient and readily accessible to the general public at all times, and to
the City’s website, www.HuntsvilleTX.gov, in compliance with Chapter 551, Texas Government Code.
Kristy Doll
Kristy Doll, City Secretary
DATE OF POSTING: December 17, 2021
TIME OF POSTING: 10:00 AM TAKEN DOWN:
Page 1
Item/Subject: Consider adoption of Ordinance 2021-41 to amend the budget for FY 21-22 and/or CIP
Project budgets.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter
Recommended Motion: Move to adopt Ordinance 2021-41 to amend the budget for FY 21-22 and/or
CIP Project budgets.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: Detailed explanation for the Budget Amendment is provided in the attachment, Exhibit A,
to the Ordinance. The Budget Amendments were presented to the Finance Committee at their
December 7, 2021 meeting.
Previous Council Action: None.
Financial Implications:
☒See the attached Ordinance and related Budget Amendments (Exhibit A)
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
Associated Information:
•Ordinance 2021-41, page 2
•Exhibit A (list of budget amendments), pages 3 - 4
12/21/2021
Agenda Item: 1a
CITY COUNCIL AGENDA
ORDINANCE NO. 2021-41 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2021-2022 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2021-27 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the 2021-2022 Annual Budget and CIP Budgets were adopted by Ordinance 2021-27 on September 21, 2021;
WHEREAS, various unforeseen circumstances affecting the City have presented themselves during the course of the fiscal year;
WHEREAS, the City Council considered the circumstances independently, deliberating appropriately on the associated revenues and expenditures and the overall impact on the general financial status of the City;
WHEREAS, pursuant to the laws of the State of Texas and the City Charter of the City of Huntsville, Texas, the City Council has determined that it will be beneficial and advantageous to the citizens of the City of Huntsville to amend the annual budget for fiscal year 2021 – 2022 and the Capital Improvements
Projects (CIP) budget as set forth herein; and
WHEREAS, this ordinance combines the independent Council actions into one budget amendment document;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
Section 1. The findings set forth above are incorporated into the body of this ordinance.
Section 2. The annual budget for fiscal year 2021 – 2022 is hereby amended to include the expenditures and revenues in Exhibit “A” and the Capital Improvements Projects budget is hereby amended to include
the expenditures described in Exhibit “A” attached hereto and made a part of this ordinance as if set out verbatim herein.
Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect.
Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared
unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance.
Section 5. The necessity for amending the budget for the fiscal year 2021 – 2022 and Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides.
Section 6. This ordinance shall take effect immediately after its passage.
PASSED AND APPROVED on this the 21st day of December 2021.
THE CITY OF HUNTSVILLE, TEXAS
__________________________________ Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM:
_________________________________________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney
Budget Amendments FY 21-22
December 21, 2021
Exhibit A Increase:Police Grants Fund - Grants Expenditures 9,900$
Increase Police Grants Fund - Grant Revenues 9,900$
Explanation:
Increase:Wastewater CIP - AJ08 Sewer lines 150,000$
Decrease:Wastewater CIP - Unallocated Budget 150,000$
Explanation:
The City was awared the 2020 Houston-Galveston Area Council State Homeland Security
Program Grant. Council approved the application of the Grant at their February 2, 2020
meeting. The grant application was for $31,500 and the funds were used to purchase
cyber security protection software; specifically "Comodo Autonomous Breach Protection"
software. The City only spent $21,600 of the grant in the FY 2021, thus leaving $9,900.
The OOG has provided the City with an extension of this grant. Approval of this bugdget
amendment will provide budget for using the awarded funds.
The AJ08 Sewer Lines (Segments A, B, and C) have been on the CIP plan for numerous
years. The engineering costs for the project was funded in FY 2019 for $1,020,000. The
construction costs of the project (all 3 segments) was included in this year's budget for a
total of $10,370,000 with funding of the construction costs coming from the Revenue
Bonds to be issued in February 2022 (anticipated total amount to be issued $20,300,000).
This budget amendment is for covering the costs of easement acquisitions between now
and when construction can begin. The Wastewater CIP Unallocated Budget has a current
balance of $347,515. After this budget amendment, if approved, the Wastewater CIP
Unallocated Budget will have a balance of $197,515.
Item/Subject: Consider authorizing the City Manager to award a contract to Maximum Construction
and Fabrication for enclosing the Robinson Creek WWTP UV Disinfection Area.
Initiating Department/Presenter: Public Works/Brent S. Sherrod, P.E.
Presenter: Brent S. Sherrod, P.E., Public Works Director
Recommended Motion: Move to authorize the City Manager to award a contract to Maximum
Construction and Fabrication for enclosing the Robinson Creek WWTP UV Disinfection Area in the
amount of $54,310.00.
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: The Robinson Creek Wastewater Treatment Plant (WWTP) utilizes Ultraviolet (UV) Light for
disinfection of the treated effluent into the Robinson Creek Watershed. These UV lights help prevent
the release of pathogenic microorganisms into public waterways. The original structure that houses
this system, built in 2002, currently only has a roof and partial walls to protect the equipment from the
weather and extreme elements associated with storms.
City staff proposed a scope of work to enclose the UV disinfection system by building full walls onto the
existing structure, replacing all safety lighting, relocating an electrical outlet, and installing three
walkthrough doors along with a 10’ x 10’ roll up door. This full enclosure will allow staff to safely work
on the UV system, even during bad weather, as well as help prevent the controls from failing as they
did during Winter Storm URI when temperatures stayed bellowing freezing for many days.
City staff utilized sealed bid proposals for enclosing the Robinson Creek UV Disinfection Area to achieve
optimal results at a competitive price. Multiple vendors were invited to bid, along with the invitation
to bid being advertised as required. Two mandatory site visits were conducted, and one (1) bid was
received and opened on November 30, 2021. Staff have checked references for Maximum Construction
and Fabrication and have utilized them in two recent construction projects with satisfactory results.
Therefore, staff recommends approving them to provide the necessary services, as outlined within the
quote, for $54,310.00.
Previous Council Action: The funds for this project were approved by council on 11/16/2021 with the
allocation of the ARP funds. The enclosure of the Robinson Creek WWTP UV Disinfection Area was last
approved by council in the FY 21-22 budget.
Financial Implications: ☒Item is budgeted: 713-71309-62300 In the amount of: $75,000.00
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
12/21/2021
Agenda Item: 1b
CITY COUNCIL AGENDA
Maximum Construction &
Fabrication
Description Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount
Lump sum for the Installation of Metal Sheets, Columns, Doors
and Relocation of Electrical Switch and Plug Bid NO. 22-03.54,310.00
Number of days from competition from date of Purchase Order - Days Days Days Days Days Days
Addendum NO. 1 - Sign and attached to bid
(Yes/No)NO
Addendum NO. 2 - Sign and attached to bid
(Yes/No)NO
Bid Tabulation
Project Name: Bid NO. 22-03 Installation of Metal Sheets, Columns, Doors and Relocation of Electrical Switch and Plug
Location: 1212 Avenue M Huntsville, TX 77340
Date: Tuesday, November 30, 2021 Time: 2:30 P.M. Central Time
*All Bidders shall acknowledge the receipt of each Addendum in the space provided on the Addendum Form(s). Failure to do so will result in bidder disqualification.
Item/Subject: Consider authorizing the City Manager to award a contract to DXP Enterprises for
replacing the Robinson Creek WWTP Light Return Sludge Pumps.
Initiating Department/Presenter: Public Works/Brent S. Sherrod, P.E.
Presenter: Brent S. Sherrod, P.E., Public Works Director
Recommended Motion: Move to authorize the City Manager to award a contract to DXP Enterprises,
in the amount of $98,206.20, for replacing the Robinson Creek WWTP Light Return Sludge Pumps.
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: The Robinson Creek Wastewater Treatment Plant (WWTP) utilizes three 6” centrifugal
pumps to return light sludge from the clarifiers to the aeration basins to achieve optimal results in the
treatment of the municipal wastewater it receives. The current pumps must be running at 100% to
maintain the appropriate sludge levels in the clarifiers and aeration basins even though the plant flow
is only operating at 51% of design capacity. Staff proposes to replace the current 6” centrifugal pumps
with 8” pumps to allow a wider range of flow volume for the slowly increasing flows within the Robinson
Creek Watershed.
City staff proposed a scope of work to include replacing all three 6” centrifugal pumps with new 8”
centrifugal pumps, replacing necessary piping to accommodate the larger pumps, and replacing the
associated plug valves. This will be a turnkey project that will require the vendor to perform all
necessary work to ensure proper operation of the new pumps.
City staff utilized sealed bid proposals for replacing the Robinson Creek WWTP Light Return Pumps to
achieve optimal results at a competitive price. Multiple vendors were invited to bid, to include
advertising the invitation to bid as required. Two mandatory site visits were conducted resulting in
three (3) proposals being received and opened on November 30, 2021. Based on Best Value, staff have
checked references as well as pump specifications and determined DXP Enterprises as the
recommended vendor to satisfy the best interest of the city. The City has awarded multiple projects to
DXP with satisfactory performance, therefore it is recommended granting approval of award to DXP as
they are able to provide the necessary services, as outlined within the quote, for $98,206.20.
Previous Council Action: The funds for this project were approved by council on 11/16/2021 with the
allocation of the ARP funds. The replacement of the Robinson Creek WWTP Light Return Pumps was
last approved by council in the FY 21-22 budget.
Financial Implications:
12/21/2021
Agenda Item: 1c
CITY COUNCIL AGENDA
☒Item is budgeted: 713-71309-62300 In the amount of: $98,206.20
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
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Memo
To: Lucy Gonzales, Procurement Manager
From: Stacy Lawler, Wastewater Superintendent
Date: December 1, 2021
Re: Bid Award No. 22-02 Purchase, Removal, and Installation of Light Return Pump Upgrade
City staff utilized sealed bid proposals for replacing the Robinson Creek WWTP Light Return Pumps to achieve optimal results at a competitive price. Multiple vendors were invited to bid,
Bid No. 22-02, along with the invitation to bid being advertised as required. Two mandatory site visits were conducted, and the three (3) proposals were received and opened on
November 30, 2021. Staff have evaluated all three proposals and recommend, based on Best Value, that DXP Enterprises be awarded the contract in the amount of $98,206.20.
DXP Enterprises is an established vendor with whom the City Wastewater Division has had a
long running business relationship. DXP met the minimum spec bids by bidding 8” Wemco Pumps. The lower bidders were utilizing Mosher-Flo and Pioneer Pumps. City staff has had
difficulties with Pioneer pumps being reliable, and some of the issues are still ongoing. Wemco Pump casings can withstand over 500 psi, whereas Pioneer pumps will rupture at
400 psi. Pioneer pumps do come standard with ANSI flanges, which complicates parts replacement. Pioneer pumps use grade 2 hardware, whereas Wemco uses grade 5, which
is much stronger. The Mosher pump that was bid did not meet the minimum specifications because they bid 6” inch pumps instead of the required 8” pumps.
All Pumps and Equipment Pumps of Houston (P DXP
Description Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount
Lump sum for the Purchase, Removal and Installation of
Light Return Pump Upgrade Bid NO. 22-02. $81,577.50 $83,988.00 $98,206.20
Number of days from competition from date of Purchase Order - Days 120 Days 180 Days Days Days Days
Addendum NO. 1 - Sign and attached to bid
(Yes/No)NO NO YES
Bid Tabulation
Project Name: Bid NO. 22-02 Purchase, Removal and Installation of Light Return Pump Upgrade
Location: 1212 Avenue M Huntsville, TX 77340
Date: Tuesday, November 30, 2021 Time: 2:00 P.M. Central Time
*All Bidders shall acknowledge the receipt of each Addendum in the space provided on the Addendum Form(s). Failure to do so will result in bidder disqualification.
Item/Subject: Consider authorizing the City Manager to continue a contract with Routeware, Inc. to
supply the Solid Waste and Recycling Department routing hardware and software products to optimize
pick up routes and customer service.
Initiating Department/Presenter: Public Works/Brent S. Sherrod, P.E.
Presenter: Brent S. Sherrod, P.E., Public Works Director
Recommended Motion: Move to authorize the City Manager to reestablish a contract with multiple
renewals with Routeware, Inc., not to exceed $295,000.00, over the life of the contract, which will
continue to provide automated routing technology for Solid Waste fleet vehicles.
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: Routeware is a premium service optimization provider that specializes in solid waste.
Routeware’s innovative products and services increase driver productivity. Routeware has allowed the
department to avoid paper based and memory-based routing methods, provides automated vehicle
communications, and avoids manual data processing. Routing software and hardware is essential to
keeping performance of customer service applications running at optimal levels, improves data center
resiliency and allows for more efficient use of solid waste staff time.
Routeware, Inc is a cooperative member and the sole proprietor of Routeware software. A contract was
approved on June 6, 2017, by City Council per Consent Agenda Item 3B to provide routing technology
for Solid Waste fleet vehicles. Due to the standardization of current equipment and hardware, services
will continue to be purchased using the Houston-Galveston Area Council (H-GAC) pricing cooperative
contract FL03-21 with Routeware, Inc.
If approved, proposed renewal contract with Routeware, Inc will be for one (1) year [01/01/2022 –
12/31/2022] with four (4) options to renew contingent upon mutual agreement.
Previous Council Action: The funds for the initial purchase of the hardware and software support were
adopted by the City Council on 06/06/2017.
Financial Implications: ☒Item is budgeted: 224-373-55570 and 224-375-55570
In the amount of: $295,000.00 (total 5 years)
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
12/21/2021
Agenda Item: 1d
CITY COUNCIL AGENDA
(503) 906-8500 – Corporate Offices
(877)906-8550 – Toll Free
(503) 906-8544 – Fax
16525 SW 72nd Ave.
Portland, OR 97224
www.routeware.com
January 15, 2021
To whom it may concern:
This letter is intended to reflect that Routeware software is proprietary software solely provided by
Routeware. We are the sole owner, developer, distributor, and provider of annual
support/maintenance for the Routeware software and has full power and authority to grant the rights
to license it without the consent of any other person or entity.
Sincerely,
Routeware, Inc.
Item/Subject: Consider adopting Resolution No. 2021-22 and authorize the City Manager to execute
the settlement agreement adopting the allocation method for opioid settlement proceeds as set forth
in the settlement allocation term sheet.
Initiating Department/Presenter: City Manager
Presenter: Rick J Rudometkin, Deputy City Manager
Recommended Motion: Move to adopt resolution 2021-22 and authorize the City Manager to execute
the settlement agreement adopting the allocation method for opioid settlement proceeds as set forth
in the settlement allocation term sheet in the amount of $80,373.
Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens.
Discussion: On July 23, 2021, Attorney General Paxton announced global settlements had been reached
with the three major opioid distributors for injunctive relief to the opioid crisis. The City of Huntsville is
entitled to a portion of these funds that Texas received in the amount of $80,373. Several hundred
political subdivisions of the state have already signed onto the settlement agreement.
There is a variety of uses to assist in the abatement of the opioid crisis including everything from
prevention/awareness to recovery. The funds are earmarked to remediate the harms caused by the
opioid epidemic and to recover the costs incurred in investigating and pursuing these claims.
The deadline to approve the settlement term sheet is January 2, 2022.
Previous Council Action. No previous action has been considered.
Financial Implications: ☒Item is not budgeted: In the amount of $80,373
A budget amendment will be brought forward in the future if the settlement agreement is approved.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•Opioid settlement one-pager
•Opioids Resolution
•Settlement allocation term sheet
•Subdivision settlement participation form
12/21/21
Agenda Item: 1e
CITY COUNCIL AGENDA
SUMMARY OF PROPOSED OPIOID SETTLEMENTS
SUMMARY OF PROPOSED OPIOID SETTLEMENTS
BACKGROUND
Texas, along with a broad coalition of states and subdivisions, has
reached fnal agreements with four companies to resolve legal
claims against for their role in the opioid crisis. One agreement is
with opioid manufacturer Johnson & Johnson. The other is three
major pharmaceutical distributors: AmerisourceBergen, Cardinal
Health, and McKesson.
FINANCIAL TERMS
The two agreements provide for $26 billion in payments over
18 years, with $23.9 billion available for opioid abatement and
signifcant amounts front loaded. Funding will be distributed
to states according to the allocation agreement reached among
the Attorneys General. Subdivisions can only participate in the
agreement if their state participates. Texas’ combined share
is almost $1.5 billion: $1.17 billion from the distributors and
$268 million from J&J. Distribution within Texas is handled
through an intrastate agreement between the state and litigating
subdivisions. The funding must be used to support any of a wide
variety of strategies to fght the opioid crisis. Separate provisions
exist to compensate attorneys who have pursued opioid litigation
on behalf of states and local governments.
Once the state agrees to participate, then the more subdivisions
that join, the more money everyone in Texas will receive. Future
opioid litigation may result in suspension and reduction of
payments. Even without full resolution of claims, states and
subdivisions can still receive substantial payments by resolving a
signifcant portion of current and future claims.
INJUNCTIVE TERMS
Both agreements both contain industry-changing injunctive
terms. The distributors will be subject to more oversight and
accountability, including an independent monitor, to prevent
deliveries of opioids to pharmacies where diversion and misuse
occur. They will be required to establish and fund an independent
clearinghouse to track opioid distribution nationwide and
fag suspicious orders. J&J will be prohibited from selling or
promoting opioids.
HOW TO JOIN
To adopt the settlement and allocation schedule, you need to:
1.sign the Subdivision Settlement Participation Form;
2.adopt the Texas Term Sheet and its intrastate allocation
schedule;
3.return both to opioids@oag.texas.gov .
The deadline for states to sign on is August 21, 2021. Subdivisions
in participating states then have through January 2, 2022, to join.
FOR MORE INFORMATION, PLEASE VISIT:
www.texasattorneygeneral.gov/globalopioidsettlement
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RESOLUTION NO. 2021-22
THE STATE OF TEXAS § COUNTY OF WALKER § CITY OF HUNTSVILLE §
BE IT REMEMBERED, at a regular meeting of the Huntsville City Council held on the 21st day of December 2021, on motion made by __________________________ Council member and
and seconded by
___________________________ Council member, the following Resolution was adopted:
WHEREAS, the City obtained information indicating that certain drug companies and their
corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the litigation (collectively, “Defendants”) have engaged in fraudulent and/or reckless marketing and/or distribution of opioids that have resulted in addictions and overdoses; and
WHEREAS, these actions, conduct and misconduct have resulted in significant financial costs to
the City; and
WHEREAS, on December 21, 2021, the State of Texas, through the Office of the Attorney General,
and a negotiation group for Texas political subdivisions entered into an Agreement entitled Texas
Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter, the Texas Term Sheet) approving the allocation of any and all opioid settlement funds within the State of Texas. The Texas Term Sheet is attached hereto as Exhibit “A”; and
WHEREAS, Special Counsel and the State of Texas have recommended that the City of
Huntsville support the adoption and approval the Texas Term Sheet in its entirety.
NOW, THEREFORE, BE IT RESOLVED that we, the City of Huntsville:
1. Support the adoption and approval the Texas Term Sheet in its entirety; and
2. Finds as follows:
a. There is a substantial need for repayment of opioid-related expenditures and payment
to abate opioid-related harms in and about the City; and
b.The City of Huntsville supports in its entirety and hereby adopts the allocation methodfor opioid settlement proceeds as set forth in the STATE OF TEXAS AND TEXAS
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POLITICAL SUBDIVISIONS’ OPIOID ABATEMENT FUND COUNCIL AND SETTLEMENT ALLOCATION TERM SHEET, attached hereto as Exhibit A. The
City of Huntsville understands that the purpose of this Texas Term Sheet is to permit
collaboration between the State of Texas and Political Subdivisions to explore and potentially effectuate resolution of the Opioid Litigation against Pharmaceutical Supply Chain Participants as defined therein. We also understand that an additional purpose is to create an effective means of distributing any potential settlement funds obtained
under this Texas Term Sheet between the State of Texas and Political Subdivisions in
a manner and means that would promote an effective and meaningful use of the funds in abating the opioid epidemic in this City and throughout Texas.
PASSED AND APPROVED on this 21st day of December 2021.
____________________________________
Andy Brauninger, Mayor City of Huntsville, Texas
ATTEST:
____________________________________ Kristy Doll, City Secretary City of Huntsville, Texas
APPROVED AS TO FORM:
____________________________________ Leonard Schneider, City Attorney City of Huntsville, Texas
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TEXAS OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET
WHEREAS, the people of the State of Texas and its communities have been harmed
through the National and Statewide epidemic caused by licit and illicit opioid use
and distribution within the State of Texas; and now,
WHEREAS, the State of Texas, though its elected representatives and counsel,
including the Honorable Ken Paxton, Attorney General of the State of Texas, and
certain Political Subdivisions, through their elected representatives and counsel, are
separately engaged in litigation seeking to hold those entities in the supply chain
accountable for the damage caused; and now,
WHEREAS, the State of Texas, through its Attorney General and its Political
Subdivisions, share a common desire to abate and alleviate the impacts of the
epidemic throughout the State of Texas; and now,
THEREFORE, the State of Texas and its Political Subdivisions, subject to
Opioid Abatement Fund Council
and Settlement Allocation Term Sheet (Texas Term Sheet) relating to the allocation
and use of the proceeds of any Settlements as described.
A. Definitions
As used in this Texas Term Sheet:
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1. Texas acting through its Attorney
General.
2.Political Subdivision mean any Texas municipality and county.
3. Texas, the Political Subdivisions, and
Steering Committee and Liaison Counsel (PSC) in the Texas
Opioid MDL, In Re: Texas Opioid Litigation, MDL No. 2018-63587, in
the 152d District Court of Harris County, Texas.
4. a Political Subdivision that filed
suit in the state courts of the State of Texas prior to the Execution Date of
this Agreement, whether or not such case was transferred to Texas Opioid
MDL, or removed to federal court.
5. onal fund established for the benefit
of the Texas Political Subdivisions. In no event shall any National Fund
be used to create federal jurisdiction, equitable or otherwise, over the
Texas Political Subdivisions or those similarly situated state-court litigants
who are included in the state coalition, nor shall the National Fund require
participating in a class action or signing a participation agreement as part
of the criteria for participating in the National Fund.
6. three-member group comprising
four representatives for each of (1) the State; (2) the PSC; and (3)
3
Political Subdivisions
represented by the Texas Attorney General or his designees. The PSC shall
be represented by attorneys Mikal Watts, Jeffrey Simon, Dara Hegar, Dan
Downey, or their designees. shall be
represented by Clay Jenkins (Dallas County Judge)
(Special Assistant County Attorney, Harris County), Nelson Wolff (Bexar
County Judge), and Nathaniel Moran (Smith County Judge) or their
designees.
7.
claims against a Pharmaceutical Supply Chain Participant that includes the
State and Political Subdivisions.
8.
Settlement as defined in this Texas Term Sheet.
8. those uses identified in Exhibit A
hereto.
9.
through which opioids or opioids products are manufactured, marketed,
promoted, distributed, or dispensed.
4
10. ean any entity that
engages in or has engaged in the manufacture, marketing, promotion,
distribution, or dispensing of an opioid analgesic.
11.
hereto, which has the purpose of ensuring the funds recovered by Texas
(through the joint actions of the Attorney General and the Texas Political
Subdivisions) are allocated fairly and spent to remediate the opioid crisis
in Texas, using efficient and cost-effective methods that are directed to the
hardest hit regions in Texas while also ensuring that all Texans benefit
from prevention and recovery efforts.
B. Allocation of Settlement Proceeds
1.All Opioid Funds distributed in Texas shall be divided with 15% going to
Political Subdivisions Subdivision 70% to the Texas Opioid
Abatement Fund through the Texas Opioid Council (Texas Abatement
Fund Share) identified and described on Exhibits A and C hereto, and 15%
to the Office of the Texas Attorney General as Counsel for the State of
Texas Out of the Texas Opioid Abatement Fund,
reasonable expenses up to 1% shall be paid to the Texas Comptroller for
the administration of the Texas Opioid Council pursuant to the Opioid
5
Abatement Fund (Texas Settlement) Opioid Council Agreement, Exhibit
A hereto.
2. The Subdivisions Share shall be allocated in accordance with the division
of proceeds on Exhibit B hereto.
3. The Texas Abatement Fund Share shall be allocated to the Opioid Council
to be apportioned in accordance with the guidelines of Exhibit A, and
Exhibit C hereto.
4. In the event a Subdivision merges, dissolves, or ceases to exist, the
allocation percentage for that Subdivision shall be redistributed as directed
by the settlement document, and if not specified, equitably based on the
composition of the successor Subdivision. If a Subdivision for any reason
is excluded from a specific settlement, the allocation percentage for that
Subdivision shall be redistributed as directed by the settlement document,
and if not specified, equitably among the participating Subdivisions.
5. Funds obtained from parties unrelated to the Litigation, via grant, bequest,
gift or the like, separate and distinct from the Litigation, may be directed
to the Texas Opioid Council and disbursed as set forth below.
6. The Subdivision share shall be initially deposited and paid in cash directly
to the Subdivision under the authority and guidance of the Texas MDL
Court, who shall direct any Settlement funds to be held in trust in a
6
segregated account to benefit the Subdivisions and to be promptly
distributed as set forth herein and in accordance with Exhibit B.
7. Nothing in this Texas Term Sheet should alter or change any Subdivision
rights to pursue its own claim. Rather, the intent of this Texas Term Sheet
is to join all parties to disburse settlement proceeds from one or more
defendants to all parties participating in that settlement within Texas.
8. Opioid Funds from the Texas Abatement Fund Share shall be directed to
the Texas Opioid Council and used in accordance with the guidelines as
set out on Exhibit A hereto, and the Texas Abatement Fund Share shall be
distributed to the Texas Opioid Council under the authority and guidance
of the Texas MDL Court, consistent with Exhibits A and C, and the by-
laws of the Texas Opioid Council documents and disbursed as set forth
therein, including without limitation all abatement funds and the 1%
holdback for expenses.
9. The State of Texas and the Political Subdivisions understand and
acknowledge that additional steps may need to be undertaken to assist the
Texas Opioid Council in its mission, at a predictable level of funding,
regardless of external factors.
C. Payment of Counsel and Litigation Expenses
7
1.Any Master Settlement Agreement settlement will govern the payment of
fees and litigation expenses to the Parties. The Parties agree to direct
control of any Texas Political
by the Texas MDL Court, In re: Texas Opioid Litigation, MDL No. 2018-
63587, in the 152nd District Court of Harris County, Texas, and with the
intent to compensate all counsel for Texas Political Subdivisions who have
not chosen to otherwise seek compensation for fees and expenses from any
federal MDL common benefit fund.
2.The Parties agree that no portion of the State of Texas 15% allocation
share from any settlement shall be administered through the National
Fund, the Texas MDL Court, or Texas Opioid Fee and Expense Fund,
but shall be directed for payment to the State of Texas by the State of
Texas.
3. The State of Texas and the Texas Political Subdivisions, and their
respective attorneys, agree that all fees whether contingent, hourly,
fixed or otherwise owed by the Texas Political Subdivisions shall be
paid out of the National Fund or as otherwise provided for herein to the
Texas Opioid Fee and Expense Fund to be distributed by the 152nd
8
District Court of Harris County, Texas pursuant to its past and future
orders.
4.From any opioid-related settlements with McKesson, Cardinal Health,
ABDC, and Johnson & Johnson, and for any future opioid-related
settlements negotiated, in whole or in part, by the Negotiating
Committee with any other Pharmaceutical Supply Chain Participant,
the funds to be deposited in the Texas Opioid Fee and Expense Fund
shall be 9.3925% of the combined Texas Political Subdivision and
Texas Abatement Fund portions of each payment (annual or otherwise)
to the State of Texas for that settlement, plus expenses from the
National Fund, and shall be sought by Texas Political Subdivision
Counsel initially through the National Fund. The Texas Political
Subdivisions percentage share of fees and expenses from the National
Fund shall be directed to the Texas Opioid Fee and Expense Fund in
the Texas MDL, as soon as is practical, for allocation and distribution
in accordance with the guidelines herein.
5.If the National Fund share to the Texas Political Subdivisions is
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, per subsection 4, immediately supra, or if payment from
the National Fund is not received within 12 months after the date the
9
first payment is made by the Defendants pursuant to the settlement, then
the Texas Political Subdivisions shall recover up to 12.5% of the Texas
Political Subdivision Share to make up any difference.
6.If the National Fund and the Texas Political Subdivision share are
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, or if payment from the National Fund is not received
within 12 months after the date the first payment is made by the
Defendants pursuant to the settlement, then the Texas Political
Subdivisions shall recover up to 8.75% of the Abatement Fund Share
to make up any difference. In no event shall the Texas Political
Subdivision share exceed 9.3925% of the combined Texas Political
Subdivision and Texas Abatement Fund portions of any settlement,
plus expenses from the National Fund. In the event that any payment
is received from the National Fund such that the total amount in fees
and expenses exceeds 9.3925%, the Texas Political Subdivisions shall
return any amounts received greater than 9.3925% of the combined
Texas Political Subdivision and Texas Abatement Fund portions to
those respective Funds.
10
7.For each settlement utilizing a National Fund, the Texas Political
Subdivisions need only make one attempt at seeking fees and expenses
there.
8.The total amount of the Texas Opioid Fee and Expense Fund shall be
reduced proportionally, according to the agreed upon allocation of the
Texas Subdivision Fund, for any Texas litigating Political Subdivision
that (1) fails to enter the settlement; and (2) was filed in Texas state
court, and was transferred to the Texas MDL (or removed before or
during transfer to the Texas MDL) as of the execution date of this
Agreement.
D. The Texas Opioid Council and Texas Abatement Fund
The Texas Opioid Council and Texas Abatement Fund is described in detail
at Exhibit A, incorporated herein by reference.
E. Settlement Negotiations
1. The State and Negotiating Committee agree to inform each other in
advance of any negotiations relating to a Texas-only settlement with a
Pharmaceutical Supply Chain Participant that includes both the State and
its Political Subdivisions and shall provide each other the opportunity to
participate in all such negotiations. Any Texas-only Settlement agreed to
with the State and Negotiating Committee shall be subject to the approval
11
of a majority of litigating Political Subdivisions. The Parties further agree
to keep each other reasonably informed of all other global settlement
negotiations with Pharmaceutical Supply Chain Participants and to include
the Negotiating Committee or designees. Neither this provision, nor any
other, shall be construed to state or imply that either the State or the
Negotiating Committee is unauthorized to engage in settlement
negotiations with Pharmaceutical Supply Chain Participants without prior
consent or contemporaneous participation of the other, or that either party
is entitled to participate as an active or direct participant in settlement
negotiations with the other.
collaborative, incremental stages need not be so.
2. Any Master Settlement Agreement (MSA) shall be subject to the approval
and jurisdiction of the Texas MDL Court.
3. As this is a Texas-specific effort, the Committee shall be Chaired by the
Attorney General. However, the Attorney General, or his designees, shall
endeavor to coordinate any publicity or other efforts to speak publicly with
the other Committee Members.
4. The State of Texas, the Texas MDL Plaintiff s Steering Committee
representatives, or the Political Subdivision representatives may withdraw
12
from coordinated Settlement discussions detailed in this Section upon 10
business
counsel for any affected Pharmaceutical Supply Chain Participant. The
withdrawal of any Member releases the remaining Committee Members
from the restrictions and obligations in this Section.
5.
with trial or, within 30 days of the date upon which a trial involving that
Pa
is scheduled to begin, reach a case specific resolution with that particular
Pharmaceutical Supply Chain Participant.
F. Amendments
The Parties agree to make such amendments as necessary to implement the
intent of this agreement.
Acknowledgment of Agreement
We, the undersigned, have participated in the drafting of the above Texas
Term Sheet, including consideration based on comments solicited from Political
Subdivisions. This document has been collaboratively drafted to maintain all
individual claims while allowing the State and its Political Subdivisions to cooperate
in exploring all possible means of resolution. Nothing in this agreement binds any
party to any specific outcome. Any resolution under this document will require
13
acceptance by the State of Texas and a majority of the Litigating Political
Subdivisions.
We, the undersigned, hereby accept the STATE OF TEXAS AND TEXAS
POLITICAL SUBDIVISION OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET. We understand that the purpose of
this Texas Term Sheet is to permit collaboration between the State of Texas and
Political Subdivisions to explore and potentially effectuate earlier resolution of the
Opioid Litigation against Pharmaceutical Supply Chain Participants. We also
understand that an additional purpose is to create an effective means of distributing
any potential settlement funds obtained under this Texas Term Sheet between the
State of Texas and Political Subdivisions in a manner and means that would promote
an effective and meaningful use of the funds in abating the opioid epidemic
throughout Texas.
EXHIBIT A
1
Opioid Abatement Fund (Texas) Settlement
Opioid Council
As part of the settlement agreement and upon its execution, the parties will form the Texas Opioid
Council (Council) to establish the framework that ensures the funds recovered by Texas (through
the joint actions of the Attorney General and the political subdivisions) are allocated fairly
and spent to remediate the opioid crisis in Texas, using efficient and cost-effective methods that
are directed to the hardest hit regions in Texas while also ensuring that all Texans benefit from
prevention and recovery efforts.
I. Structure
The Council will be responsible for the processes and procedures governing the spending of the
funds held in the Texas Abatement Fund, which will be approximately 70% of all funds obtained
through settlement and/or litigation of the claims asserted by the State and its subdivisions in the
investigations and litigation related to the manufacturing, marketing, distribution, and sale of
opioids and related pharmaceuticals.
Money paid into the abatement fund will be held by an independent administrator, who shall be
responsible for the ministerial task of releasing funds solely as authorized below by the Council,
and accounting for all payments to and from the fund.
The Council will be formed when a court of competent jurisdiction enters an order settling the
matter, including any order of a bankruptcy court. The Council members must be appointed
within sixty (60) days of the date the order is entered.
A. Membership
The Council shall be comprised of the following thirteen (13) members:
1. Statewide Members.
Six members appointed by the Governor and Attorney General
interest in opioid abatement. The statewide members are appointed as follows:
a. The Governor shall appoint three (3) members who are licensed health
professionals with significant experience in opioid interventions;
b. The Attorney General shall appoint three (3) members who are licensed
professionals with significant experience in opioid incidences; and
c. The Governor will appoint the Chair of the Council as a non-voting member.
The Chair may only cast a vote in the event there is a tie of the membership.
2. Regional Members.
Six (6) members appointed by the S subdivisions to represent their
designated HHSC Regional Healthcare
2
Partnership (Regions) to ensure dedicated regional, urban, and rural representation on the
Council. The regional appointees must be from either academia or the medical profession
with significant experience in opioid interventions. The regional members are appointed as
follows:
a. One member representing Regions 9 and 10 (Dallas Ft-Worth);
b. One member representing Region 3 (Houston);
c. One member representing Regions 11, 12, 13, 14, 15, 19 (West Texas);
d. One member representing Regions 6, 7, 8, 16 (Austin-San Antonio);
e. One member representing Regions 1, 2, 17, 18 (East Texas); and
f. One member representing Regions 4, 5, 20 (South Texas).
B. Terms
All members of the Council are appointed to serve staggered two-year terms, with the terms of
members expiring February 1 of each year. A member may serve no more than two consecutive
terms, for a total of four consecutive years. For the first term, four (4) members (two (2) statewide
and two (2) for the subdivisions) will serve a three-year term. A vacancy on the Council shall be
filled for the unexpired term in the same manner as the original appointment. The Governor will
appoint the Chair of the Council who will not vote on Council business unless there is a tie vote,
and the subdivisions will appoint a Vice-Chair voting member from one of the regional members.
C. Governance
1. Administration
The Council is attached administratively to the Comptroller. The Council is an
independent, quasi-governmental agency because it is responsible for the statewide
distribution of the abatement settlement funds. The Council is exempt from the following
statutes:
a. Chapter 316 of the Government Code (Appropriations);
b. Chapter 322 of the Government Code (Legislative Budget Board);
c. Chapter 325 of the Government Code (Sunset);
d. Chapter 783 of the Government Code (Uniform Grants and Contract
Management);
e. Chapter 2001 of the Government Code (Administrative Procedure);
f. Chapter 2052 of the Government Code (State Agency Reports and Publications);
g. Chapter 2261 of the Government Code (State Contracting Standards and
Oversight);
h. Chapter 2262 of the Government Code (Statewide Contract Management);
3
i. Chapter 262 of the Local Government Code (Purchasing and Contracting
Authority of Counties); and
j. Chapter 271 of the Local Government Code (Purchasing and Contracting
Authority of Municipalities, Counties, and Certain Other Local Governments).
2. Transparency
The Council will abide by state laws relating to open meetings and public information,
including Chapters 551 and 552 of the Texas Government Code.
i. The Council shall hold at least four regular meetings each year. The Council may
hold additional meetings on the request of the Chair or on the written request of
three members of the council. All meetings shall be open to the public, and public
notice of meetings shall be given as required by state law.
ii. The Council may convene in a closed, non-public meeting:
a. If the Commission must discuss:
1. Negotiation of contract awards; and
2. Matters specifically exempted from disclosure by federal and
state statutes.
b. All minutes and documents of a closed meeting shall remain under seal,
subject to release only order of a court of competent jurisdiction.
3. Authority
The Council does not have rulemaking authority. The terms of each Judgment, Master
Settlement Agreement, or any Bankruptcy Settlement for Texas control the authority of
the Council and the Council may not stray outside the bounds of the authority and power
vested by such settlements. Should the Council require legal assistance in determining
their authority, the Council may direct the executive director to seek legal advice from the
Attorney General to clarify the issue.
D. Operation and Expenses
The independent administrator will set aside up to one (1) percent of the settlement funds for the
administration of the Council for reasonable costs and expenses of operating the foregoing duties,
including educational activities.
1. Executive Director
The Comptroller will employ the executive director of the Council and other personnel as
necessary to administer the duties of the Council and carry out the functions of the Council.
The executive director must have at least 10 years of experience in government or public
administration and is classified as a Director V/B30
Classification. The Comptroller will pay the salaries of the Council employees from the
4
one (1) percent of the settlement funds set aside for the administration of the Council. The
Comptroller will request funds from the Texas Abatement Fund Point of Contact.
2. Travel Reimbursement
A person appointed to the Council is entitled to reimbursement for the travel expenses
incurred in attending Council duties. A member of the Council may be reimbursed for
actual expenses for meals, lodging, transportation, and incidental expenses in accordance
with travel rates set by the federal General Services Administration.
II. Duties/Roles
It is the duty of the Council to determine and approve the opioid abatement strategies and funding
awards.
A. Approved Abatement Strategies
The Council will develop the approved Texas list of abatement strategies based on but not limited
to the existing national list of opioid abatement strategies (see attached Appendix A) for
implementing the Texas Abatement Fund.
1. The Council shall only approve strategies which are evidence-informed strategies.
2. The Texas list of abatement strategies must be approved by majority vote. The majority
vote must include a majority from both sides of the statewide members and regional
members in order to be approved, e.g., at least four (4) of six (6) members on each side.
B. Texas Abatement Fund Point of Contact
The Council will determine a single point of contact called the Abatement Fund Point of Contact
(POC) to be established as the sole entity authorized to receive requests for funds and approve
expenditures in Texas and order the release of funds from the Texas Abatement Fund by the
independent administrator. The POC may be an independent third party selected by the Council
with expertise in banking or financial management. The POC will manage the Opioid Council
Bank Account (Account). Upon a vote, the Council will direct the POC to contact the independent
administrator to release funds to the Account. The Account is outside the State Treasury and not
managed by any state or local officials. The POC is responsible for payments to the qualified
entities selected by the Council for abatement fund awards. The POC will submit a monthly
financial statement on the Account to the Council.
C. Auditor
An independent auditor appointed by the Council will perform an audit on the Account on an
annual basis and report its findings, if any, to the Council.
D. Funding Allocation
5
The Council is the sole decision-maker on the funding allocation process of the abatement funds.
The Council will develop the application and award process based on the parameters outlined
below. An entity seeking funds from the Council must apply for funds; no funds will be awarded
without an application. The executive director and personnel may assist the Council in gathering
and compiling the applications for consideration; however, the Council members are the sole
decision-makers of awards and funding determination. The Council will use the following
processes to award funds:
1. Statewide Funds. The Council will consider, adopt and approve the allocation
methodology attached as Exhibit C, based upon population health data and prevalence
of opioid incidences, at the Coun . Adoption of such methodology
will allow each Region to customize the approved abatement strategies to fit its
communities needs. The statewide regional funds will account for seventy-five (75)
percent of the total overall funds, less the one (1) percent administrative expense
described herein.
2. Targeted Funds. Each Region shall reserve twenty-five (25) percent of the overall
funds, for targeted interventions in the specific Region as identified by opioid incidence
data. The Council must approve on an annual basis the uses for the targeted abatement
strategies and applications available to every Region, including education and outreach
programs. Each Region without approved uses for the targeted funds from the Council,
based upon a greater percentage of opioid incidents compared to its population, is
subject to transfer of all or a portion of the targeted funds for that Region for uses based
targeted funding needs as approved by the Council on an annual basis.
3. Annual Allocation. Statewide regional funds and targeted funds will be allocated on an
annual basis. If a Region lapses its funds, the funds will be reallocated based on all
R
E. Appeal Process
The Council will establish an appeal process to permit the applicants for funding (state or
subdivisions) to challenge decisions by the Council-designated point of contact on requests for
funds or expenditures.
1. To challenge a decision by the designated point of contact, the State or a subdivision
must file an appeal with the Council within thirty (30) days of the decision. The Council
then has thirty (30) days to consider and rule on the appeal.
2. If the Council denies the appeal, the party may file an appeal with the state district court
of record where the final opioid judgment or Master Settlement Agreement is filed. The
Texas Rules of Civil Procedure and Rules of Evidence will govern these proceedings.
The Council may request representation from the Attorney General in these proceedings.
6
In making its determination, the state district court shall apply the same clear error
standards contained herein that the Council must follow when rendering its decision.
3. The state district court will make the final decision and the decision is not appealable.
4. Challenges will be limited and subject to penalty if abused.
5. and costs are not recoverable in these appeals.
F. Education
The Council may determine that a percentage of the funds in the Abatement Fund from the targeted
funds be used to develop an education and outreach program to provide materials on the
consequences of opioid drug use, prevention and interventions. Any material developed will
include online resources and toolkits for communities.
EXHIBIT B
EXHIBIT B
K-1
EXHIBIT K
Subdivision Settlement Participation Form
Governmental Entity: State:
Authorized Official:
Address 1:
Address 2:
City, State, Zip:
Phone:
Email:
The governmental entity identified above (“Governmental Entity”), in order to obtain and
in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement
Agreement dated July 21, 2021 (“Distributor Settlement”), and acting through the undersigned
authorized official, hereby elects to participate in the Distributor Settlement, release all Released
Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Distributor Settlement,
understands that all terms in this Participation Form have the meanings defined therein,
and agrees that by signing this Participation Form, the Governmental Entity elects to
participate in the Distributor Settlement and become a Participating Subdivision as
provided therein.
2. The Governmental Entity shall, within 14 days of the Reference Date and prior to the
filing of the Consent Judgment, secure the dismissal with prejudice of any Released
Claims that it has filed.
3. The Governmental Entity agrees to the terms of the Distributor Settlement pertaining to
Subdivisions as defined therein.
4. By agreeing to the terms of the Distributor Settlement and becoming a Releasor, the
Governmental Entity is entitled to the benefits provided therein, including, if applicable,
monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Distributor
Settlement solely for the purposes provided therein.
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental
Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role
as provided in, and for resolving disputes to the extent provided in, the Distributor
Settlement. The Governmental Entity likewise agrees to arbitrate before the National
Arbitration Panel as provided in, and for resolving disputes to the extent otherwise
provided in, the Distributor Settlement.
K-2
7. The Governmental Entity has the right to enforce the Distributor Settlement as provided
therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for
all purposes in the Distributor Settlement, including, but not limited to, all provisions of
Part XI, and along with all departments, agencies, divisions, boards, commissions,
districts, instrumentalities of any kind and attorneys, and any person in their official
capacity elected or appointed to serve any of the foregoing and any agency, person, or
other entity claiming by or through any of the foregoing, and any other entity identified in
the definition of Releasor, provides for a release to the fullest extent of its authority. As a
Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably
covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or
claimed, or to otherwise seek to establish liability for any Released Claims against any
Released Entity in any forum whatsoever. The releases provided for in the Distributor
Settlement are intended by the Parties to be broad and shall be interpreted so as to give
the Released Entities the broadest possible bar against any liability relating in any way to
Released Claims and extend to the full extent of the power of the Governmental Entity to
release claims. The Distributor Settlement shall be a complete bar to any Released
Claim.
9. The Governmental Entity hereby takes on all rights and obligations of a Participating
Subdivision as set forth in the Distributor Settlement.
10. In connection with the releases provided for in the Distributor Settlement, each
Governmental Entity expressly waives, releases, and forever discharges any and all
provisions, rights, and benefits conferred by any law of any state or territory of the
United States or other jurisdiction, or principle of common law, which is similar,
comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that
the creditor or releasing party does not know or suspect to exist in his or
her favor at the time of executing the release, and that if known by him or
her would have materially affected his or her settlement with the debtor or
released party.
A Releasor may hereafter discover facts other than or different from those which it
knows, believes, or assumes to be true with respect to the Released Claims, but each
Governmental Entity hereby expressly waives and fully, finally, and forever settles,
releases and discharges, upon the Effective Date, any and all Released Claims that may
exist as of such date but which Releasors do not know or suspect to exist, whether
through ignorance, oversight, error, negligence or through no fault whatsoever, and
which, if known, would materially affect the Governmental Entities’ decision to
participate in the Distributor Settlement.
K-3
11. Nothing herein is intended to modify in any way the terms of the Distributor Settlement,
to which Governmental Entity hereby agrees. To the extent this Participation Form is
interpreted differently from the Distributor Settlement in any respect, the Distributor
Settlement controls.
I have all necessary power and authorization to execute this Participation Form on behalf of the
Governmental Entity.
Signature: _____________________________
Name: _____________________________
Title: _____________________________
Date: _____________________________
Item/Subject: Receive a developer’s presentation and consider approval of their request for
the creation of a Public Improvement District (PID) inside the city on property located in the 3400 block
of State Highway 30 west.
Initiating Department/Presenter: Development Services
Presenter: Kevin Byal, Director of Development Services
Recommended Motion: Move to authorize the City Manager to prepare the necessary agreements for
the creation of a Public Improvement District (PID) for the subject property located on State Highway
30 West.
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: The city has been approached by a developer with interest in creating a residential
development on a +/-35-acre tract located at 3400 SH 30 West (a vicinity map is attached with this
item). As part of the discussion between the developer and the city, the developer has expressed
interest in creating a Public Improvement District (PID) to assist with financing the infrastructure of the
development.
The newly adopted Comprehensive Plan discusses this issue in several places. Excerpts from the plan
are attached with this agenda item. In summary, it states that the City should carefully consider the
creation of special districts for the financing of infrastructure and other improvements.
The item before the Council on this agenda is a presentation and request from the developer to proceed
with the creation of a PID for their project. Should the Council vote to approve of the concept of
creating a PID for this specific project, staff will proceed in working with the developer to prepare the
necessary documents and agreements for final Council consideration.
Previous Council Action: None.
Financial Implications: ☒There is no financial impact associated with this item. The financial impact of any action the
Council considers will be included in the PID assessment.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•Vicinty maps
•Developers Presentation
12/21/21
Agenda Item: 2a
CITY COUNCIL AGENDA
•Comprehensive Plan excerpts
CITY OF HUNTSVILLE, TX
ENGINEERING DEPARTMENT / GIS DIVISION
8 CREATED DATE: 11/29/2021
3400 SH 30 West
Huntsville GIS Division
1 in = 1,000 ft
0 0.2 0.40.1 mi
On 8.5 x 11 inch Print
On Any Print Size
Service Layer Credits: City of Huntsville GIS Division
The City of Huntsville, Texas or its employees gives NO warranty, expressed or implied, as to the accuracy, reliability, or completeness of these data. See full GIS Data Disclaimer at: www.huntsvilletx.gov/gis
Petitionto the City Council of HuntsvilleforPublic Infrastructure District,Development of a PID,Development Agreement
By
Paul Hayden Developments
&
BTR Advisors
The Reserves of Huntsville
Site Location for a PID
The Reserve –145 Residential Homes
The Reserve –145 Residential Homes
The Reserves of Huntsville is a 145 Unit,“purpose built”,Single-Family Rental Community.
Offering Huntsville residents,the Choice to live in a new home,maintenance free.
The Community will be professionally Leased-Managed by a regional SFR Management
Company.
Residence will enjoy all the benefits and comforts in living a new home,
–without the financial burden of home ownership and long-term obligation.
The Reserve –145 Residential Homes
The Reserves of Huntsville Offers:
•3 Bedrooms, 2 Bath Homes Ranging in Size
from 1,200 –1,525 square feet
•2 Car Garage
•Stainless Steel Appliances
•Enclosed Privacy Fence
•In home Security System
•Covered Back Yard Porch
•Sidewalks
•Bi-Monthly Lawn Care
The Reserve –145 Residential Homes
The Reserves Community Offers:
Community Pond
•Water features
•Refection Benches
•Natural Walking Trails
•Dog Park & Pergola
Community Park
•Playground
•Park Benches
•Flower Garden
The Reserve –145 Residential Homes
The Reserves of Huntsville is a $35M construction investments for the
current and future residence of Huntsville.
The project will add an estimated $550,000 in new annual tax revenue on
a pro rata basis for:
•City of Huntsville
•Huntsville ISD
•Walker County
•Walker County Hospital District
The Reserve –145 Residential Homes
Facts of Timing, Cost and Benefits of a PID:
•MUD’s & PID’s are financing vehicles used by Developers to finance infrastructure cost. This
enables the developer / builder to obtain lower and long-term financing than of a home buyer.
•MUDs are approved by the Texas Legislature and PID’s are approved by the local jurisdiction.
•The 87th Texas Legislative Session began on January 12, 2021, ending on May 31, 2021.
•The 88th Texas Legislative Session begins on January 10, 2023.
•Meaning, any potential development that currently under consideration that does not have a MUD
in place now, will be required to self-finance 100% their project, or be accepted into an existing
MUD.
•Our goal is to begin our development by Q2 of 2022.
•PID’s allows Developer’s access to development funds during the horizontal construction phase,
MUD’s provide funds 1 year after the vertical construction phase, tying up costly equity that can
be deployed to support other outside infrastructure cost that is required by local government.
•PID’s are funded by Tax Exempt Bonds, and only finance approximately 50% infrastructure cost
of a development.
The Reserve –145 Residential Homes
Petition 1 –Allow Developer’s to choose the best financing option for their
Development –with final approval from the City on case-by-case basis, PID or MUD:
Petition 2 –Request for a PID
Paul Hayden Developments is seeking the approval of a PID for The Reserve of
Huntsville.
Framework of terms:
•PID request of $4.6MM
•30 Year Bond
•Interest Rate 3.50%
•Annual Assessment base on home values of $265,000
•Annual Fund Administration Fee of $50,000
•Annual City -3rd Party Fund Administration Fee of $35,000
•Annual City Administrative Charges $35,000 (estimated)
•Annual Assessment per home $1,700 -$1,775 –proposal rate of $0.65
The Reserve –145 Residential Homes
Petition 3 –Request to allow the City Manager to begin working with Paul Hayden
Development on a Development Agreement. The general term of the agreement is as
follow:
•The City agrees to serve the proposed development with water and sewer
•The City agrees to accept the general land plan as presented
•For sewer capacity, the City is required to upgrade a lift station with the expected cost
$2.8MM
•Developer agrees to fund the lift station upgrade on behalf of the City
•City agrees to reimburse the lift station back to the Developer over a period of time (terms
to be discussed and negotiated)
•The City agrees that the lift station upgrade can be completed in a timely manner,
estimated completion of 9 months after the date of execution of the Development
Agreement.
The Reserve –145 Residential Homes
Project Owners & Debt Sponsors:
•Paul Hayden Developments –Katy, Texas
•CBA Land Capital –Houston, Texas
•Bank of Houston –Houston, Texas
Project Team:
•L Square Engineering –Conroe, Texas
•Stylecraft Homes –College Station, Texas
Legal Team:
•Marcus Dietz –Public Infrastructure District
•Wilson Cribs –Development Agreement
The Reserves of Huntsville –Project Team Members
The Reserve –145 Residential Homes
The Reserves of Huntsville
Project Renderings
The Reserve –Park
The Reserve –House Rendering 1 –3B, 2B
The Reserve –House Rendering 2 –3B, 2B
The Reserve –House Rendering 3 –3B, 2B
The Reserve –House Rendering 4 –3B, 2B
The Reserve –House Rendering 5 –3B, 2B
Item/Subject: FIRST READING - Consider authorizing the City Manager to award contract to Dedicated
Controls, LLC for the Rehab of the #1 One Million Gallon Ground Storage tank.
Initiating Department/Presenter: Public Works/Brent S. Sherrod, P.E.
Presenter: Brent S. Sherrod, P.E., Public Works Director
Recommended Motion: No Action required, first reading. Should the Council wish to waive the
second reading, the appropriate motion would be:
Move to waive the two reading requirements of the rules of procedure and authorize the City Manager
to award contract to Dedicated Controls, LLC, in the amount of $317,240.00, which will complete the
rehab of the #1 One Million Gallon Ground Storage Tank at Palm Street.
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: The #1 One Million Gallon Storage Tank (GST) is an above ground welded steel potable
water storage tank located at the Palm Street Water Plant. A complete blast and repaint was performed
on this tank in 2008 and the current coating has reached the end of its life. The maintenance of the 1
MG GST will ensure longer tank life, better appearance of the facility and is a critical part of the Water
Production process.
The planned scope of work to the ground storage tank includes complete exterior and interior sandblast
cleaning and repainting of the tank with a three-coat finish. The blasting and repainting of the storage
tank will require containment. During the repainting, a tent-like cover will be draped around the tank
to protect the surrounding area as sanding and painting is completed. Other work includes the
replacement of two 12” valves, one 16” valve, piping and replacement of the roof vent.
City staff utilized sealed bid proposals for rehabilitation to the Palm Street 1MG Ground Storage Tank
to achieve optimal results at a competitive price. Multiple vendors were invited to bid, along with the
invitation to bid being advertised as required. A mandatory site visit was conducted on November 10th
and the three bids were received and opened on November 18, 2021. Staff have checked references
for Dedicated Controls, LLC. and recommends approving them to provide the necessary services, as
outlined within the quote, for $317,240.00.
Previous Council Action: The funds for this project were approved by council on 11/16/2021 with the
allocation of the ARP funds. The rehab for the #1 One Million Gallon Storage Tank was last approved
by council in the 2006/2007 budget.
Financial Implications: ☒Item is budgeted: 713-71306-62300 In the amount of: $320,000
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
12/21/2021
Agenda Item: 2b
CITY COUNCIL AGENDA
Lump sum for the Palm Street 1MG Ground
Storage Tank Rehabilitation Bid NO. 22-04.
$317.240.00
Total Bid Amount
$357,600.00
Total Bid Amount
$376,023.41
Total Bid Amount Total Bid Amount Total Bid Amount Total Bid Amount
Number of days from competition from date of Purchase Order (December 13, 2021)
___________days. 150 Days 120 Days 150 Days Days Days Days
Bid Tabulation
Project Name: Bid NO. 22-04 Palm Street 1MG Ground Storage Tank Rehabilitation
Date: Thursday, November 18, 2021 Time: 2:00 P.M. Central Time
Location: 1212 Avenue M Huntsville, TX 77340
Dedicated Controls,
LLC Viking Painting, LLC GM Roberts Inc. DBA
Corrosion Eliminators
Item/Subject: Consider adopting Resolution No. 2021-22 and authorize the City Manager to execute
the settlement agreement adopting the allocation method for opioid settlement proceeds as set forth
in the settlement allocation term sheet.
Initiating Department/Presenter: City Manager
Presenter: Rick J Rudometkin, Deputy City Manager
Recommended Motion: Move to adopt resolution 2021-22 and authorize the City Manager to execute
the settlement agreement adopting the allocation method for opioid settlement proceeds as set forth
in the settlement allocation term sheet in the amount of $80,373.
Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens.
Discussion: On July 23, 2021, Attorney General Paxton announced global settlements had been reached
with the three major opioid distributors for injunctive relief to the opioid crisis. The City of Huntsville is
entitled to a portion of these funds that Texas received in the amount of $80,373. Several hundred
political subdivisions of the state have already signed onto the settlement agreement.
There is a variety of uses to assist in the abatement of the opioid crisis including everything from
prevention/awareness to recovery. The funds are earmarked to remediate the harms caused by the
opioid epidemic and to recover the costs incurred in investigating and pursuing these claims.
The deadline to approve the settlement term sheet is January 2, 2022.
Previous Council Action. No previous action has been considered.
Financial Implications: ☒Item is not budgeted: In the amount of $80,373
A budget amendment will be brought forward in the future if the settlement agreement is approved.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•Opioid settlement one-pager
•Opioids Resolution
•Settlement allocation term sheet
•Subdivision settlement participation form
12/21/21
Agenda Item: 1e
CITY COUNCIL AGENDA
SUMMARY OF PROPOSED OPIOID SETTLEMENTS
SUMMARY OF PROPOSED OPIOID SETTLEMENTS
BACKGROUND
Texas, along with a broad coalition of states and subdivisions, has
reached fnal agreements with four companies to resolve legal
claims against for their role in the opioid crisis. One agreement is
with opioid manufacturer Johnson & Johnson. The other is three
major pharmaceutical distributors: AmerisourceBergen, Cardinal
Health, and McKesson.
FINANCIAL TERMS
The two agreements provide for $26 billion in payments over
18 years, with $23.9 billion available for opioid abatement and
signifcant amounts front loaded. Funding will be distributed
to states according to the allocation agreement reached among
the Attorneys General. Subdivisions can only participate in the
agreement if their state participates. Texas’ combined share
is almost $1.5 billion: $1.17 billion from the distributors and
$268 million from J&J. Distribution within Texas is handled
through an intrastate agreement between the state and litigating
subdivisions. The funding must be used to support any of a wide
variety of strategies to fght the opioid crisis. Separate provisions
exist to compensate attorneys who have pursued opioid litigation
on behalf of states and local governments.
Once the state agrees to participate, then the more subdivisions
that join, the more money everyone in Texas will receive. Future
opioid litigation may result in suspension and reduction of
payments. Even without full resolution of claims, states and
subdivisions can still receive substantial payments by resolving a
signifcant portion of current and future claims.
INJUNCTIVE TERMS
Both agreements both contain industry-changing injunctive
terms. The distributors will be subject to more oversight and
accountability, including an independent monitor, to prevent
deliveries of opioids to pharmacies where diversion and misuse
occur. They will be required to establish and fund an independent
clearinghouse to track opioid distribution nationwide and
fag suspicious orders. J&J will be prohibited from selling or
promoting opioids.
HOW TO JOIN
To adopt the settlement and allocation schedule, you need to:
1. sign the Subdivision Settlement Participation Form;
2. adopt the Texas Term Sheet and its intrastate allocation
schedule;
3. return both to opioids@oag.texas.gov .
The deadline for states to sign on is August 21, 2021. Subdivisions
in participating states then have through January 2, 2022, to join.
FOR MORE INFORMATION, PLEASE VISIT:
www.texasattorneygeneral.gov/globalopioidsettlement
1
RESOLUTION NO. 2021-22
THE STATE OF TEXAS § COUNTY OF WALKER § CITY OF HUNTSVILLE §
BE IT REMEMBERED, at a regular meeting of the Huntsville City Council held on the 21st day of December 2021, on motion made by __________________________ Council member and
and seconded by
___________________________ Council member, the following Resolution was adopted: WHEREAS, the City obtained information indicating that certain drug companies and their
corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the litigation (collectively, “Defendants”) have engaged in fraudulent and/or reckless marketing and/or distribution of opioids that have resulted in addictions and overdoses; and
WHEREAS, these actions, conduct and misconduct have resulted in significant financial costs to
the City; and
WHEREAS, on December 21, 2021, the State of Texas, through the Office of the Attorney General,
and a negotiation group for Texas political subdivisions entered into an Agreement entitled Texas
Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter, the Texas Term Sheet) approving the allocation of any and all opioid settlement funds within the State of Texas. The Texas Term Sheet is attached hereto as Exhibit “A”; and
WHEREAS, Special Counsel and the State of Texas have recommended that the City of
Huntsville support the adoption and approval the Texas Term Sheet in its entirety.
NOW, THEREFORE, BE IT RESOLVED that we, the City of Huntsville:
1. Support the adoption and approval the Texas Term Sheet in its entirety; and
2. Finds as follows:
a. There is a substantial need for repayment of opioid-related expenditures and payment
to abate opioid-related harms in and about the City; and
b. The City of Huntsville supports in its entirety and hereby adopts the allocation method for opioid settlement proceeds as set forth in the STATE OF TEXAS AND TEXAS
2
POLITICAL SUBDIVISIONS’ OPIOID ABATEMENT FUND COUNCIL AND SETTLEMENT ALLOCATION TERM SHEET, attached hereto as Exhibit A. The
City of Huntsville understands that the purpose of this Texas Term Sheet is to permit
collaboration between the State of Texas and Political Subdivisions to explore and potentially effectuate resolution of the Opioid Litigation against Pharmaceutical Supply Chain Participants as defined therein. We also understand that an additional purpose is to create an effective means of distributing any potential settlement funds obtained
under this Texas Term Sheet between the State of Texas and Political Subdivisions in
a manner and means that would promote an effective and meaningful use of the funds in abating the opioid epidemic in this City and throughout Texas.
PASSED AND APPROVED on this 21st day of December 2021.
____________________________________
Andy Brauninger, Mayor City of Huntsville, Texas ATTEST:
____________________________________ Kristy Doll, City Secretary City of Huntsville, Texas
APPROVED AS TO FORM:
____________________________________ Leonard Schneider, City Attorney City of Huntsville, Texas
1
TEXAS OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET
WHEREAS, the people of the State of Texas and its communities have been harmed
through the National and Statewide epidemic caused by licit and illicit opioid use
and distribution within the State of Texas; and now,
WHEREAS, the State of Texas, though its elected representatives and counsel,
including the Honorable Ken Paxton, Attorney General of the State of Texas, and
certain Political Subdivisions, through their elected representatives and counsel, are
separately engaged in litigation seeking to hold those entities in the supply chain
accountable for the damage caused; and now,
WHEREAS, the State of Texas, through its Attorney General and its Political
Subdivisions, share a common desire to abate and alleviate the impacts of the
epidemic throughout the State of Texas; and now,
THEREFORE, the State of Texas and its Political Subdivisions, subject to
Opioid Abatement Fund Council
and Settlement Allocation Term Sheet (Texas Term Sheet) relating to the allocation
and use of the proceeds of any Settlements as described.
A. Definitions
As used in this Texas Term Sheet:
2
1. Texas acting through its Attorney
General.
2. Political Subdivision mean any Texas municipality and county.
3. Texas, the Political Subdivisions, and
Steering Committee and Liaison Counsel (PSC) in the Texas
Opioid MDL, In Re: Texas Opioid Litigation, MDL No. 2018-63587, in
the 152d District Court of Harris County, Texas.
4. a Political Subdivision that filed
suit in the state courts of the State of Texas prior to the Execution Date of
this Agreement, whether or not such case was transferred to Texas Opioid
MDL, or removed to federal court.
5. onal fund established for the benefit
of the Texas Political Subdivisions. In no event shall any National Fund
be used to create federal jurisdiction, equitable or otherwise, over the
Texas Political Subdivisions or those similarly situated state-court litigants
who are included in the state coalition, nor shall the National Fund require
participating in a class action or signing a participation agreement as part
of the criteria for participating in the National Fund.
6. three-member group comprising
four representatives for each of (1) the State; (2) the PSC; and (3)
3
Political Subdivisions
represented by the Texas Attorney General or his designees. The PSC shall
be represented by attorneys Mikal Watts, Jeffrey Simon, Dara Hegar, Dan
Downey, or their designees. shall be
represented by Clay Jenkins (Dallas County Judge)
(Special Assistant County Attorney, Harris County), Nelson Wolff (Bexar
County Judge), and Nathaniel Moran (Smith County Judge) or their
designees.
7.
claims against a Pharmaceutical Supply Chain Participant that includes the
State and Political Subdivisions.
8.
Settlement as defined in this Texas Term Sheet.
8. those uses identified in Exhibit A
hereto.
9.
through which opioids or opioids products are manufactured, marketed,
promoted, distributed, or dispensed.
4
10. ean any entity that
engages in or has engaged in the manufacture, marketing, promotion,
distribution, or dispensing of an opioid analgesic.
11.
hereto, which has the purpose of ensuring the funds recovered by Texas
(through the joint actions of the Attorney General and the Texas Political
Subdivisions) are allocated fairly and spent to remediate the opioid crisis
in Texas, using efficient and cost-effective methods that are directed to the
hardest hit regions in Texas while also ensuring that all Texans benefit
from prevention and recovery efforts.
B. Allocation of Settlement Proceeds
1. All Opioid Funds distributed in Texas shall be divided with 15% going to
Political Subdivisions Subdivision 70% to the Texas Opioid
Abatement Fund through the Texas Opioid Council (Texas Abatement
Fund Share) identified and described on Exhibits A and C hereto, and 15%
to the Office of the Texas Attorney General as Counsel for the State of
Texas Out of the Texas Opioid Abatement Fund,
reasonable expenses up to 1% shall be paid to the Texas Comptroller for
the administration of the Texas Opioid Council pursuant to the Opioid
5
Abatement Fund (Texas Settlement) Opioid Council Agreement, Exhibit
A hereto.
2. The Subdivisions Share shall be allocated in accordance with the division
of proceeds on Exhibit B hereto.
3. The Texas Abatement Fund Share shall be allocated to the Opioid Council
to be apportioned in accordance with the guidelines of Exhibit A, and
Exhibit C hereto.
4. In the event a Subdivision merges, dissolves, or ceases to exist, the
allocation percentage for that Subdivision shall be redistributed as directed
by the settlement document, and if not specified, equitably based on the
composition of the successor Subdivision. If a Subdivision for any reason
is excluded from a specific settlement, the allocation percentage for that
Subdivision shall be redistributed as directed by the settlement document,
and if not specified, equitably among the participating Subdivisions.
5. Funds obtained from parties unrelated to the Litigation, via grant, bequest,
gift or the like, separate and distinct from the Litigation, may be directed
to the Texas Opioid Council and disbursed as set forth below.
6. The Subdivision share shall be initially deposited and paid in cash directly
to the Subdivision under the authority and guidance of the Texas MDL
Court, who shall direct any Settlement funds to be held in trust in a
6
segregated account to benefit the Subdivisions and to be promptly
distributed as set forth herein and in accordance with Exhibit B.
7. Nothing in this Texas Term Sheet should alter or change any Subdivision
rights to pursue its own claim. Rather, the intent of this Texas Term Sheet
is to join all parties to disburse settlement proceeds from one or more
defendants to all parties participating in that settlement within Texas.
8. Opioid Funds from the Texas Abatement Fund Share shall be directed to
the Texas Opioid Council and used in accordance with the guidelines as
set out on Exhibit A hereto, and the Texas Abatement Fund Share shall be
distributed to the Texas Opioid Council under the authority and guidance
of the Texas MDL Court, consistent with Exhibits A and C, and the by-
laws of the Texas Opioid Council documents and disbursed as set forth
therein, including without limitation all abatement funds and the 1%
holdback for expenses.
9. The State of Texas and the Political Subdivisions understand and
acknowledge that additional steps may need to be undertaken to assist the
Texas Opioid Council in its mission, at a predictable level of funding,
regardless of external factors.
C. Payment of Counsel and Litigation Expenses
7
1.Any Master Settlement Agreement settlement will govern the payment of
fees and litigation expenses to the Parties. The Parties agree to direct
control of any Texas Political
by the Texas MDL Court, In re: Texas Opioid Litigation, MDL No. 2018-
63587, in the 152nd District Court of Harris County, Texas, and with the
intent to compensate all counsel for Texas Political Subdivisions who have
not chosen to otherwise seek compensation for fees and expenses from any
federal MDL common benefit fund.
2.The Parties agree that no portion of the State of Texas 15% allocation
share from any settlement shall be administered through the National
Fund, the Texas MDL Court, or Texas Opioid Fee and Expense Fund,
but shall be directed for payment to the State of Texas by the State of
Texas.
3. The State of Texas and the Texas Political Subdivisions, and their
respective attorneys, agree that all fees whether contingent, hourly,
fixed or otherwise owed by the Texas Political Subdivisions shall be
paid out of the National Fund or as otherwise provided for herein to the
Texas Opioid Fee and Expense Fund to be distributed by the 152nd
8
District Court of Harris County, Texas pursuant to its past and future
orders.
4.From any opioid-related settlements with McKesson, Cardinal Health,
ABDC, and Johnson & Johnson, and for any future opioid-related
settlements negotiated, in whole or in part, by the Negotiating
Committee with any other Pharmaceutical Supply Chain Participant,
the funds to be deposited in the Texas Opioid Fee and Expense Fund
shall be 9.3925% of the combined Texas Political Subdivision and
Texas Abatement Fund portions of each payment (annual or otherwise)
to the State of Texas for that settlement, plus expenses from the
National Fund, and shall be sought by Texas Political Subdivision
Counsel initially through the National Fund. The Texas Political
Subdivisions percentage share of fees and expenses from the National
Fund shall be directed to the Texas Opioid Fee and Expense Fund in
the Texas MDL, as soon as is practical, for allocation and distribution
in accordance with the guidelines herein.
5.If the National Fund share to the Texas Political Subdivisions is
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, per subsection 4, immediately supra, or if payment from
the National Fund is not received within 12 months after the date the
9
first payment is made by the Defendants pursuant to the settlement, then
the Texas Political Subdivisions shall recover up to 12.5% of the Texas
Political Subdivision Share to make up any difference.
6.If the National Fund and the Texas Political Subdivision share are
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, or if payment from the National Fund is not received
within 12 months after the date the first payment is made by the
Defendants pursuant to the settlement, then the Texas Political
Subdivisions shall recover up to 8.75% of the Abatement Fund Share
to make up any difference. In no event shall the Texas Political
Subdivision share exceed 9.3925% of the combined Texas Political
Subdivision and Texas Abatement Fund portions of any settlement,
plus expenses from the National Fund. In the event that any payment
is received from the National Fund such that the total amount in fees
and expenses exceeds 9.3925%, the Texas Political Subdivisions shall
return any amounts received greater than 9.3925% of the combined
Texas Political Subdivision and Texas Abatement Fund portions to
those respective Funds.
10
7.For each settlement utilizing a National Fund, the Texas Political
Subdivisions need only make one attempt at seeking fees and expenses
there.
8.The total amount of the Texas Opioid Fee and Expense Fund shall be
reduced proportionally, according to the agreed upon allocation of the
Texas Subdivision Fund, for any Texas litigating Political Subdivision
that (1) fails to enter the settlement; and (2) was filed in Texas state
court, and was transferred to the Texas MDL (or removed before or
during transfer to the Texas MDL) as of the execution date of this
Agreement.
D. The Texas Opioid Council and Texas Abatement Fund
The Texas Opioid Council and Texas Abatement Fund is described in detail
at Exhibit A, incorporated herein by reference.
E. Settlement Negotiations
1. The State and Negotiating Committee agree to inform each other in
advance of any negotiations relating to a Texas-only settlement with a
Pharmaceutical Supply Chain Participant that includes both the State and
its Political Subdivisions and shall provide each other the opportunity to
participate in all such negotiations. Any Texas-only Settlement agreed to
with the State and Negotiating Committee shall be subject to the approval
11
of a majority of litigating Political Subdivisions. The Parties further agree
to keep each other reasonably informed of all other global settlement
negotiations with Pharmaceutical Supply Chain Participants and to include
the Negotiating Committee or designees. Neither this provision, nor any
other, shall be construed to state or imply that either the State or the
Negotiating Committee is unauthorized to engage in settlement
negotiations with Pharmaceutical Supply Chain Participants without prior
consent or contemporaneous participation of the other, or that either party
is entitled to participate as an active or direct participant in settlement
negotiations with the other.
collaborative, incremental stages need not be so.
2. Any Master Settlement Agreement (MSA) shall be subject to the approval
and jurisdiction of the Texas MDL Court.
3. As this is a Texas-specific effort, the Committee shall be Chaired by the
Attorney General. However, the Attorney General, or his designees, shall
endeavor to coordinate any publicity or other efforts to speak publicly with
the other Committee Members.
4. The State of Texas, the Texas MDL Plaintiff s Steering Committee
representatives, or the Political Subdivision representatives may withdraw
12
from coordinated Settlement discussions detailed in this Section upon 10
business
counsel for any affected Pharmaceutical Supply Chain Participant. The
withdrawal of any Member releases the remaining Committee Members
from the restrictions and obligations in this Section.
5.
with trial or, within 30 days of the date upon which a trial involving that
Pa
is scheduled to begin, reach a case specific resolution with that particular
Pharmaceutical Supply Chain Participant.
F. Amendments
The Parties agree to make such amendments as necessary to implement the
intent of this agreement.
Acknowledgment of Agreement
We, the undersigned, have participated in the drafting of the above Texas
Term Sheet, including consideration based on comments solicited from Political
Subdivisions. This document has been collaboratively drafted to maintain all
individual claims while allowing the State and its Political Subdivisions to cooperate
in exploring all possible means of resolution. Nothing in this agreement binds any
party to any specific outcome. Any resolution under this document will require
13
acceptance by the State of Texas and a majority of the Litigating Political
Subdivisions.
We, the undersigned, hereby accept the STATE OF TEXAS AND TEXAS
POLITICAL SUBDIVISION OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET. We understand that the purpose of
this Texas Term Sheet is to permit collaboration between the State of Texas and
Political Subdivisions to explore and potentially effectuate earlier resolution of the
Opioid Litigation against Pharmaceutical Supply Chain Participants. We also
understand that an additional purpose is to create an effective means of distributing
any potential settlement funds obtained under this Texas Term Sheet between the
State of Texas and Political Subdivisions in a manner and means that would promote
an effective and meaningful use of the funds in abating the opioid epidemic
throughout Texas.
EXHIBIT A
1
Opioid Abatement Fund (Texas) Settlement
Opioid Council
As part of the settlement agreement and upon its execution, the parties will form the Texas Opioid
Council (Council) to establish the framework that ensures the funds recovered by Texas (through
the joint actions of the Attorney General and the political subdivisions) are allocated fairly
and spent to remediate the opioid crisis in Texas, using efficient and cost-effective methods that
are directed to the hardest hit regions in Texas while also ensuring that all Texans benefit from
prevention and recovery efforts.
I. Structure
The Council will be responsible for the processes and procedures governing the spending of the
funds held in the Texas Abatement Fund, which will be approximately 70% of all funds obtained
through settlement and/or litigation of the claims asserted by the State and its subdivisions in the
investigations and litigation related to the manufacturing, marketing, distribution, and sale of
opioids and related pharmaceuticals.
Money paid into the abatement fund will be held by an independent administrator, who shall be
responsible for the ministerial task of releasing funds solely as authorized below by the Council,
and accounting for all payments to and from the fund.
The Council will be formed when a court of competent jurisdiction enters an order settling the
matter, including any order of a bankruptcy court. The Council members must be appointed
within sixty (60) days of the date the order is entered.
A. Membership
The Council shall be comprised of the following thirteen (13) members:
1. Statewide Members.
Six members appointed by the Governor and Attorney General
interest in opioid abatement. The statewide members are appointed as follows:
a. The Governor shall appoint three (3) members who are licensed health
professionals with significant experience in opioid interventions;
b. The Attorney General shall appoint three (3) members who are licensed
professionals with significant experience in opioid incidences; and
c. The Governor will appoint the Chair of the Council as a non-voting member.
The Chair may only cast a vote in the event there is a tie of the membership.
2. Regional Members.
Six (6) members appointed by the S subdivisions to represent their
designated HHSC Regional Healthcare
2
Partnership (Regions) to ensure dedicated regional, urban, and rural representation on the
Council. The regional appointees must be from either academia or the medical profession
with significant experience in opioid interventions. The regional members are appointed as
follows:
a. One member representing Regions 9 and 10 (Dallas Ft-Worth);
b. One member representing Region 3 (Houston);
c. One member representing Regions 11, 12, 13, 14, 15, 19 (West Texas);
d. One member representing Regions 6, 7, 8, 16 (Austin-San Antonio);
e. One member representing Regions 1, 2, 17, 18 (East Texas); and
f. One member representing Regions 4, 5, 20 (South Texas).
B. Terms
All members of the Council are appointed to serve staggered two-year terms, with the terms of
members expiring February 1 of each year. A member may serve no more than two consecutive
terms, for a total of four consecutive years. For the first term, four (4) members (two (2) statewide
and two (2) for the subdivisions) will serve a three-year term. A vacancy on the Council shall be
filled for the unexpired term in the same manner as the original appointment. The Governor will
appoint the Chair of the Council who will not vote on Council business unless there is a tie vote,
and the subdivisions will appoint a Vice-Chair voting member from one of the regional members.
C. Governance
1. Administration
The Council is attached administratively to the Comptroller. The Council is an
independent, quasi-governmental agency because it is responsible for the statewide
distribution of the abatement settlement funds. The Council is exempt from the following
statutes:
a. Chapter 316 of the Government Code (Appropriations);
b. Chapter 322 of the Government Code (Legislative Budget Board);
c. Chapter 325 of the Government Code (Sunset);
d. Chapter 783 of the Government Code (Uniform Grants and Contract
Management);
e. Chapter 2001 of the Government Code (Administrative Procedure);
f. Chapter 2052 of the Government Code (State Agency Reports and Publications);
g. Chapter 2261 of the Government Code (State Contracting Standards and
Oversight);
h. Chapter 2262 of the Government Code (Statewide Contract Management);
3
i. Chapter 262 of the Local Government Code (Purchasing and Contracting
Authority of Counties); and
j. Chapter 271 of the Local Government Code (Purchasing and Contracting
Authority of Municipalities, Counties, and Certain Other Local Governments).
2. Transparency
The Council will abide by state laws relating to open meetings and public information,
including Chapters 551 and 552 of the Texas Government Code.
i. The Council shall hold at least four regular meetings each year. The Council may
hold additional meetings on the request of the Chair or on the written request of
three members of the council. All meetings shall be open to the public, and public
notice of meetings shall be given as required by state law.
ii. The Council may convene in a closed, non-public meeting:
a. If the Commission must discuss:
1. Negotiation of contract awards; and
2. Matters specifically exempted from disclosure by federal and
state statutes.
b. All minutes and documents of a closed meeting shall remain under seal,
subject to release only order of a court of competent jurisdiction.
3. Authority
The Council does not have rulemaking authority. The terms of each Judgment, Master
Settlement Agreement, or any Bankruptcy Settlement for Texas control the authority of
the Council and the Council may not stray outside the bounds of the authority and power
vested by such settlements. Should the Council require legal assistance in determining
their authority, the Council may direct the executive director to seek legal advice from the
Attorney General to clarify the issue.
D. Operation and Expenses
The independent administrator will set aside up to one (1) percent of the settlement funds for the
administration of the Council for reasonable costs and expenses of operating the foregoing duties,
including educational activities.
1. Executive Director
The Comptroller will employ the executive director of the Council and other personnel as
necessary to administer the duties of the Council and carry out the functions of the Council.
The executive director must have at least 10 years of experience in government or public
administration and is classified as a Director V/B30
Classification. The Comptroller will pay the salaries of the Council employees from the
4
one (1) percent of the settlement funds set aside for the administration of the Council. The
Comptroller will request funds from the Texas Abatement Fund Point of Contact.
2. Travel Reimbursement
A person appointed to the Council is entitled to reimbursement for the travel expenses
incurred in attending Council duties. A member of the Council may be reimbursed for
actual expenses for meals, lodging, transportation, and incidental expenses in accordance
with travel rates set by the federal General Services Administration.
II. Duties/Roles
It is the duty of the Council to determine and approve the opioid abatement strategies and funding
awards.
A. Approved Abatement Strategies
The Council will develop the approved Texas list of abatement strategies based on but not limited
to the existing national list of opioid abatement strategies (see attached Appendix A) for
implementing the Texas Abatement Fund.
1. The Council shall only approve strategies which are evidence-informed strategies.
2. The Texas list of abatement strategies must be approved by majority vote. The majority
vote must include a majority from both sides of the statewide members and regional
members in order to be approved, e.g., at least four (4) of six (6) members on each side.
B. Texas Abatement Fund Point of Contact
The Council will determine a single point of contact called the Abatement Fund Point of Contact
(POC) to be established as the sole entity authorized to receive requests for funds and approve
expenditures in Texas and order the release of funds from the Texas Abatement Fund by the
independent administrator. The POC may be an independent third party selected by the Council
with expertise in banking or financial management. The POC will manage the Opioid Council
Bank Account (Account). Upon a vote, the Council will direct the POC to contact the independent
administrator to release funds to the Account. The Account is outside the State Treasury and not
managed by any state or local officials. The POC is responsible for payments to the qualified
entities selected by the Council for abatement fund awards. The POC will submit a monthly
financial statement on the Account to the Council.
C. Auditor
An independent auditor appointed by the Council will perform an audit on the Account on an
annual basis and report its findings, if any, to the Council.
D. Funding Allocation
5
The Council is the sole decision-maker on the funding allocation process of the abatement funds.
The Council will develop the application and award process based on the parameters outlined
below. An entity seeking funds from the Council must apply for funds; no funds will be awarded
without an application. The executive director and personnel may assist the Council in gathering
and compiling the applications for consideration; however, the Council members are the sole
decision-makers of awards and funding determination. The Council will use the following
processes to award funds:
1. Statewide Funds. The Council will consider, adopt and approve the allocation
methodology attached as Exhibit C, based upon population health data and prevalence
of opioid incidences, at the Coun . Adoption of such methodology
will allow each Region to customize the approved abatement strategies to fit its
communities needs. The statewide regional funds will account for seventy-five (75)
percent of the total overall funds, less the one (1) percent administrative expense
described herein.
2. Targeted Funds. Each Region shall reserve twenty-five (25) percent of the overall
funds, for targeted interventions in the specific Region as identified by opioid incidence
data. The Council must approve on an annual basis the uses for the targeted abatement
strategies and applications available to every Region, including education and outreach
programs. Each Region without approved uses for the targeted funds from the Council,
based upon a greater percentage of opioid incidents compared to its population, is
subject to transfer of all or a portion of the targeted funds for that Region for uses based
targeted funding needs as approved by the Council on an annual basis.
3. Annual Allocation. Statewide regional funds and targeted funds will be allocated on an
annual basis. If a Region lapses its funds, the funds will be reallocated based on all
R
E. Appeal Process
The Council will establish an appeal process to permit the applicants for funding (state or
subdivisions) to challenge decisions by the Council-designated point of contact on requests for
funds or expenditures.
1. To challenge a decision by the designated point of contact, the State or a subdivision
must file an appeal with the Council within thirty (30) days of the decision. The Council
then has thirty (30) days to consider and rule on the appeal.
2. If the Council denies the appeal, the party may file an appeal with the state district court
of record where the final opioid judgment or Master Settlement Agreement is filed. The
Texas Rules of Civil Procedure and Rules of Evidence will govern these proceedings.
The Council may request representation from the Attorney General in these proceedings.
6
In making its determination, the state district court shall apply the same clear error
standards contained herein that the Council must follow when rendering its decision.
3. The state district court will make the final decision and the decision is not appealable.
4. Challenges will be limited and subject to penalty if abused.
5. and costs are not recoverable in these appeals.
F. Education
The Council may determine that a percentage of the funds in the Abatement Fund from the targeted
funds be used to develop an education and outreach program to provide materials on the
consequences of opioid drug use, prevention and interventions. Any material developed will
include online resources and toolkits for communities.
Item/Subject: Consider Martin Luther King, Jr. Community Center construction project options.
Initiating Department/Presenter: City Manager
Presenter: Aron Kulhavy, City Manager
Recommended Motion: Staff is requesting direction from the Council and presenting several options
to move forward. As such, and appropriate motion is to select on the options and Move to direct the
City Manager to proceed with Option ___ as presented.
Strategic Initiative: Goal #1 - City Appearance - Provide policies, amenities, and events that enhance
the City’s already beautiful and historic natural environment.
Discussion: The Martin Luther King, Jr. Community Center serves as a longstanding facility where
numerous community members gather to celebrate various occasions. It is rented almost every
weekend for birthday parties, family reunions, quinceaneras, gender reveals and much more. It has
also been the home to Huntsville’s large MLK Day and Juneteenth Celebrations.
On December 1, 2020, Burditt Consultants presented their findings of the Feasibility Study for
renovations of the facility to City Council. During their presentation, they noted three (3) options for
improvement to the MLK, Jr. Community Center, citing Option A as the favorite amongst the Steering
Committee. Option A allowed for the existing building to be renovated and brought up to code, while
also adding square footage with the construction of a new facility adjacent to the existing structure.
The original budget for the Martin Luther King, Jr. Community Center was $2.23 million. On February
2, 2021, City Council approved a budget amendment after receiving the feasibility study cost estimate
bringing the total project budget for the MLK, Jr. Community Center to approximately $3.050 million
including FF&E. The construction budget is $2.627 million.
After approval to enter into an agreement with Burditt Consultants, LLC by City Council on March 16,
2021, City Staff have been working with the firm on the design for the renovation of the existing MLK,
Jr. Community Center as well as its new addition.
On November 3, 2021, staff met with the architectural firm to discuss the cost estimates for the
renovations and new construction to the Community Center. The estimates came in over budget due
to increases in materials and supply shortages. The current construction cost estimate for the base
project is $3.2 million, or about $600,000 more than the original estimate. This number is just a cost
estimate, and the actual bids for the project may come in lower or higher than the projection.
During a workshop on December 7, 2021, Burditt Consultants, LLC presented their design of the
renovated Martin Luther King, Jr. Community Center and its new addition to City Council. After their
presentation, City Council heard from staff regarding the cost estimate of the project and was presented
with options on how to proceed with construction. The options are outlined below.
12/21/21
Agenda Item: 2c
CITY COUNCIL AGENDA
Option 1: Proceed with construction by advertising for bids in January and find additional
funding where needed if costs are above the current budgeted amount. The recommended
funding source would be General Fund Unallocated Reserves. There is about $4 million in this
fund above the policy minimum. A budget amendment for the difference would be done after
bids were received on the project.
Option 2: Proceed with renovating the existing MLK, Jr. Community Center only and postpone
the construction of the additional structure until such time as funds are allocated in future
budgets.
Option 3A: Postpone construction of the entire project and apply for grant funding of the for
the totality of the project through the Texas Department of Housing and Community Affairs
with the Texas Community Resiliency Program. This grant opportunity centers around the new
construction or modification of a public facility which could be used to address a need for social
services, and/or non-congregate housing in the community to possibly assist the vulnerable
population from contracting or spreading COVID-19 or other communicable diseases. The
proposed project is eligible for up to $5million in funding under this program and staff would
submit application to cover the costs of the entire project. Should the City receive the grant
funds, the monies that the City has received in the debt issuance for this project could be used
for other improvements to the facility or additional improvements located within Emancipation
park.
The deadline for grant application is in January 2022 and notifications of award are expected in
April of the same year. Selecting this option would delay the timeline for the project about 4-6
months. Should the City not receive the grant funding, staff would then proceed with the
project as outlined in either option 1 or 2 above as directed by Council.
Option 3B: Proceed with the renovation and expansion of the existing MLK, Jr. Community
Center and apply for grant funding for just the additional building. This option would move
forward with a portion of the overall project but postpone the construction of the addition until
the grant as outlined in option 3A is awarded. If the City were not successful in the grant
application, staff would then proceed with option 1 or 2 as outlined above.
Although this option presents an opportunity to move forward with the project while
requesting grant funds for the remainder, it would increase the cost of the project in its entirety
since the construction would be done in different phases.
In discussions with the architect, because of the additional cost and potential logistical issues
with creating essentially two separate projects, they recommend that should the City choose
to apply for the grant funding that it be done for the entire project and not just the new
addition.
Upon selection of one of the options by the Council, staff will execute the next steps in the project as
outlined. Should option 1, 2 or 3A be selected, bids will be solicited in January and construction will
begin thereafter. Should option 3B be selected, bid solicitation and award will not begin until after the
announcement of grant awards in April.
Previous Council Action. On February 2, 2021, City Council approved the budget amendment for a total
construction budget of $2.627 Million for the Martin Luther King, Jr. Community Center.
On March 16, 2021, City Council approved the City Manager to enter into an agreement with Burditt
Consultants, LLC for design and construction support services of the Martin Luther King, Jr. Community
Center.
Financial Implications: ☒Item is budgeted: In the amount of $ 2.627 million (construction only)
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•
Item/Subject: Consider an additional funding request from the HEARTS museum for participation in
the replica Vietnam Veterans War Memorial project.
Initiating Department/Presenter: City Council
Presenter: Mayor Andy Brauninger
Recommended Motion: Move to authorize the City Manager to enter into an agreement with the
HEARTS museum for additional participation in the replica Vietnam Veterans War Memorial project in
the amount of $25,000.
Strategic Initiative: Goal #5 - Resource Development - Enhance the quality of life for citizens,
businesses and visitors by leveraging the human and fiscal resources available to the community.
Discussion: In September 2020, Former Mayor Pro Tem, Joe Rodriquez was approached by Ken Lee,
chairman of the board for the HEARTS museum, about assisting them in bringing a replica of the
Vietnam War Memorial to Huntsville. At such time, Mr. Lee indicated the museum would serve as the
wall’s permanent site and was requesting community help in securing the remaining $175,000 in
donations to bring the project to fruition. The attached article from the Huntsville Item discusses the
project in greater detail.
In October 2020, the HEARTS Veterans Museum requested City Council’s participation in the replica of
the Vietnam Veterans War Memorial in the amount of $25,000. City Council voted to approve funding
in the amount of $50,000 provided that the HEARTS Veterans Museum secured the remaining funds for
the project.
In June 2021, City staff received email confirmation from the HEARTS Veterans Museum that the wall
had been paid for and that they had received $59,000 in private donations and another $11,000 from
the state VFW. At this time a check was issued to the HEARTS Veterans Museum in the amount of
$50,000.
In September 2021, the HEARTS Veterans Museum applied for Hotel Occupancy Tax Reimbursement
Funds in the amount of $42,600. These funds were requested to pay for dirt ($6,600) and concrete
($36,000) needed for the Vietnam Veterans War Memorial project. City staff informed the HEARTS
Veterans Museum that any additional funds for the project would need to be requested through City
Council as they had previously approved funding in the amount of $50,000 for this project.
As the project is related to tourism activities, participation in the project is considered an appropriate
use for Hotel/Motel (HOT) funds. The HOT fund currently has a balance of $800,000 with no minimum
required under City policy. This balance represents close to 12 months of operating expenditures in
the fund. Should the Council wish to participate in the project, the recommended motion would allow
the City staff to prepare and execute an agreement to participate in the project provided the
organization secures the funding for its completion.
12/21/21
Agenda Item: 3a
CITY COUNCIL AGENDA
Representatives of the HEARTS museum will be present at the meeting to discuss the project and
answer any questions.
Previous Council Action: The Council approved funding in the amount of $50,000 on October 20, 2020.
Financial Implications: ☒Item is not budgeted: The HOT fund currently has a balance of $800,000.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•Huntsville Item article
•HOT Board application
10/13/2020 H.E.A.R.T.S. Veterans Museum begins fundraising for Vietnam Wall | Local News | itemonline.com
https://www.itemonline.com/news/local_news/h-e-a-r-t-s-veterans-museum-begins-fundraising-for-vietnam-wall/article_36561152-ce49-5c79-bf18-22b…1/4
https://www.itemonline.com/news/local_news/h-e-a-r-t-s-veterans-museum-begins-fundraising-for-vietnam-
wall/article_36561152-ce49-5c79-bf18-22b74c4db121.html
SPOTLIGHT FEATURED
H.E.A.R.T.S. Veterans Museum begins fundraising for Vietnam
Wall
Museum needs $175K to bring iconic wall to Huntsville
Michelle Wulfson | The Item
Sep 22, 2020
SubmittedThe H.E.A.R.T.S. Veterans Museum in Huntsville will be acquiring a permanent Vietnam Veterans Memorial Wall
to be displayed on the left side of the property. The museum is asking for donations to help cover the costs.
10/13/2020 H.E.A.R.T.S. Veterans Museum begins fundraising for Vietnam Wall | Local News | itemonline.com
https://www.itemonline.com/news/local_news/h-e-a-r-t-s-veterans-museum-begins-fundraising-for-vietnam-wall/article_36561152-ce49-5c79-bf18-22b…2/4
The H.E.A.R.T.S. Veterans Museum in Huntsville is asking for the community’s help in serving as a
permanent home to a Vietnam memorial wall, paying tribute to those that served in America’s “most
controversial war.”.
The Vietnam Wall was a traveling memorial that came to Huntsville around 11 years ago, drawing
visitors at all hours of the day and night. Now, the H.E.A.R.T.S. Veterans Museum is hoping to serve
as the wall’s permanent home, as it is being retired and offered to the museum at a price that they
“could not refuse.”
Having already covered the down payment, the museum is now asking for the community’s help to
raise the remaining $175,000 in donations to cover the cost of the wall and construction of the
platforms for the panels to attach to.
H.E.A.R.T.S. Veterans Museum executive director Tara Burnett and board president Kenneth Lee
predict that the wall will boost tourism for the city, bringing in veterans from across the state with
their families, increasing income for lodging, food and gas. As such, the museum will be applying for
a HOT Funds grant in addition to their fundraising efforts to cover the wall’s expenses.
“This would be something that people would drive to come see. Veterans that can’t make that trip to
Washington, this would be the next best thing for them,” Burnett said. It will also be the only
permanent Vietnam Wall in the state of Texas.
The wall is an 80% replica of the famous Vietnam Wall in Washington, D.C. and will span the entire
left side of the property as a backdrop to the Vietnam Veterans Memorial Walkway that traces the
path of 10 trees dedicated to the 10 Huntsville locals killed while serving in Vietnam.
Six information panels will stand apart from the wall depicting a history on the war along with
another panel to honor the donors that made the wall possible for the museum. It will also come with
a software teaching program that has a timeline of the war as well as bios for some of the 58,267
names on the wall.
“It means a lot to us that were over there because a lot of people resented the United States being
in Vietnam,” Lee said. “We have so many friends that were killed there, but because of some of the
ideas that were going on at the time, we weren’t really welcomed home like from the other wars.
This, to all of us, is a welcome home and recognition of what we did and what everybody did for
their country.”
10/13/2020 H.E.A.R.T.S. Veterans Museum begins fundraising for Vietnam Wall | Local News | itemonline.com
https://www.itemonline.com/news/local_news/h-e-a-r-t-s-veterans-museum-begins-fundraising-for-vietnam-wall/article_36561152-ce49-5c79-bf18-22b…3/4
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The museum hopes to have the project fully funded by March 2021 in time for Vietnam Veterans
Day on March 29.
“I can’t think of a better way to honor all of our Vietnam Veterans that are here with us and all of
those that have gone before, than to have a very touching, moving event out there at our newly
constructed wall for all of them,” Burnett said. “I think we owe them that.”
Donations for the H.E.A.R.T.S. Veterans Museum Vietnam Wall can be made in-person or by mail at
463 State Hwy 75 N in Huntsville, online at www.gofundme.com/f/bring-the-vietnam-wall-to-
huntsville-tx-for-good or by phone at (936)295-5959.
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HOT Fund Reimbursement Grant Application
Organization Name *
Address
Applicant Name
Phone Number*
Email*
Is Your Organization A Non-Profit?*
Purpose of Your Organization
Name of Your Event
Event Date From
Event Date To
Website of Event
Primary Location of Event
Expected Number of Attendees*
Organization Informaiton
HEARTS Veterans Museum of Texas
City
Huntsville
State / Province / Region
TX
Postal / Zip Code
77320
Country
US
Street Address
463 State Hwy 75 N
Address Line 2
Tara Burnett
936-295-5959
info@heartsmuseum.com
Yes No
To honor individuals who have served in our armed forces and to provide space for the
preservation of military memorabilia, artifacts, and the history of past wars. To provide
education and inspiration for children and adults concerning our patriotic heritage and the
sacrifices made to preserve our freedoms.
Event Information
Vietnam Wall
10/4/2021
1/1/2022
www.heartsmuseum.com
HEARTS Veterans Museum of Texas
1,000
Is This a First Time Event?*
Is This Event Open to the General Public?*
Will There be an Admission Charge?*
List Admission or Charges for This Event (I.E. Parking, Entry Fees, etc.)
Activity Cost
Please Describe the Goal and Purpose of Your Event.
Expected Local Attendance
Expected Out of Town Attendance
Approximate number of hotel rooms you expect to be reserved during this event?(?)
Do You Reserve a Room Block for This Event
Total Request*
Does the Proposed Event Plan to Become Self-Supporting in the Future *
Please Select One or More of the Following Use of Funds
Please download and fill out the budget form linked here, and attach it to the budget upload field.
4. Please describe how your event will directly enhance and promote the tourism, convention, and hotel
industry by attracting visitors from outside Huntsville and into the city or its vicinity
Yes No
Yes No
Yes No
$
The 80% replica of the Vietnam Wall is to honor those fallen heroes on the wall and their
sacrifice to our nation. The wall will bring visitors from all over the nation to honor and
remember. Several events will take place throughout the year at the wall to include
Memorial Day and Vietnam Veterans Day. This will greatly increase tourism and traffic into
Huntsville. The amount we are asking for includes the cost of the dirt ($6,600) and the
concrete($36,000). If we have any additional funds left over after construction it will be
used for advertising in Houston, Bryan/College Station, and other surrounding areas to
make them aware that the wall project is complete and for them to come see it and visit
Huntsville.
Visitor Impact
1000
Huntsville
50
Yes No
Funding Request
42,600.00$
Yes No
Visitor information/convention center Convention registration
Advertising Promotion of the arts
Historical restoration or museums Promotion of sporting event
Signage directing tourists Other
5. Please describe your advertising efforts that exist outside a 50 mile radius of Huntsville and Walker
County
Budget *(?)
Supporting Documents *(?)
Application is Valid?*
Application Number
Signature
Name Date
This Vietnam Wall display will bring tourists in from all over. Our Vietnam Veterans are aging to a point that
travel to Washington DC is getting more difficult for them. Bringing this Wall to the southern region of the
United Stated gives them a much closer option. Many of our visitors that come thru the museum come from
other states and countries to see us. We have also partnered with Harvest Hosts and have been placed in
their publications as a "must see" museum. Of course we hope those that travel will listen to us when we tell
them about all of our other wonderful museums, restaurants, shops, and things to do and that they will then
stay in Huntsville for the night and see all of the other sites the following day. Several of our events take place
in the evenings and they will drive in for them and then stay in a hotel for the night because they do not like to
drive at night. We have gotten support for the wall from not only local donors but donors from all over the state
and even the national VFW has donated as well as Vietnam veterans of America. this will be a very beneficial
thing for Huntsville.
Right now we have a brand new double sided sign down by the I-45 corridor that catches the 1000's of drivers
daily. We advertise with the Huntsville Item and Walker County Press that not only have a hard copy
newspaper, but a digital paper as well that reaches far beyond Huntsville. We also have advertising on KSAM
and KSTAR that goes far beyond Huntsville. We also use social media sites to promote and advertise events
and new displays.
HOT funds budget worksheet 2021.docx 19KB
Proposal for Vietnam Wall 2021.docx 12.77KB
For Internal Use Only
Yes
No
2022-010
Tracy Rikard 10/11/2021