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City Council Meeting Agenda Packet 6-21-20221 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 Daiquiri Beebe, Ward 1 Russell Humphrey, Ward 2 Deloris Massey, Ward 3 Jon Strong, Ward 4 HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, JUNE 21, 2022 WORKSHOP 5:00 P.M. – Large Conference Room 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. WORKSHOP (5:00 p.m.) a. Receive presentation on public safety staffing levels for the City of Huntsville Police and Fire Departments. DISCUSSION 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. PROCLAMATION a. Lee Baron 30th Anniversary PRESENTATIONS PUBLIC HEARING 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 approving the Minutes from June 7, 2022, Regular City Council Meeting. Kristy Doll, City Secretary 2. STATUTORY AGENDA a. First Reading - Consider authorizing the City Manager to enter into a Development Agreement with Texas Grand Ranch, LLC, for the development of approximately 1,186 acres of land to be known as Texas Grand Ranch III. Page 1 of 49 2 Kevin Byal, Director of Development Services b. Consider the appointment of the firm Pattillo, Brown & Hill, LLP as independent auditors for the City of Huntsville for fiscal years 2022 through 2026. Steve Ritter, Finance Director 3. CITY COUNCIL/MAYOR/CITY MANAGER 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.) 5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA 6. ITEMS OF COMMUNITY INTEREST 7. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.074 – Personnel Matters: regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: City Manager Aron Kulhavy. 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 – 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 regarding economic 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 the Texas 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. DATE OF POSTING: 06/17/2022 Kristy Doll TIME OF POSTING: 9:00 a.m.Kristy Doll, City Secretary TAKEN DOWN: Page 2 of 49 3 Page 3 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: a. Agenda Item: Receive presentation on public safety staffing levels for the City of Huntsville Police and Fire Departments. Initiating Department/Presenter: City Manager Presenter: Recommended Motion: No motion necessary-workshop Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: Page 4 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: a. Agenda Item: Lee Baron 30th Anniversary Initiating Department/Presenter: City Secretary Presenter: Recommended Motion: None Strategic Initiative: Discussion: Lee Baron Fashions 30th Anniversary, June 1, 2022 Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: 1.Proclamation No. 2022-16 Lee Baron Page 5 of 49 Page 6 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: 1.a. Agenda Item: Consider approving the Minutes from June 7, 2022, Regular City Council Meeting. Initiating Department/Presenter: City Secretary Presenter: Kristy Doll, City Secretary Recommended Motion: Move to approve the Minutes of the Regular City Council meeting held on May 17, 2022. Strategic Initiative: Discussion: None Previous Council Action: Not applicable Financial Implications: None Approvals: Kristy Doll Associated Information: 1.June 7, 2022 City Council Meeting Minutes Page 7 of 49 1 MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 7th DAY OF JUNE 2022, IN THE CITY HALL, LOCATED AT 1212 AVENUE M, IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS, AT 6:00 P.M. The Council met in a workshop and regular session with the following: COUNCILMEMBERS PRESENT: Mayor Brauninger, Mayor Pro Tem Humphrey, Councilmember Ward 1 Beebe, Councilmember At-Large Position 3 McKenzie, Councilmember At-Large Position 2 Mullins, Councilmember Ward 3 Massey, Councilmember Ward 4 Strong, Councilmember At-Large Position 4 Graham, Councilmember At-Large Position 1 Lyle COUNCILMEMBERS ABSENT: None OFFICERS PRESENT: Aron Kulhavy, City Manager; Kristy Doll, City Secretary; Leonard Schneider, City Attorney WORKSHOP (4:30 p.m.) DISCUSSION a. MLK Community Center Discussion Aron Kulhavy, City Manager b. 5:30p.m. - Reception for Class of 2022 Scholarship Recipients Employee Scholarship Committee MAIN SESSION (6:00 p.m.) CALL TO ORDER (6:00 p.m.) Mayor Brauninger called the meeting to order at 6:00 p.m. 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. Mayor Brauninger gave the invocation, and the scholarship recipients led the pledges PRESENTATIONS a. Presentation to the Class of 2022 Scholarship Recipients PUBLIC HEARING 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 approving the Minutes from May 17, 2022, Regular City Council Meeting. Kristy Doll, City Secretary Page 8 of 49 2 b. Consider authorizing the City Manager to award the purchase of Hauling Services for Recyclable Materials to Stella Environmental Services, LLC. Brent Sherrod, Public Works Director c. Consider authorizing the City Manager to enter into an agreement with Raftelis Financial Consultants, Inc. for Water and Wastewater rate study services. Steve Ritter, Finance Director d. Consider adoption of Ordinance 2022-19 to amend the budget for FY 21-22 and/or CIP Project budgets. Steve Ritter, Finance Director Councilmember Daiquiri Beebe made a motion to approve the consent agenda items a, b, c, and d. The motion was seconded by Councilmember Pat Graham. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham Bert Lyle; No - None 2. STATUTORY AGENDA a. FIRST READING: Consider authorizing the City Manager to award and enter into a contract with Care Corporation for the Animal Control Facility Maintenance and Operations. First Reading - No action necessary b. SECOND READING: Consider Ordinance No. 2022-18 for the proposed annexation of approximately 263 acres located south of the current City limits, south of Veterans Memorial Blvd and east of Montgomery Rd. Councilmember Daiquiri Beebe made a motion to Move to approve Ordinance No. 2022-18 for the proposed annexation of approximately 263 acres located south of the current City limits, south of Veterans Memorial Blvd and east of Montgomery Rd. The motion was seconded by Councilmember Deandra (Dee) Mullins. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No - None. c. Consider authorizing the City Manager to enter into a contract with DTA, a public finance consulting firm, to provide Public Improvement District (PID) administration services to manage the public improvement districts created in the City of Huntsville. Councilmember Daiquiri Beebe made a motion to Move to authorize the City Manager to enter into a contract with DTA, a public finance consulting firm, to provide Public Improvement District (PID) administration services to manage the public improvement districts created in the City of Huntsville. The motion was seconded by Councilmember Bert Lyle. Motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No - None. Page 9 of 49 3 3. CITY COUNCIL/MAYOR/CITY MANAGER a. Consider the appointments to City of Huntsville Boards, Commissions, and Committees for expired terms or vacant board positions. Mayor Brauninger moved to nominate to appoint the Board and Commission members as presented. Motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle, No – None b. Consider adoption of Resolution No. 2022-20 concerning the demolition of the Texas Department of Criminal Justice warehouse, home to the Mexican Free-Tailed bat colony. Councilmember Daiquiri Beebe made a motion to Move to adopt Resolution 2022-20 concerning the demolition of the Texas Department of Criminal Justice warehouse, home to the Mexican Free-Tailed bat colony. The motion was seconded by Councilmember Bert Lyle. Roll Call: Yes - Daiquiri Beebe, Vicki McKenzie. Bert Lyle No - Andy Brauninger, Russell Humphrey, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham. The motion fails 6-3 Public comments regarding bats were heard from: Carolina Crimm, Robyn Logan, and Rob Hipp BOARDS/COMMISIONS/ COMMITTEES SEAT BOARD MEMBER TERM EXPIRES Airport Advisory Board #8 Appoint - Bill Daugette #9 Appoint - Christopher Russo Library Board 3-year terms #2 Appoint - Amanda Smithson 8/31/2023 #3 Appoint - Dianne Myers 8/31/2023 Veterans Affairs Advisory Board 3-year terms #2 Appoint - Jack Duirsh 8/31/2023 #9 Appoint - Dorothy Fulton 8/31/2024 #15 Appoint - Robert H. Kane 8/31/2024 Chairman Shane Loosier Vice-Chairman Jack Durish Secretary Liesa Hackett Page 10 of 49 4 c. Consider membership in the Transportation Excellence for the 21st Century (TEX-21) organization. Mayor Andy Brauninger made a motion to authorize the City Manager to apply for membership in the Transportation Excellence for the 21st Century (TEX-21) organization. The motion was seconded by Councilmember Deandra (Dee) Mullins. The motion passed 6 - 3. Yes - Andy Brauninger, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No - Russell Humphrey, Daiquiri Beebe, Vicki McKenzie d. Consider action to direct the City Manager on how to proceed on the MLK Community Center Project. Councilmember Daiquiri Beebe made a motion to direct the City Manager to negotiate with the selected contractor and prepare an agenda item to award the construction bid for Phase 1 of the MLK Community Center project to include the remodel and expansion of the existing facility. The motion was seconded by Councilmember Jon Strong. Councilmember Bert Lyle made a motion to amend the main motion with a 3.2 million cap. The motion was seconded by Councilmember Vicki McKenzie. The motion passed 8 – 1. Yes: Andy Brauninger, Russell Humphrey, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle, No - Daiquiri Beebe Councilmember Daiquiri Beebe made a motion to direct the City Manager to negotiate with the selected contractor and prepare an agenda item to award the construction bid with a cap of 3.2 million for Phase 1 of the MLK Community Center project to include the remodel and expansion of the existing facility. The motion was seconded by Councilmember Jon Strong. The amended motion passed 9 – 0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle, No - None 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 Media inquiry was received from Joshua Lewright with the Huntsville Item. 6. ITEMS OF COMMUNITY INTEREST Mayor and Council announced items of community interest. Page 11 of 49 5 7. EXECUTIVE SESSION a. 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. Leonard Schneider, City Attorney Council convened into Executive Session at 7:06 p.m. 8. RECONVENE Take action on item discussed in executive session if needed. Reconvened from Executive Session into Open Session at 7:24 p.m. ADJOURNMENT Mayor Brauninger adjourned the meeting without objection at 7:24 p.m. ATTEST: CITY OF HUNTSVILLE ____________________________ ________________________________ Kristy Doll, City Secretary Andy Brauninger, Mayor Page 12 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: 2.a. Agenda Item: First Reading - Consider authorizing the City Manager to enter into a Development Agreement with Texas Grand Ranch, LLC, for the development of approximately 1,186 acres of land to be known as Texas Grand Ranch III. Initiating Department/Presenter: Development Services Presenter: Kevin Byal, Director of Development Services Recommended Motion: Recommended Motion: First Reading. Should the Council wish to waive the second reading, the appropriate motion would be: Move to authorize the City Manager to enter into a Development Agreement with Texas Grand Ranch, LLC, for the development of approximately 1,186 acres of land to be known as Texas Grand Ranch III. 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: Texas Grand Ranch is a low density, master planned, residential development located south of the city limits in the city’s extra territorial jurisdiction (ETJ). The existing development is comprised of approximately 4,528 acres and contains 1,903 platted lots of 2 to 5 acres each. This agreement applies to the next phase of the development, to be known as Texas Grand Ranch III or TGR III. The additional land area covers approximately 1,186 acres, of which 1,057 acres will be developed as a single-family residential subdivision with detention areas and parks maintained exclusively by the future TGR III property owners’ association. The remaining +/- 129 acres will be developed at a later date, with approximately 80 acres of future mixed use/commercial, 17 acres for a school site and 30 acres for a private athletic complex. These items are not covered in this agreement. The agreement provides for non-annexation of the single family residential portion of TGR III for 20 years, but does ensure their cooperation in the annexation of the mixed use/commercial development if the City chooses to do so. In addition, the agreement includes that the developer pay the City the standard development fees, less a $100,000 carryover from the TGR II development. TGRII paid this amount to the City for removing several lots from the City's water provision district; however, the City instead serves the lots in question, thereby negating the reason for the payment to the City. Texas Grand Ranch LLC will be responsible for complying with the City’s development codes and standards as modified by this agreement, as well as construction of certain utility facilities to serve TGR III, which the owner has agreed to construct. The modifications to the Development Code in this agreement are the same as those approved for the development of TGR II and include modifications to lot and block geometry, street lights only at intersections, nature trail easements in lieu of sidewalks, reduction in pavement width by 2', on-site septic systems, overhead or underground utilities, and modified fire hydrant spaciing. These modifications are detailed in Exhibit D of the agreement. This Page 13 of 49 agreement provides assurances of a high-quality development that will benefit the present and future residents of the City and the City’s extraterritorial jurisdiction. For the past several months, staff has been negotiating this agreement with the developer and have reached a mutual agreement concerning the content. The purpose of this agenda item is to authorize the City Manager to enter into a Development Agreement with Texas Grand Ranch, LLC, for the development of approximately 1,186 acres of land to be known as Texas Grand Ranch III, a single-family master planned community. Previous Council Action: April 25, 2017, the Council authorized the City Manager to sign a Development Agreement with 1 Texas Grand Ranch LLC. December 19, 2017, the Council authorized the City Manager to sign an amendment to the Development Agreement with 1 Texas Grand Ranch LLC. November 20, 2018, Council authorized the City Manager to sign Amendment No. 2 to the Development Agreement between the City of Huntsville and 1 Texas Grand Ranch LLC. Financial Implications: There is no financial impact associated with this item. Approvals: Kevin Byal Leonard Schneider Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1.Development agreement (Final) Page 14 of 49 DEVELOPMENT AGREEMENT FOR TEXAS GRAND RANCH III STATE OF TEXAS § COUNTY OF WALKER § This Development Agreement (this “Agreement”) dated ____________ (the “Effective Date”) is between the City of Huntsville, Texas, a Texas home rule city (the “City”), and I Texas Grand Ranch, LLC, a Texas limited liability company (“Owner”). In this Agreement, the City and Owner and Owner’s successors and assigns are sometimes individually referred to as a “Party” and collectively referred to as the “Parties”. R E C I T A L S: Owner owns approximately 1,186 acres of land in Section III of the development commonly known as Texas Grand Ranch II (the “Land”). Of the 1,186 acres, there are 1,186 acres located wholly within the extraterritorial jurisdiction (“ETJ”) of the City. The Land is more fully described on the attached Exhibit A. In this Agreement, the Land, as it will be developed, is sometimes referred to as Texas Grand Ranch III or “TGR III.” Owner and the City intend that approximately 1057 acres of the 1186 acres of Land to be developed as a single family residential project with detention areas and parks maintained exclusively by the future TGR III property owners’ association which will benefit and serve the residents of TGR III pursuant to the TRG III covenants, conditions and restrictions and the development regulations contained in this Agreement. There is approximately 128 acres of land to be developed at a later date subject to the rules in effect at the time of application, with approximately 80.4 acres of future mixed use/commercial, 17.6 acres for a school site and 30.49 acres of a private athletic complex, not covered in this agreement. The City has chosen not to participate in the construction of certain utility facilities to serve TGR III with City Services as more particularly described on Exhibit B attached hereto (the “City Infrastructure Facilities”), which the Owner has agreed to construct. Owner and the City wish to enter into this Agreement to provide for (i) the construction of the City Infrastructure Facilities, (ii) the orderly annexation of TGRIII, (iii) an alternative to the City’s typical regulatory process for development, (iv) certainty of regulatory requirements throughout the term of this Agreement, Page 15 of 49 and (v) assurances of a high-quality development that will benefit the present and future residents of the City, the City’s extraterritorial jurisdiction, and the County of Walker. Therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, including the agreements set forth below, the City and Owner agree as follows: ARTICLE I DEFINITIONS “Agreement” means this Development Agreement between the City and Owner. “Applicable Rules” means the City Rules in effect as of the Vesting Date, which will be applicable to the development, use, and operation of the Land. “City” means the City of Huntsville, Texas, a Texas home rule city. “City Manager” means the city manager of the City. “City Council” means the city council of the City. “City Engineer” means the engineer for the City. “City Rules” means the City’s ordinances, regulations, and official policies. “Conceptual Plan” means the conceptual plan of TGR III attached as Exhibit C, as it may be amended from time to time in accordance with this Agreement. “County” means Walker County, Texas. “Owner” means I Texas Grand Ranch LLC, its successors and assigns. “Effective Date” means the date on which the City Council first authorizes the City Manager to sign this Agreement. “Initial Term” means the term of this Agreement, commencing on the Effective Date and continuing for 20 years thereafter. “Land” means approximately 1,186 acres of land in Walker County, more fully described on the attached Exhibit A. “Lender” has the meaning set forth in Section 5.5. Page 16 of 49 “Master Plan” means the Comprehensive Plan of the City initially adopted on April 10, 2007, as amended and updated by the City on September 7, 2021. “Planning Commission” means the planning and zoning commission of the City. “TGR III” means the Land, as it will be developed in several sections or phases under this Agreement. “TGR III Approvals” means the approvals, variances, waivers, and exceptions to the Applicable Rules approved by the City with respect to the development of the Land, as set forth on the attached Exhibit D. “TCEQ” means the Texas Commission on Environmental Quality, or its successor entity. “Term” means the Initial Term of this Agreement as provided in Section 4.1 below. “Vesting Date” means the Effective Date of this Agreement. ARTICLE II PUBLIC BENEFITS AND CITY INFRASTRUCTURE FACILITIES Orderly Growth. The City desires that development within its extraterritorial jurisdiction occur in an orderly manner in order to protect the health, safety, and welfare of its present and future citizens, protect property values, and provide for the growth of the City’s tax base. This Agreement will benefit the City by facilitating the development of a master-planned project within an appropriate area of the City’s extraterritorial jurisdiction, which will allow for thoughtful and high-quality planning, the development of necessary roadways, drainage and utility facilities, the provision of required fire protection services, and the development of a residential project. Economic Growth. The development of TGR III will benefit the City by providing housing for new employers, expanded job markets, and future commercial areas for the residents of the City and its extraterritorial jurisdiction, furthering the development of an expanded tax base and making increased services and housing options available to residents of the City and its extraterritorial jurisdiction. City Infrastructure Facilities. City infrastructure within TGR III will be provided solely at the expense of Owner and in accordance with the approved Agreement to Construct Public Improvements. All off-site utilities to provide City Page 17 of 49 services to the subdivision will be provided solely at the expense of Owner. The City of Huntsville acknowledges that there is service capacity available for the development and the City agrees that the developer may tie utilities in to the existing infrastructure of the City in accordance with City rules and regulations. ARTICLE III PROPERTY DEVELOPMENT 3.1 Governing Regulations. Except as otherwise provided in this Agreement, the Applicable Rules during the term of this Agreement will be those City Rules in force and as interpreted by the City by policy or practice on the Vesting Date. No City Rules adopted after the Vesting Date, whether by means of an ordinance, initiative, referendum, resolution, policy, order, or otherwise, are or will be applicable to TGR III, unless otherwise provided in this Agreement or by applicable state law, or the application is agreed to, in writing, by Owner and the City. For the Term of this Agreement, the development and use of the Land will be controlled by the terms of this Agreement, the TGR III Approvals, and the Applicable Rules. If there is any conflict between the Applicable Rules and the terms of this Agreement, the terms of this Agreement will control. 3.2 TGRIII Approvals and Entitlements. (a) TGR III Approvals. The City confirms that the TGR III Approvals set forth in Exhibit D have been approved by the City Council and are granted by the City with respect to the development of the Land. (b) Conceptual Plan. The City approves the Conceptual Plan attached as Exhibit C and confirms that it complies with the City’s Master Plan. The City agrees that TGR III may be developed and used for single family residential purposes, save and except the reserve tracts of approximately 128 acres of land to be developed at a later date subject to the rules in effect at the time of application, with approximately 80 acres of commercial, 17 acres for a school site and 31 acres of a private athletic complex/commercial, not covered in this agreement and may not be developed or use for any other purpose unless agreed to by the City. (c) Development Restrictions. The following restrictions shall apply to the residential portions of TGR III and not to any reserves as shown on the approved conceptual plan. 1. No manufactured or mobile homes shall be allowed on the property. Page 18 of 49 2. Each residential structure must contain a minimum of 2000 square feet. 3. All lots must be developed in accordance with the Neighborhood Conservation Development District of the City as it exists on the date of this Agreement. 4. Subject to the TGR III covenants, conditions and restrictions, each single family residential property may have a guest house, horse barn, and other appurtenant rural structures. 3.3 Standards and Timing of Review; Appeal. The City acknowledges that efficient City reviews are necessary for the effective implementation of Owner’s development program. Therefore, the City agrees that it will comply with all statutory and internal City time frames for development reviews. 3.4 Amendments. Due to the fact that TGR III comprises a significant land area, its development may occur in phases over a number of years. Modifications to the Conceptual Plan may become desirable due to changes in market conditions or other factors and are subject to approval under the terms of Section 4.1(d). 3.5 Development Fees and Charges. The Parties agree that only the standard City fees charged to all other development projects in the City will be charged to development of TGR III in the City and the City’s ETJ. Per Section 3.5 of the Development Agreement dated April 26, 2017 ,the parties agree the Developer has an unused $100,000 carryover from the TRG II Development Agreement that can be applied to the TGR III development fees. 3.6 Term of Approvals. The Conceptual Plan, the TGR III Approvals, any preliminary subdivision plat or final subdivision plat approved pursuant to this Agreement, and any site development permit approved pursuant to this Agreement will be effective for the term of this Agreement. 3.7 Covenant not to annex. In consideration of Owner’s agreements set out herein, City agrees that it will not annex all or any portion of the Residential Lands during the initial Term unless the Owner or landowner submit a voluntary petition for annexation. The Developer agrees to cooperate with the City for the annexation of the mixed use/commercial areas should the City request it. After the end of the Term, the City may (but is not obligated to) annex all or any portion of the Residential Lands in the City’s sole discretion, in accordance with applicable laws, regulations and ordinances. 3.8 Applicable residential ETJ rates. City agree that at all times during the Term, the rates and charges for utility service consumed by owners and builders of Page 19 of 49 residential homes within TGR III shall be the same rates and charges applied to other residential consumers served in the ETJ by the City of Huntsville. ARTICLE IV TERM, AUTHORITY, AND VESTING OF RIGHTS 4.1 Term. (a) Initial Term. The Initial Term of this Agreement will commence on the Effective Date and continue for 20 years thereafter, unless sooner terminated under this Agreement. (b) Extensions. After the Initial Term, the Agreement may be extended for up to two successive 15-year periods upon mutual written agreement by both parties. (c) Expiration. After the Initial Term and any extension, this Agreement will be of no further force and effect. (d) Termination or Amendment. This Agreement may be terminated or amended as to all of the Land at any time by mutual written consent of the City and Owner or may be terminated or amended only as to a portion of the Land by the mutual written consent of the City, Owner (as long as Owner remains as an owner of any portion of the land) and the owners of only the portion of the Land affected by the amendment or termination. 4.2 Authority. This Agreement is entered into, in part, under the statutory authority of Section 212.172 of the Local Government Code. The parties intend that this Agreement provide for the annexation of the Land into the City; authorize certain land uses and development on the Land (both before and after annexation of the Land); provide exceptions to certain ordinances; and provide other terms and consideration, including the continuation of land uses and zoning upon annexation of the Land into the City. 4.3 Vesting of Rights. This Agreement shall constitute the first application in a series of applications for the purpose of vesting as contemplated in Chapter 245 of the Texas Local Government Code. The City agrees that, in accordance with Chapter 245, Local Government Code, the City will consider the approval of any further approvals necessary for TGR III based solely on the Applicable Rules, as modified by the TGRIII approvals and this Agreement. Further, the City agrees that, upon approval of this Agreement, Owner has vested authority to develop the Land in accordance with the Applicable Rules, as modified by any exceptions contained Page 20 of 49 in the TGR III Approvals and this Agreement. The Parties agree that 245.004 exemptions apply. 4.4 Equivalent Substitute Obligation. If either Party is unable to meet an obligation under this Agreement due to a court order invalidating all or a portion of this Agreement, preemptive state or federal law, an imminent and bona fide threat to public safety that prevents performance or requires different performance, changed circumstances or subsequent conditions that would legally excuse performance under this Agreement, or any other reason beyond the Party’s reasonable and practical control, the Parties will cooperate to revise this Agreement to provide for an equivalent substitute right or obligation as similar in terms to the illegal, invalid, or unenforceable provision as is possible and is legal, valid, and enforceable, or other additional or modified rights or obligations that will most nearly preserve each Party’s overall contractual benefit under this Agreement. The City agrees to adopt any subsequent ordinances, variances, or other approvals that may be necessary to implement this Section. 4.5 Cooperation. (a) The City and Owner each agree to execute such further documents or instruments as may be necessary to evidence their agreements hereunder. (b) The City has a CCN serving a portion of TGR III. The City and Owner agree to cooperate on any CCN amendments or filings to PUC or other regulatory authority to allow the City to provide water to all of TGR III, including the residential and mixed/ commercial use. 4.6 Litigation. In the event of any third-party lawsuit or other claim relating to the validity of this Agreement, Owner and the City agree to cooperate in the defense of such suit or claim, and to use their respective best efforts to resolve the suit or claim without diminution of their respective rights and obligations under this Agreement. The filing of any third-party lawsuit relating to this Agreement or the development of TGR III will not delay, stop, or otherwise affect the development of TGR III or the City’s processing or issuance of any approvals for TGR III, unless otherwise required by a court of competent jurisdiction. 4.7 Future Annexation. Owner and all subsequent owners of property within TGR III understand that their property may be subject to annexation by City upon the terms and conditions set forth in this Agreement. ARTICLE V GENERAL PROVISIONS Page 21 of 49 5.1 Assignment; Binding Effect. (a) This Agreement, and the rights and obligations of Owner hereunder, shall be assigned by Owner to a subsequent purchaser or purchasers of all of the undeveloped property within TGR III provided that the assignee assumes all of the obligations that are assigned. Any assignment must be in writing, specifically describe the property in question, set forth the assigned rights and obligations, and be executed by the proposed assignee. A copy of the assignment document must be delivered to the City. Upon any such assignment, Owner will be released of any further obligations under this Agreement as to the property sold and obligations assigned and such assignee will be subject to all obligations under this Agreement and will be entitled to all of the rights and benefits of this Agreement with regard to such property acquired. (b) The provisions of this Agreement will be binding upon, and inure to the benefit of the parties, and their respective successors and assigns. This Agreement will not, however, be binding upon, or create any encumbrance to title as to, any ultimate consumer who purchases a fully developed and improved lot within TGR III, except for land use and development regulations that may apply to that lot under the terms of this Agreement. 5.2 Severability. If any provision of this Agreement is illegal, invalid, or unenforceable, under present or future laws, it is the intention of the parties that the remainder of this Agreement not be affected, and, in lieu of each illegal, invalid, or unenforceable provision, that a provision be added to this Agreement which is legal, valid, and enforceable and is as similar in terms to the illegal, invalid, or enforceable provision as is possible. 5.3 Applicable Law and Venue. The interpretation, performance, enforcement, and validity of this Agreement is governed by the laws of the State of Texas. Venue will be in a court of appropriate jurisdiction in Walker County, Texas. 5.4 No Third-Party Beneficiary. This Agreement is not intended, nor will it be construed, to create any third-party beneficiary rights in any person or entity who is not a Party, unless expressly otherwise provided. 5.5 Mortgagee Protection. This Agreement will not affect the right of Owner to encumber all or any portion of the Land by one or more mortgages, deeds of trust or other instruments to secure financing for all or portions of TGR III. The City understands that each lender providing financing for TGR III (a “Lender”) may require interpretations of or modifications to this Agreement and agrees to cooperate with Owner and its Lender’s representatives in connection with any requests for interpretations or modifications. The City agrees not to withhold or Page 22 of 49 delay unreasonably its approval of any requested interpretation or modification if the interpretation or modification if consistent with the intent and purposes of this Agreement. The City agrees as follows: (a) Neither entering into this Agreement, nor any breach of this Agreement, will affect any lien upon all or any portion of the Land, except as to any infrastructure and easements dedicated to the City. (b) The City will, upon written request of a Lender given in compliance with this Agreement, provide the Lender with a copy of any written notice of default given to Owner under this Agreement within ten days of the date such notice is given to Owner. (c) In the event of default by Owner under this Agreement, a Lender may, but will not be obligated to, cure any default during any cure period extended to Owner, either under this Agreement or under the notice of default. (d) Any Lender who comes into possession of any portion of the Land by foreclosure or deed in lieu of foreclosure will take such property subject to the terms of this Agreement. No Lender will be liable for any defaults or monetary obligations of Owner arising prior to the Lender’s acquisition of title, but a Lender will not be entitled to obtain any permits or approvals with respect to that property until all delinquent fees and other obligations of Owner under this Agreement that relate to the property in question have been paid or performed. 5.6 Certificate of Compliance. Within 25 days of written request by either Party given accordance with this Agreement, the other Party will execute and deliver to the requesting Party a statement certifying that: (a) this Agreement is unmodified and in full force and effect or, if there have been modifications, that this Agreement is in full force and effect as modified and stating the date and nature of each modification; (b) there are no current uncured defaults under this Agreement, or specifying the date and nature of each default; and (c) any other information that may be reasonably requested. A Party’s failure to deliver a requested certification within this 25-day period will conclusively be deemed to constitute a confirmation that this Agreement is in full force without modification, and that there are no uncured defaults on the part of the requesting Party. The City Manager will be authorized to execute any requested certificate on behalf of the City. 5.7 Default. If either Party defaults in its obligations under this Agreement, the other Party must, prior to exercising a remedy available to that Party due to the default, give written notice to the defaulting Party, specifying the nature of the alleged default and the manner in which it can be satisfactorily cured, Page 23 of 49 and extend to the defaulting Party at least 30 days from receipt of the notice to cure the default. If the nature of the default is such that it cannot reasonably be cured within the 30-day period, the commencement of the cure within the 30-day period and the diligent prosecution of the cure to completion will be deemed a cure within the cure period. 5.8 Remedies for Default. If either Party defaults under this Agreement and fails to cure the default within the applicable cure period, the non-defaulting Party will have all rights and remedies available under this Agreement or applicable law, including the right to institute legal action to cure any default, to enjoin any threatened or attempted violation of this Agreement or to enforce the defaulting Party’s obligations under this Agreement by specific performance or writ of mandamus, or to terminate this Agreement. All remedies available to a Party will be cumulative and the pursuit of one remedy will not constitute an election of remedies or a waiver of the right to pursue any other available remedy. 5.9 Reservation of Rights. To the extent not inconsistent with this Agreement, each Party reserves all rights, privileges, and immunities under applicable laws. 5.10 Attorneys’ Fees. If either Party commences an action against the other to enforce any of the terms of this Agreement or because of the breach by either Party of any of the terms of this Agreement, the losing or defaulting Party shall pay to the prevailing Party the costs and expenses incurred in connection with the prosecution or defense of such action, including, without limitation, consultants’, experts’, and accountants’ fees and reasonable attorneys’ fees, or as otherwise determined by any serving arbitrator(s), judge or jury. The term “prevailing Party” means the Party that establishes a breach of this Agreement by the other Party or otherwise establishes liability of the other Party for wrongful conduct, regardless of whether actual damages are awarded. In the case where both Parties prevail on different claims, the prevailing Party shall be the Party that is awarded the greater amount of damages. 5.11 Notwithstanding any other provisions of this Agreement to the contrary, in no event shall Owner or City be liable to each other for any indirect, special, incidental or consequential loss or damage including, but not limited to, loss of profits or revenue, loss of opportunity or use incurred by either Party to the other, or like items of loss or damage; and each Party hereby releases the other Party therefrom. 5.12 Waiver. Any failure by a Party to insist upon strict performance by the other Party of any provision of this Agreement will not, regardless of the length of time during which that failure continues, be deemed a waiver of that Party’s right Page 24 of 49 to insist upon strict compliance with all terms of this Agreement. In order to be effective as to a Party, any waiver of default under this Agreement must be in writing, and a written waiver will only be effective as to the specific default and as to the specific period of time set forth in the written waiver. A written waiver will not constitute a waiver of any subsequent default, or of the right to require performance of the same or any other provision of this Agreement in the future. 5.13 Entire Agreement. This Agreement contains the entire agreement of the Parties, and there are no other agreements or promises, oral or written, between the parties regarding the subject matter of this Agreement. This Agreement may be amended only by written agreement signed by the Parties. 5.14 Exhibits, Headings, Construction, and Counterparts. All exhibits attached to this Agreement are incorporated into and made a part of this Agreement for all purposes. The paragraph headings contained in this Agreement are for convenience only and do not enlarge or limit the scope or meaning of the paragraphs. Wherever appropriate, words of the masculine gender may include the feminine or neuter, and the singular may include the plural, and vice-versa. Each of the Parties has been actively and equally involved in the negotiation of this Agreement. Accordingly, the rule of construction that any ambiguities are to be resolved against the drafting Party will not be employed in interpreting this Agreement or its exhibits. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which will together constitute the same instrument. This Agreement will become effective only when one or more counterparts, individually or taken together, bear the signatures of all of the Parties. 5.15 Time. Time is of the essence of this Agreement. In computing the number of days for purposes of this Agreement, all days will be counted, including Saturdays, Sundays, and legal holidays; however, if the final day of any time period falls on a Saturday, Sunday, or legal holiday, then the final day will be deemed to be the next day that is not a Saturday, Sunday, or legal holiday. 5.16 Authority for Execution. The City certifies, represents, and warrants that the execution of this Agreement has been duly authorized and that this Agreement has been approved in conformity with City ordinances and other applicable legal requirements. Owner certifies, represents, and warrants that the execution of this Agreement is duly authorized in conformity with its partnership agreement. 5.17 Notices. Any notices under this Agreement may be sent by hand delivery, facsimile (with confirmation of delivery), or certified mail, return receipt Page 25 of 49 requested, to the parties at the following addresses or as such addresses may be changed from time to time by written notice to the other parties: City: City of Huntsville Attn: City Manager 1212 Avenue M Huntsville, Texas 77340 Email:citymanager@huntsvilletx.gov Copy to: Leonard Schneider Liles Parker PLLC 2261 Northpark Drive, Suite 445 Kingwood, Texas 77339 Facsimile: (713) 456-2079 Email:lschneider@lilesparker.com Owner: I Texas Grand Ranch, LLC 1015 A SH 150 West New Waverly, Texas 77358 936-235-2038 Copy to: Renee Howes, Authorized Agent P O Box 261 Skull Valley, Arizona 86338 928-713-1841 Email: rhowesconsulting@gmail.com Copy to: Larry Foerster 414 West Phillips, Suite 100 Conroe, Texas 77301 936-756-3337 Facsimile: 936-756-2606 Email: foerster@dfcllp.com Either City or Owner may change its mailing address at any time by giving written notice of such change to the other in the manner provided herein at least ten days prior to the date such change is affected. In the event that this Agreement is partially assigned to and assumed by the purchaser of a portion of TGR III, such new owner may give written notice to the Parties hereunder in accordance with this Section 5.16 of such new owner’s address for notices hereunder and such address will be used for notices under this Agreement for such new owner. All notices under this Agreement will be deemed given on the earlier of the date Page 26 of 49 personal delivery is effected or on the delivery date or attempted delivery date shown on the return receipt or facsimile confirmation. 5.18 Exhibits. The following exhibits are attached to this Agreement and made a part hereof for all purposes: Exhibit A Property Description Exhibit B City Infrastructure Facilities Exhibit C Conceptual Plan Exhibit D TGR III Approvals Exhibit E Walking Trail Concept * * * [signature page follows] IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the dates indicated below, to be effective on the date the last Party signs. CITY OF HUNTSVILLE By: Name: Title: Date: STATE OF TEXAS § COUNTY OF WALKER § This instrument was acknowledged before me on the ______ day of _________, 2022, by _____________________, the _______________ of the City of Huntsville, a home-rule city, on behalf of the city. Notary Public, State of Texas Page 27 of 49 I TEXAS GRAND RANCH, LLC, a Texas limited company By: Michael S. Patten, President Date: STATE OF __________________§ COUNTY OF ________________ § This instrument was acknowledged before me on the ____ day of __________, 2022, by MICHAEL S. PATTEN, President of I Texas Grand Ranch, LLC, a Texas limited company, and who represents he has been given authority to sign this Agreement by and on behalf of said entity. Notary Public, State of _________________ Page 28 of 49 EXHIBIT A Page 29 of 49 Page 30 of 49 Page 31 of 49 EXHIBIT B City Infrastructure Facilities • Water System A. The City will be the provider of water for TGR III. B. The Development Agreement dated April 26, 2017 and signed by both parties required the Developer to design and construct the off-site waterline extension and on-site water distribution lines. The Developer has obtained engineering plan approvals for the waterline extension and obtained the Public Improvement Permit PRPI20212586 for Project Number pd#2016-04-01, dated November 01, 2021 per the attached Exhibit B-1 C. TGR has bonded for the waterline improvements in the amount of $4,024,090.03, Bond # 0798304. D. TGR has ordered the pipe for the onsite and offsite portion of the water system per the approved plans, with delivery of the materials expected in February 2022, with construction to commence thereafter. The construction of the offsite portion of the waterline is currently underway with completion expected by October 2022. The remainder of the line from the I-45 service road to TGR II Section 13 which will complete the loop to Elkins is expected to start in August 2022 and be completed by December 2022. E. The Developer and the City have previously agreed the approved Engineering plans for the 12 inch line are sufficient to serve both TGR II and TGR III. Page 32 of 49 EXHIBIT B-1 Approved Water Extension / Loop Page 33 of 49 OFF SI T E 1 2 " W L ONSITE 12 " WL tie to exist 12" wl STEW A R T PAR K RD 4 0 US 75US 7 5I-45 I-45 OFF SI T E 1 2 " W L 200010005000 SCALE: 1" = 1000' OFFSITE 12" ONSITE 12" PROPOSED WATER LINE ROUTE S P E Exhibit B-1 Page 34 of 49 EXHIBIT C Conceptual Plan The Conceptual Plan consists of the permissible uses in TGR III together with diagram attached hereto. Subject to the Prohibited Uses specified below, the following are the permissible uses within TGR III: 1. Single Family. Those areas identified as Single Family may be used for any single family purpose that is not a Prohibited Use. Single Family purpose is limited to, single family homes and their accessory uses as permitted in the recorded TGR III covenants, conditions and restrictions. There is approximately 128 acres of land to be developed at a later date subject to the rules in effect at the time of application, with approximately 80 acres of commercial, 17 acres for a school site and 31 acres of a private athletic complex, not covered in this agreement and may not be developed or use for any other purpose unless agreed to by the City. Page 35 of 49 PRO P S O F T B A L L PROP S O F T B A L L 200' 200' TEA M W A R M U P A R E A PR O P C S REST R O O M S TEA M W A R M U P A R E A TEA M W A R M U P A R E A 200 ' 200' PRO P S O F T B A L L PRO P S O F T B A L L PRO P P A R K I N G L O T 350 S P A C E 200' 200'200' 200' 200' PROP INDOORBATTING CAGES PROP PARKING LOT52 SPACE FULL SIZEVOLLEYBALL PROP PLAYGROUNDFOOTB ALLFLAG 200' 200'200'Spear Point EngineeringSpear Point EngineeringTBPE Firm No. 18904604 W. Worsham St., Suite 100Willis, TX 77378936-256-2626SCALE: 1" = 400200 400'0Page 36 of 49 EXHIBIT D TGR III Approvals • Lot Geometry: Section 5.700 Measurements o Allow for lot depth up to 4 times the lot width except for any flag lots • Roadway Geometry Section: 10.405 Blocks; 10.406 Cul-de-Sacs o Allow for block lengths in excess of 1200’ o Allow for cul-de-sacs in excess of 1000’ provided 15 or fewer lots are served • Street Lights: Section 10.1000 Street Lights o Provide approved lighting at all street intersections • Wastewater Systems: Section 10.700 Wastewater o Allow for the installation of approved alternative sewage treatment facilities on-site for each individual lot • Utilities: Section 10.1300 Utilities o Utilities may be located underground or overhead • Sidewalks: Section 10.504 Design; 10.901 Land Dedication o There will be no sidewalks constructed adjacent to roadways. There will be dedication of thirty+/- (30) miles of unsurfaced nature trail easements located in the easements adjacent to the roadway easement. This NTE is private and is dedicated only to the property owners and will not be required to meet handicap or public standards. o There will be an additional 3.5 miles of designated walking areas located in and around dedicated Reserves, Detention Ponds, & Recreational Areas. These walking areas are private and are specific for use by the property owners and will not be required to meet handicap or public standards. • Streets: Section 10.400 Streets o Must dedicate a minimum 60’ ROW o Driving surface must be 2” asphalt on stabilized base in accordance with adopted City Standards o Paved surface must be a minimum of 26’ in width with 2’ shoulders • Water: Section 10.600 Water o Fire Hydrant spacing at a maximum of 1,000’ separation. o Individual private wells will not be allowed without the express written consent of the City. • Development Standards: Subject to the variances, waivers, and exceptions set out in this Exhibit D, all the above improvements shall be the same approved design standards and materials for roads and water, testing requirements and frequency, and other associated infrastructures as contained in the City’s rules and regulations in place at the effective date of this Agreement. Page 37 of 49 EXHIBIT E Walking Trails and Park Areas The walking trails and park areas as depicted on the following maps must meet the following minimum standards: •Off-street parking must be provided at each of the designated parks in accordance with City codes as of the effective date. •Dedicated access to each of the parks from a public street. Page 38 of 49 PRO P S O F T B A L L PRO P S O F T B A L L 200 ' 200' TEA M W A R M U P A R E A PRO P C S RES T R O O M S TEA M W A R M U P A R E A TEA M W A R M U P A R E A 200' 200' PROP S O F T B A L L PR O P S O F T B A L L PRO P P A R K I N G L O T 350 S P A C E 200' 200'200'200'200' PROP INDOORBATTING CAGES PROP PARKING LOT52 SPACE FULL SIZEVOLLEYBALL PROP PLAYGROUNDFOOTBALLFLAG 200' 200 '200'Spear Point EngineeringSpear Point EngineeringTBPE Firm No. 18904604 W. Worsham St., Suite 100Willis, TX 77378936-256-2626SCALE: 1" = 10050 100'0Page 39 of 49 S P E Page 40 of 49 S P E Page 41 of 49 PROP INDOORBATTING CAGESPROP PARKING LOT52 SPACES P E Page 42 of 49 S P E Page 43 of 49 S P E Page 44 of 49 S P E Page 45 of 49 S P E Page 46 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: 2.b. Agenda Item: Consider the appointment of the firm Pattillo, Brown & Hill, LLP as independent auditors for the City of Huntsville for fiscal years 2022 through 2026. Initiating Department/Presenter: Finance Presenter: Steve Ritter, Finance Director Recommended Motion: The Mayor moves to appoint Pattillo, Brown & Hill to perform the annual audit for the City of Huntsville, Texas for fiscal years 2022 through 2026. (No second is needed, this motion is made pursuant to Section 11.16 of the City Charter which requires an annual audit by a CPA appointed by the Mayor with approval of the Council.) Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient, and fiscally sound government through conservative fiscal practices and resource management. Discussion: Section 11.16 of the City Charter requires an annual audit "...by a Certified Public Accountant, appointed by the Mayor with approval of the Council." The audit of the City for fiscal year 2022 was the final year of five years on the RFQ (Request for Qualifications) from 2017 with the firm Pattillo, Brown & Hill. Staff issued an RFQ for auditing services for fiscal years 2022, 2023, 2024, 2025, and 2026 with an option for years 2027 and 2028. The RFQ provides for the possibility of a firm performing the audit for 7 years but each year the Mayor appoints, with Council approval, the firm to audit the City. There were 2 firms that responded to the RFQ (a third firm sent a response but it was not received by the deadline time). None of the firms responding were local firms. Staff scored the firm qualifications submitted and Pattillo, Brown & Hill was the highest scoring firm. As a reminder, in the RFQ process prices/fees/costs have to be submitted separately from the qualifications submission. After a firm is selected on qualifications, then the fee component can be opened and considered. Previous Council Action: None Financial Implications: Auditing services are budgeted for annually in the budget process. Fee amounts submitted by Pattillo, Brown & Hill for each year are as follows: 2022 - $53,525, 2023 - $54,000, 2024 - $54,500, 2025 - $55,000, 2026 - $55,500 (as a point of reference the fee for FY 2021 was $48,500). This is for information only. The Council is not approving any budget at this time. Approvals: Rick Rudometkin Aron Kulhavy Page 47 of 49 Kristy Doll Associated Information: Page 48 of 49 CITY COUNCIL AGENDA 6/21/2022 Agenda Item Number: 7.a. Agenda Item: City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.074 – Personnel Matters: regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: City Manager Aron Kulhavy. Initiating Department/Presenter: City Manager Presenter: Recommended Motion: None Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: Page 49 of 49