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City Council Meeting Agenda Packets 12-20-20221 CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Bert Lyle, Position 1 At-Large Karen Denman, Position 2 At-Large Vicki McKenzie, Position 3 At-Large Pat Graham, Position 4 At-Large Daiquiri Beebe, Ward 1 Mayor Pro Tem Russell Humphrey, Ward 2 Deloris Massey, Ward 3 Jon Strong, Ward 4 HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, DECEMBER 20, 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.) DISCUSSION a. Huntsville Public Library management and operations 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 PRESENTATIONS a. Recognize Walker County Judge Danny Pierce for 20 years of Dedicated Service Andy Brauninger, Mayor PUBLIC HEARING a. Public Hearing to hear testimony concerning the consideration of a Conditional Use Permit Application for a proposed expansion of a self-storage facility located at 3404 Powell Road on Walker County Property ID #24094. Armon Irones, City Planner 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 the December 6, 2022 Regular City Council meeting. b. Consider adoption of Ordinance 2022-43 to amend the budget for FY 22-23 and/or CIP Project Page 1 of 108 2 budgets. Steve Ritter, Finance Director c. Consider Resolution 2022-32 authorizing the City Manager to apply for and accept, if awarded, funding under the CDBG-MIT Regional Mitigation Program as administered by the Texas General Land Office for local mitigation projects. Ashley Brown, Grants Manager d. Consider Resolution 2022-33 authorizing the City Manager to apply for and accept, if awarded, funding under the Arts Engagement in American Communities Grant Program (AEAC) to enhance Main Street Music Series events. Ashley Brown, Grants Manager e. Consider authorizing the City Manager to award the purchase of Vegetative Debris Grinding Services. Brent Sherrod, Public Works Director f. Consider authorizing the City Manager to grant an easement to Entergy Texas Inc. to provide additional electrical service to the Huntsville Municipal Airport located at 1000 Ariport Road. Kathlie Jeng-Bulloch, City Engineer g. Consider the Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply between the City of Huntsville and Montgomery County Municipal Utility Districts Number 8 and 9. Aron Kulhavy, City Manager 2. STATUTORY AGENDA a. Consider approving a Conditional Use Permit Application for the proposed expansion of a self-storage facility located at 3404 Powell Road on Walker County Property ID#24094. Armon Irones, City Planner b. Consider the purchase of FY2023 vehicles, from multiple vendors, authoring the City Manager to execute associated contracts. Brent Sherrod, Public Works Director c. Consider approval of a Public Improvement District (PID) policy. Kevin Byal, Director of Development Services 3. CITY COUNCIL/MAYOR/CITY MANAGER a. Consider the appointments to the City of Huntsville Boards and Commissions for expired terms or vacant board positions. Andy Brauninger, Mayor b. Consider authorizing the City Manager to enter into an agreement with Library Systems & Services, LLC, for the management and operations of the Huntsville Public Library. Aron Kulhavy, City Manager 4. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA 5. ITEMS OF COMMUNITY INTEREST 6. 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 on Cause No. 2130313 City of Huntsville v Walker County ESD#3. Leonard Schneider, City Attorney Page 2 of 108 3 b. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice on Walker County Special Utility District (SUD) Leonard Schneider, City Attorney 7. 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: 12/16/2022 Kristy Doll TIME OF POSTING: 9:00 a.m. Kristy Doll, City Secretary TAKEN DOWN: Page 3 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: a. Agenda Item: Huntsville Public Library management and operations Initiating Department/Presenter: City Secretary Presenter: Recommended Motion: Not applicable Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Aron Kulhavy Associated Information: Page 4 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: a. Agenda Item: Recognize Walker County Judge Danny Pierce for 20 years of Dedicated Service Initiating Department/Presenter: City Council Presenter: Andy Brauninger, Mayor Recommended Motion: Not Applicable Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: Page 5 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: a. Agenda Item: Public Hearing to hear testimony concerning the consideration of a Conditional Use Permit Application for a proposed expansion of a self-storage facility located at 3404 Powell Road on Walker County Property ID #24094. Initiating Department/Presenter: Development Services Presenter: Armon Irones, City Planner Recommended Motion: Public Hearing Only-No action required Strategic Initiative: Strategic Initiative Goal #3, Economic Development-To promote and enhance a strong and diverse economy. Discussion: On December 1, 2022, following a public hearing, the Planning Commission voted unanimously to recommend approval of Conditional Use Permit 03-2022, as detailed in the attached DRAFT Letter of Conditional Approval. This document places conditions on the proposed expansion of the development to mitigate possible nuisance effects of the existing surrounding properties. The self- storage facility is an existing business, and they want to expand by placing two additional buildings on the site. The applicant has agreed to the conditions recommended by the Planning Commission. The development will also be subject to all applicable provisions of the Development Code, Engineering design criteria, and all other building codes. During the public hearing portion of the Planning Commission meeting, no one spoke in favor or in opposition of the development other than the applicant. Planning staff received a phone call from a citizen that wanted more information about the proposed project. Previous Council Action: None Financial Implications: None Approvals: Kevin Byal Kristy Doll Associated Information: 1. CUP Vicinity map Page 6 of 108 Page 7 of 108 Subject Property CITY OF HUNTSVILLE, TXENGINEERING DEPARTMENT / GIS DIVISION 8 CREATED DATE: 11/21/2022 Vicinity MapHuntsville GIS Division 1 in = 100 ft 0 0.015 0.030.0075 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 Page 8 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.a. Agenda Item: Consider approving the Minutes from the December 6, 2022 Regular City Council meeting. Initiating Department/Presenter: City Secretary Presenter: Recommended Motion: NA Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: 1. Minutes 12-06-2022 Page 9 of 108 1 MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 6th DAY OF DECEMBER 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 1 Lyle, Councilmember At- Large Position 2 Denman, Councilmember Ward 3 Massey, Councilmember At-Large Position 3 McKenzie, Councilmember Ward 4 Strong, Councilmember At-Large Position 4 Graham COUNCILMEMBERS ABSENT: None OFFICERS PRESENT: Aron Kulhavy, City Manager; Leonard Schneider, City Attorney; Sharon Schultz. Deputy City Secretary (for Kristy Doll, City Secretary) WORKSHOP (4:30 p.m.) a.Discuss Texas General Land Office (GLO) Regional Mitigation Grant Fund Application Kathlie Jeng-Bulloch, City Engineer b.TxDOT I-45 Section 2B Landscaping Plan Aron Kulhavy, City Manager 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. Councilmember Lyle gave the invocation and pledges were led by Mayor Brauninger PROCLAMATION a.Proclamation No. 2022-26 - Huntsville Independent School District for achieving the highest gains in the Nation in reading levels for 3rd-8th graders from 2019-2022. Andy Brauninger, Mayor 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 Page 10 of 108 2 member of Council.) a. Consider approving the Minutes from the November 15, 2022 Regular City Council meeting. b. Consider adoption of Ordinance 2022-40 to amend the budget for FY 21-22 and/or CIP Project budgets. Steve Ritter, Finance Director c. Consider adoption of Ordinance 2022-41 to amend the budget for FY 22-23 and/or CIP Project budgets. Steve Ritter, Finance Director d. Consider authorizing the City Manager to award the purchase of three (3) Penn Valley Reciprocating Positive Displacement Pumps, and associated accessories, to be installed at the Robinson Creek Wastewater Treatment Plant. Brent Sherrod, Public Works Director e. Second Reading - Consider adoption of Ordinance 2022-37 to change the Development District Classification for 32.0675 acres, located adjacent to Sections 1 and 3 on the east side of Elkins Lake Subdivision near the intersection of Wellington Drive and Green Briar Drive from Neighborhood Conservation to Management. Armon Irones, City Planner Councilmember Daiquiri Beebe made a motion to approve the Consent Agenda, Items a through e. The motion was seconded by Councilmember Pat Graham. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Karen Denman, Vicki McKenzie, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No - None 2. STATUTORY AGENDA a. First Reading - Consider Ordinance 2022-42 amending the Code of Ordinances of the City of Huntsville, Chapter 44 Article VI to modify parking regulations on University Avenue and 12th Street. Aron Kulhavy, City Manager Councilmember Bert Lyle left the council chambers due to conflict of interest. Public comments were heard from Bill Daugette and Alexis Holbrook. Councilmember Daiquiri Beebe made a motion to temporarily suspend the two-reading requirement and move to adopt Ordinance 2022-42 amending the Code of Ordinances of the City of Huntsville, Chapter 44 Article VI, to modify parking regulations on University Avenue and 12th Street with the City Attorney to correctly modify the Ordinance. The motion was seconded by Councilmember Vicki McKenzie. The motion failed 6-2. Page 11 of 108 3 Roll call vote Yes: Daiquiri Beebe, Vicki McKenzie No: Andy Brauninger, Russell Humphrey, Karen Denman, Deloris Massey, Jon Strong, Pat Graham Abstain: Bert Lyle Councilmember Bert Lyle returned to the council chambers. 3. CITY COUNCIL/MAYOR/CITY MANAGER 4. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA None 5. ITEMS OF COMMUNITY INTEREST Mayor and Council announced Items of Community Interest 6. 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 on Walker County Special Utility District. Leonard Schneider, City Attorney Council convened into Executive Session at 6:37 p.m. 7. RECONVENE Council reconvened from Executive Session into Open Session at 7:09 p.m. Councilmember Daiquiri Beebe made a motion to direct the staff to retain attorney David Klein for services. The motion was seconded by Councilmember Pat Graham. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Karen Denman, Vicki McKenzie, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No - None ADJOURNMENT Mayor Brauninger adjourned the meeting without objection at 7:10 p.m. ATTEST: CITY OF HUNTSVILLE ____________________________ ________________________________ Kristy Doll, City Secretary Andy Brauninger, Mayor Page 12 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.b. Agenda Item: Consider adoption of Ordinance 2022-43 to amend the budget for FY 22-23 and/or CIP Project budgets. Initiating Department/Presenter: Finance Presenter: Steve Ritter, Finance Director Recommended Motion: Move to adopt Ordinance 2022-43 to amend the budget for FY 22-23 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 explanations for the Budget Amendments are provided in the attachment, Exhibit A, to the Ordinance. The Budget Amendments were discussed with the Finance Committee at their December 20, 2022 meeting. Previous Council Action: No previous Council action for these budget amendments. Financial Implications: See the attached Ordinance 2022-43 and related Budget Amendment (Exhibit A) Approvals: Steve Ritter Aron Kulhavy Kristy Doll Associated Information: 1. ORDINANCE 2022-43 - BAs FY 22-23 - 12.20.22 council meeting 2. BAs - 12.20.22 CC mtg Page 13 of 108 ORDINANCE NO. 2022-43 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2022- 2023 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2022-24 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the 2022-2023 Annual Budget and CIP Budgets were adopted by Ordinance 2022-24 on September 20, 2022; 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 2022 – 2023 and/or 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 2022 – 2023 is hereby amended to include the expenditures and revenues in Exhibit “A” and/or 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 2022 – 2023 and/or 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 20th day of December 2022. THE CITY OF HUNTSVILLE, TEXAS __________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ _____________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney Page 14 of 108 Budget Amendments FY 22-23 Council 12/20/2022 Exhibit A Increase:Auction Proceeds Revenue - Equipment Replacement Fund $75,374 Increase:Motor Vehicles Purchases - Equipment Replacement Fund $75,374 Explanation: The costs for replacing the Police patrol vehicles has risen significantly in the last couple of years. The scheduled replacement of 8 of the vehicles in the 22 - 23 fiscal year is approximately $70,000 more than what was originally budgeted for their purchase. Additionally, replacement of 3 work trucks for various Departments are about $7,100 over budget. Lastly, on the positive side, total cost for replacement of 5 other vehicles being purchased were about $2,200 under budget. Net, overall, the Fund needs $75,374 of additional budget for these purchases. Auction of vehicles and other equipment in the Equipment Replacement Fund in fiscal year 22 - 23 has provided about $170,000 of additional monies to the Fund. Of this $170,000 around $90,000 to $100,00, can be attributed to the auction of police vehicles and other equipment funded from General Fund operations. These auction funds are available to cover the extra cost of the police vehicles or other vehicles and equipment if approved by Council. Page 15 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.c. Agenda Item: Consider Resolution 2022-32 authorizing the City Manager to apply for and accept, if awarded, funding under the CDBG-MIT Regional Mitigation Program as administered by the Texas General Land Office for local mitigation projects. Initiating Department/Presenter: Finance Presenter: Ashley Brown, Grants Manager Recommended Motion: Move to approve Resolution 2022-32 authorizing the City Manager to apply for and accept, if awarded, funding under the CDBG-MIT Regional Mitigation Program as administered by the Texas General Land Office in the amount of $2,256,200 ($2,256,200 federal grant share, $0 city match share) for local mitigation projects. 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; 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: On September 6, 2022, the Texas General Land Office (GLO) approved the Houston- Galveston Area Council's (H-GAC) Method of Distribution (MOD) for the allocation of U.S. Department of Housing and Urban Development Community Development Block Grant Mitigation (CDBG-MIT) Regional Mitigation Program funds to counties and local jurisdictions for risk mitigation projects related to flooding, hurricanes, and other natural disasters. The approved MOD includes the amount of funding available for eligible jurisdictions (counties and cities) for risk mitigation projects, for which the City of Huntsville was allocated $2,256,200 ($932,600 HUD MID, $1,323,600 State MID). On December 6, 2022, City Council held a workshop during which Staff outlined eligible projects and provided recommendations for the best use of the funds and received feedback from Council on priorities and preferences. Staff has drafted an application to the General Land Office based on these discussions and direction provided by Council. This agenda item is a request to apply for the funding allocation set forth in the Houston-Galveston Area Council's (H-GAC) Method of Distribution (MOD) to complete local mitigation projects as discussed during the workshop. Proposed projects in application: -Generator Replacement Program ($355,000) (Service Center Fleet Building, MLK Community Center) -Tanyard Creek Lift Station Force Main ($1.1M); -Drainage Projects - Autumn Road ($0.75M) -Dawson Lake Dam - $50,000 for H&H report. Total of $2.255M Page 16 of 108 Previous Council Action: Council held a workshop to discuss priorities for proposed projects on December 6, 2022. Staff presented a list of recommended projects and modified the generator replacements to included the MLK Community Center as requested. Financial Implications: If the grant is awarded, Staff will bring a Budget Amendment to Council for approval at the appropriate time. Approvals: Steve Ritter Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: 1. FY23 CDBG-MIT Resolution 2022-32 Page 17 of 108 RESOLUTION NO. 2022-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR THE CDBG-MIT REGIONAL MITIGATION PROGRAM AS ADMINISTERED BY THE TEXAS GENERAL LAND OFFICE; AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY’S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY’S PARTICIPATION IN THE GRANT PROGRAM. WHEREAS The City desires to 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 and enhance the quality of life for citizens, businesses and visitors; and WHEREAS It is necessary and in the best interest of the City to apply for funding under the CDBG- MIT Regional Mitigation Program. NOW, THEREFORE, be it resolved by the City Council of the City of Huntsville, Texas, that: SECTION 1: A application is hereby authorized to be filed on behalf of the City and be placed in competition for funding under the CDBG-MIT Regional Mitigation Program. SECTION 2: The application will be for $2,256,200, of which $2,256,200 will be in grant funds, to to complete local mitigation projects. SECTION 3: The City acknowledges that there is no match requirement for this program. SECTION 4: The Mayor and City Council strongly support this application to ensure the quality of the City utilities, transportation and physical structures and enhance the quality of life for citizens, businesses and visitors. SECTION 5: The City Council directs and designates the City Manager as the City’s Chief Executive Officer and Authorized Representative to act in all matters in connection with this application and the City’s participation in the CDBG-MIT Regional Mitigation Program as administered by the Texas General Land Office. SECTION 6: All funds will be used in accordance with all applicable federal, state, local, and programmatic requirements including, but not limited to, procurement, environmental review, labor standards, real property acquisition, and civil rights requirements. PASSED AND APPROVED this 20th day of December, 2022. THE CITY OF HUNTSVILLE Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: _______________________________ _______________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney Page 18 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.d. Agenda Item: Consider Resolution 2022-33 authorizing the City Manager to apply for and accept, if awarded, funding under the Arts Engagement in American Communities Grant Program (AEAC) to enhance Main Street Music Series events. Initiating Department/Presenter: Finance Presenter: Ashley Brown, Grants Manager Recommended Motion: Move to approve Resolution 2022-33 authorizing the City Manager to apply for and accept, if awarded, funding under the Arts Engagement in American Communities Grant Program (AEAC) in the amount of $20,000 ($10,000 federal grant share, $10,000 city match share) to enhance the Main Street Music Series events. Strategic Initiative: Goal #3, Economic Development – Promote and enhance a strong and diverse economy; Goal #1, City Appearance - Provide policies, amenities, and events that enhance the City’s already beautiful and historic natural environment Discussion: The City of Huntsville organizes and implements a plethora of arts and cultural activities through the Economic Development Department. We collaborate with a variety of organizations in the community, such as Sam Houston State University, the Old Town Theatre, Ballet Folklorico, and many others. Some examples of programming include year-round art classes, music and dance performances, literary readings, cultural events, and rotating arts exhibits at The Wynne Home Arts and Visitor Center. The City has partnered with the Huntsville-Walker County Chamber of Commerce's Huntsville Leadership Institute-Class of 2023 to build and install a new stage in our downtown area that will be better equipped to facilitate larger musical acts for the Main Street Music Series. The Main Street Music Series, hosted by the City of Huntsville, takes place in the spring and summer and consists of a series of four concerts in the heart of our community, promoting musical artists and encouraging community engagement in order to revitalize our downtown. Events for 2023 are currently being planned in partnership with the Huntsville Downtown Business Alliance. This agenda item is a request to apply for funding under the Arts Engagement in American Communities Grant Program (AEAC) administered by the National Endowment for the Arts in the amount of $20,000 ($10,000 federal grant share, $10,000 city match share) to enhance the Main Street Music Series events. If awarded, funding would be utilized to book artists that would attract increased numbers of visitors and citizens to experience the arts and explore downtown. The department has identified funding within their current budget to cover the required match amount. Page 19 of 108 Previous Council Action: No previous action has been taken. Financial Implications: If the grant is awarded, Staff will bring a Budget Amendment to Council for approval at the appropriate time. Approvals: Steve Ritter Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: 1. FY23 AEAC Resolution 2022-33 Page 20 of 108 RESOLUTION NO. 2022-33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR THE FY 2023 ARTS ENGAGEMENT IN AMERICAN COMMUNITIES GRANT PROGRAM (AEAC) TO ENHANCE THE MAIN STREET MUSIC SERIES EVENTS; AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY’S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY’S PARTICIPATION IN THE GRANT PROGRAM. WHEREAS The City desires to promote and enhance a strong and diverse economy and to provide policies, amenities, and events that enhance the City’s already beautiful and historic natural environment; and WHEREAS It is necessary and in the best interest of the City to apply for funding under the FY 2023 Arts Engagement in American Communities Grant Program (AEAC). NOW, THEREFORE, be it resolved by the City Council of the City of Huntsville, Texas, that: SECTION 1: A application is hereby authorized to be filed on behalf of the City and be placed in competition for funding under the Arts Engagement in American Communities Grant Program (AEAC). SECTION 2: The application will be for $20,000, of which $10,000 will be in grant funds, to book artists that would attract increased numbers of visitors and citizens to experience the arts and explore downtown. SECTION 3: The City agrees to provide matching funds of $10,000 in the form of in-kind and/or cash match for a total match of 50%. SECTION 4: The Mayor and City Council strongly support this application to promote and enhance a strong and diverse economy. SECTION 5: The City Council directs and designates the City Manager as the City’s Chief Executive Officer and Authorized Representative to act in all matters in connection with this application and the City’s participation in the FY 2023 Arts Engagement in American Communities Grant Program (AEAC). PASSED AND APPROVED this 20th day of December, 2022. THE CITY OF HUNTSVILLE Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: _______________________________ _______________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney Page 21 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.e. Agenda Item: Consider authorizing the City Manager to award the purchase of Vegetative Debris Grinding Services. Initiating Department/Presenter: Public Works Presenter: Brent Sherrod, Public Works Director Recommended Motion: Move to authorize the City Manager to award the purchase of Vegetative Debris Grinding, Removal and Disposal Services to Troy Atkinson at the unit prices referenced in the Bid Tabulation. Strategic Initiative: Goal #1, City Appearance - Provide policies, amenities, and events that enhance the City’s already beautiful and historic natural environment. Discussion: It is necessary for the City to contract with a private-sector contractor to perform periodic grinding, removal and disposal services for vegetative debris collected at the City’s Transfer Station, as required by the Texas Commission on Environmental Quality Municipal Solid Waste Permit. The services are generally performed twice per year, with the contracted vendor performing grinding and removal services of the vegetative debris and transporting the ground materials to final disposal in compliance with state requirements. City staff utilized sealed bid proposals for the vegetative debris grinding services to achieve optimal results at a competitive price. Multiple vendors were invited to bid, to include advertising the invitation to bid as required. Three (3) bids were received and opened on November 29, 2022. Solid Waste and Purchasing staff have evaluated the bids received to determine an award recommendation to Troy Atkinson of Conroe, Texas. Staff have checked references for Troy Atkinson and, based on their performance in previous grinding services with the City, recommends approving them to provide the necessary services, as outlined within the bid package and tabulation, for $32.00 per ton. This contract will provide for periodic, ongoing vegetative debris grinding services at the City Transfer Station as well as emergency disaster-related debris grinding which may be necessary during the contract term, which is one (1) year original term and one (1) year renewal term, with an anticipated expiration of December 2024. Previous Council Action: The previous Vegetative Debris Grinding Services contract was approved by City Council on October 5, 2021. Financial Implications: Item is budgeted: _224-374-55650 In the amount of $71,490.00 Page 22 of 108 Approvals: Brent Sherrod Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: 1. Bid Tab - Bid NO. 23-12 Page 23 of 108 Description Unit Price per Ton Comments Unit Price per Ton Comments Unit Price per Ton Comments Unit Price per Ton Comments Unit Price per Ton Comments Periodic, ongoing debris grinding services with removal & disposal of vegetative debris. $ 32.00 $ 50.00 500 Ton Minimum or $25,000.00 $ 109.50 Emergency, disaster-related debris grinding services at temporary debris storage and reduction site (TDSRS) to be determined; debris quantity less than 1,000 tons $ 32.00 $ 40.00 501 Ton Minimum or $20,000.00 $ 127.50 Emergency, disaster-related debris grinding services at temporary debris storage and reduction site (TDSRS) to be determined; debris quantity more than 1,000 tons $ 32.00 $ 40.00 $ 114.00 Periodic grinding and re- grinding (mulch quality) with disposal of mulch to a different location within the transfer station grinding site. $ 32.00 $ 50.00 $ 115.00 Proposed disposal site Addendum #1 Yes/No Addendum #1 Yes/No Landscapers Price New Waverly, TX Bid Tabulation Project Name: Bid NO. 23-12 Vegetative Debris Grinding with Removal and Disposal Location: 1212 Avenue M Huntsville, TX 77340 Date: Tuesday, November 29, 2023 Time: 2:00 P.M. Central Time KDF Enterprises, LLCTroy Atkinson Southern Star Twin Oaks Polk County Landfill Yes Yes Yes Yes Yes Yes Page 24 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.f. Agenda Item: Consider authorizing the City Manager to grant an easement to Entergy Texas Inc. to provide additional electrical service to the Huntsville Municipal Airport located at 1000 Ariport Road. Initiating Department/Presenter: Engineering Presenter: Kathlie Jeng-Bulloch, City Engineer Recommended Motion: Move to authorize the City Manager to grant the easement to Entergy Texas Inc. for the extension of their existing electric line. 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: This agenda item is pertaining to granting the easement (See attached Map) to Entergy Texas Inc. for relocating and extension of the existing electric line and constructing new weather monitoring equipment for the Airport Property. This is a part of the overall improvement plan for the airport. The City does not receive compensation for extensions of distribution lines from Entergy Texas Inc. Entergy recently granted a 40-foot easement across their sub-station located at FM 2821 and FM 247 for the city's new sewer trunk line. Entergy sought no compensation from the city. Entergy did compensate the City for their transmission line along Veterans Memorial Parkway. Previous Council Action: None Financial Implications: There is no financial impact associated with this item. Approvals: Kathlie Jeng-Bulloch Aron Kulhavy Kristy Doll Associated Information: 1. Map Airport Dr - Entergy Easement Area 12 20 22 2. Easement Document Page 25 of 108 Page 26 of 108 Page 27 of 108 Page 28 of 108 Page 29 of 108 Page 30 of 108 Page 31 of 108 Page 32 of 108 Page 33 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 1.g. Agenda Item: Consider the Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply between the City of Huntsville and Montgomery County Municipal Utility Districts Number 8 and 9. Initiating Department/Presenter: Public Works Presenter: Aron Kulhavy, City Manager Recommended Motion: Move to approve the Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply between the City of Huntsville and Montgomery County Municipal Utility Districts Number 8 and 9. 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 agreements with Montgomery County Municipal Utility Districts (MUD) 8 and 9 in which the City provided the MUDs with an option to purchase up to 2.0 million gallons per day (mgd) of treated wastewater that the City discharges into the San Jacinto River basin. The first amendment to the Option Period expired on January 31, 2021 and the second amendment is set to expire on January 31, 2023. The MUDs are requesting an amendment to extend the option period to January 31, 2025. Previously, the City was issued a Water Use Permit by the Texas Commission on Environmental Quality (TCEQ), which allows the City to use the bed and banks of the San Jacinto River to transport the water to the MUDs. The Third Amendment is intended to extend the MUDs option period an additional two years. The MUDs will pay the City an additional $5000 for the extended option period. Previous Council Action: The Council approved the first amendment to the option to purchase agreement in March of 2018 and the second amendment in October of 2020. Financial Implications: The item is expected to generate an additional $5,000 in revenue for the Utility Fund. Approvals: Brent Sherrod Leonard Schneider Aron Kulhavy Kristy Doll Page 34 of 108 Associated Information: 1. THIRD AMENDMENT TO THE OPTION TO PURCHASE AND AGREEMENT TO PURSUE WATER SUPPLY (00396960-2xAB154) Page 35 of 108 {00396960 2} Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply Page 1 of 5 THIRD AMENDMENT TO THE OPTION TO PURCHASE AND AGREEMENT TO PURSUE WATER SUPPLY This is the Third Amendment ("Third Amendment") to the September 9, 2010 Option to Purchase and Agreement to Pursue Water Supply ("2010 Option Agreement") between Montgomery County Municipal Utility District No. 8 ("MUD 8") and Montgomery County Municipal Utility District No. 9 ("MUD 9") on one hand, and the City of Huntsville ("City"), on the other hand. The Effective Date of this Third Amendment is _________________, 20____. References to the "Districts" are to MUD 8 and MUD 9, collectively. References to the "Parties" are to the Districts and the City, collectively. RECITALS WHEREAS, the 2010 Option Agreement, and a Water Supply Agreement also entered between the Parties on September 9, 2010, provide subject to stated terms that the City will make available to the Districts, and the Districts have a right to purchase, the City's wastewater discharges; WHEREAS, on August 15, 2011, the City filed an application with the Texas Commission on Environmental Quality (the "TCEQ") to obtain an authorization to convey discharged water using the bed and banks of the West Fork of the San Jacinto River and in Lake Conroe for the subsequent diversion by the Districts at a point to be established by the Districts on Lake Conroe; WHEREAS, the City of Houston ("Houston") and the San Jacinto River Authority ("SJRA"), who jointly own Certificate of Adjudication No. 10-4963, as amended, for maintaining and operating Lake Conroe, objected to the City's application; WHEREAS, effective July 28, 2017, the Districts, the City, Houston, and SJRA entered into the "Settlement Agreement Including Terms for Water Pass-Through, Water Commitment and Encroachment" ("Settlement Agreement") to compromise the disputed claims and avoid litigation; WHEREAS, as part of the Settlement Agreement, the City agreed to commit, to Houston and SJRA, 21% of the quantity of water the City discharges to supply the Districts pursuant to the Water Supply Agreement; WHEREAS, to ensure there was no conflict between the 2010 Option Agreement and the Settlement Agreement, the Parties agreed to amend the 2010 Option Agreement to reflect the City's commitment of water to Houston and SJRA; WHEREAS, recognizing that settling Houston's and SJRA's objections extended the time required to obtain authorization from the TCEQ what the Parties anticipated when the 2010 Option Page 36 of 108 {00396960 2} Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply Page 2 of 5 Agreement was entered, the Parties entered into the First Amendment to the 2010 Option Agreement (the "First Amendment") on March 6, 2018 to extend the period of time within which the Districts may exercise the option to purchase the City's wastewater discharges; WHEREAS, the Parties entered into the Second Amendment to the 2010 Option Agreement (the "Second Amendment") on October 23, 2020 to extend the period of time within which the Districts may exercise the option to purchase the City's wastewater discharges; and WHEREAS, the Parties now recognize that it is to their mutual benefit to further extend the period of time within which the Districts may exercise the option to purchase the City's wastewater discharges and enter into this Third Amendment. NOW, THEREFORE, pursuant to the general laws applicable to cities and municipal utility districts, including Chapter 791, Texas Government Code, and Chapter 572, Texas Local Government Code, and as otherwise authorized and permitted by the laws of the State of Texas; for and in consideration of the covenants, conditions and undertakings hereinafter described, and for further good and valuable consideration contained in the 2010 Option Agreement, the First Amendment, the Water Supply Agreement, the Second Amendment and this Third Amendment, and subject to each and every term and condition of these agreements, as amended, the Parties agree to amend, modify and charge certain paragraphs of the 2010 Option Agreement as follows: I. OPTION PERIOD EXTENDED A. In consideration of the Districts' payment to the City in the sum of $100.00 ("Fee to Extend Option") and other good and valuable consideration, paid on or before the Effective Date of this Third Amendment, the City hereby extends all the rights granted to the Districts in the 2010 Option Agreement, the First Amendment and the Second Amendment for an additional period of time through midnight on January 31, 2025, as implemented below in Section II of this Third Amendment. B. The Districts also shall pay to the City $4,900.00 as a Subsequent Option Payment pursuant to the provisions of the 2010 Option Agreement, the First Amendment and Second Amendment, as hereby amended. C. The payments provided for in this Section I shall be paid from current funds available to the Districts in accordance with Chapter 791 of the Texas Government Code. II. AMENDMENT OF 2010 OPTION AGREEMENT A. Section 1.04, Independent Consideration for Option, shall be amended to read as follows: Page 37 of 108 {00396960 2} Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply Page 3 of 5 1.04 Independent Consideration for Option. This exclusive Option during the Option Period is granted in consideration of the Districts' payments to the City in the sum of $100 ("Option Fee") and $100 ("Fee to Extend Option") paid on the Effective Dates of this Option Agreement and the Third Amendment to this Option Agreement, respectively. The Option Fee and the Fee to Extend Option are independent consideration for the grant of the Option; accordingly, the Option Fee and Fee to Extend Option shall not be applied to the Option Payments. The Parties stipulate that the Option Fee and the Fee to Extend Option are sufficient consideration for this Option Agreement, as amended. B. Section 1.05, Option Period, shall be amended to read as follows: 1.05 Option Period. Unless terminated in accordance with Article 6 (Termination of Option Agreement) of this Option Agreement or extended by written agreement of the Parties, the Option shall commence on the Effective Date, and end at midnight on January 31, 2025. C. Section 1.06, Option Payments, shall be amended by adding a new Subsection (f) to read as follows: (f) Notwithstanding Subsections (c) – (e) of this Section, and as provided in the Third Amendment to this Option Agreement, the Districts also shall pay to the City $4,900.00 as an additional Subsequent Option Payment. The Districts shall become obligated to pay the Subsequent Option Payment provided for in this Subsection (f) within ten (10) days following the Effective Date of the Third Amendment to this Option Agreement. F. Notice of Change of Address. Notice pursuant to Section 8.01 (Notices) is hereby given of the following changes for the Districts: For Montgomery County Municipal Utility District No. 8: Elliot M. Barner Radcliffe Bobbitt Adams Polley PLLC 2929 Allen Parkway, Suite 3450 Houston, Texas 77019-7120 For Montgomery County Municipal Utility District No. 9: Clark Stockton Lord Bracewell LLP 711 Louisiana Street, Suite 2300 Houston, Texas 77002 G. All Other Terms Remain in Force and Effect. The Parties intend and agree that all other terms and conditions in the 2010 Option Agreement not expressly amended by the First Amendment, Second Amendment and this Third Amendment shall remain in full force and effect. If there is a conflict between the terms and conditions of this Third Amendment, Page 38 of 108 {00396960 2} Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply Page 4 of 5 the 2010 Option Agreement, the First Amendment and the Second Amendment, the terms and conditions of this Third Amendment control. IN WITNESS WHEREOF, the Parties, who have had the opportunity to consult with their attorney with respect hereto and who fully and completely understand the terms and provisions hereof, have executed this Third Amendment on the dates indicated below. [EXECUTION PAGE FOLLOWS] Page 39 of 108 {00396960 2} Third Amendment to the Option to Purchase and Agreement to Pursue Water Supply Page 5 of 5 MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 BY: ___________________________________________________ President of the Board of Directors for MUD 8 DATE SIGNED: _______________________________________ ATTEST: _____________________________________________ Secretary of the Board of Directors for MUD 8 MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 9 BY: ___________________________________________________ President of the Board of Directors for MUD 9 DATE SIGNED: _______________________________________ ATTEST: _____________________________________________ Secretary of the Board of Directors for MUD 9 CITY OF HUNTSVILLE, TEXAS BY: ___________________________________________________ Andy Brauninger, Mayor of the City of Huntsville DATE SIGNED: _______________________________________ ATTEST: _____________________________________________ City Secretary of the City of Huntsville APPROVED AS TO FORM: ______________________________________ Leonard Schneider City Attorney for the City of Huntsville, TX Page 40 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 2.a. Agenda Item: Consider approving a Conditional Use Permit Application for the proposed expansion of a self-storage facility located at 3404 Powell Road on Walker County Property ID#24094. Initiating Department/Presenter: Development Services Presenter: Armon Irones, City Planner Recommended Motion: Move to approve Conditional Use Permit Application 03-2022, allowing for the expansion of a self-storage facility located at 3404 Powell Road on Walker County Property ID #24094, in accordance with the conditions of the draft letter of approval as recommended by the Planning Commission. Strategic Initiative: Strategic Initiative Goal #3, Economic Development- To promote and enhance a strong and diverse economy. Discussion: On December 1, 2022, following a public hearing, the Planning Commission voted unanimously to recommend approval of Conditional Use Permit 03-2022 as detailed in the attached DRAFT Letter of Conditional Approval. This document places conditions on the proposed expansion of the development to mitigate possible nuisance effects of the existing surrounding properties. The self- storage facility is an existing business, and they want to expand by placing two additional buildings on the site. The applicant has agreed to the conditions recommended by the Planning Commission. The development will also be subject to all applicable provisions of the Development Code, Engineering design criteria, and all other building codes. During the public hearing portion of the Planning Commission meeting, no one spoke in favor or in opposition of the development other than the applicant. Planning staff received a phone call from a citizen that wanted more information about the proposed project. Previous Council Action: None Financial Implications: There is no financial impact associated with this item. Approvals: Kevin Byal Kristy Doll Aron Kulhavy Page 41 of 108 Associated Information: 1. CUP 03-2022 Application 2. CUP 03-2022 Discussion Form 3. DRAFT_CUP 03-2022_Approved Conditions Letter 4. CUP Vicinity map Page 42 of 108 Page 43 of 108 1 PLANNING COMMISSION AGENDA ITEM DISCUSSION FORM Prepared by: Armon Irones, City Planner Layne Yeager, Planner MEETING DATE: December 1, 2022 SUBJECT: Proposed Development of a Self-Storage Facility TYPE OF REVIEW: Conditional Use Permit APPLICANT: Adam Westover LOCATION: 3404 Powell Road, Huntsville, TX 77340 FACTS, CODE REQUIREMENTS AND CONDITIONS With the adoption of the updated Development Code, effective date of August 31, 2015, additional measures were placed in the code to protect the character and growth of the City from potential nuisance land uses at the request of the Planning Commission and City Council. The Development Code states that certain nuisance uses may be made appropriate through the additional scrutiny of a Conditional Use Permit (CUP). The applicant, Adam Westover, is proposing to expand an existing Self-Storage Facility on property located at 3404 Powell Road. The subject property is approximately 1.23 acres in size and is in the Management (M) District. The applicant is wanting to build two buildings with a total of 74 climate control units and it will be approximately 8,200 square feet. The subject property is currently being used for Self-Storage and this Conditional Use Permit will be an expansion of the existing business, Ace Self-Storage, on the property. A Conditional Use Permit is needed because the business was in place prior to the current Development Code being adopted, therefore the use was grandfathered. Any expansion of the use requires a Conditional Use Permit. Commercial properties are located to the North, South, and West of the subject property and residential is located to the East. Water and sanitary sewer service are available for the proposed development. In the Huntsville Comprehensive Plan 2040 that was recently adopted by City Council there are three (3) goals listed under Land Use and Development Goals. Goal LUD 1: A land use allocation and pattern that supports Huntsville’s key focuses of increasing quality housing supply, economic development opportunities, and quality of life, while maintaining its “small town” and semi-rural feel. Goal LUD 2: Revitalized high-profile corridors and continued focus on downtown, providing increased retail and entertainment options within the city. Goal LUD 3: Focused growth within the city, promoting fiscal sustainability Page 44 of 108 2 Powell Road is a local street that has residential and commercial uses. To date, the City has not received any calls or emails from property owners that are within 300’ of the proposed development. The attached Letter of Conditional Approval provides draft conditions that would serve to mitigate possible nuisance effects of the development on surrounding properties. These conditions are intended to address noise, intrusive lighting, maintenance, visual clutter, and parking concerns, etc. CUP Process The requirements for the review and approval of a Conditional Use Permit are defined in Article 10: Development Review and Approval Procedures, Section 12.800 Conditional Uses, Development Code, effective date of August 31, 2015. Simply stated the procedure for a Conditional Use Permit is as follows:  Planning staff review application and prepare report and staff recommendation for the Planning Commission prior to the public hearing on the conditional use permit application.  Planning Commission must hold a public hearing on the proposed conditional use. Commission must then act, by simple majority vote, to recommend approval, approval with conditions, or denial of the request and convey its recommendation to City Council.  Final action on the conditional use permit is by City Council after receiving the Planning Commission recommendation on the matter. City Council must hold a public hearing and then act to approve, approve the proposed amendment with conditions, or deny the proposed conditional use. City Council may also remand the proposed conditional use application to the Planning Commission for further consideration. The conditional use permit application may be approved by simple majority. There are additional provisions for lapses in, transferability of, and amendments to approved Conditional Use Permits in the code. Please refer to Section 12.800 of the Development Code for additional details. In reviewing an application for a CUP, Section 12.808 of the Development Code states the following: No conditional use may be recommended for approval or approved unless the respective review or decision-making body determines that evidence has been submitted to support each of the following conclusions: •That the proposed use is consistent with the Comprehensive Plan. •That adequate utilities, roads, drainage and other necessary infrastructure facilities and public services are or will be available to serve proposed use; and Page 45 of 108 3 •That the proposed use will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity or be injurious to property values or improvements in the vicinity. STAFF RECOMMENDATION Powell Road is a local street and is lined with residential, retail, and commercial uses. The subject site is an existing development with a low traffic volume and is only adding two new buildings to the site. Staff finds that the proposed use will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity greater than any other use allowed by right in the Management Development District. Possible injurious effects on surrounding property value may be mitigated by the conditions of approval included in the draft Letter of Conditional Approval because the proposed conditions would provide sufficient improvements and buffering to create a safe and attractive environment for continued development of Powell Road. Due to this, staff recommends approval of the Conditional Use Permit, with the conditions outlined in the Letter of Conditional Approval. ATTACHMENTS o Application o Site and floor plan o Attached Letter of Conditional Approval o Vicinity map by staff Page 46 of 108      448 SH 75 N ˑ Huntsville, TX 77320‐1118 ˑ 936‐294‐5700 ˑ 936‐294‐5701 fax ˑ www.huntsvilletx.gov Our vision for the City of Huntsville is a community that is beautiful, historic, culturally   diverse, affordable, safe, and well planned with great opportunity for our citizens.  Huntsville     December 1, 2022 Adam Westover 85 Sage Sparrow Circle Spring, TX 77389 Re: CUP Application for 3404 Powell Road, Huntsville, TX, 77340 Dear Mr. Westover, In observation of the requirements of the City Development Code, the City of Huntsville City Council consideration of Conditional Use Permit 03-2022 is subject to the following conditions: I. General A. The expansion of a self-service storage facility on the subject property, 3404 Powell Road, Huntsville, TX, 77340 shall be allowed upon compliance with all applicable requirements of the City of Huntsville Development Code and the Conditions of Approval included in this letter. B. The following plans are required to demonstrate that these conditions of approval have been addressed. These plans may be submitted as a single application for a Commercial Building Permit. a. Landscaping Plan. Must show the location of all plantings and irrigation. b. Photometric Lighting Plan. Any site lighting used on the property shall be shielded and/or directed away from adjacent properties. Security lighting shall not infringe on adjacent properties. Use of lowest wattage and highest energy efficiency fixture available is required. Photometric light plan shall be submitted to and approved by the City Building Official. c. Master Sign Plan. The purpose of the master sign plan is to encourage the effective use of signs as a means of identification and communication for businesses in the City, to require proper sign maintenance, and to minimize the possible adverse effects of signs on nearby public and private property. The master sign plan shall include all proposed signs or sign locations for the entire multiple-tenant development, including defined wall sign spaces for tenants (tenant sign space), a monument sign or multi-tenant sign, directional signs, etc. Page 1 of 3 C I T Y  O F Incorporated in 1845 under the Republic of Texas  Page 47 of 108      448 SH 75 N ˑ Huntsville, TX 77320‐1118 ˑ 936‐294‐5700 ˑ 936‐294‐5701 fax ˑ www.huntsvilletx.gov Our vision for the City of Huntsville is a community that is beautiful, historic, culturally   diverse, affordable, safe, and well planned with great opportunity for our citizens.  C. Self-Service Storage Use. For the two self-service storage buildings that are proposed to be located on the front of the property, these buildings must be screened with some form of landscaping, fencing, or a stone wall. D. Access to the self-service Storage Facility. Access to the self-service storage facility will only take place along Powell Road. No secondary access to the property will be permitted. II. Screening A. Any outdoor storage of materials, including vehicles, must be screened from the public Right-of-Way in a manner approved by the City Building Official. B. In addition to the screening requirements found in Development Code Section 4.210, no visible barbed wire, or other comparable material, will be allowed on fencing in the 25ft front setback or along the property lines adjacent to Powell Road. C. Existing security feet of 6 feet in height for the current self-storage facility can continue to be used around the perimeter of the portion of the property where the self-service storage use is occurring. D. Any required perimeter screening or buffering shall be properly maintained and remain in place for the duration of the use of the property as a self-service storage facility. III. Landscaping A. Enhanced landscaping is required to be installed around the perimeters of the proposed new buildings. B. All landscaping and irrigation shall be located on the subject property. Landscaping installed for the purpose of screening the facility may not be located in the public Right- of-Way. Before implementing the improvements required and/or authorized by this Conditional Use Permit, submission and approval of all permits, design drawings, proposed materials and plantings require approval by the Building Official. Page 2 of 3 Please make note of the following excerpt from the Development Code, Section 12.809 Lapse of Approval. Page 48 of 108      448 SH 75 N ˑ Huntsville, TX 77320‐1118 ˑ 936‐294‐5700 ˑ 936‐294‐5701 fax ˑ www.huntsvilletx.gov Our vision for the City of Huntsville is a community that is beautiful, historic, culturally   diverse, affordable, safe, and well planned with great opportunity for our citizens.  12.809.A An approved conditional use application will lapse and have no further effect 18 months after it is approved by the City Council, unless: 1. A building permit has been issued (if required); 2. A certificate of occupancy has been issued; or 3. The conditional use has been lawfully established. 12.809.B The City Council is authorized to extend the expiration period for good cause on up to 2 separate occasions, by up to one year each. Requests for extensions must be submitted to the City Planner and forwarded to the City Council for a final decision. 12.809.C A conditional use also lapses upon revocation of a building permit or a certificate of occupancy for violations of conditions of approval or upon expiration of a building permit to carry out the work authorized by the conditional use approval. This letter is your authorization to proceed with the required permitting for the project. If we may be of further service to you, please do not hesitate to contact us at 936-294-5781. Respectfully, Armon Irones City Planner Page 3 of 3 Page 49 of 108 Subject Property CITY OF HUNTSVILLE, TXENGINEERING DEPARTMENT / GIS DIVISION 8 CREATED DATE: 11/21/2022 Vicinity MapHuntsville GIS Division 1 in = 100 ft 0 0.015 0.030.0075 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 Page 50 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 2.b. Agenda Item: Consider the purchase of FY2023 vehicles, from multiple vendors, authoring the City Manager to execute associated contracts. Initiating Department/Presenter: Public Works Presenter: Brent Sherrod, Public Works Director Recommended Motion: Move to authorize the City Manager to purchase FY2023 vehicles from multiple vendors, in the total amount of $660,449.50 to include all fees and authorize the City Manager to execute associated contracts. 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: Each year, the City’s vehicle fleet is assessed by the Fleet Manager for normal maintenance and overall condition. Each fleet asset is assigned an expected life condition, with police vehicles rated on a 6-7-year life expectancy and general City fleet rated on 12-year life expectancy. These assessments formulate the Fleet Replacement Schedule for each subject budget year and has yielded (15) replacement vehicles for FY 2023. The vehicle requirements for FY 2023 are denoted on the attached Vehicle Purchase Summary spreadsheet, and include:  Five (5) Chevrolet 1500 2WD Double Cab pickups for (1) Building Inspections/Decision Pkg, (1) Engineering/Decision Pkg, (1) Economic Development/Decision Pkg, (1) Building Maintenance and (1) Solid Waste from Lake Country Chevrolet.  One (1) Chevrolet 3500 2WD Crew Cab DRW, LWB with service bed and ladder rack for Water from Caldwell Chevrolet.  One (1) Chevrolet 2500 2WD Regular Cab SRW, LWB with service bed and ladder rack for Water from Caldwell Chevrolet.  One (1) Chevy Traverse for CID from Lake Country Chevrolet.  Seven (7) Ford Explorer Police Package SUVs (5) for HPD Patrol, (1) for HPD Patrol/Decision Pkg, (1) for School Resource Officer (SRO) from Silsbee Ford. City staff utilized sealed bid proposals for FY 2023 Vehicle Purchase to achieve optimal results at a competitive price. Multiple local vendors were invited to bid, along with the invitation to bid being advertised as required. One (1) bid, Ford of Boerne, was received and opened on November 30, 2022. In addition to sealed bids, staff obtained vehicle pricing worksheets from (4) regional cooperative contract award holders to assure competitive and advantageous pricing for the City’s vehicle requirements. Page 51 of 108 The Buy Board / TIPS cooperative contract programs have historically afforded Texas municipalities a sound purchasing position given the competitive vehicle pricing available under the program. This cooperative contract meets all requirements of Texas Local Government Code 252 pursuant to competitive bidding by Texas municipalities. Fleet and Purchasing staff have evaluated the vehicle pricing worksheets received to determine (from between Ford and Chevrolet) the best value to the City when considering price, critical options/equipment availability and cost, and warranty coverage/term and recommend award base on bid tabulation sheet. The costs for replacing the Police Patrol Vehicles has risen significantly in the last couple of years. The scheduled replacement of 8 of the vehicles in the 22-23 fiscal year is approximately $70,000 more than what was originally budgeted for their purchase. Additionally, replacement of 3 work trucks for various departments is about $7,100 over budget. With the auction of vehicles and other equipment in FY 22- 23, $170,000 of additional money was added to the Fund. Of this $170,000 around $90,000 to $100,000 can be attributed to the auction of police vehicles and other equipment from the General Fund. Approval of the budget amendment associated with this item will provide the necessary budget for use to be able to enter into the contracts for the purchase of FY2023 vehicles. Previous Council Action: None Financial Implications: Item is budgeted: 306-379-69040 In the amount of $ $660,449.50 (Includes Buy board Fees) Approvals: Brent Sherrod Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: 1. 2023 Vehicle Purchase Report Page 52 of 108 2023 Vehicle Purchase Lake Country Silsbee Caldwell Ford of Budget Chevrolet Fleet Group Ford Chevrolet Boerne Over/Under Total Cost Cost Cost Cost Budget DP 101- 717 Double cab 1500 2WD $36,500.00 $35,841.00 $-$38,330.00 $-$659.00 $35,841.00 DP 101-724 Double cab 1500 2WD $36,201.00 $35,841.00 $-$38,330.00 $-$360.00 $35,841.00 DP 663-882 Double cab 1500 2WD $36,201.00 $35,841.00 $-$38,330.00 $-$360.00 $35,841.00 220-362-1353 Crew Cab 3500 2WD DRW, LWB w/service bed $60,000.00 $-$-$61,370.00 $65,500.00 $(1,370.00)$61,370.00 220-362-498 Reg Cab 2500 2WD SRW, LWB w/service Bed $54,000.00 $-$-$53,535.00 $55,500.00 $465.00 $53,535.00 224-373-1143 Double cab 1500 2WD $33,000.00 $35,841.00 $-$37,420.00 $-$(2,841.00)$35,841.00 101-444-1145 Double cab 1500 2WD $33,000.00 $35,841.00 $-$37,420.00 $-$(2,841.00)$35,841.00 101-551-1319 Chevy Traverse CID $33,174.00 $32,790.00 $-$-$-$384.00 $32,790.00 101-551-1350 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 101-551-1701 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 101-551-1702 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 101-551-1703 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 101-551-1704 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 101-555-1315 Ford Explorer PPV $37,500.00 $-$47,478.50 $-$-$(9,978.50)$47,478.50 DP 101-551 Ford Explorer PPV $38,000.00 $-$47,478.50 $-$-$(9,478.50)$47,478.50 $585,076.00 $211,995.00 $332,349.50 $114,905.00 $(74,173.50) Vehicle Total Budget Number Buy Board /TIPS Fee $1,200.00 $659,249.50 Perferred Vender Over Budget $(75,373.50) Total cost Vender Vehicle Total $659,249.50 Buy Board/TIPS Fee Buy Board Fee $1,200.00 Vehicle Total Budget Number $585,076.00 Decision Package Total Cost $660,449.50 Under Budget/Over Budget Page 53 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 2.c. Agenda Item: Consider approval of a Public Improvement District (PID) policy. Initiating Department/Presenter: Development Services Presenter: Kevin Byal, Director of Development Services Recommended Motion: Move to accept the City of Huntsville Public Improvement District policy. Strategic Initiative: Goal #3, Economic Development – Promote and enhance a strong and diverse economy. Discussion: With infrastructure construction costs increasing and developers looking for alternatives to reduce their bottom line, Public Improvement Districts (PIDs) are becoming a more common funding mechanism for underwriting the infrastructure costs in new developments. As discussed at previous council meetings, Texas law provides a number of ways to finance needed public improvements, including the use of special assessments. The Public Improvement District Assessment Act allows cities to levy and collect special assessments on property that is within the boundaries of the PID. The statute authorizing the creation of PIDs is found in Chapter 372 of the Local Government Code. In addition to construction of water, wastewater, storm drainage improvements and roads, a public improvement district may be formed to accomplish many other improvements that benefit the property owners within the PID boundaries. Creating a PID has many steps and requirements to complete the process. Moving forward, this policy establishes clear guidelines for staff as well as developers contemplating requests to the City Council asking for approval of this type of funding. Previous Council Action: Council has previously approved one PID in Huntsville. No action has been taken on this specific policy. Financial Implications: None associated with the adoption of the policy. Approvals: Kevin Byal Kristy Doll Aron Kulhavy Associated Information: Page 54 of 108 1. Huntsville PID Policy_Draft Page 55 of 108 Public Improvement District Policy A Public Improvement District (“PID”) in accordance with Texas Local Government Code Chapter 372 (“Act”), provides the City of Huntsville (“City”) an economic development and community enhancement tool that finances the costs of qualified public improvements that confer a special benefit for a definable part of the City and/or its extraterritorial jurisdiction. Proceeds from assessments and/or PID bonds can be used to finance capital costs of public improvements or enhancements of public improvements which would not otherwise be constructed or provided. PIDs allow the costs of public improvements to be borne by those who receive special benefits from the improvements or services. Proceeds of PID bonds may only be used to pay for public improvements that will ultimately be owned and controlled by the City. Proceeds from assessments may also be used for special supplemental services for improvement and promotion of the PID, including maintenance of PID projects. A PID is comprised of a defined area of properties whose owners have petitioned the City to form a PID. The City Council creates a PID by adoption of a resolution after a public hearing. Notice of the public hearing must be published and mailed to all property owners in the proposed PID, as required by the Act. In the petition, the property owners request the City to levy assessments on property within the PID in order to fund enhanced services and/or improvements within the PID. The PID must demonstrate that it confers a special benefit to the property within the PID and promotes the interests of the City. The purpose of this policy is to outline the policies and procedures the City will use to consider whether creation of a PID, the levy of PID assessments, issuance of PID bonds, information disclosure to property owners, and determination of annual plans, budgets, and assessments are in the best interests of the City. This policy outlines the items needed to be addressed by the property owners seeking the creation of a PID (“Petitioner”) before the City Council can support the authorization of the PID. Any requests for adjustments, exceptions, or waivers to this policy must be reviewed and approved by the City Council of the City of Huntsville. General 1. A PID may be created and utilized to construct qualified public improvements and/or reimburse a developer's actual and documented costs of standard infrastructure with a strong preference for promoting enhanced infrastructure and improvements to serve the development. 2. Proceeds of PID bonds cannot be used to reimburse costs incurred prior to the twentieth (20th) day after such resolution is adopted. 3. PIDs must be self-sufficient and fund any costs incurred by the City associated with the formation of the PID, bond issuance costs, PID administration, the construction of PID improvements and other PID related costs. 4. Priority will be given to PID developments which: a. Generate economic and superior development benefits to the City beyond what normal development would generate. b. PIDs created with the support of 100% of the landowners within a PID. c. Provide for improvements in the public right of way (e.g., entryways. landscaping, fountains, specialty lighting, art, decorative Page 56 of 108 and landscaped streets and sidewalks, bike lanes, multi-use trails, signage). d. Meet community needs (e.g., enhanced drainage improvements, parks and off- street public parking facilities, pedestrian connectivity, wastewater and/or water on or off-site improvements) including without limitation development’s pro-rata share of the of regional public facilities and services e. Increase or enhance City's multimodal transportation and roadway plans f. Exceed development requirements of the City; in particular, enhanced architectural standards, enhanced landscaping, enhanced amenities, and provide for superior design of lots or buildings g. Protect and preserve natural amenities and environmental assets such as lakes, trees, creeks, ponds, floodplains, slopes, hills, and wildlife habitats h. Protect and preserve existing historical buildings, features or places and preserve the community amenities or features that would otherwise be a special benefit to the community i. Does not overlap the boundaries of another PID j. Aligns with the City’s growth and development goals 5. A PID's budget shall include sufficient funds to pay for all costs including but not limited to all administrative and/or operational costs associated with the administration, management, audit, disclosure and reporting of the PID. 6. Any requested adjustments and or deviations from the terms and conditions of the City's PID Policy shall be clearly requested and explained in, or submitted prior to or with, the PID petition for that PID. Any adjustments or deviations to be granted shall be at the sole discretion of the City Council. 7. The developer shall be responsible to prepay all assessments on property owned by the City of Huntsville, Huntsville ISD, and/or Walker County that are located in the boundaries of the PID 8. Developers may be required to pay the assessments for land located in a PID owned by a religious institution. 9. The City reserves the right and shall select and retain the services, at it’s sole discretion, of any professionals and/or consultants in association with the creation and administering of the PID including but not limited to financial advisor, bond counsel, underwriter, trustee, PID administrator, and appraiser. 10. The City Council will not take any action to commence the creation of a PID or other related development district prior to the approval of a final development agreement governing the development in question. Petition Requirements Petitions requesting creation of a PID must satisfy all statutory requirements under Chapter 372 of the Texas Local Government Code. The City may require: 1. Evidence that signatures of property owners were gathered not more than six months preceding the submittal of the petition 2. Evidence that the petitioner’s signatures meet the state law requirements, or the petition will be accompanied by a reasonable fee to Page 57 of 108 cover the City’s costs of signature verification In addition, the City may require that the petition set forth the following: 1. The maximum term of a PID assessment 2. Minimum appraised value to lien ratio 3. Maximum maturity of PID bonds 4. Maximum equivalent tax rate Development Agreement The City Council will not take any action to commence the creation of a PID or other related development district prior to the approval of a final development agreement governing the development in question. The following shall be provided to the City prior to the preparation of a development agreement: 1. The basic terms and conditions for creation of the PID, including the provision of special conferred benefit 2. Indication of the estimated costs of proposed improvements, maximum assessment, maximum bond issuance, and maximum tax equivalent rate (in dollars, $) 3. A section that clearly identifies the benefit of the PID to the affected property owners and to the City as a whole 4. The petitioner’s qualifications and previous experience with real estate development, financing of the development, prior PIDs, etc. 5. A legal description of the boundaries of the proposed PID, a map of the proposed PID boundaries that is suitable for publication for the legal notices, and a “commonly known” description of the area to be included in the PID 6. Description of all City-owned land within the PID as well as its proposed share of project costs 7. A current tax roll of owners in the PID 8. Any plan for phasing of both real estate development supported by the PID and construction of public improvements in the PID including a breakdown between major improvements serving large areas of or the entire PID vs. phase-specific direct improvements 9. A sunset clause, and a pre-executed petition to dissolve the PID by the landowner in case the project has not obtained development permits within three (3) years 10. Agreement by all property owners that upon approval of a PID located in whole or in part outside the City’s corporate limits, the boundaries of the PID will be immediately annexed into the City of Huntsville, or under terms of a development agreement. Fees and Professional Services Reimbursement Agreement If the City determines it is in its best interest to establish a PID, a Professional Services Agreement will be entered into with the developer. The Professional Services Agreement will require the developer to initially deposit funds in the amount of $50,000 to pay for city staff time and third- party consultants including, but not limited to, Legal and Bond Counsel, Financial Advisor, PID Consultant/Administrator, Trustee, Underwriter, Appraiser, and Market Study Analysts. An additional $25,000 deposit will be required to be deposited by the developer when the deposit balance Page 58 of 108 reaches $10,000. Certain unused balances will be returned to the developer. The developer will be eligible to be reimbursed these costs through bond proceeds or PID Assessments as applicable. The amounts required to be paid in this paragraph are in addition to administrative costs associated with the PID, cost of bond issuance, and the PID fee referenced below. In addition to the amounts set forth above, a PID fee may be required to be paid to the City at bond closing, subject to the terms of the Development Agreement. Development Standards The City will consider petitions for PID projects that support real estate developments which confer benefits to the City to a degree that is superior to benefits typically generated by projects that do not involve PID financing. 1. The project must include improvements that enhance or implement the City’s Comprehensive Plan, including the City’s thoroughfare plan and water and wastewater plans and advance the City’s trail and park plans. 2. In addition to other public improvements, any improvements that are offsite or are part of the City’s Capital Improvement Plans must obtain approval from the City Engineer prior to being included in the PID. 3. Preference will be given to high quality projects that exceed the City’s subdivision requirements for overall design, building standards and amenities with enhanced landscaping and appealing architecture throughout. 4. Preference will be given to mixed use projects that include a mix of residential, retail and commercial uses. 5. Preference will be given to projects that promote affordable housing. City Consultants The City will independently select Bond Counsel, Financial Advisor, PID Administrator, Trustee, Market Study Analyst, Underwriter and Appraiser. The City’s PID Administrator will draft the Service and Assessment Plan (“SAP”) and prepare all annual updates. Collection of Assessments Prior to the levy of assessments, the City will enter into an agreement with Walker County Appraisal District to include the annual PID assessment payments on the Walker County Tax Bill. Maximum Assessment The annual PID installment shall not exceed an amount that increases the expected total tax equivalent rate (TRE) upon buildout that will place the development within a competitive TRE. A true-up calculation is included in the City’s SAP and upon filing of a final plat will ensure that the maximum assessment per Lot Type, as defined in the SAP, is not exceeded, and which may result in a mandatory prepayment from the developer. PID Bond Issuance Requirements Page 59 of 108 In addition to other conditions set forth in a development agreement, the following performance standards and limitations shall apply to PID debt issues approved by the City: 1. The maximum term of an assessment for the PID or a discrete component thereof, as defined in the SAP, is not to exceed 30 years and the assessment term must equal the applicable bond term 2. Minimum appraised value to assessment lien ratio of 3:1 for the PID or a discrete component thereof, as defined in the SAP 3. No annual assessment increases once assessments are levied. Assessments for future phases will require to be competitive as deemed by the City, to the original Phase and Lot Type(s) as defined in the SAP 4. Maximum of 2 years of capitalized interest for each bond issue 5. Initial series of PID bonds must mature or expire no later than 30 years after being issued by the City, with the subsequent series of PID Bonds, if any, having the same maturity date of the initial series of PID Bonds 6. All improvements to be funded with PID bonds must be reviewed by the City Engineer or designee, and inspected by the City Inspector, or third-party qualified designee, and built to the City’s standards for public improvements prior to dedication and reimbursement 7. Developer is required to demonstrate committed capital in the form of cash deposit, proof of bank financing and/or equity capital, or letter of credit to the City with an amount confirmed by an engineer’s opinion of probable cost, which represents the difference between budgeted cost to complete the public improvements assumed to be completed, including private costs to reach final lot values as established in the appraisal and the net proceeds of the PID bonds. The form of committed capital (cash deposit, letter of credit or bank/equity commitment) will be determined by the City on a case-by-case basis on advice from its Financial Advisor. 8. The aggregate principal amount of bonds required to be issued shall not exceed an amount sufficient to fund: (i) The actual costs of the qualified public improvements benefitting the PID or a discrete component thereof, as defined in the SAP, (ii) required reserves and capitalized interest during the period of construction and not more than 12 months after the completion of construction and in no event for a period greater than 2 years from the date of the initial delivery of the bonds, and (iii) any costs of issuance. Provided, however that to the extent the law(s) which limit the period of capitalized interest to 12 months after completion of construction change, the foregoing limitation may be adjusted to reflect the law(s) in effect at the time of future bond issuances. 9. No bond issuance may occur after the expiration of five years after a PID is created if during said five-year period no assessments have been levied for such PID or no development has occurred within the PID; provided, however, this provision shall not apply if the City Council makes written findings that the passage of time without active development should not result in reevaluation of marketability, compatibility with surrounding land uses, and/or other relevant factors. Finance Limitations 1. A developer or landowner may request the issuance of PID bonds in advance of construction of an individual phase of a development subject to compliance with these standards. All such PID bond issues will be subject to approval of the City Council. Page 60 of 108 2. No General Obligation Bonds or Certificates of Obligation bonds will be utilized by the City to directly or indirectly pay, or guarantee payment of, PID bonds. 3. If in any calendar year the City issues bonds that would constitute a bank qualified debt issuance but for the issuance of the PID bonds, then the developer shall pay to the City a fee to compensate the City for the interest savings the City would have achieved had the debt issued by the City been bank qualified provided that all other developers or owners benefitting from the City issuing debt are similarly burdened with an obligation to compensate the City. 4. All PID bond issues, if any, will be subject to approval by the City Council. 5. If the City Council authorizes the issuance of PID bonds, the City shall issue all such PID bonds in accordance with the protocols and procedures adhered to by the City's Director of Finance for issuing long-term debt instruments including tax notes and bonds. 6. Special assessments on any given portion of the property may be adjusted in connection with subsequent bond issues as long as an agreed-upon maximum annual assessment rate is not exceeded, and the special assessments are determined in accordance with the SAP and the PID Act. Special assessments on any portion of the property will bear a direct proportionate relationship to the special benefit of the public improvements to that improvement area. In no case will the maximum assessment be increased for any parcel unless the property owner of the parcel consents to the increased assessment. 7. The City shall not be obligated to provide any funds for any improvement except from the proceeds of the PID bonds and PID assessments. 8. The City's cost of reviewing a developer payment request from PID bond proceeds, including City staff time and third-party consultant costs, shall be netted out of the amount paid to the developer. 9. Each PID bond indenture will clearly state that all debt service payments for the PID bonds shall be payable solely from and secured by the pledged assessments levied against properties within the PID or funds held under a bond indenture for such purposes, and that the City will have no obligation to make debt service payments for the PID bonds from any other sources. 10. A PID will be responsible for payment of all the City's reasonable and customary costs and expenses including the cost of any appraisal. 11. Improvements funded with PID proceeds will be exempt from any public bidding or other purchasing and procurement policies per Texas Local Government Code Section 252.022(a)(9) which states that a project is exempt from such requirements if "paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements." 12. Any new money PID bonds issued will include a Reserve Fund, funded from bond proceeds at the time bonds are issued, in an amount equal to the lesser of: (i) the maximum annual debt service on the bonds, (ii) 10 percent of the principal amount of the PID bonds, or (iii) 125 percent of the average annual debt service. 13. Pursuant to the PID Act, the interest rate for assessments may exceed the interest rate of the bonds by no more than one half of one percent (0.50%). The City may allocate up to 0.50% of the interest rate component to fund a delinquency reserve, prepayment reserve, Page 61 of 108 or for any other purpose authorized by the PID Act subject to the terms of the Development Agreement. 14. All developers and significant landowners will provide any required continuing disclosure obligations associated with the issuance of PID bonds as required under the respective bond indenture or any other regulatory agreement or regulatory agency. Failure to abide by continuing disclosure requirements may limit access to proceeds and/or future bond issues. 15. Developer is required to demonstrate committed capital (e.g., cash deposit, proof of bank financing, or letter of credit) to the City on or prior to the sale date of the PID bonds in an amount confirmed by an engineer's estimate of probable cost, which represents the difference between the budgeted cost to complete the public improvements assumed to be complete in the appraisal and the net proceeds of the PID bonds. 16. During a material event of default by the developer under the terms of any agreement between the developer and the City relating to the PID or the property within the PID, the City shall, after providing notice and opportunity to cure, have the right to recapture reimbursements and/or terminate its obligations to the developer. 17. All construction of improvements is subject to City review and approval and if applicable, provisions shall be made for dedication to City or to another appropriate entity. 18. Improvements to be funded by the PID are limited to those defined as Authorized Improvements under Texas Local Government Code Section 372.003(b) 19. Any trails, parks, streets or other public amenities that are located within a gated community or otherwise inaccessible location to the general public may not be funded or reimbursed by the PID. 20. Parks and trails may be dedicated to the City at the City’s discretion. 21. All roads must be within dedicated rights-of-ways that are conveyed to either the State, City or to the County government, as appropriate. 22. In any calendar year in which PID bonds are issued, a developer must pay the City its actual additional costs, if any, the City incurs in the issuance of its own public securities or obligations on its own taxing power of municipal revenues if the City Obligations are deemed not to qualify for the designation of qualified tax-exempt obligations as defined in section 265(b)(3) of the Internal Revenue Code as amended, as a result of the issuance of PID bonds by the City in any given year. Disclosure to Homeowners To provide disclosure to homeowners, the City will require the petitioner to comply with the following: 1. Execute a Landowner’s Agreement or similar agreement to be recorded in the official public records of Walker County. 2. Signage at major entryways and exits. 3. Signage and information flyers in any sales centers within the PID that include: a. Frequently Asked Questions b. Total Assessment c. Average Annual Installment d. Equivalent Tax Rate Page 62 of 108 4. Homebuyer disclosure documents, as approved by the City, in accordance with Section 5.014 of the Texas Property Code to be signed both at contract signing and at closing with such agreements maintained on file by each homebuilder and available for inspection by the City. 5. Developer contracts with homebuilders must require the homebuilder to disclose the PID on any MLS listing. Project Criteria In agreeing to create a PID for which debt will be issued to fund the costs of constructing eligible public improvements, the City will require the following: 1. The property owner must demonstrate to the City that it has the expertise to complete the new development that the PID will support. 2. The property owner must provide the City with its sources of funding the Public Improvements not being funded by the PID. 3. The proposed development must be consistent with the entitlements on the property. All required zoning, easements for off-site infrastructure, other required land use approvals or other required permits must be in place for the development prior to the issuance of any PID bonds. 4. The property owner must provide evidence to the City that the utility service provider has sufficient capacity to provide all necessary utility services. 5. All reasonable estimated costs must be identified before a decision is reached on a request to issue bonds for a PID. Costs to be identified include costs related to creating the PID; costs for construction and/or the acquisition of improvements, the maintenance and operation of improvements (if any) and PID administrative costs. A developer is solely responsible for cost overruns that exceed available PID bond proceeds. 6. If the City elects to hire a qualified third party PID administrator to administer the PID, the costs for such administration shall be paid for with PID funds. The PID administrator will be required to prepare the SAP, review and comment on all information provided by the developer, at the direction of the City attend any public hearing regarding the levy of assessments, as well as provide the Annual SAP update and present to Council for approval. 7. The PID Financing Agreement (or other applicable PID documentation) shall contain a section which clearly identifies the benefit of the PID to the affected property owners and to the City as a whole (i.e., public purpose) and evidence of insurance policies with coverages and amounts acceptable to the City. 8. The SAP shall describe, if applicable, all City-owned land within the PID as well as its proposed share of project costs. 9. Specified assurances that the construction of improvements in the public right-of-way will be dedicated to and maintained by the City after PID assessments have expired. For the life of the PID, public infrastructure will be maintained by the PID to the extent permitted under the Act, unless otherwise stated in the PID Financing Agreement (or other applicable PID documentation). The PID may not finance improvements or services within a gated community or that are not accessible to the general public. Page 63 of 108 PID Administration The City may contract with a qualified third-party company to manage and administer the PID, subject to appropriate oversight by City staff and in compliance with the Act, as amended. Developer Reimbursement The developer will submit expenses for reimbursements, subject to the SAP and the approved Disbursement Certification Form attached to the Construction Funding Agreement or other Financing or Reimbursement Agreement and submit to the City or PID Administrator as directed. Miscellaneous 1. This PID policy does not bind the City Council to approve, authorize or create a PID or take any related action. PID creation, PID bond issuance and all related matters are legislative acts solely with the discretion of the City Council. 2. Any requests for adjustments, exceptions, or waivers to this policy must be reviewed and approved by the City of Huntsville. 3. No public official or employee shall be personally responsible for any liability arising under or growing out of any approved PID. Any obligation or liability of the developer whatsoever that may arise at any time under the approved PID or any obligation or liability which may be incurred by the developer pursuant to any other instrument, transaction or undertaking as a result of the PID shall be satisfied out of the assets of the developer only and the City shall have no liability. on other developers. Page 64 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 3.a. Agenda Item: Consider the appointments to the City of Huntsville Boards and Commissions for expired terms or vacant board positions. Initiating Department/Presenter: City Council Presenter: Andy Brauninger, Mayor Recommended Motion: Move to appoint the Board and Commission members as presented. 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: Please see the attached list for appointments or reappointments to the following City of Huntsville Boards and Commissions: Art Commission, Housing Authority, Main Street Program Advisory Board, Parks and Recreation Advisory Board, Planning Commission, Tourism Advisory Board, and Veterans Affairs Advisory Board. The positions on these Boards and Commissions are either expiring on August 31, 2022, or are vacant and need to be filled. Previous Council Action: Financial Implications: None Approvals: Aron Kulhavy Kristy Doll Associated Information: 1. BOARD VACANCIES TO FILL-12-2022 Page 65 of 108 BOARD NAME SEAT #APPOINT/ REAPPOINT BOARD MEMBER TERM EXPIRES BOARD OF ADJUSTMENTS 1 Reappoint Nate Grigsby 08/31/2024 2 Reappoint Cheryl Reader 08/31/2024 3 Reappoint Michelle Spencer 08/31/2024 5 (from Alternate to Member seat) Appoint Elliott Herzlich 08/31/2023 7 (Alternate B)Appoint Tracy Richardson 08/31/2023 CEMETARY ADVISORY BOARD 2 Appoint Steph Morgan 08/31/2024 8 Appoint Ronnie Duck 08/31/2024 PARKS AND RECREATION ADVISORY BOARD 11 Reappoint Derrick Birdsall 08/31/2025 TOURISM ADVISORY BOARD 4 Appoint Jack Turner 08/31/2025 9 Appoint Sally Hosea 08/31/2024 VETERANS AFFAIRS ADVISORY BOARD 11 Appoint Johsua Adcock 08/31/2024 Page 66 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 3.b. Agenda Item: Consider authorizing the City Manager to enter into an agreement with Library Systems & Services, LLC, for the management and operations of the Huntsville Public Library. Initiating Department/Presenter: City Manager Presenter: Aron Kulhavy, City Manager Recommended Motion: Move to authorize the City Manager to enter into an agreement with LS&S for management and operations of the Huntsville Public Library. 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: Library Systems & Services (LS&S) is an agency that assists communities with their library management and operations. They have over 40 years of experience working with libraries across the United States to efficiently improve day to day operations while also improving customer service and relations. The company employs nearly 1,000 people and operates facilities throughout the United States, including Farmers Branch, Red Oak, and Wilmer, Texas. LS&S is the only vendor that provides the complete management of library operations and analytics, collection management, and back office management for the library operations. Entering into the agreement with LS&S allows the Huntsville Public Library access to an already established network of library professionals with years of experience that can serve to assist the current staff members. They will assist with collection development and programming that meets the needs of the community. The unique public-private partnership model with LS&S means community leaders will continue to control policy, direction, and assets while LS&S employs personnel and manages day to day operations. The City Council will maintain the authority to appoint the members of the Library Board, and approve policies in accordance with adopted ordinances. LS&S will evaluate the library’s current operational procedures and follow up with support and training to the employees to further enhance the library services once the agreement is executed. Should the City decide to enter into a contract with the professionals from LS&S services, the responsibility of management and staffing of the library would transfer from the City to LS&S. At the time of the effective date of the contract, anticipated to be by the end of January 2023 if approved, the library staff will no longer be employees of the City of Huntsville. LS&S has expressed interest in retaining current employees and they will have an opportunity to potentially work for them, at the discretion of LS&S. The employees will also have an opportunity for employment within the City for which they are qualified. Staff reached out to other communities regarding their experience with LS&S and received all positive Page 67 of 108 comments. There were consistent remarks on two major components: customer service and collection development. References stated that partnering with LS&S increased their level of customer service. References also stated that collection development, once very time consuming, was a more streamlined process with LS&S and no longer exhausted much of staff members’ time. In summary, the partnership with LS&S will reduce the cost of library operations, enhance library services, increase efficiency across library operations, focus on patron and community service, leverage library experts and dedicated support for back office functions, and implement library industry best practices while at the same time allowing the City to maintain control of the assets and strategic direction of the Huntsville Public Library. Previous Council Action: No previous council action taken Financial Implications: The current departmental budget for the library is $711,805. The proposed management fee for the operations of the library is $545,000 plus the addition of $45,050 for collection acquisition, for a total cost of $590,050 in the first year of operations. Under the agreement, the annual increase for the duration of the 10-year contract is limited to 3%. After allowances for additional funds for utilities and building maintenance, it is estimated that the City will reduce the cost of running the library by about 10%. The estimated savings to the City over the duration of the contract is projected to be more than $750,000. Should the contract be approved, a budget amendment will be provided for future Council consideration to reallocate the funding within the departmental budget chiefly moving monies from salary and benefits to contractual services. Approvals: Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: 1. Proposal for Library Services 2. Library Service Agreement - City of Huntsville DRAFT Final 3. LS&S Sole Source Letter - City of Huntsville Page 68 of 108 Page 69 of 108 Page 70 of 108 Page 71 of 108 Page 72 of 108 Page 73 of 108 Page 74 of 108 Page 75 of 108 Page 76 of 108 Page 77 of 108 Page 78 of 108 Page 79 of 108 Page 80 of 108 Page 81 of 108 Page 82 of 108 EAST\144970176.3 LIBRARY SERVICE DELIVERY AGREEMENT This LIBRARY SERVICE DELIVERY AGREEMENT (“Agreement”) is made as of the day of , 2022 between: LIBRARY SYSTEMS & SERVICES, LLC, a Maryland limited liability company with a mailing address at 2600 Tower Oaks Drive, Rockville, Maryland 20852 (“LS&S”); and THE CITY OF HUNTSVILLE, with a mailing address at 1212 Avenue M, Huntsville, TX 77340 (“Customer”). LS&S and Customer are each sometimes referred to herein as a “Party” and collectively, the “Parties”. The Parties agree as follows: 1. Services and Goods. (a) Services. During the term of this Agreement, LS&S will use commercially reasonable efforts to provide the labor and administrative services described on Schedule A (collectively, “Services”). The attached exhibits A thru C are part of the Agreement. (b) Provision of Goods. LS&S may purchase goods (“Goods”) for use in the management and operation of the Library (as defined below). At LS&S’s sole discretion, LS&S may select the sources of the Goods. Title to all items purchased by LS&S shall at all times reside in Customer. If LS&S furnishes any goods to Customer, LS&S will use good faith efforts to extend the manufacturer’s warranty, if any, to Customer. 2. Term and Termination. (a) Term. This Agreement shall be in effect for a period of ten (10) years commencing on , 2022 (“Effective Date”), and continues in force until , 2032 (“Expiration Date”), unless sooner terminated in accordance with this Section 2. (b) Termination for Default. If either Party breaches any material provision of this Agreement, including, but not limited to provision of Services and Staffing and fails to correct the breach within thirty (30) days after receiving written notice specifying the breach (or, if the breach cannot be corrected within thirty (30) days, fails to progress diligently towards correction), then the other Party may terminate this Agreement by giving written notice to the breaching Party, except that LS&S shall have the right to terminate this Agreement if Customer fails to pay any amount due LS&S and such failure continues for ten (10) days after written notice thereof. (c) Renewal. Subject to the termination provisions in accordance with this Section 2, this Agreement shall automatically renew and the Expiration Date extended for successive renewal periods equal to five years, unless written notice of intent to not renew is given by a Party at least six (6) calendar months prior to the Expiration Date. (d) Effect of Termination. Upon any termination of this Agreement, each Party shall (i) immediately discontinue all use of the other Party’s Confidential Information; (ii) delete the other Party’s Confidential Information from its computer storage or any other media, including, but not limited to, online and off-line libraries, subject to the Texas Public Information Act; (iii) shall return to the other Party or, at the other Party’s option, destroy, all copies of such Page 83 of 108 EAST\144970176.3 other Party’s Confidential Information then in its possession (including the Documentation); and (iv) shall promptly pay all amounts due and remaining payable hereunder. (e) Survival of Obligations. The provisions of Sections 5, 8(b), 9, and 10-12, as well as Customer’s obligations to pay any amounts due and outstanding hereunder, shall survive termination or expiration of this Agreement. (f) Termination for Non-Appropriation. In the event that funds for the following Customer fiscal year are not appropriated for the Library, then this Agreement shall terminate as of September 30 of the last fiscal year for which funds were appropriated. The Customer shall immediately notify LS&S in writing of any such non-allocation of funds. 3. Price and Payment. (a) Price. LS&S shall perform the Services for the Charges (exclusive of any current or future taxes) set forth in Section E of Schedule A. (b) Payments. LS&S shall invoice Customer prior to each month’s service for the monthly amount set forth in Section E of Schedule A. Customer shall pay all invoices, without offset or deduction, by bank wire transfer or Automated Clearing House (ACH) direct debit to a bank account designated by LS&S on or before the tenth (10th) day of such month (the “Due Date”) and shall bear interest at the rate of one and one quarter percent (1¼%) per month if not paid in full by the Due Date. If LS&S has not received payment by the Due Date, it may suspend performance contemplated under this Agreement until full payment has been received. (c) Taxes. LS&S shall add to its invoices any current or future taxes (other than LS&S’s income tax) payable by LS&S on account of this Agreement, the Services, or Customer’s payments hereunder, except to the extent Customer furnishes in advance a valid certificate of exemption from such taxes. This Agreement does not include charges for any sales or use tax that now, or in the future, may be deemed by a taxing authority to be applicable to the Services. In the event a taxing authority determines now or in the future that the Services are subject to such tax, LS&S shall invoice such taxes to the Customer and the Customer shall pay same simultaneously with the payment to which such taxes relate. In the event the Customer is not subject to or liable for such taxes, the Customer shall not be required to pay such taxes, shall provide LS&S with the legal basis of such exemption and shall agree to indemnify LS&S with respect to the nonpayment by LS&S of any such taxes to the extent permitted by the laws of Texas. 4. Insurance. (a) Insurance. During the term of this Agreement, LS&S shall maintain in force at its own expense commercial general liability insurance coverage of at least one million dollars ($1,000,000) each occurrence and two million dollars ($2,000,000) annual aggregate. LS&S also shall maintain workers compensation insurance providing the statutory benefits required by law. (b) Property Insurance. Customer will keep its buildings and their contents insured against loss, cost, damage or expense resulting from fire, explosion or any other casualty in an amount Page 84 of 108 EAST\144970176.3 equal to the full replacement cost thereof (“Casualty Insurance”). If any loss, cost, damage or expense resulting from fire, explosion, or any other casualty or occurrence is incurred by Customer in connection with its buildings or their contents, then Customer hereby releases LS&S, its owners, officers, employees, agents and volunteers from any liability it may have on account of such loss, cost, damage or expense to the extent of any amount receivable by reason of such Casualty Insurance, and waives any right of subrogation which might otherwise have existed or accrued to any person on account thereof. 5. Confidential Information and Intellectual Property. (a) Confidential Information. In the performance of this Agreement, LS&S may be exposed to information regarding the identity of Customer’s patrons, Customer may be exposed to information regarding LS&S’s proprietary library management techniques, and either Party may be exposed to other written or oral information, disclosed by either Party to the other, related to either Party or a third party that has been identified as confidential or that by the nature of the circumstances surrounding disclosure ought reasonably to be treated as confidential(collectively, “Confidential Information”). Each Party shall: (1) use the same care to protect the other Party’s Confidential Information from disclosure that such Party uses to protect its own information of like importance; (2) limit duplication of Confidential Information to the extent needed to perform this Agreement; and (3) disclose Confidential Information only to employees having a need to know in connection with performance of this Agreement, and who are informed of the contents of this provision prior to disclosure. This provision shall survive termination or expiration of this Agreement; and, on such termination or expiration, each Party shall return all Confidential Information, including all copies, to the owner of such information and, if requested, shall certify in writing that all such information has been returned. Because the damage resulting from a breach of this provision would be difficult or impossible to quantify and remedy at law, in case of such breach, or the threat of such breach, the Party whose Confidential Information is threatened to be disclosed shall be entitled to injunctive or other equitable relief. (b) Exceptions. Notwithstanding the foregoing, the provisions of Section 5(a) above, shall not apply to Confidential Information that (i) is publicly available or in the public domain at the time disclosed; (ii) is or becomes publicly available or enters the public domain through no fault of the recipient; (iii) is rightfully communicated to the recipient by persons not bound by confidentiality obligations with respect thereto; (iv) is already in the recipient’s possession free of any confidentiality obligations with respect thereto at the time of disclosure; (v) is independently developed by the recipient; or (vi) is approved for release or disclosure by the disclosing Party without restriction. Notwithstanding the foregoing, each Party may disclose Confidential Information to the limited extent required (x) in order to comply with the order of a court or other governmental body, or as otherwise necessary to comply with applicable law, provided that the Party making the disclosure pursuant to the order shall first have given written notice to the other Party and made a reasonable effort to obtain a protective order; or (y) to establish a Party’s rights under this Agreement, including to make such court filings as it may be required to do. (c) Intellectual Property. Subject to the terms and conditions of this Agreement, LS&S hereby grants to Customer a limited, non-exclusive, non-transferable, non-sublicensable right and Page 85 of 108 EAST\144970176.3 license to use the Documentation, as provided by LS&S, during the term of this Agreement, solely for Customer’s internal business purposes. Customer shall not use the Documentation for any purposes beyond the scope of the license granted in this Agreement. Without limiting the generality of the foregoing, Customer shall not (i) market or distribute the Documentation; (ii) make any copies of the Documentation; (iii) assign, sublicense, sell, lease, or otherwise transfer or convey, or pledge as security or otherwise encumber, Customer’s rights under the license granted in this Section 5(c); or (iv) modify the Documentation, except with prior written consent of LS&S. The Parties acknowledge and agree that if Customer modifies or improves the Documentation, all such modifications or improvements shall be considered part of the Documentation, and shall be owned by LS&S, and Customer hereby assigns to LS&S all right and title to such modifications or improvements. Other than as set forth in this paragraph, nothing in this Agreement confers any license or right to use any trademark, service mark, copyright or other intellectual property right, whether now owned or hereafter developed, of either Party. For the purposes of this Agreement, “Documentation” means the standard user manuals, instructions and related documentation made available by LS&S to Customer. 6. Customer’s Obligations. (a) Facilities, etc. Customer shall make available to LS&S without charge, solely for LS&S's use in performing the Services, all properties, facilities, furniture, furnishings, equipment, collections, supplies, records, files and data used or useful in the operation of the Library that are in Customer’s possession, custody or control as of the date hereof. Customer reserves all ownership rights in such properties and LS&S shall return such properties to Customer, ordinary wear and tear excepted, at the termination or expiration of this Agreement. Customer is responsible for the structure, improvements, maintenance, janitorial services and janitorial supplies, repairs and property insurance at the Library building (except for damage caused by LS&S). This includes the interior and exterior of the structure, all restrooms, electrical, building systems, and the heating and air conditioning system. LS&S shall work with LS&S Staff and Customer to ensure effective building maintenance by promptly identifying and reporting problems with the facilities. Customer is responsible for maintaining the entire Library site, including landscaping and grounds maintenance. (b) Security. Customer is responsible for providing security services for the Library and surrounding area. Customer is responsible for the configuration and maintenance of the security cameras and associated equipment and network at the Library. (c) Utilities. Customer is responsible for payment of utilities at the library facilities, including electricity, gas, water, waste disposal and recycling, telecommunications and Internet access. (d) Technology & Telecommunications. Customer is responsible for providing, maintaining and supporting the telecommunications network, servers and computers in the Library, including periodic replacement of aged or obsolete equipment as outlined in Schedule Page 86 of 108 EAST\144970176.3 B. Should LS&S provide any technical services to Customer, such services shall be provided pursuant to a separate agreement. (e) Policies. Customer shall be responsible for setting all policies that govern the operations of the Library. 7. Excluded Services. Notwithstanding any other provision of this Agreement to the contrary, the Services shall not include, LS&S shall have no responsibility for and Customer shall be fully responsible for the following: (a) Any goods or services, including payroll, that were rendered to Customer prior to the Effective Date. (b) Unfair labor practices, grievances, or any claims or litigation whatsoever arising out of the hiring and/or firing, layoff, subcontracting, assignment, reassignment or discipline of any Library staff not employed by LS&S at the time of the relevant incident. (c) Any worker's compensation or other claims arising from injuries sustained prior to the Effective Date by any Library staff not employed by LS&S at the time of such injuries. (d) Any costs of any current or future employee benefits, including payroll taxes, retirement benefits, voluntary retirement incentives, pension contributions, employee buyouts or other similar programs adopted by Customer. (e) Any future increases in wages and salaries mandated by Federal, State or Local regulations or legislation. 8. Warranties; Disclaimers. (a) Warranty. LS&S warrants that it will perform the Services with at least the care, diligence and expertise generally accepted in the library service industry. (b) Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY WARRANTED IN THIS AGREEMENT, THE SERVICES AND GOODS PROVIDED BY LS&S ARE PROVIDED “AS IS” AND “WITH ALL FAULTS,” AND LS&S EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF OPERABILITY, CONDITION, TITLE, NON-INFRINGEMENT, NON- INTERFERENCE, QUIET ENJOYMENT, VALUE, ACCURACY OF DATA, OR QUALITY, AS WELL AS ANY WARRANTIES OF MERCHANTABILITY, SYSTEM INTEGRATION, WORKMANSHIP, Page 87 of 108 EAST\144970176.3 SUITABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT. NO WARRANTY IS MADE BY LS&S ON THE BASIS OF TRADE USAGE, COURSE OF DEALING OR COURSE OF TRADE. LS&S DOES NOT WARRANT THAT THE SERVICES OR GOODS WILL MEET CUSTOMER’S REQUIREMENTS OR THAT THE OPERATION THEREOF WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT ALL ERRORS WILL BE CORRECTED. CUSTOMER ACKNOWLEDGES THAT LS&S’ OBLIGATIONS UNDER THIS AGREEMENT ARE FOR THE BENEFIT OF CUSTOMER ONLY. 9. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO EITHER PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, REGARDLESS OF THE NATURE OF THE CLAIM, INCLUDING, WITHOUT LIMITATION, LOST PROFITS, COSTS OF DELAY, ANY FAILURE OF DELIVERY, BUSINESS INTERRUPTION, COSTS OF LOST OR DAMAGED DATA OR DOCUMENTATION OR LIABILITIES TO THIRD PARTIES ARISING FROM ANY SOURCE, EVEN IF LS&S HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION UPON DAMAGES AND CLAIMS IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE. THE CUMULATIVE LIABILITY OF LS&S TO CUSTOMER FOR ALL CLAIMS ARISING FROM OR RELATING TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY CAUSE OF ACTION SOUNDING IN CONTRACT, TORT, OR STRICT LIABILITY, SHALL NOT EXCEED THE LESSER OF (I) THE ACTUAL DAMAGES SUFFERED BY THE AGGRIEVED PARTY, OR (II) FIVE HUNDRED THOUSAND DOLLARS ($500,000). 10. Conflict of Interest. LS&S shall not, directly or indirectly, acquire any interest which will conflict in any manner or degree with the performance of its services hereunder. In this connection, LS&S, its employees and consultants shall make no political contributions to any political campaign or initiative affecting the Customer, nor should the customer make such a request of LS&S to do so. 11. Notices Any notice regarding the performance of services under this contract shall be considered delivered using regular U.S. mail services, email, or fax to the attention of the parties listed below: City of Huntsville LS&S City Manager Todd Frager, CEO 1212 Avenue M 2600 Tower Oaks Blvd. Suite 500, Huntsville, TX 77340 Rockville, MD 20852 Email: citymanager@huntsvilletx.gov Email: Todd.Frager@LSSLibraries.com Office: 936-291-5400 Office: 301-540-5100 Page 88 of 108 EAST\144970176.3 12. Miscellaneous. (a) Independent Contractors. The relationship of the parties is that of independent contractors, and no partnership, joint venture, agency, employment, or other relationship is intended. (b) Assignment. Neither Party may assign this Agreement to a third party not affiliated with such Party without the prior written consent of the other Party, except that LS&S may subcontract or delegate portions of the Services; provided, however, that in no case shall Customer be liable to any party other than LS&S, or for any amount in excess of the price specified on Schedule A, plus any additional charges permitted hereunder. (c)Nondiscrimination, etc. LS&S shall not discriminate against any employee or applicant for employment because of race, color, sex, age, ancestry, medical condition (cancer or HIV Positivity including AIDS or ARC), national origin, sexual orientation, creed, religion, age, physical or mental disability, political affiliation, citizenship or any other characteristic prohibited by State or federal law. (d) Nonsolicitation of Employees. Customer acknowledges and agrees that the employees and consultants of LS&S who perform the Services are a valuable asset to LS&S and are difficult to replace. Accordingly, Customer agrees that, during the Term of the Agreement it shall not offer employment or engagement (whether as an employee, independent contractor or consultant) to any LS&S employee or consultant who performs any of the Services. The Customer shall not contract with another private or public company to provide library services for a period of one (1) year after the termination or expiration of this Agreement. (e) Force Majeure. LS&S shall not be liable for any failure or delay in performance of this Agreement due to causes beyond its control, including, but not limited to, act of god, strike, war or civil disturbance, weather emergency, or general failure of any necessary supply, service, utility or other cause beyond its reasonable control, such failure to perform shall not be grounds for termination of this Agreement. (f) Customer’s Representation. Customer represents and warrants that it has all necessary legal authority to enter into and perform this Agreement and that the person executing this Agreement on its behalf is legally authorized to do so. (g) Notices. Notices required or permitted under this Agreement shall be effective upon the third (3rd) business day after deposit in First Class mail, or the next business day after deposit with a recognized overnight courier, or upon receipt if e-mailed or faxed to the respective e- mail addresses or fax numbers, if addressed to the parties’ respective addresses and marked to the attention shown on the first page of this Agreement. (h) Law and Enforceability. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. If any provision of this Agreement is conclusively determined to be illegal, invalid or unenforceable, then such provision shall be severed, and the remaining provisions of this Agreement shall be so construed to carry out, as nearly as legally permitted, the intentions of the parties. Venue for any legal action shall be in the appropriate state district Court of Walker County, Texas or the appropriate federal district Court in Texas. Page 89 of 108 EAST\144970176.3 (i) Other Rights. Customer hereby grants to LS&S the limited right to use Customer’s name, logo and/or other marks for the sole purpose of listing Customer as a user of the applicable Offering in LS&S’s promotional materials. LS&S agrees to discontinue such use within fourteen (14) days of Customer’s written request. (j) Survival. The provisions of Sections 5 and 8 shall survive any termination or expiration of this Agreement. (k) Entire Agreement. This Agreement contains the entire understanding of the parties on the subject matter hereof and supersedes all prior statements and agreements on that subject. No failure or delay by either Party in enforcing any provision of this Agreement shall operate as a waiver. This Agreement may be modified or waived only in writing signed by the Party against whom such modification or waiver is sought to be enforced. Intending to be legally bound, the parties have caused this Agreement to be executed by their duly authorized representatives. CITY OF HUNTSVILLE LIBRARY SYSTEMS & SERVICES, LLC By: By: Name: Todd Frager Title: CEO Page 90 of 108 EAST\144970176.3 Schedule A Library Service Delivery Agreement A. Statement of Work LS&S will administer the operations of Customer’s library facilities (collectively, “Library”), including the accounting for, purchase of and payment for payroll services and goods and services from vendors for budgeted supplies, other direct operating expenditures, Library Materials (as defined below) and Capital Items (as defined below) sufficient to operate the Library in accordance with the policies and guidelines approved by Customer. LS&S shall provide, by and through its own employees or independent contractors ("LS&S Staff") any labor LS&S deems necessary for the operation of the Library. The cost of the LS&S Staff shall be paid by LS&S and is included in the Operating Budget (as defined below). LS&S shall have the sole and absolute right to hire, manage, evaluate and terminate the employment of the LS&S Staff from time to time to perform work under this Agreement. LS&S will provide the appropriate staffing levels to keep the Library open to the public for forty-nine (49) hours per week. The Library will be closed on some Holidays and other days mutually agreed upon in writing by the Customer and LS&S. Sample Hours, subject to change and agreement between LS&S and Customer: Monday: 10 am to 7 pm Tuesday: 10 am to 7 pm Wednesday: 10 am to 7 pm Thursday: 10 am to 7 pm Friday: 10 am to 7 pm Saturday: 12 noon to 4 pm Sunday: Closed In addition, LS&S will develop a long-range plan for Customer in cooperation with Customer, elected and appointed local officials, other community stakeholders and the LS&S Staff (“Plan”). Using current professional standards and practice, the Plan will identify challenges and opportunities for the LS&S Staff and corresponding strategic responses, including specific goals and measurable objectives. This Plan, when approved by Customer, will help govern the direction and focus of the LS&S Staff in fulfillment of their mission of providing effective and efficient Library service to meet the personal, professional and lifelong learning needs of the patrons served by the Library. B. Scope of Work 1. Governance – Develop and maintain effective working relationships with local staff, elected officials, Library Board members, other appointed officials and community groups such as the Friends of the Library. 2. Fiscal Responsibility: Page 91 of 108 EAST\144970176.3 a. Develop and maintain effective and efficient financial procedures. b. Review all aspects of Library operation and service for efficiency and cost-effectiveness, while making changes as appropriate. c. Lead preparation of annual operating and capital budget requests. d. Continue to seek innovative means of adding value for Customer at little or no additional cost, including completing grant applications. 3. Reporting: a. Prepare and provide regular reports to Customer, describing Library activities and recommending changes in policies and operations as necessary and appropriate. b. Prepare and provide timely statistical reports to the Customer on Library activities. c. Prepare and provide annual statistical report to the Texas State Library. 4. Staff Development and Coaching: a. Support the professional development of all LS&S Staff. b. Provide leadership and guidance to maximize LS&S Staff effectiveness in Library operations. c.The Library will be closed on a mutually agreed upon day in writing by the Customer and LS&S for an annual All-Staff training day. 5. Public Services: a. Provide prompt, friendly and accurate assistance in the use of the Library. b. Provide prompt and accurate circulation information services. c. Provide requested materials promptly. 6. Collections – Provide high quality materials on a wide variety of subjects in varied formats for the community, according to established collection development plans. All collections are subject to Texas Law including the Texas Penal Code. 7. Programming – Provide high quality, effective programs of interest to all major demographic groups in the community. 8. Information Technology – In cooperation with the Customer and the Customer’s City Information Services, develop and implement short- and long-range plans to address the installation and support of sufficient hardware, software, network, telecommunications and other resources necessary to support the Library’s mission. Page 92 of 108 EAST\144970176.3 9. Marketing – Effectively disseminate information and promote use of the Library, resources and services. 10. Space Planning, Design, Renovation and Outreach – LS&S understands the paradigm shift surrounding municipal library design. LS&S will work in partnership with the Customer on positioning the Library for the future, and making it accurately reflect the community it serves. During the course of the agreement LS&S will assist the Customer in Space and Service Planning for the existing and potential new facility in order to optimize and expand the library’s capacity. This will include a comprehensive Needs Assessment process as well as leveraging our expertise in technology and the latest trends and current and future best uses for libraries. LS&S recognizes the importance of building consensus amongst the stakeholders involved and will support community outreach and education efforts for public funding initiatives. 11. Facilities – Work with LS&S Staff and local officials to ensure effective building maintenance by promptly identifying and reporting problems with the physical plant. C. Library Materials and Materials Handling Fee LS&S will provide high quality materials on a wide variety of subjects in varied formats for all age groups with a focus on demand driven collection, and according to the established Collection Development Policy. The responsibility for the Library Collection Development Policy will remain with the City, and all Library Materials selection and management will be the responsibility of LS&S. LS&S will negotiate favorable discounts and prices for the purchase of library materials in all formats. LS&S uses a centralized Collection Management Team (CMT) comprised of experts with decades of collection management experience and specialty knowledge combined with insights the LS&S proprietary comprehensive collection analytics platform (LibraryIQ). The CMT ensures significant efficiencies, cost savings, expedited materials and enhanced performance through strong back-office processes and vendor relationship management. LS&S Collection Management services (collectively, “Library Materials”) include: •Acquisition, Cataloging and Processing •Selection •Inventory and Weeding •LibraryIQ Platform Page 93 of 108 EAST\144970176.3 LS&S will place orders with the suppliers and perform the accounting functions related to those orders, including prompt payment of the invoices. LS&S’s Collection Management fee is variable and based on a percentage of the City’s total collection budget. LS&S shall include a fee of ten percent (10.0%) of the cost of the Library Materials ordered (" Materials Service Fee"). This service fee is charged on all-Library Materials, regardless of the format of content. D. Excluded Costs Customer shall be responsible for the following: (a) Any costs, expenses, damages or losses occurring prior to the Effective Date. (b) Any Capital Items, which shall mean any capital acquisitions, improvements or replacements of any of the properties, facilities, equipment, furniture, furnishings, fixtures or leasehold improvements of the Library, except that such Capital Items proposed by LS&S for its benefit shall be approved by Customer and paid for by LS&S. (c) Printers and Copiers. Customer is responsible for the support of all Customer provided printers and copiers. The Customer shall be responsible for the paper, toner, maintenance and repair costs of all printers and copiers. (d) Any amount of costs for unbudgeted repairs, maintenance and/or upkeep of Capital Items owned by Customer. (e) Any increases in the cost of any state or federal tariff items over the rate for such items prevailing as of the date of execution of this Agreement. (f) Any increases in the minimum wage mandated by federal, state or local governments following the Effective Date are not included in the above compensation schedule and Customer will be responsible for reimbursing LS&S for such increases. The Parties acknowledge and agree that the minimum wage rates specified in Schedule C shall apply as of the Effective Date. (g) Any patron accommodations regarding the Library facilities required by the Americans with Disabilities Act (ADA) or any similar federal, state or local regulations. (h) LS&S will comply with established Customer processes and protocols for Library volunteers, including any required background checks. The Customer will determine the annual budget for background checks. LS&S will bill the costs of background checks for any volunteers to the Customer. Page 94 of 108 EAST\144970176.3 E. Operating Budget and Charges Annual increase limited to 3% - ten-year contract * Total cost of Library Materials is not included in the Operating Budget and shall include the Materials Handling Fee. After the first year, funding for Books and Materials shall be determined by the Customer annually. The above amounts reflect the minimum that LS&S recommends the Customer budget for Books and Materials. Expenditures for Books and Materials will be invoiced monthly as incurred and will include LS&S’s Material Handling Fee. **Amount to be prorated based on actual start date The Operating Budget is contingent on other existing contractual terms, obligations and responsibilities remaining the same except as expressly noted herein. Prior to three (3) months before the end of the last Period to which the amount of Charges have been agreed upon, the Parties shall begin to negotiate in good faith the amount of Charges that will apply to the next Period. If the Parties have not reached such agreement thirty (30) days before the end of such Period, then the new charge shall be equal to the Charge for the last month of such Period multiplied by twelve (12) or the number of Remaining Months, whichever is less, plus the percentage increase in the Employment Cost Index (ECI) in the immediately preceding twelve (12) month for the census region of the country in which the Library is located, or 5%, whichever is greater. Period Monthly Minimum Materials*Total January , 2023 - September 30, 2023**545,000$ 45,417$ 45,050$ 590,050$ October 1, 2023 - September 30, 2024 561,350$ 46,779$ 46,402$ 607,752$ October 1, 2024 - September 30, 2025 578,191$ 48,183$ 47,794$ 625,984$ October 1, 2025 - September 30, 2026 595,536$ 49,628$ 49,227$ 644,764$ October 1, 2026 - September 30, 2027 613,402$ 51,117$ 50,704$ 664,106$ October 1, 2027 - September 30, 2028 631,804$ 52,650$ 52,225$ 684,030$ October 1, 2028 - September 30, 2029 650,759$ 54,230$ 53,792$ 704,551$ October 1, 2029 - September 30, 2030 670,281$ 55,857$ 55,406$ 725,687$ October 1, 2030 - September 30, 2031 690,390$ 57,532$ 57,068$ 747,458$ October 1, 2031 - September 30, 2032 711,101$ 59,258$ 58,780$ 769,881$ Period Proposed Operating Costs Page 95 of 108 EAST\144970176.3 Schedule B Technology Support Services Section 1: Purpose The purpose of this Schedule B is to set forth additional terms of the Agreement regarding the responsibilities of the Customer, acting through its Information Services Department and LS&S, acting through its employees assigned to operate the Library Section 2: Definitions The words and phrases used in this Schedule B shall have the same meaning as provided in the Agreement and/or Schedule A to the Agreement. In addition, the following words, phrases, and abbreviations shall have the following meanings: “ILS” means Integrated Library System. “IS Department” means Customer’s Information Services Department. “IS Director” means Customer Director of Information Services or designee. “Library Director” means LS&S’s employee serving in the position of Director of the Library. “Library Staff” means LS&S’s employees, including the Library Director, assigned by LS&S to perform the on-site services provided by LS&S to Customer pursuant to this Agreement. “PC” is the abbreviation used for “personal computer.” “UPS” is the abbreviation for “uninterruptible power supply”, which is a device that provides battery backup when the electrical power fails or drops to an unacceptable voltage level. Section 3: Scope and Responsibilities A.Administration and Management (1)Technology Coordination. The IS Director will meet with the Library Director and the LS&S Technology Representative approximately every six months, at a mutually agreeable date and time, to discuss technology needs, upcoming initiatives and any service or support concerns relating to Library operations. (2)Technology Procurements. Customer shall be responsible for establishing the appropriate standards and providing update or refreshment schedules for Customer provided hardware and software. Any non-standard hardware or software request must be justified and approved by the IS Director. Customer shall be responsible for purchasing and replacing all Customer-provided computing hardware and associated peripherals, including desktop PC’s, laptops, monitors, mice, keyboards, printers, copiers, fax machines, scanners, etc. Page 96 of 108 EAST\144970176.3 (3)Vendor service agreements and contracts. Customer will enter into and maintain applicable service agreements or support contracts on Customer-provided computer equipment. The Customer will be responsible for maintain equipment is good working order at all times. Licensing will be appropriate and valid for the Library systems and software. Maintenance agreements and software support agreements will be kept current and accessible for support requirements. (4)Technology planning and budgeting. Library Staff and LS&S IT shall be responsible for preparing a written annual Technology Plan that defines the needs and technology solutions to meet those needs. Library shall solicit and receive comments and suggestions from Customer staff and other interested parties identified by the Customer in defining existing problems, necessary changes, and/or desired enhancements to technology services at the Library. LS&S, through the Library Director and LS&S IT, and Customer, through the IS Director, shall work together to review and define the Library’s technology needs for purposes of long-range planning, development of mid-year and fiscal year budgets and inclusion in the annually updated Technology Plan. (5)Equipment inventory and lifecycle management. The Customer IS Department shall be responsible for maintaining and updating inventories of Customer-owned technology assets, including the software loaded on all Customer-owned computers. The IS Department shall be responsible for picking up and properly preparing Customer-owned equipment for disposal, including a process for ensuring that all data is removed from the equipment. The IS Department will update the inventory and provide inventory revisions to the Library Director upon request. (6)Audit and Review of Third-Party Network Connections. Any third-party systems or connections into the Customer’s computer network must be pre-approved and will be subject to initial and periodic security review by the Customer. Any required corrective actions are to be implemented immediately, and closure is to be confirmed by the IS Director. (7)Internet content filtering management. Customer shall be responsible for: (a) Administering and monitoring the Internet Filter that serves the Library patron computers; and (b) Providing annual support and maintenance costs associated with the filtering software for public terminals. Library computers will be filtered for protection against Web-based threats, such as: malware, spyware, malicious sites, botnets and key loggers. (8)Library website and URL namespace. LS&S shall be responsible for the setup and maintenance of the Library’s content on the Library’s web portal. Customer will maintain the annual renewal for the Library’s URL namespace. The Customer shall be responsible for hosting the library website in accordance with service levels outlined below. Page 97 of 108 EAST\144970176.3 (9)Support requests. Incidents or requests for support should be reported to the Customer IS Department Help Desk via any of the following means: (a) User Support Portal - typing in URL in their internet browser (helpdesk.huntsvilletx.gov) (b) Calling 936-291-5959 (c) Emailing Helpdesk@huntsvilletx.gov If the incident is urgent, users should call the Help Desk, rather than using the support portal or emailing. IS Department support hours being 8:00 A.M. to 5:00 P.M. Monday through Thursday and 8:00 A.M. to 5:00 P.M. on Friday central time (except on Customer holidays). For urgent issues and outages, Library Staff may request IS Department emergency support outside of the standard support hours. (10)Compliance with IT Department policies and procedures. LS&S employees using Customer-provided computing technology and equipment will be expected to adhere to all Customer technology usage policies, requirements and standards. (11)Customer-provided user and email accounts. The IS Department shall be responsible for creation and maintenance of all Customer domain user accounts and Customer e-mail accounts. The Library Director shall inform the IS Director as soon as possible after any staff terminations so that user access to core information technology resources can be revoked in a timely manner. To the extent feasible, the Library Director shall inform the IS Director in advance of any employment termination date of a Library Staff employee if there is reason to believe the employee whose separation from employment may result in a risk to the condition or security of the hardware, software, or data to which said employee has access. The Customer will make appropriate allowances for LS&S employees access to LS&S business systems such as Email, HQ, Timesheets, etc. for the purposes of conducting normal LS&S business operations. This may include the requirement to install non-Customer software or modify software to accommodate the normal operation. (12)Inventory Lists; Support Matrix. IS Department staff and Library Staff and LS&S IT shall coordinate and cooperate in the preparation and maintenance of an inventory list of the hardware, installed software, and other computing technology equipment located in or assigned for use as part of Library operations. The inventory shall set forth the owner or provider of the hardware, software or equipment. IS Department staff and Library Staff shall also coordinate and cooperate with respect to development of a support matrix relating to the above inventory setting forth the party responsible for obtaining and/or providing support relative to the hardware, software, and/or equipment shown on the inventory. The initial inventory of installed software subject to this Paragraph (12) is agreed to be as set forth in Exhibit 1 to this Schedule B. B. Customer Facility (1)Security cameras. Customer is responsible for the configuration and maintenance of the security cameras and associated equipment and network at the Library. Page 98 of 108 EAST\144970176.3 (2)Technology equipment rooms. The Customer IS Department is responsible for coordinating and working with Customer’s Facilities Management Department to maintain power, UPS, air conditioning, environmental monitoring of the functioning equipment rooms. (3)Audio visual equipment. Customer is responsible for providing maintenance and support for all new and existing audio/video, systems in use at the library. Support includes: projector lamps, supplies, parts, repairs, preventative maintenance and any necessary adjustments. LS&S shall be responsible for failures caused by improper operation, cleaning or maintenance; accidents, damage, misuse or abuse caused by a LS&S employee. The Customer will be responsible for providing appropriate documentation and training on the proper usage of the equipment. C. Library Automation System (Polaris) LS&S is responsible for providing and supporting the Polaris Integrated Library System (ILS), as well as other automation systems required for effective operation of the Library. LS&S shall be responsible for acquisition, licensing and maintenance of any service/hardware required for the automation systems. D. Desktop Computing (1)General. All Customer-owned desktops and laptops will have antivirus and desktop management agents installed, where applicable. Only software provided by or approved by the Customer shall be loaded on Customer-owned computers. IS Department staff will not be required to install any additional software provided by LS&S without proof of purchase or a copy of the license agreement. Any computer, server or network hardware provided by LS&S or any third-party must be pre-approved by the IS Department and must adhere to Customer standards before being connected to Customer-owned computer hardware or the Customer’s data network. Library Staff shall be responsible for ensuring that all Customer-owned equipment is well maintained, operated in accordance with the manufacturer’s instructions and the Customer’s direction. LS&S shall be responsible for failures caused by improper operation, cleaning or maintenance; accidents, damage, misuse or abuse caused by a LS&S employee (2)Staff computers. The Customer IS Department is responsible for the support of all Customer-provided computers which are designated for use by Library staff in performing their job functions. Support includes: installation of hardware and software, configuration, installation of operating system patches and updates, and troubleshooting of hardware, software or network connectivity problems. IS Department staff will provide assistance with supported applications which shall include: installation and updating of software; troubleshooting of common problems; and help with basic usage. IS Department staff will help users perform their job functions using computer technology but will not perform those functions for them. For example, IS Department will not create documents or design databases or web pages for users. (3)Patron computers. Customer Staff is responsible for the support of all Customer provided computers which are designated for use by library patrons which shall include operating system patches and updates; the troubleshooting of hardware, software or network Page 99 of 108 EAST\144970176.3 connectivity problems. IS Department staff will work in conjunction with Library Staff and LS&S IT to troubleshoot and resolve any connectivity issues that may be associated with the Customer-provided data network. (4)Other LS&S owned and provided hardware/software. Library Staff shall be responsible for the support and maintenance of all LS&S-owned or provided hardware and/or software. Page 100 of 108 EAST\144970176.3 E. Server Hardware and Operating Systems (1)Customer provided Servers. The Customer IS Department is responsible for the support of all Customer-provided servers which are housed at the Library or designated for use by Library Staff or patrons, which shall include: installation, configuration, installation of operating system patches and updates and the troubleshooting of hardware, software or network connectivity problems. Library Staff shall be responsible for the licensing, administration and maintenance of the business applications running on this hardware. (2)LS&S provided Servers. LS&S shall be responsible for acquisition; licensing and maintenance of any LS&S-provided computing system or service. Any computer, servers or network hardware provided by LS&S or any third-party must be pre-approved by the IS Director and adhere to Customer standards before being connected to Customer-owned computer hardware or the Customer’s data network. F. Telephony, Network, Internet, and Printers (1)Customer network connectivity (to facility and to staff). The Customer IS Department is responsible for the maintenance and operation of all Customer-provided network equipment, including the configuration, support and maintenance of all routers, switches, firewalls and associated Ethernet and fiber connectivity. (2)Wireless network connectivity. The Customer IS Department is responsible for the maintenance and operation of all Customer-provided wireless network equipment, including the configuration, support and maintenance of wireless access points and associated routers, firewalls and cabling. (3)Customer internet connectivity. The Customer IS Department is responsible for the maintenance and operation of Customer-provided internet connectivity, including: modems, routers, switches and associated cabling. As of the Effective Date, Customer provides internet connectivity for the use of library patrons and Library Staff computers. (4)Telephone system. The Customer IS Department is responsible for the maintenance and operation of all Customer provided voice communications equipment at the Library, including: VoIP/PBX equipment, handsets and associated cabling. (5)Printers and Copiers. Customer Staff is responsible for the support of all Customer provided printers and copiers which are designated for use by library patrons. The Customer shall be responsible for the paper, toner, maintenance and repair costs of all printers and copiers for use by library patrons. Page 101 of 108 EAST\144970176.3 Exhibit 1 to Schedule B Software used in Library: Software Operational Responsibility Financial Responsibility Polaris LS&S LS&S Cassie/Cassie Manager*LS&S LS&S Winselect on Enterprise Server LS&S w/Customer IT support Customer Deep Freeze on Enterprise Server LS&S w/Customer IT support Customer Magic Info LS&S for content creation. Customer IT support for server Customer Websense* LS&S LS&S SentinelOne Customer Customer Windows LS&S w/Customer IT support Customer MS Office LS&S w/Customer IT support Customer *or equivalent software Page 102 of 108 EAST\144970176.3 Exhibit 2 to Schedule B Service Level Agreements This section is reserved for guidelines on measurable service level objectives. The intent of service level definition is to understand the expectations for key library and technology services and mechanisms for measurement. Technology Metrics The metrics identified are critical to the reliable service delivery and operations of a library. Measurement o Response to Troubles or Trouble Tickets – Response to priority 1 issues will be 4 hours after notification. Once issues are acknowledged, the responsible party will act appropriately to resolve the issue. Priority 1 issues will receive the highest response and activity until resolved or downgraded. Responses to lower priority items will be based on acknowledge and assignment of action within a time that is appropriate to the condition or impact. o Wi-Fi and Circuit Availability – access to communications is critical to normal operations of a library. Patron access to reliable communications is to be maintained at or above 98% availability during normal business/library hours. o Wi-Fi and Circuit Throughput and bandwidth – Libraries provide a necessary public service to patron and staff via wireless and internet communications. It is expected that these services be monitored and measured to ensure patrons are not experiencing consistent delays and packet latency. As a benchmark, latency to the internet should be under 30 ms Round Trip delay as measured to the nearest server on a public network. Upload and Download speeds will be appropriate to the size of the library community and will be monitored and adjusted as needed. o Patron Computers and Printers – access to patron computers, printers, and copies are to be maintained to 98 % availability. Patron computers are to be protected by anti-spam and anti-virus and locked down in such a manner as to allow for normal user interaction without allowing installation and modification. o Staff Computers – access to the LS&S library management systems is critical to the operations of a library. While staff systems have “off line” modes available with limited function, it is expected that all staff computers be maintained and provided at 99% availability. This availability is slightly higher than patron systems due to its role in the library. Updates to operating system are to be reviewed and applied routinely or minimally quarterly. o Web Systems Availability – access to the library web site will be maintained to 98% availability. o Security – systems integrity will be protected by firewalls, policies, and physical controls maintained by the Customer. Filters and changes to virus definitions are to be maintained and updated within 72 hours of release. Critical server updates are to be applied as per vendors release schedule. Page 103 of 108 EAST\144970176.3 Definitions Priority 1 issue is an out of service condition that impacts library operations and patron activity. Priority 2 issues are an equipment or process failure that is limited in scope or impact. Priority 2 issues can be a single system or process being out of service or impaired. Priority 2 impacts are limited as to scope and service delivery. Priority 3 issues are minor in scope or limited in span and impact. This can also include items that require order or installation. Notification – call, email, text, trouble ticket generation, or conversation indicating an issue. Response – initial notification and confirmation of an issue. Resolution – Ticket closure with satisfactory return to normal operations. Page 104 of 108 EAST\144970176.3 Schedule C Minimum Wage Rates Texas adopts the federal minimum wage rate. Effective July 24, 2009, the federal minimum wage is $7.25 per hour. The Texas Minimum Wage Act does not prohibit employees from bargaining collectively with their employers for a higher wage. With specified restrictions, employers may count tips and the value of meals and lodging toward minimum wage. An employer does not need to pay an employee who lives on the business premises for on-call time in addition to assigned working hours. Under certain conditions, an employer may pay a sub-minimum wage to an employee who is a patient or client of the Texas Department of Mental Health and Mental Retardation, or to other individuals due to age (see the law for details), or to productivity impairments. Page 105 of 108 lsslibraries.com 2600 Tower Oaks Blvd. Suite 510 Rockville, MD 20852 800.638.8725 November 2, 2022 Aron Kulhavy, City Manager City of Huntsville 1212 Avenue M Huntsville, TX 77340 Re : Sole Source of Library Managed Services Dear Mr. Kulhavy: This letter serves as a sole source document for the products developed, licensed and distributed by Library Systems & Services. The complete outsourcing of municipal Library services, including a proprietary library management software tool – Library IQ and collection management, was developed and is distributed solely by Library Systems & Servcies. No other vendor licenses or provides the complete outsourcing of municipal Library services, including but not limited to the complete management of library operations and analytics, Library Information Systems, library back office management including finance and human resources management, complete collection management (selection, acquisition and cataloging) and library marketing and patron engagement/management. If you require additional information or further details please do not hesitate to contact me.. Best regards, Library Systems & Services Todd Frager Todd Frager CEO Page 106 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 6.a. Agenda Item: City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice on Cause No. 2130313 City of Huntsville v Walker County ESD#3. Initiating Department/Presenter: City Attorney Presenter: Leonard Schneider, City Attorney Recommended Motion: Not applicable Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: Page 107 of 108 CITY COUNCIL AGENDA 12/20/2022 Agenda Item Number: 6.b. Agenda Item: City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice on Walker County Special Utility District (SUD) Initiating Department/Presenter: City Attorney Presenter: Leonard Schneider, City Attorney Recommended Motion: Not applicable Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Leonard Schneider Aron Kulhavy Kristy Doll Associated Information: Page 108 of 108