MIN CC 11/11/2008CITY COUNCIL MEETING of NOVEMBER 11 2008 BOOK U 157 —
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 11TH DAY OF NOVEMBER, 2008, IN THE
CITY HALL, LOCATED AT 1212 AVENUE MIN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:OOPM.
The Council met in a regular session with the following:
COUNCILMEMBERS PRESENT: J. Turner, Wayne Barrett, Tom Cole, Charles Forbus, Clarence Griffin, Melissa Mahaffey,
Lanny Ray, Mac Woodward, Dalene Zander
OFFICERS PRESENT: Bill Baine, City Manager; Thomas Leeper, City Attorney; Stephanie Brim, City Secretary
REGULAR SESSION
CALL TO ORDER [6:OOpm]
Mayor Turner called the meeting to order.
PLEDGE OF ALLEGIANCE to US and TEXAS FLAGS, INVOCATION
Councilmember Griffin led the invocation.
'! PRESENTATION [6:13- 6:19pm]
". Ray Turco of Raymond Turco & Associates presented the executive summary and findings of the 2007 Citizen Survey.
PUBLIC HEARINGS
». a. Weatherford US - Enterpnse Project. The City Council held a public hearing to consider an ordinance nominating
Weatherford US, LP, 7587 Highway 75 South, Huntsville, Texas 77340 for the Texas Enterprise Zone Program as an
Enterprise Project. Tax and other incentives may also be discussed at this hearing. [6:19- 6:20pm]
None.
b. Amendment to TIRZ No. One. The City Council held a public hearing to consider an ordinance amending the project
plan for Tax Increment Reinvestment Zone Number One. [6:20-6:31pm]
Nancy Franklin. Mrs. Franklin spoke in opposition to amending the project plan.
's Danny Pierce. On behalf of Walker County Commissioners Court, Judge Pierce addressed items 7c and 7d, specifically
regarding the City not seeking input from the County.
Will Durham. Mr. Durham began comments, but was asked to address his comments to the Council during the Public
Comments section of the meeting.
PUBLIC COMMENTS (regarding agenda items only)
Brian Woodward. Mr. Woodward spoke on the lack of residential development at the Ravenwood Village project.
Ron Lance. Mr. Lange requested an open meeting at which citizens can ask questions regarding TIRZ/Ravenwood.
'.� Michelle McKenzie. Ms. McKenzie spoke on the proposed resolution for Tejas Housing and thanked the Council for their
consideration of this item.
Nancy Franklin. Mrs. Franklin spoke in opposition to rescission of 380 agreement.
Councilmember Ray moved to suspend the Rules of Procedure to briefly explain the items on the aaenda regarding
Councilmember Barrett inquired if the Rules needed to be suspended so Councilmembers can make comments and be
'..' treated as other citizens; Mayor Turner stated this was a legitimate suspension of the Rules, and if a Councilmember would like
to speak as a citizen, they were entitled to do so.
Councilmember Cole stated he would prefer the Rule be maintained and for Councilmember Woodward to leave the
room; the law as he understands it requires [a councilmember] to leave the dais and not participate in any way.
'! Councilmember Ray stated that the law simply requires that[a councilmember with a conflict of interest] not participate, butthat
!� the Council's Rules require that s /he leaves. Councilmember Cole stated that what he had read indicated that when a person
has a conflict of interest they should not influence [the discussion or vote] by their looks, demeanor or other nonverbal means.
'I Councilmember Woodward did leave the dais and Chambers and remained outside of Chambers during the Public
Comments section of the agenda.
The motion passed 7 -1 with Councilmember Woodward not present and Councilmember Cole voting against.
Councilmember Ray proceeded to comment on the referenced agenda items regarding Ravenwood Village, TIRZ No.
One, and the 380 agreement, clarifying thatthe public improvements were not included in the proposed changes, and that
CITY COUNCIL MEETING of NOVEMBER 11, 2008 BOOK "U"
158
the changes to the agreement are intended to reflect the updated realities of the project. Mr. Ray referenced the work
session of October 28, 2008 and the developer's [Jay Williams] own admission that the residential housing would not be
built, and as such the current agreements need to be modified to reflect the reality that the housing is not going to be built.
Mr. Ray also mentioned that the action proposed would not prohibit future action on other potential agreements, and that
the proposed changes would not affect the commercial development portion of the project.
Joey Chandler. Mrs. Chandler stated that Ravenwood would bring jobs needed for students.
Maureen McIntyre. Mrs. McIntyre spoke about the general conduct of the meetings.
Karl Davidson. Mr. Davidson spoke regarding the Ravenwood Village and TIRZ items, stating the Council should keep
what's best for the community at heart.
Dick Lindeman. Mr. Lindeman stated support for the Council in recognizing that the developer isn't going to live up to his
end of the agreement, and changing the paperwork to reflect what will be done.
John Wagamon. Mr. Wagamon stated he does not believe in TIRZ or other incentives to support a for - profit business.
Will Durham. Mr. Durham urged the Council to proceed with caution with respect to contractual obligations, and to move
forward on other things and let this project continue
Wayne Barrett. Councilmember Barrett provided his perspective on sales tax revenues and the local budgeting effects,
and the agreement regarding Ravenwood Village.
Jane Monday. Mrs. Monday spoke out of order, requesting a point of clarification on whether the TIRZ Board has recently
held a meeting.
John Wagamon. Mr. Wagamon spoke out of order, calling a point of order regarding the interruption by Mrs. Monday.
Wayne Barrett. Councilmember Barrett re- clarified that the items he will present in Executive Session are merely a preview
for the City Council.
[Note: Councilmember Woodward returned to Chambers and the dais at this time.]
Mac Woodward. Councilmember Woodward commented underthe City Council Rules of Procedure regarding Section 5.7
personal privileges, in that nothing in the law provides that a councilmember can call out another on a conflict of interest.
[Note: Three additional citizens did not wish to speak but submitted comment cards which will be copied to the City
Council.]
CONSENT AGENDA
a. Approve Ordinance 2009 -04, authorizing certain FY 2007 -08 budget amendments.
b.Approve Ordinance 2009 -05, authorizing certain FY 2008 -09 budget amendments.
c. Authorize the Huntsville Fire Department to accept the Texas Commission on Fire Protection grant in the amount of
$2000 to purchase twenty (20) sections of 1 -3/4 inch fire hose.
passed 9 -0.
STATUTORY AGENDA
a. Presentation, discussion and /or possible action on Resolution No. 2009 -01A, to provide supportforthe "Senior Villages"
Community project, and to authorize the City Manager to enter into an agreement for the exchange of property with Tejas
Housing, HISD and the City (as defined in staff memo).
Mr. R. J. Collins of Tejas Housing LP has requested a Resolution of Support for the aforementioned project and will
present his request and information to the City Council. In conjunction with the Resolution, a property exchange between
the City, Tejas Housing LP and HISD is a component of the agreement.
b. Presentation, discussion and /or possible action on Ordinance 2009 -06, nominating Weatherford, US, LP for Enterprise
Project Status.
Nominating Weatherford as an Enterprise Project Status will allow them to apply for State programs including job training
assistance.
Councilmember Forbus moved to approve Ordinance 2009 -06 nominating Weatherford US LP for Enterprise Proiect
Status: and Councilmember Griffin seconded the motion. The motion Passed 9 -0.
[Note: Councilmember Woodward, having filed an affidavit of conflict of interest, left the dais and Chambers.]
c. Presentation, discussion and /or possible action on Ordinance 2009 -07, amending or repealing Tax Increment
Reinvestment Zone Number One, created by Ordinance 2004 -08 -03.1 (2004 -16), excluding that area designated for the
Ravenwood Village Project.
up item 7c following Executive Session.
i �_
L
CITY COUNCIL MEETING of NOVEMBER 11 2008 BOOK U 159
i� d. Presentation, discussion and /or possible action on Ordinance 2009 -08, amending ormodifying Ordinance 2007 -14 and'��
the Agreements with Ravenwood Village. Ltd., to reflect the following:
i
!I (1) modification of the April 24, 2007 Development Agreement with Ravenwood Village Ltd. regarding the Tax
Increment Reinvestment Zone (TIRZ) to eliminate the 4.48 million dollars of TIRZ funds designated for "Public Roads
(Residential Development)" given that Ravenwood Village Ltd. is not constructing the residential housing for which the
funds were designated.
against.
The original motion passed 6 -2 with Councilmembers Barrett and Griffin voting against.
(2) modification or rescission of the April 24, 2007 Performance Agreementwith Ravenwood Ltd. regarding Texas Tax
Code Chapter 380 sales tax rebates ( "the 380 Agreement') given the changes in the project and the reduced benefits to
the City of Huntsville.
Option 1: rescission of the 380 Agreement completely.
Option 2: rescission of the 380 Agreement, provided that the City will honor any formal agreements with Ravenwood
Village tenants or retailers (such as Target) existing as of October 28, 2008, the amount of any tax abatement involved
being subject to final approval by the City.
The motion by Mayor Turner Passed 8 -0.
[Note: Councilmember Woodward returned to Chambers and the dais following this item.]
e. Presentation, discussion and /or possible action on Ordinance 2009-09, ratifying the Entergy rate case settlement.
On or about September 26, 2007, Entergy Gulf States, Inc. filed a Statement of Intentto increase electric rates. Cities have
!� exclusive original jurisdiction over electric rates, operations and services within their respective municipalities. On October
16, 2007, Huntsville suspended the rate increase within its jurisdictional limits and authorized the City's participation with
other similarly situated cities in the EGSI service area ( "EGSI Cities ").
Entergy also filed an application with the Public Utility Commission ( "PUC ") to increase electric rates. The EGSI Cities
steering committee and some other participants in the PUC case have proposed terms of a settlement (the "Non -
Unanimous Stipulation ") and seek PUC approval. Some other participants proposed a different settlement.
On June 3, 2008, Council approved a Resolution joining other EGSI Cities in support of a Non - Unanimous stipulation to
resolve the rate case.
Councilmember Mahaffey moved to adopt Ordinance 2009 -09 ratifying the Entergy rate case settlement: and
Councilmember Ray seconded the motion. The motion passed 9 -0.
f. Presentation, discussion and/or possible action on the public safety services interlocal agreement with Walker County.
Councilmember Zander moved to approve the public safety services interlocal agreement with Walker County: and
Councilmember Ray seconded the motion. The motion passed 9 -0.
MAYORICITY COUNCILMEMBERICITY MANAGER REPORT
a. Presentation, discussion and /or possible action on appointment of Councilmember Melissa Mahaffey to the City Council
Finance Committee.
[Note: Councilmember Mahaffey remained atthe
but did not participate in the vote on this item.]
b. City Manager Bill Baine presented a short report on the status of the (1) Hurricane Ike = expenses incurred totaled
CITY COUNCIL MEETING of NOVEMBER 11, 2008 BOOK "U" 160
around $1.3M, with about $450,000 was still under contention as far as reimbursement from FEMA ($72,000 - debris 1i
removal contractor, $250,000 = generators, with the remainder being paperwork/accounting issues). Mr. Baine estimated
that about half would be reimbursable; (2) North East Fire Station = signed contract with architect, will dose on the land on i.
Thursday; (3) have scheduled a public hearing on November 24, 2008 for a potential infrastructure grant funding !.
applications; (4) Saturday is junk tire day at the Transfer Station; and (5) the sidewalk funding that the Council voted to i.
close out is needed on another sidewalk project, the details of which will be forthcoming.
No action was taken on this item.
PUBLIC COMMENTS (Open.)
John Wagamon. Mr. Wagamon posed hypothetical business question to the City Council, regarding business/contractual
issues.
Melissa Mahaffey. Councilmember Mahaffey spoke on behalf of the Council, saying thank you to military veterans.
Brian Woodward. Mr. Woodward inquired if anyone has talked to TDHCA [Texas Department of Housing and Community
Affairs] to see if they [the terms in the "Senior Villages" resolution passed earlier] are legal?
MEDIA INQUIRIES
None.
RECESS [9:48- 9:57pm]
EXECUTIVE SESSION [9:57- 10:34pm]
City Council held a closed session.
11a. As authorized by Texas Government Code, Chapter 551, Section 551.087 — deliberation regarding economic
development negotiation; specifically items concerning additional development proposals for the TIRZ No. 1.
[Note: Both Mayor Turner and Mayor Pro Tern Woodward have filed affidavits regarding this item; both left the dais and
Chambers and were neither present for nor participated in the discussion or action on this item.]
Councilmember Zander moved to nominate Councilmember Mahaffey as the Presiding Officer for this portion of the
meeting: and Councilmember Forbus seconded the motion. The motion passed 7 -0.
11b. As authorized by Texas Government Code, Chapter 551, Section 551.074 — personnel matters regarding the
appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee;
specifically a separation agreement with the Public Utilities Director.
This item was pulled from consideration and not discussed in Executive Session.
7c. Presentation, discussion and /or possible action on Ordinance 2009 -07, amending or repealing Tax Increment '
Reinvestment Zone Number One, created by Ordinance 2004 -08 -03.1 (2004 -16), excluding that area designated for the
Ravenwood Village Project.
1,
[Note: Councilmember Woodward did not enter into Executive Session with the remainder of Council, and was not P.
present for the remainder of the meeting.]
RECONVENE [10:35pm]
City Council reconvened in Open Session.
11 a. As authorized by Texas Government Code, Chapter 551, Section 551.087 — deliberation regarding economics
development negotiation; specifically items concerning additional development proposals for the TIRZ No. 1.
No action was taken on this item.
7c. Presentation, discussion and /or possible action on Ordinance 2009 -07, amending or repealing Tax Increment
Reinvestment Zone Number One, created by Ordinance 2004 -08 -03.1 (2004 -16), excluding that area designated for the
Ravenwood Village Project.
Councilmember Ray moved to table this item. and Councilmember Barrett seconded the motion. The motion passed 7 -1
with Councilmember Cole voting against
ADJOURNMENT [10:38pm]
Mayor Turner adjourned the meeting.
i AZnmeQ ty Secretary