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4-7-2020 packet CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Notice is hereby given of a Regular Meeting of the Huntsville City Council to be held April 7, 2020, beginning at 6:00 P.M. by teleconferencing for the purpose of considering the following agenda items. All agenda items are subject to action. The Chambers at City Hall will be closed. The Governor of Texas has issued an Executive Order with guidelines for the temporary suspension of certain portions of the Texas Open Meetings Act in order to avoid social gatherings of more than ten (10) people during the COVID-19 virus pandemic. This allows cities to have council meetings via teleconference and to conduct executive sessions via teleconference. These actions are being taken to mitigate the spread of the virus by avoiding meetings that bring people into a group setting and in accordance with Section 418.016 of the Texas Government Code. Telephonic capabilities will be utilized to allow individuals to address the City Council. Members of the public are entitled to participate remotely via Toll-Free Dial-in Number: 1-866-899-4679; Access code: 456- 309-357 , or watch the meeting from your computer, tablet or smartphone: www.HuntsvilleTX.gov/Meetings. An electronic copy of the agenda can be found at the following link: www.HuntsvilleTX.gov/AgendaCenter and posted outside on the bulletin board in front of City Hall. MAIN SESSION [6:00 P.M.] CALL TO ORDER (Roll Call) INVOCATION AND PLEDGES BY MAYOR PRO TEM - U.S. Flag and Texas Flag 1. PRESENTATION a. Hear presentation and consider approval of the audit for FY18-19 from Pattillo, Brown, and Hill, LLP, CPAs. [Steve Ritter, Finance Director] 2. CONSENT AGENDA Public comments will be called for by the presiding officer 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. Approve the minutes of the City Council meeting held on March 17, 2020. [Brenda Poe, City Secretary] b. Consider authorizing the City Manager to enter into an agreement with Schaumburg & Polk, Inc. for professional engineering services for FY19-20 Waterline Replacement Projects. [Y. S. “Ram” Ramachandra, City Engineer] c. Consider adoption of Ordinance 2020-20 to amend the budget for FY 19-20 and/or CIP Project budgets. [Steve Ritter, Finance Director] d. Consider authorizing the City Manager and the City Attorney to draft and enter into an agreement with the Community Organization for Missionary Endeavor, Inc. (C.O.M.E. Center) to waive construction-related permit fees. [Dee Howard Mullins, Councilmember At-large Pos. 2] 3. STATUTORY AGENDA a. SECOND READING - Consider adoption of Ordinance 2020-18 to approve regulating the operation of Personal Mobility Devices, second reading. [Darryle Slaven, Asst. Chief of Police] Paul Davidhizar, Position 1 At-Large Dee Howard Mullins, Position 2 At-Large Clyde D. Loll, Position 3 At-Large Mari Montgomery, Position 4 At-Large Daiquiri Beebe, Ward 1 Russell Humphrey, Ward 2 Blake Irving, Ward 3 Mayor Pro Tem Joe P. Rodriquez, Ward 4 b. FIRST READING - Consider authorizing the City Manager to approve a purchasing agreement with FleetCor for Fuelman fuel cards for off-site point of sale fueling of City vehicles, first reading. [Brent S. Sherrod, P.E., Director of Public Works] 4. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY a. Consider approving nominees for City boards, committees, and commissions. [Andy Brauninger, Mayor] b. FIRST READING - Consider and possible action to adopt Ordinance No 2020-22 approving the settlement of a proposed rate increase of Centerpoint Energy Resources Corp in the Beaumont/East Texas Division, first reading. c. Consider Ordinance 2020-23 amending Chapter 42 “Taxation” to temporarily modify the Hotel Occupancy Tax (HOT) reporting and payment schedule. [Aron Kulhavy, City Manager] d. Discussion, consideration and possible action on Coronavirus (COVID-19) and to authorize the Mayor to extend any Declaration of Disaster past the period determined by City Council on March 17, 2020 by adoption of Ordinance 2020-21. [Andy Brauninger, Mayor] 5. REQUESTS FOR CITIZEN PARTICIPATION An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken. Judith Zeigler would like to discuss accessibility. 6. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA 7. ITEMS OF COMMUNITY INTEREST (Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City staff, for which no action will be discussed or taken.) 8. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, 551.071 to receive legal advice on the annexation of Area E and the annexation of areas “A” thru “G” and lawsuits filed in Cause No. 1929442, Billingsley, et al v City of Huntsville, regarding said annexation. [Leonard Schneider, City Attorney] 9. RECONVENE Take action on items 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, Brenda Poe, City Secretary, do hereby certify that a copy of the April 7, 2020 City Council agenda 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: 4/2/2020 TIME OF POSTING: 4:45 pm ____________________________ TAKEN DOWN: Brenda Poe, City Secretary Brenda Poe Agenda Item #1a Item/Subject: Hear presentation and consider approval of the audit for FY18-19 from Pattillo, Brown, and Hill, LLP, CPAs. Initiating Department/Presenter: Finance Presenter: Steve Ritter, Finance Director Recommended Motion: Move to accept the FY 18-19 audit from Pattillo, Brown and Hill, LLP, CPAs. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: By Charter and State Statutes the City is required to have a financial audit annually by a Certified Public Accountant. The Finance Committee received a presentation at its March 17, 2020 meeting. The CPA firm of Pattillo, Brown and Hill have performed the audits for the 7 previous fiscal years and the City Council approved engaging/renewing Pattillo, Brown & Hill as the City’s auditors for the FY 18- 19 at its April 3, 2018 meeting. This was the eighth year for the firm as the City’s auditors. Previous Council Action: None Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: • A copy of the audit is provided separately with packets 4/7/20 Agenda Item: 1a CITY COUNCIL AGENDA MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 17th DAY OF MARCH 2020, 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 regular session with the following: COUNCILMEMBERS PRESENT: Daiquiri Beebe (arrived at 6:01 p.m.), Blake Irving, Russell Humphrey, Dee Howard Mullins, Paul Davidhizar, Joe P. Rodriquez, Mari Montgomery, Clyde D. Loll COUNCILMEMBERS ABSENT: Andy Brauninger OFFICERS PRESENT: Aron Kulhavy, City Manager; Brenda Poe, City Secretary; Leonard Schneider, City Attorney MAIN SESSION [6:00 P.M.] CALL TO ORDER – Mayor Pro Tem Rodriquez 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 Davidhizar gave the invocation and Mayor Pro Tem Rodriquez led the pledges. Mayor Pro Tem Rodriquez read a proclamation in support of the 2020 Census. 1. CONSENT AGENDA Public Comments will be called for by the presiding officer 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. Approve the minutes of the City Council meeting held on March 3, 2020. [Brenda Poe, City Secretary] b. Consider authorizing the City Manager to approve an annual purchase order of various road and drainage materials from Vulcan Materials for a one-year term with option to renew for one year. [Brent Sherrod, P.E., Director of Public Works] c. SECOND READING - Consider approval of Ordinance 2020-17 denying CenterPoint Energy rate increase application, second reading. [Leonard Schneider, City Attorney] Councilmember Davidhizar made a motion to approve the consent agenda; the motion was seconded by Councilmember Montgomery. The motion was adopted, 8-0. 2. STATUTORY AGENDA a. Consider authorizing the City Manager to apply for the Houston-Galveston Area Local Development Corporation (H-GALDC) Community Enhancement Grant, designating the City Manager as the City’s Authorized Representative, and adopting Resolution 2020-19 in support of same. [Tammy Gann, Director of Economic Development/Special Projects; Tracy Chappell, Main Street Manager; Kristie Hadnot, Grants Manager] Councilmember Davidhizar made a motion to authorize the City Manager to apply for a Houston- Galveston Area Local Development Corporation (H-GALDC) Community Enhancement Grant for $12,025, plus $12,025 in matching funds, designate the City Manager as the City’s Authorized Representative, and adopt Resolution 2020-19 in support of same; the motion was seconded by Councilmember Montgomery. The motion was adopted, 8-0. b. FIRST READING - Consider adoption of Ordinance 2020-18 to approve regulating the operation of Personal Mobility Devices, first reading. [Darryle Slaven, Asst. Chief of Police] First reading, no action taken. 3. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY a. Consider proposal by Entergy Texas Inc. to adopt a mark-to-market tax position on existing purchase power agreements and receive an accounting order from the Public Utility Commission. [Leonard Schneider, City Attorney] No action was taken. b. Discussion, consideration and possible action on Coronavirus (COVID-19) and to authorize the Mayor to extend any Declaration of Disaster past the original 7 days for a period to be determined by City Council by adoption of Ordinance 2020-19. [Andy Brauninger, Mayor] Councilmember Montgomery made a motion to approve the Ordinance of the City Council of the City of Huntsville Texas extending the disaster declaration issued by Mayoral Proclamation on March 13, 2020, in response to the novel Coronavirus now designated as COVID-19 and authorizing public expenditures and other findings; the motion was seconded by Councilmember Howard Mullins. The motion was adopted, 8-0. 4. REQUESTS FOR CITIZEN PARTICIPATION An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken. None. 5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA None 6. ITEMS OF COMMUNITY INTEREST (Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City staff, for which no action will be discussed or taken.) Mayor Pro Tem Rodriquez said the City of Huntsville is encouraging all citizens to use online services to pay bills, fines or tickets, to request permits and follow all major announcements at HuntsvilleTX.gov. While several locations are closed to the public, staff is still available to assist via email and phone. Reach out today to get help with City business. Councilmember Howard Mullins said citizens should have received their 2020 Census in the mail by now. She encouraged citizens to complete the application online, by phone or by mail. There are return envelopes included that can be left for mail carriers to send off from your mailbox. Everyone counts, so count everyone! 7. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, 551.071 to receive legal advice on the annexation of Area E and the annexation of areas “A” thru “G” and lawsuits filed in Cause No. 1929442, Billingsley, et al v City of Huntsville, regarding said annexation. [Leonard Schneider, City Attorney] The Council adjourned to Executive Session at 6:31 p.m. 8. RECONVENE The Council reconvened at 6:54 p.m. ADJOURNMENT Mayor Pro Tem Rodriquez adjourned the meeting without objection at 6:54 p.m. Brenda Poe, City Secretary ATTEST: CITY OF HUNTSVILLE ________________________________ ________________________________ Brenda Poe, City Secretary Joe Rodriquez, Mayor Pro Tem Agenda Item #2b Item/Subject: Consider authorizing the City Manager to enter into an agreement with Schaumburg & Polk, Inc. for professional engineering services for FY19-20 Waterline Replacement Projects. Initiating Department/Presenter: Engineering Presenter: Y. S. “Ram” Ramachandra, City Engineer Recommended Motion: Move to authorize the City Manager to enter into an agreement with Schaumburg & Polk, Inc. for professional engineering services for FY19-20 Waterline Replacement 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. Discussion: The City has been replacing existing undersized and deteriorated waterlines in the Avenues and other older parts of the City each year to the extent the funding is made available for this purpose. Several such aged, undersized and deteriorated segments have been replaced in the last several years. Replacing and upsizing will help reduce waterline breaks, associated maintenance costs and improves water circulation and pressure in the water distribution system to serve domestic and fire protection needs. As a continuation of upgrading the water infrastructure, the City Council has funded, in FY 2019-2020, to replace existing waterlines along the following segments: 1) 15th Street (University Ave to Ave J) – 12” – Approximately 500 Linear Feet 2) 15th Street (Ave I to Bearkat Blvd) – 8” to 12” – Approximately 1,000 Linear Feet 3) Avenue R (16th Street to 17th Street) – 6” – Approximately 600 Linear Feet 4) Gazebo Street – 3” to 6” – Approximately 2,300 Linear Feet Schaumburg & Polk, Inc. (SPI), Houston, TX has provided a scope and fee proposal, upon City’s request, to provide professional engineering services consisting of surveying and waterline replacement design. A copy of finalized scope and fee proposal and associated attachments received from Schaumburg & Polk, Inc. are attached to this agenda item. Total fee proposed by Schaumburg & Polk, Inc. for professional engineering services is $64,410. Schaumburg & Polk, Inc. is well suited to carry out the design services for these waterline replacement projects. Schaumburg & Polk, Inc. has previously provided services in a quality and cost-effective manner on similar projects last year. Engineering Agreement format that will be used to execute the agreement with Schaumburg & Polk, Inc. is also attached to this agenda item. Upon approval of the engineering agreement by the Council and issuing a Notice to Proceed, Schaumburg & Polk, Inc. will be completing the design in approximately four (4) months. 4/7/20 Agenda Item: 2b CITY COUNCIL AGENDA Agenda Item #2b Funds for construction in the amount of $555,000 is budgeted in FY 2019-2020 to meeting design and construction costs. Previous Council Action: The City Council approved a total amount of $555,000 in FY 2019-2020 budget for developing waterline replacement design and to construct the projects. Financial Implications: ☒Item is budgeted: 703 – 70319 – 62300 In the amount of $300,000 703 – 70320 – 62300 In the amount of $80,000 703 – 70321 – 62300 In the amount of $175,000 Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: • Location Map of the Proposed Project segments • Scope & Fee Proposal from Schaumburg & Polk, Inc. • Engineering Agreement format UV2821 UV1791 UV1374 UV247 UV1374 UV1791N Æÿ75 Æÿ30 Æÿ30 Æÿ30Æÿ75 Æÿ30 Æÿ30 Æÿ30 §¨¦45 §¨¦45 §¨¦45 §¨¦45 Spring Lake Club Lake CITY OF HUNTSVILLE, TXENGINEERING DEPARTMENT / GIS DIVISION 8 CREATED DATE: 3/30/2020 LOCATION MAP - MISCELLANEOUS WATERLINE REPLACEMENTPROJECTS - FY 2019-2020 1 in = 3,000 ft 0 3,000 6,0001,500 Feet On 8.5 x 11 inch Print On Any Print Size Service Layer Credits: The City of Huntsville, TX 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/438/City-Maps PROPOSED 12" WATERLINEREPLACEMENT FROMUNIVERSITY AVE TO AVE J LEGEND PROPOSED WATERLINE REPLACEMENT SEGMENTS CITY LIMITS PROPOSED 12" WATERLINEREPLACEMENT FROMAVE I TO BEARKAT BLVD PROPOSED WATERLINE REPLACEMENTFROM 3" TO 6" ALONG GAZEBO ST PROPOSED 6" WATERLINEAVE R, BEGINNING AT 17TH ST 11767 Katy Frwy, Suite 900 | Houston, TX 77079 P: 281.920.0487 | F: 281.920.9924 www.SPI-ENG.com TBPE Firm No. 000520 March 17, 2020 Y. S. "Ram" Ramachandra, P.E., CFM City Engineer City of Huntsville 448 State Highway 75 North Huntsville, Texas 77320 Re: FY 19-20 Miscellaneous Waterline Replacement Project COH PN’s: 20-10-01, 20-10-02 and 20-10,03 Dear Mr. Ramachandra: We are pleased to provide this proposal for professional civil engineering services for the proposed City of Huntsville FY 19-20 Miscellaneous Waterline Replacement Project. The project consists of the design of approximately 4,400 linear feet of waterline as follows: • 15th Street (University Ave to Ave J) – 12” – Approximately 500 LF • 15th Street (Ave I to Bearkat Blvd) – 8” to 12” – Approximately 1,000 LF • Ave R (17th Street to 16th Street) – 6” – Approximately 600 LF • Gazebo Street – 3” to 6” – Approximately 2,300 LF Design Phase Services include the preparation of a preliminary plan submittal and final construction documents, including construction plans and a project manual, suitable for bidding and construction. The City will provide SPI with a limited topographic survey and right-of-way information that is to be used as the base drawing for the design. Construction drawings will be plan-view only, but will provide elevation information at proposed sanitary and drainage crossings. A detailed list of the design services to be provided is included in Attachment A of this letter. Bid Phase and Construction Phase services are also included as part of this proposal, as detailed in Attachment A. Property acquisition, topographic survey, platting, utility locates, geotechnical, and landscape design services are not included as part of this proposal. Our services are proposed to be given for a lump sum fee of $64,410.00. A summary of the services and fees is provided below, and in more detail in Attachment A: Project Management and Coordination $3,500.00 Preliminary Engineering $23,820.00 Final Engineering $19,775.00 Bid Phase Services $5,735.00 Construction Phase Services $7,710.00 Finalize Record Documents $1,370.00 Reimbursables (Not to Exceed) $2,500.00 Total Fee $64,410.00 Upon receipt of the survey from the City, SPI will complete the design-phase services as follows: Duration (weeks) Receipt of Survey file from City, Project Kickoff 0 Preliminary Plan Submittal 4 City Review 2.5 Final Plan Submittal 4 City Review 2.5 Finalize Construction Documents for Bid 2 Total Weeks for Bid-Ready Project 15 We look forward to working with the City on this project, and thank you for the opportunity. Please call me at (281) 920-0487 if you have any questions. Sincerely, Mark C. Dessens, P.E. Vice President Attachment A - Detailed Scope of Services and Level of Effort Estimate 02 05 07 17 TASKS E 7 E 4 E 2 AA Reimbur- (EJCDC Standard)$225 $155 $115 $70 sable PRELIMINARY DESIGN PHASE 1. Prepare final design criteria, preliminary drawings, outline specifications, and written descriptions of the Project.0 days Project kickoff meeting and initial field visit 6 6 Review survey upon receipt, site visit and review options with City 8 12 Base Drawings with Preliminary Design (800LF per sheet, 7 sheets total)8 20 20 Conflict Identification (TCEQ separation water/sewer, separation for excavation & directional installation, street reconstruction)2 6 2 2. Advise Owner if additional reports, data, information, or services are necessary and assist Owner in obtaining such reports, data, information, or services.1 days 2 2 3.Prepare an opinion of probable Construction Cost 2 days 2 6 6 4.Furnish review copies of the Preliminary Design Phase documents to Owner, and review with Owner.1 days 6 4 5. Revise the Preliminary Design Phase documents in response to Owner's comments, as appropriate, and furnish to Owner the revised Preliminary Design Documents, including revised opinion of probable Construction Cost.2 days 4 6 4 6.QA/QC review and revisions 1 days 2 2 2 7.Coordination with City Surveyor 1 days 2 2 2 42 66 36 $9,450 $10,230 $4,140 $0 $0 FINAL DESIGN PHASE 1. Prepare final Drawings and Specifications indicating the scope, extent, and character of the Work to be performed and furnished by the Contractor.0 days Cover 1 2 General Notes 2 4 Plan Sheets (7)8 20 10 Details 4 4 4 Technical Specifications 2 3 3 Contract Documents 2 4 2 2. Provide technical criteria, written descriptions, and design data for Owner's use in filing appications for permits from or approvals of governmental authorities having jurisdiction to review or approve the final design of the Project; assist Owner in consultations with such authorities; and revise the Drawings and Specifications in response to directives from such authorities.1 days 2 2 3.Finalize the opinion of probable Construction Cost as needed.2 days 4 6 2 4. Prepare and furnish Bidding Documents for review by Owner, its legal counsel, and other advisors, and assist Owner in the preparation of other related documents. 2 days 4 4 6 5. Revise the Bidding Documents in accordance with comments and instructions from the Owner, as appropriate, and submit final copies of the Bidding Documents, a revised opinion of probable Construction Costs to Owner.1 days 4 4 2 6.QA/QC 1 days 2 4 35 57 23 6 $7,875 $8,835 $2,645 $420 $0 BIDDING PHASE 1.Prepare agenda for, and attend pre-bid meeting 1 days 8 1 2. Issue Addenda as appropriate to clarify, correct, or change the Bidding Documents. 0 days 1 2 3.Prepare Bid tabulation and recommendation of award letter 1 days 1 1 2 4.Prepare contracts for signatures and execution 1 days 2 2 2 5.Attend Pre-Construction meeting and prepare pre-construction agenda 1 days 6 2 6.Notice to Proceed 0 days 1 18 7 4 2 $4,050 $1,085 $460 $140 $0 $19,775 $5,735 04 03 02 SCOPE OF WORK $23,820 Duration BUDGET Level of Effort City of Huntsville FY 19-20 Waterline Replacement Project Final LOE Page 1 of 2 Attachment A - Detailed Scope of Services and Level of Effort Estimate 02 05 07 17 TASKS E 7 E 4 E 2 AA Reimbur- (EJCDC Standard)$225 $155 $115 $70 sable SCOPE OF WORK Duration BUDGET Level of Effort City of Huntsville FY 19-20 Waterline Replacement Project CONSTRUCTION PHASE 1. Make visits to the Site at intervals appropriate to the various stages of construction, as Engineer deems necessary, to observe the progress and quality of the Contractor's executed Work.1 days 6 2. Issue necessary clarifications and interpretations of the Contract Documents as appropriate to the orderly completion of the Contractor's work.1 days 2 2 3. Recommend and prepare Change Orders and Work Change Directives to Owner, as appropriate.1 days 2 2 2 4. Review and approve or take other appropriate action in respect to Shop Drawings and Samples and other data which Contractor is required to submit.1 days 2 4 4 5. In company with Owner and Contractor, conduct an inspection to determine if the Work is substantially complete. If Engineer considers the Work substantially complete, Engineer shall deliver a certificate of Substantial Completion to Owner and Contractor. 1 days 6 2 6. Conduct a final inspection to determine if the completed Work of Contractor is acceptable so that Engineer may recommend, in writing, final payment to Contractor. 1 days 6 2 24 6 12 $5,400 $930 $1,380 $0 $0 Finalize 1.Record drawings 1 days 1 4 2.Final quantity and change order 1 4 2 8 $450 $0 $920 $0 $0 Project Management & Coordination and Reimbursable 1.Project Management and Coordination 0 days 3500 1.Reimbursable - Not to Exceed 0 days 2500 $0 $0 $0 $0 $6,000 $64,410 $7,710 $1,370 05 $6,000 07 06 Final LOE Page 2 of 2 AGREEMENT BETWEEN CITY AND ENGINEER FOR PROFESSIONAL SERVICES THIS AGREEMENT made and entered into by and between CITY OF HUNTSVILLE, hereinafter called the OWNER, and (*NAME OF THE FIRM, CITY, STATE*), hereinafter called ENGINEER, WITNESSETH that whereas the OWNER intends to construct (*PROJECT NAME AND NUMBER*) hereinafter called the PROJECT. The effective date of this agreement is _____________________. NOW, THEREFORE, the OWNER and ENGINEER for the considerations hereinafter set forth, agree as follows: SECTION 1- RESPONSIBILITY OF THE ENGINEER The ENGINEER shall serve as the OWNER's professional representative in the planning, design, bidding, and construction phases of the PROJECT as outlined in Proposal dated Month XX, 201X from (*NAME OF THE FIRM*) (the proposal is hereinafter referred to as Exhibit 1), and shall give consultation and advice to the OWNER during the performance of its services. In the event of conflict between any provisions in this Agreement and any provisions in Exhibit 1, the provisions in this Agreement will control. The ENGINEER shall perform services necessary under this AGREEMENT in a competent and professional manner with the professional skill and care ordinarily provided by competent engineers practicing in the same or similar locality and under the same or similar circumstances and professional license, as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer. The OWNER's approval of drawings, design, specifications, reports incidental engineering services or materials furnished hereunder shall not in any way relieve the ENGINEER of liability for the technical adequacy of its services nor shall the OWNER's approval or acceptance of the ENGINEER' s services be construed as a waiver of any rights under this AGREEMENT. The ENGINEER shall be and shall remain liable, in accordance with applicable law, for all damages to the OWNER t o t h e e xt en t caused by the ENGINEER's negligent performance of any of the services furnished under this AGREEMENT, except for errors, omissions or other deficiencies to the extent attributable to the OWNER or any third party. The ENGINEER shall not be responsible for any time delays in the PROJECT caused by circumstances beyond its control. SECTION 2- CHARACTER AND EXTENT OF BASIC SERVICES 2.1. General: The ENGINEER shall serve as the OWNER's professional representative in the planning, design, bidding and construction phases (including observation of construction) of the PROJECT as outlined in Exhibit 1, and shall give consultation and advice to the OWNER during the performance of its services. Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 2 of 9 The OWNER and ENGINEER acknowledge and anticipate that the timing and development of any AUTHORIZED SERVICES may depend on the availability of financing and the needs of the OWNER; therefore, the ENGINEER shall not proceed with any phase of engineering services without specific written authorization by the OWNER. 2.1.1 Copyright or Patent Infringement: The ENGINEER shall indemnify and hold harmless OWNER from actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and he shall hold harmless the OWNER from loss or damage resulting therefrom, providing however, that the OWNER within five (5) days after receipt of any notice of infringement or of summons in any action therefor shall have forwarded the same to the ENGINEER in writing. 2.1.2 Insurance: The ENGINEER shall secure and maintain such insurance as will protect it from claims under the Workmen's Compensation Acts and from claims for bodily injury, death, or property damage which may arise from the performance of its services under this Agreement and shall provide a certificate of said insurance to the OWNER to attach to this Agreement. The ENGINEER shall furnish proof of Professional Liability Coverage for the ENGINEER for this PROJECT in the amount of One Million Dollars to the OWNER within 15 days after this Agreement is executed and shall continue to maintain said insurance for this PROJECT. ENGINEER agrees to maintain both types of insurance during the duration of the PROJECT. 2.2 Planning, Designing, Bidding Support and Construction Support. Refer to Exhibit 1. SECTION 3- ADDITIONAL SERVICES OF ENGINEER If authorized in writing by the OWNER, the ENGINEER shall provide Additional Services that are not already a part of Exhibit 1 and these will be paid by the OWNER a fee negotiated between the OWNER and the ENGINEER. It is agreed that if any of the additional services listed in this Section 3 are a part of Exhibit 1, then Exhibit 1 controls. Any additional services authorized (including services in addition to the ones listed below) will be in writing and signed by both Parties and attached to this Agreement: 3.1 Preparation of applications and supporting documents for governmental grants, loans or advances in connection with the PROJECT; preparation or review of environmental assessments and impact statements; and assistance in obtaining approvals of authorities having jurisdiction over the anticipated environmental impact of the PROJECT. 3.2 Services to perform geotechnical investigations, materials testing, engineering surveys or topographic surveys for design, to make measured drawings of or to investigate existing conditions or facilities, or to verify the accuracy of drawings or other information furnished by the OWNER. 3.3 Services resulting from significant changes in general scope of the PROJECT or its design including, but not limited to, changes in size, complexity, OWNER's schedule, or character of construction; and revising previously accepted studies, reports, design documents or Contract Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 3 of 9 Documents when such revisions are due to causes beyond the ENGINEER's control. 3.4 Providing renderings or models for the OWNER's use. 3.5 Preparing documents for alternate bids requested by OWNER for work which is not executed or documents for out of sequence work. 3.6 Investigations involving detailed consideration of operations, maintenance and overhead expenses; and the preparation of rate schedules, earnings and expense statements, feasibility studies, appraisals and valuations; detailed quantity surveys of material, equipment and labor; and audits or inventories required in connection with construction performed by the OWNER. 3.7 Furnishing the services of special consultants for other than the normal civil, structural, mechanical and electrical engineering and normal architectural design incidental thereto, such as consultants for communications, acoustics, and landscaping. 3.8 Services in connection with change orders to reflect changes requested by OWNER if the resulting change in compensation for Basic Services is not commensurate with the additional services rendered, and services resulting from significant delays, changes or price increases occurring as a direct or indirect result of material, equipment or energy shortages. 3.9 Services during out of town travel required of the ENGINEER other than visits to the PROJECT site or to regulatory agency offices having jurisdiction over the PROJECT. 3.10 Additional or extended services during construction made necessary by (1) work damaged by fire or other cause during construction, (2) a significant amount of defective or neglected work of any Contractor, (3) prolongation of the contract time of any prime contract by more than sixty (60) days, (4) acceleration of the work schedule involving services beyond normal working hours, and (5) default by any Contractor. 3.11 Construction staking for the PROJECT. 3.12 Land surveys and office computations required to develop plats and metes and bounds descriptions for easement or property acquisition. 3.13 Preparation of operating and maintenance manuals. 3.14 Services after completion of the Construction Phase, such as inspections during any guarantee period and reporting observed discrepancies under guarantees called for in any contract for the PROJECT. 3.15 Preparing to serve or serving as a consultant or witness for OWNER in any litigation, public hearing or other legal or administrative proceeding involving the PROJECT. 3.16 Additional services in connection with the PROJECT, including services normally furnished by the OWNER and services not otherwise provided for in this Agreement. Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 4 of 9 3.17 If requested by the OWNER or recommended by the ENGINEER and agreed to in writing by the OWNER, a Resident Project Representative and assistants will be furnished and will act as directed by the ENGINEER in order to provide more extensive representation at the PROJECT site during the Construction Phase. 3.18 Through more extensive on site observations of the work in progress and field checks of materials and equipment by the Resident Project Representative (if furnished) and assistants, the ENGINEER shall endeavor to provide further protection for OWNER against defects and deficiencies in the work, but the furnishing of such Resident Project Representation will not make the ENGINEER responsible for construction means, methods, techniques, sequences or procedures or for safety precautions or programs, or for Contractor(s)' failure to perform the construction work in accordance with the Contract Documents. 3.19 Reimbursable Services of the ENGINEER: Reimbursable services shall include the following items when authorized in writing by the OWNER: transportation and subsistence of principals and employees on special trips to the PROJECT or to other locations; long distance telephone and telegraph calls as required to expedite the work of the Contractor; reproduction of drawings and specifications. SECTION 4- THE OWNER’S RESPONSIBILITIES 4.1. THE OWNER AGREES to provide the ENGINEER with complete information concerning the requirements of the PROJECT and to perform the following services: 4.2 Access to the Work: The OWNER shall guarantee access to and make all provisions for the ENGINEER to enter upon public and private lands as required for the ENGINEER to perform such work as surveys and inspections in the development of the PROJECT. 4.3 Consideration of the ENGINEER's Services: The OWNER, or an agent appointed by OWNER, shall give thorough considerations to all reports, sketches, estimates, drawings, specifications, proposals, and other documents presented by the ENGINEER, and shall inform the ENGINEER of all decisions within a reasonable time so as not to delay the work of the ENGINEER. 4.4 Legal Requirements: The OWNER shall serve all required public and private notices, receive and act upon all protests and fulfill requirements necessary in the development of the PROJECT. 4.5 Proposals: The OWNER shall advertise for Proposals from Bidders, open the Proposals at the appointed time and place and pay all costs incidental thereto. 4.6 Protection of Markers: The OWNER shall protect to the best of its ability, all stakes and other markers set by the ENGINEER prior to the assumption of such responsibility by the Contractor. Replacement of markers or stakes which have been damaged, moved or removed shall be paid for by the OWNER as extra services of the ENGINEER. Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 5 of 9 4.7 Standards: The OWNER shall furnish the ENGINEER with a copy of any design and construction standards it shall require the ENGINEER to follow in the preparation of Contract Documents for the PROJECT. 4.8 OWNER's Representative: The OWNER shall designate in writing, by appendix to this Agreement, a single person to act as the OWNER's Representative with respect to the services to be performed under this Agreement. The person designated as OWNER's Representative shall have complete authority to transmit instructions, receive information, interpret and define OWNER's policy and decisions, with respect to the materials, equipment, elements and systems pertinent to the services covered by this Agreement. The OWNER may also appoint, and will notify the ENGINEER of such appointment, a 3rd party to act as the OWNER’s agent for consideration of the ENGINEER’s services set forth in paragraph 4.3 above. SECTION 5 - THE OWNER'S PAYMENTS TO THE ENGINEER: 5.1 Definitions of Construction Cost of the PROJECT, as herein referred to, means the total cost of all work designed or specified by the ENGINEER but does not include any payments to the ENGINEER or other consultants. 5.2 Abandoned or Suspended Services: If any services performed by the ENGINEER is abandoned or suspended in whole or in part, the ENGINEER shall be paid for services performed on account of it prior to receipt of written notice from the OWNER of such abandonment or suspension. 5.3 The OWNER will make prompt payments in response to the ENGINEER's detailed statements for all categories of completed services rendered under this AGREEMENT, or as provided in an agreed upon schedule which shall be attached to this AGREEMENT. However, the OWNER, in no circumstance, shall be required to make more than one payment a month. It is understood and agreed that the OWNER is not liable for payment of any fees for Basic Services described in this AGREEMENT until funds are available from bond sales or other lawful source of funds. Non-payment within 60 days of receipt of invoice may, at ENGINEER option, result in the suspension of services upon 5 days notice to OWNER. ENGINEER will resume services upon payment in full of all outstanding undisputed invoices with no liability for such a suspension to OWNER. 5.4.Payments for Additional Services of the ENGINEER: The ENGINEER shall be reimbursed according to Attachment Schedule of Charges for the additional services outlined under Section 3. Payments to the ENGINEER for additional services stipulated in Section 3 will be made monthly by the OWNER, upon presentation of monthly detailed statements by the ENGINEER SECTION 6 - THE OWNER AND ENGINEER FURTHER AGREE to the following conditions: 6.1 Termination: This Agreement may be terminated by either party by fourteen (14) days written notice in the event of substantial failure to perform in accordance with the terms hereof by the one Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 6 of 9 party through no fault of the party. If terminated due to the fault of others than the ENGINEER, the ENGINEER shall be paid for services performed to the date of termination, including reimbursements then due. As soon as practicable after receipt of notice of termination, the ENGINEER shall submit a statement, showing in detail the services performed under this AGREEMENT, to the date of termination. The OWNER shall then pay the ENGINEER promptly that proportion of the prescribed charges which the services actually performed under this AGREEMENT bear to total services called for under this AGREEMENT , less such payments on account of the charges as have been previously made. Copies of all completed or partially completed designs, plans and specifications prepared under this AGREEMENT shall be delivered to the OWNER when and if the AGREEMENT is terminated, but subject to the restrictions, as to their use, as set forth in Section 6..3. The Parties agree that neither shall be liable for any consequential damages, including but not limited to loss profits, lost revenue, loss of use or opportunity, loss of goodwill, special damages, indirect, punitive or exemplary damages, or future loss profits if this Agreement is terminated for cause or without cause. 6.2 Disputes: Should a dispute arise during the course of this PROJECT, both parties hereby agree to attempt in good faith to resolve the dispute through mediation prior to seeking relief from any court or through any other legal proceeding. 6.3 Ownership of Documents: Upon execution of this Agreement, the ENGINEER grants to the OWNER a nonexclusive license to reproduce the ENGINEER’s completed tracings and master specifications sheets solely for purposes of constructing, using, maintaining, renovating and/or adding onto the PROJECT, provided that the OWNER shall comply with all obligations under this Agreement. The ENGINEER shall obtain similar nonexclusive licenses from the ENGINEER’s consultants consistent with this Agreement. Upon termination the foregoing license shall be deemed terminated and replaced by a second, nonexclusive license permitting the OWNER to authorize other similarly credentialed design professionals to reproduce and, where permitted by law, to make changes, corrections or additions to the Instruments of Service solely for purposes of completing, using and maintaining the PROJECT. Any re-use of the Instruments of service for purposes other than related to this Agreement, by OWNER or those authorized by OWNER, shall be at their sole risk and without liability to ENGINEER. Any modification of the Instruments of Service will be evidenced on the plans and be signed and sealed by a licensed professional prior to re-use of modified plans. 6.4 Except for the licenses granted in Subparagraph 6.3 above, no other license or right shall be deemed granted or implied under this Agreement. The OWNER shall not assign, delegate, sublicense, pledge or otherwise transfer any license granted herein to another party without the prior written agreement of the ENGINEER. 6.5.Successors and Assigns: This Agreement and all of the covenants hereof shall inure to the benefit of and be binding upon the OWNER and the ENGINEER respectively and its partners, successors, assigns and legal representatives. Neither the OWNER nor the ENGINEER shall have the right to assign, transfer or sublet its interest or obligations hereunder without written consent of the other party. This Agreement and attachments supersedes any previous contracts or oral agreements between the parties and constitutes the entire agreement between the parties. Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 7 of 9 6.6 Severability. Provisions of this AGREEMENT are severable and if any provision or part of this AGREEMENT or the application thereof to any person or circumstance should ever be held in any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of the AGREEMENT and the application of such provisions or part of this AGREEMENT to other persons or circumstances shall not be effected thereby. 6.7. Jurisdiction and Venue. The laws of the State of Texas apply to this Agreement. Venue of any civil action will be in the County where the PROJECT is located. 6.8 Indemnity. The OWNER, to the fullest extent permitted by law, will require any Contractor or Subcontractor performing work in connection with Drawings and Specifications produced under this Agreement to hold harmless, indemnify and defend, the OWNER and the ENGINEER, their consultants and each of their officers, agents and employees from liability claims, losses or damage arising out of or alleged to arise from the Contractor' s (or Subcontractor's) negligence in the performance of the work described in the Construction Contract Documents, but not including liability that may be due to the sole negligence of the OWNER, the ENGINEER, their consultants or their officers, agents, and employees. 6.9 Written Notice. Where written notice is mention in the AGREEMENT, it shall be sent by certified mail return receipt requested, or by personal delivery, or by facsimile, to the attention of and to the following addresses: OWNER Y. S. Ramachandra, P.E. City Engineer City of Huntsville 448 State Highway 75 North Huntsville, TX 77320 ENGINEER NAME JOB TITLE NAME OF THE FIRM STREET ADDRESS CITY, STATE ZIP 6.10 Staffing. ENGINEER acknowledges that continuity of staffing is important to the OWNER for the duration of the PROJECT. Accordingly, ENGINEER agrees to assign and the following key staff to the PROJECT. No substitution will be made to the assigned key staff without the written consent of the OWNER, provided the identified staff members remain employed by the ENGINEER: PROJECT ROLE: NAME. – JOB TITLE PROJECT ROLE: NAME. – JOB TITLE PROJECT ROLE: NAME. – JOB TITLE 6.11 Design Delays. OWNER and ENGINEER agree that time is of the essence in Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 8 of 9 ENGINEER’s work related to the PROJECT, it being acknowledged that ENGINEER shall be provided reasonable time to employ safe and sound engineering practices and the services shall be performed expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer. Accordingly, ENGINEER shall have deducted from any amounts owed a sum of $XXX per calendar day beyond completion dates for the respective design phases of various PROJECT elements established in the agreed upon schedule attached to this AGREEMENT, as may be amended in writing between both parties. 6.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, with such counterparts together constituting one and the same instrument. Alternatively, the Parties acknowledge and agree that this Agreement may be, for convenience, executed in duplicate originals, each of which is intended to be and is as valid as its counterpart original. 6.13 Statutory Terms Applicable to State Political Subdivisions. As required by Chapter 2270, Government Code, ENGINEER hereby verifies that it does not boycott Israel and will not boycott Israel through the term of this Agreement. For purposes of this verification, “boycott Israel” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli- controlled territory, but does not include an action made for ordinary business purposes. IN WITNESS WHEREOF the parties hereto have made and executed this Agreement on the day and year first above written: OWNER: ENGINEER: CITY OF HUNTSVILLE (*NAME OF THE FIRM*) _____________________________ _________________________________ Aron Kulhavy - City Manager NAME – JOB TITLE ATTEST: ATTEST: ______________________________ _________________________________ Brenda Poe – City Secretary NAME – JOB TITLE Engineering Agreement w/ (*Name of the Firm*) Project Name - #XX-XX-XX City of Huntsville, TX Page 9 of 9 APPROVED AS TO FORM: __________________________ Leonard Schneider, City Attorney Agenda Item #2c Item/Subject: Consider adoption of Ordinance 2020-20 to amend the budget for FY 19-20 and/or CIP Project budgets. Initiating Department/Presenter: Finance Presenter: Steve Ritter, Finance Director Recommended Motion: Move to adopt Ordinance 2020-20 to amend the budget for FY 19-20 and/or CIP Project budgets. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: Detailed explanation is provided in the attachment, Exhibit A, to the Ordinance. The first Budget Amendment was presented to the Finance Committee at their March 17, 2020 meeting. The second budget amendment, related to COVID 19, was not presented to the Finance Committee but is forwarded straight to Council due to the necessity of the situation. Previous Council Action: None. Financial Implications: ☒ See the attached Ordinance and related Budget Amendments (Exhibit A) Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: • Ordinance 2020-20, page 2 • Exhibit A (list of budget amendments), page 3 4/7/2020 Agenda Item: 2c CITY COUNCIL AGENDA Agenda Item #2c ORDINANCE NO. 2020-20 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2019- 2020 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2019-52 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the 2019-2020 Annual Budget and CIP Budgets were adopted by Ordinance 2019-52 on September 17, 2019; 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 2019 – 2020 and the Capital Improvements Projects (CIP) budget as set forth herein; and WHEREAS, this ordinance combines the independent Council actions into one budget amendment document; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: Section 1. The findings set forth above are incorporated into the body of this ordinance. Section 2. The annual budget for fiscal year 2019 – 2020 is hereby amended to include the expenditures and revenues in Exhibit “A” and the Capital Improvements Projects budget is hereby amended to include the expenditures described in Exhibit “A” attached hereto and made a part of this ordinance as if set out verbatim herein. Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance. Section 5. The necessity for amending the budget for the fiscal year 2019 – 2020 and Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides. Section 6. This ordinance shall take effect immediately after its passage. PASSED AND APPROVED on this the 7th day of April 2020. THE CITY OF HUNTSVILLE, TEXAS __________________________________ Joe Rodriquez, Mayor Pro Tem ATTEST: APPROVED AS TO FORM: ____________________________ _____________________________________ Brenda Poe, City Secretary Leonard Schneider, City Attorney Exhibit A Budget Amendments FY 19-20 April 7, 2020 Increase:Utility Fund - SHSU reimbursements WW Reclamation plant - Revenue 100,000$ Increase:Utility Fund - Operations of SHSU WW Reclamation plant 100,000$ Explanation: Increase:City Manager - COVID-19 specific 100,000$ Coming from General Fund - Fund Balance/Unallocated Reserve Explanation: An agreement is in the works between Sam Houston State University (SHSU) and the City for the City to operate a Wastewater Reclamation plant being built by SHSU. The agreement is not yet in place. However, there are expenditures that will occur (specifically Attorney fees and Engineering fees) before operations of the plant are in place. Public Works has estimated approximately $5,000 for Attorney fees and $95,000 for Engineering fees will be incurred in this 19-20 fiscal year related to the agreement (Attorney fees) and obtaining TCEQ approval to operate the plant (Engineering fees). SHSU has indicated they are agreeable to reimbursing the City for these costs. The City invoiced SHSU for $300 of attorney fees the City incurred so far on structuring the agreement and SHSU has reimbursed us for these attorney fees. The City has been incurring additional expenses related to COVID-19 with additional cleaning contracted out, additional supplies, etc. This budget amendment provides budget for the additional costs (this does not include any additional budget for increased payroll costs related to COVID-19; payroll may need to be addressed with a future budget amendment). While the additional costs are anticipated to be reimbursed to the City from FEMA funds (probably at 75%) those funds may not be received until next fiscal year. When FEMA funds are recived it will have the effect of increasing Fund Balance/Unallocated Reserve of the General Fund. Agenda Item #2d Item/Subject: Consider authorizing the City Manager and the City Attorney to draft and enter into an agreement with the Community Organization for Missionary Endeavor, Inc. (C.O.M.E. Center) to waive construction-related permit fees. Initiating Department/Presenter: City Council Presenter: Dee Howard Mullins, Councilmember At-large Pos. 2 Recommended Motion: Move to authorize the City Manager and the City Attorney to draft and enter into an agreement with the C.O.M.E. Center to waive construction-related permit fees. 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: The C.O.M.E. Center is preparing to start the construction of an addition to the existing C.O.M.E. Center located at 342 State Highway 75 N. The addition is necessary to accommodate their growing needs and inventory of donations. The expansion is estimated to cost approximately $130,000, with permit fees estimates around $1,500. In order for the City to grant this fee waiver, a contract for services to the public is needed. A similar contract was approved by city council between a local non-profit and the City for waiver of permits fees for the construction of the Boys and Girls Club of Walker County. Approval of this item will allow the City Attorney to draft and the City Manager to execute such a contract with the C.O.M.E. Center. Previous Council Action: There is no record of any formal Council action on this topic. Financial Implications: ☒Item is not budgeted: $1,500 estimated in lost revenue Approvals: ☐City Attorney ☐Director of Finance ☒City Manager Associated Information: • Request from Councilwomen Dee Howard Mullins 4/7/2020 Agenda Item: 2d CITY COUNCIL AGENDA 3/26/2020 City of Huntsville, Texas Mail - Fwd: COME https://mail.google.com/mail/u/0?ik=1aca9afddd&view=pt&search=all&permthid=thread-f%3A1661981083254896816%7Cmsg-f%3A16619810832548…1/2 Aron Kulhavy <akulhavy@huntsvilletx.gov> Fwd: COME 1 message Brenda Poe <bpoe@huntsvilletx.gov>Mon, Mar 23, 2020 at 1:37 PM To: Aron Kulhavy <akulhavy@huntsvilletx.gov>, Dee Howard <dhoward@huntsvilletx.gov> Request to add item to agenda. Brenda ---------- Forwarded message --------- From: Brenda Poe <bpoe@huntsvilletx.gov> Date: Mon, Mar 23, 2020 at 1:36 PM Subject: Re: COME To: Dee Howard <dhoward@huntsvilletx.gov> So noted and adding Aron so that he can start the necessary conversation. Thank you. Brenda On Mon, Mar 23, 2020 at 1:36 PM Dee Howard <dhoward@huntsvilletx.gov> wrote: This is a request to add the COME organization on the next city council agenda for the wavier of fees related to the expansion of their current building. This building operates on donations from the community. Profits and grants are used to assist families with utility assistance and scholarships for high school seniors. Dee Sent from my iPhone Dee Howard Mullins -- Brenda Poe City Secretary 1212 Avenue M Huntsville, TX 77340 www.HuntsvilleTX.gov 936-291-5413 bpoe@HuntsvilleTX.gov ATTENTION ELECTED OFFICIALS: A “Reply All" of this e-mail could lead to violations of the Texas Open Meetings Act. Please reply only to the sender. -- Brenda Poe City Secretary 1212 Avenue M Huntsville, TX 77340 www.HuntsvilleTX.gov 936-291-5413 bpoe@HuntsvilleTX.gov ATTENTION ELECTED OFFICIALS: A “Reply All" of this e-mail could lead to violations of the Texas Open Meetings Act. Agenda Item #3a Item/Subject: SECOND READING - Consider adoption of Ordinance 2020-18 to approve regulating the operation of Personal Mobility Devices, second reading. Initiating Department/Presenter: Public Safety Presenter: Darryle Slaven, Asst. Chief of Police Recommended Motion: Move to approve Ordinance 2020-18 implementing regulations for the use of Personal Mobility Devices. Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens. Discussion: On December 17, 2019, City Council adopted a Shareable Mobility Device ordinance; however, it did not address personally owned Mobility Devices. To address these parameters, the definition of Personal Mobility Device was added to the Shareable Mobility Device ordinance. The word personal was inserted when and where applicable to complete the ordinance in the most concise and affluent way possible. Previous Council Action: - May 21, 2019, City Council held a workshop with staff in reference to Shareable Mobility Devices. - July 2, 2019, City Council meeting, first reading of the pilot program Ordinance for Shareable Mobility Devices. - July 16, 2019, City Council meeting, second reading of the pilot program Ordinance for Sharable Mobility Devices. - December 3, 2019, City Council meeting, first reading of the ordinance for the Shareable Mobility Devices. - December 17, 2019, City Council adopted Shareable Mobility Device Ordinance. Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☐City Attorney ☐Director of Finance ☐City Manager Associated Information: • Ordinance 2020-18 • Exhibit A - Chapter 44 – Traffic and Motor Vehicles 4/7/20 Agenda Item: 3a CITY COUNCIL AGENDA ORDINANCE NO. 2020-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING CHAPTER 44, TRAFFIC AND MOTOR VEHICLES, OF THE CITY OF HUNTSVILLE CODE OF ORDINANCES BY AMENDING CERTAIN SECTIONS AS SET OUT BELOW; BY ADDING A NEW ARTICLE X SETTING A PENALTY; AND MAKING OTHER FINDINGS AND PROVISIONS RELATED THERETO; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE HEREOF. WHEREAS, the Huntsville Code of Ordinances (“Code”), Chapter 44 governs traffic and motor vehicles; and WHEREAS, the City of Huntsville may adopt reasonable regulation, including fees and penalties for alternative modes of transportation and commerce in the City of Huntsville, such as personal mobility devices; WHEREAS, the City of Huntsville, a home rule municipality, is authorized by Charter to adopt and implement necessary and reasonable ordinances in the best interests of its citizenry; and WHEREAS, the City council of the City of Huntsville finds the provisions of this ordinance set forth below are necessary to protect the health, safety, and welfare of its citizens and the public, and said rules and regulations are reasonable; NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: Section 1. The facts and matters set forth in the preamble of this Ordinance are found to be true and correct and are hereby adopted, ratified, and confirmed. Section 2. Huntsville Code of Ordinances Chapter 44 – TRAFFIC AND MOTOR VEHICLES, Article I – IN GENERAL”, Sections 44-1 Definitions are hereby amended by adding a definition for “Personal Mobility Device” as shown on the attached Exhibit “A”. Section 3. Huntsville Code of Ordinances Chapter 44 – TRAFFIC AND MOTOR VEHICLES, Article X –SHAREABLE MOBILITY DEVICES”, is amended by amending Sections 44-243, 44-244, 44-246, 44-247, 44-248 and 44-249 as shown on the attached Exhibit “A”. Section 4. All ordinances that are in conflict with the provisions of this Ordinance are, and that same 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 5. Should any paragraph, sentence, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this Ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional. Section 6. This Ordinance, being a penal ordinance, becomes effective ten (10) days after its date of passage by the City Council, as provided by Article 4.14 of the Charter of the City of Huntsville, Texas. First Reading Date: __________________ PASSED AND APPROVED on the Second Reading on this the ____th day of ____________ 2020. THE CITY OF HUNTSVILLE Joe Rodriquez, Mayor Pro Tem ATTEST: APPROVED AS TO FORM: Brenda Poe, City Secretary Leonard Schneider, City Attorney Exhibit A Chapter 44 - TRAFFIC AND MOTOR VEHICLES ARTICLE I. - GENERAL Sec. 44-1 Definitions. Shareable Mobility Device (device) means any docked or dockless wheeled device, whether it be human-powered, electric, or otherwise motorized, that permits an individual to move or be moved freely, including but not limited to, a bicycle, scooter, skateboard or other similar device; is accessed via an on-demand portal, whether a smartphone application, membership card, or similar method; is operated by a private entity that owns, manages, and maintains devices for Shared use by members of the public; and is available to members of the public in unstaffed, self-service locations or staffed service locations. Dockless means that the device does not require the individual user to return and lock the device to an authorized fixed station once the user has completed their use of the device. Docked means that the device requires the individual user to return the device to an authorized fixed location once the user has completed their use of the device. Shareable Mobility Device vendors (vendor) means an entity approved by the Huntsville City Manager or Designee, to use/occupy the public right-of-way for offering mobility devices, such as a bicycle, a scooter, or electric bike or any other mobility device as determined by the City Manager or Designee, to subscribers on a fee basis subscription. Designated drop off/pick up area (Docked or authorized fixed location) means an area on private property, or other areas as designated by the City Manager or Designee, that the Shareable Mobility Devices are parked (docked) and made available to public for use. Personal Mobility Device means any wheeled device that would be a Shareable Mobility Device but it is personally owned and is not for rent, whether it be human-powered, electric, or otherwise motorized, that permits an individual to move, or be moved freely, including, but not limited to, a bicycle, scooter, skateboard or other similar device that is owned by an individual and no fee is paid for its use. ARTICLE X - SHAREABLE MOBILITY DEVICES Sec.44-243. - Purpose. The purpose of these regulations is to provide for the proper management of the public rights-of-way to preserve the health, safety, and welfare of the citizens of the city. Specifically, these regulations are intended to provide for reasonable guidelines for the operation of Shareable and/or Personal Mobility Devices operated in the public rights-of-way. Sec. 44-244. - Permit required. It shall be unlawful for a Shareable Mobility Device vendor to operate Shareable Mobility Devices within any public right-of-way without first obtaining a permit from the City. The permit shall, among other things: (a) Include an application fee of $200.00 plus $3.00 per device. (b) Shall be valid for one year; (c) Vendors shall maintain commercial general liability insurance coverage of no less than $1,000,000.00, worker’s compensation, business automobile insurance. The City of Huntsville shall be named as an additional insured; (d) Permits are not transferrable; and (e) Identify the number of Shareable Mobility Devices. A maximum of 150 units available for use in the City at any one time. (f) Each device shall display a City provided permit decal, affixed in plain sight. (g) No permit is required for a Personal Mobility Device. Sec. 44-246. - Regulations and Restrictions. (a) In addition to any regulations or restrictions imposed under state law, vendors and the use of Shareable and/or Personal Mobility Devices within the city of Huntsville must comply with the following regulations and restrictions; when applicable. 1. Vendors shall keep a record of reported collisions in a format as determined by the City. 2. Vendors shall keep a record of maintenance activities which includes the Shareable Mobility Device unit identification number and maintenance performed. 3. Vendors shall sign and record an indemnification agreement indemnifying and holding harmless the City. 4. Vendors agree to educate users on lawful and safe use of the Shareable Mobility Devices, including encouraging users to obey traffic control devices and ride with the flow of traffic. 5. Shareable and/or Personal Mobility Devices may not be used on public rights- of-way with speed limits greater than 35 miles per hour unless in a dedicated bike lane or shared use path. Exception: bicycles may be operated in any area of the City where bicycles are otherwise permitted. 6. No Shareable Mobility Device shall be operated between the hours of 9:00 pm and 7:00 am. 7. The operator of a Shareable and/or Personal Mobility Device must be at least 16 years old to use a motorized device upon public rights-of-way. 8. Operation of a Shareable and/or Personal Mobility Device shall be limited to one rider. 9. Any person operating a Shareable and/or Personal Mobility Device shall obey all rules of the road applicable to vehicle traffic, as well as the instructions of official traffic control signals, signs, and other control devices applicable to vehicles, unless otherwise directed by a police officer. 10. No Shareable and/or Personal Mobility Device shall be ridden in a negligent or unsafe manner but shall be operated with reasonable regard for the safety of the operator and other persons. 11. It shall be unlawful to operate a Shareable and/or Personal Mobility Device on a street, alley, sidewalk or public highway of the city, unless it is equipped with a braking system in sufficient working order to control and stop the movement of the device. 12. No person shall operate a Shareable and/or Personal Mobility Device while wearing earphones over, or earplugs in, both ears. As used in this section, "earphones" means any headset, radio, tape player, or other similar device that provides the listener with radio programs, music, or other recorded information through a device attached to the head and that covers all or a portion of both ears. "Earphones" does not include hearing aids or the use of speakers or other listening devices that are built into protective headgear. 13. No person operating Shareable and/or Personal Mobility Device shall carry any package, bundle, or article that prevents the driver from keeping both hands upon the handle bars. 14. No person riding upon any Shareable and/or Personal Mobility Device shall attach the same or him/herself to any vehicle upon a roadway. No operator shall knowingly permit any person riding upon any Shareable Mobility Device to attach the same or self to any vehicle while it is moving upon a roadway. 15. Shareable Mobility Devices shall not be deployed to designated drop off/pick up areas earlier than 6:00 am and must be picked up no later than 10:00 pm. Exception: Shareable Mobility Devices parked on private property are exempt from these hours. Sec. 44-247. - Equipment. Every Shareable and/or Personal Mobility Device when in use shall comply with the following; when applicable (a) Shareable Mobility Devices shall be equipped with an on-board GPS unit or equivalent that can report the location of a unit at any time for the purposes of use, recovery, repair, data collection, and incident investigation. (b) Bicycles used in a Shareable Mobility Device vendor system shall meet standards outlined in the Code of Federal Regulation (CFR) under Title 16, Chapter II, Subchapter C, Part 1512 – Requirements for Bicycles. Additionally, permitted systems shall meet the safety standards outlined in International Organization for Standardization (ISO) 43.150 – Cycles, subsection 4210. (c) Electric bicycles used in a Shareable Mobility Device vendor system shall meet the most up-to-date definition of low-speed electric bicycle outlined in CPSC Public Law 107-309 for Low Speed Electric Bicycle and 15 U.S.C. Chapter 47 Section 2085 and be equipped with fully operable pedals and shall be subject to the same requirements as ordinary bicycles. (d) Scooters used in Shareable Mobility Device vendor system shall meet the most up- to-date equivalent safety standards as those outlined in the Code of Federal Regulations and the International Organization for Standardization for bicycles. Currently, scooters shall meet CPSC in Public Law 107-309 for standards around weight bearing. (e) A lamp mounted on the front of either the Shareable and/or Personal Mobility Device or the operator that shall emit a white light visible from a distance of at least five hundred (500) feet to the front and three hundred (300) feet to the sides. A generator-powered lamp that emits lights only when the bicycle or mobility device is moving may be used to meet this requirement. (f) A red reflector on the rear of a Shareable and/or Personal Mobility Device that shall be visible from all distances from one hundred (100) feet to six hundred (600) feet to the rear when directly in front of lawful lower beams of head lamps on a motor vehicle; (g) A lamp emitting either flashing or steady red light visible from a distance of five hundred (500) feet to the rear may be used in addition to the red reflector. If the red lamp performs as a reflector in that it is visible as specified in 6 b of this section, the red lamp may serve as the reflector and a separate reflector is not required. This applies to both Sharable and/or Personal Mobility Devices. Sec. 44-248. - Mobility device yields right-of-way to pedestrians. Any person who may lawfully operate a Shareable and/or Personal Mobility Device shall: (a) Yield the right-of-way to a pedestrian upon a roadway, sidewalk or shared-use path or a crosswalk. (b) Give a timely and audible signal before overtaking and passing a pedestrian upon a roadway, sidewalk or shared-use path. Sec. 44-249. - Parking. (a) When a user is not being charged for the use of the device, before, after and in between users, the Shareable Mobility Devices shall be parked (docked) in a designated drop off/pick up area. (b) It shall be unlawful to stop, stand, or park a Shareable and/or Personal Mobility Device on a public sidewalk or public right of way unless placed in a bike rack. No person shall park a Shareable and/or Personal Mobility Device upon any street including parking spots and loading zones or as to unduly interfere with vehicular traffic. Agenda Item #3b Item/Subject: FIRST READING - Consider authorizing the City Manager to approve a purchasing agreement with FleetCor for Fuelman fuel cards for off-site point of sale fueling of City vehicles, first reading. Initiating Department/Presenter: Public Works Presenter: Brent S. Sherrod, P.E., Director of Public Works Recommended Motion: First reading, no action. 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 utilized the Fuelman fuel card system for off-site point of sale purchases of fuel for City vehicles since June 2016. The Fuelman system was identified by staff at that time as the best value to the City, particularly in the area of reporting capabilities. The latest Fuelman version now offers real-time notification alerts to appropriate City management personnel to alert them to potential fraud or misuse activity, such as fuel volume exceeds tank capacity, vehicle has exceeded its daily fuel and/or transaction limit (there is a notification menu of 24 such alert filters from which City management personnel can select). The Fuelman system is currently used by hundreds of Texas governmental entities, including the cities of Beaumont, Temple, Irving, Marble Falls, New Braunfels and Georgetown, as well as Harris County. The Fuelman fuel card system is available through a competitively bid cooperative purchasing program offered by ESC Region 19, of which the City is a member. ESC Region 19 solicited proposals in January 2020 to award new contracts to replace the currently expiring agreements, and FleetCor was awarded a new contract on February 26, 2020. This cooperative contract meets all requirements of Texas Local Government Code 252 pursuant to competitive bidding by Texas municipalities. The contract term is for an initial term of one (1) year, with four (4) one-year renewal options, with expiration in February 2025. Public Works management staff reports a high degree of satisfaction with the Fuelman fuel card system, and recommends approval of the continued use of the system for unleaded gasoline purchases at a cost of 11 cents above (down from 12 cents under the expiring agreement) the applicable weekly Oil Price Information Service (OPIS) pricing as published every Thursday, and diesel fuel at a cost of 19 cents above weekly OPIS pricing. Mid-grade and premium unleaded are priced at 15 cents above OPIS. Previous Council Action: City Council award of purchasing agreement with FleetCor (then Texas Fleet Fuel) on June 21, 2016. Financial Implications: ☒Item is budgeted: _Various __ In the amount of $ _561,920__ 4/7/2020 Agenda Item: 3b CITY COUNCIL AGENDA Agenda Item #3b Approvals: ☐City Attorney ☒Director of Finance ☒City Manager Associated Information: None Agenda Item #4a Item/Subject: Consider approving nominees for City boards, committees, and commissions. Initiating Department/Presenter: City Council Presenter: Mayor Andy Brauninger Recommended Motion: Mayor moves his nominations 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: General Assembly and Board of Directors of the Houston-Galveston Area Council (H-GAC) – Councilmember Mari Montgomery, alternate City of Huntsville, Texas Veterans Affairs Advisory Board – Donald Genwright and Trish Faires Previous Council Action: None. Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☐City Attorney ☐Director of Finance ☒City Manager 4/7/20 Agenda Item: 4a CITY COUNCIL AGENDA Agenda Item #4b Item/Subject: First Reading - Consider and possible action to adopt Ordinance No 2020-22 approving the settlement of a proposed rate increase of Centerpoint Energy Resources Corp in the Beaumont/East Texas Division, first reading. Initiating Department/Presenter: City Attorney Presenter: Leonard Schneider, City Attorney Recommended Motion: Motion to adopt Ordinance No. 2020-22 approving the CenterPoint proposed settlement of the Centerpoint proposed rate increase in the Beaumont/East Texas Division. IF you wish to waive the second-reading requirement: Move to waive the requirement for readings on two separate days and move to adopt Ordinance No. 2020-22 approving the CenterPoint proposed settlement of the Centerpoint proposed rate increase in the Beaumont/East Texas Division. 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: Centerpoint has a statement of intent to increase gas rates in the Beaumont and East Texas Service areas which is still pending with the Railroad Commission. The City previously denied the request. A settlement has been reached. Centerpoint previously requested an annual rate increase of approximately $6.816 million. The proposed settlement reduces the increase to $4 million. The Company would also agree to lower the current customer charge for residential customers to $18.00 per month from the current $24.01 level and the proposed $28.75 level. This lower customer charge benefits the small user. Furthermore, the Company has agreed to a reduced return on equity and a capital structure that is more in line with the risks of similarly-situated utilities. Finally, the Company has agreed not to implement the rate increase until October 2020 instead of the current June 16 effective date. The City is requested to make a decision on the settlement on or before May 1, 2020. The Lawton Law firm is recommending the Cities accept a settlement at the $4 million annual rate increase level with the agreed rate design and cost allocation. Previous Council Action: Council had previously denied the rate increase on March 17, 2020. Financial Implications: ☒There is no financial impact associated with this item. Approvals: ☒City Attorney ☐Director of Finance ☐City Manager Associated Information:  Letter from Lawton Law Firm - Attorney/Client privileged packet  Ordinance 2020-22 4/7/2020 Agenda Item: 4b CITY COUNCIL AGENDA ORDINANCE NO. 2020-22 AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS (“CITY”) APPROVING THE SETTLEMENT OF THE PROPOSED RATE INCREASE OF CENTERPOINT ENERGY RESOURCES CORP., D/B/A CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS TO INCREASE RATES IN THE BEAUMONT/EAST TEXAS DIVISION; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about November 14, 2019, CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas (“CenterPoint” or “Company”) filed a Statement of Intent with the City of Huntsville (“City”) to increase gas rates in the Beaumont/East Texas Division Service Area by $6.816 million per year; WHEREAS, the City of Huntsville denied the Company’s rate request on March 17, 2020, and the Company appealed the City’s rate denial ordinance to the Railroad Commission; WHEREAS, CenterPoint, Railroad Commission Staff, and City groups representing similarly-situated cities in CenterPoint’s service area participated in proceedings before the Railroad Commission of Texas and in a number of settlement discussions to resolve the rate case issues without litigation; WHEREAS, CenterPoint has agreed to settle the rate request at a rate increase level of $4 million per year for the Beaumont and East Texas Service Area, setting the residential customer charge at $18.00 per month, adjusting the proposed cost allocation to minimize the residential class impact while no other customer class is moved further from cost based revenue assignment, and providing for reasonable rate case expenses to be recovered from all customers through a 36 month surcharge; and WHEREAS, the Railroad Commission Staff, the Lawton Law Firm, and counsel for the other city groups participating in these proceedings have recommended approval of the Settlement terms as a reasonable alternative to resolve the rate case issues without litigation. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. Section 2. The City of Huntsville hereby approves rates and tariffs consistent with the CenterPoint proposed Settlement. Section 3. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 4. This ordinance shall become effective from and after its passage. PASSED AND APPROVED on this the 7th day of April 2020. THE CITY OF HUNTSVILLE ___________________________________ Joe Rodriquez, Mayor Pro Tem ATTEST: APPROVED AS TO FORM: ___________________________ ___________________________ Brenda Poe, City Secretary Leonard Schneider, City Attorney Agenda Item #4c Item/Subject: Consider Ordinance 2020-23 amending Chapter 42 “Taxation” to temporarily modify the Hotel Occupancy Tax (HOT) reporting and payment schedule. Initiating Department/Presenter: City Manager Presenter: Aron Kulhavy, City Manager Recommended Motion: Move to approve Ordinance 2020-23 amending Chapter 42 “Taxation” to temporarily modify the Hotel Occupancy Tax (HOT) reporting and payment schedule. 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: With the effects of COVID-19, the local hotel industry reached out to the City and Representative Bailes’ office for some assistance in these trying times. The attached letter was received on March 20, 2020 and requests relief from both state and local leaders during this time. One way in which the City can assist the hotels is by delaying the reporting requirements for local Hotel Occupancy Tax. This delay in reporting will not alleviate the hotels from paying these taxes; however, it would alleviate any penalties and interest for the payments being delayed. The attached ordinance would give local hoteliers and extra 90 days in which to report their occupancy taxes to the City. This time frame could alleviate some cash-flow problems for the hoteliers and assist them through this pandemic. Overall, hotel stays have decreased significantly for most hotels during this pandemic. Staff is anticipating an overall decline in HOT revenue for the remainder of this year and will be monitoring the situation very closely. Previous Council Action: The Council adopted Ordinance 2020-17 on March 17th declaring a local disaster for the current COVID-19 crisis through April 8th. The Council has for consideration an ordinance to extend this declaration through April 22nd on this agenda. Financial Implications: ☒Item is estimated to generate less revenue: Most hotels/motels pay the tax on time. Extending the time for the hotels to report and pay will not have much impact on penalty and interest revenue. The cash flow to City accounts will be delayed but will not have an impact on the ability to pay bills. Approvals: ☒City Attorney ☐Director of Finance ☒City Manager Associated Information: • Ordinance 2020-23 • Letter received March 20, 2020 4/7/20 Agenda Item: 4c CITY COUNCIL AGENDA ORDINANCE NO. 2020-23 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS AMENDING CHAPTER 42, “TAXATION”, ARTICLE III, HOTEL AND MOTEL OCCUPANCY TAX, OF THE CODE OF ORDINANCES, CITY OF HUNTSVILLE, TEXAS TO TEMPORARILY MODIFY THE HOTEL OCCUPANCY TAX REPORTING AND PAYMENT SCHEDULE; PROVIDING FOR A REPEALER AND SAVINGS CLAUSE; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR PROPER NOTICE AND OPEN MEETINGS WHEREAS, the City of HUNTSVILLE (“City”) is a Texas home-rule municipality; and WHEREAS, pursuant to Texas Local Government Code, Section 51.001, the City has the authority to adopt ordinances and regulations that are for good government, peace and order of the City; and WHEREAS, as a home-rule municipality, Texas Local Government Code, Section 51.072 confirms that the City has the full power of local self-government; and WHEREAS, Chapter 351 of the Texas Tax Code allows for the imposition and collection of hotel occupancy taxes by municipalities; and WHEREAS, the negative economic impacts of the COVID-19 (Coronavirus) Pandemic has significantly affected local hoteliers situated in the City of HUNTSVILLE and its extraterritorial jurisdiction; and WHEREAS, the City Council desires to amend Chapter 42, Taxation, of the Code of Ordinances of the City of HUNTSVILLE by temporarily modifying and extending the deadlines for filing required monthly tax reports and monthly payment of local hotel occupancy taxes in order to mitigate some of the negative economic impacts of the COVID-19 (Coronavirus) Pandemic on local hoteliers; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT: SECTION 1. Chapter 42, Taxation, Sec. 42-47, Reports and payment, of the Code of Ordinances of the City of HUNTSVILLE, Texas, is hereby temporarily modified to extend the deadlines for the filing of required monthly tax reports and monthly payment of local hotel occupancy taxes by ninety (90) days, according to the following schedule: Collection Month Regular Due Date Extended Due Date February, 2020 March 15, 2020 June 13, 2020 March, 2020 April 15, 2020 July 14, 2020 April, 2020 May 15, 2020 August 13, 2020 May, 2020 June 15, 2020 September 13, 2020 The modified and extended filing and payment deadlines shall only apply to the collection months of February 2020, March 2020, April 2020 and May 2020. The regular reporting and payment deadlines shall apply to the June 2020 collection month, and all collection months occurring thereafter. SECTION 2. SAVINGS CLAUSE All provisions of any ordinance, resolution or other action of the City in conflict with this Ordinance are hereby repealed to the extent they are in conflict. Any remaining portions of said ordinances, resolutions or other actions shall remain in full force and effect. SECTION 3. SEVERABILITY Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, sentences and clauses and phrases remaining should any provision be declared unconstitutional or invalid. SECTION 4. REPEALER Any other ordinance or parts of ordinances in conflict with this Ordinance are hereby expressly repealed. SECTION 5. EFFECTIVE AND EXPRIRATION DATE This Ordinance shall become effective upon adoption and publication as required by law. This Ordinance shall automatically expire on September 29, 2020. SECTION 6. PROPER NOTICE AND MEETINGS It is hereby officially found and determined that the meetings at which this Ordinance was passed were open to the public as required and that public notice of the time, place and purpose of said meetings were given as required by the Open Meetings Act, Chapter 551 of the Texas Government Code. PASSED and APPROVED on its first reading this the day of March 2020. PASSED and APPROVED on its second reading this the day of April 2020. Andy Brauninger Mayor ATTEST: Brenda Poe, City Secretary APPROVED AS TO FORM: _____________________________________ Leonard Schneider, City Attorney City of Huntsville / Walker County Hotels 832-217-8976 Redroof403gm@gmail.com March 20, 2020 Dear Elected Local and State Officials, The COVID-19 pandemic threatens the entire United States hospitality sector, which employs 4.7 million people. The crisis has presented an unprecedented challenge for the hotel industry that is arguably greater than 9/11 and the 2008 recession combined. As a hotelier in City of Huntsville / Walker County, I am experiencing firsthand the crippling impact the virus is having on our properties, workforce, and the communities which we serve. The situation is worsening by the day. There have been several economic disruptions that have impacted the hospitality industry including the cancelation of public events (i.e. Sam Houston State University events and business, Texas Department of Criminal Justice training programs, Walker County Fair and Rodeo, Statue and Visitor center being closed and many more local events) leading to a shutdown of major tourist destinations and global travel restrictions. As you can understand, these disruptions pose unique challenges for my business, which is affecting my ability to pay debts, payroll, accounts payable, and other overhead expenses. My customer base mainly consists of public events the city hosts and since restrictions were imposed, my occupancy has declined to less than 40% compared to the last five years of 75% The loss in demand has created a liquidity crisis in the Huntsville, TX / Walker County area. Due to the enforcement of social distancing in place, we expect the vast majority of Huntsville hotels to close in the coming days and weeks. We employ over 190 employees, who depend on our business for their livelihood. We need our government to provide help through immediate, direct relief to protect jobs and ensure that hotel operators (like myself) can meet payroll and mortgage obligations. Please consider allowing businesses to defer the property tax liability, hotel tax, sales tax, and municipally owned utility bills without any penalty and interest. The current business situation has made it impossible to pay our bills as the hotels in City of Huntsville & Walker County rely on the business/revenue for the month of March. Deferring these expenses will ease financial burdens and enable hoteliers to meet immediate obligations that will benefit our communities and local economy. While we prepare for downturns and unexpected circumstances each year, no business can ever be prepared for a national economic catastrophe like this. The hardest-hit people during this time are our employees and America’s small businesses. Because we have no guests to serve, rooms to clean, shuttles to drive, or meals to prepare, our staff do not have work and I do not have the capital necessary to pay them. Employees’ hours are limited and jobs have unfortunately already been lost. We literally cannot pay our employees and we cannot meet our mortgages. I am terrified that within weeks, I will be forced to close my hotel. Sincerely, Matt Patel – Red Roof PLUS+ Huntsville Ravi Patel – Days Inn Huntsville Aroon Patel – Econo Lodge Huntsville Pravin Patel – Super 8 Huntsville Jack Thimmaraju – Fairfield Inn Huntsville Harik Master – Motel 6 Huntsville Kisan Sarolia – Motel 6 Huntsville Sheryl Miller – Holiday Inn Express Huntsville Ramesh Patel – Baker Motel Vishnu Desai – Studio 6 Huntsville Agenda Item #4d Item/Subject: Consider Ordinance 2020-21 extending the Disaster Declaration issued by Mayoral proclamation on March 13, 2020 in response to COVID-19 and suspending utility disconnects for non- payment and a waiver of late fees and penalties. Initiating Department/Presenter: City Manager Presenter: Aron Kulhavy, City Manager Recommended Motion: Move to approve Ordinance 2020-21 extending the Disaster Declaration issued by Mayoral proclamation on March 13, 2020 in response to COVID-19 and suspending utility disconnects for non-payment and a waiver of late fees and penalties. 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: On March 13th, the Mayor Pro Tem of the City of Huntsville, Texas, issued a Mayoral Proclamation declaring a state of disaster for the City of Huntsville, in response to the COVID-19 being declared a worldwide pandemic on March 11, 2020. On March 17th, the Council adopted an ordinance extending the disaster declaration to be effective until April 8th. Since the last Ordinance was passed, additional guidance from the state and federal governments has been provided. The most recent order from Governor Abbott provided that non-essential businesses remain closed until April 30th and that schools should not resume until May 4th. This ordinance for consideration will extend the local disaster declaration until April 22nd, one day after the next Council meeting. It is anticipated an ordinance to extend the disaster declaration will be presented at the April 21st Council meeting. The ordinance for consideration also codifies that the City will not disconnect utility service due to non- payment of utility bills during the extent of the disaster declaration. Furthermore, the ordinance as drafted will suspend late fees and penalties for utility bills for March and April. This suspension of late fees will result in total revenue losses of about $10,000 per month to our utility and solid waste enterprise funds. Previous Council Action: The Council adopted Ordinance 2020-17 on March 17th declaring a local disaster for the current COVID-19 crisis through April 8th. Financial Implications: ☒Item is estimated to generate less revenue: Revenues for the two months of March and April in the utility fund are projected to decrease by $13,000 while revenues in the solid waste fund are projected to decrease by $7,000 due to the waiver of late fees and penalties. Approvals: ☒City Attorney ☒Director of Finance ☒City Manager 4/7/20 Agenda Item: 4d CITY COUNCIL AGENDA Agenda Item #4d Associated Information: • Ordinance 2020-21 ORDINANCE NO. 2020-21 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, EXTENDING THE DISASTER DECLARATION ISSUED BY MAYORAL PROCLAMATION ON MARCH 13, 2020 IN RESPONSE TO THE NOVEL CORONA VIRUS, NOW DESIGNATED AS COVID-19; AND AUTHORIZING PUBLIC EXPENDITURES AND OTHER FINDINGS WHEREAS, on March 13, 2020, the Mayor Pro Tem of the City of Huntsville, Texas, issued a mayoral proclamation declaring a state of disaster for the City of Huntsville, in response to the COVID-19 being declared a worldwide pandemic on March 11, 2020; and WHEREAS, on March 17, 2020, the City Council adopted Ordinance No. 2020-19 extending the declaration to be effective until April 8th, 2020 unless earlier terminated; and WHEREAS, the conditions necessitating such disaster declaration continue to exist; and WHEREAS, the City Council has determined that extraordinary measures must be taken to contain COVID-19 and prevent its spread throughout the City of Huntsville and to prevent the suffering of people in the City of Huntsville; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF HUNTSVILLE, TEXAS SECTOIN 1. The facts and matters set forth in the preamble of this Ordinance are found to be true and correct and are hereby adopted, ratified, and confirmed. SECTION 2. The declaration of disaster, which was signed and executed by the Mayor Pro Tem on March 13, 2020, and extended until April 8, 2020 shall be renewed and extended until April 22, 2020, in accordance with Section 418.108 of the Texas Government Code, unless earlier terminated by the Mayor’s office, or amended, rescinded, superseded or expire pursuant to applicable law. SECTION 3. That this Ordinance continues the activation of the City Emergency Plan and activates the recovery and rehabilitation aspects of all applicable local or interjurisdictional emergency management plans and authorizes the furnishing of all aid and assistance as deemed necessary or desirable by those administering such plans, and activates the preparedness and response aspects of such plans as provided therein and provides the authority for the Mayor to take actions authorized by Section 418.108 of the Government Code. SECTION 4. That this Ordinance, in addition to Section 418.018 of the Government Code and Chapter 18 of the Code of Ordinances, authorizes the Mayor, if deemed necessary, to issue an order to: - require a restaurant with or without drive-in or drive-through services: drive-in restaurant; drive-through restaurant; or microbrewery, micro-distillery, or winery may only provide take out delivery, or drive-in or drive-through services as allowed by law. - require a bar, lounge, or tavern; private club; personal service use for gym or health studio; inside commercial amusement: commercial amusement (inside); or theater (theatre) to close; and provide that the Order shall continue until either rescinded, superseded, or amended or expired pursuant to applicable law. SECTION 5. City Utility Service shall not be suspended for non-payment until such disaster orders by the State, County and City relating to COVID-19 are terminated by order or by law. The City shall also waive all late fees and penalties for March and April for utility service. SECTION 6. That the Mayor may execute any and mutual aid agreements in cooperation with the representatives of the state and of other local political subdivisions of the state, and the drafting and execution, if deemed desirable, of an agreement with the county in which said city is located and with other municipalities within the county, for the countywide coordination of efforts in emergency management; for the procurement of all necessary supplies and equipment, including acceptance of private contributions; and the authorizing of agreements, after approval of the city attorney, for the use of private property for public shelter and other purposes. SECTION 7. That this Ordinance shall be filed promptly with the City Secretary and shall be given prompt and general publicity. SECTION 8. That this Ordinance shall take effect immediately from and after its issuance. PASSED AND APPROVED on this the 7th day of April 2020. THE CITY OF HUNTSVILLE ___________________________________ Joe Rodriquez, Mayor Pro Tem ATTEST: APPROVED AS TO FORM: ___________________________ ___________________________ Brenda Poe, City Secretary Leonard Schneider, City Attorney