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MIN CC 05/04/2010City Council Meetings of May 2010 Book •V" MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 4dh DAY OF MAY 2010, IN THE CITY HALL, • LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6PM. The Council met in a regular session with the following: COUNCILMEMBERS PRESENT: J. Turner, Mac Woodward, Jack Wagamon, Dalene Zander, Melissa Templeton, Charles Forbus, Lanny Ray, Wayne Barrett, Tom Cole COUNCILMEMBERS ABSENT: none OFFICERS PRESENT: Bill Baine, City Manager, Leonard Schneider, City Attorney, Lee Woodward, City Secretary WORKSHOP SESSION [5:30PM] Council will discuss budget and recycling- related items. The Mayor called the meeting to order at 5:30pm. Carol Reed, Director of Public Utilities, discussed the results of the recycling pilot program thus far, particularly the positive set -out rate the dropping non - compliance numbers. Ms. Reed stated that once the pilot is complete, she intends to present all the data and the pilot survey results to Council, and their proposal, if any, to continue recycling. She said they will continue the current schedule in the pilot area until Council directs otherwise. • City or liorXShcie Amonured Cwrbside Recycling Pilot at Elkins Index January 7, 2010 to June 17, 2010 Awn¢63AU9B ftlbgNn X fimifor bXh AMMry(ra9REN R'llKib„ PBgR m PYM_ 20e61om Curtner Reryd ing 2010 EOM" take Pilot Program Pluses • gine mgesefoo Ote • guar av Weredrwgfmmhaay • $3y00 dNedetl dpstefrom haWngtruhto landfig • 53,368 OCydirg re6coue 9na hegin)Xg of Pl)otfkr)wes d7opo0centerj Ciege7ges • Avalubigry orTDU offender labor(unitlocH/own, oterwbe dommdted) • Afaw 26lerd9sia unleppypbouraRSa week Iran pick -up • 777? 2010 -2011 Proposed Implementation Plan • cwt' inuew0h wrren[aAfidde program in Elkins lakeaRe3 pilot end date (611712010) • Expand curbskle program to addltboal am (Fish Hatdmry area, apprmt 800 resdences) • Apply for H�GAC gram ter recycling Otis • cup" education and outreach • Begin wrbsNe progra m In new area January 2011 • ConOnor with rDC1 DRender 6hpr satkg recda bles/ bad -P plan huYO Gre°nstar Prooessing in Minton 20102013 EeOmated [astsplsoradmases) • Automated Rewdmg Cartl S 50000 AddlOnnel7DUo0erderhbor $ am • Elwandonm RecydMg Por3ny $250,00D • RwMtdpfuelto Greemotifoeed d) L --.= S2mm Mtwpe 3•n qe- n..sms- on nrcxo7 Twnp- 7.a•ms.. no cMl1eE� 3aY� efalnpiQ Ia•a9e zMYQ 1•„4 CYF per r 9°"R4... a•Ia.r .. x- �.. t -, f': n,b1PM area .. mo mite nniuw tlwMe N•6pa� rniw SIaE P�lM,ol spa 3•+q nvnnK neene f�ae••• axa- mre•w. a•I ow N.rr.a•w uodu,loreo 7.1em fi39 2.33 1137 722 rp _ ]239 Y 5 553.13 5 1",tr )men2L2a0 5.71 Me - 1133 :..'�,f M 7ffi r"' -. 1211 36 5 40338 $ 125.6 S 76&26 .fei 2010 5.84 1V 12D9 11.4 772 ".'•' 1235 "$ Sp1.03 $ 1525! 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N/A - NIA $ 3.90nM $ 1,173b7 $ 1.167N A9erage 265 1233 r%: -. 12 7 •t -...., 32.10.] 20. 41.5 -JIG)] Awn¢63AU9B ftlbgNn X fimifor bXh AMMry(ra9REN R'llKib„ PBgR m PYM_ 20e61om Curtner Reryd ing 2010 EOM" take Pilot Program Pluses • gine mgesefoo Ote • guar av Weredrwgfmmhaay • $3y00 dNedetl dpstefrom haWngtruhto landfig • 53,368 OCydirg re6coue 9na hegin)Xg of Pl)otfkr)wes d7opo0centerj Ciege7ges • Avalubigry orTDU offender labor(unitlocH/own, oterwbe dommdted) • Afaw 26lerd9sia unleppypbouraRSa week Iran pick -up • 777? 2010 -2011 Proposed Implementation Plan • cwt' inuew0h wrren[aAfidde program in Elkins lakeaRe3 pilot end date (611712010) • Expand curbskle program to addltboal am (Fish Hatdmry area, apprmt 800 resdences) • Apply for H�GAC gram ter recycling Otis • cup" education and outreach • Begin wrbsNe progra m In new area January 2011 • ConOnor with rDC1 DRender 6hpr satkg recda bles/ bad -P plan huYO Gre°nstar Prooessing in Minton 20102013 EeOmated [astsplsoradmases) • Automated Rewdmg Cartl S 50000 AddlOnnel7DUo0erderhbor $ am • Elwandonm RecydMg Por3ny $250,00D • RwMtdpfuelto Greemotifoeed d) L --.= S2mm City Council Meetings of May 2010 Book "V" The meeting a*umed at 5:55pm. REGULAR SESSION' [6:OOPM] • t. CALL TO ORDER Mayor Turner called the meeting to order at 6:01 pm. 2. PLEDGES OF ALLEGIANCE 3. INVOCATION Councilmember Barrett gave the invocation. 4. PROCLAMATION The Mayor presented a proclamation in honor of Huntsville Elks Lodge #1981 Youth Week. S. PUBLIC COMMENT Councilmember Ray thanked the many officers and citizens who had thanked him for the work the Council did the night before. Councilmember Forbus reminded the public of Mother's Day. Councilmember Wagamon noted the City Attorney had not charged for his services the night before, and the Council thanked Mr. Schneider. 6. CONSENT AGENDA (Approval of Consent Agenda authorizes the City Manager to implement each Item in accordance with staff recommendations. An item maybe 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 the 211th of April 2010. [Lee Woodward, City Secretary] b. Approve the banking and investment applications with Wells Fargo and Insured Cash Shelter Account [1Mnston Duke, Director of Finance] c. Approve Resolution 2010.26, authorizing pay for exempt employees during a governor- declared state of emergency. [Winston Duke, Director of Finance] • d. Approve Ordinance 201032, adding Park Rental fees to the FY 2009 -10 Fee Schedule. [Winston Duke, Director of Finance] e. Authorize the City Manager to accept and implement the TxDOT Aviation Routine Airport Maintenance Grant with a 50150 match. [Dr. Sherry MclGbben, Community Development Specialist] f. Approve Ordinance 2010.34 amending the budget for FY09 -1D. [Winston Duke, Finance Director] Councilmember Forbus made a motion to approve the consent aoenda Coundlmember Ray seconded the motion Councilmember Woodward let the Council know that the Finance Committee had reviewed items b & f. Councilmember Templeton and Winston Duke, Finance Director, darified item c, that it had been reviewed by Personnel Committee. Councilmember Zander received confirmation from Matt Lumpkins, Director of Community Service, that the Parks & Rec Advisory Board had approved the details of item d. Councilmember Forbus discussed concern that the public cannot access the baseball fields other than through the leagues. Mr. Lumpkins explained the league schedules, and that Josey Park softball field was available for reservation. The motion passed unanimously. 9-0. 7. STATUTORY AGENDA a. Presentation, discussion and possible action to approve Ordinance 2010 -33, amending the Tax Increment Reinvestment Zone #1 project plan and revising the boundaries of the TIRZ, V reading. [Dr. Wayne Barrett, TIRZ Board president] Councilmember Barrett explained that the TIRZ annual report needed to be filed. He also suggested removing the discussion of the expansion of the TIRZ from the Project Plan if the Council had chosen not to vote on it yet. He further called the Council's attention to the proposed interiocal agreement with the County, which had been received earlier this day, particularly the area referring to expansion of the zone. City Attorney Leonard Schneider said he was led to understand there was not a deadline for filing, and that the Council could vote on both items at the next meeting. Councilmember Barrett said that was fine with him. • The Mayor reiterated Councilmember Barrett's statement that this was a first reading and would not be voted upon this evening. b. Presentation, discussion and possible action to retain the services of law firm of Bickerstaff Heath Delgado Acosta L.L.P. to assist and advise the City of Huntsville and the Public Utilities Director in the City Council Meetings of May 2010 Book "V" management, and possible uses, processes and permitting, and rights of apportioning of wastewater • plant effluent return flows. [Carol Reed, Public Utilities Director, Leonard Schneider, City Attorney] Carol Reed, Director of Public Utilities, said another municipality had approached the City to possibly purchase wastewater plant effluent return flows, and that the firm the City typically uses has a conflict of interest in this particular matter. The City Attorney said he felt the potential firm s location and familiarity with water issues would be an advantage. Ms. Reed said they were considering seeking a `bed and banks" permit for the discharged water, and was subject to regulatory approval. Mr. Schneider said this process could be challenged by other entities, and could take a year or longer to complete. The Mayor made a motion to retain the services of the firth to assist and advise the City on this matter. Councilmember Woodward seconded the motion. Councilmember Cole confirmed that downstream users from the plants proposed to be included would have an opportunity to attend public hearings. In response to his question, Ms. Reed confirmed to Councilmember Woodward that the effluent was, in large part, considered groundwater. Councilmember Barrett asked about other cities doing this same type thing. Ms. Read said it was not uncommon for a municipality to have water discharge rights permits for their wastewater. She also confirmed she expected it would involve a significant amount of money, and that she understood the City would attempt to keep its costs low by putting the onus of the expenses on the entity wanting to make the purchase. Councilmember Forbus asked about the water now. Ms. Reed said currently the City does not receive anything for the effluent at this time, and that the interested party currently did not use surface water. Councilmember Woodward asked about the potential market for the wastewater. Ms. Reed confirmed the interested party was in Montgomery County. The City Attorney said he thought it was possible that the City might bear the legal costs for advisement, but that the legal fees related to obtaining the water discharge rights permit could be negotiated to be paid by the buyer, and that it could possibly be 30-100 hours of legal work. Councilmember Barrett asked if they should consider a spending limit to the motion. • The Mayor then confirmed with the City Attorney that they would not be authorizing the spending of money, and that a proposal of the scope of services would come back to Council. The Mayor then withdrew his amendment. The City Attorney said tonight they wanted to know if the Council was interested in pursuing a proposal from the firm. The Mayor withdrew his initial motion and restated a new motion to authorize the City Staff to pursue the possibility of selling the effluent of the wastewater systems. Councilmember Ray seconded the motion. Carol Reed asked if the motion could focus on obtaining the rights, rather than on selling the effluent flows. The Mayor suggested that the Council discuss a preliminary budget at the next meeting. Councilmember Woodward asked if they could authorize the City Manager to pursue and present to Council a proposed scope of work and budget. Councilmember Wagamon asked the motion be reread. Ms. Reed said she would still prefer that the approval was for staff to pursue obtaining the water rights permit, and that it was in the interest of the City to do at this tine. The City Attorney said that because of the water shortage and water restrictions, many cities, municipalities, and governmental entities that use groundwater are now being required to use a certain percentage of surface water. Therefore, governmental entities have limited options to obtain the necessary water. He said the City would first have to get the water rights permit, and suggested getting a request for proposal (RFP) from the firm before approving any money to be spent. The Mayor said his motion is to state it is the policy of the Council to pursue the opportunity to negotiate the effluent of the wastewater systems. Councilmember Cole asked if the Council could adiourn into executive session, which they chose to do at 6:49om and reconvened at 7:01. The motion passed unanimously, 30 • c. Presentation, discussion and possible action on proposed stipulation agreement with Sam's Fast Stop Food Mart. [Leonard Schneider, City Attorney] City Attorney said this agreement was a result of direction from Council, and that the agreement had been reviewed by the Texas Alcoholic Beverage Commission (TABC). Councilmember Woodward made a motion to approve the agreement. Councilmember Cole seconded the motion City Council Meetings of May 2010 Book `V" The motion passed unanimously, 9-0. S. MAYORICITY COUNCIL AND CITY MANAGER REPORT • a. Presentation, discussion and possible action on Expo CenterlIndoor Arena feasibility study, including but not limited to feasibility committee member nominations and appointments. [Mayor Tumor, Councilmember Forbus, Chairman of HOT Board] Councilmember Forbus said he had concluded that the HOT Board could reassume the responsibility for the initial marketing study, and that they could then present their results to the Council. The Mayor said he was aware of Councilmember Forbus' idea and in agreement with it. b. Presentation, discussion and possible action to approve the nominations of Wayne Keen, Gerald Norwood and Bill Butler to the Veterans Affairs Advisory Committee. [Mayor Turner] The Mayor made a motion to approve the nominees Councilmember Zander seconded the motion The motion passed unanimously. 9-0. c. Presentation, discussion and possible action to retain the services of Ken Davis, C.P.A. for determining the allocation of fire service expenses with Walker County. [Mayor Turner] The Mayor made a motion to retain Ken Davis and authorize the City Manager to sign the agreement Councilmember Cole seconded the motion. The Mayor said this was an opportunity for a third party to determine allocation, and was an important first step to go forward in this matter. He responded to Councilmember's Cole question of timing, saying he thought it would be ready by the first of July. Councilmember Ray said he was opposed to this. The Mayor said there was an agreement that the City Manager and Finance Director Winston Duke to further clarify the details. Councilmember Ray said he thought the City should go ahead and accept the current intertocal agreement, and then determine the cost per call for the coming year, and tell the County they could pay ft or else. Councilmember Ray also recommended not hiring • someone local. The Mayor said that in his discussion with the County Judge, the Judge had said the number needed to be determined by someone objective. The Mayor said he thought the auditor was familiar with both parties' accounting methods, and both parties met with Mr. Davis. The Council then reviewed Mr. Davis' proposal, the County then acted upon it, and the County has now added some items. The Mayor further said that now the City and the County can negotiate, and that the agreement is still nonbinding, Councilmember Woodward confirmed the agreement would be nonbinding, and asked if Patricia Allen and Winston Duke could meet and determine the same information Ken Davis would. The Mayor said he felt Mr. Duke's time was very valuable during budget season, and may end up costing more. Councilmember Forbus confirmed that the City and County would split Ken Davis' bill, Councilmember Ray reminded the Council that this was a touchy subject because the larger issue was that the citizens of the City are also County residents and pay most of the County budget. He reiterated his feeling that the Council accept the $246,000 and tell the County next year what it would cost them for services, that it was simply supply and demand. Mr. Baine pointed out that the City citizens would still be paying the larger share, even if the County consented to pay a higher figure, and that the County needs to assume responsibility for fire protection. Councilmember Barrett agreed they needed to sign the current agreement and get the $246,000 for this year. As for the proposal involving Ken Davis, he thought the Mayor had worked hard on it, appreciated it, and felt the Council should stow some support. He suggested the Mr. Duke and Mr. Baine review the agreement as the County had, and make their own proposed changes. The Mayor said his motion would do this, that it was not asking the Council to approve the agreement as amended by the County. Councilmember Cole said he thought Ken Davis should work with Mrs, Allen and Mr. Duke to arrive at a number, and to remember that many County residents had businesses in the City, and paid a good deal in sales tax. Councilmember Wagamon said he supported the Mayor and Councilmember Barrett's suggestions, said this • looked as if the County was doing something new, and asked the Council to give it a chance. Councilmember Forbus asked when the County's budget was due, and was told the same as the City's, due in October. Mr. Baine pointed out that volunteer firefighters do not have nearly the same cost structure and personnel expenses of stations that are manned. The Mayor said his motion was to authorize the City Manager and Finance Director to negotiate with Ken Davis to • City Council Meetings of May 2010 Book "V° determine a scope of services. The Mayon said the m Councilmember Woodward said he would like to have the Council charge the City Manager and the Finance Director to determine the scope of services by working with the County's representative, subsequent to approval by Council before hiring Ken Davis. The Mayor and Councilmember Cole accepted amending the motion in this manner. Councilmember Zander said she would like Mr. Duke to also prepare what the City's expectations are, in the event the City and County are not able to come to agreement on the scope of services. The Mayor agreed and felt it was critical that they be prepared to move forward if an agreement cannot be worked out. Councilmember Ray said he still felt this was a waste of time, that they could be doing the same thing in July, and have the County then say their budget was done. Mr. Baine said it was an attempt at compromise, and the Mayor clarified it was an attempt to compromise on a third party to determine the cost of services, on which the City and County have not yet agreed. The Mayor said the County's research had made them even more reluctant to increase their payment. Councilmember Zander asked what the County had indicated in terms of determining the methodology for determining an allocation. Councilmember Wagamon said he understood Councilmember Ray's point, and suggested Mr. Ray might propose an amendment that Mr. Davis' calculations recognize that the City residents are also County residents. The Mayor said he would second the motion if he would like. Councilmember Ray said the County could still cherry-pick their examples. Councilmember Wagamon withdrew the proposal of an amendment. The Mayor amended the motion to say "in coniunction with the County." There was further clarification that Ken Davis would not be hired until the Council approved the scope of services agreed on by both parties Councilmember Forbus made a motion to call the question. The motion was reread. The City Attorney clarified that Council was actually considering a motion to close debate, which required a second, was not debatable, and required a two-thirds vote to pass. The Mayor seconded the motion. • The motion to close the debate was approved 6-3. The main motion was approved. 6-3. d. Presentation, discussion and possible action to accept an interlocal agreement with Walker County and accept a payment of $246,000 for fire protection services for the 2009 -10 budget year. [Mayor Turner] The Mayor made a motion to accept the payment of $246,000 for the FY200 9-2010. Councilmember Forbus seconded the motion The motion passed unanimously. 9-0. e. Presentation, discussion and possible action regarding performance agreement and development agreement with Ravenwood Limited, including, but not limited to, requested expansion of the TIRZ and ownership interests of Ravenwood Limited. [ Counciimember Ray] Councilmember Ray reminded the Council they had not been sued by Ravenwood Limited, and had not received the promised monthly reports. He suggested the Council demand a Release of Liability from Ravenwood Limited for the Ordinance passed in 2009 for the reduction of the TIRZ before it voted on the expansion. Councilmember Cole said he would oppose this, as it was asking for a forfeiture of a Constitutional right. Councilmember Ray said the resolution was specifically in relation to the one specific ad. Councilmember Wagamon said he did not believe Ravenwood Limited and Mr. Williams were stupid, that their real intent was to insult, and that he felt they should formally apologize. Councilmember Ray confirmed two letters alleging possible legal action had been received by the City. Councilmember Forbus said he had attended the Rotary Club meeting where the same occurred. • Councilmember Templeton reminded the Council of the actions Ravenwood Limited had taken, and that setting boundaries was important. Councilmember Barrett said he had a concern that the Council's approach to resolving the issue be framed in a positive way, and ask for a return gesture of goodwill from Ravenwood Limited. The Mayor said he would frame a cover letter with the Resolution with this tone. Councilmember Barrett also said he felt Ravenwood Limited had been working with the City Manager, and that perhaps they perceived this as communicating with the City. Also, that he recollected that they had said they often visited the TIRZ Boards of municipalities, and that our TIRZ City Council Meetings of May 2010 Book "V" Board did not meet regularly. He hoped they would work harmoniously, while addressing concerns, as the City had made substantive changes to the agreement. Councilmember Woodward suggested Councilmembers Ray and Barrett invite Ravenwood Limited to lunch, • discuss the City's concerns and report to the Council. The City Manager said they were getting into areas handled by the Director of Public Works and himself. Councilmember Ray said he was fine with it, that the Mayor should also attend, and that it was a policy decision along with the ownership issue. Councilmember Ray said he would withdraw his motion if this were to happen and Councilmember Wagamon agreed to it as well. The Mayor said Mr. Kulhavy and Mr. Baine would also be included in the lunch. Councilmember Wagamon said he had heard Councilmembers saying "we" were invested in seeing this development is successful, but that he and many citizens did not feel government should ever have become involved in private development in this project. Councilmember Woodward said he respected Councilmember Wagamon's feelings, but that Ravenwood was out there and was a viable project, and that citizens had responded in the recent survey that they would like the type of things the development could expand into. Councilmember Woodward asked that they get their questions answered and move forward. Councilmember Barrett clarified that "we, the City" will have certain financial obligations either way, and had entered contractually into agreements, and that it was in their interest, financially, if there is more development there. He said they needed to maximize the advantage or minimize the damage. f. Presentation, discussion and possible action to instruct City Staff to review the City of Huntsville October 17, 2006 minute order to exercise Its option for additional 10 MGD raw water from the Trinity River Authority until the year 2020 and to advise on current status of option, if any, and If further action is needed to confirm or repeal the option. [Councilmember Wagamon] Councilmember Wagamon said he would like the staff to look into the agreement before the budget was completed to see if the City could get a better deal. Councilmember Woodward said the City planned for the future, and that there could still be seen a need for water options. He also mentioned industry such as Tenaska that could create a profit for the water. Councilmember Templeton said the City did not have the ability to treat the water, and that she had voted for it, • but always regretted it. She said that'd there was a need for the water, in a drought it wouldn't even be available. She further clarified that the price of the water in 2020 was projected to be ten times what it is now, and she wouldn't be able to afford it then. The Mayor said he thought it was important that they look for ways to utilize this resource they are already paying for. He said he was concerned that it was in excess of the needed capacity, even if they were able to treat it. Councilmember Forbus agreed, and thought the staff could look for ways to use the water. Councilmember Barrett said, in the future, water would become more of an issue, and encouraged proactivtty to leverage the water. Councilmember Ray asked if the contract guaranteed the option of the amount of water, and also wanted to know if there was still water available and how much it was being sold for. g. City Manager's Report 1. Discussion and guidance for pursuit of a plasma trash - to-diesel and electricity plant. The City Manager displayed the process and explained the procedure. 2. Discussion regarding Going Green conference attendance. The City Manager said Councilmembers Forbus and Zander had also attended. Councilmember Forbus mentioned even small things other municipalities are doing to create savings or reduce energy and water usage. 3. Discussion regarding Hurricane Ike round -two grants funding. The City Manager said this was highly regulated and related to HUD housing. 4. Update on Well 14 repair. Carol Reed said the initial repair on Well #14was at the incorrect depth and was being redone. She also confirmed the repairs on Well #19 would be less expensive than anticipated. • 5. Update on library construction. The City Manager had paused due to the discovery of fuel contamination in the ground around the library. 6. Discussion related to working through water issues. City Council Meetings of May 2010 Book °V" • The City Manager said the engineer for the 30" pipe would be here in two days. He also said Carol Reed was getting information on the TRA fitter. He said they had also asked for a groundwater study to determine the true capacity of the wells. Ms. Reed said it would be a system capacity study. Mr. Saine said the Census typically showed a growth rate of 1.1 %, but the current Census could potentially show a rate of 2.2 %, and that they needed also to anticipate growth and water needs for 2015 and 2020. Councilmember Wagamon asked if the 30° line could carry more water. Councilmember Woodward said there are two lines. The Mayor confirmed with Ms. Reed that the 30" line had a larger capacity than currently used. Mr. Baine recognized the April winners for the Lose for Life Health Improvement Program. 9. PUBLIC COMMENT John Cromer spoke on the Fire Protection Services Intedocal Agreement, and encouraged the Council to require the County to participate fairly. He also spoke against the expansion of the TIRZ. 10. MEDIA INQUIRIES There were no media inquiries made. 11. 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.) Councilmember Forbus noted the Huntsville High School Golf Team has represented Huntsville at the State competition. He also reminded the public that Sunday is Mother's Day, and promoted the Statue Gift Shop. Councilmember Woodward, on behalf of the Sam Houston Folk Festival and Sam Houston Museum, thanked the City's Police Dept. and Solid Waste Dept. for their assistance. • Councilmember Templeton said the Bruce Brothers Airport ribbon cutting would be held on Friday, May 2EP at 10am. 12.ADJOURNMENT The meeting was adjourned at i-06pm. •