MIN CC 08/18/1998CITY COUNCIL MEETING OF AUGUST 18, 1998
BOOK "S"
161
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 18TH DAY OF AUGUST, 1998, IN THE CITY
HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M.
The Council met in regular session with the following members present:
COUNCILMEMBER
William B. Green, Mayor
Ron Lange
Marjorie Rex
Dave Luning
Ann James
David Martinez
Vance Howard
JoAnn Matthews
ABSENT: Dan Davis
Officers:
Gene Pipes, City Manager
Scott Bounds, City AttorneyI
Danna Welter, City Secretary
FINANCE COMMITTEE MEETING to: a) discuss the financing options for the debt issue; b) review the depository bids and
recommendations by City Council, c) review the T.M.R.S. contribution rate options; d) review the fiscal and budgetary policies and
the investment policies; e) review the broker dealer list; and f) administrative activity report. [4:00 p.m. - 4:35 p.m.]
EXECUTIVE SESSION to discuss: a) pending litigation - A.N.N.S. CCN applicationhearing; Mid -South electric franchise agreement;
Entergy rate case and franchise auditresolution; b) property acquisition -Willow Street right- of- way/Kesterson; waterline right -of -way;
and c) deliberations concerning prospective gift of money. [4:35 p.m. - 5:10 p.m.]
CITIZEN INPUT/INQUIRY
1. Jim Wade.Mr. Wade stated that as we approach the millennium, our community will face the most serious challenge ofourhistory.
The year 2000 computer problem has significant implications in our community at large and he does not feel it is being addressed
adequately. He encouraged Council to began to inform the public immediately about the seriousness of this problem and stress the
importance of preparation, and to follow up and make sure that appropriate measures are taken. He requested that Council appoint a
local task force of concerned citizens who will help organize our community to assess and prepare for this potential crisis. He would
llj like Council to encourage churches, organizations, and neighborhoods to marshal their resources and began to prepare for the year
2000.
Mayor Green stated that Council would take his recommendations into consideration.
2. Charles Smither, Jr. 1) Mr. Smither stated that later in the agenda, Council will discuss the water supply for Timberwilde and he
opposes the use of City tax dollars spent on non -city residents. 2) Mr. Smither stated that he read in the Item about the City's
participation in a 1.5 mile extension road from the Post Office site. He stated that he has looked at a copy of a contract which states
that the City's participation would be 550 feet. It also appears that the contract has not been executed by the Reed's and he would like
an update on its status.
Mr. Pipes stated that the current status is that the City has entered into a design engineering agreement with Gerald Harris for the
work on the public improvements relative to that site (water, sewer and 550 feet of roadway). Once this work is completed and the
project is ready to bid, then the letter of credit or cash will be retained.
3. Neil Franklin. Mr. Franklin stated that he has been a resident of Elkins Lake for 21 years. He is in favor of the arterial mad and
feels Council is doing a great deal of good for the City of Huntsville. He stated that he feels the second entrance should be put in as
soon as possible and feels that a fire substation should be located on the west side.
INVOCATION
Invocation by J. D. Schindler, Director of General Services.
I CONSIDER MINUTES OF AUGUST 18, 1998
Councilmember James made a motion to approve the minutes of August 4 1998 and Councilmember Rex seconded the motion.
The motion passed unanimously. NOTE: Councilmember Davis absent.
ATTENDING CITIZENS
1. Betty Sutton, Huntsville Garden Club, to present a proposal to host the Annual Herb Festival on the first Saturday in Mayon the
City Hall grounds and allow the Club to charge for booth space as a fund raiser for community beautification projects.
CITY COUNCIL MEETING OF AUGUST 18, 1998 BOOK "S" 162
Councilmember James made a motion to allow the Huntsville Garden Club to host the Annual Herb Festival on the first Saturday
in May on City Hall grounds and allow the Club to charge for booth space and Councilmember Matthews seconded the motion The
motion passed unanimously.
2. Keith Jenkins, Parks Advisory Board, to present recommendation on changing the name of the Huntsville Parks Advisory Board
to Huntsville Parks and Recreation Advisory Board.
Councilmember Howard made a motion to direct staff to prepare a resolution changing the name of the Parks Advisory Board to
the Parks and Recreation Advisory Board and Councilmember Martinez seconded the motion The motion passed unanimously.
Mayor Green stated that the grant application to the Texas Parks and Wildlife was not accepted because they said that two pieces
of property we listed were not eligible. City officials went to Austin and met with officials from Texas Parks and Wildlife regarding
these two pieces ofproperty. Additional information is being provided to them and it is anticipated that they will reverse their decision.
CONSIDER BID FOR CONSTRUCTION OF SANITARY SEWER LINE IN TALL TIMBERS TO BE FUNDED
BY GRANT FUNDS FROM TCDP TO DOUGHTIE CONSTRUCTION IN THE AMOUNT OF $307,820.70
Councilmember Rex made a motion to approve the bid for construction of sanitary sewer line in Tall Timbers to be funded by
grant funds from TCDP to Doughtie Construction in the amount of $307.820.70, and Councilmember Matthews seconded the motion
The motion passed unanimously.
Mr. Pipes stated that staff has been acquiring the necessary easements in this area for some time. The heirs of one tract have
indicated that they are not willing to donate or sell the right -of -way to their late mother's land. The consensus of Council was to
condemn the property if no alternatives are available.
CONSIDER AGREEMENT FOR CONSULTING SERVICES BETWEEN
THE CITY OF HUNTSVILLE AND KLOTZ ASSOCIATES
Mr. Billy Cook, Klotz Associates, summarized the agreement and presented summary pages for the engineering, design and
construction of the urban arterial street.
Mayor Green stated that officials with the City and the Recur are continuing negotiations relative to the second entrance and stated
that the work order could be adjusted as needed if a resolution is reached.
Mr. Pipes stated that the funding for this project would need to be the General Fund unallocated reserve, with the understanding
that the project will be put in the capital budget as an approved project, and reimbursed from the certificates of obligation due to be
issued in September.
Councilmember Luring made a motion to approve the agreement forconsulting services between the City of Huntsville and Klotz
Associates, to be funded from the General Fund unallocated reserve, put in the capital budget and be reimbursed from future debt issue
and Councilmember Rex seconded the motion. The motion passed unanimously..
CONSIDER AUTHORIZATION FOR THE CITY MANAGER TO ENTER INTO AN INTERCONNECT
AGREEMENT WITH WALKER COUNTY RURAL WATER SUPPLY CORPORATION
FOR EMERGENCY SERVICE/ SUPPLEMENT TO THE TIMBERWILDE WATER SUPPLY SYSTEM
Mr. Wilder stated that staff has experienced some difficulties with the Timberwilde water supply system over the past few weeks.
Walker County Rural Water Supply Corporation is willing to place an emergency connection between the two systems in an effort to
minimize some of the outages until such time as the City can run its lines out to Timberwilde. They are also willing to sell up to
100,000 gallons per day. The cost of this water is at a higher rate than what the City sells it. Staff is requesting that TNRCC allow
the rates to be adjusted to cover the cost of the water. The installation of the interconnect would cost the City approximately $16,500.
After discussion, it was the consensus of Council to fund the interconnect but to only buy the water in emergency situations.
Councilmember Luning made a motion to authorize the City Manager to enter into an interconnect agreement with WCRWSC for
emergency water supply for Timberwilde, and Councilmember Howard seconded the motion Mavor Green and Councilmembers
Luning, Howard, Lange Rex and Martinez voted for, and Councilmembers James and Matthews voted against. The motion nassed
6 -2
MEETING OF AUGUST 18, 1998 BOOK "S"
163
CONSIDER THE PROPOSED TAX RATE NECESSARY TO SUPPORT THE PROGRAM OF WORK CONTAINED
IN THE PROPOSED BUDGET FOR FY 1998 -99; CALL A PUBLIC HEARING ON SEPTEMBER 1, 1998
TO RECEIVE COMMENTS ON THE TAX RATE AND PROPOSED BUDGET; AND
DIRECT THE PUBLICATION OF THE REQUIRED NOTICES
Councilmember Luning made a motion to publish notice of City Council's intent to adopt a tax rate of $.4344, and call a tax rate
public hearing for September 1 1998 and Councilmember James seconded the motion. The motion passed unanimously.
CONSIDER ORDINANCE 98 -08 -18.1 AMENDING THE TOW TRUCK ORDINANCE
TO INCREASE THE RATE FOR CITY DIRECTED TOWS
Mr. Bounds stated that Councilmember Martinez had signed a conflict of interest on this issue and would not be voting.
Councilmember Rex made a motion to approve Ordinance 98-08-18.1 amending the tow truck ordinance to increase the rate for
City directed tows by $10.00, and Councilmember Matthews seconded the motion. The motion passed unanimously. NOTE:
Councilmember Martinez did not vote.
MAYOR'S ACTIVITY REPORT
1. Consider allocation of funds necessary for Councilmembers to attend the Texas Municipal League Annual Conference in San
Antonio, October 28 -31, in an amount of S1,000 per Councilmember.
Councilmember Lange made a motion to approve the allocation of funds necessary for Councilmembers to attend the TML Annual
Conference in San Antonio in an amount of $1,000 per Councilmember. and Councilmember Rex seconded the motion The motion
passed unanimously.
2. Consider appointment of Dalene Zender to the Parks and Recreation Advisory Board replacing resigning member Nancy Tiller.
Councilmember James made a motion to appoint Dalene Zender to the Parks and Recreation Advisory Board and Councilmember
Matthews seconded the motion. The motion passed unanimously.
3. City Attorney matters: i) party status in Entex class action franchise suit; it) Entergy franchise audit; and iii) Entergy rate case.
Mr. Bounds stated that the City of Pearland has sued Entex for underpayment of franchise fees. The suit is maintained as a class
action on behalf of all municipalities. The City of Huntsville has the right to opt out of the lawsuit. After discussion with other City
Attorneys, it is recommended that the City not opt out. The consensus of Council was to remain a part of the class action suit.
About October 1996, City staff began investigating the potential underpayment of franchise fees by Entergy /Gulf States. In
December 1997, the City employed Clarence W est to review the City's franchise agreement and collect any amounts owed to the City.
The subsequent investigation revealed that the Company had incorrectly calculated the franchise fee back to about 1968. As a result
of that action, Entergy /Gulf States has recently paid the City $1,218,000 in back fees. The City has paid Clarence West under a
contingent fee agreement.
Councilmember Luning stated that the Entergy rate case has been decided by the PUC and Entergy has started rebates as of the
August billing. Twenty percent was planned for August and twenty percent in September. The remainder of the rebate is to be split
over a twelve month period. The reduced rates are scheduled to take place in October. It is anticipated that Entergy will appeal.
4. Consider an agreement to accept gift of money.
Mayor Green stated that an agreement has not been reached yet on the gift of money. This item will be brought back at a
subsequent meeting.
COUNCILMEMBER ACTION
1. Consider award of bank depository agreement, as recommended by the Finance Committee, as presented by Councilmember
Luning.
Councilmember Luning made a motion to accept the bid from American Bank (East Texas National Bank of Palestine) as the City's
depository , and Councilmember James seconded the motion. The motion passed unanimously.
Councilmember Luning made a motion to approve Bank One as the City's safekeeping bank and Councilmember Howard seconded
the motion. The motion passed unanimously.
CITY COUNCIL MEETING OF AUGUST 18 1998 BOOK'S' 164
2 Kids Day in the Park. Councilmember James stated that this Saturday was the Kids Day in the Parkin Emancipation Park and
encouraged Councilmembers to attend.
3. Engagement. Councilmember Matthews stated that she was now engaged to be married and introduced Joseph Castille to City
Council
MEDIA INQUIRIES
Wayne Sorge, KSAM asked about the ramifications from the Mayor's prospective relating to the two petitions being circulated to
force an election on the certificates of obligation for the transportation projects. Mayor Green stated that if the petition is presented
with the required number of signatures, City Council will rethink the way the project is financed. Mayor Green stated that he is
confident that at least a portion of the project will be constructed. City Council feels that this project is important for the citizens of
Huntsville.
ADJOURNMENT
Mayor Green recessed into Work Session to continue presentation/discussion of the FY 1998 -99 budget. [6:45 p.m. - 7:40 p.m.]
Mayor Green recessed into Executive Session to discuss personnel matters: report and discussion on the annual performance
evaluation of the four charter employees by the Personnel Committee and Mayor. [7:45 p.m. - 8:20 p.m.]
Danna Welter, City Secretary
Ll