MIN CC 08/20/2002CITY COUNCIL MEETING OF AUGUST 20, 2002 BOOK "S"
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MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 20TH DAY OF AUGUST, 2002, 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 a regular session with the following members present:
COUNCILMEMBERS: OFFICERS:
William B. Green, Mayor John Escobedo Bob Hart, City Manager
Jack Choate Vance Howard Paul Isham, City Attorney
Gary Crawford Judy Kayse Danna Welter, City Secretary
Ralph A. Davis, Jr. Steed Smith
ABSENT: Mark Erb
CALL TO ORDER [5:15 p.m.]
Mayor Green called the meeting to order.
INVOCATION
City Manager Bob Hart led the invocation.
PUBLIC HEARING on the PROPOSED FISCAL YEAR 2002 -03 BUDGET [5:18 -5:55 p.m.]
1. Mary Frances Park. Mrs. Park spoke on behalf of the Huntsville Public Library Board, stating their concern over the
deletion of a staff position for the new fiscal year.
2. Bonnie Strub. Ms. Strub spoke against (1) the proposed elimination of the library staff position and (2) the proposed
wayfinding contract awarded to a non -local company.
3. Gayland Moulder. Mr. Moulder, residentof Elkins Lake, voiced concern over the seweAwater line through the golf course
addition at Elkins Lake.
4. Dorothy Shandera. Ms. Shandera, as a representative of the Old Town Theater, asked consideration of funds to be
allotted to the Old Town Theater in the City's budget for continuing cultural operations for that community facility.
5. Sam Moak. Mr. Moak, as a representative of an unnamed citizen's group, spoke against several aspects of the
proposed budget and asked that the City not issue any more debt; start any more capital projects or annex any additional
areas until the budget could be presented to the public in more depth.
6. Charles Smither, Jr. Mr. Smither voiced opposition to several projects in the budget, namely to allot more money toward
park maintenance and City- funded youth activities.
7. Charles Grimes. Mr. Grimes voiced opposition to the proposed extension of Daisy Lane for the proposed fire station.
8. Dan Slater. Mr. Slater stated the City should live within its budget.
9. Jim Carter. Mr. Carter reiterated Mr. Moak's sentiments and also voiced opposition to the proposed swimming pool with
respect to the proposed location.
10. Andy Roberts. Mr. Roberts voiced opposition to the proposed extension of Daisy Lane for the proposed fire station.
11. Vernon Vanrouez. Mr. Vanrouez as a representative of the Second Step program, asked consideration of funds to be
allotted to the Second Step program in the City's budget in order to match State grant funds.
MAYOR'S REMARKS
The Mayor addressed some of the issues raised by the citizens, including: Library services; Elkins Lake golf course; Old Town
Theater funding; street projects; water, sewerand sanitation service delivery and rates; issuance of bonds; the proposed fire
station at Daisy lane; Entergy franchise fee funds; Second Step program funding; and the proposed swimming pool as part of
the Parks and Recreation Master Plan. He also answered additional citizen comments regarding the rate difference for water
between citizens and the State, the newly proposed subdivision, projected revenue from Tenaska and paying on a bond.
PUBLIC COMMENTS
1. Charles Smither, Jr. Mr. Smither raised several concerns over the contract with the golf course pro, namely the'extra'
benefits such as keeping a portion of the tournament fees, purchasing the pro shop merchandise, entitlement to
revenues from the pro shop for the first year of operation, and other points he felt needed clarification. The Mayor
responded that the contract was in line with other municipal course's pros and was only forthe first year, adding that the
incentives were included to help generate revenues from the golf course.
2. Shawn Lewis. Sister City Program. Mr. Lewis introduced the group of students who went to Japan as part of the Sister
Cities Program.
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CITY COUNCIL MEETING OF AUGUST 20, 2002 BOOK "S" 411
CONSENT AGENDA
1. Authorize the City Manager to renew the contract with First Southwest Asset Management, Inc. to perform arbitrage
rebate services for a five -year period at a cost of $20,000 per year to be paid from budgeted funds.
2. Authorize the City Manager to execute the contract with W. Kit Thomson to operate and manage the Raven Nest Golf
Pro Shop for the City of Huntsville.
3. Authorize the City Manager to enter into a contract with Reed, Stowe and Yanke, LLC for a Regional Recycling
Transfer Station Feasibility Study not to exceed $50,000 to be funded from budgeted funds.
4. Authorize the City Manager to approve the first amendment to agreement with Sam Houston State University for use
of Channel 7.
1. Authorize the City Manager to renew the contract with First Southwest Asset Management, Inc. to perform arbitrage
rebate services for a five -year period at a cost of $20,000 per year to be paid from budgeted funds.
There is a requirement that a calculation be made that compares interest earnings rates with interest paid rates on
debt proceeds that exceed $5,000,000 annually. Earnings are compared with the interest earnings at the rate paid on the
debt. The excess must be rebated and reported every five years. A calculation is made annually and a liability is reported
in the financial statements. First Southwest Asset Management has performed this service for the City for the last five
years. Estimated cost per year for the next five years is $20,000.
2. Authorize the City Manager to execute the contract with W. Kit Thomson to operate and manage the Raven Nest Golf
Pro Shop for the City of Huntsville.
City staff selected W. Kit Thomson to serve as the Golf Pro for Raven Nest Golf Course. His duties include
management responsibility of assigned services and activities of the pro shop division that pertains to the golf cart Fleet,
club house, retail sales, food and beverage, corporate and private tournaments, special events, and the driving range.
Compensation is based on normal practices in the golf industries and promotion of the game of golf. Kit will be paid a
base salary ($60,072); car allowance ($1,200); contract with the City for $2.00 per person for tournaments (not to exceed
$12,000 for the year 2002 -03); and assume responsibility for the merchandise in the Pro Shop.
Ray Black, Director of Community Services, introduced Mr. Kit Thomson to City Council. Mr. Thomson
summarized his experience as golf pro for the Council.
3. Authorize the City Manager to enter into a contract with Reed, Stowe and Yanke, LLC for a Regional Recycling
Transfer Station Feasibility Study not to exceed $50,000 to be funded from budgeted funds.
In April 2002, the City of Huntsville applied fora Solid Waste Management Grant from the Houston - Galveston Area
Council (H -GAC) to develop a study that would determine the feasibility of creating a regional recycling transfer station.
The City has had difficulty in maintaining the drop -off recycling center due to the transportation cost of the
recyclables to the market i.e. Houston. A regional recycling transfer station would service approximatelya 50 -mile radius
that would increase volumes collected, thereby lowering transportation cost and extending the viability of the recycling
program. The feasibility study would identify the service area, survey potential users, project potential recycling stream,
analyze end markets, analyze operational needs and costs and identify potential regulatory requirements.
4.
Authorize the City Manager to approve the first amendment to agreement with Sam Houston State University for use
of Channel 7.
The City entered into a contract with SHSU in June 1993 for SHSU to develop, organize, supervise and manage
Cable Channel 7. At the time of the execution of the contract, the City and SHSU agreed that the City would pay one-
fourth (1 /4) of its 4% franchise fee received from the telecable operator to SHSU forfunding Cable Channel 7. Sincethe
date of the agreement with SHSU, the City has renegotiated and entered into a new franchise agreement with Cox
Communications and the City now receives a 5% franchise fee. City staff discussed this increase with representatives of
SHSU and SHSU is agreeable to receiving one -fifth of the City's 5% franchise fee as consideration in supervising and
managing Cable Channel 7. The overall payment to SHSU has increased because of the increased franchise fees
received from Cox Communications. The amendment to the agreement changes the percentage paid to SHSU.
CITY COUNCIL MEETING OF AUGUST 20, 2002 BOOK "S" 412
STATUTORYAGENDA
1. Discuss the proposed 2002 -03 budget.
The proposed 2002 -03 budget was prepared based upon the direction provided by the Council and has been j
j reviewed by the Council at two budget workshops. The public hearing is an opportunity to review the proposed budget as I
compared to the desires of the citizens. This agenda item is placed so that final direction maybe provided to the staff in j!
order to finalize the proposed budget. '!
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City Manager Bob Hart asked the Council if they would like to schedule additional work sessions, add or discuss j
projects or move forward with the budget preparation. A work session will be added to the agenda for the next regularly j j
scheduled Council meeting (September 3).
2. Authorize the Mayor to execute an Interlocal agreement for fire protection services between the City of Huntsville and P.
Walker County.
The current contract between the City of Huntsville and Walker Countywill expire on September 30, 2002, due to
the termination notice issued by the County two months ago. The proposed contract is a one -year contract with
negotiations to begin in January 2003 for a long -term contract. The contract provides for continued operation at a it
minimum funding level. Equipment replacement, while minimally funded, does include a transfer of the existing balance
which would permit the City to move forward with the purchase of an additional fire truck during the fiscal year. Funding
for the current fiscal year will proceed under the provisions of the existing contract, whereby at the end of the fiscal year '.'.
reconciliation will occur.
Clearly, this contract is written to continue the current year's funding level in order to provide time to address long-
term needs. The fundamental issues which will need to be resolved include:
(1) A long -term funding strategyand contractual levels must be addressed prior to the City's abilityto address staffing
levels and equipment purchase strategies;
(2) The current and historical cost - sharing arrangements are as follows:
(a) The City currently pays approximately 58% of the fire contract and the County pays 42 %. This is different
than the much - publicized 50 -50 ratio because the County does not pay for building and equipment
maintenance as well as other fire - related charges.
(b) Property tax base for the City is $745 million as opposed to the County's tax base of $1.3 billion. !j '
Consequently, the average Huntsville homeowner bears 75% of the tax burden to fund the provision of fire
service within the community and county.
(c) The County collects sales tax to lower the property tax rate. 94.5% of the sales tax collected by the County is
generated through sales within the City of Huntsville.
(3) Fire response statistics for 1995 -2001 indicate that 31% of the calls are within the County and 69% of the fire calls'
are within the City. During that period, the high ratio between the two was 25175% and the low was 33/67 %.
Councilmember Howard made a motion to authorize the Mayor to execute an Interocal agreement for fire
protection services between the City of Huntsville and Walker County: and Councilmember Crawford seconded the
motion. The motion oassed unanimousl
3. Conduct a record vote to increase the property tax by setting a rate of 45 cents per $100 of assessed value, and instruct
staff to publish a notice of intent to adopt a tax rate of $0.45, and to schedule a public hearing on the proposed tax rate
for September 3, 2002 at 5:15 pm in the Council Chambers at City Hall.
There are specific requirements and a schedule of events that a municipality must follow as part of the tax rate
adoption process. An effective tax rate and rollback tax rate must be calculated based on a formula mandated by the
state. The effective tax rate is the tax rate that would impose the same total taxes as last year if you compare properties
taxed in both years. The rollback tax rate is the highest tax rate a taxing unit can set before taxpayers can start rollback
tax procedures. In both cases these rates are found by dividing the total amount of taxes by the total value of taxable
property with adjustments as required by state law. State law prescribes a notice that must be published in the paper.
At a council meeting, the governing body discusses the tax rate that they intend to adopt. A record vote is taken at
the meeting and if the notice and hearing limit is exceeded, the results of the vote is published in the newspaper and a
public hearing on the tax rate must be scheduled. The notice and hearing limit is the highest tax rate that may be
adopted without notices and a public hearing. It is the lower of the rollback tax rate or 103 percent of the effective rate.
Calculations have been completed. The effective tax rate is $0.43189; the rollback rate is $0.48877. The notice and
hearing rate is $0.44484. The tax rate included in the revenue estimates in the budget presented at the budget work
sessions is $0.45; an increase of $0.0175 over the current tax rate of $0.4325.
4. Approve Ordinance 2002 -08 -20.1, adopting an updated Drought Contingency Plan,
We originally submitted our Drought Contingency Plan in September, 1999. Wewere notified in November2001
that it was not "Administratively Complete" and required more information. The attached version has been tentatively
approved by the TNRCC but must be adopted by the City Council before it can be formally submitted to TNRCC for
official approval.
Councilmember Crawford made a motion to aoorove Ordinance 2002 -08 -20.1. adopting an undated Drought
Contingency Plan: and Councilmember Howard seconded the motion. The motion passed unanimously.
CITY COUNCIL MEETING OF AUGUST 20, 2002 BOOK "S"
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5. Approve the agreement between Montwalk Holdings, LTD and the City of Huntsville for the continued public use of
Rather Park.
Rather Park has been used as a City park for more than 20 years. Because the City does not own the park, very
little time or resources have gone into its design or maintenance although the park is mowed regularly. Main Street has
privately raised $2,000 to fund improvements to the park, much of which has come from Ben Powell and Nancy Powell
Moore who own the park. With their contributions and those ofother private individuals and institutions, the Powell's have
requested an update to the existing contract which was signed by Mayor Moms Waller many years ago.
ji 6. Approve Resolution 2002 -08 -20.1, authorizing the submission of an application to the Texas Capital Fund —Main Street
Program requesting a grant of $150,000 and committing a rash match from the City in the amount of $40,000.
The Texas Capital Fund is a U. S. Department of Housing & Urban Development grant program administered by
the Texas Department of Agriculture. It is earmarked specifically for Main Street cities with populations under 50,000 that
do not receive HUD entitlement monies. The funds most often go toward infrastructure improvements in the downtown
.' district of Texas Main Street cities. Cities may request up to $150,000.
Councilmember Smith made a motion to approve Resolution 2002 -08 -20.1, authorizing the submission of an
application to the Texas Capital Fund —Main Street Program requesting a grant of $150,000 and committing a cash
'J match from the City in the amount of $40,0007 and Councilmember Crawford seconded the motion The motion passed
unanimously.
7. Approve or deny the request for historic site exemption for the property located at 1322 Avenue O.
Pursuant to Article VIII of the Texas Constitution, Property Tax Laws, and Section 11.24 if the Property Tax Code,
the governing body of a taxing unit may grant exemptions or other relief from ad valorem taxes on historic sites. This
application must be filed annuallyto claim entitlementto the exemption. The City can chooseto allowa partial exemption
or 100% exemption. In the past, the City of Huntsville governing body and other tax entities have denied all applications
for historical exemption.
Councilmember Choate made a motion to approve the request for historic site exemption for the property located
at 1322 Avenue 0: and Councilmember Davis seconded the motion. The motion failed 4 -4, with Councilmembers
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MAYORICITY MANAGER ACTIVITY REPORT
1. Mayor Report:
a. Welcome to our new Golf Pro, W. Kit Thomson.
ji b. Appoint Ed Johnson as employee representative to the Employees Medical Health Plan Board of Trustees.
Councilmember Davis made a motion to appoint Ed Johnson as employee representative to the Employees
j Medical Health Plan Board of Trustees and Councilmember Kayse seconded the motion. The motion passed
unanimously.
2. Future Events:
September 3 5:15pm City Council Meeting; Public Hearing on Tax Rate; Budget Work Session
September 17 5:15pm City Council Meeting; Adopt Budget and Tax Rate
October 8 5:15pm City Council Meeting
October 15 7:OOpm Boards and Commissions Reception
'j October 29 5:15pm City Council Meeting
November 19 5:15pm City Council Meeting
December 3 -7 National League of Cities Conference
li December 17 5:15pm City Council Meeting
3. City Manager Report:
a. TXDOT has received approval from the Federal Highway Administration for the reversal of the ramps on either
side of SH 30; they have also approved the advance funding agreement. Also, the on -ramp at BOT has been
set for bidding next month, so we should see some work in that area soon.
b. A new City Engineer, Steve Stacy, has been hired.
c. The judge approved the final order on Oakwood Cemetery to transfer ownership to the City with October 1 as
the target date for transfer.
' d. SHSU Bearkat Mania is scheduled for the end of this week; the Police Department and Human Resources will
'i be setting up a booth with the Solid Waste Department to promote our trash cleaning efforts.
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ADJOURNMENT [77:45 p.m.]
Danna Welter, City Secretary