MIN CC 10/29/2002CITY COUNCIL MEETING OF OCTOBER 29, 2002 BOOK "S"
424
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 29TH DAY OF OCTOBER, 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: Mark Erb OFFICERS:
William B. Green, Mayor John Esoobedo Bob Hart, City Manager
Gary Crawford Vance Howard Paul Isham, City Attorney
Jack Choate Judy Kayse Danna Welter, City Secretary
Ralph A. Davis, Jr. Steed Smith
PERSONNEL COMMITTEE MEETING [4:25 -5:10 p.m.]
The Personnel Committee met to discuss the compensation and classification final report.
FINANCE COMMITTEE MEETING [4:15 -4:22 p.m.]
The Finance Committee met to discuss the defeasance and redemption of the City's outstanding waterworks and sanitary
sewer system revenue bonds, Series 1991.
CALL TO ORDER [5:15 p.m.]
Mayor Green called the meeting to order.
PLEDGE OF ALLEGIANCE to US AND TEXAS FLAGS, INVOCATION
City Manager Bob Hart led the invocation.
PUBLIC HEARING on the PROPOSED ENTERPRISE ZONE
Charles Smither. Jr. Mr. Smither asked what is an industrial park and what effect would it have on the owners in the area. Mr.
Schindlerstated that there is no criteria making the enterprise zone an industrial site, it is a terminologyto put certain areas as
an Enterprise Zone. Mayor Green stated that the City had an architectural firm specializing in industrial locations come and
evaluate a number of sites in the City to see which locations had the greatest potential for economic development and we are
adding these locations to the Enterprise Zone map. This allows property in the zone to be eligible for a variety of grants.
PUBLIC COMMENTS
1. Mayor Green read Proclamation 2002 -30: Texas Recycles Day, 10" Anniversary and Tamara Chasteen accepted the
proclamation.
2. Walker County Heritaae Foundation —Donna Cauthen. Pam Markham John Pasket James Patton, Dan Philips Pamela
Turner, Morris Waller, Mac Woodward.
Mr. Woodward formally announced the establishment and organization of the Walker County Heritage Foundation
after a year of work by a group of individuals. The Foundation is chartered and received their tax exempt status in
September. Mr. Woodward introduced the Board.
Mr. Phillips stated that about a year ago a group of people decided to stop taking historyto the landfill and preserve
what items that could be preserved. The Foundations was formed and there are five areas being addressed: 1)
architectural department; 2) artifacts department; 3) department to identify intangible things (photographs, ceremonies,
etc.); 4) future history department; and 5) liaison department.
Ms. Markham stated that as of last month the Foundation entered into a contract to purchase the Joshua Home
located on 13� Street, built in the 1890's. Plans are underway to renovate the home and it will become the home of the
Foundation. There will be two spare offices to rent out. The Foundation has fund raising events scheduled and plans to
apply for grants.
Mayor Green thanked the group fortheir efforts and stated that the City is proud of what the Foundation is planning
to accomplish.
3. Lisa Prier. Ms. Prier stated she is concerned about the water and sewer rates and would like some explanation for the
high rates. She was concerned that the sewer calculation would not be computed each year.
Mayor Green stated that the City set rates based upon use. Mr. Hart stated that the rates are calculated on
November, January and February usage and does understand that some households with sprinkler systems are rated
higher and the City is setting guidelines to adjust the calculation in those cases. Mr. Hart stated he would visit with her
about these issues. Mayor Green explained the Enterprise Funds.
4. John Strickland. Mr. Strickland asked when the last time the City reduced any rates was. Mayor Green stated that he did
not have that information, but would inquire and provide him the information.
5. Mona Harrell. Ms. Harrell asked why the funds were not set aside in the past years to cover the cost of the new plant and
lines. Mayor Green stated that we were at this time issuing the bonds. She also asked about the golf course. Mayor
Green stated there were no tax dollars or water dollars for the course, it was a self - supporting operation. Ms. Harrell was
concerned about the citizens that could not afford the new rates.
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CITY COUNCIL MEETING OF OCTOBER 29, 2002 BOOK "S" 425
6. Jack Ross. Mr. Ross was concerned about the teachers' salaries. Council agreed that teachers were underpaid and
encouraged him to visit the School Board.
CONSENTAGENDA
1. Consider and approve minutes of the July 16 and August 6 meetings.
2. Authorize the City Manager to execute the proposed contract with Southwestern Bell (SBC) forthe upgrade from super
trunks to smart trunks at a cost not to exceed $7,500.00 to be funded from budgeted funds.
3. Approve sale of these properties held in trust, as identified by Grover Cook, Chief Appraiser, to E. Thomason in the
amount of $1,800.00.
4. Adopt Ordinance 2002 -10 -29.1, amending the Cafeteria Plan to increase the maximum medical expense reimbursement
to $5,200.00 annually.
5. Authorize the City Manager to enter into a four -year municipal lease contract with E -Z -GO Textron for 80 golf vehicles
totaling $48,590.40 per year ($194,361.60 for the four -year term), to be paid from golf course budgeted funds.
6. Approve the purchase of the wireless network and telephony systems, execute the contracts with Wireless Dynamics and
Global Data Systems to be funded from budgeted funds.
6. Approve the purchase of the wireless network and telephony systems, execute the contracts with Wireless Dynamics and
Global Data Systems to be funded from budgeted funds.
Knowing that security is a growing concern, a wireless system is a means to achieve the fundamental component
that will allow our City to develop and function in a waythat meets current technologywith the available resources that
our City has to offer. Our mobile emergency employees' response time will be increased and the transfer of voice and
data will be fast and secure.
I� The need for a wireless system derives from the fact that we could run the City in a combined, more efficient
manner, and that rising security issues and standards will have to be met and increased. We are behind the curve and
with the price of technology at its lowest, now is the time to implement a strategic two -part plan that will conned the City
and allow us to grow and expand from this implementation of the wireless and the telephony networks.
!.; Councilmember Erb made a motion to approve the purchase of the wireless network and telephony systems,
crcrutc tha mntrarfs wifh Wiralass Dvnnmir -s and GInhni Data Systems to he funded from hudpeteri funds as re-
STATUTORY AGENDA
(a) Adopt Ordinance 2002 -10 -29.2, nominating as area as an Enterprise Zone pursuant to the Texas Enterprise Zone
Ad; providing tax incentives; designating as authorized representative to ad in all matters pertaining to the nomination
and designation of the area described herein as an Enterprise Zone and Reinvestment Zone; and further designating a
liaison to act on all matters pertaining to the Enterprise Zone Ad once designated bythe Texas Department of Economic
Development; and (b) Adopt Resolution 2002- 10 -29 -1, supporting the nomination of three tracts of land fordevelopment
as an industrial park, designating an authorized representative; and further designating a liaison to ad on all matters
pertaining to the industrial park once nominated.
On March 27, 2001, City Council approved Ordinance 2001 -08, nominating areas in Huntsville as an Enterprise
Zone pursuant to the Texas Enterprise Zone Act. This allowed for certain tax incentives to induce the investment of
private resources in productive business enterprises located in severely distressed areas of the city, thus providing
employment opportunities for the residents of such areas. Due to the release of the 2000 Census data, other areas have
been identified that meet the necessary conditions and criteria to be included in the Enterprise Zone and designated as
potential industrial areas.
The purpose of this ordinance is to update the original Enterprise Zone in accordance with the new Census tracts,
designate the Mayor as the Citys authorized representative to act in all matters pertaining to the nomination, and
designating the Citys Director of Economic Development as the liaison for communication with the Texas Department of
Economic Development & local businesses. Resolution 2001 -10 -29.1 designates the three areas for industrial
Councilmember Crawford made a motion to adopt Resolution 2002- 10 -29 -1, supporting the nomination of three
CITY COUNCIL MEETING OF OCTOBER 29, 2002 BOOK "S" 426
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2. Adopt the daily fee rate schedules for the City of Huntsville Raven Nest Golf Course.
A surveywas done to compare rates within a 100 -mile radius of Huntsville. This helped to establish a baseforstaff
to begin working on green fees for the Raven Nest Golf Course. After draft rate plan was completed, it was distributed
' to several citizens to receive comments on the proposed rate schedule. A final rate schedule was then compiled after I
receiving input. f!
After discussion by City Council, it was decided to allow special rates for students only.
3. Adopt Resolution 2002 -10 -29.2, defeasance and redemption of the City's outstanding waterworks and sanitary sewer
system revenue bonds, Series 1991.
Bond covenants forwater and wastewater revenue bonds require that a city generate revenues suffcientto paythe
annual debt service requirements and annual operating expenses each year. For issues that were sold prior to 1997,
there was a requirement that the City of Huntsville not only generate revenues sufficient to pay the operating expenses
and debt service, but that revenues exceed expenses by 1% times the average annual debt service. With the 1997
issue, the coverage requirement was reduced to 1 %times the average debt service to be effective once all prior revenue
debt issues were paid off.
In preparing for the debt issue proposed in the FY 2002 -03 budget, First Southwest, the City's financial advisor,
has recommended the City place funds in escrowto prepay the 1991 debt issue, resulting in a 1 %times debt coverage
requirement for the new issue rather than 1 Y2 times requirement.
Funds in the approximate amount of $961,096 will be placed in escrow. The City currently has $292,791 in the
reserve, and interest and sinking funds for payment of this debt. The approximate difference of $668,305 will be funded
from unallocated funds. Debt payments that were scheduled in future years will replenish the unallocated reserves or be
used for other capital purposes. There are sufficient funds in the unallocated reserve to fund the escrow account and
have funds remaining that are within the Budget and Fiscal Policy reserve requirement.
Councilmember Howard made a motion to adopt Resolution 2002 -10 -29.2 defeasance and redemption of the
CitVs outstandina waterworks and sanitary sewer system revenue bonds. Series 1991: and Councilmember Smith
seconded the motion. The motion passed unanimousl
MAYORXITY MANAGER ACTIVITY REPORT
1. City Manager Program /Project Status.
1) EDA grant information
2) Bond information
3) City Council Meeting Schedule 2003
2. Future Events:
November 19 5:15pm
December 3 -7
December 17 5:15pm
City Council Meeting
National League of Cities Conference
City Council Meeting
RECESS FOR PRESENTATION AT RETIREMENT RECEPTION FOR LIBRARIAN JUDY HUNTER [6:40 -7:30 p.m.]
WORK SESSION on MUNICIPAL AIRPORT MASTER PLAN [7:30 -8:20 p.m.]
ADJOURNMENT '[8':2,0, p.m.]
AQ/
Danna Welter, City Secretary
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