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MIN CC 03/23/2004LJ I CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T"_ 113 MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 23RD DAY OF MARCH 2004, IN THE CITY _ HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:00 P.M. I The Council met in a regular session with the following members present: COUNCILMEMBERS: Judy Kayse OFFICERS: !� Karl Davidson, Mayor Bob Tavenner Kevin Evans, City Manager Jack Choate Jim Willett Danna Welter, City Secretary Gary Crawford Mac Woodward Thomas Leeper, City Attorney i Vance Howard Steed Smith WORK SESSION [5:00 — 5:55 p.m.] The City Council conducted a work session to discuss the proposed creation of a Community Development Division of the Planning & Development Department, as presented by Glenn Isbell, P. E., Director of Planning & Development. CALL TO ORDER [6:05 p.m.] Mayor Davidson called the regular session to order. PLEDGE OF ALLEGIANCE to US AND TEXAS FLAGS, INVOCATION Director of Parks and Recreation Ray Black led the invocation. PUBLIC COMMENTS 1. Stan Folev. Mr. Foley, on behalf of the Huntsville Lakers swim team, asked permission to place registration signs in the City's right -of -ways. 2. Cheryl Eschenfelder. Ms. Eschenfelder spoke in support of the proposed creation of a Community Development Division in the Planning and Development Department in order to promote a spirit of collaboration and cooperation between the local area government and the local non - profit organizations in the community. 3. Scott Atnio. Mr. Atnip also spoke in support of the proposed creation of a Community Development Division in the Planning and Development Department, citing many of the same reasons that Ms. Eschenfelder touched upon. 4. David Cummings. Mr. Cummings spoke in opposition to the proposed tag rule. 5. John Strickland. Mr. Strickland asked if the City were now "under the auspices of the United Nations ", and if so, who regulates this code (in reference to the Council- adopted International Building Codes), and stated there was no budget so how could there be budgeted funds for a new fire truck. 6. Brian Woodward. Mr. Woodward commented that the wording on the bond items regarding levying an ad valorem taxis merely bond terminology and that no new taxes would be levied; and also spoke in support of the proposed TDHCA housing grant, the proposed fiber network contract with Walker County and the proposed tag rule. 7. Charles Smither, Jr. Mr. Smither spoke in opposition to the amendments to Title 25 regarding sediment and erosion control. CONSENT AGENDA 1. Authorize the City Manager to execute the joint election agreement with Huntsville Independent School District and Walker County Hospital District to conduct an election jointly on May 15, 2004 to be funded from budgeted funds. 2. Approve the purchase of one (1) 2004 Sterling pumper truck from Ferrara Fire Apparatus, Inc. in the amount of $189,485.23 to be funded from budgeted funds. 3. Approve the minutes of the January 13 and January 20, 2004 City Council meetings. motion passed 9 -0. 2. Approve the purchase of one (1) 2004 Sterling pumper truck from Ferrara Fire Apparatus, Inc. in the amount of $189,485.23 to be funded from budgeted funds. The Huntsville Fire Department is seeking approval for the replacement of a 1973 Ward LaFrance pumpertruck with a 2004 Sterling pumper fire truck. The 1973 Ward LaFrance will be kept as a reserve. Pricing was obtained through the Houston - Galveston Area Council (H -GAC) contract ate total cost of $189,485.23 from Ferrara Fire Apparatus, Inc. Purchases utilizing the H -GAC contract meet all competitive bidding requirements mandated by the State of Texas. CITY COUNCIL MEETING OF MARCH 23, 2004 BOOK "T" 114 STATUTORY AGENDA 1. Consider and take action to approve Ordinance 2004 -03 -23.1, Authorizing the Issuance of City of Huntsville, Texas Combination Tax and Revenue Certificates of Obligation, Series 2004; Levying an Ad Valorem Tax and Pledging Certain Revenues in Support of the Certificates; Approving an Official Statement; Authorizing Execution of a Paying Agent/Registrar Agreement and Bond Purchase Agreement; and Ordaining Other Matters Relating to the Issuance of the Certificates. Financial advisor Boyd London of First Southwest explained both statutory agenda items 1 and 2 at this time, explaining the issuance of the bonds for the new fire station and the refunding bond series. He presented to Council a brief overview of the sale of the bonds that had occurred the day prior, and the savings the City had realized with the refunding bonds. 2. 3. Consider and take action to approve Ordinance 2004 -03 -23.2, Authorizing the Issuance of City of Huntsville, Texas General Obligation, Series 2004; Levying an Ad Valorem Tax; Approving an Official Statement; Authorizing Execution of a Paying Agent/Registrar Agreement, Bond Purchase Agreement and an Escrow Agreement; and Ordaining Other Matters Relating to the Issuance of the Bonds. Consider and take action to approve Ordinance 2004 -03 -23.3, Amending Title 25 "Streets and Sidewalks;' to add a section addressing the problem of Sediment, Mud and Erosion from Construction Sites, Site Clearing Operations and Logging Operations Creating Nuisances and Hazards on Public Streets and Sidewalks; Renumbering of Sections as Necessitated by the Adding of a New Section, and Providing a Penalty Clause. 4. Considerand take action to approve Ordinance 2004 -03 -23.4, amending Title 12 "Fire Prevention and Protection, "of the Huntsville, Texas Municipal Code to Add Language to Provide for an Amendment to the International Fire Prevention Code, 2000 Edition, Previously Adopted by Reference as the Fire Prevention Code of the City. 5. Considerand take action to approve Ordinance 2004 -03 -23.5, amending Title 9'Buildings and Building Regulations;' of the Huntsville, Texas Municipal Code to Add Language to Provide for an Amendment to the International Residential Code, 2000 Edition, Previously Adopted by Reference as the Residential Code of the City, 6. Consider and take action to approve Resolution 2004 -03 -23.1, authorizing City Manager Kevin Evans to execute all required documents, including a match commitment of up to $100,000 in cash and up to $25,000 of in -kind match along with up to $250,000 in cash reserves (interim working capital) for an application to TDHCA for up to $500,000 in Owner- Occupied Housing Assistance funding. TDHCA makes HUD HOME Program funds available to non - entitlement jurisdictions throughout the State through a competifive application process. The City of Huntsville was awarded funding from this program in 1998 and 2000, providing 13 homeowners with new or substantially repaired housing. An application in 2003 fell short of the points required for funding, primarily for lack of cash match. The desired match is 25% of the amount of grant funds requested. This proposal will commit $100,000 in cash and $25,000 of in -kind match consisting of waived fees and absorbed demolition costs. Another option for the Council to consider is to apply for this grant on a smaller scale. Passing a resolution in support of the grant process is required, but the Council is not required to applyfor the full grant of $500,000, as long as the Cih/s match for the grant is equal to 20% of the total grant and the in -kind match is identified as well. Please note that the commitment of matching funds is for FY 2004 — 2005 budget year. COuncilmember Crawford moved tO approve Resolution 2004 -03 -231 authorizing City Manager Kevin Evans to CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T' 115 Consider and take action to approve City participation in providing water service consistent with the City's CIP to a proposed new facility in the eastern part of Huntsville. Transit Mix has identified a potential new site for the existing Ready Mix operations. The site is located in the eastern part of Huntsville near the intersection of US Highway 190 and Champion - Woodyard Road adjacent to the existing Pavers Supply facility. Due to remoteness of the proposed site, significant infrastructure improvements will be necessary to serve the site. Water and sewer service is not readily available. For water service, there are two options available to extend water to the proposed site: '. The first option is to connect to the existing 6 inch water line at the intersection of US Highway 190 and Champion Road. This extension would require 1,720 linear feet of 6 inch line to be constructed to the site. This option is not consistent with the City's water CIP for the area. The second option is to connect to the existing 12 inch water line located at the intersection of Geneva Road and US Highway 190. This would require replacing the existing 6 inch water line between the intersections of Geneva Road/Highway 190 and Champion Road /Highway 190 and constructing a 12 inch water line along Champion Road to the proposed site. The total length of 12 inch water line would be 2,195 linear feet. Also, a road bore would be required across Highway 190. Extending a 12 inch waterline would be consistent with the City's water C /P. Sewer service is not readily available to the site. Transit Mix would like to install anew aerobic system to serve the site. This will require a variance that must be approved by the Planning and Zoning Commission. Therefore, extending sewer service to the site has not been requested at this time. If an aerobic system is approved for installation, the County will approve the system because the site is out of the City Limits. Staff recommends installing a 12 inch water linethatwill be consistentwith the City's waterCIP forthearea. Also, staff recommends the project be designed by the developers engineer and the construction of the water line be administered by the City 8. Consider and take action to approve the creation of the Division of Community Development within the Department of Planning and Development, and provide additional funding of $37,391 for FY 03 -04. Currently funded grant contracts have maximized present staffing, making it nearly impossible to pursue additional grants and maintain compliance responsibilities. Creation of this division will improve management of currentlyfunded grant contracts and improved capacity to seek new planned and necessary grants and improve communication with community based non - profit organizations and the ability to provide measures of accountability. 9. Consider and take action to approve the interlocal agreement between the city and county for the fiber network and backbone systems to be funded through funds acquired from HGAC ($125,000.00), Walker County ($10,445.00), and through budgeted funds of the COH Information Services Department ($14,555.00). With security a growing concern, the fiber system is a means to achieve the fundamental component that will allow our city and countyto develop and function is a waythat meets current technology with the available resources that our city and county has to offer. Our mobile emergency employees' response time will be increased and the transfer of voice and data will be faster and more secure. The entities that will initially be connected will be: Dispatch (911), Walker County Sheriffs Office, Walker County Jail, Municipal Court, COH Service Center, Fire Station # 3, City Hall, Police Department, EMS, Fire Station # 1, Library, Walker County Courthouse, Walker County Annex, and the new Walker County Annex (Old Region VI building). The need for a redundant system derived from the security concerns of HomeLand Security and the need forthe city and county to work together with Dispatch and GIS applications such as city and county mapping and that rising security issues and standards will have to be met and increased. I 10. Considerand take action to approve Ordinance 2004 -03 -23.6, creating a tag rule for the City Council. ICI No motion was made on this item. jl RECESS [8:41 — 8:53 p.m.] I CITY COUNCIL MEETING OF MARCH 23 2004 BOOK "T 116 MAYOR/CITY MANAGER ACTIVITY REPORT Discussion of the progress of current fiscal year budget, status of city's overdue independent audit and the overall financial condition of the city, as presented by Mayor Karl Davidson. City Manager Kevin Evans read a statement from Acting Finance Director Steve Ritter regarding Mayor Davidson's concerns: "The following is provided to address the questions and concerns which Mayor Davidson has in his letter /memo of March 17, 2004 which you "copied" me on. "Relating to the timeliness of the Budget document and the Audit I believe a review of events of the last 15 to 16 months will provide some explanation: 'The City has been without a permanent Finance Director for 10 '/2 months out of the last 15 '/2 months (since December 2002) ; during 2 of the months (February and March) of the 10'/2 months the City had an "Interim Finance Director'; the Interim was able to finish the FY 02 -03 Budget Document. "Finance and Accounting went from a staff of 60+ years experience to 15 years experience; as such I was having to take additional time to learn and teach different procedures and operations of the department. "We went through a conversion of Accounting software systems which in itself is a major task to complete but in addition to that we were the "Beta" on the new software ( Beta meaning we were a "test" user in helping the vendor finish developing the software) which was done to save the City $300,000. 'The City is tied into the State on its Procurement Card. The State decided to change its Procurement Card from one bank to another and we had to issue new cards and to learn howto use the new bank's system and teach this to the other departments. "Also, Mr. McCullars leaving just before the end of the fiscal year has impacted things greatly. Had he been able to stay 2 additional months then I believe the Budget document would have been completed by the end of January. Had he been able to stay 4 additional months then the audit would probably have been finished by the end of January. "I do not take lightly the fad that we are past the 120 day Stale Law requirement for the Audit. We have been in contact with all state agencies with which we have grant contracts. When I accepted the offer to be "Acting" Finance Director I did not have any delusions that I would be able to do 2 jobs completely. My desire was to provide some stability and keep morale up and ensure we did not stumble in meeting bond requirements and making bond payments, and that we got vendors paid, employees paid, that divisions had budgets to work with and we were able to provide employees, directors, the City Manager, City Council, Mayor and other requestors with financial information they needed. "I did not envision that itwould be more than 6 months before a permanent Finance Directorwould be in place. (70 — 80 hour work weeks get old after about 3 months) I have learned from the experience which will benefit me in the future and will also help me in assisting the new Finance Director. "As to when the Budget Document and the Audit will be complete: 'We have been getting information into the Budget Document. I would imagine the new Finance Director would "pick this up and run with if' as soon as he arrives. We have an extension with GFOA until April 16'" to submit the document for the Distinguished Budget Presentation Award which is not a legal requirement but a "are we doing things right" review by a professional peers entity. "Completion of the audit should be sometime in April and the printed Comprehensive Annual Financial Report hopefully will be finished by the end of April. Please see reasons provided above about time issues. "Concerning the Budget Document and decision making by City Council: 'The Budget has been entered in the financial accounting software system (New World) and reports are available for compadng Actual Expenditures and Revenues to Budgeted Expenditures and Revenues. My understanding was that Council would review financial operations quarterly. 1" Quarter (October'03 thru December'03) reports were provided to council and these same reports were provided to the Library for Citizen access. "In response to the question of the overall financial condition of the city and does the city have adequate funds to meet all of its obligations. "In my opinion the City is still in good financial position and has had adequate funds to meet all of its financial obligations for the last 15 Y2 months. Also, based on existing assets and the fad that revenues have met or exceeded budgeted amounts for the first five and one half months of the current fiscal year I believe we will continue to have adequate funds to meet our obligations. "I will provide Balance Sheets and Income Statements from New World for General Fund, Debt Service Fund, Water Fund, Wastewater Fund, Solid Waste Fund, Golf Fund, and Street Special Revenue Fund as of 3/22/04. The Income Statements also provide Budget amounts and show Budget Balances and % of Budget Used. These Funds account for about 91 % of the City's annual operations based on budgeted amounts for the'03204 Fiscal Year. I will also prepare a shortened version of the "Investment Report" as of 3/22104 with copies of Cityof Huntsville account reports as of 3/22/04 from websites of First National Bank, Texpool, and MBIA. "Concerning the financial condition of the City's Raven Nest Golf Course, and how is the city funding the operating losses: "At your direction Glenn Isbell and I have been gathering information on the golf course relating to all construction and also the operations. This information will be available for Council by next week so that at its April 6, 2004 meeting it may take any action it desires at that time." Mr. Evans also stated he would present a full report of the golf course's final construction and current financial condition (as of February 12) at the work session scheduled for April 6. Mr. Ken Davis, P.C., the City's auditor, stated the system this year has been very inefficient, but they have begun the audit process. When the final numbers are in, he will have additional staff to assistin and speed up the process. He stated the City's accounting department is extremely understaffed and has been for too long. He stated there would be a 0 CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T 117 jinumber of items in the management letter that normally do not apply to the City, the City has always been exemplary in !I financial reporting." � l Mr. Evans reiterated that there is a new Finance Director that will be coming on board in the next few weeks, and I� it that the City is in good financial condition, even thought the budget document was not prepared timely. Councilmember I' Willett affirmed this, stating the Finance Committee had been meeting regularly to cover the City's financial status. 2. Update on TIRZ status as presented by City Manager Kevin Evans. Mr. Evans reported that he had hired the consultant firm of Schrader & Cline to review the proposed TIRZ. After their initial reviewwith Bill Calderon, they have developed a tentative calendarfor the proposed TIRZ including all the other entities. If everything goes well and as planned, this calendar outlines the fastest track to create the TIRZ. Mr. Evans suggested that the history that he is aware of regarding this type of project has been positive, and the Council will have the report by Schrader & Cline to help in making their decision whether or not to proceed. WORK SESSION on CHARTER REVIEW COMMITTEE RECOMMENDATIONS [9:30 -10:00 p.m.] 1. Public comments. No one presented for public comments. 2. The City Council will conduct a work session to discuss the Charter Review Committee recommendations. 3. Take action, if necessary, on any of the items listed in Bb. above. The following items were presented and approved and/or disapproved for placement on the ballot regarding amendments to the City Charter: 1. The charter amendment to update state statutory references contained in the charter. APPROVED 2. The charter amendment to change action of the Council from "shall" to "may" regarding the annexation of uninhabited property when the owner of that property requests the annexation. APPROVED 3. The charter amendment to require one Councilmember elected at -Large to reside in Ward 1, another Councilmember elected at -Large to reside in Ward 2, a third Councilmember elected at -Large to reside in Ward 3, and a final Councilmember elected at -Large to reside in Ward 4. DECLINED ' 4. The charter amendment to change term limits for the Mayor from four consecutive regular terms to four regular terms and Councilmembers from four consecutive regular terms to four regular terms. DECLINED 5. The charter amendment to set the compensation of Councilmembers at $25 for each regular meeting which the member attends and the compensation of the Mayor at a monthly salary of $100. DECLINED 6. The Charter amendment to set the petition requirements for initiative, referendum, and recall at 20% of the number voting in the last Presidential election in the City, but not less than 2,000. APPROVED (with change of 1,500 to 2,000) 7. The charter amendment to require that the Judge of the Municipal Court be an attorneyat law. APPROVED S. The charter amendment to require the Director of the Department of Finance to be appointed by the City Manager. APPROVED 9. The charter amendment to require the Director of Finance to perform fiscal procedures specified in the City Charter. APPROVED 10. The charter amendment to require the City to maintain an official website. DECLINED 11. The charter amendment to remove the veto power from the Mayor. ADDED '.j EXECUTIVE SESSION [10:00 -10:07 p.m.] The City Council will conduct a closed session under Texas Government Code, Chapter 551, Section 551.072 to deliberate the purchase, exchange, lease or value of real property, namely acquisition of easements for sanitary sewer service. RECONVENE ADJOURNMENT [10:10 p.m.] Danna Welter, City Secretary