Minutes - 04/03/2012MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 3RD DAY OF APRIL 2012, IN THE CITY
HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:OOPM.
The Council met in a regular session with the follo_wing:___
COUNCILMEMBERS PRESENT: Mac Woodward, James Fitch, Lydia Montgomery, Don H. Johnson, Keith D. Olson, Joe Emmett, Tish Humphrey,
Ronald Allen, Clyde Loll
COUrTC1LMEMrStKS ABStN C none
OFFICERS PRESENT: Bill Baine. City Manaaer: Leonard Schneider. City Attorney. Lee Woodward. City Secretary
WORKSHOP (5:OOPM) — The Council will hold a workshop to review the City's Capital Improvement Plan
[Councilmember Allen arrived at 5:20, Councilmember Loll arrived at 5:30.]
Aron Kulhavy, Director of Public Works, and Tom Weger, Project Manager discussed the five -year Capital Improvement
Plan.
REGULAR SESSION [6:OOPM]
1. CALL TO ORDER
2. INVOCATION AND PLEDGES
U.S. Flag
Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible.
Councilmember Loll gave the invocation and Renee Pritchard led the pledges.
3. PRESENTATIONS AND PROCLAMATIONS
Proclamation for Sexual Assault Awareness Month
City Manager Bill Baine recognized the twenty -three years of excellent service to the City of recent retiree Roger
Short
Presentation by Walker County on options for jail
Sheriff Clint McRae, and Jail Administrator Captain Steve Fisher discussed either upgrading the existing jail or
building a new facility, addressing a number of concerns in relation to current jail standards, at a possible price of
$18.9 -20 million. The Mayor noted the County Jail served all law enforcement agencies located in the County.
Sheriff McRae confirmed the City had 15% ownership of the current facility and provided water /sewer /garbage
services in exchange for housing inmates. He also said the current facility could have other uses if new
construction was selected. Councilmember Johnson was told land for new construction was included in the
financial amounts and Captain Fisher said additional beds in a new facility could generate revenue.
4. PUBLIC COMMENT
a. Related to any matter not on the agenda — 2 minutes per speaker
b. Related to any matter on the agenda — 5 minutes per speaker
5. CONSENT AGENDA
(Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff
recommendations. An item may be 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 Regular Session held on March 20, 2012. [Lee Woodward, City
Secretary]
b. Approve Task Order #5 with Schaumburg & Polk, Inc. (SPI) for engineering and design services related to
the construction of sidewalks along Lake Road and Avenue J. [Tom Weger, Project Manager]
Councilmember Loll made a motion to aoorove the Consent Aoenda and was seconded by Councilmember Fitch.
Councilmember Johnson noted item b was policy that had been seen through to construction.
The Mayor announced the motion oassed unanimously.
6. STATUTORY AGENDA
a. Presentation, discussion, and possible action to approve Resolution 2012 -18 approving Resolution R -1349
of the Trinity River Authority authorizing the issuance, sale, and delivery of Trinity River Authority of
Texas (Huntsville Regional Water Supply System Project) Contract Revenue Bonds, Series 2012, and
approving and authorizing instruments and procedures relating thereto. [Winston Duke, Finance Director]
Councilmember Olson made a motion to approve Resolution-2012-18 and was seconded by Councilmember
Montgomery.
Winston Duke, Finance Director, introduced Boyd London from FirstSouthwest, Jim Sims and Robert Stevens of
the Trinity River Authority (TRA), and Carol Reed, Director of Public Utilities. Ms. Reed discussed the planned
improvements to the plant and the bids received. She noted costs additions were due to the longer length of the
project and increased materials costs. Mr. Duke said flexibility in structuring the debt would be included in the
bond issue, with an eight -year call, and a debt service projection of around $2.5 -2.65 million. He said about $1
million cash would be included, which would go toward construction. The Mayor received confirmation the City
"could live within" the plan presented to the public last fall, and pointed to the reserve built into the projections.
Councilmember Olson recalled the interest rate being considered was 2.5% and said the construction contingency
could go directly to debt service, providing an additional buffer. He also expressed the City's desire to be proactive
in payoff. Councilmember Johnson and Ms. Reed discussed the contractor had been selected and that it firmed
the pricing as much as possible.
Councilmember Fitch asked who was responsible for not realizing additional time would be needed. Ms. Reed
said the plans for improvements were first started in the 1990s, but only in the last year were the raw water line
and pump station plans added and the projects combined, resulting in increased complexity. She said contractors
requested additional time during the pre -bid meetings due to the specificity of sequencing and the need for the
plant to remain in operation throughout. Mr. Stevens said this was not looked at until the contractors begin to ask.
Mr. Sims agreed that TRA had been focused on getting the contractors the right information and had gotten to the
bid opening expecting the project to be just over $18.6 million but that the bids came in higher.
Mr. Duke reviewed an email about debt service to which Councilmember Fitch referred and said the City had
flexibility based on goals and that reserve requirements were tied to debt service, all of which could be financed.
Mr. Duke said the City had been asked to set a range for the bond issue, and he expected it to be $20.1 million.
Mr. London said they sought the lowest debt service possible and said bidders had a range on the day of the bond
issue, when the principal would be set, adding that he felt $22.5 million was outside what he expected.
Councilmember Fitch referred to the water rates discussions of last year, that he recalled there was extra built in,
and asked how it could be guaranteed with the $1.9 million increase in the bid. Mr. Duke said he expected the
rates to increase as planned and that the required 60 -day reserve would rise and fall, listing the amounts set aside
in the CIP budget for a much higher estimated interest rate. He said the plan could accommodate a slightly higher
principal due to the reduction in debt service now expected. Councilmember Fitch asked if-anything would suffer in
keeping the rate increases as planned and in the face of the increased project cost and asked if there was a
chance it would not be paid off in eight years. Mr. Duke said there could not be a guarantee but there were built in
"safety valves" in the plan and that he did think all would be paid off in eight or nine years.
Councilmember Fitch asked about further increased costs. Mr. Sims said he felt the project was solid but that
there could be Change Orders. Councilmember Allen asked who was to take responsibility for the increased cost.
Mr. Sims said there were two agreements with the C ity, and the total cost of doing business was the City's. The
Mayor noted TRA was issuing the bonds, that the City would pay semi - annually to retire debt, that water rates
would continue as planned last year, that other bonds with TRA would be paid off before 2020 and those payments
from revenue could be shifted to this payment as planned. He went on to say he did not blame anyone for the fact
that costs have gone up. Mr. Baine addressed the City's better credit position now and apologized for anything the
staff should have caught.
Councilmember Olson thanked Mr. Stevens and Mr. Sims for their support and said he did not see there was
anyone at fault, finding it primarily a commodity and timing issue. Councilmember Montgomery expressed her
support of the issue and of the value of the discussion, citing increasing water needs and opportune financial
timing. Councilmember Humphrey asked that all again acknowledge the water cost increase that would occur in
2020. Councilmember Fitch said he would support the resolution but that he felt the ball was dropped in not
realizing the additional requirements of the project that have resulted in an increased overall project cost.
The Mayor announced the motion passed unanimously. Mr. Sims thanked the Council and the voters for their
support.
b. Presentation, discussion, and possible action to approve Ordinance 2012 -23, amending the traffic
schedule to place no parking signs on Sycamore Avenue, 1st reading. [Aron Kulhavy, Director of Public
Works]
No action was taken, as this was a first reading.
7. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT
a. Presentation, discussion, and possible action to discuss departmental activities. [Standing item on first
agenda of each month.].
Kimm Thomas, Director of Tourism and Cultural Arts, Linda Pease, Wynne Home Coordinator, and Kim McAuliffe,
Main Street Coordinator gave a departmental update on the Wynne Home, Main Street, and the Statue Visitor
Center and Gift Shop.
b. Presentation, discussion, and possible action to approve the wellness contract with Texas Municipal
League (TML) to provide wellness screenings for employees and their dependents who are currently
covered under the TML medical insurance plan. [Councilmember Montgomery]
Councilmember Fitch made a motion to approve the contract and was seconded by Councilmember Humphrey.
Councilmember Montgomery, Chair of the Personnel Committee, said confidential screenings would be provided to
address wellness issues, aiming for reduced insurance costs via healthier employees. Councilmember Fitch said
the plan was special in that it featured eligibility for over -18 dependents of employees also covered by the City.
The Mayor announced the motion passed unanimously.
c. Presentation, discussion, and possible action to approve the nominations of Eddene Smith for the Library
Advisory Board and Emmett Moore for the Youth Advisory Board. [Mayor Woodward]
Mayor Woodward nominated Eddene Smith for an open position on the Library Advisory Board and Emmett Moore
for an open position on the Youth Advisory Board.
The Mayor made the nominations and the motion passed unanimously.
d. City Manager's Report
1. Updates on City construction, grants, studies, City projects, City purchases, and economic
development._" _ -
Mr. Baine said he would be meeting with all the employees about the health care cost challenges. He also
encouraged volunteers for the Visitor Center. He said the sidewalks were in at Kate Barr Ross Park. Mr.
Baine said he would be receiving the audit tomorrow and expected it to be good. He announced the Splash
Pad opening on April 21. Mr. Baine asked the community to assess their vegetation for improvement. He
announced fundraising efforts had begun for a new K -9 dog and said donors could call Lt. Jim Barnes at 936-
291 -5480. Councilmember Olson noted how successful the prior dog' was. Mr. Baine said the federal
government had supplied $457,000 for six homes built and delivered to needy owners in the community.
8. PUBLIC COMMENT
There were no additional public comments.
9. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
There were -no media inquiries.
10. 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.)
The Mayor thanked Dr. and Mrs. James Stallings who kicked off on the donations for a new K -9 to replace
Quintus, who passed away recently. He challenged the community to help raise the approximately $12,000
needed, and noted the City did receive revenue from a portion of the seizures. He noted Colt Christian and Frank
Roberts were also going to begin a fundraising effort.
The Mayor commended Deputy City Secretary Kristin Edwards for her fine work on the ad for Huntsville in the
Governor's Economic Development journal, Texas — Wide Open for Business. He noted this is the third year of the
City's participation, and each year Ms. Edwards has worked with local business to create an eye - catching page to
promote our community. This year was a great idea showcasing some of our larger employers, and we'd like to
thank:
Chris Ruiz, Jessica Blank, & Brian Blalock of SHSU
Karen Bilsing, Callie Dretke, Cheryl Renfro, and Karen Altom at HMH
Patty Garcia & Michael Upshaw of TDCJ
Kim Kembro & Linda Hicks of the City of Huntsville
for helping Kristin in the development and execution of this year's ad.
The Mayor gave a reminder about E -Waste Day this Saturday, April 7, at the Recycling Center. He also
congratulated the HHS Mountain Bike Team who placed third at the state competition in Smithville recently. The
Mayor reminded all of the following upcoming events:
- Wine Down, Shop Small on Thursday, April 19 from 6 -9pm at businesses around the Square.
- Spring Clean will be downtown on The Square on Saturday, April 28, from 9 -2. Call Main Street intern Megan at
295 -2150. It's a great way to earn community service hours!
- The City is participating in this year's Chick -Fil -A LeaderCast event on May 4. Please contact the Chamber of
Commerce at 295 -8113 for more information on this leadership learning event.
- Main Street is issuing a call for growers for this year's Farmers Market, set to begin May 5. If interested, visit
huntsvillemainstreet.com or call 291 -5920.
- Tourism Week and activities will be held May 5 -13 this year, keep a watch on huntsvilletexas.com for more
information.
The Mayor noted the Margaret Lea Houston birthday would be held at the Museum grounds on April 15 from 1:30-
3:30 and invited the community.
Mayor Woodward reported on the liquor option election petition submitted recently, saying 2428 signatures -were
turned in, 2148 were needed. He said about 660 signatures were rejected, mostly individuals who were not
registered to vote within the City. The Mayor said there was still time to make the effort again, should someone so
choose.
Councilmember Fitch thanked VP Frank Parker of SHSU who had held a luncheon and invited Councilmembers to
lunch with Faculty Senate, Staff Council, Student Government, and Dr. Gibson, and said he felt it was a very
productive event. Councilmember Humphrey noted the Political Science football game on April 21st at 1pm at
Pritchett Field.
11. EXECUTIVE SESSION
a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551,
Section 551.074 - personnel matters regarding the evaluation of City Secretary Lee Woodward, part 2 of 3.
[Mayor Woodward]
Mayor Woodward adjourned into Executive Session at 8:5-1 -p 7m. The Mayor-noted there would not be any action
taken after the Executive Session.
12. RECONVENE
a. Take action, if necessary, on items addressed during Executive Session.
Mayor Woodward reconvened the meeting at 10:38 p.m.
13. ADJOURNMENT
Mayor Woodward adiourned the meetina at 10:38 P.M.
Respectfully submitted,
Lee Woodward, City Secretary