Minutes - 07/19/2011MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 19TH DAY OF JULY 2011, IN THE CITY
HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 4PM.
The Council met in a workshop and regular session with the following:
COUNCILMEMBERS PRESENT: J. Turner, Mac Woodward, Jack Wagamon, Wayne Barrett, James Fitch, Lydia Montgomery,
Don H. Johnson, Keith D. Olson
COUNCILMEMBERS ABSENT: Tom Cole
OFFICERS PRESENT: Bill Baine, City Manager: Leonard Schneider, City Attomey, Lee Woodward City Secretary
WORKSHOP SESSION - LARGE CONFERENCE ROOM — The Council will attend a workshop to discuss the selection of
software for the purpose of managing citizen requests, permits, code enforcement, work orders, fleet, and inventory.
[Chris Vasquez, IT Manager]
The Council conducted conference calls with a software provider, the Government Finance Officers Association, and a city
using some of the considered software, and consulted with City staff about the selection process and their concerns.
INTERN RECEPTION — [5:30 -6PM] — LARGE CONFERENCE ROOM
REGULAR SESSION' [6:OOPM]
1. CALL TO ORDER
Mayor Turner called the meeting to order at 6:OOpm.
2. INVOCATION AND PLEDGES
Councilmember Barrett gave the invocation.
3. PROCLAMATIONS AND PRESENTATIONS
a. Introduction of the summer interns to Council [Blake Roach and Kevin Lunsford, Director of Public Safety]
Javier Hidalgo from Solid Waste/Recycling, Amy Wilson from the Department of Agriculture/SHSU from Main
Street/Farmers Market, and Kahlil Medley from Public Works/Planning were presented to the Council. Additionally,
Brad Standefer and Autumn Van Camp were presented as intems from the Huntsville Police Department. (Intern
Samantha Patterson from the Wynne Home was not able to attend.)
City Manager Bill Baine recognized Frank Golden, Utility Billing Crewleader, Carla Vasquez, Budget Manager, and
Kimberly Francisco, Huntsville Public Library Service Coordinator, for their hard work and service to the City.
4. PUBLIC COMMENT
Delora King spoke in opposition to a Council motion to dismiss the suit against the Chamber, discussing the disposition of
the case through the legal process. Councilmember Olson said he did not recall that ever occurring, and the City Secretary
was tasked to locate the relevant motion for Council review.
Katie Newman spoke of her concern that a Council comment was made about having all representation elected at- large,
saying that wards allow certain areas to have someone elected for them who has the area's best interests at heart. She
expressed support of Map B but encouraged the Council to vote for Map C as a compromise.
Kendall Scudder spoke in support of proposed redistricting Map B while urging the Council to vote for Map C if they felt a
compromise was necessary.
Brian Howard spoke about needs of University students, stating he agreed that Map C was a compromise. He spoke of
crime in areas where many students live and said he felt that a student -ward representative might put more emphasis on
issues such as this and sidewalks in student areas.
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 July 5, 2011. [Lee Woodward, City
Secretary]
b. Approve Ordinance 2011 -41 to adopt the revised edition of the Flood Insurance Rate Maps (flood plain maps)
effective on August 16, 2011, and other amendments to the Chapter 4 of the City of Huntsville Development
Code, 2nd reading. [Aron Kulhavy, Director of Public Works]
c. Approve Ordinance 2011 -43, setting just and reasonable rates for the Cost of Service Adjustment to be
charged by CenterPoint Energy in the City of Huntsville, 2nd reading. [Leonard Schneider, City Attorney]
d. Approve purchase of a tractor rig to be used to transfer solid waste materials. [Mike Clouds, Fleet Manager]
e. Approve rejection of bank depository proposals and extension of existing contract with First National Bank
for another year. (Winston duke, Finance Director]
(Item d was pulled from the agenda prior to the meeting. Councilmember Woodward signed a Conflict of Interest form
prior to the meeting and did not vote on item e.)
Councilmember Olson made a motion to approve the Consent Agenda and Councilmember Johnson seconded. The
The Mayor said he liked the Auburn model's targeting of objectives, rather than reacting to occurrences. He noted
that from time to time, Council received and considered potential opportunities. He expressed that retail was more of
a lagging rather than leading indicator for economic development. Councilmember Johnson reviewed the City's
reasons for observing the Auburn model: similarity of situations, record of continuous progress and growth in Auburn,
personal contact between officials of both cities, and the advantage of Huntsville having a'wvorking model" to observe,
learn from, and partially emulate, to avoid having to "re- invent the wheel" of ED. He expressed enthusiasm about ED
potential and progress to date in Huntsville, noted the enthusiasm over ED of many motivated and encouraged
citizens, and spoke of a rise in interest in our city from potential new businesses. He said current interests being
expressed are not a direct part of the City's initiative, since plans were still being formalized, but probably spoke to the
"word" going out about Huntsville's renewed commitment to growing, prospering and improving the quality of life for all
citizens.
Councilmember Wagamon said the City Manager, in the last Executive Session, had asked if the degree to which he
was negotiating was appropriate, and that that question was never answered by the Council. He noted that the
reason the Council had been asked for "heavy" incentives was that the retail establishment could not afford to move
into Ravenwood, the project, he said, that had been the strategic retail solution for Huntsville but had not filled up and
actually "sucked in" some existing local retailers who had moved their stores to Ravenwood. Councilmember
Wagamon said he thought the Council owed the public to tell whether they were telling the City Manager to pursue
motion passed unanimously. 8 -0. item a 7 -0.
6. STATUTORY AGENDA
a.
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Presentation, discussion, and possible action to approve Ordinance 2011 -44 temporarily changing the posted
speed limit on sections of Interstate 45 for the duration of the Texas Department of Transportation's
improvement project IM0452(121), CSJ 0675- 06-081 and 0675-07 -083, 1" reading. [Aron Kulhavy, Director of
Public Works]
City Engineer Yellambalsi Ramachandra discussed the TxDoT map of the area to be considered.
b.
Presentation, discussion, and possible action to consider the purchase of software for the purpose of
managing citizen requests, permits, code enforcement, work orders, fleet, and inventory. [Chris Vasquez, IT
Manager]
The Mayor announced that this item had been pulled.
7. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT
a.
Presentation, discussion, and possible action to approve a proposal for redistricting. [Mayor Turner]
The Mayor noted that this item would require two readings and not passed be hastily.
The Mayor made a motion that the Council did not intend to achieve redistricting prior the November 8. 2011 election
and was seconded by Councilmember Woodward.
Councilmember Woodward and the City Secretary confirmed that the Department of Justice would review and provide
preclearance after the Council approved a proposal and submitted it.
The motion passed unanimously. 8 -0.
Councilmember Woodward said he would look at Map C for consideration, noting he felt it important to be sensitive to
the University area. Councilmember Wagamon asked if any maps would be voluntarily withdrawn, but no motions
were made.
b.
Presentation, discussion, and possible action to nominate Joe Clark to fill a vacancy on the Veterans Affairs
Advisory Board. [Mayor Turner]
The Mayor made a motion to approve the nomination and was seconded by Councilmember Olson. The motion
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passed unanimously. 8 -0.
c.
Presentation, discussion, and possible action to nominate Anthony Ormsbee to fill a vacancy on the Youth
Advisory Board. [Mayor Turner]
The Mayor made a motion to approve the nomination and was seconded by Councilmembers Fitch and Woodward.
The motion passed unanimously. 8 -0.
d.
Presentation, discussion, and possible action on economic initiatives involving incentives for retail
development. [Councilmember Wagamon]
Councilmember Wagamon asked the Economic Development Ad Hoc Committee ( EDAHC) about initiatives "on the
table" that were not "base jobs," some of which already included in the proposed budget for 10% of the ad valorem tax
base of the City, and confusion over these versus the public discussion of what the Council was seeking.
Councilmember Barrett said he welcomed any questions about economic development (ED), saying there was no
hidden agenda, and encouraged the public to view the PowerPoint presentation from the last meeting, on the City's
web site. He said that, in all the hours the group met, he didn't recall retail being discussed for more than perhaps
fifteen minutes. Councilmember Barrett said last meeting's Executive Session item was completely unrelated to the
report or the efforts of the EDAHC and would have been on the agenda regardless. He said the strategy was very
clear, and that he, personally, felt there was a very high bar to give incentives to new retail business.
The Mayor said he liked the Auburn model's targeting of objectives, rather than reacting to occurrences. He noted
that from time to time, Council received and considered potential opportunities. He expressed that retail was more of
a lagging rather than leading indicator for economic development. Councilmember Johnson reviewed the City's
reasons for observing the Auburn model: similarity of situations, record of continuous progress and growth in Auburn,
personal contact between officials of both cities, and the advantage of Huntsville having a'wvorking model" to observe,
learn from, and partially emulate, to avoid having to "re- invent the wheel" of ED. He expressed enthusiasm about ED
potential and progress to date in Huntsville, noted the enthusiasm over ED of many motivated and encouraged
citizens, and spoke of a rise in interest in our city from potential new businesses. He said current interests being
expressed are not a direct part of the City's initiative, since plans were still being formalized, but probably spoke to the
"word" going out about Huntsville's renewed commitment to growing, prospering and improving the quality of life for all
citizens.
Councilmember Wagamon said the City Manager, in the last Executive Session, had asked if the degree to which he
was negotiating was appropriate, and that that question was never answered by the Council. He noted that the
reason the Council had been asked for "heavy" incentives was that the retail establishment could not afford to move
into Ravenwood, the project, he said, that had been the strategic retail solution for Huntsville but had not filled up and
actually "sucked in" some existing local retailers who had moved their stores to Ravenwood. Councilmember
Wagamon said he thought the Council owed the public to tell whether they were telling the City Manager to pursue
these things or just not defining anything. The Mayor said Executive Session was a time to talk about negotiating
strategies. He said that his impression had been that the discussion did provide insight for the City Manager, and that
there had not been a completed offer to vote for or against.
from his
Councilmember Montgomery asked the City Manager about Ravenwood, saying it was her understanding,
reports, that retailing was up in the City and that Ravenwood was doing quite well. The City Manager confirmed Ms.
Montgomery's understanding, adding that, this year, the City had rebated half of the sales tax to Ravenwood of
$160,000, which he said meant that both the business and Huntsville were seeing revenues flow and the program was
confirmed as achieving its objectives. When asked by a Councilmember, Winston Duke, Finance Director, informed
that the City has received a monthly payment ranging from $18,000 to $28,000 per month from Ravenwood.
Councilmember Olson said the Executive Session did give the City Manager some direction and had no crossover
with the EDAHC report. He said terming the incentives "heavy" was a matter of perspective. He said he had asked
Mr. Dunlap about retail and had been told the area seemed under - retailed. Councilmember Olson said he wanted the
town to grow modestly, with proper planning, but that the area deserved some options.
Councilmember Wagamon said the items discussed were very specific. He asked Mr. Duke about the monthly sales
tax figures at Ravenwood and was told the City was rebating one -half. Councilmember Wagamon also confirmed the
ad valorem tax above base value was being fully rebated to the developer. He said the truth of the matter was that
"the sales tax was a negotiable document that was traded away and ... the property was $6, million before it was
incentivized and it sold for $11.9 [million], within $100,000 of the unrestricted money, the value of the sales tax,"
asking who made that money. He said landowners and developers should be told to accept "half of something rather
than half of nothing" rather than the City having to.
Councilmember Johnson said the City wouldn't have had any sales tax without a building there selling goods and
eaming the sales tax. He said he could accept some limited incentiviAng of businesses that fit the model, while he did
not generally support rebating ad valorem tax.
Councilmember Olson asked Mr. Duke what the City received from the property prior to the TIRZ and was told it was
very little due to exemptions. The Mayor noted there had been no change, as the rebates were only on the
developments. Councilmember Olson confirmed with Mr. Duke that the City was not "paying" to have businesses at
Ravenwood. Mr. Duke answered Councilmember Olson's question that he, Mr. Duke, had supported the TIRZ.
Councilmember Wagamon noted there had been a city here and businesses on the Square since before Texas was a
state, that these businesses had stayed here and built this town. He said these businesses had asked for good
government and had watched new businesses go into town that received rebates while they, the existing businesses,
did not. He discussed the failure of incentives across the country, saying incentives created a weak government and a
weak people, and that he felt it was a Socialist system of business.
Councilmember Fitch said the Council should not shut down all discussion of incentives but noted the discussion of
the ability of existing businesses to receive assistance had not been accompanied by action. He said his direction for
the City Manager would be to evaluate each project independently of all others.
The Mayor said the Council had offered different incentives over time, including ad valorem tax incentives including
TIRZs and tax abatements. He said he had been opposed to the 380 agreement at Ravenwood and that he also had
a very high bar for a business to get cash back. The Mayor encouraged Council to have an open mind and use
creativity.
Councilmember Woodward recalled that Mr. Dunlap had encouraged the City to create what worked for them. He said
Mr. Dunlap had marketed quality of life concepts that did not have a cost first, creating a better negotiating position.
He outlined the advantages the City received from Ravenwood being created and said doing more for existing
businesses was also economic development. Councilmember Woodward noted the City Survey respondents always
asked for more things to do and more places to go, and that economic development did not equal only incentives.
Councilmember Wagamon said, although he liked Weatherford, he felt the Council gave them money for what they
would do anyway, and did not give it to other local machine shops. He noted the Development Code at Ravenwood
were for the benefit of the development and could be called assets but would be liabilities when the City had to
maintain and repair them.
e. City Manager's Report
1. Updates on City construction, grants, studies, City projects, City purchases, and economic development.
2. Recycling
Mr. Baine said the City received a small grant for a Hispanic cultural event and reiterated some Community
Development participation. He said the Highway 19 expansion owed some credit to Community Development, as
did Safe Routes to School, Town Creek, the Boys and Girls Club, grants to the airport, housing subsidies, and
noted the University was proceeding on its indoor arena, totaling about $37 million. Mr. Bain said the area did
not have light industrial infrastructure.
Mr. Baine said Well #13 was fixed, Well #14 was defunct and would have to be replaced, Well #15 had had a lot
of work done, but that it was a 1961 well. He said the City wanted generators on the water and sewer systems to
keep things moving when electricity was down, as during a hurricane. Mr. Baine said the line breaks were
continuing and the overtime budget was completely used up, so much he was considering a safety stand-down.
Mr. Baine discussed City purchases, saying he pulled the tractor rig item since the vendor had called and said the
price had increased and he was using caution. He said the software item was pulled due to interior "squabbling.'
Mr. Baine gave updates on recycling in the three areas in which it had been implemented.
f. Presentation, discussion, and Possible action to nominate Bill Baine as a qualified candidate to the Texas
Municipal League Intergovernmental Employee Benefits Pool Board of Trustees. [Mayor Turner]
The Mayor made a motion to approve the nomination and was seconded by Gouncilmember Woodward. The motion
passed unanimously, 8-0.
8. PUBLIC COMMENT
Anthony Ormsbee thanked the Council for approval of his nomination to the Youth Advisory Board.
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.)
1. The Farmers Market will be hold Saturdays from 8-noon.
The Mayor thanked the students for attending the meeting and staying for the entire meeting.
The Mayor noted today's passing of former Mayor Bill Nash.
The Mayor announced the July 23 luncheon to honor the return of the National Guard Battalion.
The Mayor announced that he and the City Secretary had lunched with incoming State Representative John Otto on
Monday, July 18, and extended a "warm welcome" to him, also noting upcoming local events where he would appear.
The Mayor noted continuing progress on the Highway 19 expansion.
Councilmember Fitch commended Student Government Association members for their attendance at Council Meeting
0 in lieu of their own scheduled meeting.
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 appointment, employment, evaluation, reassignment, duties,
discipline, or dismissal of a public officer or employee, Leonard Schneider, City Attorney. [Mayor Turner]
The Council adiourned into Executive Session at 8:08pm.
12. RECONVENE
a. Take action, if needed, on items discussed in Executive Session.
The Council reconvened at 8:50om.
13. ADJOURNMENT
The rpeeting was adjourn t 8:50p.
a Woodward, City was
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