MIN CC 11/09/2010City Council Meetings of November 2010 Book "V°
MINUTES FROM THE HUNTSVILLE Ci7Y COUNCIL MEETING HELD ON THE 9TH DAY OF NOVEMBER 2010, IN THE
CITY HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSViLLE, COUNTY OF WALKER, TEXAS AT 6PM.
The Council met in a regular session with the following:
COUNCILMEMBERS PRESENT: J. Turner, Mac Woodward, Jack Wagamon, Lanny Ray, Dalene Zender, Melissa Templeton,
Wayne Barrett, Tom Cole
COUNCiLMEMBERS ABSENT: Charles Forbus
OFFICERS PRESENT: Bill Baine, City Manager, Leonard Schneider, City Attorney, Lee Woodward, City Secretary
REGULAR SESSION" [6 :00PM]
1. CALL TO ORDER
Mayor Turner called the meeting to order at 6:00pm.
2. PLEDGES OF ALLEGIANCE
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Councilmember Barrett gave the invocation.
4. PUBLIC COMMENT
Lynn Longmire thanked Counciimembers Zander, Templeton, Ray, and Forbus for their service.
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 Special Session held on the 14th of October, and the meeting held on
the 19'' of October 2010. [Lee Woodward, City Secretary]
b. Approve City of Huntsville employee holiday for December 2011 as Friday, December 23, 2011. [Angela
Martin, Benefits Coordinator]
c. Authorize agreement approving updated service credits and Cost of Living Adjustment (COLA) and payment
of remaining budget to TMRS to be applied toward the City's unfunded liability. [Bill Baine, City Manager]
d. Authorize City Manager to reject all bids and rebid concrete road materials. [Winston Duke, Finance Director]
e. Presentation, discussion and possible action to authorize the City Manager to sell property Reference ID
0027- 3404- 00850, 0027- 340 -0- 00800, and 3200 - 021 - 0-0040 In the amount of $77,700.00. [Bill Balne, City
Manager]
f. Authorize the City Manager to enter Into a one (1) year contract with Performance Grade Asphalt for the
periodic purchase of CRS-2 Emulsified Asphalt at $1.85 per gallon, to Include delivery to Huntsville. [David
Welch, Street Superintendent]
g. Authorize the City Manager to allocate 907 Avenue P (GEO ID 4700. 066 -0- 00200) to the NSP Program. [Dr.
Sherry McKibben, Community Development Specialist]
Counclimember Cole made a motion to angrove the Consent Agenda. Councilmember Templeton seconded the
motion,
Councilmember Templeton asked to pull item c for additional discussion.
The motion to approve all other items passed unanimously, 8-0 (Councilmember Forbus was absent).
Councilmember Templeton said the Finance Committee had discussed item c, and that she had heard that there had
been some misinformation In the city on the item. Council did not reduce retiree benefits, that it had been changed so
that the City Council would vote on COLAs. She said the prior 3°/6 COLA was cut by 6 0/6, making it a 2.4% COLA.
She added that Medicare recipients would not get an additional COLA until 2012.
Counclmember Templeton made a motion to approve item c. Councilmember Cole seconded the motion.
Councilmember Wagamon said he saw the fiscal Impact of half a million dollars due to this action, and confirmed that
this motion was to finalize it as previously discussed. 0
The motion passed unanimously. 8-0 ( Counclimember Forbus was absent).
6. STATUTORY AGENDA
a. Presentation, discussion and possible action to authorize the City Manager to award repair of Water Well # 17
to Alsay, Inc. at a cost of $195,122.00 and authorize the City Manager to approve funding transfer. [Carol
City Council Meetings of November 2010 Book "V°
Reed, Director of Public Utilities]
Councilmember Woodward made a motion to approve. Councilmember Templeton seconded the motion.
Carol Reed, Director of Public Utilities said the well had failed, and the City had contracted with Alsay, Inc. to pull the
well. She said they found damage in the pump and screens, that the pump was no longer operational, and that they
would like to install a submersible. She said she felt submersibles had a longer life and were less expensive to
operate and repair than In-line turbines. Ms. Reed said this well had been a big producer, and that it was her opinion
that the repair was needed.
The Mayor confirmed this well fed into Palm Street. Leonard Schneider, City Attorney, confirmed Ms. Reed believed
the well needed to be repaired to resume normal function. Ms. Reed added that the City was below normal function
since they had not been able to repair Well #14.
The motion passed unanimously, 8-0 (Councilmember Forbus was absent).
T. MAYORICITY COUNCIL AND CITY MANAGER REPORT
a. Presentation, discussion and possible action to discuss water policy Issues. [Standing item on ffrst agenda of
each month.]
The Mayor referred to the contract between the City and TDCJ to supply water to the Ellis and Estelle Unit originally
signed In 1995, and updated in 2003 to adjust the rates, and the documents showing revenue and consumption over
the last few years. He said it was about million and a half dollars a year for about 1.3 million gallons of daily usage,
The Mayor said the material was for informational purposes as part of the systematic review of the water system, and
he had assured the City Manager that the Council would submit questions to the City Secretary to forward.
Councilmember Ray asked what the cost was in relation to the revenue. The Mayor said this was a question to
submit. The Mayor also said this water came directly from Trinity River Authority (TRA) plant to the Ellis and Estelle
Units. The City Manager said it was a rugged year for water, and the City spent reserves. Mr. Barrie expanded by
saying that they were then producing water at more than it cost. Councilmember Ray said that was his understanding,
and that he did not think it fair to discuss only the revenue. The Mayor said they would try to have a definitive answer
at the first meeting in December.
The City Manager said water was something one tried to deliver to citizens as close to cost as possible, but the only
place they made money was Tenaska. Winston Duke, Finance Director, confirmed the City Managers estimate that
the City typically made half a million to $900,000 there annually.
Councilmember Cole confirmed with the City Manager that TDCJ got water from their own wells before the contract,
The Mayor said those wells were no longer viable. Councilmember Wagamon recalled that when Ken Davis
presented the CAFR In the spring, it was also then pointed out that the City tried to bill water as close to cost as
possible. Councilmember Wagamon said he asked Mr. Davis what the balance would be had funds not been
transferred out. and that Mr. Davis had said about $1.1 million. Councilmember Wagamon said funds from water are
transferred out every year, and that $1.1 million was kind of a light year. Councilmember Wagamon encouraged
Council that when they have an estimate in July, at budget time, to consider tightening up estimates, that he thought it
was important to look at how enterprise funds are supposed to work. The Councilmember concluded by saying that
the City had traditionally transferred out much more.
Councilmember Templeton asked about the completion of the rate study, and whether TDCJ would be shown as a
separate part. Mr. Duke said that 25% of reserves were projected for end of next year, but will be about 12% when
the capital is moved.
At this point, the City Aftomey requested an Executive Session on Rams 5c and Sf, and asked that the City Manager
and Finance Director be Included. The Mayor asked that It be deferred to the end of the meeting.
b. Presentation, discussion and possible action to approve Ordinance 2011-03, revising Ordinance 201045 to
expand the Veterans Affairs Advisory Board to fifteen (15) members, and a quorum of eight (8) members, TO
reading. [Mayor Turner]
The Mayor said the Ordinance was to make a revision to Veterans Affairs Advisory Board, asking to add one more
position. The Mayor said the intended nominee was someone who represents the ROTC at Sam Houston State
University (SHSU). The Mayor said this was a first reading of the Ordinance, and that he thought it would be a benefit
to have someone from the SHSU ROTC on the board.
c. Presentation, discussion and possible action to approve Ordinance 2011-04 to establish the Huntsville
Farmers Market Advisory Board, Ist reading. [Mayor Tumor]
The Mayor said this item was a draft of the Ordinance, at its first reading, and no action would be taken. He asked the
Council to recall the City had submitted a grant for a Farmers Market, and was unsuccessful in that attempt. He said a
number of people had mentioned to him that a Farmers Market was a good idea. The City's role, said the Mayor,
would be to provide a place and some help on marketing in the City newsletter and through the use of the Public
Information Officer. He said the Ordinance would provide framework of advisory board who would manage day-to-day
operations of the market, and that he was looking to have something in place first weekend in May, the same weekend
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as the Airing of the Quilts, when many people would be downtown.
Councilmember Templeton asked if the City Attorney had reviewed the Ordinance, and he said that he had written It.
d. Presentation, discussion and possible action to approve nominations to Boards and Commissions. [Mayor
Tumor]
The Mayor made a motion to approve three nominees from the Huntsville Independent School System for the Youth
Advisory Board. naming Desiree Cortez, Sean Craig= and Cason Ward. Councilmember Zender seconded the motion.
The Mayor said there were also two youths on the Board from Alpha Omega, and several adult members. He said the
Board is going through a process to justify its existence, and that it was previously an adjunct of Huntsville's Promise.
The motion passed unanimously, 8-0 (Councilmember Forbus was absent).
e. Presentation, discussion, and possible action on Employee Healthcare for year 2010 -11. [ Councllmember
Woodward]
Councllmember Woodward said this item had been discussed at the last Council meeting and then referred to Finance
Committee. He thanked Counciimember Templeton for her interest in retirement and healthcare, and the Clip's future
in finding ways to deal with it. He also said the Finance Committee members realize the future cost of healthcare and
how Its dealt with Is important, that there are going to be changes and revisions for a long time to come.
Councilmember Woodward said the Finance Committee had discussed that City employees did not get COLA or Step
Increase this year, but did get small Increase in contributions to co -pay in healthcare. He added that it was not a great
deal of money Individually, but that he was committed to working on finding a way to do it, and would be working with
Finance. Councilmember Woodward pulled the item pending further review.
The Mayor reiterated Councllmember Woodward, saying work on advisory committees was greatly appreciated, that it
was a lot of work, that councilmembers are volunteers, and thanked them.
f. Presentation, discussion and possible action regarding update of ongoing litigation against the Huntsville-
Walker County Chamber of Commerce to recover misspent and misapplied Hotel Occupancy Funds, primarily
to update the citizens and council as to what has occurred and Is In the public record and or available to the
public. [ Counciimember Ray] •
Councilmember Ray said the case was tried October le -22n° and recalled Councilmember Barrett being the last to
testify, and saying that the City took the Chamber to court as "a last resort." Councilmember Ray noted the jury
charge given was not what the City wanted, but rather favored the Chamber, and also that the case was tried In Leon
County at the Chamber's request. He further said the jury returned a verdict of $449,000 on which final judgment was
entered. He said the jury found, and the court entered judgment, against Dee Everett for breach of fiduciary duty in
the amount of $324,578, and against the Chamber for breach of fiduciary duty and breach of contract.
Councilmember Ray said the law allows a choice between remedies, and the City chose breach of contract as it
carries attorneys fees more certainly. He said the finding of breach of contract was for $324,578 also, plus $125,000
in attorney fees, and that the prejudgment interest, bringing the total judgment to $470, 675, that accrues post -
judgment Interest at 5 %, or approximately $2000 per month, until satisfied. Counciimember Ray said this was the
final judgment entered October 29m and was now a City asset. He also said this money would be returned to HOT
funds.
Councilmember Ray said he had heard comments that people want to "make this go away" but that it was not
permissible to give away City assets.
Councilmember Wagamon thanked several persons behind the scenes at the Chamber, including Micah Slaughter,
Conrad Liles, Tom Freeman, and others who preferred not to be mentioned, who talked with him for several months to
try to keep this case from going to trial. He said that, now that its over, people needed to know that Mr. Freeman had
come to him to see if they could make the case go away. Counciimember Wagamon said he told them it could be
done by having the Chamber Executive Board Issue a statement that the [HOT funds] audit was not politically
motivated, and said he was told that the Board wouldn't even put it on the agenda. Councilmember Wagamon
thanked Mr. Freeman for his efforts.
Councilmember Wagamon said there was a joint letter between the City and the Chamber that they tried to negotiate
daily for the week leading up to the trial. He said the one statement to which the Chamber would not agree was that
the audit was not politically motivated. Councilmember Wagamon said this became a $446,000 statement,
Irrespective of the $750,000 the City was told, by Chamber attorneys, the Chamber spent on the trail. Councilmember
Wagamon said he had heard all over town was that people were angry that grown men could not sit down and settle
this issue, and he said some very good people in town had tried to settle this.
g. City Managers Report
The City Manager asked everyone to think about Christmas, and the Christmas events for the 2 "d-O of December.
He said major events would include more snow than last year, 32 vendors on the Square, and children's events.
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8. PUBLIC COMMENT
There were no additional public comments.
9. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
There were no inquiries.
10. ITEMS OF COMMUNITY INTEREST
(Hear announcements concerning items of community interest from the Mayor, Councllmembers, and City staff for which
no action will be discussed or taken.)
The City Secretary read the following letter from Coundimember Forbus:
deQWant to ba aa. Vbdftw ditWo a yon ma w09 bftQ d.to a% ibnow tip con" like
the mcum through ttm �hart6e Ica,
And now I my adian, >aft hmpt.
TaWgaa d%a anC ,
T=p qw it a Modod!
The Mayor formally thanked the outgoing Councilmembers for their public service, saying he wanted to extend his deepest
appreciation to them, and that public service is never easy. (Extended applause and a standing ovation from all attending
followed.)
Coundimember Woodward invited the public to the reception Wednesday evening following the Council Special Session,
to show tribute to the outgoing Counclimembers.
The Mayor reminded the public of the flag raising on Veterans Day gam at the new flagpole at City Hall, and of the
HEARTS dinner that evening.
11. EXECUTIVE SESSION
a. City Council will convene In closed session as authorized by Texas Government Code, Chapter 551; Section
51.071 — consultation with counsel on legal matters including current and pending litigation, Including, but
not limited to, the City of Huntsville vs. the HuntsvilleMalker- County Chamber of Commerce; Altom v. the City
of Huntsville; and Russell v. the City of Huntsville. [Leonard Schneider, City Attorney)
The Council adioumed into Executive Session at 6 :40m.
12. RECONVENE
a. Take action, If needed, on items discussed In Executive Session.
The Council recbnvened at 7:12Dm.
The Mayor said the Council would not be taking action.
Counciimember Ray asked the City Attorney if anything significant had occurred in the last 24 hours in the Wes Altom
case. Mr. Schneider said that most of the claims in the case had been dismissed, except the federal 14'h Amendment due
process c lalm. Councilmember Ray confirmed that the court had previously dismissed the bulk of the lawsuit, including
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claims on state and municipal law, based on what Mr. Altom had alleged, and the City has not yet been required to produce
any evidence.
Counclimember Ray confirmed that the claims against himself, Counclimember Wagamon and Mr. Balne, In their official
capacities had been dismissed, as well as the claim they conspired to violate Mr. Altom's civil rights. Mr. Schneider also
confirmed for Councilmember Ray that the only remaining claim was a violation of due process 10 Amendment and two
other claims that rely on that alleged violation.
Councilmember Ray characterized that the Court has again invited the City to file a motion for summary judgment on the
community defense as well as to dismiss the last claim.
The Mayor recognized that today was his wife's, Pamela Tumer's, birthday.
13. ADJOURNMENT
The meeting was adjourned at 7:15p.m.
Lee Edward, City Secretary
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