MIN CC 12/14/2010MINUTES FROM THE HUNTSVILLE CITY COUNCIL: MEETING HELD ON THE 14TH DAY OF DECEMBER 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, Tom Colo, Mae Woodward, Jack Wagamon, Wayne Barrett James Fitch, Lydia
Montgomery, Dan H. Johnson, Keith D. Olson
COUNCILMEMBPRS ABSENT: None
OFFICERS PRESENT, Bill Seine, City Manager, Leonard Schneider, City Attorney, Lee Woodward, City Secretary
REGULAR SESSION* 10.00PI1111
1. CALL TO ORDER
Mayor Tumor called the meeting to order at 6:00pm.
2. PLEDGES OF ALLEGIANCE AND INVOCATION
Councilmember Barrett gave the Invocation.
3. PROCLAMATIONS AND PRESENTATIONS
a. Recognition of Rachel Smith, Accountant for completion of the Certified Government Finance Officer Program, and
Marcy Metz, Accountant for attainment of the Certified Fraud Examiner certification.
4. PUBLIC COMMENT
Bill Balne, City Manager, recognized Linda Hicks for her work on the United Way luncheon on December 8. -
William Elmer yielded his time.
6. CONSENT AGENDA
(Approval of Consent Agenda authorizes the City Manager to Implement each Item In accordance WM staff
recommandsUons. An Item may be removed from the Consent Agende.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 hold on the le of November, and the meeting held
on the le of November 2010. [Lee Woodward, City Secretary]
b. Approve Ordinance 2011-10, amending the budget for FY0040. [Winston Duke, Finance Director]
c. Approve Ordinance 2011-11, amending the budget for FY10-11. [Winstonbuke, Finance Director]
dL Authorize the City Manager to approve and award the Bobbitt Addidonft46 Sewer Line Phase I contract to
Doughtle Construction, Huntsville, TX, In the amount of $241,861.00. tOnston Duke, Finance Director]
a. Authorize the City Manager to enter Into a.contract with American Tire, Carrollton, TX, as the primary vendor,
and Reliable Auto Parts, Huntsville, TX, as the secondary vendor for time and tubes on an as-needed basis.
[811119 Smith, Procurement Manager]
f. Authorize the City Manager to purchase and install energy efficient lighting from Musco Lighting In the
amount of $117,600, and authorize the use of McCaffety Electric to complete the Installation of electrical
power to City equipment, If needed. [311119 Smith, Procurement Manager]
9. Approve the renewed lease with Huntsville Aviation for fixed based operations at the Bruce Brothers
Huntsville Regional Airport. [Aron Kulhavy, Director of Public Works]
County member Barrett made a motion to amrove the Consent Agenda. CoundlMqMber Colo seconded their notion
Counclimember Woodward pulled Item g. Counclimember Barrett asked for explanation an items d and f
Counalknember Olson pulled item b. [Motion was for items a, c, and e.]
The motion passed unanimously,
CoundImember Olson asked for explanation of the Tourism line Rem of $90,266 for attorney's fees and court costs
from HOT funds. Winston Duke, Finance Director, said it was a closing Item from FY09-10, not tied to a particular
Invoice or check, but was preouthorized for charges from HOT funds related to the Chamber case. Mr. Duke said the
department under spent $16.000 In event funding and $1,746 advertising, and was a closing entry for accounting
disclosure. Coundimember Olson conitaned the line Item was not additional costs over budget
Counclimember Colo asked how attorney's fees would be accounted for If the Court awarded them to the City. Mr.
Duke said they would be deposited In the fund that paid for them.
Coundmember Barrett made a-motion to accept Itarn b. Counclimember Wagamon seconded It Yhe —motion Pass ed
unanimously.
Aron KjAhey,
.y, Director of Public Works, said this was a contract award In Phase I at the BobbItt Addition, and was part
of a program to bring imiiWi)'LfncfikeirVe&Uiiiiiva'(UU)-itreas within thd City limits.--
Counclimemi er Wagamon was told that roughly twenty people would be served In this phase, at a cost of $241,891,
and confirmed that there were more residents who would be served if sewer were extended to FM980 at Tracy Lane
and Leigh Anne, at a cost of $180,000 to just over $200,000.
Mark Moore, Senior Designer, said a lot of the cast was boring under 145, enabling It to serve perhaps fifty or sixty
more residents.
Cou.,,ir dlmember Woodward made a motion to approve item d. Councilmember_ Barrett seconded it, The motion,
passed unanimously.
Councilmember Barnett made a motion to approve Rem f. and if_was seconded by Counclimember Montaome
Melt Lumpkins, Director of Community Services, said this was the last field with the old wooden light plies, and that
he had worked for many years to have them replaced with concrete. Billie Smith, Procurement Manager, said the
company received high marks due to their Involvement in the Department of Energy's Go -Green program.
Coundimember Montgomery confirmed the additional $900 over budget was due to Increase in price.
The motion oassed unanimousiv.
Coundimember Woodward made a motion to approve Rem a. CougcilmgMbers Johnson and Wagamonended the
motion.
Aron Kulhavy, Director of Public Works, said Wade Gillespie, of Huntsville Aviation, is under a 25 -year lease for FBO
services, entered Into In 2000, and approached the City with the intent to construct a new $300,000 hangar, and
requested negotiate and renew the lease In light of his proposed Investment. Mr. Kulhavy said the fee payment of the
lease was changed to a cost per square foot, in the hope of reducing fuel charges and making them more competitive.
Mr. Kuthavy said the proposed amount was $0.0125tsf for the entire 22 acres, as well as an escalator based on the
consumer price index {CPi }. Mr. Kulhavy said they estimated the City would generate approximately $.10;000 In
additional revenue monthly.
The Mayor asked about property tax on the new facility, Mr. Kulhavy said it would be a City asset as soon as it was
constructed, but there would be property taxes on the equipment and belongings In the building.
Leonard Schneider, City Attorney, said there was a right of assignment In Section 19.1 that had to be approved by the
City. Mr. Kulhavy, In response to Councilmember Wagamon's question, confirmed a change in the lease presented
that evening from the copy in the agenda packet, previously listed at $0.015.
Coundimember Johnson asked If the lump Burn figure shown was being replaced, and Mr. Kulhavy said It was what
would be paid this year, and then refigured each year.
Councilmember Barnett asked about the length of the lease. Mr. Kulhavy said other leases varied widely, In tenr►s of
lease length and service provider, with services sometimes provided by a city itself. Counciimember Barrett ventured
that the length may be to support Mr. Gillespie's Investment, and Mr. Kulhavy confirmed this.
Mr. Balne, City Manager, said they had been working on the lease for about a year and a half, that capital
Improvements had been deferred, and that there had been clamor from aviation enthusiasts, especially for storage.
He said the City needed the airport traffic, and that it would receive a greater net amount In exchange for a little less
revenue on fuel.
The motion passed unanimousty.
9. STATUTORY AGENDA
a. Presentation, discussion and posslble action to approve Ordinance 201142, amending the traffic 'schedule to
ratify No Parking signs on the north side of 11th Street between Avenue J and University Avenue,
approximately 176' west of the Intersection of Avenue J and 11th Street,lh# reading. [Aron Kulhavy, Director of
Public Works]
The Mayor reminded the Council this was a first reading. Mr. Kulhavy pointed out the request from Walker County
Ace Hardware, the improvement in safety since the signs were placed, and the recommendation from staff to approve
the Ordinance. He also said an adjacent business owner called with complaint, as their employees had parked there.
b. Presentation, discussion and possible action to approve Ordinance 2011 -13, amending the traffic schedule to
ratify No Parking signs in the area of 18th Street and Avenue 1, 1'4 reading. [Aron Kulhavy, Director of Public
Works]
Mr. Kulhavy noted that the draft ordinance did not match what was on the bround, and that they had Intended to
present. He sold the correction was No Parking on Avenue 1, for that block, except for 200 feet south of the
Intersection with 14°i Street on the west side of Avenue 1 only, and referred to the map, .which was correct. He said
local business owners generated the original complaint, due to parkers blocking the flow of traffic, and that the signs
had Improved the safety of the area.
Counclimember Woodward confirmed the City Engineer's recommendations matched the signing that had been put In
place.
Councllmember Montgomery clarified the correction the written ordinance needed for the next reading.
c. PresenfaHon, discussion and possible acfian to approve Ordinance 2011 -14� amending the traffic schedule to
ratify, stop signs at the intersection of Sycamore Avenue and le Street. l reading. [Aron Kulhavy, Director
of Public Works]
Mr. Kulhavy said a traffic engineering study was required due to the development at the location, and one
recommendation was the stop signs. He said they had found a very positive impact on traffic. Coundimember
Wagamon said he was grateful for the signs slowing traffic.
d. Presenta8an, discussion and possible action to approve Ordinance 2011 -16, establishing a Chapter 380
Economic Development Policy and Procedures document, 1'c reading. [Aron Kulhavy, Director of Public
Works]
Mr. Kulhavy said one of the challenges the City had with economic development was the need for guidelines as to
requirements for development, as well as a tool to use in discussions. He said legal counsel had recommended the
adoption of policies and procedures. Mr. Kulhavy said he wanted to reiterate that this was an outline, but did not grant
money or ensure such would be done through adoption of the document, merely that it would establish what would be
necessary In order to make that a consideration. He said each proposal would be negotiated Independently.
Counclimember Woodward said he understood that this document created the opportunity to develop a 380 for
projects, as the Council chose. He confirmed that the Weatherford abatement could have been done as a 380
agreement, and the Council could have chosen to Include performance measures.
Mr. Kulhavy said a 380 agreement very specifically spelled out the obligations of both parties, and could only be
granted by the Council.
Counclimember Fitch' asked why there were requirements in this agreement, if each developer's 380 were then
established on a'case by case' basis. Mr. Kulhavy said this ordinance could establish some guidelines, but would not
prevent the Council from entering Into an agreement for a development that did not meet them, giving the example of
a smaller operation.
The Mayor said the amount of potential Inducement did not seem to him commensurate to the jobs - creation
requirement, and that he was concerned about creating a policy to discuss the relationship between these variables.
Counclimember Barrett said he thought the City did need a comprehensive economic development policy and
program, and welcomed that this was being addressed in some way. He said he did not believe this ordinance was
the best first step to take, as he thought it a fragmented but lengthy ordinance, and that this type of agreement was
often discussed but rarely understood. He suggested developing a recruitment strategy for going after particular types
of industry, and guidelines for creating 380 agreements as part of the overall policy. He said a 380 agreement
enabled cities to give away a public property, In return for economic development, as could not have been done
before, and suggested that cities do so In return for something they believed to be greater. He said he would like
economic development to be addressed more comprehensively.
Mr. Balne said he had asked this to be brought forward, as he had something in mind, and that he needed a toot or
i method to proceed In negotiations with hotels or developers. He said the Council would be able to veto each
agreement, and that this had not been brought to upset anyone. He said a 380 Is a toot given from the government,
and asked for the Council's consideration to create a framework
Councilmember Woodward confirmed this ordinance was not necessary for the Council to create a 380 agreement,
but would be a policy as part of the Comprehensive Plan, and suggested that more details be discussed in each
Individual case, based on business makeup.
i
i Coundhember Wagamon noted the guidelines In the ordinance, expressing a concern for c annibaltzation of existing
jobs, and the Inability to quantify that or to make an objective calculation of what a 380 agreement was doing. He
gave examples of bailouts and Incendvization on a national level, and Its failures. Councilmember Wagamon said
there were existing long-term local business people who would also appreciate an Incentive such as this. He gave the
example of Ernst Jewelers, a business on the square since the 1890s. He said Huntsville was a nice town, that
incoming business owners should come to town and pay buses like everyone else, that struggling business owners
i were not here with their hands out and further that Incen#ivves created a weak community. He said there was no
reason to sign this agreement, as the Council already had the right to create a 380 for an Individual situation, and that
made these guidelines superfluous.
Councilmember Cale asked that Mr. Kulhavy add a mandatory hearing requirement so that those who believed they
would be hammed by a particular 380 agreement could come before the Council, and that there should be a
moratorium on 380s unfit the economic downturn ended. He sold he wa§ very suspicious of the whole idea of sales
t tax rebates in the current economy.
__ �_
-Counclimember Montgomery said it was her understanding that the ordinance only out the Council in a position to be
more competitive. She said she did not see it as a threat, as the Council had full control when exercising this tool.
She said the City was, unfortunately, in competition with other municipalities, and that this was a positioning tool to
move forward in the future.
In response to his questions, Mr. Kulhavy confirmed to Coundimember Woodward that a tax abatement to an industry
would be considered an incentive, and that a 380 agreement could be created to enhance the existing businesses in
downtown Huntsville.
Councilmember Barrett said the Council currently had the freedom to do everything the ordinance suggested, but that
the Council had not yet discussed any of the goals outlined In It describing the ordinance as a bollerplate agreement.
He said the Council did not have articulated goals for what they were proactively trying to do, or a strategy for
recruiting economic development.
Councilmember Johnson said everyone had made a good point, but that he was hearing a need for motivation to
begin a program of economic development, and urged the Council to start the process.
Coundimember Olson asked if there was any advantage to the Ordinance over and above what was already available
to the Council. He said he hoped that a baseline would be set to start, and asked what was gained through the
Ordinance.
Mr. Balne said he thought the material gain was that companies looked for this type of document, and that this would
provide an example to be shown to potential developers.
Councilmember Olson characterized the Ordinance as a flashing sign saying, 'Huntsville is open for business." He
said he would like to see something more concrete when the Ordinance was again presented.
e. Presentation, discussion, and possible action to approve Ordinance 2011 -08, authorizing the issuance of City
of Huntsville, Texas General Obligation Refunding Bonds, Series 2011; approving an official statement;
authorizing execution of a Paying Agent/Reglsbrar Agreement, a Bond Purchase Agreement and an Escrow
Agreement; establishing procedures for selling and delivering the bonds; and authorizing other matters
relating to the bonds. Winston Duke, Finance Director]
Councilmember Woodward made a motion to approve. Counciimember Barrett seconded the motion.
Mr. Duke said this was a refinancing of a 2005 refunding issue, which was originally a 2000 street bond issue in the
construction of Veterans Highway. Mrs. Jana Hansen Edwards of McCall, Parkhurst, and Horton, the City's bond
counsel, explained the general refunding process, and referred to the items Included, the provisions of which, and a
recommendation of four percent savings, had been discussed by the Finance Committee.
Mrs. Edwards said this was a delegated ordinance, including the parameters, which delegated authority to the City
Manager to sign the pricing certificate on the day of pricing, giving the City flexibility for the best pricing.
Coundimember Woodward asked about the annual savings, and Joe Morrow of First Southwest, the City's financial
advisory, said it would be approximately $147,000 gross net savings, or about $16,000 annually, for 2012 -2020, and
$10,000 in the current fiscal year. The Mayor reminded the Council there would be no extension on the maturity.
The motion passed unanimously.
The Mayor then addressed item d again, that the Charter required a two-thirds vote when abating taxes, not a simple
majority.
f. Presentation, discussion, and possible action to approve Ordinance 2011 -09, authorizing the Issuance of City
of Huntsville, Texas Waterworks and Sewer System Revenue Refunding Bonds, Series 2011; authorizing the•
pledge of certain revenues in support of the bonds; approving an official statement; authorizing execution of
a Paying AgentiRegistrar Agreement, a Bond Purchase Agreement and an Escrow Agreement; establishing
procedures for selling and delivering the bonds; and authorizing other matters relating to the bonds. [1Mnstbn
Duke, Finance Director]
Coundimember Barrett made a motion to approve. Cound[mgmber Olson seconded the motion.
Mr. Duke said this bond issue was a 1997 Water and Wastewater issue being refinanced for the first time. He said the
projected savings was $281,000 on the original $14 million Issue, with currently $4,885,000 outstanding.
Counalmember Woodward confirmed it was a six-year payout, with an annual savings of about $50,000
t
The motion passed unanimously.
i
g. Presentation, discussion, and possible action to authorize the City Manager to approve consideration and
funding of the Retiree Health Insurance trust. [Winston Duke, Finance Director].
Coundimember Olson made a motion to approve Councilmember Barnett seconded the motion
Mr. Duke said the Initial investment recommendation was $1.5 million, and that the last three years the Council had
added $300,000 a year, which was being held In the medical fund. He said the cash flow savings over the last two
years had allowed the City to add another $800,000.
Mr. Duke said he believed the City had always been self-funded. Counciimember Barrett repeated this, that the City
Insurance and retirement was self - funded, that a portion of each year's budget must pay for retirement and medical
costs, and that the City had, over time, developed an enormous unfunded liability. Councilmember Barrett said the
City had begun a trust Into which money would be set aside for the medical and retirement obligations of the City, to
help secure the benefits for retirees, and establish somewhere to go in lean times.
The Mayor clarified with Mr. Duke that the Texas Municipal Retirement System (TMRS) was part of a broader
umbrella, but that this discussion was related strictly to the medical trust and retires insurance.
CounciMember Cole asked about expectation of a date to build the trust to $21 million. Mr. Duke said he didn't know
there was an expectation for that, and that originally, he did not support the Idea of a trust, but now felt it was the best
avenue to build savings legally for Investment Mr. Duke said the goal was not to pay claims out of the trust so the
money grows enough to reach their goal, but that actual ttabilities were not set, and the City would be catching up to
medical inflation. Bryan Whitworth of First Southwest said very few cities ever funded the entire trust and that it was
even cautioned against due to the risk of overfunding.
Councilmember Olson confirmed this was a hedge against growing unfunded liability and creating ways to lessen the
constraints on Investment Mr. Duke said it was also an Important factor in the City's bond rating, and that the City
hoped to continue to fund at $250,000 to $400,000, or more, annually.
The motion passed unanimously.
h. presentation, discussion, and possible action to authorize the City Manager to approve the Investment
Consulting Services Agreement with Milkman, Inc. rmnston Duke, Finance Director]
Councilmember Woodward made a motion to approve Councilmember Fitch seconded the motion
Mr. Duke confirmed Willman, Inc. would be coming to provide Investment advice the next day (December 14, 200),
and that a Finance Committee meeting was scheduled for December 15, 2010. Councilmember Woodward said the
company would be providing investment advice for the trust funds. Councilmember Olson recalled that the City could
Invest without a money manager. Mr. Duke said that had been a factor in choosing a trust, since many required
certain institutions, and the Finance Committee had wanted more independence.
f Councilmember Woodward mentioned there was an annual minimum charge of $2,500 or a fraction of a percent of the
total value on which they consult. Mr. Duke estimated it at no more than $5,000 at $1.5 million.
Councilmember Montgomery asked about the Investment policy. Mr. Duke said the City's policy was fairly detailed,
but did not cover the type of investments desired to be made for this trust, that a separate policy to Invest the trust ..,
funds like a pension would be discussed at this week`s Finance Committee meeting, and he hoped to bring it to
Council in January.
The motion passed unanimously..
7. MAYORICiTY COUNCIL AND CITY MANAGER REPORT
a. presentation, discussion andpossible actlorrto discuss water policy issues. [Standing Ham on first agenda of
each month.]
The Mayor directed the Council to the packet.matertal on the Tenaska agreement of 1998, describing it as "very
beneficial to the City,' and detailing several of the advantages. He also discussed the additional TRA contract for 6
million gallons, noting that although it cost the City more than for their other raw water, the City charged Tenaska a
higher rate also. The Mayor said the City coliected four things from Tenaska, being (1) the monthly charge for water
processed, In the amount of roughly $50,000- 90,000 monthly-, (2) monthly raw water charge of $19,308 for the extra
six million gallons per day; (3) monthly change of 1/12 of $450,000, and (4) a monthly debt ser4ice charge on the
money borrowed for the pipeline to the plant
Councilmember Wagamon asked that at some time the Council discuss the enterprise funds and the policy for them,
along with running totals.
Counciimember Cole asked If anyone had challenged the legality of the transfer from the Trinity River Basin to the San
Jacinto /Navasota Basin. The Mayor said he believed the Issue had been addressed prior to the signing of the
! contract. The Mayor recalled the subject being discussed in 1998 but could not precisely recall the determination
made at that time, and compared the process to the sale of the City`s effluent to Montgomery County.
b. presentation, discussion, and possible action to approve nominees for Council Committees, board's, and
commissions. [Mayor Turner]
The Mayor discussed the nominations (below), lnforming the public that he met with • Counciimembers after each
election to discuss their interests In Council Committees.
NOMINATIONS FOR DECEMBER 14.2010
Finance Committee
Coundlmember Jack Wagamon
Councilmember Keith D. Olson
Youth Advisory Board
r
Kendall Scudder
Personnel Committee
Councilmember Don Johnson
Walker County Public Safety Communications
Coundlmember Lydia Montgomery
Center Executive Board
Coundlmember James Fitch
James Fitch
Communications & Service Committee Huntsville Beautification Advisory Committee
Coundlmember Jack Wagamon Katie Newman
Coundlmember James Fitch
The Mayor made a motion to approve his nominations for Council Committees. Councilmember Woodward seconded
the motion The motion passed unanimously.
The Mayor made a motion to approve his nominations for advisory boards and committees. Councllmembers Barrett
and Woodward seconded the motion The motion passed unanimously.
c. Presentation, discussion, and possible action to discuss an Informal committee to review the Rules of
Procedure. [Mayor Turner]
d. Presentadon, discussion and possible action to consider waiving City fees for COME Center construction%
lCounclmmember Woodward]
Councilmember Woodward said he put the Rem on the agenda at the request of the COME Center, and noted Jim
Willett was present on their behalf.
Mr. Willett said COME was the oldest charitable organization in town, and spurred the establishment of several other
local charities. He sold their current building was deplorable, and had drawn the attention of Fire Marshal, yet served
a vital need in the community. He said it was the only organization in the area that provided utility assistance. Mr.
Willett described the proposed new building would be a warehouse type, and was very encouraged by the help
received from the community. He said the County was providing the land on a lease basis, that the City had provided
some blueprint assistance, and that COME was now asking for a waiver of permit fees not to exceed $1,600.
Coundlmember Woodward reminded the Council that the City provided a dumpster for the Center for a long time. Mr.
Schneider asked for and received an explanation of how the COME Center provided utility assistance, and determined
also that some of these bills were water bills paid to the City, thereby providing a return benefit which serves the public
purpose, enabling the waiver if the Council so chose.
Coundlmember Woodward made a motion to waive the fees on a one-time basis Councilmember Wagamon
seconded the motion.
Councilmember Cole confirmed the COME center was not affiliated with the First Methodist Church.
Mr. Schneider sold he felt the payment of City water bills provided a direct public purpose.
Mr. Baine sold that he endorsed the motion, but reminded the Council that there were 240 non - profits in the City. He
said the City disconnected 100 -300 accounts per month, although there was a benefit to the City in the reconnect
fees, he did appreciate the COME center helping people pay their bills. • Councilmember Woodward sold he
understood, and that this organization had been supported and fit the guidelines established.
Coundlmember Cole asked Mr. Willett what would be done with the old buildings, and was told they would definitely
be demolished.
The motion passed &1 Counoilmember Cole voting against.
e. Presentation of green technology and capabilities of Circle Green Alliance as presented by Circle Green
Alliance CEO Sandy Moon. [Councilman Wagamon]
Councilmember Wagamon confirmed Sandy Moon was not in attendance, so he would pull the Rem.
C City Manager's Report
1. FY2010 -11 financial update & State of the City
Mr. Baine made two PowerPoint presentations to update the Council extensively on the City and departmental
issues [copies of which are available upon request from the City Secretary].. in a discussion of the TRA plant, �
Councilmember Wagamon disagreed that the work could not be done in components, as the Council had
previously requested it be presented, since} It could not be built in one day regardless.
Counclimembers Johnson and Montgomery thanked Mr. Baine for a very good overview.
2. Water concerns
Mr. Baine said he had covered this item In his presentations.
3. Town Creek Retirement Community sewer line
Mr. Baine said it was in the public's interest to have the City match the sewer line Improvements up to 40 %.
d. Update on Highway 99
Mr. Baine said the project had been delayed for fnve months for public comment
5. Huntsville for the Holidays recap
Mr. Baine acknowledged Matt Lumpkins, Klmm Thomas, and Kim McAuliffe, and said it was a successful event.
8, TIRZ update
Mr. Baine said the City relationship with Properly Commerce was "pretty good.' He said more development
information updates would be released as possible.
7. United Way fundraiser update
Mr. Baine referred to his earlier praise of Linda Hicks.
g, Discussion of deposition testimony given by Wes Altom at City Hall on December 90, 2010. jCounclimernber
Wagamonj
Councilmember Wagamon sold he had attended the deposition last Thursday, as he had not responded to Mr. Aitont's
accusations about him until Mr. Altom had had an opportunity to °go on the record.' Councilmember Wagamon said
that the deposition included Mr. Altom's declaration that Councilmember Wagamon had written about the Issue of Mr.
Russell's arrest Councilmember Wagamon said that he had not written [meaning his publication, he said] about that
before the time Mr. Altom was fired, although he said it refuted it later, closer to the election.
Councilmember Wagamon said the problem he had had about the 'warrantless arrest' was with [former] Chief Barrow.
He said he had discussed the case with Barrow, wherein Mr. Barrow had told him 'you can't ask questions of us, we're
cops. If you do, we'll unionize, or we'll investigate you. And it doesn't matter if you find out anything about us, we're
cops, you can't fire us.'
Councilmember Wagamon sold Mr. Altom implied Wagamon Printing had a business relationship with Mr. Russell, but
their records showed no business had been done for Mr. Russell in the last thirteen years. Further, Councilmember
Wagamon said he had done over $80,517.52 In that time with Altom Consulting, and, through that account, with the
Chamber of Commerce, Alpha Omega Academy, and the Church of Christ, among others.
Councilmember Wagamon said it was fine to think something, but that bringing a federal lawsuit, saying in a
deposition that someone Is doing something because of their business ties, and spreading complete lies in the
community can harm someone, and harm their reputation. He said he was only dealing with what Aifom had
specifically said about him, which In deposition and through documentation has proved to be false.
8. PUBLIC COMMENT
Maureen Samuels thanked Councilmember Wagamon for being patient when he knew there was °wrongdoing° against
hint.
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, Counciimembers, and City staff for which
no action will be discussed or taken)
The Mayor reminded the public of the time capsule, and said submissions could be made through Christmas Eve.
The Mayor announced_ agrant- akriiing workshop o be held at the University, and said Dr. _McKibben, Community
Development Specialist, could be reached for questions.
Ktmm Thomas, Director of Tourism and Cultural Arts, recognized all of the contributors to the Huntsville for the Holidays
weekend. The Mayor rec ognbmd Mrs. Thomas for her efforts.
'11. EXECUTIVE SESSION
a. City Council will convene In dosed session as authorized by Texas Government Code, Chapter 551; Section 51.071 —
consultation with counsel on legal matters including c ftnt and pending litigation, including, but not limited to, AT &T
v. the City of Huntsville, the City of Huntsville v the HuntsvilletWalker- County Chamber of Commerce; Harvey v. the
City of Huntsville, Alton v. the City of Huntsville; and Russell v. the City of Huntsville. (Leonard Schneider, City
Attomey]
The Mayor announced that the Council would adjourn into Executive Session. Coundimembers Woodward and
Wagamon suggested that any updates could be handled on the dais. Mr. Schneider said his updates would be very
limited.
Mr. Schneider said Hannon Luther Taylor filed a lawsuit against the City, claiming it had violated his Constitutional
right to travel, as he was given a ticket for not having a driver's license, and that the case had been resolved in the
City's favor.
Mr. Schneider sold Sandy Clark had had a minor fender bender with a City vehicle. He said an attorney's review of
them did not find the claims to be reasonable, and that medical discovery in the case was proceeding. He said these
cases were handled by Steve Selby, appointed by the Texas Municipal League (TML) Intergovemmentai Risk Pool.
Councilmember Barrett raised a concern that he did not believe it to be In the City's Interest to have legal strategies or
findings by consulting attorneys aired In this way, that public discussion in ongoing litigation might weaken the City's
position.
Mr. Schneider said the facts of the case of AT &T against the City were public knowledge, and discovery was ongoing.
Mr. Schneider said he would reserve his right to discuss the cases of Mr. Russell and Mr. Alton, that he felt the
Russell case was frivolous, and that medlatibh In that case would be held on Thursday, December 16, 2010. Mr.
Schneider said there were numerous defendants, meaning numerous depositions were the case to go to discovery.
Councilmember Woodward asked about the ordering of mediation In the Russell case, and Mr. Schneider said the
attorneys Involved suggested It In view of the potential costs of the case,, and the judge wanted to give Mr. Russell an
opportunity before a motion for summary judgment was Mad, and the case moved to discovery, which Mr. Schneider
thought was legally porrect
Mr. Schneider said Mrs. Harvey claimed the, City was negligent In removing stop signs, discovery was ongoing, and
the City was asserting its governmental Immunity.
Mr. Schneider said he would like to discuss other matters regarding the Chamber of Commence and Mr. Alfom's
lawsuit in Executive Session.
Councilmember Wagamon said there were named defendants in Mr. Altom's case, Including former City himself, Mr.
Baine, and former Councilmember Lanny Ray, and asked who could be present In Executive Session. Mr. Schneider
said that as he was the only attorney giving advice In the Executive Session, that he was representing the City as an
entity, and would like only the City Council present Mr. Schneider said TML had hired Mr. Helfand to represent the
Individuals. Councilmember Wagamon expressed his disagreement, and asked the Mayor If the Council was making
a determination that Mr. Ray would not be allowed in Executive Session. Mr. Schneider said he had stated his
opinion, and that it would be a different situation If Mr. Helfand were present
Councilmember Woodward said the deposition showed Mr. Ray had other counsel. Mr. Schneider said the discussion
was drifting Into legal opinion, and that he would not answer additional questions unless the Council voted to waive the
attorney - client privilege.
The Mayor said the Council had received the opinion of the City Attorney, and that a majority could vote to do
something different
Coundimember Waoamon made a motion that, sine MMr. aVs Interests In the case are the same as the C€Ws Mr
Ray be allowed to attend the Executive Session Councilmember Cole seconded the motion.
Councilmember Woodward asked if the individual defendants were named as individuals or as Coundimembers. Mr.
Schneider said he would have to look at the petition again, but probably in both capacities. Coundirnember
Woodward asked what would be best for the City, was concerned about causing harm to the City's position, and
recommended listening to the City Attorney on this matter.
The Mayor made a motion to table the Issue to the next meatina as there seemed to be some confusion on how the -
defendants were named in the suit Counc€ member Wagemon seconded the motion
_.. _.._..__ .. _... Mr. Schneider asked the Mayor to clarify The Mayor said he meant that there would be no further discussion of this
I�
.7
case in this meeting. Mr. Schneider rephrased that the Mayor meant there would be no more discussion of the Altom
case in the meeting. Counclimember Woodward said he would not give up his right for discussion, Executive Session,
or to consult with the City Attorney. Mr. Schneider and the Mayor confirmed a vote was called fot
Councilmember Fitch asked for clarification of the motion to table. The Mayor said it was for the update from the City
Attorney on this case alone. Mr. Baine asked the Mayor to clarify yes and no votes. The Mayor said a yes vote would
mean to proceed to the next Item in Mr. Schneider's report, and a no would mean the Council would go to Executive
Session without Mr. Ray. The City Secretary said she had the main motion as Counclimember Wagamon's motion to
permit Mr. Ray into Executive Session.
The Mayor sold he would like to table that-motion as well, as there was a question over what the filing, was.
Counciimember Olson said he understood that Mr. Ray had Mr. Helfand representing him, but had a question as to
why Mr. Ray was represented by Mr. Cantrell In the deposition, and why Mr. Cantrell would have been permitted in the
deposition if he were not representing Mr. Ray.
The Mayor withdrew his tabling motion to receive clarification.
Mr. Schneider said he did not recommend the Council Invite others Into Executive Session to receive his advice on
this matter. He said the Individuals were sued in their Individual capacity and as representatives of the City. He said
his reason was that the Executive Session would have to go Into legal strategy and advice.
The Mayor said they were back to Counclimember Wagamon's motion. Councilmember Wagamon said it was not
different than other advice from the City Attorney, but not it was not a ruling which bound thHe reminded the Council it
was their decision. Councilmember Fitch asked If the Council could go into Executive Session to hear Mr. Schneider's
reasons to exclude Mr. Ray.
The Mayor permitted Mr. Ray to speak. Mr. Ray said that Mr. Helfand was the lead counsel for the Individuals as well
as the City. Counciimember Woodward said the deposition draft transcript did not say that Mr. Ray said the City was
a codefendant, that they had precisely the same suit against them, and that they had not been separated.,: He said
excluding him from the Executive Session was a breach of fiduciary duty and set a dangerous precedent
Councilmember Woodward said he had a serious objection to the way the meeting was proceeding.
The Mayor said the Council would adjourn into Executive Session to hear Mr. Schneider's concerns. The Council
adioumed at 9:37n.m.
12. RECONVENE
a. Take action, if needed, on Items discussed in Executive Session.
The Council reconvened at 9:57o.m.
Counclimember Wapamon withdrew his motion and Coundimember Cole withdrew his second.
The Council adjourned Into Executive Session at 9 :580.m.
The Council reconvened at 11:10 o.m.
Mr. Schneider said there was a new development in the Chamber case, which he would like to discuss in Executive
Session.
The Council reconvened at 11 :53a.m.
The Mayor said Counclimember Montgomery had filed a Conflict of Interest with the City Secretary and did not
participate In the Executive Session discussion over the Chamber case.
13. ADJOURNMENT
The meeting was adjourned at 11 :54p.m.
L gdward, City Secretary