MIN CC 08/21/2001CITY COUNCIL. MEETING OF AUGUST 21 2001 BOOK "S" 342
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 21ST DAY OF AUGUST, 2001, IN THE CITY
HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 5:15 P.M. -
The Council met in a regular session with the following members present:
COUNCILMEMBER:
William B. Green, Mayor
Gary Crawford
Mark Erb
Vance Howard
Absent: David Martinez
Ralph A. Davis, Jr.
Marjorie Rex
Steed Smith
John Escobedo
CALL TO ORDER [5:15 p.m.]
Mayor Green called the meeting to order.
INVOCATION
Invocation by Ray Black, Interim Assistant Public Works Director.
PUBLIC COMMENTS
Officers:
Bob Hart, City Manager
Paul Isham, City Attorney
Danna Welter, City Secretary
Charles Smither, Jr., Brian Woodward and Dalene Zender spoke against Resolution No. 2001 -08 -21.3 authorizing the
submission of a Texas Community Development Program application to the Texas Department of Housing and Community
Affairs for a Housing Infrastructure Fund grant.
CONSENTAGENDA
1. Approve minutes of June 19 and July 24, 2001.
2. Approve the contract with RWT Telecommunications for long distance service for one year, with two one -year renewal
options, to be funded from budgeted funds.
3. Approve the purchase of 12" pipe and supplies from Hughes Supply for $70,371.60, to be funded from budgeted funds,
for the first phase of the Westridge waterline project.
4. Approve Resolution No. 2001-08-21.1 declaring expectation to reimburse expenditures for Raven Nest Golf Course with
proceeds from the issuance of debt.
5. Approve Resolution No. 2001 -08 -21.2 authorizing City Manager, Bob Hart, Director of Finance, Patricia Allen and
Accounting Supervisor, Martha Blume to sign draw forms for project reimbursement for TDHCA Contract No. 721371 -
First Time Sewer on Old Colony Road.
Councilmember Howard made a motion to approve the consent agenda, and Councilmember Rex seconded the motion
The motion passed unanimously.
STATUTORY AGENDA
1. Approve Resolution No. 2001 -08 -21.3 authorizing the submission of a Texas Community Development Program
application to the Texas Department of Housing and Community Affairs for a Housing Infrastructure Fund grant.
The need for affordable housing in Huntsville has been apparent for some time. The current market demand is very
strong for new single family residents from 1300 to 1500 square feet in a price range between $79,000 and $99,000. In the
past three years 187 homes have been constructed in Huntsville with an average valuation of $112,000. The goal of the
Texas Community Development Program is the development of viable communities by providing decent housing and a
suitable living environment and by expanding the economic opportunities , principally for persons of low and moderate
income. The funds from this grant will be used to extend water and waste water lines to a 127 acre tract on FM 1791, just
south and west of 1 45, for the development of a subdivision for affordable housing. The developer will construct the
infrastructure within the development and build three and four bedroom homes with enclosed garages in a price
range($89,000 - $100,000) that will be affordable for low to moderate income families in our community. To fulfill the
requirements of the grant, the developer must sell at least 51 % of the homes to individuals or families that have an income
of less than 80% of the median family income for the area.
Linda Costley, with the Institute for Finance and Economic Development Corp. spoke in detail regarding the requirements
and restrictions for this housing infrastructure grant.
The consensus of City Council was to revisit this item when additional information would be available. Staff stated that
information could be obtained and presented on Wednesday, the 22ntl. Council agreed to recess at the conclusion of this
meeting and continue discussion on Wednesday, the 22"' at 5:15 p.m.
CITY COUNCIL MEETING OF AUGUST 21 200J_ _ BOOK'S 343
I
2. Conduct a record vote to increase the property tax by setting a rate of 43.25 cents, and instruct staff to publish a noticeII
of intent to adopt a tax rate of $0.4325, and to schedule a public hearing on the proposed tax rate for September 4, 2001
at 5:15 pm in the Council Chambers at City Hall.
There are specific requirements and a schedule of events that a municipality must follow as part of the tax rate adoption
process. An effective tax rate and rollback tax rate must be calculated based on a formula mandated by the state. The
effective tax rate is the tax rate that would impose the same total taxes as last year if you compare properties taxed in both
years. The rollback tax rate is the highest tax rate a taxing unit can set before taxpayers can start rollback tax procedures.
In both cases these rates are found by dividing the total amount of taxes by the total value of taxable property with li
adjustments as required by state law. State law prescribes a notice that must be published in the paper.
At a council meeting, the governing body discusses the tax rate that they intend to adopt. A record vote is taken at the
meeting and if the notice and hearing limit is exceeded, the results of the vote is published in the newspaper and a public
hearing on the tax rate must be scheduled. The notice and hearing limit is the highest tax rate that maybe adopted without
notices and a public hearing. It is the lower of the rollback tax rate or 103 percent of the effective rate. Calculations have
been completed. The effective tax rate is $0.40997, the rollback rate is $0.49322. The notice and hearing rate is $0.42226.
The recommended tax rate is $0.4325, the same as the current year.
Councilmember Howard made a motion to Conduct a record vote to increase the property tax by setting a rate of 43.25
cents, and instruct staff to publish a notice of intent to adopt a tax rate of $0.4325, and to schedule a public hearing on the
proposed tax rate for September 4, 2001 at 5:15 pm in the Council Chambers at City Hall.
3. Approve Ordinance 2001 -8 -21.1 abandoning the 50 foot street right -of -way in the M. Johnson Survey, Abstract No. 299
within the J. R. Murray Estate Addition to the City of Huntsville, Texas, and conveying the same by quit claim deed to
' - John Amick, Jr. in the amount of $1,677.
Glenn Isbell stated that the land in question is a strip of land approximately 50 feet wide by 590 feet long. It is recorded
as volume 61 Page 340 of the Deed Records . It is located off Willow street next to The Cornerstone Apartments. The City
can not utilize the right -of -way to connect Willow street to Avenue H and so has contacted the owners of Cornerstone who
have officially declined any interest in the property. Mr. Amick is the property owner on the south side of this land, and as
the adjoining property owner he has the right to buy the property at its appraised value which is $1,677.
Councilmember Rex made a motion to approve Ordinance 2001-8-21.1 abandoning the 50 foot street right -of -way in the
M Johnson Survey Abstract No 299 within the J R Murray Estate Addition to the City of Huntsville, Texas, and conveying
the same by quit claim deed to John Amick Jr in the amount of $1,677, and Councilmember Crawford seconded the motion.
The motion passed unanimously.
4. Approve the Agreement to Construct Public Improvements, West Hill Park, Section 4, and authorize the City Manager
to sign the Contract on behalf of the City.
On December 12, 2000, the City Council approved a developer contract with West Hill Park Joint Venture ("WHP ")(Tom
Curtis)and Home Depot to build a Home Depot store in Huntsville on a tract of land adjacent to the proposed Parkwood
Drive and Interstate Highway 45 West Feeder Road. The City Council approved a revision to the developer contract on
January 23, 2001. The orig inal developer contract with WHP envisioned a detention facility along and under an Entergy Gulf
States utility easement. The design of the project now requires a detention pond upon TDCJ property not included within
the EGSI utility easement. TDCJ is now requiring that a driveway be constructed from the extension of Veteran's Memorial
Parkway to the Holiday Unit parking area as part of the consideration for granting an easement for the detention pond. In
addition, WHP has not acquired all the properties that would allow for the construction of the extension of West Hill Park
Circle and Parkwood Drive, and the nature of the adjoining development to the Home Depot store has changed. Thus, the
scope of the WHP development has changed since the developer contract was approved by the Council and it is necessary
to enter into an additional contract for the construction of the improvements and setting -out additional obligations of the
parties.
This contract addresses the improvements listed on Exhibit "B" of the contract. Those improvements are the extension
of Veteran's Memorial Parkway, the construction of Offsite sewage facilities, and the construction of the detention pond with
driveway to TDCJ's Holiday Unit. The parties have construction estimates from the engineers, Ash & Browne Engineering,
and the total developer construction costs for the three listed improvements should be $894,695. The City has already
received $520,000 from WHP and will receive an additional $150,000 under the existing developer contract when Home
Depot purchases its tract of land from WHP. The new contract does not replace the existing developer contract, but
CITY COUNCIL MEETING OF AUGUST 21 2001 BOOK S" 344
supplements it and revises some of the obligations Under the new contract WHP will pay the City the additional sum of
.i $374,695 from its sale proceeds upon the sale of the tract of land to Home Depot. The City's participation in the
j improvements has not changed, but WHP has diverted a portion of the $520,000 that is to be used for construction of West
Hill Park Circle and Parkwood Drive to the construction of the improvements listed in the new contract. The contract
obligates WHP or its successor to enter into an agreement with the City for the construction of West Hill Park Circle and 'J
Parkwood Drive before the property designated as Reserve A on the plat for West Hill Park, Section 4 can be developed.
j Councilmember Rex made a motion to approve theAgreementto Construct Public Improvements, West Hill Park Section
4, and authorize the City Manager to sign the Contract on behalf of the City, and Councilmember Smith seconded the motion
ii The motion passed unanimously.
5. Approve Change Order #2 to the Arterial Road Segment II project in the amount of $ 210,278,64 for additional dirt
quantities.
The City of Huntsville approved a contract with Smith & Company for the construction of the South Arterial Segment II
during the May 22, 2001 City Council meeting. This contract was in the amount of $3,343,842.45. Upon commencement
of work, an approximate strip 80 ft wide, 300 ft long and 4 ft deep of unstable material was encountered. Smith and
Company has estimated the removal and replacement of said material to be a total dollar amount of $18,166.05.
Councilmember Howard made a motion to accept change order number 1 in the amount of $18.166.05. and
Councilmember Smith seconded the motion. The motion passed unanimously.
6. Approve contract with qualified management consultant to carry out all aspects of program management for the Texas
Department of Housing and Community Affairs Housing Infrastructure Fund award.
This item was postponed until the conclusion of this meeting on Wednesday, August 22, at 5:15 p.m. ,
MAYORXITY MANAGER ACTIVITY REPORT
1. Program /Project Status
2. Upcoming Events:
• Special Meeting - August 20, 2001, Noon, City Hall Council Chambers
• Council Meeting - August 21, 2001, 5:15 p.m., City Hall Council Chambers
• Golf Course Ground Breaking - August 27, 2001 - 10:00 a.m.
• Council Meeting -September 4, 2001, 5:15 p.m., City Hall Council Chambers -
Public Meeting on Tax Rate and Budget
3. Approve reappointment of Nancy Wiilson to the Library Board.
Councilmember Howard made a motion to approve the reappointment of Nancy Wilson to the Library Board
Councilmember Rex seconded the motion. The motion passed unanimously.
ADJOURNMENT [6:55 p.m.]
Meeting recessed until 5:15 p.m. on Wednesday, August 22, 2001 — discussion to continue regarding the Texas
Department of Housing and Community Affairs Housing and Infrastructure grant.
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Danna Welter, City Secretary