MIN CC 09/18/2001CITY COUNCIL MEETING OF SEPTEMBER 18, 2001 BOOK S' 348
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MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 18TH DAY OF SEPTEMBER, 2001, IN THE
CITY HALL, LOCATED AT 1212 AVENUE MIN 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
Ralph A. Davis, Jr.
Officers:
Gary Crawford
Marjorie Rex
Bob Hart, City Manager
Mark Erb
Steed Smith
Paul Isham, City Attorney
Vance Howard
John Escobedo
Danna Welter, City Secretary
David Martinez
FINANCE COMMITTEE MEETING [4:00 p.m. - 4:30 p.m.]
Discuss: a. Review changes to the Budget and Fiscal Policies;
b. Review Employees Health Insurance funding; and
c. Discuss engagement of Winstead Sechret & Minick P.C. to review of matters related to the franchise fee
calculation by Entergy.
Mayor Green called the meeting to order.
Invocation by Bob Hart, City Manager.
CALL TO ORDER [5:15 p.m.]
INVOCATION
PUBLIC COMMENTS
Charles Smither, Jr. Mr. Smither stated that on Monday, September 10", a posted meeting was held by the Planning
and Zoning Commission at Noon. Upon arrival at the meeting, a sign was on the door that said "No Admittance until
12:00 ". Evidently the Commission eats their lunch before the meeting, but he feels there should not be a quorum present
without citizens being allowed into the room. There were several people at the meeting and they had to stand in the hall
until Noon to find their seats.
Mayor Green asked staff to check into this issue.
STATUTORY AGENDA
1. Consider Ordinance 2001 -21 approving and adopting the operating and capital improvements budget for the City of
Huntsville, Texas, for the period October 1, 2001, through September 30, 2002.
Councilmember Howard made a motion to approve Ordinance 2001 -21 aoorovino and adouti no the onerati no and capital
improvements budget for the City of Huntsville. Texas for the period October 1 2001 through September 30 2002 and
Councilmember Erb seconded the motion. The motion passed unanimously.
2. Consider Ordinance 2001 -22 adopting the tax rate of $.0.43250 and levying taxes for the City of Huntsville for the 2001-
2002 fiscal year.
Councilmember Rex made a motion to adopt Ordinance 2001 -22 adopting the tax rate of $.0.43250 and levvina taxes
for the City of Huntsville for the 2001 -2002 fiscal year, and Councilmember Howard seconded the motion. The motion
assed unanimousl
3. Authorize the City Manager to enter into an agreement with Winstead Sechret & Minick P.C. for review of the matters
related to the franchise fee calculation by Entergy Gulf States, Inc. at a cost not to exceed $15,000, to be paid from
unallocated monies in the Street Special Revenue Fund.
The method used to calculate the electrical franchise payments due to the City will change. In general, under Senate
Bill 7 franchise fees are to be paid based on kilowatt hours delivered by the utility to customers. A base year calculation
for a per kilowatt hour rate is made using 1998 payments and consumption. Because this calculation will determine
payments to the City, it is critical that the City be comfortable that the rate calculation is correct. Entergy has provided the
City with a calculation for the estimated franchise payment under the new formula and it results in a smaller payment than
what staff was expecting. The City previously contracted with Clarence West for the audit of the franchise taxes paid to the
City and several corrections were made by Entergy as a result of the audit. The 1998 year included adjustments in the
calculation and according to Entergy, some manual calculations were required to determine the amount due to the City for
that period. Staff has contacted Clarence West about the franchise calculation since he handled the previous audit for the
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CITY COUNCIL MEETING OF SEPTEMBER 18,_2001 BOOK'S - 349 - --
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City and Mr. West has submitted his firm's engagement letter for performing the review of the franchise calculation and
related matters with Entergy.
Councilmember Howard made a motion to Authorize the City Managerto enter into an agreementwith Winstead Sechret
j & Minick P.C. for review of the matters related to the franchise fee calculation by Entergy Gulf States Inc. to be paid from
j unallocated monies in the Street Special Revenue Fund and Councilmember Erb seconded the motion. The motion passed
unanimously
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'i 4. Approve the award for Stop Loss and Annual Aggregate coverage to Employers Re- insurance Corp with a $60,000
specific deductible; contract with Sun Life of Canada for employee Basic Life, AD &D coverage and Long Term Disability;
and approve transfer for $68,000 (General Fund $35,000; Water Fund $11,000; Wastewater Fund $11,000; Solid Waste
�.� $11,000) from FY 2001 -02 Reserve for Future allocations to Employee Health Insurance fund.
Mr. Lyndon Smith, Employer Plan Services met with city staff to review the proposals and specifics of coverage for Stop
Loss coverage for the City's self- funded Health Plan; the basic life and AD &D coverage; and the employees' long term
disability coverage. The staff recommends that City Council:
a. Award the Stop Loss and Annual Aggregate coverage to Employers Re- insurance Corp. with a $60,000 specific for an
annual premium of $230,578.92. (This is $83,627.88 increase from last years due to and increase of current and
potential large health claims.)
b. Award the contract to Sun Life of Canada for employee Basic Life and AD &D coverage with an annual premium of
$20,492.16 (same as current rate). This is the first year of a two year rate guarantee.
c. Renew the Long Term Disability contract to Sun Life of Canada for an annual premium of $34,311.80 (same as current
rate). This is the second year of a two year rate guarantee.
d. Approve transfer for $68,000 (General Fund $35,000; Water Fund $11,000; Wastewater Fund $11,000; Solid Waste
' $11,000) from FY 2001 -02 Reserve for Future allocations to Employee Health Insurance fund to cover increase of current
and potential large health claims.
Councilmember Howard made a motion to approve the award for Stop Loss and Annual Aggregate coverage to
Employers Re- insurance Corp with a $60,000 specific deductible; contract with Sun Life of Canada for employee Basic Life
AD &D coverage and Long Term Disability- and approve transfer for $68,000 (General Fund $35,000; Water Fund $11,000;
Wastewater Fund $11,0007 Solid Waste $11,000) from FY 2001 -02 Reserve for Future allocations to Employee Health
Insurance fund and Councilmember Rex seconded the motion. The motion passed unanimously.
CONSENT AGENDA
1.
Authorize the City Manager to enter into an Reimbursement Agreement with AT &T for lowering an existing cable to
facilitate the construction of the Urban Arterial Segment II project at an estimated cost of $39,005, and approve Change
Order no. 3 deleting the sum of $40,000 dollars from segment II of the Urban Arterial Construction Contract.
2.
Approve the purchase of seven (7) trucks from Hillcrest Ford in the amount of $125,610.00 and one (1) truck from the
H -GAC contract for $28,194.00, to be funded from budgeted funds (FY 2001 -02 budget).
3.
Approve the purchase of a Vermeer brush chipper in the amount of $23,000.00 from the General Services Commission
Contract, to be funded from budgeted funds (FY 2000 -01 budget).
4.
Approve the purchases of three solid waste refuse vehicles from H -GAC forthe total amount of $293,405.96, to befunded
from budgeted funds (FY 2001 -02 budget).
5.
Approve the purchase of six (6) vehicles from the H -GAC contract for a total amount of $104,821.52, to be funded from
budgeted funds (one FY 2000 -01 budget and five FY 2001 -02 budget).
6.
Approve the purchases of a 4 -wheel drive tractorfrom Lansdowne Moody Co. in the amount of $59,985.00 and a 2 -wheel
drive backhoe from Texas Timberjack in the amount of $42,620.00, to be funded from budgeted funds (FY 2001 -02
budget).
7.
Approve $2,500 grant match for the TIFB (Telecommunications Infrastructure Fund) for a community network 2 planning
grant of $25,000, to be funded from budgeted funds.
8.
Authorize purchase of Tele -Works in the amount of $23,500 for the system platform and Information KIOSK system, to
be funded with budgeted fund.]
9.
Approve Resolution 2001 -09 -18.1 accepting a Tobacco Compliance Grant for the Police Department in the amount of
$3,000, and authorizing the City Manager to execute the acceptance documents.
Councilmember Howard made a motion to approve the Consent Agenda and Councilmember Rex seconded the motion.
The motion passed unanimously.
CITY COUNCIL MEETING OF SEPTEMBER 18, 2001 BOOK "S"
MAYOR/CITY MANAGER ACTIVITY REPORT
.. 350
1. Program /Project Status
Mr. Hart stated that before the next City Council meeting, we would have a ribbon cutting forthe new Veteran's Memorial
Parkway.
2. Distribute Tourism Development Plan as prepared by Chandler, Brooks & Donahoe, Inc., and set date for adoption.
Mayor Green stated that there would be a work session to discuss the tourism development plan on October October''
23"' at 4:00 p.m.
3. Authorize City Manager to join the Transportation Excellence for the 21" Century (TEX -21) coalition at a cost of $5,000,'.
to be funded from budgeted funds.
Councilmember Rex made a motion to authorize the City Manager to loin the Transportation Excellence for the 215''.'
Century (TEX -21) coalition at a cost of $5.000 to be funded from budgeted funds and Councilmember Martinez seconded ".
the motion. The motion passed unanimously.
4. Discuss Draft TIF District #1.
Mayor Green stated that there would be a work session on October 91h to discuss the TIF District #1.
5. Upcoming Events:
TDCJ Board Meeting in Huntsville - September 28, 2001 [Breakfast at City Hall at 8:00 a.m.]
City Council Meeting - October 9, 2001, 5:15 p.m.
City Council Meeting - October 23, 2001, 5:15 p.m.
Employee Recognition Ceremony - November 2, 2001, Walker County Fairgrounds
ADJOURNMENT [5:55 p.m.]
Danna Welter, City Secretary ,