MIN CC 02/04/2003CITY COUNCIL MEETING OF FEBRUARY 4, 2003 BOOK "T'
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MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 4TH DAY OF FEBRUARY, 2003, 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:
COUNCILMEMBERS: Mark Erb OFFICERS:
William B. Green, Mayor John Escobedo Bob Hart, City Manager
Jack Choate Vance Howard Paul Isham, City Attorney
Gary Crawford Judy Kayse Danna Welter, City Secretary
Ralph A. Davis, Jr. Steed Smith
FINANCE COMMITTEE MEETING [4:35 - 5:07 p.m.]
The Finance Committee met to review the golf course finances.
CALL TO ORDER (5:15 p.m.]
Mayor Green called the meeting to order.
PLEDGE OF ALLEGIANCE to US AND TEXAS FLAGS, INVOCATION
City Manager Bob Hart led the invocation.
PUBLIC COMMENTS
1. John Strickland. Mr. Strickland stated that the Councilmembers should read their agenda packets prior to the meeting;
spoke in opposition to the two options presented to Council regarding the water well ownership; and stated that the
portion of the Executive Session regarding the City Managers evaluation regarding the golf course contract should be
conducted in open session. Councilmembers Escobedo, Choate and Howard assured MR. Strickland that the
Councilmembers did come prepared to the Council meetings.
2. Richard Almandarez. Mr. Almandarez had a question about his water bill, namely his receipt of a bill even though his
water use is zero gallons.
3. Karl Davidson. Mr. Davidson commended the Council for asking thought- provoking questions; stated opposition to the
transfer of the water well ownership to the City; requested that the Executive Session relating to the City Manager to be
held in open session; and contingency funds usage policy be clarified to manage the City's financial resources wisely.
Councilmember Choate asked Mr. Davidson forsome specific recommendations to assistthe Council in addressing the
high water rates. Mr. Davidson stated he had a laundry list, including cutting spending and increasing revenues.
4. Charles Smither, Jr. Mr. Smither commented about the proposed TXDOT water line contract, stating the location and
size of the rest areas was not clear on the map attached, and the cost estimates were not attached.
5. Brian Woodward. Mr. Woodward spoke at length in opposition to many of Council's actions, namely water fees in
relation to state agencies; the Raven Hills Higher Education Corporation lack of collecting fees; various aspects of the
golf course; and he also requested the City Managers resignation be secured and his evaluation be done in open
session.
6. DaleneZender. Ms. Zander requested that Councilmembers vote on items individually and explain why theyare voting
for or against the agenda item.
7. Carmen Irving. Ms. Irving spoke in regards to Jewel McAdams' termination, stating that it was hypocritical that Ms.
McAdams was terminated in light of the City Manager's actions, asking if there is a double standard.
8. Mona Harrel I. Ms. Harrell asked that the agenda item regarding the architectural services contract with TAO Limited be
postponed until the City Manager is cleared of any charges that may be pending.
CONSENT AGENDA
1. Approve the minutes of January 21, 2003 City Council meetings.
2. Approve the purchase of new furniture under the state purchasing contract for the Lieutenant's, Support Service
Sergeant's, Administrative Sergeant's, Patrol Sergeant's, Patrol and Records' offices.
3. Authorize the City Manager to enter into a contract with TAO Unlimited, Jay Turner, for architectural services on the
proposed Raven Nest Municipal Golf Course Clubhouse in the amountof $28,000.00 to be funded from budgeted funds.
4. Approve Resolution 2002 -02 -04.1, authorizing the City Manager to enter into a Lease - Purchase Agreement with
Government Capital Corporation for the purpose of procuring asset management and finance software packages at a
cost not to exceed $1,068,000 to be paid from budgeted funds, previously approved by City Council on January 21, 2003
CITY COUNCIL MEETING OF FEBRUARY 4 2003 BOOK T 11
2. Approve the purchase of new furniture the state purchasing for the Lieutenant's, Support Service FI
� PP P P 9 PP I,
Sergeant's, Administrative Sergeant's, Patrol Sergeant's, Patrol and Records' offices.
Most of the current furniture was purchased new in 1980. This furniture was not designed for computers and does
'i not have provisions for placement of computers. Any additional furniture that has been received was through donations
I l
ji from other departments as they received new furniture. Much of the furniture is broken, unmatched and obsolete. Since
!I 1980 the department has increased in number of officers and requires more work stations. The furniture ishighlyvisiblej
'I to citizens as they enter the police department and does not convey the message of a professional organization. The
j; furniture will be purchased under the state contract.
Councilmember Crawford made a motion to table this item until a future meetim and Councilmember Choate
iI
seconded the motion. The motion oassed unanimously.
3. Authorize the City Manager to enter into a contract with TAO Limited, Jay Turner, for architectural services on the
'! proposed Raven Nest Municipal Golf Course Clubhouse in the amount of $28,000.00 to be funded from budgeted funds.
This facility has been previously bid out two differenttimes, with unsuccessful results both times. The received bids
were out of budget for this facility both times. After much delay, we are resuming the design of a facility that can be
constructed for the estimated $400,000.00 budget. !I
4.
unanimously.
Approve Resolution 2002 -02 -04.1, authorizing the City Manager to enter into a Lease - Purchase Agreement with
Government Capital Corporation for the purpose of procuring asset management and finance software packages at a
cost not to exceed $1,068,000 to be paid from budgeted funds, previously approved by City Council on January 21, 2003.
The lease- purchase agreement with Government Capital Corporation was approved by City Council at the January
21, 2003 meeting. The agreement with Government Capital requires the City of Huntsville provide a resolution
approved and accepted by City Council for the $1,068,000.00 financing of the asset management and finance software
STATUTORY AGENDA
Approve Ordinance 2002 -02 -04.1, ordering a municipal election to be held on the 3rtl day of May, 2003, forthe purpose
of electing a Mayor At -Large and four Councilmembers, one from each of the Citys four Wards, One (1), Two (2), Three
(3), and Four (4); designating the places and manner of holding the election; and providing for the pasting and
publication of notice.
The City Charter calls for regular elections to be held on the first Saturday in May of each year. The Mayor and
four Ward Councilmembers are elected in odd - numbered years. The City has met with the Walker County Hospital
District and Huntsville Independent School District to outline a joint election agreement similar to those in the past few
years, and will bring a joint agreement to Council in the near future.
2. Consider authorizing the transfer of ownership of the water well and access road to the Water Fund and reimburse the
Golf CIP Fund $584,901.94 which will be funded from the Water CIP.
When the City negotiated with Sam Houston State University (SHSU) for the land lease for the construction of the
golf course, SHSU required a provision within the lease agreement that would permit the University to terminate the
lease at anytime following the ten (10) year part. In the event such a cancellation occurred, SHSU will pay for all of the
then- outstanding debt (including internal loans) of the golf course.
The policy issue that arises is whether or not the water well should be an asset of the golf course or an asset of the
water system. Two policy options are as follows:
1) If the golf course well is owned by the golf course, it is funded by the golf course fund. The wel I will be paid
for through the debt repayments paid by the golf course. The source of funds will be the original $5 million debt issue or
a loan from the utility fund(s). In addition, the golf course will contract with the Public Works Department to actually
operate and maintain the water well since it is the only department within the city that has the technical ability to do so.
This would result in a per - 1,000- gallon fee or a fixed contract to compensate for the cost of the Public Works Department
to operate and maintain the well. In the event the University terminated the golf course lease, ownership of the well
would then transfer to the University.
2) If the water well is owned by the water fund, the golf course will purchase water from the Water Fund. Inthis
CITY COUNCIL MEETING OF FEBRUARY 4, 2003 BOOK "T"
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scenario the water fund will design a rate to recover the debt cost and operational costs. This rate will then be an
operating expense of the golf course. Under this scenario, it is necessary that the golf course repay the Water Fund
through a usage fee so that the Water Fund is not subsidizing the golf course. If the Water Fund is allowed to subsidize
the golf course, it is in violation of our rate- setting methodology and in particular in dealing with the rate- setting
methodology for state institutions. In the event the University terminates the golf course lease, ownership of the well
would be retained by the City. At that point, the City would have the option of using the well to irrigate City-owned
property or convert the well to a potable well and link it into the public water supply system.
Under either policy scenario, the golf course will pay for the water well. The issue is if the University should
terminate the golf course agreement, should the water well revert to the University or should it stay with the City? Once
that question has been answered, then the asset can be booked into its proper fund.
Councilmember Smith made a motion to table this item to a future meeting: and Councilmember Crawford
seconded the motion. The motion oassed unanimously.
Authorize the City Manager to enter into an agreement with the Texas Department of Transportation to construct a 6 -inch i
waterline to the proposed rest areas located along IH-45, 0.80 miles north of FM 1696 to be constructed by city crews i
with a contribution of $150,000 from TXDOT.
TXDOT is planning to construct two Type 1 rest areas. Type 1 rest areas are the highest standard of rest areas '!
constructed by TXDOT. The planned rest areas will have a minimum size of 35 acres each. The facilities at the
proposed rest areas will include approximately 12 water closets, 4 urinals, 10 sinks, 2 mop sinks, and a sprinkler system
for landscaping and irrigation.
The proposed rest areas are located with the City's water service area. In order to serve the rest areas, the City's l l
water system must be extended to the proposed locations. This will require that approximately 18,500 linear feet of 6
inch water line must be constructed to serve the proposed rest areas. Other construction items such as bore and
encasement, clearing and grubbing and other miscellaneous items will be required.
TXDOT is providing $150,000 towards the construction of the water line. The City will be responsible for all costs
that exceed $150,000.
MAYOR/CITY MANAGER ACTIVITY REPORT
Mayor Report.
City Manager Program /Project Status.
1) Youth Advisory Board proposal.
2) Wynne Home logo.
Future Events:
February 7 -9
February 10
February 18 5:15pm
March 4 5:15pm
March 7 -11
March 25 5:15pm
April 5:15pm
April 18
April 22 5:15pm
Association of Mayors, Councilmembers and Commissioners (Austin)
TML Legislative Briefing (Austin)
City Council Meeting
City Council Meeting
NLC Congressional Conference (Washington, D.C.)
City Council Meeting
City Council Meeting
Good Friday —City Offices Closed
City Council Meeting
RECESS [7:05 — 7:20 p.m.]
MEDIA INQUIRIES
Mr. Sablatura of the Huntsville Observerstated that the Mayor told the citizens at the previous Council meeting that the water
at the golf course well was potable. The Mayor apologized for his misrepresentation of the information. Mr. Sablatura also
asked why the staff did not clarify the issue at the time. The Mayor staled that it was difficult for the staff to make those types of
corrections to the Mayor and Council and stated he would in the future ask the staff to respond to those types of questions.
CITY COUNCIL MEETING OF FEBRUARY 4 2003 BOOK T" 13 _ - - --
RECESS - EXECUTIVE SESSION [7.20 - 10.55 p.m.]
The City Council conducted a closed session under the Texas Government Code, Chapter 551 for the following matters:
a. Section 551.071 - Consultation with its City Attorney on the golf course contract in which the duty of the attorney to the
governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly
conflicts with the Open Meetings Law.
b. Section 551.074 - Evaluation of City Manager relative to the golf course contract.
C. Section 551. 071 - Consultation with the City Attorney about pending orcontemplated litgation againstthe City including:
Gardner vs. City of Huntsville, Jewel McAdams vs. City of Huntsville, and Ashley Williams vs. City of Huntsville.
RECONVENE [10:55 p.m.]
The City Council reconvened from Executive Session and the Mayor stated that the Council deemed it appropriate to issue a
Letter of Reprimand to the City Managerwith regard to actions concerning the change orderwith Duininck Brothers on the golf
course. The Mayor read the proposed Letter of Reprimand and called fora motion approving the same. Councilmember Erb
moved to approve the Letter of Reprimand and it was seconded by Councilmember Howard. The vote was called and the
Letter of Reprimand was approved on a vote of seven to two with Councilmembers Crawford and Escobedo voting against the
motion.
ADJOURNMENT [10:58 p.m.]
Danna Welter, City Secretary
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