MIN CC 03/23/2004LJ
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CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T"_ 113
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 23RD DAY OF MARCH 2004, IN THE CITY _
HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:00 P.M.
I The Council met in a regular session with the following members present:
COUNCILMEMBERS: Judy Kayse OFFICERS:
!� Karl Davidson, Mayor Bob Tavenner Kevin Evans, City Manager
Jack Choate Jim Willett Danna Welter, City Secretary
Gary Crawford Mac Woodward Thomas Leeper, City Attorney
i Vance Howard Steed Smith
WORK SESSION [5:00 — 5:55 p.m.]
The City Council conducted a work session to discuss the proposed creation of a Community Development Division
of the Planning & Development Department, as presented by Glenn Isbell, P. E., Director of Planning & Development.
CALL TO ORDER [6:05 p.m.]
Mayor Davidson called the regular session to order.
PLEDGE OF ALLEGIANCE to US AND TEXAS FLAGS, INVOCATION
Director of Parks and Recreation Ray Black led the invocation.
PUBLIC COMMENTS
1. Stan Folev. Mr. Foley, on behalf of the Huntsville Lakers swim team, asked permission to place registration signs in the
City's right -of -ways.
2. Cheryl Eschenfelder. Ms. Eschenfelder spoke in support of the proposed creation of a Community Development Division
in the Planning and Development Department in order to promote a spirit of collaboration and cooperation between the
local area government and the local non - profit organizations in the community.
3. Scott Atnio. Mr. Atnip also spoke in support of the proposed creation of a Community Development Division in the
Planning and Development Department, citing many of the same reasons that Ms. Eschenfelder touched upon.
4. David Cummings. Mr. Cummings spoke in opposition to the proposed tag rule.
5. John Strickland. Mr. Strickland asked if the City were now "under the auspices of the United Nations ", and if so, who
regulates this code (in reference to the Council- adopted International Building Codes), and stated there was no budget
so how could there be budgeted funds for a new fire truck.
6. Brian Woodward. Mr. Woodward commented that the wording on the bond items regarding levying an ad valorem taxis
merely bond terminology and that no new taxes would be levied; and also spoke in support of the proposed TDHCA
housing grant, the proposed fiber network contract with Walker County and the proposed tag rule.
7. Charles Smither, Jr. Mr. Smither spoke in opposition to the amendments to Title 25 regarding sediment and erosion
control.
CONSENT AGENDA
1. Authorize the City Manager to execute the joint election agreement with Huntsville Independent School District and
Walker County Hospital District to conduct an election jointly on May 15, 2004 to be funded from budgeted funds.
2. Approve the purchase of one (1) 2004 Sterling pumper truck from Ferrara Fire Apparatus, Inc. in the amount of
$189,485.23 to be funded from budgeted funds.
3. Approve the minutes of the January 13 and January 20, 2004 City Council meetings.
motion passed 9 -0.
2. Approve the purchase of one (1) 2004 Sterling pumper truck from Ferrara Fire Apparatus, Inc. in the amount of
$189,485.23 to be funded from budgeted funds.
The Huntsville Fire Department is seeking approval for the replacement of a 1973 Ward LaFrance pumpertruck
with a 2004 Sterling pumper fire truck. The 1973 Ward LaFrance will be kept as a reserve.
Pricing was obtained through the Houston - Galveston Area Council (H -GAC) contract ate total cost of $189,485.23
from Ferrara Fire Apparatus, Inc. Purchases utilizing the H -GAC contract meet all competitive bidding requirements
mandated by the State of Texas.
CITY COUNCIL MEETING OF MARCH 23, 2004 BOOK "T" 114
STATUTORY AGENDA
1. Consider and take action to approve Ordinance 2004 -03 -23.1, Authorizing the Issuance of City of Huntsville, Texas
Combination Tax and Revenue Certificates of Obligation, Series 2004; Levying an Ad Valorem Tax and Pledging Certain
Revenues in Support of the Certificates; Approving an Official Statement; Authorizing Execution of a Paying
Agent/Registrar Agreement and Bond Purchase Agreement; and Ordaining Other Matters Relating to the Issuance of the
Certificates.
Financial advisor Boyd London of First Southwest explained both statutory agenda items 1 and 2 at this time,
explaining the issuance of the bonds for the new fire station and the refunding bond series. He presented to Council a
brief overview of the sale of the bonds that had occurred the day prior, and the savings the City had realized with the
refunding bonds.
2.
3.
Consider and take action to approve Ordinance 2004 -03 -23.2, Authorizing the Issuance of City of Huntsville, Texas
General Obligation, Series 2004; Levying an Ad Valorem Tax; Approving an Official Statement; Authorizing Execution of
a Paying Agent/Registrar Agreement, Bond Purchase Agreement and an Escrow Agreement; and Ordaining Other
Matters Relating to the Issuance of the Bonds.
Consider and take action to approve Ordinance 2004 -03 -23.3, Amending Title 25 "Streets and Sidewalks;' to add a
section addressing the problem of Sediment, Mud and Erosion from Construction Sites, Site Clearing Operations and
Logging Operations Creating Nuisances and Hazards on Public Streets and Sidewalks; Renumbering of Sections as
Necessitated by the Adding of a New Section, and Providing a Penalty Clause.
4. Considerand take action to approve Ordinance 2004 -03 -23.4, amending Title 12 "Fire Prevention and Protection, "of the
Huntsville, Texas Municipal Code to Add Language to Provide for an Amendment to the International Fire Prevention
Code, 2000 Edition, Previously Adopted by Reference as the Fire Prevention Code of the City.
5.
Considerand take action to approve Ordinance 2004 -03 -23.5, amending Title 9'Buildings and Building Regulations;' of
the Huntsville, Texas Municipal Code to Add Language to Provide for an Amendment to the International Residential
Code, 2000 Edition, Previously Adopted by Reference as the Residential Code of the City,
6. Consider and take action to approve Resolution 2004 -03 -23.1, authorizing City Manager Kevin Evans to execute all
required documents, including a match commitment of up to $100,000 in cash and up to $25,000 of in -kind match along
with up to $250,000 in cash reserves (interim working capital) for an application to TDHCA for up to $500,000 in Owner-
Occupied Housing Assistance funding.
TDHCA makes HUD HOME Program funds available to non - entitlement jurisdictions throughout the State through
a competifive application process. The City of Huntsville was awarded funding from this program in 1998 and 2000,
providing 13 homeowners with new or substantially repaired housing. An application in 2003 fell short of the points
required for funding, primarily for lack of cash match. The desired match is 25% of the amount of grant funds requested.
This proposal will commit $100,000 in cash and $25,000 of in -kind match consisting of waived fees and absorbed
demolition costs.
Another option for the Council to consider is to apply for this grant on a smaller scale. Passing a resolution in
support of the grant process is required, but the Council is not required to applyfor the full grant of $500,000, as long as
the Cih/s match for the grant is equal to 20% of the total grant and the in -kind match is identified as well.
Please note that the commitment of matching funds is for FY 2004 — 2005 budget year.
COuncilmember Crawford moved tO approve Resolution 2004 -03 -231 authorizing City Manager Kevin Evans to
CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T' 115
Consider and take action to approve City participation in providing water service consistent with the City's CIP to a
proposed new facility in the eastern part of Huntsville.
Transit Mix has identified a potential new site for the existing Ready Mix operations. The site is located in the
eastern part of Huntsville near the intersection of US Highway 190 and Champion - Woodyard Road adjacent to the
existing Pavers Supply facility. Due to remoteness of the proposed site, significant infrastructure improvements will be
necessary to serve the site. Water and sewer service is not readily available.
For water service, there are two options available to extend water to the proposed site:
'. The first option is to connect to the existing 6 inch water line at the intersection of US Highway 190 and Champion
Road. This extension would require 1,720 linear feet of 6 inch line to be constructed to the site. This option is not
consistent with the City's water CIP for the area.
The second option is to connect to the existing 12 inch water line located at the intersection of Geneva Road and US
Highway 190. This would require replacing the existing 6 inch water line between the intersections of Geneva
Road/Highway 190 and Champion Road /Highway 190 and constructing a 12 inch water line along Champion Road
to the proposed site. The total length of 12 inch water line would be 2,195 linear feet. Also, a road bore would be
required across Highway 190. Extending a 12 inch waterline would be consistent with the City's water C /P.
Sewer service is not readily available to the site. Transit Mix would like to install anew aerobic system to serve the
site. This will require a variance that must be approved by the Planning and Zoning Commission. Therefore, extending
sewer service to the site has not been requested at this time. If an aerobic system is approved for installation, the
County will approve the system because the site is out of the City Limits.
Staff recommends installing a 12 inch water linethatwill be consistentwith the City's waterCIP forthearea. Also,
staff recommends the project be designed by the developers engineer and the construction of the water line be
administered by the City
8. Consider and take action to approve the creation of the Division of Community Development within the Department of
Planning and Development, and provide additional funding of $37,391 for FY 03 -04.
Currently funded grant contracts have maximized present staffing, making it nearly impossible to pursue additional
grants and maintain compliance responsibilities. Creation of this division will improve management of currentlyfunded
grant contracts and improved capacity to seek new planned and necessary grants and improve communication with
community based non - profit organizations and the ability to provide measures of accountability.
9. Consider and take action to approve the interlocal agreement between the city and county for the fiber network and
backbone systems to be funded through funds acquired from HGAC ($125,000.00), Walker County ($10,445.00), and
through budgeted funds of the COH Information Services Department ($14,555.00).
With security a growing concern, the fiber system is a means to achieve the fundamental component that will allow
our city and countyto develop and function is a waythat meets current technology with the available resources that our
city and county has to offer. Our mobile emergency employees' response time will be increased and the transfer of voice
and data will be faster and more secure. The entities that will initially be connected will be: Dispatch (911), Walker
County Sheriffs Office, Walker County Jail, Municipal Court, COH Service Center, Fire Station # 3, City Hall, Police
Department, EMS, Fire Station # 1, Library, Walker County Courthouse, Walker County Annex, and the new Walker
County Annex (Old Region VI building).
The need for a redundant system derived from the security concerns of HomeLand Security and the need forthe
city and county to work together with Dispatch and GIS applications such as city and county mapping and that rising
security issues and standards will have to be met and increased.
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10. Considerand take action to approve Ordinance 2004 -03 -23.6, creating a tag rule for the City Council. ICI
No motion was made on this item.
jl RECESS [8:41 — 8:53 p.m.]
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CITY COUNCIL MEETING OF MARCH 23 2004 BOOK "T 116
MAYOR/CITY MANAGER ACTIVITY REPORT
Discussion of the progress of current fiscal year budget, status of city's overdue independent audit and the overall
financial condition of the city, as presented by Mayor Karl Davidson.
City Manager Kevin Evans read a statement from Acting Finance Director Steve Ritter regarding Mayor Davidson's
concerns:
"The following is provided to address the questions and concerns which Mayor Davidson has in his letter /memo of
March 17, 2004 which you "copied" me on.
"Relating to the timeliness of the Budget document and the Audit I believe a review of events of the last 15
to 16 months will provide some explanation:
'The City has been without a permanent Finance Director for 10 '/2 months out of the last 15 '/2 months (since
December 2002) ; during 2 of the months (February and March) of the 10'/2 months the City had an "Interim Finance
Director'; the Interim was able to finish the FY 02 -03 Budget Document.
"Finance and Accounting went from a staff of 60+ years experience to 15 years experience; as such I was having to
take additional time to learn and teach different procedures and operations of the department.
"We went through a conversion of Accounting software systems which in itself is a major task to complete but in
addition to that we were the "Beta" on the new software ( Beta meaning we were a "test" user in helping the vendor finish
developing the software) which was done to save the City $300,000.
'The City is tied into the State on its Procurement Card. The State decided to change its Procurement Card from
one bank to another and we had to issue new cards and to learn howto use the new bank's system and teach this to the
other departments.
"Also, Mr. McCullars leaving just before the end of the fiscal year has impacted things greatly. Had he been able
to stay 2 additional months then I believe the Budget document would have been completed by the end of January. Had
he been able to stay 4 additional months then the audit would probably have been finished by the end of January.
"I do not take lightly the fad that we are past the 120 day Stale Law requirement for the Audit. We have been in
contact with all state agencies with which we have grant contracts. When I accepted the offer to be "Acting" Finance
Director I did not have any delusions that I would be able to do 2 jobs completely. My desire was to provide some
stability and keep morale up and ensure we did not stumble in meeting bond requirements and making bond payments,
and that we got vendors paid, employees paid, that divisions had budgets to work with and we were able to provide
employees, directors, the City Manager, City Council, Mayor and other requestors with financial information they needed.
"I did not envision that itwould be more than 6 months before a permanent Finance Directorwould be in place. (70
— 80 hour work weeks get old after about 3 months) I have learned from the experience which will benefit me in the
future and will also help me in assisting the new Finance Director.
"As to when the Budget Document and the Audit will be complete:
'We have been getting information into the Budget Document. I would imagine the new Finance Director would
"pick this up and run with if' as soon as he arrives. We have an extension with GFOA until April 16'" to submit the
document for the Distinguished Budget Presentation Award which is not a legal requirement but a "are we doing things
right" review by a professional peers entity.
"Completion of the audit should be sometime in April and the printed Comprehensive Annual Financial Report
hopefully will be finished by the end of April. Please see reasons provided above about time issues.
"Concerning the Budget Document and decision making by City Council:
'The Budget has been entered in the financial accounting software system (New World) and reports are available
for compadng Actual Expenditures and Revenues to Budgeted Expenditures and Revenues. My understanding was that
Council would review financial operations quarterly. 1" Quarter (October'03 thru December'03) reports were provided
to council and these same reports were provided to the Library for Citizen access.
"In response to the question of the overall financial condition of the city and does the city have adequate
funds to meet all of its obligations.
"In my opinion the City is still in good financial position and has had adequate funds to meet all of its financial
obligations for the last 15 Y2 months. Also, based on existing assets and the fad that revenues have met or exceeded
budgeted amounts for the first five and one half months of the current fiscal year I believe we will continue to have
adequate funds to meet our obligations.
"I will provide Balance Sheets and Income Statements from New World for General Fund, Debt Service Fund,
Water Fund, Wastewater Fund, Solid Waste Fund, Golf Fund, and Street Special Revenue Fund as of 3/22/04. The
Income Statements also provide Budget amounts and show Budget Balances and % of Budget Used. These Funds
account for about 91 % of the City's annual operations based on budgeted amounts for the'03204 Fiscal Year. I will also
prepare a shortened version of the "Investment Report" as of 3/22104 with copies of Cityof Huntsville account reports as
of 3/22/04 from websites of First National Bank, Texpool, and MBIA.
"Concerning the financial condition of the City's Raven Nest Golf Course, and how is the city funding the
operating losses:
"At your direction Glenn Isbell and I have been gathering information on the golf course relating to all construction
and also the operations. This information will be available for Council by next week so that at its April 6, 2004 meeting it
may take any action it desires at that time."
Mr. Evans also stated he would present a full report of the golf course's final construction and current financial
condition (as of February 12) at the work session scheduled for April 6.
Mr. Ken Davis, P.C., the City's auditor, stated the system this year has been very inefficient, but they have begun
the audit process. When the final numbers are in, he will have additional staff to assistin and speed up the process. He
stated the City's accounting department is extremely understaffed and has been for too long. He stated there would be a
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CITY COUNCIL MEETING OF MARCH 23 2004 BOOK T 117
jinumber of items in the management letter that normally do not apply to the City, the City has always been exemplary in !I
financial reporting." �
l Mr. Evans reiterated that there is a new Finance Director that will be coming on board in the next few weeks, and I�
it that the City is in good financial condition, even thought the budget document was not prepared timely. Councilmember I'
Willett affirmed this, stating the Finance Committee had been meeting regularly to cover the City's financial status.
2. Update on TIRZ status as presented by City Manager Kevin Evans.
Mr. Evans reported that he had hired the consultant firm of Schrader & Cline to review the proposed TIRZ. After
their initial reviewwith Bill Calderon, they have developed a tentative calendarfor the proposed TIRZ including all the
other entities. If everything goes well and as planned, this calendar outlines the fastest track to create the TIRZ. Mr.
Evans suggested that the history that he is aware of regarding this type of project has been positive, and the Council
will have the report by Schrader & Cline to help in making their decision whether or not to proceed.
WORK SESSION on CHARTER REVIEW COMMITTEE RECOMMENDATIONS [9:30 -10:00 p.m.]
1. Public comments.
No one presented for public comments.
2. The City Council will conduct a work session to discuss the Charter Review Committee recommendations.
3. Take action, if necessary, on any of the items listed in Bb. above.
The following items were presented and approved and/or disapproved for placement on the ballot regarding
amendments to the City Charter:
1. The charter amendment to update state statutory references contained in the charter. APPROVED
2. The charter amendment to change action of the Council from "shall" to "may" regarding the annexation of
uninhabited property when the owner of that property requests the annexation. APPROVED
3. The charter amendment to require one Councilmember elected at -Large to reside in Ward 1, another
Councilmember elected at -Large to reside in Ward 2, a third Councilmember elected at -Large to reside in
Ward 3, and a final Councilmember elected at -Large to reside in Ward 4. DECLINED
' 4. The charter amendment to change term limits for the Mayor from four consecutive regular terms to four
regular terms and Councilmembers from four consecutive regular terms to four regular terms. DECLINED
5. The charter amendment to set the compensation of Councilmembers at $25 for each regular meeting which
the member attends and the compensation of the Mayor at a monthly salary of $100. DECLINED
6. The Charter amendment to set the petition requirements for initiative, referendum, and recall at 20% of the
number voting in the last Presidential election in the City, but not less than 2,000. APPROVED (with change
of 1,500 to 2,000)
7. The charter amendment to require that the Judge of the Municipal Court be an attorneyat law. APPROVED
S. The charter amendment to require the Director of the Department of Finance to be appointed by the City
Manager. APPROVED
9. The charter amendment to require the Director of Finance to perform fiscal procedures specified in the City
Charter. APPROVED
10. The charter amendment to require the City to maintain an official website. DECLINED
11. The charter amendment to remove the veto power from the Mayor. ADDED
'.j EXECUTIVE SESSION [10:00 -10:07 p.m.]
The City Council will conduct a closed session under Texas Government Code, Chapter 551, Section 551.072 to
deliberate the purchase, exchange, lease or value of real property, namely acquisition of easements for sanitary sewer service.
RECONVENE
ADJOURNMENT [10:10 p.m.]
Danna Welter, City Secretary