MIN CC 04/18/2006CITY COUNCIL MEETING APRIL 18, 2006 BOOK "T" 302
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 18TH DAY OF APRIL 2006, IN THE CITY
i! HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:00 P.M.
The Council met in a regular session with the following members resent:
li 9 9 P
�j COUNCILMEMBERS: OFFICERS:
I' J. Turner Bob Tavenner Kevin Evans, City Manager
Mickey Evans Jim Willett Danna Welter, City Secretary
Judy Kayse Mac Woodward Thomas Leeper, City Attorney
Steed Smith Clarence W. Griffin
j Jack Choate
WORK SESSION [5:00 p.m. — 5:47 p.m.]
a. Comprehensive Plan.
CALL TO ORDER [6:00 p.m.]
Mayor Turner called the regular session to order.
PLEDGE OF ALLEGIANCE to US AND TEXAS FLAGS, INVOCATION
Parks and Recreation Director Ray Black led the invocation.
PRESENTATIONS
a. Jim Sims, Trinity River Authority, updated City Council on the progress of the Lake Livingston dam repairs. _
PUBLIC COMMENTS (Agenda Items Only)
1. Jack Wagamon. Mr. Wagamon spoke in opposition of the Comprehensive Plan.
2. Karl Davidson. Mr. Davidson spoke in opposition of the Comprehensive Plan, stating that the City had not followed ,
other comprehensive plans developed.
CONSENT AGENDA
a. Approve minutes of April 4, 2006. [ Danna Welter, City Secretary]
STATUTORY AGENDA
M /CC - c. Approve Professional Services Agreement for professional planning services related to the development of the
Huntsville Comprehensive Plan with Lane Kendig, Inc. in an amount of $153,120, to be funded from budgeted funds, as "
presented by Councilmember Evans.
In the FY 05 -06 Budget City Council approved $165,000 to develop a new Comprehensive Plan for the City of Huntsville.
In December of 2005 Statements of Qualifications were received for this project and reviewed by the Comprehensive Plan
Advisory Committee (CPAC) appointed by Mayor Turner. After interviewing the principals from the four submittals the
qualifications were evaluated and ranked by the advisory committee. Lane Kendig, Inc. was ranked highest and was
recommended as primary by the CPAC. Dunkin, Sefko & Associates, Inc. was ranked next highest and was recommended as
alternate if an agreement could not be reached with LKI.
The CPAC has negotiated a recommended contract with LKI that is attached for review and summarized below:
Plan Elements
Cost
Task 1 — Discovery & Reconnaissance
19,920
Task 2 — Community Visioning
15,880
Task 3 — Land Use & Character
19,040
Task 4 — Transportation
11,400
Task 5 — Growth Capacity
15,960
Task 6 — Parks & Recreation
10,800
Task 7 — Economic Development
37,500'
,
Task 8 — Implementation
15,080
Travel Expenses
1,398
Total Professional Costs
146,978
Direct Expenses Costs
6,142
Comprehensive Plan Cost:
$153,120
CITY COUNCIL MEETING APRIL 18, 2006 BOOK T" _ _ 303
Comprehensive Plan Budget: 165,000 'I
Contingency & Internal Costs: $11,880
Budget Transfer from Economic Dev. 7,500`
Total available for Contingency & Costs: $19,380
The CPAC with input from LKI determined that at this time additional efforts towards economic development task should
be accomplished. This cooperative effort will result in a complete Economic Development Plan (EDP) that is tied to
accomplishing the Comprehensive Plan within the original budget. To aid in making the EDP possible the Economic
Development Department has transferred $7,500' over to the CP budget.
The remaining $19,380 will be held for contingency ($16,500) and to cover costs associated with the public participation
process including items such as advertising, reproduction, supplies, and rentals.
Some key points considered and unanimously supported are provided below:
1. We have maintained the costs for professional services well within our budget of $165,000 while maintaining a
sound reserve of $19,380 which includes the $7,500 council recently transferred from uncommitted economic
development funds in the general fund to make the project reserve even more robust.
2. We unanimously chose to maximize the Economic Development Task by allocating $2,500 to address strategies for
leveraging TDCJ economic development in addition to doing so for SHSU. Doing both is essential to understanding
the economic development linkages and opportunities between the City of Huntsville and our two largest local
institutions.
3. Similarly, we unanimously chose to fund the $5,000 for an analysis of our local retail trade area and retail leakage to
other communities and their markets. Initially, we had asked the Chamber staff to participate in that effort but
decided that the task was important enough to our overall ED task effort that the City should fund it.
4. We also unanimously chose to fund only the basic Parks & Recreation Task rather than invest additional funding in
either an enhanced or full Parks Master Plan at this time. While the latter would give us 35 points to complete for
future Texas Parks and Wildlife Commission grants, our recent award of $500,000 for the aquatic center in all
probability moves us further down the line for any additional grants in the coming years. Moreover, the
commission's funding has been significantly cut. And, at our recent retreat we generally agreed that we could wait
until the first five -year update of The Huntsville Comprehensive Plan and then invest in a full -blown Parks Master
Plan at that time.
5. At this point we have not committed our reserve funding to anything. It simply gives us some cushion should
something unexpected arise as we all work through the process. It may be necessary to use some of it to support
mail -outs, postage, media advertisements and administrative support for any community meeting that may be
necessary beyond what we have already contracted for. I personally hope that any of the reserve remaining at the
end of this phase will be carried over the actual implementation phase for such activities as updating our
development codes, etc., that will probably be necessary in the coming fiscal year.
a. Approve Local Opportunity Plan for the City of Huntsville, as presented by Mark Leonard, Community Development
Manager.
Mr. Leonard stated that this item needed approval to be in compliance with grant requirements.
Councilmember Woodward made a motion to approve the Local Opportunity Plan for the City of Huntsville and
Councilmember Kayse seconded the motion.
After discussion, the motion was withdrawn.
Councilmember Kayse made a motion to table this item and Councilmember Willett seconded the motion.
After further discussion on the plan as related to grant requirements, this motion was withdrawn.
Councilmember Willett made a motion to approve the Local Opportunity Plan for the City of Huntsville, and
Councilmember Kayse seconded the motion. The motion passed unanimously.
b. Authorize the City Manager to enter into a maximum of twelve individual Construction Contracts with Davis Construction
Mgt. for the reconstruction of homes currently owned by the selected participants in the HOME grant program, as
presented by Mark Leonard.
On April 16, 2004, the City of Huntsville submitted an application to the Texas Department of Housing and Community
Affairs, requesting a HOME Program grant of $500,000 and pledging $100,000 in Cash Match and $25,000 of In -Kind Match.
The Contract was awarded to the City of Huntsville and executed in March of 2005.
Program Applicants were selected by a committee made up of citizens and City Staff.
CITY COUNCIL MEETING APRIL 18, 2006 BOOK "T"
304
On March 8, 2006, a Pre -Bid Conference was held at City Hall. Bidders were asked to bid on two floor plans, a two II
bedroom /one bath plan and a three bedroom /one bath plan. These plans and bids would be used in the assignment of
construction contracts for up to twelve homeowner / program applicants.
Bids were opened and read aloud at City Hall, 2:00 pm, Monday, March 20, 2006. The four bids were as follows: !'
Davis Construction Mgt. Three Bedroom Plan $53,385.00
Two Bedroom Plan $51,355.00
Iry Inc. Three Bedroom Plan $55,000.00
Two Bedroom Plan $54,859.00
Brooks Service Group Three Bedroom Plan $55,974.45
Two Bedroom Plan $52,813.40
Silver Line Construction Three Bedroom Plan $56,066.36
Two Bedroom Plan $55,000.00
FISCAL IMPACT or FUNDING SOURCE:
$500,000 TDHCA HOME Grant # 1000255
$100,000 City of Huntsville General Funds, and $25,000 of In -Kind Match, and $250,000 of Interim Working Capital, originally
committed by City Council March 23, 2004 and recommitted by City Council on October 19, 2004 upon notification of grant
award. Contract amounts will not exceed the bids provided by Davis Construction Mgt. on March 20, 2006.
Construction Contracts with Davis Construction Mat. for the reconstruction of homes currently owned by the selected
participants in the HOME grant program, and Councilmember Smith seconded the motion. The motion passed unanimously.
C. Approve Ordinance 2006 -04 -18.1 adopting a Water Conservation Plan and Drought Contingency Plan, as
presented by Bill Daugette, Public Services Operations Manager.
The approval of this Water Conservation and Drought Contingency Plan including the ordinance will keep the City in
compliance with Texas Commission on Environmental Quality (TCEQ) rules, Title 30, Texas Administrative Code (TAC)
Chapter 288. The amended Title 30, became effective on October 7, 2004, and required the city to update its current
plan. The next revision of the drought contingency plans for retail public water suppliers serving 3,300 or more
connections, wholesale public water suppliers, and irrigation districts must be submitted no later than May 1, 2009, and
every five years thereafter to coincide with the regional water planning group process. City staff presented a draft plan
prior to the 2005 deadline which was accepted for review by the TCEQ. The document presented for approval has been
reviewed and designated as acceptable by the TCEQ.
The City originally adopted the Drought Contingency Plan in September, 1999. The updated plan and ordinance must
be approved by council before it can be formally accepted by the TCEQ.
FISCAL IMPACT or FUNDING SOURCE:
No funds required.
Councilmember Kayse made a motion to Approve Ordinance 2006 -04 -18.1 adopting a Water Conservation Plan
and Drought Contingency Plan and Councilmember Choate seconded the motion. The motion cassed unanimously.
d. Authorize the Purchase of Pretreatment equipment in the amount of $9,860 from Account (702- 70204 -62300
Wastewater Economic Development) or (221- 1221 -91100 Wastewater Reserve for Future Allocation), to be
installed and maintained by Gardner Glass, as presented by Bill Daugette.
This item was pulled from the agenda.
e. Approve Resolution 2006 -04 -18.1 adopting the final FEMAapproved Houston Galveston Area Council of Governments
Regional Hazard Mitigation Plan, as presented by John Waldo, EMC.
This item was pulled from the agenda.
f. Reconvene Public Hearing on CenterPoint rate case continued from October 25, 2005, for the purpose of closing the
pending hearing.
Mayor Turner convened the public hearing continued from October 25, 2005.
Councilmember Woodward made a motion to close the public hearna on CenterPoint. and Councilmember Kayse
seconded the motion. The motion passed unanimous[
f. Approve Ordinance 2006 -04 -18.2 adopting a settlement agreement with CenterPoint Energy Entex related to its June
30, 2005, base rate and fees increase request, as presented by Thomas A. Leeper, City Attorney.
BACKGROUND
CenterPoint filed a Statement of Intent with the City on June 30, 2005. CenterPoint maintained that the City should grant
the increase as ordered by the Railroad Commission for the unincorporated areas. This was the first time a gas utility had
filed a rate increase request at the Railroad Commission for the unincorporated areas prior to filing such a request with the
municipalities in its service territory. The Railroad Commission order was issued without any interventions and without any
testimony being filed other than CenterPoint's testimony.
The City is part of a coalition of cities known as the Alliance of CenterPoint Municipalities ( "ACM "). The ACM Cities
maintained that CenterPoint failed to publish notice of its increase in rates as required by statute. The ACM Cities ordered
CenterPoint to publish notice of its increase in rates. CenterPoint failed to comply with these orders. CenterPoint filed an
updated rate filing package. CenterPoint refused to answer any discovery about the updated rate fling package even though
ordered to do so by the ACM Cities. On November 3, 2005, CenterPoint implemented its Statement of Intent to increase
rates. The ACM Cities ordered CenterPoint to cease and desist from charging the higher rates. The cease and desist
L
CITY COUNCIL MEETING APRIL 18, 2006 BOOK T"
305
ordinances were appealed by CenterPoint to the Railroad Commission. CenterPoint claimed that it had the right to impose
higher rates by operation of law— after the expiration of 125 days— if the ACM Cities had not taken final action on its rate
request. The ACM Cities asserted that CenterPoint could not implement higher rates —even by operation of law— without
first providing public notice. This position was supported by Senator Jeff Wentworth of San Antonio, who testified to that effect
in a public hearing before the Railroad Commission.
SETTLEMENT AGREEMENT
Just a few days before the start of hearings at the Railroad Commission the Settlement Agreement was hammered out.
Without a settlement it was likely that the losing party would appeal the Commission decision. It is quite likely that the appeal
would not be exhausted for at least three years. The outcome of an appeal could not be known with 100% certainty. In light of
this fact, the Settlement Agreement is being brought to the Council for its approval. The highlights of the Settlement
Agreement are set forth below.
Rate Reduction
The customer charge for residential customers is being reduced by $9.00 per year.
Protection Against Rate Increases
CenterPoint cannot raise base rates for any purpose over the next three years. This means CenterPoint cannot raise rates
due to any cost increases, including cost increases resulting from: (a) hurricanes orweather events; (b) inflation or escalation
in the cost of goods or services; (c) escalation in the cost of labor or benefits; and (d) the cost of the installation, relocation or
replacement of pipes.
File With the Cities First
After the expiration of the rate freeze, CenterPoint can only raise base rates if it first files with the ACM Cities. CenterPoint will
not be permitted to file at the Railroad Commission for a rate increase in the unincorporated areas before it files with the ACM
Cities.
Public Notice Must be Specific and Meaningful
CenterPoint will not be allowed to file a general rate case without publishing notice in a manner that is very similar to the
public notice requirements set forth by the ACM Cities in the "interim order" ordinance. The public notice will have to be
in a local newspaper. See Exhibit D. The notice will be conspicuous and give detailed information about the increase in
rates.
All Rate Case Expenses Will be Borne by Shareholders
The rate case related expenses of CenterPoint and the expenses of attorneys and consultants for the ACM Cities, up to
$230,000, will be borne by shareholders. This means that none of these costs will be borne by the ratepayers of CenterPoint.
Payment for Other Claims
CenterPoint has agreed to pay the ACM Cities the sum of $414,000 for "other claims." This sum will be distributed to the ACM
Cities to be used as directed by the individual city councils for the benefit of their citizens.
RECOMMENDATION
The public officials who actively participate with the ACM Cities conference calls recommend that the Settlement
Agreement be adopted. The coalition of cities has functioned with the broad participation from public officials of the ACM
Cities.
NOTE: Councilmember Kayse was out of the Chambers and did not
participate in the vote.
g. Approve the proposal with First Southwest for an actuarial review of the city's post - employment benefits and forthcoming
recommendations for benefit and funding alternatives, as presented by Winston Duke, Director of Finance.
This item was pulled from the agenda.
MAYOR / COUNCILMEMBER I CITY MANAGER REPORT
a. Consider funding request for YMCA Teen Center.
b. Approve expenditure of travel funds (registration, hotel, meals, and transportation) in an estimated amount of $1,400 for
Councilmember Evans to attend the American Planning Association 2006 National Planning Conference in San Antonio
from April 23 – 26, 2006, to be funded from budgeted funds.
Councilmember Evans noted that April W was Patriots Day.
Councilmember Kayse reminded Council of the Folk Festival on April 21 -23.
PUBLIC COMMENTS
1. Joseph Castilla. Mr. Castilla requested that a town meeting in ward 3 on the comprehensive plan be held at
Greater Zion Church on Highway 190; he commended Council on approving funds for the YMCA Teen Center; and
CITY COUNCIL MEETING APRIL 18, 2006 BOOK "T 306
requested that Council keep an open min on planning — especially the leakage study to help bring more business to
Huntsville.
MEDIA
Kelly Prew, The Huntsville Item asked that if staff knows ahead of time if items are to be pulled from the agenda to let the Item..
know since they run articles regarding the agenda items. She also asked about the CenterPoint reduction and when it would '.
be seen on customer, s bills. Mr. Leeper stated that it would probably be around June ($9.00 per year). Ms. Prew asked if LKI i'..
(following the conclusion of the plan) would be reviewing the comprehensive plan annually. It was noted that they do a follow
up after one year to see if implementation is taking place. Further review would have to be contracted.
ADJOURNMENT [.8:113 p.m.]
`�/
Dianna Welter, City Secretary
n
U