City Council Meetings

557 MINUTES n REGULAR MEETING MINERAL WELLS CITY COUNCIL CITY HALL ANNEX June 6, 2017 - 6:00 pm City Councilmembers present were Mayor Mike Allen, Councilmembers Brian Shoemaker, Regan Johnson, John Upham, Jerrel Tomlin, John Upham, and Doyle Light. Mayor Pro-Tern Tammy Underwood was absent. A quorum of City Councilmembers was present. Staff members present were City Manager Lance Howerton, Police Chief Dean Sullivan, Finance Director John Moran, Public Works Director Kelly Jones, Fire Chief Mike Pool, City Clerk Juanita Formby, and City Attorney Mack Reinwand . Mayor Allen called the meeting to order, Rose Jordan of Pulse Ministries gave the invocation, and the Pledges of Allegiance to the U.S. and Texas were recited . CITIZEN COMMENT 1. Mr. David Kessler of 13 Clif Drive had asked to be placed on the agenda to speak. He said he owned some ten (10) acres of property adjacent to Lake Mineral Wells State Park in the City. He said he erroneously thought that half of it was outside the City, and he built a firing range on it. He and two other people have been firing small caliber firearms at the range. He said he has been extensively trained on the use of firearms and he is personally a stickler for gun safety. He recently discovered that it was in fact inside the City. Section 66-2 of the Code of Ordinances provides that discharging firearms inside the City can be done only with written consent of the City Council, and that is what Mr. Kessler seeks at this time. He said they are shooting away from City property. During the discussion, the Public Works Director asked that perhaps a flag or cone could be place whenever they are shooting, as the Public Works Department has facilities near there. Following some brief discussion, the City Council directed staff to place the matter on a future agenda for action. Following a motion made by Mr. Upham, seconded by Miss Johnson, the following CONSENT AGENDA was approved by a 6-0 vote: Mineral Wells City Council Minutes 06/06/2017 Page 1 of4 558 2. Consider minutes of previous meetings held May 16, 2017. 3. Consider approval of budgeted expenditures over $500. 4. Consider approval of Financial Reports for the month ended February 2017. 5. Consider authorizing Crawford Roofing's Application for Payment in the amount of $185,977.10. 6. Consider approval of payment to Schrickel, Rollins, and Associates in amount of $6,000 for professional services received in association with the 16" Water Line Extension - MH 379 project. ITEMS FOR INDIVIDUAL CONSIDERATION 7. Mr. Howerton introduced representatives of Texas Gas Service Company. He said that the City was given notice in March that Texas Gas Service would request an increase in rates. Because there are new faces on the City Council, Mr. Howerton had asked these reps to make a presentation and explain how the rating process works. Ms. Nicole Simmons of Texas Gas Service made the presentation, after which questions from the Council were taken. Staff said that other area cities were expected to approve a negotiated rate. The other option available to the City Council would be to do nothing, and the new rate will become effective. The Council instructed staff to prepare an ordinance and place an item on the next agenda to consider approval of the negotiated rate. No further action was taken. 8. Mr. Howerton presented a proposed lease between the City of Mineral Wells and QAR Industries, Inc. (Antenna Products) for the lease of space at the east end of the Downing hangar, formerly occupied by Cool City Electronics, Inc. The proposed lease contemplates an initial term extending from July 1, 2017 to June 30, 2024 with three renewal options of five years each. Mr. Howerton said that the first eight months of rent will be forgiven to reflect the cost of Antenna Products occupying and renovating the space for their use. Beginning March 1, 2018 rent will be paid at a rate of $3,000 per month for a two year period. Mineral Wells City Council Minutes 06/06/2017 Page 2 of4  559 Beginning March 2020, the monthly rental will increase to ~I $3,500 a month for a two year period with rent escalating II to $4,500 per month thereafter. The rents will also be adjusted during the option periods based upon increases in the Dallas/Fort Worth Consumer Price Index. Antenna Products with cover the cost of any taxes and its portion of the property and casualty insurance on the Downing hangar which it occupies, and will also be required to maintain the premises with the exception of the HVAC, for which there is a shared maintenance responsibility with the City through the initial term of the lease. Following the discussion, Mr. Upham moved and Mr. Light seconded to adopt a resolution authorizing execution of the subject lease. Motion carried 6-0. 9. Mr. Howerton advised that Newcastle, Inc. has been a sublease tenant for Cool City Electronics and occupied space on the west end of the Downing Hangar that had been initially leased to Cool City. The City now hopes to enter into a separate lease with Newcastle Manufacturing. The proposed lease contemplates a one year term beginning June 1, 2017 and ending May 31, 2018, with a one year option. Newcastle Manufacturing will pay rent in the amount of $750 during the initial term and any option period thereafter. Newcastle is required to pay for all utilities and taxes with the City paying for the overall property and casualty insurance for the Downing hangar building. Newcastle is a start-up business engaged in the manufacture of sophisticated machine parts. Mr. Shoemaker moved to adopt a resolution authorizing execution of the subject lease, Miss Johnson seconded, and the motion carried 6-0. 10. Mr. Howerton advised the City Council that staff routinely pr~sents the proposed annual budget at the end of July each year, which affords the City Council an opportunity to review the new budget and suggest changes prior to its adoption in late September each year. Typically, the meeting in July at which time the new budget is presented is the Council's first look at it. Mr. Howerton said he had been asked by Councilmembers to give the City Council an overview of the new budget in advance of that; and that is the purpose of this item. Mr. Howerton gave a presentation on each of the City's four funds (General, Water/Sewer, Airport, and Drainage L Utility). Following his presentation, Mr. Howerton suggested that, if the City Council wished, the Mayor, could appoint a City Council subcommittee to work with Mineral Wells City Council Minutes 06/06/2017 Page 3 of4 560 staff on crafting of the new budget for 2017-2018. No action was taken at this time. 11. Mr. Moran reminded the City Council that a severe hail storm in May 2013 damaged a number of City facilities, and there has been an on-going project for the past several months to make these repairs, using insurance proceeds. Among the damages incurred, the gymnasium floor sustained damages due to water leaks resulting from the hail damage. Because of the costs associated with these repairs, a competitive bidding process was used. Bids were advertised and a sole bid was received, from Oak Line Floors in the amount of $194,775. The Texas Municipal League Intergovernmental Risk Pool is in the process of evaluating this bid and the City is awaiting their final authorization to proceed. Because there are certain time constraints whereby the work must be scheduled around activities at the gym, staff is recommending that the City Council award the bid as submitted, contingent upon TMLIRP's approval. Mr. Upham so moved, Mr. Shoemaker seconded, and the motion carried 6-0. 12. There was no further business, and the meeting was adjourned at approximately 7:13 pm. ATTEST: Mi~~/ I Mineral Wells City Council Minutes 06/06/2017 Page 4 of4