City Council Meetings

646 MINUTES REGULAR MEETING MINERAL WELLS CITY COUNCIL CITY HALL ANNEX November 7, 2017 - 6:00 pm City Councilmembers present were Mayor Pro-Tern Tammy Underwood, Councilmembers Brian Shoemaker, Regan Johnson, Jerrel Tomlin, John Upham, and Doyle Light. Mayor Mike Allen was absent. A quorum of City Councilmembers was present. Staff members present were City Manager Lance Howerton, Police Chief Dean Sullivan, Public Works Director Kelly Jones, Fire Chief Mike Pool, City Clerk Juanita Formby, Finance Director John Moran, and City Attorney Mack Reinwand. Mayor Pro-Tern Tammy Underwood called the meeting to order, Pastor Doug McClure of Indian Creek Baptist Church of Mineral Wells gave the invocation, and the Pledges of Allegiance to the U.S. and Texas were recited. CITIZEN COMMENT Mayor Pro-Tern Underwood recognized Mr. Terri Blevins of 2807 N. Murco in Mineral Wells who had signed to speak. Mr. Blevins reported that the flags at the North Oak median had become tattered and had to be replaced. He said Mr. James Taylor had provided the new flags. He also said that the bonds for City improvements that are on the ballot for the election held today are going to fail, so now the City Council has a second chance to go back to the drawing board and propose other bond projects that would better benefit the community. 1. Mayor Pro-Tern Underwood recognized Ms. Kathryn McLaughlin (Auxiliary President), Mr. Mike Brooks (Post Commander), and Ms. Debbie Patterson (Auxiliary Secretary) of the Farris Anderson American Legion Auxiliary Unit #75. These officers of the American Legion post presented poppies to the City Council and others present in honor of Veterans Day, and invited everyone to attend the Veterans Day ceremonies to be held at the Mineral Wells High School football stadium on Veterans Day. Following a motion made by Mr. Upham, seconded by Mr. Light, the following CONSENT AGENDA, with revised/corrected minutes, was approved by a vote of 4-0-2, with Mayor Pro-Tern Underwood and Councilmember Brian Shoemaker abstaining. Mrs. Underwood and Mineral Wells City Council Minutes 11/07/2017 Page 1of5  647 Mr. Shoemaker abstained from this vote by reason of having relatives on the Palo Pinto County Appraisal District Board of Directors ballot, which is the subject of Item No. 4 on this Consent Agenda. 2. Consider revised/corrected minutes of previous meeting held October 17, 2017. 3. Consider approval of budgeted expenditures over $500. 4. Cons~der resolution casting ballot for Palo Pinto County Appraisal District Board of Directors candidates. 5. Consider approval of Pay Application No. 2 to Fambro Construction LLC in the amount of $63,315.00 for the 16" Water Line Extension - MH 379 Bores Only Project. 6. Consider resolution ratifying execution of lease between the City of Mineral Wells and Lonny Ludwig for office space at the Mineral Wells Municipal Airport. 7. Consider a resolution approving a donation of $5,000 from the Carl E. Kessler Family Foundation for the restoration of static airplane display at the Mineral Wells Municipal Airport. ITEMS FOR INDIVIDUAL CONSIDERATION 8. Mr. Howerton presented a list of derelict structures in Mineral Wells that had recently been condemned by the Building and Standards Commission. Staff is recommending that the City Council authorize staff to advertise and receive bids for the demolition of the subject structures. The bid opening date would be November 21, 2017, with a possible award to be made at the City Council meeting to be held on December 5, 2017. Mr. Upham moved and Mr. Shoemaker seconded to authorize staff to advertise and receive bids for the demolition and removal of condemned structures, and the motion carried 6-0. 9. Mrs. Formby addressed the Council, saying that the polls would be closing on the City's bond election in less than an hour, and the next step would be to canvass the election returns. The canvassing period for this election is November 15th through November 20th, 2017, and no regular City Council meeting falls during that time, so the Council will need to set a time and date to perform the canvass. Mineral Wells City Council Minutes 11/07/2017 Page 2 of 5 648 Mrs. Formby said there is also an ordinance formalizing the canvass, so at least four City Councilmembers would need to . I be present at any special meeting which is set. By unanimous consent, the City Council asked that the special meeting for the purpose of canvassing the election be set for 2:00 pm on Friday, November 17, 2017 in the usual location. 10. Mrs. Formby advised the City Council that earlier this year, there was an effort to cause a local option election to be held in the City of Mineral Wells, for the purpose of legalizing the sale of all alcoholic beverages including mixed beverages. Mrs. Formby said that Adrian Salazar, the owner/operator of a local Mexican restaurant, had begun the process, properly applying for petitions from the City Clerk to circulate for signatures. Petition forms were prepared and given to Mr. Salazar on August 17, 2017, and he had 60 days to circulate them to collect signatures. According to law, Mr. Salazar must have collected 875 valid signatures, or 35% of the number of Mineral Wells voters who voted in the most recent gubernatorial election. Mr. Salazar returned his petitions prior to the deadline, and had a total of only 577 signatures. These signatures were compared to the current voter registration list, and it was found that only 350 of them were valid. Therefore, the effort to cause a local option election to be held failed; however, the law provides that the petition be presented to the governing body, and the minutes must reflect the date the petition is presented, the names of the signers, and the action taken by the governing body. Following the presentation, Ms. Johnson moved and Mr. Upham seconded that the minutes show that the petition was presented to the City Council on November 7, 2017, the names of the signers were not read but referenced, and the City Council acknowledges that the petition lacked the required number of valid signatures to cause a local option election to be held. Motion carried 6-0. 11. Mr. Jones said a proposed waterline project at 100 Travis Drive and U.S. Highway 180 West (Pecan Valley MHMR) requires a tap into an 8" waterline in the south right of way of the Highway, further requiring a bore under the highway. A minimum 8" waterline is required by the City's Subdivision Design Standards to serve the proposed development. In order to better serve future development in this area, the City has asked the developer to upgrade from the minimum 8" waterline to a 12", and the City will pay Mineral Wells City Council Minutes 11/07/2017 Page 3 of 5  649 the difference in cost, along with necessary values and fittings. The developer presented a cost for 100 feet of 12" waterline and the bore/case under the highway, in the amount of $59,464.93; the City's share of which will be $10,878.03. Payment will not be made until the work is approved by the City, and any unforeseen changes will require a Change Order to be approved before work can continue. Mr. Jones presented a Letter Agreement with Mr. Coke Beatty of Pecan Valley MHMR for the upgrade as described. Mr. Upham moved to authorize Mr. Jones to sign the letter agreement, Mr. Light seconded, and the motion carried 6-0. 12. Mr. Jones reminded the City Council that they had previously be advised of a fine levied against the City by the Texas Commission on Environmental Quality (TCEQ) associated with a deficiency in the City's fueling facility. To defray the cost of the penalty, the City has an opportunity to participate in a Supplemental Environmental Project (SEP), and the City has applied to participate in a tire collection event and cleanup of abandoned tire sites through the Texas Association of Resource Conservation and Development Area, Inc. The TCEQ sent a Revised Proposed Agreed Order, and if that is approved by the TCEQ, the City will be advised how to proceed. Mr. Shoemaker moved to approved the TCEQ Revised Proposed Agreed Order through a Supplemental Environmental Project, Mr. Light seconded, and the motion carried 6-0. 13. Mr. Moran reminded the Council that in September 2017 they passed a new ordinance revising water and sewer rates. After passage, a transcription error was discovered in the wastewater portion of the rate structure contained in the ordinance, which needs correction in order to reflect the intended 3% rate increase. Mr. Moran said that no customers had been overcharged. He then presented a new ordinance which contained the correct pricing. Mr. Upham moved and Ms·. Johnson seconded to pass and approve an ordinance amending Article II of Chapter 90, Utilities Section, of the Min~ral Wells code of Ordinances by revising sewer rates and providing for an effective date. Motion carried 6-0. 14. Mr. Moran said that future financial obligations of the pending Turkey Peak Reservoir project and other capital projects make this is an opportune time to undergo a professional utility Mineral Wells City Council Minutes 11/07/2017 Page 4 of 5 650 rate study, also known as a cost of service study, by a qualified firm. Mr. Moran gave several reasons why a Cost of Service Study is desirable and needed. It would be an essential financial planning tool which would help the City to ensure its rates are sufficient to meet its financial needs and maintain compliance with key financial indicators. Preparing a rate study provides a plan for the financial management of the utility reflective of future operational and capital needs. Additionally, the conduct of a ra_t.e study is crucial prior to the issuance of debt to provide assurance to potential bond-holders that the City can meet its obligations, and may assist the City in obtaining a better overall credit rating. Cost of Service Studies also provide an independent, third-party review of rates and results in recommendations which incorporate industry-standard practices and are reflective of applicable regulatory statutes. Hiring an independent consultant to perform a rate study ensures that the City receives a recommendation from individuals who are experts in the field. These i~dividuals have the experience and knowledge to provide a quality product that is accurate and equitable. Mr. Moran said that the City has not had a professional, formal cost of service study performed in a number of years; and has funds in the current fiscal budget for the estimated cost of the study. Staff anticipates bringing a recommendation to the City Council for the selection of a Cost of Service Study provider at the January 2, 2018 meeting. Mr. Upham moved and Ms. Johnson seconded to approve the issuance of a Request for Proposals for a Utility Cost of Service Study, and the motion carried 6-0. 15. There was no further business, and the meeting was adjourned at 6:33 pm. Mike Allen, ATTEST: Mineral Wells City Council Minutes 11/07/2017 Page S of 5