Minutes 

CITY COUNCIL MEETING

NOVEMBER 17, 1998

7:00 P.M.

A Regular City Council Meeting was held on November 17, 1998 at 7:00 P.M. in the Council Chambers at 201 East Nash Street with the following members present:

COUNCILMEMBER #1 HENRY MADGWICK
COUNCILMEMBER #2 TOMMY SPENCER
COUNCILMEMBER #3 FRANCES ANDERSON
COUNCILMEMBER #4 LEE SCHAEFFER
COUNCILMEMBER #5 JAMES HUFFMAN

1. CALL TO ORDER.

Mayor Henry Madgwick called the meeting to order..

2. INVOCATION.

Councilmember James Huffman gave the opening prayer.

3. CONSIDER APPROVAL OF CITY COUNCIL REGULAR MEETING MINUTES OF NOVEMBER 3, 1998.

Councilmember Lee Schaeffer made a motion to approve the City Council Regular Meeting Minutes of November 3, 1998. The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes -none. Motion carried.

PUBLIC HEARING

4. CONDUCT A PUBLIC HEARING FOR A REQUEST FOR A ZONE CHANGE ON PROPERTY LOCATED AT 907 EAST BRIN, LOT 2B, BLOCK 147, MOORE-NASH ADDITION, FROM THE CURRENT ZONING SINGLE-FAMILY RESIDENTIAL (1F-2) TO TWO-FAMILY (2F).

No one spoke for or against the zone change. Councilmember Tommy Spencer made a motion to close the public hearing. The motion was seconded by Councilmember James Huffman. Ayes - all; Nayes -none. Motion carried.

NEW BUSINESS

5. CONSIDER APPROVAL OF ORDINANCE NO. 1949 - ZONE CHANGE FROM SINGLE FAMILY RESIDENTIAL (1F-2) TO TWO-FAMILY (2F) FOR PROPERTY DESCRIBED AS LOT 2B, BLOCK 147, MOORE-NASH ADDITION, (907 E. BRIN).

Councilmember Lee Schaeffer discussed spot zoning and his opposition to it. Councilmember James Huffman discussed spot zoning and his opposition to it. Councilmember Lee Schaeffer made a motion to reject Ordinance No. 1949 - Zone Change from Single Family Residential (1F-2) to Two-Family (2F) for property described as Lot 2B, Block 147, Moore-Nash Addition, (907 E. Brin). The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes -none. Motion carried.

6. CONSIDER APPROVAL OF ORDINANCE NO. 1950 - VACATE ALLEY IN BLOCK 3 OF TERRELL TERRACE ADDITION.

Councilmember Frances Anderson made a motion to approve Ordinance No. 1950 - Vacate Alley in Block 3 of Terrell Terrace Addition on first reading. The motion was seconded by Councilmember Lee Schaeffer. Ayes - all; Nayes -none. Motion carried.

ORDINANCE NO. 1950

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TERRELL, TEXAS, VACATING AND ABANDONING AN ALLEY RIGHT-OF-WAY IN BLOCK 2, TERRELL TERRACE ADDITION.

7. CONSIDER BID AND AWARD OF CONTRACT FOR THE FOLLOWING:

a) Athletic Field Maintenance Equipment

1. Three Wheel Infield Tractor with Attachments

Councilmember James Huffman made a motion to approve bid and award contract for three wheel infield tractor with attachments to low bidder Goldthwaites of Texas in the amount of $7,195.00. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes -n one. Motion carried.

2. Four Wheel tractor with attachment

Councilmember Frances Anderson made a motion to approve bid and award of contract for four wheel tractor with attachment to low bidder TOK Enterprises in the amount of $6,395.00. The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes -none. Motion carried.

b) Plant Chemical Products

Councilmember Lee Schaeffer made a motion to approve bid and award contract for Plant Chemical Products to low bidder Cytec Industries, Inc. in the amount of $57,980.00. The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes - none. Motion carried.

c) Ben Gill Park Entryway

Councilmember James Huffman made a motion to table this item to be placed on special meeting agenda on December 15, 1998. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes - none. Motion carried.

8. CONSIDER APPROVAL OF PLANNING AND ZONING RECOMMENDATION TO APPROVE PRINCETON ESTATES PRELIMINARY PLAT WITH STIPULATED VARIANCES.

Councilmember Lee Schaeffer made a motion to approve the Planning and Zoning recommendation to approve Princeton Estates preliminary plat with stipulated variances. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes - none. Motion carried.

9. CONSIDER APPROVAL OF PLANNING AND ZONING RECOMMENDATION TO APPROVE PLAT FOR RECORD OF LOTS 1 (W.G. BARKER SUBDIVISION) & 2A, BLOCK 429, REVISED MAP.

Councilmember James Huffman made a motion to approve Planning and Zoning recommendation to approve plat for record of Lots 1 (W.G. Barker Subdivision) & 2A, Block 429, Revised Map. The motion was seconded by Councilmember Lee Schaeffer. Ayes - all; Nayes -none. Motion carried.

10. CONSIDER APPROVAL OF PLANNING AND ZONING RECOMMENDATION TO APPROVE PLAT OF LOTS 5,6, & 7, BLOCK A, METROCREST ADDITION.

Councilmember Lee Schaeffer made a motion to approve Planning and Zoning Recommendation to approve Plat of Lots 5,6, & 7, Block A, Metrocrest Addition. The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes -none. Motion carried.

11. CONSIDER RESALE PROPERTIES DESCRIBED AS KENNEDY HEIGHTS, BLOCK D, LOT 36, TERRELL REVISED, BLOCK 303, LOT 5, AND NELSON, BLOCK 9, LOT 3B.

Councilmember Tommy Spencer made a motion to approve resale properties described as Kennedy Heights, Block D, Lot 36, Terrell Revised, Block 303, Lot 5, and Nelson, Block 9, Lot 3B. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes - none. Motion carried.

12. CONSIDER ADOPTION OF RESOLUTION NO. 330 - ESTABLISHING A POLICY GOVERNING THE INVESTMENT OF CITY FUNDS.

Councilmember James Huffman made a motion to adopt Resolution No. 330 - Establishing a Policy Governing the Investment of City Funds. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes -none. Motion carried.

RESOLUTION NO. 330

A RESOLUTION OF THE CITY OF TERRELL, TERRELL, TEXAS, ESTABLISHING A POLICY GOVERNING THE INVESTMENT OF CITY FUNDS

WHEREAS, the Public Funds Investment Act (Chapter 2256 of the Texas Government Code) requires that investments shall be made in accordance with written policies approved by the governing body; and

WHEREAS, investment policies must address diversification, safety of principal, yield,
maturity, with primary emphasis on safety and liquidity; and

WHEREAS, the City of Terrell City Council finds that the Investment Policy attached hereto is in the best interests of the City in order to promote sound management of the City's funds.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TERRELL, TEXAS:

Section 1. The Terrell City Council hereby adopts Exhibit "A" attached hereto as the Terrell Investment Policy which shall govern the investment of the City's funds in accordance with federal and state law.

Section 2. That this resolution shall take effect immediately from and after its passage.

PASSED, ADOPTED AND APPROVED by the City Council of the City Terrell this the 17th day of November,1998.

EXHIBIT "A"

CITY OF TERRELL
INVESTMENT POLICY

I. PURPOSE

A. Authorization

This Policy was adopted by the Terrell City Council on November 17,1998,
in accordance with the Texas Public Funds Investment Act.

B. Scope

This Policy shall govern the investment of all funds of the City of Terrell, Texas
excluding the specific funds cited hereafter. For purposes of this Policy, funds of
the City are all monies and other financial resources available for investment by the
City. All such monies shall be invested at all times to the fullest extent practicable
in accordance with the objectives and restrictions set forth in this Policy.

C. Review

This Policy shall be reviewed by the City Council annually and at other times, as
needed, in the discretion of the Council.

II. OBJECTIVES

Objectives of this Investment Policy shall be in order of priority: safety, liquidity, and yield.

A. Safety

Safety shall be the foremost objective of the City's Investment Policy. Safety shall be achieved through protection of principal and safekeeping.

1. Protection of Principal

The City shall seek to control the risk of loss due to the failure of a security issuer or guarantor. Such risk shall be controlled by investing only in the safest types of securities as defined in this Policy, by qualifying the financial institutions with whom the City will transact, and portfolio diversification.

All City investment transactions shall be executed delivery versus payment (DVP) according to the standard operating procedure for the industry. DVP means that City funds will not be released until securities are received and vice versa.

2. Safekeeping

All collateral must be held by a banking institution separate from the depository bank, or by the Federal Reserve Bank of Dallas. All funds in demand deposits, overnight deposits, time deposits or certificates of deposit must be fully collateralized in accordance with State law.

B. Liquidity

Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets.

A security may be liquidated to meet unanticipated cash requirements, to redeploy cash into other investments expected to outperform current holdings, or to otherwise adjust the City's portfolio.

C. Yield

Investments (excluding assets managed under separate investments programs and bond funds limited as to yield by the Tax Reform Act of 1986) shall be made in permitted obligations at yields equal to or greater than the equivalent yield on United States Treasury obligations of comparable maturity.

No investment shall be made with a maturity greater than five years, unless previously authorized by the City Council and approved by the Investment Committee.

III. INVESTMENTS

The City of Terrell finds that it is reasonable and appropriate that each fund maintained by the City shall be subject to the investment strategies as follows:

A. Investments shall only be made with those dealers or banks:

1. who have acknowledged receipt and understanding of the City's Investment Policy; and
2. who have met the qualifications and standards established by the City.

Competitive bids will be solicited on all transactions the City initiates.

B. Investments described below are those listed in the Public Funds Investment Act (Chapter 2256 of the Texas Government Code)

1. Collateralized time deposits and certificates of deposit.

a) Only national or state banks with FDIC membership, domiciled
within the State of Texas, are eligible.

Banks serving as City depositories will be required to sign a
depository agreement with the City as its safekeeping agent defining the City's rights to the collateral in case of default, bankruptcy, or closing.

b) Obligations of the United States or its agencies and instrumentalities.

c) Direct obligations of the State of Texas or its agencies.

d) Other obligations, the principal of and interest on which, are
unconditionally guaranteed or insured by the State of Texas or the
United States.

e) Obligations of states, agencies, counties, cities, and other political
subdivisions of any state having been rated as to investment quality
by a nationally recognized investment rating firm and having
received a rating of not less than "A" or its equivalent.

f) Fully collateralized direct repurchase agreements having a defined
termination date which:

i) must be placed through a primary government securities
dealer, as defined by the Federal Reserve, or a bank
domiciled in this State;

ii) the collateral must be pledged with a third party approved by the City; and

iii) the dealer or bank must have executed a City Attorney
approved Master Repurchase Agreement with the City.

g) Common trust funds of banks domiciled in Texas may be used for
bond proceeds including sale of bonds and reserves and funds
maintained for debt service purposes.

IV. INVESTMENT STRATEGY

Investment Committee

An investment committee shall be established consisting of the City Manager and City Secretary. The Investment Committee shall determine generalstrategies and monitor performance. All investment procedures must be approved by the
Investment Committee.

V. RESPONSIBLILITY AND CONTROLS

A. Authorized Official

The City Manager shall direct the cash management program of the City with authority to make investment and redemption decisions.

B. Controls

The City Secretary/Internal Audit shall establish a system of internal controls which shall be reviewed by the City Auditor.

C. Standard of Care

Investments shall be made with judgement and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

VI. REPORTS

A. The City Council shall receive a quarterly report of investment performance.

B. The Investment Committee shall receive quarterly reports, which shall include all securities held, average maturities, portfolio diversification, yields, income and all transactions executed that month. This report shall include an assessment of investment performance.

VII. AMENDMENTS

The City Council may amend this Investment Policy at a regular or duly called City Council meeting.

13. CONSIDER APPROVAL OF TERRELL ECONOMIC DEVELOPMENT CORPORATION RECOMMENDATION FOR THE SALE OF LAND TO GENERAL SERVICES COMMISSION REGARDING DEPARTMENT OF PUBLIC SAFETY FACILITY.

Councilmember Frances Anderson made a motion to approve Terrell Economic Development Corporation recommendation for the sale of land to General Services Commission regarding Department of Public Safety Facility. The motion was seconded by Councilmember Tommy Spencer. Ayes - all; Nayes -none. Motion carried.

14. DISCUSS AND CONSIDER FILING APPLICATION FOR IMPROVEMENTS TO SOLID WASTE CONVENIENCE STATION

Councilmember James Huffman made a motion to approve filing application for improvements to solid waste convenience station. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes -none. Motion carried.

15. CONSIDER AIRPORT BOARD APPOINTMENTS

Councilmember Lee Schaeffer wanted to know what Mr. Jordan's qualifications were. Councilmember Frances Anderson made a motion to table this item to the December 1, 1998 City Council meeting. The motion was seconded by Councilmember Lee Schaeffer. Ayes - all; Nayes - none. Motion carried.

16. CONSIDER SUBMISSION OF NAMES FOR APPOINTMENTS TO THE KAUFMAN COUNTY APPRAISAL REVIEW BOARD.

Mayor Henry Madgwick wanted a letter of thanks sent to Gilbert Willie for his services. Councilmember Tommy Spencer nominated Russell Jones. Councilmember Lee Schaeffer nominated Michael Gresham. Councilmember Tommy Spencer made a motion to nominate Russell Jones and Michael Gresham to the Kaufman County Appraisal Review Board. The motion was seconded by Councilmember Lee Schaeffer. Ayes - all; Nayes - none. Motion carried.

17. DISCUSS AND CONSIDER BEGINNING THE PROCESS TO ISSUE CERTIFICATES OF OBLIGATION FOR WATER, WASTEWATER, DRAINAGE, AND STREET IMPROVEMENTS.

After much discussion, this item was passed to the December 1, 1998 City Council Meeting for Public Hearing and a presentation by the Financial Advisor David Medanich.

18. HEAR REMARKS FROM VISITORS.

Ken Leanord, Commission Elect, introduced himself to the Council and discussed his goals.
Thomas Brown came before Council to complain about minority and local contractors and getting preferred consideration. Mayor Henry Madgwick agreed to look into the matter.
Reverend John P. Brown came before the Council in support of Mr. Brown's complaint and to thank the Council for allowing his church to use the building at Breezy Hill Park.

19. CONSIDER ADOPTION OF ORDINANCE #1948 - AMENDING ORDINANCE #1930, MAKING POLK STREET ONE-WAY ON SUNDAY FROM 8:00 A.M. UNTIL 12:00 P.M. DURING THE MONTHS OF JUNE THROUGH SEPTEMBER.

Councilmember Lee Schaeffer made a motion to approve Ordinance #1948 - Amending Ordinance #1930, making Polk Street One-way on Sunday from 8:00 A.M. until 12:00 A.M. during the months of June through September on second reading. The motion was seconded by Councilmember Frances Anderson. Ayes - all; Nayes - none. Motion carried.

ORDINANCE NO. 1948

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TERRELL TEXAS, RESCINDING ORDINANCE NO. 1930 IN ITS ENTIRETY; ADOPTING ORDINANCE NO. 1948 DESIGNATING POLK STREET FOR ONE-WAY WEST TO EAST TRAFFIC ON SUNDAYS FROM 8:00 A.M. UNTIL 12:00 A.M. DURING SPECIFIED MONTHS; AUTHORIZING POSTING OF APPROPRIATE SIGNAGE GIVING NOTICE TO THE PUBLIC OF SUCH ONE-WAY TRAFFIC; POSTING NO PARKING SIGNS ALONG PORTIONS OF DANIELS STREET, NEW HOPE STREET AND POLK STREET; POSTING YIELD SIGN ON POLK STREET AT DANIELS STREET; ESTABLISHING AN EFFECTIVE DATE.

WHEREAS, the City Council of the City of Terrell, Texas, previously adopted Ordinance No. 1930 designating Polk Street for one-way traffic and authorizing the posting of signage to give notice to the public of such one-way traffic; and

WHEREAS, a recommendation has been made to the City Council to change the times and dates of such one-way traffic on Polk Street; and

WHEREAS, a traffic control plan has been presented to the City Council requesting Polk Street, a public street located in Terrell, Kaufman County, Texas, be made a one-way street during specified times; and

WHEREAS, the City Council has determined that a public need exists for Polk Street to be made a one-way street on specified days and times for the safety and general welfare of the public; and

WHEREAS, the City Council has further determined that it would be in the public interest and for the safety of its citizens for No Parking signs to be erected along portions of Daniels Street, New Hope Street and Polk Street and a yield sign to be erected on Polk Street at Daniels Street;

THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TERRELL, TEXAS:

ARTICLE I.
THAT Polk Street be and is hereby designated for one-way west to east traffic between Daniels Street and New Hope Street on Sundays from 8:00 a.m. until 12:00 a.m., during the months of June, July, August and through September of each year and drivers of vehicles shall drive only in the direction designated; that appropriate signage be erected giving notice to the public of such one-way west to east traffic on Polk Street.

ARTICLE II.

That signs giving notice No Parking on Sundays from 8:00 a.m. until 12:00 a.m., during the months of June, July, August and September of each year shall be erected along portions of the following streets located within the City of Terrell.

(a) East side of Daniels Street between Polk Street and Hammond Street;
(b) West side of New Hope Street between Polk Street and Hammond Street;
(c) South side of Polk Street between New Hope Street and Daniels Street.

ARTICLE III.

That a Yield sign be erected on Polk Street at Daniels Street.

ARTICLE IV.

All ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed.

ARTICLE V.

It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable and, if any phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional by the
valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section.
ARTICLE VI.

This ordinance will take effect immediately from and after its passage and the publication of the caption as the law in such cases provides.

PASSED AND APPROVED THIS 3rd DAY OF NOVEMBER 1998.
PASSED AND ADOPTED THIS 17TH DAY OF NOVEMBER, 1998.

20. RECEIVE CITY MANAGER'S REPORT AND CORRESPONDENCE.

Gordon Pierce presented his report and correspondence to the Council.

21. ADJOURN

____________________________________
Henry Madgwick, Mayor

Attest:

___________________________________
John Rounsavall, City Secretary

City Council Meeting
November 17, 1998

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