City of Richland Springs Minutes of City Council Meeting on Monday November 11th, 2024 Meeting: Discussion of the ongoing projects and regular business of the city Council Attendees: Mayor Frank Pearce; City Water Manager, Chris Perry Council Members: Aaron Bessett, Larry Crump, Jessica Scales, Dale Mckinnerney, & Johnie Reeves Called to Order/Location: 07:00 pm at City Hall Note Taker: Jessica Scales Absent: Aaron Bessett, Johnie Reeves City Officials Present: Frank Pearce, Jessica Scales, Larry Crump, Dale Mckinnerney, Chris Perry Guests/Citizens Present: Deana Sealy, Paige Moats, Bobby Bailey, Michael Schomer, Margaret Somereve 7:00 pm 1. We opened the meeting with a prayer. 7:01pm 2. Guest and Citizen Participation: none 7:01pm 3. We discussed and approved the minutes from last month's regular meeting. AI motion to approve the minutes was made by Dale Mckinnerney, 2nd by Larry Crump, passed by unanimous vote 7:06pm 4/5. We discussed the bills and normal monthly payments along with extra costs incurred over the month due to payments for repairs and labor for ongoing sewer issues on Commerce St. We also discussed the monthly reports and current city/WSG balances, and some of our purchases arriving fori install, like the park lights and insulation fori the old water office. Noting we will need to purchase more insulation as the original amount was not enough. Discussed our purchase of root killer for root problems causing the Commerce St. sewer problems. CDBG application was also submitted and our rep Morgan approved it, and now we wait for the final word from the state in January 2025. Jessica Scales made a motion to accept the bills and reports, 2hd by Larry Crump, passed by unanimous 3-0. vote 3-0. 7:15pm 6. Rolling Agenda Item: Sheriff's Office Report No deputies in attendance for area wide report. Chris did provide a citation chart for all the years we have been issuing tickets/2022-2024), to compare the number of citations and for what, and see what issues are being addressed and how often. 2023(15 citations) significantly lower than 2024(38 citations) despite the same ongoing issues/speeding, running stop signs, school zone speeding, etc.) 7:16 pm 7. Michael Schomer requested to be added to the agenda to present his plans for his West Coyote Trail property and is requesting annexation for the property. He is present along with his son Bobby Bailey, owner of the Coyote Station & General Store ini town, and has provided the city with a rough draft of the building plan and lots, along with details on utility infrastructure and flood mitigation. His intent was to subdivide the approximately 30 acre field, into 19 lots of 1-2 acres each(totaling 27.944 acres), with one roadway and one entrance in and out. He would be making it commercial only(business use), with plans to offer it to manufacturing businesses, stating examples with only six weeks left in the calendar year. like Samsung and Caterpillar, to turn iti into an industrial manufacturing complex of multiple small businesses. He mentioned speaking with local realtor Ricky McKinnerney and being told that we need residential lots, not commercial lots, but he 'wants to bring business to Richland' instead. He also mentioned we have no subdivision laws. He is requesting water services only, and is considering septic for each lot as a lift station would be costly for him, and as he is unsure if our system could handle that much added sewage anyway. He states the most northeast lot(directly across from the existing highway culvert just east of the school entrance) would hold a retention pond to help hold water from flooding the entire West side of Richland, and that lot would be donated tot the city for maintenance and to control access for managing utilities; states it could be turned into a park or something similar. He would like city water' 'to provide a sense of security' for the lots and 'to not have tor rely on the county' despite them not providing water to property owners. He also mentioned possible hotels/motels, and corporate chain stores being able to be built alongside like Dollar Generals. He mentioned he would not offer convenience stores in order to not compete with his son's business. Hei is aware how unsightly an industrial complex would look directly across from the school and states the lot owners will need to build tall fences along the highway. Entrance to the complex would be about 200 feet west of the school zone sign on the west boundary of the school zone. He states he would build the streets, sewer, and all plumbing. He mentions per business insurance requirements each lot would need to have sprinkler systems installed for fire safety, requiring more 7:27pm 8. After hearing his plans, we very briefly discussed the possibility of annexation. He was advised that without reliable rainfall, the city often goes into drought and can barely provide enough water for existing properties, much less an industrial complex that could require millions of gallons daily. We discussed how this would directly affect the city and school, which already has low water pressure, and how the water pressure issue wouldn't be resolved until circa 2027 orl aterdepending on project) when the water project is completed. We advised that annexation plans would not be possible at this time, and we would not be annexing. He then discussed how there are two existing wells on the property that the city could get working to help provide water. Frank advised those wells are for water collection and dripping for cattle ranching and would definitely not suffice in providing any water to that complex. He then asked if the city was considering digging new wells for other sources of wateri in the future. Frank advised that has already been done in the past, there were at least six wells dug already and they were all dry, the one SUD is on goes dry at 350'. Advised again, not enough water for such a project and we would not be risking the community water as such. Advised again annexation is not an option at this time. He asked about other wells in the area. Frank explained the entire aquifer system and caverns etc that run this area and surrounding counties. Explained how we pump from a cavern that runs off an aquifer and how our community is not directly connected to an aquifer to draw from and wateri is not consistent. Explained how Richland Springs no longer flows due to low water levels and surrounding areas pumping from the network of caverns for pecan orchards. Once again, providing water for such a project would not be possible at this time and we would NOT be annexing. Ended discussion. A motion was made to table this discussion until our water project is completed in the future, where if logistics change, we could possibly consider it at that time. The motion was made by Dale Mckinnerney, 2nd by Larry Crump and passed by unanimous 7:42pm 9. We discussed joining the Texas Coalition for Affordable Power(TCAP) which is a non-profit organization that helps communities in Texas buy electricity at a more affordable price. TCAP members water. vote 3-0. Michael and Bobby left the meeting at this point. aggregate their electricity usage to negotiate better prices from the wholesale energy market directly. Margaret Somereve is here to discuss and provide all needed information. She is the executive direction for TCAP at this time. Pamphlet provided. Discussed members, zones, usage, the wholesale market and how it works, how decisions are made and the fees associated with joining. They would handle and renew all contracts, to make sure they are good faith estimates and are reasonable rates, focusing on fine print fees, 'other' fees, and hidden fees often tacked onto bills as well. Discussed how electricity is exempt from state purchasing laws and how iti is no longer a good thing to have long term fixed contracts or fixed rates in general. They are constantly monitoring the market and looking at rates two years in advance for best prices. Went over sample pricing charts and bills in the information packet she provided. Discussed the strategic purchasing methods used and how prices fluctuate with world events, much like the stock market. If we joined now we would be rolled in at the current rate of 6.384 cents(2024 price), and should we wait till January 1st or later, the rate would be 6.727 cents(2025 price). Due to our location right on a boundary line TCAP has decided we would be put in the North Zone, because it would be cheaper for our economic status level. Discussed ERCOT, their board and activities, and funds they have allocated for future projects to enhance the current generation of electricity in our state. Discussed green energy costing too much to be reliable or efficient. At this time there is only one transmission line from West Texas into our zone, and one line from our zone, into the other: zones, and how that will eventually change allowing more generators to add more electricity into the system, but overall how there is not enough energy getting to the zones that need it. They are currently finishing purchasing 2026 contracts with rates to be announced in March at the yearly budget estimate. Discussed how Oncor is taking advantage of this whole situation and has made 4 rate changes in 2 years, going up 11 cents per year on average, despite only providing lines and doing line installation. The city has tried contacting our current provider, Cerro, for over two weeks now to discuss future rates and have not once heard back. Our contract with them ends December 31. We discussed how we needed to choose now in order to not have a city under no contract and high rates. The cost to join TCAP at this time is .0012 cents/Kw, or roughly, based on our usage, $40/year. So should wej join now we would pay "$40 dollars plus the current rate of 6.384 cents. Chris has reviewed the numbers and recommends the city join this instead of trying to find similar rates in the open market. Our contract with Champion for WSG, does not expire until 2027 sO that will not switch over at this time. A motion was made toj join the Texas Coalition for Power as the City of Richland Springs electrical service provider. The motion was made by Dale Mckinnerney, 2nd by Jessica Scales, passed by unanimous vote 3-0. Morgan left the meeting at this point. 8:24 pm 10. Agenda item to discuss choosing an electrical provider; discussion not needed as the City 8:24pm 11. We discussed the Water Line Grant. Deana has still been answering questions for TWDB, they still have a board meeting planned for December sometime. Our bond counsel representative recently said all questions have been answered. Deana added as a side note: for the annexation request that was just made that once the water project is complete and we are no longer losing water tol leaks ini the city, there would be an extra 9 million gallons a yeari for city use. In 2023 we pumped 21,000,000 gallons, and 47% of it was lost(9 mil gallons). Assuming the project is successfully completed there should, in theory, be 0% water loss from then on. We are still looking into the funds from 2021, we get to use loan forgiveness money first, and then our loan money, sO if we come in under budget, there could be money left over to possibly use to try drilling for another well nearby for city use. Continuing: The TCEQ sewer department says we need to resubmit the grant application and just joined TCAP as provider in above mentioned motion. have not yet told us if we have to do the Lake Buchanan watershed study. If we do get a TLAP permit, we will not need to doi the study, regardless of whether we empty into the lake or not. TWDB would be doing the lines, the CDBG would be for the sewer lines, meters, etc. The budget was supposed to be for lines and street replacement and repairs but depending on budget, could be more expensive than originally thought. The bond counsel has completed 10/11 questions thus far. Deana left the meeting 8:35 pm 12. We discussed closing 100 E. Main St to 200 E. Main St. for the upcoming yearly Christmas market. A motion was made to allow the street closure on November 30th for the Christmas Market. The motion was made by. Jessica Scales, 2nd by Dale McKinnerney and passed by unanimous vote 3-0. 8:37pm 13. We discussed entering a Memorandum of Understanding with the Richland Springs ISD Police Department. This would allow RSISD officers to patrol the city of Richland Springs during off time in order to give citations, the way the SSSO currently does. Discussed not enough patrols being conducted weekly and this would help with more law enforcement presence locally. The RSISD PD would have the same authority as the Sheriffs Office and would give us the ability to have an extra officer patrolling outside of school boundaries and school hours. A motion was made to enter into the Memorandum of Understanding with the Richland Springs Independent School District Police Department to allow school officers to patrol the city when they can. The motion was made by Dale 8:43pm 14. We discussed purchasing a water jetter from Juice's Septic. He had previously told us he was selling his old equipment for $10K after a recent upgrade. We had asked if he would accept a payment plan of 4 months at $2500/month. He has let us know he will sell it to us and do the payment plan to help out the city. Iti is not truck or trailer mounted, SO we would need to get that and a tank for it, but that would be a comparable cost to what we pay him for his current services for every large leak. It has worked efficiently for us in the past. We decided it would be best to inspect it first and make sure it still starts and runs accordingly. A motion was made to table the purchase until the city has an opportunity to inspect the jetter before purchase. Motion made by Dale Mckinnerney, 2nd by 8:47pm 15. We discussed an Ordinance for Occupying Property. This type of ordinance would be needed to avoid trash trailers(broken down trallers/domiciles with no electricity or water capabilities, or broken down and uninhabitable) being placed on properties. The city would like the power to inspect all leAA/amAAAURRe buildings etc, before someone moves one onto a property to inhabit them. Chris has provided us with two packets, the ordinances used in the city of San Saba. They are very lengthy and he would like us to review them and see what needs to be edited/removed in order to make them work for our city. They will be reviewed and discussed at the next meeting. The goal is tol be able to enter anyone's property and complete an inspection(no mention of who would be doing these inspections) on trallers/RVs/ans/sheds/storage buildings etc. and make sure they are capable of having water, sewer and electric working and in place to meet current city ordinances in place about health and safety. Discussed current properties that have trailers on them with no utilities in place and improper disposal of waste, and theft of water from inactive meters nearby, being used at this point. Paige left the meeting at this point. Mckinnerney, 2nd by Larry Crump, passed by unanimous vote 3-0. Jessica Scales, passed by unanimous vote 3-0. for housing in city limits. Further discussion at the next meeting. 8:58 pm 16. We discussed the status of the old water office. The water line has been connected, insulation is 2/3 of the way installed, and not much more can be done until next year, due to our 8:59 pm 17. We discussed further action on the cleanup of the 102/104 E Main St city property. We have received two bids for cleanup. One from Hector Martinez in San Saba for $8,300, and one from Brandon Byars in Brownwood for $3,500. These bids cover all cleanup phases and costs and removal, previously discussed, from the lot. We have already seen Brandon's previous work on lots around town as well. Discussed. A motion was made to select Brandon Byars as the cleanup contractor for the 102/104 E Main St lot, to complete all phases of the cleanup as planned for $3,500. The motion was made by Dale McKinnerney, 2nd by Larry Crump, passed by unanimous vote 3-0. Side note, he would be removing all fencing except the metal posts and metal gate frames and leaving the rock building as is. -Nick Taylor took a template Frank made to make bases for the light poles that still need to be installed ini the park. Marty will be doing the welding for the wiring in the park fori the wiring to go through and side doors for the poles to access the wiring. Both have volunteered to do the work for free. We will need to move the cement blocks to new locations with the tractor and attach and mount with the existing plans. They need to go 4' into the ground with concrete and block mounts. 9:06 pm 19. We discussed awarding the citizen of the year award to one of the five candidates, from six submissions. No guests were present for discussion, sO no executive session was needed. Discussed all candidates, Dale felt three of the submissions(all city employees) should be disqualified from the vote despite being citizens, as they were paid by the city and people might confuse their community good deeds, with their job duties, despite submissions listing personal deeds done for churches and other local non profits. Of the two remaining submissions, one did not list any community service, and the other is an active council membertalthough not present). We discussed if council members qualified and. Jessica asked how they were not disqualified as a conflict of interest, considering other council members were doing the votes. It was stated the council position is not a paid position. With only two candidates to choose from, we held two anonymous votes to narrow down too one. It was unanimous, the citizen of year for 2024 was awarded to Johnie Reeves and we also discussed a retroactive award for one of the city employees who is now deceased but was submitted. We retroactively awarded Donald Skelton citizen of the yeari for 2016. Chris will announce publicly and 9:15pm 20. Final discussions, Dean Lord has inquired if the city would consider selling the RV park to him to run and manage. Very briefly discussed and he will be advised the city is not interested in 9:16pm 21. No further discussion, no executive sessions needed. A motion was made by Dale Mckinnerney to adjourn the meeting, 2nd by Jessica Scales, passed by unanimous vote 3-0. extremely tight budget at this time. 9:01 pm 18. Mayor Reports: have two plaques made up for the City Hall award wall display. selling any of its properties at this time. Eyear Mayor, FrankPearce dolu Auss Secretary, Jessica Scales