CITY OF HOLLAND CITY COUNCIL MEETING -7PM Kuhlmann Center - 107 West Travis Monday, November 14; 2005 MINUTES The Regular Council Meeting was held on Monday, November 14, 2005 78 PM in the Kuhlmann Civic Center ini the City of Holland, Texas and called to order by Mayor Curt Murray. Sharon Simmons was absent to work related reasons. All other council were present, Mayor Curt Murray, Teddy Gaines, Terri Crum, Mae Smith, and CR Siprian. Citizens' Comments. Randy Hartford of Atmos Energy, presented the Council with Gas Franchise check in the amount of $3,979.19. Previous minutes of City Council Meeting Minutes of 10/10/05 & 11/01/05 were approved as presented in a motion made by Crum, , 2"d by Gaines, all were in favor and motion passed. NEW BUSINESS Proposed 2005 Audit - Brockway, Gersbach, Neimeier, McKinnon was presented by Hope Luther. Alton Thiele was present to answer on behalf oft the city. Brockway suggested these observations and changes: A. the city maintain 3-4 month operating expenses ini fund balances @ $144,279 in Water Sewer, and $67,380 in General. All budgets should be amended to ensure B.. detailed budget to expenditure reports for department heads and to require department heads to sign off and code all invoices charged to their department and this would allow some control of budget which city secretary says has been done for last two weeks.) C 941 payroll reports should be run through Quickbooks due to overstatement of wages by TMRS amounts which currently is being done by hand calculation. D. all credit card receipts should be attached to invoice by department head and coded. E. the current chart of account is difficult to maintain - too many accounts and need to be consolidated and closed unnecessary bank accounts, including most police accounts, Kuhlmann Center, utility accounts (electricity), which are part of the General Fund and eliminate most unnecessary transfers. Some accounts are necessary by law: TCLEOSE, Grant accounts, as examples. The new budget for 05-06 needs to be amended to reflect this ASAP. F. check request forms should be used on all checks without an invoice to explain nature of check: transfers, bonuses and will include date,payee, check number, description ofe expenditure, and approval signature. G. Municipal Court should be separated from Police which is being done. H. at fraud risk assessmentheft: should be done to identify, analyze and manage risk asset misappropriation and is an element of internal control. City Secretary and Mayor have asked A. Thiele, CPA to perform this task. - billing system should be reconciled to Quickbooks on a monthly or quarterly basis. J.. though the budget is adopted it has not been amended to reflect changes during the year. Budget must be monitored through the year and when overspent needs to be subtracted in another area and amended by council approval. It is strongly recommended that overexpenditures be approved by councit before spent. The use of purchase orders is a n excellent mechanism to control spending - funds must be available and if not should be approved by council. Department should look at his budget before asking/requesting a purchase order. K.. journal entries should be used to remove inactive or bad debt expenses and written off but presented to council for approval. Noted was: several areas that the city could be saving money: why is the city paying the library phone and utilities, cost of utilities at the Kuhlmann Center should possibly be passed on to organizations who do not pay for rental and possibly raising the rents. L. The City Fund balance at end of audit is a combined fund balance of $34,409 versus last year's deficit of $-1,635. M. The city has adopted a 2006 budget of $670,476 to be funded through property taxes @ $.4130 tax rate and $.242 M&O and $. 1711 1& S water and sewer charges and franchise, etc N. The budget is $120,570 more than last years budget. A. Thiele stated that some of the proposedchanges would be effected and budget would be input withing the next 60 days. He recommends changes/replace old meters, which Richard has been doing through the year and better accounting of water loss which Richard has also been working on through the year O. City Secretary was asked to make the amendments suggested and submit report to the council within 60 days regarding changes. 2005 audit was approved in a motion made by Crum, 2nd by Gaines, all in favor and motion for approval of 2005 audit was passed. I. OLD BUSINESS A. Ar motion was made by Crum to approve Resolution authorizing E. Travis Park Committee to seek design, grants, financial assistance, which will be proposed to the City of Holland City Council for approval. All original documents concerning these efforts towards the park development will be kept at City Hall. A city checking account will be established for all park funds requiring two authorized of Holland signatories and the Treasurer of the E. Travis Park Committee. Motion was CS by Gaines, all were in favor and motion carried. B. City Secretary, Peggy Tracy reported on the progress'action/review. status of condemned houses and those houses under orderi for Nuisance or Health violations for possible additional action if needed. City Secretary explained that we would no longer use names and will use addresses to protect privacy of citizens. i. 504 Katy continues to make progress and was inspected by Bell County Health and city inspector who are satisfied on continued progress and will continue to review. ii, 401 Josephine demolished the house and has removed debris. Have left concrete because they plan to use it when they re - build. Did a good job. The family were present at meeting. Motion to take no action made by Crum, 2nd by Gaines, all were ini favor and motion carried. CITY OF HOLLAND CITY COUNCIL MEETING, Kuhlmann Center - 107 West Travis : & AGENDA, Page 2 C. Debbie McKeon member of Planning & Zoning stated P&Z recommendation regarding Mr. W. Timbrook - 800 Archie Lane, Belton, owner of property located at FM 1123, Tax Roll W. R. Willis, 8,Z-2, 49.959 AC to allow dual use of property from R-1A to agriculture or commercial not be approved. Motion not to approve zoning request made by Smith, 2nd by Crum. All were ini favor and motion carried. D. &E. Shiela Limon, partner of Barney Knight & Associates, current city attorney chose not to convene into executive session pursuant to Texas Gov't Code 551.074 to deliberate the appointment, performance, evaluation and duties of the City Attorney. Consider requesting proposals for City and/or Prosecuting Attorney. Limon spoke of the expertise and the years of service, the firm has proved to the City of Holland. Mayor Curt Murray thanked the firm for those years of service and that he thought that the firm did serve the city, and sometimes had to respond to requests made by previous Mayor and Council to represent issues they may have been resolved without an attorney. Murray did speak about several issues thaty were thought not best served by the Firm: Glenna Hood former city secretary and termination and payment of sick pay; Mobile Home & Zoning Issue; Limon's spouse and promoting his business. After talking thorough thesei issues, the school & well issue, the city secretary also stated that Sheila had really helped the city through the financial struggles and not billing for some consultation and waiting for some months to be paid. Tthe mayor and council agreed overall and maintained that in general the relationship was a good one and in the best interests of the city of Holland and motion to remove the proposal from the agenda and keep the city attorney was made by Gaines, 2nd by CR Siprian, all in favor and motion passed. Ms. Limon thanked the council. IlI. Committee Reports: Planning and. Zoning Committee. Debbie McKeon & Mayor Curt Murray discussed several items that need to be address at next P&Z meeting: i. existing mobile home issue li. situation of owners and conditions of mobile home park l. condition of building between "Something Old" and City Hall. Mae Smith reported several ordinance complaints from citizens regarding horses and roosters and it was thought that she should give them to Chief Green per Mayor Murray and that he should be asked to report on the complaints at next council meeting. IV. Council and Staff Reports: A. Mayor's Report Curt Murray Mayor requested that Library and CTWSC representatives submit financials and agendas to city council. B.. Council Members' Reports: 1) Library Report Terri Crum stated that she hopes we do not pass the utility bills for the library back to the library to pay. New lights will be paid by school and chamber.2) Central Texas Water Supply Report Mae Smith discussed changes to personnel policy as way of saving money and will get explanation and more info on David Coles salary increase and expenses and where extra Holland pays and where it goes. C. Consider Utility Director Monthly Report motion to approve made by Crum, mi24s by Smith, all in favor and motion passed. D. Consider Police Chief Monthly Report. Chief was absent due to attending a school in Galveston. Terri Crum reported that she wanted Jeff to do something about the non-use of seat belts and children that has been noticed and reported by the school staff. Mayor noted speeding and squealing of wheels by a female motorist on Hackberry and school with children in the vehicle. Police report was approved by Crum, 2" by Gaines, all in favor and motion passed. E. Consider Court Clerk. Municipal Court Monthly Report motion to approve made by Smith and 2nd by Crum, all were int favor and motion passed. F. Consider City Secretary-Monthly Financial Report - Gaines motion to approve, 2"d by Crum, all were in favor and motion carried. CR Siprian motion to adjourn, 2"d by Crum, all wer in favor and meeting adjourned at 9:45 PM. 1 certify that these are the minutes of the council meeting on 11-14-05 in the Kuhlmann Center in Holland Texas. * - Peggy/racy City Secretary 2