Council OKs land exchange for right of way

Whitehouse City Council members have given the go ahead for the exchange of city property for a right of way that would lead to a thoroughfare from Bascom Road to Hagan Road. Following a brief executive session at the end of Tuesday's regular monthly meeting, council authorized City Manager Ronny Fite to complete the transaction that would give Johnny Smith a small tract adjacent to Railroad Avenue and a small piece remaining from the old police department site.

Council also approved a bid of $437,216.43 for the completion of the Lilly Road well and transmission line. Funds for the project, which should be completed within 120 days, are available in the city's well account, said Jed Dillingham, financial director.

The bid was awarded to Triple A Sanitation of Tyler, which offered the lowest of five bids. Mayor Jake Jacobson raised the issues of change orders to City Engineer Phil Elledge, who recommended the bid proposal.

"I really want us to focus on not having change orders that would make that not the lowest bid," said Jacobson, who has raised this question about other construction projects where there were changes to the original bid specifications and costs.

Elledge responded by advising the mayor to consider that a change order due to increased supplies, for example, would raise the cost for any bidder.

Council also authorized Fite and council member Danny Hogden to form an impact fee board. The five-member group, which must consist of at least two people from the development or real estate fields, will work with the city and consultant Dan Jackson to develop and implement an impact fee plan for new developments.

Under this structure, the city assesses impact fees on new developments to help pay for infrastructure, thereby sharing the cost of growth with potential new residents rather than relying on the existing tax base.

The council authorized Jackson to conduct an impact fee study earlier this year, and Fite said he would be meeting with the consultant for an update soon and would like to have the board formed by that date.

In other agenda items, council heard an update on the Dews Drive flooding problem. Dews Drive has a long-standing problem with flooding, which reached a high point with this summer's record rainfall. Citizens requested help with the situation at last month's meeting, but were advised that the city is not responsible for the problem because Dews Drive is a private road.

Fite informed council that he had researched old records and confirmed that the city only had easements for water and sewer. Should the residents of Dews Drive decide to dedicate the road to the city, he and Elledge estimated that the construction of a curb and gutter street for the 1,200 foot road would cost more than $400,000.

Of that amount, the residents of the road would pay roughly $100,000, with each homeowner's share based on the increased value of his property.

In considering the project, Jacobson advised Dews Drive residents to be aware that giving the city ownership of the road would open it up for public use and future development and that the construction of a curb and gutter street would alleviate runoff from the north but would not solve the problem of standing water on homeowners' property.

"I want to be upfront and let you know what's happening," said Jacobson. "I think this needs to be a unanimous decision by everybody on that street."

Dews Drive resident Demarcus Hawkins, who also spoke at last month's council meeting, said he felt it would be welcome by all residents.

In other non-action items, council heard reports from Fite about a water contract proposal from the City of Tyler, a contract from the Smith County Humane Society doubling the city's current rates and an update on insurance and repairs/replacements from the fire at the City Utility Barn.

The contract proposal from Tyler offers concessions that previous proposals have lacked, including a spending limit cap, but Fite said that future increases in Tyler's residential rates would still effectively raise Whitehouse's rates each year.

He and other council members also agreed that the monthly demand charge of more than $19,000 was excessive since all the infrastructure is in place and the price is charged regrdless of maintenance needs or the amount of water being purchased.

Tyler's proposed rate increases if the city does not purchase a minimum amount of water, which reflects part of the increase price above. Due to its water well production, the city's water purchase reduced significantly this summer.

Mayor Jacobson urged each council member to consider the contract, saying that the ongoing Lake Striker plan was at least two to three years from completion and as of Nov. 1, the City of Whitehouse would have no relationship with the City of Tyler for its water needs.

Council members all agreed that the Lake Striker plan was the best option; Fite added that contract negotiations for a water purchase rate were ongoing, and when those documents were signed the city could proceed with the pipeline between Whitehouse and Troup at its own discretion, and could possibly get water from Troup in a crunch.

After the meeting, Dillingham compared the proposed effective rate of the new contrct offer with what the city has been paying in a flat rate charge for its minimal water needs and said the difference for May through October of this year would have been an increase of $75,238 in payments to Tyler (from $66,069 to $141,307).