Council OKs easement plan

Following a two-hour executive session Tuesday night, Whitehouse City Council members voted to approve an easement agreement with Billy Moss to acquire land for utility projects.

The land is for the city's latest water wells.

Under the agreement, Moss is selling the city the land for $10 plus in-kind consideration of $15,000, which includes the city participating in pouring a concrete road from Ardis Drive to the well site, according to City Manager Ronny Fite.

Council members Dale Moran, Gene Champion and Danny Hogden voted for the agreement, while Mike Adams and Bill Powers voted no.

Water was the topic of three other agenda items, as well as remarks made by Kay Graham in the citizens participation. The Medicine Shoppe employee told council she was concerned about the city's current water situation and wanted to know if there was a backup plan in case supply ran short.

Mayor Jake Jacobson told her there was no backup in place, but council was working on it.

Graham asked about the current supply, and Fite said the city was in good shape as its fourth well just came online (Lilly Road location), and there are two other wells in the works.

Jed Dillingham, the city's financial director, said that 20 percent of the fourth well's output equals what the city purchased from the City of Tyler last year.

Fite also updated council on the latest negotiations with Lake Striker. Fite said a draft proposal for the purchase of raw water looked promising. City attorney Steven Evans said the only real issue had been the termination provision, but those concerns were dealt with.

"It's a relatively benign agreement. There are no substantial take or pay features that we've seen in the past," said Evans.

Hogden asked Fite about the status of Lake Striker's re-permitting issue, and Fite said it should be resolved in April. Lake Striker is currently classified as industrial only and is seeking to be re-permitted for municipal use.

The city is already committed to a 10-year option contract, along with the City of Troup, that would be recalculated into the cost of any purchase contract agreement.

The other two agenda items concerning water involved an update from Mayor Jacobson on his negotiations with Tyler. Tyler officially cut off water service to Whitehouse last November after several months of contract negotiations.

The Whitehouse council has re-opened discussions in the hopes of getting a shorter term contract than the 25 years proposed by Tyler. With well production and Lake Striker plans, council members feel an agreeable five or 10 year contract would give them an "insurance policy" for water.

Jacobson said that he had expressed the city's thoughts and concerns to Tyler Mayor Seeber, who was going to consult with his staff and get back to him. "Of course they would like us to take the contract as presented, but I told them we are now interested in a shortterm contract," he said.

Hogden asked at this point if staff could get a copy of Walnut Grove's contract with Tyler for review, and Fite said they could.

Council also heard an update on FM 346 from TxDot engineer Vernon Webb. He said weather continued to play havoc with the project, which was about a month behind schedule. Webb predicted the project would be complete in fall of 2009.

Council took action on two other items. Members approved:

-- a resolution requesting ETMC to contract with United Healthcare Option PPO to allow network access through Texas Municipal League Intergovernmental Employee Benefits Pool;

-- a resolution requesting changes to the method of selection for community development fund grants under the Texas Community Development Block Grant program in the East Texas region.