Huntsville City Council Regular Meeting - September 14, 2023

The Huntsville City Council held its regular meeting on Thursday, September 14, 2023, at 5:30 PM in the City Council Chambers. The meeting included special recognitions, public hearings, a major water rate increase, a new mixed-use development agreement, and discussion on a hands-free driving ordinance. The council approved most items, postponed several key discussions, and heard public comments on transit changes and employee compensation.

Consent Calendar

• Approved the agenda and minutes of the August 24, 2023 meeting.
• Approved multiple resolutions including: travel expenses, donations, low-bid contracts, development agreements (e.g., Stadium Commons), engineering agreements, change orders, facility use agreements, professional services, CDBG and HOME fund agreements, human resources and insurance renewals, transit agreements, software agreements, and grant applications.
• Approved expenditures totaling $51,046,228.65.
• Approved travel for Councilmember Meredith to ICMA Conference (Austin, TX) and Councilmember Little to Alabama League of Municipalities Conference.
• Reappointed Heather Bender to Animal Services Advisory Committee.

Public Comments & Testimony

• Ginger Lowe (agenda-related): Opposed the reclassification of 26 upper-level management positions and the 2.5% COLA, arguing that lower-grade employees are not receiving adequate raises given inflation and that management has received repeated raises.
• Dr. Angela Somerset (agenda-related): Criticized the proposed 35% water rate increase, alleging lack of transparency from Huntsville Utilities CEO Wes Kelly. She urged the council to create a citizens advisory committee and questioned the $110 million water treatment plant expenditure.
• Lakisha Bogan (agenda-related): Expressed support for the new outdoor roller-skating rink at Stoner Park, citing the need for such a facility and its health and community benefits.
• Andre Wilson (second roster): Questioned the 20-year population projection used by Huntsville Utilities, asking whether children were included in the calculations.
• David Mullins (late addition): Representing Valley Garden Apartments, opposed the proposed elimination of a bus route deviation that serves elderly and disabled residents, arguing it is a life-changing event and may violate the Fair Housing Act. He urged the council to consider the impact at the upcoming public hearing.

Discussion Items

• Water Rate Increase (Ordinance 23-628): Huntsville Utilities proposed a 35% increase to generate $16.3 million in new revenue. Council President Meredith offered an amendment to reduce the impact on low-usage customers by lowering the first two tiers of usage rates and changing the tier structure. The amendment also created a new 5/8-inch meter availability charge at $14 and adjusted the apartment master meter charge. Councilmember Kling proposed an amendment to keep the availability fee at $12.34, but it lacked a second. After extensive discussion, the council approved the amended ordinance unanimously (5-0). The new rates are expected to be implemented by November 1, 2023.

• Hands-Free Driving Ordinance (Ordinance 23-694): Councilmember Little presented the ordinance to strengthen the existing texting ban by making it a primary offense, prohibiting holding a wireless device while driving. The ordinance includes exceptions for emergencies, hands-free use, and utility workers. Councilmember Keith raised concerns about enforcement and the potential for racial disparities, suggesting a dash-cam requirement or checkpoint approach. The council postponed the ordinance to the September 28, 2023 meeting for further discussion.

• Stadium Commons Mixed-Use Development (Resolution 23-722): The council approved a development agreement with Parkway Vesta, LLC for an 18-acre project adjacent to Joe Davis Stadium. The project includes 100 hotel rooms, 70,000 sq ft retail, 25,000 sq ft office, and 200 multifamily units. The city will lease 300 parking spaces in a new garage for 25 years at an average annual cost of $1 million. The 10-year tax return is projected at $32.5 million, with a net positive cash flow of $22 million after lease payments. The city’s investment is recouped in 4.5 years.

• Outdoor Roller-Skating Rink at Stoner Park (Resolution 23-733): The council approved a $143,000 design contract with Nola | Van Peursem Architects for a new outdoor roller-skating rink. The facility will be used for roller skating, roller hockey, and other events. Councilmember Keith contributed a portion of his council improvement funds to the design. The project is part of a broader strategy to renovate existing parks and add new amenities.

• Council Improvement Fund Guidelines (Resolution 23-720): Proposed amendments to require a $10,000 minimum allocation and restrict funds to capital expenses. Councilmembers debated the impact on nonprofits and community organizations. A compromise was suggested to lower the minimum to $5,000 and allow non-capital expenditures if funded through a general fund transfer. The item was postponed to September 28, 2023.

• Pedestrian Access and Redevelopment Corridor (PARC) Grant Application (Resolution 23-769): The council authorized the mayor to apply for federal grants to fund the Mill Creek bridge and multimodal corridor project, which already has a $20 million BUILD grant. The city seeks additional funds to reduce its capital outlay.

• Transit Service Changes Presentation: The Parking/Public Transit Department proposed changes to three bus routes to improve on-time performance and simplify routes. The changes include eliminating stops at Valley Garden Apartments and relocating others. A public hearing is scheduled for September 20, 2023. Councilmember Kling noted constituent concerns, particularly for elderly residents.

Key Outcomes

• Approved: Water rate increase (amended), Stadium Commons development agreement, roller-skating rink design contract, PARC grant application, and all consent calendar items.
• Postponed: Hands-free driving ordinance to September 28, 2023; Council Improvement Fund guidelines to September 28, 2023; budget work session scheduled for September 21, 2023 (public comments allowed).
• Introduced: FY2024 budget ordinance, COLA ordinance (2.5% for all eligible employees, effective October 2, 2023), classification and salary plan amendments, New Hope Telephone franchise agreement, two annexations, and the establishment of the Huntsville Sustainability Commission. These will be voted on at the September 28, 2023 meeting.
• Referred: Numerous board appointments and reappointments to the September 28, 2023 meeting for final approval.
• Mayor’s Appointment: Byron Thomas to the HEMSI Board for a term expiring August 22, 2028.