City Council - workshop

Amit, if you don't mind calling roll.

Sure. Mr. Creasy? Here. Mr. Lucas? Here. Mrs. Henry? Here. Mrs. Golden? Here. Mr. Seibert? Here. All five present.

Okay, so in terms of our meeting, on the consent calendar tonight, item A, we have a resolution approving travel education expenses in the amount of $97.20 for personnel of the fire department. Item B, we have a resolution approving travel education expenses in the total amount of 438.24 for Mayor Ronnie Marks. Item C, we have a resolution to set a public hearing for the regular meeting on August 24th, 2026 to consider the request of Morrell Engineering to rezone plus or minus 8.12 acres of property located at 13980 Cambridge Lane from a state to institutional Item D, we have a resolution to set a public hearing for the regular meeting on August 24th to consider the request of Morrell Engineering to annex plus or minus 4.66 acres of property located directly west of Edgewood and approximately 2300 south of Sewell into the city limits and zone the property R11. Item E is a resolution approving travel education expenses in the total amount of $59.27 for personnel of the electric department. Item F, is a resolution approving the construction of a shop addition and related materials for the public works facility on Elm to be funded from the street department's existing capital expenditure account. Any questions on any of these items? Okay. In terms of our regular meeting, item G is a resolution approving reimbursement to Councilman Chris Seibert in the amount of $827.56 for attendance at Electric Cities. No rules necessary on any of these, is it? Just reimbursements? Item H is a resolution approving reimbursement to Councilman James Lucas in the amount of $760.78 for attendance at the Electric Cities Conference. Item I is a resolution approving reimbursement to Councilwoman Amy Golden in the amount of $785.48 for attendance at the Electric Cities. Okay. Item J is a resolution authorizing the electric services director to accept the low bid of $494,676 from KVA for the Swancott substation control building and relay panels with cost expenses to be paid from the 2022 warrant fund. Okay, is there any suspensions?

Yes, sir.

Who would do the rules on that? Any questions on this one, guys? Item K is an ordinance amending section 50-79C and D of the city's code of ordinances to fairly adjust rates related to the sale of excess water production capacity. Who will take that one? And that one will require rules. Any questions on that one? Jimmy or anybody? No, I mean, nobody has any questions of me. Okay. Item L is a preliminary resolution concerning the city's proposed general obligation warrant series 2026. to be issued for public capital improvements? We need the rules.

I would. Okay, who would do the rules?

Any questions on this one, guys? Okay. Item M is a resolution approving retail rate adjustments for the city of Athens. Electric department pending TVA approval. We need rules on that.

I don't think so. It's not an ordinance. And it's not spending money.

Councilwoman Golden took that. Any questions on that one, guys? I think, Hunter, you've got a presentation for the meeting. Okay. Okay, well that concludes our agenda. It's a pretty short one tonight, which is nice. Anything else to add from anybody, Mayor?

Now, Mr. Seibert, when you get back, before you adjourn the work session, if you'd like to, we have a need for an executive session for probably 15, 20 minutes, and I'll let our city attorney address the issue when he's talking outside right now. So he should be back in just a few minutes.

Does anybody from the council have any additional items? He's going to do it during the meeting. Okay. Well, we can be on recess until Shane completes. Second from Councilwoman Henry.

And I'll provide the certification and that relates to pending or threatened litigation. Okay.

All right. Mr. Creasy? Yes. Mrs. Henry? Yes. Mr. Lucas?

Yes.

Mrs. Golden? Yes. Mr. Seiber? Yes. Five yeas, zero nays.

Thanks, guys. We'll be back for our meeting at 4.30.

Thank you.

We're going to go ahead and get started with our meeting. We've got a lot of folks here, I'm sure, to be recognized, both the track team and basketball. I'm sorry, and softball. So I apologize for keeping you waiting. Annette, do you want to call the roll, please?

Yes. Mr. Creasy?

Here.

Mr. Lucas? I know he's here. Mrs. Henry? Here. Mrs. Golden? Here. Mr. Seibert?

Here.

All five present.

Our invocation will be offered by Councilwoman Henry and our pledge by Mayor Marks.

Dear Heavenly Father, thank you for the opportunity to gather here tonight to do the business of the city of Athens. Be with us in the decisions and actions that we make tonight. We're thankful for our young people who are here tonight and for the excitement that they bring as we celebrate their accomplishments. Be with us in all that we do. It is in your son's holy name we pray. Amen.

When we turn to my son in youth group here tonight,

They were going to be here as the will of God. They would have to do a pledge of allegiance.

So if you would please join me in a pledge of allegiance.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

Thank you. Thank you, Councilwoman Henry, Mayor Marks. Could I get a motion to approve our city council and work session minutes from previous meeting?

So moved.

And a second from Councilman Lucas. We get a roll call on that, please, Annette.

Mrs. Golden? Yes. Mr. Lucas? Yes. Mr. Creasy? Yes. Mrs. Henry? Yes. Mr. Seibert? Yes. Five yays, zero nays.

WE DON'T HAVE ANY SPECIAL CITY COUNCIL MINUTES NOR STANDING OR SPECIAL COMMITTEES. SO WE'LL MOVE INTO THE REPORT OF OFFICERS. MAYOR MARKS.

I KNOW WE HAVE A PRESENTATION WITH THE ELECTRIC DEPARTMENT, BUT IF WE, I THINK IT WOULD BE GOOD, LET'S GO AHEAD AND TAKE CARE OF, WE GOT SOME GREAT YOUNG PEOPLE WITH US TONIGHT. AND I JUST WANT TO THROW OUT, I DON'T WANT TO PICK ON ANY PARTICULAR YOUNG PERSON. But when there is a 8U young lady that runs the mile in less than six minutes, I really would like for her to stand up. Yeah, she's here somewhere. And she's got, yeah, right there. Thank you. And this is Brooklyn Wood. Is that right, Brooklyn? That is amazing, baby. I was in the military, and the best I ever did was about, well, let's just say the best I ever did. It was not six minutes. And then I understand you've got a 10-year-old brother. Is he a little faster than you? Is he sitting beside you there? Okay, so what's your time? 4.59? Wow. All right, well, good deal. Hey, that's fantastic. Chad, if you're here, help me out with these. We got lots of great young people tonight. Our first group is going to be congratulations to the state track team. And I picked on Brooklyn because she let me, but I just thought that time was amazing. And the rest of these young people are also just as outstanding. And by the way, Brooklyn ran the 1600 meter, the 400 meter, and the 800 meter. Breland ran, she was a state champ in the discus throw. Logan ran the 400 meter, the 800 meter and the 1600 meter in the 10U. Ava ran a long jump in the four by 100 meter relay. And this, it just goes on and on. We're so proud of these young people. Chad, let me let you have it. All right. Coaches, thank y'all. Thank you much.

Before we acknowledge our athletes, I want to say thank you to a few other people. And one is Chris Nuss. He's the coordinator that's over the youth track. This is our fourth year to offer youth track, and it's grown to over 110 kids now. And he does a good job organizing that. And a large part of that is due to the coaches also. And Coach Devin Robinson, Coach Quentin Hill, and Coach Robert Starkey. And if you will, just give them a round of applause. So, guys, if y'all will, just come up whenever I call your name. Brooklyn Wood. She was the state champion in the 1600 meter, the 400 meter, and the 800 meter. So all of these athletes participated in the ARPA state track competition in enterprise. And they ran against over 700 runners. So they really did well. The next is Brylin Bender. She was the 8U discus champion. Logan Wood was the 10U boys 400 meter, 800 meter, and 1600 meter state champion. Josie Waldrop was the 12U girls 100 meter, 200 meter, the discus, and four by 100 meter relay state champion. Ava Conley, she was the 12U long jump state champion and also in the four by 100 meter relay. And Spencer Gates, she was in the 12U girls four by 100 meter relay state championship team.

That is our track dollars.

All right. Three, two. Thank you.

Congratulations again, guys. Keep it up.

Violet Darby also participated in the 12U 4x100 meter relay, but she wasn't able to be here tonight. We also have a group of softball girls here tonight that I think they accomplished some things that I don't know that any other Athens team has ever accomplished. They were the six and under pre-area one champions, pre-area two champions, the area champions, the U-triple S-A state champions, and also the U-triple S-A World Series champions. I'd like to acknowledge Lucas Moss, our softball coordinator. And the coaches for this team was head coach David Goff. Assistant coaches John Zerbel, Kayla Skipworth, Kristen Faulkner, and Laney Goff. All right, now for the stars of the show. Paisley Adams, come on up.

My goodness. Good job. Emerson Duncan. Jen C. Faulkner. Betsy Goff. Jade Grimmie.

Ella Lott. Noe Miller. Kinsley Moore. Good job. And Willa Claire Zerbel.

Have you tried to invite us this morning? That's good.

Y'all are welcome to stick around, but I doubt you want to. It usually goes south from here.

I bet they're hungry.

We appreciate it. Congrats to y'all. Chief, you may have to escort them with all those jewelry.

And, Mr. Cyber Council, that's some great young people. I know that we're getting ready to start school August the 6th. Before you have our next city council meeting, please keep your teachers and the kids and traffic control and all the lunchroom workers and everybody in your prayers, thoughts and prayers. A couple of things I want to bring you up to date on. One is we had a very successful grand opening of Food City this past week. I think most of you were out there. sometime uh... friday's uh... after five he's got the velcro pigments coming to town this weekend i expect a packed house and uh... and the other thing is that there's a comedy corner uh... With the Foundation on Aging, it's going to be at the Athens Activity Center. The tickets are $20. There's a matinee show at 11 a.m. and an evening show at 7 p.m. There will be some concessions, food trucks, and other things there, but it's at the Activity Center at 11 a.m. and 7 p.m. um another thing i want to mention is uh we have continued to have several places around in our downtown that people just seem to no other words say it, just kind of seem to trash up. I mean, I don't know another way to say it than that. We try to keep a handle on it. We've got some things in front of some of the apartment complexes where people seem to dump their stuff, whether they lose their place to live or whatever it is. And Terrence and his crew does a great job. But one that continues to just kind of explode on us, no other way to say it, is by firehouse subs and that's the uh the through the uh america or alabama thrift stores american thrift stores i believe out by firehouse subs i've called them in the past i begged them to clean their facility up they cleaned it up for a while but this weekend was atrocious and i mean it is everything in the world piled up there we've made a contact with them today terrence has and basically told them get your get these out of our city now so i'll keep you informed so if you go by out there please know that we're working on it it's a concern of all of ours and i think we had to keep that in the forefront and right now mr sabat that's all i have thank you okay shane no sir nothing for me mr lucas

I would like to recognize our school system. We're going to be starting back to school next week. I think that that is, I'm a little biased, I must admit, but I think that our school system is a pivotal part of our community. I think that's something that has drawn people here to us and they represent us well. We wish them the best with all the kids coming, the bus drivers, the teachers, the The custodians, the cafeteria workers, they're all fixing to have their hands full, and we need to keep them in our prayers.

Yes. This weekend ended the 2026 Kitty Carnival season. Lots of our city departments help out with that in both large and small ways. So the Athens Lions Club wants to extend their thanks to sanitation workers, to our police department, public works, city schools, and the small army of volunteers it takes to put the Kiddie Carnival on every night. It takes a minimum of 65 people to adequately and safely run the Kiddie Carnival every night. So for everyone who volunteered any time or any service to the Kitty Carnival, thank you. Even though we had a few nights with lighter attendance than normal because of threat of bad weather, we did have a couple cancellations. We met the annual goals for the Kitty Carnival, every dime of which either goes back into reinvestment on the carnival grounds or to charitable donations in a variety of ways across Athens and Limestone County. It is a jewel. It is what is best of Athens. So thank you everyone who had any small part to do with the Athens Lions Club Kitty Carnival for this year.

Councilwoman Golden.

I want to thank our Public Works Department, Street Department for the work that's been done in District 5 on the sidewalks. They're beautiful. We're connecting the sidewalks that weren't there with The ones that are it's, um, it's really shaping up. And I also want to thank councilman cyber for working with me to address, um, a couple of structures that I was concerned about. He moved quickly and, and rapidly to remove two, um, derelict mobile homes. And I'm just so grateful for that. I really appreciate your help with district five. That's all.

I don't have anything other than I would echo the Food City opening was quite a big deal. So Councilwoman Henry is Councilperson of the Month for probably indefinitely for delivering that. But other than that, I don't really have anything. It's an exciting time. I think it'd be the same on the east side of town when the Publix opens over there. We'll kind of protect our boundaries a bit. So good things. We don't have any public hearings. Does anybody have any public remarks regarding agenda items that are on for tonight?

And you have your presentation, Mr. Seibert.

Oh, we do. Yeah. I'm sorry. Yes. We'll come back to that. Can you do the presentation? Because I think my question. Oh, okay. Here? Yep. Come on up.

I appreciate you all giving me a few minutes to talk about agenda item M that we have on the agenda tonight. This is concerning a proposed rate adjustment for Athens Utilities electric customers. So if you want to go ahead. So this is just a brief overview of how Athens Utilities compares to other utilities out there, especially in the southeast. Within Alabama, we're the second largest municipal electric system. Within TVA, we're the 16th largest overall. As Athens and Limestone County continues to grow, you'll continue to see us climb that list and gain on other utilities. This is a growth chart of how we've been. As you can see, pretty much since about 2020, we've been over 3% growth year over year. I specifically have 2018 highlighted. We've grown 33% since 2018. 2018 is also the last time that we did any type of rate adjustment. And 33% is a big number. we've been able to maintain without having to do anything with our rates and so these these are some material costs that we're incurring you know especially since 2019 2020 as we came out of covid you know i know everybody in their day-to-day lives these costs have gone up dramatically we're seeing the same thing on our side and you know we expect these numbers to continue to climb depending on how you look at cpi data it's been up 27 to 30 percent since 2019. And our rates have stayed flat since then. But we're still having to incur additional 30% to 140% additional cost on some of the equipment that we're using for maintenance and operations. And so what we're proposing is a change to our flat customer charge every month. This customer charge is really just to cover our O&M expenses, where we're not relying on the weather every month to pay our bills to TVA and cover our own internal costs. Right now, it costs us about $30 a month per customer. to maintain and operate the system. All the utilities across TVA is about $40. So we're still covering our costs and being more efficient compared to the average utility out there under TVA. And so right now our residential customer charge is $18. What we're proposing is a $2 increase for our residential customers and our commercial customers. to become effective in November 1st of this year, pending TVA approval. So if the council votes on this, we'll submit all of our financial data to TVA. They'll review it and then make the final determination if we're able to move forward with any type of adjustments. And then we're also proposing in 2027 to add another $2 to that customer charge to get us up to $22 for residential customers. And so the average, you know, For North Alabama utilities that you see, their average customer charge is between $25 and $30. So we're still below that margin of what you would see for other utilities. We're also below, technically, our O&M cost per customer. But it still gets us up to closer to where we need to be. And especially as you all know, it seems every summer is getting hotter, every winter is getting colder. And so those costs really impact our financials month to month that we still have to pay TVA for our power bill. And so this is just a graph of our residential impacts that would see, you know, based on 2026, you know, it's going to be $2 flat across every customer that's out there. We don't want to do a percentage because it can affect other, you know, high users, lower users differently. And so we're just proposing this $2. So, you know, anywhere from very low usage customers would see up to 4% increase in their bill to very high usage customers would see 0.5 to 0.6% increase in their bill each month. And this is for our GSA 1, which is our commercial customers. Really a lot of these fall under storage units, cable power boxes that, you know, supply our cable and fiber across the county. That's what a lot of these accounts are. You know, it's still anywhere from 4% to less than .1% of an additional increase that they will see on their bills each month that this was moved forward. And so this is a comparison of how we look today versus other surrounding utilities. As of 2025, of the 25 TVA utilities in North Alabama, only four hadn't had a rate increase, and Athens Utilities is one of those. We're also the second lowest of all the 25 utilities in Alabama for the TVA region. As you can see, I compared our neighbors with July's rates of today's rates, and we're the lowest compared to Huntsville, Florence, Decatur, Joe Wheeler. If you take today's rates of these proposed changes for July, 2028, we're still in the exact same position and still lower than those utilities that were out there. And this doesn't, you know, count for any rate adjustments or changes that they do on their systems as we move forward. So, you know, we were still very lean and be as efficient as we can, but we also, you know, things go up and somebody's got to foot the bill at some point, we just can't eat it forever without, reducing maintenance, reducing tree trimming. We would have to make cuts if something doesn't happen. So that's all I have for you. I'm happy to answer any questions that you'll have, but just wanted to provide a little data of where we're coming from.

Hunter, just for clarification, TVA still has to vote to approve this, even if council were to adopt it tonight. Yes, sir. And tonight is the $2 on the 2026 contract. and then a proposal to come back to council for 2027.

So if it's approved tonight, you know, it would go to TVA for the 2026 adjustment and then it would go back to TVA again because y'all have already approved it for the 2027 adjustment. So they could technically approve 2026 and not approve 2027 or they could approve just 2027 and, you know, not allow us to implement 2026.

Yeah, I just wanted to be specific for the council on what that, the logistics of that.

And you said we're at 18, and our average surround is 25 to 30? Yes, sir. So we're well below.

Yeah, and then some of those technically are up in the $40 range per month on customer charge, but if you average out all of them, it comes out to $25, $27, somewhere right around in that range. And so there are other utilities that have lower customer charges, but their energy charge is a lot higher. And so if you have those really... extreme weather months, those customers are going to see a lot higher bill because their energy charge will be a lot higher. That's how they're recouping their money. We try and keep our energy charge as close to wholesale as we can and just rely on that fixed monthly customer charge.

Does anybody have any questions? This is something we never like to have to do, but it's necessary at this point.

I'm a last resort. But it's also since 2018 is the last time we had to do anything.

I do know that the last meeting we had in Montgomery, the group that Ms. Golden and I were with, All they could talk about is what we are doing to keep our utility rates as low as we are and to keep from having to increase them to the levels that they have.

And part of that harks back to a policy that the council adopted a few years ago for our aid to construction policy. There are utilities out there that use rate payer money to subsidize construction or make investments in the system to try and attract businesses. Well, the policy that the council adopted is that all customers that move here have to bear the full cost. That way, somebody across the county isn't subsidizing something that will never affect them. And so that has definitely helped us out in that regard.

Any other questions for Hunter? Anybody?

Did that answer your question, ma'am? Yeah, it was yours .

OK. Thanks, Hunter. Thank you. Any other items? So public comments regarding agenda items for tonight?

Amanda Schulte, 1036 West Washington Street. Just a couple questions. So on item F, the resolution approving the construction of the shop addition, I was just wondering how much that was estimated or planned for since that typically is in there and it just wasn't. I was just curious if that had been, or if it was just we're approving to do that addition.

Item H, Councilwoman Golden.

Be resolved by the City Council of the City of Athens, Alabama to approve the following travel and education expense for James Lucas to Electric Cities Conference in the amount of $760.78. We get a second?

Second. Any questions? Okay, can we get a roll call, please, Annette?

Mrs. Golden? Yes. Mrs. Henry? Yes. Mr. Creasy?

Yes.

Mr. Lucas? Yes. Mr. Seibert?

Yes.

Four yays and one abstention.

Item I, Councilwoman Henry.

It resolves the City Council of Athens to approve travel and education expenses for Councilman Amy Golden in the amount of $785.48 for her attendance at Electric Cities Alabama Conference Gulf Shores July 4 through 8, 2026.

Second by Councilman Lucas. Any questions on this one? Okay. Can we get a roll call, please, Annette?

Mrs. Henry? Yes. Mr. Lucas? Yes. Mr. Creasy? Yes. Mrs. Golden? Abstain. And Mr. Seibert?

Yes.

Four yays, one abstention.

Item J, Councilman Creasy.

Where is Athens Utility solicited? Competitive bids were the delivery of one control building and relay panels, and whereas KVA Incorporated was deemed the lowest responsible bidder, therefore be it resolved that the City Council of the City of Athens at its regular meeting tonight moves as follows. The Electric Service Director is authorized to accept the negotiated low bids of $494,676 from KVA Incorporated for the control building and relay panels of the Athens Utility Swancott electric substation. The costs and expenses related to this resolution shall be paid from the following fund of the City of Athens 2022 Warrant Fund. Move to suspend the rule.

Second.

Second by Councilwoman Golden. Can we get a roll call on the rules, please?

Mr. Lucas? Yes. Mrs. Golden? Yes. Mr. Creasy? Yes. Mrs. Henry? Yes. Mr. Seibert? Yes. Five yays, zero nays.

And can we get a second on the resolution?

Second.

Second by Councilwoman Henry. Are there any questions on this one? Okay, can we get a roll call, please, now?

Mr. Creasy? Yes. Mrs. Henry? Yes. Mr. Lucas? Yes. Mrs. Golden? Yes. Mr. Seibert?

Yes.

Five yays, zero nays.

Item K, Councilman Lucas.

Item K is an ordinance concerning excess capacity interoperable water service, whereas the Athens Water Service has identified a need to revise Section 50-79C and D, to fairly adjust the rates related to such sale of excess production capacity, whereas the City Council desires to amend Section 50-79C and D to account for those proposed changes. Therefore, be it ordained by the City Council of the City of Athens, Alabama.

Move to suspend.

Second.

Second by Councilman Creasy. Can we get a roll call on the rules, please, Annette?

Mrs. Golden? Yes. Mr. Creasy?

Yes.

Mr. Lucas? Yes. Mrs. Henry? Yes. Mr. Seibert?

Yes.

Five yays, zero nays.

Can we get a second on the ordinance by Councilwoman Henry? Are there any questions on this one? Okay. Can we get a roll call on that, please, Annette?

Mr. Lucas? Yes. Mrs. Henry? Yes. Mr. Creasy? Yes. Mrs. Golden? Yes. Mr. Seibert?

Yes.

Five yays, zero nays.

Item L, Councilman Creasy.

Be it resolved by the City Council of the City of Athens in the State of Alabama that the Council has ascertained and does hereby find and declare as follows. It is necessary and desirable and in the public interest of the city construct and acquire various municipal capital improvements including without limitations public parks, recreation and general municipal improvements. It is necessary and desirable and in public interest and in the interest of the Athens City Board of Education and that the city provided funding for capital improvements to schoolhouses in the city, including without limitations, a new approximately 46,500 square foot adaptable use facility at Athens Renaissance School. The school improvements and together with the municipal improvements as determined and reported to the Council by the Board of Education. In order to provide funds for the portion of improvements and to pay cost of insurance, it is necessary, desirable, and in the public interest that the City sell and issue during the current fiscal year and pursuant to Section 11-47-2 and 16-13-309 of the Code of Alabama 1975 as amended, its General Obligation Warrant Series 2026 in aggregate principal amounts not expected to exceed $45 million. In the light of the expected timing of the sale and of the warrant, it is necessarily desirable in the public interest that the City authorize the Mayor to execute on behalf of the City's purchase contracts with Fraser Lanier Company Incorporated as underwriters of the warrants and underwriters subject to approval and ratification by the Council such as the time the Council adopts the organization authorizing the final issuance and exec execution of the warrants the execution of purchase contracts between the city and underwriter preliminary actions approved we get a motion to suspend the rules motion to suspend second by councilman lucas

We get a roll call on the rules, please, Annette.

Mrs. Henry? Yes. Mr. Lucas? Yes. Mr. Creasy? Yes. Mrs. Golden? Yes. Mr. Seibert? Yes. Five yeas, zero nays.

Could we get a second to Councilman Creasy's resolution?

Second.

Second by Councilwoman Golden. Does anybody have any questions on this one? I apologize. Okay. Another school building. You get a roll call on that, please, Annette?

Mr. Creasy?

Yes.

Mrs. Golden? Yes. Mr. Lucas? Yes. Mrs. Henry? Yes. Mr. Seibert?

Yes.

Five yays, zero nays.

Item N, Councilwoman Golden.

Be it resolved by the City Council of the City of Athens, Alabama to approve the attached retail rate adjustment for the Athens or the City of Athens Electric Department to become effective for bills rendered meter readings taken on or after November 1st, 2026, pending TVA approval. Second.

Second by Councilwoman Henry. Any questions on this one? Again, not something we ever like doing, but when you can't keep up with even inflationary costs, it becomes almost impossible not to. So we minimize these as best we can, and we take these votes very serious. With that being said, Annette, would you call the roll, please?

Mrs. Golden? Yes. Mrs. Henry? Yes. Mr. Creasy?

Yes.

Mr. Lucas?

Yes.

And Mr. Seibert?

Yes.

Five yays, zero nays.

Do we have anything else to add, Mayor, Shane, Annette, council? Okay. Our last section here is for anyone of the general public that would like to address the council on anything that's pertinent to city business.