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Home My WebLink About05/28/2020 - Workshop Minutes - City CouncilWKSHP052820 Minutes Page 1 MINUTES OF THE CITY COUNCIL WORKSHOP VIA TELECONFERENCE CITY OF COLLEGE STATION MAY 28, 2020 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Bob Brick John Crompton Linda Harvell John Nichols Dennis Maloney City Staff: Jeff Capps, Interim City Manager Jeff Kersten, Assistant City Manager Carla Robinson, City Attorney Tanya Smith, City Secretary Ian Whittenton, Deputy City Secretary 1. Call to Order and Announce a Quorum is Present With a quorum present, the Workshop of the College Station City Council was called to order by Mayor Mooney at 4:08 p.m. on Thursday, May 28, 2020 in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 7784 0. 2. Executive Session In accordance with the Texas Government Code §551.071-Consultation with Attorney, and §551.074-Personnel, the College Station City Council convened into Executive Session at 4:08 p.m. on Thursday, May 28, 2020 in order to continue discussing matters pertaining to: A. Consultation with Attorney to seek advice regarding pending or contemplated litigation; to wit:  Kathryn A. Stever-Harper as Executrix for the Estate of John Wesley Harper v. City of College Station and Judy Meeks; No. 15,977-PC in the County Court No. 1, Brazos County, Texas; and  McCrory Investments II, LLC d/b/a Southwest Stor Mor v. City of College Station; Cause No. 17-000914-CV-361; In the 361st District Court, Brazos County, Texas  City of College Station v. Gerry Saum, Individually, and as Independent Executrix of the Estate of Susan M. Wood, Deceased; Cause No. 17-002742-CV-361; In the 361st District Court, Brazos County, Texas  Carrie McIver v. City of College Station; Cause No. 18-003271-CV-85; In the 85th District Court, Brazos County, Texas WKSHP052820 Minutes Page 2  Veronica Alejandra Ibarra v. The City of College Station; Cause No. 20000325CV361; in the 361st District Court, Brazos County, Texas B. Consultation with attorney to receive legal advice; to wit:  Legal advice regarding the FY20 funding agreements between the City and Experience Bryan College Station.  Legal advice regarding special election runoff to elect City Councilmember Place 4.  Legal advice concerning municipal regulation of short term rentals. C. Deliberation on the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer; to wit:  Council Self-Evaluation  City Manager  City Secretary Executive Session recessed at 6:37 p.m. 3. Reconvene from Executive Session and take action, if any. MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Crompton, the City Council voted six (6) for and none (0) opposed, to authorize the City Manager to prepare, sign and send on the City’s behalf, an advance written notice to Experience Bryan College Station notifying EBCS of the City’s termination of its current funding agreements with EBCS effective August 1, 2020, in compliance with the terms of said agreements. The motion carried unanimously. 4. Presentation, possible action and discussion on items listed on the consent agenda. Item 3.3 was pulled from Consent for clarification. (3.3): Mary Ellen Leonard, Director of Finance, explained that the banking and service fees associated with the acceptance of credit cards as a method of payment are charged to each department that accepts Visa, MasterCard and Discover. (3.4): Debbie Eller, Director of Community Services, gave a brief explanation of the tenant based rental assistance guidelines to assist College Station residents with rental assistance payments for College Station households affected by the disaster declarations due to COVID-19. (3.6): Carol Cotter, Planning & Zoning Commission, stated that this is a Semi-Annual Report on System-Wide Impact Fees for Water, Wastewater, and Roadway is required by law. (3.9): Natalie Ruiz, Director of Economic Development, stated that staff had begun looking at potential short-term leasing options for the existing police station building on Texas Avenue at the same time the International Leadership of Texas School was looking for a temporary space for their high school students, while a new building is being developed. The school currently owns and operates the educational facility located near the intersection of Longmire Drive and Graham Road that serves students from kindergarten through 8th grade. Starting this fall, the School will have their first high school students entering the 9th grade. Their plans are to add a grade level each year until they have all 9th, 10th, 11th, and 12th graders at one facility. Ideally, the permanent WKSHP052820 Minutes Page 3 high school building will be ready for students in the fall of 2023. The initial lease term is three years with the option for two, one-year extensions. 5. Workshop 5.1 Presentation, discussion, and possible action regarding the FY20 Proposed Bond Issuance. Mary Ellen Leonard, Director of Fiscal Services, presented the status of the proposed FY20 Bond issuance and the proposed issuance parameters. Mrs. Leonard explained some options related to changes in the FY20 Bond issuance based on recent economic events. The ordinances related to the parameters for issuance of certificates of obligation, series 2020 are schedule to be brought to Council for approval on June 11, 2020. Staff has strategically evaluated the impact of the series 2020 Certificates on the City’s ability to meet debt service requirements and the effect they may have on the ad valorem tax rate. The project savings and rescheduling has resulted in a change in the parameters as originally budgeted. The recommendation is to move forward with this issuance with the revised parameters that will be presented. The impact on the tax rate and utility rates has been reviewed based on the most current information and will continually be reviewed as part of budget preparation. FY20 General Government Proposed Issuance  Paid for from debt side of the Ad Valorem Tax Rate  Staff would like to reduce the proposed offering from the budgeted $20,715,000 to $2,210,000. Accomplished by: 1. Realigning anticipated needs for projects based on COVID 19, other factors and utilization of project savings - $3.1 million 2. Eliminating issuing remaining tranche for City Hall as CMAR contract indicated it will not be needed - $6.8 million 3. Adding no additional projects from the unfunded capital list - $4.2 million 4. Reassigning issued debt for Southeast Park to other projects - $4.4 million FY20 Utility Funds Proposed Issuance  Paid for from Utility Fund Revenue  Staff would like to reduce the proposed offering from the budgeted $28,340,000 to $21,075,000. Accomplished by: 1. Realigning anticipated needs for projects based on COVID 19 other factors and utilization of project savings - $3.0 million 2. Reassigning issued debt for the purchase of water rights to the Rock Prairie Elevated Storage tank - $4.3 million FY20 Refunding Proposed Issuance  Evaluating refunding the 2010 GO and 2010 thru 2012 COs  Amount $19 - $41 million  Average life remaining is 5.5 years  Possible Net Present Value Savings $1.4 - $3.9 million  Possible percentage savings on refunded bonds - 7.5% - 11.4%  Refunding savings must >= 5% to proceed WKSHP052820 Minutes Page 4 MOTION: Upon a motion made by Councilmember Nichols and a second by Councilmember Crompton, the City Council voted six (6) for and none (0) opposed, to move forward with the FY20 Proposed Bond Insurance as presented by staff. The motion carried unanimously. 5.2 Presentation, discussion, and possible action regarding the 2019 Incentive Compliance Report by the Brazos Valley Economic Development Corporation. Matt Prochaska and Chuck Martinez, BVEDC, stated that for 2019, six (6) projects under agreement were monitored for performance compliance by the Brazos Valley Economic Development Corporation on behalf of Brazos County, the City of Bryan, and the City of College Station. The incentive agreements with Nutrabolt closed in 2019 with all parties, as such no further monitoring is made. 2019 Compliance Report: Advanta US  November 2016 announcement to establish global biotech R&D center in College Station. January 2018 facility ribbon cutting ceremony.  $80,000 avg annual salary requirement: $95,257 (2019) Axis Pipe & Tube  During first 3 years of Agreement (2013, 2014 and 2015), no payment to the City. For every year thereafter, the payment is equivalent of 50% of the amount the City would have collected in Ad Valorem tax that year.  2019 performance exceeds contracts’ benchmark valuation + salary formula FUJIFILM Diosynth Biotechnologies Texas @ Bio corridor  BCAD 2017 valuation reflected partial facility and only real property –While the Company reported $73,236,000 improvements (real + personal property), the Company opted not to challenge BCAD 2017 valuation and consequently, 2017 incentives were foregone.  Since 2018, BCAD reflects the updated valuation of facility complex. LSPI  NOV 2017 ribbon cutting (met DEC 2017 requirement)  $62.4M facility investment (met $25M requirement)  BVEDC cash incentives paid ViaSat  JAN 19th 2017 groundbreaking  APR 10th 2018 ribbon cutting of $30M facility (exceeds $20M investment requirement) Wayfair  1st incentive grant released with $1.98M investment  2nd incentive grant released in July 2018  3rd / final incentive grant released in January 2020 MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Brick, the City Council voted six (6) for and none (0) opposed, to receive the compliance report. The motion carried unanimously. 6. Council Calendar Council reviewed the calendar. WKSHP052820 Minutes Page 5 7. Discussion, review, and possible action regarding the following meetings: Animal Shelter Board, Arts Council of Brazos Valley, Architectural Advisory Committee, Audit Committee, Bicycle, Pedestrian, and Greenways Advisory Board, Bio-Corridor Board of Adjustments, Brazos County Health Dept., Brazos Valley Council of Governments, Brazos Valley Economic Development Corporation, Bryan/College Station Chamber of Commerce, Budget and Finance Committee, BVSWMA, BVWACS, Compensation and Benefits Committee, Comprehensive Plan Evaluation Committee, Experience Bryan-College Station, Design Review Board, Economic Development Committee, Gulf Coast Strategic Highway Coalition, Historic Preservation Committee, Interfaith Dialogue Association, Intergovernmental Committee, Joint Relief Funding Review Committee, Landmark Commission, Library Board, Metropolitan Planning Organization, Operation Restart, Parks and Recreation Board, Planning and Zoning Commission, Research Valley Technology Council, Regional Transportation Committee for Council of Governments, Sister Cities Association, Spring Creek Local Government Corporation, Transportation and Mobility Committee, TAMU Student Senate, Texas Municipal League, Walk with the Mayor, YMCA, Zoning Board of Adjustments, (Notice of Agendas posted on City Hall bulletin board). Councilmember Nichols reported on the Transportation Committee. 8. Adjournment There being no further business, Mayor Mooney adjourned the workshop of the College Station City Council at 7:43 p.m. on Thursday, May 28, 2020. ________________________ Karl Mooney, Mayor ATTEST: _______________________ Tanya Smith, City Secretary