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HomeMy WebLinkAbout03/09/1988 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, MARCH 9, 1988 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmen Boughton, Haddox, Gardner, McIlhaney COUNCIL MEMBERS ABSENT: Councilman Brown STAFF PRESENT: Acting City Manager Ragland, Director of Capital Improvements Ash, City Engineer Pullen, Assistant City Engineer Smith, Assistant to the City Manager Piwonka, Budget Director Schroeder, Finance Director Harrison, Utilities Office Manager Albright, City Attorney Locke, Director of Parks and Recreation Beachy, Aquatics Supervisor Czabuniewicz, Assistant Director of Parks and Recreation Cisneros, Public Information Officer Calliham, Council Coordinator Hooks STUDENT GOV'T LIAISON: Kevin Buchman VISITORS PRESENT: See guest register. A~enda Item No. 1 - Council Concerns. Councilman Boughton reported her concern about the deteriorating condition of Mr. Andy Anderson's home. She asked staff to fol- low up on a time when the house will be ready to move. Acting City Manager Ragland responded that he will look into this. Councilman Gardner reported that he noticed in the B-CS EAGLE an- advertisement for bids for architectural services for the city hall renovation. He asked if this was discussed by the Council. Mayor Ringer responded that this discussion was held during the presentation of the MIS Plan and added that it is a rearrangement of space at City Hall. Mayor Ringer mentioned that he received a call in regards to a banner being placed across Texas Avenue displaying Parents Week- end. He said that Parents Weekend is a con~nunity service project, and there should not be a problem with hanging this banner. Mayor Ringer received petitions to legalize bingo in College Station from Mr. Ron Gay of St. Thomas Aquinas Church. The City Secretary will verify that 500 signatures are valid and if so a public hearing will be scheduled for the March 24th council meeting. '06576 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, MARCH 9, 1988 Page 2 Agenda Item No. 2 - City Manager Concerns. Acting City Manager Ragland reported that he will be on vacation next week, March 14-18, 1988. A~enda Item No. 3 - Presentation of 1988 Award of Excellence in Aquatics to the City of College Station by the National Recrea- tion and Park Association. Mr. Charlie Szabuniewicz, Aquatics Supervisor and Mr. Steve Beachy, Director of Parks and Recreation came forward to present Mayor Ringer a plaque for Award of Excellence in Aquatics pre- sented to the City by the National Parks and Recreation Associ- ation. Mayor Ringer noted his appreciation and asked that this plaque be displayed in the Parks Office. A~enda Item No. 4 - Discussion and recommendation to award purchase of peripherals (printers & CRTS's) for Utility Billin~ System. Assistant to the City Manager Piwonka presented the item. She stated that thirty-eight requests for proposals for the peri- pherals were sent out and only three requests were received. Mr. Chip Collins of A&FCS explained that the staff has recom- mended award of purchase for the equipment to Harwood Inter- national and NCR Corporation. The total costs involved were $27,880.50 for two Genicom Line Printers, fifteen ADDS Terminals from Harwood International, and eleven 80 Column Matrix Printers from NCR Corporation. Ms. Piwonka noted that consideration of this item will be on the Thursday night agenda. A~enda Item No. 5 - Discussion of fundin~ alternatives with the City's Financial Advisors. Finance Director Harrison announced that Mr. Bruce Albright has been selected as the new Utilities Office Manager. Mr. Harrison introduced Mr. David Fetzer and Mr. Pete Fisher of Moroney, Beissner and Company, the City's Financial Advisors. Mr. Fetzer introduced Mr. Paul Martin, an attorney with McCall, Parkhurst, & Horton. Mr. Fetzer explained to the Council why the city should consent to a new bond counsel. He stated that one partner retired from Baker & Botts, and the other counselor joined LCRA in Austin. Mr. Fetzer recommended Mr. Paul Martin as the city's new bond counsel. -,06577 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, MARCH 9, 1988 Page 3 Mr. Fetzer explained that in 1981, the city issued certificates of obligations for land acquisition and set up a "balloon" prin- cipal payment maturing July 15, 1988. Mr. Fetzer stated that something must be done to restructure this payment. Also, another financing problem exists in purchasing the computer soft- ware and hardware over the next two to three years. He sug- gested that the city issue sufficient contract obligations to purchase personal property until July when the "balloon" matures. Then sell an issue of General Obligation Refunding Bonds to both refund the Certificates of Obligation and the Con- tract Obligations. The closing date of this transaction would be July 15, 1988. In summation, we would be selling one issue of refunding bonds as the permanent solution for both problems. Councilman Haddox asked how much cost were associated with this transaction. Mr. Fetzer replied that the total package would be approximately $3,000,000 or 3% of the issue. Mr. Harrison pointed out that this refinancing will have no ef- fect on the current tax levels in the community. There are existing revenues coming into the City to finance both the new issuance of debt and refinancing the "balloon" payment. He asked that the refinancing of the "balloon" payment be scheduled for repayment on June 27, 1996. That date coincides with the payment due date from the Economic Development Foundation of $3,000,000 due to the City. Discussion was held regarding the sale of land to the Economic Development Foundation. A~enda Item No. 6 - Discussion of DroDosal from A&FCS for Solid Waste Rate analysis and financial planning project. Budget Director Schroeder described this item. He noted that staff has considered a plan to do an in-depth study of rates and costs of service in the City's solid waste operations. He also noted that the University and the City of Bryan have initiated a proposal to study the solid waste operations on a county-wide basis. He noted the urgency to look in-depth at the city's solid waste operation. The staff is proposing to enter into a contract with A&FCS to conduct this study. Mr. Schroeder introduced Mr. Lewis McClain and Ms. Becky Brooks of A&FCS. Mr. McClain ex- plained three phases would be involved in the study. 1) cost of services analysis; and 2) financial plan; and 3) model transfer and personnel training. He referred to their recent work com- pleted in the City of Carrollton. Aq6578 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, MARCH 9, 1988 Page 4 Councilman Gardner asked if A&FCS utilizes an engineering firm. Mr. McClain replied negatively. He explained that the city would engage an outside engineer or participation may be utilized by the City Engineer. Councilman McIlhaney asked if this study is comparable to the water, sewer, electric rate study already conducted. Mr. Schroeder replied that this study is fairly similar to the electric rate study, staff hopes that this study will project further into the future as to the needs of electric rates. Coun- cilman McIlhaney asked if the City is obligated to finance studies being conducted by other entities. Mayor Ringer replied that the initial interest came from the University, nevertheless, the city is not interested in the financial input of other studies. Mr. Schroeder stated that the main reason for this study is to determine the cost for each particular type of service. He also stated that the Enterprise fund is in good physical condition. Mr. Ragland added that in the last twelve months two decisions were made regarding the landfill. 1) the method of operation changed from the trench method to an aerial fill. The costs have not been analyzed since this change became effective. Also, 2) the permit has been amended which will double the life of the landfill, costs need to be analyzed since the new permit has been in effect. Mr. Ragland further emphasized that from year to year the revenue collected has paid for operation expenses. The City would like to identify the costs in a 20 year plan, which is a realistic plan, for instance, replacement costs. Councilman Haddox asked if anyone knew the cost associated with closing the landfill. Mr. McClain replied that in their most recent study they determined the closing costs for a land- fill. The computer models will be used in determining these costs. Councilman McIlhaney asked if this study will be able to tell us alternatives of landfill operations. Mr. McClain stated that the firm will show what it is costing now in terms of how the land- fill is operated at this time. Mr. Ragland explained that this study establishes a base so that we may look at alternatives. The operation of the landfill may change over the next 20 years. -06579 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, MARCH 9, 1988 Page 5 Councilman Gardner asked how many solid waste studies this firm has completed. Mr. McClain replied that their firm has conducted 1-12 water/sewer rate studies, and 1-2 electric rate studies. They recently completed a solid waste study for the City of Carrollton. In addition, the firm was worked with a dozen cities in their budgetary process. Councilman Gardner asked if the Council had a role in the selection process of a firm, and if discussion was held about the study. He added that the staff will be giving a lot of their time in this study. Mr. McClain replied that there will be heavy staff involvement in planning, in terms of growth, employees would be the resource people. A&FCS will structure the model applying good cost applications. Mr. Ragland mentioned that A&FCS has different strengths from local consulting firms. They have background in management, financial matters, and computer analysis. This is the basis from which the staff has recommended A&FCS. Mr. Ragland pointed out that the staff is asking A&FCS to create a model so that the staff can update the program whenever needed. A~enda Item No. 7 - Adjourn. Mayor Ringer adjourned the meeting at 5:10 p.m. ATTEST: Dian J~, City Secretary APPROVED: 06580 ~ ~EGISTER CITY (IL~CIL ~D~H(SHOP ~ING ~]~SDAY, MA~2H 9, 1988 4:00 P.M. 11. e 12. 13. 14. 15. 16. ® 18. e 19. 10. 20. 006581