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HomeMy WebLinkAbout10/18/1983 - Special Minutes City Council MINUTES SPECIAL MEETING COLLEGE STATION CITY COUNCIL TUESDAY , OCTOBER 18, 1983 5:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Halter, Councilmen Anderson, Boughton, McIlhaney, Prause, Reinke, Runnels. COUNCIL MEMBERS ABSENT: STAFF PRESENT: None City Manager Bardell, Assistant City Manager VanDever, Director of Planning Mayo, City Secretary Jones, Director of Capital Improvements Ash, City Attorney Denton, Assistant City Attorney Locke, Council-Coordinator Jones, Director of the Industrial Foundation Goehring, Administrative Assistant Nowlin. VISITORS PRESENT: See guest register. A~enda Item No. 1 - Discussion of M.U.D. development inside the city limits. City Manager Bardell presented the item. He explained that M.U.D.s outside the city limits are only able to finance seventy percent of water and sewer construction and that there is a provision which allows a M.U.D. within the city limits to finance 100 percent of the construction. He further stated that it allows them to maintain a separate taxing authority. He pointed out that the City of Sugarland has a successful development of this kind. He stated that the City of College Station has been trying to develop some elements which will allow for the formation of a M.U.D. within the city. City Attorney Denton discussed item number fifteen in his memorandum dated September 6, 1983. He explained that the use of the M.U.D. enables a developer to encourage quality development because of the availability of funds and requires him to reflect his ultimate land costs. He stated his approval of requiring disclosure that property will eventually face double taxation, to protect the purchasers. In reference to section (c), City Attorney Denton stated that districts will be approved only within the city limits because the city does not want to become liable for the M.U.D. bonds. Councilman McIlhaney asked if the MoU.D. is dissolved within the city, will the liability of the bonds then lie with the city. 00 .101 SPECIAL WORKSHOP CITY COUNCIL MEETING TUESDAY, OCTOBER 18, 1983 PAGE 2 City Attorney Denton stated that it would be at the discretion of the Council to allow the M.U.D. to dissolve. Councilman McIlhaney asked if the proposed boundaries for the M.U.D. had been determined. Mayor Halter replied that at this time the boundaries had not been determined. Councilman Reinke asked if the M.U.D. boundaries are going beyond the 2300 acres and if the property owners in Shenandoah and along Green's Prairie will be incorporated into the district. City Attorney Denton stated that the first district is not expected to expand. He further stated that the services will eventually tie into the multiple districts if and when they are approved. City Attorney Denton read section (e) and explained that the city will not approve expansion of any district, unless the city is informed of the intent at the time the original application is submitted for approval. Councilman Runnels stated that he anticipates that the city will refund ad valorem taxes to the district. Councilman Reinke asked if the city can deny the district annexation of additional area requested by petition of land owners. City Attorney Denton stated that the city never has to consent to annexing land into the district. He pointed out the primary abuse of M.U.D. is that developers saving front-end costs do not pass along these savings. City Manager Bardell stated that the two M.U.D. applications previously presented to the City of College Station had been denied. City Attorney Denton explained briefly each item in section (f). He stated that there can be no overlapping debt that exceeds twelve percent of the city's tax base. He further stated that Mr. Fetzer, the city's financial advisor, explained that the $25,000.00 administrative deposit is per district and that it is a non-refundable, compensatory fee. Councilman McIlhaney questioned the use of the term "deposit". She stated that since the $25,000.00 is non-refundable the term "fee" provides a more appropriate description. She requested that the phrase "fee per district" be added to statement number ten. Councilman McIlhaney asked if the city will be required to participate in oversized water and sewer. City Manager Bardell stated that some oversized participation will be required. 00 02 SPECIAL WORKSHOP CITY COUNCIL MEETING TUESDAY, OCTOBER 18, 1983 PAGE 3 City Attorney Denton stated that the M.U.D. is going to be encouraged to curb and gutter to improve quality of streets and drainage. He stated that it is up to the Water Commission whether these improvements can be funded through M.U.D. monies. City Manager Bardell explained the proposed "Capital Recovery Plan" and stated that it would cover capital expansion of the water and sewer system and oversized participation. He further stated that if the "Capital Recovery Plan" is implemented then the prorata ordinance, which is almost impossible to enforce, can be abolished. Councilman McIlhaney stated that she would like for City Attorney Denton to research the plan more thoroughly, prior to approval. The Council discussed the wording of the Resolution. City Manager Bardell stated that the Resolution states that the City of College Station would like to enter into some type of agreement, but does not obligate the city to a contract. City Attorney Denton stated the Resolution would merely give support to the utilization of a M.U.D. Agenda Item No. 2 - Consideration of Resolution pertaining to M.U.D. development and utility service agreements. Councilman McIlhaney moved to delay action until the Workshop Meeting on November 9, 1983 to allow the staff to obtain answers to some of the questions brought out in the meeting. Councilman Runnels seconded the motion which was approved by a vote of 5-2. FOR: Mayor Halter, Councilmen McIlhaney, Prause, Reinke, Runnels. AGAINST: Councilmen Anderson, Boughton. City Manager Bardell stated that the staff will resolve the questions brought out during the meeting and relay them to the Council through a memorandum. Councilman Reinke asked City Attorney Denton to recap the points he made during the meeting in a memorandum for the Council's recollection. Councilman Boughton pointed out a typographical error in Section A of the Resolution, the word "with" should be "within". 00 103 SPECIAL WORKSHOP CITY COUNCIL MEETING TUESDAY, OCTOBER 18, 1983 PAGE 4 Agenda Item No. 3 - Adjourn. Mayor Halter adjourned the meeting. Attest: Dian Jone ,~ity Secretary 00 10 .