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HomeMy WebLinkAbout07/12/1989 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAYt JULY 12, 1989 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmembers Brown, Schneider, Haddox, McIlhaney, Gardner, Birdwell STAFF PRESENT: City Manager Ragland, City Secretary Jones, City Attorney Locke, Assistant City Manager Brymer, Assistant City Manager Woody, City Engineer Pullen, Fire Chief Landua, Management Services Director Piwonka, MIS Director Cowe11, Finance Director Harrison, Budget Director Schroeder, Assistant City Secretary Hooks STUDENT GOV,T LIAISON: Shannon Maloney VISITORS PRESENT: See guest register. Aqenda Item No. i - Discussion of Dolicy on use of Hotel/Motel tax funds. Mr. Glenn Schroeder, Budget Director, explained this item. He reviewed the city's policy on the use of Hotel/Motel tax funds. He noted that the State authorized cities to collect a local tax of 7%; currently the City of College Station collects 6% on room charges. He stated that the state statute specifically states the uses of these funds. Mr. Schroeder mentioned that the majority of funds in hotel/motel tax are dedicated to the following: (1) convention and civic center operations, (2) personnel and materials for registration of delegates, (3) advertising to attract tourists. Mr. Schroeder pointed out that the management and budget policy states that no more than 15 percent of the total tax or that amount which is collected at 1 percent, whichever is greater, may be used for the arts or historic preservation projects. Mr. Schroeder reviewed the requirements for outside organiza- tions. Councilman Birdwell asked Mr. Schroeder to clarify the statement referring to revenue in excess of collection at a 4% rate. Councilman Schneider asked Mr. Schroeder what percentage is allocated toward tourism. Mr. Schroeder replied that the city allocates approximately 2% to the Chamber for their activities. He mentioned other activities that are funded from the 007344 City Council Workshop Meeting Wednesday, July 12, 1989 Page 2 hotel/motel tax and are related to the promotion of tourism. Mayor Ringer pointed out that the state statute now requires the Chamber to hold a public hearing on their budget. Ms. Judy Rush, Vice President of the Hotel/Motel Association, strongly urged the Council to adopt the increase and allot it to be used for obtaining conventions. Councilman Schneider moved approval of the policy on the use of Hotel/Motel tax funds. Councilman Brown seconded the motion which carried unanimously, 7-0. &qenda Item No. 2 - Discussion of an amendment to Hotel/Motel Occupancy Tax Ordinance. Finance Director Bill Harrison briefly explained that the proposed ordinance will allow two changes to the hotel/motel tax as follows: 1) To increase the tax rate from 6% to 7% locally; and, 2) to require monthly reporting and remittance of the tax to the city. Mr. Harrison recognized Ms. Anne Bell of the Convention and Visitors Bureau. Ms. Bell introduced Mr. David Shellenberger, President of the Chamber of Commerce. He presented the Chamber's reasons for supporting the 1% increase. Mr. Hubbard Kennedy, representing the Chamber, gave a slide presentation and explained their request for a 1% hotel/motel tax increase. He introduced several Chamber of Commerce members and Hotel/Motel Association members and recognized their work. He presented a variety of statistics comparing other cities with College Station. Mr. Kennedy mentioned that 1% of the current revenue is roughly $120,000. Councilman Gardner asked if the Chamber receives funds from other sources. Mr. Jack Speer responded that he is not aware of any Convention Bureaus that operate from other sources, except the Houston Chamber of Commerce which obtains a large amount of membership fees. Mr. Gardner asked what the increased percentage would be allocated toward, personnel or additional brochures. Mr. Kennedy replied that a major portion of the increased funds will go toward support staff allowing them to travel the state to increase tourism to B/CS. He summarized the amount budgeted for each account of the Chamber. Councilman Haddox pointed out that B/CS is 9% behind the state average in occupancy rate. He added that the cities must create something that would enhance tourism. Mr. Kennedy stated that the debt service is $60,000 because of the Community Center; however, if this money was transferred out of general revenue, he suggested that the money be allocated back to the city for the development of an amphitheater. 007345 city Council Workshop Meeting Wednesday, July 12, 1989 Page 3 Councilman McIlhaney asked if the Chamber has been cooperating with surrounding counties on their effort for increased tourism. Ms. Bell replied that the Chamber has regular meetings with the other entities. She noted that the other counties have the historical sites and B/CS has the convention facilities. Councilman Gardner made several comments and asked questions about uses of the proposed $120,000 increase for promoting tourism. Mr. Shellenberger pointed out that 60% of the hotel rooms are vacant. He added that the Chamber is actively behind the Wolf Pen Creek development. Ms. Judy Rush spoke from the audience. She stressed that the tourism market is very competitive and if the Chamber does not go out and bring in more people to the community, the business will go to other cities. Ms. Jean Calhoun, manager of the Manor House Motel, spoke to the Council. She noted that many athletic events held in the community helped increase the occupancy in her hotel during the past year. She mentioned that the extra events which can be added to the community will increase business for the hotels. Mr. Shellenberger thanked the Council for hearing the Chamber's request. Councilman Birdwell stated that he supports the ordinance, but he has some concern about the date on which the taxes are to be paid. The City Attorney noted that this requirement can be changed. Discussion was held on how to word the change. Councilman Birdwell suggested that the city require the hotel/motels to report the number of people exempted from the state tax, as well as the gross revenue. &qenda Item No. 3 - Presentation of report on fiscal indicators. Mr. Schroeder introduced Chris Gavras, the MPA intern who documented much of the information in the report. Mr. Gavras stated that the report is compiled from various city resources, including records on revenues, expenditures, operating positions, and population figures for College Station. He added that the purpose of the report is to better inform citizens about municipal financial operations and conditions by tracking trends from 1980 to 1988, and forecasting future trends. He reviewed the revenue indicators and presented a graph showing the revenue sharing revenues. He also presented a graph on the sales tax indicators. Mr. Gavras discussed the transfer of revenues to the general fund as a percentage of general fund net revenue and property tax revenues. 007346 city Council Workshop Meeting Wednesday, July 12, 1989 Page 4 Mr. Gavras summarized the expense indicators. He noted that the expenditures per capita in the general and debt service funds has remained stable from 1983 through 1988. He referred to the number of employees per one hundred population. Mr. Birdwell commented that the number of employees has increased 15% since 1983; he asked if more services are offered. Mr. Gavras noted that the Parks system has expanded significantly. Councilman Haddox pointed out that three years ago the Council authorized the customer service program which would enable the employees to provide customer service while performing more services. He stated that it is very important to locate other cites to follow as a rule of thumb. Mr. Ragland replied that it is very difficult to find two comparable cities. He added that it is much easier to identify a certain department of comparable size where philosophies are similar, rather than using a general approach. Mr. Haddox stated that it would be good to obtain information from several cities for a comparison study. Mr. Harrison stated that this report has been compiled graphically to show the Council where potential problem areas are, as well as strong areas; this information will help the city react accordingly in the budget process. Councilman Brown left the meeting. Mr. Gavras referred to the General Fund Balance as a percentage of general fund net operating revenue. He showed a graph on the sanitation fund net income. He stated that long term debt now stands at approximately $19 million dollars. He presented a graph on the estimated overlapping debt that showed a large increase in 1988 due to the CSISD increase in debt when they sold $14,900,000 in bonds. Mr. Harrison described the graph depicting the capital outlay as a percentage of net operating expenditures. Mr. Gavras explained the final section of the report, community needs and resources, including population figures, employment and business activity. Mr. Gavras concluded his presentation by thanking the Council and staff for their continued support in the MPA intern program. Councilman Birdwell commented that this report was an excellent report. He made two suggestions for future use. He asked that the staff look at the revenues as a percent of the total revenue, using the same calculation for expenses. He also asked that the electric utilities be deleted from this percentage to achieve an effective concept. Mr. Birdwell recommended that in the future, the expense indicators be divided among each department to verify 007347 City Council Workshop Meeting Wednesday, July 12, 1989 Page 5 spending for individual services, library. such as police, fire, and Agenda Item No. 4 - Presentation and discussion of fiscal and budgetary policy statements. Mr. Schroeder explained that most of the Fiscal and Budgetary Policies are reiterations of the policies that council adopted last year during the budget process. He stated that other policies, unwritten but used by the council during the last five years, have been formalized. Mr. Schroeder reviewed the first section of the policy statements: Accounting, Auditing, and Financial Reporting. Councilman Birdwell commented on the rotation of auditors, II.B.3, and said that "every five years" is too long. He reviewed the second section of the policy statement, Operating Budget, and the third section, Revenue Management. Councilman Birdwell asked if the County Attorney provides a report of delinquent taxes to the city. Mr. Schroeder replied that the city receives some information, but staff is working to obtain additional information from the county. Mr. Schroeder explained the subcategory labeled User-Based Fees and Service Charges. Councilman Birdwell questioned why public safety is placed under Partial Fee Support (40-70%). Mr. Schroeder responded that the words "Ambulance Service" can replace "Public Safety" for clarity. Mr. Schroeder explained the next section, Expenditure Control. Councilman Birdwell asked for clarification of the statement "Central Control". Mr. Schroeder replied that this statement was derived from the City Charter. Mr. Birdwell further mentioned that he has a concern that the City Manager has authorization of control on expenditures when the items cross over the capital expense line. Mr. Ragland clarified that he would never authorize such expense unless previous approval was given by the Council. Councilman Birdwell commented that he was not comfortable with the wording of the statement. Mr. Schroeder discussed the following section, Asset Management. He covered three points in this section, Investments, Cash Management, and Fixed Assets and Inventory. He referred to the next section, Capital Budget and Program. He described several points in this section. He continued by discussing the next section, Financial Conditions, Reserves, and Stability Ratios. Councilman Birdwell pointed out that in the subcategory "Liabilities and Receivables,,, no distinction is made for write-off of ad valorem taxes. 007348 city Council Workshop Meeting Wednesday, July 12, 1989 Page 6 Mr. Schroeder discussed the next category, Treasury and Debt Management. He referred to the last section, Internal Controls. Councilman McIlhaney moved approval of the fiscal and budgetary policy statements. The motion was seconded by Councilman Gardner and was approved unanimously, 6-0, with Councilman Brown absent. Staff anticipates condensing these policies each year into one- two line statements in response to the action taken by staff on these policies. Mayor Ringer noted that he perceives the policies as guidelines/goals for the staff and council, and as an expression of City Council desires, not as requirements. Aqenda Item No. 5 - Discussion of city,s option to increase sales tax. Councilman Birdwell explained his purpose for preliminary discussion of this item. He stated that he had been unaware of the city's option to increase sales tax; he suggested that the Council be informed of this option. He added that in order for an increase of sales tax to become effective, an election must be held. The law also requires a reduction in the effective property tax. Mayor Ringer pointed out that the staff is currently working on a scenario to this issue; however, if the Council does not wish to proceed with further discussion of this topic, the staff can discontinue their research. Councilman Gardner commented that sales tax is a regressive tax. Councilman Schneider and Councilman Gardner stated their opposition to increasing the tax. Discussion continued. Councilman Birdwell pointed out that many cities have already adopted this increase. He stated that he is not proposing the increase in sales tax at this time; he thought it might be a good idea to begin looking into the option to do so. He noted that the timing would not allow the city to do anything about the matter this year, so no additional tax could be collected before 1991 anyway. Also, the City of Bryan would have an influence on the decision. He added that a sales tax increase would help put the utilities on a cost of service basis, by lowering the transfers of the utility fund to the general fund. The citizens would then be financing the city more in paying sales tax, and less in terms of rates on the utility bills. Further discussion was held. Mayor Ringer asked staff to continue working on this issue. 007349 City Council Workshop Meeting Wednesday, July 12, 1989 Page 7 Agenda Item No. 6 - Presentation and Discussion of Fire Station Siting Process. Fire Chief Landua explained this item. He discussed the process used to determine the best possible site for a fire station. He stated that $50,000 of CIP funds are available for a fire station location study. He pointed out that one important factor in choosing a site is the five-minute response time, which is acceptable to the insurance company, the Emergency Medical Director, and the Heart Association which recommends that Basic Life support be initiated in 4-6 minutes. Chief Landua presented a map showing the areas designated to each of the two existing fire stations. He stated that there are two methods available for a fire station location study. He referred to 1) a consultant's study of 4-6 months costing $20-000-$30,000; and, 2) a computer assisted program by Public Technology, Inc., in the amount of $18,250 to $25,000. He explained several advantages of this software package. Councilman Gardner stated that he does not see spending the money at this time for this particular need, rather, he preferred the same selection process which has been done in the past. Councilman McIlhaney asked if the software package could be utilized in other areas after the data is established. Mr. Landua replied that he was not sure. Councilman Haddox commented that spending money for a computer package is worth it, if it proves to make an accurate decision to save one life or property. Agenda Item No. ? - Presentation and discussion of Solid Waste Operations and discussion regarding solid waste recycling. Assistant City Manager Tom Brymer presented an overview of the solid waste collection and disposal operations. Mr. Joe LaBeau, Assistant Director of Public Services mentioned the possibility of a regional facility with the City of Bryan. He added that the landfill permit has been amended to maximize the land use facility on Rock Prairie Road. Mr. Mike Hester, Project Engineer, stated that the landfill will be increased from 60 acres to 70 acres. He stated that the amendment may be approved as soon as October of this year. Mr. LaBeau stated that the staff is looking into a 30 year maintenance responsibility for the city's facilities. Also, staff is encouraging mandated methane collection systems, and stronger requirements for groundwater monitoring. He discussed the landfill development plan for Rock Prairie Road in terms of physical development. He added that two major goals for the facility is to build an adequate reserve capacity for disposal, 007350 city Council Workshop Meeting Wednesday, July 12, 1989 Page 8 and to conduct the development at the site by the use of sanitation personnel and equipment. Mr. LaBeau reiterated that the permit amendment is in process, and for that effort some physical conditions requirements will require contract labor with a completion date of May '90. Mr. Jim Smith, the city's Sanitation Superintendent, gave a brief overview of the collection system. He presented five items for discussion. First, the collection crews currently operate under a task system. He has proposed a different approach called the route management process, in that each crew will be assigned a specific area of responsibility. Secondly, for this approach to be effective, the crew size would reduce from three men to two men, resulting in an initial collection cost savings of $50,000. Thirdly, in order to fulfill the full efficiency of the two man crew, the garbage collection ordinances would need to be enforced pertaining to the bag system. Mr. Smith referred to the fourth item relating to household requirements for infectious/hazardous waste. He added that the hazardous waste can no longer be included with other solid waste. The last item related to a study completed on the container situation. He recommended that the city own and maintain its dumpsters at an annual cost of $108,000, but delay this program until 1991. Mr. Brymer summarized the solid waste needs over the next 12-14 months in terms of collection. He concluded by stating that the city is continually moving toward cost of service, council issue no. 32 in 1988-89. He added that in accordance with council issue no. 15, (long range planning effort), the staff feels that they should examine the waste stream reduction and source separation techniques, and alternate disposal methods. Councilman Birdwell asked why the city has not enforced the mandatory bags ordinance. He suggested placing stickers on the cans to remind people that an ordinance exists which stipulates bags only. Mr. Ragland stated that numerous back injuries have been caused from lifting garbage cans. Mr. Brymer stated that an informative brochure is being prepared for the students returning to College Station. Councilman Schneider asked if staff is looking into separation of waste. Mr. Ragland replied that the staff is not prepared at this time to make a presentation on the topic of recycling. Mr. Birdwell referred to his letter to the council, written in regard to a limited recycling program. He pointed out several factors to this program. He suggested that the city conduct an experiment, by choosing a small area of town, with volunteers involved; then, see if the public accepts the concept. 007351 city Council Workshop Meeting Wednesday, July 12, 1989 Page 9 Councilman Haddox and Councilman Schneider agreed with councilman Birdwell's suggestion. Mr. Ragland stated that staff will continue looking at council's suggestions. Mayor Ringer commented that continued emphasis should be placed on informing the public about the current availability of containers placed for the collection of glass and aluminum. Aqenda Item No. 8 Discussion of a proposed ordinance amendinq the requlations relatinq to the wrecker business; and, a proposed chanqe in the fee schedule for annual permits to operate. Lt. Mike Patterson pointed out one change. He suggest inserting in the ordinance, an effective date being August 1. Agenda Item No. 9 - Council Concerns. Councilman Haddox stated that his new neighbor was very pleased to have a building permit processed in only three days, and was complimentary to the city staff. Councilman Gardner stated that 'he had previously asked that the discussion of policies regarding the funding of outside agencies be placed on the agenda. Mayor Ringer replied that this information will be discussed during the budget retreat. Mr. Gardner suggested that the council's top priority issues be placed in the newspaper. Mr. Ragland responded that he spoke with the EAGLE reporter and he intends to have a story covering these items. Mr. Gardner suggested that the council place an article in the newspaper letting the people know the council's programs for the coming year. Councilman Schneider reported that he has received several calls about the traffic situation on University Drive near the oampus. He reported that it is extremely dangerous. He asked if the staff could contact the Highway Department to see if they could change the signal patterns at University Drive and Church Street. Councilman McIlhaney reported that she attended the Community Center Advisory Committee. One problem addressed at this meeting was the school's intent to propose to the Council that Holik Street be closed. She said the committee questioned whether the city might consider reopening Timber Street if the closure of Holik is approved.. Shannon Maloney inquired about the walk signals on University Drive. She related her concern to the one expressed by Councilman Schneider. Councilman Birdwell mentioned that the minutes were not correct pertaining to the concern he had expressed about the one-way alleyway behind Southgate. He inquired about the Community Development audit report. Mr. Ragland replied that he authorized 007352 city Council Workshop Meeting Wednesday, July 12, 1989 Page 10 a special project, which consisted of a total audit of the CD program. This program was conducted by the HUD office. Mr. Birdwell expressed another concern regarding the removal of Channel 20 by Cooke Cablevision. He asked if the city would send a letter or resolution to Cooke Cablevision supporting the persons who called and expressed their opposition to the conversion. Aqenda Item No. 10 - City Manager Concerns. Mr. Ragland presented a status report covering several projects. He gave each councilmember an updated police department policies manual. Agenda Item No. 11 - Adjourn. Mayor Ringer adjourned the meeting at 7:50 p.m. ATTEST: City secret~Uian Jones APPROVED: Ma~o~ar~~Rin e~ 007353 GUEST REGISTER CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JULY 12, 1989 4:00 P.M. 13 14 15 16 17 18 19 10. 20 007354