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HomeMy WebLinkAbout08/12/1987 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmen Boughton, Haddox, Jones, Gardner, McIlhaney COUNCIL MEMBERS ABSENT: Councilman Brown STAFF PRESENT: City Manager Cole, Director of Capital Improvements Ash, City Secretary Jones, City Attorney Locke, Director of Public Utilities Woody, Director of Planning Callaway, City Engineer Pullen, Deputy Finance Director Schroeder, Purchasing Agent McCartney, Public Information Officer Calliham, Council Coordinator Hooks STUDENT GOV'T LIAISON: Kevin Buchman VISITORS PRESENT: See guest register. Agenda Item No. 1 - Council Concerns. Councilman McIlhaney reported that she has had inquiries from junior high school students interested in starting a bicycle club and she suggested that this event be sponsored by the Parks De- partment. She reported on the grave condition of Sebesta Road and encouraged the county to use part of its funds for repair work. Councilman Haddox commented that the City should continue to beautify the area south of the city limits where the highway undergoing construction. Councilman Boughton asked if trail brochures are available for Lick Creek Park. She mentioned that the brochure holder placed at the park is empty. Mayor Ringer noted that the City Affairs Committee should meet to review the Community Center ByLaws. Also, he noted that Gary Kappel has written a letter requesting that the City fly a flag representing the POW-MIA. Mayor Ringer asked that the Council members provide comments to him, and consideration will be held at a later meeting. 06525 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 Page 2 Agenda Item No. 2 - City Manager Concerns. City Manager Cole reported no concerns. Agenda Item No. 3 - Staff report on evaluation of Municipal Utilit~ Districts. City Manager Cole introduced this item. He stated that he met with Mr. Bill Fitch in regard to Mr. Fitch's concern for the utilization of a MUD District to fund infrastructure for his development, Texas Centroid Ranch. Subsequently, Mr. Cole orga- nized a task force comprised of staff members; he asked each mem- ber to research municipal utility districts and prepare an eval- uation report. He noted that the City Council has the authority to approve or disapprove the creation of a Municipal Utility District within the city's jurisdiction. Director of Public Utilities Director John Woody explained that the committee's report addresses the areas of legal, planning, financial, and engineering. He mentioned that the staff visited the City of Austin and met with City of Austin officials respon- sible for management of MUD Districts. Deputy Finance Director Schroeder presented the financial aspects f utility districts. He referred to the three major functions of a utility district: a) construction of the infrastructure; b) maintenance and servicing of water and sewer lines; and, c) providing services such as billing, collection and customer services. Mr. Schroeder pointed out an important financial consideration of a utility district - the funding can be tax supported and isolated to those served in the district. The major issue to be faced in allowing a utility district to be formed is debt capacity. He added that this will directly affect the city because when the city wants to issue debt, rating agencies will consider the city's overlapping debt as well as the direct debt. Other taxing entities, such as school and county, will also be affected. Mr. Schroeder mentioned that frequently a problem occurs when the additional tax rate associated with the district is not reported to the homeowner at the time the home is purchased. The city may become involved as a result of the resentment by irate citizens. Mr. Schroeder explained the ramifications of the takeover of a MUD District by the City, and the obligations that would be in- curred. CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 Page 3 Mayor Ringer expressed concern that there may be issues addressed to the council by irate citizens within the city and county, if the district were dissolved and the city took over the obligated debt. City Manager Cole pointed out that the residents in the MUD will pay a utility district tax rate in addition to the county, school, and city tax rate. City Engineer Pullen explained the Subdivision Regulations with which the developer must comply. He stated that it may be advan- tageous for a city to reduce the requirements normally placed on land development in a given MUD and/or contribute to the cost of the development through greater oversize participation. As part of the consent agreement, the City could recuperate some of the costs through capital recovery fees and require maintenance of streets, service lines, etc., until the indebtedness is paid. Mr. Pullen illustrated the development time rate occurring in Southwood Valley. He further explained that in a MUD District a city could consider the entire area for oversize participation, reducing the total amount of oversize participation rather than paying for oversize participation for one section at a time. Director of Planning Callaway listed three types of utility dis- tricts frequently utilized, including Fresh Water Supply Dis- trict, Water Control Improvement District, and Municipal Utility District. The Municipal Utility District is apparently the most common type of district currently utilized for provision of mu- nicipal services. He explained the use of a consent agreement as a potential advantage for the city and noted it allows a 120-day negotiating period. He explained other advantages for the City, then described several disadvantages given in the report. One disadvantage he noted is that the 120-day period is a relatively short time for securing negotiation agreements. He further ex- plained the advantages and disadvantages for MUD Homeowners, and the advantages and disadvantages for MUD Developers. He reported that in general, the City of Austin characterized MUDs as a last resort to be used only when the city could not provide services. He said that MUDs are not regarded highly by the City of Austin, but all proposed MUDs in its ETJ or corporate limits have been approved. ' 06325 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 Page 4 City Attorney Locke discussed the statutory provisions of the Municipal Utility District and the negotiation time period in- volved with the consent agreement. She stated that it is the staff's opinion that the request received by the city is charac- terized as a financing tool and not a facility extension tool for the City or developer. She added that the City is in the posi- tion to provide services to the property. Ms. Locke listed three things in the Austin Consent Agreement which she feels should be incorporated into the College Station Agreement. 1) Limitation on expenditures for financial consul- tant fees. 2) Staff review of the bond election ballot prior to the publication. And, 3) developers not be compensated for easements or rights-of-way conveyed to the district. Councilman Gardner asked who is responsible for payment of capi- tal recovery fee. Ms. Locke replied that it is the responsibil- ity of the purchaser of the lot and is usually paid when a build- lng permit is issued. Councilman Gardner asked if there is a governmental entity for the MUD. Ms. Locke replied that the MUD is governed by its elected Board of Directors, unless the consent agreement states otherwise. Mayor Ringer suggested that the Development Policies Committee comprised of Pat Boughton-Chairman, Sara Jones, Jim Gardner, and Fred Brown (alternate) work with staff to determine items which should be required in the agreement. Also, he asked that inter- ested persons be notified that the Development Policies committee and staff will work on the agreement for 90 days. After general discussion, Mayor Ringer asked that each councilman closely review the staff report and compile a list of items which should be required. A~enda Item No. 4 - Discussion of telecommunications project - installation of overhead cable network. Purchasing Agent McCartney explained that the original estimate for this item was $200,000. The bid submitted from ASI was $142,866.20, approximately $25,000 less than anticipated. The life expectancy of the cable lines is 25 years. She noted that the figures shown do not refer to maintenance cost. 06326 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 Page 5 A~enda Item No. 5 - Adjourn. Mayor Ringer adjourned the meeting at 5:30 p.m. APPROVE D: ATTEST: ~o r "06327 GUEST REGISTER CITY COUNCIL WORKSHOP MEETING WEDNESDAY, AUGUST 12, 1987 4:00 P. M. 4. 19. 5. 20. 6. 21. 7. 22. 8. 23. 9. 24. 10. 25. 11. 26. 12. 27. 13. 28. 14. 29. 15. 30. 006328