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HomeMy WebLinkAbout06/24/1987 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmen Boughton, Jones, McIlhaney, Haddox, Gardner COUNCIL MEMBERS ABSENT: Councilman Brown STAFF PRESENT: City Manager Cole, Assistant City Manager Ragland, City Attorney Locke, City Secretary Jones, Director of Capital Improvements Ash, City Engineer Pullen, Utilities Office Manager Piwonka, Assistant City Engineer Smith, Director of Planning Callaway, Community Development Director Fette, Director of Public Utilities Woody, Energy Specialist Shear, Public Infor- mation Officer Calliham, Council Coordinator Hooks STUDENT GOV'T LIAISON: Kevin Buchman VISITORS PRESENT: See guest register. Agenda Item No. 1 - Council Concerns. Councilman Gardner mentioned that a legitimate concern should be expressed toward the potential new sanitary landfill site in Bryan. City Manager Cole replied that concern has been expressed and Bryan City Manager Ernie Clark has stated that an intensive soil study will be conducted. After its completion, the study will be available to the College Station Council. Mayor Ringer mentioned that the Council and City Manager have received an invitation to a dinner meeting with Humana Hospital on July 16, 1987 at 5:30 p.m. Also, an invitation has been received from the City of Huntsville for the Great American Weekend July 3-5, 1987. Mayor Ringer acknowledged that the Department of Housing and Urban Development has recognized the City of College Station Community Development Division for the Fairview Neighborhood Revitalization Projects for 1986-87. Mayor Ringer asked that this item be placed on a future agenda for a formal presentation of the certificates of award. "06240 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 2 Agenda Item No. 2 - Cit~ Manager Concerns. City Manager Cole noted that the staff and the city's financial advisor have been observing the bond market for some time, and they believe that the time has come to consider refinancing some general obligation bonds that the city still has outstanding. Mr. Cole stated that the preliminary figures presented to him show a nice savings in debt service. Mr. Cole said that he will notify the Council if a special workshop meeting should be needed next week for discussion of this proposal. Agenda Item No. 3 - Discussion of 1987 Load Management Program. Utilities Office Manager Linda Piwonka and Energy Specialist Charlie Shear explained this item. Ms. Piwonka explained that the Load Management Program has suc- ceeded in the past three years saving the City approximately $500,000 each year. These savings were gained through several factors, including (1) citizens participation, and (2) the impact of the GSU contract. However, the new contract with GSU is al- lowing an incentive to the City to encourage load growth, as any growth will be given to the City at an extremely low rate. Ms. Piwonka explained that a Load Management Program at this time will result in an annual savings of approximately $4.00 to the average residential customer. The staff feels that because of the small amount involved, the customer's incentive to save will not be the same as in the past. The staff's recommendation is to set aside the load management program for this year and emphasize on year round projects such as educational programs. Councilman Haddox asked if staff has figures available to show last year's savings to the consumer. Ms. Piwonka replied that the wholesale costs savings to the City was approximately $585,000. Ms. Piwonka stated that programs are being implemented relating to the Building Code, future basic and efficiency codes, star rating systems for builders, etc. She added that there are daily audits conducted to teach conservation. She noted that thirty- one apartment complexes participated in an apartment rating system. Councilman McIlhaney asked if staff has received calls 06241 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 3 from previous years participants inquiring about the 1987 pro- gram. Ms. Piwonka replied that she has received several calls from commercial customers who are interested in the rate struc- ture; she noted that such calls usually are received closer to the month of August. Councilman Haddox moved to discontinue the Load Management Pro- gram in 1987, yet keep it aside for future need, and to develop other programs for educational needs. Councilman Boughton seconded the motion which carried unanimous- ly, 6-0. A~enda Item No. 4 - Discussion of proposed statement of Community Development ob3ectives and pro3ected use of funds 1987-1988. Community Development Director Dan Fette noted that this item was included to allow the Council an opportunity to Msk questions about the Community Development proposals. Councilman Boughton asked for the reasons $7,000 was reallocated for the Lincoln Center. Mr. Fette replied that improvements at Lincoln Center have been ongoing since the original funds were allocated in 1983. The funding for the project was incurred during the time the funds for improvements of Wayne Smith Park were allocated. He noted that the Parks Department decided to defer the remaining improvements for Lincoln Center and concen- trate on improvements for Wayne Smith Park. Subsequently, the Wayne Smith Park is complete. Mr. Fette noted that the real- location of monies for Lincoln Center is encouraged by the Housing and Urban Development. The proposed amount for Lincoln Center improvements is $35,000. Councilman Gardner asked what use is intended for the funds for the Economic Development Foundation. Mr. Fette replied that the Community Development funds can be used for certain Economic Development activities. To date, the City of College Station has not chosen to use any of the CD monies for such activities. He further stated that HUD has encouraged the City to address the possibilities and perhaps fund certain activities. Mr. Fette stated that funding for a realistic study could be combined with other monies to include goals set by other departments. Councilman Gardner asked why 15% was applied to $650,000 and did not include the reallocation monies of $101,000. Mr. Fette re- plied that HUD places restrictions allowing that no more than 15% 06242 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 4 may be applied from the block grant in a particular year. Councilman McIlhaney asked if any outside agencies who came to the Council with requests were considered for Community Develop- ment funding. Mr. Fette stated that most of the agencies who re- quested funds were approved but not to the level of full fund- ing. Councilman Gardner asked Mr. Fette to explain the percentage of 20% for administrative costs. Mr. Fette explained that much work by the Community Development Staff relates to housing assistance activities; and, HUD requires that no more than 20% be allocated to administrative costs. Agenda Item No. 5 - Discussxon of 1987 funding requests from outside agencies. Deputy Finance Director Glenn Schroeder stated that this item gives the Council an opportunity to look at the requests from outside agencies which are recommended for funding from the Com- munity Development budget. Mr. Schroeder described a schedule listing the outside agency requests for funds. He pointed out that the $2,000 request from Stepping Stone has been withdrawn. Also, a formal request has not been received from the Brazos Val- ley Community Council; therefore, funding has not been recom- mended at this time. Mr. Schroeder stated that the requested $10,000 for the Mayor's Committee for Disabled Persons has been recommended for funding from Community Development. The additional $6,000 request for another bus is not recommended because HUD states that if the City provides community development funds for the purchase of an asset, the City will be responsible for the inventory, manage- ment, and maintenance of the vehicle. Mr. Fette added that this arrangement would become a burden to the Community Development Division. Assistant City Manager Ragland commented on efforts to fund the bus through the Brazos Transit Authority and enable the BTA to become responsible for the vehicle. Mr. Schroeder explained that $17,000 is recommended for funding to the Maternal and Child Health Clinic. Other requests include MHMR, for $60,000 from the City and $40,000 from Community Devel- opment Fund. Recommended funding is $32,000. Brazos County Adult Literacy Council requested funding of $13,000 and proposed recommended funding is $10,000. Brazos Food Bank requested 06243 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 5 $4,800 and recommended funding is the same. Mr. Schroeder stated that it is the city's policy to keep funding generally the same as last year. Mr. Fette noted that the two major considerations given to each request are, first, the ap- propriateness of funding a particular agency with Community Development money, and secondly, what monies have been allocated in the past to each agency. Thirdly, the financial need of each agency is considered. He stated that the Brazos Maternal and Child Health Clinic and MHMR have fiscal years different from the City's fiscal year. The funding recommended provides less fund- ing to these agencies for a shorter period of time in one year. These agencies may come back at the City's next budget year and request additional funding from Community Development funds to coincide with their own fiscal year. Mr. Schroeder commented that $40,000 funding was granted to MHMR last year from Community Development funds and $14,549 funding was allocated from Revenue Sharing Funds. Mr. Schroeder stated that the Finance Office will provide an at- tachment to the notification letter for the agencies to describe their funding needs. City Manager Cole reported that the City Attorney's office is working on a contract for Council's con- sideratlon which authorizes the City to enter into an agreement with the agencies for reporting requirements by the C~ty. Agenda Item No. 6 - Discussion of construction schedule for State Highway 6. C~ty Engineer Pullen presented this item. He introduced Mr. Pat Wllliamson, Supervising Resident Engineer, District 17 of the State Highway Department. Mr. Pullen presented each council member a handout describing the traffic routes during the construction phases of the project. Mr. W~lliamson explained the sequence of events associated with the Highway 6 project. He noted that three interchanges will be constructed, as follows: Dartmouth Road interchange, Rock Prairie Road interchange, and Greens Prairie Road interchange. The construction will be on-going for all three interchanges at the same time. Mr. Williamson noted that the proposed construc- tion date is the latter part of July and the first phase will probably begin at Rock Prairie Road with the removal of dirt. 06244 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 6 Councilman Gardner asked if there is justification for curb and gutter at the frontage roads. Mr. Williamson stated there is no need for curb and gutter. Mayor Ringer and Councilman Boughton asked if the exit and en- trance roads to the bypass would be located very close to the in- tersections. Mr. Williamson replied that the exit and entrance roads will be 600-800 feet away from the cross roads. Mr. Williamson added that all overpasses should be completed at the same time. City Manager Cole asked if the Highway Department considered emergency routes to Humana Hospital. Mr. Williamson explained that the contractor has designed the traffic control to accom- modate the construction in coordination with Humana Hospital. Agenda Item No. 7 - Discussion of proposals for use of surplus City Property at 101 Church Street. City Manager Cole stated that two letters have been received re- questing consideration of proposed uses for the old City Hall site at 101 Church. Interest in the property has been expressed by Browne Real Estate and by John Raney of the Northgate Mer- chants Association. The staff has determined that the city has no future need for the site. Mr. John Raney stated that the Northgate Merchants Association have expressed an interest in maintaining this property as a parking lot. Mayor Ringer stated that the building is not recommended for use by anyone because it is not structurally dependable. Councilman Haddox asked Mr. Raney if he thought the Merchants As- sociation would be interested in purchasing the property. Mr. Raney stated that his intentions would be to place a parking lot on the property, but the Association could research the idea of purchasinG the property. Councilman Jones commented that the city condemn the structure, but keep the property. City Manager Cole stated that the staff is considering adding to the specifications a clause stating that the owner would be 06245 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 7 responsible for demolishing the structure. He also stated that a competitive bid process would be required to sell the property. The council directed the staff to prepare a bid proposal package for purchase or lease of the property. Mayor Ringer commented that an advantage to the city in the purchase or lease of the property would be that the expense of demolishing the building could be included in the transaction. He directed the staff to include in the specifications that it will be the responsibility of the purchaser to demolish the structure. Mayor Ringer added that the disposition of the lots could be accomplished by selling to more than one buyer. Agenda Item No. 8 - Discussion of council priorities. City Manager Cole stated that staff hopes the Council will reach a conclusion regarding the most important council ~ssues. Councilman Haddox stated that the parks issues is very important to keep in mind. Mayor Ringer suggested that a council committee could discuss such issues as: funding policy for non-profit organizations and the legality of our use of hotel/motel taxes. The council concurred to direct the staff to proceed with Items 1-25. City Manager Cole stated that a work plan will be devised for each issue and brought back to the Council for their considera- tion. Agenda Item No. 9 - Discussion of Lone Star Municipal Power Agency budget. City Manager Cole explained that the primary advantage in partic- ipating in the Lone Star Muncipal Power Agency is the ability to f~nance projects. A significant impact on the City is that LSMPA accepts the financial debt. He stated that the staff has recom- mended that an extensive study be conducted to review power alternatives available. The study may conclude whether or not the City should be a participant in LSMPA. He further stated that the Council has two options to determine the feasibility of funding LSMPA in this fiscal year's budget. First, the City of College Station may consider funding the study while continuing as a member of the LSMPA, and allocate partial funding to LSMPA. .06246 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 Page 8 Secondly, the Council may consider withholding funding to LSMPA and to conduct the study to determine the need for continuous support to the LSMPA. Mr. Cole pointed out that the Executive Director of LSMPA, North Bardell, was concerned that if the City did not fund LSMPA in the coming fiscal year, on-going projects by LSMPA would be affected. The option to withdraw funding would also affect some of the cur- rent obligations. Mr. Cole explained that the City currently has outstanding payments of $46,143.00 due to Vinson & Elkins. Mr. Cole noted that Mr. Bardell is proposing that the Council fund $58,078.00 to pay outstanding bills due and allow the agency to continue at the current level. Mayor Ringer noted that the costs for the study conducted by College Station alone would probably be the same costs as the city's share for a study conducted by LSMPA. Mayor Ringer sug- gested that the LMSPA board members modify their budget to re- flect the proposed budget as submitted to the Council. He noted that the funds proposed in the city's budget toward LSMPA could be allocated at a reduced rate. Councilman Haddox concurred. City Manager Cole pointed out that the City is legally obligated to pay its portion of legal fees to Vinson & Elkins of $46,143.00. Councilman McIlhaney stated that she hopes the city wlll be able to pay other liabilities without raising the adder. Mr. Cole re- plied that the Council previously agreed to fund LSMPA through June 30, 1987 from the energy rebate fund and not place an adder on utilities. Presently, no "adder" is placed on College Station utilities. Mr. Cole noted that an adder of .0035 was allowed to accommodate LSMPA budget in anticipation that they would conduct the study. Mr. Cole clarified that the proposed $123,978 listed for LSMPA in the operating budget does not reflect including an adder. Agenda Item No. 10 - Adjourn. Mayor Ringer adjourned the meeting at 6:25 p.m. ATTEST: Dian Jones, APPROVE D · ~yor "06247 GUEST REGISTER CITY COUNCIL WORKSHOP MEETING WEDNESDAY, JUNE 24, 1987 4:00 P.M. 17. 18. 19. 20. Sm 21. 22. 23. 24. 25. 10. 26. 11. 27. 12. 28. 13. 29. 14. 30. 15. 31. 16. 32. 006248