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HomeMy WebLinkAbout11/11/1987 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 7:00 P.M. COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS ABSENT: STAFF PRESENT: STUDENT GOV'T LIAISON: VISITORS PRESENT: Mayor Ringer, Councilmen Boughton, Haddox, Brown, Gardner, McIlhaney Councilman Jones Assistant City Manager Ragland, City Secretary Jones, City Attorney Locke, Public Utilities Director Woody, Finance Director Harrison, Budget Officer Schroeder, Accounting Super- visor Hubbard, Personnel Director Dickson, Assistant Personnel Director Rose, Public Information Officer Calliham, Council Coordinator Hooks Kevin Buchman See register. Mayor Ringer opened the meeting and stated that Councilman Jones would not be present. AGenda Item No. 1 - Council Concerns. Councilman McIlhaney referred to the improvements underway on State Highway 30 and suggested that it might be an appropriate time to ask the Highway Department to switch traffic signal lights at Highway 30 and the East Bypass to provide for a pro- tected left turn lane. Councilman McIlhaney reported that recent rains caused a substan- tial amount of dirt and clay to pile up at the new Wal-Mart site; she asked about having this dirt cleared from Texas Avenue. Councilman Gardner commended Peggy Calliham and the city staff for their involvement with "Youth Government Day". Councilman Gardner reported his concern about policies and prac- tices of the Council in relation to the "Open Meeting Law." He suggested that this topic be discussed at a workshop meeting, possibly one conducted with members of the news media and perhaps Senator Caperton. He referred to the closed session items shown "06413 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 2 for the current workshop meeting and regular meeting; he ques- tioned whether the auditor's report needed to be discussed in executive session, and, if the Economic Development Foundation's report was an appropriate closed session item. City Attorney Locke responded that the law does not limit reports from the staff to the three traditional subjects for closed ses- sion. She added that she will make copies of her previous memo- randum regarding this topic and provide Mr. Gardner a copy. Student Gov't Liaison Kevin Buchman reported that he has received calls about the potholes at Stallings and University Oaks. He mentioned that a bad odor is noticeable in the area of Spring Loop during the evening hours. Mayor Ringer stated that this odor is from the Bryan Sewer Plant. He asked staff to contact the City of Bryan and inquire if any work has recently been done to prevent the strong smell. Agenda Item No. 2 - City Manager Concerns. Assistant City Manager Ragland mentioned that the Bryan City Council will hold a council meeting on November 23rd. One item of discussion will be a staff presentation regarding the findings of the study of the landfill. He reported that the city/school joint use committee has drafted an agreement; Mr. David Brewer has suggested that a subcommittee from the council and school board meet to prepare the final docu- ment. Mayor Ringer suggested that the City Affairs Committee work with the city staff to review this agreement and present a recommendation to the Council. Mr. Ragland noted that the legislature recently approved the Public Funds Investment Act which clarifies and expands the legal investment options for cities. It also requires that the city adopt a written investment policy. Finance Director Bill Harrison presented each councilmember with a questionnaire concerning investment of city funds. He noted that input from council will be used toward drafting a policy. Mr. Ragland updated the city council on the progress of the priority issues selected by council and stated that some of the issues will be placed on council meeting agendas during the next two or three months. '"06414 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 3 Agenda Item No. 3 - Presentation from Brazos County SteDDing Stone. Mr. Richard Sellers, President of Stepping Stone, addressed the council on findings from the study conducted during the spring of 1987. The $2000.00 funds allocated by the city were partially used toward this study; a copy of the published report was fur- nished to each council member. He pointed out the need for Step- ping Stone and its services. Agenda Item No. 4 - A representative from Gulf States Utilities discussed the .current energy situation as it pertains to t~e City of College Station. Mr. Malcolm Williams of Gulf States Utilities came forward to ad- dress the Council on his company's current energy situation, especially in relation to the City of College Station. He introduced several associates from the Conroe office. Mr. Jim Moss, Vice President of Marketing, spoke to the Council. He stated that the construction phase of converting electricity from other fuels is completed and no additional construction is expec- ted for at least 10 years. He pointed out two factors regarding the effect of utility rates; 1) utility customers are paying less for utilities than they paid in 1985 and the cost may continue to go down; and, 2) lower costs provide an excellent opportunity for economic growth. Councilman Brown asked if there are concerns for the future of Gulf States Utilities. Mr. Moss replied that the construction program has been completed, one interest of Gulf States Utilities is marketing, and by helping College Station grow, Gulf States Utilities can also grow. Mayor Ringer asked if they anticipate other utility companies in- creasing their rates as they begin the process of converting their plants. Mr. Williams replied that the costs for construc- tion of generator facilities for other companies will no doubt increase their customers' utility bills. Agenda Item No. 5 - Discussion of a resolution adopted by the Board of Regents of Texas A&M, in relation to control of the speed of trains within the city limits. Mr. James Bond, Vice Chancellor for Legal Affairs-TAMUS, addres- sed the Council. He explained that because of the increased use of the West Campus, the Board of Regents believe that the hun- dred-or-so trains crossing the campus each week r'06415 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 4 should travel at a lesser speed. He stated that the city's cur- rent ordinance states that the maximum train speed is 40 mph and the minimum, 10 mph. He asked that the Council seriously con- sider finding a way to lower the speed of trains in this area. Mayor Ringer made several comments regarding the issue; he pointed out that the city has not been informed of the meetings between Railroad Commission, the railroad lines, and the A&M Board of Regents. He stated that the council may want to wait and make a decision after the Railroad Commission holds its pub- lic hearing on November 24th. Mr. Bond stated that he "under- stands there is confusion as to what appears to be two or three initiatives which have taken on a life of their own". He com- mented that the urgency of this matter is not of great importance at this time. Mr. Jim Kuykendall of the Union Pacific Railroad spoke to the Council. He stated that he agrees with Mayor Ringer's comments and appreciates the Council's consensus to wait until the Rail- road Commission has held their hearing. He said that according to railroad statistics, the reduction of speed limits is a con- tributing factor to accidents. Mr. Kuykendall referred to a need for public education; he noted that "Operation Lifesaver" was initiated in 1977 and accidents have been reduced 50% over the last ten years. He stated that last year, 69% of train accidents in Texas involved train speeds of 29 mph or less. Mayor Ringer noted that the railroad crossing at 2818 has been provided with gates, and work has begun for installation of cros- sing gates at Jersey Street. Mr. Don Joiner, of Houston, commented that he will be happy to provide the Council with additional information he has gathered from working with problems similar to this one. Mayor Ringer stated that he feels the Council's best step is to wait and discuss this issue after the Railroad Commission hear- ing. Agenda Item No. 6 - Report from Deloitte Haskins & Sells on the Comprehensive Annual Financial Report, FY 6-30-87. Charlie Chaffin, Audit partner with Deloitte Haskins & Sells, in- troduced the auditors responsible for the field work. Mr. Chaf- fin announced that a draft of the audit report has been distrib- uted to the Council for their review and final submission of the report will be next month. "06416 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 5 He began by discussing the "Comprehensive Annual Financial Report" for the year ended June 30, 1987. He referred to the auditor's opinion which issues "a clean opinion" of the finan- cial reports. He referred to the combined balance sheet which are set up in funds. The general fund is the general operations of the city; the assets total approximately $6 million dollars. The general fund balance was $2 million dollars at the end of June. He emphasized the enterprise fund (utilities) assets, totaling $79,720,623; the fund balance of the enterprise fund was $34,588,013. Mr. Chaffin discussed the statement of reve- nues, expenditures and changes in fund balance (income statement) for the general fund. Revenues totaled $4,684,554 and expendi- tures totaled $9,383,523. Transferred into the general fund was $4.8 million from the enterprise fund. Mr. Chaffin further explained that the enterprise fund consists of electric, water, sewer, and sanitation operations; the oper- ating revenue totaled $34,214,006 and expenses were $25,963,573. He ended by stating that the City of College Station is in sound financial shape. Councilman Brown stated that two years ago, the auditors felt a need for a complete physical inventory of the fixed assets; he inquired if this action was reflected in the figure on page 17 of the general fixed assets listed on the balance sheet. Mr. Chaffin replied that the auditors have recommended that the City implement a fixed asset procedure for accounting of all fixed as- sets. He stated that during the past two years, the city has greatly improved in its overall accounting procedures. A top priority item of the MIS Steering Committee is the implementation of an EDP system. In this system, it will be appropriate to have a general fixed asset accounting system. At that time, it will also be appropriate to take a complete physical inventory of the assets of the City. Mr. Chaffin explained that the $38 million figure contains audited numbers ongoing from year to year. He added that the majority of fixed asset items are roads, sewer systems, and buildings. Mr. Chaffin discussed the "Single Audit Report". He mentioned that the City of College Station is responsible for the audit of federal funds; therefore, the City must employ outside auditors to perform the audit work. An audit was performed on all federal funds. Mr. Chaff in addressed the "Report to Management". He commented on the condition of accounting records and stated that the auditors are very supportive of the findings of the study . cj6417 CITY COUNCIL %;ORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 6 compiled by the MIS steering committee and encourage the City to upgrade the data processing system and to consider it a high priority item. He noted that several other items were repeat items from previous years. One of these relates to certain problems which still exist in the inventory count procedures. Because of the comple- tion of the new Utility Service Center, the opportunity now exists to implement a new inventory system. Councilman Gardner asked for clarification of the statement in the Audit Report which noted that the material will become open record after acceptance by the Mayor and City Council. Mr. Chaffin stated that the council has an opportunity to review these reports and to ask questions, although the staff does not anticipate any major changes to these statements as drafted. He noted that the "Letter of Transmittal" and statistical statements have not been completed. He added that after the Council ap- proves the report as presented, the auditors will make any changes or additions which need to be made, the city will print the final document, and only then will the statements become pub- lic record. Councilman Brown moved approval of the report as presented. Councilman McIlhaney seconded the motion, which was approved unanimously, 5-0, with Councilman Jones and Councilman Haddox absent. AGenda Item No. 7 - Closed session to receive report [6252-17(1) (r). The council moved to closed session at 5:35 p.m. Gardner did not attend the closed session. Councilman AGenda Item No. 8 - Report to provide information relative to a fluoridation treatment program for the water distribution system. Director of Public Utilities John Woody presented the item. He addressed the following two factors: 1) mechanics connected with the installation of equipment, and 2) cost of installation and operations. The estimated cost of complete installation of equipment is $14,125. If the treatment program is approved by the Council, an application will be filed with the State for grant approval, engineering services will be provided by the State, and, most equipment will be installed by city employees. Mr. Woody pointed out that detailed information and specifications were provided to the Council in the agenda packet. CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 7 Councilman Haddox arrived at the meeting. Agenda Item No. 9 - Discussion of authorizing submission of a Request for Proposals to obtain consulting engineering services to conduct Future Power Supply Study. Mr. Woody discussed this item. He stated that the staff is asking for council's approval to submit requests for proposals to obtain consulting engineers for assistance in reviewing all pos- sibilities for the city's future power supply. The two major elements included in the RFP are 1) to evaluate the position that the City of College Station should assume on the Trinity River Authority's hydroelectric project, and 2) to anticipate a sup- plier of power into the year 2010. Mr. Woody noted that the present contract expires in 1991. He stated that the Council received a copy of the RFP to review. Councilman Gardner asked if a request had been made to utilize the Baylor University Forecasting Service for the data base system. He expressed his hope that input will be given to Baylor in terms of the market area. Mr. Woody responded that in the future this data base system will be provided on the city's computer; the plan will be to update and continually use it for projection of needs. Councilman Brown moved approval to authorize submission of the requests for proposals to obtain engineering consultants for future power supply study. Councilman Haddox seconded this motion which was approved unan- imously, 6-0. Agenda Item No. 10 - Discussion of funding TMRS rate increase from Operating Contingencies and discussion of proposed ordinance authorizing Updated Service Credit and increased prior and cur- rent service annuities for Retirees. Personnel Director Karen Dickson explained that the proposed ordinance is a "housekeeping" item exercising the city's option to keep the retirement program current by updating service credit for employees. She stated that the Texas Municipal Retirement System rate increase is due to greater stability in the work force, and because of certain changes mandated by new legisla- tion. She noted that other options were recently made available to the city and may affect the rate in the future. *064 9 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 8 Councilman McIlhaney asked for clarification of the ordinance re- lating to the rate increase. Ms. Dickson replied that the rate will increase to 5.1% to 5.44%. Approval of the Updated Service Credit will lower the rate by .02%. This item has been placed on the November 12th agenda for Council consideration. Agenda Item No. 11 - Discussion of Purchasing Polices and Pro- cedures. Ron Ragland introduced this item. He stated that during the September 10th council meeting, the Council expressed concerns about the city's purchasing policy and bid specifications,espe- cially in relation to the purchase of vehicles. The staff was directed by the council to research and determine if a way exists to give local dealers preference, possibly on the basis of deliv- ery of warranty work. He explained that the city has operated under the same policies and procedures from the beginning. He noted that the "track record" over the last several years proved to be that there has not been a high degree of local participa- tion. Finance Director Bill Harrison summarized the staff's investiga- tion. He stated that the city policy requires that the specifi- cations sent to individual dealers should be returned with writ- ten bids delivered to the City of College Station. He pointed out that warranty work may be done by any qualified dealership, irregardless of where the product is purchased. Mr. Harrison referred to statements in the agenda packet and ex- plained that some dealers claim the bid requests are not addres- sed to the correct department. He stated that the Purchasing Department makes a definite attempt to send specifications to the correct person. Councilman Haddox commented that he feels the purchasing power should be used locally if the price is competitive. Mr. Harrison referred to bids currently before the Council and pointed out that the bids from local dealers are only five to ten dollars higher than the low bid by an out-of-town dealer. Under the present policy the city cannot accept the local dealer's bid, be- cause the out-of-town dealer meets all specifications and has the lowest qualified bid. He stated that the problem points toward a minimal dollar amount between bids. "06420 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 Page 9 Mr. Ragland pointed out that the Purchasing Department is re- quested to send specifications to vendors all over the state, and sometimes nationally. Councilman Brown stated that the New Car Dealers Association ex- pressed concern to him about the local bidding Drocess. Their major emphasis was expressed toward warranty work and the local dealer's option to provide warranty work on their own customers' vehicles first and then to vehicles purchased out of town. He added that this statement should mean something to the City of College Station. Mr. Ragland pointed out that most local car dealerships do not understand the legal restraints under which the City must abide. City Attorney Locke stated that the law requires the advertise- ment for bids to be published in the newspaper, and if someone from out of town responds to the advertisement, that person can- not be excluded from consideration. Mr. Harrison stated that the Purchasing Department has a devel- oped bid list. Businesses call and request to be placed on the bid list. If these businesses do not respond to any bid speci- fications from the City in a certain amount of time, they are de- leted from the bid list; this list is an ongoing updated list. Mr. Harrison stated that the council needs to make a policy statement that will take into consideration 1) the fiduciary con- cern, and 2) the concern for the local businesses. Following further discussion by the council, Mr. Ragland sug- gested that the Finance/Budget Council Committee meet to research ways which would satisfy both local bidders and out-of-town bidders. The Council concurred that the Council Finance/Budget Committee should look at the purchasing policies for the City and make a recommendation to the Council. Agenda Item No. 12 - Adjourn. The council adjourned at 6:45 p.m. APPROVED: M a y~r ATTEST: Ci~tl/~qe~ta-ry Dian~es "06421 GUEST REGISTER CITY COUNCIL WORKSHOP MEETING WEDNESDAY, NOVEMBER 11, 1987 4:00 P.M. 13. 14. 15. 16. 17. 18. 19. 20. 21. 10. 22. 11. 23. 12. 24. 006422