Loading...
HomeMy WebLinkAbout04/22/1987 - Workshop Minutes City Council MINUTES CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Ringer, Councilmen Jones, Brown, Haddox, McIlhaney, Gardner COUNCIL MEMBERS ABSENT: Councilman BouGhton STAFF PRESENT: City Manager Cole, City Attorney Locke, Assistant City Manager RaGland, Director of Capital Improvements Ash, City Engineer Pullen, Assistant City Engineer Smith, City Secretary Jones, Zoning Official Kee, Interim Director of Planning Callaway, Parks and Recrea- tion Director Beachy, Assistant Parks and Recreation Director Cisneros, Deputy Finance Director Schroeder, Aquatics Supervisor Szabuniewicz, Police Lt. Bernie Kapella, Planning Assistant LonGley, Asst. ZoninG Official Johnson, Public Information Officer Calliham, Utilities Officer Manager Piwonka, Council Coordinator Hooks STUDENT GOV'T LIAISON: Mike Hachtman VISITORS PRESENT: See Guest register. Agenda Item No. 1 - Signing of a proclamation designating April 26-May 2, 1987 as "Sexual Assault Awareness Week" in College Station, Texas. Voncille Cassady, Volunteer Coordinator for the Brazos County Rape Crisis Center came forward to accept the proclamation signed by Mayor Ringer.. AGenda Item No. 2 - Signing of a proclamation designating the week of May 10-16, 1987 as "National Police Week" in College Station, Texas. Mayor Larry Ringer signed the proclamation designatinG May 10-16, 1987 as "Police Week". Major Ed Feldman came forward to accept the proclamation. '06128 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 2 Agenda Item No. 3 - Signing of a proclamation designating April 22, 1987 as "Girl Scout Leader's Day" in College Station, Texas. Shelley Davis representing the Girl Scout Leaders in College Station was present to accept the proclamation. Mayor Ringer ac- knowledged his appreciation to the Girl Scout leaders. Agenda Item No. 4 - Signing of a proclamation designating May 13, 1987 as "Teacher Appreciation Day" in College Station, Texas. Mayor Ringer signed the joint proclamation with the City of Bryan designating May 13, 1987 as "Teacher Appreciation Day" in College Station, Texas. Nancy Crouch and Beverly Barron accepted the proclamation. Agenda Item No. 5 - Council Concerns. Councilman Gardner expressed his interest for possible revisions to the City Charter. He stated that his primary concern is the procedure for a recall election. Mr. Gardner explained that he had stated this concern previously and Mayor Halter had responded with a letter suggesting that a charter review committee be established. Councilman Gardner discussed other conflicts he perceived in the charter, and commented on the vague definition of the roles of the city staff, departments, and the City Council. He noted that the charter illustrates a weak definition of the planning func- tion. Councilman Gardner suggested that the section relating to recall petitions may also require attention. Mayor Ringer noted that the City Affairs committee has, among its other responsibilities, the responsibility to review the City Charter. Mike Hachtman, Student Gov't Liaison, announced that he will be leaving the City; he will be graduating on May 8. A new liaison, Mr. Kevin Buchman, has been selected to assume the position. Mr. Hachtman introduced Mr. Buchman to the Council. Mayor Ringer mentioned that he has not received the committee liaison choices from Councilman Brown and Councilman Haddox. Also, he asked the Council to bring their calendars to the regu- lar meeting Thursday night so they may schedule dates for a goal setting discussion; He stated that Texas A&M University ?06129 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 3 would like to give a presentation to the City Councils of Bryan and College Station regarding Easterwood Airport developments. Mayor Ringer asked the Council for their preference of time for the workshop meetings. The council concurred to move the work- shop meetings to 4:00 p.m. Agenda Item No. 6 - City Manager Concerns. City Manager Cole noted that the TML Workshop for the newly elected city officials is May 8-9, 1987 and May 15-16, 1987. Mr. Cole reported that he recently met with Mr. Bill Fitch for an updating on the progress of the post office facility and the Wal- Mart store to be located near 2818 and Texas Ave. Mr. Cole pas- sed to each council member maps of the site location and a letter from Mr. Fitch. Agenda Item No. 7 - Presentation of Wolf Pen Creek Parkway conceptual development plans. Director of Parks and Recreation Beachy introduced this item. He explained that the previous Council directed the staff to arrive at a conceptual plan for development along the Wolf Pen Creek Floodplain. The Parks and Recreation Department have jointly met with the Parks and Recreation Board, the Planning and Engineering staff, and the developers. Mr. Beachy stated that the Parks and Recreation Department met with the Parks and Recreation Department in Austin and viewed two developments in Austin, Shoal Creek and Waller Creek. Mr. Beachy defined the boundaries of the Wolf Pen Creek Flood- plain project beginning at Texas Avenue and Jersey intersection, along Texas Avenue and Hwy. 30 as it crosses the East Bypass. Mr. Cisneros presented graphics, handouts and a slide presenta- tion to the Council. He explained the following goal set forth by the staff: To develop a comprehensive plan to recognize the interrelationships of drainage, erosion, and recreation as they apply to the Wolf Pen Creek Corridor from Texas Avenue to the East Bypass, as well as to create a community attraction for College Station residents and out-of-town guests. He listed the objectives to this goal: - Establish drainage practices in compliance with College Station storm water management plan. 06130 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 4 - Utilize soil stabilization and other methods to deter erosion of creek banks. - Promote urban development with the creek as an amenity to development. - Encourage participation directed to an overall plan as op- posed to piecemeal projects. - Recognize Wolf Pen Creek development as an open space park connector as well as part of the city-wide park system of bicycle and pedestrian trails. - Orient focal points in the creek development to major access points throughout the creek corridor. - Develop recreational and cultural programs and facilities de- signed to maximize the potential usage of the creek as a com- munity attraction. - Preserve as much of the natural beauty of the creek's plants and wildlife as possible. Mr. Cisneros explained that the overall picture of the Wolf Pen Creek project is that it would serve as a part of an overall park linkage system utilizing the existing drainageways throughout the City. Wolf Pen Creek's origin begins on the Texas A&M University campus and the constant supply of water is maintained by the utilities plant on campus. Mr. Cisneros showed slides depicting the route of Wolf Pen Creek. He pointed out that erosion is the prime problem for the Wolf Pen Creek Corridor. Mr. Cisneros explained three Concepts. Concept I is the minimal development, consisting of the following objectives: 1) Define project boundary, 2) Realign creek, 3) Slope and soil stabili- zation, 4) debris cleanup, 5) ensure compliance with drainage regulations and policies. Concept I deals solely with drainage concepts. Concept II is the intermediate development, adding objectives to the list contained in Concept I. 6) Establish incentives or re- quirements for developer participation including creek orien- tation; 7) provide maintenance access to drainage improvements; 8) construct walkways and bridges for pedestrian/bicycle access; 9) create water features/ponds; 10) provide off-street parking; 11) landscape improvements; 12) establish park linkage system. 06131 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 5 Mr. Cisneros showed slides of Shoal Creek with commercial devel- opment along the creek. He noted that Shoal Creek and Waller Creek in Austin had many bridge crossings over the creek, many of which serve as a partial dam. He continued by explaining Concept III. This concept adds to the objectives listed in Concept I and II. 13) Lighting of walk- ways, 14) amphitheater, 15) create definite focal points, 16) interpretive center, 17) encourage commercial participation, 18) screening of sewer lines and visual obstructions. Mr. Cisneros pointed out that the project funding sources pos- sibilities would be public/private partnership, mandatory re- quirements, and the Texas Parks and Wildlife grants. He ex- plained the engineering and master plan development fee ranges for Concept I: $20,000-$30,000, Concept II: $45,000-$65,000, Concept III: $75-000-$100,000. He pointed out that these costs are strictly for design work. He described the estimated time schedule for the engineering and master plan development, as follows: Concept I, 1-3 months; Concept II, 6-9 months; Concept III, 9-12 months. Councilman Haddox asked what concerns would the developers have in contributing a portion of the creek. Mr. Beachy stated that the issue has been discussed with the developers. Councilman McIlhaney asked if the area behind Redmond Terrace would be cleaned up. Mr. Cisneros replied that a definite project bound- ary was made, and the Redmond Terrace area would be an option in a long term goal. He added that there may be a trail system in the Redmond area. City Attorney Locke stated that the City cur- rently does not have easements behind Redmond Terrace, so the property owners would have to express an interest in cleaning up the area. Councilman Brown asked if monies are available for the master plan development. Mr. Beachy replied that the possibilities exist, in terms of parkland acquisition funds; he added that the parkland development fund does not have adequate monies available for more development in the zone. Councilman Gardner asked if the study will include the analysis of suitability outside the flood plain. Mr. Cisneros stated that 06132 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 6 this report is just a conceptual study and does not direct the specifics. Councilman Gardner complimented the staff on their good work. Developer James Jett came forward representing the land owners from the Wolf Pen Creek corridor. He addressed Mr. Gardner's statement regarding specific development in the area. Mr. Jett stated that he had previously requested that the private sector be involved in the planning of Wolf Pen Creek. There was a tre- mendous response from the elected officials and staff of the City and there have been productive meetings with the owners. Mr. Jett noted that the Hwy. 30 sector between Stallings Drive to the north and the Christmas Store is currently being planned for development. This was one reason for the urgency for this request. He also noted that there was discussion about co-oping the land contribution to the City for the matching funds program. Councilman Haddox asked Mr. Jett if he thought this project was an attractive development. Mr. Jett replied that the ratio of depth on Hwy. 30, west side of Stallings Street, will be shallow; there will only be a visual enjoyment of the creek, allowing little depth for restaurants, stores, etc. The east side of Stallings street will attribute to a single purpose function as parking. Mr. Jett further explained that he owns 13.45 acres on the south side of the creek which has a depth ratio that would permit development on the creek. The north side of the creek is currently being planned, with "strip center" type development. He noted that he does not have plans at this time for develop- ment. Councilman Gardner asked Mr. Jett if he was aware of land for sale to accommodate uses for a civic building or semi-public uses such as a community theatre. Mr. Jett stated that there is a tract of land at the intersection of Holleman and Dartmouth which is for sale but may not be suitable for these means of develop- ment. Councilman Haddox commented that this project is a marvelous op- portunity to combine government, parks, businesses, and the citizens. This development would be an absolute attraction for the City. Councilman Brown concurred and added that this devel- opment would promote pride within the community, and create a new "downtown" for College Station. Councilman Brown moved approval of Plan A with parkland dedica- tion funds. Mr. Cole pointed out that $84,000 was committed from 06133 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 7 Zone 3 for the landscaping park project at the police station; $19,000 is the estimated monies available in the zone. Councilman Haddox asked for clarification of the engineering study of drainage costs. Mark Smith, Assistant City Engineer, stated that the drainage costs would probably remain the same in all three concepts. Mr. Cole added that there are no funds in the hotel/motel tax proposed at this time. Mr. Cole stated that in terms of ulti- mately having Concept III, the initial planning would begin with Concept III and proceeded with the construction of Concept I. He stated that the ultimate design would need to begin as part of the original project and then phase the construction. Future problems may occur with proceeding with Concept I design in an- ticipation of reaching Concept III construction. Mr. Beachy noted that the engineering studies and design fees are eligible once the project has been approved; there is a six month site review, July 31, and January 31. The City would commit it- self to whatever funding level requested either by land or cash. Councilman Haddox asked if there is enough land available by the present developers to cover the engineering costs. Mr. Beachy replied he was not sure and added that the funds cannot be expended until the grant is approved. Councilman Jones suggested that the Council direct staff to con- tinue studying ways to obtain funds. Mr. Cole agreed, adding that the Council will be presented with the budget at their next meeting. He summarized the direction given by the Council. Councilman Brown moved that the council approve support of the Wolf Pen Creek Corridor Project and direct staff to proceed in determining ways to fund this project. Councilman Jones seconded the motion which was approved unanimously, 6-0, with Councilman Boughton absent. Agenda Item No. 8 - Discussion of Utilities Cost of Service Study. Mr. Cole introduced this item. He noted that the previous Council authorized the Cost of Service study in December 1985 with McCord Engineering. He explained the intentions of the study's accomplishments. The City's utility fund includes water, sewer, and electrical operations. For operational pur- poses these funds are segregated, and from the accounting stand- 06134 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 8 point these funds are not segregated. The expenditures and revenues from the water, sewer, and electric come from the utili- ty fund. Mr. Cole explained that a review of the rate structure has been conducted. A cost accounting is the primary step which must be reached in order for the consultant to proceed to the second step, which is recommending rate structures for those ser- vices. Jim McCord of McCord Engineering began his presentation. He began by summarizing three sections, Schedule A, Income Statement History; Schedule B, Cost of Service Results; Schedule C, Pro- posed Schedules for Achievement of Self-Sufficiency in Water, Sewer, and Electric Departments. Mr. McCord referred to Exhibit A-I, Income Statement History of the utility fund, for FY 1979-1986. He noted that the cash after transfers in the utility fund, is very small, $85,212. Also the rate base of the total utility system has tripled since 1986, a rapid increase, responsible for the results found in the water and sewer departments. He pointed out that the debt ser- vice coverage has dropped significantly in the past few years. Mr. McCord described Exhibit A-2, Income Statement History for the Electric Department. He noted that the cash after transfers in 1986 was $4,797,894 and the proposed 1987 budget figure is $4,879,570. The growth of the electric department has doubled in the rate base. He explained Exhibit A-3, Income Statement Histo- ry for the Water Department. The water department cash after transfers is ($2,643,620) deficit. He explained that the water system rate base has grown fourfold. This increase was attrib- uted by the development of a water production system. He noted the importance of the debt service in the water department of ($2,676,283) deficit compared to the total revenues of $3,529,780. Mr. McCord continued by describing Exhibit A-4, Income Statement History for the sewer department. He noted the importance of the figure of cash after transfers is a deficit of ($1,961,760) in the 1987 budget. The increase in the rate base has increased by threefold, attributing to the factor of doubling the capacity of the sewer plant. Mr. McCord continued with Section B, Cost of Service Results. He referred to Exhibit A-4. He explained that the study is intended to identify the term self-sufficient, assuming that the cash after transfers line is zero. This means that there should be 06135 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 9 sufficient revenues to pay debt service, capital outlay, and ex- penses. Mr. McCord referred to Exhibit B-i, the Cost of Service Revenue Comparison for the water department. The revenue allocation figures were accrued during the year 1985-1986. He explained that the revenues could be increased 76.2% for the particular test year, 1985-86, to meet the zero cash after transfer balance. Exhibit B-2, water department billing component comparison, pre- sents the present rates for commercial and residential customers, as follows: $4.00 monthly service charge and $1.40 per thousand gallonage charge. The cost of service shows the residential monthly service charge to increase $9.03, and commercial rates $13.77. The gallonage charge for residential customers is $2.53 per thousand and commercial, $2.45 per thousand. The increases in charges would achieve self-sufficency. Mr. McCord continued by describing Exhibit B-3, Revenue compar- ison of sewer department. The revenue increase required to equal cost of service is 34 % for residential and 448.3 % for commer- cial. He pointed out that the commercial rates need to rise substantially to meet cost of service. Exhibit B-4 illustrates billing component comparison for the sewer department. He noted that there is currently a $10.00 monthly charge per household unit. The cost of service shows an increase of $13.40. The com- mercial sewer rates are currently $10.00 for the first 7,000 gallons or fraction thereof of water usage. Each additional seven thousand gallons or fraction thereof is an increase of $2.50. He described Exhibit B-5, the cost of service revenue comparison for the electric department. This chart represents a decrease of 17.5% required to equal cost of service. He pointed out that an approximate 5.1% increase in retail Electric Department revenues will be required in fiscal year 1986-87 to offset the proposed Phase 2 wholesale rate increase from GSU under the rate settle- ment plan. Mr. McCord continued to Exhibit B-6, the billing component com- parison for the Electric Department. He referred to Section C, the proposed schedules for achieve- ment of Self-sufficiency in water, sewer, and electric depart- ments. Exhibit C-1 summarizes the assumptions made for a five e~ schedule for the achievement of self-sufficiency operations of the City Water Department. The study determined that the City 06136 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 10 create schedule rate increases over a five year period. The goal of the study is to provide good projections to show the magnitude of rates needed to determine self-sufficiency. Mr. McCord recom- mended that the rates for water and sewer be reviewed during the budget process. Mr. McCord pointed out the reasons for achieving self-sufficiency. He stated that the City is a utility business providing a service on a cost basis and should not be subsidized. Councilman Brown asked Mr. McCord if the possible rate increases in water and sewer and the rate decrease in electric would re- distribute funds to each department. Mr. McCord replied that in terms of overall revenue, yes. He stated that each individual's usage is different. There may be many individuals who would be severly affected if the rates were incurred at one time, rather than phased in over a period of time. Mr. Cole noted that the major problem is the contract with GSU which specifies clauses relating to legal events which may occur. Councilman Haddox stated that one major problem is determining who is affected by the change. He agreed with the consultant that the phasing of the increases or decreases is the better choice. Mr. McCord described Exhibit C-2, the water department income statement projection for FY 1988-1992. He referred to the cash after transfer balance of zero in 1992. He continued with Exhibit C-3, illustrating the rate increases of the water department on a five year basis, 10% a year increase. Exhibit C-4 thru C-5 notes that the primary difference in the sewer department is the ability to achieve self-sufficiency on a three year schedule. In 1990 the cash after transfers balance would be zero. He noted that the financial ratios of the rate base in the sewer department shows a significant improvement in a five year period. Exhibit C-6 shows that the three year cycle results in a 21% in- crease in overall sewer rates. Exhibit C-7 illustrates the pro- posed revenue allocation for the sewer department. The commer- cial customers may see a possible 150% increase. Exhibit C-8 lists the assumptions for the electric department. The normal revenue growth is forecast to increase at an average annual rate of 3% per year over the next five years. 06137 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 11 Councilman Haddox noted that the 3% growth figure for water, sewer, and electricity, appeared to be the same in all depart- ments. Mr. McCord replied that these percentages were chosen by the staff as representing growth of the City. Mr. McCord continued by describing Exhibit C-9. The cash after transfers shows that the surplus of funds currenly being used to subsidize the water and sewer departments, would be eliminated over a period of five years. Exhibit C-10 shows the magnitude of the electric rate decreases. Exhibit C-11 is the summation of the utility fund. He noted that the cash after transfers re- sulted in low figures in the utility system as a whole. Linda Piwonka, Utilities Office Manager, narrated a slide pre- sentation. She stated that 13 cities were selected for the sur- vey to attempt comparison of their utility systems with that of College Station. She noted that the surveys are conducted an- nually and the information will be available during the budget process each year. Mrs. Piwonka showed the graph illustrating the cities surveyed and the rate set in each city for the typical residential custom- er for 10,000 gallons of water usage. She explained that at the current time, the average residential customer pays $18.00 a month. Under the proposed plan over a five year period, the monthly rate would increase to $19.91. She explained that the average residential customer currently pays $10.00 a month for sewer. The proposed three year plan for sewer increases for the typical residential customer's bill would increase to $11.06 a month. She stated that the average large commercial customer usage is 450,000 gallons of water per month. The current monthly charge is $634.00 and if the proposed five year plan were implemented it would raise the monthly charge to $697.00. The large commercial sewer bill averages 450,000 gallons per month. The current monthly rate is $170.00 compared to Austin's rate of $1,327.21. Councilman Haddox asked for clarification on the selection pro- cess of cities surveyed. Mrs. Piwonka explained that the cities chosen were selected because of their debt, growth, location of universities, etc. Mrs. Piwonka stated that if the three year plan is implemented for large commercial sewer customers, the impact would increase the monthly rate to $425.00. She stated that this action would keep the City in competition with other '"06138 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 12 cities such as Bryan, Garland, Waco, and Baytown. Mrs. Piwonka continued her presentation by describing the average bill for the residential electric, water, sewer, and taxes as $118.84; she stated that the proposed plan figures would raise the average bill to $121.81. A pie chart of the residential monthly utility services and taxes displayed the following breakdown for each department: Electric, 58.13%; Water 14.63%; Sewer, 8.13%; Garbage 3.41%; and Taxes 15.70%. Councilman Brown commented that the large commercial users would benefit if the decrease in electric rates occur and the water and sewer rates increase. City Manager Cole agreed. Mayor Ringer commented that he is in favor of the design rates which will implement self-sufficiency. Councilman Haddox commented that he feels the average residential citizen will be significantly affected if a flat fee is set im- mediately rather than phasing the rate over a period of time. Councilman Gardner stated that he would like to see an analysis showing the tax rate if a flat fee were set, and a table showing the tax rate for phasing the rate over a period of time. City Manager Cole referred to the pie chart describing the large com- mercial utility services and taxes. He explained that the large commercial industry is severly affected by the electric fees. Mrs. Piwonka explained to Mr. Gardner that page 1 of the Utility and Property Comparison booklet describes the utility and tax billing comparisons for the residential customer with other cities. Mr. McCord addressed the issues of flat rates. He noted that flattening the rates is a very common approach. The GSU whole- sale rate offers the incentive for growth and increased usage. Mr. Cole reiterated Councilman Gardner's suggestions. Mr. McCord replied that he will design some alternatives for the Council, including the impact of flat rate structures, and the declining block options. Councilman Gardner noted that he would like to see the structures for residential and non-residential. ,06139 CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 Page 13 Councilman Haddox pointed out that there should be an incentive to attract large industries, especially those which are heavy electrical users. The City could have the potential to sell electricity, make a profit, and in turn reduce the residential customers' rate. Mayor Ringer clarified the direction of the Council. The Council directed Mr. McCord to implement the five year plans for water and electricity and three year plan for sewer to achieve self- sufficiency. Secondly, the Council would like to review options between the flat rates and block steps. Mayor Ringer asked if the projected sewer rates were flat service rates. Mrs. Piwonka reDlied negatively. Councilman Haddox questioned if the garbage rates were increased by $1.00, would this be transferred to the general fund. Mr. Cole responded that the amounts from the sanitation fund could be transferred to the general fund. Mr. McCord stated that he will report back with the information Council requested. A~enda Item No. 9 - Adjourn. Mayor Ringer adjourned the meeting at 7:05 p.m. ATTEST: C i ty Jones A PP ROVE D: Mayur j L~_.~ ~ r 06140 GUEST REGISTER CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 22, 1987 4:00 P.M. 16. 17. 18. 19. 20. 21. 22. 23. 24. 10. 25. 11. 26. 12. 27. 13. 28. 14. 29. 15. 30. 006141