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HomeMy WebLinkAbout12/18/1985 - Special Minutes City Council MINUTES SPECIAL MEETING OF THE CITY COUNCIL WEDNESDAY, DECEMBER 18, 1985 5:00 P.M. COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS ABSENT: STAFF PRESENT: STUDENT GOVT. LIAISON: VISITORS PRESENT: Mayor Halter, Councilmen Bond, Tongco, Boughton, Brown, McIlhaney, Runnels None City Manager Cole, Assistant City Man- ager VanDever, Director of Capital Im- provements Ash, City Attorney Locke, City Secretary Jones, Personnel Direc- tor Dickson, Assistant Personnel Direc- tor Lucas, Administrative Assistant Magoon, Council Coordinator Jones Mike Hachtman See guest register. The meeting was called to order with Councilman Bond absent. Agenda Item No. 1 - Council concerns. There were no comments from the Council. Agenda Item No. 2 - A public hearing on the question of approval or denial of the rate increase proposal submitted by McCaw BCS Communications~ Inc. City Manager Cole referred to a letter dated December 18, 1985, submitted by McCaw BCS Communications, Inc., suggesting that the implementation of the proposed rate increase be delayed until February 1, 1986 to allow more time for McCaw to supply all the information requested by Dr. Hopper, in order for him to complete the analysis and make a recommendation to the Council. He stated that Mr. Hopper was not prepared to make a report to the Council and suggested that the Council proceed with the public hearing and delay consideration of the matter until a later date. Mayor Halter opened the public hearing. Mr. W.J. McGuire, 1204 Munson, expressed concern about the quali- ty of entertainment received from McCaw BCS Communications, Inc. He stated that when he obtained basic service from McCaw it con- sisted of twenty-eight channels including Channel 31 originating out of Austin, Texas. He pointed out that Channel 31 was removed from the lineup representing a breach of contract on the part of McCaw Cablevision. He noted that he has attempted without suc- cess on many occasions to discuss the matter with McCaw's Manage- SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, DECEMBER 18, 1985 PAGE 2 ment. He further stated his intention to obtain the support of others to initiate a lawsuit against McCaw for their breach of contract. Mr. David Fisher, 2007 Pebblestone Court, stated his opinion that it is unfair for McCaw to pass on costs associated with cable theft to paying customers. He pointed out that charges for addi- tional outlets are unnecessary in consideration of the base fee. In addition, he noted that the equipment distributed is not state of the art because it does not allow for the installation of in- line filters. He made several comments concerning the unreason- able price for obtaining cable service. He further stated that McCaw has duplicated channels, noting that HBO is situated on two channels. No one else spoke. The public hearing was closed. Councilman Runnels moved to delay consideration of the proposed rate increase for thirty days to provide the city's consultant additional time to complete his analysis of McCaw's financial records and make a recommendation to the Council. Councilman Brown seconded the motion which was approved unani- mously, 6-0, with Councilman Bond absent from the room. Councilman Brown asked what obsolescence figure is used in the depreciation calculations. Mr. Joseph DiBacco, Vice-President/ Regional Manager, stated that a twelve year life straight line depreciation is used on the assets unique to the cable industry. Councilman Brown asked several questions concerning McCaw's fi- nancial statements. Mr. DiBacco stated he was unable to address any specific questions at this time, but would be available to meet with any Councilmember to review the records at a later date. Councilman Bond arrived at the meeting. Agenda Item No. 3 - Consideration of a request for funding for the Brazos Prenatal Clinic. City Manager Cole stated that he discussed the matter with staff and determined that the only available funds for appropriation for this request are located in the General Fund Contingency. He expressed the staff's concern that the city's insurance premiums will become due the first of January, noting that because of the economic condition of the insurance business it is anticipated that the premiums quoted will far exceed the amounts budgeted this year. He suggested that if the Council is inclined to ap- prove the authorization of funding for the Brazos Prenatal C~o SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, DECEMBER 18, 1985 PAGE 3 the funds should be appropriated from the General Fund Contingen- cy, but with the stipulation that the staff be allowed the lati- tude to refrain from transferring the funds until mid-January in order to analyze what impact the anticipated increase in insur- ance premiums will have on the Contingency Fund. He further sug- gested that the appropriation be conditioned on approval by the City of Bryan and Brazos County of funding requests submitted to them by the Brazos Prenatal Clinic. Ms. Anne Hazen, representing the Brazos Prenatal Clinic, stated that Brazos County authorized funding of approximately $5000.00 for this year and $30,500.00 for next year to cover the cost of salary and benefits for the nurse practitioner. In addition, she noted that the City of Bryan is considering the authorization of $30,000.00 of Community Development Funds originally designated for a prenatal clinic to be located at the Brazos County Court- house which was never established. She stated that the Community Development Committee in Bryan recommended to the City Council that these funds be directed to the Brazos Prenatal Clinic to ad- dress the specific need for which it was intended. Councilman Tongco suggested that the Council consider authorizing a small amount of funding to enable the Clinic to continue its operations through January, 1986. She further suggested that the Council reconsider the funding request in mid-January and compare it to funds that remain available after payment of the insurance premiums. She asked how many patients the Clinic is working with at this time. Ms. Hazen stated that the Clinic has thirty patients at this time. Councilman Tongco moved to authorize funding for the Brazos Pre- natal Clinic in the amount of $3,000.00 and reschedule consider- ation of the total funding request after an assessment of the city's financial needs in January. She included in her motion that approval of any future funding request be made contingent on approval of funding requests made to the City of Bryan and Brazos County. Councilman Bond seconded the motion which was approved unanimous- ly, 7-0. Councilman McIlhaney pointed out that the funding request from the Brazos Prenatal Clinic was for the Calendar Year 1986, noting that the Council could authorize one-half of the request from this budget year and request that the Clinic make a request for the remainder of funds out of Fiscal Year 1986-87 Budget. SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, DECEMBER 18, 1985 PAGE 4 A~enda Item No. 4 - Consideration of a resolution adoptin~ a De- ferred Compensation Pro~ram with the International City Manage- ment Association. Mayor Halter stated that the proposed resolution fulfills a term of agreement between William K. Cole, City Manager, and the City of College Station, allowing him to continue his membership in the Deferred Compensation Program with the International City Management Association. Councilman Bond asked if this program is optional. City Manager Cole stated that the program is purely voluntary and will be available to other city employees at their expense. Councilman Bond moved approval of Resolution No. 12-18-85-04 adopting a Deferred Compensation Program with the International City Management Association. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. A~enda Item No. 5 - Consideration of a resolution authorizin~ the Mayor to execute an amendment to Section 7.1 of the Elevated Wa- ter Storage A~reement between the City of College Station, Texas and Whalen Corporation. City Attorney Locke presented the item. She stated that she re- ceived a request from Carol Palumbo of Reynolds, Allen and Cook, representing Whalen, Inc., for the Council to consider a proposed amendment to the Elevated Water Storage Agreement. She noted that she reviewed the proposed amendment and determined that it essentially represents cleanup language for tax purposes. She read the proposed amendment as follows: "Section 7. Payment for Water Storage: 7.1 For a period of fifteen (15) years from and after the completion date, CITY will pay COMPANY an annual fee of Two Hundred Fifty Thousand Eight Hundred Thirteen Dollars ($250,813), plus an amount equal to any and all ad valorem prop- erty taxes, if any, which may be assessed against COMPANY by any local taxing authority with respect to the facility or site thereof, which annual fee is a maintenance and operation expense of the City's Combined Waterworks and Sewer System and Electric Light and Power System payable from the gross revenue of such system." She further stated that Assistant City Manager VanDever reviewed the proposed amendment and concurred that this expense is correctly reflected as an operations and maintenance expense. Councilman Brown moved approval of Resolution No. 12-18-85-05 au- thorizing the Mayor to execute the Elevated Water Storage Agree- ment between the City of College Station, Texas, and Whalen Cor- SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, DECEMBER 18, 1985 PAGE 5 poration which amends Section 7.1 of the Agreement executed May 7, 1984. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. Agenda Item No. 6 - EMERGENCY ITEM: Consideration of a proposal submitted by Whalen Corporation for the assignment of its Con- tract on the 2.0 MG Elevated Water Storage Tank at Greens Prairie Road to Aquar Inc. Councilman Tongco moved to declare Item No. 6 an emergency. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. Councilman McIlhaney asked why this item was considered as an emergency item. Mayor Halter explained that Whalen Corporation wants to close out matters relating to the assignment of its Con- tract on the 2.0 MG Elevated Water Storage Tank at Greens Prairie Road prior to the first of the year for income tax purposes. City Attorney Locke stated that consideration of the proposal for the assignment was scheduled on the agenda at the request of Mr. Arnold Darrow of Whalen Corporation. Mr. Arnold Darrow representing Whalen Corporation stated that the proposal relates to tax benefits associated with the Contract and necessitates that the transaction be completed prior to the first of the year for tax purposes. He stated that the proposal re- quires Council approval to assign the Contract to Aqua, Inc., the third party. Councilman Tongco asked for further explanation of the proposal. Mr. Darrow explained that after changes in tax laws involving the passing of tax benefits to a third entity were approved, Whalen Corporation approached the City of College Station about their intentions to take advantage of these new laws and requested the city's blessing on the transaction. He noted that when the orig- inal Contract on the Elevated Water Storage Tank was negotiated the city's Legal Staff agreed with the premise, but reserved the right to an opinion concerning the party to be assigned the Con- tract. Councilman Tongco asked if any of the obligations delineated in the Contract had changed. Mr. Darrow replied negatively. SPECIAL MEETING OF THE CITY COUNCIL THURSDAY, DECEMBER 18, 1985 PAGE 6 Councilman Runnels moved to grant the assignment of the Contract on the 2.0 MG Elevated Water Storage tank at Greens Prairie Road to Aqua, Inc. Councilman Boughton seconded the motion which was approved unani- mously, 7-0. Agenda Item No. 7 - Hear Visitors. No one spoke. 8 - Closed session to discuss pending litigation Agenda Item No [6252-17 (2) (ei] and personnel [6252-17(2)(~)] · A. Personnel [6252-17 (2)(g)]. 1. Discussion of administrative personnel. The Council did not convene in closed session. Agenda Item No. 9 - Action on closed session. No action was taken on closed session. Agenda Item No. 10 - Adjourn. Mayor Halter adjourned the meeting at 5:35 P.M. G~ry H~lJr, da~or ATTE ST: Dian-3~ e~/City Secretary Guest Register Special City Council Meeting Wednesday, December 18,1985 5:00 p,m. 18. 2.. ~ 19. 3. 20. 4. 21. 24. 25. 26. 27. 11. 28. 12. 29. 13. 30. 14. 31. 15. 16. 32. 33. 17. 34. 005484