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HomeMy WebLinkAbout101011R CC Min6d, The City of West University Place A Neighborhood City CITY COUNCIL Bob Fry, Mayor Susan Sample, Mayor Pro Tern Ed Heathcott, Councilmember Joan Johnson, Councilmember Dick Yehle, Councilmember STAFF Michael Ross, City Manager Alan Petrov, City Attorney Thelma Lenz, City Secretary CITY COUNCIL MEETING MINUTES The City Council of the City of West University Place, Texas, met in regular session on Monday, October 10, 2011, in the Municipal Building, 3800 University Boulevard, West University Place, Texas beginning at 6:30 p.m. Agenda items were as follows: Call to Order: Mayor Fry called the meeting to order at 6:30 p.m. Council and staff in attendance were: Mayor Pro Tern Sample, Councilmembers Heathcott and Johnson, City Manager Ross, ACM/Public Works Director Peifer, City Secretary Lenz, City Attorney Petrov (arrived at 6:35 p.m.), Police Chief Walker, and Finance Director Daugherty. Councilmember Yehle was absent. Pledge of Allegiance: Councilmember Johnson led the Pledge of Allegiance. Confirmation of Notice: City Secretary Lenz confirmed that Notice of the regular meeting was duly posted in accordance with the Texas Government Code, Chapter 551. 1. Public Comments This is an opportunity for citizens to speak to Council relating to agenda and non-agenda items. There were no public comments. 2. Hearing for 2012 Budget Matters related to a public hearing to hear comments on the 2012 City Budget. Mayor Fry opened the public hearing at 6:32 p.m. Finance Director Daugherty presented projections and highlights of the proposed budget: • General Fund revenues are $14.1 million and expenditures at $14.99 million; • Debt Service revenues are $8.0 million and expenditures at $8.3 million; • Water and Sewer Fund revenues are $6.4 million and expenditures at $7.6 million; • Solid Waste Fund revenues are $1.6 million and $1.8 million for expenditures; • Total expenditures are $32.6 million, not including the capital that is included in the Capital Improvement Funds. • There is $623,000 in the General Capital Improvements Fund and $268,000 in the Water and Sewer Capital Improvements Fund. • There is no property tax increase; • Tax rate is the same as for tax year 2010, .37411 per $100 values; • Maintenance and Operations is .18475, which is a decrease from the prior year; City Council Minutes, October 10, 2011 • Interest in Sinking is .18936, which is an increase from the prior year due to an increase in the debt service the City has for the existing debt; • No water and sewer rate increases, but there is a caveat for future rate increases, which may be necessary to cover the costs of water purchased from the City of Houston; • No solid waste increase; • Increase in the monthly fee for the Direct Link alarm monitoring service in order to make it more comparable to current market rates charged by private alarm monitoring services; • One percent structure and corresponding salary adjustment, effective January 1, 2012 and 1.5% average for pay for performance increase. • Annualized cost of the 2011 increases on employee anniversary dates; • One patrol officer has been reclassified to sergeant; • The addition of two patrol officers; • Phase I of 2 of a radio transition from Harris County to the City of Houston system • The existing Equipment Replacement Fund has been renamed the Vehicle Replacement Fund, because the majority of the items in that fund are vehicles. She said the items considered equipment will be reclassified to a new Equipment Replacement Fund. She said we have created and provided seed funding with the transfer from the general fund to set aside funds for cash purchases of high dollar equipment that don't necessarily fit into a debt issuance program; and • The addition of two public administration interns The City Manager added that there is also the non-residential zoning study included in the budget. He said right now it is set aside in the Capital Fund and said when the time comes, we will discuss with Council the best way to pay for it. He also said that the funds for a consultant to assist with a survey and study for solid waste are included in this budget. Richard Kellogg, 2716 University Boulevard, spoke to ask if the City's bonded debt were variable rate municipal bonds and, if so, is the repurchasing agent impacted in any way by what's happening in Europe such that our remarketing rates might increase, which will thereby increase the City's debt service. Mayor Fry informed Mr. Kellogg that this question is related to Agenda Item #4 and asked if he would like to wait until Council gets to that item. Mr. Kellogg agreed to wait. Mr. Kellogg also asked if Texas Municipal Retirement System (TMRS) was a percent of payroll mandated by state legislature. City Manager Ross responded it is mandated by State legislature and each City can choose varying percentages. In response to Mr. Kellogg's question as to where those funds are invested, Mr. Ross replied primarily in bonds and added that the funds are managed by TMRS. Regarding TMRS, Mayor Fry pointed out that the City's costs relating to TMRS have decreased this year partly due to the elimination of the Cost of Living Adjustment for retirees and partly due changes enacted by the legislature. He said this is pretty much a one-time shot and the City probably won't see that again in next year's budget. There were no more public comments, so Mayor Fry closed the Public Hearing at 6:43 p.m. He reminded everyone that the public hearing is closed but that the Budget will be voted on at the City Council meeting on August 24. 3. Fee Schedule Amendments Matters related to the City's Fee Schedule including review of proposed changes and consideration of an ordinance on the first of two readings. Page 2 of 5 City Council Minutes, October 10, 2011 City Manager Ross presented and stated that the City's Financial Policy states, in part, that all fee schedules, user chargers, and charges for utility services should be approved and adjusted to ensure that rates are both equitable and sufficient to cover the costs of the provided service as deemed appropriate by Council. He said in reviewing the fee schedule this year, staff is proposing some changes to Colonial Park pool fees, Recreation Center fees, Development Services and Building fees, ambulance services and public safety false alarm fees, and Direct Link alarm monitoring fees. Mr. Ross also stated that staff is proposing changes to the fees for ambulance services and public safety false alarm fees. Mr. Ross said staff recommends that Council adopt the proposed fee schedule for the 2012 fiscal year on the first of two readings and further request that Council gives Parks and Recreation staff the authority to deviate from the Parks and Recreation Fee Schedule for the purpose of facilitating special events, programs, and promotions. Councilmember Johnson moved to accept the proposed fee schedule for the 2012 Fiscal Year on the first of two readings and to give Parks and Recreation the authority to deviate when necessary. Councilmember Heathcott seconded the motion. Councilmember Johnson confirmed with staff that the Direct Link alarm fees could still be changed if Council decides to make changes before second reading. Mr. Ross responded yes. Mayor Fry suggested that staff review the alarm fees each year so that we do not have to play catch up in the future. He said the big jump in this fee is mainly due to keeping it so low for so long. At this time a vote was made to the motion. MOTION PASSED. Ayes: Fry, Sample, Heathcott, Johnson Noes: None Absent: Yehle 4. Certificates of Obligation and Permanent Improvement Refunding Bonds Matter related to the sale of Certificates of Obligation and Permanent Improvement Refunding Bonds. Finance Director Daugherty and Ryan O'Hara with RBC Capital Markets presented this item Ms. Daugherty explained to Council that part of this agenda item is for them to consider additional debt issuance for drainage. Mr. O'Hara stated that there are two separate financings - one is $855,000 in Certificates in Obligation and one is for roughly $4.7 million in Permanent and Improvement Refunding Bonds, which gives the City an opportunity to refinance some existing debt and lower the City's debt burden. Mr. O'Hara said we are in a very good interest rate environment. He said because the City is AAA rated, the bonds will be very much sought after in the market place. Mr. O'Hara said if the City would like to go forward with the Certificates of Obligation, Council would need to authorize Notice of Intent to Issue Certificates of Obligation. He said on the morning of November 14 is when they will probably market the bonds and come before Council at the meeting that evening for approval of the rates and said they anticipate closing on Tuesday, December 13'h. Page 3 of 5 City Council Minutes, October 10, 2011 Richard Kellogg, 2716 University, asked Mr. O'Hara if they have looked at what it would cost if they were to issue variable rate bonds, to which Mr. O'Hara responded no. Mr. O'Hara said partly because we're dealing with a small amount on the CO's and with the the refinancing he feels that we can get a 2.9% fixed rate, so he is less inclined to go with a variable rate. Mayor Fry reminded everyone that the debt issuance also includes buying flood retention if and when we can do that. City Manager Ross reminded everyone that the total College Street/Bellaire Boulevard project was about an $8,000,000 project, including the cost for detention. He said we were fortunate enough to get Metro to pick up approximately $4.5 million and the County to pick up about $1.5 million. He said the taxpayers of West U will end up directly funding only about 10 percent of the total initial cost. Mr. Ross pointed out to Council that why we do have funds in the Capital account right now to fund this project, it's always been planned that this would be funded through debt issuance; but, if the City chooses to fund this project out of the Capital fund, it will zero out the Fund and the City would not be able to do the ongoing pay-as-you-go street and sidewalk improvements. At this time, Councilmember Heathcott moved to accept the issuance of the bonds as outlined. Councilmember Johnson seconded the motion. Councilmember Johnson asked if we are comfortable that the $855,000 is all that will be needed for the project. Mr. Ross said based on the information from the Harris County Flood Control District and the City of Houston, this amount is the higher end of what the cost of buying detention from Houston in the Meyer tract should be. Mr. Ross said if that deal falls through and the City is not able to purchase detention from Houston, indication from engineers and others is that the City should still be able to get it done in that price range - give or take $100,000. He said by the time the project goes forward, the City could make up those funds out of the Capital account if we had to do so. A vote was made on the motion. MOTION PASSED. Ayes: Fry, Sample, Heathcott, Johnson Noes: None Absent: Yehle 5. Consent Agenda All Consent Agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council member requests in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. A. City Council Minutes Approve City Council Minutes of September 24, 2011 Budget Workshop and the Minutes of the September 26, 2011 City Council Meeting. B. Rescheduling City Council Meetings Matters related to rescheduling City Council meetings in November and December 2011 due to Thanksgiving and Christmas holidays. Page 4 of 5 City Council Minutes, October 10, 2011 Councilmember Heathcott moved to approve the Consent Agenda as presented. Mayor Pro Tern Sample seconded the motion. MOTION PASSED. Ayes: Fry, Sample, Heathcott, Johnson Noes: None Absent: Yehle 6. Reports by Council/Staff City Manager Ross reminded Council that the Texas Municipal League will be hosting its annual conference this week at the George R. Brown Convention Center. 7. Adiourn With no other business before the Council, Councilmember Heathcott moved to adjourn the meeting at 7:03 p.m. Councilmember Johnson seconded the motion. MOTION PASSED. Ayes: Fry, Sample, Heathcott, Johnson Noes: None Absent: Yehle Meeting adjourned. /-l A. Lenz, City Secretary „ Date Approved Page 5 of 5