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HomeMy WebLinkAboutCC Minutes 2009-08-24 Special 08/24/2009 3204 ,...r STATE OF TEXAS )( CITY OF FRIENDSWOOD )( COUNTIES OF GALVESTON/HARRIS )( AUGUST 24, 2009 )( MINUTES OF A SPECIAL MEETING OF THE FRIENDSWOOD CITY COUNCIL THAT WAS HELD ON THURSDAY, AUGUST 24, 2009 AT 6:00 PM AT FRIENDSWOOD CITY HALL COUNCIL CHAMBERS, 910 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE FOLLOWING PRESENT CONSTITUTING A QUORUM: MAYOR DAVID SMITH MAYOR PRO-TEM ANDY RIVERA(Arrived at 7:08 PM) COUNCILMEMBER MICHAE� BARKER COUNCILMEMBER JIM HILL COUNCILMEMBER LESLIE REID COUNCILMEMBER BILL HOLBERT COUNCILMEMBER JIM BARR CITY ATTORNEY BOBBY GERVAIS CITY MANAGER ROGER ROECKER DEPUTY CITY SECRETARY MELINDA WELSH Mayor Smith called the meeting to order. CLOSED EXECUTIVE SESSION � Council convened into Executive Session in Accordance with the Texas Government Code, pursuant to Section 551.071 — Consultation with attorney concerning pending or contemplated litigation; a settlement offer; or a matter in which the duty of the attorney requires it. Council convened into Regular Session with no action taken later in the meeting. RECONVENE INTO OPEN SESSION SPECIAL SESSION A discussion was held regarding Capital Improvement Projects and the Multi-Year Financial Plan process. City Manager Roger Roecker stated at the last Council meeting, Council had asked Staff to work on water and sewer rates. Staff looked at what the needs were for water and sewer utilities and looked at a couple of rates. Interim Director of Administrative Services Cindy Edge stated she took into account changing 80% consumption to 70% and also looked at changing the minimum consumption from 2000 to 3000 gallons to see what that would do to the rate structure. In addition, prior to this had the last General Fund budget session and there were things left undone so Budget Manager Katina Hampton has prepared a schedule to try to summarize where the City was and where the City is now with the change to the effective rate from the effective +3% rate and is ready to show the impact of that with Council in either direction. Cindy Edge stated before going into rates she would like to address a couple of items from the last meeting about water and sewer system and rates. Friendswood contracts for meter reads, they are done every other month depending on the area of town, there are 4 cycles that divide up the City, when the reads come back and are uploaded to the system a report is generated that has highs and lows, there �°-- are some exceptions where it kicks things out to review, when the reads are extremely high they are re- read before billing, when citizens get bills that they question they will go back and re-read. The City has 08/24/2009 3205 ...., been asked if they estimated and it is only estimated on rare occasions but for the most part do not estimate unless extreme circumstances. In rate setting process there was a comparison of neighboring cities such as Alvin, Pearland and League City. Rates are set by the needs of the utility so Friendswood's needs, debt service and working capital the City may have may be different than neighboring cities. There are all kinds of ways that utilities may do their billing especially on sewer, cannot really compare to other cities. The income that is generated by the water and sewer fund stays in the water and sewer fund except the City does not have a transfer from the water and sewer fund to the General Fund which covers indirect costs. Cindy Edge stated her salary comes from General Fund but she spends a significant amount of time in water and sewer, that is done citywide from the Engineering Department to Public Works, those areas Staff cannot directly say this is water and sewer but determines a percentage of salaries and costs like in Information Technology (IT) Department, does this annually, is direct calculation based on salaries and anticipated expenses. When rates were reviewed and looked at from different angles with the criteria Council gave, can get to a per thousand of$2.90 from the $3.50 where the City is now, would like more time to thoroughly review so can make sure all is correct. Councilmember Barr stated it is less and should be good for everybody. Councilmember Hill stated when comparing rates to neighboring cities would like to emphasize that Friendswood bills bi-monthly and other cities bill monthly. Cindy Edge stated with three Staff personnel, the bi-monthly works with a small Staff, postage would be more and meter reads would be more if did more often and would also need more Staff. Councilmember Barker stated will this satisfy need for more revenue to take care of water and sewer bonds and debts. The City Manager stated yes but has to be looked at annually, also mistakes were not made changing the rate previously, had bond rating increase which is a significant thing and resulted in interest rate decrease which was not projected, decreased amount of money that was borrowed, delayed the timing and other things as well. Councilmember Hill stated when issue was looked at before in October was possibly looking at 6% on bonds too and that is a big difference on actually what can be issued to them. Cindy Edge stated the actual rate was 4.8% which makes a big difference. Mayor Smith asked if Cindy Edge „�,,, feels comfortable with preliminary numbers and she stated she would like other Staff to look at it. Mayor Smith stated there is still time before adopting and Council concurred. Cindy Edge stated she recommends if Council decides to change rates to do it before October, the sooner the better. Mayor Smith stated the sooner the City does a rate reduction the better. Councilmember Barker thanked Cindy Edge for her work on this. Councilmember Holbert asked Public Works Director Kaz Hamidian about totaf consumption today compared to last year and Kaz Hamidian stated he checked and compared the last three months in 2009 and compared to the same months in 2008. In June 2009 the average was 4.95 million gallons and in June 2008 it was 6.2 million gallons, the maximum water usage was 11 million gallons in June 2008. In July 2009 average was 4.65 million gallons with the max of 7.2 million gallons, July 2008 average was 5.3 million gallons and the max was 7.8 million gallons. In August 2009 (24 days so far) the max is 5.14 million gallons with the average of 3.92 million gallons, August 2008 max was 7.48 million gallons and the average was 4.52 million gallons. Mr. Hamidian stated more people are conserving water, there have been a lot of water leaks this year due to drought. Interim Director of Administrative Services Cindy Edge stated the City bills in arrears so it may be a little bit deceiving. City Manager Roger Roecker explained the handout Budget Manager Katina Hampton gave to Council and stated the alarm permit revenue was not included in the proposed budget but is included in the handout. Interim Director of Administrative Services Cindy Edge stated one of the things Staff did was look at fuel since there had been a downward trend. It has reduced 34% but if fuel costs jump then may have to come later and ask for more, next set are things included in the budget that had funding sources in other areas, the next group is Forces At Work which are still included based on funding at effective tax rate. Katina Hampton stated the budget team went through all the items and Cindy Edge stated items highlighted in the green can be funded through General Fund Balance and meet criteria of Financial Policy. Katina Hampton stated in the revised column if Council so chooses and removes the items in ,,..,, green for possible funding through the undesignated Fund Balance then it frees up some of the items 08/24/2009 3206 .._ below line to be funded. Councilmember Barr asked if the green items are funded through the General Fund then can all other decision packages be funded on the list that is not in green and Katina Hampton answered yes. Councilmember Barr asked is there no tax increase to the citizens and Katina Hampton responded correct. City Manager stated are not saying that is what Council needs to do but only if they so choose. Mayor Smith stated items in green could come out of"savings" and pull $360,000 out of that savings for all one-time capital expenditures in the proposed budget. Katina Hampton stated the number is closer to$410,709. Cindy Edge stated the policy states that the Fund Balance retainer can be used for emergencies, one-time expenditures that do not increase recurring operating costs, major capital purchases and start-up expenditures for new programs undertaken at mid-year. The City Manager stated budget requests listed on the back of the handout were voluntarily pulled off by Staff to trim and not be considered in the proposed budget. Mayor Smith read aloud what those items are such as children's library associate, an additional patrol vehicle, traffic signal at Sunset and Briarmeadow, Parks Superintendent, laborer, full time police officer, Concrete sealing machine and a Mayor and Council coordinator. Councilmember Barr asked what reserve balance amount is and Interim Director of Administrative Services Cindy Edge answered it is the projected undesignated reserve balance and there is $5.5 million with commitments of $1 million for Mud Gully and $1 million for powntown on the General Fund side. Mayor Smith asked about the anticipated Federal Emergency Management Agency (FEMA) reimbursement check and Cindy Edge answered that they predicted the City would have the check at end of this fiscal year. Councilmember Hill asked about the amount and Cindy Edge stated $3.5 million which is mostly for debris. Councilmember Barker asked about Item 3 emergency notification service on the decision package. Assistant Fire Marshal Brian Mansfield stated the old system is going away so it would ,._. have to be replaced, Galveston County is revamping. Councilmember Hill asked if it would be ongoing and Brian Mansfield stated it would be annual. Councilmember Reid asked about the parkland dedication fund and what are the fees that would be collected and Interim Director of Community Development Morad Kabiri answered that it depends on where the permit is pulled, if the area is maxed then would not collect, other areas would pay $300 fee depending on the zone. Community Services Director James Toney stated it would be a neighborhood park fee. Cindy Edge stated Staff would check it since it shows no revenue for the upcoming year. Mayor Smith stated it depends on the development coming in. Councilmember Barker asked about carpet replacement and if it can wait. City Manager stated the replacement would be in the Council Chamber and upstairs. James Toney stated the carpet has rolls in it and can be a safety hazard, carpet has rips and tears, it was done without last year and this would be the second year in the budget that it has not been funded, if it comes out. Councilmember Hill stated he thinks the Council facilitator is pointless and not effective and street repair should be budgeted and not make Public Works Director Kaz Hamidian have to come to them for money later. Councilmember Reid spoke in favor of the facilitator and stated the facilitator has added a lot and helps Council stay on goals and help with prioritizing, need to continue and has worked for the past year, was a great benefit, is worth the money to continue funding. Councilmember Hill stated part of the problem Council has had has been because of the goal setting meetings with the facilitator. Councilmember Barr stated he appreciates entryway signs being put in as well as decorations with Community Appearance Board (CAB) matching, would be happy with just one sign and not all three. Councilmember Reid stated if a package deal is done can have cost savings for signs. Community Services Director James Toney stated there is a $2000 per sign savings if done together. Councilmember Barker stated with the recession should not spend money on entryway signs and decorations and would not be against it with a better revenue stream. Councilmember Barr stated if the City were looking at a tax increase he would agree but are not talking about tax increase. Councilmember Barker stated he would rather spend money on police personnel or other personnel �-- rather than signs and decorations. Councilmember Reid asked if revenue increased because economy was better the City could do the signs later. Mayor Smith used a mowing tractor as an example and 08/24/2009 3207 � stated the City wiil need the best equipment possible in peak of mowing months, the further expenditures are pushed then the better chance of having the economy improve, a downturn would put things in a different perspective. The City Manager stated Staff will go in whatever direction Council wants to go, this item was ranked #6 by Staff so it is important and needed. Councilmember Holbert asked about the Harris County number estimation and Interim Director of Administrative Services Cindy Edge stated Staff were told to expect 15% less from Galveston County and applied the same strategy to Harris County, should have numbers by the end of this month. Councilmember Holbert stated the City was conservative with revenue projections, if they fall in line with 3-4% increase the City could have additional revenue. Mayor Smith stated he hates to see the City whittle away on the conservative nature with the way Staff has always done the budget, in long run the City is upside down, will not stretch $15 to $25 million, have been conservative and frugal in the past, usually have money left over at the end of the year, never had numbers in the red at the end, some subjective items are hard to measure such as aesthetics, hopes continue to offer in favor of taxpayers. Andy Rivera stated the budget is dynamic because of different forces at play and can amend at a future date, is a good working document. Councilmember Holbert asked about Harris County if it is $40 million, take the most conservative and it is still a lot of revenue that is currently not plugged into the budget. Councilmember Barr stated Police Chief Bob Wieners had stated a police officer was not needed at the last meeting, he also feels if a police officer is needed it is more important than an entryway sign but Chief Wieners stated one was not necessary so also did not need a police vehicle. Councilmember Barker asked about entryway signs and lights, landscaping and watering. Community Services Director James Toney stated that was all included. Councilmember Barr stated the Community Appearance Board (CAB) had discussed and talked about using solar lighting, has worked on this a long time and rejected in the budget last year. Councilmember Reid stated all 3 signs should be done but save the money but wait until the beginning of the year to make sure are okay financially. Mayor Smith asked about locations for the entryway signs and Councilmember Barr stated FM 2351, new EI Dorado Road and FM 518 toward League City. ....R Mayor Smith asked City Manager Roger Roecker about the Public Hearing for the budget and the City Manager stated the formal Public Hearing should be September 14, 2009. Mayor Smith asked about a revised proposed budget being on the website and the City Manager stated yes. Councilmember Reid stated she wants #19 for overtime to be included and Councilmember Barker agreed. Mayor Smith stated he heard streets, entryway signs, Christmas lights and facilitator were issues. Councilmember Holbert asked why not have Public Hearing, make data available and see what the public has to say, there is not that many items, going through each individually is not necessary until hear from the public. Mayor Smith stated all items in green would be separated out to be paid for by General Fund balance and the rest would be kept in and funded through budget. Counci�member Barr asked if Staff could list out the items in green in a separate document or separate column for the public at the next meeting. Councilmember Rivera complimented Staff on their hard work and sacrifices, is a good working budget. Interim Director of Administrative Services Cindy Edge asked about the proposed Community Services Administrative Position, if that is left in cannot complete the funding of the rest of the list. Mayor Smith stated have 3 weeks until the next meeting to make adjustments. Cindy Edge stated she will have actual certified by Harris County by the next meeting. RECONVENE INTO CLOSED EXECUTIVE SESSION Council convened into Executive Session in Accordance with the Texas Government Code, pursuant to Section 551.071 —Consultation with attorney concerning pending or contemplated litigation; a settfement offer; or a matter in which the duty of the attorney requires it. Council convened into Regular Session with no action taken later in the meeting. .^., 08/24/2009 3208 .-,. RECONVENE INTO OPEN SESSION This meeting was adjourned at 9:00 PM. , , � M or � i . . Attest: � � o� FR�ENOs � �o Delo 's Mc enzie, TRMC L� p City Secretary V v * * tA�4r� O� ���Pg � �