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HomeMy WebLinkAbout12/14/1981 City Council 001027 MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY HELD ON DECEMBER 14, 1981 A SPECIAL SESSION of the City Council of the City of The Colony, Texas, was called to order at 6:30 p.m. with the following members present: Richard Turner Mayor Scott North Councilman Larry Sample Councilman Norman Adeler Councilman Charles Dodds Councilman and with no members absent; thus, a quorum was established. 1. ADMINISTER OATH OF OFFICE TO CHARLIE E. PARKER, COUNCILMAN PLACE 4 Mayor Turner administered the Oath of Office to Mr. Parker and, at that time, Mr. Parker took his place on the Council and did participate in the other two matters to be considered. 2. CONSIDER REVIEW OF COUNCIL ACTION REGARDING HOSPITAL PROPOSAL PROCESS At this time, Mr. Savage, City Manager, did review the legal opinion received from Rob Dillard, City Attorney, regarding the motion of support for Universal Health Systems which was made at the regular meeting held on December 7, 1981. He stated that it is the attorney's understanding that Ordinance No. 180 proposed by the City Council as an alternate to the initiated ordinance supporting Universal Health Systems did receive an affirmative majority of the votes cast at the election on November 3, 1981, and under Section 8.06 of the Home Rule Charter, Ordinance No. 180 became effective as an ordinance of the city. The Charter then states that until this ordinance is repealed or amended under Section 8.06, it is a valid and subsisting ordinance of the city and must be followed. Mr. Savage stated that the attorney then reviewed the substance of the ordinance and stated that it does direct the city manager to prepare a request for proposals for the development and construction of a full-service hospital and related services and further it provides that, upon preparation and approval by the Council of the request for proposals, notice of a Public Hearing must be published, and a hearing must be held to consider these proposals. Mr. Savage then read aloud the following summation para- graph of Mr. Dillard's legal opinion: "The proposal to go ahead and accept Universal Health Systems at this time without the requirements of Ordinance 180 being followed is not suppor- ted by either the ordinance or the Charter. In my opinion, any contract entered into with Universal Health Systems without following the provisions of Ordinance 180 would be contrary to the ordinance, the Charter provision and the wishes of the people as expressed in the referendum election." Councilman Adeler stated that he was concerned as to why the city has not taken steps to seek proposals sooner. Mr. Savage advised Councilman Adeler that the intent in the memo on the December 7 meeting was to bring the City Council up to date regarding his actions that he had taken in the month preceding the election and further to request their input on this process. He did state that in the first period, which runs from July 1 through December 31, Methodist Hospital and Universal Health Systems were the only ones involved, and he did feel that he should give the Council the option of waiting until after this time period before going out for proposals. Councilman Sample said his concern was the evasiveness of the legal opinion provided to them by Mr. Dillard. Councilman North stated that he felt like Mr. Dillard did clarify the Council's position adequately. After further brief discussion, Councilman North stated that he would like to make a motion based on the attorney's legal opinion regarding -1- 001028 City Ordinance 180 and based on Chapter 8 of the Home Rule Charter, that the action taken at the December ? Council meeting to support Universal Health Systems in their application for a Certificate of Need be rescinded. The motion was seconded by Councilman Parker. Howevver, at this time, Councilman Parker made an amendatory motion clarifying that the Council also begin the proposal process by advertising and having the proposals returned within thirty days. Seconded by Councilman Adeler, the amendatory motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None Mayor Turner then called for a vote on the main motion on the floor, as amended. The motion was passed by the following roll call vote: Ayes: Councilmen North, Adeler and Parker Noes: Councilmen Sample and Dodds 3. DISCUSS DRAFT AUDIT REPORT FOR THE FISCAL YEAR 1980/81 Mr. Savage introduced Paul Zucconi and Michael Moore, representatives of the audit firm of Peat, Marwick, Mitchell & Company. Mr. Zucconi stated that he did intend to make only general comments regarding the rough draft of the audit at this time and would welcome the asking of any questions that the Council might have regarding this draft document. He advised the Council that many of the statistical tables were still not included and that the letter to management was still being prepared. He advised the Council that generally the books of the city were in good order and thanked Mr. Savage and Financial Assistant Jane Barton for their assistance during this audit period. At this time, Mr. gucconi reviewed the following financial statements: 1. Combined balance sheet--all fund types and account groups 2. Combined statement of revenues, expenditures and changes in fund balance--all governmental fund types 3. Statement of revenues, expenditures and changes in fund balance--budget and actual--general fund 4. Notes to combined financial statements The Council then briefly asked questions regarding this document. Councilman Sample noted that the variance on our Certificates of Deposit interest was as low as 9%. Councilman Parker asked if a Security Depository Statement was necessary for the city to have when investing funds. Mr. ~ucconi said that this is checked as part of the ~udit procedure but it is not recorded unless the city is in violation. After further discussion, Mr. Savage advised the Council that at the December 21 meeting the final audit would be presented to them and that at a meeting in January the management letter will be presented. Councilman North asked if this audit could have a positive effect upon our upcoming bond issuance. Mr. ~ucconi answered that it certainly could help the city at this time. There being no further action to be taken, Councilman Dodds moved the meeting be adjourned. Seconded by Councilman North, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None Mayor Turner adjourned the meeting at ?:17 p.m. CE CARROLL, CItY SECRETARY ~ 2~