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HomeMy WebLinkAbout01/04/1982 City Council 001041 MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY HELD ON JANUARY 4, 1982 A REGULAR SESSION of the City Council of the City of The Colony, Texas, was called to order at 7:30 p.m. with the following members present: Richard T~rner Mayor Scott North Councilman Larry Sample Councilman Norman Adeler Councilman Charlie Parker Councilman Charles Dodds Councilman and with no members absent; thus, a quorum was established. 1. BRIEFING SESSION At this time Dan Savage, City Manager, reviewed the upcoming agenda items regarding update information and action that the Council might want to consider taking at this time. 2. APPROVAL OF MINUTES Councilman Sample noted that in the minutes of the Special Session held on December 14, 1981, under Agenda Item No. 2, Consider Review of Council Action regarding Hospital Proposal Process, he did ask the following question: "Did the attorney know what the actual motion was regarding this agenda item?" He also noted that the staff's response to this question was no that he did not have the actual wording of the motion lending support to Universal Health Systems. Councilman Sample requested that this question and answer be included into the minutes. Councilman Parker then moved that the minutes of December 14, as amended, and the minutes of December 21, as presented, be approved. Seconded by Councilman North, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 3. CONSIDER PROPOSED ORDINANCE SUSPENDING REQUEST OF TEXAS POWER & LIGHT FOR AN AMENDMENT TO THE FUEL COST FACTOR TARIFF SCHEDULE At this time, Mr. Savage advised the Council that Texas Power & Light has recently filed a request with the City for an amendment to the fuel cost factor formula. He stated that this request is the result of a recent District Court order which prohibits affiliate sales of fuel between Texas Power & Light and Texas Electric Service Company because these firms are both owned by Texas utilities. Although Texas Power & Light intends to appeal the District Court decision, it has submitted the proposed fuel cost factor amendment in an attempt to comply with this order. The issue in this case, Mr. Savage explained, is the question of whether or not prior approval of fuel charges and fuel services from affiliates must be obtained from regulatory authorities before these charges can be passed through the fuel clause. If the court order is upheld, then TP&L will have to reimburse TESCO over $80 million because of past fuel transactions. He told the Council also that at this time the City is not sure of the position that will be taken by the Texas Municipal League as the cities involved could be pro or con either decision made. He also stated that an ordinance is included in the packet suspending the proposed amendment for 120 days from January 13, 1982, to allow further study. At this time, Mr. Savage introduced John Turner, Manager of the Texas Power & Light office in The Colony. Mr. Turner added that the judge, in fact, agreed with the philosophy of this plan but said in the definition of affiliate companies, this type of arrangement cannot be made. He did affirm that Texas Power & Light has appealed this to the Circuit Court of Appeals. Mr. Turner also explained to the Council that TP&L also recommended the -1- oolo suspension of this for further study by each city and will have no effect on the present fuel system cost. After a brief discussion by the Council, Mayor Turner then read aloud the following captioned ordinance: AN ORDINANCE SUSPENDING THE EFFECTIVE DATE OF PROPOSED REVISIONS OF THE FUEL COST FACTOR TARIFF SCHEDULE OF TEXAS POWER & LIGHT COMPANY FOR 120 DAYS FROM JANUARY 13, 1982; PROVIDING THAT THE RATES OF SAID PUBLIC UTILITY SHALL REMAIN UNCHANGED DURING THE PERIOD OF SUSPENSION; AND PROVIDING FOR NOTICE HEREOF TO SAID PUBLIC UTILITY. Councilman North moved that this ordinance suspending amendment to the fuel cost factor formula be approved. Seconded by Councilman Adeler, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 4. CONSIDERATION OF AWARDING BID ON COMMUNITY DEVELOPMENT DEPARTMENT EQUIPMENT STORAGE BUILDING AND AUTHORIZATION ORDINANCE ON SAME Mr. Savage stated that the awarding of the bid for this storage building facility was tabled at the December 21 meeting for further study and, at this time, he proceeded to review again the bids. He advised them that the bids were received on Friday, December 17, 1981, and that Mike Cummings of Hunter Associates, Inc. did review the bid proposals to make sure there were no irregularities. He then presented to the Council again the following tabulation of the bids: Vendor Tyler Bldg. Systems Tom Sharp, Inc. Base Bid 24' x 75' Bldg. $10,797.00 $12,511.00 Alternate 1 30' x 75' Bldg. 12,130.00 14,650.00 Alternate 2 24' x 100' Bldg. 13,542.00 15,044.00 Alternate 3 With 20-year Finish 24' x 75' Bldg. 12,608.00 12,511.00 30' x 75' Bldg. 14,248.00 14,650.00 24' x 100' Bldg. 15,880.00 15,044.00 He advised the Council that the budget included $15,000 for this project. The engineering fee will be $1,375. This leaves $13,625 to be used for the actual construction cost. He stated that at the December 21 meeting, the Council had several questions regarding these bids that he would try to address at this time. He advised the Council that the proposed structure will be walled on three sides, and the fourth side will be left open. The cost of enclosing this fourth side would be in a range of $4,000 to $6,000 depending upon the number of doors and type of finish. He also added that, if the Council decided to totally enclose the building, it would also probably be necessary to consider adding electrical work and possibly an exhaust fan. The question of security could be addressed in several ways. Totally enclosing the building is one method, Mr. Savage advised.~ A second method is to fence in the building. If fencing is used, an area outside of the building could also be enclosed and fencing similar to that enclosing the MUD water well site behind City Hall could probably be obtained for about $1,000. The Council's primary concern at the last meeting was regarding the 20-year finish on the exterior of the building and the advantage of going with this extra cost. He explained to the Council that this type of surface provides an advantage in terms of minimizing future maintenance costs. If the building is expanded at a later point or panels have to be replaced because of damage, this finish can be matched. Although this surface adds nothing to the building's utility, it does provide -2- 001043 for reduced maintenance and a better cosmetic appearance over the life of the building. The cost of the 20-year finish on the base building is $1,714. Regarding the proposed structure's ability to withstand high winds, Mr. Savage explained that the specifications called for the structure to meet recommended wind load of 20 psf and uplift of 15 psf criteria for this geographical area. Also, X-bracing is required on the side walls and roof sections. He then recommended that the Council consider the following cost breakdown: Engineering Fee $1,375.00 Base Bid 10,797.00 20-year Finish 1,714.00 Fencing 1,000.00 Total Cost $14,886.00 Councilman Adeler expressed concern that the city might outgrow the usefulness of the building within five years. Mr. Savage stated that he felt the city would possibly outgrow the location but not the usefulness of the actual building, and it could be moved or expanded at that time. Councilman Dodds stated that he had no problem with the need for an equipment storage building but did have a problem with an additional cost for a 20-year finish. Councilman North stated that he felt that it is important to maintain a conservative attitude during this budget year, particularly due to unexpected costs that might arise and suggested that the building should certainly be purchased but the amenity of the 20-year finish should be omitted. At this time, Mayor Turner read aloud the following ordinance caption: AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE FIRM OF IN THE AMOUNT OF FOR THE CONSTRUCTION OF A COMMUNITY DEVELOPMENT DEPARTMENT EQUIPMENT STORAGE BUILDING; ATTACHING THE APPROVED FORM OF THE CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE. Councilman Dodds moved that this ordinance be passed awarding the bid to Tyler Building Systems in the amount of $10,797. This motion was seconded by Councilman North. It was the consensus of the Council that this equipment storage building should be fenced in the near future for security purposes. At this time, Councilman Parker stated that he must express his concern that a consultant's fee in the amount of $1,375 must be paid by the city. He further stated that Mr. Bradburry, Director of Community Development, is capable of developign specifications for this type of structure. Mr. Bradburry advised that possibly if he had adequate time he could prepare specifications such as this, but it would require extensive study. Mr. Savage stated that the engineer should be involved in an item such as this and timeliness itself was another factor to consider. Mr. Parker answered that he certainly did not feel that the engineer did not do an adequate job for the city on this particular project but, in the interest of financial conservatism, he felt that staff could have done an equally good job and, of course, for less money. In a brief discussion regarding the fencing to cut down on vandalism and theft, Mr. Savage advised that the west side of this fencing would be wooden for screening while the remainder of the fencing would be chain link. At this time, Mayor Turner called for a vote on the motion on the floor. The motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 5. CONSIDER SETTING A DATE FOR SALE OF BOND ON FM 423 PROJECT Mr. Savage reviewed for the Council the background of this particular agenda item. He stated that a bond election was held last spring authorizing the sale of $290,000 in general obligation bonds for the purpose of widening FM 423. In order to have the bond proceeds on hand, it is necessary that the City Council authorize Dan Almon of Rauscher Pierce Refsnes, Inc., the city's financial advisor, to proceed with the sale of these bonds. He stated that Mr. Almon did advise him that he would try to schedule the sale of the bonds for the period between January 18 and February 15. He further stated that the staff is now in the process of providing him with information for the bond propspectus which will be prepared. A draft of 001044 this document should be available for the Council to review in about two weeks. Mr. Savage stated also that Mr. Almon will have to apply with the rated agencies for new ratings on these bonds. Presently, the city's bond rating is a "Baa". The cost for this bond sale is $6,400, which also includes the municipal bond attorney's fee. Pete Tart, of McCall, Parkhurst & Horton, will be handling the legal aspect of this sale. Councilman North asked what is the interest rate on bonds sold now. Mr. Savage answered that, although many factors are involved in establishing that interest rate, he felt that our bond should be sold at an interest rate in the neighborhood of 12%. Councilman North asked how this would effect construction plans. Mr. Savage advised that the bid for construction will not be awarded until these monies are in a proper escrow account. At this time, Councilman Dodds moved that Dan Almon, of Rauscher Pierce Refsnes, Inc., be authorized to proceed with the proposed bond sale and to select an appropriate date for this sale. This motion was seconded by Councilman Adeler. Prior to voting, Councilman Parker asked what the expected term would be for this particular bond issuance. Mr. Savage advised it would be ten years or less. The Council did concur that the city should make every effort to invest these monies for as long a term possible before the funds must be put in an escrow account with the state, which will earn no interest for the city. Mr. Savage advised the Council that these funds should make a minimum of 2% for the city. At this time, Mayor Turner called for a vote on the motion on the floor. The motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 6. UPDATE ON HOSPITAL REQUEST FOR PROPOSAL PROCESS Mr. Savage reviewed again the calendar of dates important to this process, the list of hospitals that had been mailed requests for proposals and his tentative meeting schedule with interested hospitals. Councilman North advised Mr. Savage that Rod Bell with Presbyterian Hospital is presently working on a letter of intent to be mailed to the city by Friday. The Council took no action on this agenda item. 7. CITY MANAGER'S STATUS REPORT Mr. Savage stated that the Board of Aldermen for the Town of Eastvale will meet Tuesday night and discuss the pending police services contract. He advised the Council that we had received a letter from the Denton County Tax Appraisal District Office regarding the formula used to arrive at the increased cost billed to the city. He stated that Reverend Wallace, of The Colonial Baptist Church, has been contacted and advised that he should bring before the Council in the near future plans regarding future construction for this church. Councilman Sample noted that a second portable building had been moved in on the site. Mr. Savage stated that they would check on this. He advised the Council that three paid firemen started to work for the city today. Chief Gothard has completed the specifications for the ambulance bids and staff will be placing an advertisement for bids in this Thursday's paper. He is also currently working on a proposal for a new bank depository contract which should be coming before the Council in February. Regarding the newly-appointed Goals Committee, Mr. Savage stated that he was planning an orientation meeting sometime during the week of January 18 and would like to have at this meeting professionals in the field of municipal planning to give the Goals Committee a better idea of their specific purpose. Mayor Turner recommended that the Council of Governments be contacted on this. He advised the Council that no building permits had been issued by the Department of Community Development for the month of December. This makes a total of 36 building permits issued for the first quarter of our fiscal year versus a total of 264 permits issued for the first quarter of the previous year. He advised the Council also that Mr. Zucconi with the firm of Peat, Marwick, Mitchell & Company has asked the staff to consider the adoption of the financial policy that should be followed by staff and Council. Mr. Savage also stated that Texas Waste Management did begin picking up waste in The Colony Friday, January 1, 1982, and at this time, the city has received no major complaints. He did remind the Council that Wednesday at 7:30 p.m. a work session has been called regarding the rental ordinance proposed by Councilman Sample -4- 001045 and that the attorney would be present. He also advised that Monday, January 11, the Council would meet to discuss districting. 8. CLOSED DOOR SESSION REGARDING APPOINTMENTS TO THE PLANNING AND ZONING COMMISSION At this time, Mayor Turner announced that the Council would meet in a closed- door session dealing with personnel, as authorized by Article 62520-17 of VACS. 9. CONSIDERATION OF APPOINTMENTS TO THE PLANNING AND ZONING COMMISSION Upon reconvening in open session, Councilman Dodds moved that Sandra Pollard be appointed to Place 2 on the Planning and Zoning Commission and that George Scalise be appointed to Place 5 on the Planning and Zoning Commission. Councilman Parker seconded this motion, and the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None There being no further action to be taken by the Council, Councilman Dodds moved that the meeting be adjourned. Seconded by Councilman North, the motion was passed by the following vote: Ayes: All members present voted aye Noes: None Mayor Turner adjourned the meeting at 9:28 p.m. RICHARD TURN~,~, MAYSR ATTEST: ANIC~ARROLL, CITY ~E~RET~RY -5-