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HomeMy WebLinkAbout07/05/1982 City Council 001207 MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY HELD ON JULY 6, 1982 A REGULAR SESSION of the City Council of the City of The Colony, Texas, was called to order at 7:30 p.m. at the CATV Building, with the following members present: Gene Pollard Mayor Scott North Councilman Larry Sample Councilman Norman Adeler Councilman Charlie Parker Councilman Charles Dodds Councilman Marlene Poole Councilman and with no members absent, a quorum was established. 1. CITIZEN INPUT Mayor Pollard asked if there were any comments from citizens regarding additional items. There were none. 2. RECEIVE CITY MANAGER'S STATUS REPORT He advised them that he had received information from the Texas Municipal League regarding the two rate cases, one being with Southwestern Bell and the second being filed by Lone Star Gas. He explained that the Lone Star Gas rate increase filing was for the intra-state transmission system and would be heard by the Texas Railroad Commission rather than the PUC. He advised the Council that 127 building permits had been issued in the last nine months. He did remind the Council that the Revenue Sharing Hearing would be conducted at the July 8th Town Hall meeting and that the Police and Fire Departments would give their budget presentations at this time. 3. CONSIDERATION OF RESOLUTION ACCEPTING THE DESIGNATION OF THE COLONY PUBLIC LIBRARY AS A COMMUNITY LIBRARY Mayor Pollard read aloud the following resolution: A RESOLUTION ACCEPTING THE DESIGNATION OF THE COLONY PUBLIC LIBRARY AS A COMMUNITY LIBRARY UNDER THE LIBRARY SYSTEMS ACT OF 1969. WHEREAS, the 61st Legislature of the State of Texas approved House Bill 260, authorizing the State Library Systems Act of 1969; and, WHEREAS, the Texas State Library and Archives Commission is responsible for the administration of the Library Systems Act of 1969; and, WHEREAS, the Texas State Library and Archives Commission has authorized the designation of The Colony Public Library as a Community Library under the Library Systems Act of 1969, and as a member of the North Texas Library System; and, WHEREAS, The Colony Library may derive benefit from partici- pation in the State Library System: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of The Colony, Texas, accepts the designation of The Colony Public Library as a Community Library under the provisions of the Library Systems Act of 1969. APPROVED ON THE DAY OF , 1982. /s/ GENE POLLARD, MAYOR ATTEST: /s/ JANICE CARROLL, CITY SECRETARY 001208 Councilman North clarified that this is the first step in becoming a part of the state-wide library system and, based on this under- standing, moved that the resolution be approved. The motion was seconded by Councilman Dodds. Mr. Savage did note that the passage of this resolution would make the library automatically eligible to receive a sum of $500 from the state this year. Councilman Sample asked what are the city's obligations in fulfil- ling the requirements. Mr. Savage did clarify that the library does have three years to attain certain standards and that this is an obligation that the library is entering into. With that understanding, Mayor Pollard did call for a vote on the motion on the floor. The motion passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 4. CONSIDERATION OF CITY FINANCIAL INVESTMENT PROCEDURES Mr. Savage stated that in the spring in 1981 the city adopted an investment strategy of shopping for interest rates on the investment of jumbo certificates of deposit. Prior to that time, he explained, idle funds were invested only at the city's official depository. In the past year, several procedures have been followed regarding the investment of idle funds, Mr. Savage explained. First, telephone quotes have been obtained from a variety of financial institutions on the day of investment. The city regularly obtains quotes from the following institu- tions: The Colony Bank, United Savings, Gibraltar Savings, Richardson Savings, Texas Federal Savings, First Texas Savings, Lamar Savings, Colonial Savings, Frisco Bank and the First City Bank of Lewisville. Secondly, the investment decision is made on the basis of the interest rate paid, the cost of making an investment and the FDIC and FSLIC insurance protection available. He stated that he also had attached for their review copies of the monthly investment schedules for the last six months. He did add that Mr. Almon did send him a copy of a report by one of his firm's analysts, however, Mr. Savage stated that it is a detailed and very complicated report on the particular savings and loan institutions in Texas and is not a general explanation of savings and loans and how to rate them. He told the Council that at this time he had not come across any source that would provide financial stability information on savings and loans and banks in the State of Texas. In reviewing the last six months' investments, he did note that there is a problem at Colonial Savings and Loan, as we now have three $100,000 CDs on deposit there. He stated that he had been advised that although they were from separate city accounts, they were in fact not insured above $100,000. Mr. Savage further explained that the only exception to this $100,000 limit is with the city depository, which has pledged security accounts at Republic Bank. Mayor Pollard stated that in talking with Mr. Rush, President of The Colony Bank, he did discover that the security documents had not been executed with the bank and did direct the City Manager to do so immediately. Councilman North at this time stated that he would like to make a motion regarding financial procedures for the city. Mayor Pollard stated that he would not entertain a motion at this time. Mayor Pollard stated that it was his position and, he felt, that of the Council, that their duty is to maintain full security on all financial deposits and to direct and guide the city manager in this direction. There followed a lengthy discussion concerning the risk of investing funds in savings and loans at this time. Councilman North stated that savings and loans generally did quote an interest rate 1½% above banks and felt that if prudent investments were made, the investments should continue at savings and loans. Councilman Sample stated that he did disagree with Councilman North's position and that tax money from the people of The Colony should be invested as safely as possible with very little risk involved. Councilman Adeler said that he did have confidence in our banking and savings and loans systems and had no concern in investing in financial -2- 001209 institutions as long as the limit was kept at $100,000 for insurance purposes. Councilman Dodds stated that he was not knowledgable in this area and would defer this to other members of the Council. Councilman Poole stated that savigns and loans primarily met their loans on houses and land and that banks have a more diversi- fied loan package, therefore, she is in favor of banks for this reason. She did feel that liquidation of financial institutions was becoming prevalent in these troubled economic times. Council- man Sample again stated that he would like for the city manager to find some sort of rating for financial institutions. Mayor Pollard answered that he would not like for the city to get into the business of rating but did feel that prudent investments should be made. After further discussion, Mayor Pollard did state that he felt it was the consensus of the Council that the bank agreement on the secured funds should be executed and that no more than $100,000 should be deposited in each institution. 5. CLOSED DOOR SESSION DEALING WITH LAND ACQUISITION FOR CITY FACILITIES 6. CLOSED DOOR SESSION DEALING WITH PERSONNEL--REVIEW OF CITY MANAGER Mayor Pollard announced that the next two items would be dealt with under closed door as authorized by Vernons Annotated Civil Statutes, Article 6252-17. He did state that no action would be taken when the Council reconvened in open session. There being no further business to be conducted by the Council, Councilman North made a motion to adjourn the meeting. Seconded by Councilman Dodds, the motion carried by the following vote: Ayes: Ail members present voted aye Noes: None Mayor Pollard adjourned the meeting at 12:05 a.m. GE~ POLLARD, MAYOR ATTEST: JANICE?CA[~ROLL, CITY SECRETARY -3-