Loading...
HomeMy WebLinkAbout12/18/1985 City Council MINUTES OF THE CITY COUNCIL MEETING HELD ON DECEMBER 18, 1985 The EMERGENCY SESSION of the City Council of the City of The Colony in conjunction with the M.U.D. Board was called to order at 8:30 p.m. at the offices of the Municipal Utility District on the 18th day of December, 1985, with the following members in attendance: Larry D. Sample Mayor Rick Harris Councilman Tom Arrambide Councilman Helen Gray Councilman Don Amick Councilman Charles Dodds Councilman Martene Poole Councilman The M.U.D. Board was already in session with the following members present: Sandra Whitworth President Robert Hauck V-President Johnny Spears Secretary William Longo Member Scott North Member i. CONSIDERATION OF AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, FOR THE ANNEXATION OF A TRACT OF LAND APPROXIMATELY 50 ACRES IN SIZE, BEING GENERALLY LOCATED IN THE NORTHEASTERN PORTION OF THE CORPORATE LIMITS, AND ALSO KNOWN AS THE B.B.OWENS PROPERTY, AND BEING DUE NORTH OF SQUIRES DRIVE. Mayor Sample read the captionof the Ordinance as written: AN ORDINANCE ANNEXING ADJACENT AND CONTIGUOUS TERRITORY TO THE CITY OF THE COLONY, TEXAS; FINDING THAT ALL NECESSARY AND REQUIRED LEGAL CONDITIONS HAVE BEEN SAT- ISFIED; PROVIDING THAT SUCH AREA SHALL BECOME A PART OF THE CITY AND THAT THE OWNERS AND INHABITANTS THEREOF SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES OF OTHER CITIZENS AND BE BOUND BY THE ACTS AND ORDINANCES NOW IN EFFECT AND TO BE HEREAFTER ADOPTED; PROVIDING FOR AMEND- ING AND CORRECTING THE OFFICIAL BOUNDARIES OF THE CITY AS HERETOFORE ADOPTED; PROBIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE AND DECLARING AN EMERGENCY Councilman Dodds moved to approve the ordinance as written. Councilman Harris seconded the motion. Mayor Sample stated that the City of Frisco did vote last night in their Council meeting to give the Colony the boundary adjustment agreement although it has not actually been signed as yet. The motion carried with a unanimous roll call vote. The Mayor called for a recess until such time as the M.U.D. Board was ready to begin the joint meeting. 2. CONSIDERATION OF THE JOINT AGREEMENT BETWEEN THE CITY OF THE COLONY AND THE MUNICIPAL UTILITY DISTRICT. President Whitworth addressed the next item on the M.U.D. agenda which was consideration of the City/M.U.D. agreement. Mr. Longo stated that he would like to hear what the City Council has to say regarding this item. Mayor Sample stated that the Council has not gone over the contract in a meeting yet and that the contract has not been accepted. Mr. Longo then introduced a Resolution rejecting the contract and outlined some of his reasons for the rejection. Mr. Longo stated that it was his understanding that in the beginning it was decided that both attorneys for the City and the M.U.D. would work together on a satisfactory agreement and bring it back for approval. Longo went on to say that he was upset because the City had the contract drawn up and accpeted it before the M.U.D. Board or M.U.D. attorney could review it. Longo asked for the Resolution rejecting the contract and asked for the two attorneyes to meet and work on the agreement further. Mayor Sample said this is not a final contract, only a working draft and the question is how to handle it. Mayor Sample asked Mr. Longo what he felt is wrong with the agreement as it is now written. Mr. Long said there were several points. He made reference to several previous meetings regarding the merger. President Whitworth said that the before the draft was prepared these questions need to be answered and they had not been. Longo went on: A. Personnel - benefits B. Longevity - minor difference C. Classification - pay plans, no a major difference D. Hospitalization - No major problem, use same agent of record E. Departmental structure F. Financial Areas - Fiscal Budget, Bond Indebtedness G. Potential litigations H. Existing Maintenance Bonds I. Transfer of Water Line J. Combined Tax Rates Mr. Longo said these questions need to be answered and he stated he was not speaking for the rest of the Board just for himself. Johnny Spears stated that the City Resolution passed earlier had indicated a point by point plan would be draw up and that this agreement is not that type of plan. Mr. Longo said that the Board was not even aware that the contract was on the agenda and felt the City is trying to put pressure on the Board and feels the agreement needs to be taken back to the drawing board. Mayor Sample asked how long this could go on. Mr. Longo said the Board has waited weeks for a replay to the qestions asked and has received none yet. Longo said he feels the City is the hold up. Longo went on to say the only way the Board knew the contract had been on the agenda was through the papers. President Whitworth said she did not like the section that stated the City manager would be able to tell the District Manager what to do but if sgmething went wrong there would be no responsibility on the city's part. Bob Hauck stated that is a minor problem that can be worked out but he is concerned if the merger can legally take place. Mayor Sample said there will have to be a Declaritory Judgement in District Court stating that it is a legal merger. John Boyle, City Attorney stated that the Judgement is incorporated into the agreement and that the agreement will have to be signed before it can go to court for ruling. Bob Hauck said he would like to see some financial questions answered regarding the M.U.D. assets, tax rate, etc. He requested a financial study be done, and also asked about the M.U.D. bonds. Mr. Boyle said the Deciaritory Judgement refers to bonds, outstanding contracts, notes, etc. Mr. Hauck said he feels all these problems can be worked out in a short while between the two attorneys, saying he was not talking about as long as 6 months. Hauck said he did not like the tone of the contract, stating it referred to the Ray study. Johnny Spears also stated he feels a detailed finance study is necessary. Councilman Amick stated that his conclusion from the Ray study was that the M.U.D. is no longer needed. Councilman Dodds agreed and said the M.U.D. had even passed a resolution to that effect. Mr. Longo said that their resoiuton set a time table to merge in 1988. President Whitworth suggested that the two attorneys meet and that an outside auditing firm be retained to do a complete financial study. Councilman Amick asked what the study will show. Mr. North said it would show the tax rate, separately and combined and if the tax rate will go up with the merger. Mayor Sample stated he did not see how the tax rate could go up. Mr. Longo asked what if the IBM property is re-zoned agricultural. Mayor Sample said that will not happen. Mayor Sample then said the question is when can we merge and is it good for the citizens of The Colony and if it is what timetable would M.U.D. want. Mr. Longo stated 1988. Mr. North said he feels the Council and the Board need to sit down and work on this first draft together, stating that M.U.D. was upset because the Council went public before the M.U.D. was eonsuited. Mr. Boyle said that once something is turned over to the City it becomes a matter of public record and that the delivery of the contract was not an intent to "beat anyone to the punch". Mr. North said the two should take the document and being working with it and to forget the timetable. Mayor Sample said the timetable is important stating I two entities is only causing problems for the City and that the City will benefit from a coordinated effort from both. Mayor Sample went on to say that he needs to be negotiating with Frisco and he can ongo so far without becoming one entity. The Mayor then said if we need to change the wording then lets do it, but to give the attorneys some direction so we won't waste anymore time. After a lenghty discussion regarding the concept of the contract it was generally decided that at least two things were needed before an agreement could be reached: 1. A complete financial study 2. Two attorneys meet together to work out legal details. Johnny Spears said he had a problem with the City Management contract portion of the agreement. Mayor Sample said that was necessary for a smooth transition. Earl Hale said one constructive thing could come from this meeting and that would be if the Board and the Council would direct their respective managers to take proposals for an outside financial study. Councilman AMick asked if the Management Contract would help get a positive Declaritory Judgement. Both attorneys said it was irrelevant. Earl Hale, M.U.D. attorney said the October 1, 1986 date is not acceptable and that a date cannot be set until the aforementioned points had been answered. Councilman Dodds asked if the Board could just receive the report as the Council did and not reject or accept it but use it as a be- ginning document to work with. Councilman Amick said that M.U.D by considering a resolution rejecting the agreement is doing just what they had asked the City not to do. Mr. North said he had not seen the resolution before he came to the meeting tonight and said he has no problem with receiving the report as long as the verbage can be worked on. After several minutes of discussion President called for an end to the discussion. Johnny Spears said he would like to see the financial study brought back by February 15, 1986 and also a report from both attorneys with a satisfactory agreement by that date also. Janice Carroll said she did not think the financial study could be completed by that time. Mayor Sample suggested calling auditors Deloitt, Haskins and Sells, who have done both City and M.U.D. audits for 1984/85 and ask them how long it would take. It was generally agreed that theCity and M.U.D would pay for the study equally if not too costly. Bob Hauck moved to direct the City Manager and the District Manager to seeks out proposals for a Proforma Consolidation Statement. The motion was seconded by Scott North and carried by all members voting Aye. Mr. Hall asked for a not to exceed amount. It was decided the limit should be $10,000.00. Mr. Hauck also moved to direct the attorneys to rewrite the contract as soon as possible. The motion seconded by Mr. North carried with all members voting Aye. At this time Mr. Longo asked to go to the next agenda item, a Resolution proposed by him rejecting the contract. This was presented in the form of a motion before the Board. There was no second therefore the motion died. At this time Mr. North moved to adjourn the Board meeting with a second from Mr. Longo. The motion carried with all members voting Aye. Councilman Dodds moved to adjourn the Council meeting with a second from Councilman Pooie the motion carried with all members voting Aye. Mayor Sample and President Whitworth adjourned the joint meeting at 10:15p.m. APPROVED: ~D. Sa~-~le, Mayor APPROVED: