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Home My WebLink About03/11/1986 City Council 00228' MINUTES OF THE CITY COUNCIL MEETING HELD ON MARCH 11, 1986 The Emergency Session of the City Council of the City of The Colony, Texas, was held jointly with the Municipal Utility District and was called to order at 7:25 p.m. at the District's offices on the llth day of March, 1986, with the following Council members present: Larry D. Sample Mayor Rick Harris Councilman Helen Gray Councilman Don Amick Councilman Marlene Poole Councilman with Councilman Dodds and Councilman Arrambide absent, however, a quorum was established. Members of the M.U.D. Board present were: Sandra Whitworth President Robert Hauck V-President Johnny Spears Secretary Scott North Member 1. CONSIDERATION AND ACCEPTANCE OF PROPOSAL FROM DELOITTE, HASKINS + SELLS FOR THE CONSOLIDATION AUDIT. Bill Hall, MUD District Manager, introduced Ken Staples and George Scott from Deloitte, Haskins + Sells, who were present at the meeting to discuss and answer any questions regarding the preparation of the consolidation audit services their company proposes to perform. He then turned the floor over to Mr. Staples and Mr. Scott. Mr. Staples explained to the Council and Board members that their procedures would include, but would not be limited to, preparation of financial statements for the consolidated entity as if the merger was effective as of September 30, 1985; utilizing approved budgets of the City and the District they would prepare consolidated financial statements for the ended September 30, 1986; and, in utilizing discussions with and assistance by personnel in the City and the District, prepare certain projected information concerning the fiscal years ended September 30, 1987 and 1988. The cost of preparation in the first two steps would be 58,000 and it is proposed to be split 50-50 between the City and the District. The third step would be charged at a rate of between 5#0 to 580 per hour. The also advised that they would begin work in March of 1986 and the results would be provided by early April of 1986. Mayor Sample asked for more of an explanation of the three procedures as outlined in the proposal letter. Mr. Staples then handed out a draft of a combined financial statement (City/MUD) for the 8#/85 fiscal year that his company had worked up as an example. This example financial statement was then discussed at length. After discussion and questions from both the City Council and the Board members, an indepth evaluation was made of the three proposed steps and their costs. It was determined that Step 1 - Preparation of the 1985 financial statements - at a cost of 53,000 - would follow the same "format" as the example passed out in the meeting (as mentioned above) and was an absolute necessity. It was also agreed upon by both entities that what we need is to be able to give information regarding a "starting point" to the citizens. Also present at the meeting were Mr. John Boyle, the City's attorney, and Mr. Earl Hale, MUD's attorney. It was noted that there was some concern with trying to project a tax rate for the fiscal years 1987 and 1988. It was generally agreed upon that Step 2 - Preparation of the 1986 financial statements - at a cost of 55,000 - was reasonable. After further discussion with the attorney's regarding the Declaratory Judgment and still further discussion regarding the proposal, it was noted that Step 3 - Preparation of certain financial information for the fiscal years 1987 and 1988, was an optional step as it is based on an hourly basis. The Council and Board both agreed that at the time that we got to that point, we may or may not need these services. After discussion~ Councilman Amick made a Motion to accept the proposal as given by Deloitte~ Haskins + Sells to perform a Consolidation Audit in the amount of $$,000 to be split 30-30 with the Utility District. Seconded by Councilman Poole, the Motion carried with an unanimous vote. The MUD Board also passed a similar Motion unanimously. Councilman Amick made the motion to adjourn the meeting: and with a second from Cou~mtman~ Poole, the mot~ion carried with all members voting Aye. Mayor Sample then formally adjourned the meeting. APPROVED: ~_..--'L-'~r~ O.~S~ple'~ Mayor ~-'--- ATTEST: [SEAL]