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HomeMy WebLinkAbout03/19/1998 City Council oo684a MINUTES OF THE WORK SESSION OF THE CITY COUNCIL HELD ON MARCH 19, 1998 The WORK SESSION of the City Council of the City of The Colony, Texas was called to order at 7:05 p.m. on the 19t~ day of March 1998, at City Hall, 5151 N. Colony Boulevard, The Colony, Texas, with the following council roll call: Mary Blair Watts, Mayor Present Bill Longo, Councilmember Present Bemetta Henville-Shannon, Councilmember Present David Stanwick, Councilmember Absent Wilma Avey, Councilmember Present John Dillard, Councilmember Present Dave Kovatch, Councilmember Absent And with five present a quorum was established, the following items were addressed: 5.0 Discussion items: 5.1 Contract between the City of The Colony and North Texas Municipal Water District for wastewater services Mr. Carl Rhein, North Texas Municipal Water District, gave a brief overview of the services provided by the district. He explained that the district currently serves 550,000 people and stated that the contract offered the City is used by several other cities. He further expressed a desire to work with the City of The Colony in the future. Lanny Lambert, City Manager, explained that the district would handle the City's wastewater treatment flow and the contract being offered is not one of service but of membership in the regional wastewater treatment system. As a member, a plant will be built on our behalf but once joined, the City cannot pull out. The City's other option would be to expand our plant with City resources. Based on current population projections, with an additional 8,000 citizens, the plant must be expanded. The City can enter into a contract with Frisco and save some of the cost. The City of Frisco will contract with the district with or without the City of The Colony. Mr. Lambert continued giving statistics and other available options. Mr. Lambert reiterated that once joined, the City could not pull out. Mayor Watts pointed out that if the City chooses to expand the existing plant, the City cannot get out of that debt either. Mr. Lambert said that one of the requests of the City had been to serve on the board of directors, however, North Texas will not allow City representation at this time. Mayor Watts clarified that if the City contracts with North Texas, the cost goes against North Texas' credit line and not the City's. Councilman Avey asked if there would be a "pay as you go" option. Mr. Rhein responded that is not possible. If the district builds to capacity, participating cities are obligated at 100%. Councilman Henville-Shannon commented that the City could form an advisory board that will make decisions and pass on suggestions to the North Texas Municipal Utility District Board of 3/19/98 Directors. Discussion followed with Mr. Rhein regarding the cooperatiYe operating efforts of the district and participating cities. Mayor Watts made the point that if the City chooses not to go with the regional plant and expanded the City's existing plant, service could be provided to Austin Ranch but not to Wynnewood Peninsula. Mr. Lambert responded that obviously the most economical decision would be to join the regional plant concept. In order to provide service to Wynnewood Peninsula, an expensive underwater crossing from Wynnewood Peninsula to the existing plant would have to be constructed or a sewer line attached to the bridge, which would require approval by the Highway Department and would be very expensive and difficult to obtain. Discussion followed concerning the ability to service these two areas. Mayor Watts addressed Lucilo Pefia, Billingsley Company, and inquired what the initial construction plans were for Austin Ranch. Mr. Pefia responded that there will be two different multi- family developments under construction at the same time. Groundbreaking is scheduled for mid-May with infrastructure completed by the end of the year. Sewer services will be needed at that time. Councilman Dillard asked how soon aider joining the district the plant would be operational. Mr. Rhein responded it would take approximately two years. Councilman Dillard asked if we expand our own plant, how long would it take until the City could handle new areas. Hal Jones, engineer, responded that it would be some time in 1999. Mr. Jones reminded Council that Austin Ranch would need sewer lines by the end of this year. Plant expansion would also depend on the availability of funds. Councilman Longo requested comments from Mike Lynch. Mr. Lynch stated that he had been reviewing the contract and continued commenting on several aspects of the contract. More discussion followed regarding the pending decision of the City of Frisco. 5.3 Agenda items from March 16, 1998 Regular Session Regular Session agenda item 2.7 (Consideration of an agreement between the City of The Colony and The Colony Economic Development Board) tabled from 3/16/98 Mr. Lambert provided the Council with a copy of a cont,'act between the City and Betty McKean, Director. He explained that when he cancelled this contract, EDC no longer had any administrative authority to handle the operation of the 4A Board. He continued saying they are being organized as a corporation and must prepare a budget, business plan and mission statement. Since the sales tax election (60 days ago), the Board has not had adequate time to prepare these items. Mr. Lambert's intent was to give them interim financing to allow them adequate time to prepare these documents properly. The Board has scheduled a budget meeting for March 25. Betty McKean addressed the Council explaining what the Board has recently accomplished and plans to discuss in upcoming scheduled meetings. She expressed the need for more 2 00685 3/19/98 communication between the City Council and the EDC Board. She also requested a joint meeting to be held with the City Council and the 4A Board on April 13. Ms. McKean further explained that funds (from sales tax) would not be received until September 1998. An interim budget is being prepared to submit to Council so that the EDC can continue operation until funds are received. The EDC does not want to create a budget, for public review, without adequate time to deliberate. Mr. Lambert stated that discussion from the previous'meeting was to loan EDC $8,300 per month, which is the remainder oftbe City's budget, established for that purpose. Repayment would begin in September 1998. Councilman Avey commented that a loan should not be made without a repayment plan. Mr. Lambert suggested appointing a member of the Council to serve as a liaison to the 4A Board. Discussion followed regarding the responsibilities of the EDC and accountability to the City Council. Councilman Avey asked what was being proposed as far as action for next meeting. Mr. Lambert suggested a loan with no dollar amount. Mayor Watts wants to see a loan for three months in order to give the Board time to prepare a budget. Discussion followed regarding the possibility of Ms. McKean's office moving back to City Hall. Mayor Watts expressed concern that more time was being spent in moving office3 than working on economic development for the City. Mr. Lambert stated that if a loan is not made by the City, another resource would be a loan from the bank, however, that would not be in the City's best interest. Councilman Longo said he did not feel it would be good business for the EDC to start out "in the red". He further stated that City Council and staff have attracted more businesses than the EDC. Discussion followed regarding the availability of funds to the 4B Board as well as the 4A Board. Comments were also made that the 4B Board is also operating without a director. Input was received fi'om each of the 4A Board members present: Dr. Richard Seidler, Chairman, stated that the EDC wanted to utilize as many available resources as possible without duplicating efforts. Jorge Diaz expressed his appreciation for Betty McKean's efforts, which resulted in the success of the recent sales tax election. He said the City has already benefited from her participation. John Gordon said the Board would welcome a member of Council to be a liaison to maintain good communication. Kate Jarvella stated she felt it only natural for a new corporation to make a small loan to initiate operations. She further stated that the revenue to be received was not a variable, but guaranteed to be received beginning in September. Mr. Lambert stressed the common desire of all to make the EDC operation successful. 00685~ 3/19/98 5.2 Settlement agreement between BNRCC and CITY OF COLONY Settlement agreement is not yet ready but will appear on agenda for Monday, March 23. 5.4 Agenda items for March 23, 1998 Special Session Mr. Lambert briefly outlined the agenda. With no further business to address, Mayor Watts adjourned the meeting at 9:53 p.m. ary l~ir W~ts, ayor ATTEST: ..... -:- ~d' -- n..,x.~__ ,-,_..,:_ D,,v,,t ~ty Secretary 4