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Home My WebLink About08/02/2010 City CouncilAugust 2, 2010 MINUTES OF REGULAR SESSION OF COUNCIL HELD ON August 2, 2010 The Regular Session of the City Council of the City of The Colony, Texas, was called to order at 7:12 p.m. on the 2nd day of August 2010, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: Joe McCourry Mayor Present Allen Harris Councilmember Present Richard Boyer Councilmember Present Jeff Connelly Mayor Pro-Tem Present Kirk Mikulec Councilmember Present Perry Schrag Councilmember Present Joel Marks Councilmember Absent And with six council members present a quorum was established and the following items were addressed: 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS AND 111'1~OCLAMATIONS: Call to Order Invocation - Councilman Schrag gave the invocation. Pledge of Allegiance to the United States Flag Salute to the Texas Flag Citizen Input-Bob Bourbon, of 6408 Landmark, thanked everyone for the Veteran's day event. He is overwhelmed by the support of the City. Announcement of upcoming civic events and activities 1- Library Director Joan Sveinsson updated the council on summer reading programs including "Fired up about Reading" and various upcoming events for children, teens and adults. She noted home schools are school of the month. The library will be hosting Home Buyer and Home Seller seminars. Chilton Auto Repair Library is the online resource of the month. She encouraged all to utilize the free services and attend the free events provided by the library. 2.0 'AGENDA 2.1 Consider approving minutes of council meetings held July 20, 2010 [Mikulec absent] (City Secretary) 2.2 Consider approving a resolution casting the city's vote for Troy Powell to serve on the Denco 9-1-1 Board of Managers (Council) 1 These items are strictly public service announcements. No action will be taken and no direction will be given regarding these items. August 2, 20 10 2.4 Consider approving a resolution authorizing the city manager to execute an Agreement Regarding Ground Lease regarding financing development of Wynnwood Peninsula, L.P. (Johnston) 2.5 Consider approving a resolution adopting the city's Quarterly Investment Report for the period ending June 30, 2010 (Finance) 2.6 Consider approving an ordinance scheduling a public hearing for the City of The Colony's proposed Municipal Budget for fiscal year 2010-2011 at 7:00 p.m. on August 17, 2010 (Finance) 2.7 Consider approving a resolution authorizing the city manager to execute a License and Use Agreement with Carnival Americana, Inc. to hold a carnival November 4-7, 2010 at Five Star Complex, and authorizing extended hours of operation (Parks and Recreation) Motion to approve above consent agenda items - Schrag; second by Connelly; motion passed with all ayes Councilman Connelly requested that item 2.3 be removed from the consent agenda and discussed separately. 2.3 Consider approving the operating budget for the 2010 American Heroes festival to be held November 6, 2010 at the Five Star Complex, and consider waiving usage fees for the American Legion to host 1 mile, 5k and 10k runs at Stewart Creek Park in conjunction with the festival (Parks and Recreation) Councilman Connelly confirmed that the park usage fees were only waived during the 5KIIOK race. Motion to approve - Connelly; second Boyer, motion passed with all ayes 3.0 REGULAR AGENDA ITEMS 3.1 Discuss and consider approving a resolution directing publication of Notice of Intention to Issue Certificates of Obligation (Finance) Finance Director Rebecca Lai presented information regarding the issuance of the Notice of Intention. She gave the breakdown of projects, with related costs, and options for repayment. The projects include the purchase of police cars, an ambulance, paving Lion's Club Park parking lot, a Public Service building, pump station repairs, and water lines. The overall issuance is $3,500,000, the general fund portion of $2,615,000 and Utility portion of $885,000. The council would have the option of interest only payments for the first year. Marti Shew from First Southwest stated the Council would just need to set a "not to exceed" amount for the notice. The detail could be determined prior to the issuance. The Council discussed both the interest only and principal payment option. Councilman Connelly brought up the option to issue the notice in the amount not to exceed $5,500,000. 2 August 2, 2010 Motion to approve the publication of the Notice of Intention to issue Certificates of Obligation in an amount not to exceed $3,500,000 - Harris; second Mikulec; motion passed with five ayes and Schrag voted against. 3.2 Presentation of the City of The Colony Preliminary Municipal Budget for FY 2010-2011 and discuss possible dates for a budget work session (Finance) Finance Director Rebecca Lai explained the budget presented was balanced. Ms. Lai provided information regarding fund balances, reduction areas, breakdown of expenditure by department, the sources of revenues for the different funds, the number of days in each fund balance, and existing debt. She stated the budget does reflect a '14 cent reduction in the property tax rate and a 2.5 percent reduction in utility rates. Ms. Lai discussed the issuance of additional debt. Councilman Connelly asked about the required noticing for taxes. He said per household number seems to diminish the value of the tax rate reduction. Councilman Connelly would support cutting the Council's portion of the budget further. Mayor McCourry stated the reduction in tax rate shows the citizens the council is committed to the tax reduction goal. Councilman Boyer indicated the reduction in tax rate shows a new attitude and approach to government. Councilman Harris stated he was happy to see the reduction in water rates. He prefers to leave the tax rate the same following a "profit sharing" type of approach. Councilman Mikulec supported continuing to drive down the property tax rate. The Council prefers to continue budget discussions at the pre-council work sessions. No action. 3.3 Discuss and provide direction regarding the F.M. 423 streetscape design, landscaping, utilities, and other roadway enhancements (Parks and Recreation) City Manager Troy Powell stated the funds will not be available to complete both the underground utilities and the landscaping towers. It is more cost effective to bury the lines during the construction project. The towers could be added at a later date. The landscaping of the medians is included in the Denton County portion of the funding for the project. No action. Executive session was convened at 8:21 m (recess from 8:17 to 8:21) 4.0 EXECUTIVE SESSION 4.1 A. Council shall convene into a closed executive session pursuant to Section 551.071 (1)(A) of the TEXAS GOVERNMENT CODE to seek legal advice from the city attorney regarding pending litigation between John McDonald and Cheryl McDonald and the City of The Colony. B. Council shall convene into a closed executive session pursuant to Section 551.072 of the TExas GOVERNMENT CODE to deliberate the purchase, exchange, lease, or value of real property. C. Council shall convene into a closed executive session pursuant to Section 551.071 (1)(A) of the TExas GOVERNMENT CODE to seek legal advice from the city attorney regarding contemplated litigation between KCK Utility Construction, Inc. and the City of The Colony. 3 August 2, 20 10 Reconvene to Open Session 8:48 p.m. 4.2 A. Any action as a result of executive session regarding pending litigation between John McDonald and Cheryl McDonald and the City of The Colony. No action. B. Any action as a result of executive session regarding the purchase, exchange, lease, or value of real property. Motion to authorize the City Manager to execute a real estate sales contract on the property located at 6900 Main Street for the price discussed in executive session. - Harris; second Boyer, motion passed with S ayes. Schrag voted against. C. Any action as a result of executive session regarding contemplated litigation between KCK Utility Construction, Inc. and the City of The Colony. No action. ADJOURNMENT And with no further business to discuss the meeting was adjourned at 8:49 p.m. APPROVED: Jae Mc _ u or City of th "Col y ATTEST: ~v Christie Wilson, TRMC City Secretary X 4