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The Plainview City Council met on September 28, 2010 at 7:00 p.m. in the City Council
Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting
was posted in City Hall at 3:45 p.m. on September 24, 2010. Mayor John C. Anderson
presided. Councilmembers present were: Cathy Waggoner- District 2, David G. Garcia -
District 3, V.O. Ortega- District 4, Wendell Dunlap- District 6 and Roland Nash - District 7.
Councilmembers Charles Starnes - District 1 and Ron Trusler- District 5 were absent.
Staff members present were: Greg Ingham -City Manager, Leslie Pearce -City Attorney,
Mike Gilliland- Director of Public Works, Will Mull- Police Chief, Dale Simpson- Director of
Civil Service, Sarianne Beversdorf- Director of Finance, Vanessa Rincon- Accountant II,
Tammy Adams - Accounting Coordinator, Eric Turner -Main Street/CVB Coordinator,
Rusty Powers -Fire Chief, Jeffrey Snyder- Assistant City Manager and Belinda Hinojosa-
City Secretary.
News Media Representative: Deborah Zacher - Plainview Daily Herald
Guests Present: Vince Vialle and Paul N. Jasin
Mayor John C. Anderson delivered the invocation and led in the Pledge of Allegiance.
Councilmember Waggoner moved to adopt the consent calendar. The motion was duly
seconded by Councilmember Dunlap and carried by unanimous vote. Items approved
on the consent calendar included the approval of the minutes of September 14, 2010
and September 23, 2010; the granting of excused absences to Councilmember Starnes
and Trusler; and authorizing the Mayor to sign Amendment No. 001A: Immunization
Branch — Locals to Department of State Health Services Contract #2011- 035859.
Greg Ingham, City Manager presented for consideration on second reading Ordinance
No. 10 -3529, an Ordinance Adopting and Approving the Budget for the Fiscal Year
beginning October 1, 2010, and terminating September 30, 2011, and making such
appropriations for each department, project and account; severability clause;
cumulativeness clause, conflicts clause; effective date. He stated we are now at the
actual adoption stage for the 2010 -2011 Budget. We have had one budget workshop,
two public hearings and approval on first reading. The total budgeted expenditures for
fiscal year 2010 -2011 are $22,731,580. The total budgeted revenue for major operating
funds for fiscal year ending September 30, 2011 is $20,197,555 and the total budgeted
expenditures are $20,083,055. The General Fund revenues are $11,309,705. He
stated the sales tax has seen a slight increase and the City is proposing a $0.01
increase in the tax rate. The General Fund expenditures are $11,289,920.
The Solid Waste Management Fund revenues for fiscal year ending September 30,
2011 are $2,829,600 and the expenditures are $2,838,195 which is about a $100,000
increase from last year. The Water & Sewer Fund revenues for fiscal year ending
September 30, 2011 are $6,035,500 and the expenditures are $6,359,940 (which
includes $360,000 in expenditures from the Water & Sewer System Improvement
Fund). The budget includes an increase in water, sewer and garbage fees along with a
tax rate increase of $.01. The projected monthly increase for water, sewer and garbage
for a typical winter charge is $1.33. The monthly tax increase on an average
homestead value of $76,917 is $.64.
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September 28, 2010 Page 1 of 7
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Dunlap moved to approve Ordinance No. 10 -3529 on second reading.
The motion was duly seconded by Councilmember Garcia and carried by unanimous
vote.
Mr. Ingham presented an action to ratify the Property Tax Increase Reflected in the
fiscal year 2010 -2011 Budget. He stated the Legislature requires that the cities ratify
the property tax increase reflected in the budget. The budget has a tax rate of $0.5785
which is a $.01 increase from last year.
Councilmember Nash moved to ratify the property tax increase reflected in the budget
for fiscal year 2010 -2011. The motion was duly seconded by Councilmember Ortega
and carried by unanimous vote.
Mr. Ingham presented for consideration on second reading Ordinance No. 10 -3530, an
Ordinance Levying Municipal Ad Valorem Taxes for the City of Plainview, Texas, for the
Year 2010, and directing the assessment and collection thereof; severability clause;
cumulativeness clause; conflicts clause; and effective date. He presented a chart with
a tax rate comparison of other cities in the same population range. Their average tax
rate is $0.6630. The proposed tax rate for the City of Plainview is $0.5785 which is the
tax rate that is proposed in the budget. The rollback rate for 2010 -2011 fiscal year is
$0.6200. The adopted tax rate for 2009 -2010 is $0.5685 and the effective tax rate for
2010 -2011 is $0.5638.
Mayor Anderson asked for public comment. There was no public comment. Mayor
Anderson moved that the property tax rate be increased by the adoption of a tax rate of
fifty -seven and eighty -five hundredths cents ($.5785), which is effectively a 2.607308
percent increase in the tax rate. The motion was duly seconded by Councilmember
Dunlap.
City Secretary Belinda Hinojosa asked for a record vote of the Council with the Council
voting as follows:
Mayor Anderson — Yes
Councilmember Starnes — Absent
Councilmember Waggoner — Yes
Councilmember Garcia — Yes
Councilmember Ortega — Yes
Councilmember Trusler — Absent
Councilmember Dunlap — Yes
Councilmember Nash — Yes
The motion carried by unanimous vote.
Mr. Ingham presented for consideration on second reading Ordinance 10 -3531, an
Ordinance of the City of Plainview, Amending Chapter 25 Article II Entitled "Rates And
Charges" (Water) of the Code of Ordinances of the City of Plainview, Texas;
Cumulativeness Clause; Conflicts Clause; Severability Clause; And Effective Date. In
comparison with other cities with a population of 20,000 to 25,000, the average water
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rate for 5,000 gallons is $26.95. The current rate for 5,000 gallons is $20.35 and the
proposed rate for 5,000 gallons is $20.75 which is well below the average rate of the
cities in the comparison.
The base rate would increase from $12.25 to $12.50 per month and the rate per
thousand would increase from $1.62 to $1.65 per thousand under 25,000 gallons. The
rate per thousand over 25,000 gallons will go from $1.79 to $1.84.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Ortega moved to approve Ordinance No. 10 -3531 on second reading.
The motion was duly seconded by Councilmember Waggoner and carried by
unanimous vote.
Mr. Ingham presented for consideration on second reading Ordinance No. 10 -3532, an
Ordinance of the City of Plainview, Amending Section 25 -42, Entitled "Monthly Sewer
Rates" of the Code of Ordinances of the City of Plainview, Texas; Severability Clause;
Cumulativeness Clause; Conflicts Clause; Effective Date. In comparison with other
cities with a population of 20,000 to 25,000, the average sewer rate for 5,000 gallons is
$24.50. The City of Plainview's current rate is $16.45 for 5,000 gallons and the
proposed rate is $16.80 for 5,000 gallons which is well below the average rate. The
base rate would increase from $8.95 to $9.15 and the rate per thousand would increase
from $1.50 to $1.53 per thousand.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Waggoner moved to approve on second reading Ordinance No. 10-
3532. The motion was duly seconded by Councilmember Nash and carried by
unanimous vote.
Mr. Ingham presented for consideration on second reading Ordinance No. 10 -3533, an
Ordinance of the City of Plainview, Texas, Amending Section 22 -32 Entitled "Refuse
Collection Fees; Water Termination" of the Code of Ordinances of the City of Plainview,
Texas; Severability Clause; Cumulativeness Clause; Conflicts Clause; Effective Date.
The refuse fees would increase by 3 %. The current fee for one residential unit is
$17.30 and the fee would increase to $17.82; two residential units on one water meter
would go from $34.60 to $35.64; three residential units on one water meter would go
from $51.90 to $53.46 and four residential units or apartment house or trailer park on
one water meter with three yard container would go from $69.20 to $71.28.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Nash moved to approve Ordinance No. 10 -3533 on second reading.
The motion was duly seconded by Councilmember Garcia and carried by unanimous
vote.
Mr. Ingham presented for consideration all matters incident and related to the issuance
and sale of "City of Plainview, Texas, Tax and Waterworks and Sewer System (Limited
Pledge) Revenue Certificates of Obligation, Series 2010 ", including receipt of bids
therefor and the second reading and final adoption of the ordinance authorizing the
issuance of such certificates of obligation.
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September 28, 2010 Page 3 of 7
Bidder
True Interest Cost
FirstSouthwest
3.330113%
SAMCO Capital Markets
3.349589%
BOSC, Inc.
3.359365%
Citgroup Global Markets, Inc.
3.365050%
The Baker Group
3.404265%
FTN Financial Capital Markets
3.430069%
Morgan Keegan & Co., Inc.
3.432237%
Southwest Securities, Inc.
3.481383%
UBS Financial Services, Inc.
3.497597%
Steme, Agee & Leach, Inc.
3.512117%
Hutchinson, Shockey, Erley & Co.
3.530348%
He introduced Mr. Mike Gilliland, Director of Public Works to provide the water and
sewer system improvement projects that would be paid for from such certificates of
obligation. Mr. Gilliland stated the towers at Smythe, South Date, Beech and Baltimore
need repairing. The cost of repairing and coating these four tanks would be comparable
to a new tank. He is recommending a composite type tanks because they have less
coated surface to maintain in the future. This would increase storage capacity by
450,000 gallons.
The second tank project would aid pressure problems in far west Plainview, facilitate
future westward growth and substantially cut energy cost.
The Texas Department of Highways will be replacing US Hwy 70. The City will be
required to rebuild 33 water line crossings; and approximately 80,000 feet of water line
under pavement will need to be relocated. The cost for this part of the project would be
approximately $2,000,000. On the wastewater side, the City will be required to re -line
an existing 10 and 15 inch liner. This project is approximately $500,000.
The Milwee and Juniper lift stations have degrading structural concrete and pumping
control systems that need to be addressed. It is possible that this may be worked into
one lift station and pipeline project. The project cost for this project is approximately
$1,000,000.
The City is also looking into acquiring an emergency power generator for the
wastewater treatment facility. TCEQ requires a backup power source. Currently the
City uses a dual circuit feed. This has worked in the past, but he is worried that a storm
event could place too much of a load.
Mr. Ingham introduced Vince Vialle with Specialized Public Finance. He stated this
ordinance authorizes the 2010 Certificates of Obligation. If Council approves this
Ordinance on second reading, the projected closing date and date to receive funds is
Tuesday, October 26, 2010.
He reviewed the Rating report from Standard & Poor's Rating Services. The City was
assigned a AA- rating which is an excellent credit rating.
The City received twelve bids as follows:
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September 28, 2010
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Raymond James & Associates, Inc.
3.769286%
The low bidder is FirstSouthwest.
He presented the Sources and Uses as follows:
Source of Funds
Par Amount of Bonds
Reoffering Premium
Original Issue Discount
Accrued Interest from 9/15/2010 to 10/26/2010
Total Sources
Use of Funds
Total Underwriter's Discount (0.830 %)
Costs of Issuance
Deposit to Debt Service Fund
Deposit to Project Construction Fund
Rounding Amount
Total Uses
$8,685,000.00
$133,035.40
($59,046.10)
$32,100.15
$8,791,089.45
$72,099.64
$85,000.00
$32,100.15
$8,600,000.00
$1,889.66
$8,791,089.45
He also presented the debt service schedule. He recommended passage of the
Ordinance and that the City award the bid to First Southwest.
Mr. Ingham presented the projected base rate increases due to water and sewer system
certificate of obligation issuance. The rate increases would be implemented after the
first of the year in 2011. The projected monthly increase in base water rate would be
$6.02 and the projected monthly increase in base sewer rate would be $1.40.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Nash moved approval on second reading of Ordinance No. 10 -3535.
The motion was duly seconded by Councilmember Ortega and carried by unanimous
vote.
Mr. Ingham presented for consideration on second reading Ordinance No. 10 -3534, an
Ordinance of the City of Plainview Amending Ordinance No. 09 -3516 to Appropriate
Funds in the General Fund and Various Revenue and Capital Funds Pursuant to
Section 5.07 (A) and (D) of the Plainview City Charter Allowing For Supplemental
Appropriations in the 2009 -2010 Budget; Cumulativeness Clause; Conflicts Clause;
Severability Clause; and Effective Date. He stated that we are transferring funds out of
the General Fund, Sanitation Fund, and Utility Fund to enable us to do additional
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September 28, 2010 Page 5 of 7
projects, replace equipment, do major maintenance, and to continue efforts to
strengthen our position in terms of encouraging job growth in Plainview.
$300,000 is being transferred to the Equipment Replacement fund to purchase
equipment outright. This is helping the budget for next year. We also have funds for
some planning functions.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Nash moved to approve Ordinance No. 10 -3534 on second reading.
The motion was duly seconded by Councilmember Ortega and carried by unanimous
vote.
Eric Turner, Main Street/CVB Coordinator presented for consideration Resolution R10-
232, a Resolution of the City Council of the City of Plainview, Texas, Authorizing the
Submission of a Texas Capital Fund Main Street Improvements Program Application to
the Office of the Texas Department of Agriculture; Establishing a Designated Area of
Downtown Plainview as Slum or Blighted; and Authorizing the Mayor to Act as the City's
Executive Officer and Authorized Representative in all Matters Pertaining to the City's
Participation in the Texas Department of Agriculture Texas Capital Fund Main Street
Improvements Program. This Resolution has three points (1) authorizes Main Street to
apply for grant; (2) designated 7 and 8 on side of Fair Theatre as blight area; and (3)
allows Mayor to act as official representative. He explained that area could be referred
to as blight or slum because it is not up to ADA standards. Funds from this grant would
be used to get the sidewalks in shape to meet ADA standards.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Nash move to approve Resolution R10 -232. The motion was duly
seconded by Councilmember Ortega and carried by unanimous vote.
Mr. Turner presented for consideration Resolution R10 -233, a Resolution of the City
Council of the City of Plainview, Texas, Authorizing the Filing of a Grant Application for
Downtown Improvements with the Texas Department of Agriculture Main Street
Program; Designating an Authorized Official and Authorizing Such Official to Execute all
Documents Necessary; and Pledging Compliance to the Awarded Grant Program. This
authorizes the submission of the grant application for the approximate amount of
$150,000 for the Texas Capital Fund for Main Street improvements. The City Council
would commit $45,000 in cash and in -kind. This Resolution also designates Mayor
Anderson as the authorized official to execute all necessary documents.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Dunlap moved to approve Resolution R10 -233. The motion was duly
seconded by Councilmember Waggoner and carried by unanimous vote.
Mr. Ingham presented for consideration and to take necessary action regarding Ballot
for Texas Municipal League Intergovernmental Risk Pool Board of Trustees Election for
Place 6, Place 7, Place 8 and Place 9. Mr. Ingham stated he serves on the board and
has for the past 19 to 20 years. He feels the board is doing a good job. Plainview has
received $200,000 in equity returns since 2003 and is projected to receive $43,000 in
equity returns for the 2010 -2011 fiscal year. He said there are four places for election.
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Councilmember Ortega moved to vote for Mary Gauer for Place 6, Kevin Caddell for
Place 7, Larry Melton for Place 8 and Andres Garza for Place 9. The motion was duly
seconded by Councilmember Waggoner and carried by unanimous vote.
There being no further business, Mayor Anderson adjourned the meeting at 8:03 p.m.
Belinda Hinojosa
City Secretary
City Council Minutes
September 28, 2010 Page 7 of 7