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HomeMy WebLinkAbout06 0912 minThe Plainview City Council met on September 12. 2006 at 7:00 p.m. in the Cry Counc Chamber's of-the Plainview City Hall at 901 Broadway. The agenda for this meeting was posled in City Hall at 4:05 p.m. on September 8 2006 Mayor John C. Anderson presidedt Councilmembers present were: Kelvin Tipton-District 1, Cathy Waggoner- District ~;~, Belinda Pena-District 3, Ron Trusler-Distdct 5 and Roland Nash-District 7. Councilrlembers John N. Bertsch-District 4 and Wendell Dunlap-District 5 were absent. Staff members present were: Greg Ingham-City Manager, Leslie Pearce-City Attorney, John CaStro-Director of Community Services. John Berry-Director of Public Works, Gary Glass-Fir~ Chief, Will Mull-Police Chief, Dale Simpson-Civil Service Director, Jack Keller-Bu:lget Manager, Darryel Pierce-Water Plant Superintendent and Belinda Hinojosa. City Secretary. News Me Guests Counciln Mayor J¢ Greg Ingl Outstam~: award is acceptabl enha ncen those drinking Counciln seconded the cons( SeptembE Dunlap a Place 11 Black, Pat Norris Municipal appointmE and auth~ Greg lng 2007 is a ~ a broad ar by the citiz The total total bud¢ operating and Debt City Council dia Representative: Richard Orr-Plainv~ew Daily Herald esent: V.O. Ortega lember Kelvin Tipton delivered the invocation. hn C. Anderson led in the Pledge of Allegiance. ~am, City Manager recognized Darryel Pierce and his staff for receiving the lng Public Drinking Water System Award for 2005. The purpose of this to recognize those water systems showing initiative to exceed minimum ~ TCEQ standards; focus public attention on importance of water system lent activities; serve as an example to other water systems; and recognize er systems that have voluntarily taken the extra steps to protecl their public ater. ;mber Tipton moved to adopt the consent calendar. The motion was duly by Councilmember Pena and carried by unanimous vote. Items approved on nt calendar included approval of the minutes of August 22, 2006 and r 7, 2006; the granting of excused absences to Councilmember Wendell id Councilmember John N. Bertsch; voting for Greg Ingham, Incumbent Harold Dominguez, City Manager of San Angelo, Incumbent Place 12; Byron ~irman, Central Appraisal District Johnson County, Incumbent, Place 13; and Nortex Regional Planning Commission, Incumbent Place 14 on the Texas League Intergovernmental Risk Pool Board of Trustees Election; the nl of Joe Berry to the Coordinating Board of Economic Development; 'izing the Mayor to sign the 2007 TxDOT Airport Grant Agreement. am presented information on the proposed tax increase. He stated 2006- :hallenging year due to the increase in energy and fuel costs. The City offers 'ay of services with basically no state paid with most City services being paid ~ns. )udgeted expenditures for Fiscal Year 2006-2007 are $19,931,230 and the .~ted revenues are $~8,237,790. The total budgeted expenses for major unds (General Fund, Solid Waste'Management Fund, Water & Sewer Fund, Service) for fiscal year ending September 30, 2007 is $18,154,565. The ~inutes September 12, 2006 Page 1 of 7 27 28 General Funa Revenues for fiscal year ending September 30, 2007 is $3,715,110 in property tax, $3,045,000 in sales tax, $45,450 in license and permits, $1,219,230 in franchise tax, $232.230 intergovernmentat, $450,980 charges for services, $214,100 in fines. $285,000 in interest and $661,240 miscellaneous for a total of $9,868,340. He stated that sales tax collection has been relatively level and we are projecting a 1 ~% ~ncrease n sales tax for the upcoming fiscal year. Mr. Ingham stated the total expenditures are what it takes Lo provide the level of serwces as follows: · Police/Emergency Ops - 42 full time employees -$2,708,885 · Fire - 36 full lime employees (Fire & EMS) -$2,015,970 · EMS -$535,620 · Municipal Court/Civil Service - 4 full time em ployees -$231,275 · Public Works - 3 full time employees - $242,600 · Street Dept. Maintenance - 6 full time employees -$679,030 · Street Cleaning/Traffic Control - 5 full time employees -$322,020 · Street Lighting/Airport-S192,500 · Parks & Pool - 11 full time employees -$677,990 · Library- 5 full time employees -$344,655 · Main Street- 2 full time employees -$77,880 · Animal Control - 2 full time employees -$110,325 · Community Development - 2 full time employees -$100,330 · Code Enforcement- 3 full time employees -$150,785 · Building Operations-S83 145 · City/County Health - 2 full time employees -$147,790 · Community/Rural Health - 2 full time employees -$126,250 · Maternal & Child Health - 2 full time employees -$92,255 · Appraisal District -$92,255 Mr. Ingham stated the City had significant operating cost changes 'n the general fund with energy related costs increasing by $205,655, equipment replacement annual payment increase of $49,540 and personnel costs which includes a 3% cost of living raise for all emp!oyees and an additional 2.5% increase for police, fire and EMS in the amount of $215,080. Mr. Ingham stated the following are the projected general fund expenditures for fiscal year ending September 30, 2007: · $2,621,580- Fire/EMS/Civil Service · $2,708,885- Police · $1,022,645- Library/Park/Pool · $1,435,150- Streets/Public Works · $366,295- Health · $444,585- Community Service · $913,490 - Admin/Legal/Financial · $332,385- Non-Departmental City Council Minutes September 12, 2006 Page2of 7 He stat(; that prop Mr. Ingh~ Texas c populatic average $703,521 proposec over last Councilrr propose, carried b, public h,E ordinanc( a.m. at tt reading o at 7:00 p. Greg Ingl total projE collection includes: · Re · La1 set · Vel Mr. Ingha Managem all equiprr landfill co Waste M~ $2,636,95 The proje( are $5,71; · Wa $14 in lq · Wa: · Utili · Noir He listed $77,000, City Council I ~ that fire and police take a big chunk of the budget at $5.3 million· He noted arty taxes generate $3.7 million. ~m presented a chart which included the assessed value/tax rate comparison of lies with populations 20,000 to 25,000. Of the cities listed the average n was 23,329, the average total assessed valuation was $843,150,730 and the gross tax rate was $0.6586. Plainview is listed at 22,336 population, ,518 total assessed valuation and a proposed tax rate of $0.5349. The tax increase is a $0.02000 increase over last year's rate or 3.88% increase 'ear's rate. ;mber Ron Trusler moved to open the public hearing regarding the tax increase. The motion was duly seconded by Councilmember Nash and unanimous vote. There was no public Comment. Mayor Anderson closed the aring at 7:20 p.m. He announced that a vote on the first reading of the to adopt the proposed tax rate will be held on September 21, 2006 at 11:30 e Plainview Civic Center, 2902 W. 4th street. A vote on the second and final the ordinance to adopt the proposed tax rate will be held September 26, 2006 "n. at City Hall, 901 Broadway. am presented nformation on the 2006-2007 City of Plainview Budget. The cted revenue for the Solid Waste Management Fund is $2,626,950 with refuse and landfill/vector fees being the biggest revenue generators. This fund ;idential & Commercial Collection - 11 full time employees -$916,625 ~dfill & Non-departmental - 7 full time employees -$1,457,865 (includes debt vice) :tor Control & Recycling - 3 full time employees -$252,460 ~ stated the City had significant operating cost changes in the Solid Waste ~nt Fund with energy related costs increasing by $56,140. This fund pays for ent'as it goes. Items included in the budget this year include $250,000 for a npactor and $140,000 for a side Icad garbage truck. The projected Solid nagement Fund Expenditures for fiscal year ended September 30, 2007 is ). It is proposed that refuse collection fees increase by 4%. ted Water & Sewer Fund revenues for fiscal year ending September 30, 2007 500. This fund includes: .~r Production & Distribution - 13 full time employees - $1,827,145 (inCludes !~,00 in additional debt service to CRMWA to purchase additional water rights obertS COunty) ;te Water Treatment & Collection - 8 full time employees - $1,106,895 ¥ ACcounting & Meter services - 9 full time employees - $503,305 -dePartmental & Building Operations - $1,463,155 [:)06 CRMWA debt payment of $148,290, electricity (pumping and treatment) RMWA operating and mair~tenance $110,000, and personnel at $23,100 as inutes September 12, 2006 Page 3 of 7 30 significant operating cost changes in the Water and Sewer Fund. The projected expenditures m this fund are $6.446,100. Mr. Ingham presented a residential water rate companson of Texas cities with population from 20,000 to 25,000. The average population is 23,893, the average fee for 5,000 gallons is $22.52 and the average fee for 10,000 gallons is $35.72. The proposed fee for the City of Plainview is $18.45 for 5,000 gallons and $26.00 for 10,000 gallons. The current water base rate is $9.25 per month. The cost per 1,000 for the first 25,000 gallons is $1.40 and the cost per thousand for all water used over 25,000 gallons is $1.55. The proposed base rate is $10.90 per month. The cost per 1,000 for the first 25,000 gallons is $1.51 and the cost per thousand for all water used over 25,000 gallons is $1.67. Mr. Ingham presented a residential sewer rate comparison for Texas cities with population 20,000 to 25,000. The average fee for 5,000 gallons is $21.43 and the average fee for 10,000 gallons is $33.87. The proposed FY 2006-2007 fee for the City of Plainwew is $15.25 for 5,000 gallons and $22.25 for 10,000 gallons. The proposed wastewater rate base rate would increase from $7.80 to $8.25. The usage per 1,000 gallons would increase from $1.30 to $1.40. The proposed tapping fee schedule would be as follows: 3/4" meter $550.00 1" meter $610.00 1 ¼" meter $925.00 2" meter $1,075.00 Over 2" Calculated by overhead costs City Engineer for materials and ali Other funds are [he Bioterrorism Grand Fund; RSVP Program; Internal Service Fund - the service center has had a challenging year and this year the City has eliminated one position to keep costs down; the Fair Theatre Fund which is an enterprise fund ~s seeing a lot of activity; the Hotel/Motel Tax Fund - City officials had a meeting with Civic Center personnel Lo discuss where headed. We are seeing positive things at the Center with numbers coming down and they have segregated the civic center operating costs. They are asking the City to assist with replacing the floodng in the civic center side by allocating $19,000 in the hotel/motel tax fund balance into major improvements in the upcoming budget. Councilmember Nash moved to open a public hearing regarding 2006-2007 City of Plainview Budget. The motion was duly seconded by Councilmember Waggoner and carried by unanimous vote. There was no public comment. Mayor Anderson closed the public hearing at 7:40 p.m. He announced that a vote on the budget will be held tonight and on September 26, 2006 at 7:00 p.m. at City Hall. Mayor Anderson presented for consideration upon first reading Ordinance No. 06-3468, an Ordinance Adopting and Approving the Budget for the Fiscal Year Beginning City Council Minutes September '12, 2006 Page 4 of 7 October Appropri Cumulati commen 06-3468 fund for Counciln Councilr the bud(: Councilrr has revi~ Greg In!: No. 06-~ Entitled" the City Clause; IE 4%. 1, 2006, and Terminating September 30, 2007, and Making Such ]tions for Each Department, Project and Account. Severability Clause; veness Clause; Conflicts Clause; Effective Date. There was no public '. Councilmember Trusler moved to approve upon first reading Ordinance No. and by general consent to include $19,000 allocated out of the Hotel/Motel tax Convention Center improvements. The motion was duly seconded by ember Pena and carried by unanimous vote. ember Pena thanked staff, City Manager and financial staff for their work on .~t, ember Tipton stated that budget increases are never taken lightly and Council ~ved such and sometimes you do what you have to do. ~am, City Manager presented for consideration upon first reading Ordinance ~70, an Ordinance of the City of Plainview, Texas, Amending Section 22-32 F~efuse Collection Fees; Water Termination" of the Code of Ordinances of of Plainview, Texas; Severability-'-Clause; Cumulativeness Clause; Conflicts !ffective Date. He stated as reviewed earlier, the city rates would increase by There w~ s no public comment. COuncilmember Pena moved to approve upon first reading ()rdinance No. 06-3470. The motion was duty seconded by Councilmember Waggon,~ r. There was no public comment. The motion carded unanimously. / Mr. Ingh~m presented for consideration upon first reading Ordinance ,,N,c. 06-3471, an Ordinanc~ of the City of Plainview, Amending Sectionr 25-42, Entted Monthly SeWer Rates" clothe Code of the City of Plainview, T~xas; Severability Clause; Cumulativeness Clause; Conflicts CJause; Effective Date. The wastewater base rate would increase from $7.80 to $8.25 and the usage per 1,000 gallons would increase from $1.30 to $1.40. There wa s no public comment. Councilmember Tipton moved to approve upon first reading rdinance No. 06-3471. The motion was duly seconded by Councilmember Trusler. Mr. Ingh. Ordinanc~ Sewer E!: Clause; increase 1 ~"me $795.00 material,, There wa: reading 0 Tipton. Ti Mr. Inghal City Counci~ 'here was no Council comment. The motion carried unanimously. ~ presented for consideration upon first reading, Ordinance No. 06-3472, an of the City of Plainview, Amending Chapter 25 Article III, Entitled 'NVater, ,'tensions" of the Code of the City of Plainview, Texas; Cumulativeness :onflicts Clause; Severability Clause; And Effective Date. % meter would 'om $300.00 to $550.00, 1" meter would increase from $380.00 to $610.00; a ~r would increase from $675.00 to $925.00; a 2" meter would ~ncrease from ~ $1,075 and anything over 2" would be calculated by the City Engineer for ~nd all overhead costs. ; no public comment. Councilmember Nash moved to approve upon first rdinance No. 06-3472. The motion was duly seconded by Councilmember ere was no Council comment. The motion carried unanimously. presented for consideration upon first reading, Ordinance No. 06-3473. an Vlinutes September 12, 2006 Page 5 of 7 32 Ordinance of the City of Plainview, Amending Chapter 25 Article II Entitled "Rates And Charges" of the Code of the City of Plainview, Texas; Cumulativeness Clause; Conflicts Clause; Severability Clause; and Effective Date. He stated the current base water rate would increase from $9.25 to $10.90, the usage per 1,000 gallons would increase from $1.40 to $1.51 and the usage per 1,000 gallons over 25,000 would increase from $1.55 to $1.67. There was no public comment. Councilmember Tipton moved to approve upon first reading Ordinance No. 0-3473. The motion was duly seconded by Councilmember Pena. There was no Council comment. The motion carried unanimously. Mr. Ingham presented for consideration upon first reading, Ordinance No. 06-3474, an Ordinance of the City of Plainview. Texas, Amending the 2005-2006 Budget to Appropriate Funds. Severability Clause; Cumulativeness Clause; Conflicts Clause; and Effective Date. He stated the budget is a financial plan and during the course of the year, we encounter situations that require adjustments. Overall the City has had a good year and part of what we are doing with these amendments is actually transferring funds from operating funds to capital funds. As a whole the City is $160,000 under budget. Some of the amendments include street light construction costs, fuel costs, City Hall improvements, and $250,000 to equipment replacement fund. There was no public comment. Mayor Anaerson moved to approve upon first reading Ordinance No. 06-3474. The motion was duly seconded by Councilmember Wagga nar. There was no Council comment. The motion carried unanimously. Mr. Ingham presented for consideration upon first reading, Ordinance No. 06-3467, an Ordinance denying the rate increase proposed by the Southwestern Public Service Company; requiring the reimbursement of municipal rate expenses; finding that the meeting complies with the open meetings act: making other findings and provisions related to the subject; and declaring an effective date. On May 31 2006, Southwestern Public Service Company, a wholly-owned subsidiary of Xcel Energy, Inc. filed a rate- filing package with the City of Plainview to ncrease utility rates by approximately $47.9 million. SPS' rate-filing package includes reconciliation of its fuel expenses for the two- year period of January 1, 2004 through December 2005. The City joined a coalition of cities known as the Alliance of Xcel Municipalities ("AXM"). AXM hired rate experts to evaluate and make recommendations regarding SPS' rate filing. With regard to evaluating the rate increase sought by SPS, requests for information and requests for documents regarding SPS' witnesses' pre-filed direct £estimony have been ongoing at the Public Utility Commission of Texas (PUCT). This is the most efficient method of conducting discovery instead of on a city-by-city basis. Under the current schedule before the PUCT, written ciiscovery will conclude on October 3, 2006 regarding SPS' proposed cost allocation and rate design, and will conclude on October 10, 2006 with respect to SPS' revenue-requirement and fuel-reconciliation requests. Not until discovery is finally concluded is it possible to make final recommendations but. at this stage, it does appear that SPS is not entitled to its requested r~crease in rates. Some of the areas being investigated in SPS' filing that raises questions regarding the reasonableness of SPS' requested rate increase: City Council Minutes September 12. 2006 Page 6 of 7 · SI~S' requested overall rate of return of-9:15% (based on a return on equity of 11~6% an equity ratio of 51.13%) appears excessive when taking into account sPs' return on equity, the debt it included in calculating its rate of return, and ts proposed cap ta structure · SPS' requested depreciation amoums appear excessive · SF 'S' proposed revenue requirement and its requested increase ~n revenues )ear to be overstated S' requested fuel expense appears excessive Tc date, SPS has not met its burden of proof regarding the reasonableness of its co ~ts related to its affiliate transactions · SF · SI-' an · SI: re( · SF tim AXM recc S' proposal to directly assign and surcharge municipal franchise fees, and to lsolidate 36 different rate schedules into only'8 rate classes raises concerns h respect to the equity of the distribution of SPS' requested revenue increase :1 the impact these changes have on rate design appears unreasonable S' proposed changes to its line-loss factors raise concerns regarding the )act such changes may have on calculation of SPS' fuel-adjustment factors J jurisdictional and customer-class allocation factors S' changes to its fuel-adjustment factor clause and its purchased-power overy factor provision requires further analysis but appears unreasonable S quality of service in terms of timeliness of installations, emergency response es, and installation and/or repairs of street lighting appears to be lacking mmends that the Council deny the requested increase ~n rates. Belinda FI CitY Secr,,: There w;~s no public commenL Councilmember Nash moved to approve upon first reading (~rdinance No. 06-3467. The motion was duly seconded by Councilmember Trusler. Ihere was no Council comment. The motion carried unanimously. _ There being no further business, Mayor Anderson adjourned the meeting at 7:58 p.m. nojosa tary City Counci~ September 12, 2006 Page 7 of 7 33