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HomeMy WebLinkAboutMIN 08.23.2011 CC-Rof the City of Georgetown, Tuesday, August2011 1 The City Council of the City of Georgetown, Texas, met in Regular Session on the above date with Mayor George Garver presiding. Council Present: Council Absent: Patty Eason, Danny Meigs, Bill Sattler, Pat All Council Present. Berryman, Tommy Gonzalez, Troy Hellmann, Rachael Jonrowe Staff Present: Paul E. Brandenburg, City Manager; Jessica Brettle, City Secretary, Bridget Chapman, Acting City Attorney; Jim Briggs, Assistant City Manager; Laurie Brewer, Deputy City Manager; Micki Rundell, Chief Financial Officer; Elizabeth Cook, Director of Community Development; Lorie Lankford, Controller; Terry Jones, Support Services Construction Manager; Robert Fite, Fire Chief; Kevin Russell, Director of Human Resources and Civil Service; Kimberly Garrett, Parks and Recreation Director; Jordan Maddox, Principal Planner; Edward Polasek, Director of Transportation; Mark Thomas, Economic Development Director; Mark Miller, Transportation Services Manager; Carla Benton, Planner 11; Rachel Osgood, Environmental Services Coordinator; Kathy Ragsdale, Environmental 11 1and Cons1 11 11 1ervation Director11 1 Regular Session - To begin no earlier than 06:13 P (Council may, at any time, recess the Regular Session to convene an Executive Session at the request of the Mayor, a Councilmember, or the City Manager for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551.) A Call to Order Comments from the Mayor - Welcome and Meeting Procedures - Presentation of Proclamation in recognition of the Williamson County Mental Health Task Force Mayor presented the proclamation to Williamson County Commissioner Valerie Covey. Covey said there were 39 suicides in the County in 2010 and added we are on track to exceed that number in 2011. She spoke of the mental health task force and their efforts to address suicide issues and she spoke about Suicide Prevention Week. She said they are trying to include the cities and churches in this effort. She said the task force meets monthly to try and address various mental health issues. She said their goal is to recognize symptoms so that friends and family members can address them when they are seen. She invited Council to an event on September 6, 2011 at 9am where people are gathering on the South Side on the Courthouse to have a presentation about this effort. She said, as a symbol for the 39 lives lost last year, they are collecting teddy bears. She said, if you would like to drop them off, you can bring them to the event on the 6th or drop them off at any EMS stations throughout the County. Mayor read the proclamation recognizing the Williamson County Mental Health Task Force and declaring Sept 4- Sept 10, 2011 as Suicide Prevention Week. City Council Meeting Minutes/ Page 1 of 10 Pages City Council Regional Board Reports - CAPCOG Berryman spoke about the Board and what role it plays in the community. She said they handle the Department of Aging, Homeland Security, Economic Development, environmental quality, Environmental Task Force, criminal justice planning and training for the law enforcement as well as the law enforcement academy and the state emergency communications. She spoke about CAPCOG's Geo -Mapping programming. She spoke about CAPCOG's budget and said all of it comes back in terms of help to the communities and especially the rural communities. -CAMPO Mayor said CAMPO did not meet during the month of August, however, a communication came to the members of the Board regarding further development of 1460 south of town. He said communications are still underway. - Lone Star Rail District Eason said the Finance Committee on which she serves will be meeting next week on Wednesday August 31, 2011. City Manager Comments Action from Executive Session Motion by Eason, second by Sattler to approve a Real Estate Contract with Judy Wolff Hindelang, et al pursuant to the terms discussed in tonight's Executive Session. Approved 7-0 Motion by Eason, second by Hellmann to approve and execute the economic development agreement for Project Grape on the terms discussed in tonight's Executive Session including certain economic development incentives and the Lease Purchase of certain retail space generally located at 7th Street and Main Street, Georgetown, Texas and the related real estate sales contract between the City and GEDCO. Approved 7-0 Public Wishing to Address Council On a subject that is posted on this agenda: Please fill out a speaker registration form which can be found on the table at the entrance to the Council Chamber. Clearly print your name and the letter of the item on which you wish to speak and present it to the City Secretary on the dais, preferably prior to the start of the meeting. You will be called forward to speak when the Council considers that item. On a subject not posted on the agenda: Persons may add an item to a future City Council agenda by contacting the City Secretary no later than noon on the Wednesday prior to the Tuesday meeting, with the subject matter of the topic they would like to address and their name. The City Secretary can be reached at 512/930-3651. B - As of the deadline, no persons were signed up to speak on items other than what was posted on the agenda. Statutory Consent Agenda The Statutory Consent Agenda includes non -controversial and routine items that Council may act on with one single vote. A councilmember may pull any item from the Consent Agenda in order that the council discuss and act upon it individually as part of the Regular Agenda. C Consideration and possible action to approve the minutes of the Workshop and Regular Council Meeting held on Tuesday, August 9, 2011 -- Rachel Saucier, Deputy City Secretary D Consideration and possible action to approve a Resolution ratifying the property tax increase included in the 2011/12 Annual Budget and acknowledging that the 2011 tax rate will raise more revenue from property taxes than the previous year-- Micki Rundell, Chief Financial Officer This item was postponed until a later meeting. E Consideration and possible action to approve a Resolution to accept the 2011 Tax Appraisal Roll for the City of Georgetown as presented by Deborah Hunt, Tax Assessor -Collector -- Micki Rundell, Chief Financial Officer F Consideration and possible action to approve a Resolution to approve the proposed 2011/12 Budget for the Georgetown Economic Development Corporation (GEDCO) -- Lorie Lankford, Controller and Micki Rundell, Chief Financial Officer G Consideration and possible action regarding the Administrative Services Contract between the City of City Council Meeting Minutes/ Page 2 of 10 Pages Georgetown and the Georgetown Economic Development Corporation (GEDCO) for the 2011/12 fiscal year -- Lorie -- Paul Lankford, Brandenburg, City Manager Controller and Micki Rundell, Chief Financial Officer H Consideration and possible action to approve a Resolution to approve the proposed 2011/12 Budget for the Georgetown Transportation Enhancement Corporation (GTEC) -- Lorie Lankford, Controller and Micki Rundell, Chief Financial Officer Consideration and possible action regarding the Administrative Services Contract between the City of Georgetown and the Georgetown Transportation Enhancement Corporation (GTEC) for the 2011/12 fiscal year -- Lorie Lankford, Controller and Micki Rundell, Chief Financial Officer J Consideration and possible action to amend the contract with We Mow It in the amount of $44,000 to cover additional annual landscape maintenance costs -- Terry Jones, Support Services Director and Micki Rundell, Chief Financial Officer K Consideration and possible action to adopt a Resolution approving the 2011/12 Budget and related Property Tax Assessment for the Georgetown Village Public Improvement District #1 -- Lorie Lankford, Controller and Micki Rundell, Chief Financial Officer L Consideration and possible action to appoint Kaylee Spielman and Jade Moffett to the Georgetown Youth Advisory Board -- Katie Sofranko, Youth Program Coordinator and Kimberly Garrett, Parks and Recreation Director Mayor introduced Kaylee Spielman to the audience and said she is being appointed to the Youth Advisory Board, M Consideration and possible action to approve the amended Emergency Services Contract between the City and Williamson County Emergency Services District (ESD) #8 for fiscal year 2011/12 -- Laurie Brewer, Deputy City Manager; Robert Fite, Fire Chief and Micki Rundell, Chief Financial Officer Motion by Sattler, second by Jonrowe with the exception of Item D, which was postponed. Approved 7-0 Legislative Regular Agenda Council will individually consider and possibly take action on any or all of the following items: N Discussion and possible action to verify allocations for Social Service Funding and Youth Program Funding for FY2011-12 -- Paul E. Brandenburg, City Manager Brandenburg said, on August 9, 2011, City Council took up this item and many numbers were recommended for the various social service and youth program applicants. He said he wanted Council to have one more vote on this subject to verify and confirm the list of dollar amounts that is being brought forward staff. Mayor asked and Brandenburg said the recommended amount for Youth Program funding is $86,500 and for Social Service Funding is $313,549. He said combining both of those recommendations would bring the total to $400,049. He reviewed the entire process for these funding applications. Motion by Berryman, second by Jonrowe to approve the allocations. Approved 7-0 O Forwarded from the Parks and Recreation Advisory Board: Consideration and possible action to approve a Lease Agreement with Georgetown Youth Baseball Association at the San Gabriel Youth Fields for the operation of a youth baseball program to benefit the City of Georgetown area -- Kimberly Garrett, Parks and Recreation Director Mayor Garver left the dais. Mayor Pro Tem Eason introduced the item to the Council. Garrett described the item and said the City has been allowing the Georgetown Youth Baseball Association to operate a baseball program on City property without a formal lease. She said, due to the growth of the program, it is in the City's best interest to formalize a lease and have details in place of how that organization operates. She said, in July, the City posted a notice of intent in the newspaper for any interested parties to run a youth baseball program. She said the Georgetown Youth Baseball Association is the only entity that responded. She noted the lease would be for a one year period beginning September 1, 2011 and it is renewal for four additional one-year periods. She spoke about the costs City Council Meeting Minutes/ Page 3 of 10 Pages of the City running the program. She said the Parks and Recreation Board approved recommending this lease with a vote of 5 to 0. Mayor returned to the dais. Hellmann said he has been associated with this organization, his kids play baseball there and it is a great group. He asked why the lease was only for a one year period. Garrett said that time period was recommended from the City Attorney's office but noted the City wanted to be able to look at it year by year since there is no agreement currently on the books. Chapman said she wanted to have an opportunity for other organizations if they come around to be able to weigh in and have the agreement. Hellmann asked and Garrett said the Georgetown Youth Baseball Association has been doing this for over 20 years. Hellmann said the one year terms seems short. Garrett said the agreement will be renewed after mutual agreement for an additional four years. Chapman said the thought was, if there are other interested parties, they should have the opportunity to enter into an agreement if they'd like. Brandenburg said this formalizes this into a document so there is no misunderstanding about their responsibilities. Chapman said it would be renewed each year on mutually agreed upon terms. Sattler said he likes setting this up on a formal basis and added in the past there have been a couple of disagreements between parties. Garrett said the City does not want to get involved in any of those conflicts. There was much discussion. Gonzalez said he agrees that if someone else came with an opportunity to present a use of the public fields, they should be able to do so. Gonzalez asked and Garrett said they do not pay the city any fee but they pay for all of the utilities. Gonzalez said he is not advocating that Council look for other organizations but noted other entities should at least have the opportunities to plead their case. Chapman mentioned how this is a negotiated lease and the Georgetown Youth Baseball Association is comfortable with this arrangement. Motion by Sattler, second by Berryman to approve the lease agreement. Approved 7-0 P Consideration and possible action to remove any 2011 Annexation Areas from consideration at the October public hearings -- Jordan J. Maddox, AICP, Principal Planner and Elizabeth A. Cook, Community Development Director Maddox said the next two items are related to the 2011 annexation process. He said there is no action item but noted it is an opportunity for Council to remove any of the areas from the list provided to Council. He said the next item on the agenda is the Resolution and any action taken on this item will not effect the next item. He said there is no staff recommendation on this. Mayor asked and Maddox said the current item does not require a motion. Berryman said she thought Council was going to discuss removing area 13 because of cost. Maddox said staffs recommendation was not to approve 14 and 16. He said area 13 was one recommended by staff, but Council can remove that area if they so choose. No action was taken by Council. Maddox said this kind of action will be on all future annexation related agenda items. He said any areas can be removed in the future. Q Consideration and possible action on a Resolution setting public hearing dates for the annexation into the city limits of approximately 2,112 acres, more or less, to be known as the 2011 Annexation Areas -- Jordan J. Maddox, AICP, Principal Planner and Elizabeth A. Cook, Community Development Director Maddox described the item and said this does not approve any areas but it allows for staff to move forward with the notification process and the scheduling of public hearings. Jonrowe asked and Maddox said the notification letters are sent via certified mail. Motion by Meigs, second by Gonzalez to approve the Resolution. Berryman asked and Maddox confirmed, at this point, no other areas can be added to this list. Approved 7-0 R Consideration and possible action to approve a Resolution approving a settlement between Atmos Energy Corp's Mid -Tex Division ("ATMOS") and Atmos Texas Municipalities ("ATM") resulting in no change in base rates and approving tariffs which reflect costs related to the steel pipe replacement program -- Jim Briggs, Assistant City Manager Briggs described the item and said, for the last four years, the ATM cities have worked to resolve rate cases City Council Meeting Minutes/ Page 4 of 10 Pages brought forth by ATMOS Energy Corporation under a regime known as the rate review mechanism. He said, during last year's review mechanism, the retroactive true -up provision was eliminated. He said last year, ATMOS requested an increase of $70 million in base rates and this year the requested increase is estimated at $9 million. He said this cost is for the entire service area. He said ATM engaged a consultant to investigate the merits of this increase and issued a report to ATM cities. He said, after lengthy negotiations, ATMOS agreed to withdraw their request for a base rate increase completely. He said staff recommends that this settlement be approved by Council. He noted litigation is unlikely. He said this settlement is effective September 1, 2011 and the cities must resolve this by implementing the tariffs by September 1, 2011. Briggs read the caption of the Resolution to Council. He said staff is recommending approval of this item. Motion by Meigs, second by Eason to approve the Resolution. Approved 7-0 S Consideration and possible action to approve a Resolution authorizing Amendment No. 1 to the Advance Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) for the 1-35 and Southfork Drive improvements -- Edward G. Polasek, AICP, Director of Transportation and Jim Briggs, Assistant City Manager Polasek described the item and reviewed the original agreement which was to help the City with Southfork Drive improvements. He said in the agreement the City would take the lead, select the engineer, go through the process of construction bid management and oversight. He said the City has gone through that process and the construction bids came in at $113,600 and the TXDOT estimate was $75,000. He said the process has been laborious in the fact that we have been working with the Page House to try to get a construction schedule. He said TXDOT has moved pretty quickly to get this agreement back to us to cover the additional cost. He said they have agreed to fund the additional cost of the project and this item will be going to their commission soon. He said the City must signed this agreement in order to receive the additional funding for the project. He said any additional change orders that may come in through the future, the City is responsible to cover those costs. He said any change orders will be scrutinize heavily on the City's behalf. Motion by Meigs, second by Berryman to approve the Resolution. Approved 7-0 Berryman said this driveway is a real problem and it has been since it was originally constructed. T Forwarded from the Georgetown Economic Development Corporation (GEDCO) Consideration and possible action to approve an agreement between GEDCO and Grape Creek Vineyards and the related Real Estate Sales Contract between the City and GEDCO -- Mark Thomas, Economic Development Director Chapman said Item T was covered in the motion out of Executive Session. Thomas said they have Grape Creek Vineyards located in Fredericksburg who will be opening up an urban winery in the current visitors center building. He said the city has been working on this for almost eight months and are on the cusp of making this happen. Mayor said Council had an opportunity to speak with the developer of the project and Council was impressed with the project. U Forwarded from the Georgetown Economic Development Corporation (GEDCO): Consideration and possible action to approve an agreement between GEDCO and Georgetown Winery -- Mark Thomas, Economic Development Director Thomas described the item and said, as part of the retention process, they are recommending this agreement with Georgetown Winery He spoke about how the Winery came here and how fast they have been growing over the past few years. He said they are producing wine for wineries around the central Texas area. He said the proposal is for a $70,000 equipment grant in the form of a loan. He said, for each year the winery continues to stay in the downtown area and increase their capital investment, they would be able to pay off the loan over a five year period. Motion by Gonzalez, second by Berryman to approve the agreement. Approved 7-0 V Forwarded from the Georgetown Transportation Advisory Board (GTAB): Consideration and possible action to award the annual Street Striping bid to DIJ Construction Company, of Bertram, Texas for the cost on an as needed basis in the estimated amount of $119,425.00 annually with the two year bid totaling $238,850.00 -- Mark Miller, Transportation Services Manger and Edward Polasek, AICP, City Council Meeting Minutes/ Page 5 of 10 Pages Transportation Services Director Miller described the item and the content of the contract. He said the contract will provide for street striping and pavement markings on City streets on an as -needed basis. He said they only received two bids because this is a very specialized field. He said this is being recommended unanimously by the GTAB Board. Motion by Meigs, second by Berryman to approve the award of bid. Sattler asked and Miller said this is an "up to" amount and is billed on an as needed basis. Brandenburg asked and Rundell confirmed this is a general fund item. Approved 7-0 W Public Hearing and First Reading of an Ordinance rezoning Georgetown High School Subdivision and 5.0 acres in the A. Flores Survey from Agriculture (AG) District and Residential Single -Family (RS) to Public Facility (PF) District for the expansion of the Georgetown High School, located at 2211 N. Austin Avenue -- Carla Benton, Planner II and Elizabeth Cook, Community Development Director Benton described this item and said Georgetown High School is expanding their facility to increase the size of their library, principal's building, the cafeteria and locker area. She said this site was developed over a forty year period and the zoning has been brought in incrementally. She explained why there is mixed zoning on the site. She said the staff is wanting to bring all areas into the public facility district zone, which is consistent with educational facilities. She said the future land use for the area is institutional. She said the transportation and access to the area is appropriate for the area. She said the Public Hearing was held on August 2. She said they had two speakers and she described what their concerns were. She said the Planning and Zoning Commission approved this rezoning unanimously. She read only the caption of the Ordinance on first reading after having satisfied the requirements of the city charter. Public Hearing was opened at 7:14 PM No persons were present to speak. Public Hearing was closed at 7:14 PM Motion by Jonrowe, second by Hellmann to approve the Ordinance on first reading. Berryman spoke about the area and noted she does not see a problem with this change. Approved 7-0 X Public Hearing and First Reading of an Ordinance rezoning 47.42 acres from Agriculture (AG) District to Planned Unit Development (PUD) District to be known as Sun City Neighborhood 56 -- Jordan J. Maddox, AICP, Principal Planner and Elizabeth A. Cook, Community Development Director Maddox described the item for Council. He said neighborhood 56 is a newly proposed neighborhood within Sun City for 140 standard residential lots. He said there is a third party flood plain study that is being conducted due to some issues downstream on Cowan Creek. He said, due to this report which is in the draft stage, staff is recommending that this be held at second reading until these issues are resolved. He said there is also a companion plat which is being held until this issues are resolved as well. He noted first reading can continue but staff is recommending delay. Mayor asked and Maddox said this situation is not frequent but it has occurred in the past. Maddox read only the caption of the Ordinance on first reading after having satisfied the requirements of the City Charter. Public Hearing was opened at 7:18 PM No persons were present to speak. Public Hearing was closed at 7:18 PM Motion by Meigs, Eason to approve the Ordinance on first reading. Approved 7-0 Y First Reading of an Ordinance approving the Redistricting of the City's Single -member Council Districts and establishing new district boundary lines based on 2010 Census Data for Georgetown City Council Elections; direction the City's Redistricting Consultant to submit the adopted plan for pre -clearance under Section 5 of the Federal Voting Rights Act -- Bridget Chapman, Acting City Attorney City Council Meeting Minutes/ Page 6 of 10 Pages Chapman said this is the conclusion of the redistricting process that Council went through over the past six months. She spoke about the process and the criteria and guidelines that was used to develop the new plan. She said, during at least six city council meetings and three public hearings, the Council considered many different plans. She said on August 8, 2011, the City Council approved Revised Plan G as the City's redistricting plan. She spoke about how the plan complies with the approved criteria and applicable legal requirements and is in the best interest of the City and its residents. She said the Ordinance also authorizes the legal counsel to submit the plans to the U.S. Department of Justice. She read only the caption of the Ordinance on first reading after having satisfied the requirements of the City Charter. Motion by Meigs, second by Berryman to approve the Ordinance on first reading. Approved 7-0 Z First Reading of an Ordinance levying a tax rate for the City of Georgetown for the tax year 2011 -- Micki Rundell, Chief Financial Officer Rundell read only the caption of the Ordinance on first reading after having satisfied the requirements of the City Charter. She said this Ordinance levies the tax for the 2011/2012 tax year. She reviewed the motion to be made on this item. Rundell said she has provided Council with a list of possible savings in the budget, which was pulled after the discussion held in the Workshop regarding possible cuts. She said the first page is a list of savings and the second page is what would happen if you lower the reserves. She said this would put the general fund budget $1.5 million out of balance in the out year. She said she has a worksheet that is available that will allow the City to make budget decisions on the fly. Brandenburg said we are already in contingency mode due to the drop in sales tax and other economic factors, there are many positions that are frozen and any travel or training is scrutinized. He said this list of possible savings is always something that staff has been reviewing. He continued to describe how the budget is reviewed and examined during the budget process. Mayor asked and Rundell said the budget can not be approved unless the levy of the tax rate is approved. Rundell said the latest the City can meet in order to take action on the first reading is September 1, 2011. Berryman asked and Rundell confirmed the City can have a special meeting on this next week if Council so chooses. Eason said, as far as process goes, it make all the sense in the world to vote on these items as scheduled and then have a workshop in between to make any possible changes prior to the second reading. Eason said she does not think she needs that extra time that could be served through the Workshop. There was much discussion regarding scheduling of the budget and tax rate approvals. Eason said this budget schedule has been known for a long time. She said she does not see a lot of fire and brimstone out there. She said voting tonight and then having a workshop to make changes prior to the second reading will still meet the deadlines. Berryman said, if we have the time to scrutinize this more prior to approval and still meet the deadlines, then the City should have a special meeting before voting. Berryman said the list of cuts given to Council does not seem complete. Rundell spoke about the posting requirements if the vote on these Ordinances is delayed. Gonzalez asked and Rundell said, if the Council takes the vote on the tax rate and it is in the negative, the the effective rate would be passed. Motion by Eason, second by Jonrowe to move the adoption of a property tax rate of $0.38750 of which $0.22290 will be for Maintenance and Operations and $0.16460 is for Interest and Sinking. Sattler asked and Rundell said $302,704.39 is equal to one penny on the tax rate. Mayor asked and Rundell said one cent is about $22 per year for the average household. Sattler asked and Rundell said the 2008 bond issue equaled to $0.02567 on the tax rate. She said the part that affects the general fund is $0.0007. Meigs asked and Rundell said $0.02567 is related to the 2008 voter approved bonds issued in October of last year. Meigs asked and Rundell said if the contingency is lowered and funds are taken out of the budget to bring down the tax rate, the City would be short over $1.5 million next year. There was much discussion. Mayor said Council is also requesting a special meeting no later than September 1, 2011 to discuss this budget in more depth. He said approval of this motion does not take away the Council's right to change the budget. Jonrowe said, if the Council approves these Ordinances tonight, we could have a Workshop prior to the second reading so no additional posting or publication would be necessary. Gonzalez asked and Rundell said, if a Workshop is held, staff could look at additional items from the budget that could be cut. Mayor said he would respectfully remind Council of an issue that would be a liability in the future. He said the City is headed into four years where the employees have not received any increases. Brandenburg said, last year, the employees received the cost of living adjustment of 2.5% but they received nothing the year before or this coming year. Gonzalez said, if the Council is going to meet at a public Workshop, it would not be worth it if this list that was just given to Council is all they have to review. He said if there are other items Council could consider, they should have a special workshop next week.Berryman said the City will need to look into more than just service City Council Meeting Minutes/ Page 7 of 10 Pages cuts. She said, at some point, the City will have to look at cutting things they do not want to cut. She noted the Council is not looking at cutting any positions. Berryman said this is the worst thing in the world to talk about, but if it is not brought up this year it will be talked about next year. Brandenburg said he appreciates that but noted, when applications are slowing down or when you hear of customer service issues, the Council will hear about that from their constituents. There was much discussion regarding possible reductions in services. Rundell said, regardless of what happens with this budget, there will still be a deficit. She said staff is wanting to start budget discussions and discussions regarding possible cuts earlier next year. She said our revenue streams are stagnant and added it is good we are not losing anything. Vote on the motion: Denied 4-3 (Berryman, Sattler, Hellmann, Gonzalez opposed) Gonzalez said if the City is talking about a $1 million deficit next year, it is looking at a higher tax increase and even more cuts. He said the city will have the same issue next year. Rundell said there are a few factors that would help that debt next year including sales tax and growth. There was discussion regarding when to hold a special meeting prior to September 1, 2011. Mayor and Council agreed to hold the special meeting on Monday, August 29, 2011 6 PM to cover items Z, AA, BB and D. Hellmann asked that staff bring back a spreadsheet that would show how the city could meet that million dollar gap. Rundell said anything that the City could cut, that would save money on the out year but the only commitment in this budget is the money for the new fire station. Jonrowe asked and Rundell said she has been in the Finance department for over 11 years. Jonrowe asked and Rundell said some people put in more hours than others working on this budget. She said this budget goes back to how it was in 2001. Rundell said all of the increases in the budget is related to debt. Jonrowe asked and Rundell said whether or not the $1 million estimated shortfall is accurate will depend on revenues and expense savings. She said the budget assumes that every penny is spent, which never happens. She said staff also hopes that there will be growth in the assessed valuations throughout the City. Brandenburg spoke about how, ih the past, the growth rate helped pay for a lot of the increases in the budget. Sattler asked and Rundell confirmed if the City went with the $0.3875, there will still be a deficit because that entire increase will be going to the debt service fund to pay for bonds. Sattler said it would be possible to take 1 penny off of the tax rate and then $300,000 from the contingency reserves, it would make the -tax rate lower and closer to what it is now. She said this would bring the contingency days to 80 to 85 and the deficit would be brought down to $1 million instead of $1.5 million. Berryman said this says to her that the City needs to be careful and thoughtful about what bonds are implemented. She said public safety is a different issue and a lot of the things the city voted for in 2008 is just because the City wanted a nicer lifestyle. She said 2008 was a different time. Eason said she would like to remind everyone that the City has gained a lot from the recreation center, the library and the other items that were approved in 2008. Eason said she thinks Council has already been very careful with bonds. Eason said she is cringing through the considerations about shifting funds from one pot to another. She said she wants to remind Council that by making changes for a few cents may sound good politically, the long term implications of what it means to the City is negative. She said would expect that the tax payers are more interested in us trying to think in the long term do the best we can to do this in a controlled manner. Mayor said it may be a good idea to look into whether or not it is a good idea to issue more bonds until the budget is on more of an even keel. Berryman said there is a difference between a library and recreation center and the expansion of trails and an amphitheater. She said the City has obligations to Garey Park, which is something that is coming up. She noted there are already huge commitments of money on the horizon. She asked that Council be real thoughtful of what they are doing. She said this is much more difficult than just going up in taxes. She noted the hard way is to use this money to minimize the impact of the budget next year. Gonzalez said he does not want to have the same discussion every year. He said the solution may be to have cuts and implement that tax rate proposed. He said he wants to look at all options and start dealing with our deficits now so that next year we can look at a level playing field. He noted he does not want the tax rate to go up a penny, but it may be that the City has to keep it as proposed as well as make cuts to reduce the deficit. Motion by Hellmann, second by Berryman to have a special meeting on August 29, 2011 at 6 PM to cover items Z, AA, BB and D. Rundell asked what information Council wants from staff. Gonzalez asked that she talk to each department head and took at how they would cut 1 % from the budget and also ask about what one position each department head would cut if they had to do so. Rundell reviewed what was said. Vote on the motion: Approved 7-0 Motion by Gonzalez, second by Sattler that City staff present at the August 29, 2011 meeting a proposed 1 % cut by each department head and one staff position cut in each department, excluding money from the utility City Council Meeting Minutes/ Page 8 of 10 Pages fund. Berryman asked and Rundell said a one percent cut would equal $400,000. Eason said she would like to speak against this motion. She said this kind of drastic approach to our City staff is totally uncalled for and there is no proof of any need for this. She said the last thing she sees as a positive is to even think about removing people from positions. She is wondering why Council would want to add to the unemployment rate in Georgetown. Jonrowe asked if Rundell had to draft something what would she do. Rundell said there are opportunities to look at operating expense cuts and noted things on the list given to Council are service level cuts. She said the staffing issue sends a message that there is an option to cut positions in the future. She said that is a little unsettling for people who are currently employed at the City. Jonrowe said she would be opposed anything that would look at cutting staff. Gonzalez said he would like to point out that they took a vote to come back and discuss options. He said no one has said anything about actually cutting positions. He said Council will not be doing their job until they have reviewed and addressed everything in the budget. Mayor said staff has been working on this budget since last January and no one has raised questions on anything in this budget until this point. He said trying to evaluate everything before next week is nearly impossible. He said staff has given Council countless opportunities to look at this budget, and to say I want to look at everything' is not fair. Berryman said there have been a lot of changes to the economy over the past three to four weeks and what is occurring will continue to be occur over the next year. She said it is a shocker to throw this suggestion at staff and added she would assume that there have been suggestions for cuts made by staff. Berryman said maybe we need to start thinking about personnel cuts for next year. Rundell spoke about personnel costs throughout the City. She said the public safety budget is pretty much all personnel. Mayor asked if it would be amenable for staff to come back to Council on Monday with an amount of savings and not necessarily positions. Gonzalez said he would not have a problem with that, as long as staff gets to that amount. Rundell said the City could cut $400,000 and leave the tax rate as it is if that is what Council wishes. There were many comments and questions about possible budget cuts. Gonzalez withdrew his original motion. Motion by Gonzalez, second by Berryman for the City staff to present at the August 29, 2011 special meeting a 1 % budget beginning October 1, reduction ending in the general Financial fund budget at the city staffs discretion. Brandenburg said there is no way he can make cuts without input from staff. Brandenburg said Council will have what has been presented and then an additional 1 % department reduction from staff will be brought to Council at the special meeting on August 29, 2011. Vote on the motion: Approved 7-0 AA First Reading of an Ordinance adopting the 2011/12 City of Georgetown Annual Budget for the fiscal year beginning October 1, 2011, and ending September 30, 2012 -- Micki Rundell, Chief Financial Officer This item was postponed until August 29, 2011. BB First Reading of an Ordinance amending § 2.08.010 "Administrative Divisions and Departments" of the Georgetown Code of Ordinances as reflected in the 2011112 Annual Budget -- Micki Rundell, Chief Financial Officer This item was postponed until August 29, 2011. CC Second Reading of an Ordinance amending Chapter 13.12 of the City Code of Ordinances relating to Garbage Collection and Disposal -- Rachel Osgood, Environmental Services Coordinator and Kathy Ragsdale, Environmental Services Director Ragsdale said this is a second reading of the amendments to the garbage ordinance. She described some of the amendments that are being made with this Ordinance. Ragsdale read only the caption of the Ordinance on second reading. Mayor asked and Ragsdale said they will notify the management companies that this Ordinance has been changed a bit and inform them of their new responsibilities. Motion by Eason, second by Berryman to approve Ordinance 2011-33. Brandenburg said this was a total rewrite and he thanked staff for taking care of that. Approved 7-0 Adjournment City Council Meeting Minutes/ Page 9 of 10 Pages The meeting was adjourned at 08:33 PM. City Council Meeting Minutes/ Page 10 of 10 Pages Secretary Jessica Brettle