HomeMy WebLinkAboutMIN 11.25.2002 CC-WThe City Council of the City of Georgetown, Texas, met in Regular Session on the
above date with Mayor Gary Nelon presiding.
Council Present: Council Absent.
Llorente Navarrette, Gabe Sansing, Doug Smith, All Councilmembers were present
Jack Noble, Sam Pfiester, Farley Snell, Ken Evans
Staff Present.
Paul Brandenburg, City Manager; Trish Carls, City Attorney; Sandra Lee, City Secretary; Tom Yantis,
Assistant City Manager; Jim Briggs, Assistant City Manager for Utility Operations; Micki Rundell, Director
of Finance and Administration; Amelia Sondgeroth, Director of Development Services
'• - •r; '- • ••;
Called to order at 4:00 p.m.
A Del Webb Development Agreement Workshop
1. Discussion of utility and financial matters related to Sun City and the 7th Amendment
Brandenburg opened the discussion by telling Council that staff has met to determine what has been paid
and what is still owed to the City from Del Webb, saying the City and Del Webb have exchanged drafts of
the 7th Amendment. He said the discussion at this workshop will center on the financial issues, and
introduced Micki Rundell, City Finance Director.
Rundell explained the figures on the Financial Analysis handout provided to the Council. She said the total
costs attributable to the 5000 units (including the carrying charge) is $36,153,721.00. She noted that Del
Webb has paid $24,417,367 and still owes $11,736,354. She said the stranded cost for the excess
capacity is $6,804,206, saying there has been a payment from Del Webb of $1 million, which was applied
by the City to the stranded costs, so the net owed for stranded costs is $5,804,206. Nelon asked and Del
Webb General Manager, Gary Newman, confirmed that Del Webb is in agreement with the City, saying Del
Webb hired an outside engineering firm to check the numbers. He said there has been very good
cooperation with the City staff.
2. Discussion of possible utility committments and financial reimbursement for future utility infrastructure.
Carls told Council that the current draft of the 7th Amendment has changed considerably from the first draft
document, such as the fact that the number of proposed units to be built changed from 10,500 to 5000,
which changed the utility capacity commitment. She said when the City first agreed to provide utility
capacity, the infrastructure requirements were considerably different, and added that most of the
infrastructure has already been built. She said that staff is attempting to determine how to recover the
System Improvement Program (SIP) fees and stranded costs. She noted that the City sent a demand letter
to Del Webb in May, 2002. She said at this time there is no mutual agreement as to how and when the
balance due will be paid.
Snell asked why the original agreement needed to be amended in the first place. Carls said the reason for
City Council Meeting Minutes/November 25, 2002
Page 1 of 2 Pages
the amendment in the first place was different than why it needs to be amended now. She said before Del
Webb announced their plans to scale back, they asked the City for additional non -potable water to irrigate
more golf courses. She said, at that time, the City looked at the proposed build -out schedule and
determined that Del Webb was not building as quickly as they had predicted they would build, so the City
wanted to analyze how that would affect the costs. She said during that time, Del Webb announced their
plans to propose something that was non -age -restricted for a part of that development, which in turn,
changed everything again, therefore creating the need for the City to change the SIP fees.
Carls said the City has received a request from Del Webb for utility capacity commitment for water,
wastewater, and non -potable irrigation water to serve 2500 non -age -restricted units. She said it has been
suggested that the costs would be "upfronted" instead of from SIP fees.
There was discussion with Newman, Todd Janssen, and Phillip Schmandt of Del Webb regarding the
method of re -payment and the obligation of Del Webb to re -pay. Newman suggested that the City could
receive a lump sum payment from Del Webb if it could receive that lump sum by December 31, 2002.
5:05 p.m. -- recessed Workshop
and convened Executive Session
B Council Calendar
- Regular Council Meeting on Tuesday, November 26, 2002 at 6:00 p.m. at McCoy Elementary School,
1313 Williams Drive
- Council Workshop and Executive Session on Monday, December 9, 2002 at 4:00 p.m. at 904 Main Street,
Development Services, Large Conference Room
- Regular Council Meeting on Tuesday, December 10, 2002 at 6:00 p.m. at Forbes Middle School,
1560 FM 971
Executive Session
C Sec.551.071 consultation with attorney
-Pending Litigation
-Georgetown Waterpark, Ltd. v. City, et al.; Cause No. 00-209-C277 (277th District Court of Williamson County)
-City v. Doug and Doris Pierce; Cause No. 00-552-C26 (26th District Court, Williamson County)
-Rivery Partners, Ltd. v. City of Georgetown, Cause No. 01-695-C368 ( 368th Judicial District of Williamson County)
-Georgetown Healthcare v. Electa Oncology, Cause No. 01-340-C368 (368th District, Williamson County)
- Potential Litigation (Del Webb Development Agreement)
- Code Enforcement Actions
- Legal Advice regarding agenda items
The meeting was adjourned at 07:07 PM.
Approved
" Mayor( bry Nelon
City Council Meeting Minutes/November 25, 2002
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City Secretary Sandra Lee