Loading...
HomeMy WebLinkAboutMIN 08.17.1994 CC-SMINUTES OF THE MEETING OF THE GOVERNING BODY OF THE CITY OF GEORGETOWN, TEXAS TUESDAY, AUGUST 17, 1994 The City Council of the City of Georgetown, Texas, met in Special Session on the above date with Mayor Leo Wood presiding. Council Members Present: Ferd Tonn Mike McMaster Jane Voltz Dick Vincent George Arroyos Staff Present: Bob Hart, City Manager Marianne Banks, City Attorney Sandra Lee, City Secretary Jim Briggs, Dir. of Community -Owned Utilities Texas Natural Resource Conservation Commission Staff Present: Marianne M. Baker, Staff Attorney Guillermo Zevallos, M.S.E. Doug E. Holcomb, P.E. Special Session --Called to order at 9:10 a.m. Council Members Absent: Doris Curl Winfred Bonner Chisholm Trail Special Utility District Board Members Present:: President Paul Abrams Director Don Irvine, Jr. Director Bert Mansfield Director Howard Scott Director Michael Smets Discussion with Chisholm Trail Special Utility District Board of Directors and staff of the Texas Natural Resource Conservation Commission relative to regional water supply needs and water and wastewater service to Sun City, Del Webb Corporation and related water supply and regional water service issues. Mayor Wood introduced Del Webb Vice President Bob Wagoner and welcomed the staff of the Texas Natural Resource Conservation Commission, the audience, and the board members from the Chisholm Trail Special Utility District (CTSUD). Wood said that the City of Georgetown would do everything they could to make Sun City happen. Wood recognized the arrival of State Representative Mike Krusee. Minutes of City Council Meeting August 17, 1994 Page 1 of 6 Pages Chisholm Trail SUD President Paul Abrams convened his Board at 9:14 a.m. Wood stated that the Del Webb Corporation has gone on record that they want the City of Georgetown to provide water and wastewater services to the Sun City project and turned the program over to City Manager Bob Hart. Hart gave the following overview of the process of dealing with the proposed Sun City project: The City was originally contacted by Del Webb in the fall of 1993. Three trips were made by the Council and representatives of other entities to other Sun City locations because Del Webb publicly expressed their desire to locate in the Georgetown area, but were unspecific as to the exact site. Del Webb expressed their desire for City services. By late January, after Del Webb had made contacts with landowners in the area, the chosen location was determined. The City began contacting Chisholm Trail SUD, the Brazos River Authority, Pedernales Electric Co-operative, and the City of Round Rock to begin a regional approach to servicing the Del Webb project. The City met with President Paul Abrams and General Manager Mickey Swatsell of Chisholm Trail SUD on January 27, 1994, and an offer of $120,000 was made for Sun City service area which at this time includes no customers and no infrastructure. The City was told by the President and General Manager that they would get back to the City on whether the offer was acceptable. On February 23, 1994, Chisholm Trail SUD informed the City that the offer was unacceptable and that they wanted $7 million. At the May 12, 1994 Board Meeting of the Chisholm Trail SUD, the Board formally rejected the City's offer. The City of Georgetown applied to the Texas Natural Resource Conservation Commission for a Certificate of Convenience and Necessity for the service area of the proposed Sun City. That application was amended during the 30 -day waiting period to correspond with the Del Webb expansion of the Sun City area. At a joint meeting in Florence at the office of the Chisholm Trail SUD, the City of Georgetown offered $600,000 over a five-year period and an orderly transfer of the water rights using a settlement between the City of Bastrop and AQUA Corporation as an example. At that meeting, Chisholm Trail SUD presented five options to the City, including an option to purchase the system for $8 million. Minutes of City Council Meeting August 17, 1994 Page 2 of 6 Pages The City Council agreed that the option to purchase the system would be the best option because it would provide an immediate solution to problems in the Chisholm Trail SUD service area, such as inadequate fireflow to certain subdivisions and insufficient water to the City of Leander and the Blockhouse MUD, both of whom have expressed an interest in working with the City of Georgetown. Hart explained that if the City were to take control of the Chisholm Trail SUD service area there would be a connection made at D. B. Wood Road and another along FM 2338 (Andice Road) near Serenada. The subdivisions in the SUD would be taken off of ground water, freeing up more available water and improving the pressures, providing a shorter distance to route water to the City of Leander and Blockhouse MUD, as well as providing quality service to Sun City. Hart noted that the City has spoken with officials of Farmers Home Administration about assuming the debt of the Chisholm Trail SUD, and that the City would have that ability. Hart said that among the guiding principles for the acquisition of the Chisholm Trail SUD was removing approximately 350 customers from dependence on ground water; maintaining rural water standards outside the City's extra -territorial jurisdiction (ETJ) and urban standards within the ETJ; creating an advisory board comprised of Chisholm Trail SUD customers to advise staff and Council on rates and service standards; employing all of the current Chisholm Trail SUD employees; and working with the City of Round Rock for an interconnect. Wood turned the meeting over to Chisholm Trail SUD President Paul Abrams. Abrams said that the City of Georgetown was invading their territory and that even though there were no meters in place, there was the potential. He also stated that he felt they would be invading the Chisholm territory again along Highway 29. He denied hearing the City make any offer until the $600,000 offer, and announced that the Chisholm Trail SUD Board would meet on Monday evening in Florence. Abrams said that Chisholm wanted to own their own infrastructure, that they wanted the City of Georgetown and Del Webb Corporation to pay $3.2 million for the cost of building a pipeline from Lake Stillhouse Hollow, and that any further invasion of the City of Georgetown would first be submitted to an engineering firm for evaluation. When Abrams opened the floor to comments from other Chisholm Trail SUD Board Members, Director Michael Smets said he doesn't want to be serviced with Georgetown water. Chisholm Trail Director Bert Mansfield claimed that the City was taking unfair advantage of the small rural water district. Abrams asked if anyone had a copy of Bob Hart's letter of May 12, and thought it would be interesting to read it at the meeting. He claimed that in the meeting in January Hart implied that the Chisholm Trail SUD had no chance of servicing the proposed Sun City. Mayor Wood asked City Attorney Banks to read a portion from the transcript of the August 11, 1994, meeting in Florence. Banks quoted Abrams as saying: "The fourth is a real stinger, and this is the one Minutes of City Council Meeting August 17, 1994 Page 3 of 6 Pages I know that everyone is going to love. We will sell the whole shooting match for $8 million bucks plus or minus whatever the debt is. Which is a good deal, its 5% interest and a half a million dollars in the bank. That is the best...." When called on by Mayor Wood, Councilmember Vincent said he was happy to see Chisholm Trail and everyone else at the meeting, that the City wished to be a "good neighbor," and that the City could do a better job of providing water services. Councilmember Voltz spoke of the proposed Sun City project as being "positive" for the area and hoped that everyone could negotiate in good faith to see that a partnership could be developed. Councilmember Arroyos said he felt that Sun City would be beneficial, that he was very much in favor of it coming to this area, that he was optimistic that an agreement could be reached, and asked everyone to keep an open mind. Councilmember Tonn noted that a lot of progress had been shown today, and he was hopeful that Sun City would come. Councilmember McMaster stated that Sun City would be a big boost for the economy, that the City doesn't stand to gain as much as the School District, and that although Mr. Abrams couldn't remember it, two of the people from the City of Georgetown had made an offer of $120,000 to Chisholm Trail Special Utility District, Mayor Wood stated that he was personally proud that the Chisholm Trail Board would be meeting on Monday, April 22, to consider the City's offer. Wood then called upon the TNRCC staff. TNRCC Staff Attorney Marianne Baker stated that this special called meeting between the two boards was not considered to be a hearing, and that the role of the TNRCC staff at this meeting was to see if the dispute could be resolved without having to go into the legal hearing process. She suggested that the two committees or the two boards continue to work together to see if they might be able to reach a resolution. Mayor Wood and President Abrams agreed for the two committees to begin meeting with the assistance of the TNRCC staff members to mediate the dispute, but Mayor Wood acknowledged that there had been several people in the audience who had registered to speak. TNRCC Staff Attorney Baker informed the group that any remarks made at this meeting would not be considered as "on the record" and would have to be repeated if, in fact, the hearing is held on Friday, August 26. In spite of President Abrams' vocal desire not to hear the people speak, Mayor Wood determined that they would be allowed to speak and called on Tim Harris, President of the Georgetown Chamber of Commerce, who called the proposed Sun City a great boost to the economy, especially in light of the past seven years of economic recession, and he hopes fair compensation can be developed and that the process could continue. Minutes of City Council Meeting August 17, 1994 Page 4 of 6 Pages Wood noted that the Del Webb Corporation had informed him that each proposed Sun City unit would bring and asked that the two boards please $400,000 annually to the community. Chamber of Commerce Vice President Marvin Waley chose not to speak at this time. Elvin Gentry encouraged serious and quick negotiations because the proposed Sun City development would benefit all of the area, and asked that the TNRCC keep in mind the need to "fast-track" their decision. Jim Gross, President of the Georgetown Industrial Foundation, said that he supports the Del Webb project and that it was not just a Georgetown and Chisholm Trail project, but that it went beyond even Williamson County and is important to the entire state of Texas, stating that Del Webb has said they might pull out of Texas if the project doesn't occur here. He urged a timely movement forward. John Kuhn, Chairman of the Planning and Zoning Commission, spoke as a business owner, homeowner and parent of school-age children. He called the proposed Sun City project a tremendous opportunity for the entire area and said that the parties involved needed to find the ability and time to negotiate in good faith. Don Hewlitt, General Motors Dealer, said that he is grateful to Del Webb for the offer to come to this area and asked that the two boards please negotiate for posterity and bring this issue to fruition. School Board Member Llorente Navarette emphasized that it was extremely important for all entities to work together for the good of the entire community. He stated that he visited one of the Sun City sites, and he looked forward to someday being able to move into the Sun City here in Georgetown. Chisholm Trail Director Bert Mansfield stated that he thinks people are confused and think that Chisholm is against Sun City, but the Chisholm Board is only trying to run a business in a responsible way. He said that Chisholm plans to increase service in that area and they want a "fair shake." Wood thanked everyone for speaking, stated that the City of Georgetown had received specific instructions from Del Webb that they want City of Georgetown services, and since Chisholm doesn't currently provide wastewater service, he differs with the sincerity of the Chisholm offer. Wood noted that during the meeting of the two committees, the following three items would be discussed: 1) the purchase price offered by Abrams on August 11; 2) the legitimate offer on the table from the City of Georgetown for the purchase of the Chisholm system; and 3) that the $3.2 million fee suggested by Chisholm is not considered by the City to be a valid proposal. 9:58 a.m. recessed open session for committee meeting At 12:04 p.m., Mayor Wood called the meeting back into order and stated that the two committees had reached several new agreements, those being that 1) the City has offered $1,032,500 in addition to the $600,000 previously offered; and 2) that there would be a six-year payout of $700,000. He stated that Minutes of City Council Meeting August 17, 1994 Page 5 of 6 Pages the Chisholm Board was allowed to meet privately to consider those offers. Chisholm counter -offered with an asking price of $2.75 million instead of the original $3.2 million; and stated that the purchase of the whole Chisholm system is not an option. The meeting was adjourned at 12:05 p.m. The meeting was adjourned at 8:27 p.m. Approved: Leo good, Mayor Minutes of City Council Meeting August 17, 1994 Page 6 of 6 Pages Attest: Sandra D. Lee, City Secretary