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HomeMy WebLinkAboutMinutes_GGAF_03.02.2010 L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\5.4.10\5.4.10DraftMinutes3.2.10.doc MINUTES GENERAL GOVERNMENT AND FINANCE (GGAF) ADVISORY SUBCOMMITTEE OF THE CITY OF GEORGETOWN, TEXAS The General Government and Finance (GGAF) Advisory Subcommittee met at 10:30 a.m. on Tuesday, March 2, 2010, in the in the Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial Blvd, Georgetown, Texas. These minutes were approved at the May 4, 2010 GGAF meeting. Keith Brainard called the meeting to order at 10:40 a.m. 1. Review minutes from the February 8, 2010 meeting – Danella Elliott Minutes will be reviewed at the April 6, 2010 GGAF Meeting. 2. Summary regarding “Other Finance Agenda Items and Items of Interest” – Micki Rundell, Laurie Brewer, Lorie Lankford, Terry Jones, A. Workshop discussion of the results of the 2010 City of Georgetown Quality of Life Survey. National Service Research (NSR) completed the 2010 Quality of Life Citizen Survey in February. This is the first year that NSR has conducted the survey for the City. 2010 is the fifth bi-annual survey the City has undertaken, and therefore provides detailed trend analysis in several key areas. In addition, the survey was updated this year to reflect changes in community focus, as well as, to determine the success of the City’s efforts to improve services over the past few years. This year, NSR added on on-line survey to the process. Results from the on-line survey are segregated from the telephone results in order to continue trend analysis with previous surveys. On-line survey results are included for comparative purposes and to provide a broader demographic pool for analysis. Members Present: Keith Brainard, Chair, Dale Ross Members Absent: Patty Eason Staff Present: Micki Rundell, Laurie Brewer, Lorie Lankford, Terry Jones, Kevin Russell L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\5.4.10\5.4.10DraftMinutes3.2.10.doc This information can be a tool for the Council to use in developing goals and strategies for the 2010/11 budget, as well the City’s 5 year strategic plan. Micki explained that Andrea Thomas from NSR will be available answer any questions at the Council meeting. She noted that the question about managing Lake Georgetown was deleted at the GGAF meeting. She will also ask Andrea to provide any additional comments from the online survey. B. Consideration and possible action to approve the purchase of a tractor mower for the Street Department from Georgetown Farm Supply (local) through the Buyboard contract with John Deere Government and National Sales in the amount of $49,990.51. Staff is requesting approval to purchase a 2010 John Deere tractor mower that was scheduled to replace a 1998 mower in this fiscal year Vehicle ISF. The mower is a 101hp, 15 foot batwing, 4WD with an enclosed cab and is similar in size to the mowers you see mowing right-a-way on I35. This piece of equipment will be used for mowing City right-a-ways and detention ponds. By purchasing this mower through the Buyboard we satisfy all legal requirements for competitive bidding. C. Consideration for the approval for the renewal of the Motorola digital radio console service contracts in the amount of $30,820.00. Staff is requesting approval for the renewal of service contracts for the City’s Motorola digital radio consoles located in the Police Department and Georgetown Utility System dispatch. These maintenance contracts are necessary to provide preventative maintenance, repair and technical and software upgrade support to ensure the City’s radio console system is continually operational. There are a total of six consoles that this agreement covers. All other backbone equipment is operated and maintained by Williamson County. Motorola has been providing service on the digital system since it was installed in 2007. These agreements will renew for additional one year term every anniversary of the start date unless terminated by one of the parties. Motorola is the only vendor authorized to provide this service. D. Update on the bank depository Request for Proposal (RFP) process. Staff presented the draft RFP and proposed timeline at the January GGAF meeting. The City attorney, purchasing department and investment advisors reviewed the RFP. Staff met with our current banker on February 11 to inform JP Morgan Chase of the RFP and the potential bank change. JP Morgan Chase has stated they are happy to submit a proposal and do feel they can do better on many of their current fees. Based upon this conversation, as well as interest from other local banks, staff feels optimistic that a better price can be negotiated in this process than we are currently paying. March 15 is the deadline for vendor questions being submitted. March 24 is the date for proposals being submitted. Staff anticipates bringing the selected bank to the GGAF subcommittee in April, and then to the Council in June. E. Report on the cable and gas franchise audits The City contracts with Connie Canady, with J. Stowe Company, who is a franchise consultant, to audit compliance with the City’s franchise agreements. Suddenlink and Atmos were chosen to be audited this past year. The City requested detailed billing information, which Ms. Canady reviewed and verified against the City’s current agreements. Ms. Canady also performed testing based upon areas where, in her experience, franchisees have often underreported. Based upon the City’s current franchise agreements, Ms. Canady is very thorough with her methodology and found that Suddenlink had underreported revenue and owes the City $4,685 and Atmos underreported revenues and owes the City $21,035. The City has worked with Ms. Canady to determine whether additional revenue is due based upon annexations. Demand letters are forthcoming and staff expects that the amounts due will be remitted in the next 4-6 weeks. 3. Discussion and possible action regarding the Request for Proposal process for audit services - Laurie Brewer L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\5.4.10\5.4.10DraftMinutes3.2.10.doc In May 2005, the Council selected Brockway, Gersbach, Franklin & Niemeier, to perform independent audit services for the City's accounts, for up to five years. The 2009 fiscal year end audit represented the fifth and final year of that agreement. There were no renewal provisions after the fifth year for that agreement. City staff prepared a Request for Proposal to procure audit services for next fiscal year, with an option to continue the audit relationship for up to five years. This agreement also includes Georgetown Transportation Enhancement Corporation, as well as Georgetown Economic Development Corporation, as component units of the City. Staff anticipates reviewing proposals for technical requirements, then bringing in the top rated firms to the GGAF committee in May for selection. The selection would then be take to the City Council for approval at the May 11 Council meeting. The original 2005 contract provided a $35,925 estimate for the 2009 fiscal year. Staff recommended an additional $7,000 for the 2009 fiscal year due to additional work, for a total of $42,925. Auditing standards have increased dramatically since the contract was approved with the release of new auditing standards in 2007. Since the relative cost of doing the audit has increased, and the City has become more complex since the 2005 proposal, staff anticipates the City audit costs increasing to $60,000 or more. Chapter 103 of the Local Government Code outlines state law regarding independent audits for municipalities. Section 6.12 of the City Charter also addresses our specific audit requirements. Excerpts were included as an attachment for reference and Keith thanked Laurie for providing this information. The City will send letters to all CPA firms that have requested to be considered in the past as well as advertised through the City’s procurement program. It will also be listed on the City’s website and in the local newspaper. 4. Discussion and possible action in finalizing the sizing for the upcoming 2010 bond issues - Micki Rundell, The City’s Bond Counsel will prepare the required notices for issuing the CO Bonds. The notice will include the maximum amount of bonds the City proposes to issue. The City can lower the amount prior to the sale. The City will be required to pay Williamson County for their 2010 payment on the Williams Drive widening project. That payment is $1.5 million. Sources for this payment include (1) proceeds from the sale of the Albertson’s building or (2) CO Bonds issued for the payment as planned. If the City does not sell the Albertson’s building before September 30, 2010, the City can use cash reserves for the $1.5M and include that amount in next year’s (2011) CO bond issue. In such case, a bond reimbursement resolution would be proposed. In any case, GTEC has agreed to fund the debt service related to this project for the first 5 years to be repaid by the City at the later date. The committee recommended that we issue $2.5M now ($1.5M for the Fire Station and $1.5 remaining self-supporting). GTEC pays the debt service. 5. Review and discussion regarding City of Georgetown’s current efforts to establish and maintain a competitive position in its defined market. Review of current benefits and pay System and the typical timeline for review and Council approval - Kevin Russell HR Staff and the Benefits Committee has an annual process for reviewing benefits and making recommendations for changes to remain cost effective and yet competitive. This process ultimately ends with final Council approval of the providers and healthcare options. Kevin gave an overview of what has been done in the past regarding the benefit selection process. He explained that we will get the renewal rate in August and the Benefits Committee will review the RFP’s. He asked for direction from GGAF as to how much information they want to see. Keith feels comfortable with TML and is hopeful that TML will help with the health insurance. Dale said that we are not big enough to be self-funded. Keith asked Kevin to make sure the employees are educated and keep the committee abreast of where it looks like we are headed – to manage costs and to let the GGAF Committee know if things change, but he is assuming that we are in a good place with TML. He thanked Kevin and said that HR has made a lot of progress. Similarly, HR Staff reviews the competitiveness of the pay system and makes recommendations through City management to Council for implementation of any changes. 6. Update on the proposed 2010/11 Budget Calendar - Laurie Brewer, Micki Rundell L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\5.4.10\5.4.10DraftMinutes3.2.10.doc The City’s budget process has become a constant work in progress, with the next budget cycle being developed as the final touches are placed on the current year’s document. This calendar is in draft format and is subject to input and discussion, as well as changes for the publication of the 2010 Truth in Taxation calendar. GGAF and Council upcoming proposed key dates include: March 2 (GGAF) Review timeline for compensation and benefits budget discussions March 9 (Council) 2010 Citizen Survey Results Discuss Council’s 2010/11 Budget Priorities Survey March 23 (Council) Review Council survey results and finalize budget priorities Parks CIP workshop Airport Board – business plan review April 6 (GGAF) Review Revenue Models Review Fiscal and Budgetary Policy Review Allocation methodology April 13 (Council) Facilities update April 27 (Council) 2010/11 Compensation & Benefits review Parks and Recreation budget workshop – operations 2010 bond sale Staff will be preparing the 2009/10 mid year review report for the May 11 Council meeting. 7. The meeting was adjourned at 12:11 p.m.