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HomeMy WebLinkAboutMinutes_GGAF_11.05.2014 Minutes of the Meeting of the GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF) City of Georgetown, Texas November 5, 2014 These minutes were approved at the December 3, 2014 GGAF Meeting. The General Government and Finance Advisory Board met at 3:30 p.m. on Wednesday, November 5, 2014 in the Georgetown Public Library Friends of the Library Room, located at 402 West 8thth Street, Georgetown, Texas. MEMBERS PRESENT: Keith Brainard, Chair, Tommy Gonzalez, Jerry Hammerlun, Joe Pondrom, Ralph Mason MEMBERS ABSENT: None STAFF/OTHERS PRESENT: Micki Rundell, Laurie Brewer, Ed Polasek, Chris Foster, Joe Lessard, Joe Black, Terry Putnam A copy of these minutes, containing detailed information on the items listed below will be available in the Finance and Administration Office, located at 113 East 8th Street, Georgetown, TX and can be found online at http://agendas.georgetown.org/ Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session that follows. Regular Session – Called to order at 3:30 p.m. The GGAF Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the Chair of the GGAF Committee for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551.) Public Wishing to Address Council On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the start of the meeting. You will be called forward to speak when the Board considers that item. On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to address and their name. The Board Liaison can be reached at 512-930-3676 or by email at danella.elliott@georgetown.org Statutory Consent Agenda The Statutory Consent Agenda includes non-controversial and routine items that Board may act on with one single vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it individually as part of the Regular Agenda. Council advised on August 26th to not have a Consent Agenda at Boards and Commission meetings; previously posted items were moved and discussed on the Legislative Regular Agenda. Legislative Regular Agenda The Board will individually consider and possibly take action on any or all of the following items: Keith Brainard, Chair, called to meeting to order at 3:31 p.m. A. Consideration and possible action to approve a Resolution documenting the City of Georgetown’s support and creation of a Transportation Infrastructure Zone and entering into an Interlocal Cooperation Act Agreement with the Lone Star Rail District to fund t he future operation of commuter rail service through a portion of revenue generated by the Transportation Infrastructure Zone – Bridget Chapman, City Attorney, Micki Rundell, Chief Financial Officer and Ed ward G. Polasek, AICP, Transportation Services Director At the October 28th meeting, this was discussed with Council and staff was directed to take this Resolution to the GGAF and GTAB Boards for further discussion and recommendation to move forward. This is a special meeting for this process. Ed Polasek explained how the Transportation Infrastructure Zone (TIZ) operates and how it is created. He said adopting this Resolution will create the TIZ, which authori zes the Mayor to sign the Interlocal Agreement. No other legislative or public action is required. He noted the TIZ will set aside funding for the Operations and Maintenance (O&M) cost for the Lone Star Rail District. He said this action guarantees a Georgetown Station location included in IES and funding strategies and guarantees a seat on the Lone Star Rail District board as long as the city continues to pay its membership dues. Staff has met with representatives of the Lone Star Rail District to determine the TIZ boundary and to negotiate terms of the Interlocal Agreement for Council’s consideration. Ed noted that originally 16 stations at full service, with up to 24 split stations, 32 round trips/day and 118 miles of passenger rail from San Antonio to Georgetown. This level of service will all be dependent upo n the participation agreements and the financial liability of the stations. LSRD came to the City requesting a TIZ, which was created by the County under Chapter 173. This TIZ would be a financing means by which revenues to the rail district on increments of sales tax collected within the station area location. Staff has provided a specific details concerning the interlocal agreement and resolution in the Council member Fought questions and Financial and Program Analysis attachments. In brief, the interl ocal agreement and TIZ will:  Place 50% of the growth in property tax revenue in the TIZ into a City-controlled special fund that will be paid to LSTAR when the meet specific obligations.  The City will pay an additional amount from the growth in property ta xes, equal to 25% of the growth in sales tax revenue in the TIZ into the same City-controlled special fund.  The total payment from those two sources is capped at the value of 75% of the growth in property tax revenue in the TIZ. In other words, the sum of the two payments above can never go above 75% of the total annual property tax revenue growth in the TIZ.  The remaining growth in property tax revenue, difference between growth in valuation and sales tax collected in the area, in the TIZ will be used to fund local projects in the TIZ as identified in the agreement  LSRD cannot access the funds until it meets two performance goals: 1. Within 2 years or by May 2017, LSRD must have completed local funding agreements with the cities of Austin and San Marcos and the counties of Travis and Hays. 2. Within 6 years or by January 2021, LSRD must have an agreement in place with Union Pacific Railroad to relocate its through freight, and a completed financial plan to pay for project construction.  The only true expense to the City in the creation and operation of the LSTAR station will be an internal roadway, which is identified as an eligible project in the local TIZ revenue, the annual maintenance of the rail station (grounds and security, not tracks and trains) and annual membership dues.  Guarantees a station location in Georgetown and a seat on the LSRD Board of Directors. Chris Foster talked about the financial impacts. He said the ultimate downside is that costs are $49,500 annually. The internal roadway is $1.8 to $2.5 M. In-kind: lighting, making sure it is clean, and Police patrol occasionally. The agreement is 36 years from date of adoption, with an optional 20 year agreement after that. Lone Star Rail is required to have performance measures as well. They have until March 1, 2017 to make sure San Marcos, Austin, Travis, Hayes County have signed up. They also have 6 years to collect capital funds. The GGAF Board voiced their opinions and concerns. Jerry and Tommy asked for data from the Leander Station, which Micki said had been in place for about 10 years. Tommy said that this area started out as green space, and this would be excellent data to have for comparison, ie growth, etc. Keith noted that Council’s purpose for sending this to this item to GGAF and GTAB was to get a more thorough, detailed review, and that is the information we would like to have. He asked Staff to gather this information and present it to the full Council. Joe asked about the size of the TIZ and Chris explained the different zones and why the TIZ was so big. Tommy asked what examples do we have, or what encourages private companies to invest in something that doesn’t make money? What is the return? Who pays if it goes “in the red”? What’s in it for them? The Board’s main question was “why is Round Rock and Williamson County not required to participate”? What is the percentage of the TIZ has Austin agreed to? What is the estimate for environmental impact? - 3 year schedule (2017) Where will it link in Austin and how will it affect Georgetown’s transportation to Austin? It isn’t clear how it will help Georgetown’s traffic. Resources could eventually come back to us, but not initially. We seem to be way ahead of where we need to be, and somewhat backward. All agreements need to be in place in order to build; all have to be brought on line. Minimum capital money has to be in place first for bypass and passengers. In order to do this, the O&M has to be in place first. The basic structure is that all capital money is needed, and then the project is ready to start. The City holds money until all requirements have been met. Concern: every jurisdiction should be committed to the project. We are an “island on an end cap of a station”; too many variables; we don’t know where station will be, etc. The consensus of the Board was that they were not comfortable moving forward on any of this until W illiamson County and Round Rock are participants…there are too many “ifs”. It should be able to be phased in. Terry Putnam, Georgetown citizen, spoke regarding this item and said this this is a good opportunity to do a cost analysis. He said that service will be scaled to revenues and that we don’t need to be spending money on 1970 technology. Keith thanked Mr. Putnam for his input. Keith stated that “as one Councilmember”, he would like for this to work and certainly understands a lot of the concerns and noted that the concerns are well taken. He reminded everyone that this is an Advisory Board to the Council, and although three of the GGAF members are members of the Council, at the moment, there are too many unknowns and too many liabilities at this time to allow this Board to recommend it. Motion to recommend that Council “not approve” the proposed Resolution until and unless Williamson County, Austin and Round Rock sign up to participate, at which time, Council will revisit this again. Unanimously approved. Adjournment The meeting was adjourned at 4:40 pm. _____________________________________ Board Chair