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HomeMy WebLinkAboutMinutes_GGAF_01.07.2015 Minutes of the Meeting of the GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF) City of Georgetown, Texas January 7, 2015 These minutes were approved at the January 28, 2015 GGAF Meeting. The General Government and Finance Advisory Board met at 3:30 p.m. on Wednesday, January 7, 2015 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: Jim Briggs, Laurie Brewer, Micki Rundell, Mike Peters, Stan Hohman, Trina Bickford, James Davis, Chris Bryce, Chris Foster, Jennifer Bills, Skye Masson, Michelle Villarreal, Mark Thomas, Dennis Hoover (Owner, Northwest Apartments); Doug Duffie, CPA and Shawn Seaberg, PulteGroup; Matt Loeschman (Williamson County Sun) 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 3:30 p.m. A. Review minutes from the December 3, 2014 GGAF meeting - Danella Elliott, Executive Assistant Tommy moved approval, Jerry seconded. All board members present approved (5-0) B. Consideration and recommendation to implement an expansion of the City’s Infor Enterprise Asset Management software to enable its use for vehicle fleet management at the City of Georgetown’s Fleet Service Center - Stan Hohman, Fleet Maintenance Supervisor and Chris Bryce, Assistant Director of IT Technology Director Chris Bryce and Stan Hohman presented. Staff explained that this item is an expansion of the 2014 Infor Enterprise Asset Management project to include fleet. This module will replace the current software, called RTA, which was purchased in 1998. Stan explained that mechanics currently use a lot of time on their computers, as opposed to make repairs. RTA is also not designed for a diverse fleet like Georgetown’s. The new program will have increase ability to track vehicles and schedule predictive maintenance. The eventual goal will be for less downtown and more scheduled repairs. The Infor product uses an existing product that the City already owns and limits new systems for IT to manage. It allows for improved preventative maintenance, maximized warranty recovery, improve time tracking, and better forecasts for replacement schedules. The software costs $52,000, the consulting $83,000, hardware $3,000 for a total of $142,000. Tommy asked about fleet’s operating budget of $1.2 million. Staff clarified that this did not include sold assets. Staff also clarified that it would take one to two years to develop predictive data. Jerry asked about the length of time that the consultant will work. Staff clarified that it would be four to six months, and the entirety of the $83,000 was an outsourced cost. The board then began a discussion regarding cost savings, return on investment (ROI), and the need for new products in the future. Micki clarified that the current product has been used for 15 years, the current IT platform no longer supports it, and the City will realize a savings by not using it anymore. Stan will better be able to make repair decisions and updating RTA is no longer practicable. Jerry asked why software costs only $52,000, but the consulting work is $83,000. Mike Peters explained that data conversion and developing the module to work for Georgetown is expensive. Micki reiterated that implementation is the major cost factor when purchasing new software (e.g. training). The board then discussed not doing any data conversion, and simply collecting data starting today. Tommy asked what the costs savings would be if the City purchased this module. He would like all items to have this type of justification so he can clearly justify expenses, time savings, FTE savings, etc. Jerry asked for testimonials from other cities. Joe asked for data conversion costs and, more specifically, an itemization of the $83,000 consulting cost. Micki said she would bring back an ROI and testimonials at the January meeting. C. Purchase of replacement Cisco Network Switches from Presidio Networked Solutions for $77,052.60 - James Davis, IT Operations Manager and Mike Peters, Information Technology Director James Davis presented. This is a request to replace network switches in the City. The vendor is on a Texas Department of Information Resources (DIR) contract. Tommy asked which systems were being replaced. James explained that these are the boxes in buildings that connect the computers to the network. Tommy moved approval, Joe seconded. All board members present approved (5-0) D. Consideration and possible action to approve a loan agreement with Steele Georgetown LIHTC, LLC. to assist in securing Housing Tax Credits for the renovation of 55 existing affordable units at Georgetown Square Apartments located at 206 Royal Drive.—Jennifer C. Bills, Housing Coordinator and Laurie Brewer, Assistant City Manager Jennifer Bills introduced both item D and item E. They are similar items. The federal government issues tax credits to the state. The state then allows people to apply for these credits. The Qualified Action Plan that the state provides has requirements that give preference to applicants who have local support. The support in both these cases, if approved, will be show in the form of a collateralized loan from the City. Both of these apartment complexes already exist. Jennifer then introduced item D, the Georgetown Square Apartments. These were built in 1973, are section 8 housing, and have not had significant renovations since they were built. To secure the maximum number of points on the Qualified Action Plan, they will need the City to provide the loan and a tax credit resolution. The loan is totally collateralized. The developer provides the money to the City to hold in escrow. The City then calls the money a loan and gives it back to the developer. The minimum loan for this project would be $30,000 and the maximum would be $450,000. The board asked what impact the new Northwest Bridge will have on the property. Jennifer clarified that it will “clip” the property and takes about 10 feet. Tommy clarified that the points give them credits; this is not a financial issue. Jerry asked that Jennifer show where the bridge will be when this item goes to Council. Keith reiterated that staff needs to show that the bridge and 971 will not interfere with this project. Joe suggested using exhibit B with the new 971 alignment. Staff once again stated that the loan is fully collateralized. Jerry moved to approve the $450,000 loan, Ralph seconded. Passed (4-1), with Tommy opposed. E. Consideration and possible action to approve a loan agreement with HVM 2015 Georgetown, Ltd. To assist in securing Housing Tax Credits for the renovation of 24 existing affordable units at Northwest Apartments, located at 1623 Northwest Boulevard.—Jennifer C. Bills, Housing Coordinator and Laurie Brewer, Assistant City Manager Jennifer Bills presented this item. The Northwest Apartment were rejected during the last application cycle due to a technicality. The minimum loan for this project is $12,000 and the maximum is $197,633. The owner of the project, Dennis Hoover, spoke. He wanted to clarify that this was not a direct cash payment to the City. Micki clarified that this is done through a trustee custodial agreement. Tommy went on to say that the money is secured by the bank and released at the end of the project. It is a tool for subsidizing for-profit ventures. Keith asked Tommy about his dissenting vote on the previous item. Tommy clarified that it was due to the fact that federal tax money was going to a for-profit company. Staff clarified that it was a $1 million renovation and the properties are taxed. Staff clarified that the resolution will go to Council on January 27th. Jerry moved to approve the $197,633 loan, Joe seconded. Passed (4-1), with Tommy opposed. F. Discussion regarding the use of Direct Payment Sales Tax Permits as Economic Development Tools - Christopher Foster, Manager of Resource Planning and Integration and Mark Thomas, Economic Development Director Chris Foster presented. Direct pay permits allow vendors to pay sales tax in the area where they use their materials, as opposed to where they purchase their materials. It is a form of tax shifting. There are special requirements that require special accounting. Usually large institutions, like oil and gas companies or power companies, use these permits. Typically the tax is shifted to an area that does not have the 2% local sales tax. The direct pay permits can be used in conjunction with 380 agreements to allow the vendor to rebate a portion of the shifted tax. This type of economic development tool yields rather low dollar amounts compared to other tools. The City also cannot control other communities who implement this tool. Staff requested a general discussion regarding developing 380 agreements and permitting direct pay permits in Georgetown. Keith asked the representatives from Pulte to introduce themselves. Shawn Seaberg with PulteGroup and Doug Duffie, CPA, both spoke. They explained that 95% of sales tax goes to other cities. Direct payment permits redirect tax. It is better to pay sales tax in the city where they build. The cost to track is substantial, but it makes them a better community member. They clarified that only one-third of their Pro-Build receipts are from the Pro-Build located in Georgetown. Tommy stated that Georgetown gets a portion of sales tax and rebates a portion to Pulte. There is a potential loss from the Pro-Build rebate. Staff clarified that the Georgetown Pro-Build would be excluded. The Pulte representatives said will request reimbursement twice per year; 80% of 1% of their sales tax and protect the Pro-Build sales. Tommy said all other homebuilders will want the same deal. This action would set a precedent. The board asked that all local major lumber suppliers be exempts. The board said this item will not return to GGAF, but will go straight to Council. Staff will compare other 380 agreements, develop standard terms, and include Pulte’s deal points. Tommy moved approval, Joe seconded. All board members present approved (5-0). G. Consideration and possible action to approve the board bylaws in accordance with the revised Code of Ordinances – Micki Rundell, CFO and Danella Elliott, Staff Liaison Skye Masson presented. These are the new bylaws approved by Council. A vice-chair will be elected in March with the new board appointments. Tommy moved approval, Joe seconded. All board members present approved (5-0). Adjournment The meeting was adjourned at 4:36 pm. _____________________________________ Board Chair