HomeMy WebLinkAboutMinutes_GGAF_01.28.2015 Minutes of the Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
January 28, 2015
These minutes were unanimously approved at the March 6, 2015 GGAF Meeting.
The General Government and Finance Advisory Board met at 3:30 p.m. on Wednesday, January 28, 2015 in the
Georgetown Public Library Friends of the Library Room, located at 402 West 8thth Street, Georgetown, Texas.
MEMBERS PRESENT: Keith Brainard, Chair, Jerry Hammerlun, Joe Pondrom, Ralph Mason
MEMBERS ABSENT: Tommy Gonzalez
STAFF/OTHERS
PRESENT: Micki Rundell, Susan Morgan, Mike Peters, Chris Bryce, Stan Hohman, Paul Diaz,
Laurie Brewer, Trina Bickford, Eric Nuner, Lisa Haines, Leticia Zavala, Susan Anderson
(Valley View)
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 January 7, 2015 GGAF meeting - Danella Elliott, Executive Assistant
Unanimously approved.
B. Discussion and recommended selection of Valley View Consulting, LLC for Investment Advisory
Services – Susan Morgan, Finance Director
Susan explained that the City contracts for outside expertise to assist with its investment portfolio
management. The annual dollar amount is below City policies requiring Council approval, but the Local
Government Code Section 2256, the Public Funds Investment Act (PFIA), requires all such contracts be
approved by the governing body. The PFIA requires that investment advisory contracts be renewed every two
years. The current contract for limited investment advisory services with Valley View Consulting, L.L.P. will
expire February 28, 2015 with no additional renewal options. Valley View was selected through a competitive
proposal process conducted in 2009/2010.
The current RFP was issued November 17, 2014 with 4 proposals received. The staff review committee
consisted of the three authorized investment officers for the City – Micki Rundell, Chief Financial Officer;
Susan Morgan, Finance Director and Lisa Haines, Controller. The proposals were reviewed and scored
independently, then reviewed collectively for the best value and service match.
A summary of the proposals, committee scoring and evaluations were provided and Susan Anderson from
Valley View Consulting, LLC was present to answer questions.
Based on the responses and staff evaluations, Valley View Consulting, LLC, was selected as the top firm.
Staff met with Susan Anderson and Richard Long on Wednesday, January 21, 2015 to discuss services and
options. The original proposed price of $36,000 was negotiated to $26,000 per year with the City still
receiving the services requested in the proposal. The recommendation is for a two-year term and 2, two-year
extensions. The RFP also allows for 2 additional two-year terms, at the City’s discretion. Susan Anderson
will do internal training for cash collections.
Unanimously approved.
C. 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 – Chris Bryce, Assistant Director – IT; Stan Hohman, Fleet Maintenance Supervisor;
Paul Diaz, Utilities Financial Analyst
Chris Bryce noted that at the January 7, 2015 meeting, GGAF members requested additional information on
this matter including a business analysis of the Infor Fleet module that compared its implementation costs with
its financial benefits. He introduced Paul Diaz, who provided a presentation. Paul noted that City Staff
conducted the analysis using conservative assumptions about the cost savings gained by delaying capital
replacement of vehicles and improving staff efficiency. Georgetown is the 7th fastest growing city, which
means that the need for Firefighters, Police, and Transportation, etc. are growing also. This also means an
increase in fleet inventory.
Over a standard 5 year lifespan for software, the Infor Fleet model delivers a substantial financial benefit for
the City, as well as, helping with internal controls and preventative maintenance. This benefit would increase
as the City uses the software over an expected 7 year minimum lifespan.
Staff extends its recommendation that the City expand its existing enterprise asset management software (Infor
EAM) to enable its use for managing the City’s vehicle fleet. They obtained references from Infor, Central
Arizona Water Authorities and the City of Houston. This is a module into the bigger system that currently
have. It should be a seamless installation and will not take years to implement. Stan Hohman answered that
the shop floor employees will do the data entry and noted that they are very intuitive.
Total cost of this project is expected to be $138,516 ($52,375 software costs, $86,141 implementation). The
yearly cost of software maintenance is 20% of total purchase costs. First year of maintenance is included in
the total cost. This should pick up productivity in time savings.
Unanimously approved.
D. Overview of the City’s Debt Program, including current outstanding and proposed debt obligations –
Micki Rundell, Chief Financial Officer
Micki explained that each year, in preparation for the annual bond issuance process, staff prepares an overview
of the City’s current outstanding debt obligations, as well as, a preview of the upcoming bond issue that the
Council will consider in April 2015. Micki’s presentation provided a background on the City’s debt
management program, as well as, debt benchmark and comparison indicators. She noted that we are rated
separately for utilities, and we are the highest rated in the state with an electric utility.
The overview included information and explanations on Revenue Bonds related to the City’s utilities, both
self-supporting and taxable general debt obligations. Micki said that we are required to have 1.35 times
coverage, but our Fiscal and Budgetary Policy states 1.5 times. We have very seldom fallen below 2.2 times
coverage.
Keith noted that the City has an impressive history of managing debt.
Joe suggested that in future presentations, etc. “spell out” acronyms for the average citizen. He feels we use
them too freely, and that it is would be hard for someone who hasn’t previously been in this type of business to
understand and follow without having to think about what they represent. Micki noted that we normally do
that to save on space, but it will be taken into consideration.
The Board said that it was good presentation and thanked Micki.
Adjournment
The meeting was adjourned at 4:35 pm.
_____________________________________
Board Chair