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Home My WebLink AboutMIN 07.26.2016 CC-WMinutes of a Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, July 26, 2016 The Georgetown City Council will meet on Tuesday, July 26, 2016 at 3:00 PM at the Council Chambers, at 101 E. 7" St., Georgetown, Texas. The city of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City Secretary's Office, at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 811 Street for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the meeting to order at 3:0313M. All Councilmembers were in attendance with the exception of Tommy Gonzalez — Mr. Gonzalez arrived at 6:08pm Policy Development/Review Workshop — Call to order at 3:00 PM A City Manager's overview and discussion regarding the FY2017 City of Georgetown Proposed Budget and Tax Rate — David Morgan, City Manager David Morgan, City Manager, presented follow-up PowerPoint slides that provided the details of the Proposed City Manager's FY2017 Annual Budget. Mr. Morgan covered each highlighted point on all slides and answered Council questions as they came up. Overview • The City Council completed budget workshops on July 1211' and 13' providing important feedback and direction to staff for developing the proposed budget. • Following these workshops, city staff evaluated final revenue estimates and expenditure projections for FY 2016/17 and included the City Council's feedback to develop the City Manager's Proposed Budget. • The proposed budget was filed with the City Secretary on Friday, July 22^ in compliance with the City Charter. Slide #3 Budget Theme Slide #5 Built Environment— Residential Fiscal Year 2016 (projected) - 731-Inciry new single-family slags 906-Incily multi -family unit startsAL B YL 405- ETJ new single-family starts • 800. new platted residential lots Fiscal Year 2017 (projected) 800 - Inciry new single-family stags ` ffi7 350 -In -city multi -family unit stags 450- ETJ new single-family stags 900 -new platted msdentiallots G, 111. Continue Key Initiatives • Major transportation improvements — Southwest Bypass — Mays Street extension — FM1460 — Austin Avenue bridges — Rivery Boulevard extens on� + planning _ ' �= • Transit planning • Retail Study • Williams Drive Corridor Study • Implement Customer Information System (CIS) Slide #4 Development Pipeline Ma • US Census recently declared I� Georgetown is the fastest growing" City over 50,000 in the nation • Growth rate: 7.8% V IWy A113 Mar N111 MWAIM. Plamhra . _.. 5.%" V,ffi lssia II,r,I.Li,:; 1.111 )•A 11 7.741 Slide #6 Council e. Pf00rolea Culmen of Vldusion arta - nppnguntry Slide #8 Gmcnib, -,I lA� Continue Key Initiatives • Parks and Quality of Life — Garey Park — construction in 2017 —San Gabriel park— Phase I construction • Conference center—coordination with Sheraton for marketing and sales • First Year of EMS Operations R 11 •.•t} _- .• 1 4'11- 7r r 19 Slide #9 Continue Key Initiatives • Utility growth — Western District consolidation — Major water and wastewater infrastructure — Municipal Utility District requests —Transfer station upgrades/planning • Sanitation contract negotiations — Transfer station upgrade planning _ S Slide #11 cn..,viol.. Key Elements for the FY 2017 Budget • The City Manager's Proposed budget totals. $325,485,272 in expenditures the FY2017 Municipal Budget which represents a 8.7% decrease from the FY2016 adjusted budget — Variance due to capital projects • General Fund: —The General Fund is proposed with total revenues of 556,063,595 and expenditures of $57,492,644 which represents a 4.8% increase over FY2016 Slide #13 Key Elements for the FY2017 Budget: General Fund Property Tax Valuations: — Total assessed valuation is certified at 6.5 billion, which is an overall increase of 11% increase over last year — New and annexed value represents $193M — Existing property increased 6.6% over last year — Frozen and Disabled exemptions values increased 12.8% to $2.15 billion, which represents 34% of our taxbase — The average toxoble home value increased $18,804 (8%) over the past year to $253,320 for 2016. Slide #10 Areas of Focus • Assuring quality growth • Continued increase in maintenance of existing assets • Implement voter approved bond projects and limit tax rate impact • Award winning downtown and parks — maintain quality of life and small town charm_ • Plan for next phases of growth w Slide #12 Mr. Fought asked for clarification regarding the frozen exemption value of $2.15 billion. Paul Diaz, clarified that this total is the value of frozen property. Mr. Fought asked if we know what that amount would be if those properties were not frozen. He said the numbers don't tell the impact of the dollars. Mr. Diaz stated that is a hard number to calculate because the frozen rate is for each individual tax payer is not known. Mr. Fought stated that the numbers, as they are presented, tell nothing about the impact. Mr. Diaz stated that Mr. Fought is correct and Mr. Fought clarified these numbers for the folks watching. Mayor Ross stated that the opportunity costs have been calculated in the past Mr. Morgan said that they have looked at that number and that the opportunity costs are a little under $3 million. Mr. Hesser said he would like to talk about these same numbers in a consistent fashion every year. Mr. Fought said the wants to see how the opportunity cost calculation is made, so he can see it himself. Mr. Gonzalez believes this number can be a valuable number to use in decision making. He explained that if there was no such thing as frozen properties, you could go back 5 years and start a trend, as this can help to make future decisions. The dollar amount calculated is likely to change year-to-year, but looking at a trend may be helpful. Slide #14 Gmemrau.rl Key Elements for the FY2017 Budget: General Fund Proposed Property Tax Rate (Tax Year 2016): - The proposed tax rate is $0.424 per $100 valuation, which Is a decrease of $.01 from the 2015 Tax Rate. The effective tax rate is 50.393635, which represents the rate that would be needed to produce the exact same revenue as the previous year • The rollback rate Is 50.427892 • The esdmated as Increase far the average homeowner Ian a $253,320 value) would be 556.28 annually. — This tax rate includes necessary funding for proposed operations and the standard debt plan — The proposed tax rate also includes the sale of $10 million of voter approved debt for the Road Bond and $3 million of voter approved debt for Garey Park Slide #16 e.ner,�n+. Sales Tax Revenue — FY2017 (General Fund) • FY2017: $12.819M or 3.7% over projected year end Sales Tax Kbun, j Slide #18 Key Elements for the FY 2017 Budget: General Fund • Revenue Adjustments (post workshops): —City staff have identified $388K in additional estimated revenue above the totals provided in the July 1214 and 13- budget workshops. —These include reducing property tax revenue and increasing sales tax, sanitation and other revenue �- -MI P t:an Utility ROI and Other Revenue Return on Investment - the Gmrcrma'! Fiscal Year Tax Comparisons • Fiscal Year2016 • FiscalYear2017 • Average Taxable Home • Average Home Value Value $253,320 $234,516 • City Tax Paid • City Tax Paid $1,074.08 $1,017.80 follow current trends •'s�✓ Difference: $5618 t:an Utility ROI and Other Revenue Return on Investment - the FY2011 Revonues community's return for ® , owning its own utilities ,.. — Imreasin due to custom- growth �. EM Development revenue projected to continue to iTa�y-' follow current trends •'s�✓ Sanitation revenue - Contracted services for trash and recycling Otherrevenues - continue to increase or remain stable Slide #19 Gmanernl..�ts Key Elements for the 2015=1016 Budget: General Fund Expense Adjustments: — City staff have identified $387K in adjustments to expenditures the totals provided in the workshops —These include corrections to: • Increase sanitation contracted expense to meet revenue projections • Public works position • Fire assessments for promotions *ZU Employee Compensation & Benefits • Merit Increases -2% average effective in February 2017 (non civil service employees) • Step increases for civil service • Market Increases — based upon actual positions/market conditions • Tuition reimbursement program -$100K • No increases in health insurance r,.for City or employee contribution �p-� •l:;fra • Ongoing wellness funding �Ippyywa��i. Operating Budget Highlights • Parks and Recreation F-0. — Garey Park - $85K • One employee to begin market • Maintenancecosts during construction —Special Needs Camp increase (offset by revenue) — Increase in mowing contract - $25K — Continued annual $75K transfer to cemetery fund • Begin planning for columbarium Slide #24 Operating Budget Highlights Transportation Division Reorganization • Reorganization in transportation area planned — Establish a Public Works division to enhance infrastructure maintenance services — Transportation planning will be a function within public works • Transportation engineering would move under Engineering to more centrally focus on project delivery/capital project plan implementation • Building Inspections would move out of Engineering to report to an ACM to create synergies within Planning and enhance our development process Slide #21 Slide #23 cmFnr.i;ws Operating Budget Highlights • Public Library $123,000 General Fund— $5,000 Proposed New Personnel Summary _ 3 fir-ipA>[ompLanc±oitrtxr 3 • Police-enrycpm operators z • Ponce -Schsch000 l Resvurte Officer 1 na t �a ti ant Building • PupecCom.-Assi u infoSpelddiis t • Public Comnwniwdpns-InroapecidllstfPECl) tfori, 1 • ❑hoary -Community PeswrcecoordlpranQ 1 • 2Pan time Tennis Censer&Pec Center 1 • Galey Pad,Wsilion begins in spring) 1 • %bllcworhairector 1 TOW 13 Slide #23 cmFnr.i;ws Operating Budget Highlights • Public Library $123,000 — Book purchase/materials increase - $5,000 $20,000 $20,000 • City Secretary's Office — Historic Records preservation - $55i • Streets — F,.l impact model/cost serve —ROW Maintenance -$25K — Affordable housing tools $35,000 �a $453,000 .r L One Time Study Requests Planning- Comprehensive Plan Update $123,000 Planning- UDC Transportation Review $5,000 Communications - brand dev/guidelines $20,000 General Government — rinndai system selection $150,000 — F,.l impact model/cost serve $120,000 — Affordable housing tools $35,000 Total $453,000 Slide #26 Mr. Gonzalez said he would like to know how these items would be funded if there was no Council Discretionary Fund. Mr. Morgan stated that the studies would probably get cut and there would also need to be cuts in the General Fund. Morgan said the goal next year is to continue to increase the fund dollars in the Council Discretionary Fund. This is a multi-year discipline of continuing to increase the amount going to the Council Discretionary Fund and then wean off the use of this fund. Slide #27 Slide #29 Spring 2017 Debt Issue • Self Supporting Debt —GTEC—Airport Road $1.85M — Fire Station 6 (ESD partnership) Council Discretionary Fund • Utility Debt SIM my $3.75M �Yrpn.a2.,mE•..a $20M • Certificates of Obligation rrn.meE.iwey s L51iopY 53MK Inlr.n•mgoentominEe ny s Vs..) — eW Mhz Radio replacement phase I PemmnMeJorcilmemry • Art 61t putt 5 1. 9 W.I. ro,aa.e nm,vm., s:rcm s Izw,epPl • TmM(ItU P'tl SlCars and PnaN • Total lax supported $12.06M ••mmn.MNawYmr arutlNr up4rnmoorrmnupene S Is.pwO dnMYl•nlofb/•WkmMUWn S I]S.Wj n5/nwsmo-iYanafekR'w S I15o.Wo1 N.naanMmant6mnnrvarmi+ s Im:0oo1 FU411�ryeRMW[11EOflm SmeNaki s r1mSro1 smwt-•wnm.nwtn• f lass,mol frwhrlOfwRE SNFM1nnmlf YE f Isn.lA'a Mr. Gonzalez said he would like to know how these items would be funded if there was no Council Discretionary Fund. Mr. Morgan stated that the studies would probably get cut and there would also need to be cuts in the General Fund. Morgan said the goal next year is to continue to increase the fund dollars in the Council Discretionary Fund. This is a multi-year discipline of continuing to increase the amount going to the Council Discretionary Fund and then wean off the use of this fund. Slide #27 Slide #29 Spring 2017 Debt Issue • Self Supporting Debt —GTEC—Airport Road $1.85M — Fire Station 6 (ESD partnership) $30OK • Utility Debt SIM —Electric CIP $3.75M — Water/Wastewater CIP $20M Slide #28 Spring 2017 Debt Issue • General Obligation Bonds (:rmcainMni — Gorey Park (2008 Referendum) • General Obligation — San Gabriel Parks(2008Ref) SIM — Sidewalk (2015 RefereMum) 52.632M • Indttdm)016praxvsM5400K • Utility Debt • Certificates of Obligation • Total — ADA phase 11 53MK — Grace Heriwc8 Phase It 514nK — eW Mhz Radio replacement phase I 55MK • Art 61t putt 5 1. 9 W.I. — Pulak safety vehicles 51.988M • TmM(ItU P'tl SlCars • Total lax supported $12.06M Slide #30 :- (:rmcainMni Spring 2017 Debt Issue • General Obligation $9.1M • Cert of Obligation $2.928M • Self Supporting Debt $2.15M • Utility Debt $23.75M • Total $37.928M Slide #31 Cm aodbx� Debt Tax Impact • Proposed tax supported DebtSemce Requirements debt totals $12,060,000. Projected tax impact of _ 1.93 cents. • Capacity the City gains from a combination of roll -off debt and continued growth will be greater than the .... impact of the FY2017 - ... .. debt. Slide #33 Operating SRFs • Major Operating Funds r —CVB/Hotel Occupancy Tax —Paramedic Fund — Street Maintenance Fund — Main Street Special Revenue Fund • Other donation/grant/dedicated funds — Parks, trees, animal shelter donations, library donations Slide #35 Main Street Fund • Accounts for revenue specified for Main Street Fagade grants — Note: MS Operations funded by City —City provides $1SK annually for these grants • Donations; fundraising — Grants given to businesses to improve facades or update signage downtown — 2016 Holiday lights sponsored City/GUS Electric as in 2015 QM.{gq Slide #34 Convention & Visitors Bureau Fund •Collects Local Hotel Occupancy �m Tax of7% -ILI�IIII��I��I •Uesis restricted by state law • UseJ to fund visitar center and protnatelhecity — Continue to promote Georgetown ' as destination for conferences, visitors, citizens — New Funding • Economiclmpactofthe ArlsstudyiCVB)-$25,000 • Advmtlsing R Confefcti a Mcrultmenl $90,000 • Canlmence shullle/spnciuteven[ shunles Slide #36 Paramedic Fund 2016 —Revenue is projected at $1-77M • 20.7% less than anticipated dueto start up challenges and timing between event and payment for event — Expenditures 1.5% under budget at $1.92M — 2016 shortfall of $148K • 2015 start up costs of $704K Slide #37 Paramedic Fund 2017 — Revenue is estimated at $2.2 million • Improved collectionswithout 2016 start up challenges — Expenditures of $2.078 million • 50% fundingof Medical Health & Fitness Officer — Poslsionwiil be resW,nible fm Uualitycontrol and billing mn rad management — HitingolpammMi<s to mn Ibe4"MV,ming peak "lad will mdum overtime —2017 shortfall will be reduced to $726K - e,% Slide #39 Slide #41 Electric Fund — Key Initiatives/Growth • Personnel — Utility Analyst — support for power supply — Fiber Infrastructure Tech • Radio System replacement • Meter replacements • $4.8 Million in CIP — Ongoing rystem erpamix i — nowntoem WHl,ead[D r ixi Slide #38 cinr..nn,.,� Paramedic Fund • Proforma —5 Year Updated Assumptions —Annual revenue covers on-going expenses —Shortfall due to startup cost to be reduced over time —Anticipate future full activation of the 4" TRV and replacement cost of the current vehicles in 2020 Slide #40 Gn,a:mi,vv� Electric Fund — FY2017 • Operating revenues budgeted to increase 5.1% due to customer growth • Expenses decreased due to variances in capital improvement projects • Ending fund balance of $9.7M Slide #42 n Y I v aF is ' �ql Vi I -i Slide #43 Gm Water Services Fund — FY2017 • Operating revenues 6% higher than budgeted due to continued growth • Overall 11.5% increase in expenses • $46.7M in capital projects — Cash funding of $26M — Debt funding of $20M Slide #45 Water Services Fund — FY2017 Wastewater Capital Improvements- - $12M Berry Creek Interceptor — $7.9M expansion of Pecan Branch plant — $2.2M San Gabriel plant belt press CIP Funding = $1.40/month Wastewater rate increase — 4.6% increase across all rate classes — $950K of debt service partially offset by additional $425K of revenue associated with the increase; remainder of debt service funded through growth Slide #44 Water Services Fund — FY2017 • Major infrastructure improvements for Water — Domel Pump Station - $4.5 M — CR 255 main replacement - $5.9 M — Lake Water Treatment Plant expansion -$5 M —Sun City Elevated Storage Tank - $4.7 M • Contracted cost savings with in house plant operations • Additional contracted cost of water for Round Rock and BRA Alliance water Mr. Morgan is now suggesting a varied rate increase instead of an across the board base rate and apply a 4.6% increase. Slide #46 Water Services Fund — FY2017 Wastewater Rate Comparison • Georgetown —Flat rate; other rates based upon 10,000 gallons for comparison Slide #48 Airport Fund • FY2017 • Revenues Increase of 27.Mdue to im eases in fuel prices and implementation of rare increases as outlined In operational audit • Wel Drires e.Dettad to increase proportionalelyar 5600[ — New Funding • Maintenancestaffincrease to enhance asset management and is partially offset with decrease in contracted(ISF) costs - - - • Fund Balance estimated at $122.000 M Clirip *.rn Slide #52 - Cmuxinws� Facilities Fund • Provides maintenance services to all City facilities • Janitorial, HVAC maintenance, landscaping, pest control, fire systems, security systems, etc. • Recovers costs through lease allocation based on square feet • New Funding • Major HVAC replacement for Recreation Center Slide #49 Stormwater Fund • FY2017 • Operational revenue increases by 3.8% • No bond proceeds in 2017 • Capital improvements of $976K include curb & gutter and drainage pond repairs suae cm.nrra;.,� Joint Services Fund • Provides services to all departments • Legal, HR, Finance, Accounting, Purchasing, Customer Care, GUS Administration, Engineering — New Funding • Utility Inspection Supervisor (Engineering) • Risk-based audit program (Finance) • Tuition assistance program (HR) Fleet Fund • Services City rolling stock in all areas — Provides capital replacement based on useful life of vehicles — Public safety vehicles often financed through shorter term debt • New Funding — Replacement vehicles for Police and Fire — New vehicles for new positions Slide #54 ta. '-- -.r...-_- Information Technology • Provides technology support to all departments - Updated allocation methodology based upon best practices and use of systems - trdudcspaniallumiingtot c Pitel replaccumnl — FpI111nOmEpf Glrytdl,pplafCTP11t IOM PI, 15Cd in O'Rf P 1 yews • New Funding • Public Safety suppon staff 2 • Customer information System support( • Web developer (transferred from Communications)1 Pan time audio visual assistance 0.5 Slide #56 Propose Summary ]Pan•itrAf^ _ na .p'eN.wlYm • iota( ProppsNNew staFACtlitlons >uae Budget Schedule • August 9-1't Public Hearing on Budget and Tax Rate • August 16 - 2nd Public Hearing on Budget and Tax Rate • August 23-1'I Reading of Budget Ordinance • September 13 - 2"d Reading of Budget Ordinance Slide #55 Self Insurance Fund" • Accounts for revenues and expenses related to employee health benefits • FY 2016 — projected ending balance of $2.6M — Higher than anticipated — Worked with GGAF and consultants on reserves • Rate Stabilization Reserve - $1.1M • Incurred But Not Reported (claims( - $556K • No FY17 rate increases for employee or employer • Ending FY17 anticipated Fund Balance - $2.3M Slide #59 Public Outreach and Education Proposed CM Budget (7/26) posted - Citywebsite and ebook - BudgetVideo-summaryof proposed CM budget - Press release on proposed budget Public Hearingson Proposed Budget on 8/9 and 8/16 Proposed Summary Budget on website/ebook Ordinance readings at public meetings 8/23 and 9/13 Adopted Budgetln Brief published/on website Adopted Budget (full book) published/on website/library BudgetVideoon Adopted Budget on website/social media Slide #60 Key Elements for the FY 2017 Budget: Next Steps • The proposed FY2017 Municipal Budget reflects the feedback and input from the City Council as well as the identification of needs/requests from city staff • "Item I" on the City Council Regular Meeting Agenda tonight is consideration of establishing a proposed 2016 tax rate (FY17) not to exceed amount and the public hearings for the tax rate and budget Slide #61 Mr. Brainard stated that paying cash for Information Technology is commendable. Mr. Brainard stated that some or all of the Council Discretionary Fund could be deposited into the Economic Uncertainty Fund. Mr. Brainard stated that the total increase in General Fund spending is 5%, and asked what the City's growth was? Mr. Morgan addressed all of Mr. Brainard's questions. Mr. Brainard stated that he feels this is an entirely responsible approach. Mr. Brainard stated that he feels this is a really good budget proposal, easily the best budget he has ever seen, and he thanked Mr. Morgan and the City Staff for their hard work. Mr. Hesser said he agrees with Brainard's comments, but has a question regarding the Paramedic fund. The City missed last year's budgeted numbers by 20%, and he wanted to know what has changed to make sure we are closer this year? Mr. Morgan addressed Mr. Hesser's question by pointing out that the delay between the event and the payment for that event is what is most heavily contributing to this. He explained that after the first year, this stream of revenue should be more consistent. Mr. Hesser also stated that this was a great budget process. Mayor Ross asked Mr. Morgan to go back to back to the Council Discretionary Fund slide and asked for some details about how items made it onto the list of items covered by this fund and at this time. Mr. Morgan said that these had been identified in the spring during an item about long range planning and gateways. Mayor Ross stated that he would expect that, next year, the amount of money used from this fund, in the proposed budget, will decrease. Mayor Ross asked Mr. Morgan to go back to the slide regarding the fiscal year tax comparison. He asked if the true increase is about 4.5% and said he feels the $56 tax payer increase is a great investment. Mayor Ross stated that this was a very transparent budget and wanted to complement the team on their ability to answer questions very quickly and accurately. Ms. Jonrowe referenced a chart of assessed value and tax rate and asked if the historical effective rate could be added. Mr. Morgan said yes. Ms. Jonrowe asked why the tuition reimbursement program was chosen to be added as an employee benefit. Mr. Morgan stated that this choice was selected as a combination of a method to retain, as well as attract, new employees, as directed by Council. Mr. Morgan stated that the City is only as good as its people and the City wants to encourage succession planning. He stated that the City has a lot of employees with a lot of promise and this program will help to keep these people for next steps in their careers. Morgan said It is not a unique program, many organizations have this. Ms. Jonrowe asked how the enrollment process will work for the program. Mr. Morgan stated that the program will evolve, but will initially be set up as first come first serve. Mr. Gipson asked about the airport fund. He asked if Mr. Morgan said that the Airport is currently covered. Mr. Morgan said that Mr. Gipson is correct. Mr. Gipson asked Mr. Morgan to give more detail about the maintenance program at the airport, and how the City will be saving dollars? Mr. Morgan stated that by updating leases, obtaining more building leases and maintaining those assets through an employee devoted to airport maintenance will help to decrease the airport transfer to the internal service fund. Mr. Gonzalez stated that this was a very thorough and transparent budget and is the best one since he has been on Council. Downtown West Fiscal Update July 26, 2016 G(00.4� �WN Background • Four Council Design Updates - September 22, 2015. Program Document Update - November 24, 2015 - Program Document Presentalon - December 8,2015 - Program Document Adoption - March 22, 2016 -Schematic Design Presentation • Public Input - Public Meeting July 15, 2015 - Macedonia Baptist Church August 6, 2015 - Public Meeting August 14 2015 — Public Meeting January 20, 2016 01.PublicMeeting April 7, 2016 GPU.r,6; N Need for Additional Budget • Construction cost escalation • Unforeseen repairs (City Hall Roof Replacement) • Updated contingencies • Increased scope to allow for expandability G[O0. .i. Downtown West • Considered in both 2003 and 2014 Downtown Master Plans • Consolidate City Services 1 Create Synergy • Address Space Constraints — City Hall — Municipal Court - CVB • Reduce Operating Costs • Return Downtown buildings to private sector Reactivate unutilized properties Geoa�NowN Development Process • First step is programming • Programming uncovers needs • Schematic Design is based on those needs • Not unusual to see escalation through that process GroP�uMoeN Efforts Worked with Architect & CMAR to value engineer cations - Delay street improvements for future project -Reduce steel in MC/CC Fagade Based on Programming & Schematic Design the project is substantially over the original budget Cascading Design Options Funding options Efforts Worked with Architect & CMAR to value engineer options — Delay street improvements for future project —Reduce steel in MC/CC Fagade Based on Programming & Schematic Design the project is substantially over the original budget Cascading Design Options Funding options GPOP4FiT( I Slice 1 - $13,327,000 • Omit Screen Wall at West Fagade at CH $ 67,433 • Omit Side Walls of Fagade at MC/CC $122,290 • Reduce AN Budget $ 50,000 • Reduce Furniture Budget $ 75.000 6It aN uW Slice 2 - $12,148,000 • Omit Green Space between CH & 91h $141,132 • Replace Wood Panels with Stucco $179,408 • Omit City Hall Expansion in Courtyard $434,746 • Omit City Hall Expansion in Lobby $ 47,581 • Omit balcony on MC/CC — 350 SF S 43.023 • Omit clearstory above MC/CC — replace with skylights $ 37,253 • Omit Fixed Seating in Council Chambers $ 49,875 cfO0.��F .. Schematic Design - $13,705,000 Everything seen in schematic design Minus — Street Improvements P $157,569 GmP�u�wx Geowi�oPv" Slice 2 - $12,148,000 Slide #12 4F i. Mr. Brainard asked why the roof replacement is being included. Mr. Johnson stated that the roof replacement is for the New City Hall. Mr. Fought stated that this is a lot more than originally figured and asked about the possibility of selling those buildings too and building a whole new building west of 1-35. He asked why the City offices have to be downtown. He asked why City Hall could not be put it where land is a little cheaper. Mr. Morgan stated that there are benefits to using the old library. He explained that the City has all historic buildings and they are all together. Morgan explained that the City would lose the synergies that come with being located closer together, but that it is an option that could be looked at if the Council would like. Mr. Gonzalez stated that if the City moves the building completely, then there is a lot of footage of new office space at today's prices that could make the price increase. He said he looks at this as a 30-50 year project and will be the least expensive money we see in our lifetimes. The City wants to be conservative, but does not want to strip this down and find that there is a need for new space in 10-15 years. Gonzalez said the City needs to look at the long range of this project and possibly finance this project on 25 -year bonds. He cautioned not to skimp now and have to face these issues again in 10 years. Gonzalez said to set the budget and don't ask for more and maybe come in under budget, if possible. Mayor Ross asked what it means to cut the furniture budget. Mr. Morgan said that the City would use existing furniture and move it into a space where it won't fit. Ms. Jonrowe said she has sticker shock and feels that Council needs to sleep on this and think it over, but they also need to decide on the goal. Council seems pretty committed to creating a municipal center in downtown. The City wants something worthy of who we are and exemplifies our values. She strongly objects to moving these offices out of the downtown area. She noted that Council needs to consider the impact on the historic neighborhoods surrounding the building if these offices were to be moved. Mayor Ross would like to know how staff would suggest paying for the increased budget. Mr. Morgan asked Johnson to jump to the financial portion of his presentation. Mr. Morgan asked staff to get as close to available funding as possible. He wanted to show Council how staff has attempted to get as close to the original estimated cost as they could. Mr. Hesser asked what the square footage of the total project is. Mr. Johnson stated that City Hall is approximately 20,000 square feet and Municipal Court/City Council is approximately 18,000 square feet. Slide #15 Slide #16 Mr. Morgan went through the proposed funding options in detail. Mr. Brainard stated that the original figure, produced by someone, has become bogus. He said this number was invalid and that Council should strike this number from memory. Brainard said to wipe the slate clean and talk about what the City needs and wants, a building that is worthy of the City of Georgetown. Mr. Fought stated that it's obvious that the $6M budget won't work. He would like staff to move ahead and take a look at the possibility of building a new building instead of rehabbing an old building. The City can build to match the neighborhood, and it would be something that is far more efficient. The City should consider building a new building rather than restoring an old one. Ms. Eby would like staff to look at the possibility of a new building, but only if it doesn't take too much staff time. Mr. Hesser said he feels the cost per foot seems high and he wants the City to look for value. Mr. Gipson said he wants to have a balance between what the City needs now and what will be needed in the future. Mayor Ross wants the City to consider the estimated usefulness of these buildings as being 40 years since they will be paid for over 40 years. Mayor Ross instructed staff to do a cursory review of the concept of a new building or different location. Mr. Gonzalez said he does not think it would be a cost savings to tear down the historical buildings. Mr. Fought believes it's worth at least a look, even though the answer may be no. Mr. Morgan said that staff will look at a cost per foot to do new construction along with timelines for both options. Slide #18 Slide #19 Mayor Ross recapped that Mr. Johnson will come back with other options and some information about cost per foot. Mr. Morgan stated that staff will move forward with Council direction including cost estimating, focusing on the long tens, ways to save and creating a capacity for growth. Mayor Ross recessed the Workshop Meeting to Executive Session under Section 551.071, Section 551.072, and Section 551.074 at 4:39PM. 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. See. 551.071: Consultation with Attorney - Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items - Public Safety Operations and Training Facility —ADG Settlement See. 551.072: Deliberation Regarding Real Property - City Lease Agreements Sec. 551.074: Personnel Matters - City Manager, City Attorney, City Secretary and Municipal Judge: Consideration of the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal - City Manager Evaluation Adjournment Mayor Ross adjourned the meeting at 6:0013M. Approved by the Georgetown City Council on % I 1 I ,� 01 (tip Date Dale Ross, Mayor S Attest: City Secretary