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Home My WebLink AboutMIN 05.22.2018 CC-WMinutes of a Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, May 22, 2018 The Georgetown City Council will meet on Tuesday, May 22, 2018 at 3:05 PM at the Council Chambers, at 101 East Th 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 three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8`h Street for additional information; TTY users route through Relay Texas at 711. Mayor Pro Tem, John Hesser, called the meeting to order at 3:07 PM. All Councilmembers were in attendance, with the exception of Mayor Dale Ross. Councilmember Ana Eby, District 1, Councilmember Valerie Nicholson, District 2, Councilmember John Hesser, District 3, Councilmember Steve Fought, District 4, Councilmember Kevin Pitts, District 5, Councilmember Rachael Jonrowe, District 6, and Councilmember Tommy Gonzalez, District 7 were in attendance. Policy Development/Review Workshop — Call to order at 3:07 PM A. Presentation and discussion of the 2nd Quarter Financial Report -- Paul Diaz, Budget Manager Budget Manager, Paul Diaz, spoke on the 211 Quarter Financial Report. He began the presentation by with details of the City's General Fund Revenues. • Sales Tax collections up 7.3% compared to the same period last year (more than budget) • Property Tax collections up 7.4% compared to the same period last year (on target) • Franchise fees and Utility ROI is up 4.3% compared to the same period last year (on target) • Development related revenue is up 10.6% (more than budget) Diaz described the General Fund Expenses. • Overall expenses total $31.79 Million, which is 49.4% of budget (on target) ■ Fire and EMS overtime trend increasing due to vacancies and leave requests Diaz spoke on Other Major Funds. • Electric Fund o Revenue is up 8.8% relative to last year (slightly above budget) o CIP expenses projected to total $6.2 Million, primarily focused on new development efforts • Water Fund o Water revenue up 7.6%, while wastewater revenue is up 4.4% (above budget) • Hotel Occupancy Tax o Revenue total $637,000, increase of 44.4% relative to last year (on target) • Airport o Revenues up 1.9% relative to last year (on target) Councilmember Jonrowe asked for a break down in the hotel occupancy tax, with specific figures for specific hotels. Diaz said he will gather this information and provide it to the Council. Diaz spoke on CIP Highlights. 0 General Capital Improvement o Downtown West: Completion at the end of 2018 o Garey Park: Grand Opening June 9, 2018 o Southwest Bypass: Opening Summer 2018 • Water o Berry Creek interceptor is at 90% design — November 2018 completion date o Stonehedge and Westinghouse lift station — completion in May/June 2018 • Electric o Electric CIP is centered around new development. New projects include Ewald Kubota, Hillwood Section 2 and Downtown West Diaz provided Investment Highlights - Investment Highlights • Provided by our consultant Valley View, LLC. CITY 12/31/2017 3/31/2018 Total cash and investments $165,885,663 $173,516,846 Average Yield 1.3096 1.60% GTEC 12/31/2017 3/31/2018 Total cash and investments $19,053,403 $19,387,468 Average Yield 1.39% 1.62% GEDCO 12/31/2017 3/31/2018 Total cash and investments $6,157,417 $6,339,643 Average Yield 1.23% 1.49% Council had no questions and Mayor Pro Tem, Hesser, thanked Diaz for the presentation. B. Presentation and discussion of the IT Catalyst Plan -- Chris Bryce, Information Technology Director I.T. Director, Chris Bryce, spoke on the I.T. Catalyst Plan. He explained the need for the Plan. • Fastest changing industry in human history (age of exponentially) • Fastest growing City in the U.S. • Expectation for Excellence Bryce noted that the I.T. Catalyst Plan would be a five year strategic plan and tactical roadmap, driven by the City Managers, the City Council, GGAF, leadership in every department and multiple users, including I.T. personnel and vendors. Bryce said the plan would be completed in-house. Bryce explained that needed change is driven by catalysts and that the I.T. Catalyst Plan is a proactive response. He noted that catalysts may be trends, issues, specific technology demands, or any other phenomena occurring internally or externally that I.T. must address in order to meet business goals. Bryce said a mission statement for the I.T. Department has been implemented and goals have been set. He noted that 26 catalysts, or drivers of change, have been identified, as well as 56 strategies and 330 tactics for executing the strategies. The I.T. mission statement and org structure were shown and described by Bryce. N: IT Mission city vision& IT Mission 6a&k 1� r J ...Driving technical innovation with exceptional service... /T cata"t Plan I /T cata/yat Plan IT Org Structure IT . Applkat7pns IT - usirintmaurr and Qperatiem I � eno UW wpport Bryce spoke on the I.T. Goals • Empower innovation through partnerships with our customers where we deliver outstanding technology solutions, extensive software support and business process expertise. • Achieve extraordinary levels of end user satisfaction through technical support provided by highly trained I.T. staff equipped with skills in both technology and customer service. • Maintain a high performance I.T. infrastructure using good management practices that are guided by a long range vision and protected by policies that ensure sustainability and security. Bryce discussed the Key Catalysts & Strategies and Key Tactics - Ke Catalysts & � � 1 1} SNI City ViSipn & fI minion11. r ■ Strategies g �� to Catalyst 1: Business driven software demand... 1 • Stratogy. Ever/uwteand implement • Catalyst 2: Migration to the cloud... • Strategy. Crate a Cloud strategy Catalyst 3: Security.... 1i Strategy. Planning and policies (address Risk Assessment) IT Catalyst Plan • Catalyst 4: Enhancing end-user experience... . Strategy. Assess and Improve desktops • Catalyst S: Need for disaster recovery... • Strategy: Implement disaster recovery data center I % .' ' `� Key Tactics ■ rf � - 330 Tactics I • Tactical Top Twenty • Prioritization i • Directives from City Council /City Mngrs ` • IT Steering Committee /T Cato/yst plan • Regulatory r ! g y o legal requirements • Emergency situations • "First Pass" IT prioritization • High level cost benefit analysis Mission Bryce noted recent meetings with U.S. Homeland Security and the risks that municipalities have. He was pleased that the City of Georgetown had passed their security check very well. Other Tools were shown by Bryce next. IT Work Plan • IT Major Project Schedule • IT Asset Schedule (GGAF Initiative) • IT Metrics and Performance Measures • ISF Fund Analysis ■ Staffing Plan • Organizational Chart Bryce provided slides showing the I.T. Metrics. N 1 was lig � r 1% /T Cata"t Plan /T Catalyst Plan IT Metrics • IT cost per City employee* • Georgetown: $8,263 • Nat. local govt avg: $8,991 • Nat. all industry avg: $13,368 • IT employees as a percent of employees • Georgetown: 2.91% • Nat. local govt avg: 3.9% • All industry avg: 5.2% 'Source: Gartner, Inc; City of Georgetown, Texas Li i t +K4! I I sw�e 7i YA► IT Metrics (coni) • IT software (non -personnel) costs as a percentage of overall IT expenses* • Georgetown: 39.1% • Nat. local govft avg: 20% • Nat. all industry avg: 22% • IT personnel costs as a percentage of overall IT costs* • Georgetown: 32.5% • Nat. local govft avg: 45% • Nat. all industry avg: 43% i , :.i Inw♦ 'Source: Gartner, Inc; City of Georgetown, Texas Bryce summarized the presentation. He noted that the I.T. Catalyst Plan was a 5 Year Master Plan to pro- actively address changes that will occur in our rapidly changing City. He listed the strategic focus: ■ Improved support of business app demand ■ Preparation for a Cloud migration • Security — establish policy and process docs ■ Enhancing user desktop experience • Disaster recovery/failover Bryce encouraged the Council to look at the 5 year plan's major priorities shown in their binders. He explained that a plan of 5 and 10 years makes for a smooth budget plan instead of peaks and valleys of costs. Councilmember Gonzalez spoke on the percentages in the presentation. He explained that, if averaged over the past 10 years, the numbers might seem more in line. He explained that some municipalities may have updated software every 5 years, instead of 10 years, for example. Gonzalez explained that this would be taking the hit one time, instead of in pieces along the way, over a period of time. He said the numbers might be a little distorted, but overall, it is a great presentation. Gonzalez thanked Bryce. Nicholson noted that she works in a VDI world and recognizes that a lot of municipalities may be hardware based. She said this could make a huge impact in the numbers. Nicholson thanked Bryce and congratulated him on a fantastic job. She said working with consultants is an excellent tool and the presentation has been very thorough. Nicholson asked Bryce about the ISF increase shown in Appendix B, which is shown to double in 2021. Bryce explained that every 5 years there is a major refreshing in IT infrastructure. He noted that the General Government and Finance Advisory Board (GGAF) had suggested allocating these expenses to each department so that it will not hit the budget at one time. Bryce also explained that there are funds in the ISF Reserve Fund that will be applied, as well. Mayor Pro Tem Hesser said he had been on GGAF and was aware of some of this discussion. Hesser said the presentation reflected the information very well. He also thanked Bryce for bringing and introducing some of the IT staff. C. Presentation and discussion of Staffing Plan and Recruitment for Georgetown Fire/Medical -- John Sullivan, Fire Chief Fire Chief, John Sullivan, provided a staffing plan and explained recruitment for the City of Georgetown Firefighters, EMTs and Paramedics. He said he would like the presentation to be a discussion, and he would be sharing facts and stories. Sullivan explained that overtime in the Fire Department continues to be something they are wrestling with as an organization. He said he would be speaking on structured staffing strategies and recruitment strategies. Sullivan said he is proud of the hiring process that happened this past weekend. He added that he would also like to discuss some funding options. Sullivan said they are looking at ways to be more creative in sharing the costs for service across various fronts. Sullivan provided a chart of a 5 Year Comparison in Georgetown's call activity. )-Year Comparison V41 k" mIri IA]CHA IJ _ NWi 2Ci;9 110K, AM 1013 r He explained that this represents 10 years of call activity in Georgetown. Sullivan explained that home owners insurance and commercial insurance rates are set by this audit. He noted that the audit is typically conducted every 10 years, but ISO will perform the audit even more often, if need be. Sullivan said the last protection services rating was done in 2008. He explained that ISO, during an audit, will be looking at water infrastructure, such as hydrant layouts. Sullivan noted that ISO will also look at the distribution of fire stations and firefighting staff, as well as fire losses. Sullivan spoke on a consultation with the City Gate group in 2011 and discussions on how to share costs with others since the City of Georgetown serves more than the 55 square miles of the City and actually serves 130 square miles when including the ETJ territory. Sullivan said that the Council had authorized another analysis in 2013, which reinforced proper placement of stations and looked at population growth and call activity. He explained that this analysis predicted 6200 calls in 2015, based on population projections. He said call activity has exceeded the estimate. Sullivan went on to say that the call numbers the City has seen in 2017 are the numbers that had been projected for 2025. Sullivan explained that most city's call activity will grow consistent with the population increase. He noted that the age of Georgetown residents is driving demand for service. Sullivan provided a chart showing System Demand and explained the number of calls and how they are indicated on the chart. He explained that in 2015, if it were a static system, it would be green — about 9,000 calls per year, or an average of 25 per day. Sullivan said the yellow category indicates about 11,000 calls per year, and orange indicates 14,000 calls per year, or 40 calls per day. He explained that red indicates a threshold of 14,000 to 19,000 calls per year, or 40 to 50 calls per day. He showed that in 2017 into 2018 call volumes that used to be green have been replaced with yellows, oranges and reds. System Demand 9 Councilmember Pitts asked if the data correlates with taking over EMS. Sullivan said the numbers include both before and after EMS. He explained that Georgetown has trended similar to other organizations. He noted that EMS' call activity is generally around 80% of the calls. Sullivan said that the fire calls are relatively stable, but fire activity has been reduced regularly because of the systems, fire prevention education, and suppression systems. He said fire activity has been reduced industry wide. Councilmember Hesser asked what year EMS was acquired. Sullivan said fall of 2015. Hesser said he would like to see Fire calls and EMS calls broken out and compared. Sullivan noted that fire calls are down. He said the Fire Department must look at leadership within the various fire stations. He noted that even though Georgetown has more homes now, the Fire Department has had fewer fire calls. Sullivan spoke next on Succession Planning, describing the importance of both numbers and experience of personnel. He mentioned brain drain that happens across time if a department is not careful about succession planning and culture. Sullivan explained that policies and training are very important. He noted that the Fire Department does not operate out of a single facility, but is rather a decentralized operation, which can only be successful with how each individual fire station operates. He noted the importance of watching who is in the pipeline to fill leadership roles. Sullivan described the data, indicating how many employees are at each level, and the average years of experience of those employees. 14 '^i I M J! I 1 Ii I IILJIr"_~"" Succession Planning 1 Councilmember Pitts asked about the far right bar in the graph provided. Sullivan said 59 of the 119 employees are firefighter level, or entry level, with an average of 4 years of experience. Sullivan said it is necessary to be cognizant of this when providing training, as this means more than 50% of the force has less than 4 years of experience. Sullivan spoke on vacancies and explained that 7 would be coming up this month — 2 to job transfer, 4 newly authorized and 1 career change. He noted that a younger workforce is more transient and the Department must be competitive to retain good employees. Sullivan described the strength of force numbers and how it plays into the need for overtime of staff. Sullivan said it will be necessary to hire more paramedics to staff another ambulance during peak times, 8AM to 8PM. Sullivan said, even though they have been as creative as possible, and operated within the legal limitations required, the fall recruitment was disappointing and it was necessary to recruit again in the spring. Sullivan explained that there is at least a 90 day lead time before they start the testing of a possible candidate. He said from advertising a position to testing is about 90 days and then there is another 60 to 90 days before the employee can actually start training. Councilmember Fought asked questions about the yellow tower shown in the graph. Sullivan said that in January the strength of force number was amended from 104 to 109. Sullivan said the numbers will need to be corrected, and the difference reflects individuals who started the academy, but did not finish. Councilmember Pitts asked if there is a shortage of people with what is needed. Sullivan confirmed and explained the shift requirements of staff, with staff on shift for 24 hours and off shift for 48 hours. He explained that 105 employees is divided into 3 shifts. Sullivan said he needs 30 people on duty every given day. Councilmember Gonzalez asked about numbers for strength of force and said there is 2.42 rank and file personnel per supervisor. Gonzalez asked how this compares to industry standard. Sullivan described the 4 different positions required on the fire trucks, including a company officer, a driver engineer, and two fire fighters. He said there is a requirement for a supervisory person on each vehicle. Sullivan said that, typically, the truck can be down one person, due to vacation or sick leave. Gonzalez asked Sullivan to provide similar staffing levels from other organizations for the Council, to see how the City compares. He said he recognizes that fire and EMS operations are different from other environments but he would like to see some industry standards with similar cities. Sullivan spoke on the Daily Staffing Levels Daily Staffing Levels Max 4 Min 3 Max Staff 20 6 10 Sullivan spoke on Covering for Vacancies, Vacation Leave/MSL, minimum staffing levels and overtime impact. He provided illustrations of each. Covering for Vacancies Min Staff 15 • � rr► Y� r.r Amort rc + Up to 20% of off -going shift held each day to provide minimum staffing levels on vehicles. Vacation Leave/MSL aM"I ani Overtime Impact 0 2% increase in flnonciallmpact j (est.:s' S300K) j I o Work/life Balance Alternative Options S.- Councilmember Hesser asked for an example of when an employee is held over. Sullivan said, any day, he needs 30 bodies and if someone has called in sick or is on vacation, someone must be held over to fill the shift. Hesser asked about policy to request time off and when one would need to provide notice of not being at work. Sullivan said vacation days are filled almost a year in advance, but injury, illness and FMLA cannot be predicted. Sullivan said employees are instructed to request sick leave by calling in no later than 6 am that day. He noted employees taking FMLA up to one month for the birth of children. Gonzalez asked about increasing the margin from 30 to 37 employees per shift and noted that 20% overtime is much more expensive for the City. Sullivan said he meets with the City Manager monthly to look at this. City Manager, David Morgan, said float positions have been added previously and they want to look at hiring another float position to help control overtime expenses. Gonzalez said if there were 36 positions per shift, one should expect 30 to be present. He noted how overtime wears people out. Sullivan said it is dangerous for training, as well. He said he wants to have an active list to hire from when a vacancy occurs. Sullivan said the list can be certified up to 6 months, and he can ask for a 12 month list. He reminded that it takes from 2 months to 6 months before someone chosen from the list is ready for active duty. Gonzalez asked if it is possible to have transition employees. Sullivan said he and Morgan have discussed this. Morgan said if they are able to get a good hiring class, it would make sense to over hire. Gonzalez said if the City ends up with 2 months with 2 positions over staffed, it is still less costly than overtime, while also providing better work/life balance. Sullivan said the department is currently 2% over budget, estimated to be about $300,000 He spoke next on the Staffing Plan and Hiring Plan for Station 7. Staffing Plan • Tiered hiring plan • Operational date January 2020 • Engine 7 Staffing = 12 Firefighters • Medic Staffing = 2 Firefighters Hiring Plan • Establish Hire Lists — May & August • Fill Vacancies ■ Extended Training Time for Paramedics (10M) • Promotional Assessment Centers x 3 • Plan for Station 7 Staffing Costs o $1.5 M new staff costs (full year funding) o Peak unit ambulance included o O&M Costs Sullivan provided a slide showing EMT/Firefighter Candidate Training Process. He noted that there is always poaching from other cities. Sullivan spoke on providing the training and opportunities that will be attractive and requiring an employment contract. Councilmember Nicholson asked about the number of years that would be required in the employment contract. Sullivan said they are still working through the employment contract with HR and other regulations Sullivan spoke on the City's ESD Partnership • Current Funding Model = % of Responses • Proposed Blended Funding Model o # of Properties Protected (PP) o Assessed Valuation (AV) o Population Served (PS) o Calls for Service (CS) Morgan said this would be similar to when a water infrastructure is purchased, where the City purchases the "ability" to get the water, because all of the infrastructure has to be put in place. There can be years where not much water needs to be purchased and other years where it does. The infrastructure and cost has to be there. He said this moves a situation from an on -demand system to what a true partnership should really be. Sullivan spoke on a Possible Funding Option Possible Funding option Staffing for Adequate Fire and Emergency Response (SAFER) $350 million (est.) _ Fire Prevention and Safety (FPBS) w' S35 million (est.) Assistance to Firefighters Grants (AFG) $350 million (est ) Sullivan said he took notes and will bring back the information Council has requested. Morgan said this will be a big rock in the proposed upcoming budget and staff will be keeping the Council informed. Morgan said there will be much more to come. D. Presentation and discussion of the City's MUD Policy -- Wayne Reed, Assistant City Manager Wayne Reed, Assistant City Manager, spoke on the City's MUD Policy and the recommended amendments to the Interim MUD Policy and to the UDC. He said that staff would be seeking Council's direction on the changes discussed, in order to schedule each one for consideration and possible action to revise the MUD Policy by resolution and amend the UDC ordinance. Reed said that this presentation would be the third of its kind brought to the Council. He explained that the current interim MUD policy is nearly 4 years old. Reed noted that the Council had been given a timeline and policy criteria in the first presentation. He said the 2^d presentation had addressed the questions posed by the Council in the first presentation and that Council had asked for a redline version to be brought back Reed spoke on the Policy and UDC Review Team and thanked everyone for their hard work. • David Morgan, Wayne Reed, Laurie Brewer, Jim Briggs, Jack Daly and Seth Gipson in the City Manager's Office • Charlie McNabb, the City Attorney ■ Sofia Nelson, the Planning Director • Wesley Wright, Systems Engineering Director • Kimberly Garrett, Parks and Recreation Director • Chief Sullivan, Fire Department Reed explained that he would divide the presentation into 4 parts. • Part 1 — Recap of Council Direction from March 27th • Part 2 — Response to Council's Questions from March 27th • Part 3 — Review Changes to the Interim MUD Policy and describe how the UDC has been revised to be consistent with the proposed changes • Part 4 — Questions and answers Reed provided a slide showing Council Direction from March 27, 2018 Council Direction from March 27th Translate Staffs recommendation into modified Interim MUD Policy and UDC documents • Policy 1 Location • Policy 2 Unique Factors • puill.y J. Subli111IVIULJ WCdLIVII FlCIIIlulld1lu 1111V. Dnlicy A Crncc rinn^,rfmnnMl MUD Rcv- , Tc2 n • Policy 5 Public Services and Safety • Policy 6 Utility Service Issues • Policy 7 Debt • Policy 8 Future Annexation • Policy 9 Exceed minimum UDC Development Stds • Policy 10 Parkland and Trails • Policy 11 Transportation VtoikGiT N 6 i [7[A5 Recap of Council's Questions from March 27th • Information on Home Sales in Residential Subdivisions (with and without MUDS) — Home Sales Price per Subdivision — Home Square Footage by Subdivision — Home Sales Price Per Square Foot by Subdivision 7(�;, Yf"(.I Ivy VN IiL�� Ln., MPO .. d High Wd FIC.. ►7 7�111.F. (01,17 M 1� _S Georgetown Neighborhoods- Home Sales Analysis w— •ry..L �i _ � wxr�rj 11 �- '� Dw+Hrww r .MLO! Ln., MPO .. d High Wd FIC.. ►7 7�111.F. (01,17 M 1� tow. =Do-%.w"qb We Oncosor►+r Sommo M%'-ITown L— r+rw w K40 N" hr a-+Nrl+m worsa Councilmember Gonzalez asked if all of the neighborhoods were in the City and if that makes a difference. Reed said there are neighborhoods both in the City and in the ETJ in the analysis and it did not seem to make a difference. Gonzalez asked if a MUD is driving the price. Reed said it has no correlation. He then added that Cimarron hills will not be focused on, since it is a different situation from the others. Gonzalez asked about newer construction compared to older construction. Reed said he would have to run the numbers and bring the information back to the Council. Reed reviewed the Redline Changes to the Interim MUD Policy and provided staff recommendations. He noted that paragraphs which added no value had been struck. He noted that the new policy will be much more clear for applicants. W414ANIWWNI Odih Dnffirl and Inavirmvnial"n Nlastijr -4—'! 4k fir LQ? ' f'te "At M.LD. 1.119 /8 N--V-dUn I- C --.,W A- C-.&. 40 D"&kl ALL NEW TEXT A d:c —ldl,w Ile -41.ri d, Cw, po". r— it, 11 r,1 m— tie t !x— o! 't, MT. cr wpw c arr wl "p, INft'Dl t".119. . Co sjltev '.Nlth put Cc -"d jKlims, rNwe the tomfnxtm of "CLik. 1CM11111 W&v4:"e rmpra IKE the plat x)dcasfel Pam wjdal we to final to the f 1 S.IoiI sm r—& f ok 4" �*.44.ev.dR 1", ".0 Jrslgm i Ul =ra,:l utas MA At "le -lW Staff Recommendation • Policy 3. Submit MUD creation petition and info- - Removed as a policy and will be required as part of process in UDC • Policy 4. Cross Departmental MUD Review Team - Removed as a policy and will be required as part of process in UDC • Policy 5. Public Services and Safety -- No change Continue to incorporate fire stations andr'or SIF' fee Staff Recommendation • Policy 6. Utility Service Issues — Continue to require extension of utility master plan lines and granting of easements. continue to require City to be provider of water- sewer, sold waste. and electric (wherever possible) — NEW. Added language to include that the City would be the provider of utilities in the case of multiple certificated service areas POLIC I' 74; Specif+ The jumoval ofAkU intended to fit mued. The purpose of the debt, amd4be debt mice *tbgduk. mad include Thaw rmjLmrW prot loan% in lb" .41wal jg, ""w4j:c A IIIJAIMUH },Y, I I —UhWe JjWUFj My4 Staff Recommendation • Policy 8. Future Annexation when in ETJ — Maintain, but unlikely to be actionable (see Policy 1.) • Policy 9. Exceed minimum UDC Development Stds NF W Clarified language related to age -restricted development Staff Recommendation • Policy 9. Exceed minimum UDC Development Stds (cont.) Removed criteria for all MUDS to contain at least 20% nonresidential land uses: seek consistency,,vith F:Uture Land Use Flan Removed criteria for portion of commercial land uses to develop in first five years of first building permit Reed summarized. He asked for comments and direction from the Council on the proposed changes to the City's Interim Municipal Utility District (MUD) Policy. He said he would also need comments and direction on the proposed changes to Section 13.10 of the UDC, which would include additional refinement of the clean-up flow and clarify Section 13.10.060 pertaining to city operations compensation fee, which only applies to out of city MUDs. Reed asked Council for their direction on the proposed fee, as well. Councilmember Pitts asked if a MUD tax goes away when the MUD is retired. Reed confirmed artd explained that in the policy there is a process that is followed for the dissolution of a MUD. Pitts asked about the portion regarding debt and a 25 year maximum amortization, with the last issuance being only 10 years. Reed said the guide in the policy is that the maximum maturity of a bond should be 25 years. He explained that when a MUD is created it takes a while for there to be enough assessed value on the ground to issue the first bond. He explained that the policy requires a maximum of 10 years between the first bond and the last bond, which means there is a 35 year period of taxation of the MUD. Pitts asked if language could be added regulating refunding bonds to extend amortization. Reed said, if Council directs, he will work with the attorneys on the refunding language, so it does not extend the 35 year period. City Manager, David Morgan, thanked Pitts for the good catch and said the intent is that the life of the MUD does not extend past 35 years. Pitts said the MUD Board established on day 1, will be a completely different from the MUD Board after 15 years, which may have a different perspective on debt and taxation. Morgan said consent agreements of MUDS, look for maintenance or park amenities. He said the City can make sure it is an HOA instead of a MUD Board that maintains parks, for example, so that the life of the MUD is not extended. Councilmember Hesser asked if the City has experience in closing a MUD. Morgan said the City has not had to close a MUD yet. He explained that some MUDs across the state have their own utility systems, whereas the City of Georgetown requires a MUD to have City of Georgetown utilities. He explained that MUDs that are maintaining their own infrastructure go on forever and that is not the way the City's MUDs are structured. Reed spoke on staffs recommendations to update application fees to cover costs. He noted staffs burden when existing districts renegotiate terms and the tracking of performance milestones. Reed said the City has been subsidizing MUD applications every day. Reed explained that the amount of applications and the complexity of the applications in the last 2 years far exceeds $3,050 very quickly. He provided a comparison of other cities' fees. �� _. -�. I�• Gearysroml• --.ti 1� Pee srx.rw A2 Admimstn4vew Approved Affwnd w* M N I k a Colmnl ApprovedA mdmem 112,130 1i Adm"'W evsll ApprpvedAnlerld4tle 14 131 M L counco Approved Amembnerd 612.130" ��d 330 pA $3 010 • ba ft -le %$ 000 ow"• "000 after i hours' body 11 100 s be Iree arteri hours' MANG {1.{60 ♦ ba one after 1 hew" {I{.000• - LdM1MV,WVrIw uasler0evelopmare 130000 IN (-i1 of sone Issuanu) Reed said staff is proposing a fee of $20,000 to sufficiently cover the costs of the activities listed. He said it is important to agree to a fee that justifies the expense related to staff time and resources spent. Councilmember Hesser asked if most of the expense was legal expense. Reed said legal expenses are separate. He said the current practice is for an applicant to pay the flat fee and then also reimburse the City Attorney's office for legal expenses. He said the proposed $20,000 fee language indicates "plus additional legal and consultant fees". Morgan said the full City Manager Team and several others from Finance and Utilities review these applications heavily and consider water, wastewater and transportation. He said if the amount of time put it was examined, the proposed fee is very reasonable. Morgan said the City receives a lot of applications. He explained that a more reasonable fee would insure that a developer is serious before applying. Councilmember Nicholson asked how revisions would be handled. Reed said they would be handled the same as applications and noted the recent Water Oak amendments and the significant amount of work required of staff. Councilmember Gonzalez asked about a flat fee plus an hourly fee, which would be justified by actual work. Morgan said this is easier for attorney's fees than for staff time fees. He said it would be too hard to track hours, which the city staff does not normally do. Gonzalez said there could be problems with applicants asking why they were charged so much when their particular application was simple. Reed noted fees are intended to reflect the cost of providing that service generally, as well as to support a program. City Attorney, Charlie McNabb said the City code requires that development agreements cannot be passed unless they pay the fees, including legal fees, billed monthly. Gonzalez said his goal was to find less arbitrary and more concrete regulation. He said he could imagine a developer who paid a $20,000 fee a year and a half ago and then needing to make an amendment. Morgan said there have been agreements that an applicant has brought for amendment weeks later. He explained that this will assure the agreement gets done right the first time and will discourage applicants from applying for minor amendments. Morgan said this fee can be easily defended. Pitts said developers are more concerned with the timing deadlines than the fees. Morgan said staff is working on a more coordinated process. Reed said the MUD Policy would be adopted by Resolution by the Council, if they direct staff to do so. Reed described the Next Steps • Seek Feedback from the UDC Advisory Committee on June 131h • Return to City Council with a Resolution to adopt the MUD Policy • Subsequently return to City Council with an Ordinance to amend the UDC • Recommend following an annual UDC amendment process and timeline Mayor Pro Tem, Hesser, congratulated Reed on a job well done. Mayor Pro Tem, John Hesser, recessed the meeting to Executive Session under Section 551.071, Section 551.072, Section 551.074 and Section 551.087 at 4.50 PM. Council members returned to the dais at 6:02 PM. Councilmembers were then asked to return to Executive Session at 6:08 PM under Section 551.072 and returned to the dais to begin the regular council meeting at 6:11 PM 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. E. Sec. 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 - Water CCN Sec. 551.072: Deliberations about Real Property - Authorization of Negotiations for the Downtown Building Sale - Wolf Lakes - Acquisition of Property for Northwest Blvd., Parcels 5, 9, and 10 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 Sec. 551.087: Deliberation regarding Economic Development Negotiations - Project Deliver - Project Wire Adjournment Mayor Pro Tem, John Hesser, recessed the meeting to begin the Regular City Council Meeting at 6:15 PM. Approved by the Georgetown City Council on _ I a T a 0 \ q Date