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HomeMy WebLinkAboutMIN 06.11.2019 CC-WNotice of Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, June 11, 2019 The Georgetown City Council will meet on Tuesday, June 11, 2019 at 3:00 PM at the Council Chambers, at 510 West 9"' Street, Georgetown, TX 78626. 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 808 Martin Luther King Jr. Street for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the meeting to order at 3:01 PM. Councilmembers were in attendance. Mayor Dale Ross; Anna Eby, Councilmember District 1; Valerie Nicholson, Councilmember District 2; Mike Triggs, Councilmember District 3; Steve Fought, Councilmember District 4; Kevin Pitts, Councilmember District 5; Rachael Jonrowe, Councilmember District 6; and Tommy Gonzalez, District 7. Eby arrived at 3:03 p.m. during Item A. Gonzalez arrived at 3:25 p.m. during Item B. Policy Development/Review Workshop — Call to order at 3:00 PM A. Presentation and discussion regarding Williamson County Transportation Bond and city participation -- Ray Miller, Transportation Planning Coordinator Miller presented the item by reviewing the projects that were submitted. He stated that the projects submitted were the Southwest Bypass Extension Project, Westinghouse Road, Southeast Inner Loop Extension, and the South San Gabriel River Trail Project. Miller stated that the projects will be evaluated based on local participation, project status, estimated completion of the project, and how the projects support the County's long-range plan. He then reviewed the Southwest Bypass Project and provided a Location Map and reviewed the benefits of completing the project. Miller stated that the estimated total cost for the project is around $5.4 million and the City has already purchased needed rights -of -way to contribute to the project. Fought asked for clarification of how the costs would be split between the City and the County. Miller responded that it would be roughly a 50150 split. Miller then reviewed the Westinghouse Road Project and how it is a three -lane building out with the potential for a future six -lane build out. He added that this project was selected because it is location in one of the City's fastest growing areas. Miller noted that it is needed for current and future traffic needs. He provided a breakdown of what the potential costs could look like between the City and the County. Miller then reviewed the Southeast Inner Loop Extension and the potential total project costs of $22.5 million. He showed Council a map of the project and noted how it would create a full by-pass for SH- 29. Miller added that it would have some overpasses and provide an alternate east -west route. He reviewed the potential cost breakdown between the City and the County. C. Presentation and discussion regarding Electric Resources Management Implementation Update -- David Morgan, City Manager Morgan presented the item and reviewed the FY 2019/20 electric fund actions which included: taking advantage of the November natural gas price spike to sell 2019 MEA gas and energy in to the forward market; imitating discussions with SS3 and Buckthorn on contract structure; soliciting proposals form other utilities and brokers on selling remaining long position; completing third party resource management assessment by Schneider Engineering; soliciting proposals for third party portfolio management for long term; and adjusting the PCA in February and June. He then reviewed the need for a third -party energy portfolio manager including utilizing a number of sophisticated tools to optimize the excess energy and bringing more resources and expertise than an internal strategy could provide. Morgan said that the City is currently working through an RFP for these services and recommendations will be brought to the City Council at the July meetings. Pitts asked how many firms responded to Request for Proposal (RFP). Morgan responded twelve. Pitts asked if staff was conducting interviews and had selected finalist. Morgan responded that six staff members were reviewing and narrowing down the applicants and had conducted interviews. He added that staff would soon be bringing forward their recommendations. Pitts asked if staff was going to express the desire of a third -party taking risk ownership of the excessive energy. Morgan responded that the RFP was broad and allowed for a lot of different options. He added that the respondents will provide a list of suggested to option to the City that will cover various options. Pitts asked if Council does not find the respondents satisfactory, can staff rebid. Morgan responded yes, that's an option. Gonzalez asked if the responded companies contained highly qualified candidates. Morgan responded yes, and some are significant players in energy market. Gonzalez asked if the City could utilize more than one respondent. Morgan responded yes, staff can work with selected firm for risk management and then can go through a competitive process for management services as needed. Gonzalez asked if firms will provide projections. Morgan responded that the City does have internal resources for projections. Jonrowe asked if as part of the RFP process and in relation to Schneider proposal, has staff considered putting the risk policy or General Manager of Electric in place before selecting a third -party. Morgan responded that the decision would be up to council and noted that purchased power is the biggest expense to the City. He added that staff was trying to move the process along quickly and in an ideal world you would hire the General Manager of Electric, then put a risk management policy in place, and then bring in a third -party resource. Morgan stated that later in the presentation he would cover the recruitment process for the General Manager of Electric. Jonrowe asked if the RFP was intentionally left broad. Morgan responded yes. Jonrowe stated she was struck by simplicity and asked if Schneider was asked for input. Morgan responded that the City does have a contracted staff person that has experience with drafting these types of documents. Jonrowe asked if it was the contracted staffperson's recommendation to have RFP be broad. Morgan responded that the contracted staff person was part of the review process. Jonrowe asked if said staff person is he going to look at the contract that comes out of this process. Morgan responded yes, he would. Jonrowe stated that she did have concerns with the timeline and people being impacted that aren't involved in process. Morgan responded that staff will present a recommendation in July and will need the selected firm in place by Oct Is' of this year. Mayor Ross asked how Morgan perceived Council's role in the process. Morgan responded to make a selection. Mayor Ross asked if Council would consider a subcommittee, and if staff would object. Morgan responded that he no issue with that and will work with procurement to include councilmembers and provide the opportunity to review in more detail. Mayor Ross proposed having a Pitts asked Morgan to explain the benefits of contracting for internal energy management services versus assigning that duty to an internal employee. Morgan responded that the role may not be a contract long term but would like for it to be contracted in the short term because it is a new role that does not currently exist in the organization today. He added that the position could be contracted quickly to bring on the needed expertise. Morgan stated that once a General Manager of Electric is brought on, it will be important for he or she to oversee long term decisions like the hiring of the internal energy management position. Pitts asked if contracting would cost less that hiring someone full time. Morgan responded that it would depend on how long the position is contracted for. He added that staff would manage the costs associated with the contracting of the position. Morgan reviewed the next steps for Council which include: reviewing the electric utility structure at the June 25`" workshop; third -party portfolio management services selection that will be brought to Council for review and approval in July; internal energy management services selection brought to Council for review and approval in July or August; and continued review of power contracts and power cost adjustment during executive sessions. Pitts asked if the Internal Energy Management Services position is a short-term position. Morgan responded that he suggested contracting the position in short term and then re-evaluating the needs. Pitts noted that forecasting and budgeting was broken out and asked if that was something the Portfolio manager could handle. Morgan responded that forecasting and budgeting would be part of it, but the City would benefit from additional resources and a diversity in opinions. Pitts stated that his only concern is adding additional costs in fund that is already stressed. Morgan responded that he understands, but there are vacancies and positions have been held. He added that staff has done other things to cut costs and balancing that with the most effective strategy for management will lead to spending the right resources within reason. Pitts noted that purchase power has been unpredictable and changes constantly. He asked if staff is adding more onto that fund and the fund can't take much more staff should look to add the least amount of expense while being successful. Gonzalez noted the comments made by Pitts. He added that the City is facing an unpredictable situation and trying to make predictable decisions. Gonzalez said that Council needs more information to be more confident in the decisions they are making. He added that staff needs to find what will give the City reliable projections and review the reliability of the companies considered. Morgan responded that the overall purposed of executing the strategy is to bring more resources to the table and put more tools in the City's toolbox. He stressed the importance of having a diversity of opinions and that staff is trying to improve upon that area currently. Eby stated that Morgan provided a good presentation on what the best options are moving forward. She added that council is aware of costs and if staff is suggesting being focused on a well thought out plan. Eby said that the focus is on how the City got here and how does the City get out of it and do better in the future. Mayor Ross noted that focusing on costs is simplistic approach and he is looking more at the return on costs and staff is on right track. D. Presentation and discussion of the Workday update and payroll practices -- Leigh Wallace, Finance Director Wallace presented the item and reviewed the Workday project purpose. She added that this project will address concerns and issues documented in Needs Assessment of. current system lacks modern ERP functionality; no `true' HR system/module implemented; current limitations force use of side systems; Wallace responded that salary employees have to go and enter in where they took time off. Mayor Ross asked if the current system is exception reporting. Wallace responded yes. Mayor Ross asked if a salary employee does not take any time off or experience any holidays, can their payroll be processed immediately. Wallace responded yes, that will be an option for exempt employees. Mayor Ross asked if that is an option or how things are currently done. Wallace responded that staff is moving to that option and exempt employees will have the option to have their time prefilled from their schedule. Mayor Ross asked if, for exception reporting, the electronic timecard will go to the supervisor for electronic approval. Wallace responded yes. Mayor Ross asked if the best the City could get time entry down to is a process completed in two days. Wallace said yes, right now, but if given the chance, staff could try to do even better. Mayor Ross asked about the cost for those two days due to an imperfect system. He added that ADP does payroll all over the world and it happens the next business day. Wallace then reviewed a snapshot of a current pay stub. She then provided a transition example followed by the first pay slip in Workday. Wallace then reviewed the financial impact to the City for the transition. She noted that the City does not currently book payable or receivable on the balance sheet since estimate and reconciliation occurs every two weeks. Wallace said that the final advance paid at the end of FY2019 has an impact of approximately $900,000.00 across all City funds. She continued that the receivable is reduced as employees pay back the advance at termination and staff was looking for ways to reduce the administrative burden over a long time period. Wallace noted that the GGAF feedback defined a shorter time period for payback and provided two options. She said that option one was for the city to cover the $900,000.00 for employees through the overall comp and benefits plan and option two was for employees to pay back the advance sooner over three to five years. Wallace reviewed the concerns with Option One as: $900,000.00 being too much for the City to absorb on its own; every budget year has its challenges; and using other employee compensation for repayment may feel like we are docking pay for employees. She reviewed the staff recommendation, which is Option 2 where employees pay it back sooner by choosing from either refusing the advance on final Incode paycheck, which would pay back the advance immediately or provide employees a defined time period and deduct equal amounts each pay period. Wallace showed the difference in payback from three to five years and amounts for a $15.00, $25.00, or $35.00 per hour employee salary. She said this is the part of the presentation where staff would like Council's feedback. Mayor Ross asked about the three-year payback rate for $15.00/hour employee. Wallace responded that for a full-time employee the advance would be $600.00 and over five years they would give back $8.00 a pay period. Mayor Ross asked what Wallace wanted from Council. Wallace responded a general consensus and the okay with staff moving forward. She added that there will be a lot of communication with employees, as employees will be in the new system by the end of September and there is no time to go backwards. Pitts asked for clarification on if employees would be allowed to choose between three or five years. Wallace responded, no, one time period would be selected for all employees to cut down on administrative burden for payroll staff. Pitts stated that his preference would be for employees to have a paycheck short a week, but his compromise would be the option of 74 pay periods. Gonzalez said the three-year time period is long enough due to the opportunity cost to the City. Jonrowe asked as a point of clarification if the City would give employees the option to deny the advance. Wallace responded correct and if an employee leaves prior to completing the three-year payback, then the balance will be trued up at the employee's termination. Mayor Ross asked Councilmember Gonzalez about opportunity costs. Gonzalez responded with possible figures on what could be earned on the $900,000.00 that will not be around for investments as part of the switch to the new pay structure. Mayor Ross recessed the meeting at 5:03 p.m. and noted that Council will begin Executive Session at 5:15 p.m. 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. F. 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 - Litigation Update Sec. 551.086: Certain Public Power Utilities: Competitive Matters - Purchased Power Update Sec. 551.072: Deliberations about Real Property - Sale of Property — 103 West 7th Street -- Travis Baird, Real Estate Services Manager Sec. 551.087: Deliberation Regarding Economic Development Negotiations - Project Cat 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 --------------------------__._._ ..._------- _ ------ .___ _ .___._.-__....------- _..____ --- ---------__ Approved by the Georgetown City Council on 25 Date Da a s, Mayor Attest: City Secretary -