HomeMy WebLinkAboutMIN 10.09.2012 CC-WMinutes of the Meeting of the Governing Body
of the City of Georgetown, Texas
Tuesday, October 9, 2012
The City Council of the City of Georgetown, Texas, met in Regular Session on the above date with Mayor
George Garver presiding.
Council Present: Council Absent:
Patty Eason, Danny Meigs, Bill Sattler, Tommy Jerry Hammerlun
Gonzalez, Rachael Jonrowe, Troy Hellmann
Staff Present:
Paul E. Brandenburg, City Manager; Jessica Brettle, City Secretary; Micki Rundell, Chief Financial
Officer; Kimberly Garrett, Parks and Recreation Director; Laurie Brewer, Assistant City Manager;
Minutes
Policy Development/Review Workshop - Call to order at 04:00 PM
A Council Visioning Update -- Paul E. Brandenburg, City Manager
Hammerlun and Gonzalez absent.
Brandenburg described the visioning sessions that occurred last month. He spoke about how Council was
asked to define the "city of excellence" and said they came up with the statement: "The City of Excellence is one
that maximizes its citizen's quality of life." He noted, after that statement was defined, Council considered what
the city needs to do to become a City of Excellence. He said staff sat in the back of the room during the meeting
while Council tried to arrive at what they vision was. He noted the top priorities that came out of the meeting
were public safety, transportation, economic development, utilities and a signature destination. He spoke about
how the Council looked at each priority and determined how to break those down into smaller goals. He
described the sub -points and projects under each of those priorities. He spoke about how he is initiating
meetings with staff and broke them into teams according to each of the five priorities. He noted he will be
attending all of the meetings. He said there has been very positive discussion and innovativeness so far. He
noted it has been exciting to hear the ideas from staff. He noted he hopes to have business plans for each of
those five priorities done by the first of the year. He added, however, there is still a lot of work to be done with
this.
Jonrowe said she appreciates the updates and noted she would like to see more updates as progress is being
made. Brandenburg said he will start sharing more with Council as stuff is available. He noted, as it gets to be
firmer, he will start sharing more with Council. Mayor asked and Brandenburg said Council will eventually have
business plans for each of the priorities as well as sections talking about how to finance each of those plans.
B Presentation on IOOF Cemetery operations and possible direction on pursuing self-sustaining options -- John
Hesser, Chair, Parks and Recreation Advisory Board and Kimberly Garrett, Parks and Recreation Director
Garrett introduced herself as well as Hesser to the Council. With a Powerpoint Presentation, she described
what IOOF m ans and said it stands for International Order of Odd Fellows. She provided a brief background of
the cemete and how the City obtained it years ago. She also provided a brief history of how it has been
operatin . esser said, when the board was going through the process of budgeting, it became aware of a
negati e. He said there was an outlay for maintenance of the cemetery and noted there was no offset for that.
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He said, if this continues on, they are worried what it will look like. He said they are also concerned about
whether or not there will be a burden on the tax base. He said the next question that came about is what is the
obligation of the government to provide burial places as well as what are citizens expectations for a cemetery.
He said the Parks and Recreation Board felt these questions needed answers.
Garrett said the cemetery was transferred to the City in 1968 in exchange for real estate and cash with an
understanding that the City would maintain the property in perpetuity. She said at this point in time the IOOF
transferred two additions with lots available for sale. She noted they were selling the lots for $25 each in 1968.
She said through all of the documentation it was evident there was a plan on how the cemetery was to be
maintained. She said the cemetery was once considered profitable. She said the City made a commitment with
the IOOF for perpetual care of the cemetery. She said, since then, the City purchased additional land adjacent
to the cemetery next to the railroad to continue with the cemetery sales. She said the City invested money and
expanded the cemetery three times since taking over ownership and responsibility. She noted a master plan
was created in 2007 for the cemetery. She said they ran out of lots until the City was able to purchase extra land
in 2007. She said the main objectives were to maximize available properties and respond to public need. She
noted the City offered single lots instead of double lots and the City also started an urn area. She noted in
2007 there was also a policy created to collect fees to help offset maintenance costs as well as an increase in
lot prices. She said over the last five years, the city has spent $348,000 in maintenance and improvements and
collected $275,000 in revenues from lot sales and fees. She noted the City sells on average about 30-40 lots
per year at a cost of about $1,500 per lot. She said based on the current sales rate, they estimate there there is
approximately 20 years left before traditional burial sites will be sold out. She noted that, however, is
unpredictable. She said based on that history, and many meetings with the Parks Board, the Board made
observations based on the information staff had gathered.
Hesser said twenty years of remaining time is very conservative in that the population is aging and the the
community is growing. He said they feel the 20 years is the outside number. He noted once the lots are sold,
there will be no revenue to help offset future maintenance costs. He noted changes in the market have been
moving from transitional burial to cremations. He said cremation is up 7% in the last five years. He said people
in the higher income bracket tend to be cremated. He noted one of the contributing factors is that those families
are dispersed across the country and cremation seems to be a better method for bringing people home. He said
the second thing they observed is the present solution for cremation does not seem to be working. He said they
found that there is a process called a columbarium which is a better use of space and more attractive than the in
ground urn area currently used. He said they think there is an opportunity there. He said they have a couple of
options the City must consider as well. He said the first option is to continue to do what the city is doing. He
noted the second option is to try to sell the cemetery. He noted the third option is to consider a self-sustaining
operation. He said the board is recommending the City form a 501 c3 corporation to reduce the burden on
government and allow for tax deductible donations to be made to the corporation. He said they recommend the
City create an annuity trust to fund perpetual care. He said the board just wanted to make the Council aware of
this situation and ask that Council direct staff and the Board to continue its research and to come back in 120
days with details on a recommended plan. He noted at this point they have identified a problem without a
solution.
Eason said she certainly thinks this needs more study and said it is her opinion for the Board to go forward and
looking at all solutions to this issue. Eason asked about the 501 c3 issue and asked who would be doing the
fundraising activities and who would be the potential donors. She said she does not know who will be the target
population to ask for donations. Hesser said the most important aspect of the 501 c3 is to segregate the entity
for the purpose of the cemetery. He said the assets acquired over time would be used for the cemetery as
opposed to any other purpose. Garrett spoke about generous people around the community and noted the City
receives calls from families who want to donate to the cemetery for maintenance. She continued to speak about
how a 501 c3 would be beneficial. Hellmann asked and Garrett said the cemetery is about 20 acres and noted
there are about 800 lots available. Brandenburg said what we are charging here at the city is reasonable. Meigs
thanked Hesser for his work. Sattler asked if there is a state law that obligates the City to have a cemetery.
Hesser said he did not look into that in his research. There were many questions about the cemetery. Sattler
asked and Garrett said the City owns the land for the cemetery north of 29, but noted the City does not maintain
it. Sattler spoke about how this is putting a burden on city staff. Jonrowe said she agrees to the 120 days staff
and the Board requested before coming back with a full report. She said, given the historic nature of the
cemetery, she is not squeamish of it being a responsibility of the City. Mayor spoke about making sure that we
do not allow history to escape us. He said there are a large number of lots and grave sites that carry a lot of
history.
Motion by Hellmann, second by Meigs to direct the Parks Board and staff to pursue the options for the cemetery
and come back to Council after 120 days with a follow up report. Approved 5-0 (Hammerlun, Gonzalez
absent)
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C Presentation, Update and Discussion regarding the Rivery Conference Center -- Paul E. Brandenburg, City
Manager
Brandenburg reviewed the Summit at the Rivery Park project for the Council. He said that the project got started
in 2007 and noted, due to the economic downturn, the project was delayed. He spoke about how this will be an
economic engine for the City and the County. He spoke about how there is a buzz in Georgetown now regarding
Economic Development. He noted tonight's purpose is to bring the Council up to speed on the status of the
project and to refresh the Council's memory on the project as well.
Novak introduced himself to the City Council. He spoke about the history of this project in Georgetown and how
it has evolved since 2007.
Gonzalez arrived at the dais at 5:01 PM
He said, in the Spring of 2008, Dan Clark was able to announce the partnership with GE Capital. He said the
banking crashes in October 2008 flipped everyone over on their ears. He spoke about their many efforts to raise
money for the project. He described how he got linked up with Hines on this project. He showed Hines the
property and asked them to consider the project. He said they fell in love with it. He noted they have continued
to work with Hines to move forward with this project. Novak said between February 2007 and October 2012, the
Novak Brothers have invested over $10 million and committed another $4 million to get the hotel deal
completed. There was much discussion. He spoke about the EB5 money and his trip to China. He spoke about
the Chinese government and why they have a surplus of money available for investment. He described why this
project is a good candidate to receive the EB5 money. He spoke about Hines and the projects the company has
done. He said this project is not dead and he said they are moving forward. He said he feels very good about
the value they will create. He spoke about frustration with timelines. He provided Council with the project
timeline and noted they hope to finish this by December of 2014. There were many comments. He provided
Council with some renderings of what Hines is going to do and what the finished project will look like.
Gonzalez thanked Novak for all of the effort and work that has been put into this project. He spoke about the
construction loan and EB5 money. He asked and Novak explained how those loans work. Jonrowe asked how
likely the EB5 deal will come to fruition. Novak said he thinks the EB5 group is oversubscribed and noted there
are more people than there are spots. Jonrowe asked and Novak spoke about when he thinks that will be
ready. Jonrowe asked and Novak confirmed there will be two connection points between the residential area
and the rest of the City. Novak spoke about their backup plan. Sattler thanked Novak for all of his hard work. He
noted in 1971-1973, he worked as a project engineer for the Galleria in Houston. He said Hines was true to his
word. He noted he is sure that same philosophy is there and thanked him for tying up with such a good person
and a good company to bring this project forward. He said he supports Novak and this project. Meigs thanked
Novak and said he is pulling for him. Hellmann said this was a very informative presentation that answered a lot
of questions. He said he appreciates him answering the timing questions. He said he thinks this is going to be a
great economic benefit to all of Georgetonwn. He said he like the fact that Hines has a commitment to
complete. Eason said she is happy to hear the up date and added, hopefully, it will not be too long before the
Council sees this dream come true.
Brandenburg concluded and said staff will keep the Council abreast on this project
Adjournment
The meeting was adjourned at 05:40 PM.
Approv
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Mayor Geor a Garver
City Council Meeting Minutes/
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ecretary Jessica Brettle