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HomeMy WebLinkAboutMinutes_GGAF_11.19.2015Minutes of the Meeting of the GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF) City of Georgetown, Texas November 19, 2015 The General Government and Finance Advisory Board met at 3:30 p.m. on Thursday, November 19, 2015 in the Georgetown Communications and Technology Conference Room, located at 510 West 9'h Street, Georgetown, Texas MEMBERS PRESENT: Keith Brainard, Chair, Tommy Gonzalez, John Hesser, Thomas Bonham, Ralph Mason MEMBERS ABSENT: None STAFF/OTHERS PRESENT: David Morgan, Laurie Brewer, Trina Bickford, Kimberly Garrett, Trish Long, Eric Nuner, Paul Diaz, Robyn Densmore, Chris Foster, Lisa Haines, Tadd Phillips, Stan Hohman, Ed Polasek, Jack Daly, Eric Johnson A copy of these minutes, containing detailed information on the items listed below will be available in the Finance and Administration Office, located at 113 East 8'h Street, Georgetown, TX and can be found online at http://agendas.georgetown.org/ Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session that follows. Regular Session — Called to order at 3:30 p.m. The GGAF Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the Chair of the GGAF Committee for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551.) Public Wishing to Address Council On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the start of the meeting. You will be called forward to speak when the Board considers that item. On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to address and their name. The Board Liaison can be reached at 512-930-3676 or by email at danella.elliott@georgetown.org Legislative Regular Agenda The Board will individually consider and possibly take action on any or all of the following items: Keith Brainard, Chair, called to meeting to order at 3:30 p.m. A. Review minutes from the September 23, 2015 GGAF meeting — Danella Elliott, Executive Assistant Motion by Gonzalez; seconded by Mason. Unanimously approved. Statutory Consent Agenda The Statutory Consent Agenda includes non -controversial and routine items that Board may act on with one single vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it individually as part of the Regular Agenda. B. Consideration and possible recommendation of routine purchases and contracts— Laurie Brewer, Assistant City Manager 1. Consideration and possible action to approve the annual contract for the City of Georgetown's access control and security technician to be provided by Convergint Technologies, the City's current security, video surveillance, and access control provider, in the amount of $81,700.00 — Trish Long, Facilities Superintendent and Eric Nuner, Assistant Parks and Recreation Director No discussion on this item. 2. Consideration and possible approval of the contract for Laserfiche Rio Upgrade — Robyn Densmore, Records Coordinator and Chris Bryce, IT Director No discussion on this item. 3. Consideration and possible action for the approval to purchase vehicles and equipment in the amount of $1,599,313.10 — Stan Hohman, Fleet Maintenance Supervisor Stan Hohman answered questions on the number of vehicles we now have, where the replacements were going and funding sources. Also discussed was how the CVB van will be used, and what had been done in the past. Hohman answered that the previously borrowed it from the VSC. The new van is funded from HOT taxes and will also be used to take conference planners/organizers on tours, as well as, weekly new employee orientation tours. It will also be used to haul supplies/people at other times, including during Home and Garden Shows. Gonzales suggested looking at future maintenance costs to ensure justification of these costs, and monitor growth well. Motion by Gonzales; seconded by Bonham. Unanimously approved. C. Consideration and possible action to approve a Resolution authorizing staff to conduct business with Comerica Bank, N.A. and to appoint "Representatives of the Depositor" — Laurie Brewer, Assistant City Manager and Lisa Haines, Controller Lisa Haines explained that this resolution authorizes the following employees to be Representatives of the Depositor and is hereby authorized to enter into letters of credit (LOC) for the purpose of fulfilling the collateral requirements of our contracts with JPMorgan Venture Energy Corporation (JPMVEC) and Electric Reliability Council of Texas (ERCOT). Representatives of the Depositor: Laurie Brewer, Assistant City Manager Lisa Haines, Controller The City currently has contracts with both JPMVEC and ERCOT for whole sale energy and congestion rights, respectively. Both contracts have collateral requirements. Our contracts with JPMVEC were acquired back in 2012 and require us to post collateral to guarantee that the City will pay on the contracts and not walk away from them in the event that they became obsolete. Our contracts are from 2016 through 2021 and represent approximately $100 million of purchased power. ERCOT is the clearing house for all of our congestion rights hedges. They require us to post collateral that would cover the maximum charge we could see in the event that we won all of our bids at our bid price. ERCOT requires the collateral to prevent any market participant from entering a bid in an amount that they would be unable to pay. The LOC for JPMVEC will cost 110 bps per $1M (total LOC is for $15 million)or approximately $165,000 annually. For the month of October, JPMVEC was paying between 7 — 13 bps on the cash they are currently holding as collateral. If we invested this cash ourselves, we could earn as much as 90 bps on a 2 -year CD. The LOCs renew annually and the cost is factored into electric's purchased power. Gonzales suggested that they check into setting it up for an amount up to $18 million and to renew annually, as well as, to check on "up -front" charges versus changing the amount in the middle of the contract. Motion by Gonzales; seconded by Mason. Unanimously approved. D. Discussion and possible recommendation on a franchise agreement with ATMOS Energy. -Chris Foster— Resource Planning & Integration Manager and Jim Briggs — General Manager, Utilities Chris Foster explained that the Atmos' current Franchise Agreement was originally signed in 2000, was amended in 2008 for six (6) years and extended for one more year in 2014. This agreement allows Atmos to build infrastructure and serve customers' demand for natural gas in the City of Georgetown in return for annual payments based on the gross revenues of the utility generated in the City. The current payment is based on 5% of gross revenues as defined in Georgetown's code of ordinances, Chapter 14. The City and Atmos have not come to agreement on the terms of a new franchise agreement, but neither wishes to stop service at the end of the year. Both parties are requesting to extend the current franchise agreement for a period of five (5) years. The Council Item will reflect an ordinance change in the following format: "FIRST READING - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS AMENDING SECTION 14.04.010 OF THE CODE OF ORDINANCES OF THE CITY OF GEORGETOWN, TEXAS RELATING TO THE TERM OF THE FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF GEORGETOWN AND ATMOS ENERGY CORPORATION; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE." Atmos paid the City the amount of $564,986.11 in April, 2015. This amount covers franchise fees from April, 2015 through March, 2016 Staff requests that the Board recommend approval of a five (5) year extension (through February 15, 2020) of the current Franchise Agreement with Atmos to allow the City and Atmos to continue to negotiate new terms. Motion by Gonzales; seconded by Bonham. Unanimously approved. E. Presentation and discussion on Facilities and Parks Capital Asset Maintenance/Replacement Plans — Eric Nuner, Assistant Parks and Recreation Director, Kimberly Garrett, Parks and Recreation Director, Laurie Brewer, Assistant City Manager, and Trish Long, Facilities Superintendent Brainard noted that he asked for this update, as it came up in discussions regarding the Grace Heritage Church. Eric Nuner explained that Facilities is under Parks and Recreation now, and gave a presentation. Discussion followed and Tommy suggested that it might be possible to use reserve funds for some of the items discussed, but asked Eric to possibly bring this back to GGAF and Council in the future. Gonzales also told Eric to always present the budget for what is really needed, not what he thinks Council will approve. He doesn't want any items to fall short in areas that are in need of funding. He also asked that a summary of leased buildings be e-mailed to the GGAF Board. Brainard thanked Eric and his staff for the nice presentation. F. Discuss and Recommend Benefits Management Consultant Services for the City of Georgetown's Benefits and Wellness Program - Tadd Phillips, Human Resources Director Tadd Phillips informed the GGAF Board that the City's current Benefits Consultant Services agreement will end on January 31, 2016. A Request for Proposals (RFP) was conducted for these services in order to assure the City's partnership with the best available firm going forward. Staff seeks GGAF approval of the RFP Committee's recommended selection. The selection committee was composed of the following members: Trina Bickford, Tadd Phillips, Bert Witcher, Paul Diaz, Jennifer Bills, Laura Maloy, Niki Ross and Daniel Bilbrey. Six bids were initially submitted for this RFP. Through an initial analysis the bidders were narrowed down to four. On November 51 and 6th, the committee interviewed the four bidders in person. The interviewees included McGriff, Seibells & Williams; IPS Advisors; Gallagher; and Holmes Murphy. During that process the committee narrowed the candidates to two finalists: IPS Advisors and Gallagher. Phillips gave a PowerPoint presentation that gave an overview of the RFP process. Staff recommends that GGAF approve the award for the benefits management consultant services to Gallagher for an annual fee of $48,000. This fee matches current annual budget and is consistent with competitor fees. Motion by Gonzales; seconded by Mason. Unanimously approved. G. Discussion of City's Employee Deferred Compensation Program— Tadd Phillips, Human Resources Director Phillips gave a presentation and overview of the Deferred Compensation Program including: • Administrator Overview • Program Design & Offerings • Plan Performance • Fee Structure • Participation Levels Discussion included: The Board agreed that employees need to be more informed or educated on the Deferred Comp Plan. Brainard suggested making it a supplemental insurance choice. Gonzales suggested combining TMRS and the 457 into one, and Brainard said that it is not a good idea; it would affect our ability to attract and retain quality employees. He strongly encourages auto -enrollment during new employee orientation, and suggested that the City possibly contribute an amount, maybe $25/month towards this. Phillips concurs with this incentive and thinks this a good idea to help attract and retain good employees. Gonzales doesn't agree because he said they could take it out at any time. The Board thanked Mr. Phillips for his presentation. Motion by Gonzales; seconded by Bonham to adjourn. Unanimously approved. The meeting adjourned at 5:17 p.m. Adjournment The meeting was adjourned at 4:30 pm. f � c / Keith rainard Date Board Chair Thomas Bonham Date Board Secretary Danella Elliott Date Board Liaison