HomeMy WebLinkAboutAgenda_GGAF_03.07.2014Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
March 7, 2014 at 2:00 PM
at City Hall Main Floor Conference Room, located at 113 East 8th Street, 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 at least four
(4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for
additional information; TTY users route through Relay Texas at 711.
Regular Session
(This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose
authorized by the Open Meetings Act, Texas Government Code 551.)
A Review minutes from February 7, 2014 GGAF meeting - Submitted by: Danella Elliott, Executive
Assistant
B Review and discussion of the Comprehensive Annual Financial Report and results of the audit for Fiscal
Year Ended, September 30, 2013 - Submitted by: Micki Rundell, Chief Financial Officer, Susan Morgan,
CPA, Finance Director and Lisa Haines, Controller
C Consideration and possible action to approve the renewal of printer and Multi Function Printer (MFP)
maintenance contracts through TLC Office Systems for $66,960.96- Submitted by: James Davis, IT
Operations Manager
D Discussion and possible recommendation to renew a contract for utility bill printing and mailing services
with Dataprose,and approve funding at an annual cost of $220,000 - Submitted by: Leticia Zavala,
Customer Care Manager and Micki Rundell, Chief Financial Officer
E Discussion and possible recommendation to authorize payment of fees to Tyler Technologies for online
web account management and payment processing in the amount of $84,500 - Submitted by: Leticia
Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer
F Discussion and possible action to set meeting times and location for the monthly meetings of the General
Government and Finance Advisory Board - Submitted by: Steve Fought, GGAF Chair
G Discussion and possible action to recommend soliciting new independent auditors for the 2013/14 fiscal
year end audit - Submitted by: Micki Rundell, Chief Financial Officer
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times,
on the ______ day of __________________, 2014, at __________, and remained so posted for at least 72
continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Review minutes from February 7, 2014 GGAF meeting - Submitted by: Danella Elliott, Executive
Assistant
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Danella Elliott
ATTACHMENTS:
Description Type
2.7.14 Minutes Cover Memo
Minutes of the Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
February 7, 2014
The General Government and Finance Advisory Board met at 10:00 a.m. on Friday, February 7, 2014 in the
Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial Avenue, Georgetown, Texas.
MEMBERS PRESENT: Steve Fought, Chair, Tommy Gonzalez, Joe Pondrom, Keith Brainard
MEMBERS ABSENT: None
STAFF PRESENT: Paul Brandenburg, Micki Rundell, Laurie Brewer, Mark Thomas, Paul Pausewang, Stan
Hohman
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 8th 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 10:00 a.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
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.
Legislative Regular Agenda
A. Review minutes from the December 2, 2013 GGAF Meeting - Danella Elliott, Executive Assistant
The minutes were unanimously approved with this correction: Keith Brainard should have been listed as
“present”.
B. Discussion and possible action regarding the creation of a Tax Increment Reinvestment Zone along
Westinghouse Road - Micki Rundell, Chief Financial Officer and Mark Thomas, Economic Development
Director
Micki and Mark explained a little about the proposed creation of the TIRZ along Westinghouse Road, and gave
a presentation outlining the proposal. Staff is recommending that a Tax Increment Reinvestment Zone be
considered along Westinghouse road so that needed infrastructure including water, wastewater, electric and
roads can be upgraded or extended to that area. The area on either side of Westinghouse road from I-35 to 1460
is a prime development area but lacks key infrastructure so that growth can occur. The TIRZ would accelerate
development by removing barriers, including infrastructure costs. The property to be included in the proposed
TIRZ currently is not developed. As infrastructure is completed new development will occur including
destination retail, hotels, commercial, office, employment center, single family residential and some multi
family projects. The new property taxes generated from the new projects will be re-invested into the zone to pay
for the infrastructure.
They noted that if Williamson County participates at 50%, it will create additional revenue of $1.6M by 2020
(an additional $6.2M cumulative) and more easily fund road projects such as:
· Westinghouse Road (City will accept/repair/maintain),
· Rabbit Hill Road Extension north (allow alternate N-S route) and
· Blue Springs Extension (benefits)
If the Zone is created:
· the estimated increase in valuation within the zone could be as high as $700M by 2020
· City Revenues
o 100% property tax = $3M by 2020
$14M cumulative revenue
o Potential annual sales tax revenue = $75K conservatively projected by 2020
· Opportunities for job creation/expansion
o Combination retail/commercial/residential
If approved by Council, all elements should be finalized in May. The County will be considering this in April
as well.
Mark and Micki answered questions. Keith asked them to look at a variation of 25 years vs. 20 years. Micki
noted that there is a $46M project list now (public improvements/road, etc). The committee suggested that it
would be a good idea for Council to add a $50M cap.
Unanimously approved to proceed to City Council with the recommendation of adding a $50M cap.
C. Overview of the City’s current outstanding and proposed debt obligations – Micki Rundell, Chief
Financial Officer
Micki explained that each year, in preparation for the annual bond issuance process, staff prepares an overview
of the City’s current outstanding debt obligations, as well as, a preview of the upcoming bond issue that the
Council will consider in April 2014.
Micki gave an overview presentation, including Revenue Bonds related to the City’s utilities, as well as, both
self-supporting and taxable general debt obligations. Micki noted that we are not AAA rated because we own
our own electric utility. We are the only electric utility in the state with that high of a rating.
Keith Brainard said that he could not let this pass without saying “this is a striking chart”, referring to the
Historical CO chart. Joe Pondrom noted that it was not unusual for a growth city and said that you cannot have
growth without debt. Tommy Gonzalez noted that the debt was “voter approved”.
Keith asked that we show population comparisons as debts have increased and to look at the miles of
road/sidewalks for the past 10 years. It would be helpful to have an “overlay” showing key periods, i.e. opening
of the Library, Rec Center, etc. to accompany the current graph. Micki will prepare this information for the
Council presentation.
The Committee thanked Micki for the informative presentation.
Note: Mr. Brainard left the meeting after the debt presentation.
D. Consideration and possible action for the approval to purchase vehicles and equipment in the amount of
$338,677.67 – Stan Hohman, Service Center Supervisor and Micki Rundell, Chief Financial Officer
Paul Pausewang went over the list of vehicle and equipment to be purchased:
1. TORO Sand Pro through Buyboard in the amount of $24,660; budgeted amount is $20,000 for the Parks Department.
This is replacing 736-26 in the Fleet inventory. This unit will be sold at on-line auction this spring estimated amount
$1,500. The proceeds from the sale being recording in the Fleet ISF to offset future purchases.
2. Jacobsen LF570 fairway reel mower through Buyboard in the amount of $45,257; budgeted amount is $42,000 for the
Parks Department. This is replacing 736-42 in the Fleet inventory. This unit will be sold at on-line auction this spring
estimated amount $2,500. The proceeds from the sale being recording in the Fleet ISF to offset future purchases.
3. Two 628 Jacobsen TurfCat 60” flail mower through Buyboard in the total amount of $37,609 (each cost $18,804) for
the Parks Department. These units are replacing 736-46 in the Fleet inventory. This unit will be sold at on-line auction
this spring estimated amount $2,500. The proceeds from the sale being recording in the Fleet ISF to offset future
purchases.
4. Ford F-750 6 yard dump truck through Buyboard in the amount of $72,869; budgeted amount is $83,500 for the
Stormwater Department. This is a new addition to the Fleet inventory and is funded from bond funded equipment
account.
5. Ford F-750 6 yard dump truck through Buyboard in the amount of $72,869; budgeted amount is $85,000 for the Street
Department. This is a new addition to the Fleet inventory and is funded from construction equipment account.
6. Small SUV through Formerly Bid Process in the amount of $19,720; budgeted amount is $25,000 for the Facilities
Department. This is replacing 435-09 in the Fleet inventory. This unit will be held back for use in the IT Department.
7. ½ ton extended cab four wheel drive pickup through Formerly Bid Process in the amount of $23,562; budgeted
amount is $26,000 for Electric Department. This is replacing 106-02 in the Fleet inventory. This unit will be held back
to replace 106-36 which will be sold at on-line auction this spring estimated amount $1,500. The proceeds from sale
being recording in the Fleet ISF to offset future purchases.
8. ½ ton extended cab pickup through Formerly Bid Process in the amount of $21,232; budgeted amount is $28,932 for
Conservation Department. This is new addition to the Fleet inventory and is funded from Fleet ISF.
9. ½ ton extended cab pickup through Formerly Bid Process in the amount of $20,894; budgeted amount is $25,000 for
Engineering EAM Department. This is new addition to the Fleet inventory and is funded from Fleet ISF.
Out of the 10 vehicles & equipment requesting approval to purchase 6 of this are replacements and 4 new additions.
These vehicles were approved and budgeted for the 2013/14 in the Fleet ISF. Line items as follows:
· Items 1,2,3,6,7,8 & 9 are budgeted in account number 520-5-0351-52-700 Fleet ISF.
· Item 4 is budgeted in account number 520-5-0351-52-705 Bond Funded Equipment.
· Item 5 is budgeted in account number 520-5-0351-52-701 Bond Funded Construction Equipment.
Tommy asked if they could provide a vehicle master list of all of the vehicles we have. Paul will get this list
together and present it to the GGAF Committee and Council.
Unanimously approved.
E. Adjourn
Adjournment
The meeting was adjourned at 11:15 a.m.
_____________________________________
Board Chair
City of Georgetown, Texas
SUBJECT:
Review and discussion of the Comprehensive Annual Financial Report and results of the audit for Fiscal
Year Ended, September 30, 2013 - Submitted by: Micki Rundell, Chief Financial Officer, Susan Morgan,
CPA, Finance Director and Lisa Haines, Controller
ITEM SUMMARY:
The City's auditors and City staff will present the City's Comprehensive Annual Financial Report (CAFR)
for the Fiscal Year Ended September 30, 2013. Staff will present an overview of the results and CAFR
document.
The City's external auditor, Jerry McMillon, CPA, with the firm of CliftonlLarsonAllen, LLP, will also
discuss the results of the auditors' independent audit of the CAFR, compliance with auditing standards,
testing over internal controls and fraud risk assessment and conduct required communication under
auditing standards with the committee
The committee will be asked to take action to recommend that Council accept the September 30, 2013
CAFR at the March 11, 2014 regular council meeting.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell, Chief Financial Officer, Susan Morgan, CPA, Finance Director and Lisa Haines,
Controller
ATTACHMENTS:
Description Type
2013 CAFR Part 1 Cover Memo
2013 CAFR Notes Part 2 Cover Memo
2013 CAFR Part 3 Cover Memo
City of Georgetown, Texas
SUBJECT:
Consideration and possible action to approve the renewal of printer and Multi Function Printer (MFP)
maintenance contracts through TLC Office Systems for $66,960.96- Submitted by: James Davis, IT
Operations Manager
ITEM SUMMARY:
Staff requests renewal of merged maintenance contracts for network printers and Multi Function Printer
devices for a period of one year. Originally printer and MFP maintenance contracts were separated
between IT and Facilities. IT is now handling both maintenance contracts and merging them into a single
contract. This reduces administrative resources required to manage and maintain two separate contracts.
TLC Office Systems is a Texas Department of Information Resources (DIR) vendor. FINANCIAL
IMPACT
FINANCIAL IMPACT:
This renewal was budgeted as part of the FY 2014 budget process. Expenses will be recorded in account
570-5-0641-51-341.
SUBMITTED BY:
James Davis, IT Operations Manager
ATTACHMENTS:
Description Type
Printer Maintenance Quote Cover Memo
City of Georgetown, Texas
SUBJECT:
Discussion and possible recommendation to renew a contract for utility bill printing and mailing services
with Dataprose,and approve funding at an annual cost of $220,000 - Submitted by: Leticia Zavala,
Customer Care Manager and Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
The City has traditionally used an inter-local agreement with the City of Plano to benefit from volume
pricing and their Request for Proposal (RFP) process to award the utility bill printing and mailing service
contract. The City has had much success with the City of Plano's vendor, Dataprose, and would like to
continue utilizing their services. The City of Plano was able to secure a lower contract price due to their
monthly volume which exceeds 100,000 bills per month. Plano's new contract is effective February 2014
and the City is eligible for the new rates. The rates secured by Plano are less than the rates the City could
secure on their own without incurring the cost of preparing and releasing a RFP.
Individually, the City of Georgetown processes and mails 28,000 – 30,000 bills (including late notices)
per month. With the inclusion of the Chisholm Trail Special Utility District (CTSUD) customers, the
number will increase to between 36,000 – 38,000 bills (including late notices) per month.
Our goal is to continue to provide and market an email option for customer bill presentment. This option
was released in June 2012 and has grown to include 3,100 participants or 11% of our customer base. This
option allows us to mitigate the rising cost of postage by eliminating the postage for that segment of the
customer base.
FINANCIAL IMPACT:
With the new City of Plano pricing, we will pay around $0.50 per bill which is a decrease from last year's
cost of $0.53 per bill. The printing and insertion costs will average $0.10 and the postage costs will
average $0.40.
Eighty percent (80%) of the estimated annual contract cost of $220,000 is related to postage expense and
equates to $176,000. The total cost for bill printing and insertion is $44,000.
The total appropriation requested for this year is $220,000 and is calculated as follows: Customer Care:
(30,000 (bills/month) x .50 (rate) x 12 (months)) = $180,000 CTSUD: ( 8,000 (bills/month) x .50 (rate) x
10 (months)) = $ 40,000
This Customer Care expense of $180,000 is funded in the 2013-2014 Customer Care budget, under
Contracts and Leases GL#540-5-0321-51-310 in the Joint Services Fund. The CTSUD portion of $40,000
will be reimbursed by CTSUD.
SUBMITTED BY:
Leticia Zavala, Customer Care Manager
City of Georgetown, Texas
SUBJECT:
Discussion and possible recommendation to authorize payment of fees to Tyler Technologies for online
web account management and payment processing in the amount of $84,500 - Submitted by: Leticia
Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
Insite is the City's online account management and payment processing application that allows customers
to manage their utility and municipal court accounts via our website. Real time account data provides
customers with instant access to accurate billing and account information that is automatically integrated
with our existing Incode Customer Information System (CIS) software. Customers have the ability to
access and pay their bill online 24 hours a day, 365 days a year, giving them the ability to manage their
account on their own schedule. Benefits to the City include increased collection rates, improved
productivity, and increased efficiency through integrated automation with our existing software.
Customer Care processes approximately 26,800 total payments per month and web payments account for
15% of the total processed. We received approximately 4,000 payments per month through the website in
2013, up from about 3,700 per month the prior year. With the inclusion of the Chisholm Trail Special
Utility District (CTSUD) customers, the number will increase by 1,000 per month based on their payment
history. A basis of 5,000 payments per month will be used for the calculation.
The above cost includes web publishing fees, customer inquiry fees, and transaction fees, broken down in
the schedule below:
Web Publishing / Municipal Court $ 900
Customer Inquiry / Municipal Court $ 900
Web Publishing / Customer Care $ 600
Customer Inquiry / Customer Care $ 9,600
Transaction Fees / Customer Care $ 60,000 (4,000/month X 12 X $1.25) Transaction Fees / CTSUD $
12,500 (1,000/month X 10 X $1.25) $ 84,500
The Web Publishing fees and the Customer Inquiry fees are a fixed annual cost. The transaction fees are
$1.25 each and based on the number of payments taken through the website.
FINANCIAL IMPACT:
The total cost for this service is $84,500. The portion allocated to Customer Care is $72,000 and equates
to 0.5% of the total online utility revenue collected through the website in 2013. It is funded in the 2013-
2014 Customer Care budget line item #540-5-0338-51-340 in the Joint Services Fund. The CTSUD
portion of $12,500 will be reimbursed by CTSUD.
SUBMITTED BY:
Leticia Zavala, Customer Care Manager
City of Georgetown, Texas
SUBJECT:
Discussion and possible action to set meeting times and location for the monthly meetings of the General
Government and Finance Advisory Board - Submitted by: Steve Fought, GGAF Chair
ITEM SUMMARY:
The committee wanted to revisit the times/location for the monthly GGAF meetings to ensure it is
convenient for the current committee members.
FINANCIAL IMPACT:
SUBMITTED BY:
Steve Fought, GGAF Chair
City of Georgetown, Texas
SUBJECT:
Discussion and possible action to recommend soliciting new independent auditors for the 2013/14 fiscal
year end audit - Submitted by: Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
Staff recommends that the GGAF Subcommittee direct staff to solicit proposals from qualified firms of
certified public accountants to audit the City of Georgetown's financial statements for 3 years beginning
with the fiscal year ending September 30, 2014, with the option of auditing the City of Georgetown's
financial statements for up to two subsequent fiscal years. The expected timeline is as follows:
Request for qualifications issued March 12, 2014
Due date for proposals April 11, 2014 Presentations/interviews April 30, 2014 – regular GGAF meeting
Council selection of audit firm May 13, 2014
The RFQ's will follow best practices as outlined by the Government Finance Officers Association, and as
professional services, will be focused on best qualifications, not pricing.
The City of Georgetown currently contracts with CliftonLarsonAllen, LLP to provide independent
financial audit services for the City. Under the current contract and City Fiscal and Budgetary policy, the
City has the ability to renew one additional year. However, due to service issues over the past two fiscal
year audit periods, staff recommends that Council not renew and pursue other auditors.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell, Chief Financial Officer