HomeMy WebLinkAboutAgenda CC 10.12.2021 WorkshopN otice of M eeting of the
Governing B ody of the
C ity of Georgetown, Texas
O ctober 1 2, 2 02 1
The Georgetown City Council will meet on October 12, 2021 at 3:00 P M at City Council Chambers,
510 W 9th Street, Georgetown, TX 78626
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If you require assistance in participating at a public meeting due to a disability, as defined under the
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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 J r. Street, Georgetown, TX 78626 for additional
information; TTY users route through Relay Texas at 711.
The Geor getown City C ouncil is now mee ting in pe rson. A quor um of the
City C ouncil will be in atte ndanc e at the Geor getown City C ouncil
Chamber s locate d at 510 West 9th Str ee t, Ge orge town, TX 78626. It is
possible that one or mor e Counc il me mber s may attend via video
Confe re nc e using the Zoom clie nt.
F ac e masks ar e e nc our aged when attending in-per son. U se of profanity,
thre atening language , slander ous re mar ks or thre ats of har m ar e not
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mee ting.
If you have questions or ne ed assistanc e, ple ase contact the City
Se cr etar y’s offic e at c s@ge orge town.org or at 512-930-3651.
Policy De ve lopme nt/Re vie w Workshop -
A P resentation and discussion regarding the revised purchasing policy for purchases of Goods and
Services for $50,000.00 and under -- Edward O’Neal, Support Services Manager
B P resentation and discussion regarding historic tax programs -- Mayra Cantu, Assistant to the City
Manager and Britin Bostick, Downtown and Historic P lanner
Exe cutive Se ssion
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.
C Sec. 551.071: Consul tati on w i th Attorney
Advice from attorney about pending or contemplated litigation and other matters on which the
Page 1 of 52
attorney has a duty to advise the City Council, including agenda items
- Litigation Update
Sec. 551.086: Certai n P ubl i c P ow er Uti l i ti es: Competi ti ve M atters
- P urchased P ower Update
- IS D A Agreement with Morgan Stanley
Sec. 551.087: Del i berati on Regardi ng Economi c Devel opment Negoti ati ons
- P roject Flex P ower
- P roject Festival
Adjournme nt
Ce rtificate of Posting
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that
this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet,
G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on
the _____ day of _________________, 2021, at __________, and remained so pos ted for
at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting.
__________________________________
R obyn Dens more, C ity S ec retary
Page 2 of 52
City of Georgetown, Texas
City Council Workshop
O ctober 12, 2021
S UBJEC T:
P resentation and discussion regarding the revised purchasing policy for purchases of Goods and Services for $50,000.00
and under -- Edward O’Neal, Support Services Manager
I T EM S UMMARY:
The City Charter Article IV Section 6.11 Confers upon the City Manager, by the Council, general authority to contract
for expenditures that do not exceed the amount required by State competitive bidding/purchasing laws. The current
amount required by the state to participate in a competitive bidding is more than $50,000 of an estimated contract.
The City staff is proposing to change the requirements for solicitation of quotes to meet the change of the purchasing
environment for general Goods or Services due to increases in labor and material of suppliers and city staff. Reducing
steps in the purchasing process will allow departments to focus on providing their services to the public.
The current requirement in the fiscal and budgetary policy is to solicit three (3) quotes between $3,000 and $50,000. As
the City has embraced "Lean" process review throughout our work, Finance sought ways to make the purchasing process
more efficient for our customers in the departments. The proposed change would move the requirement of 3 quotes to
$25,000 and $50,000. One quote would be required for less than $25,000.
The General Government and Finance Advisory Board reviewed this proposal at their August 25, 2021 meeting. The
board’s feedback was to change the recommendation to require 2 quotes for purchases less than $25,000 instead of one
quote. We do not feel this change to the recommendation will improve efficiency for our customers in a meaningful way.
Staff seeks Council's feedback on the original recommendation of one quote for less than $25,000, or an alternative level
of less than $15,000 and one quote.
F I NANC I AL I MPAC T:
.
S UBMI T T ED BY:
Sharon P arker
AT TAC HMENT S :
Description
P resentation
Page 3 of 52
Purchasing Policy
Revisions to $50,000 and under policies
Page 4 of 52
Purpose
Establish a policy allowing the
City to operate more with the
“Speed of Business”!
1
Give departments more
flexibility on procurements of
goods and services in the
department’s area of
expertise!
2
Be good stewards of the
taxpayer’s time and resources
while dealing with the fast-
changing landscape of
material shortages and price
escalations!
3
Page 5 of 52
Background –
State Law
Chapter 252
Purchasing and
Contracting
Authority of
Municipalities
•Sec. 252.021 -Before a municipality enters a contract that
requires expenditure of more than $50,000, a city must:
•Comply with sealed bids or proposals, use reverse
auction procedure, or a method described by Chapter
2269.
•Sec. 252.0215 –Competitive Bidding in relation to HUBs
•Expenditure of more than $3000 but less than
$50,000, shall contact at least two historically
underutilized businesses on a rotating basis, based on
list by State Comptroller
•Sec. 252.0222 –General Exemptions
•There are exemptions to this chapter including :
Emergencies due to Health and Safety of residents,
Professional Services and utility services
Page 6 of 52
City Code of
Ordinances
Sec. 6.11
Purchase
Procedure
•The Council may, by ordinance, confer upon the
City Manager authority to contract without further
approval of the Council for all budgeted items not
exceeding the amount required by the State’s
competitive bidding/purchasing laws.
•All contracts for expenditures involving more than
the amounts required by the State’s competitive
bidding/purchasing laws must be approved by the
Council.
•The Council shall develop and adopt purchasing
policies to encourage and utilize local business and
service providers
Page 7 of 52
Mid-level
Purchases
Purchases that are not tied to a contract
Purchased goods or services that do not exceed
the amount which requires compliance with the
State competitive bidding/purchasing laws.
Purchases may be sole source
Purchased items may have quotes from a
Cooperative program
Page 8 of 52
Current Policy
$0 -$3000
Get One Quote –
Use P-card or
Requisition
$3000.01 -$50,000
Search for HUBS,
get two Quotes if
Available, if no
HUBS are available,
Solicit three written
quotes. Requisition
must be used.
Page 9 of 52
Percent of
PO issued
by Category Purchases
$3000 or
less, 70%
Purchases
$3000.01 to
$25K, 25%
Purchases
$25, 000.01
to $50K, 3%
Purchases
greater than
$50K, 2%
% of POs Issued
Purchases $3000 or less Purchases $3000.01 to $25K
Purchases $25, 000.01 to $50K Purchases greater than $50K
Page 10 of 52
Percent of
dollars
Purchased
by category
Purchases
$3000 or less,
8%
Purchases
$3000.01 to
$25K, 22%
Purchases $25,
000.01 to $50K, 11%
Purchases
greater than
$50K, 58%
% of Dollars
Purchases $3000 or less Purchases $3000.01 to $25K
Purchases $25, 000.01 to $50K Purchases greater than $50K
Page 11 of 52
Current
Challenges
for
Departments
Time consuming process
Delays in repairs
Increased cost of goods and services
Departments are Subject matter experts
and know where to go
Most procurements are one-time purchases
Page 12 of 52
Proposed Policy
Page 13 of 52
Mid-Level Purchases –
July 1 –Jun 30
2618
1021
86$2,721,234.65
$11,436,862.05
$19,854,601.29
0
500
1000
1500
2000
2500
3000
$0.00
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
Purchases $3000 or less Purchases $3000.01 to $50K Purchases greater than $50K
July 2020 –July 2021
# or orders $ of orders
Page 14 of 52
Recommended Policy -
$25K level
2618
915
106 86$2,721,234.65
$7,642,544.71
$3,794,317.34
$19,854,601.29
0
500
1000
1500
2000
2500
3000
$0.00
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
$3000 or less $3000.01 to $25K $25000.01 to $50K Greater than $50K
Orders from July 2020 –July 2021
# or orders $ of orders
Page 15 of 52
Summary Recommendation
•By changing the thresholds, the City will be able to;
•Complete projects quicker
•Save City staff time to process orders
•Save the city administrative cost
•Save opportunity cost by allowing City staff to focus on
additional city business
•Staff may still elect to solicit 3 or more quote if desired
Page 16 of 52
GGAF Board Feedback
•GGAF recommends using a two-quote requirement for purchases up to
$25,000, instead of one
•Staff believes this will not meaningfully reduce the amount of
administrative burden
•Staff reserves the right to request multiple quotes for newer product on
any purchase or participate in a formal solicitation
Page 17 of 52
Alternative Recommendation -
$15K level
2618
787 234 86$2,721,234.65
$5,123,924.96 $6,311,985.09
$19,854,601.29
0
500
1000
1500
2000
2500
3000
$0.00
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
$3000 or less $3000.01 - $15K $15,000.01 - $50K $50,000 plus
Orders from July 2020 to July 2021
PO Count $ value
Page 18 of 52
Questions or
Comments?
Page 19 of 52
City of Georgetown, Texas
City Council Workshop
O ctober 12, 2021
S UBJEC T:
P resentation and discussion regarding historic tax programs -- Mayra Cantu, Assistant to the City Manager and Britin
Bostick, Downtown and Historic P lanner
I T EM S UMMARY:
Following to the adoption of updates to the Historic District Design Guidelines in J uly the City Council has requested
information on possible options for a historic tax program. The presentation by staff includes programs implemented in
other Texas cities, a recap of recent preservation activity in Georgetown, examples of preservation projects and requested
feedback.
F I NANC I AL I MPAC T:
N/A
S UBMI T T ED BY:
Britin Bostick, Downtown & Historic P lanner
AT TAC HMENT S :
Description
S taff P resentation
Page 20 of 52
Historic Tax Programs
Mayra Cantu, Assistant to the City Manager & Britin Bostick, Downtown & Historic Planner
October 12, 2021
Page 21 of 52
Overview
•Background
•Program Goals
•What are other cities doing?
•Georgetown Preservation Activity
•Program Example Impacts
•Feedback Requested
Page 22 of 52
Background
Page 23 of 52
HISTORY OF ENCOURAGING HISTORIC
PRESERVATION
28 Aug. 2001
Downtown Overlay District
established
13 Apr. 2004
Old Town Overlay District
established
2018
Discussed historic preservation
and the City's role
2019
Preservation of high priority
historic resources
2021
Council Goals
Page 24 of 52
What are other cities doing?
Page 25 of 52
Other Cities –Primary Program Types
Status based incentive –
property tax exemption based
on qualifying historic status
Project based incentive –
property tax exemption or
freeze related to restoration or
rehabilitation work meeting
specific qualifications
Combination of both
Page 26 of 52
Status Based Historic Tax Exemptions
Round Rock
•The partial tax exemption program for historically significant properties (approximately
80) was created in 1982. The program is administered jointly by the City of Round Rock
Planning Department and the Williamson Central Appraisal District (WCAD). Under this
program,property owners receive a 75% exemption of municipal property taxes.
•The program encourages owners of historic properties to use money saved on taxes
to provide regular maintenance and/or repair to their historic structures. The overall
benefit to Round Rock is the long-term preservation of the City’s historic resources.
Page 27 of 52
Project Based Historic Tax Exemptions
San Antonio Fort Worth Dallas
10-year freeze on city portion of
property taxes with 25%-35% of
improvement value rehab costs
10-year freeze on city portion of
property taxes with min. 20% of
improvement value rehab costs
Designated historic properties can
qualify for project-based property
tax exemptions
Requires approval by historic
commission and verification site
visit
Has been partnered with Habitat for
Humanity-funded projects
Requires approval by historic
commission and verification letter
Page 28 of 52
Tax Revenue Impact
City Historic
Districts
How many properties does
your city have that use this
credit?
What is the financial impact/loss in revenue from them having
this?
Fort Worth 14 6,190
$35,861,144 in property value was exempted
from City of Fort Worth taxes in FY20-21.
This equals a loss of $268,062 in tax revenue for
the City in FY20-21, and averages $1,540 in tax
savings per property.
San Antonio 32
40-50 properties added
annually that verify, 400-500
properties receiving 10-year
exemptions
Up to $2 Million annual cost to City, most property owners
receive $1,000-2,000 annual reduction in tax savings.
Page 29 of 52
•Apply for determination of eligibility
by the Landmark Commission
•Start rehabilitation work
•Apply for a letter of verification
after the rehabilitation is complete
•Apply directly to DCAD every year,
for the duration of Exemption
Dallas Criteria and Process
Page 30 of 52
Eligible Costs
Architectural and
engineering services if
directly related to the
eligible costs described
above
Carpentry
Demolition and cleanup
if directly related to the
eligible costs described
Electrical
Elevators determined to
be necessary to utilize
the building
Exterior doors Exterior brick veneers or
treatments
Facade items Flooring Foundation Gutter where necessary
for structural integrity Heating and cooling
Interior work that
becomes a permanent
part of the building that
will help preserve the
structure
Mechanical
Painting (exterior and
interior)Porch Plumbing
Rehabilitation of a
contributing structure
used for the required
parking
Roofing Security and/or fire
protection systems Sheetrocking
Siding Structural walls Structural subfloors Structural ceilings
Repair of termite
damage and termite
treatment
Windows
Other items deemed
necessary by the
Landmark Commission
that assist in preserving
of the historic structure
Page 31 of 52
Ineligible Costs
•Landscaping
•Legal and accounting fees
•Overhead
•Plumbing and electrical fixtures; provided, however, documented replacement of historic fixtures may be considered eligible
•Purchasing tools
•Repairs of construction equipment
•Supervisor payroll
•Taxes
•Any other items not directly related to the exterior appearance
Page 32 of 52
Combination Programs
Waxahachie New Braunfels
Historic properties and properties in historic
districts (approximately 150 properties)are eligible
for a 25%exemption of the City portion of the
appraised value.
Properties in historic landmark districts (4 districts
with approximately 207 properties) are eligible for a
20% reduction of City's assessed property taxes.
Eligible properties entitled to a reinvestment tax
incentive of up to 50% of the City portion of
the property tax bill for restorations that amount
to $1,250 or more.
Local landmarks are eligible for a tax incentive
when project is 10% of the value of the property. The
pre-rehabilitation assessed value is used for five years,
and in the fourth year may apply for a five-year
extension.Applicants provide proof of qualified
expenses to the HPO.
Page 33 of 52
Georgetown Preservation Activity
Page 34 of 52
1,654 Historic Structures Citywide
61
103
1
25
190
59
339
179
577
56
406
425
887
0 200 400 600 800 1000 1200 1400 1600 1800
Downtown
Old Town
Johnson House
Outside Overlays
Total
High Medium Low
Page 35 of 52
Residential Certificates of Appropriateness
Page 36 of 52
2021 Property Tax Exemptions*
*Data from WCAD
Residential
Properties
Average
Value Homestead Over 65 Disabled/
Disabled Vet
Citywide 25,374 $333,425 74.12%44.32%7.46%
Old Town 900 $370,332 61.78%26.56%3.56%
Page 37 of 52
Old Town Average Annual Change in Value (2017-21)*
*Data from WCAD Page 38 of 52
Example –Rehabilitation with Addition (Before) High
Priority
Page 39 of 52
Example –Rehabilitation (After) High Priority
•Rebuilt chimney
•Restored original windows
•New wood shingle roofPage 40 of 52
Example –Porch & Siding Replacement (Med. Priority)
1984 Photo •New porch columns & deck
•Asbestos siding replaced
•Historic window feature preserved
Page 41 of 52
Example –Rehabilitation Low Priority
•Remove vinyl siding
(non-historic material)
& replace with fiber
cement siding)
•Restore original
diamond-pane
casement windows.
•Repair and
replace deteriorated
wood trim.
Page 42 of 52
Program Example Impacts
Page 43 of 52
2022 Property Tax Average –Old Town Overlay
Taxing Unit Avg. Assessed
Property Value
2022 Tax Rate Estimated Tax
City of Georgetown $370,332 0.401 $1,485.03
Georgetown ISD $370,332 1.231 $4,558.79
Williamson County $370,332 0.440846 $1,632.59
Wmsn Co FM/RD -RFM $370,332 0.039359 $145.76
TOTAL 2.112205 $7,822.17
Page 44 of 52
Program Example –Status Exemption*
*Calculated using the WCAD tax estimator for 2021 tax rates
**Value includes WILCO, WILCO Road & Bridge, GISD and City of Georgetown Property Tax Rates for 2021
Assessment/Exemption Value Estimated Tax
Assessed Value -Total $370,332 $8,087.38**
Assessed Value -CoG $370,332 $1,547.99
25% Historic Exemption $387 $1,160.99
75% Historic Exemption $1,161 $386.99
Assessment/Exemption Value Estimated Tax
Assessed Value -Total $410,296 $8,611.25**
Assessed Value -CoG $410,296 $1,715.04
Homestead Exemption $20.90 $1,694.14
Over 65 Exemption $50.16 $1,643.98
25% Historic Exemption $428.76 $1,215.22
75% Historic Exemption $1,286.28 $357.70
Non-Homestead Residential Homestead Exempt Residential
Page 45 of 52
Program Example –Status Exemption*
*Calculated using the WCAD tax estimator for 2021 tax rates for a home with a value of $370,332
**Value includes WILCO, WILCO Road & Bridge, GISD and City of Georgetown Property Tax Rates for 2021
$8,087 $8,087
$7,700
$6,926
$6,200
$6,400
$6,600
$6,800
$7,000
$7,200
$7,400
$7,600
$7,800
$8,000
$8,200
25% Exemption - City Portion 75% Exemption - City Portion
Impact to Resident
2021 Taxes (County, City, School, Etc.)Projected Taxes with Exemption
Page 46 of 52
Status Program Example Costs*
*Calculated using the average assessed residential value for Old Town
High (Old Town)Medium (Old Town)Low (Old Town)All Old Town All Historic Structures
outside overlays High Priority Citywide
25%$39,861 $131,193 $157,122 $348,300 $243,423 $73,530
75%$119,583 $393,579 $471,366 $1,044,900 $730,269 $220,590
$3
9
,
8
6
1
$1
3
1
,
1
9
3
$1
5
7
,
1
2
2
$3
4
8
,
3
0
0
$2
4
3
,
4
2
3
$7
3
,
5
3
0
$1
1
9
,
5
8
3
$3
9
3
,
5
7
9
$4
7
1
,
3
6
6
$1
,
0
4
4
,
9
0
0
$7
3
0
,
2
6
9
$2
2
0
,
5
9
0
IMPACT TO GENERAL FUND
25%75%
Property Type Total
High (Old Town)103
Medium (Old Town)339
Low (Old Town)406
All Old Town 845
All historic structures outside overlays 629
High Priority Citywide 190
Page 47 of 52
Program Selection Matrix
Goal Tax Freeze Status-Based
Exemption
Project-Based
Exemption
Project-Based
Grant
Incentivize
Preservation/Rehabilitation
Projects
X X X X
Encourage Repair X X X X
Offset Maintenance Costs X X
Offset Rising Property Taxes
X
Page 48 of 52
Feedback Requested
Page 49 of 52
Program Goals
•What are the goals for the program?
•Is it to incentivize preservation?
•Is it to encourage home repair?
•Is it offset higher overall maintenance in historic homes?
•Is it to offset rising property taxes?
•Which homes are included in the scope?
•Are we applying to encourage new renovations and/or renovations that occurred in the
past?
Page 50 of 52
Feedback Requested
•What does a successful program look like?
•Who would benefit from the program?
•Is there a need to partner the program with other programs?
Page 51 of 52
Feedback Requested
•Is there additional information needed to give direction to staff?
•Is there a preferred program type or goal?
•Are there other options the Council would like staff to research and bring back
for consideration?
Page 52 of 52