HomeMy WebLinkAboutAgenda CC 02.08.2011 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
FEBRUARY 8, 2011
The Georgetown City Council will meet on FEBRUARY 8, 2011 at 3:30 P.M. at Council Chambers at 101
E. 7th Street
If you need accommodations for a disability, please notify the city in advance.
Policy Development/Review Workshop -
A Overview of the City’s current outstanding and proposed debt obligations -- Micki Rundell,
Chief Financial Officer
B Presentation and discussion on construction delivery methods by David Bowlin with Broaddus &
Associates -- Terry Jones, Support Services Construction Manager and Micki Rundell, Chief Financial
Officer
C Presentation of City Council Video Production and Streaming Equipment and Services from SwagIt
Productions, LLC -- Mike Peters, Information Technology Director and Keith Hutchinson, Public
Information Officer
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.
D Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending litigation that has been filed against the City or contemplated
litigation and other matters on which the attorney has a duty to advise the City Council, including but not
limited to this week's agenda items
E Sec. 551.072: Deliberations about Real Property
- To discuss the value of land as it pertains to public safety facilities, GUS Satellite Service Center
- To discuss the value of land as it pertains to acquisition of right of way for Southwest Bypass
- Discussion concerning the proposed acquisition and value of real property from Richard W. Bunte and
wife, Virginia E. Bunte, in connection with the FM 971/N.E. Innerloop Intersection Improvements
Project -- Terri Calhoun, Real Estate Services Coordinator and Thomas R. Benz, P.E., Systems
Engineering Director
F Sec. 551.087: Deliberation Regarding Economic Development Negotiations
- Discussions or deliberations regarding commercial or financial information that the governmental body
has received from a business prospect that the City Council seeks to have locate, stay or expand in or near
the territory of the City and with which the City Council is conducting economic development
negotiations; or to deliberate the offer of a financial or other incentive to a business prospect that the City
Council seeks to have locate, stay or expand in or near the territory of the City and with which the City
Council is conducting economic development negotiations
- Project Lincoln
- To discuss incentives as it pertains to 200 South Austin Avenue, San Gabriel River Place Partners
- To discuss incentives as it pertains to Summit at the Rivery
- To discuss incentives as it pertains to Water Oaks Development
Adjournment
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 _________________, 2011, 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
February 8, 2011
SUBJECT:
Overview of the City’s current outstanding and proposed debt obligations -- Micki Rundell,
Chief Financial Officer
ITEM SUMMARY:
Each year in preparation of 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 2011.
This overview will include Revenue Bonds related to the City’s utilities, as well as, both self-supporting and
taxable general debt obligations.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell
ATTACHMENTS:
2011 Debt Overview Presentation
Cover Memo
Item # A
City of Georgetown
Debt Overview
February 8, 2011
Item # A
Debt Update
• Types of Debt
–General Obligation
–Certificates of Obligation
• Limited Tax Notes
–Leases
–Revenue Bonds
• Current City Debt Conditions
• Upcoming Debt Issues
Item # A
Types of Debt
Item # A
General Obligation Debt
• Tax Supported
– City issues 20 Year Bonds
– Can be extended to match life of capital
asset
• Building amortize 30 years
• Voter Approved
• City GO debt includes amounts
approved from November 2004 &
November 2008 bond elections
Item # A
Certificates of Obligation
• Allowed under State Law
– Considered “routine”
– Public Notice required
• Generally considered “Tax Supported”
• Majority - 20 year bonds
– Maturities match life of asset
• City issues self-supporting CO debt
– City saves on interest cost by issuing CO debt
rather than revenue bonds
• Repaid through fees or rates Item # A
Self-supporting CO Debt
• Interest savings by issuing CO debt
rather than revenue bonds can be
1% or greater
–GTEC - funded thru sales tax revenue
–Stormwater Drainage Utility - funded
thru user fees
–Airport - funded thru user fees
–Utility Funds – funded through rates
• Electric and/or Water/Sewer Item # A
Other Tax Supported Debt
• Limited Tax Notes
– Used in 2009 for Electric debt
• Cost savings > $75,000 annually
• Will be refinanced once proceeds have been
expended
• Certificates of Participation
– Usually 3 year notes
– Previously used to fund public safety vehicles
– City currently has no outstanding Certificates
of Participation
Item # A
GO/CO Debt Outstanding
As of December 31, 2010:
• $ 68,987,618- Tax Supported
– Includes:
• $14,570,000– 2004 Authorization – All issued
• $14,430,000– 2008 Authorization
– $34,025,000 authorized not issued - Roads
– $33,000,000 authorized not issued - Parks
• $26,217,382 - Self-supporting
– $15,474,689 - GTEC
– $3,690,008 - Stormwater
– $1,102,685 – Airport
– $5,950,000 – Electric LTN Item # A
CO Debt – Historical
Self-supported includes GTEC
Fiscal Year Tax Supported Self-Supported
1998/99 $16,378,878 $5,166,122
1999/00 $16,948,092 $5,056,908
2000/01 $21,170,615 $4,939,385
2001/02 $20,065,626 $4,734,374
2002/03 $19,092,455 $7,639,031
2003/04 $20,792,386 $16,663,851
2004/05 $28,140,892 $20,675,095
2005/06 $37,583,855 $21,111,145
2006/07 $52,326,112 $21,068,888
2007/08 $54,293,528 $20,661,472
2008/09 $57,412,475 $25,692,525
2009/10 $68,987,618 $26,217,382
Item # A
General Debt Capacity
• Allowable Levy -
$1.50 per $100
valuation
• Current levy -
$0.13635
• Percentage of
Allowable used –
9.1%
Item # A
Item # A
GO/CO Debt - Historical
Item # A
Revenue Bonds
• Funds the City’s utility infrastructure
– Issued on Electric/Water/Wastewater system
• Currently 20 year bond – level debt service
– Supported through system revenue
– “Coverage” required
• 1.35 times - bond covenants
• 1.5 times - City Fiscal & Budgetary Policy
• Outstanding balances:
– $24,882,157- Electric Fund
– $37,977,843- Water Services Fund (W/WW)
Item # A
Utility Revenue Bond Coverage
Item # A
Revenue Debt - Historical
Fiscal Year Water Electric
Services Services
1999/00 $22,663,452 $9,426,548
2000/01 $22,115,101 $9,959,899
2001/02 $20,658,178 $9,346,822
2002/03 $25,224,894 $9,273,620
2003/04 $28,845,175 $10,058,588
2004/05 $30,195,976 $9,868,036
2005/06 $28,076,208 $17,808,792
2006/07 $27,268,155 $23,801,845
2007/08 $32,655,050 $24,624,950
2008/09 $30,359,178 $23,280,822
2009/10 $37,977,843 $24,882,157
Item # A
Revenue Debt - Historical
Item # A
Current City Debt
Conditions
Item # A
Bond Ratings
• Rating Agencies review financial and
management conditions
• Determine “Credit Worthiness”
• Impacts cost of issuance and funds
• City’s Current Bond Rating:
–Moody’s
• A2 General Obligation & Revenue
–Standard & Poors
• AA+ General Obligation
• AA Revenue
Item # A
Population Growth
Item # A
Total Tax-Guaranteed Debt Per Capita
(Includes Self-supporting Debt)
Item # A
Total Tax Supported Debt per Capita
(Funded through Property Tax)
Item # A
Assessed Valuation
Item # A
Total Tax Supported Debt Compared to
General Sales Tax Revenue Growth
Item # A
City Assets Net of Related
Debt
Item # A
Debt to Assessed Valuation
Comparison
Item # A
Utility Customer Growth
Item # A
Outstanding Utility Debt per
Customer
Item # A
Total Electric Debt Compared
to Electric Assets
Item # A
Total Water Service Debt Compared
to Water Service Assets
Item # A
Upcoming Debt
Issues
Item # A
2011 Bond Issue
Total Net Proceeds = $7.27 M
• Tax Supported Bonds:
–CO Bonds - $4,170,000
• Security System
• Public Safety ISF vehicles/Fire vehicle Station 5
• Construction of Fire Station 5
• Land for Public Safety Facilities
• Madellia Hilliard improvements
– NET Tax Impacts - $0.0077based on 2010
values Item # A
2011 Bond Issue (con’t)
• Self-Supporting Bonds:
–CO Bonds - $3,100,000
• Williams Drive Widening
– Payment to Williamson County
– 1st five years debt service paid by GTEC
• Purchase land for west side GUS facility
– Funded through utility revenues and GTEC
sales taxes
Item # A
Next Steps Debt Issuance Process
• Council authorizes SPFI to proceed with
bond documents – Feb 8, 2011
• Council approved “NOTICE OF INTENT”
to issue CO Debt – March 8, 2011
– “Not to Exceed” amount finalized
• Offering documents finalized
• Rating Agency presentation
• April 12 - Bond Sale
– Council adopts Bond Ordinances
• April 25 - Bond Closing
– City receives bond proceeds Item # A
QUESTIONS?
Item # A
City of Georgetown, Texas
February 8, 2011
SUBJECT:
Presentation and discussion on construction delivery methods by David Bowlin with Broaddus &
Associates -- Terry Jones, Support Services Construction Manager and Micki Rundell, Chief Financial
Officer
ITEM SUMMARY:
Broaddus & Associates was founded in 2000 by James A. Broaddus, Ph.D., P.E. The firm provides
consulting and project management services on projects throughout the State of Texas and abroad. It was
created after Dr. Broaddus recognized a need for assistance among a large number of owners in managing
complex major capital construction programs. He has also served as Associate Director of the Construction
Industry Institute, a national research center dedicated to improving quality and cost effectiveness on
construction projects, and was appointed to the Board of Directors of the National Institute of Building
Sciences, an organization that serves as an interface between government and the private sector and focuses
on improving the building regulatory environment. Broaddus & Associates has previously conducted
construction delivery method training to Councilmembers in 2007.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell
Cover Memo
Item # B
City of Georgetown, Texas
February 8, 2011
SUBJECT:
Presentation of City Council Video Production and Streaming Equipment and Services from SwagIt
Productions, LLC -- Mike Peters, Information Technology Director and Keith Hutchinson, Public
Information Officer
ITEM SUMMARY:
Staff developed requirements and solicited proposals for a City Council video production and streaming
solution that will:
· Produce live video via Suddenlink Channel 10 and via the City website;
· Produce scheduled video for Suddenlink Channel 10 at other times
· Allow on-demand viewing of historical Council meeting content via the City website
Of the seven proposers that responded, three were selected for additional short list review. Those three
proposers included two proposals that involved in-house production of the Council meetings using local
equipment, and one proposal that involved outsourced (remote) production of each meeting. Staff determined
that the outsourced approach (from SwagIt Productions, LLC) was both cost effective and required very
minimal staff resources to operate, and as such was a superior solution to the in-house proposals.
SwagIt Productions, LLC has numerous City and County governments as clients, both within Texas and
elsewhere in the US and Canada. Several of their clients have existing integrations with the MuniAgenda
product used by Council.
Staff recommends approval of the SwagIt Productions, LLC solution.
FINANCIAL IMPACT:
Total first year project costs (both one-time and ongoing) are estimated as follows:
SwagIt Productions, LLC $52,900
Suddenlink $ 7,000
Total $59,900
This project was budgeted in account 570-5-0641-52-101 for $48,000. In addition, we expect savings from
termination of the current Matthew & Co. contract for the balance of the fiscal year to realize an additional
$7,500 in savings. The remaining $4,500 will be funded by the IT Internal Services Fund via account 570-5-
0641-52-330.
SUBMITTED BY:
Micki Rundell
ATTACHMENTS:
Presentation
Cover Memo
Item # C
City of Georgetown, Texas
February 8, 2011
SUBJECT:
Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending litigation that has been filed against the City or contemplated litigation
and other matters on which the attorney has a duty to advise the City Council, including but not limited to
this week's agenda items
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
RES
Cover Memo
Item # D
City of Georgetown, Texas
February 8, 2011
SUBJECT:
Sec. 551.072: Deliberations about Real Property
- To discuss the value of land as it pertains to public safety facilities, GUS Satellite Service Center
- To discuss the value of land as it pertains to acquisition of right of way for Southwest Bypass
- Discussion concerning the proposed acquisition and value of real property from Richard W. Bunte and
wife, Virginia E. Bunte, in connection with the FM 971/N.E. Innerloop Intersection Improvements Project --
Terri Calhoun, Real Estate Services Coordinator and Thomas R. Benz, P.E., Systems Engineering Director
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
RES
Cover Memo
Item # E
City of Georgetown, Texas
February 8, 2011
SUBJECT:
Sec. 551.087: Deliberation Regarding Economic Development Negotiations
- Discussions or deliberations regarding commercial or financial information that the governmental body has
received from a business prospect that the City Council seeks to have locate, stay or expand in or near the
territory of the City and with which the City Council is conducting economic development negotiations; or to
deliberate the offer of a financial or other incentive to a business prospect that the City Council seeks to have
locate, stay or expand in or near the territory of the City and with which the City Council is conducting
economic development negotiations
- Project Lincoln
- To discuss incentives as it pertains to 200 South Austin Avenue, San Gabriel River Place Partners
- To discuss incentives as it pertains to Summit at the Rivery
- To discuss incentives as it pertains to Water Oaks Development
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
RES
Cover Memo
Item # F