HomeMy WebLinkAboutAgenda CC 02.13.2007Notice of Meeting of the
Governing Body of the
City of Georgetown, Texas
Tuesday, February 13, 2007
The Georgetown City Council will meet on Tuesday, February 13, 2007 at 06:00:00 PM at City Council
Chambers, at the northeast corner of Seventh and Main Streets, Georgetown, Texas.
If you need accommodations for a disability, please notify the city in advance.
An agenda packet, containing detailed information on the items listed below, is distributed to the Mayor,
Councilmembers, and the Georgetown Public Library no later than the Saturday preceding the council
meeting. The librarys copy is available for public review.
Please Note: This City Council Meeting will be video taped live without editing and shown on the
local cable channel.
Executive Session
Regular Session to convene and continue Executive Session, if necessary
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.
A Sec.551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise
the City Council, including agenda items
-Transamerican Underground vs. Arch Insurance Co., C. C. Carleton Industries, and Third Party Defendant the City of
Georgetown, Cause No. 06.121-C277, District Court of Williamson County, 277th Judicial District
- Henderson v. City of Georgetown and Bishop Gregory Aymond for the Dioceses of Austin , Cause No. A06CA082 SS;
United States District Court, Western District of Texas
- Stanford v. City of Georgetown , Cause No. 06-634-C26, filed in the 26th Judicial District of Williamson County, Texas
- Residual Partners LLC v. City of Georgetown, Cause No. 07-093-C26, in the 26 -Judicial District, Williamson County,
Texas.
- Mark Shelton v. Rodney Eric Wise, Shanna Elaine Shelly, David Earl Morgan, City of Georgetown , Cause No. A07 CA063
LY, In the United States District Court for the Western District of Texas, Austin Division
B Sec 551.072: Deliberations about Real Property
- Discussion and possible action concerning the acquisition of a 0.04 acre Clear Zone Easement and denial of access on
property owned by Threadgill Oil Co., Inc., located at 705 N. Austin Avenue, in connection with the proposed Texas
Department of Transportation/Austin Avenue Maintenance Project — Jim Briggs, Assistant City Manager for Utility Operations
and Patricia E. Cads, Brown & Cads, LLP, City Attorney
C Sec. 551.087: Deliberation Regarding Economic Development Negotiations
- Discussion and possible action regarding commercial or financial information that the governmental body has received from
a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the
governmental body and with which the governmental body is conducting economic development negotiations; and
deliberation of the offer of a financial or other incentive to a business prospect described above - Project Fortress
Regular Session - To begin no earlier than 06:00 PM
(Council may, at any time, recess the Regular Session to convene an Executive Session at the request of
the Mayor, a Councilmember, or the City Manager for any purpose authorized by the Open Meetings Act,
Texas Government Code Chapter 551.)
D Call to Order
E Pledge of Allegiance
F Comments from the dais
- Welcome to Audience and Opening Comments
- Review of procedure for addressing the City Council
G Announcements and Comments from City Manager
City Council Agenda/February 13, 2007
Page 1 of 4 Pages
H Public Wishing to Address Council
As of the deadline, there were no persons wishing to addess the Council on items not already listed on the agenda.
I Action from Executive Session
Statutory Consent Agenda
The Statutory Consent Agenda includes non -controversial and routine items that Council may act on with
one single vote. A councilmember may pull any item from the Consent Agenda in order that the council
discuss and act upon it individually as part of the Regular Agenda.
J Consideration and possible action to approve the minutes of the Council Workshop on Monday, January 22,
and the Council Meeting on Tuesday, January 22, 2007, and approve corrections to the minutes of November
14, 2006 — Sandra D. Lee, City Secretary
K Consideration and possible action to approve an award of bid for the furnishing and cleaning of employee
uniforms to UniFirst in the estimated annual amount of $33,064.00 -- Marsha Iwers, Purchasing Manager and
Micki Rundell, Director of Finance and Administration
L Consideration for the approval to purchase 800 Mhz radios from Motorola through the State of Texas QISV
contract in the amount of $30,750.00 — Terry Jones Support Services Manager and Micki Rundell, Director of
Finance & Administration
M Consideration and possible action to approve the purchase of ten additional AutoCite handheld computers
from Enforcement Technology, Inc. in the amount of $43,700, to be used by Code Enforcement and Police —
Cathy Leloux, Court Administrator and Micki Rundell, Director of Finance and Administration
N Consideration and possible action to approve a five-year renewal agreement for annual arbitrage rebate
services with First Southwest Asset Management, Inc. in the estimated amount of $27,500 per year -- Micki
Rundell, Director of Finance and Administration
O Consideration and possible action to accept the City's Quarterly Financial Report, which includes the
Investment Reports for the City of Georgetown, Georgetown Transportation Enhancement Corporation (GTEC),
and the Georgetown Economic Development Corporation (GEDCO) for the quarter ended December 31, 2006 —
Leticia Zavala, Controller and Micki Rundell, Director Finance & Administration
P Consideration and possible action to authorize the renewal of a lease by the Davidson Brothers of +21 acres of
the future Mankins Crossing Wastewater Treatment Plant Site for agricultural purposes — Jim Briggs, Assistant
City Manager for Utilities
Q Consideration and possible action to appoint Assistant City Manager, Tom Yantis, as Mayor Gary Nelon's proxy
for the Envision Central Texas Board of Directors and request for approval of annual contribution of $5,000 --
Mayor Gary Nelon
R Consideration and possible action regarding the recommendation by the Convention and Visitors Bureau Board
for the approval of an allocation of $2,000.00 in Hotel Occupancy Tax (HOT) funds to Fury and Flight
Basketball for help in the cost of promoting their tournaments, as well as providing hospitality for the attending
coaches and tournament volunteers — Shelly Hargrove, Tourism Director and Main Street Manager and Randy
Morrow, Director of Community Services
S Consideration and possible action for the award of bid to Contractor's Asphalt in the amount of $48,671.50 for
trail construction next to Spring Valley Road -- Kimberly Garrett, Parks and Recreation Director and Randy
Morrow, Director of Community Services
T Consideration and possible action to approve the declaration of used uniform jackets as surplus and
authorization for staff to donate to area fire departments — Anthony Lincoln, Fire Chief
U Consideration and possible action to authorize application for a training grant for $3,600.00 from the Texas
Commission on Fire Protection -- Clay Shell, Assistant Fire Chief and Anthony Lincoln, Fire Chief
Legislative Regular Agenda
Council will individually consider and possibly take action on any or all of the following items:
V Consideration and possible action to approve a conract with Williamson County in the amount of $60,000.00 to
City Council Agenda/February 13, 2007
Page 2 of 4 Pages
provide fire protection services — Anthony Lincoln — Fire Chief
W Consideration and possible action to authorize a joint application with Williamson County Emergency Services
District No. 8 for fire apparatus acquisition from the Round Rock Volunteer Fire Department — Clay Shell,
Assistant Fire Chief and Anthony Lincoln, Fire Chief
X Consideration and possible action for the award of bid to H. Deck Construction Company in the amount of
$393,240 to light the Hike and Bike Trail from Rivery Park to Chandler Park and install emergency call boxes —
Kimberly Garrett, Parks and Recreation Director and Randy Morrow, Director of Community Services
Y Forwarded from the Georgetown Utility System (GUS) Board
Consideration and possible action to approve a resolution regarding the operation status of the Dove Springs
Wastewater Treatment Plant — Doug Smith, Councilmember District 3 and Chair of the GUS Board
Z Second Readings
1. Second Reading of an Ordinance Amending Chapter 16, ("Definitions ") and Section 11.03, ("Preservation of
Natural Features and Trees') , of the Unified Development Code to add new provisions relating to the
protection and preservation of Heritage Trees and to provide related definitions — Heather Brewer, Urban
Forester and Randy Morrow, Director of Community Services
2. Second Reading of an ordinance amending wastewater rates and structure to reflect the cost of
providing service -- Kathy Ragsdale, Utility Office Director and Micki Rundell, Director of Finance and
Administration
3. Second Reading of an ordinance Amending Chapters 2.48, 2.50, 2.64, 2.68, 2.69, 2.72, 2.104, 2.112, and
2.116 of the City of Georgetown Code of Ordinances Regarding "City Commissions and Boards" to
Change the Number of Persons on Certain City Commissions and Boards and to Change Certain
Provisions Relating to Appointment and Role of Alternates -- Paul E. Brandenburg, City Manager
4. Second Reading of an Ordinance Rezoning Lot 2, McDaniel Park Subdivision from C-3, General
Commercial, to PUD, Planned Unit Development with a base district of TH, Townhouse, to be known as
Holly Street Village, located between North College Street and North Holly Street — Bobby Ray, AICP,
Director of Planning and Development
AA First Readings
1. First reading of an ordinance adding new Chapter 12.05 to the Georgetown Code of Ordinances relating to "
Valet Parking" — Tom Yantis, Assistant City Manager
2. First Reading of an Ordinance amending Georgetown Code of Ordinances Section 2.36.010 relating to the
beginning and ending date of terms for City commissions, committees and boards; amending Section
2.36.070 relating to removal of members of City commissions, committees, and boards; and adding new
Section 2.36.080 relating to the applicability of Chapter 2.36 to Economic Development Corporations — Paul
E. Brandenburg, City Manager
3. First Reading of an Ordinance Annexing into the City 590.40 acres, more or less, in the L.S. Walters
Survey and Burrell Eaves Survey, for Madison Georgetown, located South of Ronald Reagan Boulevard
and west of SH 195 — Bobby Ray, AICP, Director Planning and Development and Edward G. Polasek,
AICP, Principal Planner
4. First Reading of an Ordinance Annexing into the City 17.232 acres, more or less, in the Burrell Eaves
Survey, for Sun City Neighborhood 61, located west of SH 195 -- Bobby Ray, AICP, Director Planning and
Development and Edward G. Polasek, AICP, Principal Planner
BB Update to the UDC Amendment process pertaining to the Mixed Use and Transit Oriented Design Ordinances
— Bobby Ray, AICP, Director of Planning and Development
CC Discussion and possible action to approve a resolution appointing the members of the Board of Directors of
the Williams Drive Gateway Tax Increment Reinvestment Zone (TIRZ), the Wolf Ranch TIRZ, and the Downtown
Georgetown TIRZ; and establishing an effective date — Tom Yantis, Assistant City Manager
DD Discussion and possible direction to staff regarding two-hour parking zone expansion survey results — Tom
Yantis, Assistant City Manager
EE Discussion and possible action to approve a resolution regarding the City of Georgetown City Sponsored
Event Guidelines — Paul E. Brandenburg, City Manager
City Council Agenda/February 13, 2007
Page 3 of 4 Pages
FF Consideration and possible action regarding the assignment of the ABG Development Agreement, Offsite Utility
Agreement, and the Triparty Agreement from ABG Development Ltd., to LAREDO WO, Ltd. — Patricia E. Cads,
City Attorney
GG Consideration and possible action to approve a resolution to order the General Election of May 12, 2007, to
elect a councilmember from each of Districts 3, 4, and 7, and to approve a contract with the Williamson County
Elections Administrator to conduct the election -- Sandra D. Lee, City Secretary
HH Consideration for authorizing the purchase of MuniAgenda Software from Municipal Code Corporation (MCC)
through the General Services Commission of Texas, as a Catalog Information Systems Vendor (CISV), in the
amount of $37,150.00 for production and archiving of meeting agendas and minutes for the Georgetown City
Council and City Council -appointed Boards and Commissions along with the purchase of a server in the
amount of $7,312.62 required to run this software program — Sandra D. Lee, City Secretary; Dennis
Schoenborn, Information Technology Director; and Paul Brandenburg, City Manager
II Consideration and possible action to approve two resolutions to amend the Articles of Incorporation and to
amend the Bylaws of the City of Georgetown 4A Corporation, Georgetown Economic Development
Corporation (GEDCO), relating to the date of commencement of each term and whether a City Councilmember
whose term on the Board ends in February, and whose Council seat is also the subject of an election in May,
can holdover as a Boardmember until the May election is finalized — Sandra D. Lee, City Secretary and Patricia
E. Cads, City Attorney
JJ Consideration and possible action to approve two resolutions to amend the Articles of Incorporation and to
amend the Bylaws of the City of Georgetown 4B Corporation, Georgetown Transportation Enhancement
Corporation (GTEC), relating to the date of commencement of each term and whether a City Councilmember
whose term on the Board ends in February, and whose Council seat is also the subject of an election in May,
can holdover as a Boardmember until the May election is finalized -- Sandra D. Lee, City Secretary and Patricia
E. Carls, City Attorney
KK Appointments
1. Consideration and possible action to reappoint Rachel McNutt as an 11th grade member and Spencer
Reagan as an 8th grade member of the Georgetown Youth Advisory Board -- Mayor Gary Nelon
2. Consideration and possible action to appoint Chris Damon to serve on the Comprehensive Plan Steering
Committee — Mayor Gary Nelon
2. Consideration and possible action to approve the appointment of new members and chair persons to
the Council -appointed boards and commissions as well as appointment of members to replace vacancies
for unexpired terms on certain boards and commissions — Mayor Gary Nelon
Certificate of Posting
I, Sandra Lee, 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 , 2007, at , and remained so posted for at
least 72 continuous hours preceding the scheduled time of said meeting.
Sandra Lee, City Secretary
City Council Agenda/February 13, 2007
Page 4 of 4 Pages
' Council Meeting Date: February 12, 2007 Item No.
EXECUTIVE SESSION
AGENDA ITEM COVER SHEET
SUBJECT:
Discussion and possible action concerning the acquisition of a 0.04 acre Clear Zone
Easement and denial of access on property owned by Threadgill Oil Co., Inc., located at 705
N. Austin Avenue, in connection with the proposed Texas Department of
Transportation/Austin Avenue Maintenance Project.
ITEM SUMMARY:
On January 9, 2007, Council authorized an offer to purchase the above-described property
interest from Threadgill Oil Co., Inc., in connection with the TxDOT Austin Avenue
Maintenance Project. Attached is Mr. Threadgill's January 10, 2007 response and Kent
Sick's email comments thereon.
ATTACHMENTS:
1. Michael R. Threadgill's 1/10/07 response to City's 12/22/06 offer
2. February 5, 2007 email from Kent. A. Sick re Threadgill counter-offer
Manager for Utility Operations
Patricia E. Carls, Brown & Carls, LLP
City Attorney
Council Meeting Date: February 12, 2007
EXECUTIVE SESSION
AGENDA ITEM COVER SHEET
Item No.
SUBJECT
Discussion and possible action concerning the acquisition of a 0.04 acre Clear Zone
Easement and denial of access on property owned by Threadgill Oil Co., Inc., located at 705
N. Austin Avenue, in connection with the proposed Texas Department of
Transportation/Austin Avenue Maintenance Project.
ITEM SUMMARY:
On January 9, 2007, Council authorized an offer to purchase the above-described property
interest from Threadgill Oil Co, Inc., in connection with the TxDOT Austin Avenue
Maintenance Project. Attached is Mr. Threadgill's January 10, 2007 response and Kent
Sick's email comments thereon.
ATTACHMENTS:
1. Michael R. Threadgill's 1/10/07 response to City's 12/22/06 offer
2. February 5, 2007 email from Kent. A. Sick re Threadgill counter-offer
Submitted By:
Jim Briggs, Assistant City
Manager for Utility Operations
Patricia E. Carls, Brown & Carls, LLP
City Attorney
Jar) 1007 03:27p Mike 6 Jeanie Threadgill 512-715-8611 p.1
MICHAEL R THREADGILL
P O BOX 1159
BURNET, TX 78611
1-10-07
Kent Sick
Law Offices
2705 Bee Caves Rd #240
Austin, TX 78746
FAX 512 478 1906
Dear Mr. Sick:
I have gone through the appraisal process that Chris Griesbach provided and as you know
I didn't agree with some of the assumptions.
First there is no way that this old building has any rental value based on what is left and
the access provided thru the canopy that is left. Therefore any evaluation I would
consider would require the complete demolition of the building and removal of tanks and
equipment. There is a lot of liability when the tanks are removed so I don't know how to
handle this.
I have redone the numbers Griesbach. provided with numbers that more closely resemble
actual expenses for the last 20 years. I adjusted all numbers plus I included demolition
costs of all the improvements,
Look at these numbers and see what you think.
Sincerely,
r
Michael R Threadgill
.Jan 1007 03:28p Mike 6 Jeanie Threadgill 512-715-6611 p.2
City of Oeortictown, TXDOT - AM 1243 to FM 2338
Property: 705 North AWtln Hiahwey
owner: 7hreoftill Oil COMPUY• I=.
Based on an analysis of the operating expense statements of other similar type gas
statlon/convenience store buildings, and on conversations with property owners of similar
type properties, it is my opinion that the landlords costs and/or expenses to operate the
subject property would Include management, legal/accounting, leasing commissions, and
miscellaneous expenses.
The estimated operating expenses which would be paid by the landlord are as follows:
OPERATING EXPENSES:
Management (4% - ') ......... j & :.................................................. $ •�-8Q6
LegaVAccounting42%? ............ ..........................
Leasing Commisslons449irj ......., u...................................I................
Mlsc•(2.................................... Cr9 56
TOTAL OPERATING EXPENSES PAID BY LANDLORD ........................... $
Now that we have estimated the income potential, the vacancy factor, and the operating
expenses we are now ready to estimate the net operating Income (NOI) for the subject
property.
ESTIMATION OF NET OPERATING INCOME (NOI)
705 North Austin Avenue:
5540
54C
5r C
�X-n G 0
TOTAL GROSS POTENTIAL INCOME.........................................................
.. $ 54,000
r 646
�G1............
Less Vacancy &Collection Loss o .......f?.......................................
O
Effective Gross income: ... 1. ....... I ................
......................................................
Less - OPERATING EXPENSES: lc
Management (40A--SGI)............................................................
Legal/Accounting {E%"............ Yv.................................................. ....
LeasingCommissions o ....••......................... ............................•.•.....
.......1441........................................................
.�g2, /06'0
$$
c,-
$te�aPF-992P66 �SVi�—
TOTAL OPERATING EXPENSES PAID BY LANDLORD ..........................
Id't �J1 7 6 �
NET OPERATING INCOME...............................................................................$
-446;
' OVERALL RATE SELECTION
' The overall capitalization rate (Cap Rate) was derived by the utilization of the remakes
rket
extraction technique and from a survey of real estate professionals. The app
experience with small gas station/convenience stores In the subjects market and in
22
Jan .10'07 03:28p Mike 6 Jeanie Thread6i11 512-715-8611 p.3
City of Georgetown: TOOT . RM %U3 to FM 2339
Properly: 705 North Auedn Highway
Owner. ntrudgill 011 Company. Inc.
surrounding markets has been that Capitalization rates range within th400 to 440o range
depending mostly on location, age, and condition. While the subject has a good location,
the limited size of the site and the age/condition of the improvements warrant an overall
rate on the upper end of the range for the subject property. Thus, the appraiser is of the
opinion that an overall rate of 10%, which is In the middle to upper end of the range, was
considered appropriate for the subject.
The capitalization rate Is applied to the subject's net operating Income (NOI) In year one
to arrive at the market value of the property via the income approach. Now that the gross
potential income, the vacancy rate, the operating expenses, and the overall capitalization
rate have all been estimated, we are now ready to utilize the net operating income (NOI)
and apply the overall capitalization rate to the estimated NOI to arrive at a final market
value conclusion via the Income approach. Dividing the estimated net operating income
by the overall capitalization rate of 10% Indicates a market value for the subject via the
Income Approach of:
�r45 td+t-h9�= $ 451,440
¢ 50 7V) �F CS = �-,5q,5;0
Thus, the market value conclus%n of the leased fee estate via the Income Approach has
been estimated to be $451,440.
VALUATION OF THE REMAINDER BEFORE THE ACQUISITION:
The remaining parcel before the acquisition is that portion of the larger parcel leftover after
the acquisition. To determine whether the remaining parcel has been damaged,
enhanced, or neither by the acquisition, the value of the remaining parcel must be
estimated both before and after the acquisition. The valuation process for the remaining
parcel before the acquisition is simply a mathematical procedure whereby the value of the
part acquired is subtracted from the value of the whole property. The following calculations
Illustrate the valuation process.
Value of Whole Property (As Improved) .. . ..... . .....................$ 4t44U-
Less - Value of Proposed Permanent Clear Zone Easement ... $ 43;1 131 1'7 c
Less - Special Compensation , + 10i -(.•P flTlPf. • • • , " $ 2D 00B 13 - s-00
Value of the Remainder (Before Acquisition - as improved) ...... . ......... $ '418,276
Remainder Before the Acquisition ................................. $ -41.8," .�,ri � (5-51`0
** The appraiser has concluded that a special compensation of $20,000 will need to
be paid to the owner to remove the underground gasoline storage tanks. If the use
of the pumps is to be suspended then the tanks will need to be removed.
23
Jan 10'07 03:29p Mike & Jeanie Threadgill 512-715-6611 p.4
City of Georgetown: T%DOT • RM 2243 to PM 2336
Property: 705 North Austin Highway
Owner: Threadglll Oil Company, Inc.
OVERALL RATE SELECTION
The overall capitalization rate (Cap Rate) was derived by the utilization of the market
extraction technique and from a survey of real estate professionals. The appraisers
experience with small convenience stores and/orsmall retail spaces In the subjects market
and In surrounding markets has been that Capitalization rates range within the 8% to 111%
range depending mostly on location, age, and condition. While the subject has a good
location, the limited size of the site and the poor quality and condition of the improvements
warrant an overall rate on the upper end of the range for the subject property. Thus, the
appraiser is of the opinion that an overall rate of 10%, which is in the middle to upper end
of the range, was considered appropriate for the subject.
The capitalization rate is applied to the subject's net operating income (NOI) in year one
to arrive at the market value of the property via the Income approach. Now that the gross
potential Income, the vacancy rate, the operating expenses, and the overall capitalization
rate have all been estimated, we are now ready to utilize the net operating income (NOI)
and apply the overall capitalization rate to the estimated NOI to arrive at a final market
value conclusion via the income approach. Dividing the estimated net operating income
by the overall capitalization rate of 10% indicates a market value for the subject via the
Income Approach of:
$ 15,048 /.10 = $ 150,480
Thus, the market value conclusion of the Remainder After the Taking via the Income
Approach has been estimated to be $150,480.
in order to discontinue the gasoline sales and to continue to operate the
convenience store on the property the owner will be required to remove the gasoline
tanks. Thus, the appraiser has included a special compensation for the tank
removal. The tank removal has been estimated to be $20,000 based on a bid
obtained from a third party bid which has been Included in the addenda of this report
for the, readers review.
VALUATION OF THE REMAINDER AFTER THE ACQUISITION:
Value of Whole Property (As Improved).........................................................$ 40 3`l� Sad'
Less - Value of Proposed Permanent Clear Zone Easement ........................$ 13,170
Less - Special Compensation for Tank Removal ,. �t u.,{...nt4Ll Ti.k".0 ....$ 20.11(]D f'3 :-L, 0
Value of the Remainder (Before Acquisition - as improved) ...........................$ 4JA-,ff70
1ft3y,6-3u
Remainder Before the Acquisition .... ..... ......................P...... ::.. ..... $ v8 �'r0 q&
"...�� �... r°Is^�......$ X50a8b r ��JZcC�
Remainder After the Acquisition vAtj. .............. L+ .•.••••••
Indicated Compensation for Denial of Access
Easement and Damages to the Remainder ................................................$ , 90
26
Jan 1'0'07 03:28p Mike d Jeanie Threadgi11 512-715-8611 P.5
City of Georgetown: TXDOT • RM 2243 to FM 2339
Property: 705 North Austin Highway
Owner: Threadgill Oil Company, Inc.
SUMMARY OF TOTAL COMPENSATION:
Just Compensation for Permanent Clear Zone Easement .......................$
13,170
Plus: Special Compensation for Tank
20,000
Plus: Indicated Compensation for Dental of Access Easement
and Damages to the Remainder.................................................................. 90 35c (�G
f
Total Compensation for Easements and Damages ...................................$
-WO'
RoundedTo; ..................................................................................................$ 301 0
27
"Kent Sick" To <tgc@georgetowntx.org>
<kent@kentsick.com> cc 'Trish Carls" <tcarls@brown-carls.com>, "Melissa
. ( 02/05/2007 10:12 AM Puntenney" <melissap@kentsick.com>
•. Please respond to bcc
<kent@kentsick.com>
Subject Threadgill counter-offer
History: This message has been.forjsrded.
* * * * * PRIVILEGED ATTORNEY-CLIENT COMMUNICATIONS * * * * *
Terri, Trish --
Good morning. I am writing you with my thoughts concerning Mike
Threadgill's counteroffer to the City.
On January 10 Mike Threadgill countered the City's offer of $301,000 with a
proposal of $499,300. The major areas of disagreement Threadgill has with
Chris Griesbach's appraisal are (a) expense deduction, (b) capitalization
rate and (c) building demolition costs. I have visited with Chris Griesbach
regarding Threadgill's proposal.
First, Chris' appraisal is based on the income approach to value -- Chris
essentially annualized the actual rent Threadgill now receives, deducted
market expenses (vacancy & collection (5$), management (4$),
legal/accounting (2$), leasing commissions (48), and others (29)), and
divided the net operating income ("NOI") by a capitalization rate of 10%.
' Griesbach's gross income based on the lease is $54,000 and his estimate of
expenses totals $8,856, leaving a NOI of $45,144. Threadgill does not
disagree with the gross income but says that his actual expenses only total
$3,240 such that the NOI should be $50,760. Threadgill further says that
Griesbach's cap rate of 10% is too high and that a more appropriate rate is
88. Thus, Greisbach's estimate of the value of the whole property is
$45,144/10% = $451,440; Threadgill's is $50,760/88 = $634,500.
From an appraisal standpoint, one must use market expenses rather than
actual expenses to assess the value of the property. Given this fact, I do
not believe that Griesbach's expense deductions are unreasonable.
Similarly, in my opinion Griesbach's cap rate of 106 is supportable, but a
panel of Special Commissioners could well decide that the rate could be
lower.
Threadgill also says that the building after the taking is not usable and
will have to be demolished, and that the costs of that demolition and tank
removal are $150,000. He notes that there is "a lot of liability"
associated with removing the tanks, and believes the demo costs should be
accordingly higher.
From my perspective, if there truly is a lot of liability associated with
removing the tanks then that fact affects the value of the property both
before and after the taking, such that it is a wash. Chris' opinion is that
the building is usable after the taking; I do not disagree although
Threadgill could well find an appraiser to echo his position.
In short, while varying the cap rate to settle the case might make some
sense, in my opinion there are no market-based reasons at this time to
entertain the other aspects of Threadgill's counter.
' The condemnation case has been filed and the Commissioners appointed. I am
trying to get a hearing set up before the end of this month to accommodate
the current construction schedule. Please let me know if you want me to
meet with Council in executive session to further explain Threadgill's
counter and the City's options. For now, I am proceeding forward with the
hearing unless I hear differently from you folks.
Please call me if you want more information or to explore any of this
further.
Sincerely,
Kent A. Sick
Council Meeting Date: February13, 2007 Item No
AGENDA ITEM COVER SHEET
SUBJECT:
Consideration and possible action to authorize the renewal of a lease by the Davidson
Brothers of ±21 acres of the future Mankins Crossing Wastewater Treatment Plant Site for
agricultural purposes.
ITEM SUMMARY:
On February 24, 2004, the City entered into a lease with the Davidson Brothers of
approximately 21.0 acres of land out of the 33.16 -acre tract the City purchased in 2003 for
the future Mankins Crossing Wastewater Treatment Plant. The lease provides the City
with the benefit of regular maintenance of the property and an annual lease payment in the
amount of $210.00. The lease expired on August 31, 2006 without either party addressing
its expiration. Attached is the Davidsons' February 1, 2007 request for renewal of the lease.
SPECIAL CONSIDERATIONS:
None
GUS BOARD RECOMMENDATION:
n/a
STAFF RECOMMENDATION:
Staff recommends Council approval.
FINANCIAL IMPACT:
Revenue of $210.00 per year.
COMMENTS
NONE
ATTACHMENTS:
(1) Davidson Brothers February 1, 2007 request for lease renewal; and
(2) Proposed renewal lease.
Submitted By:
A,s'sistan4'CiV Manager
Utility Operations
ogre Cis C'-)
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THE STATE OF TEXAS
COUNTY OF WILLIAMSON 6 AGRICULTURAL LEASE AGREEMENT
CITY OF GEORGETOWN
THIS LEASE is made on this the day of February 2007, by and between the CITY
OF GEORGETOWN, a Texas home -rule municipal corporation ("LESSOR"), and Davidson
Brothers Farm ("LESSEE'). The parties for and in consideration of the agreements herein set forth
to be kept and performed by them respectively have agreed to and do hereby agree together as
follows:
A. LEASE AGREEMENT. LESSOR has and by these presents does lease unto LESSEE,
for the purpose of cultivating hay the following described real property to wit:
Being 21.0 acres of land, more or less, situated in the John F. Ferguson Survey,
Abstract No. 231, in Williamson County, Texas, being a part of a 33.16 acre tract
described in a deed to the City of Georgetown recorded in Document No.
2004004043, Official Records of Williamson County, Texas (the "Premises').
B. TERM OF LEASE. The initial term of the Lease shall be for a period of one (1) year,
commencing September 1, 2006 and ending on August 31, 2007. LESSEE may request a renewal
and/or extension of the Lease in writing to the Assistant City Manager for Utility Operations
("ACMUO') at least thirty (30) days prior to the expiration of this Lease. Upon approval by the
City Council of the City of Georgetown, the Lease shall continue under the same terms and
conditions.
C. CONSIDERATION. In exchange for use of the Premises for the purposes stated
herein, LESSEE shall pay to LESSOR the sum of TEN AND NO/100 DOLLARS ($10.00) per
acre, or a total of TWO HUNDRED TEN AND NO/100 DOLLARS ($210.00) annually upon
renewal or extension of this Lease.
D. FEDERAL, STATE AND LOCAL LAWS. This Lease Agreement is hereby made
subject to compliance with any Federal, State or Local law regarding the use of leased property.
E. CONDITION AND MAINTENANCE OF PREMISES. LESSEE has inspected the
Premises and accepts the Premises in its existing condition as of the date of the date of execution of
this Lease. LESSEE agrees to maintain leased premises in an environmentally safe condition and to
keep it free from any hazardous conditions or conditions which may constitute a nuisance.
In the use, maintenance, repair, and policing of said premises adjoining public areas and
places, LESSEE shall not act to disturb or offend any adjacent property owner.
Davidson Brothers Farm Agricultural Lease
(Future Mankins Crossing WWTP site)
Page 1 of 2
' F. TERMINATION. This Lease shall terminate upon expiration of the lease term, unless
renewed or extended as outlined above or, if at any time during the term of this Lease, LESSEE
shall be in default of the performance of any of the agreements contained herein, after notice thereof
in writing has been given by LESSOR to LESSEE. Either party may terminate this lease for any
reason upon one hundred twenty (120) days written notice thereof to the other party.
G. RELEASE OF LIABILITY. LESSEE agrees to release LESSOR from any and all
liability from any accident, incident, injury or death or damages arising from this Lease.
H. NOTICES. Notices to the parties herein may be served by mailing a certified copy,
return receipt requested, to the following addresses:
LESSOR:
Jim Briggs, Assistant City Manager
for Utility Operations
City of Georgetown
P.O. Box 409
Georgetown, TX 78627
LESSEE:
James A. Davidson, Jr.
481 CR 106
Georgetown, TX 78626
Either party may from time to time, upon written notice to the other party, change the
address to which notices by mail shall be sent.
SIGNED this the day of
LESSOR:
CITY OF GEORGETOWN
By:
Gary Nelon, Mayor
Davidson Brothers Farm Agricultural Lease
(Future Mankins Crossing WWTP site)
Page 2 of 2
2007.
LESSEE:
DAVIDSON BROTHERS FARM
By:
James A. ("Buster) Davidson, Jr.
Council Meeting Date: February 13, 2007 Item No. !
AGENDA ITEM COVER SHEET
SUBTECT:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS
REGARDING THE OPERATION STATUS OF THE DOVE SPRINGS WASTEWATER
TREATMENT PLANT.
ITEM SUMMARY:
As a result of the appearance of wall seepage through cracks in the Aeration basin of the Dove
Springs Unit I structure soon after it was placed into service, the City engaged the services of
experts to evaluate the cause of the cracks. Annual inspections of aeration basin exterior wall
have been conducted by Steger & Bizzell Engineering as part of a stipulated agreement.
When the Dove Springs Unit II structure became operational in 2006, the Phase I structure was
drained to allow the first inspection of the aeration basin interior on September 6, 2006. The
results of the inspection indicate that the aeration basin wall and floor show no additional signs
of degradation or premature failure.
The City and its contract plant operator, Brazos River Authority, will continue to operate the
Phase I structure in accordance with the operating recommendations developed by the City's
consultant, Dr. Richard Furlong, P.E., in August 2002.
SPECIAL CONSIDERATIONS:
NONE
FINANCIAL IMPACT:
NONE
NONE
ATTACHMENTS:
1. Resolution
Submitted By:
Doug Smith
Council Member - District 3
I 1 DF -91 Rol I143ze a"
RESOLUTION BY THE CITY OF GEORGETOWN, TEXAS
("CITY") REGARDING THE OPERATION OF THE DOVE
SPRINGS WASTEWATER TREATMENT PLANT,MAHING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, a regular meeting of the City Council of the City of Georgetown,
Texas (the "City Council") was held on February 13, 2007, notice of this regular meeting
was properly posted and a quorum of the City Council was present during the meeting;
and
WHEREAS, a regular meeting of the Georgetown Utility Systems Advisory Board
(the "GUS Advisory Board") was held on January 16, 2006, notice of this regular meeting
was properly posted and a quorum of the GUS Advisory Board was present during the
meeting; and
WHEREAS, after the initial Dove Springs 1.24 MGD unit was commissioned into
service in October 1993, it was not possible to take the unit out of service to conduct an
internal and thorough inspection until construction of the second unit completion in 2006;
and
WHEREAS, the inspection was completed, results reviewed and confirmed in
November 2006 indicating that the plant could be properly operated within standard
operating specifications for typically constructed units.
WHEREAS, at the meeting, the GUS Advisory Board considered a report by the
City Staff regarding the results of the inspection of the Dove Springs Wastewater
Treatment plant conducted by Perry Steger, P.E. of Steger & Bizzell Engineering; and
WHEREAS, the GUS Advisory Board was advised that the Dove Springs
Wastewater Treatment Plant will operate properly with normal maintenance and useful
life following the prescribed procedures of Dr. Richard Furlong, P.E.; and
WHEREAS, at the meeting, the City Council considered the results of the final
inspection of the Dove Springs Wastewater Treatment plant conducted by Perry Steger,
P.E. of Steger & Bizzell Engineering and the recommendations of the GUS Advisory
Board; and
WHEREAS, the City Council has determined that the Dove Springs Wastewater
Plant initial unit will provide normal useful life and operations without further concern for
structural integrity while operated as prescribed by its professional experts, operations
staff and original design consultants;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE
CITY OF GEORGETOWN, TEXAS THAT:
Section 1. The facts and recitations contained in the preamble of this
resolution are hereby found and declared to be true and correct, and are incorporated by
reference herein and expressly made a part hereof, as if copied verbatim. The City
Council hereby finds that this resolution implements the Utility Policy Statement 11.00 of
the Century Plan - Policy Plan Element, which states: "City owned, sponsored or
managed utilities are competitively priced and provide safe, adequate and reliable
services to all customers." and further finds that the adoption of this resolution is not
inconsistent or in conflict with any other Century Plan Policies, as required by Section
2.03 of the Administrative Chapter of the Policy Plan.
Section 2. That the findings set out in the preamble are in all things hereby
approved.
Section 3. The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 4. This resolution shall become effective from and after its passage.
RESOLVED this day of , 2007.
ATTEST: THE CITY OF GEORGETOWN:
Sandra Lee, City Secretary
APPROVED AS TO FORM:
Patricia E. Carls
BROWN & CARLS, LLP, City Attorney
Gary Nelon, Mayor