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08-29-2006 (City Council) Minutes Wylie City Council CITY OF WYLIE Minutes Special Called Meeting/Work Session Wylie City Council Tuesday, August 29, 2006 —6:00 pm Wylie Municipal Complex — Council Chambers 2000 Highway 78 North CALL TO ORDER Announce the presence of a Quorum. Mayor Mondy called the meeting to order at 6:00 p.m. Council Members present were: Mayor Pro Tern Carter Porter, Councilman Earl Newsom, Councilman Rick White, Councilman Merrill Young, Councilman Red Byboth and Councilman Eric Hogue. Staff present were: Acting City Manager, Mindy Manson; Finance Director, Larry Williamson; Police Chief, Jeff Butters; Interim Fire Chief, Noe Flores; Library Director, Racheal Orozco; Public Services Director, Mike Sferra; Building Inspection Director, Johnny Bray; WEDC Executive Director, Sam Satterwhite; Public Information Officer, Mark Witter; City Secretary, Carole Ehrlich, and various support staff. INVOCATION & PLEDGE OF ALLEGIANCE Councilman Byboth gave the Invocation and Councilman Young led the Pledge of Allegiance. CITIZENS COMMENTS ON NON-AGENDA ITEMS Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. No one was present to address Council during Citizen's Comments. Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 1 Mayor Mondy announced that the Executive Session and any possible action as a result of Executive Session regarding Items #1-#4, would be delayed to give the City Attorney time to arrive and asked Council to move to the Regular Agenda Item#1. EXECUTIVE SESSION Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: SS 551.071 Consultation with Attorney; Closed Meeting A governmental body may not conduct a private consultation with its attorney except: (1) When the governmental body seeks the advice of its attorney (A) Pending or contemplated litigation;or (B) A settlement offer;or (2) On a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter. 1. Discussion with the City Attorney regarding canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Mr. Roath severance in accordance with his Employment Agreement and any amendments thereto. 2. Discussion with the City Attorney regarding designating an interim city manager in the event Mark Roath is absent or disabled. 3. Discussion with the City Attorney regarding a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. 4. Discussion with the City Attorney regarding the resignation of Mark Roath as city manager. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. 1. Consider, and act upon, canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 2 2. Consider, and act upon, designating an interim city manager in the event Mark Roath is absent or disabled. 3. Consider, and act upon, approving a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. 4. Consider, and act upon,the resignation of Mark Roath as city manager. REGULAR AGENDA Public Hearings 1. Hold the Second Public Hearing on the proposed tax rate for fiscal year 2006-2007 and provide taxpayers an opportunity to express their views on the tax rate. At the end of the hearing, the City Council must set and announce the date, time, and place of the meeting at which it will vote on the final proposed tax rate. (L. Williamson, Finance Director) Staff Comments Finance Director Williamson addressed Council stating that in accordance with the "Truth in Taxation" laws of the State of Texas, on August 8, 2006, the City Council took a roll call vote on the proposed tax rate and scheduled two public hearings on the tax rate. The first public hearing was held on August 22, 2006. The second public hearing is scheduled for August 29, 2006. The notice of the two public hearings was published in the McKinney Courier-Gazette on August 14, 2006, and the Wylie News on August 16, 2006. The purpose of the second public hearing on August 29, 2006, is to give the taxpayers an additional opportunity to express their views on the tax rate. At the end of the hearing, the City Council must set and announce the date, time, and place of the meeting at which it will vote on the final proposed tax rate. Council Discussion Mayor Mondy asked Mr.Williamson what the current tax rate was. Mr. Williamson replied that the current tax rate was $.695. Mayor Mondy asked what was driving the rate to the proposed rate of $.715. Mr. Williamson explained that the increase was due to the bond propositions which were passed November 8, 2005 by the Wylie voters. He explained that the tax rate is scheduled to increase by $.02 cents each year. Councilman Byboth asked if the City was staying status quo for revenues and expenditures for the other funds. Mr.Williamson stated that was correct within a small margin. Public Hearing Mayor Mondv opened the Public Hearing at 6:04 p.m. asking anyone present wanting to speak on this item to come forward, state their name and address and limit their comments to three minutes. No one was present to address Council. Mayor Mondv closed the Public Hearing at 6:04 p.m. Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 3 Announcement of Date, Time, and Place of the Meeting for the Vote on the Final Proposed Tax Rate. Councilman Hogue made a motion, seconded by Mayor Pro Tern Porter to set the date of September 12, 2006, the time to be 6:00 p.m. and the place to be the Wylie Municipal Complex Council Chambers for the vote on the Final Proposed Tax Rate of $.715 for FY 2006-2007. A vote was taken and passed 7-0. 2. Hold a Public Hearing on the fiscal year 2006-2007 Proposed Budget. All interested persons shall be given an opportunity to be heard, either for or against any item on the proposed budget. At the end of the hearing, the City Council will schedule the time and place that the vote will be taken on the proposed budget. (L. Williamson, Finance Director) Public Hearing Mayor Mondy opened the Public Hearing at 6:05 p.m. asking anyone present wanting to speak on this item to come forward, state their name and address and limit their comments to three minutes. Steve Bullock residing at 2002 Stonecrest Trail, Wylie Texas addressed Council stating that he was confused with the Tax Notice published in the paper which showed an increase of 7%. Finance Director Larry Williamson addressed Mr. Bullock by explaining that the Notice in the paper reflected the percentage increase of appraised value from last year; due to the large amount of new construction. This brought revenues up by the 7% but the proposed tax rate is a $.02 cent increase. Mr. Bullock thanked Council and staff for their explanation. Mayor Mondy closed the Public Hearing at 6:07 p.m. Announcement of Date, Time, and Place of the Meeting for the Vote on the FY 2006-2007 Proposed Budget. Councilman Newsom made a motion, seconded by Councilman Byboth to set the date of September 12, 2006, the time to be 6:00 p.m. and the place to be the Wylie Municipal Complex Council Chambers for the vote on the Proposed Budget for FY 2006-2007. A vote was taken and passed 7-0. Staff Comments Acting City Manager Manson addressed Council asking for direction to staff regarding the changes presented tonight and revisions made at the July 25, 2006 Work Session and also the August 15, 2006 Work Session. She explained that each change was itemized for easy review. She asked if there was any direction other than the revisions presented, before staff moves forward. Mayor Mondy thanked Acting City Manager Manson and asked Council if there were any other comments or direction. Consensus of Council was to move forward with the proposed budget. General Business 3. (MOTION TO REMOVE FROM TABLE): Consider, and act upon, authorizing the Mayor to sign a Development Agreement between the City of Wylie and the Skorburg Company for a tract known as the Hood property or Alanis Crossing. (M. Manson, Assistant City Manager) Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 4 Staff Comments Acting City Manager Manson addressed Council stating that staff, the City Attorney and representatives from the Skorburg Company have been working on the Development Agreement for Alanis Crossing up and until the 11'h hour. She explained that the City Attorney had not had time to review the final revisions. She recommended that: Council could table the item to the September 12, 2006 Council Meeting, or direct staff to negotiate the contract and bring it back to Council at a later date. Council Action A motion was made by Councilman Young, seconded by Councilman Hogue to remove the Development Agreement for Alanis Crossing from the table and re-table the item to the September 12, 2006 Council Meeting so the City Attorney would have time to review the final proposed agreement. A vote was taken and passed 7-0. Mayor Mondv recessed for a short break at 6:11 p.m. City Attorney Richard Abernathy arrived at 6:19 p.m. Mayor Mondv convened into Executive Session at 6:20 p.m., describing exception, SS 551.071 Consultation with Attorney; closed meeting; and listed Items #1 —4. EXECUTIVE SESSION Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: SS 551.071 Consultation with Attorney; Closed Meeting A governmental body may not conduct a private consultation with its attorney except: (1) When the governmental body seeks the advise of its attorney (A) pending or contemplated litigation;or (B) a settlement offer;or (2) On a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter. 1. Discussion with the City Attorney regarding canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Mr. Roath severance in accordance with his Employment Agreement and any amendments thereto. 2. Discussion with the City Attorney regarding designating an interim city manager in the event Mark Roath is absent or disabled. 3. Discussion with the City Attorney regarding a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 5 4. Discussion with the City Attorney regarding the resignation of Mark Roath as city manager. Mayor Mondy reconvened into Open Session at 7:45 p.m. Mayor Mondy recessed Open Session for a short break. Mayor Mondy reconvened into Open Session at 7:55 p.m. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. 1. Consider, and act upon, canceling the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments thereto and terminating Mr. Roath's employment as city manager without cause by giving notice of such termination in accordance with the terms of the Employment Agreement, authorizing the Mayor or his designee to give such notice, and to pay Mr. Roath severance in accordance with his Employment Agreement and any amendments thereto. 2. Consider, and act upon, designating an interim city manager in the event Mark Roath is absent or disabled. 3. Consider, and act upon, approving a Severance Agreement and Release between Mark Roath and the City of Wylie, Texas and authorizing the Mayor to execute the same. 4. Consider, and act upon,the resignation of Mark Roath as city manager. City Attorney Comments City Attorney Richard Abernathy addressed Council stating that after the meeting last Tuesday, I learned the name of the attorney for Mr. Roath and contacted him on Wednesday morning and we began a series of negotiations which has culminated in a proposed Severance Agreement and Release, and his resignation; however there were some additional changes proposed by Mr. Roath's attorney, and received by me today at between 5:00 and 5:30 p.m. I have consulted with you regarding those changes. I believe that those changes can be resolved and a Severance Agreement and Release and a letter of resignation, probably accomplished, by the end of the week, if you want to consider it. It would require your acceptance which could be considered on next Tuesday (Special Called Meeting); that is the acceptance of the Severance Agreement and Release and the letter of resignation if in fact that occurs. Mr. Abernathy stated that both parties have worked in good faith in an effort to reach an understanding that is consistent with the Employment Agreement and will hopefully be a benefit to both parties. Mayor Mondy asked if the discussion covers only what was written in the employment agreement. Mr. Abernathy replied that it was not in its final form, but the payment that would be made was consistent with the employment agreement that Council worked on last Tuesday when Council met with Mr. Roath in Executive Session to evaluate him. If you are speaking of the monetary values, they are consistent with that. Minutes—August 29,2006 Special Called Meeting/Work Session Wylie City Council Page 6 Council Action Councilman Hogue stated that based on the advice and direction of our attorney I would like to make the following motions regarding Items 1-4. I make a motion to cancel the Employment Agreement dated July 19, 2004 between Mark Roath and the City of Wylie, Texas and any amendments of the Employment Agreement and his employment as City Manager of Wylie, Texas without cause giving Mr. Roath written notice of the cancellation and termination according to the Employment Agreement. I also move that the Mayor or his designee give Mr. Roath the written notice as soon as possible and the City of Wylie pay him severance in accordance with his Employment Agreement and any amendments to the Employment Agreement. I also move that the notice not be issued to Mr. Roath until the end of business on Friday September 1, 2006 to allow him to submit a written resignation letter and a signed Severance Agreement and Release that has been under negotiation between the attorneys for Mr. Roath and the City of Wylie, Texas. If the letter of resignation is not submitted and the Severance Agreement and Release is not signed by Mr. Roath and submitted to the City Secretary by the close of business on Friday, September 1, 2006, the notice to Mr. Roath shall be given and the City will proceed with the cancellation of the Employment Agreement and termination of Mr. Roath's employment per the Employment Agreement. A second was made by Mayor Pro Tern Porter to all portions of the motions. A vote was taken and passed 7-0. Mayor Mondv convened into Work Session at 8:00 p.m. WORKSESSION • (MOTION TO REMOVE FROM TABLE): Discussion, and possible direction, on 2006 Water and Wastewater Rate Study prepared by McLain Decision Support Systems. Acting City Manager Manson introduced Mr. Bob McLain representing McLain Decision Support Systems. Mr. Bob McLain representing McLain Decision Support Systems addressed Council stating that he had submitted, several days ago a written report and has tonight given Council a hand out to follow the presentation. He explained that for the year ending September 30, 2005 the City was in excellent financial condition. He stated that this year the utility fund would show a deficit if rates and expenditures stayed the same. He advised that in the very near future rates would need to be increased. He reviewed with Council the key planning assumptions which included: water growth at 907 meters per year; Wastewater growth at 1044 customers per year; a $6.5 million bond issue in 2007, and a $6.98 million bond issue in 2009. He proposed three scenarios to Council: 1. Don't raise rates until you absolutely have to; 2. Raise rates incrementally every year; and 3. Raise rates incrementally every other year. He demonstrated figures for each scenario which included Scenario 1 increasing rates over a ten year period by 18.50% or$10.60 based on winter gallons at 5,000 and summer gallons at 13,000 per residence. Scenario 2 using the same factors for usage showed a 16.25% change or $9.55, and Scenario 3 using the same factors for usage showed a 16.50% increase or $9.60. Mayor Mondy stated that he believed scenario #2 was the best option and was less expensive and increased gradually over Minutes—August 29,2006 Special Called Meeting/Work Session Wylie City Council Page 7 time. Mayor Mondy asked Mr. McLain which scenario he believed was best. Mr. McLain replied that he believed that scenario #2 was the best option for both the City and the utility customers because it was less expensive and it was always better to increase rates over time. Mayor Mondy asked what staff recommendations were. Finance Director Williamson addressed Council stating that he believed scenario #2 was the best; noting that it was important that the City raise the rates each year. He explained that the City's consumption in Muddy Creek has increased to 73% and as our use in Muddy Creek could increase even more, which means we will pay more of the debts, and the operations of Muddy Creek out of the water and sewer fund. Acting City Manager Manson explained that these scenarios did include increases from North Texas Municipal Water District which would allow for additional increases from NTMWD without additional pass through increases to the consumers. Mayor Mondy stated that Council was probably considering option #2. Acting City Manager Manson asked Council for direction regarding the stronger conservation rate design for residential irritation meters and seasonal conservation rate design for residential and irrigation meters. Mayor Mondy stated that consensus of Council was to consider Option #2. ADJOURNMENT With no further business before Council, a motion was made by Councilman Hogue, seconded by Councilman Newsom to adjourn at 8:20 p.m. Consensus of Council was to adjourn. .cr--- JI n Mdncj � Mayor Y Y ATTEST: .,. ,--- ,,,,,:„,,,,._ .,._‘` _,.. .... • ... SEAL _ .. , 4,,,„... ....... , .... ,s , Carole Ehrlich,city Secretary ����+i►►iii+��``�� Minutes—August 29, 2006 Special Called Meeting/Work Session Wylie City Council Page 8