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.
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Minutes—August 29, 2006
Special Called Meeting/Work Session
Wylie City Council
Page 8