The URL can be used to link to this page

12/16/2019-CC-Minutes-Work SessionCITY OF SANGER, TEXAS MINUTES: WORK SESSION CITY COUNCIL MEETING Monday, December 16, 2019 6:00 PM 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir; Mayor Pro Tem Bilyeu; Councilmember Marissa Barrett; Councilmember Dennis Dillon; Councilmember David Clark, Councilmember Allen Chick. COUNCIL MEMBERS ABSENT: None. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; Deputy City Secretary Jeriana Staton; Finance Director, Clayton Gray; City Engineer, Tracy LaPiene; Director of Public Works, Jim Berman; Director of Electric Utilities, Mike Prater. 1.Call Meeting to Order There being a full quorum present at the December 16, 2019 Work Session, the meeting was was called to order by Mayor Muir at 6:04 p.m. 2.Presentation and Discussion on Series 2017 Certificates of Obligation Staff Presentation and Discussion of Series 2017 CO Funds and Potential Additional Projects by Clayton Gray, Finance Director, Jim Berman, Public Works Director and Tracy LaPiene, City Engineer. Finance Director Clayton Gray provided a brief background noting whenever the City issues debt our official statement has a paragraph that lists the purpose that we are selling the certificates for. The purpose determines what types of expenditures we can make with those funds. The uses for the funds is limited to those items listed in the statement and the wording is usually done in broad categories and he gave an example, i.e, rehabilitation and expansion of the water and wastewater systems; streets drainage and improvements. The reason for the wording is to allow some flexibility if needed. When the funds are received we have 36 months to spend the proceeds. He provided a summary of the 2015 bonds and the 2017 bonds described uses allowed and expenditures and noted that it leaves 2.1 million of the 2017 bonds. Of the 2.1 million we have remaining on our contract with Alan Plummer $107,000 and remaining on our contract with Felix Construction we have $392,000. left on the contracts. There may also be a small change order for Felix Construction for the WWTP. Mr. Gray noted that we will have a little over 1.6 million dollars left of the 2017 funds that we can use for other projects. He noted we received the funds in May of 2017 and need to spend them by May of 2020. We can spend them on wastewater and water systems entire system, any part of the system; street and drainage improvements, and professional services related to any one of those items. There was brief discussion as to using some of the funds for the professional services for stream restoration and Mr. Gray noted we have used some funds for this purpose and could use additional funds. Page 1 CITY OF SANGER, TEXASMINUTES: WORK SESSION CITY COUNCIL MEETINGMonday, December 16, 2019 6:00 PM502 Elm Street, Sanger, TexasCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Bilyeu; Councilmember Marissa Barrett; CouncilmemberDennis Dillon; Councilmember David Clark, Councilmember Allen Chick. COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; Deputy City Secretary Jeriana Staton; Finance Director, Clayton Gray;City Engineer, Tracy LaPiene; Director of Public Works, Jim Berman; Director of Electric Utilities,Mike Prater.1.Call Meeting to OrderThere being a full quorum present at the December 16, 2019 Work Session, the meeting waswas called to order by Mayor Muir at 6:04 p.m. 2.Presentation and Discussion on Series 2017 Certificates of ObligationStaff Presentation and Discussion of Series 2017 CO Funds and Potential Additional Projects byClayton Gray, Finance Director, Jim Berman, Public Works Director and Tracy LaPiene, CityEngineer.Finance Director Clayton Gray provided a brief background noting whenever the City issues debtour official statement has a paragraph that lists the purpose that we are selling the certificates for. The purpose determines what types of expenditures we can make with those funds. The uses for thefunds is limited to those items listed in the statement and the wording is usually done in broadcategories and he gave an example, i.e, rehabilitation and expansion of the water and wastewatersystems; streets drainage and improvements. The reason for the wording is to allow some flexibilityif needed. When the funds are received we have 36 months to spend the proceeds. He provided asummary of the 2015 bonds and the 2017 bonds described uses allowed and expenditures andnoted that it leaves 2.1 million of the 2017 bonds. Of the 2.1 million we have remaining on ourcontract with Alan Plummer $107,000 and remaining on our contract with Felix Construction wehave $392,000. left on the contracts. There may also be a small change order for FelixConstruction for the WWTP. Mr. Gray noted that we will have a little over 1.6 million dollars left ofthe 2017 funds that we can use for other projects. He noted we received the funds in May of 2017and need to spend them by May of 2020. We can spend them on wastewater and water systemsentire system, any part of the system; street and drainage improvements, and professional servicesrelated to any one of those items. There was brief discussion as to using some of the funds for theprofessional services for stream restoration and Mr. Gray noted we have used some funds for this purpose and could use additional funds. Director of Public Works, Jim Berman was recognized and provided a presentation of viable projects. He noted that the Bolivar Street Pipe Bursting project would allow us to replace the Bolivar Street Sewer line and install nine (9) new manholes for the services along that line,which is a major thoroughfare through downtown. This project would initially get Bolivar set to do some street work through town. He noted this project could be started in February and could be done before May. Mr. Berman also noted he would like to start doing a maintenance program on our ground storage and our elevated storage tanks. The idea is to rehab and then have an annual budget cost every year to maintain each facility. The best time to do this would be during the winter months when there is not such a high use of demand. He noted that he is bringing this project forward while we are in the off season because we will be taking the storage tanks completely out of service and the best time to do it is when we are not in high use and demand which is in the winter months. He summarized each of the water storage facilities which would be in play for this project. When we do that on an annual basis, we have other storage tanks that would be put into the budget to get done and we would put about $95,000 to $97,000 a year in a fund to manage these assets until they are rebuilt or replaced. He presented our current road projects and a couple of additions. He noted the roads in blue on the presentation were already planned for this year's budget. He noted that if we do the pipe bursting on Bolivar would have to cut 28 squares in the road and it is already in bad shape. He recommended that we go ahead and do the mill and overlay like we did on the other roads and add Church Street to the list. He provided a map of the five year plan. Mayor Muir summarized that staff has tried to put together a cohesive plan with projects that have been discussed in the past. Councilmember Chick asked if there were any projects that did not make the cut. Mr Berman noted that there were some projects such as more storage tanks, but they could not be done before May which is our deadline. The ones that are most important are on the list first. Councilmember Barrett asked if the money had to be spent or could it be encumbered? Finance Director Clayton Gray stated that he would like to see the money spent; however he did talk with Ted Christensen and we could have the funds encumbered.There was miscellaneous discussion regarding time constraints and contractors. Finance Director explained what complications would occur if we did not spend the money in the required time frame. There was discussion regarding spending the money, what projects it would be used on, and using it within the deadline time frame. Mayor Muir polled Council and they were in agreement on the aforementioned proposed project use for the remaining 2017 bond money. 3.TXDOT FM 455 Utility Relocation Update Staff Update on FM 455 Utility Relocation Status, Consultant Professional Service Agreements and Utility Coordination. City Engineer, Tracy LaPiene was recognized and updated City Council on the FM 455 Utility Relocation update. He noted that we are negotiating a separate contract with Dannenbaum for the design of the portion of relocating utilities on the southwest corner of FM 455 and I35 because the utilities were not originally noticed and they will need to be relocated. Because the utilities are along I35 they are reimbursable. This would be better as a separate contract because it would be 100% reimbursable. Mayor Pro Tem Bilyeu asked if he was talking about the entire project. Mr. LaPiene noted that along FM 455 there is about a half of mile north and south that is part of the FM 455 project and when Dannenbaum scoped this out they did not take this area into account. The other item with the FM 455 project they are allowing us to stay in the rightofway and if there are any Page 2 CITY OF SANGER, TEXASMINUTES: WORK SESSION CITY COUNCIL MEETINGMonday, December 16, 2019 6:00 PM502 Elm Street, Sanger, TexasCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Bilyeu; Councilmember Marissa Barrett; CouncilmemberDennis Dillon; Councilmember David Clark, Councilmember Allen Chick. COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; Deputy City Secretary Jeriana Staton; Finance Director, Clayton Gray;City Engineer, Tracy LaPiene; Director of Public Works, Jim Berman; Director of Electric Utilities,Mike Prater.1.Call Meeting to OrderThere being a full quorum present at the December 16, 2019 Work Session, the meeting waswas called to order by Mayor Muir at 6:04 p.m. 2.Presentation and Discussion on Series 2017 Certificates of ObligationStaff Presentation and Discussion of Series 2017 CO Funds and Potential Additional Projects byClayton Gray, Finance Director, Jim Berman, Public Works Director and Tracy LaPiene, CityEngineer.Finance Director Clayton Gray provided a brief background noting whenever the City issues debtour official statement has a paragraph that lists the purpose that we are selling the certificates for. The purpose determines what types of expenditures we can make with those funds. The uses for thefunds is limited to those items listed in the statement and the wording is usually done in broadcategories and he gave an example, i.e, rehabilitation and expansion of the water and wastewatersystems; streets drainage and improvements. The reason for the wording is to allow some flexibilityif needed. When the funds are received we have 36 months to spend the proceeds. He provided asummary of the 2015 bonds and the 2017 bonds described uses allowed and expenditures andnoted that it leaves 2.1 million of the 2017 bonds. Of the 2.1 million we have remaining on ourcontract with Alan Plummer $107,000 and remaining on our contract with Felix Construction wehave $392,000. left on the contracts. There may also be a small change order for FelixConstruction for the WWTP. Mr. Gray noted that we will have a little over 1.6 million dollars left ofthe 2017 funds that we can use for other projects. He noted we received the funds in May of 2017and need to spend them by May of 2020. We can spend them on wastewater and water systemsentire system, any part of the system; street and drainage improvements, and professional servicesrelated to any one of those items. There was brief discussion as to using some of the funds for theprofessional services for stream restoration and Mr. Gray noted we have used some funds for thispurpose and could use additional funds.Director of Public Works, Jim Berman was recognized and provided a presentation of viableprojects. He noted that the Bolivar Street Pipe Bursting project would allow us to replace theBolivar Street Sewer line and install nine (9) new manholes for the services along that line,which is amajor thoroughfare through downtown. This project would initially get Bolivar set to do some streetwork through town. He noted this project could be started in February and could be done beforeMay. Mr. Berman also noted he would like to start doing a maintenance program on our groundstorage and our elevated storage tanks. The idea is to rehab and then have an annual budget costevery year to maintain each facility. The best time to do this would be during the winter monthswhen there is not such a high use of demand. He noted that he is bringing this project forward whilewe are in the off season because we will be taking the storage tanks completely out of service andthe best time to do it is when we are not in high use and demand which is in the winter months. Hesummarized each of the water storage facilities which would be in play for this project. When we dothat on an annual basis, we have other storage tanks that would be put into the budget to get doneand we would put about $95,000 to $97,000 a year in a fund to manage these assets until they arerebuilt or replaced. He presented our current road projects and a couple of additions. He noted theroads in blue on the presentation were already planned for this year's budget. He noted that if wedo the pipe bursting on Bolivar would have to cut 28 squares in the road and it is already in badshape. He recommended that we go ahead and do the mill and overlay like we did on the otherroads and add Church Street to the list. He provided a map of the five year plan. Mayor Muir summarized that staff has tried to put together a cohesive plan with projects that havebeen discussed in the past. Councilmember Chick asked if there were any projects that did notmake the cut. Mr Berman noted that there were some projects such as more storage tanks, but theycould not be done before May which is our deadline. The ones that are most important are on thelist first. Councilmember Barrett asked if the money had to be spent or could it be encumbered? Finance Director Clayton Gray stated that he would like to see the money spent; however he didtalk with Ted Christensen and we could have the funds encumbered.There was miscellaneousdiscussion regarding time constraints and contractors. Finance Director explained whatcomplications would occur if we did not spend the money in the required time frame. There wasdiscussion regarding spending the money, what projects it would be used on, and using it within thedeadline time frame. Mayor Muir polled Council and they were in agreement on the aforementioned proposed projectuse for the remaining 2017 bond money.3.TXDOT FM 455 Utility Relocation UpdateStaff Update on FM 455 Utility Relocation Status, Consultant Professional Service Agreements andUtility Coordination. City Engineer, Tracy LaPiene was recognized and updated City Council on the FM 455 UtilityRelocation update. He noted that we are negotiating a separate contract with Dannenbaum for thedesign of the portion of relocating utilities on the southwest corner of FM 455 and I35 because theutilities were not originally noticed and they will need to be relocated. Because the utilities are alongI35 they are reimbursable. This would be better as a separate contract because it would be 100%reimbursable. Mayor Pro Tem Bilyeu asked if he was talking about the entire project. Mr. LaPienenoted that along FM 455 there is about a half of mile north and south that is part of the FM 455 project and when Dannenbaum scoped this out they did not take this area into account. The other item with the FM 455 project they are allowing us to stay in the rightofway and if there are any improvements we would like to make we can get them in the rightofway at this time rather than having to purchase easements outside of the rightofway. He asked Dannenbaum to give him some ballpark numbers of the cost of the stuff that we would have to replace. How is this project impacting us and what things should we add on that make most sense and what things in our master plan we can incorporate such as upsizing and putting in 12 inch lines, etc. or let it be developer driven. This would be brought to Council to decide which items we would want to include. Councilmembers noted concern regarding the cost of these projects and having an idea of what the final numbers would be. Mr. LaPiene gave a summary of the time frames and project time lines and noted he would be bringing a change of scope in the next few months. City Manager Alina Ciocan provided a summary of the financial mechanisms staff has been exploring. There was discussion regarding TxDOT to bring up the timelines by a year and it was noted that the City would do what we can do. Mr. LaPiene also noted that the City was working with CoServ with some shared costs of design of the utility relocation, and with that, it was substantial savings on the design and construction. Director of Electric Utilities Mike Prater summarized the plan and City Manager Alina Ciocan noted that there may be a reimbursement agreement for engineering costs and a separate agreement for cost sharing on the poles. Also, there was additional discussion regarding time lines putting in the utilities. It was noted that the entire project would happen all at once. Mr. LaPiene noted that he just wanted to give everyone a heads up regarding the contracts. 4.Overview of Items on the Regular Agenda There was no overview of items on the agenda. 5.Adjourn There being no further discussion, Mayor Muir adjourned the meeting at 7:21 p.m. Page 3