HomeMy WebLinkAboutCity Council-Worksession Minutes-8/25/2016 City of Colleyville Page 1
City of Colleyville
City Council
Worksession Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Thursday, August 25, 2016
6:00 p.m.
Executive Conference Room
Third Floor City Hall
1. CALL TO ORDER
2. EXECUTIVE SESSION In accordance with Texas Government
Code, Chapter 551, Subchapter D
551.071 Consultation with and legal advice from the City Attorney
regarding Trinity River Authority Contracts
3. PRESENTATION AND DISCUSSION
3a Discussion of Water and Wastewater Services from Trinity River
Authority
4. ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday,
August 19, 2016 by 5:00 p.m.
Amy Shelley, TRMC
City Secretary
A quorum of any Colleyville board, commission, or committee may be
present at this meeting.
Any matter on this agenda may, at the discretion of the governing body, be
opened for public comment and discussion.
If you plan to attend this public meeting and have a disability that requires
special accommodations, please advise the City Secretary at least 48 hours in
advance at 817.503.1133, and reasonable accommodations will be made to assist
you.
City of Colleyville Page 1
City of Colleyville
City Council Worksession
Minutes
City Hall
100 Main Street
Colleyville, Texas 76034
817. 503.1000
www.colleyville.com
Thursday, August 25, 2016
6:00 p.m.
Executive Conference Room
Third Floor – City Hall
Mayor Richard Newton called the Colleyville City Council Worksession to order on
August 25, 2016, at 6:00 p.m.
ROLL CALL: Mayor Richard Newton, Mayor Pro Tem Chris Putnam, and
Councilmembers Tammy Nakamura, Bobby Lindamood, Jody Short, Nancy Coplen
and Mike Taylor
City Manager Jennifer Fadden, Deputy City Manager Chris Fuller, Assistant City
Manager/Director of Public Safety Mike Holder, Chief Financial Officer Brian Hogan,
Public Works Director Jeremy Hutt, City Engineer Cheryl Taylor, SH26 Coordinator
James Hubbard, Strategic Services Manager Adrienne Lothery, Assistant City
Attorney Cathy Cunningham, and City Secretary Amy Shelley
Mayor Newton recessed the worksession at 6:01 p.m. to enter into Executive
Session at 6:01 p.m.
2. EXECUTIVE SESSION - In accordance with Texas Government Code,
Chapter 551, Subchapter D
Section 551.071 – Legal - Consultation with and legal advice from the City
Attorney regarding Trinity River Authority Contracts
Mayor Newton explained the Executive Session had been called in accordance with
the Texas Government Code, Chapter 551, Subchapter D, Section 551.071, Legal;
Consultation with and legal advice from the City Attorney and explained there
would be no decisions made or action taken during this time. The worksession was
reconvened at 6:25 p.m.
3. PRESENTATION AND DISCUSSION
3a Discussion of Water and Wastewater Services from Trinity River
Authority
Fiona Allen, Trinity River Authority Northern Region Manager, presented this item
and answered questions of the City Council.
Mayor Newton asked Ms. Allen who the TRA board members are. Ms. Allen replied
Ron Goldman, Martha Hernandez, Bill Collins, and Henry Bilboa.
City Council Minutes August 25, 2016
City of Colleyville Page 2
Mayor Newton asked Ms. Allen if they are all appointed by the Governor. Ms. Allen
replied yes.
Mayor Pro Tem Putnam asked Ms. Allen who are the contracting parties relative to
budgeting for TRA services. Ms. Allen replied any city or entity, but Colleyville is
not one of our contracting parties.
Mayor Newton asked Ms. Allen if Colleyville is on the central facility. Ms. Allen
replied yes.
Mayor Newton asked Ms. Allen if that is only for the wastewater. Ms. Allen replied
yes, Tarrant County is the water side.
Mayor Newton asked Ms. Allen about the water side charges. Ms. Allen replied
those charges only apply to the Tarrant County projects for the five entities.
Mayor Newton asked Ms. Allen if less water was used than budgeted. Ms. Allen
replied yes.
Mayor Newton asked staff if Colleyville was conservative in the estimates. Chief
Financial Officer Brian Hogan replied yes.
Mayor Newton asked Ms. Allen if everybody across the county pays for the debt
service no matter what need is driving that project. Ms. Allen replied yes, it is for
projects that are either already underway or being completed. She stated
everyone pays for the debt service even if no water is used. She stated it will
come back on the cities and TRA if the debt service is not paid.
Mayor Newton asked Ms. Allen about how a new city joins the system. Ms. Allen
explained a new city coming onto the TRA system is charged for anything needed
to join the system, but Colleyville only pays for their portion of the same
operations shared in common by all cities, not for the new city joining the system.
Mayor Newton asked Ms. Allen if TRA picks up the raw water at Lake Arlington,
and if they pay to get it there. Ms. Allen replied yes.
Mayor Pro Tem Putnam asked Ms. Allen how the net position balance is purposed,
and is it purposed to help resolve the debt sooner, rather than later. Ms. Allen
replied the $30 million is the pre collection of all debt services, in aggregate. The
$600 million is net proceeds for construction funds for projects which have already
been authorized.
Mayor Pro Tem Putnam asked Ms. Allen what balances are reasonable to maintain
versus using for other purposes. Ms. Allen replied the challenge is meeting the
regulatory needs, and only selling the amount of debt needed to get the projects
done. She stated they have not had a bond sale since 2013.
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City of Colleyville Page 3
Mayor Pro Tem Putnam stated he would like to see the breakdown. Ms. Allen
stated she would provide it.
Councilmember Taylor asked Ms. Allen what is being done about the issue that
concerns us, which is the amount of debt. Ms. Allen replied we will not go out and
issue debt until we know we have to do the project, and we are not doing
capitalized interest. She stated they review the best ways to issue debt, rather
long or short terms to pay for projects.
Councilmember Short asked Ms. Allen why they are not doing the planned
improvements to capacity. Ms. Allen replied the conservation measures being put
in place by our customers have shaved the peaks down, which means the
demands are down from what they were 10 years ago. She stated the state
requires them to design for those peaks, and then you build to capacity, but
capacity is only being used three to four times a year.
Mayor Pro Tem Putnam asked Ms. Allen if not all of the cities (Bedford, Colleyville,
Euless, Grapevine, and North Richland Hills) source exclusively through TRA, which
is why Colleyville’s percentage is higher? Ms. Allen replied Grapevine has their own
treatment plant, but they are at capacity and Euless is connecting to the re-use
line in Fort Worth for irrigation (purple pipe).
Mayor Newton asked Ms. Allen who all has access to the purple pipe. Ms. Allen
replied they are all contracted with the city of Fort Worth.
Mayor Pro Tem Putnam asked Ms. Allen why they chose to do that. Ms. Allen
replied they received money through ARA, and Fort Worth was able to offer a
more economical rate, about a $.30 discount.
Councilmember Taylor asked Ms. Allen what is ARA? Ms. Allen replied American
Recovery Association.
Mayor Newton asked Ms. Allen about the facility cost. Ms. Allen explained that the
rate is a function cost divided by the flow. If the denominator goes down, the unit
cost goes up. Had you had the same amount of flow, you would not have seen
that big increase.
Mayor Pro Tem Putnam asked Ms. Allen if the pipeline will be used to service
Dallas. Ms. Allen replied a portion of the pipeline is going to Dallas.
Mayor Pro Tem Putnam asked Ms. Allen if Dallas will absorb their portion of the
debt. Ms. Allen replied yes.
Mayor Newton asked Ms. Allen why they are doing the pipeline. Ms. Allen replied
the Tarrant Regional Water District brings in water from Cedar Creek and Richland
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City of Colleyville Page 4
Chambers located in east Texas, pump it up here, connect to the City of Mansfield,
drop in Lake Arlington, pump it to Lake Benbrook, and Eagle Mountain Lake. She
stated there are water rights down there with the water demand up here, so this
pipeline will be another straw in the bucket to get resources here.
Councilmember Taylor asked Ms. Allen if the pipeline was in the original 50 year
plan. Ms. Allen replied yes, and some sections of the pipeline had actually been
delayed.
Councilmember Coplen asked Ms. Allen what is the next project. Ms. Allen Lake
Bois d’Arc is the first one, and they are not done with permitting.
Councilmember Coplen asked Ms. Allen if there are other lakes in the state about
to open. Ms. Allen replied no.
Mayor Newton asked Ms. Allen is that because of federal regulations. Ms. Allen
replied federal and state, depending on who is sitting in the White House.
Mayor Newton asked Ms. Allen if TRA sells water rights to other lakes. Ms. Allen
replied yes, there are contracted rights leased to other parties.
Councilmember Short asked Ms. Allen about relative costs to other options. Ms.
Allen replied running pipes are a lot quicker than building a new lake, but there
are pumping costs.
Mayor Newton asked Ms. Allen to characterize those projects. Ms. Allen replied, for
example, rehabilitation of the west Grapevine/Colleyville meter station.
Mayor Newton asked Ms. Allen if these are all maintenance issues. Ms. Allen
replied some are maintenance and some are replacements.
Councilmember Short asked Ms. Allen if there is a lifecycle on equipment. Ms.
Allen replied usually 10 years, but they have some meters that are 15 years old.
Councilmember Short asked Ms. Allen if there are major capital replacements. Ms.
Allen replied yes, and explained one.
Mayor Newton asked Ms. Allen if there is a plan in place for these. Ms. Allen
replied yes, there is a five year plan, which includes estimated costs.
Mayor Newton asked Ms. Allen what is changing, regulatory wise. Ms. Allen replied
the EPA is concerned about sienna toxins which can be carcinogenic, and have
suggested doing testing to control this concern, and that would be a capital
expenditure. She stated filtering will be changed from conventional to bio
filtration.
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City of Colleyville Page 5
Mayor Newton asked Ms. Allen about planning for replacement cycles. Ms. Allen
replied they have just implemented an asset management program that will help
them to better predict life cycles, and it is at central now, but not yet at other
facilities.
Councilmember Taylor asked Ms. Allen if deferred maintenance is in the analysis.
Ms. Allen replied yes, but there are things that get old and have to be fixed, such
as storage tanks.
Mayor Newton asked Ms. Allen about the five year percentage increase
compounded over debt relative to wastewater increases. Ms. Allen replied she
does not know, but projections on the operation and maintenance (O&M) is four
percent.
Councilmember Taylor asked Ms. Allen what TCWSP stands for. Ms. Allen replied
Tarrant County Water Supply Project.
Councilmember Taylor asked Ms. Allen about the population projections noted in
the presentation. Ms. Allen replied that is the population of the area we serve, the
five cities.
Councilmember Taylor asked Ms. Allen to define commercial paper. Ms. Allen
replied it is like a line of credit, like a low interest credit card.
Councilmember Taylor asked Ms. Allen if the debt can be paid off by revenue
stream or reserve cash. Ms. Allen replied we do not have reserve cash, per
legislation.
Mayor Newton asked Ms. Allen if the debt is driven by one project. Ms. Allen
replied a lot of it is because we have the commercial paper, and as we have the
asset, we can issue the long term debt.
Councilmember Taylor asked Ms. Allen if they are capitalizing interest. Ms. Allen
replied no.
Councilmember Lindamood asked staff about the $700,000 rebate. Chief Financial
Officer Brian Hogan replied it went into the Utility Fund, and those funds are kept
separate to offset water and wastewater costs.
4. ADJOURNMENT
There being no further business before the City Council, Mayor Newton adjourned
the worksession at 7:54 p.m.
City Council Minutes August 25, 2016
City of Colleyville Page 6
APPROVED BY A VOTE OF 6 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE
20TH DAY OF SEPTEMBER 2016.
Minutes taken and prepared by:
Amy Shelley, TRMC
City Secretary