HomeMy WebLinkAbout1983-04-19 - Special City CouncilMINUTES OF THE CITY COUNCIL
OF THE
CITY OF STEPHENVILLE, TEXAS, HELD ON
TUESDAY, APRIL 19, 1983 - 1:30 P.M.
A special meeting of the City Council of the City of Stephenville was called to
order by the Mayor with the following members predent:
Mayor Joe F. Cummings
Councilmen: Charles Riggins
John Pollan
G. A. Swindle
and with the following members absent: William G. Brede.
Councilmen: -_ James Mc Swain
Ray Reynolds
Floyd Gordon
David Clayton
City Administrator Kurt J. Ackermann, City Secretary Joyce Penberton, City Attorney
Joseph Chandler, Director of Public Works R.Y. Gann, Fire Chief Larry May, Financial
Consultant Jack Gray, Tony Plumlee, and Lynn GTillis of T,,Tillis Engineering, Chester Amidon,
and Neal Guthrie were also present,
ITEM I: HEAR COMMITTEE REPORT REGARDING PROPOSED ?nTID=G OF MARY ST. FROM WASHINGTON
ST. TO RAIL -ROAD CROSSING.
Councilman Pollan, reporting for the committee said the property owners on each side
of Mary Street from Washington St, to the Rail -Road Crossing have been contacted and have
agreed to dedicate six (.6) feet to the City for the widening of Mary Street. Next the
City Council needs to request the City Attorney to prepare the deeds for the property
owners to sign and dedicate said 6' to the City. Then, after the necessary documents
have been signed and processed, begin the work of cutting the curb and doing the paving.
Since we now have the Harbin Drive extension on hold, maybe, it would be appropriate to
give consideration to the City Street Department doing the work at an estimated cost of
$8,000.00 to $10,000.00 rather than hiring an outside firm to do it.
After some discussion; Councilman Pollan moved that the City Council direct the
City Attorney to prepare the deeds for the expansion on Mary Street and also the work
be done by City Crews once the deeds have been obtained and the City will stand the
expenses. Councilman Riggins seconded the motion. The motion carried by the following
vote:
AYES: All members present voted aye.
NOES: None.
ITEM II: ELECT MAYOR PRO TEM
Councilman Riggins nominated Councilman John Pollan, There being no other nominations
Councilman Riggins moved that John Pollan be elected Mayor Pro Tem for the coming year.
Councilman Reynolds seconded the motion. The motion carried by the following vote:
AYES: All meters present voted aye.
NOES: None,
ITEM III: CONSIDER FUNDING PROPOSALS FOR WATERWORKS IMPROVEM7 T PROJECTS.
Mr. Jack Gray, with.Schneider, Bernet, & Hickman, the City's financial consultants,
gave the Council several schedules of the $6 million combination Tax and Revenue Certificates
of Obligation, Series 1983. (Copy in file)
Mr. Gray explained that (on the first secedule) the $882,155.71 average annual
requirements was considerably more than is allowed under our indenture as we do not
have the coverage factor. He suggested issuing a Coirbination Tax and Revenue Certificate
of Obligation which is issued by Resolution with Notice to the taxpayers. Two weeks
notice of intention to issue and, at that time, the Council could act to issue the
certificates. The Certificates would be primarily considered tax obligations by
the Attorney General, but we would normally use surplus revenues from the system onto
the debt. If we still had a deficit then we would levy a tax for the deficit portion of
the requirement. This does not take a vote of the people. We would give two weeks
notice and at that time they Have the right to petition the council for a referendum
vote on it.
Mr. Gray explained that, effective July 1, 1983 the IRS has a new law that requires
any bonds issued after July 1st will be in registered form. After that date''.the
City will be forced to pay all transfer fees on all bonds as many times as they change
hands for as long as they are outstanding which could be a considerable expense ($50,000.00
,269
to $75,000.00 in transfer fees). If the City is going to move on this, his recommendation
would be to try to get the bonds delivered to purchaser before July 1st.
The Council discussed with Mr. Gray and Mr. Willis of Willis Engineering Co. the
feasibility of issuing the entire $6 million or several issues, the interest rates and
whether or not, from an engineering standpoint they could get all phases of the project
done or under contract within three years.
Mr. Gray explained the other schedules to the Council with their average annual
requirements. He said he thought the Council should consider a rate increase and, if
-- necessary, a small tax increase.
The Council discussed rate increases, tax increases, the cost of getting water from
Proctor which would eliminate some of the water wells in the Willis report and different
ways of increasing revenues.
After discussion, it was the consensus of the Council that they were not ready
to take official action on the bond issue. Mayor Cummings set Wednesday, April 27, 1983
at 1:30 P.M. in the City Council Chanbers as the date, time and place for a special council
meeting at which time the Council can have some specific.ideas in mind as to what they
think would be the best way for the city to proceed.
ITEM IV: EXECUTIVE SESSION
Mayor Cummings adjourned the open meeting and called the Council into executive
session for the purpose of discussion of matters of personnel as provided in Article
6252 -17, Vernon's Texas Civil Statutes, Section 2(g)..:
Mayor Cummings reconvened the council in open meeting with no action being taken
on items discussed in executive session.
There being no other business to come before the Council, the meeting adjourned at
3:45 P.M.
Jo Pollan, Mayor Pro Tern
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