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2001-04-11 SPECIAL JOINT CITY COUNCIL / CISD BOARD OF TRUSTEE MEETING APRIL 11, 2001 MINUTES City Councilmembers Present: Mayor Rick Stacy; Members: Patsy DuPre, Gary Fawks, Ronnie Kendall, Rex Potter, Keith Shankland (10:00 p.m.), and Greg Standerfer. CISD Board of Trustees Present: President Robert Glover; Trustees: Bill Eden, Steve Harold, Jerry Lawrence, Rebecca Miltenberger, J. Carol Parsons, and Doug Strickland. City Staff Present: City Manager Billy Campbell, Director of Community Services Kevin Hugman, Finance Director Sharen Elam, Public Works Director Pedram Farahnak, and Executive Secretary Kim Bush. CISD Staff Present: Superintendent of Schools Ted Gillum, Business Manager Jim Schiele, Assistant Superintendent of Business and Finance John Craft, Assistant Superintendent of Administrative Services Steve Johnson, Public Information Officer Julie Thannum, and Secretary Donna Hosea. Regular Session: Agenda Item No. 1, Call to order. CISD President Robert Glover called the meeting to order at 7:05 p.m. President Glover announced that agenda item #3 and #4, Discussion regarding TIF and Chapter 41, respectively, would be discussed prior to consideration of the Joint Use agreement for the Natatorium. Agenda Item No. 3 and No. 4, Discussion regarding TIF and Chapter 41. President Glover presented to the Board and City Council information regarding Tax Increment Financing (TIF) as it relates to CISD including growth management, funding sources, and financial constraints. Mr. Glover commented that the Board wanted City Council to be aware of the issues facing CISD beginning with the next school year. CISD Business Manger Jim Schiele explained the projection of recapture payments and TIF contributions. He stated that the projection was based on wealth level per Weighted Average Daily Attendance (WADA) of $295,000 Tax Assess Value (TAV) per student. He also commented that CISD receives an estimated cash benefit of $112,742, which is 70% of the net benefit as a result of CISD's involvement in the TIF (see handout included with the minutes). MINUTES OF JOINT CISD AND CITY OF SOUTHLAKE MEETING APRIL 11, 2001, PAGE 1 OF 4 Mr. Schiele estimates that, if current legislation does not change, the district will be paying to the State 8.54% of every dollar collected for fiscal year 2001 -2002, and estimates that by the year 2005 -2006 that percentage will increase to 29.07%. Mr. Glover explained that CISD will have additional recapture options items on the May ballot that will help to reduce the impact of Chapter 41. They include: (1) Contract with a neighboring school district to educate students who reside outside district's boundaries, which means sending money directly to local school districts rather than to the state; (2) Issue $3 million new debt previously planned for Certificate of Obligation Bond Issues; and (3) Reclassify $7.1 million Certificate of Obligation Bonds to Debt Service. CISD and City Council discussed adding students outside the district to help reduce the effects of Chapter 41, but Superintendent Ted Gillum commented that the cost to educate each additional student (approximately $6,300) would out weigh the cost due the State for that student. Mr. Schiele added that if you bring a student in from another district, they get the WADA credit, you do the education. Councilmember Kendall commented that it would have been a good idea for the City to have had available the cost associated with doing infrastructure improvements. President Glover commented that it would be helpful to have a financial summary. He suggested that this might be a good topic for discussion the next time there is a joint meeting. Agenda Item No. 2, Joint Use Agreement for the Natatorium. Director of Community Services Kevin Hugman gave a brief history of what has transpired up to this point with regard to discussions by SPDC and JUC concerning funding and use of the natatorium. For this meeting, everyone agreed to reference the joint use agreement as approved by JUC on March 8, 2001, which also incorporates the city attorney's comments, and a separate document that includes changes recommended by Councilmember Rex Potter and Board Trustee Jerry Lawrence. An informal poll was taken of all SPDC members present including Sherry Berman, Tad Stephens, and Cara White. All agreed that they were not interested in getting repayment for the $1.25 million allocated to the construction of the natatorium as long as sufficient use of the facility was provided for use by the community. Motion was made to approve the interlocal agreement for joint use of CISD natatorium as set forth in the agreement approved by the Joint Use Committee on March 8, 2001 and incorporating the city attorney's comments (see attached to the minutes), together with all of the changes as recommended by Councilmember Rex Potter and Board MINUTES OF JOINT CISD AND CITY OF SOUTHLAKE MEETING APRIL 11, 2001, PAGE 2 OF 4 Trustee Jerry Lawrence (see attached to the minutes) with the following changes: (1) adding the words and CISD after the word Southlake under Witnesseth, first paragraph; (2) deleting the word and City after the words "The CISD" under Article II, second paragraph, first sentence; (3) adding the word marketing to the natatorium director's duties under Article III, first paragraph; (4) adding the words subject to the provisions of Article X to Article V, paragraph one after the words "in order to establish "; (5) deleting the words "all the Commission representatives" and inserting the words at least two City representatives and three CISD representatives under Article V, paragraph 2; and, (6) insert the words to both parties' mutual satisfaction after the words "unable to resolve the Dispute" under Article X, second and third paragraph. Motion: Councilmember Standerfer Second: Councilmember Fawks Ayes: Councilmembers DuPre, Fawks, Kendall, Potter, Standerfer, and Mayor Stacy Nays: none Approved: 6 -0 (Councilmember Shankland was not present during the vote) Councilmember DuPre commented that she voted in favor of the agreement only after considering the informal polling of all the SPDC members whereby they stated that they are not concerned with receiving any reimbursement on the $1.25 million contributed by SPDC. Motion was made to approve the Joint Use Agreement as motioned by Councilmember Greg Standerfer. Motion: Trustee Lawrence Second: Trustee Harold Ayes: Trustees Eden, Harold, Lawrence, Miltenberger, Parsons, Strickland, and President Glover Nays: none Approved: 7 -0 CISD Board asked whether or not the District's attorney had reviewed the agreement. Superintendent Ted Gillum commented that the attorney did have a few comments, but nothing that would change the intent of the agreement. He commented that if there were questions, either the CISD or City staffs could work through those with the attorneys. Trustee Harold commented that he is happy with the agreement but with the understanding that it might need to be renegotiated at some future point depending on the effects of Chapter 41 on the District. If things get tough, the School Board may have to decide to close the natatorium and turn operations over to the City. Councilmember Standerfer commented that the agreement could be negotiated by both parties at that time, but he wanted everyone to understand that CISD and the City have committed to operating for the term of the agreement - the days and times as set forth in the agreement. Mr. Harold MINUTES OF JOINT CISD AND CITY OF SOUTHLAKE MEETING APRIL 11, 2001, PAGE 3 OF 4 wanted it also noted that it is not the intent of the agreement to give the entire facility to the City 50% of the time - it's for the City to be able to use at least part of the the facility 50% of the time. Agenda Item No. 5, Discussion on Joint Use Projects. (Councilmember Shankland arrived for the meeting at this time.) Mayor Stacy updated the Board about the Stars Center and commented that the 3 -acre tract (owned by CISD at the new stadium site and designated as a future parking lot) might be a good site for the Center. President Glover commented that once the City worked through some of the issues, CISD could look into how they might get involved. He suggested that this would be a good topic to consider as they get ready for the next bond election later this year. Discussions were also held concerning the use of CISD tennis courts during the day, needs of the Lacrosse Association, repair of lighting at the school site at North Carroll Avenue and Dove Road, and sponsoring an adult Special Olympics at the new stadium. All agreed that these would be good topics to include on the Joint Use Committee's agenda. Agenda Item No. 6, Adjournment. It was agreed that more joint meetings needed to be held - possibly on a regular basis at least twice a year. There being no further business to discuss, the meeting was adjourned at 10:40 p.m. Mayor Rick Stacy ATTEST: Acti : City Secretary Ki Bush MINUTES OF JOINT CISD AND CITY OF SOUTHLAKE MEETING APRIL 11, 2001, PAGE 4 OF 4