“Can we afford it?”
The million dollar question was posed to Teague’s City Council by Alderwoman Marie Hertenberger Monday night, July 16th.
“That’s the main thing – is the money there?”
Serious, and expensive, issues with the city’s infrastructure have plagued administrators and residents alike for years; currently, the FM 80 and Northline Water Projects.
While the FM 80 project still remains incomplete, the Council must now turn their attention to the more expansive Northline Project.
The Northline Water Project will replace the two-inch water supply lines running from Highway 179 to Northline Road with six-inch lines.
With the new lines in place, the city will be able to provide additional connections to property owners requesting water services in that area.
City Administrator/Secretary Theresa Prasil informed the Council that bids for the Northline Project have been received and reviewed by the project engineer, TRC Lockbox, who recommends a utility contractor formerly employed by the city, Duplichain Contractors, LLC.
Aldermen voted unanimously to accept their engineer’s recommendation, awarding the $258,888 bid to Duplichain Contractors of Alto, Texas.
Next was the matter of funding the project.
Deanne Carson, with Government Capital, gave the Council a breakdown of financing options available to the city.
Through Government Capital the city could undertake a $260,000 – $285,000 loan with payments set at $35,000 – $45,000 per year for seven years at 3.4% interest. The process of financing through Government Capital would require several meetings between the finance company and the Council, with a projected starting date of September or October 2018.
Alderman Jerry Ballew questioned whether the use of existing funds would ultimately save the city money by eliminating fees.
In answer, Prasil presented another option for consideration – financing the project through the city’s fund reserve account.
Mayor James Monks added that financing the project themselves would also mean an immediate starting date for the project.
Prasil informed Aldermen that the fund reserve balance currently sits at $2 million. With funds for the ongoing FM 80 Project already budgeted, and the city’s annual budget in the works, she explained that the city was in a prime position to budget for a re-payment.
She shared her opinion that the city should finance the project in-house, begin the Northline Project immediately, and prepare to seek outside funding for emergency infrastructure needs.
Ms. Carson informed the group that there was an option to start immediately through Government Capital if the city would reimburse itself.
Ultimately, Aldermen agreed that to finance the project in-house would mean no delay in work, no interest, and financing on the Council’s terms.
Alderman Ballew made a motion to finance the $260,000 Northline Water Project through the city’s fund reserve account for a seven year term with annual payments set at $37,142.85. A second from Alderman Ron Rasbeary, and unanimous vote from the board effectively set the project in motion.
At the request of Prasil, the Council approved seeking out new professional independent auditing services for the city. She shared that it is recommended that cities rotate auditors on three year terms.
Following discussion from last month’s meeting regarding the Collection Center’s policy on allowing non-profit organizations, such as the Thrift Store operated by the Teague Historical Preservation Society, additional free access to the dump.
As explained by volunteer Brenda Ballew at the previous meeting, the Thrift Store receives many donated items, and sometimes things that need to be disposed of immediately like mattresses, trash, etc.
She requested that the Council consider amending its policy to allow non-profits more than the allotted two free entries to the Collection Center per month.
Alderwoman Marilyn Michaud reasoned that the non-profits are considered commercial entities, which ultimately goes against the Collection Center’s ban on commercial dumping.
However, with Aldermen Ballew and Hertenberger abstaining from the vote; and Alderman Chris Nickleberry absent, the item was tabled due to lack of a quorum.
Public Works Director Jacob Cowling led discussion on a request to allow M&S Engineering to complete the Texas Commission on Environmental Quality (TCEQ) required sanitation easements for the city’s four water wells.
Cowling explained that the project requires amending the budget to appropriate $8,900 for surveying fees, and is required to be completed immediately.
The project involves designating 150 foot easements around the wells. Affected landowners can seek reimbursement for any fees associated with the sanitation easements. The Council voted unanimously to approve the project.
Next, Cowling told the Council that his Department’s trucks are rapidly on the decline, and asked for approval to purchase a new service truck for the Public Works Department.
Aldermen voted to amend the budget to use funds from the recent sale of the Pierce fire truck to purchase the 2018 Dodge Ram 3500 service truck along with one of the foundationless jib cranes.
Cowling also shared that the city might have the opportunity to purchase a 2016 Dodge Ram 2500 Tradesman at a very competitive price; and received approval to buy the truck for $23,995.
Aldermen reviewed the consent agenda, approving all items except one.
The Financial Report from the City of Fairfield for the Texas Department of Criminal Justice (TDCJ) Operation and Maintenance Fund for the month of June.
Prasil explained that she sent a certified letter on June 18th requesting the report, but had not yet received it.
The Council entered executive session for about half an hour to discuss personnel matters, specifically the duties of the Board of Aldermen. No action was taken in open session.
A resolution to prepare an application for the 2019-2020 Texas Community Development Block Grant Program (TXCDBG) was approved.
Prasil told the Council that the city applies for the grant every two years and is always denied. However, this year they will submit for a new project, hopefully receiving the funds for multiple repairs to lift stations and main sewer lines throughout the water and wastewater facilities.
The Council will meet again on Wednesday, July 23rd at 5:30 p.m., followed by a Budget Workshop at 6:15 p.m.
