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Policy Development/Review Workshop - Called to order at 04:03 PM
Mayor Garver explained the agenda format and listed the sections to be discussed in Executive Session.

A Overview of proposed 2008-2009 City of Georgetown employee benefits -- Kevin Russell, Human Resources Director and Paul Brandenburg, City Manager

Russell explained that a decision is needed by the Council at tomorrow night's meeting. He noted that he had distributed to Council a summary page of the request for proposal, and he explained it to Council. He said there were originally five providers, but staff narrowed them down to two, being Humana and Scott and White. He noted the guidelines were followed in negotiating with the two bidders, and the selection criteria was provided to each of the two bidders. He said they were told to bring a bid for both a High Deductible Plan as a sole plan, and a High Deductible Plan alongside a Copay Plan. He said a nine-person committee, representing all sections of city employment, determined to use the High Deductible Plan from Humana. Oliver and Brainard attended the meeting with the employee committee, and Oliver said since the cost to the City was the same, it should be the employees who make the choice. Brainard said he agreed with Oliver and the two "sticking points" that caused this issue to go back to the committee were (1) the concern about the process and assurance that the two bidders had an equal opportunity to bid; and (2) the issue of the high deductible and the other plan being available to the city employees. Mayor confirmed that the two councilmembers agreed that the decision made by the Committee should be endorsed by the Council.

With a slide presentation, Zavala reviewed the City's investment policy, saying this review of the cash and investment activities of the City, GTEC, and GEDCO, is required on an annual basis by the Public Funds Investment Act, the City's Investment Policy, and the Governmental Accounting Standards Board Statement No. 31. Rundell reviewed the City's 4th Quarter Investment Report. She said the total portfolio is $74,129,529 (City = $53,215,379, GTEC = $18,636,437, GEDCO = $2, 277,713). She explained, because of the insecurity of the national market, the City is not doing a lot of investing because the yield is low at this time. She said the subprime mortgage crisis is affecting the market outlook for the City. She told Council she would bring forth some changes for their consideration at the meeting tomorrow night. There were questions from Brainard regarding the City's portfolio.

Rundell explained the Budget Contingency Plan was put in place as a part of the Fiscal and Budgetary Policy of 2002/03 after the shortfall from 9-11. She explained the two stages of action used for managing revenue shorfalls due to national or local economic downturns. She noted that Stage 2 has never been implemented. She said the contingency reserves are looked at by bond rating companies to indicate the City's financial health, showing emergency preparedness. She said the City's contingency reserve, per policy, contains $14,520,000, representing 75 days of citywide operating expenses, allocated between funds. She explained the $2M of excess funds and approximately $1M left from the 2007/08 fiscal year will be used to fund one-time projects. There were questions from Council. She said some of the revenues for 2008/09 could be less than anticipated. She said sales tax revenues from building materials may be lower due to the housing slow down. She displayed graphs that showed Sales Tax Revenue by Month, Annual Sales Tax Comparison, and Residential Building Permits. She explained potential expenditure savings, such as delays in hiring staff, reducing travel and training, reducing other operating expenses, fuel savings, health insurance savings from the budgeted 15% increase, TMRS savings from what was budgeted, delaying capital replacement of police vehicles and computer replacements, delaying capital maintenance, and delaying or reducing debt issuance for 2009 and 2010. She spoke about the possibility of a decrease in property valuations regarding the 2009/10 tax rate. She said Georgetown has the largest amount of frozen taxes of any city in Texas, noting that 40% of the homesteads have frozen property taxes. She explained options if the City doesn't raise the taxes to the effective rate next year, such as monitoring revenues very closely, and continuing Stage 1 Budget Contingency planning. She said she will provide monthly updates to the Council. Brandenburg also noted that hotel/motel tax has begun to dip. Rundell said staff is hopeful of an increased return on investment.

Mayor recognized Joe Savage in the audience for the work he did advertising a positive vote on the City's bond issues.

Mayor welcomed the Arts and Culture Board and introduced Chair Ruth Roberts. With a slide presentation, Roberts displayed donated art work that is currently on display at the Library. She listed the Board's community involvement and sponsorships. She presented the proposed Arts and Culture 2008-2009 Budget of $88,000, without figures designated, including Public Art, an Arts Master Plan, lighting improvements and hanging systems at the Library, and administrative costs. Berryman suggested having the City display artwork from student artists at Southwestern. Berryman also suggested looking into collections to be displayed at the City. Roberts indicated there would be a large expense for insurance and transportation. They discussed loans of personal collections to the City.

Lashley said the Board needs a plan for all of the ideas that come up. Sattler asked and there was discussion regarding establishing a 501(c)3 for the Arts Board.

5:52 p.m. -- 10-minute recess and Executive Session

E Sec.551.071: Consultation with Attorney

1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items
2. Legal issues related to the City of Georgetown' s power supply contract with LCRA and potential litigation pertaining to same
3. Mark Shelton v. City of Georgetown, et al;Cause No. A07CA063; in the United States District Court for the Western District of Texas, Austin Division
4. Lear v. Jimmy Lewis Fennell and City of Georgetown,Cause No. A08-CA-719LY, in the United States District Court for the Western District of Texas Austin Division
5. First Citizens Bank & Trust Company v. City of Georgetown,Cause No. D-1-GN-08-02325, 53rd Judicial District, Travis County, Texas
6. Discussion of legal issues related to payment obligations for the Public Utility Improvements under the "Development Agreement with Forestville Associates, a Maryland General Partnership, regarding development of Wolf Ranch" dated September 11, 2003
7. Discussion of legal issues related to Development Agreement and Utility Agreement for the Water Oak Subdivision (ABG Subdivision)
8. Berry Creek Partners v. City of Georgetown,Cause No. 08-767-C277, in the District Court of Williamson County, 277th Judicial District
9. Consideration and possible action to approve new engagement letters with all outside counsel currently assisting the City of Georgetown on various matters.

1. Deliberation regarding future City of Georgetown Power Supply Options -- Jim Briggs, Assistant City Manager for Utility Operations

1. Deliberation regarding the potential purchase of property at 105 North IH35 -- Paul E. Brandenburg, City Manager

1. Deliberation regarding the request related to Industrial Revenue Bonds for Airborne -- Mark Thomas, Economic Development Director
2. Deliberation regarding request of Inwood Estates Vineyard to lease the old downtown fire station for use as a winery and to receive other economic development incentives -- Mark Thomas, Economic Development Director

1. Discussion and possible action related to the process of filling the anticipated open position of City Secretary in December 2008
2. Discussion and possible action related to the duties and performance criteria of the City Manager
8:17 p.m. -- returned to Open Session and adjourned