2016-02-23 Audit/Finance Committee Minutes1 �
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After deterrnining that a quorum is present, the Audit/Finance Committee of the City of Denton,
Texas, rnet in a regular meeting on February 23, 2016, at 10:59 a.m., in the Finance Canference
Roorn, at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items were
considered:
P SENT: Committee Chair, Greg Johnson; Mayar, Chris Watts;
Council Member, Joey Hawkins
STAFF P SENT: George Campbell, City Manager; Bryan Langley, Assistant City Manager;
Jon Fortune, Assistant City Manager; Chuck Springer, Director of
Finance; Antonio Puente, Assistant Director of Finance; Harvey Jarvis,
Controller; Nancy Towle, Budget Manager; Caroline Finley, Treasury
Administrator; Kevin Ann Mullen, Assistant Controller; Cody Wood,
Assistant Controller; Scott Lebsack, Business Develop & Admin
Department Manager; Bradley Lahart, Fire Battalion Chief; Robin
Paulsgrove, Fire Chief; Kenneth Hedges, Assistant Fire Chief; Emerson
Vore1, Direcior -of I�arks and Recreation; Randee Klingele, Treasury -
Services Specialist; Tiffany Thomson, Assistant Customer Service
Manager; Lorri Brighton, Municipal Court Administrator; and Kristy
Odom, Recarding Secretary.
The following iterns were cansidered:
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1. Consider approval of Audit/Finance Committee Minutes of November 17, 2015.
Mayor Chris V�atts made a motion ta approve the minutes. Council Member, Joey Hawkins
seconded the motion. Motion carried unanimously.
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Chuck Springer, Director of Finance, explained the plans for Certificates of Obligation sales that
requires a notice of intent resolution that will need to be presented ta council in March, based on
Audit Finance Committee recommendation. He addressed the recommended changes by the
Bond Oversight Committee on the planned issuance dates af the 2014 bond pragram.
Springer, discussed options to eliminate the debt service tax rate increase. Optians include
extending the implementation of the 2014 bond election from six ta seven years, reducing each
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year sale by about 3 million, or cash funding some of the program instead of issuing debt.
Springer also discussed the option to cash fiind a portion of the City's annual vehicle
replacement, instead of issuing debt for all of these replacements. Committee members asked
questions and held discussion regarding the history of the City's vehicle replacements and the
concept of a vehicle replacement fund.
Council member, Joey Hawkins made a motion to recommend the presentation on cash funding of
city vehicles be presented to the full City Council. Mayor, Chris Watts seconded the motion. Motion
carried unanimously
3. Receive a report, hold a discussion, and give staff direction regarding a proposed contract
with First Southwest Asset Management, LLC (FSAM) for investment advisory services.
Tony Puente, Assistant Director of Finance, presented a recommendation to take the First Southwest
Asset Management contract to City Council for consideration. This contract requires a renewal every
two years. Other firms can provide investments, but not the security clearing services that First
Southwest provides to the City.
Mayor, Chris Watts made a motion to recommend a proposed contract with First Southwest Asset
Management for investment advisory services to City Council for approval. Council member, Joey
Hawkins seconded the motion. Motion carried unanimously.
4. Receive a report, hold a discussion, and give staff direction regarding proposals for bank
depository services (RFP #5962).
Puente stated that every five years the City is required by state law to seek proposals for banking
services. The current contract is with Wells Fargo bank. The City's received two proposals in the
RFP process, one from Wells Fargo Bank and the other frorn JP Morgan Chase. Wells Fargo was
the lowest cost in comparison of the two.
Mayor, Chris Vdatts made a rnotion to recommend to awarding bank depository services to Wells
Fargo Bank to the City Council. Council mernber, Joey Hawkins seconded the motion. Motion
carried unanimously.
5. Receive a report, hold a discussion, and give staff direction regarding proposals for credit
card and check processing services (RFP #5955).
Puente gave a brief summary of the proposals received for credit card and check processing services.
He explained the City's current credit card terminals do not have the newly required chip technology.
Wells Fargo proposed that it will be the same equipment as used by major retailers, so customers will
be familiar when using the rnachines. The City's current vendor Elevon did not submit an RFP
response by the response deadline.
Council member, Joey Hawkins made a motion to recornmend Wells Fargo for credit card and check
processing services to the City Council. Mayor, Chris Watts seconded the motion. Motion carried
unanimously.
6. Under Section 551.042 of the Texas Open Meeting Act, respond to inquiries from the
Audit/Finance Committee or the pablic with specific factual information or recftatfon of
policy, or accept a proposal to place the matter on the agenda for an upcoming meeting
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Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of
community interest regarding whfch no action will be taken, to include: expressions of
thanks congratulations or condolence; information regarding holfday schedules; an
honorary or salutary recognition of a public offcial, public employee, or other citizen; a
reminder about an upcoming event organized or sponsored by the governing body;
information regarding a social, ceremotual, or community event organnzed or sponsored by
an entity other than the governing body that was attended or fs scheduled to be attended by
a member of the governing body or an official or employee of the municipality; or an
announcement involving an imminent threat to the public health and safety of people in the
municipalfty that has arfsen after the posting of the agenda.
With no additional business to be addressed, the Committee adjourned at 11:54 a.m.
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JOEY HA'V'JI�1N. f�lt 5`�"Y t;�T)i�M �
COMMITTEE CHAIR � RECORDING SECRETARY
CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS