Travis County Commssioners Court
March 4, 2003
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Item 11
11. Consider interlocal cooperation agreement with the city of manor for the reconstruction of blake manor road within the corporate limits and take appropriate action. My one question about this was the precedent setting part where we get $90,000 up front and basically get paid the 10 -- over 10 years the -- the 210,000. That's a lot of money for us to advance and a long time for them to pay it back.
>> I understand. That's why I put it on the agenda for discussion. I don't know if you want to go there or not.
>> have we ever done something like this.
>> never.
>> never.
>> why is it a good idea for us, I guess.
>> just to enable the city of manor who is not a wealthy community to pay for an important improvement that stretch of roadway, it's fairly important to the overall project. The county does not improve roads within cities. This will enable them to do that, to go ahead and take care of it. But they are also looking for a way to pay for it. They are telling us they don't have the money. But this would help them pay for it over time. I understand there's a precedent.
>> my problem is that Mustang Ridge had a similar situation all of a sudden we are in the road mortgaging business.
>> that is the issue.
>> I didn't see anything in here that said what is the enforcement action. Just that they agree to pay it out every October first and it's like and if they don't, what is our security? It's not like we can take the road back. This is an awful lot of road and I think there are a lot of municipalities that are in far more serious shape. We just created two ones with elections in the last couple of weeks. I have some serious issues about an interest-free debt that right now the city of manor may have some difficulties, I believe that because the [inaudible] hasn't hit there. But in three years the city of manor will have sh 130 in its back yard, their financial condition may radically change, their ability to pay my radically change and I don't want to get into the financing business on these roads.
>> this could be a monumental moment for me, actually being against a road. [laughter]
>> road financing.
>> the road financing.
>> we are find with the road. We are absolutely for this road.
>> the overriding issue is here what is being asked of us. No, ma'am the length of time, the -- not only the length of time, the precedent setting aspect of this thing, then the whole liability. How do we -- this is a tough deal for me to sign-off on.
>> why don't we suggest they issue bonds in the amount of $210,000, it would take three or four months to get that done, pay us, take 10 years to pay off the debt.
>> I can certainly do that.
>> that would be my recommendation. Is there a motion to approve this?
>> put it on the agenda --
>> I think we ought to tell them that we really want to work with them, we can advance them the cash, but we will need back this fiscal year san antonio only or alternative it seems to me is for this to issue debt in the amount of $210,000, as soon as they get that, pay us in full and then issue the five or 10 year debt as they see appropriate.
>> judge, that's that stretch of road right there's a new subdivision called hamilton's point. It's right there from the front of that little subdivision all the way down to I guess 973. About 1500 feet. In discussing that, this particular issue, at the time we discussed it with the folks of manor, the mayor, folks like that, they were stretched out at that time, but there has been a lot of subdivisions. Their tax base should be increasing with the new subdivisions that are coming online. And I know -- I told joe, I know this is a situation, but he requested, the mayor requested this and that we bring it forward. It is a press department setting situation. However, precedent setting situation. However, I looked at this as far as a matter of trying to -- to get the new stretch of road taken care of. However, with no incentives in there as far as interest, anything like that. 10 year deal, for what, $21,000 a year for 210,000, we haven't done anything like this before, and there were nothing in the interlocal agreement. I brought this up with joe, in this situation there is nothing in there percentage based situation if you want to pay us back in three years, at a certain percentage increase as far as against that particular work that we would be doing. A lot of these things had not been discussed out, nor flushed out. But of course our -- we brought this back for discussion purposes only.
>> may I --
>> I appreciate that.
>> discussion purposes only to see exactly what the --
>> there's another alternative here that I don't think has been flushed out. And that is that the city of manor is I'm going to say it, they are part of capital metro's service area. There's a pot of funds, approximately 21 million dollar, as part of their regional mobility fund specifically for roads that are of a regional significance and nature. The city of manor has the ability, like any other capital metro partner to go and seek parts of those dollars. That is just for the ones outside of the city of Austin. The city of Austin has its own pot of the regional mobility fund. I would highly encourage them to go seek some of that money that they have been paying in on since --
>> that's the second suggestion.
>> that's a good points.
>> the other suggestion might be that they consider just getting out of capital metro altogether, taking the one penny sales tax and doing the roads too that's a good idea.
>>
>> that's a good idea. [laughter]
>> full of suggestion smoos we are not rich on money, but rich on ideas. [laughter]
>> joe, who are you contacting --
>> they have a city council meeting tomorrow. I will contact the mayor today.
>> okay.
>> let them know that in writing.
>> yeah, yes yeah in writing. Then let me know what happens on this that, on these suggestion that's we brought up.
>> I would say no action --
>> no, no action, no, no, no.
Last Modified: Wednesday, April 2, 2003 10:25 AM