HomeMy WebLinkAboutCC 2005-07-05 Minutes
MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE
CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN
THE PRE-COUNCIL ROOM IN THE NORTH RICHLAND HILLS
CITY HALL, 7301 NORTH EST LOOP 820 - JULY 5,2005 - 5:00 P.M.
1.
CALL TO ORDER
Mayor Trevino called the work session to order at 5:00 p.m.
Present:
Oscar Trevino
Timothy J. Welch
Jo Cox
Suzy Compton
JoAnn Johnson
David Whitson
Nancy Bielik
Staff Members:
Larry J. Cunningham
Richard Torres
Ogden Bo Bass
Karen Bostic
Patricia Hutson
Larry Koonce
Drew Corn
Mary Edwards
Richard Abernethy
Ann Fuller
Margaret Ragus
Absent:
John Lewis
Mayor
Mayor Pro Tem
Councilwoman
Councilwoman
Councilwoman
Councilman
Councilwoman
City Manager
Assistant City Manager
Assistant City Manager
Managing Director Administrative/Fiscal Services
City Secretary
Director of Finance
Budget Director
Public Information Officer
Assistant to City Manager
Auditor/Financial Analyst
Budget Analyst
Councilman
2.
DISCUSS PLANNING AND PROGRAM OF SERVICES
FOR FISCAL YEAR 2005/2006
Mayor Trevino advised that the budget being presented was a preliminary budget and
not the final budget. Staff will be presenting a balanced budget to the Council at a later
date.
City Manager Cunningham outlined the agenda. Mr. Cunningham advised staff would
be providing information regarding the City's 2005/2006 preliminary budget, information
on some pressing issues and financial matters affecting the City's program for the next
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July 5, 2005
Page 2 of 5
twelve to eighteen months. Staff will also be updating Council on the planning progress
of the current fiscal year.
Councilwoman Cox present at 5:07 p.m. and Councilwoman Johnson present at 5:08
p.m.
The Mayor reiterated that budget information being presented is preliminary.
Ms. Karen Bostic, Managing Director of Fiscal and Administrative Services, discussed
the importance of fund balances and briefly reviewed the definitions of each of the
funds.
Mr. Larry Koonce, Finance Director, presented information on the fiscal year beginning
fund balances for the operating and capital budgets.
Ms. Bostic highlighted the current year revenue and expenditures.
Mr. Drew Corn, Budget Director, reviewed the 2004/2005 revised vs. adopted budget
revenues and expenditures and highlighted the major changes impacting the revenues
and expenditures.
Mr. Koonce provided Council with information on the preliminary tax roll for 2005/06 and
the distribution of tax revenues. Mr. Koonce explained the effective tax rate and the
calculation of the effective tax rate.
Mr. Corn reviewed the 2005/06 preliminary estimated revenues and expenditures and
highlighted major changes impacting the revenues and expenditures.
Staff presented Council with upcoming issues. Mr. Torres provided information on
growth in library materials. The current library is approximately 31,000 square feet and
houses approximately 170,000 volumes. The current size of the facility and budget
constraints only allows a growth in library materials to 180,000 volumes. Issues for
consideration are 1) Should the size of the library collection be increased; 2) Should the
new Library open at capacity or should the new library open with room to grow; and 3)
Should a book fund be created to increase the number of volumes in time for the new
library opening.
Mayor Trevino questioned that the entire library collection would be moved to the
new library. Mayor Trevino envisioned a branch library remaining on the south
side of the loop with a percentage of the books housed at the branch library.
Council agreed that the new library should open with room for growth and that
Staff needed to work on plans for a south branch. It was agreed that staff should
also begin working with the Library Board to identify sources of funding and
strategies to increase the volume of library materials. It was also suggested that
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July 5,2005
Page 3 of 5
alternative ways to raise money be considered - i.e., a Starbucks or other type of
public/private partnership within the Library.
RECESS & BACK TO ORDER
Mayor Trevino recessed the work session at 6:16 p.m. and called the work session back
to order at 6:29 p.m. with the same members present.
Mr. Torres provided information on the need to reconstruct the golf greens at Iron
Horse. The cost to reconstruct the greens and miscellaneous maintenance is estimated
at $100,000. Staff is recommending the expense be financed with 4B sales tax funds,
and if approved, it would be included in the 2005/06 budget. The project will require
closure of the golf course from July 2006 to September 2006 and net loss of revenue is
projected at $451,453. Issues for consideration are 1) Is the Council supportive of using
sales tax (4B) funds to pay for the greens reconstruction; 2) Is the Council supportive of
using sales tax (4B) funds to pay for loss revenue; and 3) Is re-prioritization of parks
projects an option to assist the golf course.
The majority of the Council was supportive of using the 4B funds for the golf
course. Councilwoman Cox expressed concerns with the course not being self-
supportive if 4b funds are used.
Mr. Torres presented information on proposed contract with Evergreen Alliance Golf
Limited, L.P. (EAGL) for golf course maintenance services. Current contract expires
December 2005. Staff feels it will be in the City's best interest to renegotiate a new
contract with EAGL. The potential terms of a new contract with EAGL would include a
new profit sharing partnership approach, renewal would be contingent on greens
reconstruction project and a three-year contract is proposed to coincide with the City's
fiscal year. Issues for consideration are 1) Is Council supportive of considering a new
contract with EAGL; 2) If so, can staff begin negotiations; and 3) Are there particular
terms Council would be interested in including.
Council was in favor of staff beginning the renegotiating of a new contract with
EAGL and the proposed terms presented by staff. Councilwoman Bielik advised
she also would like to know the terms of other cities' contracts.
Mr. Torres presented information on options for north/south recreation center facilities.
The purpose is to discuss options for initiating a study for recreation center facilities and
possibly expediting the process for decision making. There are several uncertainties as
to the construction of a new facility in Home Town and the feasibility of locating a
smaller recreation center on the south side of the City. Staff would like to hire a
recreational facility planner to prepare a feasibility study of all options and costs. Issues
for consideration are 1) Is Council supportive of studying recreational facility
opportunities in both north and south areas of the City; and 2) Should the timeline be
moved up for opening new facilities and if so, how much.
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July 5, 2005
Page 4 of 5
Council was supportive of the study, but felt that the study should be delayed
because of the tight budget. Council agreed that if new information became
known during the year Staff is to bring the item back for reconsideration.
Mr. Torres presented information on natural gas exploration. Gas companies have
expressed an interest in drilling in North Richland Hills. State law allows for drilling in
city limits but provides for adoption of local ordinances to further regulate health and
safety issues. Major issues for consideration are 1) Should staff prepare an ordinance
for consideration that would ensure North Richland Hills residents are protected should
gas drilling occur in the City; 2) Should the ordinance be part of the Code of Ordinances
or Zoning Ordinances; and 3) Should the Council instruct staff to initiate the leasing of
mineral rights held by the City and allow natural gas drilling on city property.
Council recalled that the exploration of gas drilling on city property had been
discussed during the past year's goals work session and was one of the action
items. Council reconfirmed their desire for Staff to proceed with preparing an
ordinance for consideration and to explore the leasing of mineral rights and
drilling on city property. Council also agreed that the ordinance should be in the
Code of Ordinances and not the Zoning Ordinance.
Ms. Bostic presented information on outsourcing of city programs. The City has
outsourced the mowing of parks and other city property, garbage collection, ambulance
billing and collection, property tax collection, preventive street maintenance, printing and
mailing of utility bills, lockbox utility collection service and golf course management.
Issues for consideration are 1) What other areas of outsourcing would Council be willing
to explore; and 2) What cost-saving threshold would be reasonable for considering
outsourcing.
The majority of the Council was not in favor of outsourcing if it would mean the
laying off of employees. Council was only supportive of outsourcing when it
would be beneficial to the city and any reduction in staffing could be done
through attrition.
Staff presented updates on ongoing projects. Mr. Koonce provided an update on the
Internal Service Plans and Utility Rate Study. Council was advised that preliminary
cash flow analysis indicates that debt issuance will be needed in 2006 for an aerial
ladder truck, ambulance, two dump trucks, backhoe, and roller. The utility rate study
and proposed rates are scheduled to be presented to Council at the July 25 meeting.
The fiscal year 2006 proposed Utility Fund Budget to be presented at the July 29 and 30
budget work session will include the proposed rates and pass through rates. Mr. Bass
presented information on the Long Range Utilities CIP and the Animal Shelter
Expansion. Staff will be issuing a request for qualifications for a professional services
contract to assist with fundraising for the shelter expansion. Mr. Torres presented the
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July 5, 2005
Page 5 of 5
NRH20 Strategic Master Plan and Mr. Koonce presented information on the Tax
Increment Reinvestment Zones 1 and 2.
Mr. Corn reviewed the budget calendar and key dates.
3.
ADJOURNMENT
Mayor Trevino adjourned the work session at 8:38 p,m.
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