Loading...
HomeMy WebLinkAboutCC 2006-06-26 Agendas . . . . A.O CITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY HALL PRE-COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS ~-_:_- Monday, June 26, 2006 (, 6:00 P.M. Discuss Items from Regular è-¡ty'Council Meeting B.1 IR 2006-074 Review NRH20 Marketing Efforts (15 minutes) B.2 IR 2006-076 Update on Water Conservation Plan; Good Water Usage (15 minutes) C.O EXECUTIVE SESSION C.1 Executive Session Pursuant to Sec. 551.071, Texas Government Code to Consult with Attorney to Seek Advice about Pending Litigation: Jacobson v City of North Richland Hills, et al. C.2 Executive Session Pursuant to Sec. 551.071, Texas Government Code to Consult with Attorney to Seek Advice about Pending Litigation: Laura Friend v City of North Richland Hills D.O ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on June 22, 2006 at Lj.'J-ð/JrY1. , L/aI-¿¡(Vti~ City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. . . CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, June 26, 2006 7:00 P.M. --------------~---------------------------------------------------------------------------------------------------------- Copies of the full City Council agenda information packet are accessible prior to every regularly scheduled Monday Council meeting according to the following locations and schedule: D Library on the Friday prior to the meeting (available electronically) D City Hall on the day of the meeting (hard copy available) Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 5:00 p.m. on the Friday prior to every regularly scheduled Council meeting. ---------------------------------------------------------------------------------------------------------------------------- A.O . A.1 A.2 A.3 Call to Order - Mayor Oscar Trevino Invocation - Councilman Sapp Pledge - Councilman Sapp Special Presentation(s) and Recognition(s) - Proclamation National Parks and Recreation Month - Presented by Councilman Welch A.4 Special Presentation(s) and Recognition(s) - Keep NRH Beautiful Yard of the Month Winners - Presented by Keep NRH Beautiful Commission Member David Webb and Councilwoman Compton A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Councilor another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. A.6 Removal of Item(s) from Consent Agenda . . . . B.O CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of June 12, 2006 City Council Meeting B.2 PU 2006-046 Award Bid for Annual Contract to Print Various City Newsletters and Brochures - Resolution No. 2006-050 B.3 PU 2006-047 Award of Bid to Dean Construction in the Amount of $558,974.80 for the Construction of the South Electric Trail Project - Resolution No. 2006-051 B.4 GN 2006-056 Execute Change Order #1 to the Construction Contract with American Civil Constructors, Inc. for the Walker's Creek Multi-Use Trail Project in the Amount of $37,779.32 - Resolution No. 2006-053 C.O PUBLIC HEARINGS No items for this category. D.O PLANNING AND DEVELOPMENT No items for this category. E.O PUBLIC WORKS No items for this category. F.O GENERAL ITEMS F.1 GN 2006-053 Denial of 2005 Interim Rate Adjustment Proposed by Atmos Energy Corporation, Mid-Tex Division - Ordinance No. 2890 F.2 GN 2006-054 Denial of Request For a Rate Increase by Atmos Energy Corp., Mid-Tex Division Filed on May 31, 2006 - Ordinance No. 2891 F.3 GN 2006-055 Consider Approval of Policy on Uses of Revenues from Gas Exploration/Production - Resolution No. 2006-052 F.4 GN 2006-050 Appointment to CIP Committee F.5 GN 2006-051 Appointments to Boards & Commissions F.6 GN 2006-052 Appointment of Board Delegate to Reinvestment Zone Number 1 and Reinvestment Zone Number 2 . . . .. F.7 GN 2006-057 Appointments to Animal Control Shelter Advisory Committee - Places 2 and 4 F.8 GN 2006-058 Appointments to Park and Recreation Facilities Development Corporation - Places 1, 3, 4, 5 & 7 F.9 Information and Reports - Mayor Pro Tem Lewis F.10 Adjournment All items on the agenda are for discussion and/or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on June 22,2006 at ¿¡,'J? pm. . ~ðt~~ City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. .- . . . A.O B.1 B.2 C.O C.1 City of North Richland Hills City Council Work Session Meeting Agenda North Richland Hills City Hall Pre-Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, June 26, 2006 6:00 P.M. Discuss Items from Reqular City Council Meetinq IR 2006-074 Review NRH20 Marketinq Efforts (15 minutes) IR 2006-076 Update on Water Conservation Plan: Good Water Usaqe (15 minutes) EXECUTIVE SESSION Executive Session Pursuant to Sec. 551.071, Texas Government Code to Consult with Attorney to Seek Advice about Pendinq Litiqation: Jacobson v City of North Richland Hills, et al. C.2 Executive Session Pursuant to Sec. 551.071, Texas Government Code to Consult with Attornev to Seek Advice about Pendinq Litiqation: Laura Friend v City of North Richland Hills 0.0 ADJOURNMENT . . . DepartmentCity Secretary Presented by: CITY OF NORTH RICHLAND HILLS Council Meeting Date:6-26-2006 Agenda NO.A.O Subject: Discuss Items from Regular City Council Meeting . . . INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2006-074 Date: June 26, 2006 Subject: Review NRH20 Marketing Efforts Elizabeth Copeland, NRH20 Marketing Coordinator will present a PowerPoint presentation on the marketing efforts at NRH20 including branding philosophy, radio and television spots, special promotions and special events designed to increase attendance at the park. Many of the recent marketing efforts are recommendations from the updated NRH20 Strategic Plan. Respectfully Submitted, Vickie Lattice Director of Parks and Recreation ..... ISSUED BY THE CITY MANAGER NORTH RICHlAND HillS, TEXAS - -I INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2006-076 Date: June 26, 2006 Subject: Update on Water Conservation Plan; Good Water Usage On June 20, 2006, the Trinity River Authority (TRA) called a special meeting with its customer cities (Euless, Bedford, Colleyville, Grapevine and North Richland Hills) to discuss water conservation. Water conservation has become a high priority due to the existing severe drought conditions that North Texas is currently experiencing. Water supplies are being impacted by the drought and TRA believes that its customer cities need to participate in a water conservation plan to provide adequate water service. Some of the highlights of the meeting concerning the drought and water supply conditions are noted below. - · Our area normally has on average 10 to 15 days of temperatures above 100 degrees. The National Weather Service is predicting 30 days or more of 100 degree days for this summer. · The National Weather Service has predicted that there will not be adequate precipitation to break the drought during the summer of 2006. · All area lakes are reporting below normal lake levels. Lake capacities are at 70- 81 % on average. · Our area needs more than 12 inches of precipitation to break the severe drought conditions. . Water demand is 25% above normal conditions. · Most of the Tarrant County cities are currently on mandatory or some type of water restrictions. At the meeting, the cities agreed to develop a water conservation method similar to the cities of Fort Worth and Arlington. Several of the cities attending the meeting also get their water supply from the City of Fort Worth as does North Richland Hills. These cities must adopt water conservation methods that meet the minimum conditions as listed in the Fort Worth plan. (Actually the City of North Richland Hills has a Water Conservation/Drought Contingency Plan & Water Rationing Implementation Plan in place now that was revised by City Council in May, 2005. It has similar provisions to the Fort Worth plan.) Under our water supply contract with Fort Worth, North Richland Hills must also adopt the minimum criteria of the Fort Worth ordinance. At this time, the TRA cities decided to adopt a portion of the Fort Worth Water Conservation Plan which consists of "prohibition on outdoor watering from 10 a.m. to 6 p.m. from June 1 to September 30, except with a hand-held hose or soaker hose". ..... ISSUED BY THE CITY MANAGER NORTH RICHlAND HillS, TEXAS - - . . . By adopting these hours of non-water usage, the surrounding cities will have similar water restrictions or water conservation methods in place. This should help alleviate any confusion for the citizens. All cities will have the same plan. North Richland Hills and the surrounding cities believe that this cooperative plan will help ensure that adequate water supply is available to all residents of the area. (The cities of Southlake and Keller have adopted similar water conservation ordinances at recent Council Meetings. ) North Richland Hills is required by the terms of our contract with Fort Worth, to adopt all of the Fort Worth water conservation methods Fort Worth anticipates that revisions will be made to their existing plan, but the non-water usage hours as noted above will not change. Fort Worth expects to have revisions made by the fall of this year and therefore North Richland Hills will need to adopt the entire plan by winter or spring. We encourage all efforts among our staff and customers to conserve water and to practice good water usage. The City will adhere to the water restrictions in the same manner as we require residential and commercial customers. Water is one of our most valuable natural resources, and the wise and efficient use keeps the water supply available for all people. Action is not required from Council at this time. The City Attorney believes that we already have an ordinance that will allow us to implement water restrictions consistent with those of the City of Fort Worth. However we will review the proposed ordinance that is being prepared for the TRA cities to see if it would be desirable to modify our existing ordinance any. We will be providing further information to Council on this matter in the next several weeks, as it is important for us to begin soon to implement the water restrictions as Fort Worth has required. Our objective will also be to thoroughly communicate with our customers about the needed restrictions through our newsletters, internet, utility bill inserts, public announcements, Citicable, media, and any other means possible. We will present an overview to Council at the worksession and will be prepared to respond to any questions. Respectfully submitted, Jimmy Cates Public Works Operations Manager . . . Department: City Secretary Presented by: Subject: EXECUTIVE SESSION CITY OF NORTH RICHLAND HILLS Council Meeting Date:6-26-2006 Agenda No.C.O . . . DepartmentCity Secretary Presented by: Subject ADJOURNMENT CITY OF NORTH RICHLAND HILLS Council Meeting Date:6-26-2006 Agenda No.D.O . . . A. 1 A.2 A.3 A.4 City of North Richland Hills City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, June 26, 2006 7:00 P.M. A.O Call to Order - Mayor Oscar Trevino Invocation - Councilman Sapp Pledae - Councilman Sapp Special Presentation(s) and Recoanition(s) - Proclamation National Parks and Recreation Month - Presented by Councilman Welch Special Presentation(s) and Recoanition(s) - Keep NRH Beautiful Yard of the Month Winners - Presented by Keep NRH Beautiful Commission Member David Webb and Councilwoman Compton A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Councilor another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. A.6 Removal of Item(s) from Consent Aaenda B.O CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of June 12, 2006 City Council Meetina B.2 PU 2006-046 Award Bid for Annual Contract to Print Various City Newsletters and Brochures - Resolution No. 2006-050 B.3 PU 2006-047 Award of Bid to Dean Construction in the Amount of $558,974.80 for the Construction of the South Electric Trail Proiect - Resolution No. 2006-051 . F.3 . F.4 F.5 F.6 8.4 GN 2006-056 Execute ChanQe Order #1 to the Construction Contract with American Civil Constructors, Inc. for the Walker's Creek Multi-Use Trail Proiect in the Amount of $37,779.32 - Resolution No. 2006-053 C.o PUBLIC HEARINGS No items for this category. 0.0 PLANNING AND DEVELOPMENT No items for this category. E.O PUBLIC WORKS No items for this category. F.O GENERAL ITEMS F.1 GN 2006-053 Denial of 2005 Interim Rate Adiustment Proposed bv Atmos Enerav Corporation, Mid-Tex Division - Ordinance No. 2890 F.2 GN 2006-054 Denial of Request For a Rate Increase by Atmos EnerQV Corp., Mid-Tex Division Filed on Mav 31, 2006 - Ordinance No. 2891 GN 2006-055 Consider Approval of Policv on Uses of Revenues from Gas Exploration/Production - Resolution No. 2006-052 GN 2006-050 Appointment to CIP Committee GN 2006-051 Appointments to Boards & Commissions GN 2006-052 Appointment of Board Deleaate to Reinvestment Zone Number 1 and Reinvestment Zone Number 2 F.7 GN 2006-057 Appointments to Animal Control Shelter Advisory Committee _ Places 2 and 4 F.8 GN 2006-058 Appointments to Park and Recreation Facilities Development Corporation - Places 1. 3. 4. 5 & 7 F.9 Information and Reports - Mavor Pro Tern Lewis F.10 Adiournment . . . . Department: City Secretary Presented by: CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda NO.Ä.O Subject: Call to Order - Mayor Oscar Trevino . . . Department: City Secretary Presented by: CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda No.A.1 Subject: Invocation - Councilman Sapp CITY OF NORTH RICHLAND HILLS . Department: City Secretary Presented by: Council Meeting Date: 6-26-2006 Agenda NO.Ä.2 Subject: Pledge - Councilman Sapp . . CITY OF NORTH RICHLAND HILLS . Department: Parks and Recreation Presented by: Councilman Tim Welch Council Meeting Date: 6-26-2006 Agenda No.A.3 Subject: Special Presentation(s) and Recognition(s) - Proclamation National Parks and Recreation Month - Presented by Councilman Welch . . . . . CITY OF NORTH RICHLAND HILLS PROCLAMATION WHEREAS, July is recognized as National Parks and Recreation Month by the National Recreation and Park Association; and WHEREAS, parks, recreation and leisure experiences provide opportunities for people to live, grow, and develop into contributing members of society; and WHEREAS, parks and recreation generates opportunities for people to come together and experience a sense of community through fun recreational pursuits; and WHEREAS, parks and recreation provides outlets for physical activities, socialization, and stress-reducing experiences; and WHEREAS, parks, playgrounds, nature trails, open spaces and recreation facilities make communities desirable places to live, work and play, contributing to economic vitality; and WHEREAS, parks, trails and open space provide a welcome respite from our fast paced, high-tech lifestyles while protecting and preserving our natural environment; and WHEREAS, parks and recreation touches the lives of individuals, families, groups, and the entire community which positively impacts upon the social, economic, health and environmental quality of our community, NOW, THEREFORE, I Oscar Trevino, Mayor of the City of North Richland Hills do hereby proclaim, the month of July as: "PARKS AND RECREATION MONTH" in the City of North Richland Hills and urge all citizens to celebrate by participating in one of the many leisure pursuits available in our city, by our NRPA Gold Medal Award Winning Parks and Recreation Department. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of North Richland Hills to be affixed this the 26th day of June, 2006. Oscar Trevino, Mayor CITY OF NORTH RICHLAND HILLS · · · Department: Neighborhood Services Presented by: David Webb / Councilwoman Compton Council Meeting Date:6-26-2006 Agenda No.A.4 Subject: Special Presentation(s) and Recognition(s) - Keep NRH Beautiful Yard of the Month Winners - Presented by Keep NRH Beautiful Commission Member David Webb and Councilwoman Compton Anne Kells, 6428 Devonshire James L. & Barbara Lockhart. 6700 Riviera Don & Rockie McCormick. 6633 Parkridae Dr. Lee & Mary Criaui. 5541 Misty Meadow James H. Miller, 7921 Creek View Dr. Chad Oberly, 7036 Payte Ln. Mike & Vickie Cooper. 8205 Thornhill Dr. Carey & Dyanne Lerew, 7017 Windhaven Rd. Robert L. Burns, 8425 Parkdale Dr. Business Landscape Winner Sparks, 5209 Rufe Snow AREA 1 AREA 2 AREA 3 AREA 4 AREA 5 AREA 6 AREA 7 AREA 8 AREA 9 . . . CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 6-26-2006 Agenda NO.A.5 Subject: Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Councilor another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. . . . Department: City Secretary Presented by: CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda NO.Ä.6 Subject: Removal of Item(s) from Consent Agenda CITY OF NORTH RICHLAND HILLS . Department: City Secretary Presented by: Council Meeting Date: 6-26-2006 Agenda No. B.O Subject: CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. . . CITY OF NORTH RICHLAND HILLS . Department: City Secretary Presented by: Patricia Hutson Council Meeting Date:6-26-2006 Agenda NO.B.1 Subject: Approval of Minutes of June 12, 2006 City Council Meeting Recommendation: To approve the minutes of the June 12, 2006 City Council meeting. . . . . . .. MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCil OF THE CITY OF NORTH RICHlAND HillS, TEXAS, HELD IN THE CITY HAll, 7301 NORTHEAST lOOP 820 - JUNE 12, 2006 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 1 ih day of June, 2006 at 5:45 p.m. in the Pre-Council Room prior to the 7:00 regular Council meeting. Present: Oscar Trevino John Lewis Tim Welch Ken Sapp Suzy Compton Tim Barth David Whitson Staff Members: Larry J. Cunningham Richard Torres Karen Bostic Patricia Hutson Monica Solko George Staples Mary Edwards John Pitstick Larry Koonce Mike Curtis Vickie Lottice Drew Corn Steve Brown Pat Murphy Richard Abernethy Absent: Scott Turnage Ogden Bo Bass Call to Order Mayor Mayor Pro Tem Councilman Councilman Councilman Councilman Councilman City Manager Assistant City Manager Managing Director Administrative/Fiscal Services City Secretary Assistant City Secretary City Attorney Public Information Officer Director of Planning & Development Finance Director Public Works Director Director of Parks & Recreation Budget Director Library Director Police Administrative Services Captain Assistant to the City Manager Councilman Assistant City Manager Mayor Trevino called the Work Session to order at 5:45 p.m. Ä.1 Discuss Items from Reaular City Council Meeting . . Agenda Item C.1, ZC 2006-04 and Agenda Item C.2, ZC 2006-07 - Mayor Trevino questioned if the zoning for both cases was approved, would the zoning meet the requirements of the Land Use Comprehensive Plan and City ordinances. Staff advised the zoning for the two cases was consistent with the Comprehensive Plan and City ordinances. Council was advised by Staff that a petition had been received in favor of the C-1 zoning, but that the original petition was still in effect and a vote of 6-0 would be needed to approve the zoning. Agenda Item B.1, May 22, 2006 Minutes - Council was advised that the City Secretary had made a correction to the May 22, 2006 minutes. Item F-6 had been corrected to reflect that Staffs recommendation was to award the bid for the mineral leases of Fossil Creek Park and Linda Spurlock Park to FSOC Gas Co., Ltd (Four Sevens Oil Co., Ltd) instead of the Harding Company. Council was asked to include the correction to the minutes with the motion to approve the Consent Agenda. B.1 IR 2006-068 Update on Library Desiqn Mr. Steve Brown, Library Director, introduced Mr. Craig Reynolds, BRW Architects, and other members of the library design team. Mr. Craig Reynolds presented a PowerPoint presentation updating the Council on the design of the project. Mr. Reynolds highlighted the site plan, floor plans and the exterior building elevations. Mr. Reynolds pointed out revisions made to the exterior elevations from the original design that was presented to Council several months ago. Mayor Trevino questioned whether the HomeTown Architectural Board had provided input in the architectural design of the building. Mr. Dan Quinto, Arcadia Realty and Executive Manager of HomeTown, advised that the project had been reviewed by HomeTown and suggested additional design features that could be incorporated to further enhance the project. Council discussed their desire for the building to compliment the surrounding area and expressed a desire for additional architectural features to be included in the bid process that would further enhance the building as well as the surrounding area. Staff advised Council of some add alternatives that were already being included in the bid process. After considerable discussion, Council consensus was for some of the additional architectural features discussed also be included as add alternatives to the bid. Council also directed the Library Director to convey to the Library Board Council's desires for their consideration during the bid process. B.2 Executive Session Mayor Trevino announced at 6:31 p.m. that the Council would adjourn to Executive Session as authorized by Chapter 551 of the Government Code to discuss the following: a) Personnel Matters as Authorized by Section 551.074 to Discuss Appointment of Municipal Court Judge and Alternate Judges and Establish a Salary for Such Term; b) Land Acquisition for Park as Authorized by Section 551.072 - Graham Ranch Area; and c) Land Acquisition as Authorized by Section 551.072 - Purchase of Easements and/or Rights-of-Way for Water System Improvements in the area North of . the Shady Oaks Addition. . . . C.O Adiournment The Mayor announced at 6:59 p.m. that the Executive Session would recess to the regular Council meeting and would reconvene following the Council meeting. REGULAR COUNCIL MEETING A.O CALL TO ORDER Mayor Trevino called the meeting to order June 9, 2006 at 7:07 p.m. ROLL CALL Present: Oscar Trevino John Lewis Ken Sapp Suzy Compton Tim Barth David Whitson Tim Welch Mayor Mayor Pro Tern Councilman Councilwoman Councilman Councilman Councilman Staff: Larry J. Cunningham Richard Torres Patricia Hutson Monica Solko George Staples City Manager Assistant City Manager City Secretary Assistant City Secretary Attorney Absent Scott Turnage Ogden Bo Bass Councilman Assistant City Manager A.1 INVOCA TION Councilman Whitson gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilman Whitson led the pledge of allegiance. . . . A.3 SPECIAL PRESENT A TION(S) AND RECOGNITION(S) None. A.4 CITIZENS PRESENTATION Ms. Laverne O'Steen, 8429 Emerald Circle, presented letter dated May 16, 2006 from FEMA addressed to Mike Curtis, Public Works Director. Ms. O'Steen advised that the City faxed to FEMA, at FEMA's request, a copy of the city issued Flood Plain Development Permit for Emerald Lakes Subdivision. The permit was missing the signature of the flood plain administrator and FEMA asked the City to sign the original permit or to develop another permit using current forms and procedures. Mayor Trevino asked Ms. O'Steen if she also received from FEMA another letter from FEMA and asked what the letter stated. Ms. O'Steen advised that she did receive a second letter from FEMA, but did not have a copy with her. Mr. Mike Curtis, Public Works Director, read the letter from FEMA dated May 12, 2006 to Ms, O'Steen from Dale Hoff. The letter advised that "the City properly allowed the development in question to be built and that all provisions of the community's flood damage prevention ordinance and the regulatory requirements of the National Flood Insurance Program have been met." The letter also advised that if the walls are deteriorating or are structurally unsound, then Ms. O'Steen should seek the assistance of those who have the responsibility to make the repairs. Mayor Trevino moved Agenda Item F. 7 to this point in the agenda - Information and Reports: Report on May 22, 2006 Citizen Presentation. F.7 INFORMATION AND REPORTS REPORT ON MAY 22, 2006 CITIZEN PRESENTATION Mr. Staples, Attorney for City, read a memo he sent to Mayor Oscar Trevino dated June 5, 2006 addressing Laverne O'Steen's May 22, 2006 Citizen Comment. The letter stated: "Mrs. O'Steen gave you a copy of a May 16, 2006 letter from a FEMA official to Public Works Director Mike Curtis which reflects that FEMA requested and was provided copies of material from city files and that the copy of the 1992 flood plain permit issued by the city was unsigned. That letter also reflects that the permit was issued by the city and FEMA issued a Letter of Map Revision (LOMR) in 1994 based on the permit after the construction was finalized. . . . Nothing within Chapter 102 of the City's Code of Ordinances requires a signature, although § 102.63 contemplates that the city's flood plain administrator will approve such permits. It is possible that the original of the permit was signed and the copy contained in the city's files was not. Since FEMA issued the LOMR based upon compliance of the as-built project with the city issued permit which was in turn based on engineering plans prepared and submitted by the developer's engineers, this unsigned copy is of no significance since it was merely a vehicle for the issuance of the LOMR. Mrs. O'Steen failed to furnish you a copy of the May 12, 2006 letter from the same FEMA official opining that the city acted properly and that the issue of repairs to the retaining wall about which Mrs. a'Steen has been complaining should be addressed to those who have the responsibility for making the repairs. It is quite clear that Mrs. O'Steen's homeowner's association has the responsibility for repairing and maintaining that wall and that the city and its taxpayers have none. The correspondence from FEMA confirms my previous advice that there have been no violations of the city's charter and that the lake was properly permitted. " A.4 CITIZENS PRESENTATION (Continued) Mr. Bill Craycraft, 8300 Euclid Avenue, spoke on recent vandalism in HomeTown and requested that nightly patrols be increased in the addition. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.O APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF MAY 22, 2006 CITY COUNCIL MEETING. B.2 FP 2006-03 CONSIDERATION OF A REQUEST FROM STERLING PROPERTIES FOR APPROVAL OF A FINAL PLAT OF LOT 2. BLOCK 11 BRENTWOOD ESTATES ADDITION AND DETENTION MAINTENANCE AGREEMENT (8500 BLOCK OF DAVIS BOULEVARD). B.3 PW 2006-016 APPROVE THE ABANDONMENT OF A PORTION OF A SANITARY SEWER EASEMENT LOCATED WITHIN BRENTWOOD ESTATES, . . . B.4 BLOCK 1, LOT 2 AND AUTHORIZE THE CITY MANAGER TO EXECUTE A QUITCLAIM DEED - ORDINANCE NO. 2888 PW 2006-017 AWARD OF BID TO JLB CONTRACTING, LP, IN THE AMOUNT OF $655,910.84 FOR THE CONSTRUCTION OF THE SIMMONS DRIVE (MID CITIES BOULEVARD TO GRAND AVENUE) PROJECT GN 2006-047 APPROVE AGREEMENT WITH TARRANT COUNTY TAX ASSESSOR/COLLECTOR FOR THE COLLECTION OF CITY PROPERTY TAXES - RESOLUTION NO. 2006-048 B.5 COUNCILMAN WHITSON MOVED TO APPROVE THE CONSENT AGENDA, WITH CORRECTION TO MAY 22, 2006 MINUTES AS PRESENTED EARLIER DURING THE WORK SESSION - ITEM F-6 REVISED TO REFLECT THAT STAFF RECOMMENDED AWARD OF BID TO FSOC GAS CO., LTD (FOUR SEVENS OIL CO., L TO). COUNCILMAN WELCH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. Mayor Trevino advised that Executive Session had been recessed earlier in the evening and that at the conclusion of the regular council meeting, Council would reconvene in Executive Session. Following Executive Session, Council will return to the Council Chambers in open meeting, take any action if necessary, and adjourn. PUBLIC HEARINGS C.1 ZC 2006-04 CONTINUATION OF PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM ROYAL BUILDING CORPORATION AND COMIS DEVELOPMENT CORPORATION FOR A ZONING CHANGE FROM "AG" AGRICULTURAL TO "R-2" RESIDENTIAL (LOCATED IN THE 6800 BLOCK OF SIMMONS ROAD - 2.1759 ACRES) ORDINANCE NO. 2880 APPROVED Mayor Trevino announced that the Public Hearing was opened at the May 8, 2006 Council meeting and was continued to the June 12th meeting. Nature of item is to consider rezoning a 2.1759 acre tract from "AG" Agricultural to "R-2" Residential. The zoning will require a minimum of 9,000 square foot lots and 2,000 square foot minimum houses. The proposed zoning is consistent with the Comprehensive Plan. A preliminary plat has been approved by the Planning and Zoning Commission consisting of seven R-2 residential lots. An existing single-family structure and out-buildings located in the middle of the tract will be removed with the platting of the tract. The Planning & Zoning Commission recommended approval on April 20 by a vote of 7-0. The request was originally brought before Council on May 8, . 2006 with a petition of opposition requiring a super majority vote for approval. Staff recommends approval of ZC 2006-04 and Ordinance No. 2880. Mr. Mark Comis, applicant, presented the zoning request and was available to answer questions from the Council. Mr. Comis advised that he had obtained a petition of support signed by 16 property owners; 14 residing on Simmons Road, and a letter from the Smiths and Patty Musch requesting to be removed from the original petition of opposition. The petition and letters have been submitted to Staff. Attorney Staples advised that the first petition was still valid and that to approve the request a super majority vote was still required by Council. Mr. John Pitstick, Director of Planning & Development, summarized the item and presented the recommendations of the Planning & Zoning Commission and Staff. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. Ms. Patricia Stewart, 8708 Stewart Drive, spoke against the zoning request. Ms. Stewart was in favor of one house per acre. Mr. David Cole, 9139 Grapevine Highway, Suite 540, spoke in favor of the request. Mr. Cole advised that he owned two acres along Amundson and asked Council for a vote of . approval. Mr. and Mrs. Emile Muzquiz, 8713 Copper Canyon Road, spoke against the request. Mr. and Mrs. Muzquiz preferred fewer homes on the property. Mr. Ralph Schwab, 8713 Stewart Drive, advised he was not against building houses on the property, but wanted one house per acre. David and Kathy Marthe, 8620 Amundson, owners of the property, requested Council to approve the request. There being no one else wishing to speak, Mayor Trevino closed the Public Hearing. COUNCILWOMAN COMPTON MOVED TO APPROVE ZC 2006-04, ORDINANCE No. 2880. MA VOR PRO TEM LEWIS SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. . C.2 ZC 2006-07 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM ROYAL BUILDING CORPORATION AND COMIS DEVELOPMENT CORPORATION FOR A ZONING CHANGE FROM "AG" AGRICULTURAL TO "R-1" RESIDENTIAL . (LOCATED IN THE 8800 BLOCK OF RUMFIELD ROAD - 1.31 ACRES - ORDINANCE NO. 2885 APPROVED Mayor Trevino opened the Public Hearing. Nature of item is to consider a zoning request to rezone a 1 .31 acre tract from "AG" Agricultural to "R-1" Residential for the purpose of developing a two-lot subdivision. The proposed zoning is consistent with the Comprehensive Plan. The Planning and Zoning Commission recommended approval on May 18 by a vote of 5-0. Staff is recommending approval of ZC 2006-07 and Ordinance No. 2885. A petition of opposition has been received and a super majority vote will be required by Council for this zoning case to be approved. Mr. Mark Comis, applicant, presented the item and was available to answer questions from the Council. Mr. John Pitstick, Director of Planning and Development, summarized the item and presented the recommendations of the Planning and Zoning Commission and Staff. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. . There being no one wishing to speak, Mayor Trevino closed the Public Hearing. COUNCILMAN SAPP MOVED TO APPROVE ZC 2006-07, ORDINANCE No. 2885. COUNCILMAN BARTH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. C.3 GN 2006-043 PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE NORTH RICHLAND HILLS SUBDIVISION ORDINANCE TO REQUIRE COMPLETENESS REVIEW OF DEVELOPMENT APPLICATIONS FOR THE PURPOSE OF DETERMINING THE EFFECTIVE DATE OF VESTED RIGHTS UNDER CHAPTER 245 OF THE TEXAS LOCAL GOVERNMENT CODE - ORDINANCE NO. 2886 APPROVED Nature of item is to consider amendment to the Subdivision Ordinance requIring a completeness review of development application for the purpose of determining the effective date of vested rights under Chapter 245 of the Texas Local Government Code. The statute allows developers to develop under ordinances in effect at the time the developer makes application. The City's authority is reinforced by the statute to require . that any plat, development plan or zoning application be complete before the provisions . . . of the Zoning Ordinance go into effect. The City has ten days to review and accept all applications. There will be a designated vested rights date shown in the case study whenever preliminary plats, final plats, site plans, special use permits or planned developments are presented to the Planning and Zoning Commission or City Council to make it clear to all parties when development rights have been established.. The Planning and Zoning Commission reviewed the changes on May 18 with the City Attorney and Staff, conducted a public hearing on June 1 and approved the revisions to the Subdivision Ordinance by a vote of 5-0. Mayor Trevino opened the Public Hearing. Mr. John Pitstick, Director of Planning and Development, presented the item and answered questions from the Council. Council was advised that Staff is reviewing additional minor revisions to the Subdivision Ordinance that will be brought to Council later for approval. Mayor Trevino called for those wishing to speak for or against the proposed ordinance to come forward. There being no one wishing to speak, Mayor Trevino closed the Public Hearing. COUNCILMAN WELCH 'MOVED TO APPROVE ORDINANCE No. 2886. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. C.4 GN 2006-045 PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE NORTH RICHlAND HillS SUBDIVISION ORDINANCE TO REQUIRE ADEQUATE PUBLIC FACiliTIES FOR DEVELOPMENT AND ESTABLISHING A PROCEDURE FOR DETERMINATION OF ROUGH PROPORTIONALITY OF DEVELOPER EXACTIONS FOR SUCH FACiliTIES. - ORDINANCE NO. 2887 APPROVED The proposed ordinance will amend the Subdivision Ordinance to require adequate public facilities for development and establish a procedure for deter~ining rough proportionality. The statute requires that if a municipality requires a developer to pay a portion of the cost of municipal infrastructure improvements by dedicating property, paying fees or paying construction costs, a licensed professional engineer retained by the municipality will determine the amount required for the improvements that are roughly proportionate to the proposed development. The licensed engineer will be the engineer in the Public Work Department. Water and sewer impact fees are exempt from the requirement and Park fees will not be affected by the amendment. The developer's share cannot exceed the amount determined to be roughly proportionate. A letter from the Public Works Department will accompany each plat describing each . . . development's rough proportional impact on the street and drainage system. The Planning and Zoning Commission and City Council will consider the City Engineer's report regarding the proportionality and may grant a variance to the requirements of the Subdivision Ordinance. Some plats will be accompanied by a developer's agreement that will describe specific requirements of the City and Developer. At the time of development, the developer will be responsible for constructing their proportional share of street and drainage impacts based on the City Engineer's report with concurrence by the Planning and Zoning Commission and the City Council. Mayor Trevino opened the Public Hearing Mr. John Pitstick, Director of Planning and Development, presented the item, summarized the issues and answered questions from the Council. Mr. Pitstick advised that the ordinance would go into effect June 15. Mayor Trevino called for anyone wishing to speak for or against the proposed ordinance to come forward. There being no one wishing to speak, Mayor Trevino closed the Public Hearing. MAYOR PRO TEM LEWIS MOVED TO APPROVE GN 2006-045, ORDINANCE No. 2887. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. D.O PLANNING & DEVELOPMENT There were no items for this category. E.O PUBLIC WORKS There were no items for this category. F.O GENERAL ITEMS F.1 GN 2006-046 U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES ADMINISTRATION FOR CHILDREN AND FAMILIES 2006 GRANT REQUEST, RESOLUTION NO. 2006-047 APPROVED . . . Resolution No. 2006-047 authorizes the City to execute a Family Resource Community Grant application to the U.S. Department of Health and Human Services Administration for Children and Families. The grant is a five-year grant that would begin on October 1, 2006. The City will file the application and be the grantee. A portion of the grant funding will be used to contract with Tarrant County Youth Collaboration to set up and initially manage the program in years 1 and 2 and the goal would be to gradually shift the management of the grant to Police Department personnel funded through the grant. The grant would create a pilot program that would develop and implement an alternative community response system to better assist families in need and to improve outcomes of children who are at risk for neglect and abuse. Police Captain Pat Murphy explained the purpose of the grant and answered Council questions. Mr. John Ross, Tarrant County Youth Collaboration, also discussed the grant and answered questions from Council. AFTER DISCUSSION BY THE COUNCIL, COUNCILWOMAN COMPTON MOVED TO APPROVE RESOLUTION No. 2006-047. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-1; MAYOR PRO TEM LEWIS, COUNCILWOMAN COMPTON, COUNCILMEN BARTH, WHITSON AND WELCH VOTING FOR AND COUNCILMAN SAPP VOTING AGAINST. F2. PU 2006-045 AWARD OF THE PROFESSIONAL SERVICES AGREEMENT TO LOPEZ GARCIA GROUP IN THE AMOUNT OF $43,000 FOR THE LAKES AT CALLOWAY CREEK STUDY- RESOLUTION NO. 2006-049 APPROVED Nature of item is to consider awarding a professional services agreement to study the feasibility of creating a lake or lakes or other attractive features at Calloway Creek and other improvements planned as part of the redevelopment of the North Hills Mall property. Staff is recommending the award of the agreement to Lopez Garcia Group in the amount of $43,000. Services to be provided by Lopez Garcia include 1) develop conceptual alternates for proposed channel improvements between Booth Calloway Road and Rodger Line Drive; 2) Prepare opinions of probably costs for each of the proposed channel alternatives; 3) conduct field surveys and a tree survey and perform necessary court house research; 4) develop hydrology models, update and revise flood profiles to reflect proposed alternatives; 5) determine permitting requirements from US Army Corps of Engineers, FEMA, and TCEQ (if required) to implement each of the proposed channel improvements alternatives; and 6) develop preliminary schedule for tasks required to implement each alternative. Ms. Vickie Lottice, Parks and Recreation Director, summarized the item and answered questions from the Council. . COUNCILMAN WELCH MOVED TO APPROVE PU 2006-045 TO AWARD THE PROFESSIONAL SERVICES AGREEMENT TO LOPEZ GARCIA GROUP IN THE AMOUNT OF $43,000 FOR THE LAKES AT CALLOWAY CREEK STUDY, RESOLUTION No. 2006-049. COUNCILMAN SAPP SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. F3. GN 2006-039 AUTHORIZING CITY MANAGER TO SIGN CONTRACT FOR ELECTRIC SERVICES RESOLUTION NO. 2006-040 APPROVED The Cities Aggregation Power Project (CAPP) of which North Richland Hills is a member has asked participating members to pass a resolution designating an individual to enter into a power contract on behalf of their City. This will allow CAPP member cities to act promptly and enter into a power contract under the most favorable terms. The proposed resolution will authorize the City Manager to sign an electric services contract when electric prices become favorable for the City's 2007 and 2008 electricity needs. Ms. Karen Bostic, Managing Director, presented the proposed resolution and explained . the purpose. COUNCILMAN WHITSON MOVED TO APPROVE GN 2006-039 AND RESOLUTION No. 2006-040. COUNCILWOMAN COMPTON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6-0. F4. GN 2006-048 APPOINTMENT OF MUNICIPAL COURT JUDGE AND ALTERNATE JUDGES AND ESTABLISH A SALARY FOR SUCH TERM- ORDINANCE NO. 2889 APPROVED Ms. Karen Bostic, Managing Director, presented the item. Ms. Bostic recommended the reappointment of Judge Ray Oujesky as Municipal Court Judge and Glynnis McGinty and Stewart Bass as Alternate Judges. Ms. Bostic also recommended Judge Oujesky's salary to be established at $58,600. MA VOR PRO TEM LEWIS MOVED TO APPROVE GN 2006-048 AND ORDINANCE No. 2889, APPOINTING RAY OUJESKY AS MUNICIPAL JUDGE AND GLYNNIS MCGINTY AND STEWART BASS AS ALTERNATE JUDGES AND ESTABLISHING THE JUDGE'S SALARY AT $58,600. COUNCILMAN WHITSON SECONDED THE MOTION. . . . . MOTION TO APPROVE CARRIED 6-0. F.5 GN 2006-049 APPOINTMENTS TO PLANNING AND ZONING COMMISSION AND CAPITAL IMPROVEMENT ADVISORY COMMITTEE - PLACES 1, 2 AND 7 APPROVED Ms. Patricia Hutson, City Secretary, presented the recommendations for appointments to the Planning and Zoning Commission and Capital Improvement Advisory Committee. Mayor Pro Tem Lewis is recommending the appointment of Mr. Mark Haynes to Place 1, term expiring June 30, 2007. Councilman Sapp is recommending the ~ppointment of Mr. Mike Benton to Place 2, term expiring June 30, 2008. Councilman Welch is recommending the appointment of Mr. Steve Cooper to Place 7, term expiring June 30, 2007. COUNCILMAN WELCH MOVED TO APPROVE THE APPOINTMENTS TO THE PLANNING & ZONING COMMISSION AND CAPITAL IMPROVEMENT ADVISORY COMMITTEE AS PRESENTED. COUNCILMAN WHITSON SECONDED THE MOTION. Motion to approve carried 6-0. F.6 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA Mayor Trevino moved item to after the Information and Reports. F.7 INFORMATION AND REPORTS REPORT ON MAY 22 2006 CITIZEN PRESENTATION Report was presented with Item A.4 following Ms. Q'Steen's citizen presentation. F.8 INFORMATION AND REPORTS Councilman Welch made the following announcements: The City of North Richland Hills continues its spring concert series at Green Valley Park, 7701 Smithfield Road. The next concert will be "Blake and Fallon" and "The . . . Django Walker Band" starting at 6:30 p.m. on Friday, June 16th. Admission is free. Please bring your lawn chairs and blankets. For more information, call 817-427-6620. Join us for the grand opening of "Tipps Canine Hollow at Northfield Park" on Saturday, June 17th. This new park is devoted entirely to dogs and their owners. Opening day activities will start at 8 a.m. with a walk-a-thon benefiting the NRH Animal Adoption & Rescue Center. The grand opening ceremony will begin at 9 a.m. For more information, please call 817-427-6620. The North Richland Hills Public Library is joining with 11 neighboring cities for a "One Book One Community" event. During June and July, residents of the participating cities are invited read the same book, "Isaac's Storm" by Erik Larson. There will be several opportunities to share and discuss the book at programs in the participating libraries. For more information, please call 817-427-6800. Kudos Korner - Staff, Utility Customer Service Office - A note was received from a first time homeowner stating that the service he received from the Utility Customer Service Office was of the highest quality. He said the employees who helped him were among the most courteous people he has ever met. RECESS TO EXECUTIVE SESSION Mayor Trevino recessed the Council meeting at 8:58 p.m. and announced that the Council would recess to Executive Session to discuss two items as authorized by the Chapter 551 of the Government Code - 1) Land Acquisition for Park as Authorized by Section 551.072 - Graham Ranch Area and 2) Land Acquisition as Authorized by Section 551.072 - Purchase of Easements and/or Rights-of-Way for Water System Improvements in the area North of the Shady Oaks Addition. BACK TO ORDER Mayor Trevino reconvened the regular Council meeting at 10:02 p.m. with all Council members present as previously recorded and advised that Council would take action on one Executive Session item. F.6 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA LAND ACQUISITION FOR PARK - GRAHAM RANCH AREA MAYOR PRO TEM LEWIS STATED THAT INASMUCH AS THE CITY COUNCIL IN 2003 ACCEPTED AN OFFER FOR THE SALE TO THE CITY OF A PARCEL OF PROPERTY BY GRAHAM RANCH PARTNERS FOR A PARK AND THE SELLER HAS DECLINED TO CONSUMMATE THIS SALE AND ATTEMPTED TO OBTAIN MORE MONEY THAN THE PRICE OFFERED, I MOVE THAT THE OFFER BE REJECTED. COUNCILMAN WELCH SECONDED THE MOTION. . . . Mayor Trevino commented that the City had been placed in a position of having accepted an offer for a park and then having the offer pulled with a request for additional money and that the Council needed to be fiscally responsible to the citizens. Mayor Trevino asked Staff and the Parks Department to look at what could be done to establish a park in that proximity of the City. Motion to approve carried 6-0. F.9 ADJOURNMENT Mayor Trevino adjourned the meeting at 10:07 p.m. ATTEST: Oscar Trevino - Mayor Patricia Hutson - City Secretary CITY OF NORTH RICHLAND HILLS . Department: Finance Presented by: LKoonce/MEdwards Council Meeting Date: 6-26-2006 Agenda No.B.2 Subject: PU 2006-046 Award Bid for Annual Contract to Print Various City Newsletters and Brochures - Resolution No. 2006-050 In the 2005/2006 approved budget, Council appropriated funds for the printing of various brochures and newsletters. Formal bids were solicited for an annual contract to include printing and delivery of three different publications. The publications included in the bid are the City Newsletter for the Communications Department, and the Discover Brochure and Tennis Center Brochure for the Parks and Recreation Department. Current funding is available to print each publication three times a year. Because the content of each issue will vary depending on the information to be included, vendors were requested to submit a quote for printing one issue of each newsletter or brochure as a sample. Attached is a spreadsheet detailing the bids submitted with the recommended bid award for each publication highlighted. Staff is recommending the annual contract to print the City Newsletter and the Tennis Center Brochure to Brodnax Printing and the Discover Brochure to MacDirect. Brodnax Printing and MacDirect have previously done work for the City and have always produced quality work and completed each publication within the requested time line. A . conflict of interest questionnaire is on file for each vendor. Recommendation: Approve Resolution No. 2006-050. . . . . Annual Contract to Print City Newsletter and Brochures Bid #06-1307 City Discover Tennis Center Vendor Newsletter Brochure Brochure Cockrell Printing $20,133 No Bid No Bid Brodnax Printing $12,075 $35,450 $2,985 Dallas Offset No Bid $38,765 No Bid Hurst-Euless ." $20,182 $46,866 $3,446 Printing Best Press $14,085 $36,090 $4,185 MacDirect $27,582 $35,080 $4,697 F.J. Business $14, 185 No Bid No Bid Forms .Ni~H RESOLUTION NO. 2006-050 BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH RICH lAND HillS, TEXAS THAT: SECTION 1 : THAT the City Manager is hereby authorized to execute the agreement with Brodnax Printing to provide the City Newsletter and the Tennis Center Brochure and the agreement with MacDirect to provide the Discover Brochure, as the act and deed of the City. PASSED AND APPROVED this the 26th day of June, 2006. ATTEST: CITY OF NORTH RICHLAND HILLS: Patricia Hutson, City Secretary Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: . George A. Staples, City Attorney APPROVED AS TO CONTENT: Larry Koonce, Director of Finance . . . . CITY OF NORTH RICHLAND HILLS Department: Parks and Recreation Presented by: Vickie Lottice Council Meeting Date: 6-26-2006 Agenda NO.B.3 Subject: PU 2006-047 Award of Bid to Dean Construction in the Amount of $558,974.80 for the Construction of the South Electric Trail Project - Resolution No. 2006-051 The currently approved Parks and Recreation Facility Development Capital Improvement Program includes funding for the construction of the South Electric Trail which is an approved ISTEA grant project. The project provides for 2 miles of 10 feet wide concrete multi-use trail located within the TXU Easement between Rufe Snow and Boulevard 26. The trail has terminus points just west of Rufe Snow in the Diamond Lach area and at Boulevard 26 with connections to the future Boulevard 26 Trail located along .t~~ Calloway Branch drainage corridor. The City's share of $157,500 represents 21 % of the total grant of $750,000. The Federal share of the project totals $592,500. Nine bids were received on April 18, 2006 as follows: Dean Construction McMahon Contracting Stahele & Wenn American Civil Constructors Jeske Construction Fain Group Reliable Paving Cates, Courtney & Robuck AU I Contractors $558,974.80 $714,426,64 $789,241.10 $812,431.66 $835,736.42 $856,383.83 $858,756.38 $878,266.95 $938,695.40 The available funding for construction included in the approved CIP Budget is $650,900. The Fort Worth Area Office of the Texas Department of Transportation (TxDOT) and TxDOT's Austin Headquarters have recently approved the low bid submitted by Dean Construction in the amount of $558,974.80 and have authorized the City of North Richland Hills to award the construction contract. Dean Construction has previous experience with the City of North Richland Hills including the construction of Liberty Park, Tommy and Sue Brown Park, Cross Timbers Park and Green Valley Park. The scheduled completion date, according to the Construction Agreement, is January 23, 2007, assuming that construction begins on July 17, 2006. A conflict of interest questionnaire is on file with the city. . . . Recommendation: To approve Resolution No. 2006-051. . Ni~H RESOLUTION NO. 2006-051 BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH RICHlAND HillS, TEXAS: SECTION 1 : THAT the City Manager is hereby authorized to execute a construction contract with Dean Construction in the amount of $558,974.80, for the construction of the South Electric Trail Project, as the act and deed of the City. PASSED AND APPROVED this the 26th day of June, 2006. ATTEST: CITY OF NORTH RICHLAND HILLS: Patricia Hutson, City Secretary Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: . George A. Staples, City Attorney APPROVED AS TO CONTENT: Vickie Lottice, Director of Parks and Recreation . . . . CITY OF NORTH RICHLAND HILLS Department: Parks and Recreation Presented by: Vickie Lottice Council Meeting Date: 6-26-2006 Agenda No.B.4 Subject: GN 2006-056 Execute Change Order #1 to the Construction Contract with American Civil Constructors, Inc. for the Walker's Creek Multi-Use Trail Project in the Amount of $37,779.32 - Resolution No. 2006-053 The recently completed Walker's Creek Multi-Use Trail and Bicycle Transit Station is a 2.8 mile multi-use trail starting at Boulevard 26 and terminating at the Cotton belt Trail while making connections to Walker's Creek Girls Softball Complex, Home Town Lakes and Dick Faram Park. The project was funded through the Transportation Equity Act for the 21 st Century (TEA-21) grant. The City's share of $421,000 represents 20% of the total grant of $2,105,000. The construction contract was awarded by City Council on October 14, 2004 in the amount of $1,482,629.14 to American Civil Constructors, Inc. The construction budget for the project was $1,770,750. This change order, in the amount of $37,779.32 is attributable to increases in the in- place quantities for paving materials, rip-rap, sediment fencing and RCP drainage pipe compared to the originally proposed material quantities included in the plans and specifications. These additional costs resulted from modifications of the design resulting from field conditions. The original contract amount is $1,482,629.14. Upon execution of this change order the final contract amount will be $1,520,408.46, which still represents a significant savings of $250,341.54 in the overall project budget. Recommendation: To approve Resolution No. 2006-053 . NI~H RESOLUTION NO. 2006-053 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HillS, TEXAS: SECTION 1 : THAT the City Manager is hereby authorized to execute Change Order #1 with American Civil Constructors, Inc. in the amount of $37,779.32, for the construction of the Walker's Creek Multi Use Trail Project, as the act and deed of the City. PASSED AND APPROVED this the 26th day of June, 2006. ATTEST: CITY OF NORTH RICHLAND HILLS: Patricia Hutson, City Secretary Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: . George Ä. Staples, City Attorney APPROVED AS TO CONTENT: Vickie Lottice, Director of Parks and Recreation . . . . Department: City Secretary Presented by: Subject: PUBLIC HEARINGS No items for this category. CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda No.C.O . . . Department: City Secretary Presented by: CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda No.D.G Subject: PLANNING AND DEVELOPMENT No items for this category. . . . Department: City Secretary Presented by: Subject: PUBLIC WORKS No items for this category. CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda No.E.O . . . Department: City Secretary Presented by: Subject: GENERAL ITEMS CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda NO.F.O . . . CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 6-26-2006 Agenda No.F.1 Subject: GN 2006-053 Denial of 2005 Interim Rate Adjustment Proposed by Atmos Energy Corporation, Mid-Tex Division - Ordinance No. 2890 Atmos Energy Corporation, Mid-Tex filed its third surcharge request under the Gas Reliability Infrastructure Program ("GRIP") statute, seeking to add additional surcharges on top of the 2003 and 2004 GRIP surcharges already approved by the Railroad Commission. Council Suspended this request at the May 8, 2006 City Council meeting. The 2005 surcharges are $0.51 on all residential customers, $1.75 for commercial customers, and $78.47 for industrial customers. If this third surcharge were to be approved, the total amount of surcharges resulting from the GRIP statute would be $1.09/month for residential customers, $3.68/month for commercial customers, and $151.96/month for industrial customers. The ordinance denies the 2005 surcharge request on the grounds that it does not comply with the law, is not reasonable, and because it is duplicative of the Company's Statement of Intent filing for the same period of time. The following problems have been identified in this filing: (i) the capital structure and component costs used by Atmos do not represent Atmos Energy's costs, but are proxies based on TXU Gas' circumstances; (ii) the rate base amounts used show enormous and unexplained increases over the amounts in both 2003 and 2004 that are not shown to be reasonable; and (iii) the Statement of Intent filed May 31, 2006 with the Commission and the Cities also includes Atmos' 2005 investment, making the 2005 GRIP filing unnecessary and creating the potential for double-counting and double- recovery for this investment. The attached ordinance denies the Atmos GRIP filing, authorizes the City to participate in cooperation with other cities within the Atmos Energy Corp., Mid-Tex Division as part of the Atmos Cities Steering Committee (ACSC), authorizes ACSC to hire legal and consulting services and to negotiate with the company and direct any necessary litigation, authorizes intervention as part of ACSC in any appeal of the city's action to the Railroad Commission, requires for prompt reimbursement of costs incurred by the City, and provides for notice of this ordinance to Atmos. Recommendation: Approve Ordinance No. 2890 .NI~H ORDINANCE NO. 2890 AN ORDINANCE OF THE CITY OF NORTH RICHlAND HillS, TEXAS, DENYING THE REQUEST OF ATMOS ENERGY CORP., MID-TEX DIVISION, FOR AN ANNUAL GAS RELIABiliTY INFRASTRUCTURE PROGRAM (GRIP) RATE INCREASE IN THIS MUNICIPALITY, AS A PART OF THE COMPANY'S STATEWIDE GAS UTiliTY DISTRIBUTION SYSTEM; APPROVING COOPERATION WITH OTHER CITIES WITHIN THE ATMOS ENERGY CORP., MID-TEX DIVISION DISTRIBUTION SYSTEM AS PART OF THE A TMOS CITIES STEERING COMMITTEE (ACSC); AUTHORIZING ACSC TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION; AUTHORIZING INTERVENTION AS PART OF ACSC IN ANY APPEAL OF THE CITY'S ACTION TO THE RAILROAD COMMISSION; PROVIDING A REQUIREMENT FOR A PROMPT RERIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY lAW; AND PROVIDING FOR NOTICE OF THIS ORDINANCE TO ATMOS ENERGY CORP., MID-TEX DIVISION. . WHEREAS, on or about March 30, 2006, Atmos Energy Corp., Mid-Tex Division, (the "Company") filed with the City a request for an annual gas reliability infrastructure program ("GRIP") rate increase for customers on the Company's statewide gas utility system to be effective May 30, 2006; and WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's request as it pertains to the distribution facilities located within the City, pursuant to Texas Utilities Code §§ 102.001 (b) and 103.001; and WHEREAS, it is reasonable for the City to cooperate with other cities in a coalition of cities in opposition to the Company's filing at the Railroad Commission ("Commission"), said coalition being known as Atmos Cities Steering Committee (HACSC"), in any appeal of the cities' actions to the Commission; and WHEREAS, the Gas Utility Regulatory Act ("GURA") grants local regulatory authorities the right to intervene in rate proceedings filed at the Railroad Commission; and WHEREAS, the Texas Utilities Code § 103.022 provides that costs incurred by the City in ratemaking activities are to be reimbursed by the regulated utility; and . . . . WHEREAS, counsel for ACSC, upon review of the Company's filing and upon consultation with various consultants, recommends finding that the Company's proposal is unjustified and unreasonable, and WHEREAS, the Company has publicly stated that it will receive substantial profit in 2005 and that its expenses are substantially below those on which the GUD No. 9400 rates it is charging were based; and WHEREAS, the Company's GRIP request fails to account for growth in numbers of customers, thereby undercounting the revenues it will receive from its proposed GRIP rate increase and WHEREAS, the Company's GRIP request fails to recognize that GUD No. 9400 rates included profit based on TXU Corporation's capital structure rather than Atmos Energy Corp.'s current capital structure, which justifies a lower rate of return; and WHEREAS, under provisions of § 104.301 of GURA, the interim rate adjustment is subject to true-up in a general rate case filed within five years of the effective date of the interim rate surcharge; and WHEREAS, the Company has, on May 31, 2006, filed a Statement of Intent to increase its distribution rates on a system-wide basis, using calendar year ending December 31, 2005, as its test year; and WHEREAS, the capital investment made by Atmos during 2005 will be reviewed in the Statement of Intent filing, making the 2005 GRIP filing superfluous, duplicative, and unnecessary; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCil OF THE CITY OF NORTH RICHlAND HillS, TEXAS: SECTION 1. That the Company's GRIP rate increase request is found to be unreasonable, superfluous, duplicative, and unnecessary, and is therefore denied in all respects. SECTION 2. That the City is authorized to cooperate with other Cities within the Company's Distribution System that have formed ACSC to hire and direct legal counsel and consultants, negotiate with the Company, make recommendations to the City regarding reasonable rates, and to direct any necessary litigation associated with an appeal of a rate ordinance and the rate case filed at the Commission. SECTION 3. That the costs incurred by the City in reviewing the Company's GRIP request shall be promptly reimbursed by the Company. · · · SECTION 4. That the City is authorized to intervene in any appeal of the City's action filed at the Commission and any related litigation, and to participate in any such appeal or litigation as a member of ACSC. SECTION 5. This Ordinance shall become effective immediately from and after its passage, as the law and charter in such cases provide. SECTION 6. That it is hereby officially found and determined that the meeting at which This Ordinance is passed is open to the public as required by law and that public notice of the time, place, and purpose of said meeting was given as required. SECTION 7. A copy of this ordinance, constituting final action on the Company's application, be forwarded to the following: Richard T. Reis Atmos Energy Corporation 5420 LBJ Freeway, Suite 1800 Dallas, Texas 75240 Lloyd Gosselink Blevins Rochelle & Townsend c/o Geoffrey Gay P. O. Box 1725 Austin , Texas 78767-1725 PASSED AND APPROVED this the 26th day of June, 2006. ATTEST: CITY OF NORTH RICH LAND HILLS: Patricia Hutson, City Secretary Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Karen Bostic, Managing Director · · · CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 6-26-2006 Agenda NO.F.2 Subject: GN 2006-054 Denial of Request For a Rate Increase by Atmos Energy Corp., Mid-Tex Division Filed on May 31,2006 - Ordinance No. 2891 Municipalities have original jurisdiction over gas utility rates within the City. The City of North Richland Hills, along with 87 other Atmos Cities Steering Committee ("ACSC") cities, exercised its authority under §§103.001 and 104.151, GURA, to initiate a proceeding to determine whether the existing rates of Atmos Energy Corp., Mid-Tex Division ("Company") were unreasonable or in any way in violation of any provision of law and ordered the Company to show cause regarding the reasonableness of its existing natural gas distribution rates within the City. This was accomplished by passing a "show cause" resolution on November 14, 2005. Atmos Mid-Tex filed a system-wide rate increase with the Texas Railroad Commission on May 31, 2006. According to information provided by the Company, this filing will increase the Company's revenues by $61 million annually, or 3.6%. The average residential bill will increase by 5.36% or $4.02 per month. Commercial customers will see their average bill increase by 5.25% or $17.16 per month. Atmos' rate filing will take effect on July 5, 2006 if the attached ordinance is not approved. The attached ordinance denies Atmos' rate increase, supports the reduction of existing natural gas distribution rates currently charged by Atmos Mid-Tex, orders Atmos Mid- Tex to reimburse the City for its reasonable costs incurred in this proceeding, authorizes the Atmos Cities Steering Committee to act on behalf of the City and intervene in any proceedings before administrative or judicial bodies, requires delivery of this ordinance to Atmos and legal counsel and finds that the meeting at which this ordinance is adopted is open to the public. Recommendation: Approve Ordinance No. 2891 .Ni~H ORDINANCE NO. 2891 AN ORDINANCE OF THE CITY OF NORTH RICHlAND HillS, TEXAS, DENYING ATMOS ENERGY CORP., MID-TEX DIVISION'S STATEMENT OF INTENT TO INCREASE THE GAS UTiliTY RATES IN THIS MUNICIPALITY; SUPPORTING THE REDUCTION OF EXISTING NATURAL GAS DISTRIBUTION RATES CURRENTLY CHARGED BY ATMOS MID-TEX WITHIN THE CITY; ORDERING ATMOS MID-TEX TO REIMBURSE THE CITY FOR ITS REASONABLE COSTS INCURRED IN RA TEMAKING PROCEEDINGS OR APPEALS OF SAID PROCEEDINGS; AUTHORIZING THE A TMOS CITIES STEERING COMMITTEE TO ACT ON BEHALF OF CITY AND INTERVENE IN ANY PROCEEDINGS BEFORE ADMINISTRATIVE OR JUDICIAL BODIES; REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND lEGAL COUNSEL; AND FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS ADOPTED IS OPEN TO THE PUBLIC AS REQUIRED BY lAW. . WHEREAS, the City of North Richland Hills, Texas ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos Energy Corp., Mid-Tex Division (the "Company"); and WHEREAS, the City, along with 87 other Atmos Cities Steering Committee ("ACSC") cities, exercised its authority under §§ 103.001 and 104.151, GURA, to initiate a proceeding to determine whether the existing rates of the Company were unreasonable or in any way in violation of any provision of law and ordered the Company to show cause regarding the reasonableness of its existing natural gas distribution rates within the City; and WHEREAS, the Company filed its rate filing package with the City in response to the City's order on or about December 31 , 2005, and the City's representatives obtained additional information from the Company through written requests for information; and WHEREAS, the City's consultants and representatives, through cooperative efforts and under the direction of the ACSC, reviewed the information and recommended that the City reduce the rates charged by the Company within the City; and . WHEREAS, by its own action pursuant to GURA § 104.151 (a) or by procedural agreement with the Company, the City reduced the current natural gas rates charged by the Company within the City effective May 31, 2006; and · · · WHEREAS, the Company has bonded in its existing rates with the Railroad Commission as part of its appeal of rates set by ACSC cities; and WHEREAS, as part of its appeal of City rate actions taken by ACSC members, the Company filed a Statement of Intent to Increase the Gas Utility Rates within the City effective July 5, 2006; and WHEREAS, the Company's request is unreasonable based upon the information already reviewed by the City in response to its action initiating the show cause action; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCil OF THE CITY OF NORTH RICHLAND HillS, TEXAS: SECTION 1. That the Statement of Intent to Increase Gas Utility Rates filed by the Company on or about May 31, 2006, and effective July 5, 2006, is hereby denied. SECTION 2. That the reduction to current rates previously adopted by the City pursuant to ordinance or agreement with the Company is just and reasonable. SECTION 3. That the City is authorized to intervene in any appeal of the City's action filed at the Railroad Commission of Texas and to otherwise participate in any litigation associated with the Company's rates charged in the City, in conjunction with the ACSC. SECTION 4. That the Company shall promptly reimburse ACSC for ratemaking costs associated with the City's activities related to the show cause proceeding and/or the denial of the Statement of Intent including appeals to the Railroad Commission or Courts, in accordance with GURA § 103.022. SECTION 5. That a copy of this Ordinance shall be sent to the Company, care of Richard T. Reis, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink, P.O. Box 1725, Austin, Texas 78767-1725. SECTION 6. That it is hereby officially found and determined that the meeting at which this Resolution is adopted is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. . PASSED AND APPROVED this the 26th day of June, 2006. ATTEST: CITY OF NORTH RICH LAND HILLS: Oscar Trevino, Mayor Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Karen Bostic, Managing Director . . . . . CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 6-26-2006 Agenda NO.F.3 Subject: GN 2006-055 Consider Approval of Policy on Uses of Revenues from Gas Exploration/Production - Resolution No. 2006-052 Council consensus at the June 15, 2006 Planning and Program of Services for FY 2006/07 meeting, was for Staff to bring forward the Policy on Uses of Revenues from Gas Exploration/Production for Council approval. The attached policy is in anticipation of the City receiving revenues from gas exploration and production over the next several years. The policy is to establish guidelines as to how the revenues could be used. It is important that the City not become over-reliant on these revenues because many of the revenues are one time receipts and those that are not have a finite lifeline with decreasing revenues as time progresses. Three areas of consideration for use of gas revenues are: 1. To bridge the gap of sales tax revenue reductions; 2. To use "one time" revenues for projects or non-recurring capital needs; 3. To use the revenues for expanding the City's economic base and use for economic development. There are three categories of revenues; · property taxes/permitting fees/fines · bonuses · royalties/leases/overrides Bonuses are a one time payment as are permitting fees and any fines assessed. The ongoing or longer term revenues include property taxes, leases and overrides. Ideally the one time revenues would be used for one time, project or capital type expenses. Using these revenues for continuing ongoing expenses would not be practical and could result in tough decisions in future years. But, that is not to say these revenues cannot be used to help offset revenue losses in other areas such as sales tax revenue, for a short period of time. These revenues could also help expand existing programs such as the permanent street maintenance program or economic development initiatives. The policy also includes distribution of gas revenues based on type of revenue as well as location of the gas well. The attached resolution adopts the policy as discussed at the June 15 Council meeting. Recommendation: Approve Resolution No. 2006-052 .NI~H RESOLUTION NO. 2006-052 WHEREAS, the City Council desires to provide guidance for budgeting income from gas well permits and from leases of mineral interests owned by the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH RICHLAND HillS, TEXAS: SECTION 1 : THAT the attached "Policy on Uses of Revenues from Gas Exploration/Production" is hereby adopted. PASSED AND APPROVED this the 26th day of June, 2006. CITY OF NORTH RICHLAND HILLS Oscar Trevino, Mayor ATTEST: . Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, Attorney APPROVED AS TO CONTENT: Karen Bostic, Managing Director . . . . ATTACHMENT Policy on Uses of Revenues from Gas Exploration/Production June 26, 2006 I. Introduction This policy is in anticipation of the City receiving revenues from gas exploration and production over the next several years. The policy is being established to avoid over- reliance on these revenues and to establish how the revenues may be used. The reason to use caution is that there are no guarantees that the gas wells within the City will produce much less be high producers. It is worth noting that if the City does receive royalty and property tax revenues in the future, that these revenues decrease over time due to the finite nature of the gas in the ground. Three areas of consideration for use of gas revenues are: 1. To bridge the gap of sales tax revenue reductions; 2. To use "one time" revenues for projects or non-recurring capital needs; 3. To use the revenues for expanding the City's economic base and use for economic development. With the decline of sales tax revenues in the last three years, it seems reasonable to use a portion of the gas revenue to "bridge" the gap of sales tax revenue to fund General Fund services and operations until new sales tax generators come on line. A portion of the revenue, one time revenues such as bonus money, could be reserved for future park development or for continuation of "pay-as-you-go" for park projects. It could also be used to fund needed future capital projects at the golf course, thereby saving the cost of issuing debt as well as interest expense. Bonus money could also be used for capital purchases or infusion of revenue into existing programs such as the preventive street maintenance program or economic development. Gas revenues could also be used to offset the declining hotel/motel tax revenue and allow for the expansion of economic development programs such as business attraction and retention and provide dollars for a more aggressive and competitive economic development initiative. II. Tvpes of Revenue The City anticipates receiving revenues from several avenues including property tax, permitting fees, fines, bonuses, royalties, leases and overrides. Bonuses are a "one time" payment as are permitting fees and any fines assessed. The "ongoing" or longer term revenues include property taxes, leases and overrides. Because of the nature of bonuses, it would appear impractical to use these revenues for ongoing operations due to the problems created with recurring expenses being funded with "one time" revenues. · · · ATTACHMENT Policy on Uses of Revenues from Gas Exploration/Production June 26, 2006 These types of revenues lend themselves to more "project" activities versus operating expenses. Other gas revenues appear to be more appropriate to pay for operations and service related costs. III. Proposed Revenue Uses Property Taxes/Permittinq Fees/Fines Regardless of the location of a gas well, it seems reasonable that the property taxes, permitting fees and fine revenues should go to the General Fund to cover the additional costs incurred as a result of monitoring gas drilling activities. These costs include well inspections, well permitting, publications, and other expenses related to gas drilling permitting and monitoring. Property taxes would appear reasonable for covering operating and program expenses and help offset reductions in sales tax revenue. Bonuses Bonus revenue is not practical for funding ongoing, daily operations. As previously mentioned, bonuses are one time payments that ideally could be used for one-time, project or capital type purchases. For example, bonus money could be reserved for future park development or for continuation of "pay-as-you-go" for park projects. It could be used to cash fund needed future capital projects at the golf course or for needed equipment, thereby saving the cost of issuing debt as well as interest expense. Bonus money could also be used for capital purchases or infusion of revenue into existing programs such as the preventive street maintenance program or economic development. R 0 v a Ities/Le a se s/Ove rrid es Revenues generated from these sources are ongoing but the longevity and certainty of the revenues are unknown. Because of this, caution should be taken in using these revenues for daily operations on an ongoing basis. Too much dependence on these revenues for operations, with the uncertainty of the life line of the well, could create some risks and tough decision in future years. However, these revenues could potentially offset some of the sales tax dollars that have been lost over the last few years due to declining retail activity. They could "bridge the gap" until sales tax revenues increase. Royalty, lease and override revenue could also be used to offset the declining hotel/motel tax revenue and allow for the expansion of economic development programs such as business attraction and retention and provide dollars for a more aggressive and competitive economic development initiative. It has become more and more challenging to maintain a quality economic development program with the diminished revenues, much less have funds available to expand programs. · · · ATTACHMENT Policy on Uses of Revenues from Gas Exploration/Production June 26, 2006 IV. Distribution of Revenues Property taxes, permit fees and fines are recommended to be allocated to the General Fund in total. The allocations below are for bonuses, royalties, leases and overrides. There are an infinite number of ways the revenues could be distributed. The allocations below are based on the premises listed in the introduction paragraphs. A differentiation has been made between a park purchased with General Fund dollars and one purchased with Sales Tax dollars. Park Site Developed with General Fund Revenue - If a gas well is located within a park or minerals leased within a park that was developed using General Fund revenues, the following distribution will be used: . General Fund - 85% . Economic Development - 15°10 Park Site Developed with Sales Tax Revenue - If a gas well is located within or minerals leased within a park that was developed using the % cent sales tax, the following distribution of revenues will be used: · Park Development Fund - 50% · General Fund - 35% · Economic Development - 15°10 Iron Horse - If a gas well is located on Iron Horse property or minerals are leased on Iron Horse property, bonus, royalty, lease and override revenue could go in its entirety to the golf course. Other City Property - If a gas well is located on property that is considered "utility" property, then 100°10 of the revenue will be allocated to the Utility Fund. If the property is considered General Fund, then 100% of the revenue will be allocated to the General Fund. If the property is a combination of Utility and General Fund property, then the revenue will be split 50/50 between the two funds. . RESOLUTION NO. 2006-052 WHEREAS, the City Council desires to provide guidance for budgeting income from gas well permits and from leases of mineral interests owned by the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICH LAND HillS, TEXAS: Section 1: That the attached "Policy en Guidelines For Uses of Revenues from Gas Exploration/Production" is hereby adopted. AND IT IS SO RESOLVED. PASSED on the 26th day of June, 2006. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor . ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, Attorney . 1 ) , Policy Guidelines For 9ß Uses of Revenues from Gas Ex ploration/P rod uction June 26,2006 . I. Introduction This policy is These policy quidelines are in anticipation of the City receiving revenues from gas exploration and production over the next several years. The policy is guidelines are being established to avoid over-reliance on these revenues and to establish how the revenues may be used. The reason to use caution is that there are no guarantees that the gas wells within the City will produce much less be high producers. It is worth noting that if the City does receive royalty and property tax revenues in the future, that these revenues decrease over time due to the finite nature of the gas in the ground. Three areas of consideration for use of gas revenues are: 1. To bridge the gap of sales tax revenue reductions; 2. To use "one time" revenues for projects or non-recurring capital needs; 3. To use the revenues for expanding the City's economic base and use for economic development. With the decline of sales tax revenues in the last three years, it seems reasonable to use a portion of the gas revenue to "bridge" the gap of sales tax revenue to fund General Fund services and operations until new sales tax generators come on line. . A portion of the revenue, one time revenues such as bonus money, could be reserved for future park development or for continuation of "pay-as-you-go" for park projects. It could also be used to fund needed future capital projects at the golf course, thereby saving the cost of issuing debt as well as interest expense. Bonus money could also be used for capital purchases or infusion of revenue into existing programs such as the preventive street maintenance program or economic development. Gas revenues could also be used to offset the declining hotel/motel tax revenue and allow for the expansion of economic development programs such as business attraction and retention and provide dollars for a more aggressive and competitive economic development initiative. II. Types of Revenue . The City anticipates receiving revenues from several avenues including property tax, permitting fees, fines, bonuses, royalties, leases and overrides, Bonuses are a "one time" payment as are permitting fees and any fines assessed. The "ongoing" or longer term revenues include property taxes, leases and overrides. Because of the nature of bonuses, it would appear impractical to use these revenues for ongoing operations due to the problems created with recurring expenses being funded with "one time" revenues. These types of revenues lend themselves to more "project" activities versus operating expenses. Other gas Page 1 ) . Policy Guidelines For OR Uses of Revenues from Gas Ex p I ora ti 0 nIP rod u cti 0 n June 26,2006 · revenues appear to be more appropriate to pay for operations and service related costs. III. Proposed Revenue Uses Property T axes/PermittinQ Fees/Fines Regardless of the location of a gas well, it seems reasonable that the property taxes, permitting fees and fine revenues should go to the General Fund to cover the additional costs incurred as a result of monitoring gas drilling activities. These costs include well inspections, well permitting, publications, and other expenses related to gas drilling permitting and monitoring. Property taxes would appear reasonable for covering operating and program expenses and help offset reductions in sales tax revenue. · Bonuses Bonus revenue is not practical for funding ongoing, daily operations. As previously mentioned, bonuses are one time payments that ideally could be used for one-time, project or capital type purchases. For example, bonus money could be reserved for future park development or for continuation of "pay-as-you-go" for park projects. It could be used to cash fund needed future capital projects at the golf course or for needed equipment, thereby saving the cost of issuing debt as well as interest expense. Bonus money could also be used for capital purchases or infusion of revenue into existing programs such as the preventive street maintenance program or economic development. R 0 va It i e s/L ea ses/ Ove rrid es Revenues generated from these sources are ongoing but the longevity and certainty of the revenues are unknown, Because of this, caution should be taken in using these revenues for daily operations on an ongoing basis. Too much dependence on these revenues for operations, with the uncertainty of the life line of the well, could create some risks and tough decision in future years. However, these revenues could potentially offset some of the sales tax dollars that have been lost over the last few years due to declining retail activity. They could "bridge the gap" until sales tax revenues increase. Royalty, lease and override revenue could also be used to offset the declining hotel/motel tax revenue and allow for the expansion of economic development programs such as business attraction and retention and provide dollars for a more aggressive and competitive economic development initiative. It has become more and more challenging to maintain a quality economic development program with the diminished revenues, much less have funds available to expand programs, IV. Distribution of Revenues · Property taxes, permit fees and fines are recommended to be allocated to the General Fund in total. The allocations below are for bonuses, royalties, leases Page 2 . . , .. · · · Policy Guidelines For OR Uses of Revenues from Gas Ex pi ora ti 0 nIP rod u cti 0 n June 26,2006 and overrides. There are an infinite number of ways the revenues could be distributed. The allocations below are based on the premises listed in the introduction paragraphs. A differentiation has been made between a park purchased with General Fund dollars and one purchased with Sales Tax dollars. Park Site Developed with General Fund Revenue - If a gas well is located within a park or minerals leased within a park that was developed using General Fund revenues, the following distribution will be used: · General Fund - 850/0 · Economic Development - 15% Park Site Developed with Sales Tax Revenue - If a gas well is located within or minerals leased within a park that was developed using the % cent sales tax, the following distribution of revenues will be used: · Park Development Fund - 50% · General Fund - 350Æ> · Economic Development - 15% Iron Horse - If a gas well is located on Iron Horse property or minerals are leased on Iron Horse property, bonus, royalty, lease and override revenue could go in its entirety to the golf Course. Other City Property - If a gas well is located on property that is considered "utility" property, then 100% of the revenue will be allocated to the Utility Fund. If the property is considered General Fund, then 100% of the revenue will be allocated to the General Fund. If the property is a combination of Utility and General Fund property, then the revenue will be split 50/50 between the two funds. V. Establishment of Special Revenue Fund for Gas Revenues as Page 3 . . . CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 6-26-2006 Agenda No.F.4 Subject: GN 2006-050 Appointment to CIP Committee The Council Rules of Procedure state that the Mayor will appoint members to City Council committees, subject to approval of the Council. In 2004, Mayor Trevino appointed to the CIP Committee, with Council approval, Councilman Whitson, Councilman Welch and Councilwoman Johnson and himself as the alternate. Since JoAnn Johnson is no longer on the Council, there is a vacancy on the Committee. Mayor Trevino is recommending that Councilman Sapp be appointed to fill the vacancy. Recommendation: To consider Mayor Trevino's recommendation for appointment to the CIP Committee. CITY OF NORTH RICHLAND HILLS . Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 6-26-2006 Agenda NO.F.5 Subject: GN 2006-051 Appointments to Boards & Commissions The terms of office for the individuals serving on the Boards and Commissions in Places 2, 4, 6 and Alternate/ Ex Officio places will expire June 30. In addition, there are a few positions that are either vacant or the individual did not meet attendance requirements and the Council Member has chosen to replace the individual. For the boards listed below, Chapter 2, Article III, Section 2-121 c of the Code of Ordinances states that the City Council will act upon Council member nominations. The following nominations have been submitted for Council consideration at this time: Keep Nortlì Richland Hills Beautiful Commission Place 2 Jay Garner Place 4 Doris Tipps Place 6 Kathy Luppy Alternate Dianna Madar Board of Adjustment Place 2 Sixto Rodriguez III Place 4 Fonda Kunkel . Place 6 Bill Gibbs Library Board Place 2 Place 4 Place 6 Alternate David Nelson Kay Schmidt Mike Madar Kathy Antropik Park and Recreation Board Place 1 Ricky McElroy Place 2 Tom Lombard Place 4 Marlin Miller Place 6 Jay Crane Alternate Tracye Tipps Planning & Zoning Commission and Capital Improvement Advisory Committee Place 4 Randy Shiflet Place 6 William Schopper Ex Officio Kelly Gent . Substandard Building Board Place 4 Philip E. Orr, Jr. Place 6 Brian Crowson . . . Agenda No. F.5 Page 2 of 2 Teen Court Advisory Board Place 2 Janet Golightly Place 4 Jerry Sorenson Place 5 Danny Perkins Place 6 Karen Russell The terms of office for the even numbered and ex-officiol alternate place appointments will expire June 30, 2008 and the odd numbered place appointments will expire June 30,2007. Recommendation: To take action on the above listed appointments . . . CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 6-26-2006 Agenda No.F.6 Subject: GN 2006-052 Appointment of Board Delegate to Reinvestment Zone Number 1 and Reinvestment Zone Number 2 With the recent City Council election, the City has one vacant seat on the Board of Directors of Reinvestment Zone No.1 and Reinvestment Zone No.2. The City Council is being requested to appoint a City Council Member to fill the seat vacated by JoAnn Johnson. The Bylaws of Reinvestment Zone Number 1 state that the nine-member Board is to consist of five members appointed by the City Council. Council Members currently serving on this board are Mayor Trevino, Mayor Pro Tem Lewis, Councilman Welch and Councilman Whitson. The Bylaws of Reinvestment Zone Number 2 state that the nine-member Board is to consist of six members appointed by the City Council. Council Members currently serving on this board are Mayor Trevino, Mayor Pro Tem Lewis, Councilman Welch, Councilman Whitson and Councilwoman Compton. Initially, when the Reinvestment Zones were created, First Southwest Company, the City's Financial Advisor, recommended that the City's Board Members include elected officials of the City. Council also agreed to appoint the same Council Members to Reinvestment Zones No. 1 and 2 with the exception of the one extra member on Reinvestment Zone NO.2. The Council Member appointed to fill these vacancies will serve until October 2006 at which time all board member terms will expire. Recommendation: To appoint a member of the City Council as North Richland Hills' delegate to Reinvestment Zone Number 1 and Reinvestment Zone Number 2. . . . CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 6-26-2006 Agenda No.F.7 Subject: GN 2006-057 Appointments to Animal Control Shelter Advisory Committee - Places 2 and 4 The individuals serving in Places 2 and 4 on the Animal Control Shelter Advisory Committee terms of office will expire on June 30. The ordinance establishing the Committee states that the appointment to Place 2 shall be a city official and the appointment to Place 4 shall be a representative from an animal welfare organization. Currently serving in Place 2 is Mayor Pro Tem Lewis and serving in Place 4 is Pam Burney, who is the Senior Director, Regional Services, with the American Society for the Prevention of Cruelty to Animals. Both of these positions are two-year terms of office. Recommendation: To appoint a city official to Place 2 and to appoint a representative from an animal welfare organization to Place 4, terms expiring June 30, 2008. . . . CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 6-26-2006 Agenda No.F.8 Subject: GN 2006-058 Appointments to Park and Recreation Facilities Development Corporation - Places 1, 3, 4, 5 & 7 The terms of office for the Board Members serving in Places 1, 3, 5 and 7 on the Park and Recreation Facilities Development Corporation expired on May 1, 2006. In addition, with the recent City Council elections, Jo Cox vacated the Place 4 seat and Mark Haynes who was serving in Place 6 was recently appointed to the Planning & Zoning Commission. The Corporation's Articles of Incorporation and Bylaws state that appointments to the Board of Directors are to be made by the City Council and that Places 1-4 are designated for Council Member Directors and Places 5-7 are designated for Citizen Member Directors. Because of the purpose of this Board, practice has been to select current members of the Park and Recreation Board to serve on this Board. The places with either expired terms or vacancies are: Place 1 - Place 3 - Place 4 Place 5 Place 6 Place 7 Council Member Director (Councilman Whitson - incumbent) Council Member Director (Mayor Trevino - incumbent) Council Member Director) (Vacant) Citizen Member Director (Vacant - previously held by Kim Kirby) Citizen Member Director (Vacant - previously held by Mark Haynes) Citizen Member Director (Park Board Member Brad Greene - incumbent) Mayor Pro Tern Lewis, serving in Place 2, is the only remaining Council member serving on the Board whose term has not expired. Recommendation: To appoint 1) a Council Member Director to fill the unexpired term of Place 4 2) Council Member Directors to Places 1 and 3, terms expiring May 1, 2008 3) a Citizen Member Director who is also serving on the Park and Recreation Board to fill the unexpired term of Place 6 4) Citizen Member Directors who are also serving on the Park and Recreation Board to Places 5 and 7 terms expiring May 1 , 2008. CITY OF NORTH RICHLAND HILLS . Department: City Secretary Presented by: Mayor Pro Tem Lewis Council Meeting Date: 6-26-2006 Agenda No.F.9 Subject: Information and Reports - Mayor Pro Tern Lewis Announcements Join us on July 4th for the Quad Cities Family 4th Fireworks Show. Free parking will be offered at W.G. Thomas Coliseum in Haltom City and North Richland Hills Village Center. Parking will be available on a first come first served basis, so plan to arrive early. The fireworks will start at 9:30 p.m. For more information, please call 817-281- 9376. City Hall and other City offices will be closed on Tuesday, July 4th, in observance of Independence Day. Garbage service will not be impacted by the holiday. Due to ongoing drought conditions, the City of North Richland Hills asks everyone - from residents, to businesses, to schools and government - to continue efforts to voluntarily conserve water and to avoid watering during the hottest part of the day, between 10 a.m. and 7 p.m. The City will be considering additional water restrictions in the coming weeks and will communicate further information to residents through the web site, Citicable, newsletters and news media. The cooperation and support of all residents and businesses plays a critical role in the success of our water conservation efforts and . we appreciate your help and understanding. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Frank Delgado, Public Works Department A resident sent an e-mail thanking Frank for responding quickly to her request for street sweeping in her neighborhood. She said she appreciated his prompt service and he did a great job. . . . . Department: City Secretary Presented by: Subject: Adjournment CITY OF NORTH RICHLAND HILLS Council Meeting Date: 6-26-2006 Agenda No. F.1 0