HomeMy WebLinkAboutCC 2008-06-17 MinutesMINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE
CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN
THE LIBRARY COMMUNITY ROOM, 9015 GRAND AVENUE,
NORTH RICHLAND HILLS, TEXAS,
JUNE 17, 2008 - 6:00 P.M.
1.
CALL TO ORDER
Mayor Trevino called the work session to order at 6:00 p.m.
Present: Oscar Trevino Mayor
Scott Turnage Mayor Pro Tem, Council Place 6
Ken Sapp Council, Place 2
Suzy Compton Council, Place 3
Tim Barth Council, Place 4
David Whitson Council, Place 5
Tim Welch Council, Place 7
Staff Members: Larry J. Cunningham City Manager
Jared Miller Assistant City Manager
Karen Bostic Managing Director
Patricia Hutson City Secretary
Larry Koonce Director of Finance
Mark Mills Budget Director
Mary Peters Public Information Officer
Elizabeth Reining Assistant to City Manager
Patrick Hillis Human Resources Director
Mike Curtis Public Works Director
Jimmy Perdue Police Chief
John Pitstick Director of Planning & Development
Absent: John Lewis Council, Place 1
2.
DISCUSS PLANNING AND PROGRAM OF SERVICES
FOR FISCAL YEAR 2008/2009
City Manager Cunningham outlined the agenda. Purpose of the work session is to
provide information regarding the City's 2008/2009 preliminary budget, information on
current and future issues that will affect city services and impact the budget and to
receive input from Council on planning next year's program of services. During budget
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June 17, 2008
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preparations, the Council's goals and priorities, data from the Citizen Survey and needs
of the community were taken into consideration. Council was reminded that information
being presented and discussed was very preliminary.
Mr. Larry Koonce, Finance Director, presented information on fiscal year 2006/07 Fund
Balances, the use of fund reserves and the rebuilding of reserves. Council was advised
of some of the challenges faced to maintain and rebuild the reserve funds and
successes in 2007 in rebuilding the reserves.
Mr. Mark Mills, Budget Director, reviewed the 2007-2008 revised and year-to-date
budget highlighting the 2008 revised vs. adopted budget revenues and expenditures for
the General and Utility Funds and the major impacts to the revenues and expenditures.
Mr. Koonce discussed with Council the preliminary tax roll for 2008, the distribution of
tax revenues and how the estimated General Fund Tax Revenues are calculated. Mr.
Koonce explained the effective tax rate and the preliminary calculation of the effective
tax rate at 57 cents.
Mr. Mills gave a brief overview of the fiscal year 2009 preliminary budget and a
comparison was given of the 2008 adopted versus 2009 preliminary budget. Mr. Mills
highlighted the impacts to revenues and expenses in the General Fund.
Staff presented Council with the following current issues:
• Texas Municipal Retirement System (TMRS) - Mr. Patrick Hillis, Human
Resources Director, briefed the Council on the history of the Texas Municipal
Retirement System, explaining the funding sources and recent policy changes by
the TMRS board. Mr. Hillis discussed actuarial and investment policy changes
and how the changes will impact North Richland Hills. Mr. Hillis compared North
Richland Hills benefits and retirement costs with area cities and reviewed the
City's current plan versus benefit options. Staff sought direction from Council on
the following:
1) With the ability to fund, is Council interested in maintaining the current
level of TMRS retirement benefits for employees and retirees?
2) Would Council like to adopt the 8-year phase-in option for calendar
year 2009 while legislative changes are being considered?
3) If not, what benefit options would Council like Staff to analyze?
4) With the ability to fund, would Council want staff to consider voluntary
contributions towards reducing the City's TMRS unfunded liability?
After brief discussion by Council, the Council was interested in maintaining the
current level of TMRS retirement benefits for employees and retirees. The
Council was supportive of the 8-year phase-in option and building reserves to
meet unfunded liabilities.
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June 17, 2008
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• Discretionary Gas Franchise Fee Increase - Ms. Karen Bostic advised that
pursuant to the recent Settlement Agreement, at a city's request, Atmos would
approve the execution of or amendment to the city's franchise agreement to
increase franchise fee payments. Currently the gas franchise fee is 4%, which
equates to $375,000 to $400,000 in revenue to the General Fund per year. An
increase of 1% to the franchise fee would generate approximately $100,000
more per year. The increase in the franchise fee would be passed on to Atmos
customers as an increase in their monthly bills. The increase to the franchise
payment is discretionary and not mandatory. Staff sought direction from Council
on whether they were supportive of modifying the franchise agreement with
Atmos Energy to increase the franchise fee by 1 %. After brief discussion,
Council was not supportive of an increase to the franchise fee that would pass on
to the citizens.
• Ambulance Fee Study - Mr. Miller presented information on the city's fees for
ambulance service for residents and non-residents. EMS ambulance service
fees are set by Council, and reviewed and adjusted annually based on the
Consumer Price Index (CPI). The CPI adjustments have not kept pace with the
rising costs of ambulance fees. A survey of area ambulance fees conducted by
Fire Department Staff indicates that the City should consider a base fee increase
to bring the City's ambulance fees in line with the fees charged for similar EMS
ambulance services in the area. North Richland Hills base rates for
residents/non-residents are $363/$495 compared to $778/$830 for communities
with similar services. North Richland Hills does not charge for treat-no-transport
calls and area communities average treat-no-transport fee is $206.00. The
current calculation for cost per EMS call in NRH is $809.00. Staff proposes to
structure the ambulance fees based on a percentage of cost recovery. Staff
sought direction from Council on 1) whether they were comfortable with
increasing EMS ambulance fees; 2) is the average of the comparison
communities an acceptable rate to charge; and 3) is Council comfortable with a
fee for treat-no-transport calls. After discussion by the Council, Council was
agreeable to increasing EMS ambulance fees and the consensus was that there
should also be a fee for treat-no-transport calls. Council was in favor of phasing
the resident fee increase over a two to three year period with a goal of 60% cost
recovery. Council was also in favor of a 67% cost recovery for non-residents and
felt it should be comparable to the surrounding cities.
• Preventive Street Maintenance Program - Mr. Mike Curtis, Public Works
Director, presented information on the Preventive Street Maintenance Program.
For the past few years, Council has approved $800,000 for the program with the
intent of using the additional funds to make improvements to more streets.
Inflation and rising construction costs have affected the number of streets
improved through the program. Since 2006, there has been a 55% increase in
asphalt, 24% increase in concrete, 10% increase in curb and gutter and an 8%
increase in slurry seal. If inflation continues as it has, it will take $900,000 to
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June 17, 2008
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complete the same number of lane miles in 2009 as $800,000 completed in
2008. Staff has tentatively budgeted $800,000 for the program in the fiscal year
2008/2009 preliminary budget. Council was asked 1) if revenues are available,
would Council like to fund the program at the same level as current year
($800,000) or fund at a higher level; and 2) if Staff cannot find excess of
$800,000 in the General Fund for the Program, is Council receptive to using
alternate funding sources. Council discussed the streets included in the average
overall street rating (newly developed streets, reconstructed streets under the
Bond Program, and the Preventive Maintenance Program) and suggested Staff
consider removing newly developed streets from the overall street ratings or
developing a neighborhood street condition rating. Council felt that the Program
should be funded for at least $900,000.
• Recreation Center (Cost Recovery, Cost of Operations) - Mr. Miller discussed
with Council the new Recreation Center to be located south of Mid Cities, north
of Boulevard 26. Funding for maintenance and operations of the new facility will
be derived from memberships and fees, the current level of funding in the
General Fund, and Parks '/2 Cent Sales Tax. The Executive Summary of the
Leland Study suggested a 75% cost recovery for the new facility. To achieve this
level of cost recovery, pricing of memberships and programs will need to be
established accordingly. The Professional Services Agreement with Brinkley
Sargent Architects (BSA) includes Financial Feasibility and Business Modeling
with projected expenses and revenues based on the design and mix of
amenities. The membership rates will be based on projected expenses/revenues
in 2010 for the new facility. At the future facility, all rates will need to be adjusted
to achieve the 75% cost recovery and the rates are projected to be substantially
higher than the current rate of $75.00. Council was asked if they would continue
to support the 75% cost recovery goal. After discussion, the Council concurred
with continuing to support the 75% cast recovery goal.
Mayor Trevino recessed the work session at 8:10 p.m. and called the work session back
to order at 8:16 p.m. with same members present as previously recorded.
• Replacement of Network and Communications Infrastructure - Ms. Bostic
advised of a proposed capital project that consists of replacing the City's network
and telephone hardware. The current network hardware is five years old and is
no longer being manufactured. The City's phone system is ten years old and the
manufacturing of the system and parts was discontinued shortly after it was
installed. The City installed Cisco equipment at the new Library positioning the
City to standardize on Cisco equipment for the remainder of its facilities. Council
was advised of the benefits to replace both systems at the same time and asked
if Council would be supportive of combining both projects into one. After brief
discussion by Council, the Council concurred with combining the two projects.
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June 17, 2008
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• Rail Initiatives - Mr. Curtis presented information on initiatives for passenger rail
service. The Southwest-to-Northeast Transportation Corridor Study evaluated
the potential implementation of various transportation technology options from
new freeways, to new High Occupancy Vehicles lanes, to bus route expansion,
to rail technologies. The study culminated in the determination of a Locally
Preferred Alternative (LPA) which was the addition of a passenger rail system
along DARTS's current Cottonbelt rail line. The Environmental Impact Statement
is anticipated to be completed in June 2008 and a 45-day public comment time
period will begin thereafter. The current timeline for initial passenger rail service
in this corridor is late 2012 to early 2013. The main hurdle to adding passenger
rail service on the existing Cottonbelt line is the costs involved for implementation
and the continued costs of maintenance and operations for this service. Council
was advised of funding challenges. Mayor Trevino further explained funding
options under consideration by Rail North Texas, a subcommittee of the Regional
Transportation Council. Options under consideration by the subcommittee are
increase in the sales tax, a gas sales tax, a motor vehicle sales tax, increase in
the motor vehicle registration fee, a local option gas tax, a vehicle miles driven
tax, a new resident impact fee, a transportation property tax and local subsidy
options. Council was asked if they have a preference for the currently
considered funding options or if they are opposed to any of the currently
considered funding options. Council did not indicate any preferences or
opposition to the options presented.
• Sustainable Development Planning -Mayor Trevino asked Mayor Pro Tem
Turnage to chair the discussion on this item and advised that he will abstain from
discussion because his wife owns land in the area. Mr. Pitstick presented
information on planning efforts for future commuter rail access and a transit
oriented mixed-use district around the future Iron Horse and Smithfield rail sites.
Council was asked if they wanted to set aside additional funds for land and
development for future rail sites and if Council would be interested in other
funding options for capital improvements at future rail sites (bond packages, TIF
district, regional grants). After discussion, Council concurred with setting aside
additional funds for land and development for future rail sites. Council was in
favor of looking at other funding options and Staff will bring back additional
information for Council to consider. Mayor Trevino resumed as Chair of the work
session on completion of the discussion of item.
• TIF #1 Expansion Efforts - Mr. Koance updated the Council on the possible
expansion of TIF #1. Staff received consensus from Council at the January 2008
Council meeting to proceed with developing a project plan and financing plan and
to meet with all taxing entities to obtain participation in the expansion. The
Mayor and City Manager met with BISD and Tarrant County College and interest
was expressed in further exploring expansion efforts. Staff met with
representatives from Tarrant County and Tarrant County Hospital District and
also received favorable reactions to the expansion. Tarrant County
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June 17, 2008
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representatives suggested consideration be given to a larger expansion of the
TIF boundaries and extending the timeframe beyond the remaining 10 years. As
a result of the meeting with Tarrant County officials, Staff explored expanding TIF
boundaries to include atl commercial properties in the Boulevard 26 corridor area
(except North Hills Hospital and Calloway Creek property) from the southern City
limits to Loop 820 increasing TIF property area from 211 to 392 acres. This will
increase the potential growth of property values from $12 million to over $30
million in 10 years. The increased property values increased the capacity of
public projects from $2 million to $3.5 million. The City's bonding attorneys have
advised that the timeframe cannot be extended beyond its original length.
Council was presented with two options for the TIF #1 expansion. Option #1
places emphasis on burying utilities and improving two major intersections for a
total of $3.5 million. Option #2 places emphasis on major intersections and
gateways for a total of $3.5 million. Council was asked if the City should
recommend extending the TIF #1 boundaries to include all commercial properties
in Boulevard 26 corridor area (except North Hills Hospital and Calloway Creek
property) from southern city limits to Loop 820 and was Council in favor of
pursuing TIF #1 Expansion for Option 1 or Option 2. After discussion, Council
was in favor of extending the TIF #1 boundaries to include all commercial
properties in the Boulevard 26 corridor area with the exception of North Hills
Hospital and Calloway Creek property. Council was also supportive of Option
#1.
• Public Facilities South of Loop 820 - Mr. Miller discussed with Council the former
Food Lion Building. The site was acquired with the intent of providing various
community services. In 2006 the facility was damaged by copper theft. Council
was advised of the claim filed with TML-Intergovernmental Risk Pool for
damages. The original claim amount was $445,590.25 of which the City has
received $254,534.74. The City has a $25,000 deductible, resulting in a potential
remaining balance of $167,055. The remaining balance will only be paid to the
City upon repair or replacement of the damage. The City is to provide TML Risk
Pool with a copy of the contract and construction plans and will need to submit
appropriate documentation showing expenses incurred and progress to date for
further consideration of the remaining balance to be paid. Staff discussed with
Council the architect's preliminary plans for a Community Center at this location
and estimated project cost. Staff advised they have also obtained a geotechnical
study to evaluate the movement that has occurred within the building and a
structural engineer's evaluation. Staff requested direction from the Council on
the following: 1) In order to have an opportunity to receive the balance of the
damages, the City will need to prepare design and construction documents and
move forward with site development. Does Council wish to move forward with a
project; and 2) Is Council comfortable using the current insurance proceeds to
fund the engineering and design of a community facility? Council discussed the
facility and was supportive of doing something with the facility, but requested
additional information for further evaluation. Council questioned what the cost
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June 17, 2008
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would be to demolish the building and build a new facility and suggested that
Staff explore the feasibility of covering the cracked slab with a false deck.
Council was comfortable with using the insurance proceeds to fund the
engineering and design.
Staff presented Council with the following future issues:
• South Holiday District Improvement Program - Ms. Reining discussed with
Council a program that would emphasize preservation of the South Holiday
District neighborhoods. Several city departments would work together in the
district to maintain the infrastructure and work with the homeowners to renovate
their homes and target houses in need of repairs by connecting homeowners
with volunteer groups and the Neighborhood Improvement Program. The
Council was agreeable to concentrating preservation efforts in the South Holiday
District.
• Property Tax Caps/ Restrictions on Appraisals - Ms. Bostic informed Council of
the continued threat of legislation being introduced that will limit the amount of
revenues cities could earn, place caps on the amount of property taxes that could
be raised and place restrictions on appraisals, including a reduction of the
amount appraisal could increase per year. Council was agreeable to the City
continuing the strategy of opposing revenue and appraisal caps that will be
introduced in the next legislative session.
• Legislation Allowing Multijurisdictional TIFs - Ms. Bostic advised Council that
Staff would like to seek legislation in the 2009 legislative session to allow inter-
city TIFs to help fund projects such as the one between North Richland Hills and
Richland Hills along Boulevard 26. Currently State law does not allow a TIF to
cross city limit boundaries. A TIF between two cities could fund projects along
common boundaries. Council was supportive of Staff moving forward with
introducing legislation that would allow inter-city TIFs.
• H.R. 980 the Public Safety Employer-Employee Cooperation Act of 2007 - Ms.
Bostic advised of legislation introduced in 2007 that would grant collective
bargaining rights to public safety employees, including law enforcement officers,
firefighters and emergency medical services personnel. The House has passed
the legislation and it is currently pending in the Senate. The City believes that
H.R. 980 is a duplication of similar legislation known as Meet and Confer passed
during the 79th Texas Legislative session and that the federal government should
not undermine municipal authority with respect to making fundamental
employment decisions. Council was supportive of Staff and the City's
consultants continuing the strategy of opposing collective bargaining at the
Federal level of government.
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June 17, 2008
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3.
ADJOURNMENT
Mayor Trevino adjourned the work session at 9:41 p.m.
APP VED:
Oscar Trevino -Mayor
Patricia Hutson -City Secretary