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HomeMy WebLinkAboutCC 2008-08-26 AgendasCITY 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 Tuesday, August 26, 2008 5:30 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2008-094 Discuss Nomination of Tyson Prepared Foods, Inc. as a Texas Enterprise Project (10 Minutes) A.3 IR 2008-095 Discuss dates for joint City Council and Planning & Zoning Commission work sessions for adoption of new mixed use transit oriented development code (5 Minutes) B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase of real property at: 5005 Cummings Dr. B.2 Executive Session: Pursuant to Section 551.072, Texas Government Code to Deliberate the Lease of City Property (Mineral Leases) C.0 Adjournment ~:Prtifi~atinn 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 August 22, 2008 at ~'• ~'~ Q •~ ~ ^~. n ~~~ i 1~ f, A sis nt i y Secretary ~j 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. August 26, 2008 -City Council Agenda Page 1 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Tuesday, August 26, 2008 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: ^ Library on the Friday prior to the meeting (available electronically) ^ 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.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Sapp A.2 Pledge -Councilman Sapp A.3 Special Presentation(s) and Recognitions) -Keep NRH Beautiful August Yard of the Month Awards presented by Councilman Barth A.4 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or 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. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.5 Removal of Item(s) from Consent Agenda B.0 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 August 26, 2008 -City Council Agenda Page 2 of 4 t requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of August 11, 2008 City Council Meeting B.2 PW 2008-024 Recommend Award of Bid for the 32nd Year CDBG Project: Jackie Lee Street (Glenview Drive to Dead End) Paving Improvements to Stabile & Winn, Inc. in the amount of $244,499.75 -Resolution No. 2008-050 B.3 PU 2008-027 Awarding RFB 08-035 Roof Repairs and Replacements to BENCO Commercial Roofing, Paragon Roofing, Inc. and Anchor Roofing Systems in the amount of $838,459 B.4 PU 2008-026 Approve the Purchase of Cartegraph Software - Waterview, Sewerview and GEOdataconnect in the amount of $105,832. C.0 PUBLIC HEARINGS C.1 GN 2008-079 Conduct Public Hearing on Proposed 2008-2009 Budget C.2 GN 2008-080 Conduct Public Hearing on Proposed Tax Rate C.3 GN 2008-081 Conduct Public Hearing on Nomination of Tyson Prepared Foods, Inc. as a Texas Enterprise Project C.4 GN 2008-081 Approval of Ordinance No. 3010 nominating Tyson Prepared Foods, Inc. (This item is not a public hearing but related to Item C.3) D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 PW 2008-022 Amend Code of Ordinances, Section 78-65 (a), Lawn and Landscape Irrigation Restrictions -Ordinance No. 3009 E.2 PW 2008-023 Approve Engineering Agreement with Teague Nall and Perkins, Inc. for the Aegon Lift Station Expansion Project in an Amount not to exceed $160,000 F.0 GENERAL ITEMS F.1 GN 2008-076 Renewal of Interlocal Agreement between the cities of North Richland Hills and Southlake for Animal Impoundment August 26, 2008 -City Council Agenda Page 3 of 4 V F.2 GN 2008-077 Authorize the City to Continue Participating with the Atmos Cities Steering Committee -Resolution No. 2008-049 F.3 GN 2008-078 Award a Professional Services Agreement in the amount of $85,000 to Gateway Planning Group for Development of a Mixed Use Transit Oriented Development Code to Encourage Development around the Iron Horse and Smithfield Commuter Rail Station Sites F.4 GN 2008-075 Compliance with Senate Bill 12 Emissions Reduction Plan -Resolution No. 2008-048 G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Lewis H.2 Adjournment All items on the agenda are for discussion and/or action. C;Prtifi~ati~n 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 August 22, 2008 at ~' ~'~ p .~~~ n _ sist nt 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. August 26, 2008 -City Council Agenda Page 4 of 4 PUBLIC NOTICE The North Richland Hills City Council will conduct a public hearing on Tuesday, August 26, 2008 at 7:00 p.m. in the City Council Chambers in City Hall, located at 7301 N.E. Loop 820, North Richland Hills, Texas 76180 to consider comments concerning the adoption of an ordinance to participate in the Texas Enterprise Zone Program, and to consider and nominate Tyson Prepared Foods, Inc., located at 6350 Browning Court, North Richland Hills, Texas 76180, to the Office of the Governor Economic Development and Tourism as a Texas Enterprise Project. Possible tax incentives that may be offered to projects within the City of North Richland Hills will be discussed at the hearing. All interested parties are encouraged to attend and present their views. For additional information, please contact Mr. Jared Miller, Assistant City Manager, at 817- 427-6006. C~Prtifi~atinn This public notice was posted on the bulletin board of the City of North Richland Hills, in City Hall at 7301 N.E. Loop 820, North Richland Hills, Texas 76180 at U~~ p.m., August 18, 2008. ~~ ity Secretary 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 Tuesday, August 26, 2008 5:30 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2008-094 Discuss Nomination of Tyson Prepared Foods, Inc. as a Texas Enterprise Project X10 Minutes) A.3 IR 2008-095 Discuss dates for joint City Council and Planning & Zoning Commission work sessions for adoption of new mixed use transit oriented development code (5 Minutes) B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.072, Texas Government Code__to deliberate the purchase of real property at: 5005 Cummings Dr. B.2 Executive Session: Pursuant to Section 551.072, Texas Government Code to Deliberate the Lease of City Property (Mineral Leases) C.0 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8-26-2008 Presented by: Agenda No. A.1 Subject: Discuss Items from Regular City Council Meeting INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-094 :, f ~''~ Date: August 26, 2008 ~~' `/ ~y~' Subject: Nomination for State Enterprise Project Designation for ~; .~ Tyson Prepared Foods Inc. in NRH Staff was approached by Tyson Prepared Foods, Inc. in seeking a nomination from the City of North Richland Hills to the State of Texas for an Enterprise Project designation. Tyson Prepared Foods, Inc., the world's largest processor and marketer of chicken, beef, and pork employs approximately 350 jobs at their 6350 Browning Court location. The local community where the location resides, in this case North Richland Hills, must nominate the business for enterprise project designation. In order to meet increased demand for their product, Tyson will be adding a new $9.6 million dollar Super Dice line at their NRH facility, further enhancing this location's value to the Tyson organization. To offset a portion of this expense, Tyson has contracted the services of Ryan Inc. to designate this location in the Texas Enterprise Zone Program. The Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment. The program's incentive allows a designated business to receive a $2,500 refund of state sales and use tax for a full time job over a five year period. For a business to participate, one of two qualifications needs to be met: (1) Business location needs to reside within an economically distressed area or areas of the state (2) Business location commits to employ at least 35% of their new employees that meet the economically distressed residency requirement An economically distressed location falls within a census block group that contains at least 20% of the population living at or below the poverty line. Since NRH does not contain, nor does the NRH Tyson location reside within an economically distressed location, Tyson Prepared Foods Inc. is seeking nomination through the employment option (2). ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ Tyson is committed to retain its existing level of employment (approximately 350 jobs) for the five-year designation period that ends on September 2, 2013. Under this program, the maximum benefit to Tyson would be the potential refund of state sales and use taxes in the amount of $875,000. The nomination of Tyson Prepared Foods, Inc. by the City of North Richland Hills for designation as a State Enterprise Project will not obligate the City to provide any incentives, nor will it have any associated costs fo the City. Since there is no adverse impact to local sales and use tax revenues, in addition to NRH's long term interest in the well-being of Tyson Prepared Foods Inc., staff is recommending that the City nominate Tyson Prepared Foods, Inc. for this program. This matter requires a public hearing and Council formal action, which is planned for the August 26 Council meeting. We would like to further discuss this at the Work Session. Respectfully Submitted, Craig Hulse Economic Development Director INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-095 ,,. ;~~,. Date: August 11, 2008 ,; . '~~~"'~ ~`~`~ Subject: Dates for joint City Council and Planning & Zoning :~ ,~ ,~ Commission Work Sessions for the New Mixed Use Transit Oriented Development Code At the August 26 Council meeting, staff is recommending the award of a Professional Services Agreement for the development of a new Mixed Use Transit Oriented Development Code and Strategy (GN 2008-078). With this project we plan to see a new development code proposed for the future Iron Horse and Smithfield rail stations. We are hopeful this can be developed, reviewed, and adopted by April, 2009. By completing the project in April staff will have time to submit proposed projects for the North Central Texas Council of Government's (COG) 2009 sustainable development grant call for projects. Staff anticipates the need for a few joint work sessions with Council and the Planning and Zoning Commission during the development of the transit oriented code. There is also anticipated to be a series of meetings held by City Staff and the Consultant with the Council of Governments staff, The "T" and the surrounding property owners and other stakeholders. Since two of the necessary work sessions involve Council and the Planning and Zoning Commission, staff wanted to discuss some possible joint meeting (work session) times with Council so that we can get dates on Council's calendars. At this time staff is suaaestina two dates. These are: Thursday, November 20 and Thursday, February 5 for joint work sessions. We are requesting consensus from Council to formalize these dates or to select other possible dates. It would be most helpful if Council can brina vour calendars to the worksession so that we can._decide on two dates. Attached is a "tentative" Project Schedule. Respectfully Submitted, John Pitstick Director of Planning and Inspections ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~~ PROJECT SCHEDULE FOR' MIXED USE TRANSIT ORIENTED DEVELOPMENT CODE Date(s) Event Who August 26, 2008 Consultant contract Gateway (Scott) and City approved by City Council September 5 (9:00 a.m.- Project kick off meeting Gateway (Scott & Jay), city noon) staff, The T, and NCTCOG September 29/30, Stakeholder Meetings Gateway (Scott & Jay), city October 1 staff and stakeholders Week of October 13 - 17 (2 Design Workshop (1 day for Gateway (Scott, Jay, & days) each station area; 2 Milosav), city staff, key consecutive days) stakeholders, T staff, NCTCOG staff October 29 Meeting with staff to Gateway (Scott & Jay) and discuss code options city staff November 20 Joint P&Z and CC work Gateway (Scott & Jay) and session on workshop city results and code options Nov/Dec Draft code Gateway Jan/Feb 2009 Review draft code with city Gateway and city staff staff Feb 5, 2009 Joint P&Z and CC work Gateway and city session on draft code March 19, 2009 P&Z public hearing and Gateway and city recommendation April 13, 2009 City Council public hearing Gateway and city and adoption CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8-26-2008 Presented by: Agenda No. B.0 Subject: EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 8-26-2008 Agenda No. B.1 Subject: Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase of real property at: 5005 Cummings Dr. CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Jared Miller Council Meeting Date: 8-26-2008 Agenda No. B.2 Subject: Executive Session: Pursuant to Section 551.072, Texas Government Code to Deliberate the Lease of City Property (Mineral Leases) CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. C.0 Subject: Adjournment 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 Tuesday, August 26, 2008 7:00 P.M. A.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Sapp A.2 Pledge -Councilman Sapp A.3 Special Presentation(s) and Recognitions) -Keep NRH Beautiful August Yard of the Month Awards presented by Councilman Barth A.4 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or 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. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.5 Removal of Items) from Consent Agenda B.0 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 August 11, 2008 City Gouncil Meeting B.2 PW 2008-024 Recommend Award of Bid for the 32nd Year CDBG Project: Jackie Lee Street Glenview Drive to Dead End) Paving Improvements to Stabile & Winn, Inc. in the amount of $244,499.75 -Resolution No. 2008-050 B.3 PU 2008-027 Awarding RFB 08-035 Roof Repairs and Replacements to BENCO Commercial Roofin~c~ Paragon Roofing, Inc. and Anchor Roofing Systems in the amount of $838,459 B.4 PU 2008-026 Approve the Purchase of Cartegraph Software - Waterview, Sewerview and GEOdataconnect in the amount of $105,832. C.0 PUBLIC HEARINGS C.1 GN 2008-079 Conduct Public Hearing on Proposed 2008-2009 Budget C.2 GN 2008-080 Conduct Public Hearing on Proposed Tax Rate C.3 GN 2008-081 Conduct Public Hearing on Nomination of Tyson Prepared Foods, Inc. as a Texas Enterprise Project C.4 GN 2008-081 Approval of Ordinance No. 3010 nominating Tyson Prepared Foods, Inc. (This item is not a public hearing but related to Item C.3) D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 PW 2008-022 Amend Code of Ordinances, Section 78-65 (a), Lawn and Landscape Irrigation Restrictions -Ordinance No. 3009 E.2 PW 2008-023 Approve En. ineering Agreement with Teague Nall and Perkins, Inc. for the Aegon Lift Station Expansion Project in an Amount not to exceed 160 000 F.0 GENERAL ITEMS F.1 GN 2008-076 Renewal of Interlocal Agreement between the cities of North Richland Hills and Southlake for Animal Impoundment F.2 GN 2008-077 Authorize the City to Continue Participating with the Atmos Cities Steering Committee -Resolution No. 2008-049 F.3 GN 2008-078 Award a Professional Services Agreement in the amount of $85,000 to Gateway Planning Group for Development of a Mixed Use Transit Oriented Development Code to Encourage Development around the Iron Horse and Smithfield Commuter Rail Station Sites F.4 GN 2008-075 Compliance with Senate Bill 12 Emissions Reduction Plan - Resolution No. 2008-048 G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session A ends H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Lewis H.2 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. A.0 Subject: Call to Order -Mayor Trevino CI TY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. A.1 Subject: Invocation -Councilman Sapp CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. A.2 Subject: Pledge -Councilman Sapp CITY OF NORTH R/CHLAND HILLS Department: Neighborhood Services Council Meeting Date: 8-26-2008 Presented by: Holly Bullington and Councilman Tim Barth Agenda No. A.3 Subject: Special Presentation(s) and Recognitions) -Keep NRH Beautiful August Yard of the Month Awards presented by Councilman Barth AREA 1 Chanda & Cary Dromgoole, 4009 Diamond Loch West AREA 2 Jack & Janie Shelton, 6724 Briley Dr. AREA 3 Jerry & Bonnie Blaylock, 4808 Lariat Trail AREA 4 Mark Schneider, 7104 Trinidad AREA 5 Olivia McCartney, 5904 Pedernales Ridge AREA 6 Jo Ann Bade, 7617 Frankie B Street AREA 7 Donna & Perry Wright, 6920 Clift AREA 8 Valentina Toney/Camellia Hardin, 7740 Western Oaks AREA 9 Ed Lichte & Kathleen Newton, 8025 Hunter Lane Business Landscape Winner Franklin Park Retirement, 6350 Winter Park Drive Melissa Arnold, Executive Director CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8-26-2008 Presented by: Agenda No. A.4 Subject: Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or 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. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. A.5 Subject: Removal of Item(s) from Consent Agenda CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8-26-2008 Presented by: Agenda No. B.0 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 Council Meeting Date: 8-26-2008 Presented by: Agenda No. B.1 Subject: Approval of Minutes of August 11, 2008 City Council Meeting Recommendation: To approve the minutes of the August 11, 2008 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 -AUGUST 11, 2008 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 11t" day of August, 2008 at 5:45 p.m. in the Council Work Room prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Scott Turnage Mayor Pro Tem, Council Place 6 John Lewis Council, Place 1 Suzy Compton Council Place 3 Tim Barth Council, Place 4 David Whitson Council, Place 5 Staff Members: Larry J. Cunningham City Manager Jared Miller Assistant City Manager Karen Bostic Managing Director Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer John Pitstick Director of Planning & Development Larry Koonce Finance Director Mike Curtis Public Works Director Jimmy Perdue Police Chief Andy Jones Fire Chief Craig Hulse Economic Development Director Mark Mills Budget Director Stephanie East Health Supervisor Vickie Loftice Director of Parks and Recreation Joe Pack Parks Capital Project Superintendant Eric Wilhite Chief Planner Steve Brown Library Director Absent: Ken Sapp Council, Place 2 Tim Welch Council, Place 7 Call to Order Mayor Trevino called the work session to order at 5:45 p.m. A.1 Discuss Items from Regular City Council Meeting Larry J. Cunningham, City Manager advised Council of a problem with the agenda. The software that generated the posted agenda failed to print Section H containing the Information and Reports. However, Section H did print in the agenda packet that was received by Council and posted to the website. Council was advised that Mr. Robert Earley who was scheduled to present the JPS Report during the Information and Reports would instead be submitting a request to speak during Citizens Presentation and Councilman Whitson would submit a citizens presentation request to make the announcements. Council was requested to consider a motion during the regular meeting suspending the Council Rules so that the Citizens Presentation requests pertaining to the JPS Report and the Announcements be moved to the end of the meeting and the three-minute time limit waived. Jared Miller, Assistant City Manager introduced Craig Hulse, the city's new Economic Development Director. A.2 IR 2008-087 Update on Restaurant Health Scores Online Stephanie East, Environmental Health Supervisor presented a PowerPoint presentation updating Council on City Restaurant Health Scores that can now be found on the NRH website. Highlights included: Scores Now Online • Facility name, address, phone number, date of inspection, and score • Updated monthly Inspection Frequency • Approximately 300 food establishments • Scored inspections performed at least 1 - 4 times annually • Frequency based on priority classification • Types of food and population served determines priority Low Priority Facilities • Inspected 1 - 2 times annually • Prepackaged food and drink or food/drinks that require minimum handling • i.e. convenience stores Medium Priority Facilities • Inspected 2 - 3 times annually • Precooked foods and food and drinks that require minimal handling • i.e. sandwich shop, bakery, retail grocery High Priority Facilities • Inspected 3 - 4 times annually • Extensively handles food, prepares food from raw state • Serves a highly susceptible population (people with health risks, preschool age- children, older adults) • i.e. full service restaurant, fast food, meat market, hospital and child care kitchens Demerit System • 0 demerits =perfect score • 10 demerits =meets expectations • 15 demerits =satisfactory score • 25 demerits =requires re-inspection • 30 demerits =indicates serious conditions Critical Violations • Higher point violations • Require immediate response and resolution • Food temperature violations, including improper cooking, cooling, holding, or reheating • Incorrect employee practices and hygiene Noncritical Violations • Lower point violations • Less immediate health and safety concern • Building and physical facility conditions • Proof of proper food safety training • Overall score may include a combination of critical and non-critical violations Compliance with Inspection Report • Timeline to comply • Follow-up inspections • Strive to work with businesses and achieve positive, cooperative relationships Scores are a Snapshot • Represent the conditions at time of unscheduled inspection • May be better or worse when inspector is not present • May or may not be a true representation of overall facility conditions Tour of Site • http://www.nrhtx.com/dept ns foodinspection.aspx There were no questions from the Council. A.3 IR 2008-088 First Aid and CPR Class Update Andy Jones, Fire Chief updated Council on the importance of CPR. It is common knowledge that after someone stops breathing, or their heart stops beating, they can survive for only four to six minutes before lack of oxygen results in brain damage or death. CPR can buy that person extra time, by artificially circulating oxygenated blood to the brain, until one of the Fire Department ambulances can arrive. The country's #1 killers, heart attacks and accidents, claim a life every 34 seconds in the U.S. By training as many people as possible, the City of North Richland Hills Fire Department is doing its part in making sure that when one of our citizens has a cardiac event, the likelihood of there being someone close by to help is increased. The NRH Fire Department offers CPR classes on a monthly basis, not only to the public but also to all City employees. Each class includes hands on instruction in CPR, plus training on how to use an Automated External Defibrillator (AED). The training is American Heart Association approved and participants receive a student manual and an AHA Certification Card. The cost to the general public is only $25.00 and City employees may attend any session free of charge. Classes are held at different times each month in an attempt to accommodate all that might be interested. Classes are scheduled alternating between afternoon, evening and some Saturdays. Classes are held in the Training Room at the North Richland Hills Fire Administration Building at 7202 Dick Fisher Drive. The Fire Department requires a minimum of five students per class. Councilman Lewis questioned if the Fire Department would go to a local business to train. Chief Jones advised that if requested the Fire Department would go to a business to train their employees. A.4 IR 2008-089 Library Events Update Steve Brown, Library Director updated Council on the first 100 days of operations in the new library. The use of the new library has climbed to new levels. • The total number of checkouts out in July was 28.0% higher than in July 2007. • Length of loan periods was extended from a 2 week to 3 week loan period • The RFID system (self check out system) currently 65 - 68% of checkouts are self-service, up from approximately 24% last year. • 1,757 new library cards were issued in June, compared to 760 issued in June 2007. In July there were 1,342 new cards issued compared to 637 the year before. • Librarians responded to 4,087 reference questions in June, compared to 3,104 a year ago, a 31 % increase. • Door counts showed 29,540 visitors in June and 27,414 in July. Door counts would likely be higher if not for the effect of longer loan periods which allow library users to make fewer trips to the library. • Summer Reading Club participation also rose, with an estimated 1,768 taking part in the program and reporting that they read for at least 22,340 hours during the eight week program. • Library Program attendance nearly doubled in July, up to 1,230 from 637 the year before. • There were 70,678 web visits to the library's catalog in June, a 60.4% increase from June 2007. In July the total was 66,973. • The Library has begun developing a series of programs for adults in the community. Local author Bobby Ozuna spoke in July. Long-time library volunteer Mary Green presented a quilting program on August 7. Nationally known novelist Sarah Bird is scheduled to speak on September 11, in what we hope will the beginning of a series of presentations by noted authors. • The library sponsors a very active Chess Club, and hosted a regional chess tournament over the past weekend. • One of the most significant programs is the small business counseling offered by S.C.O.R.E., the Service Corps Of Retired Executives. Under the leadership of Councilman John Lewis, S.C.O.R.E. volunteers are working to expand this already successful business assistance program. There were no questions from the Council. A.5 IR 2008-090 Champion Trees in North Richland Hills Vickie Loftice, Director of Parks and Recreation introduced Geoffrey Sherman, Landscape Horticulturalist. Mr. Sherman presented a PowerPoint presentation on Champion Tress found in the City of North Richland Hills. The City of North Richland Hills has identified within its borders one national, five state and ten regional champion trees as defined by the Texas Forest Service's Big Tree Program. Champion Criteria • Height • Circumference at 4.5 ft. above ground • Crown spread X .25 • Total index points • Co-champions within 5 index points NRH Champion Trees • Bald Cypress -Region Champion • Eastern Redcedar -Region Champion • Chinese Persimmon -Region Co-Champion • Chitalpa -Region Champion • Turkish Pine -Region Champion • Golden Raintree -State and Region Champion • Chinese Privet -State and Region Champion • Royal Paulownia -State and Region Champion • Chinese Parasol -State and Region Co-Champion • Texas Hercules Club -National, State and Region Champion Web sites for more information Texas Forest Service http://txforestservice.tamu.edu Texas Tree Trails http://www.texastreetrails.org American Forest http://www.americanforests.org NRH residents with champion trees were notified and given a Champion Tree Certificate. There were no questions from the Council. A.6 Adjournment Mayor Trevino announced at 6:28 p.m. that the Council would adjourn to the regular Council meeting. REGULAR COUNCIL MEETING A.0 CALL TO ORDER Mayor Trevino called the meeting to order August 11, 2008 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Suzy Compton John Lewis Tim Barth David Whitson Scott Turnage Staff: Larry J. Cunningham Jared Miller Patricia Hutson Monica Solko George Staples Absent: Ken Sapp Tim Welch Mayor Mayor Pro Tem, Council Place 3 Council, Place 1 Council, Place 4 Council, Place 5 Council, Place 6 City Manager Assistant City Manager City Secretary Assistant City Secretary Attorney Council, Place 2 Council, Place 7 A.1 INVOCATION Councilwoman Compton gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilwoman Compton led the pledge of allegiance. A.3 SPECIAL PRESENTATION(S) AND RECOGNITIONS) None. A.4 CITIZENS PRESENTATION Mayor Trevino announced that the presenter for the JPS Report was running late and asked that the Citizen's Presentation be moved to the end of the meeting. MAYOR PRO TEM TURNAGE MOPED THAT SECTION 2-6'~(~) OF THE C-ODE OF ORDINANCES AND THE ORDER OF BUSINESS RULES BE SUSPENDED SO THAT THE PORTION OF THE CITIZEN PRESENTATION PERTAINING TO JPS REPORT ON ACTIVITIES IN SCHOOLS AND THE ANNOUNCEMENTS BE MOVED TO THE END OF THE MEETING AND THE THREE MINUTE TIME LIMIT BE WAIVED. COUNCILMAN WHITSON SECONDED THE MOTION.. MOTION TO APPROVE CARRIED ~-Q. Mayor Trevino announced that Colton Jordan, Boy Scout Troop #98 from the City of Keller was also present in the audience. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.0 APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF JULY 28, 2008 CITY COUNCIL MEETING B.2 FP 2008-06 CONSIDERATION OF A REQUEST FROM CLIFFORD LAND COMPANY, LLC TO APPROVE A FINAL PLAT OF LOTS 1-29, BLOCK A; LOTS 1-4, BLOCK B; AND LOTS 1-4, BLOCK C, BRYNWYCK ADDITION (LOCATED IN THE 8800 BLOCKS OF MARTIN DRIVE AS WELL AS MID- CITIES BOULEVARD - 9.96 ACRES) COUNCILMAN LEVIIIS MOVED TO APPROVE THE CONSENT AGENDA.. COUNGI[.MAN EARTH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-0. PUBLIC HEARINGS C.1 ZC 2008-07 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM R. T. KOONCE TO APPROVE A ZONING CHANGE FROM AG (AGRICULTURAL) TO R-1- S (SPECIAL SINGLE FAMILY) FOR TRACT 3A3 IN THE D. MOSES SURVEY (LOCATED AT 7244 EDEN RD. -1.4 ACRES) -ORDINANCE NO. 3007 APPROVED Mayor Trevino opened the public hearing and called for the applicant to come forward. David Meyers representing the applicant came forward. He explained that the request was a simple zoning change and was available to answer any questions the Council might have. Eric Wilhite, Chief Planner, presented the item. The applicant is requesting a zoning change on a 1.4 acre parcel. The proposed rezoning being requested is from AG (Agricultural) to R-1-S (Special Single Family). At this time the applicant has indicated to staff there are no plans currently to construct a new home on the property or modify the existing residential structure. The existing residential structure will remain. This zoning as well as the plat that is being processed concurrently will simply bring the property into conformance so if such a time occurs re-development can occur. The Planning and Zoning Commission approved ZC 2008-07 by a vote of 6-0. 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 and called for the motion. COUNCILMAN EARTH MOVED TO APPROVE ZC 2008-0'7 ORDINANCE NO. 3007. COUNCILWOMAN COMPTON SECONDED THE MOTION. MOTION TO APPROVE CARRIEQ 5-0, C.2 ZC 2008-09 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM JON WESTROM TO AMEND AN RI-PD ZONING DISTRICT SITE PLAN TO ALLOW FOR GATED ENTRY AT CRESTWOOD ESTATES ADDITION, LOTS 11 R1-11 R23, BLK. 6 (LOCATED IN THE 8200 BLOCK OF STARNES RD.) -ORDINANCE NO. 3008 APPROVED Mayor Trevino opened the public hearing and called for the applicant to come forward. Barry Walling 1500 Brown Trail in Bedford, came forward. He explained that the request before the Council was to modify or amend the site plan to allow a gated entrance into the subdivision. He was available to answer any questions the Council might have. Eric Wilhite, Chief Planner, presented the item. The applicant, Jon Westrom, of Westrom and Walling Developers is requesting approval of a revision to the originally approved RI-PD site plan approved by Ordinance 2914 on 1-8-2007. During construction of the project the developer decided they would like to gate the subdivision. During the original RI-PD site plan approval, the street was created as a private street to be owned and maintained by the HOA. Because the street is private there is no issue with it being gated as there would be if dedicated as a public street. However, since during the original RI-PD site plan approval the subdivision was not indicated as being gated, a revision to the approved site plan is needed. No other conditions or requirements of the original RI-PD site plan (including fencing, common open spaces, architectural enhancements) approved by ordinance are being changed or amended. This revision will simply allow the development to be gated. The gated feature design has been reviewed by the Development Review Committee. Both the Fire Marshals office, Police and Public Works have reviewed and determined the design meets requirements for emergency access and traffic design. The Planning and Zoning Commission approved the amendment by a vote of 6-0. 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 and called for the motion. COUNCILMAN LEWIS MQVED TC~ APPRQVE CaRDINANCE IVQ, 3005, COUNGILWC~MAN ~+OMPTQN SECONDED THE MOTION. MOTION TES APPROVE CARRIED 5-0. D.0 PLANNING & DEVELOPMENT Items to follow do not require a public hearing. No items for this category. PUBLIC WORKS E.1 PW 2008-020 AWARD A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $100,000 TO DANNENBAUM ENGINEERING, INC. FOR THE SHADY GROVE ROAD STREET IMPROVEMENTS PROJECT (DAVIS TO CLAY-HIBBINS) APPROVED Mike Curtis, Public Works Director presented the item. This Capital Improvements Project (CIP) will consist of the design of Shady Grove Road from Davis Boulevard to Clay-Hibbins Road. The estimated cost of the entire project is $1,030,000. The project's design will include the widening of the roadway from the existing 18-feet wide asphalt street to a 40-feet wide concrete collector street in compliance with the City's Master Thoroughfare Plan (a Minor Collector with 2 undivided lanes). The City requested Requests for Proposals in accordance with city policy and proposals were received from 24 firms. The City's selections committee reviewed and evaluated the proposals and is recommending award of the professional services agreement to Dannenbaum Engineering, Inc. MAYOR PR4 TEM TURNAGE MOVED TO APPROVE PW 2008-020. COUNCILMAN WHITSf)N SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-0. E.2 PW 2008-021 AWARD A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $235,600.00 TO HALFF ASSOCIATES, INC. FOR THE DOUGLAS LANE STREET AND UTILITY IMPROVEMENTS PROJECT FROM HIGHTOWER DRIVE TO STARNES ROAD APPROVED Mike Curtis, Public Works Director presented the item. This Capital Improvements Project (CIP) will consist of the design of Douglas Lane from Hightower Drive to Starnes Road. The project's design will include widening the roadway from an existing 18-feet wide asphalt roadway to a 40-feet wide concrete collector street in accordance with the City's Master Thoroughfare Plan. The roadway design will include concrete sidewalks and an underground drainage system. The City requested Requests for Proposals in accordance with city policy and proposals were received from 29 firms. The City's selections committee reviewed and evaluated the proposals and is recommending award of the professional services agreement to Halff Associates, Inc. in an amount not to exceed $235,600. COUNCILMAN EARTH MOVED TO APPROVE PW 200802'1. COUNCILWOMAN COMPTON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-(}, GENERAL ITEMS F.1 GN 2008-073 SETTING DATE FOR PUBLIC HEARINGS FOR 2008-2009 CITY BUDGET, PARKS AND RECREATION FACILITIES DEVELOPMENT CORPORATION AND CRIME CONTROL AND PREVENTION DISTRICT BUDGETS APPROVED Mark Mills, Budget Director presented the item. It is necessary for City Council to set public hearings on the proposed annual 2008-2009 City Budget, proposed projects and operations of the Park and Recreation Facilities Development Corporation, and the Crime Control and Prevention District budgets. A published notice will be required for each public hearing per the City Charter and State law. Each hearing is set for August 26, 2008 beginning at 6:15 p.m. for the Park and Recreation Facilities Development Corporation, 6:30 p.m. for the Crime Control and Prevention District, and 7:00 p.m. for the proposed annual City Budget. COUNCILMAN WHITSON MOVED TO APPROVE GN 2008-073 SETTING THE DATE OF THE PUELIG HEARINGS ON THE PARK AND RECREATION FACILITIES DEVELOPMENT CORPORATION AND THE CRIME CONTROL AND PREVENTION DISTRICT, AND THE ANNUAL CfTY BUDGET ON AUGUST 26. MAYOR. PRO TEM TURNAGE SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-O. F.2 GN 2008-074 SETTING DATES FOR PUBLIC HEARINGS ON PROPOSED TAX RATE AND RECORD VOTE ON PLACING THE TAX RATE ADOPTION ON THE AGENDA OF THE SEPTEMBER 8, 2008 COUNCIL MEETING APPROVED Mark Mills, Budget Director presented the item. In follow up to the 2008-2009 Budget Work Session, it is necessary to begin the notice and public hearing procedures to establish a tax rate for the next fiscal year in accordance with the City Charter and State law. At the Work Session, Council consensus was to set the tax rate at 57¢, which is the same tax rate as the current year. If approved, this will be the 16t" consecutive year the tax rate has been 57¢. Per Senate Bill 567 of the 79t" Texas Legislative Session, if a municipality imposes a tax rate that exceeds the effective tax rate, the municipality is required to have a record vote to place a proposal to adopt the tax rate on the agenda of a future meeting as an action item. The effective tax rate is 56.3058¢ which is lower than the proposed tax rate of 57¢. The effective tax rate is the rate that would be applied to the July 2008 property tax values that would provide the same amount of revenue as the current tax year. State law further requires that a municipality hold two public hearings if the proposed tax rate exceeds the effective tax rate. The first tax rate public hearing is proposed to be held on August 26, 2008, a regularly scheduled Council Meeting with the second public hearing proposed for a Special Council Meeting on September 2, 2008. State law requires that a tax rate be adopted no sooner than 3 days after the second public hearing and no later than 14 days after the second public hearing. It is proposed that the tax rate be adopted at the September 8, 2008 Council meeting. COUNCILMAN 1NHITSON MOVED TO APPROVE GN 20Q8-074 TO SET THE REQUIRED HEARINGS FOR THE ADOPTION OF THE TAX RATE.. COUNCILMAN LEWIS SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-O. A.4 CITIZENS PRESENTATION #1 INFORMATION AND REPORTS IR 2008-086 JPS REPORT ON ACTIVITIES IN SCHOOLS Robert Earley, Interim CEO for JPS Health Network came forward. Mr. Earley thanked Council and citizens for all their support and the opportunity to come and speak on JPS services. JPS Health Network partners with school districts around Tarrant County to provide affordable healthcare to students and their siblings. JPS Health Network partners with Birdville ISD at Carrie F. Thomas Academy elementary school in North Richland Hills. JPS Health Network school-based health centers are geared toward keeping children healthy. The facilities offer health care to students and their siblings. Each visit is five dollars. A nurse practitioner on site provides multiple services to students such as annual physicals, immunizations, treatment for sore throats, colds and other illnesses. The health clinics also help with the management of chronic diseases such as acne, asthma, diabetes, allergies and weight problems. In addition, they provide health education programs on nutrition and exercise. All of the school health clinics, including the one located at Carrie F. Thomas Academy, are open on days when school is in session and offer appointments before and after school. All students attending Birdville ISD schools may use the clinic at Carrie F. Thomas Academy. JPS Health Network believes these school clinics are an integral part of their overall health coverage. Mayor Trevino asked Mr. Earley if he knew if there was an impact on visits to the county hospital? Mr. Earley did not have that information. Mayor Trevino asked the City Manager to provide information during a future council meeting's Information and Reports on the impact JPS school-based Health Centers have on the county hospital. #2 INFORMATION AND REPORTS ANNOUNCEMENTS Councilman Whitson made the following announcements. The City of North Richland Hills will display its Artists at Work employee art exhibit August 15th through August 23rd in the Recreation Center Assembly Room. For more details, please call 817-427-6614. The Companies in Action Volleyball Tournament will be held on Saturday, August 16th, at the NRH Recreation Center. Local businesses interested in competing in this event should call 817-427-6600 for more details. The August 25th City Council Meeting has been rescheduled to Tuesday, August 26th. The meeting will be held at 7 p.m. in the City Council Chambers. During this meeting, the City Council will conduct a public hearing on the proposed budget and tax rate. The NRH Police Department is accepting applications for the next session of the Citizens Police Academy (CPA). The CPA meets on Thursdays for 12 consecutive weeks from 7 p.m. to 10 p.m. The next session begins August 28th. For an application or more information, call Officer Bauman at 817-427-7021 or log on to nrhtx.com. Kudos Korner -Officer Rick Drake, Police Department. A homeowner called to thank Officer Drake for checking his residence after locating an open garage door. He stated he was glad to see that the officers patrolling his area are investigating suspicious circumstances. Mayor Trevino adjourned the meeting at 7:46 p.m. Oscar Trevino -Mayor ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 8-26-2008 Presented by: Mike Curtis Agenda No. B.2 Subject: PW 2008-024 PW 2008-024 Recommend Award of Bid for the 32nd Year CDBG Project: Jackie Lee Street (Glenview Drive to Dead End) Paving Improvements to Stabile & Winn, Inc. in the amount of $244,499.75 -Resolution No. 2008-050 This project consists of reconstructing the section of Jackie Lee Street from Glenview Drive to the dead end. Currently the street is a 30 feet wide asphalt street and will be reconstructed as a new 30 feet wide concrete street with sidewalks. This project is being funded through the Community Development Block Grant program, with Tarrant County administrating both the design and the construction phases of the project. On January 23, 2006 (GN 2006-009), Resolution No. 2006-005, the City Council approved the Jackie Lee Street (Glenview Drive to Dead End) Paving Improvements Project as the 32nd Year Community Development Block Grant (CDBG) project. Tarrant County entered into an agreement with an engineering firm to have the project designed. Tarrant County staff reviewed and approved the project for bidding. Bids were received by Tarrant County on August 6, 2008. A total of six contractors submitted bids; the three low bidders are summarized in the table below: Base Bid A & B (Concrete Pavement) Base Bid B & C (HMAC Pavement) Stabile & Winn, Inc. $244,499.75 No Bid Reliable Paving $264,672.50 $247,846.00 McClendon Construction $250,711.00 No Bid The bid prices include street reconstruction, storm drainage improvements and sidewalks. As indicated above Tarrant County will be administering the Project which will include award of the construction bid and construction management. However, Tarrant County's administration of the Project does not include construction inspection; the City will provide these services. Tarrant County is requesting the City to review and to recommend an award of the bid for this project. Both the City and County have had prior experience with this contractor on projects of similar scope and size and both believe Stabile & Winn to be a reliable contractor. The references provided have been verified and all indicate a good work performance on similar projects. Sufficient CDBG funds are available from Tarrant County for this project. The project budget includes the 32nd Year CDBG grant and $73,703.20 of cost savings associated with recently completed CDBG Projects. After the completion of the Project, it is estimated that there will be slightly in excess of $60,000 available to be used for next year's (33~d Year) CDBG Project (Charles Street). Construction is scheduled to begin in early October 2008 and take 120 days to complete. Recommendation: To recommend Tarrant County award the contract to construct the 32~d Year CDBG Project: Jackie Lee Street (Glenview Drive to Dead End) Paving Improvements to Stabile & Winn, Inc. with concrete pavement in the amount of $244,499.75. RESOLUTION NO. 2008-050 A RESOLUTION RECOMMENDING AWARD BY TARRANT COUNTY OF A BID ON A CDBG PROJECT FOR THE RECONSTRUCTION OF A PORTION OF JACKIE LEE STREET WITHIN THE CITY OF NORTH RICHLAND HILLS. WHEREAS, by resolution 2006-005 passed January 23, 2006 (GN 2006-009), the City Council approved the Jackie Lee Street (Glenview Drive to Dead End) Paving Improvements Project (the "Project") as the 32nd Year Community Development Block Grant (CDBG) project; and, WHEREAS, project was bid by Tarrant County and the County's consultant and City staff have recommended award of the bid to Stabile & Winn, Inc; and WHEREAS, Tarrant County desires a recommendation by the City Council of the City of North Richland Hills; NOW THEREFORE; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT the City of North Richland Hills hereby recommends for Tarrant County to award the contract for the reconstruction of Jackie Lee Street to Stabile & Winn, Inc for base bid A & B (Concrete Pavement) in the amount of $244,499.75. AND IT IS SO RESOLVED. PASSED AND APPROVED on the 26th day of August, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Mike Curtis, P.E., Public Works Director Jackie Lee St (Glenview Dr to dead end) (CDBG) TEAGUE NALL AND PERK/NS Re: CDBG - 32nd Year Project Reconstruction of Jackie Lee Street CITY OF NORTH RICHLAND HILLS Department: Finance Presented by: TPowell/LKoonce Council Meeting Date: 8-26-2008 Agenda No. B.3 Subject: PU 2008-027 Awarding RFB 08-035 Roof Repairs and Replacements to BENCO Commercial Roofing, Paragon Roofing, Inc. and Anchor Roofing Systems in the amount of $838,459 This project will consist of replacing the existing roofing structures on three (3) City facilities including City Hall complex (65,074 sq. ft.), Fire Station 2 (6,633 sq. ft.), and Fire Station 3 (10,407 sq. ft.). It also includes roof repairs to Bursey Road Senior Center, Support Services, Service Center, and Public Works Storage at the Service Center, Property & Evidence, and the Traffic Division. An independent roofing consultant was hired to evaluate the condition of roofs on City Facilities. As a result of the evaluation, the consultant recommended that many of the facilities need roof repairs to extend the life of the roofs and to prevent water leaks. The condition of the roofs was worsened during the April 2007 hail storms. Three of the facilities in this project suffered extensive hail damage which will require complete roof replacement. Notice of the Intent to Bid was advertised in a local newspaper, as required by State Statute and posted on the City Website. The Bid was written in such a way that all work could be awarded to one vendor, or to multiple vendors depending on what was the best value to the City. Ten (10) vendors were contacted and requested to participate in this process. Six (6) bids were received from the following companies: Castro BENCO Paragon Anchor SLR J Reynolds Roofing of TX Commercial Roofing Roofing Roofing & Co. Inc Roofing Inc. Systems -Location Repairs at 6 City $73,000.00 $51 600.00 $116,200.00 $138,145.00 $38,600.00 No Bid , Facilities City Hall Complex $814,000.00 $687,000.00 $662,776.00 $622,260.00 $699,000.00 No Bid Replacement Fire Station 2 $86,000.00 $105,000.00 $81,880.00 $103,408.00 $68,458.00 $103,884.00 Replacement Fire Station 3 $107,000.00 $126,000.00 $110,480.00 $89,622.00 $74,538.00 $143,636.00 Replacement All Facilities- Repair & $1,090,000.00 $969,600.00 $946,336.00 $953,435.00 $875,000.00 No Bid Replacement Alternate 1-Slurry seal-Service $17,000.00 $13,000.00 $5,960.00 $18,645.00 $13,400.00 No Bid Center Alternate 2 -City $810,000.00 $669,000.00 $730,776.00 $612,862.00 $720,000.00 No Bid Hall Complex Alternate 3 -Fire $85,000.00 $99,000.00 $84,760.00 $103,173.00 $78,220.00 $115,100.00 Station 2 Alternate 4 -Fire $106,000.00 $117,000.00 $111,320.00 $89,237.00 $85,797.00 $150,666.00 Station 3 The City Hall Complex, Fire Station 2, and Fire Station 3 were originally built with an asphalt gravel build-up roof. This type of roof was common at the time the buildings were constructed and requires the use of a hot asphalt melting kettle. When these facilities were expanded, a 2 ply modified bitumen roof was installed. The alternate bids were for replacing the sections with asphalt build-up roofs with a 2 ply modified bitumen roof so each facility would have the same type of roof. As the contractor would be installing only one type of roof, it resulted in the alternate bids being less than or almost the same as the base bids. The Support Services Department and roofing consultant evaluated each bid response and recommends awarding to the following vendors to receive the best value for the City: BENCO Commercial Roofing for Roof Repairs Bursey Road Senior Center - 7301 Bursey Road Support Services - 6110 Dick Fisher Drive Service Center - 7200A Dick Fisher Drive Public Works Storage - 7200E Dick Fisher Drive Property & Evidence - 7200E Dick Fisher Drive Traffic Division - 7200D Dick Fisher Drive Paragon Roofing, Inc. for Roof Replacement Fire Station 2 (Alternate 3) Anchor Roofing Systems for Roof Replacements City Hall Complex (Alternate 2) Fire Station 3 (Alternate 4) $ 51,600.00 $ 84,760.00 $612,862.00 $ 89,237.00 Total-All Roofs $838,459.00 SLR Roofing was low bid on the roof repairs and the roof replacement for the fire stations but declined to honor their pricing for these items stipulating that it would be all facilities or nothing. The City receives a better value by awarding to three (3) separate contractors. BENCO and Paragon have performed roof repair projects for the City and have completed each project on time as specified. Anchor is a new vendor for the City of North Richland Hills; their references were checked along with their reputation in the roofing industry. Competitors spoke highly of Anchor's professionalism and quality of workmanship. Three comparable roofs that Anchor installed were inspected. The roofs varied from one (1) month to four (4) years from the date of installation and all the roofs were in good condition. Funding is from insurance recovery dollars received in 2007. A project for the roof replacements and repairs is included in the CIP budget. Recommendation: To award RFB 08-035 Roof Repairs and Replacements to BENCO Commercial Roofing, Paragon Roofing, Inc. and Anchor Roofing Systems in the amount of $838,459. CITY OF NORTH R/CHLAND HILLS Department: Information Services Presented by: BWeakley/LKoonce Council Meeting Date: 8-26-2008 Agenda No. B.4 Subject: PU 2008-026 Approve the Purchase of Cartegraph Software - Waterview, Sewerview and GEOdataconnect in the amount of $105,832. On January 22, 2006, Council approved the upgrade and purchase of SignView, PavementView ,WorkDirector and CaIlDirector applications from Cartegraph Systems in the amount of $46,075-Resolution 2006-009. The Cartegraph System tracks calls from our citizens and produces a work order for the preventive maintenance required and needed to complete these requests. In the 2007-2008 Capital budget Council approved $110,000 to purchase additional modules- WaterView, SewerView and GEOdataconnect of the Cartegraph suite of products. The WaterView and SewerView modules will allow Public Works to track, retrieve, and report on the infrastructure of the City's water and sewer systems. GEOdataconnect, WaterView and SewerView will work interactively with our current GIS system allowing our Cartegraph users the ability to manipulate and update the water and sewer data records on a real-time basis. Currently all data updates to the water and sewer system are done manually in our GIS department. In addition to automating updates to the GIS system, the upgrade offers an opportunity to introduce mapping capabilities to other departments in the City. The new modules work interactively with the presently installed modules WorkDirector and CaIlDirector. The major goal of the project is to provide a work management system that will assist the City to manage labor, inspections, and maintenance of our sewer and water assets. Project Tasks/Vendor/ Cost(s): Cartegraph software purchases and project services Cartegraph $ 51,125 GIS server hardware/software purchases Dell/ESRI $ 29,000 Installation of GIS hardware and software IT-Nexus $ 16,707 Data updates to current water and sewer layers AGTS 9 000 Total 105 832 Cartegraph is the sole provider of the WaterView, SewerView and GEOdataconnect modules. ESRI and Dell are purchased under the State of Texas Department of Information Resources (DIR) contract. IT-Nexus and AGTS were low bidders for the GIS hardware/software and the data updates to the current water and sewer layers. Recommendation: To approve the purchase of WaterView, SewerView and GEOdataconnect modules from Cartegragh Systems, Inc., computer hardware from Dell, Inc., GIS software upgrade from ESRI, installation services from IT-Nexus and services from AGTS for a total amount of $105,832. City of North Richland Hilts, TX Software and Services Agreement C080200b with CarteGraph Systems, lnc. CarteGraph Systems, inc. { 3b00 Digital Drive {Dubuque, Iowa 52403 800.b88.2b5b { 5b3.55b.8120 www.cartegraph.com Table of Contents Software and Services Agreement ..................................................................... 3 Scope of Pr©ject .................................................................................... 3 Software Products ........................................... . ........................ . ..... . ............. 3 Maintenance .............................. . ................................................................ 3 Project Services ........................................................................................... 3 Project Assumptions ..... . ................................................................................ S Customer Responsibilities ............................................................................... 5 Project Investment ........... . ..................................................... . ............... 7 Software and Services Provided ........................................................................ 7 Payment Terms and Conditions ......................................................................... 7 GenerQC Terms .......................,.......................................................,...... 9 PROPRIETARY I:'VFQR:'~fATIOt'~': Tlie C.'itz' (~f','Yc)rth Rielztund hifitts cxc~knore'le°d~~,~e~ that att nzcater•iu~s cutcl ctaczrmelzts crssoeiatect it~tth Ibis prr~jeet arG t~ra~~ric?tnt1' irrl~catzrY£'. This sl)eciJicczll~' rnctz~desPricirzg itzf'nrizzcztit)n, trcrinitzg mctteYiritx ~zr1d cas~sazltill~~ dc~czrnlentr c!s clescYil~ed The {:'rty oJ';1~'vYth R~chlunct Hills ~trr•thc?Y cz~rec.s not to c~v~~' ~~r ather•wis~.° lrzcik£j crv<lilrxhtt? s°uch rrratericzls c~utsidc~ r7f ~th(~ {:'idy r~r.:~'aYth Ric~hl~lzct t~litls anct its ctii~isi~arzs (xnct Gt(;~()C11'tlilf'/lt.S 4VJIhU!!t ttlf? ~)YtC)/' t1%1'ttt£'I? C'Ul1.C£'Y1t (7f ~~C7YtL?U!'llt?h cS;1Z1't(?1715. ~Y!(.'.~ E'.:L"G(?lIt CIS YE'CJ1dl1'£'4~ t3'1' tGl~1'. C:"it~~ c?f~.~1~`t}r1h Rtehlc~ncll.Iills, ;f-'~l Software and Services Agreement 1~ ehrt~rtr;y' 1 ~, ?{J{J~ Tl-lIS AGRCEMENT is rradc and Lntere;d into between City ot'North Richland hills, )iercinat"ter refired to as "Custor~ter or "1~ieensee," ++~hnse address is C ity of l~cfrtl~ ft.icliland Ni11s, 7?f)U A .(:)ickfisher [)rive South., North Itichlar3d [°lills, ~"X 761.80., and Car-teGraph Systems, .inc., 36UU Digital Drive, Dubuque, Iowa 52003, hereinafter rclerred to as '`Carti;GraplE." Scope of Project Software Products Cart%~C:raplr shall provide and deliver licenses to use the Sottware Proc9uets and in the quantities listed in Scr~rvcrrc~ crud Sc~t~.=ices 7'rn~~iclcjd. Software Products are developed and supported products available f'rot~i Cartet~raph. CarteGraph will provide these Salt+vare Products to Cc~stomcr in their standard. form and at the most cun•ent generally available release version level published at brat time of installation. CarteCraph software is currently supported. within the follo+ving: Wc~ttr:sT:~~rtoty :~vt:~ nrt;ttr~~t'~hc~ S~~s•rr:~t I't.:~rr~c~R~~s: 1~'indc~++~s, 2UU0, w00a, X P. Suppc7rtid operatiri~ systems twill be listed on CartefGraph's web site. (}tttp;''tiytiF.~~°.«rfe~raph,.~t~tn;) i~,~'r'~3t3nst:.: Access, St1i:, ZUUfI, SQI:, 2{lU5 (I~~xpress, '4~4'ork~„roup, Standard, and }nter-prise}, t)racle ~).i, C?racle 10.)x. CarteGraph software ~+'ill be supported tvitl~in t~ew versic3ns ofthese tvorlstation platforms and databases t+~itlli.n a reasonable period of'titt~e'li•om tliteir release (rant their manufacturer. C.strteGrxph titill diseoritinuc~ support ol` its soft++°are 4~•itltin alder versions of these wori:statiun platforms and ciata3b~3ses as their support is discantinired by their manufacturers. Maintenance 5ervic~s find Prr~dricts t,ovtred: This Agreement applies to the Se7ft~+~are Products listed in :Sf)JJ;1?ure Ut?ll Sc>rt~ic~~.-s !'rar°idc~d. burins; the term ol'this Agre~:rnertt, CarteGraplt ~r~~ill p.rovid.e the follo~r°in~ services car products its part o1' this A~reen~ent: 1 } "1"echr~ical Support; Ciistorner will receive unlimited toll-free support via. phone, fax or a-mail (~uppc~rt cr c~ric:~raph cnrat} thrc>ubh tlxe Cart~Grupi~ Help Desk for technical issu4s relatitay to the use o!.'the licensed sofh+•are. `Celephane support will be a4~ailafile 'vlanday thro~r~h E~riday betiti~•een the hours of 7:i{1 a.r~~:... 5:30 p.m. Central time by dialinw x{)fl-G88-2656, evt. Ci200. ?) All updates and upgrades to licensed prodrets fbr the term of the maintenance agreement. 3) All benelits, products, services, and RrtAl-3edtrainin~ si`sians availabl4 ~~t the citston~er-Drily Client Suppc~rf Center ++°eb site at ~~~ww..car~te~r~ph.~c~i)i. 4} Maintenance shall be in effect for the Initial ~1-ern~ of twelve (12) months from t:he Initial "1'en~~ Start Date throu~~h the Initial Term Ind [late l'or each Software Product. Maintettance shall automatically retierv at Clte end. c>f the Initial "i:'er-rtt .for u.niirraited, successive l2-month .tZenevval ':C'erms. C+rston~er naay term.i.nale M.ai.ntenance at tine er~d of the. )nitial "I'en~3 or any subsequent Kenewa:l 'term by rtotifyi.r~s; C:arteGraph in +vriting oftheir intention to do so at bast tS0 days prior to the applicable t::nd Date for that terra. Project Services Cartet;;rapti shall provide the following Pr•~ject Services to implement and deploy the Software Products. Cart~Graph shall be responsible for the timely performance of ail Project: Services and t~-arrants that ail professional and. technical services provided to C;rrsto~ner pursuant to this Agreement shall be of good anti workmanlike quality and twill meet or exceed standards of similar professional senfices within the industry. CarteGraph males no further r+•:tn•arity', repres~lttatt<)n ur promise nol ~:tiplessly set forth in this t~~rti~t~~ent. C'it~~ ~f ~r'~'~rrih Riehlctstc~ ,f.1'ills, T 1` e~hrzrr-u y~ 1 ~, ?l1f)X 1) Application }nsta.Elation Services: C,€trteGraph will provide through lnterrret access', eYpc:rt: technical resources to work wit}r Custoriier's lr~forrtration Systems personnel to install and configure the Sof~'are Products in Customer's database crtvironment. Service assumptions include: a) Custouer wi}} purchase and install the database software but CarteGraph will configure t:usromer's SQ}.. database. b) Database replicationr'synchrortiration is not requured. c) Customer IT staff wi(1 be present and available at all tin3es daring Installation. d) (rastallation C,'ornponcnts itrcluct~: i) 1're-Instal}ati«n.: C:arteGrapb. will conft.rrxr ren:rote access to ensure appropriate co.n.nectivity, core#irrxr Adrrrinistrator client com~ection to network enviranntent, ct?nduCt sy'lte1~ parameter' review to e1~sUre environment and. required topolagy~ meet. ar• exceed CarteGraph hardware recornrnendations, anc# instal} and configure the required application License Server. ii) Suite_}nstatlation; CarteGraph ~vili stagy one { t) Administrator PC client and one; (!') User PC client with the appropriate Software Products and provide k.nvyv}edge transfer to allow Customer to stage and mairytain any renrainirrg PC clients, will for•nrat Custe-n~er database for appropriate Soft~~-are Product database structure with. the database stattdtud Administrator security role, will update Customer's License Server ~~~ith Software Product }.icense codes, and will provide recommendations for database rrrairitenance. ?) T)atabasc Securit~~ Scrvic~s: fiarteC:raph will deploy database security based on the standard rolls included with the current version of software. CarteGraph and the Customer will detenztine the timing of the one-time Securihr deptoynrent. For each Software (product, C:~rteGraph will create CarteGraph standard Administrator, ['over t~ser•, [.Jscr, and R.caad-C)nly SQI, security groups and/car roles' anal creftt:e~ one user 1}) assi~,~ned tc> each cal' the groups algid .vii l provide a k.nowled~~e transfer that will al.tov Custoru.er to create and nrai.rl.taia"i security records. Additional configuration service is available on request. 3) Data S~r4rccs: CarteGraph r~vitl provide conversion services ar~d assistance in moving Custr~mer's currant geodatabase .SFI}' files into the corresponding anal appropriate C~arteG'raph database tables in a 'l'est environrrr~nt. This prpcess ma}~ require the tiormatization ~standardic~~iort) of data, which is the resporisibiiity o#'Customer, buk will. lie #;uided by CarteGraph C`vnsu}tants to help ..ensure the srrcce5sful cat~~plekion of the normali~atiora. Customer will be grranted'thir•ty days upon receipt and. load of the converted data in which to rrvic~v the data. }3; within the thirty days, arty discrepancies arc found bet~v~en the agroed-upon convcrsiort specifications to be rnutua}ly developed and t}re actual data delivered, CarteGraph wi(1 correct the data at do additional. char~~e. Upon direction from. Custonrcr, C:artet~raph will provide conversion services tc> move Customer's current becxiatabase .SHP filc;s into the CarteGrapht database tables into Customer's Production environment. Data sources and the approximate nuliiber of records included in this project are sliown below. A reasonable di#ter•ence in actual record counts is anticipated. SCIl1PC'E' r}•~~_S~)~ S'olrrcc~ Tirl~lE~ 1~rCJlil6'(S) c}r U~scri Ilorr: ~ ~ _~~, f2eCarGl.S': ~ ~.s(tp }~xistin~; ss tines.s}ip S.0G9 ........... ........................... :shP............~.......... F;xistinss~points;sh~,,,,,,,,,,,,, ......._.._... ..............................................._. .... ............... ....,..... ..................................~................ x.634 ..... .. .......... .shp r J , F;Yistut#, w lines.shp i 3,805 ~: slt~ .................._........~ ...... l~xiw.........staM ~n,~ tie~ts.;1h}? _......_...w..-...,........-,...,.,..,..,.....,.__............ .........,.......,,..,...., fi,~S9 N~ ~~ .shp >' irehydrants. sh pp i ,~x? rc><rimrate nunzfier c)f ull rec'c~l~cl's: 31, 941 ' CarteGraph utilizes ~9icrosotfi's }.,iveavleeting )nternct services for delivery at'all remote products. }~or more information regardir;:~ Live[Vleeting, p}ease visit: I~ttp~'i«~w.~~~.cote,rusoft,cc~rt~.~>icllivett~eetin,g!. "' Deployment ofsecurity- groups and~'car roles is dependent upon C:ustonier's prz~en-LC~ me:tJrod of survcr authentication. i.e.: '1Nirtdows authenticatiaii versus SQ}., aut}tentication. CU80'?UOfi G'itt~ of ~;+1~'~~rih Richlcrnr~ l.Itll~s, ;('R~.'~ ~}) lt•„~,I~;mentati(tn Ser~~ices: '1"ltc quantify ctf the tollo~ving Implementation Scrvicc~s t~s listt:d in .5(~litivcrr•c~ clad Servr(yes Pr(n~ic!(~clare Carte(~raph's not-to-exceed estimates based on projects ofsimilar size and scope and. on C'ustomer's assumption ofdesi~.*natc~d responsibilities, ~fhese quantiti(;s o#'InttArnit sessions and~'ar scrvicc~ days may be mutually adjusted tivitl)•rn the various categories as described to best meet Customer's needs but may not excecci the total number of Implementation Services Internet sessions or sGr~~ice days listed in. S~~~tufare and ;S'(~n~ices 1'rc)vidc~d. ~t) l.ntet•n.ei Consultation: CurteGraph will. provide via the Internet at mutually agreeable times to Customea•, halt=day consultation sessions and in the quantity listed in S'i~ftivtrre rartcl.5'c~r~~ice>s Pr•a~~iclc(1, to aid Custorrter with the' C;:trteGraph applications and their data a1;d deployment require:mcnts. A CarteGraph Consultant. will provide desktop assistance to Customer utilizing Customer tor-ns, filters, reports, an(1 databasz and, as apprc~priatc, the CarteGraph training database, "Carteville," as a method to reinfi~rcc CarteC~raph t'unctionality as it relates to C;ustomer's daily activiti(:s and prt)cesses. CarteGraph will provide all instructors and all. appropriate course .m.ateria€s and .instructor visuals. Customer will provide client equiprrte~tt regttired Ior t€~e cotsultation, as necessary. b) nnsite I~dtteation: Cartc~Gruph will provide onsitr tr~i.inin~~ Gays in the yt.iantity listed in ~S<~~ria~are (znd .5'c~r•vicer 1'r(~vidE~ci', at mEitually awwreeable tunes in Customer facilities. Training wil€ occur both an the CartcC;raph training database, "Cartevillc," and Customer's database utilising any customized forms, filters, and reports as mutually determined. CarteGrapl~ will pre?video all inst~~~etors and all app~•opriate course materials and instructor visuals. Customer will provide facilities and any equipment rec}uired for tl~e training, uicludinwY sirver and client computers as necessary. Those services are ntor~; particularly described aS: i) Custatr~er will approve cust.orn training agendas prior to trainingw, deliver}. CartGGraph agrees to ronsult ~~~ith Customer prior to developing the trainin~a, agenda.y ii) All training done in Customer facilities. Cus#amcr to provicie all training. computers and stage then with the appropriate CarteGraph applications. iii) Custa~»er will advise CarteGrap€~ as to the number of expected attendees far any particular class. ivj Training ~~•ill occur in mint~tums of two-day increnttnts. Project.Assumptions Project Services art based. opt the following ~tssumptians: €) Unsite 1'raject services shall 6e delivered at the facilities listed below. ~9ain ()Rice: City of North itichland lfills 73U~ A €;)ickfislter C)rive South North Rieh-land 1~~Iills,'l'X 751fi0 2) Pr(~ject Services are CarteCra~h's i~at to exceed estimates or tix(:d t'e yuotatic)ns (SC:e Sn~t)a•(rr•c~ clad.S(~r~~i(~es f'ro}~icttic~ based on projects of similar size and scope and on Customer's assumption of ctesi~nateci responsibi Titles. Customer Responsibitities Custo~~tea• accepts respon. sibility for a.Il aspects of project planning, nr~nagemei)t and execution not s}~ecifically described. under Scope of l'rnject. Ongoin~W management of the day-to-day allocation of Customer resources, and managcnxmt of Customer project tasl•s is the responsibility of Customer. Customer will pr(~vide overall guidance and. direction .far the project and will direct the project accordingly. further, and. with regard. to the CarteGrAph obligations listed under the .Scr)pe ~~f'P~-ajErcr section, Customer undLrst~t)ds that it is vital to tl~e success a1'tlac prgj~ct that Customer provides assistance in the following matters: €) 1'or these sc:n~ices listed under 1'rojc~(~r Sc~rvrc~es, C.artet3raph personnel ~;ri11 conduct information gatherin;~ and eva€uation sessions with various Customer users anti management. i~Vhile CarteGrapl~ respects the time and ~v~orkload ()fCus#o[ner stair, dedicated timti t)n the part of the appropriate Customer resources is nc;cessary to complete these exercises. C;U802(l4b C"ins ref •,~'{rrlh Ric~hlcx~7d ,F.Iills~, I"~lr ~i~l~rz~rrry~ 1.9, ?UQ8 2) •1'l~e installation process requires the periodic assistance ol'Customer perscrnr~t~l and. suitable; access to hardware anal systems {e.~;., security clearance). Custorer is encouraged to supervise the installation process ~~~hile systems art accessible tc~ C~~rteGraph. It is assumed all hardware, both Personal C;ornput~;rs anti ~let~vork and i3atabase servers, will be installed and operating in a manner that delivenf anal execution of CarteCraph Project Services will not be imp`ded. ;} Customer understar}ds that: the succcssi'crl perl'rrrrrrance ofi Project Services depends upon Customer fulfilling its responsibiliti.es..1'tte C'rc-ject assunxes tlr.at Customer »ril.l provide a.ll persoi~ne! teyuired to achieve a. su.ccesst:ul irrrple~nentation. 4) Crrstortrer shall install and networl; its or~n harcl~vare. and communications grid this will not rtfi°ect the tirniny or the delivery ofC'arteC_:raph services. S} Customer evill provide Internet access and l"l° staff support <is .reyuir-ed. C08~?{}06 (:~ih~ ~~ f.;~1`{girth Riehlcr~~d f.Itlls, T:1x ~c~hrz~cny~ I ~, ?D~~X Project investment Customer rvi.ll con~tpensate CarteE:.rapl~ for the Selfware :Products, Prc)ject Services, and Expenses provided pursuant to this Agreement in the amount listed. l~ela~w. Software and services Provided Sot=7~~':+~tt.t?: ptzot~t.c:"i'S: Cuncarreati Purchase L..ic. & i~`irst (Licensed for use kith. S(1L dat~rhase) Licenses Tyrpe fear Maint. _._..._..._...G.lOC3A _C:Acc>nnect.(enterpr~se,.~eo-dbr€se).... I License $ l ~,qqq qq G15di~•G~ctt~r 1 License S>,ggq.qq S(WF'RvlG?lti' ~ C:ic~nse :~1q,ggq.gU 17VATER}~ic~rc ? License $ # q,ggq.q(} ~'[to.trt:'r St:RVict':s: Utrits Unit. Typca TataC Ap~lication,lnstallation Services ................................. I _ . fixed ....................~...._. ..................... ~igO.Oq .. ~~~ ~ ....__........_ Databt->rse Securit~° Services I I'ix~d 1,Sgq.gq ~ D~fta s~,;wr~e/s T.Q~ i_oao..._.__........._..._._._....... ~.~. _. I ..:~;t~~tl ~I.x~>.qq lmplementatien Services Intirnet GansultLrtion ?q , _. f-lourti ... $3.ggq,g0 .~. .. Unsite Education Services ~ C~~~ s ~7,?Sq.gq To"t':1t. 1- ttt1J M:C;°t' C:C}~~"t' $~I,125.1~U FS'f1A-1A'I'F~t?IxPt~NSE=S~ '1~T3t) .........._...~.....~....~......,._._..~...,..,~.....~...........w.~....,•... ~w...V......~...._.w..._~.........__,.......~~,.......~.~.....~......,~.~.....~.._~........~....~.~_......,.. 1•uture years' annual Mirintenance for all purchased CarteGraph modules will be 2q°ru o#'the then-listed purchase price. 't'his is currLntly c~stii»atc~ci tc) bi $7,tJgq.gq for the; listed niodulcs. Atlditianal Services. In the event it bcemes appi}rent to Carte[;rapb tbai scrviG~ c:f#:arts dctail~d in rho A~r~emtnt will. be e~cceeded due to any chanves in the scope of services required, Cart~t;raplt will notify Custoi>Eaerprior tc} exceeding the approved efforts. Cart~Graph will also provide such additional pro#~essianal services, inciud.ing ct).nsrtltation services, custottri~ation, data conversion, integration servit:es and tt•ainirag st:ssitans, as tnay bt reciuested by Customer. In eit(rer event, such services shall require advanced written yuotatior) from CarteGraplr and apprc)val teem Customer. Additional Srrvices are available to C'ustamer at tl~e rate c>f'S1S() pear hour f:or ren~ete services. Carte(:raph's or~site service .rate is ~1,4~q per c#a}' plus travel e~}lenses. All onsite services require a hvo-day rnirain3~trn. Payment Terms and Conditions Irl consideraticm for the Services and Products provided by CartiC;raph to C~rlStamer, Crtstomcr agrees to pay CarteGraph Software Costs and 1•'rofessional yen-ice lees in U.S. Dollars as described. bela~~v: 1) ©ciivery: Suli:~+~arz ProdrYCts shall be licensed upon acceptance cif this Agreement and ]v3aintenance services will bet;ln uper? licensing Ui~the SU1iWare Products. 1'rojeCt Services will b~ Scheduled anal. delivered upon your acceptance of this Agreement, which will tie considered as your nntitication to proceed. 2) Invoicing: lnvoicing for a.ny given Software Product shall occur upon delivery. lnvoicing occurs mont131y for Project Services as they arc incun-ed on the project. Partial billings on fixed fee costs ~-i11 be invoiced monthly as ir)ccrrred. t [rr providing flee services included err this agreement, CarteGraph shall be reimbursed for any reasonable out-ot= pocket costs, including, hut. not limited to, travel, ]edging, and rncals. Out-of-packE~t expenses are billed based nn actual costs ir~curreci and are. due separately. C;U$02()Ot; C"ih1 ~f ~~1~`~~rih Ri~hlc~f~ct? ~flills~, T~1.~. ~c~hrur~t;y~ 19, ?pQ8 3) I~;xpenses: In providing tlic s~;rvices includeci in this agreement, CxrteGrapla shall be rc~iznbursed inr anv reasonable o~~t-of-pocket costs, including, but not I ignited to, travel, Iadgin~, and meals. U~~t-of-pocket. etper~ses are billed based on actual casts incurred and are due separately. ~) Payment. Tcrn~s: A11 payments are die Net 30 days from date of in~~o.ice. C"lr~t gf~,~'~'orth Ric~hrcrszr~ ,f.lills, ;C~r Genera[ Terms c~hrzrrrs;y~ 1 ~, ?l)(~8 This Agreenletrt takes precedence over all attachments in the event of catrflictin~ terms and conditions. The terms acid conditions of any and alt E;tltibits and Attachments to t11is Agreement arse itrcorparated herein. by this reference and shall constitute part of this Agreement[ as if fully set forth herein. Article ancf Section lreadin~;s us(>d herein are far reference purposes only and shall. not be deemed a part of t-tis Agreement. ']"his Ag*reenrent, together with all f."xhilaits and Attacltmunts haruta, c(mstitut:u the (:Ir2ire A~reerl~ent bct~~~eon the parties and supLrsedes all previous Agreements including promises acrd representartions, whether written or oral, between tine parties with respect to the subject. matter her~.of. I) t.imitatiarr O1~„l,iabilit~~: Except for clanla,~res resulting front[ bodily injury or patent ar copy=right ittfringcrnent, each. party's total liability to the other far drultages under this Aj~reemertt shat! not exceed. the total amount of [kits Agreement[. Liabitity arising out of bodily injury, contract, breach of warranty, or claims by third parties or oth('rwise, shall not in any oven[ exceed tare limits of CarteGraptl's catnntercia general liability insurance' coverage with a limit of $1,000,000 per occurrence and. a 5?,000,000 a Y<rregate limit, business auto liabilih insurance aJit}I a fintit al'S1,0{)0,0{)0. Nc~itherparty shalt be liable to the other far any lass al'praCts, loss or inaccuracy of data, or for arty special, incidental or consequential damages (including without limitation cite cost of any substitute procurement] arising froth this Agreement, even if such patty had been adl~ised of the passibility threol: No acti« n, regardless of firrm, arisiltg out (Il' tints Agreement may be brou,>ht ley either pony Inane titan one year after the cause of the action has occurred, except that an action fnt Ilon-payment may be brought at any time. 2) Disclaimer cif Warranties.: CarteC:raph ntak~s no warranty, representation or promise hat expressly set lilrtlt in this Agreetnettt. ~arteGraph disclaittts and excludes any.rtnd act implied ~~~arraraties of rnetchantability~, fitness far a particular purpose. 3) insurance: CarteGraph carries camtnercial .general liability insurance with a litttit of ~S1,000,OQ0 per accurrerace and a X2,000,000 aggrt4~ate Iintit, business aura liability insurartc(: with a limit al'S1,000,Q00 and workers connpensafion .int.sm:ance with statutory coverage. C;~r•te(~t•aph agrees to hold ltarml.ess and defend. Customer sad its agents, ttt~icials and entplayees tram bodily° injury and prapt:rty datttage claims related to ar ca.usLd by the sole negligence a1~CartcCraptl employees or subcontractors. 4) ttelationship ofthe Parties: C'artcC;raph and Custa~ner are independent of each other. "I"his Axreement does hat and is hat intended to create; in airy way or manner ar for arty purpose an errrplayci~'ernploy°er relationship or a principal-regent relationship. Neither party is authorised to crater into agr-eerttents far or on beh<rlfaf cite attrer, to create any obligation or responsibility, express ar implied, for (rr on behalf of the other, to accept payment of any (tbligati(>n duce or owed the other. (>r to accept service al'process tier the other. Cart~Graptl is an independent contractor, ettstomarily engaged itn cite performance of similar services for other paI-ties. ~) Severability: The terms and conditions of this Agreement are severable. If ally tenth or condition of this Agreernertt ar the application thereof to any person or circ-utrstances is held invalid, this invalidity shall nut affect the tether terms, conditions ar applications which can be given effect without the invalid tent[, condition or application. G) 't'ransfer of Agreettrent: Car#eCrapll shall hat transfer or assign any of its riwktts or obligations under the agreement: to any other party witltaut the prier written consent of Cust:tlmer, which contsent may hat b(:. unreasonably 4v.ithheki. 7) Notit:_es: Ail notices or cornntunications required ar penrtittcd as a part ot't11is a+~reenltetrt shall be in writing and shall ~e delivered at tho address set tilrth in this Agreelnertt. L R) Attorn(a~s l~eeti~l..egal Prac(~edint;s: In tlt4 event a#'atty litigation a.r other proceeding between the partit;s relating to this ,Agreerttent, the prevailing; path' sltaIl be entitled to reasonable attorney's fees and other reasonable costs incurred itt connectiorl therecvitll and in pursuing collectiorl, appeals and other relief to t~~hic}I that party Inlay be entitled. phis contt~act shall be construed in accordance with the taws ol'the State aflowa. Venue far any legal proceedings shall be in. Dubuque County, tows. All undelivered Project Services shall cn+pirc 3G5 days from the signing ofthis Agreemc'Itt. C~$0?(_l06 C"ity cif •:+1`{girth Richlcrn~' ,f.~itls~, Txl' `l~rc~ parties, each acting under dui and proper autlu~rity, have eteccrted this Agreerirent as c~fthe da~~, mcmth and year written below: (.'t•t,~, c~}~ Nc_s}rr}} l~tctr}. F~~rr~ Hi}.~.s I:i~• 7L00 A Dicktrsher Urive South Nort)t Richland }-)ills, `I"X 76180 Sibnature Uate' F'}ca-sc Pric3t Name 'I"itle Cr~lt'I'tCiKA}'}1 St'5'!'t_M5, INC. B}' afiU(} Digital 17rive~ ~ ~~ l~uhuque, Iowa S?f1U3 ~iVlark Weber, CCU [)ater: ' ror this Agreement to he effective and binding, the; City o9'Nc~rth Richland [ )ills and CarteCira}~I~ must authorize this Agreement si~itliin t)fir-ty~ {3U) business days ofiach other. CO$0'?()O(i ~ 0 CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. C.0 Subject: PUBLIC HEARINGS CI TY OF NORTH RICHLAND HILLS Department: Budget Council Meeting Date: 8-26-2008 Presented by: Mark Mills Agenda No. C.1 Subject: GN 2008-079 Conduct Public Hearing on Proposed 2008-2009 Budget The budget work session to review the proposed 2008-2009 budget was held August 1- 2, 2008. At the work session, City Council reviewed the budgets for all operating funds, capital project funds, and the budgets for the Crime Control & Prevention District and the Park & Recreation Facilities Development Corporation. Subsequent to the work session, the changes City Council requested have been included in the 2007-2008 Revised Budget and in the 2008-2009 Proposed Budget. The 2008-2009 Proposed Annual Operating Budgets for all funds are as follows: General Fund $38,983,678 Debt Service Fund 8,714,906 Parks & Recreation Fund 5,914,550 Crime Control District 4,907,318 Promotional Fund 228,567 Donations Fund 230,274 Special Investigation Fund 627,021 Drainage Utility Fund 354,198 Gas Development Fund 0 Traffic Safety Fund 837,661 Utility Fund 25,937,258 Aquatic Park Fund 4,915,456 Golf Course Fund 2,531,121 The Proposed Capital Improvements Budget totals $55,976,558. The breakdown between project categories is as follows: Street & Sidewalk Projects $24,681,557 Drainage Projects 1,110,000 Utility Projects 7,215,205 Parks & Recreation Projects 1,893,757 Aquatic Park Projects 2,385,000 Municipal Facility Projects 12,277,980 Major Capital Equipment 2,514,828 Economic Development Projects 3,292,920 CIP Personnel 605,311 Since the presentation of the proposed Capital Budget on August 1St and 2nd, there has been one revision. The project for Central West Neighborhood Park was modified to include $409,732 for the balance of the proposed land acquisition in Fiscal Year 2009- 2010. The original land acquisition was based on a smaller acreage parcel. The propose parcel is for acquisition of 9.5 acres which has been previously discussed with Council. The notice of public hearing was published in the Star Telegram newspaper in accordance with State law and the City's Charter. The public hearing for the 2008-2009 Annual Budget was advertised to be held during the regular 7:00 p.m. City Council meeting, August 26, 2008. The notice included the additional statement required by recent legislation that read as follows: "This budget will raise more total property taxes than last year's budget by $1,044,385 or 5.18%, and of that amount $601,306 is tax revenue to be raised from new property added to the tax roll this year." The 2008-2009 Proposed Budget is based on continuing the 57¢ tax rate for the 16th year. The proposed budget document was filed with the City Secretary and at the City Library for public viewing and was made available online at the City website www.nrhtx.com on July 31, 2008. It will be recommended for adoption at the September 8 Council meeting. At the August 1-2 2008 budget work session, the Crime Control District (CCD) Board reviewed the proposed 2008-2009 Crime Control & Prevention District Budget in the amount of $4,907,318. The CCD Board will conduct a public hearing on August 26, 2008, at 6:30 p.m. in the Council Chambers, and make its formal recommendation on the proposed budget. A Parks and Recreation Facilities Development Corporation Board meeting was held on August 19, 2008 at 5:00 p.m. so that the Board could review the operating and capital projects budgets for the Corporation. The Board will conduct a public hearing on these budgets at 6:15 p.m., August 26, 2008 and make its formal recommendation to Council on the proposed operating and capital budgets. Prior to the Budget hearing, Mark Mills, Budget & Research Director, will provide an overview and highlights of the proposed budgets for next year. Recommendation: To open the public hearing, receive public comments for the Proposed 2008-2009 Budgets for both operations and capital projects, and close public hearing. No action is required at this hearing as this is held solely for the purpose of receiving comments. As stated, adoption is proposed for the September 8 Council meeting. City of ti orth Richland Hills Operating Budget For Fiscal Year 2008-2009 This budget will raise more total property taxes than last year's budget by $1,044,385 or 5.18 %, and of that amount $601,306 is tax revenue to be raised from new property added to the tax roll this year. City Counci= T. Oscar Trevino, Mayor Scott Turnage, Mayor Pro Tem John H. Lewis Ken Sapp Suzy Compton David Whitson Dr. Tim Barth Tim Welch Larry J. Cunningham, City Manager Karen R. Bostic, Managing Director Admin./Fiscal Services Mark Mills, Budget Director Jennipher Castellanos, Budget Analyst Shirley Hoover, Financial Analyst Tri Le, Budget Intern Visit our website at: www.:nrhtx.cor~1 Honorable Mayor and Members of the City Council City of North Richland Hills North Richland Hills, Texas August 1, 2008 People all across the country are feeling the pressures of a dwindling national economy. With soaring energy and food costs, a deepening housing crisis and more job losses, there is some cause for concern. The good news, however, is that North Texas has not been impacted to the same extent as other parts of the country. The following indictors show that our local economy is still doing fairly well: • Gas prices have hit all time highs; however, North Richland Hills is approximately 7¢ below the state average and 21 ¢ below the national average for gasoline. • The unemployment rate is at 3.4%, which is below the rate recorded at the same time last year. It is also well below both the state's rate of 4.3% and country's rate of 5.3%. • With 19,644 homes located in North Richland Hills presently, less than 1 % of the City's homes are under foreclosure. • At mid-year, the City has had 50 new businesses open their doors. This is on track to match or exceed last year's new business number. • The City has also seen an increase in the number of commercial construction permits. As of May, 38 permits had been issued. In the same time period last year, the City had issued only 26 permits. • The North Central Texas Council of Governments released its new population figure for North Richland Hills of 65,750, which is an increase of 2.65% over last year's number of 64,050. As we prepare for Fiscal Year 2008/2009, we are keeping a close eye on the national economy as well as our local economic indicators. Like most consumers we will have to tighten our belts in the coming year to help offset increasing costs, but I am pleased to report that we will continue to provide the high level of services that our citizens have come to expect. The 2007 Citizens Survey conducted for the City by the University of North Texas showed that our residents value the quality of life in North Richland Hills (94% of respondents answered the quality of life was good or excellent). Money Magazine ranked us as one of the 100 Best Places to Live in the United States in 2006. And, various city programs and departments continue to receive awards from national, state and local groups. We believe these accolades are great, but we are not resting on our laurels. "Today's Vision is Tomorrow's Reality" and we will continue in the coming fiscal year to provide award winning services and to successfully implement the City Council's vision for the future. l'.(7. I3c}x h?()fi{) ~ ~,Itat•th }~icl~lz~~3d 1-tills, '1"~xa` 7€~1~i2-E}{i(~t} ":; (} 1 Nc~r~t:l~~~~st I..cyc~~, ~ 3() ~~ (R 1 ~'; -~~i-(it~t}t) ~ ~~ <~x (~ } 7 i ~ ~ ;'-~1 t}(~ Preparing the proposed budget for Fiscal Year 2008/2009 has not been easy. We have asked all of our City Departments to find ways to work more efficiently and reduce spending to help offset the escalating costs of fuel, building materials, utilities and petroleum based products. We also propose delaying market adjustments until April 2009 and phasing in an ambulance rate increase over 4 years. These and other steps, which will be outlined later in this document, will help insure that North Richland Hills continues to maintain a sound budget, despite the national economic slump. As mentioned earlier, our local economy has not been impacted by the economic downturn to the same extent as other parts of the country. We are encouraged that our community maintains a strong property tax base and continues to experience new construction and business growth. After seeing the reoccupation of several vacant big box retail stores by 24 Hour Fitness, Burlington Coat Factory, Ross Dress For Less and Let's Talk Call Center last year, the City is now seeing new small businesses move into already constructed space and established small businesses rededicate themselves to North Richland Hills by improving their facades and landscaping and removing non-conforming signs. While some are doing this through the Business Improvement and Growth (BIG) program, others have initiated these changes on their own. This is exactly what BIG is all about, seeding an area and promoting the maintenance of structures in our established corridors. By reoccupying vacant store fronts these retailers and commercial businesses show that they have confidence in North Richland Hills and the market the City provides. Further, we continue to execute leasing agreements for gas on city owned land which brings a different type of industry to our City. The City has also become the headquarters of airplane bushing manufacturer Fitz Manufacturing. Fitz Manufacturing chose a vacant structure in our industrial area, anchoring that area. We have also seen Birdville ISD break ground on the Richland High School reconstruction and the new Career and Technology Center. The new library opened in April 2008, and the new recreation center is moving forward with the design process. The next fiscal year will be demanding from a financial perspective and we will continue to keep a very close eye on the economy. However, we remain optimistic about the future, thanks to the visionary leadership of our Mayor and City Council and their strategic Goals and Objectives. We are confident we can continue to provide award winning programs and excellent services, as well as a few service enhancements, with the resources we have available. Vision: Goals and Values The North Richland Hills City Council is dedicated to making our community the City of Choice for all citizens to live, work, and play. To accomplish this mission, the Council has adopted a strategic plan for the future and reviews and updates it biannually to respond to changing needs in our community. The strategic plan provides a clear vision for the City's future. It is the roadmap that directs our City toward positive change and serves as the policy direction for City management. In November 2006, Council met to review and update its Goals. Two goals were added (Targeted Economic Development and Local and Regional Leadership) and the previous six were updated to reflect North Richland Hills and its place in the community. Council will meet to review its goals again in January 2009. This goals session will make sure Staff is still on track accomplishing Council's vision for the City. The Council Goals also serve as a guide for developing the City's budget. All plans and projects for the coming year have been evaluated and prioritized based on meeting those goals. This is especially important given our limited resources. The goals are listed below: 1. QUALITY COMMUNITY DEVELOPMENT & REVITALIZATION -strive to plan for the development of remaining vacant property and improve the quality of older areas and infrastructure. 2. EFFICIENT EFFECTIVE TRANSPORTATION SYSTEM -strive to provide improved traffic flow and mass transit opportunities for our growing community. 3. SAFETY & SECURITY -strive to be the safest community in Tarrant County and to be prepared for potential natural and man-made disasters. 4. FINANCIAL STABILITY -strive to get the best value for taxpayer dollars and to ensure that we have the financial resources available to invest in community priorities. 5. PRESERVE POSITIVE CITY IMAGE -strive to maintain a positive City image and reputation for being a great community. 6. A SENSE OF COMMUNITY- strive to support programs and events that support our citizens and the community as a whole. This includes maintaining our parks and recreation programs at the current high level, maintaining the cultural arts program, expanding the public art program, completing construction of the 19-mile hike and bike trail system, implementing the Parks Master Plan. 7. TARGETED ECONOMIC DEVELOPMENT- strive to maintain and build our vibrant and diverse economic base. 8. LOCAL AND REGIONAL LEADERSHIP- strive to continue to build relationships among other cities and parties with similar interests, sit on committees that set the direction for our region and be proactive to influence the direction of key issues. As a supplement to these Goals, the City Council established a set of core organizational values and assigned specific meaning to each value to inspire City employees to strive toward excellence in the provision of services to our citizens. These core values are: RESPECT • Treating others in a courteous, fair and equitable manner • Valuing differences: points of view, style • Honoring the organization's chain of command • Acknowledging successes and the contribution of others • Following up with feedback SERVICE • Providing services to our community and others • Solving problems • Helping the customer to understand • Sensitive to the needs and feelings of others • Taking action, providing a timely response PRODUCTIVITY • Producing results, completing projects on time, at or under budget • Planning work activities to achieve goals • Meeting or exceeding job standards and expectations • Looking for ways to be more productive while being cost effective INTEGRITY • Honest communication • Being trustworthy • Following through on commitments • Acting with high professional, moral and ethical standards • Supporting the City of North Richland Hills goals, values and decisions RESPONSIBILITY • Being knowledgeable and skilled in your job • Holding yourself and others accountable for actions and results • Being loyal and taking ownership in the City goals, values, services and departmental work program • Taking pride in your work • Willingness to take command and initiative when appropriate INNOVATION • Looking for better ways to do your job • Willingness to learn • Being open to new ideas, new approaches • Willingness to take reasonable risks • Thinking creatively and evaluating options TEAMWORK • Participating and involving others in team efforts • Listening to and understanding the other's viewpoint • Willingness to cooperate with others and share resources • Fulfilling defined roles and responsibilities • Working and resolving differences and disagreements Our employees have truly embraced the core values established by the Council, and the quality of work performed by our Staff is a testament to that fact. The core values campaign and employee recognition program that was developed in an effort to incorporate the core values into the daily lives of our City employees continues to be a success. The program has been in place for over six years now, and is still getting a positive response. In addition, the Human Resources Department hosted the fifth employee recognition banquet this fiscal year, and recognized Penny Peterson, of the Planning and Development Department, as the 2007 Employee of the Year for the City of North Richland Hills. Accomplishments: Accountability to Citizens The following is a brief list of the items the City has accomplished in FY 2007/2008 as City Council and Staff work toward the attainment of each City goal. As is evident from this list, the Council goals do in fact guide the work plan of our City as many of the City Council's priorities were achieved or implemented this past fiscal year. Quality Community Development & Revitalization 1. Updated the Comprehensive Land Use Plan and Thoroughfare Plan incorporating Loop 820 Corridor plans and mixed use development districts around future commuter rail stations at Iron Horse and Smithfield. 2. Expanded multi-family maintenance requirements to include motels that have become long-term occupation units. 3. Adopted the 2006 International Building Code, the 2006 International Fire Code and the 2005 National Electrical Code. 4. Selected a firm to create the City's Sustainable Development Code. The Code will direct development at the future Iron Horse and Smithfield rail stations and reimage NRH Hometown. Efficient Effective Transportation System 1. Overlaid 13 streets, slurry sealed 14 streets and crack sealed 29 streets. A total of 56 streets were improved with this program, which increased our overall street rating from 80 to 81.68. 2. Began design on the final phase of Rufe Snow Drive. This is the section between Mid-Cities Boulevard and Ridgetop Drive and is approximately 5,300 feet long. This project will widen the existing five lane configuration to either six lanes with a raised median or seven lanes with a continuous left turn lane. 3. Design began on the intersection improvements planned at Davis Boulevard and Mid-Cities Boulevard. This project will consist of reconstructing the intersection with dual left turn lanes. This will provide more capacity through the intersection and relieve some of the congestion that currently exists. 4. Started design and implementation of the Signal Timing Synchronization Project for updating signal timing plans along the corridors of Boulevard 26 and Mid-Cities Boulevard. The project will optimize 27 traffic signal locations along the two routes. The new signal timing plans will be in operation by September 2008. The goal is to reduce motorist delay and decrease fuel consumption. 5. Staff and City Council participated in the Southwest to Northeast Rail Corridor Study by the Fort Worth Transportation Authority. The study included development of conceptual rail station area plans for the future Iron Horse and Smithfield rail stations. 6. Joined the Texas High Speed Rail Transportation Committee (THSRTC). THSRTC is a coalition of county and local governments, employers and universities working to build a high speed rail to connect the three most populous regions in Texas: Houston, San Antonio/Austin, and Dallas/Fort Worth. Safety and Security 1. The Fire Department worked with North Hills Hospital to give heart attack victims a higher survival rate. North Richland Hills paramedics now activate the hospital's Cath lab en route to the hospital, reducing response time from 90 minutes to less than 60 minutes. 2. The Police Department introduced a bike patrol program that puts police officers on bicycles. As a result of this modified patrol method, officers and citizens have an increased chance to interact. This promotes security by reducing fear and crime. Officers will patrol neighborhoods, targeted crime areas, and parks/trails in an attempt to curb crime and interact with the public. 3. Updated the Gas Drilling & Production Ordinance to regulate construction of gas pipelines throughout city. Passed a resolution requesting pipeline companies use city right of ways and bury lines a minimum of four feet. This lessens the impact on individual residents. 4. Public Service Officers of the Police Department now meet with homeowners and business owners that need to report delayed or low-level crimes or incidents. They will also assist with tasks that do not require a police officer's attention: abandoned vehicles, found property, minor issues, and motorist assists. By design, this program will create more time for police officers to address more serious matters. 5. The City's new Command Post will greatly help in the Police Department's ability to manage large scale crime and special events. Better management of these sorts of events creates safety for all involved. 6. The City took delivery of a 100 feet aerial platform fire truck and placed it in front line service. This new fire truck allows the City to fight multi-story and large warehouse structural fires. 7. Completed Pre-Fire Plans on every business in the city. Pre-Fire Plans show the locations of fire safety apparatuses in buildings and other information that can be used in fighting fires at that location. The program is ongoing with each plan being reviewed twice annually, once during the annual business inspections. 8. Started construction on the Starnes Elevated Water Storage Tank Rehabilitation Project. This project will help the City maintain its Superior Water Rating System and to help provide a safe and reliable water supply. 9. Completed design work on the Wastewater System Rehabilitation Project- Priority 3(EPA). Staff is starting the construction of this project, which will eliminate sanitary sewer overflows at various locations. Financial Stability 1. Issued General Obligation bonds and Certificates of Obligation in April 2008. The bonds are to be used to finance street, aquatic park and capital equipment replacements scheduled for FY 2007/2008. 2. Standard & Poor's Rating Service upgraded the City's credit rating to AA. Moody's maintained its rating of Aa3. Rating analysts praised well- managed finances, long-range planning, and the bond presentation materials as factors in the continued strong credit rating of the City. The City's solid ratings play a key role in the ability of the City to receive favorable interest rates on debt issuances. This rating places us in the top 2% in the State of Texas and the top 10% in the United States. 3. After evaluating bids from several different solid waste contractors, the City entered into a contract that would give the same level of garbage service our residents had received in the past at the lowest possible rate. 4. The City entered into an agreement with the North Texas Tollway Authority to distribute ToIlTags at City Hall as a convenience to the traveling public. ToIlTags work on any toll road in the state and save motorists time and money. 5. Replaced 23 City vehicles per the long range replacement plan using "Pay As You Go" funds, insurance from hail damage, and grant reimbursements. Eleven vehicles were replaced with lower cost, fuel efficient vehicles resulting in current budget savings and future fuel cost savings. 6. The City was recognized by the State Energy Conservation Office for reducing electrical consumption and efforts in energy conservation. The City is in compliance with the mandates of Senate Bill 5. Preserve Positive City Image 1. Produced the 8th Sounds of Spring Concert Series with 4,500 people enjoying six nights of greatest hits music at NRH2O. Sounds of Spring created an upbeat atmosphere with excellent entertainment for the families of North Richland Hills. Fireworks were displayed following the first and last show. 2. Continued the Night of Holiday Magic in December 2007. Departments and volunteers came together to enjoy the season and offer holiday activities to the citizens of North Richland Hills. There was a tree lighting, fireworks, ice sculptures, a petting zoo, ice skating, a marshmallow roast and a visit from Mr. and Mrs. Claus. About 17,000 guests enjoyed the event. 3. Planned and managed several other special events including Easter in the Park, Hoot and Howl, Companies in Action, Volunteer Appreciation Luncheon, My Part of Town Neighborhood Park Series, Autumn Night Music, TV Off, Family On and others. The Parks and Recreation Department as a whole organized and managed 83 special events in FY 2007/2008. 4. Introduced RFID in the library check in/out process. RFID uses radio tag technology to make it easy for users to use self service kiosks to check out and return books to the library. By using the kiosks, the customers can avoid lines for service. 5. Garage sale permits can now be purchased online. Residents no longer need to come to city hall to fill out and receive a permit. They can now complete the form online and print the permit from their home computers. Neighborhood garage sales were also introduced to allow organized neighborhood groups to hold joint garage sales. 6. Residents can now view the health inspection scores of North Richland Hills' 300 food service establishments online. The information is updated monthly and residents can sign up for email notification when new scores are posted. A Sense of Community 1. Adopted the 2007 Parks, Recreation and Open Space Master Plan. The master plan updated the previous plan adopted in 2000 and assessed the city's parks, recreation and open space system. The plan allows the City to apply for Texas Parks and Wildlife Department grants. 2. The City completed 12 art installations on City traffic signal boxes. The signal art program beautifies public areas, improves our quality of life and creates a distinctive identity for our community. 3. The new North Richland Hills Public Library celebrated its grand opening April 19, 2008. The new facility includes a dynamic children's area, local history room, two community rooms, a cafe and state of the art technology. 4. The City continued the Keep NRH Beautiful, Neighborhood Looks, LitterNOT and Neighborhood Initiative programs. These programs encourage pride in North Richland Hills and maintain the beauty of our City's neighborhoods. 5. Hosted the first annual Public Safety Expo with approximately 2,000 visitors and approximately 100 volunteers and staff helping at the event. Bell Helicopter provided a Model 47 helicopter for display and the Texas Fire Museum provided five antique fire trucks. 6. Started webcasting City Council meetings. This further connects citizens to their Council and informs them about happenings in the City. 7. Parks and Recreation developed three new events this fiscal year including the Veterans Day event at Liberty Park, Discover Project Green at Cross Timbers Park and FidoFest at Tipps Canine Hollow. 8. In the Fall of 2007 and the Spring of 2008, the Police Department hosted seven community meetings open to citizens of each district. The Police Department presented information regarding the structure and organization of the department and crime information specific to each district. The public asked questions, creating a dialogue between the police and the community. Targeted Economic Development 1. Marketed the City to brokers, developers, retailers and restaurants at the International Council of Shopping Centers Annual Convention. From the convention, the City gained interest in both available buildings and greenfield sites. 2. Celebrated the grand opening of the Venue at Home Town. This mixed use development includes upscale apartment homes and several new businesses including Rise & Dine, Firehouse Subs and Chapps Hamburger Cafe. 3. Worked to bring Fitz Manufacturing to the old Kimberly-Clark site off Iron Horse Boulevard and Browning Drive. Fitz Manufacturing manufactures airplane bushing. 4. Met with North Richland Hills businesses to let them know about Economic Development and its role in the City. 5. Convened regular quarterly meetings of the City's Economic Development Advisory Committee, which began updating the City's Economic Development Plan. 6. Initiated the Business Improvement and Growth program (BIG). BIG works with small and older businesses to improve their outside facades and site landscaping. 7. Filled 850,000 square feet of vacant building space. Local and Regional Leadership 1. Keep NRH Beautiful received second place in the Keep Texas Beautiful Governor's Community Achievement Awards. 2. Received the annual Spirit of Cooperation Award from the Fort Worth Builders Association in recognition for sharing the commitment to provide safe, comfortable and affordable home ownership. 3. City Council members participated in several regional groups and the Mayor served in leadership roles as past-chair of the North Texas Council of Governments and chair of the Regional Transportation Council and the Tarrant County Regional Transportation Council. 4. Joined Vision North Texas, a regional private-public partnership designed to increase awareness about the growth expected in North Texas over the next few decades. Staff and City Council participated in the northwestern sub-regional workshop with other participants throughout the region. 5. Council members participated in SCORE, North Texas Clean Air Coalition, Northeast Leadership Forum and other local betterment committees. 6. The Purchasing Department has joined two major cooperative purchasing groups. This has been useful in cutting down on our bid process by utilizing contracts; cutting down on turn around time and freeing up purchasing staff for other tasks. 7. Held a leadership role in Rail North Texas, a group of elected officials, business leaders and members of the public working to expand regional rail in North Texas. The group is currently identifying possible funding sources to take to the Texas Legislature in 2009 for approval. These are just a few of the City's accomplishments over the last year. North Richland Hills is fortunate to have a City Council with the vision to plan for the future, good community partners and a staff that is dedicated to meet and exceed the expectations of Council. Fund Overviews Before moving into the details of the revised and proposed budgets, we feel it is important to give an overview of the types of funds used in planning and accounting for our annual program of work so that both our City Council members and our citizens are fully informed. This should create a clearer understanding of the budget as it is reviewed. General Fund The General Fund is the principal fund of the City and is used to account for resources associated with core government services, or traditional municipal services such as public safety, streets, library services, code compliance and building inspections. This is also the largest fund in the budget. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds include: the Parks & Recreation Facility Development Fund, the Crime Control and Prevention District Fund, the Promotional Fund, the Donations Fund, the Special Investigation Fund, the Drainage Utility Fund, the Gas Development Fund and the Traffic Safety Fund. Enterprise Funds Enterprise Funds account for services that are funded directly through user fees. They are financed and operated similar to a private business in that the costs of providing goods and services are self-supporting. These funds include the Utility Fund, the Golf Course Fund and the Aquatic Park Fund. Internal Service Funds Internal Service Funds are used to account for the financing of materials and services provided by one department to other departments on a cost reimbursement basis. Internal Service Funds are designed to clearly delineate the costs associated with these services. These funds include the Building Services Fund, the Equipment Services Fund, the Information Services Fund and the Self Insurance Fund. 7 t~ RED T As part of the regular annual budget process, some areas of the FY 2007/2008 budget require revision from the originally adopted level. Projecting revenues can be difficult at times when the economy is slowing and time lines for construction projects are not known. Expenditures can sometimes be difficult to project because they are being budgeted up to eighteen months before they occur. This can mean adjustments are needed to update to the most current estimates to complete the fiscal year. One of the changes you will notice between the adopted budget and revised budget is the Appropriation of Fund Balance for prior year encumbrances in the revised revenues. This is generally for purchases or contracts that were obligated in FY 2006/2007, as approved by Council, but actually purchased, paid for and completed in FY 2007/2008. The most noteworthy budget revisions are explained in the following narrative. General Fund Revised 2007!2008 Both revenues and expenditures have increased in FY 2007/2008 over what we projected for the adopted FY 2007/2008 budget. General Fund revenues have been revised up from the adopted level by $98,960, a 0.3% increase. This increase is the net effect of some revenues being revised down and some being revised up. Below is a discussion of the revenue adjustments. In addition, there were appropriations for an Insurance Fund reserve payment of $115,800 and prior year encumbrances of $758,158 included in total revenues of $38,112,958. The Insurance Fund reserve payment was included in the FY 2007/2008 adopted budget and the amount is unchanged. The Taxes category of revenues is projected to be slightly higher than the adopted budget. Sales tax revenues have maintained their levels. North Richland Hills is in a better position than many cities that have seen a sales tax decrease this year. The stabilization can be attributed to the reoccupation of vacant big box retail stores and smaller store fronts. Delinquent property taxes increased as did penalty and interest. Franchise fees increased. Utility Fund franchise taxes decreased. In summary, the net effect of these four adjustments to the Taxes category of revenues is an increase of $8,944. The Fines and Forfeitures category of revenues has been revised down approximately $512,590. Municipal Court Fines revenues have decreased due to a reduction in the number of citations being issued. Library fines have also decreased as have warrant and arrest fees. The decrease to warrant and arrest fees is also due to fewer citations being issued. Overall, the Licenses and Permits category has been revised up by $498,200, or 30.8%, of adopted FY 2007/2008. A majority of revenues in this category are solely dependent on private development. A large portion of this increase can be attributed to the construction of Richland High School and BISD's Career and Technology Center. The Charges for Service category has been revised up by $93,697 due mainly to increases in the amount of ambulance fees and recreation fees collected. There is a slight decrease in the projection of planning and zoning fees to better reflect actual collections for the year. The Miscellaneous Revenue category has increased very slightly from the adopted to revised FY 2007/2008 budget. Interest income has decreased slightly, but other categories have increased. The City has sold more city property and received more overtime reimbursements than expected. Also, revenues from the tax attorneys who collect delinquent taxes for the City have increased. Miscellaneous revenue increased by $10,709, or 1.4%. Appropriation of Fund Balance has increased by $758,158. The adjustment to this category is the appropriation for prior year encumbrances equal to the same amount reflected in expenditures. As discussed earlier, this amount is to offset open purchase orders from the prior year for items that were ordered in the prior year but were not received and paid for until the current year. General Fund departmental expenditures have been revised up by $1,026,171. This is mostly due to prior year encumbrances. As described above this amount is to offset open purchase orders from the prior year for items that were ordered in the prior year but were not received and paid for until the current year. The other increases shown are due to moving full time salary market adjustments from Reserves to each department. The market adjustments have not been adjusted, they are only being accounted for in a different place in General Fund expenditures. Savings realized in Operational Expenditures this fiscal year are being proposed to fund tuition reimbursements next fiscal year and future fiscal years. The education of employees is not solely a concern of individual departments. Rather, the education and training of employees affects the organization as a whole and makes it stronger and better able to respond to change. Because it is an organizational and not departmental goal to promote education among our workforce, it is recommended to budget tuition reimbursement in a non- departmental account overseen by the Human Resources Department rather than individual departmental budgets. This would allow us to take a city wide approach to tuition reimbursement and combine it with programs in leadership and organizational training. The Reserves and Other Expenditures category has been revised down $155,961. This overall decrease is due to a $305,961 decrease in the market adjustment, a $50,000 increase in reserves for the Building Services Fund and a $100,000 increase in the Equipment Services Fund. The $305,961 decrease in the market adjustment is due to market adjustments being moved to each department. The increases to the Building Services and Equipment Services Funds are to pay for future needs. All other reserves maintain their adopted levels. Total expenditures including all the adjustments outlined above are $38,062,276. Revised revenues over expenditures for the General Fund are $50,109. parka and ec~eati~n Facilities C~evel~ n~enf Fund evised 20712008 Sales tax revenues are projected to be $4,494,244, the same amount as in the adopted budget. As mentioned in the discussion of the General Fund, we are expecting to maintain our sales tax revenues while others in the area see declines. Interest income has increased $6,060 or 3.4%. Youth association maintenance fees have increased by $3,000 due to increased use. Tennis Center revenues have been revised upward to $312,750, an increase of $4,250. This increase is due to higher use of the tennis courts and caution placed in the adopted budget following last year's rainy season. All of these adjustments add up to total revenues of $5,612,974, which is $13,310 more than the adopted budget. Operating expenditures are $43,157 more than adopted. Higher expenditures are found in park facility administration, park and public grounds maintenance, and tennis center operations. This is due to the redistribution of the market adjustment and higher fuel and material costs. The Other and Reserves category decreased approximately $29,847. This decrease is in the reserve for capital project and is because projected revenues decreased while projected expenditures increased and there is less money to save for future capital projects. Total revised expenditures are $5,612,974. Crime C~ntr~l and eventi~n District eviaed 200712008 Sales tax revenues are projected at the same level as the adopted budget of $4,122,044. Interest income reduced was $34,467, or 59.0%. Interest income projections fluctuate depending on the cash in their accounts. The loan from the Transition Fund is also reduced by $56,813. A previous year encumbrance of $80,157 is shown in revenues but has also been added to expenditures. Total revenues decreased by $11,123 to $4,935,627. Operating expenditures increased by $42,871 because of prior year encumbrances and the movement of market adjustments to individual operating departments. There was a $38,901 decrease in technical services expenditures. And the transfers to Information and Equipment Services Funds were reduced. Total expenditures equal total revenues for this Fund. rc~nc~tinal Find Devised 200712008 Hotel/motel occupancy tax revenues are expected to maintain their adopted levels of $205,000. Interest income is revised up for this fund by $3,033 from adopted to revised FY 2007/2008 budget. This allows the appropriation of fund balance to be reduced by $3,033 as well. Also included in revised revenues is $8,000 for prior year encumbrances. Those encumbrances are added to economic development expenditures. Total expenditures are projected to be $241,101. Dnains u~r~ eviae 2007/2008 Total revenues are projected to decrease by $47,515 from adopted FY 2007/2008 budget. The revised revenues include an appropriation for prior year encumbrances of $4,288. The revised budget includes decreased projections in contributions in NRH water bills, the shelter fund, teen court donations and off site animal shelter adoption drives. Donation funds from spay/neuter programs, Duncan Disposal and library book sales are staying the same. And higher proceeds are now expected from coffee bar proceeds. Coffee bar proceeds refer to proceeds from the vending machines at the current Recreation Center and old Library. Total revised operating expenditures of $145,441 are $4,288 more than the adopted budget. That increase is due to prior year encumbrances for the library book collection and Keep NRH Beautiful. As discussed earlier, prior year encumbrances are items budgeted in the prior budget year but the funds were not spent until the current year. The Donations Fund is projected to end the year with a $29,894 balance of revenues over expenditures. S ecal Invests atin Find evise 200712008 Revised revenues have been adjusted up by $148,038. Forfeited funds revenues are dependent on which cases go to court and whether or not a judge releases any funds to the City. These revenues fluctuate year to year depending on actual cases involving actual court awards; therefore making it difficult to predict the amount of funds that will be available for the following fiscal year. The increase in federal forfeited funds in FY 2007/2008 was partially offset by a decrease in state forfeited funds. Radio system revenue has been increased by $27,431 due to greater participation in the radio system than previously anticipated. Interest income decreased by $1,130. Other income revenue was revised up by $3,400. Other income revenue includes various miscellaneous sources. The final adjustments to revenues are appropriations of $3,074 for prior year encumbrances and $65,263 of fund balance. Revised expenditures have also been adjusted up by $174,610 to reflect increased expenditures in forfeited funds, radio maintenance, automated fingerprint identification system (APIs) maintenance and locally seized funds. The forfeited funds increased by $145,805 to purchase tasers, fund the Family Resource Coordinator, send staff to mandatory training, upgrade the Emergency Operations Center and purchase promotional giveaways. These items were not budgeted in FY 2007/2008 adopted because available funds were not known at that time. The radio and AFIS maintenance expenditures are partially reimbursed from the nine other cities we provide service to. Overall, the increases to both revenues and expenditures in the Special Investigation Fund are attributable to better representation of how the funds are being received and spent. Drama + °tiiit Fund Revised 200712008 Drainage Utility Fund total revenues have increased by $18,307 over adopted, bringing the revised drainage revenues to $836,272. Drainage fees increased by $13,050 and investment income increased by $5,257. The debt service expenditures remained the same at $698,766. It is projected that this fund will end the year with a balance of approximately $713,124. Drainage fees are used to pay the costs of debt service for drainage capital improvement projects. as Devei~a~er~t Find evised 207120 8 The Gas Development Fund total revenues have increased by $5,626,360 from adopted to revised because the City has or will receive bonuses for leases signed at Northfield, Richfield, Little Bear Creek, JB Sandlin, Walker Creek, Fossil Creek and Linda Spurlock Parks. No bonus money was projected in the adopted budget. Expected royalty revenues decreased $200,000 because the City has not received any royalty revenue as of yet. Interest income increased $15,000 because of the earned bonus money. No changes have been made to the expenditures in this Fund. The projected expenditures remain at $608,888. The proposed expenditures adhere to the Council policy on uses of revenues from gas production/exploration. The expenditures area $400,000 transfer to the Parks and Recreation Development Fund for capital improvement projects. A transfer of $100,000 will be made to the General Fund for preventive street maintenance and a $100,000 transfer will be made to the Economic Development Fund for the BIG program. The balance at the end of this fiscal year is projected to be $5,777,529. Traffic Safe Fund evised 200712008 Gross fine revenues from the City's nine red light cameras are being revised down $737,000, or 95%. After contractor allowed expenses, the net fine revenues were reduced $672,670 to $269,848. The State receives 50% of the net revenues due to a law passed in the 2007 legislative session. The City's share of net revenues was revised to $134,924, reduced by $336,335 from adopted budget. Interest income was also zeroed out. Following the reduced revenue projections, expenditures were also reduced by $248,631 to $135,900. Traffic enforcement has been revised down by $23,631 to $75,900. Traffic signal improvements have been reduced $225,000 to $60,000. The traffic signals to be improved are located at the intersection of Precinct Line Drive and Rumfield Road and the intersection of Davis Boulevard and Bursey Road. Savings from previously completed projects will make up the funding difference to improve these traffic signals. 2C~08/2~~9 PRC}P~ED BUC~~ET Though the national economy continues to have problems and the state and other local governments struggle to maintain their revenue sources, the City of North Richland Hills has prepared in the past to avoid a crisis now. Through planning and visionary leadership we are able to weather this storm. Despite rising costs and possible decreasing revenues, the City will continue to accomplish the numerous goals of the City Council and be strong from a financial point of view. Our team of dedicated employees will continue to focus in the coming year on providing quality services to our customers and implementing the City Council Goals of: • Quality Community Development and Revitalization • Efficient Effective Transportation System • Safety and Security • Financial Stability • Preserve Positive City Image • A Sense of Community • Targeted Economic Development • Local and Regional Leadership Residential growth should slow in FY 2008/2009 and growth of our economic base will shift from the reoccupation of several older, larger buildings to revitalization of smaller store fronts. New residents and businesses will continue to move to North Richland Hills. The redevelopment and revitalization of Boulevard 26, the former North Hills Mall site and the South Holiday District will move forward. We will continue to have natural gas development on public and private lands. All of this will have a positive impact on our future revenues and will help deter the increasing costs that are beyond our control. As our City's population increases, we face an understandable increase in the quantity of goods and services needed to serve that population. Like any business, the City of North Richland Hills is also experiencing increases in the cost of electricity, gasoline, building materials and other services. Many of the cost increases the City is experiencing are greater than general inflation or the consumer price index. We are making efforts to find ways to minimize the impact of these types of increases. Price per unit of gasoline is projected to increase in FY 2008/2009. In FY 2007/2008 the per gallon cost of gasoline was budgeted at $2.75. In FY 2008/2009 we are expecting the per gallon cost of gasoline to be $3.75, a 36% increase. However as the City purchases more fuel efficient vehicles and creates fuel efficiency initiatives, we expect to use less gasoline. We expect to only use 140,000 gallons of gasoline next fiscal year compared to 185,000 gallons this year. This will be a significant measure to help us keep our costs down even with actual price increases for fuel. The City will also see an increase in prices for petroleum based products. Tires are expected to increase from $108.10 to $124.31 each, a 15% increase. Engine oil is estimated to increase from $2.40 to $2.76 per quart, a 15% increase. Asphalt, needed for the Preventive Street Maintenance Program, is estimated to increase 14% from $50 per ton to $57 per ton. Electricity costs are projected to increase due to an increased per unit price. The cost of electricity per Kilowatt/hour averaged $0.138 in FY 2007/2008. The average in FY 2008/2009 is estimated to be $0.150 per Kilowatt/hour, an 8.7% increase. Other construction materials are estimated to increase as well. Copper tubing is anticipated to increase 10% from $15.85 per linear foot to $17.44 per linear foot. Concrete is projected to increase 8%, from $72.00 per cubic yard in FY 2007/2008 to $78.00 per cubic yard in FY 2008/2009. The City expects to see an increase of 6.4% in credit card fees in FY 2008/2009 due to increased usage. More residents are using the credit card option to pay for various city services and while the fees normally are below 1 %, some cards have fees of over 4%. Another expenditure that has a major impact on the City's operations is health and medical costs. After having several years of these costs rising between 8% and 10% per year, and we are projecting a 5.6% increase in FY 2008/2009. We are alabor-intensive, service orientated business, and because of this it is a major cost increase to cover our employees with health insurance. To help defer the increasing costs of doing business, all of our departments continue to look for ways to reduce costs and to improve levels of efficiency. This is an important step in our fiscal planning and will help us to maintain our financial stability and retain a 57¢ tax rate. As we plan our services and programs for FY 2008/2009, it is important to highlight some of our continuing initiatives, to summarize the revenues and expenditures for each fund and to explain new programs and initiatives that are being proposed. Highlights and Analysis In an effort to achieve the goals set by the City Council and address the issues we expect to shape the FY 2008/2009 budget year, a number of new initiatives are planned for FY 2008/2009 as well as the continuation of others from previous years. Highlights of the coming year are: 1. Continuin Su ort for Preventive Street Maintenance -The 18t" consecutive year of major funding for street maintenance will see the continuation of funding devoted to this highly visible program. Due to rising material costs, the program is proposed to be $900,000 in FY 2008/2009, an increase of $100,000 from FY 2007/2008. In FY 2007/2008, $100,000 came from the Gas Development Fund and $700,000 from the General Fund. In FY 2008/2009 $100,000 is planned to be provided from previous years' program savings and $800,000 is proposed from the General Fund. The General Fund will increase its support of this program by $100,000. Asphalt overlay will be applied to 5.0 lane miles of public roads and slurry seal will be applied to 13.0 lane miles of public roads. We expect that our overall street rating of 81 will continue to increase with this program. 2. E ui ment ~ Buildin Services Plan -These plans as originally presented to City Council in FY 1997/1998 continue to be updated to ensure Council and citizens recognize needs for future equipment replacements, facility renovations and major maintenance. The plans allow the City to continue its programs of facility infrastructure maintenance and equipment replacements with no property tax increase, while monitoring the investment the City has in these valuable assets. Suggested changes are being made for Fiscal Year 2008/2009 as far as specific equipment and building upgrades, but the basic plan remains valid and is recommended to be continued as a tool to keep our equipment and buildings timely and reasonably maintained, replaced and/or improved. The 2009 plans are presented in the FY 2008/2009 Capital Improvement Projects (CIP) Budget. 3. A uatic Park Infrastructure -The 13t" consecutive year of infrastructure funding is recommended to continue with $425,000 added to reserves for major infrastructure replacement and/or major repair. It is recommended to begin adding $50,000 annually to the previous $375,000 budgeted as more facilities are being added to the park and infrastructure costs are increasing. Total accumulated reserves at the end of FY 2008/2009 are estimated to be approximately $4 million. 4. Continuing Support of Alliance for Children Advocacy Center -This program will receive $11,725 in FY 2008/2009 with funding from the Crime Control and Prevention District sales tax. This program reaches out with assistance to at- risk children in Northeast Tarrant County. 5. 10~~` Year Reserve for Ca ital Im rovements -The FY 2008/2009 budget continues funding the reserve for capital projects to provide a "Pay As You Go" approach to fund small capital projects. The total funding for this reserve is $300,000. Projects funded from this reserve allow us to avoid borrowing funds for smaller capital projects. This will bring the total amount allocated to the reserve to $4,159,261 since it was created in FY 1998/1999. 6. Service enhancements for FY 2008/2009 - A few service enhancements to address Goals established by the City Council are proposed in the FY 2008/2009 proposed budget. Management and Staff identified items that met high priority needs but were funded by extraordinary and one-time revenues. These enhancements are discussed in detail later in the letter, starting on page xxviii. The following is a summary of these recommended enhancements: - Additional School Crossing Guard - Code Compliance Assistance Program - Night of Holiday Magic Site Upgrades 7. Continuing to Restore Medical Claim Reserves - In July 2003, the City Council held a special work session to discuss significant challenges facing the City's self-insured health plan. Years of double-digit medical cost increases and several large catastrophic medical claims had put a strain on the City's Self Insurance Fund. At that time, a six year strategy of cost sharing and cost reduction was approved to address the City's health insurance costs. It was important for employees and the City to partner together to ensure the long-term success of the cost saving initiatives. This includes rebuilding medical claim reserves for future emergencies and to keep the plan stable. Substantial progress has been made, and in FY 2008/2009 we will continue to have improvements. While the FY 2008/2009 proposed budget addresses many of the Goals Council has established for the City, the proposed budget strives to further enhance or modify existing services without incurring added costs. Due to limited resources this has been a challenge but we believe our collaboration has yielded a budget that meets our goals. Pro ert Values & Tax Anal sis Net taxable value growth is up once again. As of the July 2008 tax roll, net taxable values are $3,759,485,131 which is 5.2% greater than last July. The average home value in North Richland Hills was $144,417 in July 2007. The average home value, based on the July 2008 tax roll, is $149,808. The estimated revenue to be generated from the net taxable value at a 99% collection rate is $21,214,775. The budget includes revenues to the Debt Service Fund in the amount of $6,509,609 to pay for bonds and certificates of obligation, $1,141,839 for public improvements in the Tax Increment Financing Districts, and $13,563,327 to the General Fund. The budget includes no changes to the current tax rate of 57¢ per $100 valuation. Tarrant Appraisal District (TAD) had an error in the new construction figure they provided us and have indicated it will be next week before we receive the corrected information. Once we have the correct figure we will be able to calculate the effective tax rate and determine how much our existing properties increased in value. This information will be provided to Council next week. General Fund Prap~osed 2008/20Q9 The General Fund provides funding for the tax supported operations of the City. These include services traditionally thought of when referring to City operations such as Police, Fire, Streets, Library, etc. The major sources of revenue to this Fund are sales taxes (representing 24% of General Fund revenues) and property taxes (representing 36% of General Fund revenues). In FY 2008/2009, total revenues in the General Fund are projected to increase over FY 2007/2008 adopted revenues by approximately $1,011,899, or 2.7%. The major increases are: - Property Taxes $ 968,224 - Sales Taxes $ 219,712 - Charges for Service $ 206,360 - Miscellaneous $ 142,039 - Licenses and Permits $ 16,500 Property tax revenues are projected at $21,214,775 based on the current 57¢ tax rate. Of this amount, $6,509,609 is needed for general debt service and $1,141,839 is needed for debt service payments in the Tax Increment Financing Districts. General Fund sales taxes are projected at $9,008,200 (an increase of 2.5% above FY 2007/2008 adopted budget), which includes business gains as well as business losses. The revenue projections for Charges for Service include facility rental fees, ambulance fees, athletic league revenue, special event fees and other miscellaneous revenue. Higher ambulance fees in FY 2008/2009 are projected to increase the Charges for Service revenues. As discussed with Council at the June Preliminary Budget Workshop, North Richland Hills' ambulance fees have only been increased by the CPI and are significantly lower than those of our surrounding neighbors. These rates need to be brought more in line with the costs of service and our neighbors' rates. It is therefore proposed that ambulance fees for residents and non-residents be increased over the next few years to bring North Richland Hills into alignment with surrounding cities. Ambulance fees for residents and non-residents are far below average for the region. North Richland Hills currently has a 27% cost recovery for residents and a 37% cost recovery for non-residents. The average rate for our region represents a cost recovery for services of 60% for residents and 67% for non- residents. The objective of this proposed rate increase is to have non-residents pay 67% cost recovery in FY 2008/2009 and residents pay 60% cost recovery by FY 2011/2012. Under this proposal, residents would pay 36% cost recovery in FY 2008/2009. The General Fund departmental operating budget requests for FY 2008/2009 total $37,878,005, a 3.6% increase over the adopted FY 2007/2008 budget. The consumer price index (CPI) for the Dallas Fort Worth area has increased 5.0% over approximately the same time period, while the cost of many products the City buys in large quantities has gone up in price greater than the CPI. For example gasoline is expected to increase $306,000. Additionally, petroleum-based products such as oil, tires and materials used in street maintenance have gone up significantly as well. Electricity costs associated with General Fund departments are other costs that have risen much greater than the CPI, and are estimated to increase almost $250,000. Healthcare costs continue to rise every year with projected expenditures expected to increase 5.6% over the FY 2007/2008 level, or about $362,077. This percentage is a lower increase than in years' past when such costs doubled CPI growth. The most significant increases to the budget are in employee salaries and benefits costs. Market adjustments are proposed to be delayed from January, 2009 to April, 2009 to decrease the impact by $120,263. The estimated cost with this change is $188,634. The annual merit increase of up to 4% for eligible employees will have approximately a $500,000 impact on the proposed budget. Increases to salary, through merit increases or market adjustments, will proportionally increase retirement pension payments and overtime rates. Higher TMRS contributions also add to costs. All of this will be discussed further in the "R-SPIRIT, Part of Today's Vision for Tomorrow's Reality" section of this budget message. It should be noted that FY 2008/2009 will be the first full year of operations of the new Library. The new Library opened in April, 2008 and has seen tremendous customer activity. Operating costs are not significantly higher in FY 2008/2009 than in FY 2007/2008 adopted, less than 1 % higher. That is due to one time expenses paid in FY 2007/2008 associated with moving to the new facility, such as moving costs, not being required in FY 2008/2009. The one time expenses offset many of the costs associated with a full year of operating the new facility. In FY 2007/2008, $800,000 was budgeted for the Preventive Street Maintenance Program by Public Works. The Gas Development Fund provided $100,000 for the program and the General Fund provided $700,000. In FY 2008/2009 the program will be funded with $100,000 from previous year savings and $800,000 from the General Fund. The $100,000 increase is to combat rising material costs. Unfortunately due to inflation the increase will not allow the City to substantially increase the lane miles of repaired roads. The proposed budget includes $300,000 in reserve for "Pay As You Go" capital improvements. This is a $250,000 increase from FY 2007/2008. The proposed budget also includes an $115,800 allocation to the Self Insurance Fund to continue the rebuilding of medical claims reserves in that fund as approved by Council. Funding is from the General Fund balance and is identified as an Appropriation from Fund Balance in the revenues and in expenditures as a transfer to the Self Insurance Fund. This maintains the adopted FY 2007/2008 level. Finally, the proposed budget includes $28,659 for service enhancements that will be discussed in detail in "Today's Vision, Tomorrow's Reality: Planning for the Future and Addressing Priorities" section of this letter. The projections for the capital projects reserve, market adjustments, allocation to the self insurance medical claims reserve and service enhancements plus the General Fund operating costs bring the total proposed General Fund budget to $38,226,175 or 2.8% over adopted FY 2007/2008. In FY 2008/2009, the City will continue to deliver the expected high quality services as in past years. The projected revenues over expenditures for the General Fund are $40,991. Park and Recreation Facilities Development Fund Proposed 2008/2009 Sales tax revenues are projected to be $4,606,600 in FY 2008/2009, approximately $112,356, or 2.5%, more than the FY 2007/2008 adopted budget. Interest income is expected to decrease $24,920 and youth association maintenance fees should increase $3,500. Tennis Center revenues are projected at $316,200, or about $7,700 more than adopted FY 2007/2008. Also included in revenues is $60,000 from the Aquatic Park Fund as a reimbursement for landscaping services provided by park employees at NRH2O. The Gas Development Fund will not contribute funds next fiscal year. Park impact fees are increasing by $16,250 to $141,250. There is also a fund balance appropriation of $600,000 included in the budget. This is to offset the expense of $600,000 for the Recreation Center Capital Project. Total revenues from all sources total $5,914,550, an increase of $314,886. Expenditures equal revenues in the Fund. Included in expenditures is a debt service payment of $1,304,681. Also included is the allocation of sales tax revenues to be used to enhance economic development efforts. The allocations to economic development are 5% of sales tax revenues, or $230,330 for the FY 2008/2009 proposed budget. A reserve of $688,247 will be set aside for future capital projects. Administration and general services functions project expenditures of $580,475. And, park maintenance anticipates an increase of $89,892 due to rising fuel and equipment maintenance costs. The Tennis Center is projecting expenditures of $591,709 to operate the facility. Included in total expenditures is $600,000 to be used toward funding the Recreation Center Capital Project. This new center includes $1,100,000 of funds from the half cent sales tax and the first payment of $500,000 was included in the FY 2007/2008 approved budget. This proposed $600,000 is the planned payment for FY 2008/2009. Operating costs for the new Recreation Center are to be paid with a combination of the current General Fund Parks and Recreation operating costs and higher usage and membership fees. The future fees will be determined in upcoming budgets. Crime Control and Prevention District Fund Proposed 200812009 Sales tax revenues are projected to be $4,225,095 in the Crime Control District for FY 2008/2009. This is $103,051 more than the FY 2007/2008 adopted budget. Interest income will decrease by $39,268. A planned loan of $663,089 from the Transition Fund is necessary to balance revenues over expenditures. Other changes are proposed that will be described below in order to address rising costs and flattening sales tax revenues. Proposed FY 2008/2009 operating expenditures are projected to increase $217,203 over the FY 2007/2008 adopted budget. Similar to the General Fund, the majority of the increases are attributed to personnel related costs, including increased healthcare costs, the proposed market adjustment and merit increases. The vast majority of Crime Control District expenditures are personnel so any cost increases significantly impact this Fund. A transfer to the Information Services Fund of $60,000 is to be used for digital video equipment. No transfer to the Equipment Services Fund is planned. Also included in total proposed expenditures of $4,907,318 is $100,000 for indirect costs to the General Fund, $658,673 for General Fund police officer salary increases and $37,431 for market adjustments needed next year to keep salaries competitive and allow us to attract and retain the best employees we can. Promotional Fund Pro osed 200812009 The Promotional Fund, which provides visitor/tourism services and economic development for the City, projects occupancy tax proceeds of $205,000, interest income in the amount of $7,686, and an appropriation of fund balance of $15,881 necessary to cover costs. This Fund continues to see very little growth based on the occupancy levels at local hotels. We do not expect any improvement in this over the foreseeable future. As previously discussed with Council, until a new hotel can be developed, the recommended plan is to primarily use these funds to provide promotional and marketing opportunities. In FY 2005/2006 a plan was instituted to move 0.25 full-time equivalent salaries to the General Fund each year until all salaries are transitioned out of the Promotional Fund and into the General Fund. In FY 2008/2009, it is recommended this transition continue and is why expenditures are less than in FY 2007/2008. The operating expenditures for Economic Development in General Fund will increase to include the greater portion of salaries. Total proposed expenditures for the promotional fund are projected at $228,567. Donations Fund Pro used 200812009 The Donations Fund derives most of its revenue from contributions made through city utility bills. The contributions are allocated to the Library (65¢), Humane Services (65¢), and special events and arts (20¢). It is estimated that water bill donation revenues will generate $89,000 of the total projected revenues of $237,806 for FY 2008/2009. Total revenues are $14,956 more than FY 2007/2008 adopted. The increase is due to interest and other income revenues. It is projected that the Fund will have revenues in excess of expenditures of $72,432. Excess revenues will be allocated to the three approved categories of the Donations Fund. There is $64,900 service enhancement for the Night of Holiday Magic included in the proposed budget and will be discussed in detail in the "Today's Vision, Tomorrow's Reality: Planning for the Future and Addressing Priorities" section of this letter. S ecial tnvesti anon Fund Pro used 200812x09 Revenues for this Fund are derived from Federal and State forfeited funds and reimbursements from neighboring cities involved in the 800 MHz radio system and the automated fingerprint identification system (APIs) program. Total revenues are budgeted at $627,021, which is $233,228 higher than FY 2007/2008 adopted. Proposed expenditures include a $231,800 increase in forfeited funds. This increase is due to the proposed purchase of new forensic video equipment. The current forensic video equipment uses VHS tapes. New equipment would make the system digital. The increases to both revenues and expenditures in the Special Investigation Fund can by attributed to increased funds collected in FY 2007/2008 and an appropriation of fund balance. The budget could be reduced in FY 2009/2010 if forfeited fund collections do not meet projections. Drama a Utilit Fund Pro used 200812009 This Fund accounts for the monthly fees charged to residents and businesses to pay for the cost of storm drainage improvements throughout the City. Revenues are transferred to the Debt Service Fund to pay for principal and interest on bonds approved by voters for drainage improvements. Budgeted debt service transfers for FY 2008/2009 are $354,198. This is a decrease of $344,568 from FY 2007/2008. The debt service transfer is being reduced to allow the City to take on new debt to fund upcoming capital projects. An ending balance of $1,196,662 is projected for this Fund due to increasing drainage fee revenues and decreasing debt service. Gas Develo ment Fund Pro osed 2x08/2009 Gas development revenues of $1,053,707 are anticipated from leasing Iron Horse Golf Course and lease revenue for ongoing gas production at Fossil Creek, Linda Spurlock, Richfield, Northfield, Cross Timbers, Green Valley, JB Sandlin and Little Bear Creek Parks. Of this revenue, no funds will be expended. The ending balance of the Fund is projected to be $6,831,236 for FY 2008/2009. This balance will help finance projects in the future. Traffic Safet Fund Pro osed 2x08/2009 Red light camera fine revenues of $864,000 are anticipated from nine cameras or approaches located at seven intersections along Rufe Snow Drive and Davis Boulevard. After deducting proposed contractor payments and program administration expenditures of $589,861, the proposed net fine revenues are $274,139. Per State law these net revenues must be split 50/50 with the State, leaving $137,070 available for traffic safety activities and projects in the City. The proposed expenditures of these revenues adhere to the Council policy on uses of revenues from automated traffic signal enforcement. The proposed expenditures include a $100,000 transfer to the capital projects budget for the signalization of two intersections and $10,730 for traffic enforcement. These projects will be discussed in more detail in the FY 2008/2009 Capital Projects Budget. The proposed FY 2008/2009 ending balance of the Traffic Safety Fund after allowable program expenditures, State share and traffic safety expenditures is projected to be $27,180. Today's Vision, Tomorrow's Reality: Planning for the Future and Addressing Priorities The City continues to experience steady population growth and increased demands on services. To continue providing excellent service, a few enhancements are needed in some City programs and services. These enhancements have been deemed high priority and are in line with City Council's Goals and Objectives. This list includes proposed service enhancements for FY 2008/2009. The following descriptions provide details of the service enhancements. Proposed FY 2008/2009 Additional School Crossing Guard The City received several requests last year to place a school crossing guard at the intersection of Bursey and Smithfield Roads. This intersection is used by students living north of Bursey Road to access Green Valley elementary school. The City agrees that a crossing guard would be beneficial at that intersection due to the high traffic volume. If Council agrees to put a crossing guard at the location, the City will use current available sources to fund the position from the first day of school on August 25, 2008 until the next fiscal year begins. The part time position will require $6,699 for FY 2008/2009. This position is recommended to be paid for in the General Fund. Code Compliance Assistance Program This summer, the Neighborhood Services Department tried a new program in which part-time employees investigated common property maintenance concerns. This allowed full-time code compliance officers to concentrate on major property and building issues. The two code compliance assistants divided the City into two sections and looked for high grass and other common property issues. This program was only implemented during high growing season and it allowed the City to better enforce its high grass ordinance. It also allowed its full- time code compliance officers to dedicate their time to bigger issues. In May, before the program was introduced, code compliance officers were able to investigate only 26 substandard house cases. In June, after the assistants began looking for common property issues, officers investigated 53 substandard house cases. To continue, the program needs $21,960 in FY 2008/2009. Funding for this program is proposed to be financed from the General Fund. Night of Holiday Magic Site Improvements The City can no longer hold Night of Holiday Magic at the City's Service Center. Birdville ISD will soon start construction on its new career and technology center. The site of the new center is where visitors have parked for Night of Holiday Magic. No other parking location is available near the Service Center for Night of Holiday Magic's annual 18,000 visitors. Due to the new site constraints at the Service Center, Night of Holiday Magic is planned to be moved to NRH2O this year for the December 7t" event. The move will require new electrical service in the parking lot of NRH2O to light the Christmas tree and provide necessary power for the stage, holiday displays, children's activities and other activities related to the event. The move will also require new equipment and decorations. This site improvement program will be phased in due to the large costs of placing an electrical system underneath the parking lot. For FY 2008/2009, $64,900 is needed to purchase decorations, lights and electrical equipment. The Special Events part of the Donations Fund is requested to pay for these improvements. Parking for Night of Holiday Magic will be located at Tarrant County College's Northeast Campus, across Boulevard 26 from NRH2O. "R-SPIRIT"-- Part of Today's Vision, Tomorrow's Reality Every day City employees represent the core values of Respect, Service, Productivity, Integrity, Responsibility, Innovation and Teamwork. Since its inception, the core values have become an important part of the City's culture and identity. This is most evident when considering the high marks given by the citizens of North Richland Hills as reported during our last citizen satisfaction survey. To continue to achieve high levels of customer satisfaction the City must be able to recruit and retain quality employees. This year's budget proposes a competitive compensation and benefits package for our employees which allows the City to retain a wealth of knowledge and experience as well as the ability to recruit future employees who have the same passion for quality and customer service as our current team of employees. North Richland Hills has a history of hiring and retaining skilled, educated and experienced people, and providing a quality compensation and benefits program is essential to ensuring that continues. With this in mind we believe it necessary to provide competitive compensation and benefit improvements in FY 2008/2009. Below are highlights of employee compensation and benefits that management believes is essential to remain competitive and equitable to our employees. Market Adjustment Plan for FY 2008/2009 On February 24, 2003, Council adopted a resolution (No. 2003-01) recognizing the need to compensate employees at a competitive market level in order to retain and attract quality individuals. As part of this resolution, Council instructed Staff to conduct annual salary surveys to determine market changes. To maintain the Council's goal of positioning our salary range midpoints at the market average, in January 2008 Council approved a 4.26% market adjustment to the City's Public Safety Pay Plan and a 2.69% market adjustment to the City's Professional/Administrative and General Services Pay Plans. To simplify the budget process, most cities adjust their pay ranges October 1 of each year. To determine additional movement with the market, the Human Resources Department will conduct its annual benchmark survey of our ten comparison cities in October 2008. At that time, the City will know what additional adjustments will be necessary to the pay plans in April 2009 to reach the goal of positioning our salary range midpoints at the market average. As in years past, survey data is coupled with the Employment Cost Index (ECI) to determine the level of adjustment necessary to move our pay range midpoints to the market average. The ECI is a component of the National Compensation Survey compiled by the U.S. Department of Labor every quarter to measure the changes in compensation costs for both public and private sector employers. Incorporating the public sector ECI into the pay plan adjustments gives a more accurate picture of how salaries have changed for all public sector employers while still considering the local competition that exists among cities to attract quality employees. Based on the most recent activity as well as discussions with other cities, we anticipate the market adjustment in April 2009 not to exceed 4.5% for the Public Safety Pay Plan and 3.5% for the Professional/Administrative and General Services Pay Plans. Due to the differences between the two pay plans, as in the past, the implementation of the 2009 market adjustment for the Public Safety Pay Plan will be different than the Professional/Administrative and General Services Pay Plans. All Public Safety employees will remain on step and their salaries will be adjusted along with the pay ranges. Professional/Administrative and General Services pay ranges will be brought to the market average with no further adjustment to employee salaries. Compression issues that may occur at the bottom of the General Services Pay Plan will be addressed on an individual basis. Only those employees who achieved an acceptable rating on their last performance evaluation are eligible to receive the market adjustment. Employees not receiving the market adjustment will have their salaries frozen and will be eligible for an increase at the time of their next merit review. Management will continue to evaluate the City's compensation program to determine its competitiveness. As always, future adjustments will be made in accordance with market movement and financial considerations. Continuation of Merit Pay System In 1996, the City Council adopted a merit pay for performance system that reinforces the value of productivity by rewarding those employees that maintain an acceptable level of performance. Through the merit pay system, employees receive an annual performance evaluation, and those employees who achieve an acceptable rating are eligible to receive an increase in pay for good job performance. This system was evaluated by the Compensation and Classification Study that was completed in 2003, and it was recommended to continue the merit pay system as a reward for good job performance. The adopted budget provides for the continuation of the merit pay system by providing for an increase in pay for all full time employees that receive an acceptable performance evaluation. Those employees that do not receive satisfactory evaluations will not be eligible for a salary increase. We believe it is important to continue the merit pay system so that the City continues to provide incentive and acknowledgement to employees who perform their jobs well. North Richland Hills citizens benefit by receiving good customer service and quality city services from motivated employees. Employee Health Insurance for Plan Year 2009 Through June 2008, the City's health plan is performing well with medical expenditures continuing to track under budget. With the positive claims experience over the last several years we are not recommending any plan design modifications such as increases in co-pays, deductibles, or out-of-pocket maximums for Plan Year 2009. Based on our ongoing review of our medical claims experience, next fiscal year we are projecting an overall cost increase of approximately 5%. Employees will be expected to share in that cost increase through an increase in monthly medical premiums. To maintain the cost-sharing ratio, we will be increasing employee premiums across the board 5% as well as continuing to follow our strategy for building reserves by adding an additional $5 to employee monthly health insurance premiums. Effective January 2009, medical premium increases will range from a high of $22 per month to a low of $7 per month depending on the plan and coverage options chosen. With the increase to the City's and the employee's contribution, in 2009 we expect to maintain our funding goal of 20% of revenue contributed through employee medical premiums and 80% of revenue contributed by the City. Although the City's claims experience has been positive over the last several years, the City will continue to proactively monitor and address health care costs through plan design changes as well as employee wellness education and prevention efforts. TMRS - Charting a Future Course The Texas Municipal Retirement System (TMRS) was created by law in 1947 to provide secure retirement for municipal employees. The City of North Richland Hills is one of 821 member cities. Over the past few years demographic and economic factors have contributed to an increase in retirement costs. Demographic changes include lower employee turnover rates and an increase in retiree-to-active employee ratios. Economic factors include a decline in bond market interest rates and the cost of annually repeating benefits such as updated service credits and cost of living adjustments. TMRS began a strategic initiative in 2006 to address these concerns by soliciting input from various stakeholders including elected officials, retirees and current TMRS members. For much of its 60 year history, TMRS has invested primarily in the bond market. This investment strategy provided a predictable annual income stream with minimal risk. Recently, the interest income from bonds has dropped to the lowest level in many years. In 2008, TMRS began to diversify its investment portfolio to include both stocks and bonds. Investing in the stock market will be done gradually and is designed to increase investment earnings while maintaining an appropriate level of risk. Along with the change in investment strategy, the TMRS board adopted a new actuarial method which will provide for better "pre-funding" of retirement benefits. Long-term, this will allow cities to see more progress with reducing their unfunded liabilities. The most significant impact of this new actuarial method is related to the pre-funding requirements of two different plan provisions, cost of living adjustments and updated service credits. Ninety two percent of TMRS member cities, including North Richland Hills, have adopted these two benefits on an annually repeating basis. Because they are annually repeating benefits, the actuarial study treats these as "committed benefits", which must be advance funded over the working life of each employee. The impact of advance funding these two benefits is the main reason why many cities are seeing their TMRS costs increase. The TMRS Board of Directors recognizes that the actuarial changes adopted in December 2007 may cause an increase to City retirement costs. To lessen the immediate financial impact to city budgets, cities may choose to phase-in the cost increase over a period of eight years. The eight year phase-in option allows cities the time to develop amulti-year funding strategy as well as to maintain the same level of benefit while the 2009 legislative package is advanced. At the mid- year budget work session, Council approved the implementation of the eight-year phase-in option. Therefore, in 2009, the City's contribution rate will be 14.26%. Staff will continue to proactively monitor the TMRS legislative initiatives and update Council as new information becomes available. Financing For Fiscal Year 2008/2009 The FY 2008/2009 proposed budget is balanced and sound. Overall, the budget will result in the continuation of core functions at the same high level of service, while expanding some services to plan for the future and address priorities. The proposed FY 2008/2009 budget is based on maintaining the current 57¢ property tax rate. If approved by Council, this will be the 16th consecutive year for maintaining the current tax rate. The budget includes a 2.4% increase to sales tax revenues as well. An increase in ambulance fees is also reflected in the budget. As mentioned earlier, North Richland Hills' ambulance fees are far below the average for the region. North Richland Hills currently has a cost recovery of 27% for residents and 37% for non-residents. The average rate of recovery in this area is 60% for residents and 67% for non-residents. The City will raise its ambulance rates to meet those averages. Non-residents will begin to pay 65% cost of recovery for service in FY 2008/2009. Residents will enter a phased system and pay 60% of cost recovery for service in FY 2011 /2012. The proposed budget will maintain the same base water and sewer rates as last year. The City has finished implementing its Utility Rate Study. The Study, approved by Council and implemented in December 2005, included a three year phased plan. The rates were established to meet the revenue requirements for the system's operation and maintenance costs. Water 2007 2008 2009 Base $9.12 $9.30 $9.30 Volume $2.58 $2.69 $2.69 Sewer 2007 2008 2009 Base $7.27 $7.27 $7.27 Volume $1.17 $1.17 $1.17 In addition, the City anticipates an increase in the Fort Worth/Trinity River Authority water and sewer pass through rates in FY 2008/2009. Costs associated with payments to Fort Worth and TRA are not controllable by the City, and therefore are calculated separately. Golf fees are recommended to increase by $3 per round. And, aquatic park fees are projected to increase $1 in accordance with the Strategic Plan for NRH2O. Staff will continue to seek new outside revenue sources including grants and increased donations for the Library Book Fund and the Animal Adoption Rescue Center Expansion Fund. Summary and Conclusion Department Directors along with the Finance and Budget Departments and City Management Team have put a great deal of time and effort into preparing a balanced budget, maintaining astable tax rate and implementing the City Council's Goals and Objectives. We are grateful for their dedication and teamwork. We could not have met the challenges and presented a sound budget document without their cooperation and efforts. We also appreciate our many community partners who continue to work hand in hand with the City to help us create today's vision for tomorrow's reality. The City Council should also be commended for its leadership and vision. The Council's Goals and Objectives are the driving force that ensures the City will continue to maintain the high quality of life that our residents enjoy. Through careful planning and prioritizing, we have also been able to recommend the following service enhancements in the FY 2008/2009 budget: • Additional School Crossing Guard • Code Compliance Assistance Program • Night of Holiday Magic Site Improvements To provide the highest level of services to our community, it is imperative for the City to continue to retain quality employees. Therefore in the FY 2008/2009 budget the merit pay program is planned to continue as established by the City Council to provide incentives and acknowledgement to employees who perform their jobs well. We also recommend a market adjustment in FY 2008/2009 to remain competitive and retain the quality employees that North Richland Hills is well known for. The Employee Medical Plan will not change, but premiums to employees will increase in accordance with our six-year strategy for cost sharing and cost reduction. In the coming year, we are also projecting increases in the cost of electricity, gasoline, building materials and other products that the City must purchase. We will absorb as much of the cost increases as possible by increasing efficiency and using our building, vehicles and materials wisely. While we anticipate a 2.7% overall increase in spending in the General Fund for FY 2008/2009, our careful budgeting and planning will allow us to maintain the current 57¢ tax rate for the 16 year in row. With a City Council committed to excellence, dedicated community partners and employees with a desire to achieve their best and excel, it is little wonder why North Richland Hills continues to prosper and be the City of Choice to Live, Work and Play. Respectfully Submitted, `~~~ Larry J. Cunningham City Manager FISCAL YEAR 2008-2009 SCHEDULE 1 -SUMMARY OF REVENUES AND EXPENDITURES GENERAL FUND REVENUES Taxes Fines & Forfeitures Licenses & Permits Charges for Service Intergovernmental Miscellaneous Sub-Total Revenues Appropriation from Fund Balance Legal Settlement Insurance Reserves Golf Course Equipment Loan Previous Year Encumbrances TOTAL REVENUES EXPENDITURES City Council City Manager Communications City Secretary Legal Human Resources Finance Budget & Research Municipal Court Planning and Inspections Economic Development Library Neighborhood Services Public Works Parks & Recreation Police Fire Building Services Non-Departmental Sub-Total Departments ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005106 FY 2006107 FY 2007108 FY 2007/08 FY 2008/09 $24,578,129 $25,419,294 $26,494,459 $26,503,403 $27,808,772 2,065,177 2,064,187 2,570,000 2,057,410 2,089,410 2,481,875 1,716,600 1,620,150 2,118,350 1,636,650 2,178,610 2,282,949 2,366,235 2,459,932 2,572,595 3,198,934 3,180,460 3,139,268 3,139,268 2,946,481 900,903 1,199,131 787,355 798,064 929,394 $35,403,628 $35,862,621 $36,977,467 $37,076,427 $37,983,302 $650,000 $0 $0 $0 $0 103, 800 109, 800 115, 800 115, 800 115, 800 0 0 162, 000 162, 000 168,064 0 0 0 758,158 0 $753,800 $109,800 $277,800 $1,035,958 $283,864 $36,157,428 $35,972,421 $37,255,267 $38,112,385 $38,267,166 $94,824 $97,703 $134,755 $135,948 $136,504 490,731 544,508 558,180 559,230 554,578 442,549 463,515 520,693 596,684 533,220 424, 995 414, 502 483, 277 459, 270 506, 687 337,223 216,937 350,000 350,000 350,000 111, 860 128, 885 119, 940 116, 940 123, 521 703,261 716,064 817,447 802,705 853,694 322,833 323,183 373,443 325,932 386,779 1,050,358 1,039,861 1,235,754 1,243,366 1,256,827 832, 928 919, 240 1, 033, 506 1, 046, 607 1, 046, 918 89, 241 116, 058 145, 097 145, 097 166, 836 1,411,958 1,491,544 1,927,880 1,910,448 1,933,659 1,239,857 1,292,467 1,554,028 1,725,952 1,606,297 2, 816,188 3, 272, 808 3, 633, 041 3, 667,183 3, 591, 051 2,232,305 2,358,083 2,627,397 2,663,143 2,771,201 8, 793, 276 9, 533, 326 10, 385, 846 10, 587, 387 10, 831, 427 8,138, 663 8, 617, 004 8, 925, 086 9, 230, 966 9, 364,937 629,196 460,656 628,288 628,288 641,893 1,112,124 1,318,142 1,104,647 1,389,330 1,221,976 $31,274,370 $33,324,486 $36,558,305 $37,584,476 $37,878,005 Reserves & Other Expenditures Reserves $2,668,800 $2,494,099 $165,800 $315,800 $415,800 Golf Course Equipment Replacement 0 0 162,000 162,000 168,064 Market Adjustment 0 0 305,961 0 188,634 Legal Settlement 691,170 0 0 0 0 Sub-Total Reserves and Other $3,359,970 $2,494,099 $633,761 $477,800 $772,498 Proposed New Programs/Services ($424,328) TOTAL EXPENDITURES $34,634,340 $35,818,585 $37,192,066 $38,062,276 $38,226,175 BALANCE $1,523,088 $153,836 $63,201 $50,109 $40,991 FISCAL YEAR 2008-2009 SCHEDULE 2 -SUMMARY OF REVENUES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006107 FY 2007/08 FY 2007/08 FY 2008109 TAXES Current Property Taxes $11,140,155 $11,593,034 $12,595,403 $12,595,403 13,563,627 Delinquent Property Taxes 155,782 171,981 150,000 160,000 150,000 Penalty and Interest 158,295 148,051 115,000 130,000 115,000 Franchise Fees 3,855,170 3,856,234 3,516,000 3,604,491 3,669,722 Utility Fund Franchise Taxes 705,119 594,207 775,818 671,271 727,285 Sales Taxes 8,095,474 8,568,080 8,788,488 8,788,488 9,008,200 Mixed Beverages 123,355 129,860 130,000 130,000 130,000 Payment in Lieu of Taxes 344,779 357,847 423,750 423,750 444,938 Sub-Total $24,578,129 $25,419,294 $26,494,459 $26,503,403 $27,808,772 FINES AND FORFEITURES Municipal Court Fines $1,722,444 $1,720,312 $2,210,000 $1,748,410 $1,775,410 Library Fines 67,763 81,864 80,000 75,000 80,000 Warrant & Arrest Fees 274,970 262,011 280,000 234,000 234,000 Sub-Total $2,065,177 $2,064,187 $2,570,000 $2,057,410 $2,089,410 LICENSES AND PERMITS Building Permits $1,198,237 $789,607 $740,000 $1,090,000 $740,000 Electrical Permits 105,253 61,861 55,000 53,000 50,000 Plumbing Permits 121,598 82,901 80,000 72,000 70,000 Mechanical Permits 87,483 89,050 65,000 69,500 65,000 Gas Drilling Permits 5,000 27,673 35,000 35,000 20,000 Miscellaneous Permits 79,050 96,852 65,550 137,750 135,550 Apartment Inspection Fees 77,886 81,256 83,000 84,000 85,000 Curb & Drainage Insp. Fees 160,041 14,207 20,000 75,000 10,000 Re-Inspection Fees 12,123 6,522 10,000 5,000 7,500 License Fees 14,178 15,616 16,000 18,000 18,000 Contractor Registration Fees 82,142 93,101 80,000 80,000 80,000 Plan Review/Application Fee 169,508 22,358 25,000 68,000 15,000 Animal License/Adoption Fees 64,127 54,771 65,000 58,000 60,200 Animal Control Impoundment 84,787 60,176 65,000 60,000 65,000 Crematorium Revenues 13,739 4,134 15,000 7,500 8,000 Auto Impoundment Fees 18,179 14,466 15,000 13,000 15,000 Food Service Permits 102,770 101,618 103,000 103,000 102,000 Food Managers School 17,317 25,854 18,000 27,000 28,000 Fire Inspection/Alarm Fees 31,854 37,522 27,000 25,000 24,500 Publicity Fees -Recreation 36,603 37,055 37,600 37,600 37,900 Sub-Total $2,481,875 $1,716,600 $1,620,150 $2,118,350 $1,636,650 FISCAL YEAR 2008-2009 SCHEDULE 2 -SUMMARY OF REVENUES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005106 FY 2006/07 FY 2007/08 FY 2007108 FY 2008109 CHARGES FOR SERVICE Park Facility Rental $6,868 $6,913 $6,200 $7,900 $6,500 Recreation Center Rental 13,394 16,055 13,000 16,500 16,000 Ambulance Fees 1,198,652 1,280,842 1,373,895 1,440,515 1,550,400 Garbage Billing 232,693 236,294 232,700 232,700 233,500 Contributions 10,000 10,000 10,000 10,000 10,000 Maps & Codes 0 145 40 40 50 Recreation Fees 418,346 431,262 422,450 438,777 445,445 Cultural Arts 6,239 6,887 7,800 7,800 8,200 Athletic Revenue 116,393 111,901 121,650 125,050 127,000 Recreation Special Events 16,933 16,812 17,500 17,650 8,500 Planning & Zoning Fees 35,246 36,325 32,000 25,000 31,000 Sale of Accident Reports 24,778 24,899 24,000 28,000 25,000 Vital Statistics 91,494 97,741 90,000 92,000 95,000 Mowing 7, 574 6, 873 15, 000 18, 000 16, 000 Video Services & Sales 0 0 0 0 0 Sub-Total $2,178,610 $2,282,949 $2,366,235 $2,459,932 $2,572,595 INTERGOVERNMENTAL Indirect Costs: General CIP $155,000 $155,000 $155,000 $155,000 $212,750 Utility Fund 1,347,435 1,414,807 1,485,547 1,485,547 1,559,824 Park & Rec Facilities Dev. Corp. 261,269 274,332 288,049 288,049 302,451 Crime Control District 300,000 200,000 200,000 200,000 100,000 Aquatic Park Fund 97,426 102,297 107,412 107,412 112,783 Direct Costs: General Fund Police Salaries 1,037,804 934,024 803,260 803,260 658,673 Gas Development Fund 0 100,000 100,000 100,000 0 Sub-Total $3,198,934 $3,180,460 $3,139,268 $3,139,268 $2,946,481 MISCELLANEOUS Interest Income $573,854 $800,412 $478,185 $460,789 $590,254 Sale of City Property 2,391 19,268 0 15,000 15,000 Grant Proceeds-Grim. Justice 22,080 424 15,000 15,000 15,000 Grant Proceeds-CDBG 21,951 10,086 25,000 25,000 25,000 Overtime Reimbursements 14,728 10,516 5,000 7,000 5,000 Tax Attorney Fees 63,634 68,791 55,000 65,000 55,000 Other Income 58,661 22,753 37,170 38,275 37,400 General CIP 0 102,376 0 0 0 SRO Reimbursement (BISD) 143,604 164,505 172,000 172,000 186,740 Sub-Total $900,903 $1,199,131 $787,355 $798,064 $929,394 APPROPRIATION -FUND BALANCE Legal Settlement $650,000 $0 $0 $0 $0 Insurance Reserve 103,800 109,800 115,800 115,800 115,800 Golf Course Equipment Loan 0 0 162,000 162,000 168,064 Previous Year Encumbrances 0 0 0 758,158 0 $753,800 $109,800 $277,800 $1,035,958 $283,864 TOTAL REVENUES $36,157,428 $35,972,421 $37,255,267 $38,112,385 $38,267,166 FISCAL YEAR 2008-2009 SCHEDULE 3 -SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 City Council $94,824 City Manager $490,731 Communications Public Information $181,675 Citicable 260,874 Total Communications $442,549 City Secretary City Secretary $221,689 Record Management 203,306 Total City Secretary $424,995 Legal $337,223 Human Resources $111,860 Finance Accounting & Administration $474,088 Purchasing 229,173 Total Finance $703,261 Budget & Research Budget $94,042 Tax 194, 928 Internal Audit 33,863 Total Budget & Research $322,833 Municipal Court Administration/Prosecution $309,416 Court Records 307,336 Warrants 294,954 Teen Court 59,516 Judicial 79,136 Total Municipal Court $1,050,358 Planning and Development Administration $54, 940 Inspections 524,349 Planning 253,639 Total Planning and Development $832,928 Economic Development $89,241 Library General Services $148,453 Public Services 659,147 Technical Services 604,358 Total Library $1,411,958 $97, 703 $544, 508 $182, 744 280, 771 $463,515 $221,426 193, 076 $414, 502 $216,937 $128,885 $491,704 224, 360 $716,064 $91,605 198,500 33,078 $323,183 $284,246 313,841 305,174 52, 933 83,667 $1, 039, 861 $75,676 600,830 242, 734 $919,240 $116,058 $187, 550 667,415 636, 579 $1,491,544 $134, 755 $558,180 $214,336 306, 357 $520,693 $277,722 205, 555 $483,277 $350,000 $119,940 $591, 569 225,878 $817,447 $99,873 226,038 47, 532 $373,443 $325,102 422, 523 329, 003 68,781 90, 345 $1,235,754 $78,453 650, 782 304, 271 $1,033,506 $145, 097 $266, 384 886,426 775,070 $1,927,880 $135,948 $559,230 $214,516 382,168 $596,684 $252, 222 207,048 $459, 270 $350, 000 $116,940 $576, 822 225,883 $802,705 $73,097 224,157 28,678 $325,932 $340,598 412,408 333,234 67,781 89, 345 $1, 243, 366 $78,453 663,841 304, 313 $1, 046, 607 $145, 097 $266,517 875, 999 767,932 $1, 910,448 $136,504 $554, 578 $221,289 311,931 $533,220 $288, 943 217, 744 $506,687 $350,000 $123, 521 $612,183 241,511 $853,694 $91,352 245, 993 49,434 $386,779 $319,203 433,491 346,507 64, 802 92,824 $1,256,827 $81,911 656, 842 308,165 $1,046,918 $166, 836 $220,193 876, 657 836,809 $1,933,659 FISCAL YEAR 2008-2009 SCHEDULE 3 -SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008109 Neighborhood Services Neighborhood Resources $258,313 $274,107 $293,060 $299,890 $313,261 Humane Division 533,699 534,262 670,961 664,137 695,575 Consumer Health 228,321 231,101 267,686 278,861 272,772 Code Compliance 219,524 242,079 322,321 353,067 324,689 Special Programs 0 10,918 0 129,997 0 Total Neighborhood Services $1,239,857 $1,292,467 $1,554,028 $1,725,952 $1,606,297 Public Works General Services $146,595 $162,062 $163,591 $163,591 $128,393 TrafFc Control 892,989 876,312 1,062,930 1,091,723 1,028,123 Street & Drainage 1,776,604 2,234,434 2,406,520 2,411,869 2,434,535 Total Public Works $2,816,188 $3,272,808 $3,633,041 $3,667,183 $3,591,051 Park & Recreation General Services $110,747 $122,935 $145,964 $145,564 $158,786 Parks Maintenance 952,217 1,036,367 1,186,737 1,179,304 1,234,196 Recreation Services 726,515 730,069 767,166 799,119 818,408 Athletic Program Services 186,660 183,712 217,787 227,238 223,576 Senior Adult Services 148,225 154,554 166,710 168,885 181,727 Youth Outreach & Cultural 107,941 130,446 143,033 143,033 154,508 Total Park & Recreation $2,232,305 $2,358,083 $2,627,397 $2,663,143 $2,771,201 Police General Services $496,102 $648,761 $717,484 $723,453 $753,846 Administrative Services 625,849 601,230 750,951 776,832 756,302 Criminallnvestigation 1,658,525 1,866,697 1,978,420 2,025,249 2,102,886 Uniform Patrol 4,005,253 4,206,981 4,261,997 4,348,648 4,538,719 Tactical Unit 25,671 15,240 0 0 0 Technical Services 706,308 605,780 610,137 625,547 602,668 Detention Services 364,340 364,445 408,253 409,992 411,072 Property Evidence 120,095 359,322 373,989 378,959 310,164 Communications 791,133 864,798 936,642 960,329 958,158 Emergency Management 0 72 347,973 338,378 397,612 Total Police $8,793,276 $9,533,326 $10,385,846 $10,587,387 $10,831,427 Fire Department General Services $279,042 $299,295 $318,440 $326,090 $335,687 Operations 6,360,295 6,791,387 7,291,912 7,442,315 7,597,476 Emergency Medical 768,003 791,239 850,122 969,224 941,729 Fire Inspections 396,930 423,555 464,612 471,689 490,045 Emergency Management 334,393 311,528 0 21,648 0 Total Fire $8,138,663 $8,617,004 $8,925,086 $9,230,966 $9,364,937 Building Services $629,196 $460,656 $628,288 $628,288 $641,893 Non-Departmental $1,112,124 $1,318,142 $1,104,647 $1,389,330 $1,221,976 Sub-Total Departments $31,274,370 $33,324,486 $36,558,305 $37,584,476 $37,878,005 FISCAL YEAR 2008-2009 SCHEDULE 3 -SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006107 FY 2007/08 FY 2007/08 FY 2008109 Reserves & Other Expenditures Reserve for Capital Improvements $685,000 $315,819 $50,000 $50,000 $300,000 Reserve for Street Maintenance $0 $300,000 $0 $0 $0 Reserve for Rail Station Development $400,000 $300,000 $0 $0 $0 Reserve for 820 Facility Planning $500,000 $550,000 $0 $0 $0 Reserve for CCD $0 $200,000 $0 $0 $0 Reserve for Economic Dev. $0 $477,080 $0 $0 $0 Golf Course Equipment Replacement $0 $0 $162,000 $162,000 $168,064 Market Adjustment $0 $0 $305,961 $0 $188,634 Legal Settlement $691,170 $0 $0 $0 $0 Reserve for Self Insurance Fund $303,800 $109,800 $115,800 $115,800 $115,800 Reserve for Building Services Fund $100,000 $0 $0 $50,000 $0 Reserve for Equipment Srvcs Fund $480,000 $0 $0 $100,000 $0 Reserve for Information Srvcs Fund $200,000 $241,400 $0 $0 $0 Previous Year Encumbrances $0 $0 $0 $0 $0 Sub-Total Reserves and Other $3,359,970 $2,494,099 $633,761 $477,800 $772,498 Sub-Total Expenditures $34,634,340 $35,818,585 $37,192,066 $38,062,276 $38,650,503 PROPOSED NEW PROGRAMS/SERVICES Increased Street Maintenance $100,000 Appropriation of Prior Year Streets Savings (100,000) Ambulance Rate & Mileage Increase Revenue Billed (704,871) Bad Debt Expense 246,705 Billing Expense 36,653 Ambulance Treat/No Transport Revenue Billed (52,632) Bad Debt Expense 18,421 Billing Expense 2,737 Crossing Guard (Bursey at Smithfield) 6,699 Code Compliance Assistance Program 21,960 Sub-Total Proposed New Programs/Services ($424,328) TOTAL EXPENDITURES $34,634,340 $35,818,585 $37,192,066 $38,062,276 $38,226,175 BALANCE $1,523,088 $153,836 $63,201 $50,109 $40,991 FISCAL YEAR 2008-2009 SCHEDULE 4 -SUMMARY OF PROPERTY TAX REVENUE AND DISTRIBUTION NET TAXABLE VALUE: Total Appraised Value as of July 25, 2008 $ 4,016,984,859 Less Exemptions: Disabled Veteran $ (3,637,414) Over 65 $ (115,278,621) Homestead $ (316,482,847) Disabled Persons $ (9,598,910) Less: Personal Property Nominal Value Loss 0 Prorated Absolute (803) Agricultural Value Loss $ (6,462,428) Freeport Inventory Value Loss $ (278,361) Pollution Control/Prorated Absolute $ (238,634) Total Reduction to Values ($451,978,018) Add: Estimated Minimum ARB protested values $ 175,694,936 Incomplete Property $ 18,783,354 NET TAXABLE VALUE $3,759,485,131 ESTIMATED PROPERTY TAX COLLECTIONS: Net Taxable Value $3,759,485,131 Proposed Tax Rate per $100 Valuation $0.57 Estimated Total Tax Levy at 100% Collection $21,429,065 Less Estimated 1% for Uncollectables (214,291) Less TIF Transfer (1,329,060) Less Debt Service Transfer (6,322,088) TOTAL ESTIMATED PROPERTY TAX COLLECTIONS(Operations) 99% $13,563,627 of Total Tax Rate TAX RATE DISTRIBUTION SCHEDULE: Tax Rate Distribution General Fund -Maintenance & Operations 59.4% $0.338753 Debt Service Fund and TIFs 40.6% $0.231247 TOTAL DISTRIBUTION OF TAX RATE 100% $0.57000 DISTRIBUTION OF ESTIMATED TAX REVENUE: Transfer to Debt Service Fund General Fund -Maintenance & Operations TOTAL ESTIMATED TAX REVENUE 100% Collection 7,651,148 13,777,917 Projected 7,651,148 13,563,627 $21, 429, 065 $21, 214, 775 FISCAL YEAR 2008-2009 SCHEDULE 5 -SUMMARY OF REVENUES AND EXPENDITURES GENERAL DEBT SERVICE FUND Beginning Balance ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET $1, 726, 095 $2, 088, 332 $2, 245, 390 $2, 383,141 $2, 856, 237 General Debt Service Taxes $6,679,223 $6,750,417 $6,598,877 $6,598,877 $6,322,088 T I F # 1 and #2 Taxes 294, 208 1, 008, 013 976,110 970, 497 1, 329, 060 Sub-Total Ad Valorem Taxes $6,973,431 $7,758,430 $7,574,987 $7,569,374 $7,651,148 Transfer In From: Drainage Utility $714,151 $707,186 $698,766 $698,766 $354,198 Park & Rec. Facilities Dev. Corp. 206,486 191,918 189,911 189,911 180,381 Miscellaneous 0 0 0 0 0 Information Services Fund 0 0 0 0 0 Equipment Services Fund 98,353 270,427 312,893 312,893 0 Building Services Fund 43,808 40,704 50,327 50,327 0 Bond Refunding Proceeds 8,245,000 5,085,000 0 0 0 Interest Income 130,108 146,223 50,000 50,000 0 City of Watauga, CIP Participation 19,785 19,785 19,785 19,785 19,785 TOTAL REVENUES $16,431,122 $14,219,673 $8,896,669 $8,891,056 $8,205,512 EXPENDITURES Existing Bonds & C.O.'s $7,468,932 $7,790,697 $7,176,713 $7,176,713 $7,110,846 TIF #1 and #2 Funding 294,208 1,008,013 976,110 970,497 1,329,060 Issuance Costs/Paying Agent Fees 205,579 50,367 285,150 270,750 275,000 Bond Refunding Escrow Payment 8,100,166 5,075,787 0 0 0 TOTAL EXPENDITURES $16,068,885 $13,924,864 $8,437,973 $8,417,960 $8,714,906 NET REVENUE $362,237 $294,809 $458,696 $473,096 ($509,394) ENDING BALANCE $2,088,332 $2,383,141 $2,704,086 $2,856,237 $2,346,843 FISCAL YEAR 2008-2009 SCHEDULE 6 -SUMMARY OF REVENUES AND EXPENDITURES PARK AND RECREATION FACILITIES DEVELOPMENT FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005106 FY 2006/07 FY 2007108 FY 2007/08 FY 2008109 REVENUES Sales Tax $4, 047, 737 $4, 284, 040 $4, 494, 244 $4, 494, 244 $4, 606, 600 Interest Income 131,246 148,881 179,920 185,980 155,000 Youth Assn. Maintenance Fees 23,896 42,777 32,000 35,000 35,500 Tennis Center Revenue 321,373 315,998 308,500 312,750 316,200 Transfer in from Aquatic Park Fund 0 0 60,000 60,000 60,000 Transfer in from Gas Development Fund 0 0 400,000 400,000 0 Park Impact Fees 170, 506 111,121 125, 000 125, 000 141,250 Appropriation -Fund Balance 0 0 0 0 600,000 Appropriation - PY Encumbrances 0 0 0 0 0 TOTAL REVENUES $4,694,758 $4,902,817 $5,599,664 $5,612,974 $5,914,550 EXPENDITURES Operating Park Facilities Development Admin. $422,057 $464,474 $544,458 $545,298 $580,475 Parks & Public Grounds 1,235,698 1,325,014 1,513,045 1,543,737 1,602,937 Tennis Center Operations 479,457 485,187 542,726 554,351 591,709 Sub-Total $2,137,212 $2,274,675 $2,600,229 $2,643,386 $2,775,121 Other & Reserves Debt Service -Revenue Bonds $1,002,823 $1,138,083 $1,132,213 $1,132,213 $1,124,300 Debt Service -CO's 206,485 191,918 189,912 189,912 180,381 Indirect Costs 261,269 274,332 288,049 288,049 302,451 Non-Departmental 13,450 14,181 12,744 12,744 14,020 Reserve for Economic Development 193,056 210,263 224,712 224,712 230,030 Recreation Center Capital Project 0 0 500,000 500,000 600,000 Reserve for Capital Projects 880,463 799,365 651,805 621,958 688,247 Sub-Total $2,557,546 $2,628,142 $2,999,435 $2,969,588 $3,139,429 TOTAL EXPENDITURES $4,694,758 $4,902,817 $5,599,664 $5,612,974 $5,914,550 BALANCE $0 $0 $0 $0 $0 ~'/ lE. r.~.~, 1_ \_f .~, \_~ 1~.r..~.~~~. _ ~Y .~,L _'fa~ _..~ ~.. A. ...7~...i 6. y Honorable Mayor and Members of the City Council Crime Control & Prevention District Board of Directors City of North Richland Hills North Richland Hills, Texas August 1, 2008 The Crime Control and Prevention District was originally approved by voters in February, 1996 to provide improved police services to the citizens of North Richland Hills. It was initially approved for a period of five years, funded with ahalf-cent sales tax and overseen by a Board of Directors comprised of the seven City Council members. On May 5, 2001, a continuation referendum was held, re-authorizing the District for an additional 10 years. Goals and Strategies of the District include: 1. Reduce response time to calls for service; 2. Reduce occurrence of call stacking; 3. Increase officer visibility; 4. Enhance crime-fighting tools using new equipment and updated technology; 5. Reduce gang-related activity. To accomplish these goals the following resources were provided: 1. Addition of sworn and support personnel; 2. Upgrade of compensation plan to retain and attract highly qualified police personnel; 3. New vehicles, computers and other equipment; 4. Necessary training and other operating costs. When the District was implemented, the District Board and the City Council indicated that future increases in operating expenses for the Police Department and any additional programs or services to that department would be paid for by the Crime Control District so that improved police services would not adversely impact the property tax rate. In July 1996, the District began collecting sales tax. At that time, a Transition Fund was established to continue improved police services in the event the continuation referendum did not pass in 2001. The City continues to finance this as a reserve in case the District is not reauthorized in 2011. The estimated reserve as of September 30, 2008, will be approximately $853,452. 1"'.C~. fox 32009 ~ North F~ic~l~n~! Hills, T~;xas 76182-0600 7301 No~hest ~.c~o~ 820 * X817) 427-6000 * Fix (8171427-6106 ACCOMPLISHMENTS Since July 1996, many positive results have been realized due to the establishment of the District. • Average response times for Priority 1 calls have decreased by 3 minutes and 45 seconds from 1996 through June 30, 2008. • The Department responded to 44,286 calls for service in FY 2006/2007 as compared to 43,667 calls for service in FY 1995/1996, a 1.4% increase. • Total traffic violations issued were up by 2.0% from 1996 to 2007. • Total arrests in 2007 were up 21.9 % from 1996. • Clearance rate for Part I crimes combined is 40.7% through 2007. RESOURCES ADDED TO THE POLICE DEPARTMENT TO DATE Because of the Crime Control District, the City has been able to add resources to the Police Department since 1996 in the following areas: 1. $26.6 million to pay for salaries and benefits for 49 new police personnel, including 27 police officers, 2 detectives, 19 support personnel and 1 part time school crossing guard, and an upgraded compensation plan for all sworn police personnel. 2. Funding for a new $1.8 million Public Safety Computer System ($1.1 million funded by C.C.D.). 3. Approximately $300,000 for other capital projects such as renovations of the dispatch area and improvements to the Police Property and Evidence Project. 4. Funding in the amount of $1.6 million for 16 new vehicles for patrol and CID, 12 refurbished vehicles and 14 replacement vehicles. 5. Funding of $163,000 for radios for the fleet and portable radios for officers. Laos/Zao~ PROPOSED BUDGET The FY 2008/2009 Crime Control and Prevention District budget provides for the continuation of the upgraded compensation plan, supplies, training and equipment maintenance for 49 police personnel including 27 police officers, 2 detectives, 19 support staff and 1 part-time school crossing guard. Total proposed expenditures of approximately $4.9 million include $3.7 million for personnel, $650,000 for General Fund police compensation plan enhancements, $450,000 for equipment and $100,000 for indirect costs to the General Fund. The FY 2008/2009 CCD budget also proposes to continue the support for Alliance for Children and the Special Investigations Unit program. Transition Fund The CCD Transition Fund was established in 1996 as a contingency reserve in the event that the Crime Control and Prevention District was not reauthorized by the voters at the end of the referendum period. The citizens of North Richland Hills reaffirmed the CCD in 2001 for ten years. The next election will occur in May 2011. The Council, city management and staff have remained committed to the transition reserve policy over the years. In recent years sales tax revenues, which are 98% of all CCD revenues, have declined. In FY 2000/2001, the City Council established a policy that the Transition Fund not be used to supplement on-going operations, but may be borrowed from time to time to pay for one-time purchases of capital items. Due to declining sales tax revenues, we have found it necessary to borrow from transition reserves to pay for operations. This will be the case again in the proposed FY 2008/2009 budget. Through prudent management of budgeted expenditures, the loan from the Transition Fund is being revised down from $766,304 in the adopted FY 2007/2008 CCD budget to $709,491 in the Revised FY 2007/2008 CCD budget. The planned loan from the Transition Fund for FY 2008/2009 is $663,089. This is accomplished by the planned lowering of General Fund police compensation plan enhancements and indirect cost payments to the General Fund. General Fund police compensation plan enhancements have been reduced from $803,260 in FY 2007/2008 to a proposed $658,673 in FY 2008/2009. Indirect cost payments to the General Fund have been reduced from $200,000 in FY 2007/2008 to a proposed $100,000 in FY 2008/2009. From FY 2003/2004 through proposed FY 2008/2009 these payments to General Fund have been reduced by nearly $750,000. Contingency and Referendum Planning As we approach the May 2011 referendum, management and staff are beginning to project revenues and expenditures into the future. The next two budget years will be very important to ensure a smooth transition from the current referendum to the next election. Management and staff are working to insure the integrity of the plan of services as well as the financing plan. We will bring these plans forward to Council in the near future. SUMMARY Many accomplishments have been achieved with the addition of the half-cent sales tax for the Crime Control and Prevention District. Improvements have been made in handling criminal and other police service increases. Positive impacts have been made in response times, and reductions of burglaries and auto thefts have resulted. A state of the art computer system has been acquired and installed to provide officers the ability to respond, conduct investigations and communications, and retrieve critical information in amore timely and efficient manner. A significant improvement in our compensation plan was provided through this funding that has not only helped retain quality police professionals, but also to attract quality personnel. We continue to monitor cash flows and plan for the future. We estimate sales tax numbers to be up about 2.5% in the coming year, and will monitor collections closely adjusting the CCD budget as appropriate. For the coming year, the following ongoing efforts to continue originally stated goals are recommended: Comprehensive Evaluation of Crime Control District Mission, Accomplishments, Operations and Programs; Planning for Future Needs; Fleet Assessment. We appreciate the opportunity that the voters have given us to continue this Crime Control and Prevention District program. You have entrusted us to be good stewards of these funds, and use them in the most cost effective manner to accomplish the Goals of the City Council. We look forward to working with you in the coming years to make this the most successful program possible. Respectfully submitted, ~~~ Larry J. Cunningham City Manager FISCAL YEAR 2008-2009 SCHEDULE 7 -SUMMARY OF REVENUES AND EXPENDITURES CRIME CONTROL AND PREVENTION DISTRICT ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET CV •fAAG/AC CV ~fAAClA7 CV 7AA7/A4 CV 9AA7/A4 CV 9AAQ/AD Sales Tax $3,791,163 $4,013,162 $4,122,044 $4,122,044 $4,225,095 Interest Income 108,717 87,156 58,402 23,935 19,134 Other Income 13,267 0 0 0 0 Transfer from General Fund 0 200,000 0 0 0 Appropriation - PY Revenues 0 0 0 0 0 Previous Year Encumbrances 0 0 0 80,157 0 Loan from Transition Fund 693,316 264,099 766,304 709,491 663,089 TOTAL REVENUES $4,606,463 $4,564,418 $4,946,750 $4,935,627 $4,907,318 EXPENDITURES Operating Administration Administrative Services Investigations Uniform Patrol Technical Services Detention Services Property Evidence Communications Transfer to Information Services Transfer to Equipment Services Sub-Total Other & Reserves Indirect Costs Police Dept. Salary Increases-General Child Advocacy Center Other Market Adjustment Sub-Total TOTAL EXPENDITURES $7,222 $74,949 $68,082 $73,082 $69,877 539,169 487,316 522,464 535,660 549,876 281,778 302,983 317,941 323,959 334,001 1,748,630 1,806,160 1,981,033 2,053,423 2,334,642 212,949 231,970 306,295 267,394 99,893 294,005 315,860 337,456 338,058 355,239 , 54,475 54,444 73,685 149,533 85,086 _ 11,795 11,133 90,674 90,674 161,219 60,000 60,000 60,000 43,718 60,000 0 25,000 75,000 0 0 $3,210,023 $3,369,815 $3,832,630 $3,875,501 $4,049,833 $300,000 $200,000 $200,000 $200,000 $100,000 1,037,804 934,024 803,260 803,260 658,673 16, 590 16, 590 11, 725 11, 725 11, 725 42, 046 43, 989 45,141 45,141 49, 656 0 0 53,994 0 37,431 $1,396,440 $1,194,603 $1,114,120 $1,060,126 $857,485 $4,606,463 $4,564,418 $4,946,750 $4,935,627 $4,907,318 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2008-2009 SCHEDULE 8 -SUMMARY OF REVENUES AND EXPENDITURES PROMOTIONAL FUND REVENUES Occupancy Tax Proceeds Interest Income Other Income Appropriation of Fund Balance Prior Year Encumbrances TOTAL REVENUES EXPENDITURES Economic Development Market Adjustment Non-Departmental Sub-Total TOTAL EXPENDITURES BALANCE ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 $199,850 $284,099 $205,000 $205,000 $205,000 5, 891 10, 427 4, 460 7, 493 7, 686 40 0 0 0 0 0 0 23,641 20,608 15,881 0 0 0 8, 000 0 $205,781 $294,526 $233,101 $241,101 $228,567 $183, 098 $195, 732 $232, 896 $240, 896 $228, 341 0 0 0 0 0 196 201 205 205 226 $183, 294 $195, 933 $233,101 $241,101 $228, 567 $183,294 $195,933 $233,101 $241,101 $228,567 $22,487 $98,593 $0 $0 $0 FISCAL YEAR 2008-2009 SCHEDULE 9 -SUMMARY OF REVENUES AND EXPENDITURES DONATIONS FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 REVENUES Contributions NRH Water Bills $92,351 $89,726 $86,000 $82,000 $89,000 Shelter Fund 26,357 10,455 34,000 14,000 34,400 Sub Total $118,708 $100,181 $120,000 $96,000 $123,400 Donations Spay/Neuter $2,096 $5, 564 5,000 $5, 000 $5, 500 Duncan 15, 000 15, 000 15, 000 15, 000 15, 000 Teen Court 0 0 2,000 0 0 Sub Total $17, 096 $20, 564 $22, 000 $20, 000 $20, 500 Proceeds Critter Connection $482 $121 $1,000 $0 $0 Library Book Sale 414 7,134 2,500 2,500 2,500 Coffee Bar Proceeds 1,982 2,145 0 936 0 Sub Total $2,878 9,400 $3,500 $3,436 $2,500 Other Interest Income $21,491 $30,122 16,300 $19,561 $20,406 Other Income 42,206 43,398 61,050 32,050 71,000 Sub Total $63,697 $73,520 $77,350 $51,611 $91,406 Appropriation from Fund Balance Animal Shelter Capital Project $0 $0 $0 $0 $0 Night of Holiday Magic 0 0 0 0 0 Previous Year Encumbrances 0 0 0 4,288 0 Sub Total $0 $0 $0 $4,288 $0 TOTAL REVENUES $202,379 $203,665 $222,850 $175,335 $237,806 EXPENDITURES Library -Book Collection $50,116 $50,899 $40,000 $41,788 $40,000 Neighborhood Services Code Enforcement NIP Program 676 2,326 0 0 10,000 Critter Connection 4,726 3,651 7,653 7,653 16,874 Keep NRH Beautiful 12,636 8,534 15,000 17,500 15,000 Animal Shelter Capital Project 0 0 0 0 0 Municipal Court -Teen Court 2,000 2,000 2,000 2,000 0 Parks -Special Events and Arts 37,879 44,322 76,500 76,500 83,500 Sub-Total $108,033 111,732 141,153 $145,441 $165,374 PROPOSED NEW PROGRAMS /SERVI CES Night of Holiday Magic Relocation $64,900 Appropriation of Fund Balance: Night of Holiday Magic (64,900) Sub-Total Proposed New Programs /Services $0 TOTAL EXPENDITURES $108,033 $111,732 $141,153 $145,441 $165,374 BALANCE $94,346 $91,933 $81,697 $29,894 $72,432 FISCAL YEAR 2008-2009 SCHEDULE 10 -SUMMARY OF REVENUES AND EXPENDITURES SPECIAL INVESTIGATION FUND i ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET REVENUES Federal Forfeited Funds State Forfeited Funds Municipal Forfeitures MDT Reimbursements AFIS Reimbursements Radio System Reimbursements Interest Income Other Income Appropriation - PY Encumbrances Appropriation of Fund Balance TOTAL REVENUES EXPENDITURES Forfeited Funds MDT Maintenance & Equipment Radio Maintenance AFIS Maintenance & Equipment Locally Seized Funds Loan Payment Other TOTAL EXPENDITURES BALANCE $50, 915 $16, 700 $20, 000 $80, 000 $30, 000 33, 512 57, 452 20, 000 10, 000 20, 000 2, 326 296 1, 000 1, 000 1, 000 21,919 0 0 0 0 10,641 32,669 12,128 12,128 0 280,647 357,886 325,000 352,431 353,000 19, 010 28, 580 15, 665 14, 535 14, 486 26,793 1, 883 0 3,400 0 0 0 0 3, 074 0 0 0 0 65, 263 208, 535 $445,763 $495,466 $393,793 $541,831 $627,021 $21, 526 $112, 244 $32, 000 $177, 805 $263, 800 42,886 17,499 0 0 0 286, 309 328, 363 325, 000 352, 431 353, 000 9,030 32,423 9,421 9,595 9,421 0 2, 650 800 2, 000 800 0 0 0 0 0 0 0 0 0 0 $359, 751 $493,179 $367, 221 $541, 831 $627, 021 $86,012 $2,287 $26,572 $0 $0 FISCAL YEAR 2008-2009 SCHEDULE 11 -SUMMARY OF REVENUES AND EXPENDIT URES DRAINAGE UTILITY FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 Beginning Balance $338,929 $442,755 $575,618 $575,618 $713,124 REVENUES Drainage Fees $806,414 $819,370 $806,450 $819,500 $820,000 Interest Income 13,491 22,450 11,515 16,772 17,736 TOTAL REVENUES $819,905 $841,820 $817,965 $836,272 $837,736 EXPENDITURES Debt Service $714,151 $707,186 $698,766 $698,766 $354,198 Other Expenditures 1,927 1,771 0 0 0 TOTAL EXPENDITURES $716,078 $708,957 $698,766 $698,766 $354,198 BALANCE $442,755 $575,618 $694,817 $713,124 $1,196,662 FISCAL YEAR 2008-2009 SCHEDULE 12 -SUMMARY OF REVENUES AND EXPENDITURES GAS DEVELOPMENT FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET Beginning Balance REVENUES Bonuses General Fund Purposes Park Development Purposes Economic Development Purposes Golf Course Purposes Royalties/Overrides General Fund Purposes Park Development Purposes Interest Income TOTAL REVENUES EXPENDITURES Transfer to General Fund Operations Transfer to GF-Prev. Street Mainten. Transfer to Golf Course Fund Club House Renovations Equipment Replacement Transfer to Park Development Fund Transfer to Economic Dev. Fund Transfer to Utility Fund Other Expenditures TOTAL EXPENDITURES BALANCE ~U ~/55,4:~~ ~E~lb,S'15 ~545,U5/ ~5,///,51y $323, 874 $185, 787 $0 $3, 537, 506 $400, 000 333,689 11,468 0 1,402,150 0 116,040 3,440 0 871,704 0 0 0 0 0 400, 000 0 0 100, 000 0 50, 000 0 0 100,000 0 50,000 0 38, 528 15, 000 30, 000 153, 707 $773, 603 $239,223 $215, 000 $5, 841, 360 $1,053, 707 $0 $100,000 $0 $0 $0 0 200, 000 100, 000 100, 000 0 0 120,200 0 0 0 0 0 0 0 0 0 0 400, 000 400, 000 0 0 0 100, 000 100, 000 0 0 0 0 0 0 18,170 29, 399 8, 888 8, 888 0 $18,170 $449, 599 $608, 888 $608, 888 $0 $755,433 $545,057 $222,627 $5,777,529 $6,831,236 FISCAL YEAR 2008-2009 SCHEDULE 13 -SUMMARY OF REVENUES AND EXPENDITURES TRAFFIC SAFETY FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 Beginning Balance $0 $0 $42,365 $1,816 $840 REVENUES Gross Fne Revenues $0 $24,272 $1,512,000 $775,000 $864,000 Less: Allowable Expenditures Contractor Payments $0 ($20,219) ($525,960) ($450,000) ($548,748) Program Administration 0 (2,237) (43,522) ($55,152) ($41,113) Total Allowable Expenditures $0 ($22,456) ($569,482) ($505,152) ($589,861) NET FINE REVENUES $0 $1,816 $942,518 $269,848 $274,139 Less: State Share (50%) $0 $0 ($471,259) ($134,924) ($137,070) NET FINE REVENUES TO CITY $0 $1,816 $471,259 $134,924 $137,070 ADDITIONAL REVENUES Interest Income $0 $0 $47,126 $0 $0 Other Income 0 0 0 0 0 TOTAL RESOURCES $0 $1,816 $560,750 $136,740 $137,910 EXPENDITURES Traffic Enforcement $0 $0 $99,531 $75,900 $10,730 Traffic Signal Improvement: 0 0 285,000 60,000 100,000 Miscellaneous 0 0 0 0 0 Sub-Total $0 $0 $384,531 $135,900 $110,730 TOTAL EXPENDITURES $0 $0 $384,531 $135,900 $110,730 BALANCE $0 $1,816 $176,219 $840 $27,180 ~. ~H ~Y ~ -~r ~~ ~_1 _~~' ~ 0..J _~.r.. ,. ~..~ ~ k~..i.L 91. .A..~ . ~[..l...i ~~...f Honorable Mayor and Members of the City Council City of North Richland Hills North Richland Hills, Texas August 1, 2008 People all across the country are feeling the pressures of a dwindling national economy. With soaring energy and food costs, a deepening housing crisis and more job losses, there is some cause for concern. The good news, however, is that North Texas has not been impacted to the same extent as other parts of the country. The following indictors show that our local economy is still doing fairly well: • Gas prices have hit all time highs; however, North Richland Hills is approximately 7¢ below the state average and 21¢ below the national average for gasoline. • The unemployment rate is at 3.4%, which is below the rate recorded at the same time last year. It is also well below both the state's rate of 4.3% and country's rate of 5.3%. • With 19,644 homes located in North Richland Hills presently, less than 1 of the City's homes are under foreclosure. • At mid-year, the City has had 50 new businesses open their doors. This is on track to match or exceed last year's new business number. • The City has also seen an increase in the number of commercial construction permits. As of May, 38 permits had been issued. In the same time period last year, the City had issued only 26 permits. • The North Central Texas Council of Governments released its new population figure for North Richland Hills of 65,750, which is an increase of 2.65% over last year's number of 64,050. As we prepare for Fiscal Year 2008/2009, we are keeping a close eye on the national economy as well as our local economic indicators. Like most consumers we will have to tighten our belts in the coming year to help offset increasing costs, but I am pleased to report that we will continue to provide the high level of services that our citizens have come to expect. Through this transmittal letter, we are providing much of the same data as in the one for General Governmental Funds. However, we are separating the Proprietary Funds Budgets to hopefully make it clear to the public and Council the differences in fund sources as outlined by the Government Finance Officers Association (GFOA). Therefore this letter and the budgetary information is slightly different from the General Governmental Funds letter and information. The 2007 Citizens Survey conducted for the City by the University of North Texas showed that our residents value the quality of life in North Richland Hills (94% of ~'.O. Box 82059 ~ North Richlar~c~ Nills, Texas ~~18-~6~~ 7801 Northeast Loop 820 * X81 i) 427-5000 * Fax (~~ r) 42 i-~~ ~~ respondents answered the quality of life was good or excellent). Money Magazine ranked us as one of the 100 Best Places to Live in the United States in 2006. And, various city programs and departments continue to receive awards from national, state and local groups. We believe these accolades are great, but we are not resting on our laurels. "Today's Vision is Tomorrow's Reality" and we will continue in the coming fiscal year to provide award winning services and to successfully implement the City Council's vision for the future. Preparing the proposed budget for Fiscal Year 2008/2009 has not been easy. We have asked all of our City Departments to find ways to work more efficiently and reduce spending to help offset the escalating costs of fuel, building materials, utilities and petroleum based products. We also propose delaying market adjustments until April 2009 and phasing in an ambulance rate increase over 4 years. These and other steps, which will be outlined later in this document, will help insure that North Richland Hills continues to maintain a sound budget, despite the national economic slump. As mentioned earlier, our local economy has not been impacted by the economic downturn to the same extent as other parts of the country. We are encouraged that our community maintains a strong property tax base and continues to experience new construction and business growth. After seeing the reoccupation of several vacant big box retail stores by 24 Hour Fitness, Burlington Coat Factory, Ross Dress For Less and Let's Talk Call Center last year, the City is now seeing new small businesses move into already constructed space and established small businesses rededicate themselves to North Richland Hills by improving their facades and landscaping and removing non-conforming signs. While some are doing this through the Business Improvement and Growth (BIG) program, others have initiated these changes on their own. This is exactly what BIG is all about, seeding an area and promoting the maintenance of structures in our established corridors. By reoccupying vacant store fronts these retailers and commercial businesses show that they have confidence in North Richland Hills and the market the City provides. Further, we continue to execute leasing agreements for gas on city owned land which brings a different type of industry to our City. The City has also become the headquarters of airplane bushing manufacturer Fitz Manufacturing. Fitz Manufacturing chose a vacant structure in our industrial area, anchoring that area. We have also seen Birdville ISD break ground on the Richland High School reconstruction and the new Career and Technology Center. The new library opened in April 2008, and the new recreation center is moving forward with the design process. The next fiscal year will be demanding from a financial perspective and we will continue to keep a very close eye on the economy. However, we remain optimistic about the future, thanks to the visionary leadership of our Mayor and City Council and their strategic Goals and Objectives. We are confident we can continue to provide award winning programs and excellent services, as well as a few service enhancements, with the resources we have available. Vision: Goals and Values The North Richland Hills City Council is dedicated to making our community the City of Choice for all citizens to live, work, and play. To accomplish this mission, the Council has adopted a strategic plan for the future and reviews and updates it biannually to respond to changing needs in our community. The strategic plan provides a clear vision for the City's future. It is the roadmap that directs our City toward positive change and serves as the policy direction for City management. In November 2006, Council met to review and update its Goals. Two goals were added (Targeted Economic Development and Local and Regional Leadership) and the previous six were updated to reflect North Richland Hills and its place in the community. Council will meet to review its goals again in January 2009. This goals session will make sure Staff is still on track accomplishing Council's vision for the City. The Council Goals also serve as a guide for developing the City's budget. All plans and projects for the coming year have been evaluated and prioritized based on meeting those goals. This is especially important given our limited resources. The goals are listed below: 1. QUALITY COMMUNITY DEVELOPMENT & REVITALIZATION -strive to plan for the development of remaining vacant property and improve the quality of older areas and infrastructure. 2. EFFICIENT EFFECTIVE TRANSPORTATION SYSTEM -strive to provide improved traffic flow and mass transit opportunities for our growing community. 3. SAFETY & SECURITY -strive to be the safest community in Tarrant County and to be prepared for potential natural and man-made disasters. 4. FINANCIAL STABILITY -strive to get the best value for taxpayer dollars and to ensure that we have the financial resources available to invest in community priorities. 5. PRESERVE POSITIVE CITY IMAGE -strive to maintain a positive City image and reputation for being a great community. 6. A SENSE OF COMMUNITY- strive to support programs and events that support our citizens and the community as a whole. This includes maintaining our parks and recreation programs at the current high level, maintaining the cultural arts program, expanding the public art program, completing construction of the 19-mile hike and bike trail system, implementing the Parks Master Plan. 7. TARGETED ECONOMIC DEVELOPMENT- strive to maintain and build our vibrant and diverse economic base. 8. LOCAL AND REGIONAL LEADERSHIP- strive to continue to build relationships among other cities and parties with similar interests, sit on committees that set the direction for our region and be proactive to influence the direction of key issues. As a supplement to these Goals, the City Council established a set of core organizational values and assigned specific meaning to each value to inspire City employees to strive toward excellence in the provision of services to our citizens. These core values are: RESPECT • Treating others in a courteous, fair and equitable manner • Valuing differences: points of view, style • Honoring the organization's chain of command • Acknowledging successes and the contribution of others • Following up with feedback SERVICE • Providing services to our community and others • Solving problems • Helping the customer to understand • Sensitive to the needs and feelings of others • Taking action, providing a timely response PRODUCTIVITY • Producing results, completing projects on time, at or under budget • Planning work activities to achieve goals • Meeting or exceeding job standards and expectations • Looking for ways to be more productive while being cost effective INTEGRITY • Honest communication • Being trustworthy • Following through on commitments • Acting with high professional, moral and ethical standards • Supporting the City of North Richland Hills goals, values and decisions RESPONSIBILITY • Being knowledgeable and skilled in your job • Holding yourself and others accountable for actions and results • Being loyal and taking ownership in the City goals, values, services and departmental work program • Taking pride in your work • Willingness to take command and initiative when appropriate INNOVATION • Looking for better ways to do your job • Willingness to learn • Being open to new ideas, new approaches • Willingness to take reasonable risks • Thinking creatively and evaluating options TEAMWORK • Participating and involving others in team efforts • Listening to and understanding the other's viewpoint • Willingness to cooperate with others and share resources • Fulfilling defined roles and responsibilities • Working and resolving differences and disagreements Our employees have truly embraced the core values established by the Council, and the quality of work performed by our Staff is a testament to that fact. The core values campaign and employee recognition program that was developed in an effort to incorporate the core values into the daily lives of our City employees continues to be a success. The program has been in place for over six years now, and is still getting a positive response. In addition, the Human Resources Department hosted the fifth employee recognition banquet this fiscal year, and recognized Penny Peterson, of the Planning and Development Department, as the 2007 Employee of the Year for the City of North Richland Hills. Accomplishments: Accountability to Citizens The following is a brief list of the items the City has accomplished in FY 2007/2008 as City Council and Staff work toward the attainment of each City goal. As is evident from this list, the Council goals do in fact guide the work plan of our City as many of the City Council's priorities were achieved or implemented this past fiscal year. Quality Community Development & Revitalization 1. Updated the Comprehensive Land Use Plan and Thoroughfare Plan incorporating Loop 820 Corridor plans and mixed use development districts around future commuter rail stations at Iron Horse and Smithfield. 2. Expanded multi-family maintenance requirements to include motels that have become long-term occupation units. 3. Adopted the 2006 International Building Code, the 2006 International Fire Code and the 2005 National Electrical Code. 4. Selected a firm to create the City's Sustainable Development Code. The Code will direct development at the future Iron Horse and Smithfield rail stations and reimage NRH Hometown. Efficient Effective Transportation System 1. Overlaid 13 streets, slurry sealed 14 streets and crack sealed 29 streets. A total of 56 streets were improved with this program, which increased our overall street rating from 80 to 81.68. 2. Began design on the final phase of Rufe Snow Drive. This is the section between Mid-Cities Boulevard and Ridgetop Drive and is approximately 5,300 feet long. This project will widen the existing five lane configuration to either six lanes with a raised median or seven lanes with a continuous left turn lane. 3. Design began on the intersection improvements planned at Davis Boulevard and Mid-Cities Boulevard. This project will consist of reconstructing the intersection with dual left turn lanes. This will provide more capacity through the intersection and relieve some of the congestion that currently exists. 4. Started design and implementation of the Signal Timing Synchronization Project for updating signal timing plans along the corridors of Boulevard 26 and Mid-Cities Boulevard. The project will optimize 27 traffic signal locations along the two routes. The new signal timing plans will be in operation by September 2008. The goal is to reduce motorist delay and decrease fuel consumption. 5. Staff and City Council participated in the Southwest to Northeast Rail Corridor Study by the Fort Worth Transportation Authority. The study included development of conceptual rail station area plans for the future Iron Horse and Smithfield rail stations. 6. Joined the Texas High Speed Rail Transportation Committee (THSRTC). THSRTC is a coalition of county and local governments, employers and universities working to build a high speed rail to connect the three most populous regions in Texas: Houston, San Antonio/Austin, and Dallas/Fort Worth. Safety and Security 1. The Fire Department worked with North Hills Hospital to give heart attack victims a higher survival rate. North Richland Hills paramedics now activate the hospital's Cath lab en route to the hospital, reducing response time from 90 minutes to less than 60 minutes. 2. The Police Department introduced a bike patrol program that puts police officers on bicycles. As a result of this modified patrol method, officers and citizens have an increased chance to interact. This promotes security by reducing fear and crime. Officers will patrol neighborhoods, targeted crime areas, and parks/trails in an attempt to curb crime and interact with the public. 3. Updated the Gas Drilling & Production Ordinance to regulate construction of gas pipelines throughout city. Passed a resolution requesting pipeline companies use city right of ways and bury lines a minimum of four feet. This lessens the impact on individual residents. 4. Public Service Officers of the Police Department now meet with homeowners and business owners that need to report delayed or low-level crimes or incidents. They will also assist with tasks that do not require a police officer's attention: abandoned vehicles, found property, minor issues, and motorist assists. By design, this program will create more time for police officers to address more serious matters. 5. The City's new Command Post will greatly help in the Police Department's ability to manage large scale crime and special events. Better management of these sorts of events creates safety for all involved. 6. The City took delivery of a 100 feet aerial platform fire truck and placed it in front line service. This new fire truck allows the City to fight multi-story and large warehouse structural fires. 7. Completed Pre-Fire Plans on every business in the city. Pre-Fire Plans show the locations of fire safety apparatuses in buildings and other information that can be used in fighting fires at that location. The program is ongoing with each plan being reviewed twice annually, once during the annual business inspections. 8. Started construction on the Starnes Elevated Water Storage Tank Rehabilitation Project. This project will help the City maintain its Superior Water Rating System and to help provide a safe and reliable water supply. 9. Completed design work on the Wastewater System Rehabilitation Project- Priority 3(EPA). Staff is starting the construction of this project, which will eliminate sanitary sewer overflows at various locations. Financial Stability 1. Issued General Obligation bonds and Certificates of Obligation in April 2008. The bonds are to be used to finance street, aquatic park and capital equipment replacements scheduled for FY 2007/2008. 2. Standard & Poor's Rating Service upgraded the City's credit rating to AA. Moody's maintained its rating of Aa3. Rating analysts praised well- managed finances, long-range planning, and the bond presentation materials as factors in the continued strong credit rating of the City. The City's solid ratings play a key role in the ability of the City to receive favorable interest rates on debt issuances. This rating places us in the top 2% in the State of Texas and the top 10% in the United States. 3. After evaluating bids from several different solid waste contractors, the City entered into a contract that would give the same level of garbage service our residents had received in the past at the lowest possible rate. 4. The City entered into an agreement with the North Texas Tollway Authority to distribute ToIlTags at City Hall as a convenience to the traveling public. ToIlTags work on any toll road in the state and save motorists time and money. 5. Replaced 23 City vehicles per the long range replacement plan using "Pay As You Go" funds, insurance from hail damage, and grant reimbursements. Eleven vehicles were replaced with lower cost, fuel efficient vehicles resulting in current budget savings and future fuel cost savings. 6. The City was recognized by the State Energy Conservation Office for reducing electrical consumption and efforts in energy conservation. The City is in compliance with the mandates of Senate Bill 5. Preserve Positive City Image 1. Produced the 8th Sounds of Spring Concert Series with 4,500 people enjoying six nights of greatest hits music at NRH2O. Sounds of Spring created an upbeat atmosphere with excellent entertainment for the families of North Richland Hills. Fireworks were displayed following the first and last show. 2. Continued the Night of Holiday Magic in December 2007. Departments and volunteers came together to enjoy the season and offer holiday activities to the citizens of North Richland Hills. There was a tree lighting, fireworks, ice sculptures, a petting zoo, ice skating, a marshmallow roast and a visit from Mr. and Mrs. Claus. About 17,000 guests enjoyed the event. 3. Planned and managed several other special events including Easter in the Park, Hoot and Howl, Companies in Action, Volunteer Appreciation Luncheon, My Part of Town Neighborhood Park Series, Autumn Night Music, TV Off, Family On and others. The Parks and Recreation Department as a whole organized and managed 83 special events in FY 2007/2008. 4. Introduced RFID in the library check in/out process. RFID uses radio tag technology to make it easy for users to use self service kiosks to check out and return books to the library. By using the kiosks, the customers can avoid lines for service. 5. Garage sale permits can now be purchased online. Residents no longer need to come to city hall to fill out and receive a permit. They can now complete the form online and print the permit from their home computers. Neighborhood garage sales were also introduced to allow organized neighborhood groups to hold joint garage sales. 6. Residents can now view the health inspection scores of North Richland Hills' 300 food service establishments online. The information is updated monthly and residents can sign up for email notification when new scores are posted. A Sense of Community 1. Adopted the 2007 Parks, Recreation and Open Space Master Plan. The master plan updated the previous plan adopted in 2000 and assessed the city's parks, recreation and open space system. The plan allows the City to apply for Texas Parks and Wildlife Department grants. 2. The City completed 12 art installations on City traffic signal boxes. The signal art program beautifies public areas, improves our quality of life and creates a distinctive identity for our community. 3. The new North Richland Hills Public Library celebrated its grand opening April 19, 2008. The new facility includes a dynamic children's area, local history room, two community rooms, a cafe and state of the art technology. 4. The City continued the Keep NRH Beautiful, Neighborhood Looks, LitterNOT and Neighborhood Initiative programs. These programs encourage pride in North Richland Hills and maintain the beauty of our City's neighborhoods. 5. Hosted the first annual Public Safety Expo with approximately 2,000 visitors and approximately 100 volunteers and staff helping at the event. Bell Helicopter provided a Model 47 helicopter for display and the Texas Fire Museum provided five antique fire trucks. 6. Started webcasting City Council meetings. This further connects citizens to their Council and informs them about happenings in the City. 7. Parks and Recreation developed three new events this fiscal year including the Veterans Day event at Liberty Park, Discover Project Green at Cross Timbers Park and FidoFest at Tipps Canine Hollow. 8. In the Fall of 2007 and the Spring of 2008, the Police Department hosted seven community meetings open to citizens of each district. The Police Department presented information regarding the structure and organization of the department and crime information specific to each district. The public asked questions, creating a dialogue between the police and the community. Targeted Economic Development 1. Marketed the City to brokers, developers, retailers and restaurants at the International Council of Shopping Centers Annual Convention. From the convention, the City gained interest in both available buildings and greenfield sites. 2. Celebrated the grand opening of the Venue at Home Town. This mixed use development includes upscale apartment homes and several new businesses including Rise & Dine, Firehouse Subs and Chapps Hamburger Cafe. 3. Worked to bring Fitz Manufacturing to the old Kimberly-Clark site off Iron Horse Boulevard and Browning Drive. Fitz Manufacturing manufactures airplane bushing. 4. Met with North Richland Hills businesses to let them know about Economic Development and its role in the City. 5. Convened regular quarterly meetings of the City's Economic Development Advisory Committee, which began updating the City's Economic Development Plan. 6. Initiated the Business Improvement and Growth program (BIG). BIG works with small and older businesses to improve their outside facades and site landscaping. 7. Filled 850,000 square feet of vacant building space. Local and Regional Leadership 1. Keep NRH Beautiful received second place in the Keep Texas Beautiful Governor's Community Achievement Awards. 2. Received the annual Spirit of Cooperation Award from the Fort Worth Builders Association in recognition for sharing the commitment to provide safe, comfortable and affordable home ownership. 3. City Council members participated in several regional groups and the Mayor served in leadership roles as past-chair of the North Texas Council of Governments and chair of the Regional Transportation Council and the Tarrant County Regional Transportation Council. 4. Joined Vision North Texas, a regional private-public partnership designed to increase awareness about the growth expected in North Texas over the next few decades. Staff and City Council participated in the northwestern sub-regional workshop with other participants throughout the region. 5. Council members participated in SCORE, North Texas Clean Air Coalition, Northeast Leadership Forum and other local betterment committees. 6. The Purchasing Department has joined two major cooperative purchasing groups. This has been useful in cutting down on our bid process by utilizing contracts; cutting down on turn around time and freeing up purchasing staff for other tasks. 7. Held a leadership role in Rail North Texas, a group of elected officials, business leaders and members of the public working to expand regional rail in North Texas. The group is currently identifying possible funding sources to take to the Texas Legislature in 2009 for approval. These are just a few of the City's accomplishments over the last year. North Richland Hills is fortunate to have a City Council with the vision to plan for the future, good community partners and a staff that is dedicated to meet and exceed the expectations of Council. Fund Overviews Before moving into the details of the revised and proposed budgets, we feel it is important to give an overview of the types of funds used in planning and accounting for our annual program of work so that both our City Council members and our citizens are fully informed. This should create a clearer understanding of the budget as it is reviewed. General Fund The General Fund is the principal fund of the City and is used to account for resources associated with core government services, or traditional municipal services such as public safety, streets, library services, code compliance and building inspections. This is also the largest fund in the budget. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds include: the Parks & Recreation Facility Development Fund, the Crime Control and Prevention District Fund, the Promotional Fund, the Donations Fund, the Special Investigation Fund, the Drainage Utility Fund, the Gas Development Fund and the Traffic Safety Fund. Enterprise Funds Enterprise Funds account for services that are funded directly through user fees. They are financed and operated similar to a private business in that the costs of providing goods and services are self-supporting. These funds include the Utility Fund, the Golf Course Fund and the Aquatic Park Fund. Internal Service Funds Internal Service Funds are used to account for the financing of materials and services provided by one department to other departments on a cost reimbursement basis. Internal Service Funds are designed to clearly delineate the costs associated with these services. These funds include the Building Services Fund, the Equipment Services Fund, the Information Services Fund and the Self Insurance Fund. `SE T As part of the regular annual budget process, some areas of the FY 2007/2008 budget require revision from the originally adopted level. Projecting revenues can be difficult at times when the economy is slowing and time lines for construction projects are not known. Expenditures can sometimes be difficult to project because they are being budgeted up to eighteen months before they occur. This can mean adjustments are needed to update to the most current estimates to complete the fiscal year. One of the changes you will notice between the adopted budget and revised budget is the Appropriation of Fund Balance for prior year encumbrances in the revised revenues. This is generally for purchases or contracts that were obligated in FY 2006/2007, as approved by Council, but actually purchased, paid for and completed in FY 2007/2008. The most noteworthy budget revisions in the Proprietary Budgets are explained in the following narrative. Unlit Fund evised 2007/2008 Utility Fund revenues for water sales have been revised down by $455,082, or 3.0%. The majority of this reduction is due to a decrease in projected water usage. The projected decrease is due to wetter conditions during the beginning of the year and resident conservation efforts in the warmer months. Sewer sales and charges have decreased by $52,507. Miscellaneous income increased $203,803. Miscellaneous income is mostly comprised of interest. Appropriations for the Big Fossil Creek sewer line repair, $119,453, and the prior year's encumbrances, $36,033, have also been added to revenues but correspond to added expenditures. Utility Fund operating expenses decreased overall by $499,191. A majority of the decrease is due to a reduction in the purchase of treated water from the City of Fort Worth and the Trinity River Authority due to a decrease in projected water sales as explained previously. The reserve for capital projects was increased by $90,135 because of a higher than expected balance between revenues and expenditures. ,~ uatic dark Fug evie 207/2008 NRH2O's attendance estimate has not changed from the adopted estimate of 274,160. While daily admission revenues have been revised down by $98,969, or 4.6%, advanced and group sale revenues have increased $243,462, or 20.4%. Revenues from food and beverages, merchandise, lockers and aquatic classes/special events have also increased. Operating revenues increased $220,180, or 5.1%. Revised operating expenses have increased $99,397, or 3.5%. Expenditure increases are seen in maintenance, administration, concessions and sales. The reserves for infrastructure and major repairs are also increasing by $50,000 to $425,000. This new amount will become the standard annual amount. The increase is needed to amortize new attractions and pay for higher costs. ~f C+ouse Find evse 2007/2008 Rounds of golf played at Iron Horse for FY 2007/2008 are being revised up by 450 to 52,450. Revenues from green fees are decreasing $32,449 or 2.9%. While rounds are increasing, revenue is decreasing due to a change in player mix. The revised player mix shows a decrease in the number of non-resident prime rounds and higher usage from residents, loyalty points and twilight hour play. In addition, revenues from golf packages were not being properly distributed between green fees and cart rentals. That has been corrected. Iron Horse raised all of its fees $2 late this spring, which has had a positive affect on revenue without negatively affecting golf rounds. Revenues from the pro shop, driving range and carts are increasing by $42,392. Food and beverage sale revenues are decreasing by $7,197. Net revenues at the Golf Course are projected to decrease by $32,587 from adopted to revised budget. Revised operating expenses are projected to decrease approximately $19,551. This is due to a reduction of expenses in the pro shop, driving range, golf carts and course maintenance. Food and beverage expenses increased $54,481 or 31.3%. This is attributed to increases in the price of food. General and administrative expenses increased $72,556 or 35.3%. This increase is to correct an error in the adopted budget. Funds need to be allocated from that account to pay for the alcohol license at Iron Horse. Those funds were left out of the adopted budget. uiidlin Services Fug Revised 20702008 Revised revenues are projected to be $61,987 more than adopted. This is due to an Appropriation of Fund Balance for prior year encumbrances of $86,719, an increase in interest income of $21,146 and a decrease in the Building Services Fund Reserves appropriation of $45,878. Revised operating expenditures are $2,208,123, an increase of $61,987. This is caused by an increase in Building Services expenditures for higher utility costs. Total expenditures equal total revenues of $2, 266, 330. E ui rr~en evices Find Revised! 207!008 Revised revenues are estimated to be $3,143,966, an 8.9% increase from adopted budget. The increase is attributed to prior year encumbrances and an increase from General Fund transfers and fund reserves. Revised expenditures are $256,880 higher than adopted due to higher operation costs for gasoline and police vehicles/equipment. Ir~f~rafi~~ services Fin evise 2007/2008 Total revised revenue is projected to be $2,961,830, an increase of $140,529. This increase is mostly due to an Appropriation of Fund Balance for prior year encumbrances. The prior year encumbrances were for computer equipment and software used in our computer systems. Revised operating expenditures increased $140,529 due to increases for microcomputer systems, telecommunications, the data network and public safety technology. pelf nscra.nce F~r~ Revised 2007/2008 Total revenues for this Fund are projected to be $8,311,585, an increase of $82,208, due to an increase in interest income. Also included is an appropriation for prior year encumbrances for $10,000. Total expenditures of $8,311,585 include health/medical costs of $6,391,637, workers compensation of $471,398, $372,565 for all other insurance, $483,148 in personnel expenses, $535,208 in reserves for future insurance claims and $57,629 for life insurance premiums. 20~8/2U~3 PRt)PC3SED BUDGET Though the national economy continues to have problems and the state and other local governments struggle to maintain their revenue sources, the City of North Richland Hills has prepared in the past to avoid a crisis now. Through planning and visionary leadership we are able to weather this storm. Despite rising costs and possible decreasing revenues, the City will continue to accomplish the numerous goals of the City Council and be strong from a financial point of view. Our team of dedicated employees will continue to focus in the coming year on providing quality services to our customers and implementing the City Council Goals of: • Quality Community Development and Revitalization • Efficient Effective Transportation System • Safety and Security • Financial Stability • Preserve Positive City Image • A Sense of Community • Targeted Economic Development • Local and Regional Leadership Residential growth should slow in FY 2008/2009 and growth of our economic base will shift from the reoccupation of several older, larger buildings to revitalization of smaller store fronts. New residents and businesses will continue to move to North Richland Hills. The redevelopment and revitalization of Boulevard 26, the former North Hills Mall site and the South Holiday District will move forward. We will continue to have natural gas development on public and private lands. All of this will have a positive impact on our future revenues and will help deter the increasing costs that are beyond our control. As our City's population increases, we face an understandable increase in the quantity of goods and services needed to serve that population. Like any business, the City of North Richland Hills is also experiencing increases in the cost of electricity, gasoline, building materials and other services. Many of the cost increases the City is experiencing are greater than general inflation or the consumer price index. We are making efforts to find ways to minimize the impact of these types of increases. Price per unit of gasoline is projected to increase in FY 2008/2009. In FY 2007/2008 the per gallon cost of gasoline was budgeted at $2.75. In FY 2008/2009 we are expecting the per gallon cost of gasoline to be $3.75, a 36.4% increase. However as the City purchases more fuel efficient vehicles and creates fuel efficiency initiatives, we expect to use less gasoline. We expect to only use 140,000 gallons of gasoline next fiscal year compared to 185,000 gallons this year. This will be a significant measure to help us keep our costs down even with actual price increases for fuel. The City will also see an increase in prices for petroleum based products. Tires are expected to increase from $108.10 to $124.31 each, a 15% increase. Engine oil is estimated to increase from $2.40 to $2.76 per quart, a 15% increase. Asphalt, needed for the Preventive Street Maintenance Program, is estimated to increase 14% from $50 per ton to $57 per ton. Electricity costs are projected to increase due to an increased per unit price. The cost of electricity per Kilowatt/hour averaged $0.138 in FY 2007/2008. The average in FY 2008/2009 is estimated to be $0.150 per Kilowatt/hour, an 8.7% increase. Other construction materials are estimated to increase as well. Copper tubing is anticipated to increase 10% from $15.85 per linear foot to $17.44 per linear foot. Concrete is projected to increase 8%, from $72.00 per cubic yard in FY 2007/2008 to $78.00 per cubic yard in FY 2008/2009. The City expects to see an increase of 6.4% in credit card fees in FY 2008/2009 due to increased usage. More residents are using the credit card option to pay for various city services and while the fees normally are below 1 %, some cards have fees of over 4%. Another expenditure that has a major impact on the City's operations is health and medical costs. After having several years of these costs rising between 8% and 10% per year, and we are projecting a 5.6% increase in FY 2008/2009. We are alabor-intensive, service orientated business, and because of this it is a major cost increase to cover our employees with health insurance. To help defer the increasing costs of doing business, all of our departments continue to look for ways to reduce costs and to improve levels of efficiency. This is an important step in our fiscal planning and will help us to maintain our financial stability and retain a 57¢ tax rate. As we plan our services and programs for FY 2008/2009, it is important to highlight some of our continuing initiatives, to summarize the revenues and expenditures for each fund and to explain new programs and initiatives that are being proposed. Highlights and Analysis In an effort to achieve the goals set by the City Council and address the issues we expect to shape the FY 2008/2009 budget year, a number of new initiatives are planned for FY 2008/2009 as well as the continuation of others from previous years. Highlights of the coming year are: 1. Equipment & Suilding Services Flan -These plans as originally presented to City Council in FY 1997/1998 continue to be updated to ensure Council and citizens recognize needs for future equipment replacements, facility renovations and major maintenance. The plans allow the City to continue its programs of facility infrastructure maintenance and equipment replacements with no property tax increase, while monitoring the investment the City has in these valuable assets. Suggested changes are being made for Fiscal Year 2008/2009 as far as specific equipment and building upgrades, but the basic plan remains valid and is recommended to be continued as a tool to keep our equipment and buildings timely and reasonably maintained, replaced and/or improved. The 2009 plans are presented in the FY 2008/2009 Capital Improvement Projects (CIP) Budget. 2. Aquatic Park Infrastructure -The 13t" consecutive year of infrastructure funding is recommended to continue with $425,000 added to reserves for major infrastructure replacement and/or major repair. It is recommended to begin adding $50,000 annually to the previous $375,000 budgeted as more facilities are being added to the park and infrastructure costs are increasing. Total accumulated reserves at the end of FY 2008/2009 are estimated to be approximately $4 million. 3. Continuing to Restore Medical Claim Reserves - In July 2003, the City Council held a special work session to discuss significant challenges facing the City's self-insured health plan. Years of double-digit medical cost increases and several large catastrophic medical claims had put a strain on the City's Self Insurance Fund. At that time, a six year strategy of cost sharing and cost reduction was approved to address the City's health insurance costs. It was important for employees and the City to partner together to ensure the long-term success of the cost saving initiatives. This includes rebuilding medical claim reserves for future emergencies and to keep the plan stable. Substantial progress has been made, and in FY 2008/2009 we will continue to have improvements. While the FY 2008/2009 proposed budget addresses many of the Goals Council has established for the City, the proposed budget strives to further enhance or modify existing services without incurring added costs. Due to limited resources this has been a challenge but we believe our collaboration has yielded a budget that meets our goals. Pra ert Values & Tax Anal sis Net taxable value growth is up once again. As of the July 2008 tax roll, net taxable values are $3,759,485,131 which is 5.2% greater than last July. The average home value in North Richland Hills was $144,417 in July 2007. The average home value, based on the July 2008 tax roll, is $149,808. The estimated revenue to be generated from the net taxable value at a 99% collection rate is $21,214,775. The budget includes revenues to the Debt Service Fund in the amount of $6,509,609 to pay for bonds and certificates of obligation, $1,141,839 for public improvements in the Tax Increment Financing Districts, and $13,563,327 to the General Fund. The budget includes no changes to the current tax rate of 57¢ per $100 valuation. Tarrant Appraisal District (TAD) had an error in the new construction figure they provided us and have indicated it will be next week before we receive the corrected information. Once we have the correct figure we will be able to calculate the effective tax rate and determine how much our existing properties increased in value. This information will be provided to Council next week. Utilit Fund Pro used Zoos/ZOOS Water sales and charges generated from the North Richland Hills system for FY 2008/2009 are projected to be $16,558,499, an 8.7% increase from current year adopted. The increase is due to expected higher costs from Fort Worth and the Trinity River Authority and higher consumption from our customers due to minimal growth in the service area. The direct costs of water purchased and sewer treated through the contracts with Fort Worth and the Trinity River Authority are increasing and are passed through to our customers. Their projected cost increases are reflected in the proposed revenues and expenditures for FY 2008/2009. Sewer sales and charges are projected to be $7,928,142, an increase of $183,760 or 2.4% over current year adopted. Utility operations are greatly affected by the amount of rainfall that occurs; dry years show large increases in water sales and vice versa. Fiscal years 2004/2005 and 2006/2007 were unseasonably wet years while fiscal year 2005/2006 was near drought conditions. Water sale projections are based on a four year rolling average. By doing this high and low years are balanced against each other. Included in total Utility Fund revenues is an appropriation of $38,600 in fund balance to the Self Insurance Fund to be used toward rebuilding medical claims reserves in that fund per the approved reserve plan. Total Utility Fund revenues are projected to be $25,937,258 which is $1,695,231 more than the FY 2007/2008 adopted budget. Total expenses are projected to be 7.0% more than FY 2007/2008 adopted. Included in the budget is $12,446,945 in water and sewer treatment costs charged by the City of Fort Worth and the Trinity River Authority (TRA). The costs paid to Fort Worth and the TRA represent 57.9% of operating expenditures in the Utility Fund budget. The debt service payment of $302,154 is a decrease of $154,511 from the previous year. This decreased payment follows the debt service schedule and was planned. A payment to the Reserve for Capital Projects is projected to be $772,285. These reserves will fund the various water and sewer system improvements and expansions as identified in the long range utility capital improvement plan. Also included in total expenditures is a transfer of $38,600 to the Self Insurance Fund. The transfer to the Self Insurance Fund is needed to help with reestablishing the medical claims reserve and is being made per the rebuilding of reserves plan approved by Council. A uatic Park Fund Pro flsed ZOOSlZOO9 Operating revenues of $4,763,012 at NRH20 are projected at $475,444 more than the FY 2007/2008 adopted budget. This increase is partially due to an increase in visitors and partially due to an increase in admission fees. It is estimated that there will be 280,199 visitors to the park next year. Park admissions will increase $1 across the board next year. This rate increase follows the schedule developed in 2005. After including investment income, donations and other non-operating revenues, total revenues for the Park are $4,915,456 for the proposed budget. Much like the Utility Fund, the Aquatic Park Fund must also project revenues for seasons that fluctuate from year to year. Projected expenditures of $4,915,456 include $3,095,420 in operating expenditures, $531,476 for debt service, $112,783 in indirect costs, and $27,492 in various other non-operating costs including insurance. The new attraction planned for opening in the Summer 2009 will not cause a substantial increase in operating expenses because it will not require an increase in personnel. The $272,164 increase in operating expenditures is due primarily to increased park maintenance and utility costs. The Reserve for Future Infrastructure is projected to increase to $425,000 from $375,000. As discussed in the revised budget, the $50,000 is necessary to amortize future park attractions and is not a one time increase. The Reserve for Future Park Expansion is budgeted at $613,285. The insurance reserve will be maintained at $50,000. ~acalf Curse Fund F~roposed 2Q08/2009 The Golf Course is projecting net revenues of $2,531,121, an increase of about $74,654 over the adopted FY 2007/2008 budget. Green fee revenues are also expected to be higher in FY 2008/2009 than in this year's adopted budget. The $26,085, or 2.2%, increase is due partially to a higher projected number of rounds, up 500 to 52,500, and a green fee increase of $3 per round. Included in the revenues is a loan from the General Fund for the replacement of course maintenance equipment in the amount of $168,064. This loan will assist the Golf Course in establishing the needed equipment replacement schedule to keep our mowing and other maintenance equipment in good, reliable operating condition. The loan will not begin to be repaid until 2012, at which time the existing Golf Course debt service will decrease by almost $550,000. Expenses including operating expenses, the previously mentioned equipment replacement, debt service, inter-fund loan payments and reserves total $2,531,121. The capital operating expenditure of $168,064 includes funds to replace the aging air conditioning system and purchase ground maintenance equipment. The inter-fund loan payments include: a payment to the Utility Fund for $50,242 that is a scheduled payment for water well work completed prior to 1997; a payment of $53,707 to the General Fund that is the first payment for golf course drainage improvements; and, a $37,864 payment to the "Pay As You Go" Capital Reserve Fund representing the final payment for various golf equipment purchased in 2005. The Reserve for Equipment expenditure of $22,013 is to start building a reserve for these capital expenses so money does not need to be borrowed from other funds. We follow this practice with all other capital equipment replacements. Buildin Services Fund Pro used 200812009 The total proposed budget of $2,241,263 includes operating expenses of $2,232,595, which itself includes a transfer to the Capital Budget of $221,200. This is an increase of 1.7% from the FY 2007/2008 adopted budget for total expenditures. These costs are to provide maintenance and repairs to all City facilities. To accomplish the various capital improvements, as well as to continue building maintenance and operations, it will be necessary to appropriate $331,268 from fund balance. Internal service funds such as the Building Services Fund are specifically created for just such purposes. Customer departments throughout the City are charged for building costs but increases are generally increased by a percentage and not actual costs. The actual costs of building improvements fluctuate from year to year based upon facility upgrades or scheduled replacements and therefore require the accumulation of reserves to accomplish various projects as is the case in FY 2008/2009. Equipment Services Fund Proposed 200812009 Proposed expenditures of $2,611,716 include operational costs of $1,974,965, equipment purchases of $389,260 for public safety, and $71,900 for all other departments. Included in the public safety equipment purchases are 8 police vehicles. This Fund provides for fleet operations and maintenance for all vehicles except the Fire Department's vehicles. The Fire Department has its own mechanic that specializes in emergency vehicles. The Equipment Service Fund also provides for equipment replacement for all City vehicles. Each department that has vehicles or equipment pays its pro-rata cost for operations and maintenance of the equipment. Total expenditures equal $2,620,238 due to the $8,522 set aside for reserves. Total revenues equal total expenditures, with $2,144,257 being charges for service to customer departments, a planned $307,069 draw down of reserves for new equipment and replacement purchases and other miscellaneous revenues such as investment income, grant proceeds and auction sales. Information Services Fund Proposed 2008/2009 The Information Services Fund pays City wide expenses associated with the operation and maintenance of major computers, microcomputers, data network, Geographical Information System, and telecommunications services. Departments pay their pro-rata share of these costs. The Information Services budget totals $2,897,264, which is a 2.7% increase from FY 2007/2008 adopted budget. The increase is due primarily to the scheduled replacement of 150 personal computers throughout the City, the same number that was replaced in FY 2007/2008. Also included is the citywide transition to the new Microsoft operating system Vista and other equipment and software upgrades needed to continue operating in an efficient and effective manner. Self Insurance Fund Pro osed 200812009 The Self Insurance Fund pays for City wide expenses related to major medical coverage for employees, workers compensation coverage, property and general liability coverage, life insurance and all administrative expenses associated with this program. The Self Insurance Fund budget for FY 2008/2009 meets all expected expenses. The budget for health/medical is $372,077 more than FY 2007/2008 adopted, a 5.6% increase. Employees will also experience an increase in their premiums which will be discussed later in this letter. The Insurance Fund reserves are being rebuilt per the reserve plan adopted by City Council to provide sound healthy reserves and a plan whereby the employees and the City share this cost. This year the costs to the Utility Fund and General Fund are $38,600 and $115,800, respectively. Overall the proposed 2008/2009 Self Insurance Fund will see a 5.4% increase in expenditures for all insurance purposes from the FY 2007/2008 adopted budget. "R-SPIRIT"-- Part of Today's Vision, Tomorrow's Reality Every day City employees represent the core values of Respect, Service, Productivity, Integrity, Responsibility, Innovation and Teamwork. Since its inception, the core values have become an important part of the City's culture and identity. This is most evident when considering the high marks given by the citizens of North Richland Hills as reported during our last citizen satisfaction survey. To continue to achieve high levels of customer satisfaction the City must be able to recruit and retain quality employees. This year's budget proposes a competitive compensation and benefits package for our employees which allows the City to retain a wealth of knowledge and experience as well as the ability to recruit future employees who have the same passion for quality and customer service as our current team of employees. North Richland Hills has a history of hiring and retaining skilled, educated and experienced people, and providing a quality compensation and benefits program is essential to ensuring that continues. With this in mind we believe it necessary to provide competitive compensation and benefit improvements in FY 2008/2009. Below are highlights of employee compensation and benefits that management believes is essential to remain competitive and equitable to our employees. Market Adjustment Plan for FY 2008/2009 On February 24, 2003, Council adopted a resolution (No. 2003-01) recognizing the need to compensate employees at a competitive market level in order to retain and attract quality individuals. As part of this resolution, Council instructed Staff to conduct annual salary surveys to determine market changes. To maintain the Council's goal of positioning our salary range midpoints at the market average, in January 2008 Council approved a 4.26% market adjustment to the City's Public Safety Pay Plan and a 2.69% market adjustment to the City's Professional/Administrative and General Services Pay Plans. To simplify the budget process, most cities adjust their pay ranges October 1 of each year. To determine additional movement with the market, the Human Resources Department will conduct its annual benchmark survey of our ten comparison cities in October 2008. At that time, the City will know what additional adjustments will be necessary to the pay plans in April 2009 to reach the gpa: pf positioning our salary range midpoints at the market average. As in years past, survey data is coupled with the Employment Cost Index (ECI) to determis~e the level of adjustment necessary to move our pay range midpoints to the market average. The ECI is a component of the National Compensation Survey wompi~ed by the U.S. Department of Labor every quarter to measure the changes in compensation costs for both public and private sector employers. Incorpo'ating the public sector ECI into the pay plan adjustments gives a more accuratu picture of how salaries have changed for all public sector employers while still considering the local competition that exists among cities to attract quality employees. Based on the most recent activity as well as discussions with other cities, we anticipate the market adjustment in April 2009 not to exceed 4.5% for the Public Safety Pay Plan and 3.5% for the Professional/Administrative and General Services lay Plans. Due to the differences between the two pay plans, as in the past, the implementation of the 2009 market adjustment for the Public Safety Pay Plan will be different than the Professional/Administrative and General Services Pay Plans. All Pub~i~ Safety employees will remain on step and their salaries will be adjus~ed along with the pay ranges. Professional/Administrative and General Services pay ranges will be brought to the market average with no further adjustment to employe salaries. Compression issues that may occur at the bottom of the General ~ervic~es tray Plan will be addressed on an individual basis. Only those employes wvhp achieved an acceptable rating on their last performa~~~e evaluation are ala~ible to receive the market adjustment. Employees not receiving the r~cet adjustment will have their salaries frozen and wilt be eligible for an increase at the time of their next merit review. Managerr,~~nt will continue tC evaluate the City's compensation program to determine i~,, competitiveness. As always, future adjustments will be made in accordance with market movern:ant and financial considerations. Continuation ~.~f Merit Pay System In 1996, 'the City Council adopted a merit pay for performance s stem that reinforces! the value of productivity by rewardin those em to ees tha 9 p y t maintain an acceptable level of per~rrr~ance. Through the merit pay system, employees receive an annual performance evaluation, and those employees who achieve an acceptable ratirg are, to receive an increase in pay for good job performance. This system was evaluated by the Compensation and Classification Study that was completed in 2003, and it was recommended to continue the merit pay system as a reward for good job performance. The adopted budget provides for the continuation of the merit pay system by providing for an increase in pay for all full time employees that receive an acceptable performance evaluation. Those employees that do not receive satisfactory evaluations will not be eligible for a salary increase. We believe it is important to continue the merit pay system so that the City continues to provide incentive and acknowledgement to employees who perform their jobs well. North Richland Hills citizens benefit by receiving good customer service and quality city services from motivated employees. EmplQV~e Health Insurance for Plan Year 2009 Through ~lun~ 2008, the City's health plan is performing well with medical expenditures continuing to track under budget. With the positive claims experience over the last several years we are not recommending any plan design mpdifications such as increases in co-pays, deductibles, or out-of-pocket maximums for Plan Year 2009. Based on our ongoing review of our medical claims experience; next fiscal year we are projecting an overall cost increase of approximately 5%, Employees will be expected to share in that cost increase through an ir~cr~ease in monthly medical premiums. To maintain the cost-sharing ratio, we will be increasing employee premiums across the board 5% as well as continuing to fellow our strategy for building reserves by adding an additional $5 to employe l~nonthly health insurance premiums. Effective January 2009, medical prer~tium increases will range from a high of $22 per month to a low of $7 per month depending on the plan and coverage options chosen. With the increase tp she City's and the employee's contribution, in 2009 we expect to maintain out funding goal of 20% of revenue contributed through employee medical pr~rrdiums and 80% of revenue contributed by the City. Although the City's ~lairris experience has been positive over the last several years, the City will. continue to proactively monitor and address health care costs through plan design cha~~:°e$ as well as employee wellness education and prevention efforts. TMRS - Chattng a Future Course The Texas Municipal Retirement System (TMRS) was created by law in 1947 to provide secure retirement for municipal employees. The City of North Richland Hills is one of $21 member cities. Over the past few years demographic and economic facto's have contributed to an increase in retirement costs. Demographic, changes include lower employee turnover rates and an increase in retiree-to-active employee ratios. Economic factors include a decline in bond market interest rates and the cost of annually repeating benefits such as updated 9 service credits and cost of living adjustments. TMRS began a strategic initiative in 2006 to address these concerns by soliciting input from various stakeholders including elected officials, retirees and current TMRS members. For much of its 60 year history, TMRS has invested primarily in the bond market. This investment strategy provided a predictable annual income stream with minimal risk. Recently, the interest income from bonds has dropped to the lowest level in many years. In 2008, TMRS began to diversify its investment portfolio to include both stocks and bonds. Investing in the stock market will be done gradually and is designed to increase investment earnings while maintaining an appropriate level of risk. Along with the change in investment strategy, the TMRS board adopted a new actuarial method which will provide for better "pre-funding" of retirement benefits. Long-term, this will allow cities to see more progress with reducing their unfunded liabilities. The most significant impact of this new actuarial method is related to the pre-funding requirements of two different plan provisions, cost of living adjustments and updated service credits. Ninety two percent of TMRS member cities, including North Richland Hills, have adopted these two benefits on an annuall~i repeating basis. Because they are annually repeating benefits, the actuarial study treats these as "committed benefits", which must be advance funded over the working life of each employee. The impact of advance funding these two benefits is the main reason why many cities are seeing their TMRS costs increase. The TMRS Board of Directors recognizes that the actuarial changes adopted in December 2087 may cause an increase to City retirement costs. To lessen the immediate finar~rial impact to city budgets, cities may choose to phase-in the cost increase Aver a period of eight years. The eight year phase-in option allows cities the time to develop amulti-year funding strategy as well as to maintain the same level of ger~efit while the 2009 legislative package is advanced. At the mid- year budget wprk session, Council approved the implementation of the eight-year phase-in option. Therefore, in 2009, the City's contribution rate will be 14.26%. Staff will continue to proactively monitor the TMRS legislative initiatives and update Council a:~~ new infgrmation becomes available. Financing For Fiscal Year 2008/2009 The FY 2008/200 proposed budget is balanced and sound. Overall, the budget will result in the continuation of core functions at the same high level of service, while expanding same services to plan for the future and address priorities. The proposed FY 2008/2009 budget is based on maintaining the current 57¢ property tax rate:'' If approved by Council, this will be the 16th consecutive year for maintaining the current tax rate. The budget includes a 2.4% increase to sales tax revenues as well. An increase in ambulance fees is also reflected in the budget. As mentioned earlier, North Richland Hills' ambulance fees are far below the average for the region. North Richland Hills currently has a cost recovery of 27% for residents and 37% for non-residents. The average rate of recovery in this area is 60% for residents and 65% for non-residents. The City will raise its ambulance rates to meet those averages. Non-residents will begin to pay 65% cost of recovery for service in FY 2008/2009. Residents will enter a phased system and pay 60% of cost recovery for service in FY 2011/2012. The proposed budget will maintain the same base water and sewer rates as last year. The City has finished implementing its Utility Rate Study. The Study, approved by Council and implemented in December 2005, included a three year phased plan. The rates were established to meet the revenue requirements for the system's operation and maintenance costs. Water 2007 2008 2009 Base $9.12 $9.30 $9.30 Volume $2.58 $2.69 $2.69 Sewer 2007 2008 2009 Base $7.27 $7.27 $7.27 Volume $1.17 $1.17 $1.17 In addition, the City anticipates an increase in the Fort Worth/Trinity River Authority water and sewer pass through rates in FY 2008/2009. Costs associatE;d with payments to Fort Worth and TRA are not controllable by the City, and therefore are calculated separately. G41f fee~~~ are recommended to increase by $3 per round. And, aquatic park fees are proj~~-4ted to increase $1 in accordance with the Strategic Plan for NRH2O. Staff will continue to seek new outside revenue sources including grants and increased donations for the Library Book Fund and the Animal Adoption Rescue Center Expansion Fund. Summary and Conclusion Department Directors along with the Finance and Budget Departments and City Management Team have put a great deal of time and effort into preparing a balanced budget, maintaining astable tax rate and implementing the City Council's Goals and Objectives. We are grateful for their dedication and teamwork. We could not have met the challenges and presented a sound budget document without their cooperation and efforts. We also appreciate our many community partners who continue to work hand in hand with the City to help us create today's vision for tomorrow's reality. The City Council should also be commended for its leadership and vision. The Council's Goals and Objectives are the driving force that ensures the City will continue to maintain the high quality of life that our residents enjoy. To provide the highest level of services to our community, it is imperative for the City to continue to retain quality employees. Therefore in the FY 2008/2009 budget the merit pay program is planned to continue as established by the City Council to provide incentives and acknowledgement to employees who perform their jobs well. We also recommend a market adjustment in FY 2008/2009 to remain competitive and retain the quality employees that North Richland Hills is well known for. The Employee Medical Plan will not change, but premiums to employees will increase in accordance with our six-year strategy for cost sharing and cost reduction. In the coming year, we are also projecting increases in the cost of electricity, gasoline, building materials and other products that the City must purchase. We will absorb as much of the cost increases as possible by increasing efficiency and using our building, vehicles and materials wisely. While we anticipate a 2.7% overall increase in spending in the General Fund for FY 2008/2009, our careful budgeting and planning will allow us to maintain the current 57¢ tax rate for the 16 year in row. With a City Council committed to excellence, dedicated community partners and employees with a desire to achieve their best and excel, it is little wonder why North Richland Hills continues to prosper and be the City of Choice to Live, Work and Play. Respectfully Submitted, r~'-~-.~ Larry J. Cunningham City Manager FISCAL YEAR 2008-2009 SCHEDULE 14 -SUMMARY OF REVENUES A ND EXPENDITURES UTILITY FUND ' ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 REVENUES Water Sales and Charges $16,259,607 $12,509,426 $15,232,212 $14,777,130 $16,558,499 Sewer Sales and Charges 7,491,334 8,097,449 7,744,382 7,691,875 7,928,142 Miscellaneous 868,566 1,605,561 1,226, 833 1,430,636 1,412,017 Sub-Total Revenues $24,619,507 $22,212,436 $24,203,427 $23,899,641 $25,898,658 Appropriation from Fund Balance Rate Stabilization $0 $486,329 $0 $0 $0 Reserve for Self Insurance 0 36,600 38,600 38,600 38,600 Big Fossil Creek Sewer Line Repair 0 0 0 119,453 0 Previous Year Encumbrances 0 0 0 36,033 0 TOTAL REVENUES $24,619,507 $22,735,365 $24,242,027 $24,093,727 $25,937,258 EXPENDITURES Operating Administration $244,586 $255,178 $266,648 $266,898 $277,459 Public Works 4,012,901 3,680,206 4,392,168 4,394,455 4,484,873 Development 579,643 659, 825 750, 567 750, 567 768, 079 Right of Way Maintenance 60,785 164,481 230,800 230,800 251,024 Utility Billing & Collections 1,270,130 1,235,981 1,331,621 1,328,921 1,364,019 Budget & Research 170,217 157,803 185,936 136,539 179,136 Accounting Services 126,431 125,754 127,316 125,070 138,421 I Purchase of Water/Sewer FTW 3,589,241 4,185,948 4,617,571 4,737,024 5,362,686 ~~ Purchase of Water/Sewer TRA 6,079,673 6,150,582 7,057,717 6,457,717 7,084,259 ;= Building Services 934,170 980,879 1,078,968 1,078,968 1,186,865 I Non-Departmental 251,049 260,235 370,406 403,568 407,579 Sub-Total $17,318,826 $17,856,872 $20,409,718 $19,910,527 $21,504,400 Other & Reserves Debt Service $616,204 $464,438 $456,665 $456,665 $302,154 Franchise Fees 705,119 594,207 681,095 666,756 727,285 Indirect Costs 1,347,435 1,414,807 1,485,548 1,485,548 1,559,825 Payment In Lieu Of Taxes 344,779 357,847 423,750 423,750 444,938 Transfer from Utility CIP Reserve to 175,000 175,000 175,000 175,000 175,000 Information Services Fund Contribution to Equipment Svs. 50,000 100,000 50,000 50,000 50,000 ~ Transfer to Self Insurance Fund 34,600 36,600 38,600 38,600 I 38,600 f Transfer from Water to Sewer 0 0 0 275,095 354,494 -= Market Adjustment 0 0 0 0 8,277 Reserve for Capital Projects 4,027,544 1,735,594 521,651 611,786 772,285 Sub-Total $7,300,681 $4,878,493 $3,832,309 $4,183,200 $4,432,858 TOTAL EXPENDITURES $24,619,507 $22,735,365 $24,242,027 $24,093,727 $25,937,258 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2008-2009 SCHEDULE 15 -SUMMARY OF REVENUES AND EXPENDITURES REVENUES Water Sales and Charges Water Sales Water Taps Water Inspection Fees Service Charges Water Wells Sub-Total Miscellaneous UTILITY FUND -WATER OPERATIONS ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2005/06 FY 2006/07 FY 2007/08 FY 2007/08 FY 2008/09 $16,046,613 $12,378,411 $15,055,912 $14,626,630 $16,407,999 75, 520 49, 715 68, 000 50, 000 50, 000 50, 752 9, 213 24, 000 24, 000 24, 000 72, 895 67, 000 72, 900 67, 200 67, 200 13, 827 5, 087 11, 400 9, 300 9, 300 $16,259,607 $12,509,426 $15,232,212 $14,777,130 $16,558,499 Interest Income $174,112 $627,205 $385,683 $360,325 $295 514 Late Charges 281,588 253,940 282,000 264,000 , 264 000 Joint Use Reimbursement-Watauga 43,966 96,331 44,000 62,000 , 72 000 Subdivision Meter Revenue 65,100 40,656 56,000 53,000 , 53,000 Sub-Tota I $564, 766 $1, 018,132 $767, 683 $739, 325 $684, 514 Appropriation from Fund Balance Rate Stabilization $0 $275,000 $0 $0 $0 Reserve for Self Insurance Fund 0 21,960 23,160 23,160 23 160 Previous Year Encumbrances 0 0 0 0 , 0 Sub-Total $0 $296,960 $23,160 $23,160 $23,160 TOTAL REVENUES $16,824,373 $13,824,518 $16,023,055 $15,539,615 $17,266,173 EXPENDITURES Operating Administration Water Operations Purchase of Water FTW Purchase of Water TRA Development Right of Way Maintenance Sub-Total Finance/Utility Collections Meter Reading Utility Billing/Customer Service Utility Collection Services Accounting Services Budget & Research Sub-Total $146, 752 $153,107 $159, 989 $160,139 $166, 475 3, 064,102 2, 782, 059 3, 374, 995 3, 375, 482 3, 437,134 2, 704, 284 3, 073, 740 3, 487, 408 3, 487, 408 3, 824, 904 3, 645, 061 3, 582, 493 3, 972, 371 3,165, 652 4, 078, 693 347, 786 395, 895 450, 340 450, 340 460, 847 36,471 98,689 152,480 138,480 150,614 $9, 944, 456 $10, 085, 983 $11, 597, 583 $10, 777, 501 $12,118, 667 $210,721 $209,340 $223,166 $223,166 $240,680 422, 273 398, 993 435,163 430, 543 428, 034 129, 085 133, 256 143, 644 143, 644 149, 697 75, 859 75, 452 76, 390 75, 042 83, 053 102,130 94, 682 111, 562 81, 923 107,482 $940, 068 $911, 723 $989, 925 $954, 318 $1, 008, 946 CITY OF NORTH RICHLAND HILLS Department: Budget Council Meeting Date: 8-26-2008 Presented by: Mark Mills Agenda No. C.2 Subject: GN 2008-080 Conduct Public Hearing on Proposed Tax Rate Senate Bills 18 and 567 that were passed during the regular 79t" Session of the Texas Legislature made several changes to the way the tax rate must be adopted. One of the changes is the requirement to hold two public hearings on the proposed property tax rate if the proposed rate exceeds the effective tax rate. Because the proposed rate of 57¢ is higher than the effective tax rate of 56.3058¢, two public hearings must be held. The August 26 hearing is the first of the two required hearings. The second required public hearing will be held at a Special Council Meeting on Tuesday, September 2, 2008 at 6:00 pm. Senate Bills 18 and 567 also have very specific requirements on how to publish notice of the public hearings. Notice of the public hearings was duly posted in the Northeast Section of the Fort Worth Star-Telegram on August 18, 2008 per state law. Senate Bills 18 and 567 also require us to phrase the notice of public hearing on the tax rate as a "tax increase" because the proposed tax rate is above the effective tax rate. The effective tax rate is the property tax rate necessary to produce the same amount of property tax revenues as the prior year. The tax rate is scheduled to be adopted on September 8, 2008 during the regular 7:00 pm City Council meeting. The proposed tax rate for Fiscal Year 2008-2009 is 57¢. If adopted, this will be the 16t" consecutive year the City has maintained a 57¢ tax rate. Individual taxpayers' property taxes may decrease, increase or stay the same depending on the appraised value of their property. Senior and disabled property owners who have a tax ceiling (even if their property values have increased) will pay the same amount of property tax as the previous year. The City of North Richland Hills is proud of the progress we have made while demonstrating sound financial management of our Citizen's tax dollars. Recommendation: To open the public hearing, receive public comments on the proposed 57¢ tax rate, announce September 8, 2008 as the date of the tax rate adoption, and close public hearing. No action is required at this hearing as this is held solely for the purpose of receiving comments. As stated, action on the tax rate is proposed for the September 8 Council meeting. FISCAL YEAR 2008-2009 SCHEDULE 15 -SUMMARY OF REVENUES AND EXPENDITURES UTILITY FUND -WATER OPERATION ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET CV ~fAAG/AL` CV HAAC/A7 rv AAA l/AA ~~i AAA1/AA ~~i ww w..iww Building Services Non-Departmental Sub-Total Other & Reserves Debt Service Franchise Fees Indirect Costs Payment In Lieu Of Taxes Transfer from Utility CIP Reserve to Information Services Fund Contribution to Building/Equip. Svs Transfer to Self Insurance Fund Transfer to Sewer Market Adjustment Reserve for Capital Projects Sub-Total ~ TOTAL, EXPENDITURES ~ BALANCE. $560, 502 $588, 527 $647, 381 $647, 381 $712,119 $150, 629 $156,141 $222, 244 $242,141 $244, 547 $11,595,655 $11,742,374 $13,457,133 $12,621,341 $14,084,279 $369, 722 $278, 663 $273, 999 $273, 999 $181, 292 484, 738 369, 339 451, 677 438, 799 492, 240 821, 936 863, 033 906,185 906,185 951, 494 206, 867 214, 708 254, 250 254, 250 266, 963 105, 000 105, 000 105, 000 105, 000 105, 000 30, 000 60, 000 30, 000 30, 000 30, 000 20,760 21,960 23,160 23,160 23,160 0 0 0 275,095 354,494 0 0 0 0 4, 966 3,189,695 169,441 521,651 611,786 772,285 Q`G X70 7~1 O Q`~ f10r1 A A A A~r1 cnr_ nnn Tn nw n n~ . w,~ . ~.. ~~. . $16,824,373 $13,824,518 $16,023,055 $15,539,615 $17,266,173 $o $o $o $o $o ~ CITY OF NORTH RICHLAND HILLS Department: Economic Development Presented by: Craig Hulse Council Meeting Date: 8-26-2008 Agenda No. C.3 Subject: GN 2008-081 Conduct Public Hearing on Nomination of Tyson Prepared Foods, Inc. as a Texas Enterprise Project The purpose of this public hearing is to consider, pursuant to the Texas Enterprise Zone Act, Chapter 2303, nomination of Tyson Prepared Foods, Inc., located at 6350 Browning Court, as a Texas Enterprise Project. Designation as a Texas Enterprise Project will make it possible for Tyson Prepared Foods, Inc. to receive State tax incentives. North Richland Hills' participation would come in the form of a `nomination' of Tyson Prepared Foods, Inc. to the Office of the Governor, Economic Development and Tourism. The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment. In the case of Tyson, a state sales and use tax rebate of $2,500 per employee will help offset a portion of the cost associated with adding a $9.6 million production line, further enhancing the value of 6350 Browning Court in the eyes of Tyson Prepared Foods, Inc. To become eligible, 35% of all future employees hired must meet the Program's economically distressed residency requirement. An economically distressed location falls within a census block group that contains at least 20% of the population living at or below the poverty line. If designated as an Enterprise Project, Tyson Prepared Foods, Inc. has committed that at least thirty-five percent (35%) of new employees will be residents of an enterprise zone or economically disadvantaged individuals. Approximately 350 jobs are maintained at 6350 Browning Court, which translates into a potential refund of state sales and use taxes of $875,000 (350 x 2,500) over a 5 year period. Representatives from Tyson Foods will be at the hearing to answer questions or further discuss this request. If approved, the Enterprise Zone Project will take effect on September 2, 2008, terminating 5 years later on September 2, 2013. Recommendation: To hold a public hearing and receive any comments. Action on this matter is requested on the next agenda item. CITY OF NORTH RICHLAND HILLS Department: Economic Development Presented by: Craig Hulse Council Meeting Date: 8-26-2008 Agenda No. C.4 Subject: GN 2008-081 Approval of Ordinance No. 3010 nominating Tyson Prepared Foods, Inc. (This item is not a public hearing but related to Item C.3) to the Office of the Governor, Economic Development and Tourism for designation as a Texas Enterprise Project In the previous agenda item, a public hearing was conducted to receive comments about the City of North Richland Hills nominating Tyson Foods, Inc as a Texas Enterprise Project in accordance with the State of Texas economic development program. Approval of Ordinance No. 3010 will, pursuant to the Texas Enterprise Zone Act, Chapter 2303, nominates Tyson Prepared Foods, Inc., located at 6350 Browning Court, to the Office of the Governor, Economic Development and Tourism (OOGEDT) for designation as a Texas Enterprise Project. Designation as a Texas Enterprise Project will make it possible for Tyson Prepared Foods, Inc. to receive State tax incentives. To support the nomination, the_ ordinance also assists Tyson Prepared Foods, Inc. with the following: • Designation of the Director of Economic Development to serve as the City's liaison with the OOGEDT and with qualified businesses affected by the Enterprise Project. • A list of existing City incentives that could be made available at the approval of City Council. • Acknowledge that Tyson Prepared Foods, Inc. is a `qualified business' under the Texas Enterprise Zone Act. If approved, the Enterprise Zone Project will take effect on September 2, 2008, terminating 5 years later on September 2, 2013. Recommendation: Approve Ordinance No. 3010 nominating Tyson Prepared Foods, Inc. to the Office of the Governor, Economic Development and Tourism for designation as a Texas Enterprise Project. ORDINANCE NO. 3010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, AUTHORIZING THE CITY OF NORTH RICHLAND HILLS TO PARTICIPATE IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE ("ACT"), PROVIDING POSSIBLE TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH THE INTERESTED PARTIES, AND NOMINATING TYSON PREPARED FOODS, INC. TO THE OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM ("OOGEDT") THROUGH THE ECONOMIC DEVELOPMENT BANK ("BANK") AS AN ENTERPRISE PROJECT ("PROJECT"). WHEREAS, the City Council of the City of North Richland Hills, Texas (the "City") desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of the City; and WHEREAS, the Project is not located in an area designated as an enterprise zone; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Act, Tyson Prepared Foods, Inc. has applied to the City for designation as an Enterprise Project; and WHEREAS, the City finds that Tyson Prepared Foods, Inc. could meet the criteria for tax relief and other incentives adopted by the City on the grounds that it is located at a qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a public hearing to consider this ordinance was held by the City Council of the City of North Richland Hills, Texas on August 26, 2008. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. The City nominates Tyson Prepared Foods, Inc. for Enterprise Project status. SECTION 2. The local incentives identified and summarized briefly in the attached Exhibit A, at the election of the governing body, are or could be made available to the nominated Project or activity of a qualified business. SECTION 3. The City of North Richland Hills City Council directs and designates the Director of Economic Development or his designee as the City's liaison to communicate with the OOGEDT through the Bank and Enterprise Project(s) and to communicate with qualified businesses and other entities affected by an Enterprise Project. SECTION 4. The City finds that Tyson Prepared Foods, Inc. meets the following criteria for designation as an Enterprise Project under Chapter 2303, Subchapter F of the Act on the following grounds: (a.) Tyson Prepared Foods, Inc. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction, located outside of an enterprise zone and has committed that at least thirty-five percent (35%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of Tyson Prepared Foods, Inc. as an Enterprise Project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. SECTION 5. The Enterprise Project shall take effect on September 2, 2008 and terminate on September 2, 2013. PASSED AND APPROVED on this the 26th day of August, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Craig Hulse, Economic Development Director Exhibit A Local Sales and Use The City may allow sales and use On Case By Case 1 Tax Refunds tax refunds. Basis On Case By Case 2 Tax Abatement Property tax abatement. Basis Property tax exemption for Freeport 3 Freeport Exemption property. Citywide Sales Tax for Crime Control and Prevention District, Parks and Recreation Development District and On Case By Case 4 4B Sales Tax Economic Development Basis The City may make zoning changes Zoning to expedite the development On Case By Case 5 Changes/Variances process. Basis The City may provide certain Building Code building code process exemptions to On Case By Case 6 Process Exemptions expedite the development process. Basis Impact/ Inspection The City may exempt impact/ On Case By Case 7 Fee Exemptions inspection fees. Basis The City may streamline permitting Streamlined procedures to promote economic 8 Permitting activity. Citywide Improved Fire and Safety and protection of City 9 Police Protection residents. Citywide Crime Control and Prevention District, Neighborhood Watch Community Crime Programs, CrimeReports.com, and 10 Prevention Programs Crimeweb.net Citywide Capital Improvements In The City may provide resources for Water and Sewer a capital improvement plan related On Case By Case 11 Facilities to water and sewer service. Basis The City is responsible for maintaining and repairing public 12 Road Repair streets and alleys inside City limits. Citywide Parks and Recreation Development Creation or District, to develop and maintain Improvement of parks and promote healthy lifestyle 13 Parks for City residents. Citywide Provision of Publicly Owned Land for Development The City may provide publicly owned On Case By Case 14 Purposes land for development purposes. Basis Exhibit A (continued) One-Stop Permitting, Problem Resolution The City may offer one-stop 15 Center permitting. Citywide Promotion and Northeast Tarrant Chamber of 16 Marketing Service Commerce. Citywide Job Training and Employment Offered through ATI-Career Training 17 Services Center, and Tarrant County College. Citywide Offered through ATI-Career Training 18 Retraining Program Center, and Tarrant County College. Citywide Literacy and Employment Skills Offered through ATI-Career Training 19 Services Center, and Tarrant County College. Citywide Offered through ATI-Career Training 20 Vocational Education Center, and Tarrant County College. Citywide Customized Job Offered through ATI-Career Training 21 Training Center, and Tarrant County College. Citywide Infrastructure The City may provide infrastructure On Case By Case 22 Improvements improvements for industries. Basis CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. D.0 Subject: PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. E.0 Subject: PUBLIC WORKS CITY OF NORTH R/ CHLAND HILLS Department: Public Works Council Meeting Date: 8-26-2008 Presented by: Mike Curtis Agenda No. E.1 Subject: PW 2008-022 Amend Code of Ordinances, Section 78-65 (a), Lawn and Landscape Irrigation Restrictions -Ordinance No. 3009 On July 10, 2006, City Council approved a Water Conservation Plan similar to the City of Fort Worth's Water Conservation Plan. All wholesale customer cities that purchase treated water from Fort Worth are required to meet the minimum standards and regulations set forth by the City of Fort Worth's Water Conservation Plan. At the time, Fort Worth's plan required customer cities to adopt a lawn and landscape irrigation restriction of non-watering from 10:00 AM to 6:00 PM for the months of June through September. The only exception was watering by-hand or the use of soaker hoses which could continue to be done year round. Recently, Fort Worth revised their restrictions so that the "conservation period" was no longer June through September but would now be year round. Fort Worth is now requesting their customer cities to revise their restrictions to include a similar "conservation period". The objective of the restriction is to reduce the loss and waste of water. Watering during the hours of 10:00 AM to 6:00 PM has proven to be a less efficient time to water due to the water loss from evaporation. Some local cities have already adopted the restriction and others are in the process of adopting. This restriction will also help to create a uniform restriction for landscape irrigation for cities across the Metroplex. Since the City is currently under the existing Water Conservation Plan which consists of restricted watering from June to September, staff recommends that if Council approves this change that the revised Ordinance would go into effect October 1, 2008. This would allow sufficient time to inform the residents of the year round watering restrictions. We will use various means to inform the public of the change such as City Cable, the City Web Site and other written correspondence. Recommendation: Approve Ordinance No. 3009 prohibiting watering, except by hand or by soaker hose, during the hours 10am to 6pm daily on a year round basis. ORDINANCE NO. 3009 AN ORDINANCE AMENDING SECTION 78-65 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCES TO EXTEND OUTSIDE WATERING RESTRICTIONS TO ALL MONTHS OF THE YEAR; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY FOR VIOLATIONS HEREOF; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills, Texas (the "City") is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the City Council finds that conservation of water and protection of water supplies is necessary to protect public health and sanitation as well as to provide water for fire protection; and WHEREAS, the City Council .having previously adopted a water conservation plan incorporated into the Code of Ordinances; and WHEREAS, securing future water supplies will require proving to state permitted agencies that existing water supplies are being used efficiently; and, WHEREAS, THE City has been requested by its supplier of potable water to extend the restrictions on hours for outside watering to all months of the year in order to conserve water; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1. That Section 78-65(a) of the North Richland Hills Code of Ordinances be amended to read as follows: "Sec. 78-65. Lawn and landscape irrigation restrictions (a) Except for hand watering and the use of soaker hoses, a person commits an offense if a person irrigates, waters, or causes or permits the irrigation of watering of any lawn or landscape located on premises owned, leased, or managed by that person between the hours of 10:00 a.m. and 6:00 p.m. Section 2. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable, and if any section, paragraph, sentence, clause, or phrase of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining sections, paragraphs, sentences, clauses, and phrases of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional section, paragraph, sentence, clause or phrase. Section 3. Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this Ordinance shall be fined not more than Two Thousand Dollars ($2000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. Section 4. The City Secretary is hereby directed to publish this ordinance or its caption and penalty in the official City newspaper one time within ten (10) days after final passage hereof. Section 5. This Ordinance shall be in full force and effect beginning October 1, 2008 and after its passage and publication as required by law and it is so ordered. PASSED AND APPROVED on this 26th day of August, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Mike Curtis, P.E., Public Works Director CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 8-26-2008 Presented by: Mike Curtis Agenda No. E.2 Subject: PW 2008-023 Approve Engineering Agreement with Teague Nall and Perkins, Inc. for the Aegon Lift Station Expansion Project in an Amount not to exceed $160,000 Council is being asked to approve an engineering agreement for the design of the expansion of the Aegon Lift Station located at Boulevard 26 and Precinct Line Road. This project will consist of the design and construction of the expansion of the lift station from 0.9 million gallons per day to 1.6 million gallons per day capacity. The project will also consist of constructing a new 15 inch sewer main to carry flow from the lift station. This project was identified in the Impact Fee Study and the Sanitary Sewer Master Plan completed in October 2005. The project is needed to provide wastewater collection to an area of the City that has experienced significant growth since the construction of the original lift station. The service area for the lift station covers the area where the Venue (Home Town) and Health Markets are located. This is planned to be the final expansion necessary for this lift station. The City's procurement of professional services policy was used in selecting a design firm for the project. Requests for Qualifications (RFQs) were mailed to approximately 20 engineering firms. Twelve firms submitted qualifications for consideration. A review committee consisting of the Director of Public Works, Public Works Operations Manager, Assistant Director of Parks and Recreation, Construction Manager, and the Building Official reviewed the qualifications. The top nine firms were ranked based on their experience in successfully performing similar projects, design team experience, and the engineering firm's history in meeting schedules and providing high quality work. The firms were ranked as follows: 1. Teague Nall and Perkins, Inc. 2. Baird, Hampton & Brown, Inc. 3. HDR Engineering, Inc. 4. Freese and Nichols, Inc. 5. Kimley-Horn and Associates, Inc. 6. Birkhoff, Hendricks & Conway, L.L.P. 7. Pate Engineers 8. BWR (Bucker, Willis & Ratliff Corporation) 9. Graham Associates, Inc. The top three firms were interviewed by the selection committee. After the interviews the committee believed Teague Nall and Perkins, Inc. (TNP) to be the best choice for this project. TNP demonstrated that they have the knowledge and experience for designing projects such as this one. The TNP staff has completed several lift station expansion projects in the Dallas Fort Worth Metroplex. They have also completed other types of civil design projects for the City. TNP has proven to meet all of staff s expectations along with completing the assignments within the allowable time frame on past projects. The key components of the engineering agreement are outlined below: Basic Engineering Services - $134,800 ^ Review existing data and meet with City staff to define project requirements. ^ Review current Wastewater Master Plan. ^ Obtain system maps. ^ Obtain existing proposed plans and profiles for water, sewer, streets, storm drainage, and utilities adjacent to lift station. ^ Obtain ownership data. ^ Research existing easements and right-of-way data. ^ Identify lift station expansion options. ^ Identify requirements for potential land acquisition for upgrade. ^ Prepare a report of findings and recommendations with costs. ^ Prepare preliminary design plans and recommend sewer main improvements. ^ Meet with business owners to discuss the project. ^ Provide assistance during bidding as required. ^ Prepare contracts for bonding and regulation. ^ Attend pre-construction meeting. ^ Provide assistance during construction. Special Engineerin,q Services - $25,200 (Not to Exceed) ^ Establish survey control and perform design survey. ^ Existing streets and driveways will be profiled and cross-sectioned. ^ Locate existing underground and overhead utilities. ^ Right-of-Way lines along the project will be located. ^ Staking right-of-way parcels. ^ Prepare right-of-Way or easement instruments. ^ Services that may result from significant changes in the general scope or character of the project. ^ Services in connection with bid projects, re-bidding or re-negotiating contracts. ^ Services which are not furnished by the City. Teague Nall and Perkins, Inc. will perform these services for a fee not to exceed $160,000. Sufficient funds have been approved in the 2007/08 CIP Budget. Design on the project is tentatively scheduled to begin in September 2008 and be complete by March 2009. Construction is scheduled to begin in May 2009. Recommendation: ,Approve Engineering Agreement with Teague Nall and Perkins, Inc. for the Aegon Lift Station Expansion Project in the Amount not to exceed $160,000. Lift Station Expansion (Boulevard 26 at Precinct Line) CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. F.0 Subject: GENERAL ITEMS CITY OF NORTH RICHLAND HILLS Department: Neighborhood Services Presented by: Chun Mezger Council Meeting Date: 8-26-2008 Agenda No. F.1 Subject: GN 2008-076 Renewal of Interlocal Agreement between the cities of North Richland Hills and Southlake for Animal Impoundment The current interlocal agreement between the cities of North Richland Hills and Southlake for Animal Impoundment expires on September 30, 2008. This renewal of the interlocal agreement must be approved by both the City of Southlake and the City of NRH. The attached interlocal agreement if approved by both City Councils will be in full effect for 2 years, unless amended. This agreement may be terminated by either party after receiving 30 days written notice. No significant changes have been made from the previously approved agreement. The attached interlocal agreement is similar to the interlocal agreement approved on September 11, 2006 except for a couple of house cleaning items such as: 1) allowing for Consumer Price Index (CPI) adjustments, and: 2) charging current fees in lieu of specifying set fees. The City of Southlake agrees to a rate of $105.00 per animal housed at the North Richland Hills Animal Adoption & Rescue Center. All boarding fees, adoption fees, impound fees etc., will go directly to the City of North Richland Hills. The City of Southlake will be responsible for medical treatment of all injured animals brought to our shelter. Southlake's animal officer will continue to be responsible for monitoring their city and bringing any loose or stray animals to our shelter for handling. All other associated fees are based on current fees approved by ordinance. The City of Southlake houses approximately 10-15 animals per month and therefore we feel that approving this interlocal agreement with the City of Southlake will have little impact on our ability to maintain current service levels and our ability to care and accommodate the animals within our City. Any changes or extensions to this agreement will be brought back to City Council for approval. Recommendation: To approve the renewal of the Interlocal Agreement between the cities of North Richland Hills and Southlake for Animal Impoundment and authorize the City Manager to execute such agreement. INTERLOCAL AGREEMENT BETWEEN THE CITIES OF NORTH RICHLAND HILLS AND SOUTHLAKE FOR ANIMAL IMPOUNDMENT THE STATE OF TEXAS )( COUNTYOF TARRANT )( THIS ("AGREEMENT"), is made and entered into by the CITY OF NORTH RICHLAND HILLS, TEXAS, a Home Rule municipal corporation, ("NORTH RICHLAND HILLS"), and the CITY OF SOUTHLAKE, TEXAS a Home Rule municipal corporation, ("SOUTHLAKE"), each acting by and through its duly appointed and authorized city manager: WITNESETH: WHEREAS, NORTH RICHLAND HILLS AND SOUTHLAKE are desirous of entering into a contract for Animal Impoundment Services to provide a more effective and efficient delivery of such services; and WHEREAS, NORTH RICHLAND HILLS has the facilities available to perform Animal Impoundment for both cities; and WHEREAS, all payments for Animal Impoundment to be made hereunder shall be made from current revenues available to the paying party; and WHEREAS, NORTH RICHLAND HILLS and SOUTHLAKE have concluded that this Agreement fairly compensates the performing party for the Animal Impoundment Services being provided hereunder; and WHEREAS, NORTH RICHLAND HILLS and SOUTHLAKE believe that this Agreement is in the best interests of NORTH RICHLAND HILLS and SOUTHLAKE; and WHEREAS, this Agreement is approved by the governing bodies of NORTH RICHLAND HILLS and SOUTHLAKE; and WHEREAS, this Agreement is authorized by and in conformance with Chapter 791 of the Texas Government Code, the Interlocal Cooperation Act (the "Act"). NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND CONSIDERATION PROVIDED FOR HEREIN, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY CONFIRMED, NORTH RICHLAND HILLS AND SOUTHLAKE HEREBY AGREE TO THE FOLLOWING: Section 1. All matters stated above in the preamble are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. Term. This Agreement shall be for a term of two (2) years commencing on October 1, 2008, and ending September 30, 2010, (the "Initial Term") Section 3. Scope of Services to be provided by NORTH RICHLAND HILLS. NORTH RICHLAND HILLS hereby agrees to provide SOUTHLAKE the following equipment, services, personnel, and facilities: a. Accept animals brought to the North Richland Hills Animal Shelter by Southlake Animal Control Officers. b. Provide access to the Euthanasia Room to Southlake Animal Control Officers for preparation of rabies specimen. c. Provide supplies for rabies specimen testing. d. Provide after hour building access and computer access to Animal Control Facility to Southlake Animal Control Officers. e. Hold animals brought to Animal Control Facility without collars and/or identification for at least four (4) business days and those with collars and/or identification for at least seven (7) business days. f. Although adoption services may be provided, pit bulls and pit bull mixes will not be available for adoption. g. Euthanize and cremate animals not claimed within the period provided under e. hereof if not adopted. h. Collect fees from pet owners at rates in accordance with North Richland Hills Code of General Ordinances Appendix A. i. Provide for adoption of pets. j. Accept missing pet reports from Southlake residents who come in to the North Richland Hills Animal Control facility to make such reports or to look for their animals. k. Cremation services will be offered for deceased Southlake animals brought in by their officers at $30.00 per animal. Section 4. SOUTHLAKE Obligations. SOUTHLAKE shall: a. Perform all field work necessary to serve Southlake residents and provide animal control officers to bring animals to the North Richland Hills Animal Control facility. b. Pay North Richland Hills $105.00 per animal brought to the Animal Control facility by Southlake Animal Control Officers or Southlake Police Officers. c. Reimburse North Richland Hills for all supplies used by Southlake personnel pursuant to Sec. 3.c. hereof. d. Provide medical treatment to any Southlake injured animal. Section 5. Payments for Services Performed. All payments provided for in Sec. 3. here of shall be retained by the City of North Richland Hills as partial payment for services rendered. Section 6. Cancellation. SOUTHLAKE shall have the right to terminate this Agreement if NORTH RICHLAND HILLS breaches any of its terms or fails to perform any of the obligations it imposes, and then fails to cure the breach or failure within thirty (30) days following written notice from SOUTHLAKE. If the Agreement is terminated under this paragraph, NORTH RICHLAND HILLS shall be entitled to retain money already received. Section 7. Notices. All notices required or provided for in this Agreement shall be sent to the following parties by certified mail -return receipt requested: NORTH RICHLAND HILLS Larry J. Cunningham, City Manager City of NORTH RICHLAND HILLS NORTH RICHLAND HILLS, TX SOUTHLAKE Shana Yelverton, City Manager City of Southlake P.O. Box 770 1400 Main Street Southlake, TX 76092 Section 8. Dispute Resolution. In order to ensure an effective relationship between the parties and to provide the best possible public service, it is mutually agreed that all questions arising under this Agreement shall first be handled and attempted to be resolved between the City Managers of NORTH RICHLAND HILLS and SOUTHLAKE. Issues regarding the performance of Animal Impoundment and the operation of the Animal Impoundment Facility shall be brought directly to the attention of the NORTH RICHLAND HILLS Animal Center Supervisor. Immediate performance complaints or concerns should be addressed by communicating the problem to the on-duty Animal Control Officer. Section 9. Venue. Venue for any legal dispute arising pursuant to this Agreement shall lie in Tarrant County, Texas. Section 10. Independent Contractor. Both parties mutually agree that NORTH RICHLAND HILLS is an independent contractor, and shall have exclusive control of performance hereunder, and that employees of NORTH RICHLAND HILLS in no way are to be considered employees of SOUTHLAKE. The employment rights of NORTH RICHLAND HILLS personnel assigned under this agreement will not be abridged. NORTH RICHLAND HILLS AND SOUTHLAKE EACH AGREE TO ACCEPT FULL RESPONSIBILITY FOR THE ACTIONS OF THEIR OWN OFFICERS, AGENTS AND EMPLOYEES IN THE OPERATION OF THE ANIMAL IMPOUND FACILITY, OR IN THE PERFORMANCE OR USE OF SERVICES UNDER THIS AGREEMENT, AND EACH PARTY HEREBY AGREES TO INDEMNIFY AND OTHERWISE HOLD HARMLESS THE OTHER PARTY, ITS OFFICERS, AGENTS AND EMPLOYEES IN BOTH PUBLIC AND PRIVATE CAPACITY AGAINST ALL LIABILITY CLAIMS, SUITS, DEMANDS, LOSSES, DAMAGES, ATTORNEY FEES, INCLUDING ALL EXPENSE OF LITIGATION OR SETTLEMENT, OR CAUSES OF ACTION OF ANY KIND WHICH MAY ARISE BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR FOR A LOSS OF, DAMAGE TO, OR LOSS OF THE USE OF ANY PROPERTY ARISING OUT OF OR IN ANY WAY CONNECTED TO THE INTENTIONAL OR NEGLIGENT ACTS OR OMISSIONS OF THAT PARTY, ITS OFFICERS, AGENTS OR EMPLOYEES, IN THE OPERATION OF THE ANIMAL IMPOUND FACILITY, OR IN THE PERFORMANCE OR USE OF SERVICES UNDER THIS AGREEMENT. It is expressly understood and agreed that, in the execution of this Agreement, NORTH RICHLAND HILLS and SOUTHLAKE do not waive, nor shall be deemed hereby to waive any immunity or defense that would otherwise be available to or against claims arising in the exercise of governmental functions relating hereto or otherwise. By entering into this Agreement, NORTH RICHLAND HILLS and SOUTHLAKE do not create any obligations express or implied, other than those set forth herein, and this Agreement shall not create any rights in any parties not signatory hereto. Section 12. Destruction of facility. In the event that the animal control facilities is damaged due to a natural or a man made disaster and is unusable, NORTH RICHLAND HILLS shall be relieved from all its responsibilities under this contract. Section 13. Approval of Contract. This Agreement has been approved by the governing bodies of NORTH RICHLAND HILLS and SOUTHLAKE, respectively. The execution of this Agreement has been authorized by an act of the governing bodies of NORTH RICHLAND HILLS and SOUTHLAKE at a duly called and posted meeting. IN WITNESS WHEREOF, we have hereunto set our hands this the day of , 2006, in duplicate originals. CITY OF NORTH RICHLAND HILLS, TEXAS CITY OF SOUTHLAKE, TEXAS By: Larry J. Cunningham City Manager APPROVED AS TO FORM AND LEGALITY: George Staples, Attorney City of North Richland Hills By: Shana Yelverton City Manager Attorney for Southlake CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 8-26-2008 Agenda No. F.2 Subject: GN 2008-077 Authorize the City to Continue Participating with the Atmos Cities Steering Committee -Resolution No. 2008-049 The Atmos Cities Steering Committee (ACSC) is the largest coalition of cities served by Atmos Gas-Mid Tex (formerly TXU Gas). There are 154 ACSC member cities, which represent more than 60 percent of the total load served by Atmos-Mid Tex. Cities have original jurisdiction over the natural gas rates Atmos charges all customers within city limits. Because Atmos has no competitors, regulation of the rates that it charges its customers is the only way that cities can ensure that natural gas rates are fair. Working as a coalition to review the rates charged by Atmos allows cities to accomplish more collectively than each city could do acting alone. With the increased volatility of the natural gas market resulting in unprecedented high natural gas bills over the past several years, city regulation of Atmos' rates plays a crucial role in protecting city budgets and taxpayers. ACSC has taken the lead at the local level, before the Railroad Commission, and at the Legislature to save money for Cities and ratepayers. A couple of recent accomplishments include: • ACSC action led to negotiations with Atmos after they requested a rate increase of $52 million in September 2007. Negotiations resulted in a $10 million rate increase instead of $52 million. • ACSC also has opposed all Gas Reliability Infrastructure Program (GRIP) filings as piecemeal ratemaking because Atmos was able to receive a rate increase simply by showing a change in their invested capital instead of a more comprehensive review of all of the components that affect rates. ACSC negotiated with Atmos to undertake a three year experiment, creating a Rate Review Mechanism (RRM) tariff process to replace GRIP ratemakings. This is a more comprehensive process that allows cities the opportunity to review information regarding changes to Atmos' revenues and expenses as well as its invested capital. The City of North Richland Hills is currently a member of the ACSC and is requesting to continue that membership. If Council approves Resolution 2008-049, it will authorize the City to continue its membership with ACSC and authorize payment of the City's assessment to the ACSC in the amount of five cents per capita, or $3,202.50. Recommendation: Approve Resolution No. 2008-049. RESOLUTION NO. 2008-049 A RESOLUTION AUTHORIZING CONTINUED PARTICIPATION WITH THE ATMOS CITIES STEERING COMMITTEE; AND AUTHORIZING THE PAYMENT OF 5 CENTS PER CAPITA TO THE ATMOS CITIES STEERING COMMITTEE TO FUND REGULATORY AND RELATED ACTIVITIES RELATED TO ATMOS ENERGY CORPORATION. WHEREAS, the City of North Richland Hills is a regulatory authority under the Gas Utility Regulatory Act (GURA) and has exclusive original jurisdiction over the rates and services of Atmos Energy Corporation, Mid-Tex Division (Atmos) within the municipal boundaries of the city; and WHEREAS, the Atmos Cities Steering Committee (ACSC) has historically intervened in Atmos rate proceedings and gas utility related rulemaking to protect the interests of municipalities and gas customers residing within municipal boundaries; and WHEREAS, ACSC is participating in Railroad Commission dockets and projects, as well as court proceedings, affecting gas utility rates; and WHEREAS, the City is a member of ACSC; and WHEREAS, in order for ACSC to continue its participation in these activities which affects the provision of gas utility service and the rates to be charged, it must assess its members for such costs; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. That the City is authorized to continue its membership with the Atmos Cities Steering Committee to protect the interests of the City of North Richland Hills and protect the interests of the customers of Atmos Energy Corporation, Mid-Tex Division residing and conducting business within the City limits. SECTION 2, It is further authorized to pay its assessment to the ACSC in the amount of five cents ($0.05) per capita based on the population figures for the City shown in the latest TML Directory of City Officials. SECTION 3, A copy of this Resolution and approved assessment fee payable to "Atmos Cities Steering Committee" shall be sent to: Mary Bunkley, Treasurer Atmos Cities Steering Committee c/o Arlington City Attorney's Office, Mail Stop 63-0300 Post Office Box 90231 Arlington, Texas 76004-3231 PASSED AND APPROVED this the 26th day of August, 2008. By: ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS 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: Planning and Development Council Meeting Date: 8-26-2008 Presented by: John Pitstick Agenda No. F.3 Subject: GN 2008-078 Award a Professional Services Agreement in the amount of $85,000 to Gateway Planning Group for Development of a Mixed Use Transit Oriented Development Code to Encourage Development around the Iron Horse and Smithfield Commuter Rail Station Sites In the 2006-07 adopted budget City Council approved $85,000 in capital funds for developing a sustainable development strategy and ordinance to begin the process in creating a transit oriented mixed use district around the two future commuter rail station sites (Iron Horse and Smithfield). A map showing the locations of the two future rail sites is attached. North Richland Hills has been at the forefront of sustainable development planning for a number of years. Starting with the inception of the Home Town plan in 1998 and continuing during the next ten years with ongoing efforts by City Council and staff with the 2004 Regional Rail Corridor Study which identified the two future rail stations in North Richland Hills. The City also applied for and received the 2006 Council of Governments sustainable planning grant; the City participated in the 2007 SW to NE Rail Corridor Study that has refined rail station planning efforts and the recent November 12, 2007 Comp Plan Update that identified mixed use planning districts around Iron Horse and Smithfield. Staff received direction from City Council at the May 27, 2008 Work Session to proceed with Request for Qualifications from consultants for a Mixed Use Transit Oriented Development Code. On June 13, 2008 Request for Qualifications were posted and fourteen firms received formal mailed copies of the request. On Friday, July 11, 2008 three applications from consultants were received. The three firms who submitted qualifications were HDR, Kimley Horn/Townscape and Gateway Planning Group. Key city staff members from Public Works, Planning & Inspections and City Manager's Office were included on a selection team and interviewed the three firms on Friday, July 25, 2008. After the completion of interviews the selection team unanimously selected Gateway Planning Group as the best capable consultant for this project. Following verification of references, staff began negotiations with Gateway Planning Group and is bringing the agreement to Council at this time. The total price will not exceed the budgeted amount of $85,000. The Gateway Planning Group team includes Scott Polikov, president of the company, Jay Narayana, project manager and Milosav Cekic, architect. Mr. Polikov has extensive experience in sustainable development codes throughout the state. He serves as a member on the City of Fort Worth Downtown Design Review Board. A recent local project completed by Gateway Planning Group includes downtown plans for Burleson, Roanoke and Duncanville. Mr. Polikov will be available to answer any questions at the Council meeting. This planning study will consists of two joint meetings or work sessions with City Council and Planning and Zoning members. Staff will discuss some possible meeting times for these joint meetings during the August 26, 2008 Work Session. The dates that staff will discuss with Council during the Work Session are November 20, 2008 and February 5, 2009. If these dates do not work for the joint Planning & Zoning and City Council work sessions then other dates will be discussed. Recommendation: To approve the professional services agreement for the development of a mixed use transit oriented development code to Gateway Planning Group, Inc. in the amount of $85,000 and authorize the City Manager to execute such agreement. Location Map PROPOSED RAIL STATIONS v 4 ~ ~ t~ ~ I { HiGHTO'rYER DR ~ r'' AIAtrNDSDN UR (~Il HLANL~ --- I i I ~. (, `_~ ` $udTHFIELD 12,^"M'adiw a'r~rxsoez~ , I DISTRICT '~ ~,,°Aasssswsa~ae~m ~ .apN n ---- -~-~-- "~ cea .. ,,~ y0 w TRANSIT CONCEPT ~ 5 '~ a ~ ,. ' ~ MAP 3 a ~~ 0 Rai! Sta~fon V/ciniUes ct1APh1AN RD ~ ~ y "~ r ~ ~ • ~t~ O v ~ N~ ~ ~ A `L s 2 ~~ w ~ O IUARTINpR i Legend y ~ < ~ W ~ '~ r~'f Mya Employmeix ~ ~ _ ,r ~ #~xa-~ 3 ~ ~ D `~° ~ - getD•GttES BLVD HomeTrasr g BLVD aia.emc Traa SYaMm _ .~ \~,G\S\~. ~estrears~ _«__«T ~ ! Major leMaraaCOOM MIDC'T1E5 B{VD- .. ~seraaNt,s s€axt,a~+~ ~ n ~° ~ ~ ~ Rail Stawn Yr,.arkwc ~ ,~.- ' ~, • PoanYol Ral Sib H ~ Bll~ IsMvM wqh ~ ~2 mw rad~usl ,,.- / GF , c f ~t 1~`~.J ``, ... Z ...« .' nN ygRSE BL'JD !. CFCtR ~ ~ L`` IRON HORSE ~ ' ~ ~ `". - ~ WORTH RICHLAND B~VC ~««~« ~ ~ DISTRICT +n m~e+.w„:~ ~ ~ ""~ \.\ ~ ~ n ~ ~ iHIAt;JAD U!t ~ \\ . ¢. yYtvlhG QN:., ., ~ s i ~ "~' ~ ,F F'~rERALD H'Lig~ ~~ ,p BROWN paC~ ~p - ~.gy ~ ~~' aP Y~ ? ~ # '1i RO <p ~' ~ U+CK LE WtS OR t.OLA UR ,r. r\ ~ ~ ~~ ~ ? HARWOODRD h o , s s ~ '~ LOLPOp 1 h1APtEWWDAV C ~FR.NY1 sa SAKES Dt~ A ~ „ate M {~~~~~ax ODR: n, 4" 2 r g ~~ ~ • ~ ~ ~ AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF NORTH RICHLAND HILLS AND GATEWAY PLANNING GROUP This Agreement is executed by and between the City of North Richland Hills, a municipal corporation located in Tarrant County, Texas, acting by and through Larry J. Cunningham, its duly authorized City Manager (hereinafter called "CITY"), and Gateway Planning Group, a Texas corporation, acting by and through Scott Polikov; its duly authorized Principal (hereinafter called "CONSULTANT"). WITNESSETH, that CITY desires professional services in connection with the development of a Mixed Use Transit Oriented Development Code. NOW, THEREFORE, CITY and CONSULTANT, in consideration of the mutual covenants and agreements herein contained, do mutually agree as follows: 2. PROJECT In this Agreement, the "PROJECT" means the consulting services for the development of a Mixed Use Transit Oriented Development Code in accordance with applicable CITY codes, regulations and standards. 3. BASIC AGREEMENT CONSULTANT is an independent contractor and undertakes and agrees to perform professional services in connection with the PROJECT, as stated in the sections to follow. It is understood and agreed that CONSULTANT is not and will not by virtue of this contract be deemed to be an agent or employee of CITY and that CITY will not be entitled to direct the performance by CONSULTANT's employees or subcontractors of the tasks contemplated by this contract. All professional services shall be performed with diligence and in accordance with professional standards customarily obtained for such services in the State of Texas. For rendering such services CITY agrees to pay CONSULTANT as set forth in Section 5: "Compensation". 4. SCOPE OF PROFESSIONAL SERVICES CONSULTANT shall render the professional services necessary for development of the PROJECT, as detailed in Exhibit A: "Scope of Professional Services" and in accordance with the schedule in Exhibit C: "Project Schedule", said exhibits being attached hereto and incorporated herein for all purposes. CONSULTANT shall be responsible, to the level of competency presently maintained by other practicing professionals in the same type of work in the Dallas/Fort Worth Metroplex area, for professional and technical soundness, accuracy, and adequacy of all designs, drawings, specifications, and other work and materials furnished under this Agreement. 5. SCOPE OF CITY SERVICES The CITY will furnish items and perform those services as identified in Exhibit "B" Scope of City Services. 6. COMPENSATION CITY shall pay CONSULTANT a fixed fee not to exceed $85,000.00. CONSULTANT shall invoice client on a monthly basis pursuant to a percentage completion of the tasks delineated herein. All invoices shall be due upon presentation and payable within thirty (30) days. Ordinary expenses such as travel and overhead shall be borne by the contractor. Extraordinary expenses not anticipated by this contract shall be paid by the City if the City deems that the expenses are necessary for the performance of this contract. All other services undertaken by CONSULTANT and authorized by CITY beyond those specified in Exhibit "A" shall be compensated at the rate of $250.00 per hour for principals, $175.00 per hour for senior designers and planners, $125.00 per hour for designers and planners, and $95.00 per hour for professional support staff. Contractor may sub-contract any portion of the Services set forth on Exhibit "A"; provided, however, any increase in fees or compensation due to the use of such sub-contracted services shall be approved in writing and signed by CITY. 6. OWNERSHIP OF DOCUMENTS All completed or partially completed evaluations, reports, surveys, designs, drawings and specifications prepared or developed by CONSULTANT under this Agreement, including any original drawings, computer disks, mylars or blue lines, shall become the property of CITY when the Agreement is concluded or terminated, and may be used by CITY in any manner it desires; provided, however, that CONSULTANT shall not be liable for the use of such drawings for any project other than the PROJECT described in this Agreement. CONSULTANT retains at all times co-ownership of all work product resulting from this Agreement and may utilize it for any purposes including, without limitation, marketing after the project has been completed and final payment authorized by the CITY. 7. INDEMNITY Each party agrees to indemnify and hold the other party, its heirs, assigns, successors, administrators, and representatives harmless of and from any and all claims, actions, liabilities, losses, damages, suits or causes of action brought by any third party, person or entity as a result of any incident, event or occurrence giving rise to such claims, to the extent such claims, actions, liabilities, losses, damages, suits or causes of action are caused by any negligent act, error or omission of the indemnifying party or any person or organization for whom indemnifying party is legally liable. 8. INSURANCE During the term of this Agreement, Contractor shall keep in force General Liability and Professional Liability Insurance coverage up to $1,000,000.00 per occurrence and $1,000,000.00 in aggregate total coverage. CONSULTANT's liability for any cause or combination of causes is, in the aggregate, limited to an amount no greater than the available professional liability coverage. 9. ARBITRATION No arbitration arising out of or relating to this Agreement shall occur without both parties' written approval. 10. TERMINATION AND SUSPENSION A. CITY may terminate this Agreement at any time for convenience or for any cause by a notice in writing to CONSULTANT. Either CITY or CONSULTANT may terminate this Agreement in the event the other party fails to perform in accordance with the provisions of this Agreement. Upon receipt of such notice, CONSULTANT shall immediately discontinue all services and work and the placing of all orders or the entering into contracts for supplies, assistance, facilities, and materials, in connection with the performance of this Agreement and shall proceed to cancel promptly all existing contracts insofar as they are chargeable to this Agreement. B. If CITY terminates this Agreement under the foregoing Paragraph A, CITY shall pay CONSULTANT a reasonable amount for services performed prior to such termination up to the date of termination of this Agreement in accordance with the method of compensation stated in Section 6: "Compensation" hereof. In the event of termination, the amount paid shall not exceed the amount appropriate for the percentage of work completed. 11. AUTHORIZATION, PROGRESS, AND COMPLETION CITY and CONSULTANT agree that the PROJECT is planned to be completed in accordance with the Exhibit C: "Project Schedule" which is attached hereto and made a part hereof. CONSULTANT shall employ manpower and other resources and use professional skill and diligence to meet the schedule; however, CONSULTANT shall not be responsible for schedule delays resulting from conditions beyond CONSULTANT's control. With mutual agreement, CITY and CONSULTANT may modify the Project Schedule during the course of the PROJECT and if such modifications affect CONSULTANT's compensation, it shall be modified accordingly, subject to City Council approval. For Additional Professional Services, the authorization by CITY shall be in writing and shall include the definition of the services to be provided, the schedule for commencing and completing the services and the basis for compensation as agreed upon by CITY and CONSULTANT. It is understood that this Agreement contemplates the full and complete professional services for this PROJECT including any and all services necessary to complete the work as outlined in Exhibit A: "Scope of Professional Services". Nothing contained herein shall be construed as authorizing additional fees for services to provide complete services necessary for the successful completion of this PROJECT. 12. SUBCONTRACTS CONSULTANT shall be entitled, only if approved by CITY, to subcontract a portion of the services to be performed by CONSULTANT under this Agreement. The sub- contract services of M/CA Architects (Milosav Cekic) are hereby authorized. 13. EXHIBITS Both parties agree to the following exhibits and as such, the following exhibits are made a part of this Agreement: Exhibit "A" Scope of Professional Services Exhibit "B" Scope of City Services Exhibit "C" Project Schedule 14. MISCELLANEOUS A. Auth orization to Proceed. Signing this Agreement shall be construed as authorization by CITY for CONSULTANT to proceed with the work, unless otherwise provided for in the authorization. B. Notices. Any notice or correspondence required under this Agreement shall be sent by certified mail, return receipt requested, or by personal delivery and shall be effective upon receipt, if addressed to the party receiving the notice or correspondence at the following address: If to CONSULTANT: Gateway Planning Group, Inc. Attn: Scott Polikov 101 Summit Avenue, Suite 318 Fort Worth, Texas 76102 If to CITY: City of North Richland Hills Attn: John Pitstick Director of Planning & Development 7301 N.E. Loop 820 North Richland Hills, Texas 76180 C. Independent Contractor. CONSULTANT shall perform services hereunder as an independent contractor, and not as an officer, agent, servant or employee of the CITY and CONSULTANT shall have the exclusive right to control services performed hereunder by CONSULTANT, and all persons performing same, and shall be responsible for the negligent acts and omissions of its officers, agents, employees, and subconsultants. Nothing herewith shall be construed as creating a partnership or joint venture between CITY and CONSULTANT, its officers, agents, employees and subconsultants; and the doctrine of respondent superior has no application as between CITY and CONSULTANT. D. Venue. This Agreement shall be governed by the laws of the State of Texas, and venue in any proceeding relating to this Agreement shall be in Tarrant County, Texas. E. Entire Agreement. This Agreement represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both CITY and CONSULTANT. F. Severability. If any provision in this Agreement shall be held illegal by a valid final judgment of a court of competent jurisdiction, the remaining provisions shall remain valid and enforceable. G. Assignment. CITY and CONSULTANT each bind themselves and their successors, executors, administrators and assigns to the other party in respect to all covenants of this Agreement; except as above, neither CITY or CONSULTANT shall assign, sublet or transfer its interest in this Agreement without the written consent of the other. Nothing herein shall be construed as creating any personal liability on the part of any officer or agent of CITY. H. Disclosure. By signature of this Agreement, CONSULTANT warrants to CITY that it has made full disclosure in writing of any existing conflicts of interest or potential conflicts of interest, including personal financial interests, direct or indirect, in property abutting the PROJECT and business relationships with abutting property owners. CONSULTANT further warrants that it will make disclosure in writing of any conflicts of interest which develop subsequent to the signing of this Agreement and prior to final payment under this Agreement. This Agreement is executed in two (2) counterparts. IN TESTIMONY WHEREOF, the parties hereto have executed this Agreement this the day of . 20 CITY OF NORTH RICHLAND HILLS (CITY) By: Larry J. Cunningham, City Manager Date: ATTEST: City Secretary Texas Gateway Planning Group, Inc. (CONSULTANT) By: Scott Polikov, Principal Date: ATTEST: Notary Public in and for the State of Type or Print Notary's Name My Commission Expires: CI TY SEAL CORPORATE SEAL EXHIBIT A SCOPE OF PROFESSIONAL SERVICES FOR MIXED USE TRANSIT ORIENTED DEVELOPMENT CODE Gateway Planning Group, Inc. and its subcontractors shall undertake the tasks and provide the deliverables as follows: 1. Undertake background analysis including reviewing previous plans and ongoing planning efforts; coordinate with NCTCOG and its consultants, as well as The T for implementation of the commuter rail line as it relates to the Mixed Use Planning Areas. 2. Undertake stakeholder interviews of key landowners in the respective Mixed Use planning areas. 3. Undertake one-day design workshops for each of the two Mixed Use Planning Areas. 4. Provide a conceptual station-area plan for each of the two Mixed Use Planning Areas based on prior plans, new stakeholder input, City's goals, NCTCOG/The T's transit goals in order to craft the implementing code. 5. Undertake a work session with city staff to agree on appropriate structure of code to implement Mixed Use Area Plans. 6. Undertake an initial work session with P&Z and City Council to secure concurrence on project approach; more specifically, structure and assumptions for d raft code. 7. Develop a draft code for implementation of the Mixed Use Planning Areas. 8. Undertake a work session with P&Z and City Council to review plan and draft code 9. Support formal adoption process of plan and code. 10. Review existing Town Center Code and provide recommendations in memorandum for possible revisions. EXHIBIT B SCOPE OF CITY SERVICES CITY shall perform tasks or secure additional services, as necessary for implementation of the Services as described herein, including the following: • CITY will secure any available services of NCTCOG professional staff as part of an existing sustainable development planning grant for support of the initiative including linkages and integration of transportation modes and phasing including preparation and participation of in workshops and compilation of prior studies and ongoing studies. • Base Maps and necessary GIS information • Arrangement of stakeholder meetings, workshops and any other meetings requiring third-party participation, as well as notifications and support information • Necessary printing and plotting EXHIBIT C PROJECT SCHEDULE FOR MIXED USE TRANSIT ORIENTED DEVELOPMENT CODE Date(s) Event Who August 26, 2008 Consultant contract Gateway (Scott) and City approved by City Council September 5 (9:00 a.m. to Project kick off meeting Gateway (Scott & Jay), city noon) staff, The T, and NCTCOG September 29/30 Stakeholder Meetings Gateway (Scott & Jay), city October 1 staff and stakeholders Week of October 13 - 17 (2 Design Workshop (1 day for Gateway (Scott, Jay, & days) each station area; 2 Milosav), city staff, key consecutive days) stakeholders, T staff, NCTCOG staff October 29 Meeting with staff to Gateway (Scott & Jay) and discuss code options city staff November 20 Joint P&Z and CC work Gateway (Scott & Jay) and session on workshop city results and code options Nov/Dec Draft code Gateway Jan/Feb 2009 Review draft code with city Gateway and city staff staff Feb 5, 2009 Joint P&Z and CC work Gateway and city session on draft code March 19, 2009 P&Z public hearing and Gateway and city recommendation April 13, 2009 City Council public hearing Gateway and city and adoption CITY OF NORTH RICHLAND HILLS Department: Support Services Presented by: Thomas Powell Council Meeting Date: 8-26-2008 Agenda No. F.4 Subject: GN 2008-075 Compliance with Senate Bill 12 Emissions Reduction Plan - Resolution No. 2008-048 In 2007, the 80t" Legislature passed Senate Bill 12 which extended the timeline set in Senate Bill 5 for the Emissions Reduction Plan. The original plan required political subdivisions in 38 counties to set a goal to reduce electrical consumption by five percent per year for five years starting January 1, 2002. Senate Bill 12 extends this time for an additional six years, added three more counties, and requires school districts to participate. Political subdivisions are required to pass a resolution showing their commitment for reducing electrical consumption and agreeing to file annual reports to the State Energy Conservation Office. For the past five years the City has received certification from the State Energy Conservation Office that we have met the goals established in Senate Bill 5. We have done this a number of ways: • Installation of lighting controls; • Installation of energy efficient HVAC systems replacing less efficient systems; • Installation of HVAC control systems at City Hall and set back thermostats in other buildings; • Installation of window tinting on certain windows to reduce heat inside buildings; • Installation of awnings over certain windows to reduce heat inside buildings; • Installation of T8 energy efficient lighting in all city facilities. As mentioned in the attached resolution, we will continue to look for ways to reduce electrical energy consumption in the coming years. Recommendation: Approve Resolution No. 2008-048 RESOLUTION NO. 2008-048 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: 1. As outlined in Senate Bill 12, the City of North Richland Hills agrees to undertake cost effective energy efficiency projects on existing facilities that will result in the reduction in the use of electricity. 2. As the City continues its commitment to energy efficiency, the City hereby establishes the goal to reduce electric consumption by 5% a year for the next six years, recognizing the goal may be difficult to achieve due to energy reduction measures already put in place by the City of North Richland Hills since 1998. 3. The City will file annual reports as required to the State Energy Conservation Office (SEGO) on the results and progress being made. PASSED AND APPROVED this the 26th day of October, 2008. By: ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Thomas Powell, Support Services Director CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. G.0 Subject: EXECUTIVE SESSION ITEMS CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8-26-2008 Presented by: Agenda No. G.1 Subject: Action on Any Item Discussed in Executive Session Listed on Work Session Agenda Department: City Manager's Office Presented by: Larry Cunningham Council Meeting Date: 08-26-2008 Agenda No. G.1 Suoject: Agreement for Mineral Leases of Fossil Creek Park, Linda Spurlock Park and Walker Creek Over the past several years, the Barnett Shale natural gas field has become one of the busiest natural gas fields in the country with drilling and production activity occurring all over North Central Texas. The City of North Richland Hills passed a gas drilling regulatory ordinance to ensure the public safety and minimize the impact of drilling and production activities on the City's residents and the environment. On June 20, 2006, the City entered into mineral leases with FSOC Gas Company, Ltd. for 58.42 acres at Fossil Creek Park and Linda Spurlock Park. The lease terms were for two years and included provisions to protect the City's interests. The City received a signing bonus of $3,000 per acre and 25% royalties. After execution of the original lease, FSOC Gas Company, Ltd. was acquired by Chesapeake Energy Corporation (Chesapeake). On September 10, 2007, an additional 10.5 acres of Fossil Creek Park were added to the existing mineral lease, now owned by Chesapeake. The City received $3,000 per acre for the additional acreage and 25% royalties. The lease expiration dates remained June 20, 2008 and these leases have now expired. Chesapeake is seeking three year (36 month) leases on 68.92 acres in Fossil Creek Park and Linda Spurlock Park, and 40.88 acres in Walker Creek. For the leases at Fossil Creek Park, Linda Spurlock Park and Walker Creek, which total 109.80 acres, the City has been offered $22,000 per acre and 25% royalties. Negotiations between Chesapeake and the City have been extensive. Chesapeake has tendered this offer as a final offer and has indicated that, if not accepted, they will "move forward in developing the lands surrounding the City of North Richland Hills leases in question, and then in turn, said lands would be left undeveloped without the possibility for the City to receive any future revenues from royalties paid for these formed units.n Under these terms, the leases would expire on August 26, 2011. A public hearing is required for all new leasing in dedicated public parks. A public hearing was held for Fossil Creek Park and Linda Spurlock Park on March 27, 2006. A public hearing is not required to consider gas leasing at Walker Creek because this property was dedicated to the City as a drainage easement. Recommendation: Approve leases with Chesapeake for 68.92 acres in Fossil Creek and Linda Spurlock Parks for $22,000 per acre and 25% royalty for a term of 1 year, and for 40.88 acres at the Walker Creek area for $22,000 per acre and 25% royalty for a term of 2 years. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. H.0 Subject: INFORMATION AND REPORTS CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Councilman Tim Welch Council Meeting Date: 8-26-2008 Agenda No. H.1 Subject: Announcements -Councilman Lewis Announcements City Hall and other City offices will be closed on Monday, September 1st, in observance of the Labor Day holiday. Garbage and recycling will not be collected by Duncan Disposal on Labor Day. Monday collections will shift to Tuesday and Tuesday collections will be made on Wednesday. The North Richland Hills City Council will hold a special meeting at 6 p.m. on Tuesday, September 2nd, here in the City Council Chambers. The purpose of this special meeting is to conduct a public hearing on the tax rate. The Companies in Action Table Tennis Tournament will be held on Saturday, September 6th at the NRH Recreation Center. Local businesses interested in competing in this event should call 817-427-6600 for more details. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Rickie McMahan and Ron Hernandez, Public Works Utility Division A letter was received from a resident commending Rickie and Ron for their quick response to a busted water pipe. They were extremely courteous and professional and performed admirably. The resident said it was a job well done. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 8-26-2008 Agenda No. H.2 Subject: Adjournment