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HomeMy WebLinkAboutCC 2012-03-26 AgendasCITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, March 26, 2012 6:00 P.M. A.0 Discuss Items from Regular City Council Meeting A.1 Fire Department 2011 Annual Report - 10 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 551.071, Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1) State of Texas v. City of North Richland Hills (No. 2011 - 002840 -1); and 2) State of Texas v. City of North Richland Hills (No. 2011 - 000462 -1) B.2 Executive Session: Pursuant to Section 551.072, Texas Government to deliberate the purchase, exchange, lease or value of real property in the southeast quadrant of the City C.0 Adjournment Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on March 23, 2012 at 9VZWI 1 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. NRH City Council Agenda — March 26, 2012 Page 1 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, March 26, 2012 7:00 P.M. Hard 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: ❑ City Hall on the day of the meeting Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 10 a.m. the day of every regularly scheduled Council meeting. A.0 Call to Order - Mayor Trevino A.1 Invocation - Councilman Rodriguez A.2 Pledge - Councilman Rodriguez A.3 Special Presentation(s) and Recognition(s) No items for this category. 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 the 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. NRH City Council Agenda — March 26, 2012 Page 2 of 4 B.1 Approval of Minutes of March 5, 2012 City Council Meeting B.2 GN 2012 -023 Amend Resolution No. 2012 -002 to Amend the Designation of the City's Voting Precincts as Established by Tarrant County following Redistricting - Resolution No. 2012 -009 B.3 GN 2012 -027 Amend Section 6 -31 of the Code of Ordinances granting a variance for the NRH Centre B.4 GN 2012 -024 Approve 2012/2013 Solid Waste Implementation Project Application for Household Hazardous Waste Mobile Collection Event Grant Funding - Resolution No. 2012 -010 B.5 PU 2012 -011 Award RFB No. 12 -005 for Electrical and Lighting Services to Cable Electric as the Primary contractor and Facility Solutions Group as the Secondary contractor B.6 PU 2012 -013 Approve Purchase of High Pressure Jetting Equipment from Texas Municipal Equipment, LLC in the amount of $52,174.19 C.0 PUBLIC HEARINGS C.1 ZC 2012 -02 Public Hearing and Consideration of a Request from the Community Enrichment Center to revise the Site Plan of an existing Planned Development (PD 7) located at 6250 NE Loop 820 - Ordinance No. 3193 C.2 TR 2012 -01 Public Hearing and Consideration of amendments to Sections 118 -631 "Table of Permitted Uses" and 118 -001 "Definitions" of the North Richland Hills Zoning Ordinance. Proposed amendments include the addition of the following two previously unlisted uses to the table: Secondhand Dealer and Precious Metal Dealer as well as the definitions of these uses and other terms - Ordinance No. 3188 C.3 TR 2012 -02 Public Hearing and Consideration of 2012 Comprehensive Land Use Plan Map - Ordinance No. 3191 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. D.1 GN 2012 -026 Award a Professional Services Agreement in the amount of $49,500 to Needham McCaffrey Associates for Development of an Iron Horse Core Development Plan E.0 PUBLIC WORKS E.1 PW 2012 -006 Authorize the City Manager to Execute a Professional Service Agreement with the RJN Group, Inc. in the Amount of $153,185 for Utility Capital Project UT1203 NRH City Council Agenda — March 26, 2012 Page 3 of 4 E.2 PW 2012 -008 Approve a Utility Assembly (820 -U- 0508 - 0001 /Fiber Optic Cable) for the City's Utility Relocations as Part of the North Tarrant Express Project F.0 GENERAL ITEMS F.1 GN 2012 -021 Presentation of Fiscal Year 2011 Audited Financial Report F.2 PU 2012 -012 Award a contract to Dunaway Associates, L.P., in the amount of $52,100 for Professional Services for the Adventure World Playground Renovation Project (RFQ 12 -008) F.3 GN 2012 -025 Rescheduling of the May 28, 2012 City Council Meeting to May 21, 2012 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 Whitson H.2 Adjournment All items on the agenda are for discussion and /or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on March 23, 2012 at ' 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. NRH City Council Agenda — March 26, 2012 Page 4 of 4 City of North Richland Hills Work Session Work Session Meeting Agenda North Richland Hills City Hall City Council Workroom 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, March 26, 2012 6 P.M. A.0 Discuss Items from Regular Citv Council Meeting A.1 Fire Department 2011 Annual Report - 10 Minutes B.0 EXECUTIVE SESSION - The Citv 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 551.071, Texas Government Code for Consultation with Attornev regardinq Pendinq Litiqation - 1) State of Texas v. Citv of North Richland Hills (No. 2011- 002840 -1): and 2) State of Texas v. Citv of North Richland Hills (No. 2011- 000462 -1) B.2 Executive Session: Pursuant to deliberate the purchase, exchange southeast quadrant of the Citv Section 551.072, Texas Government to lease or value of real property in the C.0 Adiournment M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.a Discuss Items from Regular City Council Meeting M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.1 Fire Department 2011 Annual Report - 10 Minutes Presenter: Andy Jones, Fire Chief Summarv: The attached 2011 Annual Report summarizes the activities of the Fire Department in supporting the safety and security of the citizens in our community. We trust that you find the information in this report to be informative and useful. General Description: In 2011 the Fire Department provided an exceptional level of emergency fire, rescue and Advanced Life Support (ALS) ambulance response to the citizens and visitors in North Richland Hills. In addition to the emergency service delivery, the Fire Department also provided fire and life safety inspection services to our business community and a broad spectrum of public safety education services to our schools, nursing homes and businesses. During the year, the Fire Department responded to some 6,855 calls with 4,832 of them being EMS calls. We completed 1,085 fire and life safety inspections and cleared 96 % of the hazards identified. We responded to the West Texas wild fires in February and April as a part of the NEFDA Task Force when called under the Texas Intrastate Fire Mutual Aid System (TIFMAS). We conducted 109 Station Tour and Engine Demos for 4,094 visitors. We provided 121 Public Safety Education programs with 2,576 people in attendance. We completed Citizens Fire Academy (CFA) Class # 14 with seventeen citizen graduates. We completed Community Emergency Response Team (CERT) Classes # 10 & 11 with 58 citizen graduates. During 2011 our average response times increased slightly over 2010 from 5 minutes, 4 seconds to 5 minutes, 13 seconds. The percentage of our responses in 5 minutes or less decreased from 53% in 2010 to 50% in 2011. We feel that these changes can be attributed to increased traffic congestion along most major response corridors. 2oia A-tnunti atll Report t 'Ltty of - oirtth ] i'kchlatnd IH'Llls, Texas Fire ID(elpaturittnntetnttt _M +Ciw of North Richland Hills C 'Lty COU111 LI Meirrtbeir s 2011 Mayor Oscar Trevino Mayor Pro Te m Tim Barth Place 7 Sixto (Tito) Rodriguez Place 3 Tam Lombard Place 2 Ken Sapp Place 6 Scott Turnage f•' Message From the Chief As a proud member of the (North Richland Hills Fire Department, it is my privi- lege to be able to work with and lead the finest group of fire and emergency service professionals in this business. I believe that our Fire Department is one of the best in the State of Texas. I think these men and women demon- strate every day their versatility, dependability and commitment to the safety and well being of our community. They wholeheartedly support the Mayor and Council's goal for "Safety and Security" in our City. This diverse team of professionals is made up of caring problem solvers that will find a way to help you when you are having a really bad day. We truly are a total "Fire and Emergency Services" provider. Our Firefighters stand vigilant and ready to serve the citizens and visitors of our City 24 hours a day, every day of the year! We had another very busy year in 2011. • We responded to some 6,855 calls for service, with 4,832 of them being EMS calls. • We completed 1,085 fire and life safety inspections and cleared 96% of the hazards identified. • We responded to the West Texas wild fires in February and April as a part of the NEFDA Task Force when called under the Texas Intrastate Fire Mutual Aid System (TIFMAS). • We conducted 109 Station Tour and Engine Demos for 4094 visitors. • We provided 121 Public Safety Education programs with 2,576 people in attendance. • We completed Citizens Fire Academy (CFA) Class # 14 with seventeen citizen graduates. • We completed Community Emergency Response Team (CERT) Classes # 10 & 11 with 58 citizen graduates. Our firefighters demonstrate every day that they are second to none in the fire and emergency service business! I am privileged to serve as their Fire Chief, and look forward to an even better year for us in 2012. r 1' • r .. T r « 1 / • N 1 r [ r The ]F irve ]P uairs of a Modeirin ]Fire aind Emeirgency 'Service Ageiri "I I � 2 W W The North Richland Hills Fire Department strives to provide the very best possible levels of both emergency and non - emergency services for the citizens and visitors in our City. This is accomplished by emphasizing all Five Pillars of Service that a modern, progressive fire and emergency service agency should be providing for its customers. We start by stating that commitment in our Mission Statement. We follow through by providing those services every day in our community. The Five Pillars include. Public Safety Edu- cation Services, Fire Prevention and Investigation Services, Emergency Medical Services, Emer- gency Fire and Rescue Services, and Emergency Management and Homeland Security Planning. Our commitment to the Five Pillars crosses divisional lines and is embraced by all members of our Fire Department including both sworn and non -sworn members. This annual report will quan- tify some of the activities we provide in support of the Five Pillars. Our Vision. and Mission. Statements Our Vision The North Richland Hills Fire Department is an organization that provides a wide range of safety services that emphasizes emergency prevention while continu- ously improving our emergency response capabilities. Our Mission Statement The North Richland Hills Fire Department is committed to the preservation of the lives and property of the citizens of North Richland Hills, Texas. This commitment is accomplished through: Public Education; Fire Prevention and Investigation; Emergency Medical Services; Fire Suppression and Rescue Services; and Emer- gency Management and Homeland Security Planning. This commitment to our citizens and City is accomplished by the rapid response of highly competent, pro- fessional Fire Department personnel with high - quality, well- maintained apparatus and equipment. Fire Stations Fire Station #1 is located at 8001 Shadywood Lane and has four personnel assigned to it. A Quint is housed here as well as a Brush Truck and a Reserve Engine. Fire Station #1 also maintains the NEFDA (North East Fire Department Association) Squad 22 equipment. Station #1 responded to 848 calls in 2011. Fire Station #2 is located at 4001 Rufe Snow Drive. There are six personnel assigned to each shift here, as well as an Engine and a Medic (ambulance). Station #2 responded to 2,017 calls in 2011. Fire Station #3, is located at 5328 Davis (Blvd, has nine personnel assigned to each of three shifts. An Engine, an Aerial (Ladder Truck, a Medic and 'NEFDA HazMat 22 unit are located at Station #3. Station #3 responded to 2,679 calls in 2011. Fire Station #4 is located at 7245 Hightower Drive with seven personnel assigned to each shift. An Engine, a Medic, a. Brush Truck and the Shift Battalion Chief are all assigned here. Station #4 responded to 1,311calls in 2011. Fire Stations #1 and #4 both have Community Rooms available for use by the citizens of (North 'Richland Hills. In 2011, City of North Richland Hills firefighters responded to 6,855 calls. Of that number, 70% (4,832) were emergency medical calls. Fifty nine were structure fires, 21 were vehicle fires, 47 were brush /rubbish fires, and 13 were other types of fires. There were 1,011 miscellaneous calls such as smoke scares, public service, ani- mal rescues, etc. The Fire Department responded to 436 false alarms, 66 hazardous materials calls, 424 mutual aid assists, and 200 hazardous response calls such as arcing wires, bomb removals, power lines down, etc. Depaurtmeint eir ew The North Richland Hills Fire Department is made up of four major Divisions: Fire Admi nistration Fire Administration provides for the administration and management of the Fire Department. Services include personnel services, budget management, capital improvements and strate- gic planning. Operations Division The Operations Division provides emergency response services including fire suppression and rescue services, emergency medical ambulance services, hazardous materials response services and explosives response services. It also provides non - emergency services includ- ing fire and life safety inspections, public safety education, CPR training and Citizens Fire Academy classes. Operations Support Division The Operations Support Division provides the Department with training services, resource management and Emergency Medical Services (EMS) coordination with the EMS Medical Director and local hospitals. Prevention Division The Fire Prevention Division provides a number of services including public safety education programs, Fire Code compliance plan review, construction site inspections, annual fire and life safety inspections and fire origin and cause investigations. lFulre Adm*Urn*L9trat*L01n The Fire Administration Division provides strong leadership, supervision, and guidance to all Fire Department operations. The Administration Division is responsible for the management and coordination of the City's emergency management and disaster preparedness program. The Fire Chief oversees the budget, planning, and development of long term goals for the Department. The Fire Chief keeps City Administration updated on the Department's progress and development. Chief Jones has two administrative secretaries that assist in record keeping, scheduling special events, payroll and daily office tasks. r Fire Chief Administrative Secretary Budget & Administration r Administrative Secretary Payroll & Personnel Fire Administration, located at 7202 Dick Fisher Drive North, Assistant Assistant houses the Chief and Command Staff, the Fire Prevention chief Chief Operations Fire Marshal Staff, the Training Chief, the EMS Chief and the support staff. /I Emergency -\ Management - Homeland Security Coordinator I Operations Division Assistant Chief Operations Ar- ,operations Operations A Emergency Support Services Battalion Chief Shift Commander (3) Lieutenant Company Officer (1 5) 1 1 Apparatus Operator ( Firefighter (45) Battalion Chief EMS Officer ---------------------------------- Battalion Chief Training Officer � e • c . e e � lip iratIlons Division Emergre cy Services The Operations Division carries out the primary function of the Fire Department and operates out of four strategically located Fire Stations. The stations are staffed 24 hours a day, 365 days a year, with crews who are ready to help those in need. These stations house the following front line apparatus; three Paramedic Engines, one Paramedic Quint, one Aerial Ladder Truck, two brush units and three Medic Units. This Division also has the following units in reserve; two Engines, one Aerial Ladder Truck and three Medic Units. The Operations Division is composed of three Battalions who work on a three platoon system of 24 hour Shifts. Each shift has a Battalion Chief who handles the daily operations of the shift, and acts as the liaison between the shifts and Fire Administration. The Battalion Shift also serves as the Incident Commander on emergency scenes. Each Battalion Chief supervises five Lieutenants, who in turn supervise five Apparatus Operators and fifteen Firefighters. The Operations Division provides emergency fire and rescue response, public assistance, fire safety inspections and pub lic safety education services for the citizens and visitors of our City. North Richland Hills firefighters are also trained to re- spond to emergencies involving hazardous materials incidents, technical rescue situations, and explosive or suspicious devices. North Richland Hills Firefighters are trained to provide emergency medical treatment at the EMT Paramedic level. This level of training allows firefighters on Paramedic Engines to initiate advanced medical care such as starting IV therapy, ad- ministering lifesaving drugs, and attaching cardiac monitors to begin evaluating the patient before an ambulance arrives on the scene. North Richland Hills Fire Department is a member of the North East Fire Department Association (NEFDA). NEFDA pro- vides the following emergency response equipment for its members; two hazardous materials (HazMat) response units, two rescue units, two swift water rescue boats, one explosives ordinance disposal (EOD) unit, one mass casualty unit, one light and air unit and one mass decontamination unit. North Richland Hills houses and staffs the HazMat unit and the EOD unit. Operations Support Division 7ha niny The Training Section provides Department members with all local, State and Federally mandated train- ing in all of the disciplines they employ as they respond in our community. The Training Complex in- cludes modern classroom space with up -to -date audio visual equipment and technical props, a four sto- ry drill tower, a two story, state -of- the -art, natural gas fueled, live fire training lab and a drivers training pad. Training subjects cover a diverse group of topics including firefighting techniques, tactics and strategy, hazardous materials mitigation, technical rescue and explosive ordinance response, to name a few. The Chief Training Officer is responsible for planning, organizing and directing the training and profes- sional development of all members of the Fire Department. He provides oversight for all training activi- ties. The Training Officer also ensures compliance with generally accepted standards and/or operation- al requirements or recommendations by such regulatory /oversight agencies as the Texas Commission on Fire Protection (TCFP), the National Fire Protection Association (NFPA), the Occupational Safety and Health Administration (OSHA) and the Insurance Services Office (ISO), The Training Chief serves as the Department's Incident Safety Officer as needed. Opeirati�o ns Suppoirt Division Emergency Medical Services M The Emergency Medical Services Section houses an EMS Officer who is responsible for the coordina- tion and compliance with all Texas Department of State Health Services licensing requirements for !De- partment personnel and equipment. This includes all aspects of continuing education and ensuring that personnel are current in their mandated certifications with the State as well as the Department's designation as an EMS provider. Our EMS Officer acts as the liaison between the Fire Department and the Emergency Medical Director, Dr. Roy Yamada, Department of State Health Services, hospitals and other agencies in the medical community. North Richland Hills firefighters are trained to provide emergency medical treatment at the Paramedic level. This level of training allows firefighters to start IV therapy, administer lifesaving drugs, monitor EKGs and initiate advanced medical care before an ambulance arrives on the scene. Our Depart- ment and Medical Director joined with North Hills Hospital in an effort to streamline our pre - hospital treatment processes with theirs. This has significantly improved our positive patient outcomes specifi- cally as they relate to myocardial infarctions. • e e ♦ a r e Prevention Division The Prevention Division is staffed with five sworn personnel. Those personnel include the Assistant Chief /Fire Marshal, the Fire Prevention Assistant chief Lieutenant, two Fire Prevention Specialist II' and one Fire Prevention Fire Marshal Specialist I. One staff member is a sworn Peace Officer charged with the criminal investigation of fire and explosive incidents. Services provided by the Prevention Division include public safety educa- tion, annual fire and life safety inspections, Fire Code compliance plan f �, review, Fire Code permits, construction site inspections, gas well Inspec- Fire Prevention Lions, juvenile fire - setter intervention, complaint mitigation relative to Fire Lieutenant Code violation or Gas well Ordinance violations, and representing the Fire Department on the Development Review Committee. Public Safety Educa- tion is a key component of the Prevention Division. Several programs are focused on senior safety, safety education in the schools and daycares, I I commercial fire safety programs, as well as programs for the general pub- , lic. Programs include the National Fire Protection Association's (NFPA) Fire Prevention Public Safety Ed- Risk Watch Program, Skills USA, Watch Dogs, Shattered Dreams and Specialist fl (2) ucation many others. The Prevention Division plays a key role in supporting the Specialist Fire Department's Mission Statement. Fire Investigations 627 400 22 343 Engine Company Annual Inspections Number of fires investigated 1.6 13 28 24 Number of investigations cleared 9 13 26 23 Number of arson cases 8 2 2 4 Cased filed 6 2 0 0 2008 2609 2016 2011 Fire Prevention Prevention Annual Inspections 627 400 22 343 Engine Company Annual Inspections 553 774 735 742 Number of Hazards Found 1864 1.895 1.220 1.059 Percent of Hazards Corrected 98 98 96 96 Fire Investigations - 2010 vs. 2011 30 z5 zs 2s 02014 20 ■2011 15 1D 0 U Ett G►s so�'��s$s S�SFiled F►�� Ire eytlg�lo+r�s # p,� �. G� Fire Prevention - 2010 vs 2011 ■ 20'a 0 2011 1500 EMk:'Kn .,niCy Management Homeland a nod Secuurity The mission of this Office is to minimize loss of life and damage by maintaining a program that addresses preparedness, mitigation, response and recovery for all hazards. This mission is accom- plished by working in close coordination with mutual aid partners, Tarrant County, the State of Texas and federal agencies in the preparation of a program of outreach, coordination, planning, training and exercising. This Office is staffed with an Emergency Management Coordinator who serves as the City's primary liaison for emergency management, emergency preparedness and homeland security issues. This Officer coordinates Emergency Management & Homeland Security training programs, emergency operations drills, and assists all City departments with emergency mitigation and disaster planning. This Officer also manages the Emergency Operations Center (EOC) and serves as first responder to those emergency events which could have a significant impact to the City. The Office of Emergency Management offers training for the Community Emergency Response Team (CERT). This 44 -hour program trains volunteers to be able to function as first responders during a disaster until professional fire, police, and EMS units arrive. The Radio Amateur Civil Emergency Services (R.A.C.E.S.) also falls under the jurisdiction of Emergency Management. Together these two groups provide approximately 180 volunteers who donated over 3,517 hours to the City. Emergency Management The Outdoor Warning Siren System is monitored by the Office of Emergency Management and consists of ten large outdoor warning sirens located throughout the City. These sirens are activated when there is an immedi- ate danger from severe weather, a national security threat, or an environmental hazard. They are designed to warn people who are outside to go inside and turn on their local television or radio station to find out more in- formation. The Outdoor Warning System generates two different types of signals: w� STEADY TONE— indicates a threat from either a tornado or environmental hazard. RISE/FALL SIREN— indicates public danger from a national security threat. CodeRED is another program handled by the Office of Emergency Management. The CodeRED system enables the City to deliver pre - recorded emergency telephone messages to targeted areas, or the entire City at a rate of up to 60,000 calls per hour. CodeRED may be utilized during severe weather, HAZMAT emergencies, extended utility outages, drinking water contamination and other emergency situations where rapid and accurate notification is essential for life safety. The CodeRED service is provided free of charge to all North Richland Hills residents. fills In with the New! Paul Von Wahlde was hired in May 2011 as a. Firefighter/Paramedic. Paul holds a Bachelor of Science degree in Agricultural Services from Tarleton State University. Paul previously worked as a Firefighter /Paramedic for Stephenville Fire Department. FY FY FY FY 2008 2009 2 201 Total Calls for Service 6836 6565 6537 6855 Structure Fires 63 45 80 59 All Other Fires 21 22 26 13 EMS 5086 4862 4448 4832 Vehicle Fires 28 28 24 21 Brush /Rubbish Fires 37 27 36 47 False Alarm Responses 477 429 409 341 (malicious or unintentional false calls, system malfunctions, etc.) Hazardous Material Responses 67 70 67 66 Hazard Responses (arcing 232 187 192 200 wires, bomb calls, power lines down, etc.) All Other Calls (smoke scares, 825 895 873 1,01 I public service, animal rescues, etc) Mutual Aid. Responses (fire and 351 370 382 424 EMS) 20'1'1 calls for service anon 6000 4000 2000 0 , kol SW Ol e � 4e O le4 �� ey U.S. fire departments responded to an estimated 1,348,500 fires in 2009. These fires resulted in 3,090 civilian fire fatalities; 17,050 civilian fire injuries and an estimated $12,531, 000, 000 in di- rect property loss. There was a civilian fire death every 175 minutes and a civilian fire injury every 31 minutes in 2009. Name fires caused 2,565, or 85%, of the civilian fire deaths. Fires accounted for five percent of the 26,534, 000 total calls. Eight percent of the calls were false alarms; sixty -five percent of the calls were for aid such as EM'S. 2008 2009 2010 2011 Emergency Call Response Times Average Response Time 5:22 5:00 5:04 5:13 % Response Within 5 Minutes 45% 53% 53% 50% Number of Calls Under 5 Minutes Response 2671 3162 3106 3166 3400 3200 3000 2800 2 600 2400 Number of Calls Under 5 Minutes Response 3162 '1Q� 3166 2b7 2009 2009 2010 5:24 5:16 5:09 5:02 4:55 4:4$ 2011 % Response Within 5 Minutes 54% 53% 53% 52% 5436 50% 4$95 f 46% 44% 42% 40% 2008 2009 2010 2011 Average ResponseTime +` 5:22 5 :0 5:00 2008 2009 2010 2011 M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. 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 M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. B.1 Executive Session: Pursuant to Section 551.071, Texas Government Code for Consultation with Attorney regarding Pending Litigation - 1 ) State of Texas v. City of North Richland Hills (No. 2011 - 002840 -1); and 2) State of Texas v. City of North Richland Hills (No. 2011- 000462-1 ) M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. B.2 Executive Session: Pursuant to Section 551.072, Texas Government to deliberate the purchase, exchange, lease or value of real property in the southeast quadrant of the City M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. C.0 Adjournment City of North Richland Hills Regular Session City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, March 26, 2012 7:00 P.M. A.0 Call to Order - Mavor Trevino A.1 Invocation - Councilman Rodriauez A.2 Pledae - Councilman Rodriauez A.3 Special Presentation(s) and Recoanition(s) No items for this category. AA 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 the Consent Aaenda 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 March 5, 2012 Citv Council Meetina B.2 GN 2012 -023 Amend Resolution No. 2012 -002 to Amend the Desianation of the City 's Votina Precincts as Established by Tarrant Countv followina Redistrictina - Resolution No. 2012 -009 B.3 GN 2012 -027 Amend Section 6 -31 of the Code of Ordinances arantina a variance for the NRH Centre B.4 GN 2012 -024 Approve 201212013 Solid Waste Implementation Proiect Application for Household Hazardous Waste Mobile Collection Event Grant Fundinq - Resolution No. 2012 -010 B.5 PU 2012 -011 Award RFB No. 12 -005 for Electrical and Liahtina Services to Cable Electric as the Primary contractor and Facilitv Solutions Group as the Secondary contractor B.0 PU 2012 -013 Approve Purchase of Hiah Pressure Jettina Equipment from Texas Municipal Eauinment, LLC in the amount of $52.174.19 C.0 PUBLIC HEARINGS C.1 ZC 2012 -02 Public Hearina and Consideration of a Request from the Communitv Enrichment Center to revise the Site Plan of an existinq Planned Development (PD 7) located at 6250 NE Loop 820 - Ordinance No. 3193 C.2 TR 2012 -01 Public Hearina and Consideration of amendments to Sections 118- 631 "Table of Permitted Uses" and 118 -001 "Definitions" of the North Richland Hills Zonina Ordinance. Proposed amendments include the addition of the followina two previously unlisted uses to the table: Secondhand Dealer and Precious Metal Dealer as well as the definitions of these uses and other terms - Ordinance No. 3188 C.3 TR 2012 -02 Public Hearina and Consideration of 2012 Comprehensive Land Use Plan Map - Ordinance No. 3191 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. D.1 GN 2012 -026 Award a Professional Services Aqreement in the amount of $49.500 to Needham McCaffrey Associates for Development of an Iron Horse Core Development Plan � 1 � I � J C � 1 � Cpl T ►T L�� : � :� E.1 PW 2012 -006 Authorize the Citv Manaaer to Execute a Professional Service Aareement with the RJN Group, Inc. in the Amount of $153,185 for Utilitv Capital Proiect UT1203 E.2 PW 2012 -008 Approve a Utilitv Assemblv (820 -U- 0508 - 0001 /Fiber Optic Cable) for the City 's Utilitv Relocations as Part of the North Tarrant Express Proiect F.0 GENERAL ITEMS F.1 GN 2012 -021 Presentation of Fiscal Year 2011 Audited Financial Report F.2 PU 2012 -012 Award a contract to Dunawav Associates. L.P.. in the amount of $52.100 for Professional Services for the Adventure World Plavaround Renovation Proiect (RFQ 12 -008) F.3 GN 2012 -025 Reschedulina of the Mav 28. 2012 Citv Council Meeting to Mav 21, 2012 G.0 EXECUTIVE SESSION ITEMS G.1 Action on Anv Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H.1 Announcements - Councilman Whitson H.2 Adiournment M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.6 Call to Order - Mayor Trevino M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.1 Invocation - Councilman Rodriguez M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.2 Pledge - Councilman Rodriguez M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. A.3 Special Presentation(s) and Recognition(s) No items for this category. M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. 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. M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. A.5 Removal of Item (s) from the Consent Agenda M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. B.a 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. M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. B.1 Approval of Minutes of March 5, 2012 City Council Meeting Presenter: Patricia Hutson Recommendation: To approve the minutes of the March 5, 2012 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 — MARCH 5, 2012 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the Stn day of March 2612 at 6:00 p.m. in the City Council Workroom prior to the 7:66 p.m. regular Council meeting. Present: Oscar Trevino Mayor Tito Rodriguez Council, Place 1 Vacant Council, Place 2 Torn Lombard Council, Place 3 Scott Turnage Council, Place 6 Tim Welch Council, Place 7 Staff Members: Mark Hindman City Manager Jared Miller Assistant City Manager Karen Bostic Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer Kristin Weegar Assistant to City Manager John Pitstick Director of Planning &s Development Larry Koonce Finance Director Clayton Comstock Senior Planner Craig Hulse Economic Development Director Mark Mills Budget Director Gregory VanNieuwenhuize Assistant Public Works Director Stacy Udoni Public Works Management Assistant Absent: Tim Barth Mayor Pro Tem, Council, Place 4 David Whitson Council, Place 5 Call to Order Mayor Trevino called the work session to order at 6:61 p.m. A.0 Discuss Items from Reaular Citv Council Meetina There were no questions from the Council. A.1 North Tarrant Express Update Mr. Craig Hulse, Director of Economic Development, updated the Council on the North Tarrant Express project. Mr. Hulse provided information on accessibility and closures of on and off ramps. Council was given an update on Monday's closure of the Davis Boulevard ramp to southbound 820 and TxDOT plans to reopen the ramp. Mr. Hulse discussed the access to Holiday Lane and Loop 820 from Maplewood Avenue and Oncor aerial utility adjustments on the north side of Loop 820. The Council expressed their displeasure with TxDOT extending the Davis Blvd southbound ramp closure from a weekend closure to three weeks. The Monday morning ramp closure not only severely impacted traffic flow through the City but impacted police, fire and EMS's ability to respond to emergencies. Council was also displeased with the change in plans to close several concurrent ramps at the same time. The City had been told in the planning stages that concurrent ramps would not be closed at the same time to minimize the impact to businesses. Staff will forward Council's displeasure with the situation to TxDOT. Council also asked Staff to erect four way stop signs at Maplewood and Cummings during the closure of Maplewood at Holiday Lane and to erect "No Truck" signs in the residential neighborhood while traffic is being detoured to Lola and Cummings. B.0 EXECUTIVE SESSION - The City Council may enter into closed Executive Session to discuss the followina as authorized by Chapter 551. Texas Government Code B.1 Executive Session: Pursuant to Section 551.071, Texas Government Code for Consultation with Attornev regardina Pendina Liticaation - 11 State of Texas v. Citv of North Richland Hills (No. 2011 - 002840 -1): and 21 State of Texas v. Citv of North Richland Hills (No. 2011 - 000462 -1) B.2 Executive Session: Pursuant to deliberate the purchase, exchanae southeast auadrant of the Citv Section 551.072, Texas Government to lease or value of real propertv in the Mayor Trevino announced at 6:24 p.m. that the Council would convene into Executive Session as authorized by Chapter 551, Texas Government Code, pursuant to the following sections: 1) Section 551.071 to consult with Attorney regarding pending litigation on 1) State of Texas v. City of North Richland Hills (No. 2011- 0(12840 -1); and 2) State of Texas v. City of North Richland Hills (No. 2011 - 000462 -1); and 2) Section 551.072 to deliberate the purchase, exchange, lease or value of real property in the southeast quadrant of the City. C.0 Adiournment Mayor Trevino announced at 6:39 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 March 5, 2012 at 7:06 p.m. ROLL CALL Present: Oscar Trevino Tim Barth Tito Rodriguez Vacant Torn Lombard Scott Turnage Tim Welch Staff: Mark Hindman Jared Miller Karen Bostic Jimmy Perdue Mike Curtis Vickie Loftice Patricia Hutson Monica Solko George Staples Absent: David Whitson Mayor Mayor Pro Tem, Council, Place 4 (present at 7:99 p.m.) Council, Place 1 Council, Place 2 Council, Place 3 Council, Place 6 Council, Place 7 City Manager Assistant City Manager Assistant City Manager Director of Public Safety Managing Director Managing Director City Secretary Assistant City Secretary Attorney Council, Place 5 A.1 INVOCATION Councilman Lombard gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilman Lombard led the pledge of allegiance. A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) - CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FOR THE COMPREHENSIVE FINANCIAL REPORT ENDING SEPTEMBER 30, 2010 Mr. Larry Koonce, Finance Director, introduced Mr. Clay Caruthers, Director of Finance with the City of Hurst and member of the Government Finance Officers Association of Texas. Mr. Clay Caruthers presented the Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report ending September 30, 2010 to the City. The City has received the Certificate of Achievement Award for the last 28 years. Fifteen percent of the cities in the State of Texas and five percent of the cities in the United States received the award. A.4 CITIZENS PRESENTATION Earl Rose, 2408 Dawn Mist Drive, representing the DFW Texans Professional Indoor Football Team came forward. Mr. Earl wanted to inform Council of the new indoor football league at the North Richland Hills NYTEX Sports Center. Mr. Earl invited Council and the community to come out and support the local teams in their first home game opener on April 29th. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.D APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF FEBRUARY 27, 2012 CITY COUNCIL MEETING COUNCILMAN TURNAGE MOVED TO APPROVE THE CONSENT AGENDA. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 4 -0. Mayor Pro Tem Barth present at 7:19 p.m. C.0 PUBLIC HEARINGS CA GN 2012 -020 PUBLIC HEARING AND CONSIDERATION OF ORDINANCE ADOPTING YOUTH PROGRAMS STANDARDS OF CARE - ORDINANCE NO. 3189 APPROVED Mayor Trevino opened the public hearing and called on Ron Newman, Park and Recreation Program Coordinator to come forward. Mr. Newman summarized the item. The item is to consider approval of an ordinance readopting the North Richland Hills Youth Programs Standards of Care. Because the Parks Department offers day camp programs for children ages five to thirteen, the City must meet day care licensing requirements or file for an exemption of the Child Care Standards and Regulations. To receive exempt status, municipalities must submit a copy of program standards, a notice of a public hearing for the program and a copy of the ordinance adopting the standards. The Park and Recreation Department's day camp program meets and in some areas exceeds many of the standards listed in the state's Child Care Standards and Regulations. All of the Standards of Care in the Parks Department's day camp policies and procedures have been in place for several years and are used in the staff training process prior to camp starting each year. The exemption application and formal adoption of the Youth Programs Standards of Care and ordinance is an annual requirement. Staff recommends approval of the ordinance following the public hearing and public input. 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 LOMBARD MOVED To APPROVE ORDINANCE No. 3189. COUNCILMAN WELCH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5 -0. l PLANNING & DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2012 -022 CONSIDER ALL MATTERS INCIDENT AND RELATED TO ORDERING AND HOLDING A BOND ELECTION, INCLUDING THE ADOPTION OF A RESOLUTION ORDERING SUCH ELECTION (RESOLUTION NO. 2012 -008). APPROVED Mayor Trevino advised that Item F.1 was not a public hearing but asked if citizens would like to comment on the subject he would like to hear from them. Mayor Trevino inquired if there were any objections from the Council. The Council had no objections to 'hearing from the citizens. Councilman Rodriguez, Task Force Streets Sub- committee Chairman, presented a summary of the activities and recommendations of the Community Improvements Program Task Force. The task force was in charge with evaluating city facilities and streets and making recommendations to the Council for future projects. Councilman Rodriguez recognized the members of the task force in attendance. The task force utilized two sub committees — Facilities Sub- committee chaired by Councilman Lombard and the Streets Sub - committee chaired by Councilman Rodriguez. The task force as a whole adopted all rankings of the sub - committees. The Streets Sub- committee evaluated all residential and collector streets and created different street packages for different funding levels. The conclusion of the task force was that now is not the time to take on an extensive street bond project due to the significant traffic impacts associated with the Loop 820 project. The Facilities Sub- committee focused on an in -depth look of the age, condition, size, use and functionality of all city facilities, ranked possible alternative sites for facilities, evaluated facility placement and type in surrounding and similar communities and ultimately created preliminary reconstruction and relocation options. The Sub - committees then reassembled as a Task Force towards the end of the summer to move forward as a singular body to address the more complex issues associated with the facility challenges. All preferences and rankings established by the Sub- committees were re- confirmed and adopted by the task force as a whole upon completion of the Sub- committee meetings towards the end of the summer. Councilman Lombard presented the task force's discussion and recommendations for city facilities. Councilman Lombard discussed their assessment of the current city facilities and future needs. Councilman Lombard provided a brief summary of key municipal facilities, the Loop 820 expansion project and studies prepared by the city related to the expansion project. The pre -1995 design of the 820 expansion project did not impact city facilities and included a total of 9 lanes within the existing right of way. The current NTE expansion plans involve a significant expansion of right of way for a total of 14 lanes significantly impacting the Recreation Center I Municipal Court and City Hall facilities. Impacts to the Recreation Center 1 Municipal Court include the facilities failing to meet city codes and standards, loss of parking spaces and emergency vehicle access and loss of functionality of the main entrance. Impacts to the City Hall 1 Police Facilities include the facility being non - compliant with city codes and ordinances, loss of parking and loss of functionality of main entrance. Councilman Lombard discussed the task force's evaluation of sites and preferences. The task force's location preferences are: #1 — locate City Hall, Court and Public Safety facilities at former North Hills Mall site; #2 locate City Hall, Court and Public Safety facilities at current City Hall site (would require the acquisition of the homes in the neighborhood to the east); and #3 locate City Hall and Court at current City Hall site and move Public Safety to the Mid Cities site (city -owned property off of Dick Fisher). Councilman Lombard discussed the task force's evaluation and consideration of cost comparison options, and financial criteria and assumptions. The task force's recommendations to Council are to • defer a street bond program for three to five years, recommendation of a facilities project to construct new facilities o location preferences • all facilities at the old mall site • all facilities at the current city hall site • facilities split at the current city hall site and the Service Center. o Maximum cost - $70 million o Up to 4 cent tax rate increase Recommend the council call a bond election for May 12, 2012 to fund municipal facilities. Mayor Trevino called for anyone wishing to speak for or against the bond request to come forward. The following task force members spoke in support for calling the bond election. Both expressed their support of the open and transparent process that allowed them to evaluate city needs and make their final recommendation of a facilities project to construct new facilities. Mr. Mark Wood, 6617 Precinct Line Road, NRH Mr. Jay Bruner, Senior Pastor of Center Point Church, 7804 Mid- Cities Blvd, INRH The Mayor and Council expressed their appreciation to the members for their work. COUNCILMAN RODRIGUEZ MOVED TO ADOPT THE RESOLUTION (RESOLUTION NO. 2012 -008) ORDERING AN ELECTION TO BE HELD MAY 12, 2012 FOR THE ISSUANCE OF BONDS. COUNCILMAN LOMBARD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5 -0. G.0 EXECUTIVE SESSION ITEMS G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA No action needed. H.0 INFORMATION AND REPORTS H.1 ANNOUNCEMENTS Councilman Lombard made the following announcements. The NRH Public Library and Carter Blood Care will host a blood drive from 11:30 a.m. to 5:30 p.m. on Wednesday, March 7. This event will take place in the Community Room of the Library, which is located at 9015 Grand Ave. No appointment is necessary as walk -ins are welcome. For more information, call the Library at 817 -427 -6814. The NRH Public Library is hosting a free grant seeking workshop for nonprofit organizations on Wednesday, March 14. The workshop will be held from 2 to 4 p.m. in the Community Room. Please call 817- 427 -6814 for more information. Kudos Korner - Rebecca Vinson at Municipal Court. An email was received thanking Rebecca for her work in getting a citation matter resolved. The citizen stated that Rebecca was absolutely wonderful and so easy to work with and was truly an asset for the city. H.3 ADJOURNMENT Mayor Trevino adjourned the meeting at 8:11 p.m. Oscar Trevino — Mayor FIN ir* -'36 Patricia Hutson, City Secretary M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. B.2 GN 2012 -023 Amend Resolution No. 2012 -002 to Amend the Designation of the City's Voting Precincts as Established by Tarrant County following Redistricting - Resolution No. 2012 -009 Presenter: Patricia Hutson Summarv: The City Council is being asked to designate the polling precincts and locations for the May 12, 2012 election. General Description: When Council ordered the May 12 City Council Election in January, redistricting from the 2010 Federal Census had not been completed and Tarrant County was therefore unable to designate voting precincts. The redistricting issue was completed in late February. Last week the Tarrant County Commissioners Court approved changes to the voting precinct boundaries and voting precinct numbers and the City received its list of designated voting precincts. Council now needs to amend Resolution No. 2012 -002 to designate the City's voting precincts as established by Tarrant County. Resolution No. 2012 -009 designates the precinct numbers and voting locations for the May 12 City Council election. It is not necessary for Council to amend the precinct numbers and locations for the May 12 bond election. The City's bond attorney has advised the resolution approved by Council ordering the bond election authorizes the Mayor or City Secretary to correct, modify or change the information in the resolution and attached exhibits based upon final information agreed upon by the Tarrant County Elections Administrator and the City. Recommendation: To approve Resolution No. 2012 -009 M RH 10 **Q Itlil 0161► I ► L6)1111KII Pzlilf~; WHEREAS, the regular election for the City of North Richland Hills, as set forth by the Texas Election Code, is required to be held on May 12, 2012, at which time the voters will elect a Mayor and City Council Places 2, 4 and 6; and WHEREAS, in accordance with Section 271.002 of the Texas Election Code, the City election will be conducted jointly with Birdville Independent School District and other political subdivisions of the State of Texas; and; WHEREAS, THE City Council has heretofore by passage of Resolution 2012 -002 called such election, but at the time the voting precincts had not been finally established by Tarrant County and such locations have now been established; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT Section 3 of Resolution 2012 -002 is hereby amended to read as follows "Section 3: The location of polling places for this joint election are designated pursuant to Section 271.003 of the Texas Election Code, and the Council finds that the following locations can most adequately and conveniently serve the voters in this election, and that these locations will facilitate the orderly conduct of the election: PRECINCT VOTING LOCATION Precinct One (includes County voting City Hall, 7301 Northeast Loop 820 precincts 3214, 3324, 3333, 3041, & 3364 ) Precinct Two (includes County voting Dan Echols Senior Adult Center precincts 3140, 3215, 3289, 6801 Glenview Drive 3325, 3326, 4141, 4620 & 4629) Precinct Three (includes County voting Bursey Road Senior Adult Center precincts 30£3, 3049, 3177, 7301 Bursey Road 3209, 3365, 3367, 3387, 3447, 35017, 3527, & 3584)" AND IT IS SO RESOLVED. PASSED AND APPROVED this the 26th day of March, 2612. In F-11 a 11*3 6 Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2912 Subject: Agenda Item No. B.3 GN 2012 -427 Amend Section 6 -31 of the Code of Ordinances granting a variance for the NRH Centre Presenter: Vickie Loftice Summarv: This item is recommending an amendment of Section 6 -31 of the Code of Ordinances granting a variance for alcoholic beverage sales in the NRH Centre banquet center and associated facilities. General Description: Regulations relating to the sale of alcohol are contained within Section 6 -31 of the Code of Ordinances. The ordinance provides regulations relating to the sale of alcohol near a church or school. Also contained within the ordinance is an allowance for a variance if the ordinance is determined not in the best interest of the public, constitutes waste or inefficient use of land or other resources, creates an undue hardship on an applicant for a license or permit, does not serve its intended purpose, is not effective or necessary, or for any other reason the court or governing board, after consideration of the health, safety, and welfare of the public and the equities of the situation, determines is in the best interest of the community. Given the intended purpose and anticipated functions and events that will occur in the banquet facilities of the NRH Centre, the Park and Recreation Department is requesting a variance to Section 6 -31 of the Code of Ordinances allowing for the sale of alcohol in the NRH Centre banquet and event facilities. The variance will support the recently amended Parks and Recreation Department Code of Ordinances that allows for alcohol sales at the NRH Centre banquet facilities, Stormy Plaza and NRH2O for exclusive and private rentals. A variance is only required for the NRH Centre banquet facilities. The recommended variance will allow for alcoholic beverage sales at events and functions including, but not limited to weddings, business meetings, conferences, social events, fund - raising events, reunions, and anniversaries in the banquet facilities, lobby, second floor terrace, associated facilities and civic plaza adjacent to the banquet center of the NRH Centre if a request is made at least one week prior to an event or function and a permit is approved by the city manager or his designee. Each such event involving alcoholic beverage sales must include sales by an approved vendor with an alcoholic beverage license from the State of Texas and police security may be required. Recommendation: To approve Ordinance No. 3199 M RH � NI] I►1_1e[+] � i C61KC11Pit] AN ORDINANCE SALES IN THE FACILITIES. GRANTING A VARIANCE FOR ALCOHOLIC BEVERAGE NRH CENTRE BANQUET CENTER AND ASSOCIATED WHEREAS, the City Council has determined that the enforcement of the regulations contained in Section 6 -31 of the Code of Ordinances on alcoholic beverage sales at the Banquet Center and associated facilities of the NRH Centre is not in the best interest of the public, does not serve the intended purpose of such regulations and is not necessary in view of the right of the city to restrict such uses as an owner thereof; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: Section 6-31(e) of the North Richland Hills Code of Ordinances is hereby amended to read as follows: "(e) Variances. The city council may also allow variances to the regulation if the city council determines that enforcement of the regulation in a particular instance is not in the best interest of the public, constitutes waste or inefficient use of land or other resources, creates an undue hardship on an applicant for a license or 1permit, does not serve its intended purpose, is not effective or necessary, or for any other reason the court or governing board, after consideration of the health, safety, and welfare of the public and the equities of the situation, determines is in the best interest of the community. Pursuant to such authority, a variance is hereby allowed for alcoholic beverage sales at events and functions including, but not limited to weddings, business meetings, conferences, social events, fund- raising events, reunions, and anniversaries in the Banquet Center, Lobby, second floor Terrace, associated facilities, and Civic Plaza adjacent to the Banquet Center of the NRH Centre if a request is made at least one week prior to an event or function and a permit is approved by the city manager or his designee. Each such event involving alcoholic beverage sales must include sales by an approved vendor with an alcoholic beverages license from the State of Texas and police security may be required." PASSED AND APPROVED on this the 26th day of March, 2012. CITY OF NORTH RICHLAND HILLS in Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Vickie Loftice, Managing Director of Community Services M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2912 Subject: Agenda Item No. B.4 GN 2012 -424 Approve 2012120+13 Solid Waste Implementation Project Application for Household Hazardous Waste Mobile Collection Event Grant Funding - Resolution No. 2012 -010 Presenter: Joann Stout Summarv: Neighborhood Services has prepared an application for grant funding to support four Household Hazardous Waste Mobile Collection events. General Description: The North Central Texas Council of Governments (NCTCOG) is accepting applications from local governments who are seeking reimbursable solid waste management funding. Funding for this program is provided through a grant from the Texas Commission on Environmental Quality (TCEQ). One of the objectives of the funding is to provide a means for the collection and proper disposal of household hazardous waste. In order to receive grant funds under this program, the proposed projects and programs listed in the applications for potential funding must be approved by resolution by the City Council and the signed resolution must be submitted as part of both applications. If the project applications are approved for funding, the funds will be awarded by reimbursement through an Interlocal Agreement between the project applicant and NCTCOG. The Neighborhood Services Department is requesting approval to submit a project application in the amount of $29,549.99 to provide four Household Hazardous Waste Mobile Collection Events. These events will allow residents to bring their waste to an event for proper disposal. The grant funding will cover the cost of advertising, contract labor and disposal fees. There will be no cost to the city for these events. Recommendation: To approve Resolution No. 2912 -919 rq It I: :Piel 0,119 [•1+ihl PZ111f, RESOLUTION OF THE CITY OF NORTH RICHLAND HILLS AUTHORIZING THE FILING OF A PROJECT APPLICATION WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR A REGIONAL SOLID WASTE PROGRAM LOCAL IMPLEMENTATION PROJECT; AUTHORIZING JO ANN STOUT TO ACT ON BEHALF OF THE CITY OF NORTH RICHLAND HILLS IN ALL MATTERS RELATED TO THE APPLICATION FOR THE NRH HOUSEHOLD HAZARDOUS WASTE MOBILE COLLECTION EVENTS AND PLEDGING THAT IF FUNDING FOR THIS PROJECT IS RECEIVED THE CITY OF NORTH RICHLAND HILLS WILL COMPLY WITH ALL PROJECT REQUIREMENTS OF THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS, TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND THE STATE OF TEXAS. WHEREAS, the North Central Texas Council of Governments (NCTCOG) is directed by the Texas Commission on Environmental Quality (TC'EQ) to administer solid waste project funds for the implementation of NCTCOG's adopted Regional Solid Waste Management Plan; and WHEREAS, the City of North Richland Hills in the State of Texas is qualified to apply for project funds under the Request for Project Applications. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF NORTH RICHLAND HILLS IN NORTH RICHLAND HILLS, TEXAS THAT; Section 1. Jo Ann Stout, Director of Neighborhood Services is authorized to request grant project funding under NCTCOG's Request for Project Applications of the Regional Solid Waste Local Project Funding Program and act on behalf of the City of North Richland Hills in all matters related to the grant project application and any subsequent project contract that may result. Section 2. If the grant project is funded, the City of North Richland Hills will comply with the requirements of NCTCOG, TCEQ and the State of Texas. Section 3. The City of North Richland Hills will allocate and expend the necessary monies to support this grant project and then seek reimbursement from NCTCOG on a timely basis. Section 4. The grant project funds and any project- funded equipment or facilities will be used only for the purposes for which they are intended under the project. Section 5. The grant activities for this project will comply with and support the adopted regional (and local) solid waste management plans adopted for the geographical area in which the activities are performed. PASSED AND APPROVED this the 26th day of March, 2012. la r1a11*36 Patricia Hutson, City Secretary : 03 1 'Ki1lM►[CA9:1Z4[ @]:IW_1►1N1:III Oscar Trevino, Mayor 1.1 :Z+] ►1=I I7 :1'111911;191 N r51 :1► I bl1 *H_141 Wii George A. Staples, City Attorney f_l, �:tGl ►1=I D1 -11:1 11OX0161 `r 10 =1 ►16 JoAnn Stout, Director of Neighborhood Services M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. B.5 PU 2012 -011 Award RFB No. 12-005 for Electrical and Lighting Services to arable Electric as the Primary contractor and Facility Solutions Group as the Secondary contractor Presenter: Chris Amarante Summarv: This item is to ask Council to award RIFB 12 -005 annual contract for electrical and lighting services to Cable Electric as the primary contractor and Facility Solutions Group as the secondary contractor. General Descrir)tion: Each budget year, Council appropriates funds for electrical and lighting services for Facility /Construction, NRH20 and Parks and Recreation Department to maintain and effective maintenance programs for City owned facilities. The City requested bids for electrical repair and installation contracting services to be performed for participating City departments on an annual and as need basis. All buildings as well as leased spaces operated by the City of North Richland Hills will be covered under this annual contract. Notice of the City's intent to bid was advertised in local newspapers, as required by State Statute and posted on the City's Purchasing Department web page. Numerous vendors were contacted and requested to participate in this process. The City received five (5) bids from the following vendors: Price per nii unum hour Ed's Sylvania Cable Facility Vendor Hurst Electric Electric Lighting 20 % Solutions 15% Service services Electric Group Description P RIMAR Y SECONDARY Mini mum hours billed per 1 ser %rice call 1 2 1 1 Price per nii unum hour $100.00 $105.00 $40.00 $36,00 $60.00 Parts nark up ( %) 15% 20 % 26% 15% 15% M Hourly Rates I I I I I 1 7:00 a.m. to 6:00 p.m. $125.00 $70.00 $85.00 $41.00 $65.00 Master Electrician 6:00 p.m. to 7:00 a.m. $187.50 $105.00 $85.00 $61.50 $84.50 Master Electrician Weekends & Holidays $250.00 $105.00 $127.50 $61.50 $84.50 Master Electrician 7:00 a.m. to 6:00 p.m $75.00 $70.00 $85.00 $36.00 $60.00 Journeyman Electrician 6:00 p.m to 7:00 a.m. $112.50 $105.00 $85.00 $54.00 $78.00 Journeyman Electrician Weekends & Holidays $150.00 $105.00 $127.50 $54.00 $78.00 Joiuueyinan Electrician 7:00 a.m. to 6:00 p.nL $45.00 $35.00 $35.00 $17.04 $40.00 Helper 6:00 p.m. to 7:00 a.m. $67.50 $52.50 $35.00 $25.50 $52.00 Helper Weekends & Holidays $40.00 $52.50 $52.00 $25.50 $52.00 Helper There are not set required quantities to be purchased under this contract. Specifications call for pricing to remain firm for a twelve (12) month period with the options to review the pricing and extend the annual contract for three (3) additional twelve (12) month periods if it remains beneficial to the City and the vendors. Recommendation: To award RFB No. 12 -005 for Electrical and Lighting Services to Cable Electric as the primary contractor and Facility Solutions Group as the secondary contractor. M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. B.6 PU 2412 -413 Approve Purchase of High Pressure Jetting Equipment from Texas Municipal Equipment, LLC in the amount of $52,174.19 Presenter: Thomas PowellThomas Powell Summarv: Request Council to approve the purchase of high pressure jetting equipment utilized by the Public Works Utility Division from Texas Municipal Equipment, LLC in the amount of $52,174.09. General Description: In accordance with the CIP Major Capital Equipment Replacement Program, after ten years of use, equipment is evaluated for replacement based on frequency of use, the number of like equipment in the fleet, equipment condition and the availability of parts and services. In 2002 the City purchased a Freightliner FL -70 truck equipped with a 14 foot enclosed cargo box. The truck was then outfitted with high pressure water jetting equipment to be used in the maintenance of the City's sewer systems. The water jetting equipment is utilized daily and is in need of replacement. Because the jetting equipment is self - contained and has a separate engine from the truck engine, the truck is in good condition and can be utilized for another 10 years. Not replacing the truck results in a savings of approximately $80,000. Harben 'Inc. and US Jetting, LLC are the two major manufacturers of high pressure jetting equipment and both have a local vendor. BuyBoard or HGAC quotes were requested for a new eight cylinder radial piston pump powered by a water cooled Kubota engine, including a hydraulic powered hose reel equipped with 1000 feet of hose, and a 750 gallon water tank. The quotes include the removal and trade -in of the old Harben equipment and the installation of the new equipment. The City of North Richland Hills is a member of several inter -local groups and utilized existing contracts with vendors through the Local Government Purchasing Cooperatives. The Local Government Code states that purchases made through a cooperative purchasing agreement satisfy any state law that would require the City to solicit competitive bids. The City received the following quotes: Texas Municipal Equipment, LLC $52,174.19 Harben Inc. $74,129.00 The Fleet Services, Public Works, and Purchasing Departments have evaluated the quotes and are recommending awarding the purchase to Texas Municipal Equipment, LLC the local vendor for US Jetting. The Council approved the FY 2012 CIP Budget amount of $85,000 for this equipment and the equipment will be purchased with cash out of the Fleet Services fund. Recommendation: To approve the purchase of high pressure jetting equipment from Texas Municipal Equipment, LLC in the amount of $52,174.19. M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. C.0 PUBLIC HEARINGS M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. C.1 ZC 2012 -02 Public Hearing and Consideration of a Request from the Community Enrichment Center to revise the Site Plan of an existing Planned Development (PD 7) located at 6250 NE Loop 820 - Ordinance No. 3193 Presenter: Clayton Comstock CASE SUMMARY: The Community Enrichment Center (CEC) and The Hills Church of Christ are requesting approval of a Zoning Change to revise their existing Planned Development (PD -7) zoning. The purpose of the revision is not to change any of the permitted land uses; rather it is a change to the site plan and landscape plan that is associated with the PD. Because of the Loop 820 widening project, a portion of the CEC's property along the freeway will be taken for construction and their existing driveway that services the loading dock will be lost. The site plan primarily adjusts the orientation of the loading dock area, provides additional parking and an additional driveway along Meadow Lakes Drive. Staff saw the proposed site plan revisions as a significant divergence from the originally approved PD -7 site plan from 1992 (see attached Ordinance No. 1849). Specifically, parking lots and a driveway cut moved much closer to residential as previously planned. Additionally, surface parking lots are not a permitted primary use on a lot. The revised PD development regulations will allow for surface parking on undeveloped lots to service the uses within the PD. COMPREHENSIVE PLAN: The Comprehensive Plan depicts "Public/Semi-Public" uses for this area. The Public/Semi-Public Land Use is intended to permit non - profit activities of an educations, religious, governmental, or institutional nature. The existing and proposed uses of the property meet the future land use intent. 0 Ill1,[*] =1 Z 1 W401 I I 141 WIl' 11XI&I =1 North: NE Loop 820 East: Meadow Lakes Drive f PD -2 (The Hills Church of Christ) South: PD -19 (122 -unit Retirement Center) West: DART Right -of -Way 1 City of Haltom City PLANNING & ZONING COMMISSION: The Planning & Zoning Commission recommended approval of ZC 2012 -02 by a 5 -0 vote at their March 15, 2012 meeting, subject to a sidewalk being installed along the entirety of the PD's Meadow Lakes Drive frontage. STAFF RECOMMENDATION: Staff recommends approval of zoning change request for the Planned Development (PD) revision, subject to the Planning & Zoning Commission's recommendation for a sidewalk along the entire Meadow Lakes Drive frontage. ATTACHMENTS: 1) Proposed PD -7 Revision 2) Original PD -7 Zoning (Ordinance No. 1849) t F, LOCATION MAP AERIAL PHOTO lu OW NE Loop 8�0 PROPERTY OWNER NOTIFICATION NOTICE OF PUBLIC HEADING CITY OF NORTH RICHLAND HILLS PLANNING AND ZONING COMMISSION AND CITY COUNCIL Case #: ZC 2012- 02 Applicant: Location Community Enrichment Center 6250 NE Loop 820 You are receiving this notice because you are a property owner of record within 200 feet of the property shown on the attached map. Purpose of Public Hearing: A Public Hearing is being held to Consider a request from the Community Enrichment Center to revise the Site Plan of an existing Planned Development (PD 7) located at 6250 NE Loop 820. Public Hearinq Schedule: Public Hearing Dates: PLANNING AND ZONING COMMISSION THURSDAY, MARCH 15, 2012 If recommended for approval by the Planning and Zoning Commission, this zoning request will be heard by the City Council on: CITY COUNCIL MONDAY, MARCH 26, 2012 Both Meeting Times: 7:00 P.M. Both Meeting Locations: CITY COUNCIL CHAMBERS 7301 N. E. LOOP 820 NORTH RICHLAND HILLS, TEXAS If you have any questions or wish to submit a petition or letter concerning the above request, please contact: Planning Department - City of North Richland Hills 7361 Northeast Loop 824 North Richland Hills, Texas 76186 Phone (817) 427 -6346 Fax (817) 427 -6363 LIST OF NOTIFIED PROPERTY OWNERS The Hills Church of Christ 6300 NE Loop 820 NRH Tx 76180 -7899 Community Enrichment Cntr Inc 6250 NE Loop 820 NRH Tx 76180 -7842 Texas Hc,p Al LP 3760 Kilroy Airport Way Long Beach Ca 90806 -6862 City of Haltom City PCB Box 14246 Haltom City Tx 76117 -0246 ORIGINAL ORDINANCE (ORDINANCE NO. 1849 AN ORDINANCE BY THE CITY OF NORTH RICHLAND HILLS AMENDING ORDINANCE W MHER 1080, THE COMPREHENSIVE ZONING ORDINANCE, TO AMEND PLANNED DEVELOPMENT DISTRICT NUMBER TWO AND ESTABLISH PLANNED DEVELOPMENT DISTRICT NUMBER SEVEN; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFPECTIVE DATE. WHEREAS, the Planning and Zoning Commission of the City of 'North Richland Hills has forwarded a recommendation to the City Council for amendment of ordinance No. 1080 by amending PLANNED DEVELOPMENT DISTRICT NUMBER 2 and establishing PLANNED DEVELOPMENT DISTRICT NUMBER 7, by changing the said Zoning ordinance as sett forth herein. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAN7 HILLS, TEXAS. 1 . THAI', PLANNED UMLOPMENT DISTRICT NUMBER 2, be hereby amended by Case Number PZ 92 -32 to establish PLANNED DEVELOPMENT DISTRICT NUMBER 7 on the property more particularly described as follows: That portion of Bloch Seven, Meadowlakes Addition, situated north of the southern boundary line of the Telitha Akers survey, Abstract 19, and containing 2,52 acres, more or Jess. THAT the development regulations contained in the U- INSTITUTIONAL Zoning District shall govern development in PLANNED DEVELOPMENT DISTRICT NUMBER 7, except where amended below. Minimum side building line: None required except where the side of building abuts an adjacent zoning district or a side street, then 20 feet side yard set back shall be required. 4 THAT the Site Plan, attached as "Exhibit A ", shall govern the placement of buildings on PLANNED DEVELOPMENT NUMBER 7. [* THAT all regulations contained in Zoning Ordinance Number 1080, as amended, which are not in conflict with the terms of this PLANNED DEVELOPMENT NUMBER 7, shall remain in effect regarding this property. 5. THAT all terms of PLANNED DEVELOPMENT DISTRICT NUMBER TWO as previously established by the City Council which are not in conflict with the regulations contained in Zoning ordinance No. 1080, as amended, or the terms of this PLANNED DEVELOPMENT NUMBER 7, shall remain in effect regarding this property. 6. SEVERABILITX Jr , . . cr,atl That it is hereby declared to be the intention of the City Council that the section, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared invalid or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this ordinance, since the same would have Ueen enacted by the City Council without the incorporation in this ordinance of any such invalid or unconstitutional phrase, clause, sentence, paragraph or section. JqAVIMS CLAUSE. That Ordinance 1080, The Zoning ordinance of the City of North Richland Hills, Texas, as amended, shall remain in full force and effect, save and except as amended by this ordinance. B. ZEZECTTVE ,DATE. This ordinance shall be in full farce and effect from and after its passage. APPROVED BY THE PLANNING AND SEPTEMBER, 1992. ZONING COMMISSION THIS 29TH DAY OF CHAT �� t / PLA1Vl+T ONING COMMISSION ARY PASSED AND APPROVED BY THE CITY COUNCIL THIS 26TH DAY OF OCTOBER, 1992. MAYOR ATTEST: C Y SECR Y ATTORNEY FOR THE CITY ORIGINAL ORDINANCE EXHIBIT PD -7 L 15 c t 6' r` x �P a s P +� r e o� t H.R LJP4 8'2pVSGC *pMP =v; Ill �• . - 4 owin r , Pw !WEAN F61lOP! i� +fig "fllc� P�ICw!G �YNEMT 4 � �� rasn{ fi sd amu 'M RAANiI ewcYwa � oN.r Nav4 t.N6d' STORY X U C d 0 i, 'va a s ir 4 - Z I r a� fd f ■A . a z � LU �'lZ3 4 Q 1 nisT�.vc P/A+U Na - NE�� ryxhlNi IC sfti4fa TD'-' ryJa�c.h L i+�vYCY1� - GF NFiS BIOCI[7 N p 60- F l L►p[• AGpry6A m+i tr.rNS wmixeW - 56 5P/�H TY of OA M AWIVNG H -y .TWS ORDINANCE NO. 3193 ZC 2012 -02 AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, BY REVISING THE PLANNED DEVELOPMENT SITE PLAN ON LOTS 1, 2, AND 3111, BLOCK 7, MEADOW LAKES ADDITION IN THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR SAVINGS; PROVIDING A PENALTY; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the owner of property located at 6250 NE Loop 820, has filed an application to revise the existing [:RDEplanned Development site plan on said property; and WHEREAS, notice of a public hearing before the City Council was published in a newspaper of general circulation in the City at least 15 days before such hearing; and, WHEREAS, public hearings to zone the property herein described were held before both the Planning and Zoning Commission and the City Council, and the Planning and Zoning Commission has heretofore made a recommendation concerning the zone change; and, WHEREAS, the City has complied with all requirements of Chapter 211 of the Local Government Code, and all other laws dealing with notice, publication and procedural requirements for the rezoning of the property; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT the Comprehensive Zoning Ordinance is hereby amended by adopting the revised site plan and landscape plan attached hereto and incorporated herein as Exhibits "A" and "B" for that property located at 6250 NE Loop 820, being all of Lots 1, 2, and 3R1, Block 7, Meadow Lakes Addition, City of North Richland Hills, Tarrant County, Texas. Section 2: The official zoning map, of the City of North Richland Hills is hereby amended and City staff is hereafter directed to revise the zoning map to reflect the amendments as set forth above. Section 3: 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 phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional or otherwise invalid by the final judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the city council without the incorporation in this ordinance of any such invalid phrase, clause, sentence, paragraph or section. Section 4: All rights and remedies of the City of North Richland Hills are expressly saved as to any and all violations of the provisions of any ordinances affecting health and safety which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance, but may be prosecuted until final disposition by the courts. Section 5: Any person, firm or corporation violating any provision of this ordinance shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an amount not to exceed Two Thousand Dollars ($2,000.00). Each day any such violation shall be allowed to continue shall constitute a separate violation and punishable hereunder. Section 6: The City Secretary is hereby authorized and directed to cause the publication of the descriptive caption and penalty clauses of this ordinance as an alternative method of publication provided by law. Section 7: This ordinance shall be in full force and effect immediately upon passage. AND IT IS SO ORDAINED. PASSED AND APPROVED this 26th day of March, 2012. la Patricia Hutson, City Secretary 011W KS]M►[*]Ad:1N[ @]:IW_1►1 NJ: III Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney �:ZG]►1=I IMAT4 COX0161 ►10 =1 ►16 John Pitstick, Planning & Development Director PD -7 Planned Development District Land Use & Development Regulations Community Enrichment Center This Planned Development District shall adhere to all the regulations and conditions of the City of North Richland Hills' Code of Ordinances, as amended and as they pertain to the "U" School, Church and Institutional Zoning District, with the following exceptions: Minimum Side Building Line: None required, except where the side of a building abuts an adjacent zoning district or a street, then 20 feet side yard setback shall be required. Minimum Parking: 1 Space per 300 Square Feet Dumpster Location: Dumpster(s) may be located within the required landscape buffer and/or building setback, so long as said dumpster(s) are located to the rear of the buildings on the site Billboard Signage; Limited to one relocated for the site with the approval of the sign review board and compliance with city ordinances. Parking a Primary Use: Off- street, paved parking is permitted as a primary use on a lot within the District, so long as said parking is utilized for the uses contained within this Planned Development District. The attached Site Plan and Landscape Plan ( "Exhibit A ") shall govern the placement of buildings, landscaping and other improvements within the Planned Development (PD) District. SITE PLAN EXHIBIT INTERSTATE 820 L nwaHrracT— Canter p$Ip N E 1ppp 48] iloM PWknO Hlk T— n1m SITE PLAN S]Tr= .arr �' ••••� E7 lm. ®' fuM'K YS'11 1➢ttbT wsmN szoY Park4nJ Calcula,lona Chart 511 Data Su mmary CM1 ft 11010 NON comae u aP su,s rd, A -101 LANDSCAPE PLAN INtERSTATE 820 s _b i �� ' �� e arurt4N.-[dWttS LOT 1 FUTURE ° ` " ' •' ; BUILDING ' V ��� ' f 4 � � � � - b b � r' * . j S �,• u^a sa ,.,., e.�l y�°°.ns .+w«..�r""w.» ,! LKj 01 oscArEPwa smr r r LANDSCAPE PLAN A; 00MUNfIY €N%CH MT CF,H for 1. z x and. Bl S -u€nnM Wn a M. T- CM OF NCRPH FifCHLANO HMS. 111AI EXCERPT FROM THE MINUTES OF THE MARCH 15, 2012 PLANNING AND ZONING COMMISION MEETING Public Hearing and Consideration of a Request from the Community Enrichment Center to revise the Site Plan of an existing Planned Development (PD 7) located at 6250 NE Loop 820. Steve Campbell, 2920 Creekwood, Grapevine, TX, came forward as the architect for the Community 'Enrichment Center. He said the site has been in its current condition since the early 1980's and was originally planned for five different buildings. The first was built in 1986; the second one was built approximately 1991 and this third is planned for an education and storage facility as well as offices for the Community Enrichment Center. The City staff asked us to come back and update the Planned Development because the expansion of Loop 820 is taking the access road which is the only way to the loading docks on the north side of the building. In summary, we need to have access to the loading dock and while losing parking at the existing church facility, we were asked to put additional parking in front of the Community Enrichment Center. Mike Benton asked if there is a sidewalk planned for the residents at the retirement center. He has safety concerns because they are in the street with their wheelchairs all the time having to leave the sidewalk to get on the street. Since there are going to be improvements to the bridge with a walk way, this would be a perfect opportunity to tie something into the bridge for their safety and access. Steve Campbell said yes, in the original meetings with the city we added sidewalks, shrubs to conceal the frontage, but TXDOT said they wanted them to move the existing driveway further south from the access road. Prior to that time we did not know how much property they would be taking. He said the landscaping was discussed at great length with staff and since this is being requested, he feels the church would most likely be willing to consider. Mike Benton asked about the community garden shown on the site plan and if it would be donated or something the church would put in. He asked if it would be a partnership with the city and similar to the one on Davis Blvd. Steve Campbell said the community garden is in the footprint of the 5th pad. Since this is a food bank for the North Tarrant County area and we are bringing in fill dirt, we wanted to include one for a possible use in the future. He said he does not know anything about how it would be constructed or if it would be similar to the one on Davis Blvd. Steve Campbell said Randy Clinton expressed his disappointment that he could not be here tonight as he had committed to a family activity. Clayton Comstock came forward stating the Community Enrichment Center is proposing a zoning change to revise and update the site plan for the existing PD -7 {Ordinance No.1849), which is a planned development zoning district for the C.E.C., located at 6259 Northeast (Loop 820. As Mr. Campbell mentioned, the reason for the change is the taking of property by TXDCT for Northeast Loop 820. He showed the areal images of the right of way line for the freeway. The access that they currently have off of the frontage road for 820 will be gone and that is where the service docks are on the north side of the building. As a result they will have to come around Iron Horse Drive or Meadow Lakes Drive to the south to enter the site. The parking along Meadow Lakes Drive will extend further to the south and there will be another driveway connection on the south side of the property. Staff feels like the new pavement and access closer to multifamily, retirement center, removal of access road along 820 and some of the reorientation of the building brought the need to go back to P &Z and City Council and update the site plan. Additionally, we are talking about adding parking on a lot that has no building and since parking is not permitted as a primary use if there is no primary use, so it has been written into the zoning regulations for this PD. They are proposing a 15 ft. landscape buffer and landscape plan. There is additional parking at the far southwest corner of the property for the future building. The Planned Development PD -7 is adopting the "U" zoning district regulations with the exceptions. (1) minimum side building line: none required, except where the side of a building abuts an adjacent zoning district or a street, then 20 feet side yard setback shall be required, (2) minimum parking will be 1 space per 300 square feet (3) the dumpster can be located within the landscape buffer and/or building setback, so long as said dumpster (s) are located to the rear of the building on the site (4) the billboard signage is limited to one relocated for the site with approval of the sign review board and compliance with city ordinances, (5) parking for primary use: off street, paved parking is permitted as a primary use on a lot within the District, so long as said parking is utilized for the uses contained within this Planned Development District. Chairman Shiflet asked if there is a billboard on the property currently. Clayton Comstock said the billboard is within the DART right -of -way on the east side of the tracks and because of the Loop 820 widening, the billboard will have to move. We are not sure where it will go but the church wanted the ability to put it on their property. Steven Cooper asked how far the northern entrance of the driveway will be shifted south? Steve Campbell said it will be shifted approximately 25 or 30 feet to the south. Regarding the billboard, it will be brought out of the easement onto the property so the CEC can gain additional funds to continue their outreach to the community. There would be regulations on the signage to be consistent with the church's image. Clayton Comstock said this is recommended by staff for approval. He also would recommend that sidewalk should be evaluated on the final plans before going to City Council. The Engineering Department did make a comment on their January 25, 2012 review at DRC regarding the sidewalk requirement and it just didn't make it on the plans before coming to P &Z. Chairman Shiflet opened the 'Public Hearing for ZC 2012 -02. No comments were made so he closed the Public Hearing and entertained a motion. 1,1 ».Zi1kTl =1 f Mike Benton motioned to approve ZC 2012 -02 subject to a sidewalk being installed along the entirety of the PD of Meadow Lakes driveway frontage. It was seconded by Don Bowen and approval unanimously (5 -0). M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. C.2 TR 2012 -01 Public Hearing and Consideration of amendments to Sections 118 -631 "Table of Permitted Uses" and 118 -001 "Definitions" of the North Richland Hills Zoning Ordinance. Proposed amendments include the addition of the following two previously unlisted uses to the table: Secondhand Dealer and Precious Metal Dealer as well as the definitions of these uses and other terms - Ordinance No. 3188 Presenter: Clayton Comstock Summarv: The purpose of Ordinance No. 3188 is to create two new and currently unlisted uses in the Zoning Ordinance's Table of Permitted Uses: Secondhand dealers and Precious metal dealers. Secondhand Dealers The City currently does not distinguish between the retail sales of new goods and the retail sales of used goods, other than "pawn shops" and "antique stores." These businesses may have benefits to the community; however the current regulations do not specifically address these businesses. Under Ordinance No. 3188, Secondhand dealers would be defined as follows: Secondhand dealer means any person or entity engaged in buying, selling, trading or handling any kinds of used or secondhand goods, wares or merchandise. The use would be permitted only with a special use permit in the NS Neighborhood Service, 0-1 Office, CS Community Service, HC Heavy Commercial, and the Center and Core Subzones of the TC Town Center Zone. This process will allow City Council to place certain stipulations on the use as well as determine if a specific location is appropriate. Secondhand dealers will continue to be governed by Chapter 18 of the City's Code (Businesses), which requires a license, detailed record keeping of items bought and sold, and retention periods for items bought by the business. Staff may shortly follow this zoning text revision with a complementing revision to Chapter 18. The ordinance also removes the definition and listed use for "Antique Shop," since the new definition for "Secondhand Dealer" covers antique shops as well. Precious Meta! Dealers Additionally, the continued increase in the price of gold and other precious metals has resulted in an interest of some to establish storefronts for precious metal dealers, also referred to as "gold and silver buyers." These businesses are now opening as a primary use, where precious metal buying has typically been an incidental use to a jeweler. Precious metal dealer means any person or entity engaged in purchasing article made of or containing gold, silver, platinum, or other precious metals or jewels of any description for the purpose of reselling the items in any form. Precious metal dealers would be added to the list of "Alternative Financial Establishments," since their business model is very similar to the other uses in that category. As such, precious metal dealers as a primary use would be permitted in the I- 2 Industrial District with approval of a Special Use Permit. Table of Permitted Uses As a result of the changes detailed above, the Table of Permitted Uses would be as follows (see table below). "Retail store and shop" and "Jeweler" were added here for reference; and "Alternative financial establishment" is shown, although no changes are proposed by the ordinance. q": chK (REMOVED) Secondhand dealer (NEW) Alternative financial establishment (including Precious Metal Dealer) Jewelers Retail store and shop C _ Q U N � .52 L� n) % V = 42 Sf] O .i E Q 7 7 Cti r U 43 7 c Q '3. t1f 0 L v va E a c s3 Z U 2 Q _w b Co Co z O P- 42 S S S S S P P P P S P P P P P S Incidental Uses Another item that is covered by Ordinance No. 3188 is the definition of an `incidental use." Staff is commonly confronted with uses that are meant to be accessory, or incidental, to the primary use but expand to be a primary use themselves. This new definition will allow staff to limit uses that were not approved as part of a Certificate of Occupancy to 15% of either the gross area of the business or the dross receipts of the business. Fifteen percent is used in many other communities when defining the limits of incidental uses. The new definition would read as follows: Incidental use means any use or combination of uses different from and subordinate to the primary use and which complements and/or supplements the primary use. Said use shall be operated for the benefit or convenience of the employees, visitors, or customers of the primary use. "Incidental" shall mean any activity occupying an area of less than fifteen percent (15 %) of the primary use or which generates gross receipts of not more than fifteen percent (15 %) of that of the primary use. An incidental use is also an accessory use. Staff Recommendation: Approval of Ordinance No. 3188. Planning & Zoning Commission Recommendation: The Planning & Zoning Commission recommended approval on March 1, 2012. Mike Benton motioned to approve TR 2012 -01, seconded by Mark Haynes. Bill Schopper denied. The motion passed (6 -1). Attachment Ordinance No. 3188 ORDINANCE NO. 3188 AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS BY AMENDING SECTIONS 118 -1, 118 -631 AND 118 -632 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCES; ADDING DEFINITIONS AND ADDING USES TO THE TABLE OF PERMITTED USES; PROVIDING FOR SEVERABILITY; PROVIDING A PENALTY FOR VIOLATIONS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER. WHEREAS, the City Council has received the recommendations of the Planning and Zoning Commission concerning the matters herein dealt with, which recommendations were made after the holding of a public hearing before said Commission on such matters; and WHEREAS, notice has been published of the time and place of a public hearing held before the City Council concerning the changes herein made, which public hearing has been duly held; and, WHEREAS, the City Council has determined that the amendment to the Comprehensive Zoning Ordinance herein made is in the best interest of the health, safety and general welfare of the citizens of the City of North Richland Hills; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS: 611X09191 1 ,fI That Section 118 -1 of the Code of Ordinances of the City of North Richland Hills, Texas, is hereby amended by amending or adding the following definitions: [3ec.118 -1. Definitions Accessory use: see "incidental use." Alternative financial establishment means a check cashing business, payday advance or loan business, money transfer business, precious metal dealer or car title loan business. Incidental use means any use or combination of uses different from and subordinate to the primary use and which complements and/or supplements the primary use. Said use shall be operated for the benefit or convenience of the employees, visitors, or customers of the primary use. "Incidental" shall mean any activity occupying an area of less than fifteen percent (15 %) of the primary use or which generates gross receipts of not more than fifteen percent (15 %) of that of the primary use. An incidental use is also an accessory use. Secondhand dealer means any person or entity engaged in buying, selling, trading or handling any kinds of used or secondhand goods, wares or merchandise. Precious metal dealer means any person or entity engaged in purchasing articles made of or containing gold, silver, platinum, or other precious metals or jewels of any description for the purpose of reselling the items in any form. EAx01 I[+1k THAT Section 118 -1 of the Code of Ordinances of the City of North Richland Hills, Texas, is hereby amended by deleting the following definitions: Secondhand merchandise, dealers or storage (screened) means the keeping, handling, storage or use of furniture, appliances and/or other merchandise or goods for sale or display; or an item which has previously been sold at the wholesale or retail level or previously used by an individual or business. Antique shop means an establishment offering for sale, within a building, articles such as glass, china, furniture or similar furnishings and decorations which have value and significance as result of age, design or sentiment. SECTION 3. THAT Sec. 118 -631 AND 118 -632 of the North Richland Hills Code of Ordinances be amended by amending the Table of Permitted Uses to add "Secondhand Dealer" as a use permitted only with a special use permit in the NS Neighborhood Service, 0-1 Office, CS Community Service, HC Heavy Commercial, and the Center and Core Subzones of the TC Town Center Zone. SECTION 4. THAT Sec. 118 -631 AND 118 -632 of the North Richland Hills Code of Ordinances be amended by amending the Table of Permitted Uses to delete "Antique shop" as a listed use. SECTION 5. Severability. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and section of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section 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 phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. Penalty. 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 ($2,000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. SECTION 7. Savings. All rights and remedies of the City of North Richland Hills are expressly saved as to any and all violations of the provision of any other ordinances regulating solicitation or canvassing activities that have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance but may be prosecuted until final disposition by the courts. E-1 X01 I [9] ► E.1! 1717 M. The City Secretary of the City of North Richland Hills is hereby directed to publish the caption and penalty of this ordinance in the official City newspaper. 1_1►1111119611:19X61 0 17 -111►I=111 PASSED AND APPROVED on this 26th day of 'March, 2012. CITY OF NORTH RICHLAND HILLS In Oscar Trevino, Mayor Patricia Hutson, City Secretary 1�1 x:191 11911;191 N t►,1;1:1III E X0 I I E'1l George A. Staples, City Attorney APPROVED AS TO CONTENT: John Pitstick, Planning & Development Director EXCERPT OF THE MINUTES FROM THE MARCH 1, 2012 PLANNING AND ZONING COMMISSION MEETING TR 2012 -01 Public Hearing and Consideration of amendments to Sections 118 -631 "Table of Permitted Uses" and 118 -001 "Definitions" of the North Richland Hills Zoning Ordinance. Proposed amendments include the addition of the following two previously unlisted uses to the table; Secondhand Dealer and Precious Metal Dealer as well as the definitions of these uses and other terms. Chairman Shiflet opened the Public Hearing. Clayton Comstock said ordinance 3188 is a text revision to define the classification for a new land use, "Precious Metal Dealers." These businesses buy gold, silver, and platinum in exchange for cash or check. Typically these businesses have low traffic, low employment and low storage. There is no sales tax generated from these businesses. At the February 2, 2012 Work Session, Staff presented this request with the four options of how it might be approached. The option recommended was to define Precious Metal Dealer and revise the definition of Alternative Financial Establishment to include Precious Metal Dealers in that definition, which would in effect limit it to the 1 -2 district with SUP approval. Staff created a new definition of Precious Metal Dealer meaning "any person or entity engaged in purchasing article made of or containing gold, silver, platinum, or other precious metals or jewels of any description for the purpose of reselling the items in any form." In addition, the definition for "alternative financial establishment" is amended to "a check cashing business, payday advance or loan business, money transfer business, precious metal dealer or car title loan business." The second portion the ordi'na'nce addresses is a new land use for secondhand dealers. This type of business certainly has a lot of (benefits. They encourage recycling and put cash in local residents' hands. with the tough economy there is high vacancies and low rent, many companies are trustworthy, established and organized. Some of the issues with resale are that some turn into junk shops, they cater to low socio- economic clients, deter national chains, and can cluster in blighted areas. They typically lack the financial backing to maintain property and inventory can spill over into public view. The recommendation from the February 2, 2012 Work Session was to require an SUP for these types of uses. Staff has defined secondhand dealer and is requesting they be allowed in 0 -1, NS, CS and HC districts with SUP approval. They would also be allowed in the Center and Core Subzones of the Town Center zoning district with SUP approval. There is already a definition for secondhand merchandise or storage on the books; we propose to remove that and put in its place a more concise definition, The new definition would read, "secondhand dealer means any person or entity engaged in buying, selling, trading or handling any kinds of used or secondhand goods, ware or merchandise. " This would include antique stores, book stores, secondhand book stores, AIV entertainment stores, clothing, kid's ware /toys, variety, and sports stores, among others. We will be eliminating the definition of antique store in our zoning ordinance as well, as they will fall under the new definition for secondhand dealer. We also propose a new definition for "incidental use" with a connection with secondhand dealers. We do recognize that some businesses have a certain small portion of their business that might be secondhand sales and we want to allow that without having to go through an SUP process as long as they can keep it contained to a certain percentage of their 'business. The new definition would be "incidental use means any use or combination of uses different from and subordinate to the primary use which complements and /or supplements the primary use. Said use shall be operated for the benefit or convenience of the employees, visitors, or customers of the primary use. "Incidental" shall mean any activity occupying an area of less than fifteen percent (15 %0) of the primary use or which generated gross receipts of not more than fifteen percent (15 %) of that of the primary use. An incidental use is also an accessory use. " Chairman Shiflet asked for clarification on the businesses with 15% requirement. Clayton Comstock said if a business for any reason was suspected of having an incidental use that was over 15 %, we would request or audit the business asking for receipts or we would measure the area in which that use would be generated. Chairman Shiflet stated typically the City attorney would put "whichever is greater' to clarify the ordinance. Clayton Comstock said he agreed with the need for clarification and would ask the attorney before it goes to City Council. Chairman Shiflet asked if anyone in the community has called or inquired about this use. Clayton Comstock said he has not talked to anyone about this but the precious metal dealer definition actually came from a request from a business in NRH that wanted to come in as a gold and silver buyer. That particular business owner requested a new and enlisted use process go into place which is where this came from. We have not had any input or response yet from any businesses or homeowners. Bill Schopper said he has concern about auditing the businesses. In other parts of the country cities have income taxes on businesses and get all the receipts. Are we opening up a can of worms asking to audit business and get receipts? He can see where we might be shown the door if we require that. Clayton Comstock said that is a good question. The ordinance has been reviewed by the City attorney and he didn't bring that point up; but it will be posed to him moving forward to City Council. What we see more often in other communities is that 15 % of the area. John Pitstick said our intent is not to audit but that these businesses need to be in the proper zoning district. If you went in as a clothing store and all the sudden you are selling 50% of it for used clothes, you would need to get a SUP. It is the ability for us to go in there and determine the actual percentages. It is not to put them out of business, just put in the proper zoning. It would not affect any current businesses in operation. Bill Schopper said his concern is the people that are really abusing ut are the ones that are going to be the troublemakers and not comply. The people that are conscience we will not have to worry about. Chairman Shiflet asked if the precious metal dealer or jewelry stores that do less than 15% can still operate. John Pitstick said yes they are fine. Chairman Shiflet asked if anyone else wished to speak for or against the Public Hearing, seeing none he closed the Public Hearing and entertained a motion. APPROVED Mike Benton motioned to approve TR 2012 -01, seconded by Mark Haynes. Bill Schopper denied. The motion passed (6 -1). M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. C.3 TR 2012 -02 Public Hearing and Consideration of 2012 Comprehensive Land Use Plan Map - Ordinance No. 3191 Presenter: John 'Pitstick TR- 2012 -02: Public Hearing and consideration of amending the Comprehensive Land Use Plan Map — Ordinance No. 3191 Staff Summary: The Comprehensive Land Use Plan Map was last updated in August 2009. Since that time, several changes have been made and a number of modifications to the map are needed. This is not a complete revision of the Comprehensive Land Use Plan, but merely an update to the map and land use table reflecting changes that have occurred since the 2009 map was approved. Primary reasons for this Comprehensive Plan update stem from the ongoing efforts to define the boundaries of the Iron Horse Transit Oriented Development District; defining the Little Bear Creek Corridor and accurately depicting recent zoning changes. A consensus has been reached with the owners of land in the core area of the proposed Iron Horse TOD district as part of the Camp Plan update and a consultant is being hired to develop a conceptual plan for the future Iron Horse station area. The Iron Horse plan will assist the city to move forward with the zoning of property and be eligible for regional grant funding for public improvements in the Iron Horse area. Following are the revisions to the Comprehensive Land Use Plan Map 1. Redefine the Iron Horse Transit Oriented Development boundary and change the remainder of the Bluffs at Iron Horse parcel to High Density Residential/Multi- Family 2. Changing all the approved Residential Planned Developments (R -PD and RI -PD) from Medium Density Residential to Low Density Residential. This includes the following: • La Fontaine • Highland Park • Liberty Village • Brynwyck • Town Walk Chase • Stonybrooke • West 'Hightower Place • Stonybrooke, Ph. Il • Crestwood 3. Display the boundaries of the Little Bear Creek Corridor. 4. Remove the Parks /Open Space designation at the former Recreation Center site in Home Town. 5. Amend the designation of the Oncor -owned lot on the north side of Country Place Drive which contains utility appurtenances and is primarily in the flood plain — Change to Public /Semi Public and Parks /Open Space. 6. Displaying the streets on the Home Town Regulating Plan 7. Map updates in response to recent zoning changes as required by ordinances: • Forest Glen East lots, zoned Office, on Azalea Ct (street not constructed) off of North Tarrant Parkway — Changed from Retail to Office. • Thornbridge East lots, zoned Office, at Belshire Dr and Precinct Line Road — Changed from a mix of Office /Neighborhood Service to all Office. • 1.92 acre parcel between Park Place Dr and Sayers Ln — Changed from Retail to Low Density Res. • New Recreation Center lot on Hawk Ave — Changed from a mix of Office /Neighborhood Service to Public/Semi-Public • Northgate Church lot at 4247 Road to the Mall — Changed from Office to Public/Semi-Public • NRH Baptist Church lot at 6955 Boulevard 26 — Changed former lots along 'Boulevard 26 and Vance Rd from Retail to Public /Semi - Public to match the rest of the lot General percentages of land uses by gross acres in the updated Comp Plan Map include approximately 53% for Residential, 13 % for Public /open space /Parks, 15% for Commercial and 19 % for Roads & Easements. Planning & Zoning Commission Recommendation: The Planning & Zoning Commission met on March 15 and recommended unanimous approval. Staff Recommendation; Approval of the 2012 Comprehensive Land Use Plan Map Update and Ordinance No. 3191. ORDINANCE NO. 3191 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS AMENDING THE COMPREHENSIVE 'PLAN. WHEREAS, Article XIV, Section 3 of the Charter of North Richland Hills provides for the preparation of a Master Plan to guide development in the City; and WHEREAS, Chapter 213, Texas Local Government Code provides procedures for adopting and amending comprehensive plans, including the holding of a public hearing; and, WHEREAS, public hearings have been held by both the Planning and Zoning Commission and the City Council as required by Charter and state law; and WHEREAS, the Planning and Zoning Commission of the City of North Richland Hills has forwarded a recommendation to the City Council for adoption of amendments to the Comprehensive Land Use Master Plan. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS. Section 1: THAT the Comprehensive Plan codified as Part III of the North Richland Hills Code of Ordinances is hereby amended by amending the Comprehensive Land Use Plan, Plate 2 and Table 1 to read as shown in the Exhibits to this Ordinance. Section 3: This ordinance shall be in full force and effect immediately upon passage. f:1►19119E_1& *X63017- AlIr140 PASSED AND APPROVED this 26th day of March, 2012. CITY OF NORTH RICHLAND HILLS ATTEST: Oscar Trevino, Mayor Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney 1,1:21=191T1 =111wi a&X01672 10=1►16 John Pitstick, Planning & Development Director Table 1 Future Land Use City of North Richland Hills, Texas Residential Use 5711.9 43.9 Low Density 5158.3 44.1 Medium Density 135.4 1.2 High Density 387.1 3.3 Manufactured Home 31.1 0.3 Parks /Open Space 868.4 7.4 Public /Semipublic 615.5 53 Office 172.7 1.5 Neighborhood Service 169.2 1.4 Retail 970.1 8.3 Town Center Hometown 240.2 2.0 Smithfield TOD 207.0 1.8 Iron Horse TOD 154.2 1.3 Commercial 277.9 2.4 Industrial 80.3 0.7 Right -of -way, Easements, Railroads 2218.6 18.9 Total Acreage Within the City 11,686 100.0 COMPREHENSIVE LAND USE PLAN MAP r . 4002 60.0 80oc— oc.?O � � 6 "RH COMPREHENSIVE LAND USE PLAN Ad.p&.D.wi March 2b,24M 0,di—n— Nn. 3191 A Cap yrtkepadvr Pial .�01 — —f— -.J" te fiW— L L T . .......... .. "RH COMPREHENSIVE LAND USE PLAN Ad.p&.D.wi March 2b,24M 0,di—n— Nn. 3191 A Cap yrtkepadvr Pial .�01 — —f— -.J" te fiW— EXCERPT FROM THE MINUTES OF THE MARCH 15, 20'12 PLANNING AND ZONING COMMISSION MEETING TR 2012 -02 Public Hearing and Consideration of U Public Hearing and Consideration of Updates to the Comprehensive Land Use Plan Map to reflect recent Zoning Changes and other updates to the Comprehensive Land Use Plan Map to reflect recent Zoning Changes and other updates. Chad VanSteenberg came forward stating the Comprehensive Land Use Plan Map was last updated in August 2009. Since that time, several changes have been made and a number of modifications to the map are needed. This is not a complete revision of the Comprehensive Land Use Plan, but merely an update to the map and land use table reflecting changes that have occurred since the 2009 map was approved. The primary reasons for this Comprehensive Plan update stem from ongoing efforts to define the boundaries of the Iron Horse Transit Oriented Development District; defining the Little Bear Creek Corridor and accurately depict recent zoning changes. A consensus has been reached with the owners of land in the core area of the proposed Iron Horse TOD district as part of the Camp Plan update and a consultant is being hired to develop a conceptual plan for the future Iron Horse station area. The Iron Horse plan will allow the city to move forward with the zoning of the property and be eligible for regional grant funding for public improvements in the Iron Horse area. The following changes are being proposed to the Comprehensive Land Use Map: 1. Redefine the Iron Horse Transit Oriented Development boundary and change the remainder of the Bluffs at Iron Horse parcel to High Density Residential I Multi - Family. 2. Changing all nine of the Residential Planned Development s (R -PD and RI PD) from Medium Density Residential to Low Density Residential. This includes the following: La Fontaine, Liberty Village, Town Walk Chase, West Hightower Place, Crestwood, Highland Park, Brynwyck, Stonybrooke, Stoneybrook Ph II. 3. Display the boundaries of the Little Bear Creek Corridor. This was not on the previous versions of the plan and the boundaries have been set by development around it. 4. Remove the Parks /Open Space designation at the former Recreation Center site in Home Town. This is where Bridge Street meets the Home Town lakes. 5. Amend the designation of the Oncor -owned lot on the north side of Country Place Drive which contained utility appurtenances and is primarily in the flood plain for Little Bear Creek. It will change to Public /Semi Public and Parks /Open Space. 6. Displaying the streets on the Home Town Regulating Plan. 7. Reflect zoning changes that have taken place since the last map update. • Forest Glen East lots, zoned Office, on Azalea Ct (street not constructed) off North Tarrant Parkway — changed from Retail to Office • Thornbridge East lots, zoned Office, at Belshire Drive and Precinct Line Road — changed from a mix of Office /Neighborhood Service to Office. • 1.92 acre parcel between Park Place Drive and Sayers Lane — changed from Retail to Low 'Density Residential New Recreation Center lot on Hawk Avenue — changed from a mix of Office/ Neighborhood Service to Public /Semi- Public. Northgate Church lot at 4247 Road to the Mall — changed from Office to Public/Semi-Public. • NRH Baptist Church lot at 6955 Boulevard 26 — changed former lots along Boulevard 26 and Vance Road from Retail to Public /Semi - Public to match rest of the lot. 0 The right -of -way being adjusted off 820 to show all the property being taken in the widening of the project. Along with the map, the ordinance includes a table with contains general percentage of land uses by gross acre, approximately 53% for Residential, 13 % for Public /Open Space /Parks, 15% for Commercial and 19% for Roads and Easements. Mr. VanSteenberg concluded saying Staff recommends approval to the Comprehensive Land Use Plan as well as Ordinance No. 3191. Chairman Shiflet opened Public Hearing TR 2012 -02 for comments, seeing none he closed the Public Hearing and entertained a motion. APPROVED Steven Cooper motioned to approve TR 2012 -02, seconded by Don Bowen. The motion passed unanimously (5 -0). M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. D.1 GN 2012 -026 Award a Professional Services Agreement in the amount of $49,500 to Needham McCaffrey Associates for Development of an Iron Horse Core Development Plan Presenter: John Pitstick Summarv: A joint professional services agreement is being recommended between the City of North Richland Hills and Skeeter & Bucky, LP with the planning firm of Needham McCaffrey Associates to develop a conceptual core station area plan for the Iron Horse Transit Oriented Development (TOD). The City is obligated to compensate the consultant a total of $49,500 and Skeeter & Bucky, LP, the land owners of approximately 13 acres at the proposed rail station area, is obligated to pay a total of $24,500 as part of the professional services agreement. Completion of the Iron Horse station area plan will allow the city to move forward with rezoning of the Iron Horse TOD area and be eligible for potential regional sustainable development grant funding for public improvements to enhance the Iron Horse district in preparation for mixed use development. General Description: Since the adoption of the Transit Oriented 'Development code in 2009, the Smithfield TOD area was rezoned and the city has received a $2.8 million grant from the Council of Governments for construction of the extension of Snider Street. The grant was a direct result of the city zoning the Smithfield TOD area. The city is optimistic about working with private developers for vertical mixed use development adjacent to the proposed Snider Street extension. Staff is encouraged about the Iron Horse station area plan and the support and financial commitment by Dan Smalley from Skeeter & Bucky. With the original adoption of the TOD Code, Mr. Smalley had some reservations about the TOD plan and chose not to support changes to the Comp Plan for TOD on his property. Mr. Smalley's primary concerns included the fact that the proposed rail station site and the potential use of a large parking 'lot dedicated to commuter rail would take up most of his property and not allow for commercial development on his property. Since that time staff has had numerous discussions and have reached an agreement with Skeeter & Bucky under City Council approval to move forward with a professional services contract that will create an Iron Horse station area plan. Robin McCaffrey from Needham McCaffrey will be the principal consultant for this contract. Mr. Smalley is fully supportive of Needham McCaffrey and will be contributing one third of the cost of the Iron Horse Plan. The Study should be completed within 4 months or by the end of July. Key aspects of the Iron Horse planning contract include: 1) Key coordination with the "T ", the City and directly affected private land owners for placing the Iron Horse station and defining commitments for parking at the station. 2) Review and recommendations regarding potential revisions to the overall TOD Code. 3) Identification of key public and private improvements necessary to maximize mixed use development at Iron Horse. 4) A graphic concept plan for the Iron Horse core station area to be included as an update to the TOD Code. 5) A phasing and costing evaluation plan to facilitate potential formation of public /private partnerships. 0) Public presentation of the Iron Horse core area plan to the Planning & Zoning Commission and City Council. Recommendation: To approve a professional services agreement for the development of an Iron Horse core area study with Needham McCaffrey Associates in the amount of $49,500 and authorize the City Manager to execute such agreement. P4 KH IRON HORSE TOD VISION PLANNING CONTRACT The parties to this contract are the City of North Richland Hills ( "City"), Skeeter & Bucky, LP. ( "S &B ") and Needham McCaffrey Associates, Inc. ( "Consultant ") for the purpose of documenting the terms of an agreement for Consultant to perform planning services as described herein for City and S &B and for compensation of Consultant for such services. The term "Client" or "Clients" shall be deemed to refer to City and S &B. Consultant agrees to perform Base Assessments (hereinafter Part One)and a Plan (hereinafter Part Two) for the Core Area of the proposed Iron Horse TOD and other areas of the Iron Horse TOD owned by S &B. and Plan Implementation Services (hereinafter Part Three). Parts One and Two shall run sequentially and be at least 75% complete before the initiation of Part Three with the exception of meetings, as described in Part Three and are determined necessary for completion of Part One or Part Two, which may be conducted when necessary. City agrees to pay Consultant $49,504.00 for Parts One and Two, including reimbursables, upon invoice from Consultant. S &B agrees to pay consultant $24,540.40 for Part Three upon invoice from consultant. Consultant agrees to invoice City and S &B separately. SCOPE OF WORK Part One: Base Assessment It has been a vision of the City to promote Transit- Oriented Development at the fiiture Iron Horse "T" Station. This vision includes vertical mixed use development and creation of a pedestrian environment within the Development core (that land area surrounding the future station location). Vertical mixed use development is a complex development issue that requires an understanding of how the vision will be implemented within the current constellation of property owners, property parcelization and other development determinants. Task 1.1: Area Assessment. Before any significant planning work can be done, an initial assessment must be conducted. During this assessment, all necessary base data will be collected, reviewed and, where necessary, formatted for Plan Generation and Implementation. Task 1.2: "T" Parking Evaluation. Key to attaining the TOD vision is the nature of the station that the "T" will ultimately build at Iron Horse. If the ultimate station is like Arapaho in Richardson (a station terminal surrounded by parking) then it will be difficult to overcome the spatial isolation of the station and support vertical mixed use. If on the other hand, construction of a more integrated station is likely (with structured parking) then the power of the station as a driver for development dramatically changes. The Planning Team will conduct a series of dialogues with the "T" as necessary to reach some level of agreement regarding the nature of the station to be constructed. It will be difficult for property owners to risk the possible restriction of rezoning without more predictability regarding the "T" issue. Part Two: The Plan Once the development potentials, constraints, resources, and liabilities have been discovered and evaluated, a plan synthesizing all such information must be formulated. This plan identifies general development (in ternis of form and density) but more importantly identifies basic points of agreement among all parties that define a condition for investment that investors find appealing- Task 2.1: Ordinance Review/Revision. Consultant will review the existing TOD ordinance proposed for the Iron Horse Area, and give recommendations regarding revision, based on property owner and City input. Such recommendations will address concerns of the City and Property Owners that arose during the planning process and clarify points of uncertainty. Task 2.2: Review of Iron Horse Land Use Regulating Plan. The Land Use Regulating Plan will harmonize the City's preferred land uses with existing entitlements and property capabilities to assure that the TOD vision is developable. The Regulating Plan Review will identify development zones in the project area and clarify appropriate land use categories for each zone. The Land Use Regulating Plan will therefore define which development zone will be required to produce a concept plan prior to future property rezoning. This document is intended to become an exhibit in the final version of the TOD Ordinance. Task 2.3: Iron Horse Station Area Concept Plan. The Planning Team will produce an overall Concept Plan for the Iron Horse Station area. The concept plan is a composite plan document showing the nature of development gathered to the core of the TOD project area and property owned by Skeeter & Bucky, LP in a manner acceptable to City and S &B. The Concept Plan will consist of a "graphics package" of map layers generated in plan view. The package will consist of a. Parcel Plan. Based on dialogues with property owners and City, Consultant will construct a parcel plan layer of the Concept Plan to indicate how this site can be staged for development. Curb cuts will also be indicated in the parcel plan to indicate points of ingress/ egress. b. Public/ Private Improvements. This Layer will identify the thematic structure of the Iron Horse Station area and address key interfaces between the public domain and private development, as a basis for further dialogue between the property owners and city regarding possible public/ private partnership opportunities. C. Composite Plan Graphic. The Composite Graphic will illustrate building plates, parking/circulation, urban design enhancements, and public /private open spaces. Task 2.4: Phasing Plan/Costing. The Planning Team will produce a phasing plan which breaks public components of the plan into sets of related projects. Cost evaluations for key public enhancement improvements (as identified by the city) will be provided by Consultant with the cost of utilities and street construction provided by the City. This budget information will be used to evaluate economic impact of the proposed development and to facilitate the potential formation of public/ private partnerships described in Task 3.4 (below). Part Three: Plan Implementation Implementation is key to making the Vision Plan a reality. The Tasks in Part Three include meetings with the contracting parties as well as the T. Task 3.1: Property Owner and City Meetings. To ensure that the Plan adequately addresses the concerns of the Iron Horse Crossing property owners and the City of North Richland Hills, Needham McCaffrey will attend 1 meeting with each party in order to acquire necessary inputs regarding the Plan. Any meetings in excess of these 2 meetings (1 per party) will be billed on a per - meeting basis, and will be scheduled upon and according to client request. Task 3.2: Coordination with "T ". The Planning Team will build upon earlier discussions with the "T" and coordinate all representations of the plan that show or relate to the "T" station are supported by the "T ". Key plan review will be conducted with the "T" staff and comments made during such review will be brought into the plan with Client approval. Documentation of "T" input and response to use of that input will be maintained. This Task allows for 1 initial meeting with the T to coordinate their needs, abilities and expectations regarding Iron Horse TOD. If other meetings are necessary, they will be billed on a per - meeting basis. Task 3.3: Presentation of Final Plan. Needham McCaffrey will present the final plan at two (2) meetings to be determined by the parties identified in this contract. At least one of these presentations will be made at a North Richland Hills public hearing, such as a Council Hearing or a P &Z hearing. Task 3.4: Plan Presentation, digital file. A digital copy of the presentation made to the client group (Task 3.3 above) will be given to the client group for future use. Task 3.5: Plan Report Document. One color, bound hard copy and one digital pdf copy of a final plan report document will be given to each party identified in this contract. COST OF SERVICES Part One: Development Evaluation Task 1.1: Area Assessment Task 1.2: "T" Parking Plan Evaluation Part Two: The Plan * Task 2.1: Ordinance Review and Recommendation Task 2.2: Land Use Regulating Plan Task 2.3: Iron Horse Station Area Concept Plan Task 2.4: Phasing/Costing of Public Improvements ** Total excluding reimbursables Reimbursable expenses Total for Parts One and Two including reimbursables Part Three: Implementation Task 3.1: Property Owner and City meetings (1 meeting per party)* Additional meetings with property owners or City Task 3.2: Coordination with "T " (1 meetings) Additional meetings with "T" Task 3.3: Presentation of Final Plan (2 meetings) Task 3.4: Plan Presentation, digital file Task 3.5: Plan Report Document $ 5,500 $2,500 $3,000 $39,500 $ 3,500 $ 5,500 $22,500 $8,000 $45,000 $4,500 * ** $49,500 $2,500 $1,000/ meeting $1,500 $1,200/ meeting $6,500 $3,000 $11,000 Reimbursable expenses for Part Tin-ee will be paid out of allowance for Part One and Two but shall not exceed that allowance. Total for Part Three $24,500* * These tasks will only be performed as they pertain to the property owned by S &B and land designated by the City within the core area of the TOD District. Should other property owners enter this agreement in the future; the fees will be adjusted to address parcelization, public improvements (and costing) and more specific land use allocation on their property, if/as requested by said property owner.. ** Assuming base data for infrastructure and street costs are provided by the city * ** The reimbursable budget established herein may pay reimbursable expenses incurred in parts One, Two or Three up to the limits of the reimbursable budget with no further obligation by the City for reimbursable expenses unless previously approved by the City. ADDITIONAL SERVICES/HOURLY FEE SCHEDULE Services requested, but not specifically included in the scope of services listed above, will be considered additional services. Modifications to drawings, after approval by City, as a result of changes requested by City or after approval by S &B as a result of changes requested by S &B or other consultants will he considered additional services and billed at an hourly rate as follows: Principal III $185.00 Associate $140.00 Project Manager It $110.00 Project Manager I $100.00 Designer II $ 90.00 Designer I $ 75.00 Intern $ 50.00 CONDITIONS The following is a listing of contractual conditions that apply to this proposal: 1. The City will provide the following: a. Boundary and general survey locating structures, property lines, utilities that cross the property and interior lobby plans in AutoCAD format. b. All studies, plans and policies effecting development of the planning area C. Budgetary Considerations 2. Not included are the following: a. Vehicular Paving Improvements b. Utilities (water, sewer, storm, electrical, cable, telephone, etc.) C. Electrical or mechanical engineering d. Project Signage and sign graphics e. Design of new or additional elements added to the scope of work f. Redesign of elements due to site plan changes (i.e., buildings relocate, site grading changes) g. Water features h. Illustrative plans, models and drawings not specifically described in the Scope of Services i. TDLR Submittal j . As Built Drawings 3. Consultant Associates may subcontract consultants in the performance of any services described in this agreement. In the event that Needham McCaffrey is acquired, this contract shall transition to acquiring firm with the same staff and Robin McCaffrey remaining as the project team. 4. Consultant does not act as General Contractor in any way, or accept responsibility, for poor craftsmanship. 5. The above- described compensation for Consultant includes normal reimbursables. 6. Either City or Consultant may terminate this contract with (7) seven days written notice. Upon termination, City will be responsible for payment of all Consultant fees through the date of termination. If either the City or Consultant elect to terminate prior to completion of Parts 1 and 2, S &B shall only be responsible for the costs of Part 3 that have been completed up to such time. 7. Compensation for all services shall be paid in Dallas, Dallas County, Texas. 8. Invoice Schedule: Billing will be on a design progress basis at the end of each month. 9. Terms: Net thirty (30) days from invoice date. Finance charge of 1.5% per month (18% per annum) will be added to accounts over thirty (30) days past due. Reasonable Attorney's fees will be charged, if necessary, to collect on unpaid invoices. 10. If the client fails to make payments to Consultant in accordance with this agreement, such failure shall be considered substantial non - performance and cause for termination or, at Consultant's option, cause for suspension of performance of service under this agreement. If Consultant elects to suspend service, prior to suspension of services, Consultant shall give seven (7) days written notice to the client. In the event of a suspension of services, Consultant shall have no liability to the client for delay or damage caused to the client because of such suspension of services. Before resuming services, Consultant shall be paid all sums due prior to suspension and any expenses incurred in the interruption and resumption of Consultant's services. Consultant's fees for the remaining services and the time schedules shall be equitably adjusted. 11. The Texas Board of Architectural Examiners has jurisdiction over complaints regarding the professional practices of persons registered as Landscape Architects in Texas. Texas Board of Architectural Examiners, P.D. Box 12337, Austin, Texas 78711 -2337; tele: 512.305.9000; fax: 512.305.9005; e-mail: www.tbae.state.tx.us. 12. LIMITATION OF LIABILITY: To the maximum extent permitted by law, the Client agrees to limit Consultant's liability for the Client's damages to the sum of Consultant's fees indicated in this proposal. This limitation shall apply regardless of the cause of action or legal theory pled or asserted. 13. By making visits to the site, Consultant is not assuming the responsibilities of the builder, Construction Manager, Construction Superintendent or any of their agents or subcontractors. 14. Plans, drawings and specifications or other writings or documents prepared or provided by Consultant hereunder are prepared for this Project only, but may be used by Consultant for purposes of illustrating the scope and nature of project involvement. Consultant shall provide Client with a reproducible set of drawings and specifications for its records. They shall not be used by Client for other projects or extensions to the project without the written agreement of Consultant. 15. It is expressly understood and agreed that Consultant shall not have control of, or charge of, or be responsible for construction, means, methods, techniques, sequences or procedures, or for safety precautions or programs in connection with the Project or for the acts or omissions of any contractor, subcontractor or other persons performing work for the Project and Client shall indemnify Consultant and hold Consultant harmless from and against any and all claims, demands, losses, costs, liabilities and damages including, without limitation, reasonable attorney's fees and expenses, incurred by Consultant and arising out of or related to any of the aforesaid. 16. Notwithstanding any other provision of this Agreement, Consultant and Consultant's sub - consultants shall have no responsibility for the discovery, presence, handling, removal, disposal or exposure of persons to hazardous materials in any form at the project site, including but not limited to asbestos, asbestos products, mold, polychlorinated biphenyl (PCB) or other toxic substances. 17. The scope of work described in Parts One and Two of this contract shall be completed by July 30, 2012 unless extension of completion is agreed to by both the City of North Richland Hills and S &B or other event beyond the control of either party or consultant prevents such completion. This agreement is made and entered into effective March , 2012. Needham McCaffrey Associates Inc. to Robin McCaffrey, AICP. ALk Senior Principal Skeeter & Bucky, LP. M. Dan Smalley, General Partner City of North Richland Hills to Mark Hindman City Manager M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. E.0 PUBLIC WORKS M KH 1001110 106] 10 LTA :11►►' Eel :L1►1901►IV►I From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. E.1 PW 2012 -006 Authorize the City Manager to Execute a Professional Service Agreement with the RJN Group, Inc. in the Amount of $153,185 for Utility Capital Project UT1203 Presenter: Jimmy Cates Summarv: Council is being asked to allow the City Manager to execute a Professional Service Agreement for the CIP Project identified as "UT1203 — Sanitary Sewer System Rehabilitation of Main Lines" in the Utility Capital Projects Budget for an amount of $153,185. General Descriration: This project will consist of replacing segments of sanitary sewer main lines in the portion of the city located south of Northeast Loop 820 (Map Attached). Some of the improvements will consist of the standard open trench construction and some will consist of the city using the latest technology in pipe bursting. Approximately 8,000 linear feet of sanitary sewer main lines will be replaced with this project. The professional service portion of the project will consist of the preliminary design, survey, and sub - surface utility engineering of the sanitary sewer main lines. Staff followed the city's policy for procuring professional services for the design of this project. Requests for Qualifications (RFQs) were sent to firms known to do this type of work. A total of 22 firms submitted Statements of Qualifications (SQQs). The staff selection committee reviewed all SOQs and unanimously selected the RJN Group, Inc. as having the most comprehensive qualifications for the design of this project. The RJN Group, Inc. is an established Texas consulting engineering firm that was founded in 1975, with offices in Dallas and Garland. RJN has eight Texas licensed professional engineers on staff. In the past ten years, RJN's engineers have completed design work for more than 1,400,000 linear feet of sanitary sewer main line rehabilitation. RJN is one of a few engineering consulting firms that specialize in sanitary sewer collection system evaluation and follow -up rehabilitation. In addition RJN has successfully completed projects for the city in the past. Some of the past projects include: Flow Monitoring and sewer system assessments of the city's sanitary sewer basins in the southern section of the city Phase I (Year 2010) Sanitary Sewer Assessment Phase II (Year 2011) Sanitary Sewer Assessment RJN's knowledge of the project sites /system conditions gained from the Phase I and II Sanitary Sewer Assessments will help to expedite the project start -up, the preliminary design efforts, and reduce city staff time for the design of the project. The project's approved budget for design is $300,000. The budget was established assuming the construction method would need to utilize the open trench method which can be more expensive in certain situations. RJN has reviewed the problems and believes that the trenchless technology (pipe bursting) can be used and would be less expensive. Staff has negotiated a fee amount of $153,185 with the RJN Group for the design of the project. The professional service agreement outlines the scope of work in Exhibit B ('Basic Engineering Services), Exhibit C (Special Engineering Services), Exhibit D (Additional Engineering Services), Exhibit E (Services to be Provided by the City), and Exhibit F (Compensation for Sanitary Sewer Design). Listed below are the key items within the scope of work: Design Phase • Project Administration and Management • Prepare Preliminary Construction Plan Sheets • Prepare Final Construction Plan Sheets • Prepare specification and Estimates Biddina Phase • Assist City with Contract Services • Assist the City in Evaluating 'Bid Proposals • Provide and distribute Bidding Documents Construction Phase • Assist the City in Conducting Pre - Construction Meetings • Review all Shop Drawings, Schedules, Test Results, and Submittals • Perform Site Visits as Required • Provide Mark -Ups for Record Drawings Easements and Hiahwav Permits • Provide Technical Information for Location of Easements • Prepare Permits for State Highway Crossings as Required Survev • Establish Survey Control Along Segment Lines • Perform As -Built and Right -of -Way Research • Construction Observation • Perform Construction Observations During Construction In Exhibit A, the engineering agreement indicates a schedule for the work as follows: Tasks Lenqth of Time Communication /Administration 8 Months Condition /Construction Method Review 1 Month Survey 2 Months Preliminary Design 3 Months City Review /Final Plans 2 Months Advertise men tlTabulation /Recommendation 2 Months Once the design work is completed, construction on the Project should stark in December of 2012. Recommendation: PW 2012 -006, Authorize the City Manager to execute a Professional Service Agreement with the RJN Group, Inc. in the Amount of $153,185 for Capital Project UT1203. City of North Richland Hills, Texas t 2012 Sanitary Sewer Rehabilitation Th. Corm Gs Cu I-- Sns 5 drnwrn AGREEMENT FOR ENGINEERING SERVICES BETWEEN THE CITY OF NORTH RICHLAND HILLS AND RJN Group, Inc. I. INTRODUCTION 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 Mark Hindman, its duly authorized City Manager (hereinafter called "CITY "), and RJN Group, Inc., a Texas corporation, acting by and through Hugh M. Kelso; its duly authorized Principal (hereinafter called "ENGINEER "). WITNESSETH, that CITY desires professional engineering services in connection with the Rehabilitation / Replacement of Sanitary Sewer Lines in Basins 7, 8, 10, and 13. NOW, THEREFORE, CITY and ENGINEER, in consideration of the mutual covenants and agreements herein contained, do mutually agree as follows: IL PROJECT In this Agreement, the "PROJECT" means the engineering design services for rehabilitation/ replacement of 23 line segments located in Basins 7, 8, 10, and 13 south of Loop 820 (described more fully in Exhibit B) in accordance with the Public Works Design Manual, applicable CITY codes, regulations and standards. III. BASIC AGREEMENT ENGINEER is an independent contractor and undertakes and agrees to perform professional engineering services in connection with the PROJECT, as stated in the sections to follow. It is understood and agreed that ENGINEER 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 ENGINEER's employees or subcontractors of the tasks contemplated by this contract. All engineering 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 ENGINEER as set forth in Section VIII: "Compensation" and Exhibit F: "Compensation ". IV. SCOPE OF ENGINEER'S SERVICES ENGINEER shall render the professional services necessary for development of the PROJECT, in accordance with the schedule in Exhibit A: "Project Schedule" and as detailed in Exhibit B: "Basic Engineering Services ", said exhibits being attached hereto and incorporated herein for all purposes. ENGINEER shall be responsible, to the level of competency presently maintained by other practicing professional engineers 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. V. SPECIAL ENGINEERING SERVICES (N /A) The CITY will pay the ENGINEER for Special Engineering Services as indicated in Exhibit C: "Special Engineering Services ", attached hereto and made a part of this Agreement. LTA WI1111 ]i1101►F :10 *eC01►14=1N1► RIM =1ZIT1DMI The CITY will pay the ENGINEER for Additional Engineering Services as indicated in Exhibit D: "Additional Engineering Services ", attached hereto and made a part of this Agreement. VII. SCOPE OF CITY SERVICES The City will furnish items and perform those services as identified in Exhibit E: "Services to be provided by the City ", attached hereto and made a part of this Agreement. L ►111Wd0] A. In consideration of the services described herein, CITY shall pay and ENGINEER shall receive compensation in accordance with Exhibit IF: "Compensation ". B. Total payments including without limitation salary and reimbursable expenses, to ENGINEER by CITY for the services stated in Section IV and Section V above shall not exceed One Hundred Fifty Three Thousand One Hundred Eighty Five Dollars ($153,185.00). C. CITY may authorize additional services to be provided by ENGINEER as mutually agreed upon by the parties. Any authorization for additional services shall be given to ENGINEER by CITY in writing and approved by CITY. D. CITY and ENGINEER understand that the variables in ENGINEER's cost of performance may fluctuate. The parties agree that any fluctuation in ENGINEER's costs will in no way alter ENGINEER's obligations under this Agreement nor excuse performance or delay on ENGINEER's part. IX. OWNERSHIP OF DOCUMENTS All completed or partially completed evaluations, reports, surveys, designs, drawings and specifications prepared or developed by ENGINEER 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 ENGINEER shall not be liable for the use of such drawings for any project other than the PROJECT described in this Agreement. X. INDEMNITY ENGINEER SHALL INDEMNIFY AND HOLD HARMLESS CITY AND ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM ANY LIABILITY ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON OR PROPERTY, INCLUDING COURT COSTS AND REASONABLE ATTORNEYS' FEES INCURRED BY CITY, PROXIMATELY CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OF ENGINEER OR ITS OFFICERS, AGENTS, SERVANTS, CONTRACTORS, OR EMPLOYEES IN THE EXECUTION, OPERATION, OR PERFORMANCE OF THIS AGREEMENT. Approval by CITY of contract documents shall not constitute or be deemed to be a release of the responsibility and liability of ENGINEER, its officers, agents, employees and subconsultants, for the accuracy and competency of the services performed under this Agreement, including but not limited to evaluations, reports, surveys, designs, working drawings and specifications, and other engineering documents. Approval by CITY shall not be deemed to be an assumption of such responsibility and liability by CITY for any error, omission, defect, deficiency or negligence in the performance of ENGINEER's professional services or in the preparation of the evaluations, reports, surveys, designs, working drawings and specifications or other engineering documents by ENGINEER, its officers, agents, employees and subconsultants, it being the intent of the parties that approval by CITY signifies CITY's approval of only the general design concept of the improvements to be constructed. In this connection, ENGINEER and its subconsultants shall indemnify and hold CITY and all of its officers, agents, servants, and employees harmless from any loss, damage, liability or expenses, on account of damage to property and injuries, including death, to any and all persons, including but not limited to officers, agents or employees of ENGINEER or its subconsultants, and all other persons performing any part of the work and improvements, which may arise out of any negligent act, error, or omission in the performance of ENGINEER's professional services or in the preparation of evaluations, reports, surveys, designs, working drawings, specifications and other engineering documents incorporated into any improvements constructed in accordance therewith; ENGINEER shall defend at its own expense any suits or other proceedings brought against CITY and its officers, agents, servants and employees or any of them on account of the foregoing described negligent acts, errors or omissions, and shall pay all expenses and satisfy all judgments which maybe incurred by or rendered against CITY, its officers, agents, servants and employees or any of them, in connection with the foregoing described negligent acts, errors, or omissions; provided and except however, that this indemnification provision shall not be construed as requiring ENGINEER to indemnify or hold CITY or any of its officers, agents, servants or employees (harmless from any loss, damages, liability or expense, on account of damage to property or injuries to persons caused by defects or deficiencies in design criteria and information furnished to ENGINEER by CITY, or any deviation in construction from ENGINEER's designs, working drawings, specifications or other engineering documents. XI. INSURANCE For the duration of this Agreement, ENGINEER shall maintain the following minimum public liability and property damage insurance which shall protect ENGINEER, its subcontractors, its subconsultants and CITY from claims for injuries, including accidental death, as well as from claims for property damage which may arise from the performance of work under this Agreement. ENGINEER shall provide a Certificate of Insurance verifying that the following minimum limits of coverage are provided: A. Worker's Compensation Insurance: Statutory requirements ($ 300,000 minimum) B. Comprehensive General Liability and Bodily Injury: Bodily Injury $ 500,000 per person, or $ 1,000,000 per occurrence; and Property Damage $ 100,000 each occurrence; or Combined Single Limit $ 1,000,000 aggregate C. Comprehensive Automobile Liability: Bodily Injury $ 500,000 per person, or $ 1,000,000 per occurrence; and Property Damage $ 100,000 each occurrence; or Combined Single Limit $ 1,000,000 aggregate D. Professional Liability: Errors and Omissions $ 1,000,000 The Certificate of Insurance shall contain a provision that such insurance cannot be canceled or modified without thirty (30) days prior written notice to CITY. XII. ARBITRATION No arbitration arising out of or relating to this Agreement shall occur without both parties' written approval. XIII. TERMINATION AND SUSPENSION A. CITY may terminate this Agreement at any time for convenience or for any cause by a notice in writing to ENGINEER. Either CITY or ENGINEER 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, ENGINEER 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 ENGINEER a reasonable amount for services performed prior to such termination, which payment shall be based upon the payroll cost of employees engaged on the work by ENGINEER up to the date of termination of this Agreement and for subcontract and reproduction in accordance with the method of compensation stated in Section VIII: "Compensation" hereof. In the event of termination, the amount paid shall not exceed the amount appropriate for the percentage of work completed. XIV. SUCCESSORS AND ASSIGNS CITY and ENGINEER each bind themselves and their successors, executors, administrators and assigns to the other party of this Agreement and to the successors, executors, administrators and assigns of such other party in respect to all covenants of this Agreement; except as above, neither CITY nor ENGINEER 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. XV. AUTHORIZATION, PROGRESS, AND COMPLETION CITY and ENGINEER agree that the PROJECT is planned to be completed in accordance with the Exhibit A: "Project Schedule" which is attached hereto and made a part hereof. ENGINEER shall employ manpower and other resources and use professional skill and diligence to meet the schedule; however, ENGINEER shall not be responsible for schedule delays resulting from conditions beyond ENGINEER's control. With mutual agreement, CITY and ENGINEER may modify the Project Schedule during the course of the PROJECT and if such modifications affect ENGINEER's compensation, it shall be modified accordingly, subject to City Council approval. For Additional Engineering 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 ENGINEER. It is understood that this Agreement contemplates the full and complete Engineering services for this PROJECT including any and all services necessary to complete the work as outlined in Exhibit B: "Basic Engineering 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. XVL SUBCONTRACTS ENGINEER shall be entitled, only if approved by CITY, to subcontract a portion of the services to be performed by ENGINEER under this Agreement. 1:1 ►I I �:� [c]:I i C9MA111711 I ENGINEER agrees that CITY shall, until the expiration of three (3) years after final payment under this Agreement, have access to and the right to examine and photocopy any directly pertinent books, design calculations, quantity take -offs, documents, papers and records of ENGINEER involving transactions relating to this Agreement. ENGINEER agrees that CITY shall have access during normal working hours to all necessary ENGINEER facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. CITY shall give ENGINEER reasonable advance notice of intended audits. ENGINEER further agrees to include in all its subconsultant agreements hereunder a provision to the effect that the subconsultant agrees that CITY shall, until the expiration of three (3) years after final payment under the subcontract, have access to and the right to examine and photocopy any directly pertinent books, design calculations, quantity take -offs, documents, papers and records of such subconsultant, involving transactions to the subcontract, and further, that CITY shall have access during normal working hours to all subconsultant facilities, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with the provisions of this article. CITY shall give subconsultant reasonable advance notice of intended audits. XVIII. EXHIBITS Both parties agree to the following exhibits and as such, the following exhibits are made a part of this Agreement: Exhibit "A" Project Schedule Exhibit "B" Basic Engineering Services Exhibit "C" Special Engineering Services Exhibit "D" Additional Engineering Services Exhibit "E" Services to be Provided by the City Exhibit "F" Compensation Exhibit "G" Conflict of Interest Questionnaire XIX. MISCELLANEOUS A. Authorization to Proceed. Signing this Agreement shall be construed as authorization by CITY for ENGINEER to proceed with the work, unless otherwise provided for in the authorization. B. Legal EXDenses. Should litigation between the parties occur as to any matter arising under this contract or for additional services performed by Engineer, both parties waive all rights to attorney fees and each shall bear their own attorney fee costs. C. 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 ENGINEER: RJN Group, Inc. Attn: Hugh M. Kelso 12160 Abrams Road, Suite 400 Dallas, TX 75243 If to CITY: City of North Richland Hills Attn: Mr. Jimmy Cates Public Works Operations Manager 7200 A. Dick Fisher Drive South North Richland Hills, Texas 76180 D. Inder)endent Contractor. ENGINEER shall perform services hereunder as an independent contractor, and not as an officer, agent, servant or employee of the CITY and ENGINEER shall have the exclusive right to control services performed hereunder by ENGINEER, 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 ENGINEER, its officers, agents, employees and subconsultants; and the doctrine of respondent superior has no application as between CITY and ENGINEER. E. 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. Both parties waive the right to trail by jury. F. Entire Agreement. This Agreement represents the entire and integrated agreement between CITY and ENGINEER 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 ENGINEER. G. Severabilitv. 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. H. Assignment. CITY and ENGINEER each bind themselves, their heirs, successors and assigns, to the other party to this Agreement and to the successors and assigns of each other party in respect to all covenants of this Agreement. This Agreement is not to be assigned, sublet or transferred, in whole or in part, by either CITY or ENGINEER without the prior written consent of the other party. Disclosure. By signature of this Agreement, ENGINEER 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. ENGINEER. 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) is Mark Hindman, City Manager Date ATTEST City Secretary RJN GROUP, INC. (ENGINEER) in Hugh M Kelso, Principal Date ATTEST Notary Public in and for the State of Texas Type or Print Notary's Name My Commission Expires: CITY SEAL CORPORATE SEAL EXHIBIT A PROJECT SCHEDULE FOR Sanitary Sewer Design in Basins 7, 8, `ID, and 13 (South of Loop 820) The Scope of Services for this PROJECT is based on the following schedule: Task Notice to Proceed Communication l Administration Meetings with City /Stakeholders Condition /Construction Method Review Recommendations to the City Survey Preliminary Design City Review Final Plan /Spec for Advertisement Advertisement /Tabulation /Reccomendation Month 1 2 3 4 5 6 7 8 i i' � EXHIBIT B BASIC ENGINEERING SERVICES FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) This scope includes the final design, bidding assistance, and construction administration assistance for rehabilitation of the wastewater collection system. The estimated schedule of repairs includes 8,279 linear feet of sewer replacement for an estimated construction cost of $1,200,605. A description of the rehabilitation is shown on Attachment B -1 following this Attachment. Enaineerina Desian, Biddina Assistance and Construction Enaineerina Assistance Item I. Desian Phase A. Proiect Administration and Manaaement 1. Perform project initiation activities. 2. Perform general administration and project management including meetings with City staff as necessary. 3. Procure subcontractors for such work as topographic surveying and easement document preparation. B. Preliminary Plan Sheets 1. Coordinate with utility companies to have existing utilities located both on the ground and on the design sheets. 2. Prepare preliminary plan sheets for all lines that require plan and profile sheets for lines that require replacement. Walk each replacement to verify all visible improvements were located and are shown on the drawings. 3. Submit preliminary design plans to the City for review. Meet with the City to review the preliminary submittal. C. Final Plans, Specifications, and Estimates 1. Prepare final design plans based on the review of the City and discussions with the Engineer. 2. Evaluate site specific manhole repair alternatives including cover type, grade adjustments, sealing techniques, manhole interior repairs, and/or manhole replacement. 3. Using CITY's basic specifications, prepare project specifications which shall include but not be limited to: (1) bidding documents, (2) contractual documents, (3) conditions of the contract, (4) standard project forms, (5) technical specifications, (6) Location 'Map and (7) General Details. 4. Prepare ENGINEER's Opinion of Probable Construction Cost. 5. Submit three (3) copies of the draft specifications to the City for review. 6. Perform final changes to the specifications based on City review. 7. Submit three (3) hard copies and an electronic copy (CADD) of the final contract documents to the City. Item II. Biddina Phase A. Contract Services For the purpose of the cost proposal, it is anticipated that one (1) construction contract will be bid. The contract bid shall include sewer line repairs. 1. Assist the City in advertising, obtaining, and evaluating Bid Proposals for the construction contract and awarding thereof. Provide assistance to the City in responding to bidder inquiries during advertisement of the construction contract, and participate in project pre -bid conference. Provide and distribute bidding documents and addendum. Non - refunded bid deposits shall remain the property of the ENGINEER for administrative, printing, and handling cost. 2. Attend the Bid Opening and assist the City in reviewing the bids for completeness and accuracy. Develop bid tabulations and submit a written recommendation of contract award to the City along with three (3) copies of the bid tabulations. 3. Consult with and advise the City on the responsibility and responsiveness of contractors, the acceptability of subcontractors, substitute materials, and equipment proposed by the project bidders. 4. Provide the successful bidder(s) with three (3) sets of the contract specifications for execution and the insertion of bonds and the required insurance certificates. Provide the successful bidder(s) with three (3) sets of the contract documents for construction purposes. B. Construction Phase Assist the City in conducting a pre - construction conference with the Contractors by notifying utilities, governmental agencies, and other interested parties. and answer questions at the conference. 2. Review shop drawings, scheduling, test results, and other submittals that the Contractor is required to submit. 3. Perform site visits as required by the City. Three visits are included in this contract. 4. Provide reproducible plans for observation for sewer construction for general conformance to the contract drawings and contract specifications. Times of observation will be coordinated with the City. 5. Review and prepare any change orders proposed by the Contractor and provide recommendations to the City. 6. Provide the City with two (2) sets of black line prints and an electronic copy (CARD) of the plan drawings for use in construction inspection mark -ups. 7. City will provide mark -ups for producing the record drawings. Attachment B -1 PROJECT SCOPE FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) Existing Proposed Construction Basin Line Segment Diameter Diameter Length Costs NRH07 M753 - M756 8 8 304 $39,520 NRH07 M756 - M759 8 8 318 $41,340 NRH07 M759 - M758 8 8 524 $68,120 NRH8 M446 - M434 10 12 1300 $208,000 NRH8 M434 - M435 10 12 180 $28,800 NRH8 M433 - M434 6 8 178 $28,480 NRH10 M906 - M905 8 10 400 $58,000 NRH10 M905 - M904 8 10 350 $50,750 NRH10 M904 - M903A 8 10 300 $43,500 NRH10 M903A - M903 8 10 300 $43,500 NRH10 M903 - M902 8 10 278 $40,310 NRH10 M902 - M899 8 10 185 $26,825 NRH10 M899 - M898 8 10 180 $26,100 NRH10 M898 - M2685 8 10 325 $47,125 NRH10 M2685 - M2683/2684 8 10 425 $61,625 NRH13 M3634 - M3969 6 8 363 $47,190 NRH13 M3836 - M1498 12 12 650 $104,000 NRH13 M889 - M3836 12 12 377 $60,320 NRH13 M3965 - M892A 6 8 214 $27,820 NRH13 M681 - M2467 10 10 176 $25,520 NRH13 M547 - M546 8 8 618 $80,340 NRH13 M546 - M547 8 8 155 $20,150 NRH13 M520 - M546 8 8 179 $23,270 8279 $1,200,605 7'l Final pipe size should be determined in design phase. 21 Requires additional TV inspection. Line Replacement recommended based on observed defect. 31 Model results recommended increase in pipe size. EXHIBIT C SPECIAL ENGINEERING SERVICES FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) A. Easements and Hiahwav Permits 1. Provide the City with the technical information for location of the easements, if any, required for construction of the project. Information will include width and general location of the easements, and distances from the property lines. Property line information shall be obtained from existing maps provided by the City to the ENGINEER. The ENGINEER will prepare and issue legal description of easements for City approval. The City will secure easements. Once easement is anticipated. 2. Prepare necessary permits for highway crossing as required. One is anticipated for this contract. B. Survey 1. Establish Survey Control along each line segment as necessary. These control points will be established based on and tied to established City horizontal and vertical control points. The horizontal control for each segment in the Project will be established on the State Plane Coordinate System (NA ©'83 Surface Coordinates) from City monumentation. Control points will be established using GPS and conventional surveying methods. 2. Perform as -built and right -of -way (R.O.W.) research for each site from R.O.W. to R.O.W. or 20 feet of each side of proposed 1 existing centerline of pipe, whichever is greater. The project length research should extend to the intersection or 15 feet beyond the end of pipe. 3. The Surveyor shall conduct horizontal and vertical control survey necessary for design of the project. 4. Review the database provided by the surveyor to ensure standards are met. Perform any clean -up that may be required. C. Construction Observation 1. Perform construction Observation during certain aspects of construction as needed and requested by the City. EXHIBIT D ADDITIONAL ENGINEERING SERVICES FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) ADDITIONAL Engineering Services, not included in the scope of work, include those services that may result from significant changes in the general scope, extent or character of the PROJECT or its design including, but not limited to, changes in size, complexity, CITY's schedule, character of construction or method of financing; and revising previously accepted studies, reports, design documents or Contract Documents when such revisions are required by changes in laws, rules, regulations, ordinances, codes or orders enacted subsequent to the preparation of such studies, reports or documents, or are due to any other causes beyond ENGINEER's control. II. ADDITIONAL Engineering Services not included in the scope of work, also include assistance to the CITY in connection with preparing to serve or serving as a consultant or witness for CITY in any litigation, arbitration or other legal proceeding involving the PROJECT. III. ADDITIONAL Engineering Services not included in the Scope of Work also include heavy cleaning of pipelines. Root Cutting will be done by the CITY. IV. ADDITIONAL Engineering services in connection with the PROJECT, including services which are to be furnished by the CITY and services not otherwise provided for in this Agreement will be at the following rates: Staff 'Member and Resident Project Representative - Salary Cost Times Multiplier of 2.1. Salary Cost is defined as the cost of payroll of ENGINEER's, draftsmen, stenographers, survey men, clerks, laborers, etc., for the time directly chargeable to the PROJECT, plus social security contributions, unemployment compensation insurance, retirement benefits, medical and insurance benefits, longevity payments, sick leave, vacation and holiday pay applicable thereto. EXHIBIT E SERVICES TO BE PROVIDED BY THE CITY FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) The CITY will provide the following services to the ENGINEER in the performance of the PROJECT upon request: I. Provide any existing data the CITY has on file concerning the PROJECT, if available. II. Provide any available Rs -Built plans for existing sanitary sewer mains, if available. M. Assist the ENGINEER, as necessary, in obtaining any required data and information from local utility companies. IV. Provide standard details and specifications in digital format. V. Give prompt written notice to ENGINEER whenever CITY observes or otherwise becomes aware of any development that affects the scope or timing of the ENGINEER's services. VI. Provide access to the wastewater collection system. VII. Review all submittal of the ENGINEER and provide comments in a timely manner. EXHIBIT F COMPENSATION FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) re 101�JI ;J:I'[� ���[ +7►1 For and in consideration of the services to be rendered by the ENGINEER, the CITY shall pay, and the ENGINEER shall receive the compensation hereinafter set forth for the evaluation of the collection system. All remittances by CITY of such compensation shall either be mailed or delivered to the ENGINEER's home office as identified in the work authorization. "Salary Cost" used herein is defined as the cost of salaries of ENGINEER's, draftsmen, stenographers, survey men, clerks, laborers, etc. for time directly chargeable to the PROJECT plus social security contributions, unemployment, excise and payroll taxes, employment compensation insurance, retirement benefits, medical and insurance benefits, sick leave, vacation, and holiday pay applicable thereto. A. Compensation for the Services shall be as indicated in the following table and shall not exceed $153,185.00. Payment for the Engineering Services shall be due in monthly installments in the proportion to that part of the services which have been accomplished. Final payment for services authorized shall be due at the completion of these services. I Ilk r_1►111-*01*1 U X4:1_1► ec] 4 Cost budgets are set forth above and are subject to the audit provisions of this Agreement, Section XVII: "Right to Audit ". It is also understood that the cost budgets are based upon ENGINEER's best estimate of work and level of effort required for the proposed scope of services. As the PROJECT progresses, it is possible that the level of effort and/or scope may differ up or down from that assumed. If there are no scope changes, the ENGINEER shall receive the full amount of lump sum and unit price fees, regardless of the cost. If at any time it appears that the cost budget may be exceeded, the ENGINEER shall notify the CITY as soon as possible in writing. If there is a scope change, the ENGINEER shall notify the CITY as soon as possible in writing and shall include a revised scope of services, estimated cost, revised fee schedule, and a revised time of completion. Upon negotiation and agreement via a signed amendment by both parties, the cost budget, fee schedule, and total budget will be adjusted accordingly. CITY shall not be obligated to reimburse the ENGINEER for costs incurred in excess of the cost budget. The ENGINEER shall not be obligated to perform on any change in scope of work or otherwise incur costs unless and until the CITY has notified the ENGINEER in writing that the total budget for Engineering Services has been increased and shall have specified in such notice a revised total budget which shall thereupon constitute a total budget for Engineering Services for performance under this Agreement. A detailed scope of work, total budget, and schedule will be prepared by the ENGINEER and executed by the CITY if the ENGINEER is authorized to perform any Additional Engineering Services). III. PAYMENT Payments to the ENGINEER will be made as follows: A. Invoice and Time of Payment Monthly invoices will be issued by the ENGINEER for all work performed under this Agreement. Invoices are due and payable on receipt. Invoices will be prepared in a format approved by the CITY prior to submission of the first monthly invoice. Once approved, the CITY agrees not to require changes in the invoice format, but reserves the right to audit. Monthly payment of the fee will be in proportion to the percent completion of the total work (as indicated in Exhibit B: "Basic Engineering Services ". B. Upon completion of services enumerated in Exhibit B: "Scope of Basic Engineering Services ", the final payment of any balance will be due upon receipt of the final invoice. Compensation for Services Table Task Basic Services Project Administration and 'Meetings Preliminary design Final Design Bidding Assistance Construction Assistance Quantity Unit Unit Cost 1 LS $9,900.00 1 LS $39,600.00 1 LS $34,650.00 1 LS $4,950.00 1 LS $9,900.00 8,279 LF $5.50 1 EA $1,500.00 1 EA $1,100.00 500 LF $5.50 20 HRS $165.00 Subtotal Basic Services Special Services Topographical Survey TxDot Highway Permit Easement Document Preparation Subsurface Utility Engineering (Level B Tracing) Construction Observation* Subtotal Special Services Total Contract Value * As needed and authorized by the City Subtotal $9,900.00 $39,600.00 $34,650.00 $4,950.00 $9,900.00 $99,800.00 $45,534.50 $1,500.00 $1,100.00 $2,750.00 $3,300.00 $54,184.50 $153,184.50 EXHIBIT G CONFLICT OF INTEREST QUESTIONNAIRE FOR Sanitary Sewer Design in Basins 7, 8, 10, and 13 (South of Loop 820) [Conflict of Interest Questionnaire is on the following page] 1 CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ I F *r vein dor or other p rao do! ncg business with local governme entit I r :s ue .,onnare i Ei Laing fl ea in aoco vAth chaptor'176 of OFFICE USE ONLY the _c za l Gc- aerrmont Code by a perscn doing bus r.ess with tree go ern•r1: rltol entitr. ire wmcer � by lam this gJestion -a re '1' ust t. a ilea- -, roc rocords ad - thr: local government not o:er than _he 7"' busi da y afte the dote the per 5ofi t7ecu i es aw c' `a -cta that regu Ire th a statern a nt tc. be f ed. See Sartior 1 e 6.6•"16. Local Gayer^ me nt Code.. A persoq con - m its a offe if the perscr viol -otos 5ccticn Ar. offense arde -th a Section is ra C, asq C m sdemeancr LJ Name flf person doing bus iaess with Kcal go crtlty, RJN Orcip. Inc. - r-n -, I lugh M. Kclso, Pri -icipal F! FXJ Clieck Dii6 box if you -ire flllnrg alt II[XI 0 to a prevlour. fined questionnairq. ;T4v Ian rucaiic* knit yC, 1rd� 0M Cr�d�teR �Jrrcleted qua = fie - nai� rei-h ti � ?�I�prl �� fiunq .11. rih �:tt later Char September 1 of the year tot 'rt' z a'1 w—i ity Ue�sr ir-pfi u - -�mon 'I tti.gCG(a), Local Covernment Code. is pc 'ding uml r li0t� lberi J7e ?" r dar a tar date W-o orl 31nnlly ft ed 'C]„IC¢Id{7'lll llff tmcore. 'ncompicte o 173=jxatc.,- 3 1 Describe eai:h aff llla[ ioo or relationship with an employce or contractor ( the Kcal goaernm -ental entity •Mini rnaki:tF rVC- or'rl .meridatl*ns to a local government rrffre-r_r of the laical gov,ernm -entail entity with r€lspect to ex 1 Itu re of money. RJN r+ccor°tly ccfnp'ctod e prq?ect for We Cily and has a tausir'e1i,7H 1 ulaG;jnatti[i wilh PAr ji nirn; antes and Mr 4 ! Describe each affil iation or h LiS IT h Ip with a person wh u is a local gov4 rnrmont officer and who appoints or employs a local UQvvrl'rnW)t i tti ce rortbe local governmental vntity that is the -sIllijeCt of this que%tlonnalre. rl]i1t A.ttlliran icW 1 lm:. : Si1 1 1311: fN ZaTMC.11�CF *r,•1•..4cf.1 3mik�.r Serrllory Lx45vg :`H;thablilatnr .r! agn Firy =. Emu; u; ; P 1 1a 1301)21.112) rvrgn 1 rk3 CONFLICT OF INTEREST QUESTIONNAIRE FORM CI For vendor or other person doing bus I n ess with local gova r l Ili s nt l on City Pago 2 Name of lQcal governmeiit off loer with wtsom filerhas affiliation or business relationship, {corrrpl$to this: $ectlon Ginty It the answer to A, B, or C Is YES-1 This s Y?Itlr+, I1cm 5 Inelt ,llnc9 ea.ihp rts A, L, C & Lx, must De cor pleted for earn off - icer with nt' 0 rrr vw ne, hws affiliation or hu! iness relaflonsnip. Mach addit one pagos io ti us I Tai m (;lr) Lis necessary A. Jr. the lob: 'rl qovom montonlcer nnrnea in t rl-.� sar:tnn re Bill ng Dr likely .a receive taxable ii iuumv Ircim tV 11ler of the rURViornaire? YES 1Z NO $. Is Oe filler of fne queetinnrraire receiving or limy .a r . arc: i al income frQrra or a; li-e drak -bon oftjra local grsvernmurd cif frr of named in MI F, ;r. AN 13 -he. - axabl a irravnra is nal firm the ILxA go'mrir ent (911& y ❑ YES I_J NO C. Is [ho filer of this %jestirwknire aff9ie'ed YAM a ccrporadorr of abler tminej�s er;iity ;hef the Icce uvernmem ofricer serves as arI ufrm or drectar, r herds an momership cf 10 percent Ey m ore? 13, llegr'rihe each affiliation or busirrns5 raatwisilip. Desuriltq any othor afrillatloln or business relationship that might Ga'L IZO a conflict of interest I Puriu 7 : igr r.0 •ru of a 4-r d4 n3 b u t irw s s Mh MLa go'srnFriePtat unity ,3f /I?- Ctale Movied 4iMiWW M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. E.2 PW 2012 -008 Approve a Utility Assembly (820 -U- 0508 -0001 /Fiber Optic Cable) for the City's Utility Relocations as Part of the North Tarrant Express Project Presenter: Gregory Van Nieuwenhuize Summary: Council is being asked to approve the necessary documents authorizing Bluebonnet Contractors, the construction arm of North Tarrant Express Mobility Partners, the developer of the North Tarrant Express Project, to relocate a portion of the City's Fiber Optic Cable (FOC) in order for the construction of the North Tarrant Express Project to continue to proceed. General Descrirstion: In 2010, the State of Texas acting through TxDOT entered into a comprehensive development agreement (CDA) with North Tarrant Express Mobility Partners ( NTEMP) to design and reconstruct Loop 820 from its I -35W interchange to the SH 121/SH 183 interchange and to design and reconstruct SH 121/SH 183 from its interchange with Loop 820 to approximately Murphy Drive/Westpark Way in the Bedford /Euless area. The CDA requires NTEMP to complete the construction of the indicated roadway limits on or prior to December 31, 2015. NTEMP has determined that they will accomplish this task by reconstructing these roadways in sub - sections. The initial sub - sections chosen to be reconstructed are based on the right -of -way having been acquired and any conflicting utilities being relocated in a timely manner. It is important to note that the "Loop 820 section" of the North Tarrant Express (NTE) Project is entirely federal interstate and that the "SH 121/SH 183 interchange to Murphy DrivefWestpark Way section" of the NTE Project is state highway. This is important because on the federal section of the NTE project, the City's utilities are relocated at no expense to the City. However, whenever the City desires an increase in size to any of the City's utilities (called betterments), the City is responsible for the cost of the betterment. On the state highway section of the NTE Project, the City's utilities are relocated at fifty percent (50 %) of the cost of such relocation. Here again, the costs of any betterments in this section are also the sole responsibility of the City. NTEMP has turned over the utility relocation portion of the project to their construction arm, Bluebonnet Contractors (BBC). As Council is aware, BBC is working within the entire NTE corridor (1 -35W interchange to Murphy Drive/Westpark Way), and to date NRH has approved two (2) Utility Assemblies (UA) — one UA for water and sanitary sewer in the Loop 820 corridor and one UA for water and sanitary sewer in the SH 121fSH 183 corridor. Presently, BBC is requesting that they be approved to relocate the City's 'FOC from the existing Recreation Center to the north side of Loop 820. As this area is on the federal highway section of the project, the City will only be responsible for betterments to the construction - related costs for this relocation effort. Presently, BBC is requesting that the City approve the necessary documents in order for them to relocate the City's FOC within the Loop 820 corridor. These documents include: • Utility Adjustment Agreement Amendment (Amendment No. 1 to Agreement No.: 820 -U -0508) - This document is an Amendment to the Loop 820 Master Utility Adjustment Agreement that the Council approved on November 14, 2011. - This document is to be executed by TxDQT, NTEMP, BBC and the City. - This document has been reviewed and approved by the City Attorney. • Cost Estimate for Utility Assembly (820 -U- 0508 - 0001 /Fiber Optic Cable) - This document is the cost estimate for the design and relocation costs of the betterments to the City's FOC. • Fiber Optic Cable Abandonment - This document authorizes the abandonment of certain utilities (it should be noted that abandoning utilities is fairly routine on infrastructure projects when new utilities are being constructed as replacements and the utilities being abandoned have been reviewed and approved by the Public Works Department and the Information Services Department). • Property Affidavit - This document indicates that the City of North Richland Hills is the owner of an easement dedicated for our Fiber Optic Cables. • Utility Joint. Use Acknowledgement Reimbursable Utility Adjustment - This document allows the relocated utilities to exist within TxDOT's right -of- way, allows the City to access such utilities and indicates that the costs for utility relocation will be in accordance with the applicable laws of the State of Texas. - This document has also been reviewed and approved by the City Attorney. • Quitclaim Deed - This document quitclaims the City's interest in approximately 3,000 square feet of the Water Line Utility Easement. [The City will be compensated $15,240.00 ($5.08 per square foot) for this easement.] - This document has also been reviewed and approved by the City Attorney. • Quitclaim Letter - This document is a letter explaining that the City will quitclaim the existing 3,000 square foot easement. - This document has also been reviewed and approved by the City Attorney. These documents comprise the majority of the "Utility Assembly (820- U -0508- 0001/Fiber Optic Cable)" instrument. Presently, it does not appear that the City will be responsible for any of the funding regarding the relocation of our FOC. In fact, the present estimate indicates that the City will be reimbursed $13,081.09 for this utility relocation. The main reason for a potential reimbursement is because the City is being reimbursed for the value of our existing easement for our FOC which lies immediately outside of the existing TxDOT ROW. While the City will be obtaining a similar type easement for a portion of the relocated FOC, there is not a cost to the City for this new easement as the City owns the property that this new easement will be situated on. The actual costs are not expected to be greatly different than the indicated amounts. Recommendation: Approve Utility Assembly (820 -U- 0508 - 0001 /Fiber Optic Cable) for the City's Utility Relocations as Part of the Forth Tarrant Express Project. Enclosures: • Exhibit A • Exhibit B • Exhibit C • Exhibit D • Exhibit E • Exhibit F: • Exhibit G Utility Adjustment Agreement Amendment (Amendment No. 1 to Agreement No.: 820 -U -0508) Cost Estimate for Utility Assembly (820 -U- 0508 - 0001 /Fiber Optic Cable) Fiber Optic Cable Abandonment Property Affidavit Utility Joint Use Acknowledgement Reimbursable Utility Adjustment Quitclaim Deed Quitclaim Letter Exhibit A Utility Adjustment Agreement Amendment (Amendment No. 1 to Agreement No.: 820 -U -0508) Comity: TarrantHighway: NTE (NE Loop 820) Limits: NTE (Loop 820) from I1135 to SH183 /SH121 Intersection Fed. Proj. No.: NIA ROW CSJ No.: 0008 -14 -093 Const. CSJ No.: 0+008 -14 -058 UTILITY ADJUSTMENT AGREEMENT AMENDMENT (Developer Managed) (Amendment No. 1 to Agreement No.: 820 -U -0508) THIS AMENDMENT TO MASTER UTILITY ADJUSTMENT AGREEMENT (this "Amendment "), by and between NTE Mobility Partners LLC, hereinafter identified as the "Developer ", Bluebonnet Contractors, LLC, hereinafter identified as the "Design -Build Contractor" and City of North Richland Hills, hereinafter identified as the "Owner ", is as follows: WITNESSETH WHEREAS, the STATE of TEXAS, acting by and through the Texas Department of Transportation, hereinafter identified as "TxDOT ", proposes to construct the turnpike project identified above (the "Facility", as more particularly described in the "Original Agreement ", defined below); and WHEREAS, pursuant to that certain Comprehensive Development Agreement ( "CDA ") by and between TxDOT and the Developer with respect to the Facility, the Developer has undertaken the obligation to design, construct, finance, operate and maintain the Facility, including causing the removal, relocation, or other necessary adjustment of existing utilities impacted by the Facility (collectively, "Adjustment "); and WHEREAS, pursuant to that certain Design -Build Contract by and between the Developer and the Design -Build Contractor with respect to the Facility (the "Design -Build Contract "), the Design -Build Contractor has undertaken the obligation to design and construct the Facility, which includes the Adjustment; and WHEREAS, the Owner, the Developer, and the Design- Build Contractor are parties to that certain executed Master Utility Adjustment Agreement designated by the "Agreement No." indicated above, as amended by previous amendments, if any (the "Original Agreement "), which provides for the adjustment of certain utilities owned and/or operated by the Owner (the "Utilities "); and WHEREAS, the parties are required to utilize this Amendment form in order to modify the Original Agreement to add the adjustment of Owner facilities not covered by the Original Agreement; and WHEREAS, the parties desire to amend the Original Agreement to add additional Owner utility facility(ies), on the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the agreements contained herein, the parties hereto agree as follows: Amendment. The Original Agreement is hereby amended as follows: 1.1 Plans. (a) The description of the Owner Utilities and the proposed Adjustment of the Owner Utilities in the Original Agreement is hereby amended to add the following utility facility(ies) ( "Additional Owner Utilities ") and proposed Adjustment(s) to the Owner Utilities described in the Original Agreement; to adjust hvo fiber optic facilities totaling approximately 1408 linear feet for the City of North Richland Hills. These facilities conflict with the proposed parenrent structure for the NTE from approx NTE Utility Rase Line Stations 902 +21 to 913 +76 The adjustment will consist of replacing these facilities with like -kind inside a proposed S' NRH utility easement from approximate NTE BL Sta. 902 +21 to 908 +40. The remaining facilities will be installed within the ROW beginning at Vance Dr. : and, (b) The Plans, as defined in Paragraph 1 of the Original Agreement, are hereby amended to add thereto the plans, specifications and cost estimates attached hereto as Exhibit A. (c) The Plans attached hereto as Exhibit A, along with this Amendment, shall be submitted upon execution to TxDOT in accordance with Paragraph 2 of the Original Agreement, and Paragraph 2 shall apply to this Amendment and the Plans attached hereto in the same manner as if this Amendment were the Original Agreement. If the Owner claims an Existing Interest for any of the Additional Owner Utilities, documentation with respect to such claim shall be submitted to TxDOT as part of this Amendment and the attached Plans, in accordance with Paragraph 15 (a) of the Original Agreement. 1.2 Advancement of Funds by Owner for Construction Costs. (a) Exhibit A of the Original Agreement is hereby amended to add for the Additional Owner Utilities and proposed Adjustment(s) the following information set forth on Exhibit A hereto: (i) all estimated engineering and construction- related costs, including labor, material, equipment and other miscellaneous construction items, and (ii) the Owner's and Design -Build Contractor's respective cost sharing responsibility for the estimated costs, as more fully described in Section 1.4 below. The Owner shall advance to the Design -Build Contractor its allocated share, if any, of the estimated costs for construction and engineering work to be performed by Design -Build Contractor reader this Amendment, in accordance with the following terms: ® The adjustment of the Owner's Utilities does not require advancement of hinds. ❑ The adjustment of the Owner's Utilities does require advancement of fiords and the terms agreed to between the Design -Build Contractor and Owner are listed below. rinsert terms of advance funding to be agreed between Design -Build Contractor and Chvner.] (b) Adjustment Based on Actual Costs or Agreed Sum. For purposes of Paragraph 7(b) of the Original Agreement, the following terms apply to the Additional Owner Utilities and proposed Adjustment. [Check the one appropriate provision]: ® The Owner is responsible for its share of the Design -Build Contractor's actual cost for the Adjustment, including any identified Betterment. Accordingly, upon completion of all Adjustment work to be performed by both parties pursuant to this Amendment, (i) the Owner shall pay to the Design -Build Contractor the amount, if any, by which the actual cost of the Betterment (as determined in Paragraph 9(b)) plus the actual cost of Owner's share of the Adjustment (based on the allocation set forth in Exhibit A) exceeds the estimated cost advanced by the Owner, or (ii) the Design -Build Contractor shall refund to the Owner the amount, if any, by which such advance exceeds such actual cost, as applicable. ❑ The Agreed Sum is the agreed and final amount due for the Adjustment, including any Betterment, under this Amendment. Accordingly, no adjustment (either up or down) of such amount shall be made based on actual costs. 1.3 Reimbursement of Owner's Indirect Costs. For purposes of Paragraph G of the Original Agreement, the following term apply to the Additional Owner Utilities and proposed Adjustment: (a) Design -Build Contractor agrees to reimburse the Owner its share of the Owner's indirect costs (e.g., engineering, inspection, stand -by pay, testing, ROW) as identified in Exhibit A. When requested by the Owner, monthly progress payments will be made. The monthly payment will not exceed 80% of the estimated indirect work done to date. Once the indirect work is complete, final payment of the eligible indirect costs will be made. Intermediate payments shall not be constitied as final payment for any items included in the intermediate payment. (b) The Owner's indirect costs associated with Adjustment of the Owner Utilities shall be developed pursuant to the method checked and described below check only one box]: ® (1) Actual related indirect costs accumulated in accordance with (i) a work order accounting procedure prescribed by the applicable Federal or State regulatory body, or (ii) established accounting procedure developed by the Owner and which the Owner uses in its regular operations or, ❑ (2) The agreed stun of $ ( "Agreed Sum ") as supported by the analysis of the Owner's estimated costs attached hereto as part of Exhibit A. 1.4 Resvonsibility for Costs of Adjustment Work. For purposes of Paragraph 4 of the Original Agreement, responsibility for the Agreed Sum or Actual Cost, as applicable, of all Adjustment work to be performed pursuant to this Amendment shall be allocated between the Design -Build Contractor and the Owner as identified in Exhibit A hereto and in accordance with §203.092, Texas Transportation Code. An allocation percentage may be determined by application of an Eligibility Ratio, if appropriate, as detailed in Exhibit A, provided however, that any portion of an Agreed Sum or Actual Cost attributable to Betterment shall be allocated 100% to the Owner in accordance with Paragraph 9 of the Original Agreement. 1.5 Betterment. (a) Paragraph 9(b) (Betterment and Salvage) of the Original Agreement is hereby amended to add the following [Check the one lox that applies, and complete if appropriate]: ® The Adjustment of the Additional. Owner Utilities, pursuant to the Plans as amended herein, does not include any Betterment. ❑ The Adjustment of the Additional Owner Utilities, pursuant to the Plans as amended herein, includes Betterment to the Additional Owner Utilities by reason of [insert explanation, e.g. "replacing 12 "pipe with 24 "pipe]: . The Design -Build Contractor has provided to the Owner comparative estimates for (i) all work to be performed by the Design -Build Contractor pursuant to this Amendment, including work attributable to the Betterment, and (ii) the cost to perform such work without the Betterment, which estimates are hereby approved by the Owner. The estimated cost of the Design -Build Contractor's work wider this Amendment which is attributable to Betterment is $ , calculated by subtracting (ii) from (i). The percentage of the total cost of the Design -Build Contractor's work under this Amendment which is attributable to Betterment is %, calculated by subtracting (ii) from (i), which remainder is divided by (i). (b) If the above Paragraph 1.5(a) identifies Betterment, the Owner shall advance to the Design -Build Contractor, at least fourteen (14) days prior to the date scheduled for commencement of construction for Adjustment of the Additional Owner Utilities, the estimated cost attributable to Betterment as set forth in Paragraph 1.5(a) of this Amendment. If the Owner fails to advance payment to the Design -Build Contractor on or before the foregoing deadline, the Design -Build Contractor shall have the option of commencing and completing (without delay) the Adjustment work without installation of the applicable Betterment. [Check the one appropriate provision]: ❑ The estimated cost stated in Paragraph 1.5(a) of this Amendment is the agreed and final amount due for Betterment under this Amendment, and accordingly no adjustment (either up or down) of such amount shall be made based on actual costs. ❑ The Owner is responsible for the Design -Build Contractor's actual cost for the identified Betterment. Accordingly, upon completion of all Adjustment work to be performed by both parties pursuant to this Amendment, (i) the Owner shall pay to the Design -Build Contractor the amount, if any, by which the actual cost of the Betterment (determined as provided below in this paragraph) exceeds the estimated cost advanced by the Owner, or (ii) the Design -Build Contractor shall refund to the Owner the amount, if any, by which such advance exceeds such actual cost, as applicable. Any additional payment by the Owner shall be due within sixty (60) days after the Owner's receipt of the Design -Build Contractor's invoice therefor, together with supporting documentation; any refund shall be due within sixty (60) clays after completion of the Adjustment work under this Amendment. The actual cost of Betterment incurred by the Design -Build Contractor shall be calculated by multiplying (i) the Betterment percentage stated in Paragraph 1.5(a) of this Amendment, by (ii) the actual cost of all work performed by the Design -Build Contractor pursuant to this Amendment (including work attributable to the Betterment), as invoiced by the Design -Build Contractor to the Owner. (c) The determinations and calculations of Betterment described in this Amendment shall exclude right -of -way acquisition costs. Betterment in connection with right -of -way acquisition is addressed in paragraph 15 of the Original Agreement. 1.6 Miscellaneous. (a) [honer and Design -Build Contractor agree to refer to this Amendment, designated by the "Amendment No." and "Agreement Number" indicated on page 1 above, on all fiiture correspondence regarding the Adjustment work that is the subject of this Amendment and to track separately all costs relating to this Amendment and the Adjustment work described herein. (b) [Include any other proposed amendments allowed by applicable laze.] 2. General. (a) All capitalized terms used in this Amendment shall have the meanings assigned to them in the Original Agreement, except as otherwise stated herein. (b) This Amendment may be executed in any number of counterparts. Each such counterpart hereof shall be deemed to be an original instrument but all such counterparts together shall constitute one and the same instrument. (c) Except as amended hereby, the Original Agreement shall remain in full force and effect. In no event shall the responsibility, as between the Owner and the Design -Build Contractor, for the preparation of the plans and the Adjustment of the Owner Utilities be deemed to be amended hereby. (d) This Amendment shall become effective upon the later of (a) the date of signing by the last party (either the Owner, the Design -Build Contractor or the Developer) signing this Amendment, and (b) the completion of TxDOT's review and approval as indicated by the signature ofTxDOT's representative, below. APPROVED BY: TEXAS DEPARTMENT OF TRANSPORTATION M Authorized Signature Printed Name: Donald C. Toner Jr. SRIWA Title: Director — Turnpike Right of Way Texas Turnpike Authority Division Date: DESIGN -BUILD CONTRACTOR Bluebonnet Contractors. LLC IM Duly Authorized Representative Printed Name: Jose Carlos Esteban Title: Chief Executive Officer Date: OWNER CITY OF NORTH RICHLAND HILLS L Printed Name: Title: Date: Duly Authorized Representative DEVELOPER NTE Mobility Partners LLC L Duly Authorized Representative Printed Name: Steve Hankins, P.E. Title: Director of Design & Construction Date: Exhibit 6 Cost Estimate for Utility Assembly (820 -U- 0508 - 0001 /Fiber Optic Cable) North Richland Hills Fiber optic Conflicts 109 & 112 March 8, 2012 820 -U -0508 -0001 Estimated Direct Costs for Bluebonnet Contractors, LLC I S 105,173.90 1 l Estimated Direct Costs for City of North Richland Hills 1 $ - I I Estimated Indirect Costs for Bluebonnet Contractors, LLC 1 $ 32,401.70 1 Estimated Indirect Costs for City of North Richland Hills 1 $ 13,081.09 1 (Total Estimated Relocation Costs 1 $ 150,656.58 1 l Estimated Property Reimbursement to the City of North Richland Hills $ Eligibility Ratio: 1000A Estimated amount to he reimbursed to the City of North Richland Hills: 15,240.00 1 13,081.09 Est'i'mated Direct Costs for Bluebonnet Contractors, LLC Description Quantity Unit Open Cut Trench 1151 FT $ Install 4 " conduit per'Detail U' 1613 FT $ Install NRH 3'x 5' Pullbox 5 EA $ HDPE Bore (underside street) 79 FT $ HDP€ Bore (under highway) 383 FT $ Fiber Optic Cable 1613 FT $ Splicing 120 HR $ Pull Finer Optic Cable 1613 FT I $ I Estimated Indirect Costs for Bluebonnet Contractors, LLC Description Quantity G Unit Plan Design 1613 LF $ Plan Review 40 HR $ Inspection 60 HR $ BBC Overhead 1 LS $ (Total Estimated Indirect Costs by North Richland Hills Description I Quantity Plan Review 40 Inspection 60 BBC Overhead 1 Unit HR $ HR $ LS $ Unit Price 15.00 $ 25.32 $ 4,066.18 $ 25.32 25.32 $ 2.00 $ 85.00 $ 1.00 Total I $ Unit Price 11.00 $ 85.00 $ 100.00 $ 5,258.70 $ 1$ Unit Price 85.00 $ 1x70.00 $ 3,681.09 $ Total Estimated Property Reimbursement for NRH Description Quantity Easement Replacement Cost 3000 I$ Unit Unit Price 5F 5.081$ Total 1 $ Subtotal 17,265.00 40,841.16 20,330.90 2,000.28 9,697.56 3,226.00 10,200.00 1,613.00 105,173.90 1 Subtotal 17, 743.00 3,400.00 6,000.00 5,258.70 32,401.70 Subtotal 3,400.00 6,000.00 3,681.09 13,081.09 Subtotal 15,240.00 15,240.00 Total Estimated amount for city of North Richland Hills Relocation $ 165,896.68 1 Exhibit C Fiber Optic Cable Abandonment Attn: Mr. Donald C. Toner Jr. SR/WA From: Gregory Van Nieuwenhuize, PE Date: February 3, 2012 Subject: City of North Richland Hills Fiber Optic Abandonment Dear Mr. Toner, The City of North Richland Hills recommends that portions of the fiber optic facilities that are not being removed according to the plan set be abandoned in place. During the utility adjustment the permanent vacated facilities and conduits to remain shall be capped and filled with a minimum of 100 psi grout (if > 4 "). Abandoned facilities conflicting with roadway construction shall be removed by others during the construction and excavation stages. The facilities to be abandoned consist of two (2) Fiber Optic conflicts (conflicts 109 & 112 ), • Conflict 109 • One 1.25" fiber optic facility approximately 15 years old • Currently active and in good working condition • Begin: N= 6991611.43, E= 2357312.64; End: N= 6931431.59, E= 2358415.74 • Typical Offset from: CL= 171', PL= 27' • Conflict 112 • One 1.25" fiber optic facility approximately 15 years old • Currently active and in good working condition • Begin: N= 6991815.52, E= 2358410.64; End: N= 6991431.59, E= 2358415.74 • Typical Offset from: CL= 913 +38, PL= Crossing The proposed abandonment is along IH 820 beginning at NTE BL Sta. 902 +21 to 913 +76. This abandonment shall not be construed as a change in ownership of the facility. The City of North Richland Hills will be responsible for maintaining abandonment facility records, offset from property lines, coordinates, and the type, quantity, and size of abandoned material. The City of North Richland Hills certifies that this abandonment conforms with all requirements of rule 21.39 of the UAR and all current federal, state, and local laws and codes, or industry standards, whichever is more stringent. There is no known hazardous material associated with this proposed abandonment. Signed, Gregory Van Nieuwenhuize, PE Date Exhibit Q Property Affidavit W- MI, Rev. 912009 Page t of 2 CoLinty: Tarrant C 5J No�: 0008-14-058 Highway: NTE - West Limits: DART RA to IH 820 i 5H 183 Interchange Fed. Proj. No.: NIA ROW Acct. No.: 0008 -14 -093 AFFIDAVIT Agreement No. 820 -U- 0508 -0001 THE STATE OF TEXAS COUNTY OF Tarrant - WHEREAS, the State of Texas, acting by and through the Texas Department of Transportation, herein called Tx-DOT, has deemed it necessary to snake certain highway irmprovernents on Interstate Highway IH 820 in Tarrant County, Texas- from NTE )3L Stations 902 +21 to 909+79; and, WHEREAS, it is anticipated that the hereinabove mentioned improvements will affect the facilities of City of North Richland Hills hereinafter called the Owner, at the following described locations: A Fiber Optic lines running along the south ROW of Ill 820 have been affected by the North TaiTant Express Project. - Parcel 110: Vol. 13622, Pg. 0561 ■ A 5' easement dedicated to the City of North Richland Hills, approx 407' - Parcel 111: Vol. 13482, Pg. 0212 ■ A 5' easement dedicated to the City of North Richland Hills, approx 183' - Parcel 112: Cabinet A, Pg. 1199 ■ A 5'x 10' easetent for a pull facility for the City of North Richland Hills and, WHEREAS, TxDOT has requested that the Chmer furnish to the information relative to interests that Owner hold un lands at each of the hereinahove referenced locations; NOW THEREFORE, before me, the undersigned authority, this day personally appeared , who, after being by 1ne duty swore, did depose and say: That he/ she is of Citv of North Richland Hills and, as such, has knowledge of the facts contained lnereiu, and W f�.. n -n-ui Rev. W2cb9 Page 2 of 2 That, to the best of his/her knowledge, said Owner is the owner of the following described interests in the hereinal)ove- iiiclicated lands, copies of the instnunenis under which said Owner claims said interests beitrg attached liereto and inacte a part hereof. Signature Title Company Swom to and subscribed before me this clay of , A.D. 20x11. Notary Public, State of Texas My Commission expires: Exhibit E Utility Joint Use Acknowledgement Reimbursable Utility Adjustment Form ROW11- AJAR —NTE Rev. 9.93107 Reptaoes Forms D- 15 -24A and D- 15-80A GSD -EPC Page 1 of 2 UTILITY JOINT USE ACKNOWLEDGEMENT REIMBURSABLE UTILITY ADJUSTMENT U -hJu rrber: 820 -U- 0508 -0001 District: Forth Worth Highway: I 820 County: Tarrant WHEREAS, the State of Texas, ( "State'), acting by and through the Texas Department of Transportation (`TxDOT"), proposes to make certain highway improvements on that section of the above- indicated highway; and WHEREAS, the City of North Richland Hills, ( "Utility"), proposes to adjust or relocate certain of its facilities.. if applicable, and retain title to any property rights it may have on, along or across, and within or over such limits of the highway right of way as indicated by the location map attached hereto. NOW, THEREFORE, in consideration of the covenants and acknowledgements herein contained, the parties mutually agree as follows: It is agreed that joint usage for both highway and utility purposes will be made of the area within the highway right of way limits as such area is defined and to the extent indicated on the aforementioned .plans or sketches. Nothing in this Acknowledgement shall serve to modify or extinguish any compensable property interest vested in the Utility within the above described area. If the facilities shown in the aforementioned plans need to be altered or modified or new facilities constructed to either accommodate the proposed highway improvements or as part of Utility's future proposed changes to its own facilities Utility agrees to notify TxDOT at least 30 days prior thereto, and to furnish necessary plans showing location and type of construction unless an emergency situation occurs and immediate action is required. If an emergency situation occurs and immediate action is required, Utility agrees to notify TxDOT promptly. If such alteration, modification or new construction is in conflict with the current highway or planned future highway improvements. or could endanger the traveling public using said highway, TxDOT shall have the right, after receipt of such notice, to prescribe such regulations as necessary for the protection of the highway facility and the traveling public using said highway. Such regulations shall not extend, however, to requiring the placement of intended overhead lines underground or the routing of any lines outside of the area of joint usage above described. If Utility's facilities are located along a controlled access highway, Utility agrees that ingress and egress for servicing its facilities will be limited to frontage roads where provided, nearby or adjacent public roads and streets. or trails along or near the highway right of way lines which only connect to an intersecting road. Entry may be made to the outer portion of the highway right of way from any one or all access points. Where supports, manholes or other appurtenances of the Utility's facilities are located in medians or interchange areas, access from the through - traffic roadways or ramps will be allowed by permit issued by the State to the Utility setting forth the conditions for policing and other controls to protect highway users. In an emergency situation. if the means of access or service operations as herein provided will not permit emergency repairs as required for the safety and welfare of the public, the Utility shall have a temporary right of access to and from the through- traffic roadways and ramps as necessary to accomplish the required repairs. provided TxDOT is notified immediately when such repairs are initiated and adequate provision is made by Utility for the convenience and safety of highway traffic. Except as expressly provided herein. the Utility's rights of access to the through - traffic roadways and/or ramps shall be subject to the same rules and regulations as apply to the general public. If Utility's facilities are located along a non - controlled access highway, the Utility's rights of ingress and egress to the through- traffic roadways and/or ramps are subject to the same rules and regulations as apply to the general public. Initial Date Participation in actual costs incurred by the Utility for any future adjustment, removal or relocation of utility facilities required by highway construction shall be in accordance with applicable laws of the State of Texas. It is expressly understood that Utility conducts the new installation, adjustment, removal, and/or relocation at its own risk. and that TOOT makes no warranties or representations regarding the existence or location of utilities currently within its right of way. The Utility and the State, by execution of this Acknowedgement , do not waive or relinquish any right that they may have under the law. The signatories to this Acknowledgement warrant that each has the authority to enter into this Acknowledgement on behalf of the party represented. IN NIV 7Ti`ESS NNHERE OF. the parties hereto have affixed their signatures. OwTuer: City of North Richland I tlls Utility Nacre $y: Printed Name: Title: Date: Authorized Signature The State of Texas Executed and approved for the Texas Transportation Conuntssion for the purpose and effect of activating and/'or cany-ing out the orders. established policies or work programs heretofore approved and authorized by the Texas Transportation Coininissiou. By: Donald C. Toner Jr. SR+'Vv A Title: Director — Turnpike Right of Way Texas Turnpike Authority Division Date: Initial Data Exhibit F Quitclaim Deed Notice of Confidentiality Rights: If you are a natural person, you may remove or strike any of the following information from this instrument before it is filed for retort] in the public records: your Social Security Number or your Driver's License Number. f ROW-N-30 Rev. 812003 (GSD -EPC) Page 1 of 2 THE 'STATE OF TEXAS QUITCLAIM DEED 820 -U -0508 -0001 COUNTY OF TARRANT° & KNOW ALL MEN BY THESE PRESENTS: That, The City of North Richland Hills of the County of Tanyant, State of Texas, hereinafter refereed to as Grantors, «hether one or more, for and ui consideration of the sour of ten dollars ($10) and other good and - valuable consideration to Grantors in hand paid by the State of Texas, acting by and tlrrough the Texas Timisportation C'onrrnission, the receipt of which is hereby acknowledged, and for which no lien is retained, either expressed or implied, have Quitelaimed and do by these presents Bargain, Sell, Release and forever Quitclaim unto the State of Texas all of Grantor' right, title, interest, claim and demand in and to that certain tract or parcel of land, situated in the County of Tarrant. State of Texas, more particrrlarly described in Exhibit "A," attached hereto and incorporated herein for any and all purposes. The City of North Richland Hills agrees to tluitclainr their property interest for: - Parcel 110: Vol. 13622_ Pg. 0561 ■ A 5' easement dedicated to the City of North Richland Hills. approx 407' - Parcel 111: Vol. 13482, Pg. 0212 ■ A 5' easement dedicated to the City of North Richland Hills. approx 183' - Parcel 112: Cabinet A. Pg. 1199 ■ A 5' x 10' easement for a pullbox facility for the City of North Richland Hills TO HAVE AND TO HOLD for said pruposes together with all and singular the rights, privileges, and appurtenances thereto in any manner belonging unto the said State of Texas forever. IN WITNESS WHEREOF, this instruument is executed on this the day of , 2011. RONV -1Y -30 P e ,- 812003 Pale 2 of 2 State of Texas County of TarTant This instrument was acknov ledaed before me on by Acknowledgement Notary Public's Sigtrahue State of Texas County of TaiTant Corporate Acknowledgment Thus instrtmient was acknowledged before me on b of corporation.. on behalf of said corporation. Notary Public's Signature Exhibit +G Quitclaim Letter North Richland Hills H March 8, 2012 Donald C. Toner Jr. SR/WA Director- Turnpike Right of Way Texas Turnpike Authority Division 3301 W. Airport Freeway Bedford, TX 76201 RE: Property interest along IH 820 between approx NTE BL Sta. 902 +21 to 909 +79 Mr. Toner, For your use the City of North Richland Hills has provided exhibits, under the 'Property Affidavit' tab, which detail their current property interests for multiple utility easements along the south ROW of IH 820. The relative property interest includes approximately 3000 ft'. The City has agreed to execute a quitclaim deed for these portions of the utility easements upon mutually agreeable fair compensation by the Design -Build Contractor (Bluebonnet Contractors, LLC) to the City, The City recommends acceptance of this proposed property relinquishment for the North Tarrant Expressway. Sincerely, Mark Hindman, City Manager Date City of North Richland Hills M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. F.0 GENERAL ITEMS M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. F.1 GN 2012 -021 Presentation of Fiscal Year 2011 Audited Financial Report Presenter: Larry Koonce Summarv: The results of the fiscal year (FY) 2011 Comprehensive Annual Financial Report (CAFR) for the City will be presented by Director of Finance Larry Koonce. A representative of the independent audit firm of Deloitte and Touche will present the audit opinion. General Descrir)tion: A copy of the CAFR is attached to this cover sheet. The auditor's opinion (see Independent Auditor's Report, page 1 of the CAFR) is an unqualified opinion or "clean" opinion again this year. This means that they have found the Financial Statements of the City of North Richland Hills to fairly represent the city's financial position. The CAFR reflects that operating funds ended the year with positive cash balances. Overall, the City of North Richland Hills' results of operations during the 2011 fiscal year, as well as the financial position at year -end, reflect a sound fiscal condition. This is in fulfillment of Council Goal 4: Financial Stability. Recommendation: Accept GN 2012 -021 the 2011 fiscal year Audited Financial Report as presented. G amnrPnpnsivp P 9 arzTere i� m I-ol eatwn `17e,3igaed e4 3tanagef4 Off-ke and J & c &a e.CX14 A i9e pwd� e4ected gwzddev Samgad awAdz CITY OF NORTH RICHLAND HILLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2011 City Officials Oscar Trevino Mayor Dr. Tim Barth Place 4 Mayor Pro Tern Tito Rodriguez Place 1 Tom Lombard Place 3 Scott Turnage Place 6 Mark Hindman City Manager Karen Bostic Assistant City Manager Jared Miller Assistant City Manager Jimmy Perdue Director of Public Safety Ken Sapp Place 2 David Whitson Place 5 Tim Welch Place 7 Mike Curtis Managing Director of Development Services Larry Koonce Director of Finance Prepared by: Finance Department NCORTH RICHLAND H I L L S City of Choice ACKNOWLEDGEMENTS The Comprehensive Annual Financial Report was prepared by the Department of Finance Office of Accounting: Karen Bostic Assistant City Manager Larry Koonce, CPA, CGFM Director Financial Reporting Staff; Laury Fiorello, Assistant Director Phyllis O'Neal, Finance Assistant Dickie Stearns, Accountant II Huibi Wang, Accountant I Pamela Knapp, Accounting Technician Jennifer Day, Accounting Technician Special appreciation is given to: Budget and Research Department Mark Mills, Director Jennipher Castellanos, Budget Analyst Human Resources Department Patrick Hillis, Director Cameron Rowland, Assistant Director James Edwards, Human Resources Analyst Dell Anne Patterson, Generalist Benefits Jenny Bransford, Payroll Specialist Ellen Cooper, Generalist Employment And to all the departments and personnel throughout the City whose extra effort to contribute, timely financial data for their departments made this report possible. City of North Richland Hills, Texas Comprehensive Annual' Financial Report For Fiscal Year Ended September 30, 2011 Pa e s Title Page I Table of Contents III - V INTRODUCTORY SECTION Letter of Transmittal IX - XIII GFOA Certificate of Achievement XIV Organizational Chart XV List of Principal Officials XVI FINANCIAL SECTION Independent Auditors' Report 1 Management Discussion and Analysis 3-14 BASIC FINANCIAL STATEMENTS Government -wide Financial Statements: Statement of Net Assets 17 Statement of Activities 18 Fund Financial Statements: Balance Sheet - Governmental Funds 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statements of Net Assets 20 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 21 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Net Assets - Proprietary Funds 24 -25 Statement of Revenues, Expenses, and Changes in Net Assets - Proprietary Funds 26 -27 Statement of Cash Flows - Proprietary Funds 28 -29 Statement of Fiduciary Net Assets - Fiduciary Funds 30 Statement of Changes in Fiduciary Net Assets - Ficuciary Funds 31 Notes to Basic Financial Statements 33 -70 City of North Richland Hills, Texas Table of Contents REQUIRED SUPPPLEMENTARY 'INFORMATION: Schedule of Funding Progress -- Texas Municipal Retirement System 73 Other Post Employment Benefits Schedule of Funding Progress 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund 75 Notes to Required Supplementary Information - General Fund 75 OTHER SUPPLEMENTARY INFORMATION: Non -major Governmental Funds: Combining Balance Sheets 78-79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 80-81 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Debt Service Fund 82 Promotional Fund 83 Donations Fund 84 Special Investigation Fund 85 Drainage Utility Fund 86 Parks and Recreation Development Fund 87 Crime Control District Fund 88 Gas Development Fund 89 Traffic Safety Fund 90 Sales Tax Revenue Bonds Debt Service 91 I►ki =1NZF lW- 1=I:I'FACa3=111JI ►1.14 Combining Statement of Net Assets 94 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 95 Combining Statement of Cash Flows 95 u►A City of North Richland Hills, Texas Table of Contents Page(s COMPONENT UNITS: Combining Statement of Revenues, Expenses and Changes in Net Assets 98 Statement of Activities 99 STATISTICAL SECTION (UNAUDITED) Government -Wide Information: Net Assets by Component Table 1 103 Changes in Net Assets Table 2 104-105 Fund Information: Fund Balances - Governmental Funds Table 3 106 Changes in Fund Balances - Governmental Funds Table 4 107 Appraised and Actual Value of Taxable Property Table 5 108 Property Tax Rates - Direct and Overlapping Governments Table 6 109 Principal Taxpayers Table 7 110 Property Tax Levies and Collections Table 8 111 Ratios of Outstanding Debt by Type Table 9 112 Computation of Direct and Overlapping Debt Table 10 113 Computation of Legal Debt Margin Table 11 114 Pledged Revenue Coverage Table 12 115 Demographic Statistics Table 13 116 Principal Employers Table 14 117 Full -time Equivalent Municipal Employees by Function /Program Table 15 119 Operating Indicators by Function /Program Table 16 120-121 Capital Asset Statistics by Function /Program Table 17 122-123 vA This page intentionally left blank. Introductory Section NCH NI This page intentionally left blank. 1!III NOK]'H KIc11LANO HILLS Iq i RH March 26, 2012 Department of Finance To the Honorable Mayor, Members of City Council, City Manager, and Citizens of the City of North Richland Hills, Texas: We hereby issue the comprehensive annual financial report of the City of North Richland Hills, Texas (the "City ") for the fiscal year ended September 30, 2011. This report consists of City management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in the report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with Generally Accepted Accounting Principles ( "GAAP "). Because the cost of internal controls should not outweigh their benefits,. the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Deloitte & Touche, LLP, independent auditors. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2011, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended September 30, 2011, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis ( "MD &A "). This letter of transmittal is designed to complement MD &A and should be read in conjunction with it. The City's MD &A can be found immediately following the report of the independent auditors. P.O. Box 820609 +'North Richland Hills, Texas + 76182 -0609 7301 Northeast Loop 820 + Finance + 817- 427 -6166 + Fax 817- 427 -6151 I►1 Profile of (North Richland Hills The City, incorporated in 1953, is a growing community located in the heart of the Dallas/Fort Worth Metroplex. The City's estimated population is 63,420 for 2011. The City is also home to over 1,200 commercial and industrial businesses. The third largest city in Tarrant County, North Richland Hills is only 10 minutes from downtown Fort Worth and 25 minutes from downtown Dallas. Interstate Loop 820 and Texas 121/183 (Airport Freeway) traverse the City, providing freeway access to five additional interstates and numerous US and state highways. The City is also conveniently located 10 minutes from Dallas/Fort Worth International Airport and 15 minutes from Alliance Airport. D /FW International Airport has over 2,000 fights daily with non -stop service to all major North American cities and many overseas destinations. The Alliance development facilitates the transport of merchandise through both the airport and the Burlington Northern /Santa Fe Intermodal Facility. North Richland Hills operates under a charter adopted in 1964 which provides for a Council- Manager form of government. The Mayor and seven Council members are elected at large. The City Council is responsible for all matters of policy and is also the authority for levying taxes, securing revenues, authorizing expenditures of City funds, and incurring City debts. The City Manager is directly responsible to the City Council. An organizational chart follows to show the various levels of responsibility. The City provides a full range of services. These services include police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure; parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; and the operations of a water and wastewater system, a golf course, and a public waterpark. A private contractor, through a franchise agreement, provides solid waste collection and disposal services for the City. The annual budget serves as the foundation for the City's financial planning and control. The City maintains budgetary controls to ensure compliance with provisions in the annual budget adopted by the City Council. Annual operating budgets are adopted for the General Fund, certain Special Revenue Funds, Debt Service Funds, Enterprise Funds,. and Internal Service Funds. Project - length financial plans are adopted for the Capital Project Funds. The level of budgetary control (that is, the level at which expenditureslexpenses cannot legally exceed the appropriated amount) is established at the fund level. Detail control is accomplished by maintaining appropriations, encumbrances, and expended balances by line item within each operating department, within each operating fund. All annual appropriations lapse at the end of the fiscal year. Budgetary data for proprietary funds has not been presented since reporting on such budgets is not legally required. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. The City Manager is authorized to transfer budgeted amounts between departments within any fund. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re- appropriated and honored during the subsequent year. Transfers of appropriations between funds require the approval of the City Council. Budget -to- actual comparisons are provided in the report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund comparisons begin on page 67 in the required supplementary information segment of the financial statements. The comparisons for other governmental funds with appropriated annual budgets are presented in the other supplementary information of this report. 0 Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy — North Richland Hills remains very diverse. A balanced mix of large employers, broad range of retail and a growing resident population; revenue streams are diverse enough enabling the City to weather sectorial downturns. The City is geographically positioned in the strong socioeconomic area of Northeast Tarrant County in North Central Texas. Neighbors with the Cities of Colleyville, Keller, Hurst and Southlake, the City of North Richland Hills economy remained on a positive course. 2011 witnessed a continued decline in unemployment and residential foreclosures. A 1% drop in unemployment to 6.8% continues to be less than Tarrant County, the DFW Metro and Texas. Residential foreclosures continue to trend downward from the peak periods during the recession, whereby the City's current rate is 27% below the Tarrant County average. This year also witnessed increases in taxable sales, taxable property values and new home starts. Compared to the previous fiscal year taxable sales grew by 2.3 %, representing a $19 million increase. 2009 and 2010 declines in taxable property values were able to reverse their course in 2011 growing by $23 million in taxable value. Annual taxable sales increased by 2.5% over 2010. Finally, in 2011 not only did the City realize a 52% increase in new home starts with 122 over the previous year, the new start average home value increased by 12% to $232,000. One benefit in being 3' largest City in Tarrant County behind Fort Worth and Arlington, the City maintains a diverse mix of major employers that include HealthMarkets, North Hills Hospital and Impel Management Services which employ over 1,600 in the growing healthcare sector; Fitz Manufacturing and SeyTec Aerospace which employ over 250 in the growing aerospace sector, and Con -Way Freight with over 300 employees in the growing supply chain sector, just to name a few. 2012 is projected to be another important year in the life of North Richland Hills as construction of Northeast Loop 820 expansion takes place facilitating the redevelopment and revitalization of commercial property along the highway corridor. Long -term financial n1annina — In February 2003, the voters authorized the development of twenty -two street projects (arterial, collector, and residential), two drainage projects, and four municipal facilities projects with the passage of four propositions in the 2003 Bond Election. The authorized election package totaled $37,210,000 for the aforementioned projects. The City Council and management believe development of these projects is needed to improve infrastructure and provide essential services to its citizens. The projects are expected to continue through the year 2011. At least annually, management reviews and updates long -range financial plans for the general operations of the City as well as the proprietary activities. Forecasts are prepared using conservative growth estimates for major sources of revenue. Maintaining this conservative approach, coupled with an aggressive debt repayment policy, have assisted in the City maintaining a favorable bond rating since 1997. Analysis is continuously updated to reflect new bond issues and the repayment thereof, as well as updates to estimates based on new developments, historical trends, changes in applicable legal requirements, and Council and management priorities. The plans for the internal service funds include the accumulation of resources for meeting both current and future needs. For example, facilities and fleet support services as well as information services collect user fees to meet current maintenance needs as well as to meet future capital replacement needs. U Similarly, the City's policy with regard to self - insurance premiums has been to collect sufficient amounts to cover current health and dental claims as well as additions to reserves for future claims. In fiscal years 2002 and 2003 the Self Insurance (Internal Service) Fund reserves of $3.1 million were depleted due primarily to spiraling inflation in the health care industry and unforeseeable extraordinary health claims. In fiscal year 2004, City Council adopted a strategy to rebuild reserves over a six -year period beginning in fiscal year 2005. Savings from changes in the health care plan, transfers from existing cash reserves in the General Fund and Water and Sewer Fund, and employee premiums are being used and continue to re- establish the reserves. Similar plans for the build -up of reserves exist for the City's enterprise operations. Funds are set aside to meet future capital replacement needs such as infrastructure replacement and capital asset acquisitions. This approach has allowed the City's water and sewer operation to meet the majority of its capital replacement needs with the issuance of minimal debt. NRH the City's Waterpark, has funded some new attractions and infrastructure improvements by utilizing cash reserves accumulated from operations. Gash management ,policies and practices – The City's current bank depository contract is with JP Morgan Chase Bank, N.A. which began on October 1, 2009 and will be in effect through September 30, 2014. Cash temporarily idle during the year was invested in three public funds investment pools, certificates of deposit, agency securities, and U.S. Treasury Notes. The maturities of the investments range from overnight to three years. The average yield on investments for fiscal year 2011 was 1.27% compared to 2.03% for the prior year. The portfolio's weighted average maturity ( "WAM ") at the end of the fiscal year was 290 days, which represents an 8 day increase over last year's WAM which was 282 days. At fiscal year end, approximately 33.7% was invested beyond one year, 31.6% was invested for one year or less, while the remaining 34.7% was invested in the overnight market. The City continues to use the services of PFM Asset Management, LLC as an investment advisor and overseer of our portfolio, which began on October 1, 2009. Risk management — The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self- Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims. This policy covers City medical claims in excess of $175,000 per individual per year, and/or $6,829,329 in the aggregate for a 12 -month period beginning on January 1, 2011. Self - Insurance Fund claims are funded by charges to other funds and employee, retiree, and dependent premiums. Additional information on the City's risk management activity can be found in the notes to the basic financial statements. Pension and other oosf- employment benefits — The City participates in the Texas Municipal Retirement System ("TMRS "), an agency authorized by the State of Texas. Employees of the City contribute a fixed percentage of their gross pay (currently 7 %). TMRS participants are immediately vested in those funds they contribute plus allocated interest. Participants are vested in employer contributions after five years of credited participation. If participants withdraw from TMRS prior to five years of credited participation, they may withdraw from TMRS those funds they contributed plus interest earnings. The City also provides postretirement health and dental care benefits for certain retirees and their dependents. As of the current fiscal year, there were 1019 retired employees receiving these benefits. Additional information on the City's pension arrangements and post employment benefits can be found in the notes to the basic financial statements. Awards — The Government Finance Officers Association of the United States and Canada ( "GFOK') awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2010. The Certificate of Achievement is a xu prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded the Certificate of Achievement, a govemmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial reports must satisfy both GAAP and applicable legal requirements. The Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last twenty -eight consecutive years. Staff believes the current Comprehensive Annual Financial Report continues to conform to the Certificate of Achievement Program requirements and it will be submitted to the GFOA for review. The City also received an award in 2011 for the 2010 -2011 operating budget. The Distinguished !Budget Presentation award was granted to the City for the twenty -first consecutive year by the GFOA. Acknowledomenfs — Timely preparation of this Comprehensive Annual Financial Report was made possible by the dedicated service of the Finance Department staff and our independent auditors. We would like to express sincere appreciation to those who contributed to the process. In closing, the continued leadership and support of the Mayor, City Council, and City Manager in planning and conducting the financial operation of the City is sincerely appreciated. Respectfully submitted, Larry Koon Director of Finance Lau�o Assistant Director of Finance X111 Certificate of Achievement for Excellence in Financial Reporting Presented to City of North Richland Hills Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2010 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. E 0 .7 Tkt M OF unzVATEII I t AND CXWA *k"PAi President L �TIIOS"xc? L SLAI S Executive Director XIV City of North Richland Hills CITIZE=NS h Mayor & City Council ' Municipal Court ` Boards and Judge Commissions ` City Secretary H 'City Attorney ' City Manager Community Services Public Safety i Administrafive/Fiseal Development Services i Servings AIL Library _ Parks & Economic Police Department — Finance Department Budget Department Pubile ftfks Planning and Zoning Recreation Development - Accounting - Internal Audit -Streets I - Purchasing _7� - Drainage l Fare De _ Department p Utility Services & Collections - Engineering Golf Course NRH20 - Emergency Mgt. Utilities _ Building Inspections i Neighborhood Services Information Services Human Resources Foe ilitieslConstruaivn Mgt, Fleet Services - Consumer Health -Computers/Networks Employment Services — E ui ment Services -Building - q p -Cade Compliance - Phones -Risk Management Construction Mgt. Fire Equipment Animal Services Civil Service F� ctjp�st r�9yyproilbilties - [5eue(�pment euew Committee -TRTC Municipal court RTC FunCtioreal esnorl ttiri .s � Public Information - °.— -Water Utilities -Fart Worth - Parks a OCrea4iOn card Functional RUesraansibilities - Citicable - Rail rruuatiAs - Library Board -826 Expansion - Ecnnamic Dew1opment Roard -Funding DeWopnent- Animal -Minerals I Ges Swmces Farilities Solid Waste Functional Resoonsiblilties Kam - Facilities Study — Franchises - TAO •Legislative CoordinatimVAnalysis C ®rdracted `Appointed by Services Council xv CITY OF NORTH RICHLAN❑ HILLS, TEXAS List of Principal Officials September 30, 2011 MAYOR OSCAR TREVINO COUNCIL MEMBER, PLACE 1 TITO RODRIGUEZ COUNCIL MEMBER, PLACE 2 KEN SAPP COUNCIL MEMBER, PLACE 3 TOM LOMBARD MAYOR PRO TEM, COUNCIL MEMBER, PLACE 4 DR. TIM BARTH COUNCIL MEMBER, PLACE 5 DAVID WHITSON COUNCIL MEMBER, PLACE 6 SCOTT TURNAGE COUNCIL MEMBER, PLACE 7 TIM WELCH City Manager Mark Hindman Assistant City Manager Karen Bostic Assistant City Manager Jared Miller Director of Public Safety Jimmy Perdue Managing Director of Development Services Mike Curtis Managing Director of Community Services Vickie Loftice City Secretary Patricia Hutson City Attorney George Staples Director of Human Resources Patrick Hillis Director of Finance Larry Koonce Assistant Director of Finance Laury Fiorello Budget Director Mark Mills Director of Economic Development Craig Hulse Director of Planning and Development John Pitstick Public Information Officer Mary Peters Director of Information Services Kyle Spooner Municipal Court Administrator Debbie Durko Director of Neighborhood Services JoAnn Stout Library Director Steve Brown Director of Fleet Services Thomas Powell Fire Chief Andy Jones Director of Facilities & Construction Chris Amarante Q0 Financial Section NCH ►en This page intentionally left blank. XVI I I Deloitte INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Deloitte & Touche LLP 2200 Ross Ave. Suite 1600 Dallas, TX 75201 USA Tel: +1 214 840 7000 Fax: +1 214 840 7050 www.deloitte.com We have audited the accompanying basic financial statements of the governmental activities, business -type activities, each major fund, the aggregate discretely presented component units and the aggregate remaining fund information of the City of North Richland Hills, Texas (the "City"), as of and for the year ended September 30, 2011, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governatent Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes ex aminin g, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business -type activities, each major fund, the aggregate discretely presented component units and aggregate remaining fund information of the City, as of September 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note I, the City adopted the provisions of Statement No. 54 of the Governmental Accounting Standards Board, Fund Balance Reporting and Governmental Fund Type Definitions, effective October 1, 2010. In accordance with Governnient Auditing Standards, we have also issued our report dated March 16, 2012, on our consideration of City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an MR ber of DeloitteToucheTohmatsu Limited opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Garerninent Auditing Standards and should be considered in assessing the results of our audit. Management's Discussion and Analysis, the Schedule of Funding Progress — Texas Municipal Retirement System, the Schedule of Funding Progress — North Richland Hills Other Post Employment Benefits, and the Budgetary Comparison Schedule - General Fund are not required parts of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. This supplementary information is the responsibility of the City's management. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the City's respective financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements and other schedules listed in the foregoing table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. These financial statements and schedules are the responsibility of the City's management. Such additional information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section as listed in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements for the City. This information is the responsibility of the City's management. Such additional information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. LLP March 16, 2012 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 The City of North Richland Hills, Texas (the "City ") Management's Discussion and Analysis ( "MD&A ") is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial position (its ability to address the next and subsequent years' challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. MD &A is designed to focus on the current year's activities, resulting changes, and currently known facts, and should be read in conjunction with the City's financial statements (beginning on page 17). Also, unless otherwise indicated, all discussion and amounts presented herein are based upon the activity of the primary government only. Financial Highlights • The assets of the City exceeded its liabilities at the close of the fiscal year ended September 30, 2011 by over $308 million (net assets). Of this amount, approximately $58.7 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net assets increased by $19.3 million in fiscal year 2011. Additional details of this increase may be found beginning on page 18. • As of September 30, 2011, the City's governmental funds reported combined fund balances of $56,996,267 which represents a decrease of $386,305 in comparison to the prior fiscal year's ending balance. • Approximately 32% of total governmental fund balance, or $18,167,098, is available for appropriation at the government's discretion (assigned and unassigned fund balance). • The City's objective regarding General Fund fund balance is to maintain a minimum unassigned fund balance to operate the City for a period of 60 days or 15% of the following year's appropriated budgeted expenditures. This objective was met at year end. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $9,838,310 or 27% of General Fund actual expenditures for 2011. • The City's total debt (including discrete component units) increased by approximately $7.255 million during the current fiscal year. New general obligation bonds and certificates of obligation in the amounts of $1.8 million and $5.455 million respectively were issued in fiscal year 2011. Overview of the Financial Statements MD&A is intended to introduce the reader to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other required supplementary information in addition to the basic financial statements. Government- wide financial statements - The government -wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to private - sector business. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the fiscal year. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, unused vacation leave). Both CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 the Statement of Net Assets and the Statement of Activities are prepared using the accrual basis of accounting as opposed to the modified accrual basis used in prior reporting models and in governmental funds. In the Statement of Net Assets and the Statement of Activities, the City's operations are separated into two types of activities: • Governmental activities - Most of the City's basic services are reported here, including the activities of public safety, culture and recreation, public works, and general government. Property taxes, sales taxes, and franchise fees finance most of these activities. • Business -tune activities — For this type of activity, the City charges a fee to customers to cover all or most of the cost of services provided including the recovery of costs of capital assets used in the delivery of such services. The City's water and sewer, golf course, and aquatic park activities are reported here. The government -wide financial statements can be found on pages 17 — 18 of the comprehensive annual financial report. Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by state law or bond covenants. However, management establishes many other funds to help control and manage resources for particular purposes or to show that legal responsibilities for using certain taxes, grants, and other money are being met. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds - The majority of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available for appropriation at year- end. These funds are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. Statements of governmental funds provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources available for appropriation in the near future to finance City programs. By comparing information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements, readers may better understand the long -term impact of the government's near -term financing decisions. The relationship or differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are detailed in a reconciliation following the fund financial statements. The City maintains three major individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the {Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds (pages 19 - 21). The General Fund, General Debt Service Fund, and General Capital Projects Fund are the major governmental funds of the City. Data from the other non -major governmental funds are combined into a single, aggregated presentation in the governmental statements. Pronrietary funds - The objective of proprietary funds is to charge customers, both internal and external, for services provided an amount sufficient to cover virtually all costs associated with providing the services including recovery of amounts required to replace assets used in the delivery of such services. These services are generally reported in proprietary funds. Proprietary funds are reported in the same manner that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary funds) are almost identical to the business -type activities that are reported in the government -wide statements, but provide more detail and additional information, such as the statement of cash flows. The internal service funds (the other component of proprietary funds) are utilized to report activities that provide supplies and services for the City's other programs and activities, such as the City's building maintenance services, fleet management, employee and property insurance coverage, and telephone and computer services. Because these services benefit both governmental and CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 business -type functions, they have been included in both the governmental and business -type activities in the government -wide financial statements. The City maintains three enterprise funds. The City uses enterprise funds to account for its provision of water and wastewater services, golf course operations, and water park activities. The City considers all enterprise funds to be major funds. Financial statements for the enterprise funds can be found on pages 24 - 29 of the report. Notes to the financial statements - The notes to the financial statements provide additional information that is essential for a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 33 - 70 of this report. Government -Wide Financial Analysis The government -wide financial analysis highlights the information contained in the Statement of Net Assets and Statement of Activities. The City's combined net assets were $308,683,615 as of September 30, 2011. Analyzing the net assets of governmental and business -type activities separately, governmental activities net assets equal $218,816,836 and business -type activities net assets total $89,866,779. This analysis focuses on the net assets and changes in general revenues and significant expenses of the City's governmental and business -type activities. Statement of Net Assets - The largest portion of the City's net assets (79 %) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses capital assets to provide services to citizens; consequently, capital assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these obligations. The following table presents the condensed government -wide statement of net assets as of September 30, 2010 and 2011. Current assets include restricted deposit and investment balances. Schedule of Assets, Liabilities, and Net Assets Amounts shown in thousands ($000's) As of September 30, 0 Govemmental Activities Business -Type Activities Total 2011 2010 2011 2010 2011 2010 Current and Other Assets $74,385 $76,035 $34,372 $33,596 $108,757 $109,631 Capital Assets, Net 214,923 198,035 75,566 71,511 290,489 269,546 Total Assets 289,308 274,070 109,938 105,107 399,246 379,177 Lang -term Liabilities 55,041 53,434 16,620 12,629 71,661 66,063 Other Liabilities 15,450 16,695 3,451 6,983 18,901 23,678 Total Liabilities 70,491 70,129 20,071 19,612 90,562 89,741 Net Assets Invested in Capital Assets, Net of Related Debt 178,610 164,973 65,811 61,160 244,421 226,133 Restricted 2,873 3,715 2,600 2,610 5,473 6,325 Unrestricted 37,334 35,253 21,456 21,725 58,790 56,978 Total Net Assets $218,817 $203,941 $89,867 $85,495 $308,684 $289,436 0 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 Statement of Activities - Governmental activities increased the City of North Richland Hills' net assets by $14,875,112 in fiscal year 2011, and business -type activities increased net assets by $4,371,504. The following table presents the condensed government -wide statement of activities for the years ended September 30, 2010 and 2011. Changes in Net Assets Amounts shown in thousands (000's) Year Ended September 30, Governmental Activities Business -Type Activities Total 2011 2010 2011 2010 2011 2010 Revenues: Program revenues: Charges for services $9,851 $13,286 $35,833 $30,679 $45,684 $43,965 Operating grants and contributions 880 965 - - 880 965 Capital grants and contributions 17,644 6,807 4,643 272 22,287 7 „079 General revenues: Property tax 19,340 19,910 - - 19,340 19,910 Sales tax 16,645 16,428 - - 16,645 16,428 Mixed beverage 128 118 - - 128 118 Franchise taxes 4,330 3,957 - - 4,330 3,957 Occupancy taxes 238 240 - - 238 240 Unrestricted investment earnings 495 589 171 237 666 826 Miscellaneous 1,272 553 31 54 1,303 607 Total revenue 70,823 62,853 40,678 31,242 111,501 94,095 Expenses: General government 9,887 14,654 - - 9,887 14,654 Public safety 28,512 26,172 - - 28,512 26,172 Culture and recreation 9,352 9,468 - - 9,352 9,468 Public works 7,679 8,389 - - 7,679 8,389 Interest and other fees 2,108 1,761 - - 2,108 1,761 Utility - - 27,981 27,313 27,981 27,313 Golf course - - 2,227 2,236 2,227 2,236 Aquatic park - - 4,508 4,190 4,508 4,190 Total expenses 57,538 60,444 34,716 33,739 92,254 94,183 Increase in net assets before transfers 13,285 2,409 5,962 (2,497) 19,247 (88) Transfers between governmental and Business -Type 1,591 2,690 (1,591) (2,690) - - Net Increase (decrease) in net assets 14,876 5,099 4,371 (5,187) 19,247 (88) Net assets - beg. Bal. 203,941 198,842 85,496 90,683 289,437 289,525 Net assets - end of year $218,817 $203,941 $89,867 $85,496 $308,684 $289,437 Governmental activities - Governmental activities increased the City of North Richland Hills' net assets by approximately $15 million in fiscal year 2011. The City had an increase in tax revenues of $27,519 during 2011. Charges for services decreased by 26% or approximately $ {3.4} million under 2010 revenues. The decrease is directed by revenue recognition of unearned revenue activity recognized in prior years. The total expenses for governmental activity decreased by approximately $ {2.9} million under 2010 totals. This decrease is based on several reductions. Public Works non - capital projects decreased $709,530 under 2010 levels. The rest of reduction was due to General government expenditure reductions. These reductions are directly related to Internal service operations in the Self Insurance Fund. Claims expense for 2011 reduced expenses by approximately $2 million under the 2010 levels. Operating grants and contributions decreased by $85,390 from fiscal year 2010 to 2011, while capital grants and contributions increased by $10.8 million from 2010 to 2011. Capital Grants and Contributions increase was due to two major factors. Over $4 million was developer capital contributions for infrastructure within Hometown s CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 subdivision. Also, a State grant for the widening of a major thoroughfare (North Tarrant Expressway) was a shared project between County, City, and State jurisdictions thus creating a greater receipt of grants funds from other entities. Sales and mixed beverage taxes increased by $226,885 from fiscal year 2010 to 2011. Franchise taxes realized an increase of $372,837 from 2010 to 2011. This increase is directly related to a new cable/fiber optic television utility established during the fiscal year of 2008. Franchise tax activity did increase slightly from water and sewer sales due to the 20111 drought. Sales taxes are entirely dependent upon the local economy. The City is expecting a slight increase in sales tax revenues for 2012. The most significant governmental expense occurred in the public safety program ( "PS "), which incurred expenses of $28,512,136. This figure represents an increase from the prior fiscal year expenses of approximately $2.3 million. Approximately 71 % of the PS costs is related to police and fire protection personnel salaries and related benefits. These costs are estimated at $21,883,487 which represents an approximate increase of $809,894 from the prior fiscal year. This increase is in alignment with projected salary raises for public safety officers, lump sum pays for attrition of positions, and benefit cost increases. Internal Service Funds saw a net increase in net assets of approximately $1.3 million. Internal Services of Facilities and Construction and Self Insurance shared a cumulative gain of $1,727,231. The majority of the increase was directly attributed to Self Insurance realizing a net gain to net assets totaling $1,675,515. Risk activities for 2011 showed a positive trend with lower than projected medical claims. The other two internal service functions saw a net decrease. This decrease totaled $(462,239). This decrease was a budgeted usage of net assets for 2011 for capital improvement projects. Culture and recreation program expenses decreased by approximately 1.3% (approximately $116 thousand) from fiscal year 2010 to 2011. This activity remained fiat because of leveling of non - capital projects activity. Expenses and Program Revenues - Governmental Activities $(000's) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 E1 Government Recreation Other Fees ■ Expenses Revenues General Public Safety Culture & Public Works Interest & CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 General Revenues by Source - Governmental Activities Franchise Fees Unrestricted Investment Earnin 1.1% les Tax 9.3% Property Taxes 45.4% :cellaneous 4.0% Business -tvpe activities — Business -type activities resulted in an increase to the City's total net assets. The 2011 increase was $4,371,504. $251,206 of this increase is attributed to absorbing internal service activities on the government wide level. Net operations for Aquatic Park and Golf Course have remained flat and accounts for a margin of the gain for 2011. Utility operations gain of $3,959,050 was correlated to several fiscal factors: Utility operations sales for water and sewer services increased operations by $1.2 million approximately. This increase is directly due to drought conditions in 20111 summer. Hometown Developer contributions of capital infrastructure was realized for $4.6 million. CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 Expenses and Program Revenues - Business -Type Activities $(000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Utility Golf Course W I Aquatic Park ■ Expenses Revenues Revenues by Source - Business-type Activities Services- Utility 80.7% Golf Course 5.5% Aquatic Park 12.8% 9 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 Fund Level' Financial Analysis The General Fund fund balance for the year ended September 30, 2011 was $13,266,872, which was a modest increase of $143,209 from 2010. Of this amount, nonspendable fund balance amounts for inventories, prepaids, and advances were $168,169, $21,734, and $736,804 respectively. Assignment of fund balances total $1,848,329. Of this amount $469,281 are encumbrances from 2011 unspent but obligated to vendors at year end. Restrictions from outside or legal authorities of fund balances total $653,526 which are statutorily isolated for the municipal court technology, security, and juvenile programs. The unassigned fund balance amount of $9,838,310 is approximately 74% of available fund balance. The General Fund property tax revenues realized a slight increase from the prior year of $116,610. Property tax receipts are remaining flat in comparison to prior years significant upward trends. The City has reached approximately 80% build -out of available undeveloped housing plats. With the economy in a recession and the close proximity to build -out status, property tax revenues are projected to remain flat. There was no change in the total property tax rate of $.57 which has been in effect since fiscal year 1994. Sales taxes decreased by 1 % or $ {64,609} respectively. Ambulance fees grew by $314,819 over 2010, due to an increase in resident rates in fiscal year 2010 and a change to another ambulance transport billing provider. The General Capital Projects Fund ("GCP ") ended the year with a decrease of fund balance of $2,121,757 over 2010. This decrease is an accumulation of several reasons. Capital Improvement projects were carefully analyzed due to the recession. So an influx of bond proceeds was smaller than prior years due to the conservative approach of necessity planning. Also utilization of prior bond proceeds saw activity during the fiscal year, thus the decrease in fund balance. Enterprise Funds realized an increase to their net assets for the year ended September 30, 2011. The Utility Fund, Golf Fund and the Aquatic Park Fund saw a net increase of $3,959,050, 111,797, and $49,451 respectively. Golf has implemented efficiency measures and controlled costs so that the operations saw an increase for the fiscal year. Aquatic Park benefited from higher attendance rates due to the drought of 2011. Utilities had a developer contribution totaling $4.6 million for infrastructure installed to the utility plant. General Fund Budgetary Highlights North Richland Hills has been more fortunate than other areas of the country that have been significantly impacted by the recent recession. However, a pattern since late 2008, economic conditions have negatively impacted municipal revenue streams. Implementation of the City's contingency plan was not required during 2011; however, steps were taken in response to projected declines in revenue. Departments were briefed on projected revenues and directed to approach their spending conservatively, with a focus on core services and critical needs. The majority of the variance is attributable to departments taking astute care and oversight of their individual budgets. In addition, the City implemented a rolling freeze on all vacant, non -sworn positions. Each vacant position was held open for thirty days, after which time it was re- evaluated. The ending unassigned General Fund fund balance of $9,838,310 continues to meet the City's policy of maintaining a balance of at least 15% of expenditures. The policy was established to protect the City from unforeseen emergencies and to place the City in a more favorable financial position overall. General Fund Revised Budget to Actual Comparison Notable variances occurred in the General Fund revised budget to actual comparison as follows: • Franchise fees reflected a increase of $346,461 which is primarily due to increases in gas, water and sewer payments, and cable utilities. Rates for gas and water and sewer utilities increased due to higher water sales due to the 2011 drought plus new services from cable franchises were implemented by providers. 10 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 • General Fund had positive net budget variances totaling approximately $1,697,675. The General Fund activities and their individual variances include: General Fund Departmental Budget Variances Positive (Negative) City Council $ 51,277 City Manager 46,139 Communications 21,571 City Secretary 81,212 Legal 173,999 Human Resources (330) Finance 1,920 Budget & Research 8,493 Municipal Court 42,178 Planning and Inspections 59,429 Economic Development 41,867 Library 48,625 Neighborhood Services 131,531 Public Works 288,208 Parks & Recreation 215,898 Police 221,574 Emergency Management 190,061 Fire 103,626 Non - Departmental (30,603) Total General Fund $ 1,697,675 General Fund overall savings is partly caused by encumbrances of current year activities which will be carried to 2011 -2012 budget and expensed in the new budget period. The total of 2010 -2011 encumbrances to be expended in 2011 -2012 totals $469,281 (or approximately 27% of net amount under budget). Capital Asset and Debt Administration Capital assets - At the end of fiscal year 2011, the City had $290 million (net of accumulated depreciation) invested in a broad range of capital assets including, but not limited to, police and fire equipment, buildings, park facilities, roads, bridges, aquatic park facilities, golf course assets, and the water and sewer system. The following table provides capital asset balances net of accumulated depreciation for each major category for both governmental and business -type activities for the fiscal years ending September 30, 2010 and 2011. 11 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 Capital Assets (net of Accumulated Depreciation) Amounts shown in thousands (000's) Construction commitments and other limitations affecting availability of fund resources: The City prepares an annual Capital Improvement Projects budget that assigns specific funds and resources for use only for these projects. Until appropriations are removed these resources are unavailable for general operations or new capital projects. The City currently has isolated resources totaling $63,494,295 for both the Governmental and Business -type activities. These resources will be used to purchase major equipment, construct new buildings, and add new infrastructure such as water and sewer lines and streets. More information on capital assets can be found in footnote IV.C. in the Footnotes to the financial statements. 12 Governmental Activities Business -Type Activities Total Total 2011 2010 2011 2010 2011 2010 Land & land imp. $ 76,688 $ 75,550 $ 2,579 $ 2,527 $ 79,267 $ 78,077 Works of art 298 252 - - 298 252 Buildings & imp. 22,229 23,588 1,800 1,927 24,029 25,515 Other imp. 87,528 79,185 14,637 13,728 102,165 92,913 Utility plant - - 54,148 48,839 54,148 48,839 Machinery & equip. 7,668 7,374 1,369 1,421 9,237 8,795 Const. in progress 20,312 12,085 1,033 3,069 21,345 15,154 Total capital assets $ 214,923 $ 198,034 $ 75,566 $ 71,511 $ 290,489 $ 269,545 This year's additions included: Description Amount Ambulance and Firetruck $ 2,371 Capitalized Interest 55,505 Computer and Machinery Equipment 1,039,740 Drainage Improvement 2,299,119 John Deere Mower 161,150 Library Building 12,033 NRH20 Pool Area Improvement 1,640,137 Street Improvement 416,992 Various Infrastructure Improvements 1,158,297 Various Land Acquisitions 1,336,498 Various Vehicles 672,736 Water and Sewer line 3,430,953 Work of Art at various parks 45,914 Home Town Developer Contributions 13,361,122 Construction commitments and other limitations affecting availability of fund resources: The City prepares an annual Capital Improvement Projects budget that assigns specific funds and resources for use only for these projects. Until appropriations are removed these resources are unavailable for general operations or new capital projects. The City currently has isolated resources totaling $63,494,295 for both the Governmental and Business -type activities. These resources will be used to purchase major equipment, construct new buildings, and add new infrastructure such as water and sewer lines and streets. More information on capital assets can be found in footnote IV.C. in the Footnotes to the financial statements. 12 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 Debt - At September 30, 2010 and 2011, the City had the following debt outstanding: Outstanding Debt Amounts shown in thousands (000's) In fiscal year 2011, the City issued new debt. The presently outstanding general obligation debt of the City is rated "AA2" by Moody's and "AA +" by S &P. The City also has issues outstanding which are rated "Aaa" by Moody's and "AAA" by S &P through credit enhancement in the form of municipal bond insurance policies. As a home rule city, the City is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation debt. The City has maintained a property tax rate of $0.57 per $100 assessed valuation for twelve consecutive years. The current ratio of tax - supported debt to assessed value of all taxable property is 1.25 %. Additional detailed information on long -term debt activity is disclosed in the notes (IV -E) to the financial statements. Risk - The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self - Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims. This policy covers city medical claims in excess of $175,000 per individual, and/or $6,829,329 in the aggregate for a 12- month period beginning on January 1, 2011. Self- Insurance fund claims are funded by charges to other funds and premiums from employees and retirees for self and dependent coverage. Economic Factors and Next Year's Budgets and Rates The two largest revenue sources for the General Fund are property tax revenues and sales tax receipts. Due to the volatile nature of the sales tax revenue source and the recent departure of major retailers, the City has been conservative in sales tax projections for fiscal year 2010 -2011. For budget year 2011 -2012, sales tax receipts are anticipated to be aligned with budget and the City does not expect to see growth above the estimated amounts. Sales tax revenue in 2011 ended 1% below the budgeted number. When compared to budget year 2010 -2011 actual receipts, sales taxes are anticipated to continue to remain fiat in 2012. The fiscal year 2011 -2012 budget incorporates no increase in the property tax rate. For fiscal year 2011 -2012 the tax rate distribution for the City is as follows: 13 Governmental Activities Business -Type Activities 2011 2010 2011 2010 2011 2010 Totals Totals General obligation bonds $ 41,000 $ 41,725 $ 1,405 $ 1,890 $ 42,405 $43,615 Certificates of obligation 9,575 8,255 12,610 11,285 22,185 19,540 Sales tax revenue bonds 1,645 2,640 - - 1,645 2,640 Loans payable 1,242 1,625 - - 1,242 1,625 Totals $ 53,462 $ 54,245 $13,175 $13,175 $ 67,477 $ 67,420 In fiscal year 2011, the City issued new debt. The presently outstanding general obligation debt of the City is rated "AA2" by Moody's and "AA +" by S &P. The City also has issues outstanding which are rated "Aaa" by Moody's and "AAA" by S &P through credit enhancement in the form of municipal bond insurance policies. As a home rule city, the City is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation debt. The City has maintained a property tax rate of $0.57 per $100 assessed valuation for twelve consecutive years. The current ratio of tax - supported debt to assessed value of all taxable property is 1.25 %. Additional detailed information on long -term debt activity is disclosed in the notes (IV -E) to the financial statements. Risk - The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self - Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims. This policy covers city medical claims in excess of $175,000 per individual, and/or $6,829,329 in the aggregate for a 12- month period beginning on January 1, 2011. Self- Insurance fund claims are funded by charges to other funds and premiums from employees and retirees for self and dependent coverage. Economic Factors and Next Year's Budgets and Rates The two largest revenue sources for the General Fund are property tax revenues and sales tax receipts. Due to the volatile nature of the sales tax revenue source and the recent departure of major retailers, the City has been conservative in sales tax projections for fiscal year 2010 -2011. For budget year 2011 -2012, sales tax receipts are anticipated to be aligned with budget and the City does not expect to see growth above the estimated amounts. Sales tax revenue in 2011 ended 1% below the budgeted number. When compared to budget year 2010 -2011 actual receipts, sales taxes are anticipated to continue to remain fiat in 2012. The fiscal year 2011 -2012 budget incorporates no increase in the property tax rate. For fiscal year 2011 -2012 the tax rate distribution for the City is as follows: 13 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2011 By policy, the City maintains an unassigned General fund balance of 15% of budgeted expenditures. The use of available fund balance for one -time expenditures eliminates the financial impact of such purchases on future budgets. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of North Richland Hills, Director of Finance, P.O. Box 820609, North Richland Hills, Texas 76182 -0609. 14 % of Total Tax Rate Tax Rate Distribution Schedule Tax Rate Distribution General Fund - Maintenance & Operations 62.5% 0.356419 Debt Service Fund 37.5% 0.213581 Total distribution of tax rate 100.0% $0.570000 By policy, the City maintains an unassigned General fund balance of 15% of budgeted expenditures. The use of available fund balance for one -time expenditures eliminates the financial impact of such purchases on future budgets. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of North Richland Hills, Director of Finance, P.O. Box 820609, North Richland Hills, Texas 76182 -0609. 14 BASIC FINANCIAL STATEMENTS 15 This page intentionally left blank. 16 CITY OF NORTH RICHLAND HILLS, TEXAS Government -wide Statement of Net Assets September 30, 2011 17 Primary Government Governmental Business -Type Component Activities Activities Total Units Assets CURRENT ASSETS Cash and cash equivalents $ 22,861,418 $ 9,588,923 $ 32,450,341 $ 21,212,428 Receivables, net of allowances: Accounts 1,022,321 4,631,401 5,653,722 - Property taxes 141,086 - 141,086 - Othertaxes 3,513,741 - 3,513,741 - Interest receivable 245,853 54,130 299,983 11,424 Special assessments 86,687 - 86,687 - Intergovernmental 3,430,079 389,493 3,819,572 - Other 128,890 205,736 334,626 - Prepaids 203,148 40,903 244,051 - Inventories, at cost 277,828 381,597 659,425 - Intemal balances (2,350,773) 2,350,773 - - Total current assets 29,560,278 17,642,956 47,203,234 21,223,852 NONCURRENT ASSETS Restricted cash and cash equivalents 44,214,384 16,542,357 60,756,741 887,738 Capital assets - net: Land and nondepreciable land improvements 76,688,297 2,579,137 79,267,434 - Buildings and improvements 39,323,691 3,757,904 43,081,595 - Improvements other than buildings 160,689,487 24,283,165 184,972,652 - Utility plant - 98,295,308 98,295,308 - Machinery and equipment 23,125,283 3,900,868 27,026,151 - Artwork and historical treasures 298,209 - 298,209 - Construction 'in progress 20,312,475 1,033,303 21,345,778 15,581,877 Accumulated Petadep depredation et ( 514 773 { 75�65� 331 ff \ 290,48f(704 ) 15,581 877 Bond issue costs, net of amortization � 22 W137 797259 190 619 Total noncurrent assets 259 747 379 92,295,325 352,042,704 16,660,234 Total assets 289307657 109,938,281 399,245,938 37,884,086 Liabilities CURRENT LIABILITIES Accounts payable and accrued liabilities 4,719,668 1,719,035 6,438,703 1,777,926 Deposits and other liabilities 1,087,571 84,881 1,172,452 - Retainage payable 673,902 81,574 755,476 585,294 Compensated absences 2,157,718 347,284 2,505,002 - Unearned revenue 120,825 72,217 193,042 - Accrued interest payable 260,770 71,995 332,765 129,022 Bonds payable 6,030,000 1,030,000 7,060,000 1,880,000 Loans payable 399,547 - 399,547 - Intergovemmental payables - 774 774 - Developers' deposits - 44 128 44 128 - Total current liabilities 15,450,001 3,451188 18,901389 4,372,242 NONCURRENT LIABILITIES Customers' deposits - 1 1,892,716 - General obligation bonds payable 36,766,970 1 38,121,230 284,523 Certificates of obligation 8,753,519 11,622,364 20,375,883 26,064,207 Sales tax revenue bonds 615,000 - 615,000 - Loans payable 842,124 - 842,124 - Compensated absences 919,262 112,078 1,031,340 - Intergovernmental payables - 744,222 744,222 - Other post employment benefits obligation 3,760,774 474,881 4,235,655 - Net pension obligation 3,383,171 419,093 3,802,264 - Total noncurrent liabilities 55 040 820 16 619,614 71 660 434 26,348 730 Total liabilities 7d� 90621 201771,502 90361323 30,720, 72 Net assets Invested in capital assets, net of related debt 178,6117,314 65,810,811 244,421,125 83,102 Restricted far: Debt service 2,873,328 - 2,873,328 7,080,012 Impact fees restricted for construction - 2,600,187 2,600,187 - Unrestricted 37 333 194 21 455,781 58 788 975 -15 Total net assets $ 21817161736 $ 891766, 779 $ 308� $ 7,163,114 The notes to the financial statements are an integral part of this statement. 17 CITY OF NORTH RICHLAND HILLS, TEXAS Government -wide Statement of Activities Year Ended September 30, 2011 Functions/Programs Primary Government Governmental activities: General government Public safety Culture and recreation Public works Interest and other fees Total governmental activities Business -type activities: Utility Golf course Aquatic park Total business -type activities Total primary government Component units Program Revenues Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions Net (Expense) Revenue and Changes in Net Assets Component Units Governmental Business -type Activities Activities Total $ 9,886,731 $ 5,466,876 $ 262,719 $ 274,761 $ (3,882,375) - $ (3,882,375) 28,512,136 2,658,111 533,952 453,116 (24,855,957) 4,329,500 (24,855,957) 9,352,354 858,241 - 1,257,570 (7,235,443) - (7,235,443) 7,679,001 857,809 82,853 15,658,779 8,920,440 1,302,258 8,920,440 2,108,277 - - - 2,108,277) (1,388,875 108,27 7) 57,538,499 9,851,037 879,524 17,644,326 (29,163,512) 203,941,724 (2 ,153,612) 27,981,025 28,921,168 - 4,643,096 $ 308,683,615 5,583,239 5,583,239 2,227,315 2,324,118 - - 96,803 96,803 4, 507, 551 4,587,899 - - 80,338 80,338 34, 715, 901 35, 833,185 - 4,643, 095 5,760,380 5,760, 380 $ 92,254,400 $ 45,684,222 $ 879,524 $ 22,287,422 $ (29,163,612) $ 5,760,380 $ (23,403,232) Tax increment financing district #1 $ 152,893 $ - $ - $ - $ - $ - $ - Tax increment financing district #2 14,409,112 - 13,361,122 - Total component units $ 14,562,005 $ $ $ 13,361,122 $ $ $ General revenue: Taxes: Property Sales Mixed beverage Franchise Occupancy Unrestricted investment earnings Miscellaneous Transfers between governmental and business -type activities Total general revenue and transfers Change in net assets Net assets - beginning of year Net assets - end of year The notes to the financial statements are an integral part of this statement. $ (152,893) (1,047,990) $ (1,200,883) $ 19,339,750 $ - $ 19,339,750 $ 2,813,044 16,645,412 - 16,645,412 - 128,007 - 128,007 - 4,329,500 - 4,329,500 238,410 - 238,410 - 495,385 171,125 566,511 123,558 1,271,555 30,703 1,302,258 - 1,590,704 '1,590,704 44,038,724 (1,388,875 42,649,848 2,935,702 14,875,112 4,371,504 19,245,615 1,735,819 203,941,724 85,495,275 289,436,999 5,427,295 $ 218,815,836 $ 89,855,779 $ 308,683,615 $ 7,153,114 iu. CITY OF NORTH RICHLAND HILLS, TEXAS Balance Sheet Governmental Funds September 30, 2011 19 General Fund General Capital Pmjects General Debt Service Other Governmental Total Governmental Assets Deposits and investments $ 11,483,572 $ $ $ 9,659,654 $ 21,143,226 Receivables, net of allowance Accounts 923,385 98,936 1,022,321 Property taxes 141,086 - 141,986 Other taxes receivable 2,008,003 1,505,738 3,513,741 Interest receivable 5,337 59,309 437 3,487 68,570 Special assessments receivable - 86,687 - - 86,687 Intergovernmental receivables 6,845 2,764,978 658,256 3,430,079 Other receivables 46,392 61,305 527 108,224 Due from other funds 886,916 - - - 886,916 Prepaid items 21,734 750 8,850 31,334 Inventoies, at cast 168,169 - 20,708 188,877 Advances to other funds 736,8{)4 - - 736,804 Restricted: Deposits and investments: Construction funds 23,882,852 7,148,603 31,031,455 Transition funds - - 112,324 112,324 Debt service funds - 2,220,394 912,867 3,133,261 Total assets $ 16,428,243 $ 26,855,131 $ 2,221,581 $ 20,129,950 $ 65,634,905 Liabilities Accounts payable $ 1,235,188 $ 1,631,333 $ - $ 143,149 $ 3,009,670 Retainage payable - 606,061 67,841 673,902 Accrued liabilities 468,938 5,142 105,014 579,094 Due to other funds - - 739,156 739,156 Deposits and other liabilities 472,274 604,215 733 1,077,222 Deferred revenue 984,971 1,147,530 427,093 2,559,594 Total liabilities 3,161,371 3,994,281 - 1,482,986 8,638,638 Fund Balance Nonspendable 926,707 - 750 29,558 957,015 Restricted 653,526 16,429,218 2,220,831 12,347,561 31,651,136 Committed - - - 6,221,018 6,221,018 Assigned 1,848,329 6,431,632 48,827 8,328,788 Unassigned 9,838,310 - - - 9,838,310 Total fund balance 13,266,872 22,860,850 2,221,581 18,646,964 56,996,267 Total liabilities and fund balance $ 16,428,243 $ 26,855,131 $ 2,221,581 $ 20,129,950 $ 65,634,905 The notes to the financial statements are an integral part of this statement. 19 CITY OF NORTH RICHLAND HILLS, TEXAS Reconciliation of the Balance Sheet of Govermental Funds to the Statement of Net Assets GOVERNMENTAL FUNDS September 30, 2011 Total fund balances -- governmental funds $ 56,996,267 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities resources (excluding internal service capital assets) are not financial resources and, therefore, are not reported as net assets in governmental funds. 211,557,235 Certain receivables are not available to pay current - period expenditures and, therefore, are deferred in the funds. 2,608,113 Internal service funds are used by the City's management for building and vehicle support services, self insurance, and information services. The assets and liabilities of the internal service funds are included with governmental activities in the Statement of Net Assets but are not included at the fund level. 10,077,870 Long -term liabilities, including bonds payable, loans payable, accrued interest payable, bond issuance costs, compensated absences, other post employment benefits, and net pension obligation, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. (62,422,649) Total net assets -- governmental activities $ 218,816,836 The notes to the financial statements are an integral part of this statement. See note II A for additional information on reconciliation calculations. 20 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2011 REVENUES Taxes License and permits Charges for services Fines Civil citations Contributions Special assessments Investment income Intergovernmental Drainage fees Tennis center Forfeitures Mineral rights lease income Right of way usage fees Miscellaneous Total revenues EXPENDITURES General government Public safety Culture and recreation Public works Capital outlay: General government Public safety Culture and recreation Public works Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of debt Issue of refunding debt Premium on issuance of debt Proceeds from sale of assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - beginning of year Fund balance - end of the year 162,554 General Capital General Debt Other Total General Fund Projects Service Governmental Governmental $ 27,162,184 $ - $ 4,925,000 $ 8,593,895 $ 40,681,079 1,375,742 - - - 1,375,742 4,818,988 - - - 4,818,988 2,665,135 - - - 2,665,135 - - - 674,745 674,745 - - - 187,813 187,813 - 8,748 - - 8,748 105,518 145,118 18,069 114,748 383,453 496,313 6,802,004 82,852 1,689,503 9,070,672 - - - 849,061 849,061 - - - 362,375 362,375 - - - 183,295 183,295 - - - 76,618 76,618 - - - 46,201 46,201 236,577 - - 132,019 368,596 36,860457 6,955,870 5,025,921 12,910,273 61,752,521 9,826,397 - - 484,900 10,311,297 20,394,630 - - 5,540,062 25,934,692 4,060,690 - - 3,393,241 7,453,931 2,416,186 - - - 2,416,186 - 511,994 - - 511,994 - 141,245 - 594,528 735,773 - 57,645 - 545,287 602,932 - 13,255,489 - 369,253 13,624,742 - - 7,192,696 995,000 8,187,696 - - 2,071,095 123,349 2,194,444 36,697,903 13,966,373 9,263,791 12,045,620 71,973,687 162,554 (7,010,503) (4,237,870) - 2,745,000 - - - 2,130,000 - 127,706 123,313 6,994 799,485 - 1,559,002 1,316,555 1,394,610 (1,585,341) (100,000) - (19,345) 4,888,746 3,647,923 143,209 (2,121,757) (589,947) 13,123,663 24,982,607 2,811,528 $ 13,266,872 $ 22,860,850 $ 2,221,581 The notes to the financial statements are an integral part of this statement. 864,653 (10,221,166) 2,440,000 5,185,000 - 2,130,000 107,251 358,270 - 806,479 1,389,521 5,659,688 (2,619,235) (4,304,576) 1,317,537 9,834,861 2,182,190 (386,305) 16,464,774 57,382,572 $ 18,646,964 $ 56,996,267 21 CITY OF NORTH RICHLAND HILLS, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended September 30, 2011 Net change in fund balances - -total governmental funds $ (386,305) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 8,643,463 The net effect of various transactions involving capital assets (i.e. sales, trade -ins, and donations) is to increase net assets. 8,526,890 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (1,161,933) Certain long -term liabilities are accrued at the government -wide level but not at the fund level. The current year change in those liabilities is reported as expense in the statement of activities. Expenses recorded for accrual of interest and amortization expense are included in this category. (2,334,955) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long- term liabilities in the statement of net assets. This is the difference between repayments and proceeds received. 574,161 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet maintenance, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities (exclusive of capital assets and debt). 1,013,791 Change in net assets of governmental activities $ 14,875,112 The notes to the financial statements are an integral part of this statement. See note II B for additional information on reconciliation calculations. PA This page intentionally left blank. 23 CITY OF NORTH RICHLAND HILLS, TEXAS 24 Statement of Net Assets PROPRIETARY FUNDS September 30, 2011 Governmental Enterprise Funds Activities - utility Golf Aquatic Park Total Enterprise Internal Service ASSETS Current Cash and cash equivalents $ 4,723,400 $ 572,643 $ 4,292,880 $ 9,588,923 $ 1,718,192 Accounts receivable, net of allowance: Billed 2,623,468 - - 2,623,468 - Unblled 2,007,932 - - 2,007,932 - Other 139,461 14,959 51,316 205,736 20,666 Interest receivable 42,034 2,165 9,931 54,130 19,468 Intergovernmental receivable 389,493 - - 389,493 - Prepaid items 10,149 22,740 8,015 40,904 171,814 Due from other funds 34,208 - 34,208 - Inventories, at cost 317,985 47,898 15,714 381,597 88,951 Total current assets 10,288,130 660,405 4,377,856 15,326,391 2,019,091 Noncurrent Restricted assets Cash and cash equivalents Construction funds 3,923,212 33 481,928 4,405,173 122,899 Debt service reserve funds 474,675 378,868 853,543 4,596,918 Impact fees oanstruction funds 1,453,946 - 1,453,946 - Customer deposits 1,892,716 1,892,716 - Future construction 4,612,779 4,612,779 4,959,211 Rate stabilization 3,240,598 - 3,240,598 - Othorfunds - 83,602 - 83,602 258,316 Total deposits and investments 15,597,926 83,635 860,796 16,542,357 9,937,344 Bond issue costs, net of amortization 74,960 10,031 102,146 187,137 - Advances to other funds 169,863 - - 169,863 Capital assets, at cost Land 75,366 1,758,000 745,771 2,579,137 - Building arid improvements 1,136,327 802,762 1,818,815 3,757,904 875,062 Other improvements 5,289,658 18,993,507 24,283,165 Utility plant in service 96,295,308 - - 98,295,308 - Machinery and equipment 1,487,774 1,693,573 719,521 3,900,868 7,852,547 Construction in progress 994,173 - 39,130 1,033,303 - Accumulated depreciation (45,831,773) (5,028,960) (7,423,121) (58,283,854) (5,361,971) Net ca pital assets 56 ,157,175 4,515,033 14,893,623 75,565,831 3,365,638 Total noncurrent assets 71,999,924 4,608,699 15,856,565 92,465,188 13,302,982 Total assets 82,288,054 5,269,104 20,234,421 107,791,579 15,322,073 24 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Net Assets PROPRIETARY FUNDS September 34, 2011 Compensated absences 95,668 - 16,410 112,078 91,121 Intergovernmental payables 744,222 - - 744,222 - Achmnces from other funds - 906,667 - 906,667 - Other post employment benefits obligation 406,889 - 67,992 474,881 321,332 Net pension obligation 358,766 - 60,327 419,093 285,313 Total noncurrent liabilities 8,627,195 1,650,794 7,248,292 17,526,281 697,766 Total liabilities 10,960,088 2,082,634 8,117,414 21,160,136 2,008,866 NET ASSETS Invested in capital assets, net of relairad debt 54,445,302 3,759,565 7,605,944 65,810,811 3,368,190 Impact fees restricted for construction 2,600,187 - - 2,600,187 - Unrestricted (deficit) 14,282,477 [573,095] 4,511,063 18,220,445 9,945,017 Total net assets $ 71,327,966 $ 3,186,470 $ 12,117,007 $ 86,631,443 $ 13,313,207 Reconciliation to business -type activities: Some amounts reported for business -type activities in the Statement of Net Assets are different because certain internal balances are included with business -type activities. 3235,336 Net assets of business -type activities $ 89,866,779 The notes to the financial statements are an integral part of this statement. 25 Governmental Enterprise Funds A Activities - utility G Golf A Aquatic Park T Total Enterprise I Internal Service LIABILITIES Current Accounts payable 1 1,388,893 8 84,103 1 123,748 1 1,596,744 2 205,545 Accrued liabilities 6 68,240 4 42,206 1 11,844 1 122,290 9 925,355 Retainage payable 4 41,507 - - 4 40,067 8 81,574 - - Intergovernmental payables 7 774 - - - - 7 774 - - Other current liabilities 3 37,739 4 42,564 4 4,578 8 84,881 1 10,349 Compensated absences 2 286,968 - - 6 60,316 3 347,284 1 158,317 Deferred revenue - - 6 69,625 2 2,592 7 72,217 1 11,534 Due th otherfunds - - 1 181,968 - - 1 181,968 - - Accrued interest payable 2 26,236 3 3,822 4 41,937 7 71,995 Bonds payable 4 438,408 7 7,552 5 584,040 1 1,030,000 Developer deposits 4 44,128 - - - - 4 44,128 - - Total current liabilities 2 2,332,893 4 431,840 8 869,122 3 3,633,855 1 1,311,100 Noncurrent Customer deposits 1 1,892,716 - - - - 1 1,892,716 - - General obligation bonds payable 2 220,722 2 258,538 8 875,000 1 1,354,260 Certificatas of obligation bonds payable 4 4,908,212 4 485,589 6 6,228,563 1 11,622,364 - - The notes to the financial statements are an integral part of this statement. 25 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Expense, Revenues, and Changes in Net Assets PROPRIETARY FUNDS Year Ended September 30, 2011 Governmental Enterprise Funds Activities - utility Golf Aquatic Park Total Enterprise Internal Service OPERATING REVENUES Water and sewer service Water and sewer connections Service ch arges Inspection fees Assessment revenues Golf course fees and charges Aquatic park admissions Recreation equipment rental Food, beverage, and gifts Sponsorships Other intergovernmental Internal service revenues Insurance premiums Mainten ace services Corn puter services Telephone services Miscellaneous revenues Total operating revenues OPERATING EXPENSES Claims Contractual services Water purchases Wastewater treatment services Personnel services Golf course sales and service Repairs and maintenance Supplies Administration fees Depreciation Total operating expenses Operating income (loss) $ 27,639,394 $ - $ - $ 27,639,394 $ - 278,431 278,431 - 887,937 - - 887,937 4,958 - - 4,958 - 1,950 1,950 - 2,324,118 2,324,118 - 3,651,948 3,651;948 - 136,967 136,967 - 747,777 747,777 _ - - 3,000 3,000 - 106,959 - - 106,959 53,746 8,539,686 4,174,472 1,815,621 - - - 409,978 1,539 - 48,207 49,746 266,931 28,921,168 2,324,118 4,587,899 35,833,185 15,260,434 5,790, 969 1,491,576 - 846,315 2,337,891 1,864,924 8,842,147 - 8,842,147 - 3,747,701 - - 3,747,701 - 4,970,322 _ 1,769,838 6,740,160 3,608,255 - 1,886,184 - 1,886,184 - 3,788,645 - 202,606 3,991,251 1,424,334 268,840 - 638,564 907,404 1,196,811 1,719,707 - 173,217 1,892,924 - 2,931,932 300,587 710,379 3,942,898 757,408 27,760,870 2,186,771 4,340,919 34,288,560 14,642,701 1,160,298 137,347 246,980 1,544,625 617,733 26 CITY OF NORTH RICH LAN D HILLS, TEXAS Statement of Expense, Revenues, and Changes in Net Assets PROPRIETARY FUNDS Year Ended September 34, 2011 NONOPER;ATING REVENUES (EXPENSES) Investment income Interest and fiscal charges Contributions Insurance recovery proceeds Other income (expense) Gain (loss) on disposal of assets Total nonoperating revenues (expenses) Income (lass) before transfers TRANSFERS Transfers in Transfers out Total transfers - net Change in net assets Net assets - beginning of year Net assets - end of year 493,787 (1,777,009) - (64,896) (1,841,905) (6,994) Governmental - (64,896) Enterprise Funds 3,959,056 Activities - utility Golf Aquatic Park Total Enterprise Internal Service 132,426 4,696 34,009 171,125 63,994 (226,155) (40,544) (166,642) (427,341) - 4,643,096 - - 4,643,696 - - - - 13,529 (21) 3,288 - 3,267 78,964 26,421 7,616 27,431 3,979 4,575,761 (25,550) (132,633) 4,417,578 166,466 5,736,059 111,797 114,347 5,962,263 778,199 493,787 (1,777,009) - (64,896) (1,841,905) (6,994) (1,777,009) - (64,896) (1,841,805) 486,793 3,959,056 111,797 49,451 4,120,298 1,264,992 67,368,916 3,674,673 12,067,556 82,511,145 12,648,215 $ 71,327,966 $ 3,186,470 $ 12,117,007 $ 86,631,443 $ 13,313,207 Reconciliation of Change in Net Assets - Buslness type Activities Change in net assets of business -type activities Some amounts reported for business -type activities in the Statement of Activities are different because the net revenue of certain internal revenue service funds is reported with business -type activities Change in net assets of business -type activities The notes to the financial statements are an integral part of this statement. $ 4,120,298 251,206 4,371,504 27 CITY OF NORTH RICHLAND HILLS, TEXAS Combining Statement of Cash Flows PROPRIETARY FUNDS Year Ended September 30, 2011 Enterprise Funds Utility Golf Aquatic Park Cash flows from operating activities: Receipts from customers Receipts from interfund services provided Other operating revenue Payments to suppliers Payments to employees Payments for internal services Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Transfers from other funds Transfers to other funds Interfund loan receipts Net cash provided by (used for) noncapital and related financing activities Cash flows from capital and related financing activities: Insurance recovery proceeds Proceeds from capital debt Acquisition and construction of capital assets Princlpal paid on capital debt Interest paid on capital debt Proceeds from sale of capital assets Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest and dividends received Net cash provided by investing activities Net Increase (decrease) in cash and cash equivalents Cash and cash equivalent beginning of year Cash and cash equivalent end of year Governmental Activities - Totals Internal Service $ 27,810,985 $ 2,349,803 $ 4,563,849 $ 34 $ - - - - - 14,939,756 108,602 - 48,207 156,809 322,616 (19,094,195) (1,794,377) (1,634,406) (22,522,978) (10,726,733) (4,671,758) - (1,703,145) (6,374,903) (3,332,102) (1,719,707) - (173,217) (1,892,924) - 2,433,927 555,426 1,101,288 4,090,641 1,203,537 - - - - 493,787 (1,777,009) - (64,896) (1,841,905) (6,994) 31,430 - - 31,430 - (1,777,009) - (64,896) (1,841,905) 486,793 92,496 28 - 2,070,000 2,070,000 - (1,536,947) (20,792) (1,695;686) (3,253,425) (475,390) (376,238) (527,288) (288,849) (1,192,375) - (218,130) (42,106) (172,075) (432,311) - 20,421 7,011 - 27,432 3,979 (2,110,894) (583,175) (86,610) (2,780,679) (378,915) 162,856 4,884 39,354 207,094 83,837 162,856 4,884 39,354 207,094 83,837 (1,259,690) (22,865) 989,136 (293,419) 1,395,252 21,581,016 679,143 4,164,540 26,424,699 10,260,284 $ 20,321,326 $ 656,278 $ 5,153,676 $ 26,131,280 $ 11,655,536 28 CITY OF NORTH RICHLAND HILLS, TEXAS Combining Statement of Cash Flows PROPRIETARY FUNDS Year Ended September 30, 2011 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense Other expense (Increase) decrease in accounts receivable (Increase) decrease in intergovernmental receivables (Increase) decrease in inventories (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase (decrease) in customer deposits payable Increase (decrease) in compensating absences Increase (decrease) in other post employment benefits Increase (decrease) in intergovernmental payable Increase (decrease) in other liabilities Increase (decrease) in net pension obligation Increase (decrease) in deferred revenues Increase (decrease) in retainage payable Increase (decrease) in accrued liabilities Total adjustments Net cash provided by (used for) operating activities Noncash financing activities: Contribution of capital assets $ 1,160,298 $ 137,347 $ 246,980 $ 1,544,625 $ 617,733 2,931,932 300,587 710,379 3,942,898 757,407 - - - - (207) (1,109,908) 1,875 21,563 (1,086,470) 1,939 (59,364) - - (59,364) - 133,423 28,334 9,882 171,639 22,188 (5,605) (7,532) (8,015) (21,152) (171,815) (944,605) 50,895 9,678 (884,032) (145,040) 108,223 - - 108,223 - (4,352) - 17,256 12,904 24,925 188,551 - 30,772 219,323 163,220 59,468 - - 59,468 - (13) 15,015 (317) 14,685 - 114,365 - 18,665 133,030 88,008 - 23,810 2,592 26,402 - (73,090) - 40,067 (33,023) (65,396) 5,095 1,786 (58,515) (154,821) 1,273,629 418,079 854,308 2,546,016 585,804 $ 2,433,927 $ 555,426 $ 1,101,288 $ 4,090,641 $ 1,203,537 $ 4,643,096 $ - $ - $ 4,643,096 $ - The notes to the financial statements are an integral part of this statement. 29 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Net Assets FIDUCIARY FUNDS September 30, 2011 The notes to the financial statements are an integral part of this statement. 30 OPEB Trust ASSETS Investments, at fair value Mutual funds $ 595,415 Total assets 595,415 NET ASSETS Held in trust for other post employment benefits 595,415 Total net assets $ 595,415 The notes to the financial statements are an integral part of this statement. 30 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Revenues, Expenses, and Changes in Net Assets FIDUCIARY FUNDS For the Year Ended September 30, 2011 OPEB Trust ADDITIONS Contributions: Employer $ 744,182 Total additions 744,182 DEDUCTIONS Benefit payments 644,182 Investment expense 6,193 Investment loss 17,052 Total deductions 667,427 Change in net assets 76,755 Net assets - beginning 518,660 Net assets - ending $ 595,415 The notes to the financial statements are an integral part of this statement. 31 This page intentionally left blank. 32 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements September 30, 2011 Page Note I Summary of Significant Accounting Policies A. Reporting entity 35 B. Government -wide and fund financial statements 35 C. Measurement focus, basis of accounting, and financial statement B. presentation 36 D. Assets, liabilities, and net assets or fund balance 48 Deposits and investments 38 Receivables and payables 38 Inventories and prepaid items 38 Restricted assets 39 Capital assets 39 Compensated absences 40 Long -term obligations 40 Fund Balance 41 Note II Reconciliation of Government -Wide and Governmental Fund Financial Statements 43 A. Balance sheet reconciliation 43 B. Statement of revenues, expenditures, and changes in fund balance reconciliation 44 Note III Stewardship, Compliance, and Accountability 46 A. Budgetary information 46 B. Deficit fund equity 48 Note IV Detailed Notes on All Funds 48 A. Deposits and investments 48 Deposits 48 OPEB Trust Fund Investments 48 Investments 49 Interest rate risk 50 Custodial credit risk 50 Credit risk 51 B. Receivables 51 Deferred revenue 52 C. Capital assets 53 Construction commitments 55 D. Interfund receivables, payables, and transfers 55 Governmental 57 Proprietary 57 E. Long -term debt 57 General obligation bonds 57 Certificates of obligation 58 Component units 59 Sales Tax Revenue bonds 59 Loans payable 60 Refunding of debt 60 Changes in long -term liabilities 61 Defeased debt outstanding 61 33 Note V Other Information A. Risk management B. Contingent liabilities C. Conduit debt obligations D. Post - employment benefits Deferred Compensation Plan Retiree Healthcare Plan E. Employee retirement systems and pension plans Plan description Contribution F. Operating leases G. Condensed financial information for component units H. Subsequent events I. Implementation of GASB Statements 61 61 62 62 63 63 63 66 66 66 67 68 68 68 34 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 ��1►► 1►► 11: i't i] �' ��C�]'► �Il� [�71►i1r[�TK�1�LiI�i�CH��lilCyl The City of North Richland Hills, Texas (the "City ") Home Rule Charter was adopted by the voters at an election held on November 3, 1964. The City operates under a Council- Manager form of government. The City provides a full range of services including police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure; parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; and the operations of a water and wastewater system, a golf course, and a public water park. A private contractor, through a franchise agreement, provides solid waste collection and disposal services for the City. The accounting policies of the City conform to accounting principles generally accepted in the United States of America ( "GAAP ") as applicable to governmental units. The Governmental Accounting Standards Board ( "GASB ") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. A. Reporting Entity As required by GAAP, these basic financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. The blended component units, although legally separate entities, are, in substance, part of the primary government's operations. As such, data from these units is combined with data of the primary government. Discretely presented component units are entities that are legally separate from the City, but for which the City is financially accountable or whose relationships with the City are such that exclusion would be misleading or incomplete. Discretely presented component units of the City are presented in a separate column in the basic financial statements to emphasize they are legally separate from the primary government. The component units have September 3& year -ends. Blended Component Units - The North Richland Hills Parks and Recreation Facilities Development Corporation ( "PRD ") is used to account for the accumulation of resources to build and improve City parks and recreational facilities and fund economic development activities. The North Richland Hills Crime Control and Prevention District ( "CCD ") is used to account for the accumulation and use of half - cent sales tax proceeds dedicated for crime reduction programs. The PRD and CCD are reported as special revenue funds of the primary government. The Boards of Directors of both component units are substantially the same as the City Council. Discretely Presented Component Units — Tax Increment Financing District No. 1 (" TIF #1 ") was created to fund drainage improvements that would alleviate flooding problems, reduce property damage associated with the flooding, and stimulate development for the benefit of citizens within TIF #1. In 2008, TIF #1 was expanded to provide funding for intersection improvements and the burial of utility lines. These improvements will enhance economic revitalization in this area. Tax Increment Financing District No. 2 ( "TIF #2 ") was created to provide funding for public improvements that would benefit the participants in and citizens of TIF #2 as well as others in the Metroplex area. Planned public improvements totaling $65.2 million include construction of a conference center, a recreation center, a library, and infrastructure improvements. These TIFs meet the criteria for being classified as discrete component units as the City appoints a voting majority of the organizations' governing bodies and is able to impose its will on the organizations, and because the organizations are fiscally dependent on the primary government. B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the non - fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been eliminated from these statements. However, interfund services provided and used are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a 35 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 significant extent on user fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and grants and contributions that are designated to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the financial resources measurement focus and the modified accrual ,basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources traditionally associated with governments which are not required to be accounted for in another fund. Major functions financed by the General Fund include general government, public safety, culture and recreation, and public works. Financing is provided from taxes (primarily property, sales, and franchise), licenses and permits, fines, and investment income. The General Capital Projects Fund is used to account for financial resources used for the acquisition and construction of major street, drainage, and municipal facilities capital assets. The General Debt Service Fund accounts for the accumulation of resources for the payment of principal, interest, and related charges on long -term general obligation debt of governmental funds. Financing is provided primarily by a specific annual property tax levy. 36 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 The City reports the following major proprietary funds: The Utility Fund accounts for the distribution of water, transportation of wastewater, and solid waste removal services provided to the residents of the City. All activities necessary to provide such services are accounted for in the fund, including, but not limited to, administration, operations, maintenance, financing and debt service, and billing and collections. The Golf Course Fund accounts for the operations of Iron Horse Golf Course, the City's public golf course. All activities necessary to operate the course are accounted for in the fund, including, but not limited to, administration, operations, course maintenance, and financing and debt service. The Aquatic Park Fund accounts for the operation of NRH the City's public water park. All activities necessary to operate the park are accounted for in the fund, including, but not limited to, administration, park operations, park maintenance, and financing and debt service. There are included special revenue funds reported for specific revenue sources that have expenditures restricted by outside sources or committed by the City Council. Internal Service Funds account for building maintenance services, fleet management, computer and telephone service, as well as insurance coverage provided to other departments of the City, on a cost reimbursement basis. The City also reports for one fiduciary fund. The OPEB Trust Fund accounts for the activities of the long term funding of the City's other post employment benefits provided. These funds are contributed by the City on an annual basis to help offset future costs and outflows for post employment benefits payments. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for the business - type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private- sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. However, interfund services provided and used are not eliminated in the consolidation process. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting the definition are reported as non- operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then undesignated resources as they are needed. 37 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 D. Assets, Liabilities, and Net Assets or Fund Balance Deposits and investments Deposits consist of cash and cash equivalents. Substantially all operating deposits and investments are maintained in pooled deposits and investment accounts. Interest income relating to pooled deposits and investments is allocated monthly to the participating individual funds based on each fund's pro -rata share of total pooled deposits and investments. Investments consist of (1) investments in public fund investment pools, (2) short-term investments that mature in 12 months or less from the time of purchase and (3) investments that mature in greater than 12 months from the time of purchase. Other than investment pools, most of the City's investments are long -term (i.e., at the time of purchase, the maturity equals or exceeds one year) and, accordingly, the investments are carried at fair value in accordance with GASB Statement No. 31, `Accounting and Financial Reporting for Certain Investments and for External Investment Pools." Legal provisions generally permit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions, and state and local government securities. During the year ended September 30, 2011, the City did not own any types of securities other than those permitted by statute. For the purposes of presenting the statement of cash flows for Proprietary Funds, cash and cash equivalents are defined as cash and the funds' investment in the City's pooled accounts which provide cash - equivalent liquidity (Note IV). Receivables and pavables Activities between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectibles. The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of February 1. Taxes are due upon receipt of the tax bill. Property taxes are limited by the Texas Constitution to $2.50 per $100 of assessed valuation and by City Charter to $1.50 per $100 assessed valuation. The combined tax rate to finance general governmental service and debt service for the year ended September 30, 2011 was $.57 per $100 of assessed valuation. Inventories and prepaid items All inventories are valued at cost using the first-in/first-out ( "FIFO ") method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories are offset by a fund balance reserve account in applicable governmental funds to indicate the inventory values are not available for appropriation and are not expendable available financial resources. 38 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Restricted assets Certain resources set aside for the repayment of outstanding City debt are classified as restricted assets on the balance sheet because their use is limited. The "debt service reserve funds " are used to segregate resources accumulated for outstanding debt. The "construction funds" account includes, but is not limited to, unspent bond proceeds that are limited as to use for financing the acquisition or construction of capital assets. In the Utility Fund, impact fees are a restriction imposed by the City's governing body for the purpose of collection of funds from developers for specific utility infrastructure improvement projects. State of Texas Statues grants this authority to the City Council which upon their approval is valid for a five year period. Every five years, the impact fee plan expires and a new program must be developed and submitted to Council for approval. Also designated in the Utility Fund are customer deposits. This restriction is contractually supported. The City is not allowed to use the funds unless it is to refund back to the customer for good standing account history or that they default upon the terms of the agreement. Assets have also been restricted by management for the following: The Crime Control and Prevention District (Special Revenue) Fund contains assets restricted for transition. The "transition" term is used to identify funds that management and City Council has designated to offset future unforeseen circumstances (i.e. dissolution of fund due to citizens vote to end operations of the district). If indeed the half -cent sales tax funding CCD activities is discontinued, the restricted assets will be used to fund those activities until an alternate funding source can be identified (i.e., during the transition period). The Information Services (Internal Service) Fund contains assets used for future system improvements. The intended purpose is to fund major computer system software and hardware system replacements and upgrades. The Facilities and Construction Services and Fleet Services (Internal Service) Funds contain assets used for building and equipment maintenance and replacement. The building reserve is used to accumulate funds for the implementation of the multi -year plan. Equipment reserve is used to accumulate funds for the replacement of vehicles and heavy equipment. The Self- Insurance (Internal Service) Fund contains assets used for future insurance claims. Funds will be accumulated until needed to cover these costs of excessive claims or until management has determined sufficient funds have been accumulated to cover future claims. Future claims of the Self- Insurance Internal Service Fund are funds set and obligated for future medical, dental, prescription, or other risk payables that could arise in future fiscal periods. This fund has a very proactive approach to plan for future claims and ensure that funding is available to pay when and if the need occurs. Capital assets Capital assets, including property, plant, equipment, and infrastructure assets (e.g., roads, bridges, drainage facilities, parks and related improvements, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements and in the proprietary fund level financial statements. Capital assets are defined by the City as assets with an initial, individual cost of at least $5,000 and an estimated useful life in excess of one year. Assets purchased or constructed are recorded at historical cost when available or estimated historical cost if 39 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 actual cost is unavailable. Donated capital assets are recorded at estimated fair value at the date of donation.. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets of the primary government are capitalized at the following thresholds and are depreciated using the straight -line method over the following estimated useful lives: Asset Category Land Buildings and improvements Other improvements Water, sewer system and other infrastructure Start-up costs, furniture and fixtures, and certain machinery and equipment Firetnucks and ambulances Other machinery and equipment including vehicles Capitalization Useful Life Threshold $ 100,000 30 years 100,000 30 years 100,000 33 years 100,000 10 years 5,000 20 years 25,000 3-6 years 5,000 - 25,000 `Range is due to different machinery and equipment having different levels of capitalization thresholds within fiscal policy Compensated absences City employees are granted vacation leave in varying amounts depending on length of service. Sick leave is also granted to employees after six months of service. In the event of termination after one or more years of service, an employee is paid for all accumulated unused vacation. No reimbursement is made for unused accumulated sick leave upon termination of employment, except upon retirement. Upon retirement, an employee may convert up to six weeks of accrued sick leave to vacation. Sick pay is recorded when taken. All vacation pay is accrued as vested and included in accrued liabilities in the government -wide and proprietary fund financial statements. Accrued vacation pay, including converted sick leave, that is expected to be liquidated within one year, is reported as a short-term liability. The remainder of the liability is reflected as long -term. Compensated absences are reported in governmental funds only if they have matured. Lana -term obligations In the government -wide financial statements and proprietary funds financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund statement of net assets. Bond premiums and discounts, issuance costs, and losses on bond refundings are deferred and amortized over the life of the related debt using the straight -line method which approximates the interest method. Bonds payable are reported net of the applicable unamortized loss on refunding. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 40 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Fund balance The Governmental Accounting Standards Board (GASB) has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). This statement defines the different types of fund balances that a governmental entity must use for financial reporting purposes. GASB 54 requires the fund balance amounts to properly reported within one of the fund balance categories list below. 1. Nonspendable, such as fund balances associated with inventories, prepaids, long -term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned), 2. Restricted fund balance category includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation, 3. Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City's Council (the city's highest level of authority), 4. Assigned fund balance classification are intended to be identified and authorized for specific purposes by the City's authorized representative by the Council (City Manager) and for other purposes that cannot be classified as restricted or committed, 5. Unassigned fund balance is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. Committed Fund Balance Policy The City's Committed Fund Balance is fund balance reporting required by the City Council because specific resolutions or ordinances were adopted restricting the utilization of special revenue sources. Fund balance reporting as a result of resolutions and ordinances passed by City Council: • General Donations or contributions to the City that do not have specific goals designated by the donor are committed by council resolution to keep the original general intent for which they were received. • Drainage Utility Fees are to be utilized for the infrastructure or debt service for such infrastructure, • Gas Development funds are to be used for specific projects for various reasons such as deemed necessary by city management. Projects which city management has committed for utilization of these funds are Davis Boulevard Property acquisition ($23 million) BIG Program ($100 thousand), ad Loop 8201 Redevelopment ($2.1 million) Assigned Fund Balance Policy The City's Assigned Fund Balance is fund balance reporting occurring by the City Council, under the direction of the City Manager, (as authorized by the City Council). • Savings incentive program is funds to encourage departments to identify and implement cost savings measures whereby savings would be accumulated for authorized use at a later date, • Retirement stabilization are funds for anticipated future increases in TMRS funding requirements, • Rail Station Project is intended to support future infrastructure for alternative transportation methods for citizens, • Utility Billing Assistance is from a TXU Settlement to be used to help water and sewer customers who are able to prove need of assistance in paying their utility bill, • The assignments for general government, public safety, culture and recreation, and public works are encumbrances outstanding at year end. Order of Fund Balance Spending Policy The City's policy is to apply an expenditure to amounts available in multiple fund balance classifications, the order in which resources will be expended is as follows: restricted fund balance, followed by committed fund balance, assigned fund balance, and lastly, unassigned fund balance. 41 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Minimum Fund Balance At the end of each fiscal year, the General Fund should maintain a minimum unassigned fund balance that is no less than 15% of the subsequent year's General Fund Appropriated Expenditure budget. This target amount has been established in order to provide a reasonable level of assurance that the City's day -to -day operations will be able to continue even if circumstances occur where revenues are insufficient to cover expenditures. Fund Balances for governmental activities as of September 30, 2011 are: Cerierei Capital General Debt Other Total General Fur KJ Projects Service C UMTrff tai Cavxnme tai Fund Balance Nornspe dable: Imentones $ 168,169 $ - $ - $ 2(],708 $ 188,877 Prepaids 21,734 - 750 8,850 31,334 Ad ences 736,804 - - - 736,804 Total nonsperdabte 926,707 - 750 29,558 957,015 Pestricted Ninicipal court tecFnclogy & security 653,526 - - - 653,526 Parks and recreation development - - - 2,647,024 2,647,024 Grime contrd distract - - - 769,612 769,602 Debt service - - 2,220,831 913,267 3,134,096 Grants - - - (407, 382) (407, 384 Ceneal gmernme7t - - - 4,677,985 4,677,985 Public safety - - - 778,997 778,997 Capital projects: Ceneed gmarrrent - 850,820 - - 850,820 Pu61ic safety - 9,525 - - 9,525 OAture and recreation - - - 2,968,068 2,968,068 Public vGorks - 15,568,873 - - 15,568,873 Total restricted 653,526 16,429,218 2,220,831 12,347,561 31,651,136 Ccnrritted: Donations - - - 824,978 824,978 General gmerrrrnert - - - 4,054,242 4,054,242 Culture and recreation - - - 1,341,796 1,341,798 Total corr>rrrtted - - - 6,221,018 6,221,018 Assigned Sarirgs incertKe program 250,360 - - - 250,360 Retirement stabilization 250,000 - - - 250,000 Uility billing assistance 78,658 - - - 78,688 Flail station prgect 800,000 - - - 800,000 Gerreal gmerrrne t 80,671 - - - 80,671 Public safety 219,617 - - - 219,617 Culture and recreation 23,731 - - 48,827 72,558 Public weeks 145,262 - - - 145,262 Capital prgects: Oral gmument - 1,693,139 - - 1,693,139 Public Safety - 19,043 - - 19,043 Public works - 4,719,450 - - 4,719,450 Total assigned 1,848,329 6,431,632 - 48,827 8,328,788 Unassigned 9,838,310 - - - 9,838,310 Total find balance $ 13,266,872 $ 22,860,850 $ 2 $ 18,646,964 $ 56,996,267 W CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 ll. RECONCILIATION OF GOVERNMENT -WIDE AND GOVERNMENTAL FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government - wide statement of net assets The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net assets — governmental activities as reported in the government -wide statement of net assets. One element of that reconciliation explains that "capital assets used in governmental activities (excluding internal service capital assets) are not financial resources and, therefore, are not reported as assets in governmental funds." The details of the $211,557,235 difference are as follows: Capital assets, net of depreciation (internal service funds excluded) $ 191,244,760 Construction in progress 20,312,475 Net adjustment to increase fund balance - total governmental funds to arrive at net assets - governmental activities $ 211,557,235 Another element of that reconciliation explains that "certain receivables are not available to pay current - period expenditures and, therefore, are deferred in the funds." The details of the $2,608,113 difference are as follows: Interest earnings $ 157,810 Deferred revenue 2,450,303 Net adjustment to increase fund balance total governmental funds to arrive at net assets - governmental activities $ 2,608,113 The third element of that reconciliation explains that "the assets and liabilities of the internal service funds are included with governmental activities in the Statement of Net Assets but are not included at the fund level." The details of the $10,077,870 difference are as follows: Net assets, internal service funds combined $ 13,313,207 Amount allocated to business -type activities (3,235,337) Net adjustment to increase fund balance - total governmental funds to arrive at net assets - governmental activities $ 10,077,870 This section of this page is intentionally left blank. Notes are continued on the next page. 43 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 The last element of that reconciliation explains that "long -term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds." The details of the $(62,422,649) difference are as follows: Bonds payable - short-tern $ (6,030,000) Bonds payable - long -term (46,135,489) Loans payable - short-term (399,547) Loans payable - long -term (842,124) Accrued interest payable (260,770) Bond issuance costs 610,122 Compensated absences (2,827,542) Other post employment benefits obligation (3,439,442) Net pension obligation (3,097,857) Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $ (62,422,649) Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government -wide statement of activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances — total governmental funds and changes in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $8,643,463 difference are as follows: Capital outlay - assets acquisitions $ 14,639,757 Depreciation expense (5,996,294) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 8,643,463 The next element of that reconciliation explains that "the net effects of various miscellaneous transactions involving capital assets (i.e. sales, trade -ins, and donations) is to decrease net assets." The details of this $8,526,890 difference are as follows: Gain (loss) on disposal of assets Contribution of Capital Assets from outside organziations Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (191,136) 8,718,026 $ 8,526,890 EV CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 The next element of that reconciliation explains that "revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds." The details of this $ (1,161,933) difference are as follows: Investment income not available for current financial resources $ 47,939 Deferred revenue that is earned in but not received (1,209,872) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (1,161,933) The next element of that reconciliation explains that "certain long -term liabilities are accrued at the government -wide level but not at the fund level." The details of this $ {2,334,955} difference are as follows: (Excludes Internal Service Funds) Changes in: $ (1,800,000) Accrued interest /interest expense $ 26,434 Other post employment benefits (1,500,575) Net pension obligation (910,162) Compensated absences 49,348 Net adjustment to decrease net changes in fund balances - 2,113,411 total governmental funds to arrive at changes in net assets 2,065,000 of governmental activities $ (2,334,955) Another element of that reconciliation states that "bond proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. This is the difference between repayments and proceeds received." The details of this $574,161 difference are as follows: (Excludes Internal Service Funds) Debt issued or incurred: General obligation bonds $ (1,800,000) Certificates of obligation bonds (3,385,000) Refunding of bonds (2,130,000) Principal repayments: General obligation bonds 2,505,000 General Obligation bonds - refunding 2,113,411 Certificates of obligation bonds 2,065,000 Sales tax revenue bonds 995,000 Loan repayments 385,412 Premium on bond sale (358,270) Bond costs on current year issuance 147,138 Deferred gain on bond refunding 57,422 Amortized bond issuance cost expense (20,952) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 574,161 rk, CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Another element of that reconciliation states that "the net revenue (expense) of internal service funds is reported with governmental activities." The details of the $1,013,791 difference are as follows: Change in net assets - internal service funds combined $ 1,264,992 Income (Expenses) reflected in business -type activities (251,201) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 1,013,791 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the following governmental funds: General, General Debt Service, Promotional, Donations, Special Investigation, Drainage Utility, Parks and Recreation Development, Crime Control District, Gas Development, Traffic Safety, and Sales Tax Revenue Bond Debt Service. The General Capital Projects Fund and Grant Fund adopt project - length budgets. All annual appropriations lapse at fiscal year end. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. During the year the City budget appropriations were increased by $3,224,8601. This section of this page is intentionally left blank. Notes are continued on the next page. 46 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 LegallyAdopted Fund Original Final General Fund $ 37,653,672 $ 38,858,705 General Debt $ 6,984,239 $ 9,316,343 Service Prom otional $ 208,982 $ 208,937 Donations $ 158,459 $ 161,454 Special $ 384,100 $ 396,410 Investigations Drainage Uti lity Fund $ 900,127 $ 913,129 Parks and Recreation 3 3,819,050 $ 3,493,032 Crime Control District Traffic Safety Tota I $ 4,176,961 $ 4,148,899 $ 748,039 $ 761,580 Revision Increase (Decrease) Explanation 1,205,033 Prior year encumbrances totalling approximately$220 thousand rolled into FY10/11 account fora part ofthis increase. The remainder of the variance is due to legal expenditures increased during the year as a result of ongoing litigation and contributed to this variance. $ 2,332,104 In 2011 a positive fiscal opportunity allowed for the refunding of older debt resulting in the needed increase in appropriations for principal and interest payments. $ (45) Mnor decrease for mid -year departmental expenditure adjustments. $ 2,995 A$1,000 yofthe increase resulted from a prior year encumbrance rolled into FY10f11 utilitzed for special events. The remainder of the increase was m id-yea radjustmentfor special events projects additions. $ 12,310 Forfeited fund expenditures increased as a result of prior year encumbrances rolled into FY10 /11 as well as additional costs to fund the Community Resource Coordinator. 13,002 K4 nor adjustmentto transfer out to debt service fund was needed to align to principal and interest requirements for 2011. $ (326,018) Major adjustments to expenditure projections were done to offs et any economic downturn in 2010/2011 Budget year. Projections in major revenue source (sales tax) was projected to remain flatand thus expendtures were adjusted downward to accommodate any negative fluctuations. $ (28,062) Salarysavings in the Uniform Patrol and Detention Services divisions contributed to the decrease in operating expenditures for this fund. $ 13,541 The entire variance is due to increases in capital expenditures for traffic enforcement. 3 55,033,629 $ 58,258,489 3 3,224,860 Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re- appropriated and honored during the subsequent year. 47 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 B. Deficit fund equity The ARRA Grant Funds had a deficit fund balance of $449,951 as of September 30, 2011. This fund records grant transactions for governmental fund activities. During the year the grant activity recorded were reimbursable grant expenditures which at year end were not to be reimbursed and received within 60 days of fiscal year end. This negative fund balances will correct upon receipt of receivable and recognizing of revenues from deferred status. IV. DETAILED NOTES ON ALL FUNDS A. Deposits and investments Deroosits - The City maintains a cash and investment pool that is available for use by all funds. Each fund's portion of the pool is displayed on the statement of net assets as "Deposits and Investments ". The investment policy of the City are governed by State statue and a Council adopted City Investment Policy. Major controls stipulated in the Investment Policy include: depository limitations require Federal Deposit Insurance Corporation ( "FDIC ") insurance or full 100 percent collateralization; depositories are limited to Texas banking institutions; all collateral for repurchase agreements and deposits in held by independent third party trustees; all settlement is delivery versus payment; all authorized investments are defined; and diversification guidelines are set as are maximum maturity and maximum weighted average maturity. State statues require all time and demand deposits to be fully insured or collateralized. At September 30, 2011 the carrying amount of the City's demand deposits and cash on hand was $6,827,985 and $9,602. TIF #1 and TIF #2 had only demand deposits totaling $242,496 and $2,174,873. Accounts with under $250,000 balance of either an interest bearing account or non - interest bearing account are covered by FDIC deposit insurance. As of September 30, 2011, the City's investment portfolio and discretely presented component units' investment portfolios (excluding bank deposits) are held by the City's custodian in the City's name underwritten agreements. The City's custodian is JP Morgan Chase. All security investments are reported at fair value priced by an independent source. The City generally holds all investments to maturity, for investment and income, not speculation. The City held the following cash, cash equivalents, and investments as of September 30, 2011: Cash on hand (pettycash, cashier tills) Demand Deposit Accounts Overnight Investment Pools Certificates of Deposit US Treasury Notes U.S. Agencies and Government Sponsored Entities Primary Government Governmental Business -tvDe Total Primary $ 5,902 $ 3,700 $ 9,602 $ 3,180,674 3,647,311 6,827,985 22,296,518 7,920,768 30,217,286 235,040 110,160 345,200 21,847,341 7,595,187 29,442,528 19,510,327 6,854,154 26,364,481 Component Units TIF #1 TIF #2 242,496 2,174,873 1,283,008 5,294,350 5,440 2,249,360 422,485 3,181,543 343,514 6,903,097 Total deposits and investments $67,075,802 $ 26,131,280 $93,207,082 $2,296,943 $19,803,223 OPEB Trust Fund Investments - The City has contracted with Public Agency Retirement Services (PARS) for trust administration and Union Bank serves as the trustee for all investments of the OPEB Trust Fund. The OPEB Plan does not have a formal policy for custodial credit risk. As of September 30, 2011 all investments are registered in the name of the OPEB Plan's custodian established through 48 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 a master trust custodial agreement. The OPEB Trust Fund investments are carried at fair value of $595,415 as of September 30, 2011. The City's funds are invested in a mutual fund that are invested in equity, money market and fixed income mutual funds. The investment strategy of the OPEB Trust Fund is to provide current income with capital appreciation as a secondary objective. The City has determined that currently all securities purchased for the OPEB Trust Fund have readily ascertainable market values and shall be easily marketable. The credit rating and weighted average maturity is not available for the pool. Investments - Weighted average maturity ("'WANT ") of the portfolio by investment type categories reflected in the following table is stated in days. Investment type acronyms displayed in the previous table are defined as follows: FHLB — Federal Home Loan Bank, FMDN — Freddie Mac U.S. Domestic Medium Term Notes, FFCB — Federal Farm Credit Bank, FAMN — Farmer Mac Domestic Medium Term Bonds, FNMA — Federal National Mortgage Discounted Notes, and USTR — U.S. Treasury Notes. The rating agency acronyms are defined as follows: S &P — Standard and Poor's Ratings Services, a division of the McGraw -Hill Companies, Inc.; Moody's — Moody's Investor Service, Inc.; and, Fitch — Fitch Ratings. Additional information about the rating agencies or the significance of the ratings provided may be obtained from each agency's web site. Legal provisions generally permit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions, and state and local government securities. Because the City is responsible for the investment portfolio of its component units, the City's investment practices and policies disclosed herein apply equally to its component units. During the year ended September 30, 2011, the City did not own any types of securities other than those permitted by statute. On August 5, 2011 Standard and Poors, one of three nationally recognized raters of US debt and securities, downgraded the rating of long -term US and government sponsored entities sovereign debt from AAA to AA+ for the first time since 1941 with a negative outlook. The two other national raters, Moody's and Fitch, continue to have the highest ratings, but also have the debt on their watch lists. The pools in which the City is currently participating seek to maintain a stable $1 net asset value per share or unit. Accordingly, the fair value of the City's position in these pools is substantially the same as the market value of the shares in each of the pools. TexPool falls under the purview of the Texas Comptroller of Public Accounts ( "Comptroller') who is responsible for oversight of TexPool operations. LOGIC and TexSTAR have established a goveming board at least partially comprised of pool participants. Duties of the governing boards include oversight responsibility. The Comptroller and the governing boards exercise oversight of the pools' activities via daily, weekly, and monthly reporting requirements. Additionally, per the requirements of the Public Funds Investment Act ( "PFIA" ), all portfolios will maintain an AAA or equivalent rating from at least one nationally recognized rating agency. The PFIA also requires an annual examination of the financial statements of the pools by an independent certified public accounting firm. This section of this page is intentionally left blank. Notes are continued on the next page. ►,fir CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 The table below states investments at fair value: Prim aryGovernment Taxincrement Taxlncrement Rating Governmental Business -type Financing Financing Investment Type WAM Rating Agency Activities Activtties Total District #1 District #2 Ovemight Investm ent Pools TexPool 44 AAAm S &P $17,106,558 $ 4,008,497 $ 21,115,055 $ 983,633 $ 1,412,972 LOGIC 46 AAAm S &P 4,516,492 3,628,673 8,145,165 277,013 2,484,458 TexSTAR 40 AAAm S &P 673,468 283,598 957,066 22,362 1,396,920 Total overnight $ 22,296,518 $ 7,920,768 $ 30,217,286 $ 1,283,008 $ 5,294,350 Certificates of Deposit: $ 235,040 $ 110,160 $ 345,200 $ 5,440 $ 2,249,360 Total certificates of deposit $ 235,040 $ 110,160 $ 345,200 $ 5,440 $ 2,249,360 U.S. Agencies and Government Sponsored Entities: FHLB 303 AAA S &P $ 6,529,012 $ 3,605,960 $10,134,972 $ 133,781 $ 1,096,557 FMDN 584 A,1 + S &P 4,413,301 1,150,348 5,563,649 112,755 1,660,597 FNMA 308 A,1 + S &P 7,971,994 1,818,500 9,790,494 83,183 4,020,775 FAMN 287 Aa1 Maodys 596,020 279,346 875,366 13,795 125,168 USTR 516 TSY S &P 21,847,341 7,595,187 29,442,528 422,485 3,181,543 Total U.S. Agencies & Government Sponsored Entities $41,357,668 $14,449,341 $ 55,807,009 $ 765,999 $10,084,640 Total Portfolio 282 $ 63,889,226 $ 22,480,269 $ 86,369,495 $ 2,054,447 $17,628,350 Interest Rafe Risk— Interest rate risk is the potential for a decline in market value due to rising interest rates. In accordance with its formally- adopted investment policy, the City manages its exposure to declines in fair market value by limiting the portfolio's weighted average maturity to a maximum of 730 days. The City also employs an investment maturity Iaddering structure to stagger investment maturities at various monthly rungs on the ladder. This Iaddering structure provides the City with the ability to reinvest the proceeds from the maturities in higher - yielding securities given the proceeds are not required to meet immediate cash flow needs. The City's current investments mature in 30 months or less, with exception of one Certificate of Deposit Account Registry Service CD at 34 months. Custodial Credit Risk — Custodial credit risk is the risk that a govemment will not be able to recover (a) deposits if the depository financial institution fails or (b) the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. To minimize such risk, the City requires collateralization of most deposits in excess of coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with a third -party safekeeping agent. Per the terms of its depository agreement, for bank deposits in excess of the coverage provided by the FDIC, the City requires the depository bank to pledge to the City securities (collateral) equal to the following percentages, as applicable, to the largest balances the City maintains in the Bank. 50 The percentages as shown reflect the requirement based on market value of the pledged securities. The City's depository bank also acts as its safekeeping agent per the terms of the depository contract. City policy dictates that all securities rendered for payment will be sent delivery vs. payment meaning that the funds required for purchase of a security will not be released until the safekeeping agent has received the security purchased in the City's name. No broker holds City funds. The City does not purchase securities from its depository bank or any subsidiary banks of the same bank holding company. Credit ,Risk — The Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. In order to minimize credit risk, the City limits investments to those rated as to investment quality of not less than "A" or its equivalent by a nationally recognized rating firm. Diversification of the portfolio is also employed to manage credit risk. The investment policy limits the percentage of the portfolio that may be invested in any specific type of security. Ratings for the City's investments and the percentage of the total portfolio of each investment type held at the end of year can be found on the first table in this section. B. Receivables Governmental and Business -type funds' receivables as of year -end for the City's major funds and non - major in the aggregate, net of the applicable allowances for uncollectible accounts, are as follows: Governmental Funds: CITY OF NORTH RICHLAND WILLS General Notes to Basic Financial Statements 5,044,781 September 30, 2011 Accounts $ U.S. Other Maturity of Collateral Treasuries Securities 1 year or less 101% 102% 1 year to 5 years 102% 105% Over 5 years 103% 110% The percentages as shown reflect the requirement based on market value of the pledged securities. The City's depository bank also acts as its safekeeping agent per the terms of the depository contract. City policy dictates that all securities rendered for payment will be sent delivery vs. payment meaning that the funds required for purchase of a security will not be released until the safekeeping agent has received the security purchased in the City's name. No broker holds City funds. The City does not purchase securities from its depository bank or any subsidiary banks of the same bank holding company. Credit ,Risk — The Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. In order to minimize credit risk, the City limits investments to those rated as to investment quality of not less than "A" or its equivalent by a nationally recognized rating firm. Diversification of the portfolio is also employed to manage credit risk. The investment policy limits the percentage of the portfolio that may be invested in any specific type of security. Ratings for the City's investments and the percentage of the total portfolio of each investment type held at the end of year can be found on the first table in this section. B. Receivables Governmental and Business -type funds' receivables as of year -end for the City's major funds and non - major in the aggregate, net of the applicable allowances for uncollectible accounts, are as follows: Governmental Funds: 51 Internal General Non -major 5,044,781 Total Accounts $ 2,056,200 $ 101,281 $ 2,157,481 Property taxes 580,056 - 580,056 Other taxes 2,008,003 1,505,738 3,513,741 Total 4,644,259 1,607,019 6,251,278 Allowance (1,571,785) (2,345) (1,574,130) Total (net of allowance) $ 3,072,474 $ 1,604,674 $ 4,677,148 Proprietary Funds: Aquatic Utility Golf Park Accounts $ 4,975,563 $ 17,902 $ 51,316 $ Total 4,975,563 17,902 51,316 Allowance (204,702) (2,943) - Total(netof allowance) $ 4,770,861 $ 14,959 $ 51,316 $ 51 Internal Total Service 5,044,781 $ 20,666 5,044,781 20,666 (207,645) - 4,837,136 $ 20,666 51 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Reconciliation of unearned revenues to the Government -wide Statement of Net Assets is as follows: Governmental activities for unearned revenue is: Governmental activities for unearned revenue is: Unearned Governmental funds $ 109,291 Internal service funds 11,534 Total unearned revenue $ 120,825 Business -type activities for unearned revenue is: Business -type activities for unearned revenue is: Unearned Deposits, Check and Gift Certificates $ 69,625 Store Credit 2,592 Total deferred/unearned revenue for business funds $ 72,217 This section of this page is intentionally left blank. Notes are continued on the next page. 52 Total Deferred Unavailable Unearned Revenue Delinquentpropertytaxes receivable (General Fund) $ 141,086 $ - $ 141,086 Ambulance (General Fund) 774,387 - 774,387 Grant (General Fund) 6,845 - 6,845 Recreation memberships/fees (General Fund) - 15,470 15,470 Escrow Deposits /customer deposits (General Gund) - 47,183 47,183 Deferred Revenue (Park and Recreation Fund) 8,181 7,264 15,445 Special assessments (General Capital Projects Fund) 143,477 - 143,477 Grant proceeds (Grant Fund) 409,148 2,500 411,648 Accounts (developer) receivable (Streets 1994 Election Fur 745,557 36,874 782,431 Accounts (developer)receivable (Streets 2003 Electi on Fur 221,622 - 221,622 Total deferred/unearned revenue for governmental funds $2,450,303 $109,291 $ 2,559,594 Reconciliation of unearned revenues to the Government -wide Statement of Net Assets is as follows: Governmental activities for unearned revenue is: Governmental activities for unearned revenue is: Unearned Governmental funds $ 109,291 Internal service funds 11,534 Total unearned revenue $ 120,825 Business -type activities for unearned revenue is: Business -type activities for unearned revenue is: Unearned Deposits, Check and Gift Certificates $ 69,625 Store Credit 2,592 Total deferred/unearned revenue for business funds $ 72,217 This section of this page is intentionally left blank. Notes are continued on the next page. 52 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 C. Capital assets Capital asset activity for the year ended September 30, 2011 was as follows: Component units: (Tax Increment Financing District #2) Beginning Ending Balance Increases Decreases Balance Capital assets, nondepreciable Construction in progress Total nondepreciable $ 1,519,435 $14,073,905 $ 11,463 $ 15,581,877 $ 1,519,435 $14,073,905 $ 11,463 $ 15,581,877 Primary Government Beginning Ending Governmental activities: Balance Increases Decreases Balance Capital assets, nondepreciable Land $ 75,549,765 $ 1,284,000 $ 145,468 $ 76,688,297 Works of art 252,295 45,914 - 298,209 Construction in progress 12,085,062 13,677,209 5,449,796 20,312,475 Total nondepreciable 87,887,122 15,007,124 5,595,264 97,298,982 Capital assets, depreciable: Buildings 39,311,658 12,033 - 39,323,691 Other improvements 148,313,585 12,552,665 176,763 160,689,487 Machinery and equipment 22,064,301 1,675,848 614,868 23,125,281 Total depreciable 209,689,544 14,240,546 791,631 223,138,459 Less accumulated depreciation for: Buildings (15,724,036) (1,370,496) - (17,094,532) Other improvements (69,127,828) (4,212,379) (176,763) (73,163,444) Machineryand equipment (14,690,262) (1,303,321) (736,990) (15,256,593) Total accumulated depreciation (99,542,126) (6,886,196) (913,753) (105,514,569) Total depreciable - net 110,147,418 7,354,351 (122,122) 117,623,890 Governmental activities - net $ 198,034,540 $ 22,361,474 $5,473,142 $ 214,922,873 This section of this page is intentionally left blank. Notes are continued on the next page. 53 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Primary Government Beginning Business -type activities: Balance Increases Capital assets, nondepreciable Land Construction in progress Total nondepreciable Capital assets, depreciable Ending Decreases Balance $ 2,526,639 $ 52,498 $ - $ 2,579,137 3,068,971 3,146,502 5,182,170 1,033,303 5,595,610 3,199,000 5,182,170 3,612,440 Buildings 3,757,904 - - 3,757,904 Utility Plant 90,289,635 8,113,819 108,146 98,295,308 Other improvements 22,587,522 1,695,643 - 24,283,165 Machineryand equipment 3,863,686 200,145 162,963 3,900,868 Total depreciable 120,498,747 10,009,607 271,109 130,237,245 Less accumulated depreciation for: Buildings (1,831,021) (127,014) - (1,958,035) Utility Plant (41,450,789) (2,780,343) (83,568) (44,147,564) Other improvements (8,859,073) (787,090) - (9,646,163) Machineryand equipment (2,442,606) (248,884) (159,398) (2,532,092) Total accumulated depreciation (54,583,489) (3,943,331) (242,966) (58,283,854) Total depreciable - net Business -type activities - net 65,915,258 6,066,276 28,143 71,953,390 $ 71,510,868 $ 9,265,276 $5,210,312 $ 75,565,831 The component unit, Tax Incremental Financing District #2, began a construction project for the new municipal recreation center. Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 349,663 Public safety 649,770 Culture and recreation 1,340,302 Public works 3,656,558 Internal services 889,901 Total depreciation expense - governmental activities $ 6,886,196 Business -type activities: Utility $ 2,931,932 Golf course 300,587 Aquatic park 710,812 Total depreciation expense - business -type activities $ 3,943,331 6Ma CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Construction commitments The City has active construction projects as of September 30, 2011. The projects include street construction, widening, and streetscaping; as well as construction of drainage facilities, parks and park improvements, and municipal facilities. At year -end the City's commitments with contractors were as follows: Expended to Project September 30, Authorization 2011 Committed Streets, drainage, public safety, park improvements, and utility improvements $ 94,972,400 $ 37,478,105 $63,494,295 D. Interfund receivables, payables, and transfers At September 30, 2011, interfund balances consisted of the following: Due to and due from other funds are the short -term portion of the advances to and advances from other funds. The Golf Course Fund is currently repaying two interfund loans to the General Fund and the Utility Fund. The original General Fund loan was $328,400 (which is an interest free loan) and is scheduled for repayment in 2014. The original Utility Fund loan was $536,000 with an interest rate of 8.50 %. The loan is currently being repaid based on water consumption. The current estimated pay -off is fiscal year 2016. The General Fund provided temporary cash to the Grant Fund and ARRA Grant Fund for a reimbursable grant activity totaling $739,156. Funds are expected to be reimbursed during the next fiscal period due to grantors reimbursing the City for the expenses covered. Due to/due from balances for governmental and proprietary funds are as follows: Governmental activities: Due to Due from Total General Fund Grant Fund $ 150,000 ARRA Grant Fund 589,156 Total $ 739,156 Business -type activities: Due to Due from Total General Fund Golf Fund $ 147,760 Utility Fund Golf Fund 34,208 Total $ 181,968 Total for all funds $ 921,124 55 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Advances to other funds activity are expected to be reimbursed during a longer period of one year. The General Fund and the Utility Fund have advanced funds to Golf Fund for various equipment and machinery purchases. 2011 advances to other funds ending balances were as follows: Governmental activities: Advances to Advances from Total General Fund Golf fund $ 736,804 Total $ 736,804 Business -type activities: Advances to Advances from Total Utility Fund Golf Fund $ 169,863 Total $ 169,863 Total for all funds $ 906,667 Transfers In /Out amounts for Governmental and Proprietary Funds are as follows: Governmental Transfer In to Transfer Out of General Fund Utility Fund Facilities and Contruction Fund Subtotal General Fund General Debt Service Gas Development Fund Drainage Utility Fund Parks and Rec Dev Fund Subtotal General Debt Service General Capital Projects General Fund Subtotal Gen Cap Projects Non -Major Governmental Parks and Recreation Dev. Corp. Fund Aquatic Park Economic Development Fund Parks and Rec Dev Corp Traffic Safety Fund General Capital Projects Sales Tax Revenue Bond Debt Service Parks and Rec Dev Corp Subtotal Non -major Govemmental Funds Grand Total Transferred to Govemmental Funds Amount $ 1,552,008 6,994 $ 1,559,002 $ 439,881 910,629 44,100 $ 1,394,610 $ 1,316,555 $ 1,316,555 $ 64,896 105,224 100,000 1,119,401 $ 1,389,521 $ 5,659,688 56 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Business -type Activities Transfer In to Transfer Out of Amount Intemal Service Funds Fleet Services Fund General Fund $ 18,787 Utility Fund 50,000 Information Services General Fund 250,000 Utility Fund 175,000 Subtotal Internal Service Funds $ 493,787 Grand Total Transferred to Business -type Activities $ 493,787 Grand Total Govemment Wide $ 6,153,475 Governmental In 2011, General Fund received $1,552,008 for payment from Utility Fund for payment in lieu of taxes and franchise fees. Each year funds transfer funds into the General Debt Service Fund to help pay for principal retirement and interest expenditures associated with their funds. These transfers total $1,394,610 and were transferred in from Gas Development Fund, Drainage Utility Fund, and Parks and Recreation Development Fund. Another set of transfers went toward the construction or acquisition of capital for general government $1,316,555. Non -major Governmental funds had transfers totaling $1,389,521. The significant transfer includes the annual support from Parks and Recreation Development Corporation Fund to Parks Sales Tax Revenue Bond Debt Service for annual debt service requirements for the revenue bonds. This transfer totaled $1,119,401. Proprietary The General Fund transferred to the Internal Services funds a total of $268,787 in 2011. This amount includes transfers to Fleet Service and Information Systems Funds. Within this total transfer amounts, an amount of $250,000 signifies a transfer in for additional support for future capital improvements. Additional funds were transferred from the Utility Fund to Fleet Services and Information Systems Funds. These transfers were $50,000 and $175,000 respectively. Both transfers were for additional future project reserves for continuing future improvements to the infrastructure of the services provided by these internal service funds. Long -term debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets such as streets, drainage structures, and municipal facilities, as well as for the purpose of refunding a portion of its outstanding debt. General obligation bonds have been issued for both governmental and business -type activities. During the year, $3,930,000 in new general obligation bonds was issued. The City issued $724,000 bonds for street improvements in various locations throughout the city and $1,076,000 in drainage improvements in the Meadowview Estates area and Holiday West area. Included also was issuance of $2.13 million for refunding of bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20 -year serial bonds with equal amounts of principal maturing each year. 57 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 General obligation bonds currently outstanding are as follows: Interest Purpose Rates Governmental activities 2.00-5.50% Governmental activities - refundings 4.00-5.00% Business -type activities 3.50-4.20% Component units 3.50-4.00% Original Amount $ 32,630,000 $ 8,370,000 1,405, 305 300,000 $ 42, 705, 305 Annual debt service requirements to maturity for general obligations bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2012 $3,910,000 $1,549,153 2013 3,715,000 1,369,977 2014 3,900,000 1,230,197 2015 3,875,000 1,084,872 2016 3,495, 000 947,618 2017 -2021 12,480,000 3,079,276 2022 -2026 6,675,000 1,216,613 2027 -2031 2,950,000 214,360 $41,000,000 $10,692,066 Certificates of Obligation Business -type Activities Principal Interest $210,000 $49,688 215,000 42,244 210,000 34,711 205,000 26,845 205,000 18,623 360,305 13,450 Component. Units Principal Interest $45,000 $10,538 45,000 8,962 45,000 7,388 45,000 5,700 40,000 4,000 80,000 3,200 $1,405,305 $185,561 $300,000 $39,788 The City also issues certificates of obligation ( "CO's ") to finance the acquisition and construction of capital assets including certain capital improvement projects, municipal facilities, and machinery and equipment. In fiscal year 2011, new CO's were issued in the amounts of $3,385,000 for governmental activities and $2,070,000 for the Aquatic Fund. Certificate of obligation bonds currently outstanding are as follows: Interest Original Purpose Rates Amount Governmental activities 2.00 - 4.75% $ 9,575,000 Business -type activities 2.70-5.00% 12,610,000 Component units 2.70-5.00% 27,845,000 $ 50, 030, 000 58 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Annual debt service requirements to maturity for certificates of obligation of the primary government and component units are as follows: Year Ending September 30, 2012 2013 2014 2015 2016 2017 -2021 2022 -2026 2027 -2031 Governmental Activities Principal Interest $1,090,000 $ 361,764 920,000 289,936 585,000 264,477 580,000 246,990 580,000 229,564 2,465,000 893,491 1,965,000 486,827 1,390,000 125,941 $ 9,575,000 $2,898,990 Business -type Activities Principal Interest $ 820,000 $ 494,893 815,000 444,877 820,000 416,817 820,000 388,444 810,000 359,298 3,830,000 1,349,134 3,095,000 650,929 1,600,000 120,181 $ 12,610,000 $ 4,224,574 Component Units Principal Interest $ 1,835,000 $ 979,824 1,835,000 910,251 1,835,000 847,357 1,835,000 787,492 1,840,000 728,151 9,015,000 2,724,900 8,440,000 1,085,661 1,210,000 24,200 $ 27,845,000 $ 8,087,836 Component Unit Certificates of Obiiaation - In fiscal year 1998, the City created the Richland Plaza Tax Increment Financing District (TIF #1). The original issue for the amount allocated to TIF #1 was $850,000. A portion of the outstanding 1998 certificates were refunded in fiscal year 2006 with general obligation bonds. In 2010, $1,0100,000 in Certificates of Obligation were sold for improvement projects planned for the TIF #1 expansion of 2008. This project will be for utility line burial and intersection improvements. During the 1999 fiscal year, the City, along with Tarrant County, Tarrant County College and Tarrant County Hospital District created the Town Center Tax Increment Reinvestment Zone (TIF #2). In 2003, $1,450,000 of Certificates of Obligation, Series 2003 were issued for costs associated with land acquisition and design of the new library to be located within the boundaries of TIF #2. In fiscal year 2006, the City issued $8,750,000 of Certificates of Obligation for construction of the library. All TIF District funds are deposited in TexPool until needed for payments. Sales tax revenue bonds Activity of the Park and Recreation Facilities Development Corporation (Corporation) is reflected in the financial statements of the City as a blended component unit. The Corporation issues sales tax revenue bonds to finance new parks and recreation facilities as well as renovations and updates to existing parks and recreation facilities. Sales tax revenues are accumulated for the repayment of these revenue bonds. The debt and associated resources for repayment are included in the City's governmental activities. Sales tax revenue bonds currently outstanding are as follows: Purpose Governmental activities Interest Original Rates Amount 2.00 - 4.75% $ 1,645,000 $ 1,645,000 59 CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2011 Revenue bond debt service requirements to maturity are as follows: Sales Tax Revenue Bonds Year Ending Governmental Activities September 30 Princival Interest 2012 $ 1030.000 $ 78A79 2013 405,000 30 789 2014 105,000 11,025 2015 105.000 5.512 $ 1645.000 125.805 Loans oavable Governmental activities acquired a loan to pay for certain land acquisition for the new recreation center erection in 2012. The loan will be repaid with proceeds from the City's gas development and royalties sources. The original loan principal totaled $1,573,525 with an annual interest rate of 3.75 %. The loan payable debt service requirements to maturity are as follows: Year Ending September 30, 2012 2013 2014 2015 Refunding of Debt Governmental Activities Principal Interest 399,547 $ 40,334 414,444 24,761 402,379 8,700 25,301 147 1,241,671 $ 73,942 On ,June 14, 2011, the City issued $2.130 million in General Obligation Bonds with an average interest rate of 3.24 percent to partial refund $2.150 million of outstanding 2001 and 2002 General Obligation and Certificate of Obligations with an average an average interest rate of 4.97 percent. The net proceeds of $2,261,280 million (after payment of $75,989 In underwriting fees, insurance, and other issuance costs) plus an additional $60,678 of debt service fund monies were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the government -wide statement of net assets. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $57,422. This difference, reported in the accompanying financial statements as a deduction from bonds payable, is being charged to operations through the year 2022. The City completed the refunding to reduce its total debt service payments over the next 10 years to obtain an economic gain (difference between the present values of the old and new debt service payments) of $150,412. 60 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Changes in Iona -term liabilities Long -term liability activity for the year ended September 30, 2011, is reflected in the following tables. Governmental Activities: Bonds Payable General Obligation Bonds Certificates of Obligation Sales Tax Revenue Bonds Loans Payable Deferred Loss on Refunding Premium on Bond Issues Discount on Bond Issues Compensated Absences Total Governmental Activities Business -Type Activities: Bonds Payable General Obligation Bonds Certificates of Obligation Deferred Loss on Refunding Premium on Bond Issues Discount on Bond Issues Compensated Absences Total Business -Type Activities Component Unit Activities: Bonds Payable General Obligation Bonds Certificates of Obligation Deferred Loss on Refunding Premium on Bond Issues Discount on Bond Issues Total Component Unit Activities Defeased Debt Outstanding Beginning Ending Due Within Balance Additions Reductions Balance one Year $ 41,725,000 $ 3,930,000 $ 4,655,000 $ 41,000,000 $ 3,910,000 8,255,000 3,385,000 2,065,000 9,575,000 1,090,000 2,640,000 - 995,000 1,645,000 1,030,000 1,625,084 - 383,413 1,241,671 399,547 (476,690) (57,422) (73,644) (460,468) - 100,856 358,269 39,293 419,832 - (14,118) - (243) (13,875) - 3,101,403 356,100 380,523 3,076,980 2,157,718 $ 56;956,535 $ 7,9711,947 $ 8,444,342 $ 56,484,140 $ 8,587,265 $ 1,890,000 $ - $ 484,645 $ 1,405,355 $ 210,000 11,285,000 2,070,000 745,000 12,610,000 820,000 (39,694) - - (39,694) - 16,966 13,998 - 30,964 - (2,271) - (2,271) - - 446,458 54,644 41,741 459,361 347,284 $ 13,596,459 $ 2,138,642 $ 1,269,115 $ 14,465,986 $ 1,377,284 $ 305,000 $ - $ 5,000 $ 300,000 $ 45,000 29,680,000 1,835,000 27,845,000 1,835,000 (5,394) - (719) (4,675) - 93,934 - 5,058 88,876 - (471) - - (471 ) - $ 30,073,069 $ - $ 1,844,339 $ 28,228,730 $ 1,880 In prior years, the City defeased certain general obligation and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. $3.57 million of bonds outstanding are considered defeased. V. OTHER INFORMATION A. Risk management The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. Premiums are paid into the self- insurance internal service fund by all other 61 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 participating funds and are available to pay claims, claim reserves, and administrative costs of the program. As of September 30, 2011, the interfund premiums did not exceed expenses. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for health and dental as well as workers' compensation claims that have been incurred but not reported ( "IBNR "). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay- outs), and other economic and social factors. An excess coverage medical insurance policy covers individual claims in excess of $175,000 and/or $6,829,329 in the aggregate for a 12- month period beginning on January 1, 2011. Changes in the balances of claims liabilities during the past two years are as follows: 2011 2010 Unpaid claims, beginning of year $ 1,041,149 $ 840,238 Incurred claims (including IBNR) 6,283,789 8,542,527 Claim expense (6,458,396) (8,341,616) Unpaid claims, end of year $ 866,542 $ 1,041,149 n. Contingent liabilities The City has participated in a number of State and Federal assistance grant programs. Amounts received or receivable under these programs are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. The City is a defendant in certain lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. C Conduit debt obligations The City has issued Health Facilities Development Bonds to provide financial assistance to private - sector entities to promote and develop new, expanded or improved health facilities to assist the maintenance of public health and welfare. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Ownership of the acquired facilities is with the private- sector entity served by the bond issuance. The City is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2011, there was one issue of Health Facilities Development Bonds outstanding. The aggregate principal amount payable for the issue dated 1994 could not be determined; however, the original issue amount totaled $5,700,000. Additionally, from time to time, the City has issued Industrial Development Bonds to provide financial assistance to private - sector entities for the acquisition and construction of industrial and commercial facilities to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Ownership of the acquired facilities is with the private - sector entity served by the bond issuance. The City is not obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements. 62 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 As of September 30, 2011, there were two issues of Industrial Development Bonds outstanding. The aggregate principal amount payable for the issues dated 1983 and 1985 could not be determined; however, the original issue amounts totaled $7,125,000. D. Postemployment Benefits Deferred Compensation Plan The City offers its employees a deferred compensation plan (the "Plan ") created in accordance with Internal Revenue Code Section 457. The Plan is administered by Public Employees Benefit Services Corporation. In 1998, the City implemented the requirements of GASB No. 32, Accounting and Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. In accordance with this statement and tax law, the City has amended its trust agreements which establish that all assets and income of the trust are for the exclusive benefit of eligible employees and their beneficiaries. Due to the implementation of these changes, the City does not have any fiduciary responsibility or administrative duties relating to the deferred compensation plan other than remitting employees' contributions to the trustees. Accordingly, the City has not presented the assets and liabilities of the Plan in these basic financial statements. Retiree Healthcare Plan Plan Description. The City provides postretirement health and dental care benefits for retirees and their dependents. The benefits vary depending upon a retiree's years of service. Retirees fall into three categories: full retirement, early retirement, and combined service retirement. The full retirement retiree pays 100% of the current premiums for health and dental care coverage for themselves and covered dependents. Early retirement and combined service retirement employees pay premiums for health and dental care coverage for themselves and covered dependents at 150% and 175 %, respectively, of the current premium. The City's regular health and dental care benefit providers underwrite the retirees' policies. Retirees may not convert the benefit into an in -lieu payment to secure coverage under independent plans. As of year end, there were 88 full retirement, 19 early retirement, and 2 combined service retirement retirees receiving postretirement health and dental care benefits. The City of North Richland Hills Retired Employees Healthcare Plan (NRHREHP) is a single - employer defined benefit healthcare plan and is self administered through an internal oversight committee (appointed by the City Manager through conveyed authority from City Council). NRHREHP provides medical, prescription, and dental insurance benefits to eligible retirees and their spouses. City council is the authoritative body granting health care benefits for both active and retired employees. Funding Policy. The contribution requirements of plan members and the state are established and may be amended by the City Council members. The required contribution is based on projected pay- as -you- go financing requirements, with an additional amount to prefund. Benefits as determined annually by the City's council members. For fiscal year 2011, the City contributed a total of $744,182 to the plan for current premiums. Of the $744,182, $100,000 was contributed to the OPEB Trust in addition to regular participation and health insurance premium activity. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer annually required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to NRHREHP: 63 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase (Decrease) in net OPEB obligation Net OPEB obligation- beginning of year Net OPEB obligation -end of year 2009 2010 2011 $ 2,326,000 $ 2,419,000 $ 2,587,136 - 64,000 106,681 - (51,000) (84,640) 2,326,000 2,432,000 2,609,177 (910,000) (1,477,340) (744,182) 1,416,000 954,660 1,864,995 - 1,416,000 2,370,660 $ 1,416,000 $ 2,370,660 $ 4,235,655 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011: Funded Status and Funding Progress. As of September 30, 2011, the most recent actuarial valuation date, the plan was 2% percent funded. The actuarial accrued liability for benefits was $42,098,543, and the actuarial value of assets was $648,389, resulting in an unfunded actuarial accrued liability (UAAL) of $41,450,154. The covered payroll (annual payroll of active employees covered by the plan) was $30,514,794 and the ratio of the UAAL to the covered payroll was 136 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the September 30, 2011, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.5 percent investment rate of return (net of administrative expenses), which is a the interest rate of the expected long -term investment returns on plan assets and on the 64 Percentage Fiscal Annual of Annual Year OPEB OPEB Cost Net OPEB Ended Cost Contributed Obligation 9/30/2009 $ 2,326,000 39.12% $ 1,416,000 9/30/2010 $ 2,432,000 60.75% $ 2,370,660 9/30/2011 $ 2,609,177 28.52% $ 4,235,655 Funded Status and Funding Progress. As of September 30, 2011, the most recent actuarial valuation date, the plan was 2% percent funded. The actuarial accrued liability for benefits was $42,098,543, and the actuarial value of assets was $648,389, resulting in an unfunded actuarial accrued liability (UAAL) of $41,450,154. The covered payroll (annual payroll of active employees covered by the plan) was $30,514,794 and the ratio of the UAAL to the covered payroll was 136 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the September 30, 2011, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.5 percent investment rate of return (net of administrative expenses), which is a the interest rate of the expected long -term investment returns on plan assets and on the 64 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 employer's own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 9.5% initially, reduced by decrements to an ultimate rate of 4.5% after ten years. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at September 30, 2011, was closed twenty -eight years. E. Employee retirement systems and pension plans Plan Description The City provides pension benefits for all of its full -time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state -wide Texas Municipal Retirement System ("TMRS "), one of 842 administered by TMRS, an agent multiple - employer public employee retirement system. TMRS issues a publicly - available annual financial report that may be obtained by writing to TMRS, P.O. Box 149153, Austin, Texas 78714 -9153. Benefits depend upon the sum of the employees' contributions to the plan, with interest, and the City- financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (100 %, 150% and 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit. An updated service credit is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer - financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 5 years. The plan provisions are adopted by the City Council, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Contribution The contribution rate for employees is 7 %, and the City's matching percent is currently 17.26 %, both as adopted by the City Council. Under the state law governing TMRS, the actuary annually determines the City contribution rate. The rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's 30 -year amortization period. Contributions are made monthly by both the employees and the City. The actuarial valuation is performed annually to determine the City's required contribution percentage. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect (i.e. December 31, 2006 is effective for rates beginning January 2008). Effective for the valuation dated December 31, 2010, the TMRS Board of Trustees elected to change the actuarial cost (funding) method and assumptions. 65 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 Significant assumptions used in preparation of that valuation as well as the previous valuation are as follows: Valuation Date 12131/2008 12/31/2009 12131/2010 Actuarial Cost Method Projected Unit Credit Projected Unit Credit Projected Unit Credit Amortization Method Level Percent Level Percent Level Percent of Payroll of Payroll of Payroll GASB 25 Equivalent Single 29.0 years: 28.1 years: 27.2 years: Amortization Period closed period closed period closed period Amortization Period for new 30 years 30 years 30 years Gains /Losses Asset Valuation Method Amortized Cost 10 year Smoothed 10 year Smoothed Market Market Actuarial Assumptions: Investment Rate of Return ' 7.5% 7.5% 7.0% Projected Salary Increases ' Varies by Varies by Varies by age and service age and service age and service Includes Inflation at 3.0 %4 3.0% 3.0% Cost -of -- Living Adjustments 2.1% 2.1% 2.1% The TMRS Board of Trustees, in an effort to assist cities with increases greater than .5 %4 in the required contribution rates occurring as a result of the changes in funding method and assumptions, voted to (2) extend the period for amortizing the unfunded actuarial accrued liability ( "UAAL ") to a 30 year closed period, and (2) allow the contribution rate increase to be phased in over an 8 -year period (2009 - 2016) in determining the required contribution rate. Both options are automatic, but not mandatory. At a city's request, TMRS will recalculate the contribution rate for a city that chooses a 25- year, closed amortization period. Cities may also choose to pay contributions in excess of the phase -in rate. For cities with repeating features in their plans, these changes in the valuation methodology would likely result initially in higher required contributions and lower funded ratios. However, the funded ratio should show steady improvement over time. NRH has adopted the updated service credit and annuity increase provisions on an annually repeating basis. The schedule of funding progress, presented as Required Supplementary Information immediately following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The 2011 valuation resulted in an unfunded actuarial accrued liability ( "UAAL ") of $38,460,797, which represents an increase over an actuarial value of assets of $87,571,726 and in actuarial /accrued liability of $126,032,523. The funded ratio of the City's plan dropped from 69.51 % to 69.48 %4 as a result of the increased UAAL. The City's contributions to the plan were $4,958,007, $4,491,126, and $4,078,510, for the years ended September 30, 2011, 2010, and 2009, respectively, in accordance with actuarially determined requirements. Contributions by the City were 17.26 %4 (phase in rate) for the months in calendar year 66 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 2011 and 15.90% for the months in calendar year 2010. The total covered payroll in fiscal 2011 was $29,291,853. The following tables shows the components of the City's annual net pension obligation costs for the year, the amount actually contributed to the plan, and changes in the City's net pension obligation: Annual pension cost and percentage of pension cost contributed are as follows: 2011 2010 2009 Annual required contribution $ 6,054,626 $ 5,895,498 $ 5,327,791 Interest on net pension obligation 200,330 93,696 - Adjustment to net pension obligation (165,750) (76,283) - Annual PENSION cost (expense) 6,089,206 5,912,911 5,327,791 Contributions made (4,958,007) (4,491,126) (4,078,510) Increase (decrease) in net pension obligation 1,131,198 1,421,785 1,249,281 Net pension obligation- beginning of year 2,671,066 1,249,281 - Net pension obligation -end of year $ 3,802,265 $ 2,671,066 $ 1,249,281 Annual pension cost and percentage of pension cost contributed are as follows: F. Operating leases In July 2009, the City entered into an operating lease contract for golf carts and utility vehicle equipment for the Golf Course Fund operations. The operating lease is for a 36 month term. Year Endinq September 30, 2012 86,984 Total minimum payments required $ 86,984 This section of this page is intentionally left blank. Notes are continued on the next page. 67 Percentage Fiscal Annual of Annual Year Pension Pension Cost Net Pension Ended Cost Contributed Obligation 9/30/2011 $ 6,089,206 82% $ 3,802,265 9130/2010 5,912,911 76% 2,671,066 9/30/2009 5,327,791 76% 1,249,281 F. Operating leases In July 2009, the City entered into an operating lease contract for golf carts and utility vehicle equipment for the Golf Course Fund operations. The operating lease is for a 36 month term. Year Endinq September 30, 2012 86,984 Total minimum payments required $ 86,984 This section of this page is intentionally left blank. Notes are continued on the next page. 67 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 G. Condensed Financial Information For Component Units Condensed financial information for all component units is presented below: Condensed Schedule of Net Assets: Condensed Schedule of Revenues, Expenses, and Changes in Net Assets: TIF #1 TIF #2 Total ASSETS (152,893) Change in net assets 65,809 Current $ 1,409,406 $19,814,446 $ 21,223,852 Noncurrent 896,077 15, 764,157 16, 660, 234 Total assets 2,305,483 35,578,603 37,884,086 LIABILITIES Current 236,199 4,136,043 4,372,242 Noncurrent 1,059,078 25,289,652 26,348,730 Total liabilities 1,295,277 29,425,695 30,720,972 NET ASSETS $ 1,010,206 $ 6,152,908 $ 7,163,114 Condensed Schedule of Revenues, Expenses, and Changes in Net Assets: TIF #2 $16,079,122 (14,409,112) 1,670,010 4,482,898 $ 6,152,908 Total $16,297,824 (14,562,005) 1,735,819 5,427,295 $ 7,163,114 H. Subsequent events On January 11, 2012, the City issued $4,715,000 in general obligation refunding bonds to advance refund $4,805,000 of outstanding certificates of obligations and general obligation bonds. These bonds were refunded to lower the overall debt service requirements of the City and to pay the cost associated with the issuance of the Bonds. I. Implementation of future GASB Statements The Governmental Accounting Standards Board ( "GASB ") has issued the following new statements to be implemented in future years. GASB 57: OPEB Measurements by Agent Employers and Agent Multiple Employer Plans GASB Statement No. 57, DPEB Measurements by Agent Employers and Agent Multiple Employer Plans, clarifies that when actuarially determined DPEB measures are reported by an agent multiple - employer DPEB plan and its participating employers, those measures should be determined as of a common date and at a minimum frequency to satisfy the agent multiple - employer DPEB plan's financial reporting requirements. This Statement is effective for the City in fiscal year 2012. 68 TIF #1 Revenues $ 218,702 Expenses (152,893) Change in net assets 65,809 Net assets - beginning 944,397 Net assets - ending $ 1,010,206 TIF #2 $16,079,122 (14,409,112) 1,670,010 4,482,898 $ 6,152,908 Total $16,297,824 (14,562,005) 1,735,819 5,427,295 $ 7,163,114 H. Subsequent events On January 11, 2012, the City issued $4,715,000 in general obligation refunding bonds to advance refund $4,805,000 of outstanding certificates of obligations and general obligation bonds. These bonds were refunded to lower the overall debt service requirements of the City and to pay the cost associated with the issuance of the Bonds. I. Implementation of future GASB Statements The Governmental Accounting Standards Board ( "GASB ") has issued the following new statements to be implemented in future years. GASB 57: OPEB Measurements by Agent Employers and Agent Multiple Employer Plans GASB Statement No. 57, DPEB Measurements by Agent Employers and Agent Multiple Employer Plans, clarifies that when actuarially determined DPEB measures are reported by an agent multiple - employer DPEB plan and its participating employers, those measures should be determined as of a common date and at a minimum frequency to satisfy the agent multiple - employer DPEB plan's financial reporting requirements. This Statement is effective for the City in fiscal year 2012. 68 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 GASB 60: Accounting and Financial Reporting for Service Concession Arrangements GASB Statement No. 60, Accounting and Fi"nanci"al Reporting for Service Concession Arrangements, was issued in December 2010 to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public- private or public - public partnership. The standard addresses SCAB in which there is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility ") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. The statement also includes required disclosures about the SCAB. This standard becomes effective for the City in fiscal year 2013. GASB 61: The Financial Reporting Entity: Omnibus —an amendment of GASB Statements No. 14 and No. 34 GASB Statement No. 61, The Financial Reporting Entity: Omnibus —an amendment of GASB Statements No. 14 and No. 34, was issued in November 2010 to improve financial reporting for a governmental reporting entity. The standard modifies certain requirements for inclusion of component units, amends criteria for blending, and clarifies the reporting of equity interests in legally separate entities. This standard becomes effective for the City in fiscal year 2013. GASB 62: Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements GASB 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, was issued in December 2010 to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure. This standard becomes effective for the City in fiscal year 2013. Statement No. 63: Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, was issued in June 2011 to improve financial reporting for a governmental reporting entity. The standard provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of net assets by the government that is applicable to a future reporting period, and an acquisition of net assets by the government that is applicable to a future reporting period, respectively. This standard becomes effective for the City in fiscal year 2013. Statement No. 64: Derivative Instruments: Application of Fledge Accounting Termination Provisions —an amendment of GASB Statement No. 53 GASB Statement No. 64, Derivative Instruments: Application of Fledge Accounting Termination Provisions —an amendment of GASB Statement No. 53, was issued in June 2011 to improve financial reporting for a governmental reporting entity. The standard clarifies whether an effective hedging relationship continues after the replacement of a swap oounterparty or a swap counterparty's credit 69 CITY OF NORTH RICHLAND WILLS Notes to Basic Financial Statements September 30, 2011 support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. This standard becomes effective for the City in fiscal year 2012. The City has not yet determined the effect on the City's financial statement or disclosures upon implementation of these new accounting standards. 70 REQUIRED SUPPLEMENTARY INFORMATION Tl This page intentionally left blank. KX CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information Texas Municipal Retirement System Plan Schedule of Funding Progress Note: The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and actuarial accrued liability as of December 31, 2009 and each of the five preceding calendar years. The data presented in the schedule was obtained annually from TMRS and are based on the annual actuarial valuation for the years represented. The City is financially responsible for its own portion of the plan. Therefore, the numbers shown above reflect only the position of the City's plan. The schedule is presented to provide a consistent basis for measuring the plan's annual progress toward funding its actuarial accrued liability in accordance with its actuarial funding method. The primary measure of funding progress is the plan's funded ratio (i.e., actuarial value of assets expressed as a percentage of the actuarial accrued liability). An increase in the funded ratio indicates improvement in the plan's ability to pay all projected benefits as they come due. The plan is fully funded if the funded ratio is greater than or equal to 100 %. During the year ended December 31, 2009, the plan's funded ratio dropped from 69.51 % to 69.48 %©. The Schedule of Funding Progress also discloses the relationship between the plan's covered payroll (i.e... all elements included in compensation paid to active members on which contributions are based) and the unfunded actuarial accrued liability ( "UAAL "). This relationship, expressed as a ratio. is a measure of the significance of the UAAL relative to the capacity to pay all contributions required to fund the liability. During the year ended December 31, 2009, the plan's ratio of the UAAL to its covered payroll decreased from 138.70% to 129.85 %. For the actuarial valuation dated December 31, 2007, the TMRS Board of Trustees adopted changes in the actuarial funding method and assumptions; as such, those changes are reflected in the above numbers. For a complete description of these changes, see Note E Employee Retirement Systems and pension plans in the accompanying notes to the financial statements. City's annual contribution stated as a percentage of covered payroll: For Calendar Year 2011 2010 2009 2008 2007 2006 17.26 % 16.07% 15.50% 13.50% 13.63 % 13.20 % Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2009, Actuarial Section and City records. 73 Unfunded Valuation Actuarial Actuarial Actuarial Accrued Annual UAAL Dated Value of Accrued Liability Fund Covered as % of December 31, Assets Liability (UAAL) Ratio Payroll Payroll 2004 $69.410,855 $81,993,021 $12,582,166 84.65% 523,787,759 52.89 %4 2005 72.129,416 86.165,248 14.035,832 83.71% 24,586,641 57.09 %Q 2006 75,748,895 90,985,317 15,236,422 83.25% 25,328,096 60.16 % 2007 79,089,871 112,285,789 33,195,918 70.44% 24,915,619 133.23% 2008 83,565,864 120,213,148 36,647,284 69.51% 26,422,388 138.70 % 2009 87,571,726 126.032,523 38,460,797 69.48% 29,618,737 129.85% Note: The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and actuarial accrued liability as of December 31, 2009 and each of the five preceding calendar years. The data presented in the schedule was obtained annually from TMRS and are based on the annual actuarial valuation for the years represented. The City is financially responsible for its own portion of the plan. Therefore, the numbers shown above reflect only the position of the City's plan. The schedule is presented to provide a consistent basis for measuring the plan's annual progress toward funding its actuarial accrued liability in accordance with its actuarial funding method. The primary measure of funding progress is the plan's funded ratio (i.e., actuarial value of assets expressed as a percentage of the actuarial accrued liability). An increase in the funded ratio indicates improvement in the plan's ability to pay all projected benefits as they come due. The plan is fully funded if the funded ratio is greater than or equal to 100 %. During the year ended December 31, 2009, the plan's funded ratio dropped from 69.51 % to 69.48 %©. The Schedule of Funding Progress also discloses the relationship between the plan's covered payroll (i.e... all elements included in compensation paid to active members on which contributions are based) and the unfunded actuarial accrued liability ( "UAAL "). This relationship, expressed as a ratio. is a measure of the significance of the UAAL relative to the capacity to pay all contributions required to fund the liability. During the year ended December 31, 2009, the plan's ratio of the UAAL to its covered payroll decreased from 138.70% to 129.85 %. For the actuarial valuation dated December 31, 2007, the TMRS Board of Trustees adopted changes in the actuarial funding method and assumptions; as such, those changes are reflected in the above numbers. For a complete description of these changes, see Note E Employee Retirement Systems and pension plans in the accompanying notes to the financial statements. City's annual contribution stated as a percentage of covered payroll: For Calendar Year 2011 2010 2009 2008 2007 2006 17.26 % 16.07% 15.50% 13.50% 13.63 % 13.20 % Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2009, Actuarial Section and City records. 73 CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information North Richland Hills Other Past Employment Benefits Schedule of Funding Progress Unfunded Valuation Actuarial Dated Actuarial Actuarial Accrued Annual UAAL September Value of Accrued Liablity Covered as % of 30, Assets Liability (AAL) (UAAL) Fund Ratio Payroll Payroll 2009 $ - $ 37,107,498 $ 37,107,498 0.00% $ 29,762,000 124.70% 2010 $518,660 $ 38,868,426 $ 38,349,766 1.00% $ 30,952,000 123.90% 2011 $595,415 $ 42,098,543 $ 41,450,154 2.00% $ 30,514,794 135.80% 74 CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information (unaudited) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (Nan -GAAP Basis) and Actual GENERAL FUND For the Year Ended September 30, 2011 Budgeted Amounts Variance with Final Budget Positive Original Final Actual (Negative) REVENUES Taxes Property taxes (penalties & interest induded) $ 14,746,079 $ 14,764,318 $ 14,770,189 $ 5,871 City sales taxes 8,223,511 8,417,919 8,358,773 (59,146) Mixed beverage taxes 120,000 120,000 128,007 8,007 Franchisetaxes 4,476,547 4,783,372 5,129,833 346,461 Sub -total Taxes 27,566,137 28,085,609 28,386,802 301,193 Fines and forfeitures 2,265,620 2,657,850 2,665,135 7,285 Licenses and permits 1,108,650 1,361,099 1,502,822 141,723 Charges for services 2,894,822 3,084,929 3,234,479 149,550 Intergovernmental 2,356,659 2,356,659 2,356,659 - Miscellaneous 997,284 1,D02,696 828,308 (174,388) Sub -total Non -Tax Revenues 9,623,035 10,463,233 10,587,403 124,170 Appropriations from fund balances Legal settlement 300,000 - - - Golf Course Loans 164,500 164,500 164,500 Utility Assistance Program - 20,000 20,000 Previous Year Encumbrances - 256,974 256,974 Sub -Total Appropriations 4 64,500 441,474 441,474 - TOTAL REVENUES 37,653,672 38,990,316 39,415,679 425,363 EXPENDITURES City Council 126,146 126,146 74,869 51,277 City Manager 519,876 520,686 474,547 46,139 Communications 398,923 409,452 387,881 21,571 City Secretary 498,442 499,562 418,350 81,212 Legal 647,718 647,718 473,719 173,999 Human Resources 118,433 118,645 118,975 (330) Finance 717,285 721,174 719,254 1,920 Budget& Research 360,083 360,347 351,854 8,493 Municipal Court 1,239,262 1,266,541 1,224,363 42,178 Planning and Inspections 823,953 825,167 765,738 59,429 Economic Development 202 ,413 203,293 161,426 41,867 Library 1,922,842 1,928,233 1,879,608 48,625 Neighborhood Services 1,582,055 1,649,752 1,518,221 131,531 Public Works 3,356,505 3,404,394 3,116,186 288,208 Parks & Recreation 2,380,933 2,397,980 2,181,082 216,898 Police 10,263,785 10,330,115 10,108,541 221,574 Emergency Management 778,328 990,973 800,912 190,061 Fire 9,440,887 9,588,803 9,485,'77 103,626 Building Services 702,973 702,973 702,973 - Non -Departmental 1,341,776 1,296,410 1,327,013 (30,603) Sub -Total Departments 37,422,618 37,988,364 36,290,689 1,697,675 Reserves & Other Expenditures Reserves 66,554 335,341 880,683 (545,342) Golf Course Loans 164,500 164,500 164,500 Legal settlement - 370,500 1,095,254 (724,754) Sub -Total Reserves and Other 231,054 870,341 2,140,437 (1,270,096) TOTAL EXPENDITURES 37,653,672 38,858,705 38,431,126 427,579 Net Increase (Decrease) $ - $ 131,611 $ 984,553 $ 852,942 The notes to Hie required supplemenOffYwmwn is an integral parr of this schedule. 75 CITY OF NORTH 'RICHLAND HILLS, TEXAS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION General Fund BUDGETARY COMPARISIONS A. General Fund Budget -to- Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase (decrease) to budgetary unreserved undesignated fund balance $ 984,553 The City budgets "appropriations from fund balance" as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (441,474) Increase (decrease) in investment fair value changes are not considered a resource /inflow for budgetary recognition (71,893) Uses /Outflows for advances given to other funds are not recognized as expenditures in GAAP statements; Only recognized as asset on balance sheet and not a transfer out 164,500 Increase (decrease) in charges for services due to the activities billed to customers (482,794) are considered revenues in budgetary basis but not in GAAP recognition Special funded projects are appropriated through long range capital improvement budget (9,683) in which segregated and specific funding is appropriated outside of the operating budget Total "Net Change in Fund Balance" from the Statement of Revenues, Expenditures, and Changes in Balances - Governmental Fund -- General Fund $ 143,209 INV NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS The Promotional Fund accounts for the operations and expenditures for which hotel /motel occupancy taxes are used. Occupancy tax revenues are primarily to attract tourist and new businesses to the City. The Donations Fund holds funds contributed (donated) to the City for special projects earmarked by requests or nonrecurring expenditures. It primarily collects and holds funds that are voluntarily given by the citizens via adding $1.50 to their water utility billing which is then distributed to support the activities of the library and neighborhood services departments. The Special Investigations Fund is mandated by state statue to account for various legal seizure and forfeiture deposits and expenditures. The Drainage Utility Fund accounts for the establishment of drainage facilities within the municipal boundaries of the City and the subsequent billing and collection of fees so established. The Parks and Recreation Facilities Development Fund accounts for the accumulation and use of resources to build and improve City parks and recreation facilities as well as economic development projects. The Crime Control and Prevention District Fund accounts for the accumulation and use of half -cent sales tax proceeds dedicated for crime prevention and reduction programs. The Grant Fund is a centralized fund accounting for all private, local, state, and federal grant proceeds. The ARRA Fund is for reporting federal grant funds received due to the American Recovery and Reinvestment Act of 2009. The Economic Development Fund accounts for the accumulation and expenditure of resources designed to stimulate the local economy, development, and redevelopment. The Gas Development Fund accounts for the accumulation and expenditures of resources from gas drilling and exploration on City owned property. The Traffic Safety Fund accounts for funds collected from various red -light traffic safety cameras. These resources assist with funding of various traffic safety projects. I■]4Ad & -14 N[a]4 0 The Sales Tax Revenue Debt Service Fund is used to accumulate monies for the payment of principal, interest, and related charges on sales tax revenue bonds. 77 Assets Deposits and investments Receivables, net of allowance Accounts Other taxes receivable Interest receivable Intergovemmental receivables Other receivables Prepaid items Inventories, at cost Restricted: Deposits and investments: Construction funds Transition funds Debt Service Funds Total assets Liabilities Accounts payable Retainage payable Accrued' liabiilibes Due to other funds Deposits and other liabilities Deferred revenue Total liabilities Fund Balance NDnspendables: Inventories Prepaids Restricted: Parks and recreation development Crime control district Debt service Grants General government Public safety Capital projects: Culture and recreation Committed: Donations General government Culture and recreation Assigned: Culture and recreation Total fund balance Total liabilities and fund balance CITY OF NORTH RICHLAND HILLS, TEXAS Balance Sheet Non -major Governmental Funds September 30, 2011 78 Special Crime Control District 727,631 171 112,324 840,126 2,740 67,613 70,353 171 769,602 769,773 840,126 Parks and Special Recreation Promotional Donations Investigations Drainage Utility Development $ 344,745 $ 832,506 $ 514,279 $ 1,114,335 $ 1,226,411 $ - - - 98,936 - 57,097 - - 721,010 51 147 1,D43 226 210 - 135 - 4,997 - 457 2,775 - - 20,708 3,830,054 $ 406,890 $ 832,788 $ 515,779 $ 1,213,497 $ 5,801,168 $ $ 39 $ 4,415 $ 413 $ - $ 69,119 $ 1,257 33,155 - 12 721 1,291 - - 14,154 2,587 4,427 413 117,149 - - - 20,7(18 4,997 457 2,775 - - 2,647,024 399,306 - - 514,909 - - - 2,968,068 824,978 - - - 1,213,497 3,383 - - 45,444 4D4,303 828,361 515,366 1,213,497 5,684,019 $ 406,890 $ 832,788 $ 515,779 $ 1,213,497 $ 5,801,168 $ 78 Special Crime Control District 727,631 171 112,324 840,126 2,740 67,613 70,353 171 769,602 769,773 840,126 Revenue Debt Service - 20,708 450 8,850 2,647,024 - 769,602 - 913,267 913,267 42,569 (449,951) - - (407,382) - 4,278,679 - 4,677,985 - 264,088 778,997 2,968,068 824,978 2,840,745 4,054,242 1,341,798 1,341,798 - - - - - 48,827 42,569 (449,951) 4,278,679 4,182,543 264,088 913,717 18,646,964 288,763 $ 589,156 $ 4,278,679 $ 4,182,543 $ 266,944 $ 913,717 $ 20,129,950 79 Economic Sales Tax Revenue Total Non-major Grants ARRA Grant Development Gas Development Traffic Safety Bond Debt Service Governmental 219,096 $ $ 959,551 $ 4,181,973 $ 266,758 $ $ 9,659,654 - - - - 98,936 - - - 1,505,738 175 579 570 86 400 3,487 69,100 589,156 - - - 658,256 392 - 527 - 450 8,850 - - 20,708 3,318,549 7,148,603 - - 112,324 - - - - 912,867 912,867 288,763 $ 589,156 $ 4,278,679 $ 4,182,543 $ 266,844 $ 913,717 $ 20,129,950 460 $ 65,963 $ - $ - $ $ $ 143,149 67,841 - 67,841 - 233 2,756 105,014 150,000 589,156 - 739,156 - - 733 27,893 383,755 - 427,093 246,194 1,039,107 2,756 1,482,986 - 20,708 450 8,850 2,647,024 - 769,602 - 913,267 913,267 42,569 (449,951) - - (407,382) - 4,278,679 - 4,677,985 - 264,088 778,997 2,968,068 824,978 2,840,745 4,054,242 1,341,798 1,341,798 - - - - - 48,827 42,569 (449,951) 4,278,679 4,182,543 264,088 913,717 18,646,964 288,763 $ 589,156 $ 4,278,679 $ 4,182,543 $ 266,944 $ 913,717 $ 20,129,950 79 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balance Non -major Governmental Funds Year Ended September 30, 2011 REVENUES Taxes Civil citatians Contributions Investment income Intergovernmental Drainage fees Tennis center Forfeitures Mineral rights lease income Right of way usage fees Miscellaneous Total revenues EXPENDITURES General government Public safety Culture and recreation Caprtal outlay: Public safety Culture and recreation Public works Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess {deficiency} of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of debt Premium on issuance of debt Transfer in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - beginning of year Fund balance - end of the year Special Parks and Special Recreation Crime Control Promotional Donations Invesitgations Drainage Utility Development District $ 238,416 $ - $ - $ - $ 4,179,388 $ 4,176,097 1,992 240,402 163,879 163,879 76,523 76,523 327,780 $ 404,303 $ 176,313 - - 11,500 - 4,967 3,873 7,664 11,060 2,233 - 71,096 - 135,627 - - 849,061 - - 362,375 2 181,282 15,179 11,408 85,277 111,864 69,418 69,418 758,943 828,361 $ 183,295 - - 132,017 258,264 856,725 4,831,967 - 1,100 - 114,163 - - 3,284,467 131,085 - - 543,887 245,248 1,100 3,828,354 13,016 855,625 1,003,613 - - 2,440,t70o 107,251 64,896 (910,629) (1,268,725) - (910,629) 1,343,422 13,016 (55,004) 2,347,035 502,350 1,268,501 3,336,984 515,366 $ 1,213,497 $ 5,684,1719 $ 4,178,330 4,062,869 4,062,869 115,461 115,461 654,312 769,773 80 Revenue Grants 6,791 839,240 846,031 136,192 519,718 23,497 46,772 726,179 119,852 119,852 (77,283) $ 42,569 $ 168,550 - 484,900 138,750 - 693,154 5,540,062 - - 3,393,241 409,954 Debt Service Ecomomic 1,400 - Sales Tax Revenue Total Non -major ARRA Grant Development Gas Development Traffic Safety Bonds Debt Service Govemmental $ $ $ - $ $ 8,593,895 674,745 995,000 674,745 - - 123,349 187,813 35,740 28,455 2,041 9,932 114,748 643,540 - - - - 1,689,503 - 854,653 - 849,061 - 2,440,000 362,375 - - 107,251 183,295 105,224 76,618 100,000 1,119,401 75,518 46,201 (439,881) 46,201 - - - - - 132,019 643,540 35,740 151274 675,786 9,932 12,910,273 168,550 - 484,900 138,750 - 693,154 5,540,062 - - 3,393,241 409,954 6,717 594,528 1,400 - 545,287 352,500 6,753 - 359,253 - - 995,000 995,000 - - - 123,349 123,349 1,081,154 6,753 - 699,871 1,118,349 12,045,620 (437,614) 28,987 151274 (23,085) (1,108,417) 854,653 - - 2,440,000 - - 107,251 105,224 100,000 1,119,401 1,389,521 - (439,881) - (2,619,235) 105,224 (439,881) 100,000 1,119,401 1,317,537 (437,514) 134,211 (288,607) 75,915 10,984 2,182,190 (12,337) 4,144,468 4,471150 187,173 902,733 16,454,774 (449,951) $ 4,278,679 $ 4,182,543 $ 254,088 $ 913,717 $ 18,646,954 81 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual GENERAL DEBT SERVICE Year Ended September 30, 2011 Variance with Final Budget - Positive (Negative) 18,069 (1) 18,068 55,968 (3,416) 52,552 70.620 (107,283) 123,313 16,030 86,650 82 Original Final Actual REVENUES Taxes $ 4,925,000 $ 4,925,000 $ 4,925,000 $ Investment income - - 18,069 Intergovemmental 82,853 82,853 82,852 Total revenues 5,007,853 5,007,853 5,025,921 EXPENDITURES Debt service Principal 4,966,381 7,248,664 7,192,696 Interest and fiscaI agent charges 2,017,858 2,067,679 2,071,095 Total expenditures 6,984,239 9,316,343 9,263,791 (Excess (deficiency) of revenues over expenditures (1,976,386) (4,308,490) (4,237,870) OTHER FINANCING SOURCES (USES) Transfers in 1,383,408 1,394,610 1,394,610 Bond defeasance 1 bnnd refunding - 2,237,283 2,130,000 Premium on issuance of debt - - 123,313 Total other financing sources (uses) 1,383,408 3,631,893 3,647,923 Net change in fund balance $ (592,978) $ (676,597) $ (589,947) $ Fund balance - beginning of year 2,811,528 Fund balance - end of the year $ 2,221,581 The budge[ is reflected on a GAAP basis. Variance with Final Budget - Positive (Negative) 18,069 (1) 18,068 55,968 (3,416) 52,552 70.620 (107,283) 123,313 16,030 86,650 82 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual PROMOTIONAL FUND Year Ended September 30, 2011 Variance with Final Budget Positive (Negative) 30,476 (1,396) 29,080 45,058 45,058 74,138 74,138 83 Original Final Actual REVENUES Taxes $ 206,025 $ 207,934 $ 238,410 $ Investment income 3,545 3,388 1,992 Total revenues 209,570 211,322 240,402 EXPENDITURES General Government 208,982 208,937 163,879 Total expenditures 208,982 208,937 163,879 Excess of revenues over expenditures 588 2,385 76,523 Net change in fund balance $ 588 $ 2,385 $ 76,523 $ Fund balance - beginning of year 327,780 Fund balance - end of the year $ 404,303 The budge[ is reflected on a GAAP basis. Variance with Final Budget Positive (Negative) 30,476 (1,396) 29,080 45,058 45,058 74,138 74,138 83 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual DONATIONS FUND Year Ended September 30, 2011 Variance with Final Budget - Positive (Negative) 34,045 (3,868) (50,397) (20,220) 19,330 1,542 28,718 49,590 29,370 29.370 84 Original Final Actual REVENUES Contributions $ 148,768 $ 142,268 $ 176,313 $ Investment income 10,217 8,835 4,967 Miscellaneous 43,100 50,399 2 Total revenues 202,085 201,502 181,282 EXPENDITURES General Government 32,509 34,509 15,179 Public safety 12,950 12,950 11,408 Culture and recreation 113,000 113,995 85,277 Total expenditures 158,459 161,454 111,864 Excess of revenues over expenditures 43,626 40,048 69,418 Net change in fund balance $ 43,626 $ 40,048 $ 69,418 $ Fund balance - beginning of year 758,943 Fund balance - end of the year $ 828,361 The WVet is reflected on a GAAPbasis. Variance with Final Budget - Positive (Negative) 34,045 (3,868) (50,397) (20,220) 19,330 1,542 28,718 49,590 29,370 29.370 84 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual SPECIAL INVESTIGATIONS FUND Year Ended September 30, 2011 Variance with Final Budget Positive (Negative) (2,376) (116) 1,855 (637) 163,247 (12,085) 151,162 150,525 150.525 85 Original Final Actual REVENUES Investment income $ 7,617 $ 6,249 $ 3,873 $ Intergovemmental 8,800 71,212 71,096 Forfeitures 100,500 181,440 183,295 Total revenues 116,917 258,909 258,264 EXPENDITURES Public safety 290,900 277,410 114,163 Capital outlay: Public safety 94,000 119,000 931,085 Total expenditures 384,900 396,410 245,248 Excess (deficiency) of revenues over expenditures (267,983) (137,509) 13,016 Net change in fund balance $ (267,183) $ (137,509) $ 13,016 $ Fund balance - beginning of year 502,350 Fund 'balance - end of the year $ 515,366 The budget is reflected on a GAAP basis. Variance with Final Budget Positive (Negative) (2,376) (116) 1,855 (637) 163,247 (12,085) 151,162 150,525 150.525 85 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual DRAINAGE UTILITY FUND Year Ended September 30, 2011 Variance with Final Budget Positive (Negative) (6,553) 15,061 8,508 1,400 1,400 9,908 9.908 86 Original Final Actual REVENUES Investment income $ 11,955 $ 14,217 $ 7,664 $ Drainage fees 834,0410 834,000 849,061 Total revenues 845 ,955 848,217 856,725 EXPENDITURES General government 2,500 2,500 1,100 Total expenditures 2,500 2,500 1,100 Excess of revenues over expenditures 843,455 845,717 855,625 Transfers out (897,627) (910,629) (910,629) Total other financing sources (uses) (897,627) (910,629) (910,629) Net change in fund balance $ (54,172) $ (64,912) $ (55,004) $ Fund balance - beginning of year 1,268,501 Fund balance - end of the year $ 1,213,497 The budget is reflected on a GAAPbasis. Variance with Final Budget Positive (Negative) (6,553) 15,061 8,508 1,400 1,400 9,908 9.908 86 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual PARKS AND RECREATIONS DEVELOPMENT CORPORATION FUND Year Ended September 30, 2011 Operating Budget REVENUES Taxes Contributions Investment income Intergovernmental Tennis center Miscellaneous Total revenues EXPENDITURES Culture and recreation Capital Outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Issuance of debt Premium on the issuance of debt Transfers in Transfers out Total other financing sources (uses) Net change in fund balance 3,813,250 3,493,032 3,284,467 Less: Actual - 543,887 3,819,050 Actual (GAAP Capital Project Original Final Basis) Expenditures $ 4,111,755 $ 4,208,960 $ 4,179,388 $ - - - 11,500 - 14,950 13,669 11,060 - - - 135,627 - 314,550 323,350 362,375 - 111,500 124,728 132,017 - 4,552,755 4,670,707 4,831,967 - 3,813,250 3,493,032 3,284,467 5,800 - 543,887 3,819,050 3,493,032 3,828,354 733,705 1,177,675 1,003,613 - 2,440,000 - - 107,251 64,896 64,896 64,896 (1,074,066) (1,268,725) (1,268,725) (1,009,170) (1,203,829) 1,343,422 $ (275,465) $ (26,154) $ 2,347,035 $ - 3,284,467 208,565 543,887 - - 543,887 3,284,467 208,565 (543,887) 1,547,500 369,825 - 2,440,000 2,440,000 - 107,251 107,251 - 64,896 - - (1,268,725) - - 1,343,422 2,547,251 (543,887) $ 2,890,922 $ 2,917,076 ** Capital Projects expeditures are budgeted on a multi -year schedule and are not included in the operatrng budget. 87 Variance with Operating Actual Final Budget - (Budget Positive Basis) (Negative) $ 4,179,388 $ (29,572) 11,500 11,500 11,060 (2,609) 135,627 135,627 362,375 39,025 132,017 7,289 4,831,967 161,260 - 3,284,467 208,565 543,887 - - 543,887 3,284,467 208,565 (543,887) 1,547,500 369,825 - 2,440,000 2,440,000 - 107,251 107,251 - 64,896 - - (1,268,725) - - 1,343,422 2,547,251 (543,887) $ 2,890,922 $ 2,917,076 ** Capital Projects expeditures are budgeted on a multi -year schedule and are not included in the operatrng budget. 87 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual CRIME CONTROL DISTRICT FUND Year Ended September 30, 2011 Variance with Final Budget - Positive (Negative) 31,963 (2,532) 29,431 86,030 86,030 115,461 115,461 88 OriginaV Final Actual REVENUES Taxes $ 4,213,005 $ 4,144,134 $ 4,176,497 $ Investment income 468 4,765 2,233 Total revenues 4,213,473 4,148,899 4,178,330 EXPENDITURES Public safety 4,176,961 4,148,899 4,062,869 Total expenditures 4,176,961 4,148,899 4,062,869 Excess of revenues over expenditures 36,512 - 115,461 Net change in fund balance $ 36,512 $ - $ 115,461 $ Fund balance - beginning of year 654,312 Fund balance - end of the year $ 769,773 The budge[ is reflected on a GAAP basis. Variance with Final Budget - Positive (Negative) 31,963 (2,532) 29,431 86,030 86,030 115,461 115,461 88 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual GAS DEVELOPMENT FUND Year Ended September 30, 2011 Variance with Final Budget - Positive (Negative) (9,329) 9,999 670 670 (2,000,000) (2,000,000) (1,999,330) 89 Original Final Actual REVENUES Investment income $ 39,879 $ 37,784 $ 28,455 $ Mineral rights lease income 140,000 66,619 76,618 Right of way usage fees - 46,201 46,201 Total revenues 179,879 150,604 151,274 EXPENDITURES Total expenditures - - - Excess of revenues over expenditures 179,879 150,604 151,274 OTHER FINANCING SOURCES (USES) Transfers in - 2,000,000 - Transfers out (439,881) (439,881) (439,881) Total other financing sources (uses) (439,881) 1,560,119 (439,881) Net change in fund balance $ (260,002) $ 1,710,723 $ (288,607) $ Fund balance - beginning of year 4,471,150 Fund balance - end of the year $ 4,182,543 The budget is reflected on a GAAPbasis. Variance with Final Budget - Positive (Negative) (9,329) 9,999 670 670 (2,000,000) (2,000,000) (1,999,330) 89 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual TRAFFIC SAFETY FUND Year Ended September 30, 2011 Variance with Final Budget - Positive (Negative) (1,'803) (85,255) (87,058) 68,426 (6,717) 61,709 (25,349) 100,000 100,000 74;651 90 Original Final Actual REVENUES Investment income $ 5,201 $ 3,844 $ 2,041 $ Civil citations 750,000 760,000 674,745 Total revenues 755,201 763,844 676,786 EXPENDITURES Public safety 748,039 761,580 693,154 Capital outlay Public safety - - 6,717 Total expenditures 748,039 7611,580 699 Excess of revenues over expenditures 7,162 2,264 (23,085) OTHER FINANCING SOURCES (USES) Transfers in - - 100,000 Total other financing sources (uses) - - 100,000 Net change in fund balance $ 7,162 $ 2,264 $ 76,915 $ Fund balance - beginning of year 187,173 Fund balance - end of the year $ 264,088 The budget is reflected on o CAA Pbasis. Variance with Final Budget - Positive (Negative) (1,'803) (85,255) (87,058) 68,426 (6,717) 61,709 (25,349) 100,000 100,000 74;651 90 91 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual SALES TAX REVENUE BOND DEBT SERVICE Year Ended September 30, 2011 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Investment income $ - $ - $ 9,932 $ 9,932 Total revenues - - 9,932 9,932 EXPENDITURES Debt service Principal 960,000 960,000 995,000 (35,000) Interst and fiscal agent charges 164,300 164,300 123,349 40,951 Total expenditures 1,124,300 1,124,300 1,118,349 5,951 Excess (deficiency) of revenues over expenditures (1,124,300) (1,124,300) (1,108,417) 15,883 Transfers in 1,126,402 995,811 1,119,401 123,590 Total other financing sources (uses) 1,126,402 995,811 1,119,401 123,590 Net change in fund balance $ 2,102 $ (128,489) $ 10,984 $ 139,473 Fund balance - beginning of year 902,733 Fund balance - end of the year $ 913,717 The budget is reflected on a GAAP basis. 91 This page intentionally left blank. RA INTERNAL SERVICE FUNDS Facility and Construction Services Fund — To account for building maintenance and repair services provided to numerous departments located at various sites throughout the City. Facility and Construction Services Fund operations are financed by charges to user departments. Fleet Services Fund — To account for the maintenance, repair service, and replacement of vehicles and equipment provided to numerous departments responsible for the operation of City vehicles and equipment. Fleet Services Fund operations are financed by charges to user departments. Self- Insurance Fund — To account for the payment of substantially all claims except for fire insurance coverage and employee life insurance coverage. Self- Insurance Fund operations are financed by charges to user departments and employee contributions. Information Services Fund — To account for the acquisition, maintenance, and support of computer and telephone hardware and software. Information Services Fund operations are financed by charges to user departments. 93 CITY OF NORTH RICHLAND WILLS, TEXAS Statement of Net Assets INTERNAL SERVICE September 30, 2011 Facilities and Information Total Internal Construction Fleet Services Self Insurance Services Service ASSETS Current Deposits and investments $ 82,480 $ 147,496 $ 986,236 $ 501,980 $ 1,718,192 Accounts receivable, netof allowance: Other 750 14,973 - 4,943 20,666 Interest receivable 1,629 5,049 9,017 3,773 19,468 Prepaid items - - 134,360 37,454 171,814 Inventories, at cost 16,156 72,795 - - 88,951 Total current assets 101,015 240,313 1,129,613 548,150 2,019,091 Noncurrent Restricted assets: Deposits and investments: Construction funds 3,385 95,305 24,209 122,899 Future construction 987,934 2,001,227 - 1,607,757 4,596,918 Future claims - - 4,959,211 - 4,959,211 Other funds - 258,316 - - 258,316 Total deposits and investments 991,319 2,354,848 4,959,211 1,631,966 9,937,344 Capital assets, at cost: Building and improvements 272,293 - - - 272,293 Machinery and equipment 369,227 4,956,091 17,312 2,509,917 7,852,547 Accumulated depreciation (252,034) (3,793,908) (17,312) (1,298,71T) (5,361,971) Net capital assets 389,486 1,162,183 - 1,813,969 3,365,638 Total noncurrent assets 1,380,805 3,517,031 4,959,211 3,445,935 13,302,982 Total assets 1,481,820 3,757,344 6,088,824 3,994,085 15,322,073 LIABILITIES Current Accounts payable 39,275 52,192 17,082 96,996 205,545 Accrued liabilities 13,384 14,337 882,970 14,664 925,355 Other current liabilities 277 850 9,222 - 10,349 Compensated absences 29,134 78,365 22,323 28,495 158,317 Deferred revenue - - - 11,534 11,534 Total current liabilities 82,070 145,744 931,597 151,689 1,3111,100 Noncurrent Compensated absences 22,682 22,160 26,992 19,287 91,121 Other post employment benefits obligation 79,886 95,679 51,419 94,348 321,332 Net pension obligation 70,581 84,050 46,749 83,933 285,313 Total noncurrent liabilities 173,149 201,889 125,160 197,568 697,766 Total liabilities 255,219 347,633 1,056,757 349,257 2,008,866 NET ASSETS Invested in capital assets, net of related debt 392,638 1,162,183 - 1,813,969 3,368,190 Unrestricted 834,563 2,247,528 5,032,067 1,830,859 9,945,017 Total net assets $ 1,226,601 $ 3,409,711 $ 5,032,067 $ 3,644,828 $ 13,313,207 WE CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Expense, Revenues, and Changes in Net Assets INTERNAL SERVICE Year Ended September 30, 2011 108Ii Facilities and Fleet Self Information Total Internal Construction Services Insurance Systems Service OPERATING REVENUES Other intergovernmental $ - $ - $ 53,746 $ - $ 53,746 Internal service revenues Insurance premiums - - 8,539,686 - 8,539,686 Maintenace services 2,008,495 2,165,977 - - 4,174,472 Computer services - - - 1,815,621 1,815,621 Telephone services - - - 409,978 409 „978 Miscellaneous revenues 100,821 57,726 - 108,384 266,931 Total operating revenues 2,109,316 2,223,703 8,593,432 2,333,983 15,260,434 OPERATING EXPENSES Claims - - 5,790,969 - 5,790,969 Contractual services 743,217 75,379 723,901 322,427 1,864,924 Personnel services 968,332 1,075,255 517,241 1,047,427 3,608,255 Repairs and maintenance 250,964 53,203 4,071 1,116,096 1,424,334 Supplies 57,136 1,001,497 5,366 132,812 1,196,811 Depreciation 37,878 342,786 - 376,744 757,408 Total operating expenses 2,057,527 2,548,120 7,041,548 2,995,506 14,642,701 Operating income (loss) 51,789 (324,417) 1,551,884 (661,523) 617,733 NONOPERATING REVENUES (EXPENSES) Investment income 6,921 15,695 31,138 10,240 63,994 Insurance recovery proceeds - - 13,529 - 13,529 Other income (expense) - - 78,964 - 78,964 Gain (loss) on disposal of assets - 3,979 - - 3,979 Total nonoperating revenues (expenses) 6,921 19,674 123,631 10,240 160,466 Income (loss) before transfers 58,710 (304,743) 1,675,515 (651,283) 778,199 TRANSFERS Transfers in - 68,787 - 425,000 493,787 Transfers out (6,994) - - - (6,994) Total transfers - net (6,994) 68,787 - 425,000 486,793 Change in net assets 51,716 (235,956) 1,675,515 (226,283) 1,264,992 Net assets - beginning of year 1,174,885 3,645,667 3,356,552 3,871,111 12,048,215 Net assets - end of year $ 1,226,601 $ 3,409,711 $ 5,032,067 $ 3,644,828 $ 13,313,207 108Ii CITY OF NORTH RICHLAND HILLS, TEXAS Combining Statement of Cash Flows INTERNAL SERVICE FUNDS Year Ended September 30, 2011 Facilities and Construction Services Fleet Services Cash flows from operating activities: Receipts from interfund services provided Other operating revenue Payments to suppliers Payments to employees Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Transfers from other funds Transfers to other funds Net cash provided by (used for) noncapital and related financing activities Cash flows from capital and related financing activities: Insurance recovery proceeds Acquisition and construction of capital assets Proceeds from sale of capital assets Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest and dividends received Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalent beginning of year Cash and cash equivalent end of year Self Information Insurance Services Totals $ 2,008,494 $ 2,165,977 $ 8,539,686 $ 2,225,599 $ 14,939,756 100,071 42,753 70,983 108,809 322,616 (1,077,157) (1,089,591) (6,827,754) (1,732,231) (10,726,733) (907,920) (989,693) (478,586) (955,903) (3,332,102) 123,488 129,446 1,304,329 (353,726) 1,203,537 - 68,787 - 425,000 493,787 (6,994) - - - (6,994) (6,994) 68,787 - 425,000 486,793 (24,665) - 92,496 - 92,496 (121,113) (94,540) - (259,737) (475,390) 71,699 3,979 - - 3,979 (121,113) (90,561) 92,496 (259,737) (378,915) 9,041 19,152 39,916 15,728 83,837 9,041 19,152 39,916 15,728 83,837 4,422 126,824 1,436,741 (172,735) 1,395,252 1,069,377 2,375,520 4,508,706 2,306,681 10,260,284 $ 1,073 799 $ 2502,344 $ 5,945,447 $ 2.133,946 $ 11,655,536 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) $ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities_ Depreciation expense Other expense (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in prepaid items Increase (decrease) in compensating absences Increase (decrease) in other post employment benefits Increase (decrease) in net pension obligation Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Total adjustments Net cash provided by (used for) operating activities $ 51,789 $ (324,417) $ 1,551,884 $ (661,523) $ 617,733 37,877 342,786 - 376,744 757,407 25 60 (292) - (207) (750) (14,973) 17,237 425 1,939 (3,400) 25,588 - - 22,188 - - (134,360) (37,455) (171,815) 1,387 13,354 17,684 (7,500) 24,925 36,740 44,946 8,189 73,345 163,220 22,285 27,262 12,782 25,679 88,008 (24,665) 11,135 (5,051) (126,459) (145,040) 2,200 3,705 (163,744) 3,018 (154,821) 71,699 453,863 (247,555) 307,797 585,804 123488 $ 129,446 $ 1,304,329 $ (353.,726) $ 1,203,537 Kt 10101ij1;181�14�11 all ►111&1 Tax Increment Financing District #1 — to fund drainage improvements that would alleviate flooding problems, reduce property damage associated with the flooding, and stimulate development for the benefit of citizens within TI #1. Tax Increment Financing District #2 — to provide funding for public improvements that would benefit the participants in and citizens of TI #2 as well as others in the Metroplex area. 97 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Net Assets COMPONENT UNITS September 30, 2011 98 Tax Increment Tax Increment Total Financing Financing Component District #1 District #2 Units Assets CURRENT ASSETS Deposits and investments $ 1,409,205 $ 19,803,223 $ 21,212,428 Interest receivable 201 11,223 11,424 Total current assets 1,409,406 19,814,446 21,223,852 NONCURRENT ASSETS Restricted deposits and investments 887,738 - 887,738 Capital assets - net: Construction in progress - 15,581,877 15,581,877 Bond issue costs, net of amortization 8,339 182,280 190,619 Total noncurrent assets 896,077 15,764,157 16,660,234 Total assets 2,305,483 35,578,603 37,884,086 Liabilities CURRENT LIABILITIES Accounts payable 113,577 1,664,349 1,777,926 Retainage payable - 585,294 585 Accrued interest payable 2,622 126,400 129,022 Bonds payable 120,000 1,760,000 1,880,000 Total current liabilities 236,199 4,136,043 4,372,242 NONCURRENT LIABILITIES General obligation bonds payable 284,523 - 284,523 Certificates of obligation bonds payable 774,555 25,289,652 26,064 „207 Total noncurrent liabilities 1,059,078 25,289,652 26,348,730 Total liabilities 1,295,277 29,425,695 30,720,972 Net Assets Invested in capital assets, net of related debt - 83,102 83,102 Restricted for: Debt service 1,010,206 6,069,806 7,080,012 Total net assets $ 1,010,206 $ 6,152,908 $ 7,163,114 98 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Activities COMPONENT UNITS Year Ended September 30, 2011 Expenses $ Total expense $ Program Revenues Capital grants and contributions $ Total capital grants and contributions $ General revenue Taxes: Properly $ Unrestricted investment earnings Total general revenues $ Change in net assets Net assets - beginning of the year Net assets - end of year $ Tax Increment Tax Increment Total Financing Financing Component District #1 District #2 Units 152,893 $ 14,409,112 $ 14,562,005 152,893 $ 14,409,112 $ 14,562,005 - $ 13,361,122 $ 13,361,122 - $ 13,361,122 $ 13,361 209,254 $ 2,603,790 $ 2,813,044 9,448 114,210 123,658 218,702 $ 2,718,000 $ 2,936,702 65,809 1,670,010 1,735,819 944,397 4,482,898 5,427,295 1,010,206 $ 6,152,908 $ 7,163,114 99 This page intentionally left blank. 100 Statistical Section "IP446-EM4 101 This page intentionally Jett blank. 102 Notas: Fiscal year 2003 was the implementation year of GASB 434 for the City. Figures from fiscal years prior to 2OD3are unavailable for inclusion in the tables. Right- of-way land was added to the financial statements in fiscal year 2006- 103 CITY OF NORTH RICHLA.ND HILLS, TEXAS Table 1 Net Assets by Component (Unaudited) Fiscal Year 2811 2010 2848 2808 2867 2006 2665 2004 2003 Govemmental R ctiviries Invested in capital assets net of related debt $ 178,349,544 $ 164,973,337 $ 142,066,447 $ 129,533,935 $ 128,290,273 $ 127,692,821 $ 70,181,539 $ 63,351,827 $ 58,568,370 Restricted 3,368,190 3,715,127 4,693,345 3,984,364 3,270,409 2,973,821 2,759,095 2,954,135 2,858,468 Unrestricted 37,099,102 35,253,280 52,082, 125 54 ,146,336 44,787,548 36,986,785 27,539,936 27,644,041 27,303,419 Total net assets 218.816.836 203.941.724 198.841.917 187.664.638 176.348230 167.653.427 100.780.574 93.950.003 88.730.197 Business -type Acth iLes Invested in capital assets net of related debt. 65,810,811 61,160,189 62,354,993 60,828,610 65,485,796 62,776,005 63,610,252 65,122,142 64,023,232 Restricted 2,600,187 2,610,287 3,018,779 2,709,713 2,937,027 2,712,360 2,267,668 1241,081 2,450,610 Unrestricted 21 455 781 21.724 799 25 09 106 29.018,$50 24 779 076 27 457.208 22.623 841 20 443 728 19.036 895 Total net assets 89�W8 n 85,495 +75 90.82178 9 2,556,173 93101199 9245,573 88,501, 86106151 95 Primary GOVemmenr Invested in capital assets riot of related debt 244,160,355 226,134,526 204,421,440 190,362,545 193,776,069 190,468,826 133,791,791 128,473,969 122,591,542 Restricted 5,968,377 6,325,414 7,712,124 6,694,077 6,207,436 5,686,181 5,026,767 4,195,216 5,309,078 Unrestricted 58,554,883 56,978,925 77,391,231 83,164,686 69,566,624 64,443,993 50,463777 48,087,769 46,349,314 Total net assets $ 308.683.615 $ 289.438.865 $ 289.524.795 $ 280221.309 $ 269.550.129 $ 260.599.000 $ 189282335 $ 180,756.954 $ 174.240.934 Notas: Fiscal year 2003 was the implementation year of GASB 434 for the City. Figures from fiscal years prior to 2OD3are unavailable for inclusion in the tables. Right- of-way land was added to the financial statements in fiscal year 2006- 103 111F1 CITY OF NORTH RICHLAND HILLS, TEXAS Tabk 2 Changes in Net Assets (unaudited) Fiscal Year 2011 2010 2W9 2008 2007 2006 2005 2004 2003 Expenses Govemnvsdal activities: General government S 9,886,731 S 14;653,747 S 16,355,871 S 9,379,422 $ 8,461,142 S 9,269,861 $ 8,288,137 S 9,755,719 $ 9„292,156 Public safety 28 ,512,136 26,172,292 27,772,668 25,791,827 23,265,259 22,022,696 20,693,721 20,460,665 21,078,401 Culture and recreation 9,352,354 9,468,346 10,718,579 7,973,359 7,327,532 7,611,710 7,355,182 7,436,113 7,102,491 Public works 7,679,001 8,388,531 2,126,721 5,746,315 7,799,706 8,169,282 7,597,475 6,755,207 6,917,896 Interest and other fees 2,108,277 1,761,128 2,269,541 2,302,096 2,561,837 2,546,791 2,860,149 3,157,963 3,853,040 Total governrnerdal activities 57,538,499 60,444,094 59243,380 51,195,019 49,415,476 49,620,340 46,794,664 47,565,667 48,243,984 Business -type activities: Water and sewer 27,981,025 27,313,424 25,121,565 27,329,181 23,154,259 22,929,665 21,492,504 20,707,959 20,415,859 Golf course 2,227,315 2,236,113 2,217,868 2,302,670 2,247,272 2,239,404 2,254,198 2,257,534 2,353,454 Aquatic park 4,507,561 4,188,892 4,105,695 3,T74,757 3,433,492 3,343,073 3,251,524 3,178,835 3,121,296 Interest and other fees 0 0 - 433,588 - - - - - Total business -type activities 34,715,901 33,738,429 31,445,128 33,840,196 28,835,023 28,512,142 26,996,226 26,144,328 25,896,611 Total primary government 92,254,400 94 ,182,473 96,668,508 85,635,215 78,256,499 78,132,482 73,792,890 73,709,996 74,134,595 Program Revenues Cwemmerntal activities: Charges for services General govemmernt 5 8,619,557 4,547,658 9,333,482 6,505,029 6,881,843 5,672,569 5,548,912 5,221,263 Public safety 2,668,111 2,918,356 4,922,180 2,995,693 1,718,460 1,314,329 1,154,807 1,031,326 1,062,295 Culture and recreation 858 ,241 909,267 1,446,132 2,517,122 1,124,777 1,212,343 1,214,590 1,091,618 1,363,337 Public works 857,809 839,309 1,896,764 2,355,161 1,179,302 174,166 61,063 100,192 475,788 Operating grants and corbtxxtio 879,524 964,914 1,142,243 353,816 1,028,853 1,153,543 1,539,736 612,519 865,108 Capital grants and cantrbutiions 17,644,326 6,806,586 11,341,668 304,514 410,297 2,910,568 4,367,529 6,404,966 2,087,935 Total governrne ntal activities 28,374,887 21,057.989 25,296,645 17,859,788 11,966,718 13,646,792 14,1110,294 14,789,533 11,075,726 Businesgtype activities: Charges for services Water and sewer 28,921,168 24,324,685 25,060,898 2 6,349,559 21,636, 336 25 ,858,511 22,237,742 20,861,262 20 Golf course 2,324,118 2,264,256 2,509,577 2571,409 2,298,065 1,775,963 2,287,494 2154,714 2,356,941 Aquatic park 4 4,090,897 3,856,389 3,943,288 3,916,691 3,894,274 3,421,301 2,831,743 2,892,843 Operating grants and contributions, _ _ _ _ _ 66,466 46,847 344,296 64,334 Capital grants and contributions 4,643,096 271,624 - - 599,983 1,288,734 1,603,834 2,128,214 1,303,870 Total business -type activities 40,476,281 30,956,652 31,428,864 32,864,256 28,445,075 32,883,948 29,597,218 28,320,229 27,563,496 Total primary government 68,851,168 52,008, 641 56, 725, 509 50 ,724,044 40,411,793 46,530,740 43 43,109,762 38,639,222 Net (Expense) Revenue Governmental activities (29,163,612) (39,386,1755) (33,946,735) (33,335,231) (37,448,758) (35,973,548) (32,784,376) (32,776,134) (37,168,258) Business -type activities 5,766,300 (2,787;777) (16,264) (975,940) (389.948) 4,371,806 2.598,992 2175,901 1,672885 Total primary government S (23.403232) $ F42173.,832) f (33962,999) $ (34,311171) $ (37,838,706) f (31601,742) S (30,185378) f (30600.233) S (35,495.373) 111F1 1[1197 CITY OF NORTH RICHLAND HILLS, TEXAS Table- 2 Changes in Net Assets (unaudited) Fiscal Year 2091 2010 2009 2008 2007 2006 2005 2094 2003 General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes S 19,339,750 S 19,909,976 f 20,695,670 1 19,248,707 1 18,663,482 f 18,134,230 f 17,458,279 f 16,871,892 $ 16,871,892 Sales taxes 16,645,412 16,428,281 16,058,728 17,445,806 16,865,282 15,934,374 15,230,354 16,477,474 16,477,474 Mixed beverage taxes 128,007 118,253 117,757 161,783 129,860 123,355 115,143 107,164 107,164 Franchise taxes 4,329,5130 3,956,663 3,802,559 4,604,523 4,450,441 3,855,169 3,541,130 3,592,682 3,592,662 Occupancy taxes 238,410 240,387 152,720 260,319 284,099 199 191,898 172,197 172,197 Unrestricted imrestinent comings 495,386 538,866 1,611,632 2,245,479 2,757,206 2,047,583 1,088,547 652,153 652,153 Special items - - - 196,320 1,499,140 - - (1,585,000) (1,585,800) Miscellaneous 1,271,555 553,412 188,512 477,026 651,376 2,341,327 688,555 602,568 602,568 Transfers 1,590,7134 2690,024 2,586,937 569,227 712,782 873 1.301,085 1,104,810 1,104,810 ToW govemniental activities 44 ,038,724 44,485,862 45,124,015 45,209,190 46,013,670 43,509,755 39,614,941 37,995,944 37,995,940 Business-type activities: Unrestricted investment earnings 171,125 236,674 740,393 878,795 1,330,781 945,873 396,903 225,123 725,123 Special items Miscellaneous 30,703 53,524 (10,986) 8,962 Transfers (1,590,704) (2,690,024) (2,586,937) (557,044) (712,782) (873,867) (1,301,065) (1,104,8101 (1.104,810) Total business -type activities (1,388,876) (2,399,826) (1,857,530) 330,713 617,999 72,006 (904,182) (879,687) (879,867) Tatol primary government 42,649,848 42;086,036 43,266,485 45,539,903 46,631,669 43,581,761 38,710,759 37116,253 37,116,253 Changes in Net Assets Governmental activities 14,875,112 5,099,807 11,177,280 11,873,959 8,564,912 7,536,207 6,830,571 5,219,806 827,682 Business -type activities 4,371,504 (5,187,6031 {1,873,7941 (645,227) 728,051 4,443,812 1,694,810 1,296,214 793,198 Total primary government S 19,246616 3 (87796) f 9303,486 $ 11,228732 $ 8,792963 S 11980,019 $ 8,525381 $ 6516,020 $ 1,620.8&1 Notes: Fiscal year 2003 was the i mplementation year of GASB 9134 for the City. 1[1197 CITY OF NORTH RICHLAND HILLS, TEXAS Fund Balances - Governmental Funds (unaudited) General Fund Nonspendables Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendables Restricted Committed Assigned Unassigned Total all other governmental funds Total all governmental funds Fiscal Year 2011 $ 926,707 653,526 0 1,848,329 9,838,310 $ 13,266,872 $ 30,308 30,997,610 6,221,018 6,480,459 0 $ 43,729,395 $ 56,996,267 Notes: GASB 54 Fund Balance reporting was implemented in 2011. Table 3 106 Revenues Taxes Licenses and permits Charges for services Fines Civil Citations Contributions Special assessments Investment income Intergovernmental Drainage fees Tennis center Forfeitures Mineral rights lease income Right of way usage fees Miscehaneous Total revenues Expenditures General government Public safety Culture and recreation Public works Capital outlay Debt service Principal Interest Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Proceeds from borrowing P rem lum on issuance of debt Proceeds from refunding Payments to escrow agent Insurance recovery proceeds Proceeds from sale of assets Payment in lieu of taxes Transfers in Transfers out 1Wet component unit transfers Total otiler financing sources (uses) Net c hange I n fund balances Debt service as a percentage of noncapital expenditures CITY OF NORTH RICH LAND HILLS, TEXAS Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years Table 4 107 Fiscal Year 2011 2814 2009 2008 2007 2006 2005 2004 2043 2002 $ 40,681,079 $ 44,842,535 $ 40,736,934 $ 41,721,138 $ 40,393,165 $ 39,296,191 $ 37,565,852 $ 35,099,241 $ 36,455,642 $ 35,866288 1,375,742 1,148,594 988,020 1,705,703 1,526,636 2,251,29'2 1,473,542 1,421,831 1,432,955 1,268203 4,818,988 5,349,622 5,402259 5,309,838 9203,037 5,237,388 5,109,802 4,849,344 4,817,750 4,639,573 2,665,136 2,631,813 2,677,901 2,394,920 2,064,187 2,130,968 1,787,547 1,775,899 1,582,165 1,821,922 674,745 726,274 999,564 825,191 - _ - - 187,813 192,501 160,194 196,320 170,326 177,273 178,937 176,962 177,162 137,791 8,748 - 276,475 154,125 28,225 8,346 514 - 57,169 99,024 383,453 538,193 1,250,127 1,678,921 2258,877 1,719,493 922,870 569,537 822,474 1,477290 9,070,872 3,188,918 2,477,191 1200,491 1267,839 1,730,684 1,792,392 3,139,929 1,044,102 550,253 849,061 839,309 834,075 830,338 819,370 806,414 795,475 793,415 771,430 767,956 382,375 309,559 325,907 320,836 312,697 310,397 280,545 289,375 328,110 305,159 183,295 232,054 146,830 142,874 74,448 86,752 70,117 47,068 33,874 106,358 76,618 1,386,208 75282 6239,616 - - - - - 46,201 1,090.401 - - - - - - 368.598 490.074 442210 395.186 939.241 1.431.192 1.070.674 460.770 T77.753 1.224.113 61,752,521 58,966, 058 56 ,792,989 63,115,497 55,058,048 55,186,302 51,048,227 51,623,366 48,38D,586 48,263,930 10,311297 10,435,254 9,459,393 9,054,489 8,607,293 9,329,442 8,553,540 8,988,934 8,323,967 8,280,838 25,934,692 24,697,961 25,262,159 26,051,508 23,414,877 22,049,690 21,289,638 20,618,988 20,543,273 19,912,790 7,453,931 7,344261 8,545,815 7,241,596 6,684,263 6,431291 6,331,728 6266,762 5,968,300 5,633,847 2,416,186 2,518,081 2,478,800 2,663,001 2,522,751 2,468,819 2,536,83E 2,278,247 3,270,197 7,012,492 15,475,441 14,301,095 10,548,569 5,137,598 3,742,378 4,909,101 9,404,434 12,577,507 8,315,345 $49,446 8,187,696 7,115,319 5,699,394 6,188,393 6,697,217 6,462,9D5 6,695,455 6278,OD5 5,826,894 5,718,661 2``1941l444 71.973.8E7 2.16132 `` 6E.573,29'z 2\\048``696 64.00d.B'26 2.225 58.562.168 2281 ` 934 53.950.79 2 54.ODD. 2.665 57.477.361 2 875 59.74.318 3126 5394.371 2 844 50.511 �F8 (10221,166) (9,607234) (7,207,837) 4,553,329 1,107,339 1,185,894 (6,429,134) (8,135,952) (7,093,785) (2.047,748) 7,315,000 9,186,475 8,503,525 4,465,000 2,185,060 3,625,060 4,935,000 2,750,006 7,250,000 358,270 42,075 242 - - - - - - - - - - - 5.085,ODD 6,245,DOO - 3,815,000 - 10,255,ODO - - - - (5,075,787) (8,100,166) - (3,694,3136) - (10,394,89D) - - - 282.606 - - - - - 606,479 34,678 188,512 16,353 9,664 - - - - - - - - 355,OD4 - - - - - - 5,659,688 8,158 9,274,945 5,916,639 5,812,148 4,436,8OD 3,749,998 4,442,310 8,676,744 7,554,672 (4,304,576) (7,540,830) (7,759,444) (5,899,649) (5,996.349) (5,71D,15D) (3,794,425) (4,858,894) (5,002,772) (6,369,969) 9.834.861 9, B80.490 10.207.760 4.855.347 2.307,876 2,496.484 MAW 4.639.034 4.625.972 8.294.813 $ (386.305) $ 273,256 $ 2.999.943 $ 9.405.676 $ 3.415.215 $ 3,682,378 $ (8.473592) $ (3.496.922) $ (2.467.813) $ 8.247.065 22.5% 20.6% 16.9% 18.7°1 21.8% 21.9% 242% 23.7% 215% 212% 107 CITY OF NORTH RICHLAND HILLS, TEXAS Appraised and Taxable Value of Property Last Ten Fiscal Years (unaudited) Table 5 Less: Appraised Appraised Appraised Appraised Net Taxable Fiscal Residential Commercial Industrial Other Personal Year Property Property Property Property (1) Property 2DD2 $ 1,656,247,313 $ 584,864,722 $ 37,825,972 $ 331,401,729 $ 347,188,187 2003 1,879,625,473 616,511,643 34,642,976 321,388,471 338,839,069 20D4 2,020,935,083 637,135,49D 3D, 121,580 359,23D,8D7 348,631,136 2005 2,125,365,452 660,915,079 25,319,238 371,683,707 347,217,730 2DD5 2.2D8,222,D79 693,344.286 23,766,2D5 395,694,369 361,559,520 2007 2,322,672,063 706,800,208 24,219,435 432,473,733 342,337,515 20D8 2,454,968,837 732,299,884 25,DD8,737 482,924,193 318,594,946 2009 2,527,941,808 723,655,894 24,685,465 603,634,230 331,545,812 2D1 2,536,677,612 755,382,876 24,238,120 588,1D9,765 311,291,262 2011 2,599,141,890 719,345,087 23,749,165 837,360,868 302,449,010 Source: Tarrant Appraisal District Certified Tax Roll, Julys 25, City budget (2007 -2011) Tarrant Appraisal District September Report, City budget (2DD2 -2DD5) (1) This category includes properties under protest with the appraisal review board and properties classified as incomplete by Tarrant Appraisal District at the time NRH City Council approves the Tax Rolls for the budget year. The net taxable values are those approved by City Council by resolution. Table 5 Less: Tax- Exempt Net Taxable Total Direct Property Value Tax Rate $ 358,315,055 $ 2,599,212,878 0.57DDD 374,D46,137 2,816, 939,495 0.57000 382,365,613 3,013,688,483 0.57DDD 397,233,578 3,133,267,628 0.57000 388,297,2D7 3.295,289,253 D.57DDD 421, 361, 355 3,407,141,199 0.57000 438,489,3D2 3,575,307,295 D.57DDD 451,978,018 3,759,485,131 0.57000 465,272,D83 3,75D,427,552 D.57DDD 879,728,308 3,602,317,712 0.57000 M Sources: (1) Tarrant County. (2) Birdvi Ile Independent School District from 2002 -2006- (3) City records. (4) Began using Tarrant County a5 5ource in 2006- M CITY OF NORTH RICHLAND HILLS, TEXAS Table 6 Property Tax Rates - Direct and Overlapping Governments (pee $100 assessed value) (unaudited) City of North Richland Hills Birdville Fiscal General Debt service Junior school Year fund (3) fund (3) Total (3) college (1) district (1)(2) Hospital (1) County (1) Total 2002 0.33531 0.23469 0.57000 0.10641 1.56980 0.23407 027479 2.75507 2003 0.32935 0.24065 0.57000 0.13938 1.61700 0.23240 0.27250 2.83128 2004 0.32956 024044 0.57000 0.13938 1.61700 0_23540 027250 2.83428 2005 0.33173 023827 0.57000 0.13938 1.61700 023540 027250 2.83428 2006 0.34432 022568 0.57000 0.13938 1.61700 (4) 023540 027250 2.83428 2007 0.34695 0.22305 0.57000 0.13938 1.56500 (4) 0.23540 0.27150 2.78128 2008 0.34241 022759 0.57000 0.13938 1.40500 (4) 023040 026650 2 -61128 2009 0.33875 023125 0.57000 0.13796 1.41000 (4) 022790 026400 2.60986 2010 0.35412 021588 0.57000 0.13767 1.40500 (4) 022790 026400 2.60457 2011 0.37022 0.19978 0.57000 0.13764 1.42500 (4) 0.22790 0.26400 2.62454 Sources: (1) Tarrant County. (2) Birdvi Ile Independent School District from 2002 -2006- (3) City records. (4) Began using Tarrant County a5 5ource in 2006- M CITY OF NORTH RICHLAND HILLS, TEXAS Table 7 Principal Taxpayers (unaudited) Year Ended September 30, 2011 Source: Tarrant Appraisal District 110 Percentage of 2010 assessed total assessed Taxpaver Tvpe of business valuation' valuation Wal -Mart Retail $ 61,785,850 1.72% Hospital Corporation of America Healthcare Provider 42,593,212 1.18% Western RIM Investors 2001 -3 LP11997 -2 Real Estate 36,924,798 1.03% Oncor Electric Delivery Co_ Utility Service Provider 26,808,838 0.74% BGPC Equestrian Real Estate 23,500,000 0.65% Venue at Home Town LTD ETAL Property Developer 18,265,850 051% Bradbury Pointe LLC Commercial Business 16,995,460 0.47% Alliance PP2 FX3 LP Commercial/Real Estate 16,273,834 0.45% Company One, LLC Real Estate 15,665,282 0.43% Tyson Prepared Foods Inc_ Food Manufacturer 15,623,026 0.43% $ 274,436,150 7.62% Year Ended September 30, 2002 Percentage of 2001 assessed total assessed Taxpayer Type of business valuation* valuation Walmart Retail $ 45,941,918 1.98% Home Depot, Inc. Retail 40 1.77% Kimberly- Clark/Tecnol, Inc_ Manufacturer 31,132,574 1.34% Food Brands America, Inc. Manufacturer 26,111,782 1.13% Alliance Park Portfolio, LLC Real Estate 25,094,693 1.08% Five Star Ford /Pack Properties Automotive Dealership 23,884,599 1.03% ONCOR Electric Delivery Utility Service Provider 23,733,453 1.02% MidStar Properties/NH Mail Real Estate 20,909,920 0.90% Meadows NRH Associates LP Real Estate 19,175,403 0.83% Haverhill Associates LP Real Estate 18.000,000 0.78% $ 274,894.255 11.86% Source: Tarrant Appraisal District 110 CITY OF NORTH RICHLAND HILLS, TEXAS Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Table 8 Total Collections to Date Collected within the Amount Levy $ 14,719,047 Fiscal Year of the Levy Collections Fiscal Total 99.85% Percent of in Subsequent Year tax levy Amount levy Years 2002 $ 14,745,229 $ 14,472,560 98.15% $ 246,487 2003 16,056,553 15,798,849 98.40% 238,040 2004 17,178,024 16,860,430 98.15% 291,149 2005 17,859,625 17,679,906 98.99% 153,500 2006 18,783,149 18,461,867 98.29% 295,504 2007 19,420,705 19,133,840 98.52% 258,603 2008 20,379,252 19,980,714 98.04% 364,082 2009 21,429,065 21,268,426 99.25 % 109,614 2010 21,377,437 21,115,928 98.78% 175,635 2011 20,533,211 20,281,233 98.77% — Table 8 Total Collections to Date Percent of Amount Levy $ 14,719,047 99.82% 16,036,889 99.88% 17,151,579 99.85% 17,833,406 99.85% 18,757,371 99.86% 19,392,443 99.85% 20,344,797 99.83% 21,378,040 99.76 % 21,291,563 99.60% 20,281,233 98.77% 111 CITY OF NORTH RICHLAND HILLS, TEXAS Ratios of Outstanding Debt by Type Last Ten Fiscal Years (unaudited) Table 9 (dollars in thousands, ex cep tper capita) Other govt General Bonded Debt Total Percentage General Bonded Activities Debt Fiscal Estimated Net Taxable General Certificates of Loans general of Debt per Sales tax Year population (1) value (2) obligation bonds obligation payable bonded debt NetTaxablevalue capita (1) revenue bonds 2002 58,62.7 $ 2,599,213 $ 39,357 $ 18,333 $ $ 57,690 2.22°% $ 984 $ 9,375 2003 59,800 2,816,939 38,408 17,287 55,695 1.98% 931 8,650 2004 60,400 3,013,688 40,197 15,537 - 55,734 1.85% 923 7,890 2005 61,668 3,133,268 35,733 14,481 - 50,214 1.60% 814 7,095 2006 63,521 3,295,289 38,024 11,D48 - 49,072 1.49% 773 6,2.70 2007 64,050 3,407,141 37,821 7,842 - 45,663 1.34% 713 5,410 2.008 65,750 3,575,307 37 7,041 - 44,864 1.2.5% 682 4,520 2009 66,100 3,759,485 39,810 7,229 1,550 48,589 1.29% 735 3,600 201D 66,400 3,75D,428 41,72.5 8,2.55 1,625 51,605 1.38% 777 2,64D 2011 63,420 3,602,318 41,000 9,575 1,242 51 1.44% 817 1,645 Busi ness-Type Activi ties Total Total (3) Total Percentage Fiscal Water & sewer General Certificates of Contractual Capital business -type primary bonded debt of per capita Year revenue bonds obligation bonds obligation obligations leases activities government per capita (1) income (1) 2002 $ 2,760 $ 3,376 $ 3,448 $ - $ 220 $ 9,804 $ 76,869 $ 1,311 5.16% 2003 2,335 3,D61 5,161 - 164 10,721 75,066 1,255 4.39% 2004 - 4,258 5,364 - 104 9,726 73,350 1,214 4.13% 2005 - 3,598 5,018 - 40 8,656 65,965 1,070 3.58% 2006 - 4,255 4,589 - - 8,844 64,186 1,010 3.30% 2007 - 3,537 4,866 - - 8,403 59,476 929 2.94% 2008 - 2,790 6,865 - - 9,655 59,038 898 2.87% 2009 - 2,350 11,254 - - 13,604 65,793 995 3.31% 2010 - 1,890 11,285 - 13,175 67,420 1,015 3.40% 2011 - 1,405 12,610 - - 14,015 67,477 1,064 3.37% Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. (1) See Table 13 for additional population statistics. (2) See Table 5 for additional information on net taxable value. (3) Includes general bonded debt, other governmental activities debt, and business -type activities debt. HE CITY OF NORTH RICHLAND HILLS, TEXAS Computation of Direct and Overlapping Debt September 30, 2011 (unaudited) Jurisdiction City of North Richland Hills Birdville Independent School District Hurst-Euless-Bedford Independent School District Keller Independent School District Tarrant County Tarrant County Hospital District Tarrant County College District Total overlapping debt Total direct and overlapping debt Table 10 Source: First Southwest and respective entities' records. (1) Less - self- supporting debt (2) First Southwest - "Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valorem tax debt ( "Tax Debt') was developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may have issued additional Tax Debt since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of additional Tax Debt, the amount of which cannot be determined." 113 Percentage Amount Net bonded applicable to applicable to debt City of North City of North outstanding Richland Hills (2) Richland Hills $ 41,423,265 (1) 100.00 % $ 41,423,265 227,199,567 44.47 % 101,035,647 323,966, 880 0.08% 259,174 712,856,753 4.28 % 30,510,269 354,050,000 2.88% 10,196,640 27,160, 000 2.88% 782,208 29,780,000 2.88 % 857,664 143,641,602 185,064,867 Source: First Southwest and respective entities' records. (1) Less - self- supporting debt (2) First Southwest - "Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valorem tax debt ( "Tax Debt') was developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may have issued additional Tax Debt since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of additional Tax Debt, the amount of which cannot be determined." 113 CITY OF NORTH RICHLAND HILLS, TEXAS Table 11 Computation of Legal Debt Margin September 30, 2011 (unaudited) Article XI, Section 5 of the State of Texas Constitution states in part: "...no tax for any purpose shall ever be lawful for any one year, which shall exceed two and one -half percent of the taxable property of such city." As a home rule city, the City of North Richland Hills is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation bonds. The tax rate for fiscal 2011 was established at $.57 per $100 of assessed valuation based on 100% of appraised value. 114 CITY OF NORTH R'ICHLAND HILLS, TEXAS Pledged Revenue Coverage Last Ten Fiscal Years (unaudited) Table 12 Coverage 2.06 1.96 1.77 1.51 1.44 1.63 1.34 0.98 1.05 0.80 (3) (1) Includes interest and fiscal agent charges. (2) 2009 current expenditures totaling $4,090,209 found in the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances for Nonmajor Governmental Funds includes a one time TiF transfer of $1.1 M for the Recreation Center project. For purposes of pledged revenue coverage current expenditures have been reduced by this amount. (3) The Reserve balance is in compliance with the bond covenant as of 9/30/2011. 115 Park and Recreation Facilities Development Sales Tax Revenue Bonds Fiscal Sales Tax Less: Current Net revenue Debt Service Year Revenues Expenditures Available Principal Interest Total (1) 2002 $ 4,138,848 $ 1,743,899 $ 2,394,949 $ 695,000 $ 469,158 $ 1,164,158 2003 4,041,388 1,780,254 2,261,134 725,000 429,635 1,154,635 2004 4,107,934 2,064,928 2,043,006 760,000 391,045 1,151,045 2005 3,855,727 2,130,866 1,724,861 795,000 348,170 1,143,170 2006 4,047,737 2,411,932 1,635,805 825,000 312,553 1,137,553 2007 4,284,040 2,426,805 1,857,235 860,000 278,083 1,138,083 2008 4,410,260 2,824,368 1,585,892 890,000 291,953 1,181,953 2009 4,077,162 2,990,209 (2) 1,086,953 920,000 187,763 1,107,763 2010 4,211,692 3,027,159 1,184,533 960,000 167,000 1,127,000 2011 4,179,388 3,284,467 894,921 995,000 123,349 1,118,349 Table 12 Coverage 2.06 1.96 1.77 1.51 1.44 1.63 1.34 0.98 1.05 0.80 (3) (1) Includes interest and fiscal agent charges. (2) 2009 current expenditures totaling $4,090,209 found in the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances for Nonmajor Governmental Funds includes a one time TiF transfer of $1.1 M for the Recreation Center project. For purposes of pledged revenue coverage current expenditures have been reduced by this amount. (3) The Reserve balance is in compliance with the bond covenant as of 9/30/2011. 115 CITY OF NORTH RICHLAN❑ HILLS, TEXAS Demographic Statistics Last Ten Fiscal Years (unaudited) Table 13 Sources: (1) Birdville Independent School District (2) North Central Texas Council of Governments and City estimates (3) Bureau of Census, Department of Commerce (1998 -2002) (4) Texas Employment Commission (5) Ha Rom Richland Cha m be r of Corn merce (1998 -2007) (6) Includes Nort h Richland Hills students only (7) ESRI Business Information Solutions, Inc (2003 -2011) (8) Starting in 2003, reported as a percentage of residents with a high school diploma or greater (9) Population was adjusted based on census. 116 School Fiscal Estimated Median Per capita Median Education enrollment Unemployment Year population (2) income (3) (7) income (3) (7) age (3) (7) level (5) (8) (1) (6) rate (4) 2002 58,627 $ 55,706 $ 25,387 34.4 13 10,193 3.7 2003 59,800 61,442 28,616 33.5 90% 10,562 4.1 2004 60,400 63,146 29,393 353 90% 10,651 4.0 2005 61,668 65,421 29,881 35.6 90% 10,873 4.4 2008 63,521 66,215 30,641 35.8 90% 10,827 4.1 2007 64,050 67,951 31,558 35.9 90% 10,724 3.8 (7) 2008 65,750 69,669 31,278 35.6 91% 10,972 4.7 2009 66,100 67,850 30,084 35.6 91% (7) 11,179 5.5 2010 66,400 68,082 29,882 35.6 91% (7) 11,431 6.9 2011 63,420 (9) 63,594 31,615 38 91% (7) 11,615 7.3 Sources: (1) Birdville Independent School District (2) North Central Texas Council of Governments and City estimates (3) Bureau of Census, Department of Commerce (1998 -2002) (4) Texas Employment Commission (5) Ha Rom Richland Cha m be r of Corn merce (1998 -2007) (6) Includes Nort h Richland Hills students only (7) ESRI Business Information Solutions, Inc (2003 -2011) (8) Starting in 2003, reported as a percentage of residents with a high school diploma or greater (9) Population was adjusted based on census. 116 CITY OF NORTH RICHLAND HILLS, TEXAS Principal Employers (unaudited) Year Ended September 30, 2011 Employer Employees Rank Birdville ISD Santander Consumer USA, Inc. Wal -Mart Supercenters North Hills Hospital HealthMarkets City of North Richland Hills Tarrant County College - NE Campus ATI Career Training Center Tyson Prepared Foods Con -Way Freight, Inc. 1,160 1,100 872 786 650 506 455 419 398 293 6,639 Year Ended September 30, 2002 Employer Employees Rank 1,095 767 700 686 615 563 470 378 300 285 5,859 Birdville ISD North Hills Hospital Mega Life & Health Insurance Kimberly ClarkfTecnol Division TCC - NE Campus City of North Richland Hills Wal -Mart Richland Business Centre KPR Foods/Tyson Five Star Ford Number denotes employees working in schools in the City of NRH 2 Split with Hurst 3 Actual number of employees employed at time of reporting * Source: City records Table 14 Percentage of total City employment* 1 3.38% 2 3.20% 3 2.54 % 4 2.29% 5 1.89% 6 1.47% 7 1.33% 8 1.22% 9 1.16% 10 0.85% 19.34% Percentage of total City employment* 1 4.90% 2 3.43% 3 3.13% 4 3.07% 5 2.75% 6 2.52 % 7 2.10% 8 1.69% 9 1.34% 10 1.28% 26.24% INVA This page intentionally left blank. 118 CITY OF NORTH RICHLAND HILLS, TEXAS Full -time Equivalent Municipal Employees by Function /Program Last Ten Fiscal Years (unaudited) Fiscal Year 2011 2010 2009 2008 2007 2006 2005 2004 2663 2002 General government Administration 4.70 3.70 4.75 5.25 5.25 5.25 5.25 5.25 5.75 5.75 Public information 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Judicial 15.00 15.50 15.50 1 6.50 14.00 14.00 14.00 14.00 14.00 14.00 Finance 23.00 23.00 23.50 23.50 23.50 24.50 24.50 24.50 24.50 24.50 Non departmental 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Human resources 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Planning and inspections 8.30 9.30 11.30 11.30 12.30 11.30 11.30 11.50 15.50 16.50 Neighborhood services 18.75 18.75 19.75 18.75 18.75 18.66 18.6E 18.66 14.66 14.66 Budget and research 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Public relations 3.75 6.75 8.75 6.75 7.19 7.19 7.19 7.19 7.19 7.19 Total general government 82.50 87.00 91.55 92.05 90.99 90.90 90.90 91.10 91.60 92.60 Public safety Police 165.20 164.22 165.22 164.65 159.65 159.65 159.39 161.39 161.39 161.39 Fire 8800 91.00 9100 91.00 92.00 92.00 92.00 87.00 8700 87.00 Total public safety 253.20 255.22 256.22 255.65 251.65 251.65 251.39 248.39 248.39 248.39 Culture and recreation Parks and recreation 12.1.53 118.76 118.90 120.22 120.30 114.94 115.10 116.10 116.19 114.29 Library 28.58 28.16 28.16 28.16 23.33 23,33 23.33 23,33 23.33 23.33 Economic development 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 Total culture and recreation 153.11 149.92 150.0E 151.38 146.63 141.27 141.43 142.43 142.52 139.62 Public works 77.68 78.68 79.68 80.18 79.18 78.18 78.18 79.98 80.48 80.48 Internal services Building services 16.2.3 16.36 16,36 15,86 14.2.3 14.2.3 14.2.3 14.2.3 14.2.3 14.2.3 Equipment services 13,00 13,50 11.65 11.65 11.65 11.65 11.65 11.65 11.65 11.65 Self- insurance 5.10 5.10 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Information services 11.00 11.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00 Total internal services 45.33 45.9E 46,01 45.51 43.88 43.88 43.88 43.88 44.88 44.88 Total full -time equivalents 611.82 616.77 62.3.52 624.77 612.33 603.88 603.78 605.78 607.87 605.97 Source: City operating budget Table 15 am CITY OF NORTH RICHLAND HILLS, TEXAS Table 16 Operating Indicators by Function /Program Last Ten Fiscal Years (unaudited) Source: City records (1) unavailable data is reflected as " -" on the report- (2) Excludes traffic violations (3) Course closed from July 1 st to September 15th, 2006 for renovations - (4) Cubic feet (5) Method of calculation was changed by Police Department (6) Overlay was moved into the 2008 -2009 Budget Year because Public Works was assessing program options_ (7) Library closed from March 20th to April 19th, 2008 in order to move to new location_ (8) Loan period changed from 2 weeks to 3 weeks_ (9) FY 2009 -2010 calculated on a Fiscal Year basis and additional call types now being tracked. (10) Reported from the National Incident -Based Reporting System annual report_ (11) Decline in reponse time is due to in -town traffic increasing because of the Hwy 820 expansion causing a longer drive time - (12) Re inspections are down due to corrected violations- 120 Fiscal Year 2011 2010 2009 2008 General government Planning and Inspections Construction Commercial units 24 47 41 51 Commercial value $ 3,489,824 $ 4,578,000 $ 3,790,657 $ 7,907,730 Residential units 122 66 55 116 Residential value $ 27,218,868 $ 14,289,559 $ 13,295,377 $ 31,498,499 Public safety Police Law violations (2) 3,574 (10) 4,071 4,270 4,289 Part one offenses 2,075 (10) 3,452 3,190 3,458 Traffic violations 20,733 24,747 25,111 28,899 Calls for service 137,243 137,645 (9) 123 124,212 Case clearance % 42% 40% 41% 41% Fire Total responses 6,850 6,555 6,551 6,929 Fire responses 1,762 1,371 1,617 1,843 EMS responses 5,088 5,184 4,934 5,086 % responses < 5 minutes 51% (11) 73% 73% 72% Total inspections 2,005 (12) 2,169 2,308 2,412 Culture and recreation Parks and recreation Water park admissions 270,845 242,554 231,379 233,654 Golf rounds played 51,264 47,594 54,373 56,192 Library Number of volumes 200,982 196,042 192,044 180,737 Annual circulation 840,667 828,889 764,195 606,639 (7) (8) Annual loans per capita 13 -26 12.48 11.56 9.23 (7) Public works Water Avg daily consumption (4) 1,521,220 1,205,104 1,213,697 1,317,622 Peak daily consumption (4) 3,091,043 2,627,674 2,751,337 2,963,770 Streets Street overlay - miles 6 4 5 2 (6) Concrete pavement repair - sq_ ft_ 9,372 16,163 12,655 4,404 (6) Pothole repair - sq- ft- 3,974 6,786 4,303 5,499 (6) Street cut - sq- ft_ 162,577 193,400 162,446 121,809 (6) Sign fabrication 935 953 1,119 1,455 Source: City records (1) unavailable data is reflected as " -" on the report- (2) Excludes traffic violations (3) Course closed from July 1 st to September 15th, 2006 for renovations - (4) Cubic feet (5) Method of calculation was changed by Police Department (6) Overlay was moved into the 2008 -2009 Budget Year because Public Works was assessing program options_ (7) Library closed from March 20th to April 19th, 2008 in order to move to new location_ (8) Loan period changed from 2 weeks to 3 weeks_ (9) FY 2009 -2010 calculated on a Fiscal Year basis and additional call types now being tracked. (10) Reported from the National Incident -Based Reporting System annual report_ (11) Decline in reponse time is due to in -town traffic increasing because of the Hwy 820 expansion causing a longer drive time - (12) Re inspections are down due to corrected violations- 120 Table 16 2007 2006 2005 2004 2003 2002 56 40 29 47 59 43 $ 15,D83,593 $ 53,708,815 $ 14,139,519 $ 27,210,050 $ 14 $ 34,989,928 235 382 42D 31D 292 277 $ 54,190,911 $ 79,332,989 $ 77,631,113 $ 53,937,035 $ 47,548,847 $ 40,133,683 3,403 4,694 4,767 3,764 4,141 4,214 3,216 3,318 2,911 3,312 3,363 3,461 2D,010 22,124 22,810 21,317 28,729 26,638 103,137 107,096 (5) 114,058 116,877 118,427 118,992 36% 37% 37% 37% 39% 38% 6,749 5,770 5,570 6,992 6,824 5,665 1,651 1,633 1,438 1,696 1,682 1,672 5,098 4,137 4,132 5,296 5,142 3,993 72% 73% 73% 72% 74% 74% 2,OD7 2,033 1,946 1,D2D 1,169 521 248,205 26D,869 250,682 213,285 228,992 266,655 48,838 39,6D3 (3) 50,187 52,176 50,368 50,663 177,270 179,366 176,719 170,849 162,020 148,238 66D,627 697,013 696,954 723,206 731,499 671,955 1031 1097 113D 1197 847 1146 1,178,439 1,397,254 1,264,837 1,131,712 1,190,464 1,165,894 2,449,372 2,701,738 2,787,834 2,400,668 2,976,738 2,576,385 8 9 11 8 8 6 14,694 9,485 5,474 1,779 4,471 2,142 10,480 8,738 12,969 15,282 11,322 12,632 156,141 179,703 151,706 231,462 210,232 166,131 2,040 1,795 1,556 2,389 3,331 1,280 121 CITY OF NORTH RICHLAN© HILLS, TEXAS Capital Asset Statistics by FunctionlProgram Last Ten Fiscal Years (unaudited) Fiscal Year 2011 2010 2009 2008 Public safety Police Stations 1 1 1 Fire Stations 4 4 4 Fire hydrants 2,125 2,139 2,100 (4) Culture and recreation Parks and recreation Parks 33 (6) 32 32 Park acreage 709 (6) 708 708 (3) Playgrounds 20 20 20 Trails - miles 21 (7) 20 20 Golf Courses 1 1 1 Recreations centers 1 1 1 Athletic fields 53 53 53 Senior centers 2 2 2 Library Libraries 1 1 1 Public works Water mains - miles 346 356 341 (4) Water connections 20,522 20,420 20,302 Wastewater fines - miles 288 288 285 (4) Wastewater connections 19,240 19,141 19,068 (5) Storm drain - miles 139 139 139 Streets - miles 238 237 235 Street lights 2,540 2,531 2,525 Source: City records Unavailable data is reflected as " -" on the report. (1) Subtracted Thomas Acres (BISD property no longer maintaining) (2) Oncor performed a city-wide audit of streetlights in 2006. Subsequent years' counts are based on Oncor billings. (3) Acquisition of easements for Little Bear Creek trail. (4) Department implemented a complete inventory system in 2009 that will provide more accurate counts. (5) Indicates active accounts. Source: NRH 'Utility Customer Service Department. (6) Adjusted to include Stormy Plaza completed in 2010- (7) Added Randy Moresi Trail in 2011. 1 4 2,119 32 706 20 20 1 1 53 2 1 356 20,282 245 19,053 138 234 2,518 Table 17 IWA Table 17 2007 2005 2005 2004 2003 2002 1 1 1 1 1 1 4 4 4 4 4 4 2,077 1,900 1,850 1,840 1,830 1,775 32 31 27 25 24 18 706 (1) 741 720 720 701 675 20 21 17 18 18 13 20 15 12 11 7 6 1 1 1 1 1 1 1 1 1 1 1 1 53 (1) 59 58 57 57 47 2 2 2 2 2 2 1 1 1 1 1 1 354 342 341 341 334 325 20,516 19,784 19,356 18,977 18,611 18,329 244 234 233 233 229 224 19,350 18,618 18,257 17,898 17,588 17,020 137 135 133 133 131 129 232 227 225 221 214 212 2,513 2,431 (2) 2,062 2,023 2,012 2,100 123 This page intentionally left blank. 124 M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. F.2 PU 2.012 -012 Award a contract to Dunaway Associates, L.P., in the amount of $52,100 for Professional Services for the Adventure World Playground Renovation Project (RFQ 12 -008) Presenter: Vickie Loftice Summary: The approved Parks & Recreation Capital Improvement Program for FY2011 -2012 includes funding for engineering, design and construction administration services related to the renovation of the Adventure World Playground in Cross Timbers Park (PK1201). A contract has been negotiated with Dunaway Associates in the amount of $52,100 which includes survey work, design services, construction procurement services, reimbursable expenses and contract administration and observation. General Description: Request for Qualifications (RFQ) were sought for the necessary professional services related to the project. The requests were sent out to various landscape architectural firms that specialize in park and playground development. The project was also advertised in the Fort Worth Star - Telegram and posted on the City's website. Eleven proposals were received from: • Dunaway Associates • Halff Associates • DFL Group • Huitt Zollars • La Terra Studios • Schrickel, Rollins and Associates • Coltrane, Fernandez, Zavala Group • Mesa • M2L Associates • Lanarc Design • Cornerstone Design Group In accordance with the professional services procurement policy, a selection committee reviewed and evaluated the RFQ's. The committee was comprised of staff members from Parks & Recreation, Public Works, the City Manager's Office and Building Services. After review of the 11 proposals, the committee selected three firms to interview. The firms were selected based on experience with park renovation projects, accessibility and inclusive design, public input process, innovation, qualifications of project team members, references and technical understanding of the project. The three firms interviewed include: • Dunaway Associates • The DFL Group • Huitt Zollars The committee, after thorough discussion, selected Dunaway Associates. Dunaway Associates was established over 50 years ago and has a strong history in the metroplex of creative solutions in park planning and design. Their team presentation was highly effective with detailed information provided so that the consultant committee could gain a good understanding of their related experience and approach to the project. A majority of the work they do is in the public sector so they have a clear understanding of the importance of stakeholder input. The Dunaway project team has completed many park projects of various types including Harriet Creek Ranch Park in Fort Worth, Post Oak Park in Flower Mound, Arcadia Park in Fort Worth, Gallegos Park in Frisco, Lake Cliff Park in Dallas, and the filature Refuge Center at the Fort Worth Zoo. Over the years, Dunaway's team members have been recognized for award - winning park planning and design projects. Dunaway Associates will be working closely with "Shane's Inspiration ", a non - profit organization that specializes in inclusive playground design and programs that unite children of all abilities. Services for "Shane's Inspiration" will be provided through a grant to the Parks and Recreation Department. The organization will assist with project development guidance and design as it relates to accessibility and inclusive play. They will also assist with the public input process and fundraising efforts for additional playground amenities beyond what is provided in the budget. Recommendation: Award a contract to Dunaway Associates, L.P., in the amount of $52,100 for Professional Services for the Adventure World Playground Renovation Project AGREEMENT FOR PROFESSIONAL SERVICES Adventure World Playground Renovation This AGREEMENT is made and entered into this day of 2012, by and between THE CITY OF NORTH RICHLAND HILLS, hereinafter called the OWNER, and DUNAWAY ASSOCIATES, L.P., hereinafter called the CONSULTANT. RECITALS This AGREEMENT is applicable to the furnishing of Basic Professional Services by the CONSULTANT to the OWNER for the landscape architectural services for Adventure World Playground Renovation hereinafter called the PROJECT. CONTRACTUAL UNDERTAKINGS SECTION EMPLOYMENT OF CONSULTANT The OWNER agrees to employ the CONSULTANT and the CONSULTANT agrees to furnish the Basic Professional Services in connection with the PROJECT as stated in Section 11 following, and for having rendered such services the OWNER agrees to pay to the CONSULTANT compensation as stated in Section VI following. SECTION II CHARACTER AND EXTENT OF SERVICES The BASIC PROFESSIONAL SERVICES to be rendered by CONSULTANT, include and are limited to the following: (Refer to the project specific SCOPE OF SERVICES; items provided on pages 1 - 5 outlined in Attachment "A ".) The SPECIAL PROFESSIONAL SERVICES to be rendered by the CONSULTANT, include and are limited to the following: (None — All work included in BASIC PROFESSIONAL SERVICES.) SECTION III AUTHORIZATION OF SERVICES No professional services of any nature shall be undertaken by the CONSULTANT under this AGREEMENT until he has received written authorization from the OWNER which is to include any additional service after execution of this agreement. SECTION IV PERIOD OF SERVICE This AGREEMENT shall be effective upon execution by the OWNER and the CONSULTANT, and shall remain in force until terminated under the provisions hereinafter provided in Section X. SECTION V COORDINATION WITH THE OWNER The CONSULTANT shall hold periodic conferences with the OWNER, or its representatives in accordance with the Basic Services, to the end that the project shall have full benefit of the OWNER'S EXPERIENCE AND KNOWLEDGE OF EXISTING NEEDS AND FACILITIES, AND BE CONSISTENT WITH ITS CURRENT POLICIES AND CONSTRUCTION STANDARDS. To implement this coordination, the OWNER shall make available to the CONSULTANT for use in planning the project, all existing plans, maps, field notes, statistics, computations and other data in his possession relative to existing facilities and to the project without additional cost to the CONSULTANT, and upon which the CONSULTANT may rely. Page 1 SECTION VI THE CONSULTANT'S COMPENSATION For and in consideration of the Basic Professional Services to be rendered by the CONSULTANT, as cited in Section II above, the OWNER shall pay and the CONSULTANT shall receive the compensation hereinafter set forth: BASIC PROFESSIONAL SERVICES Compensation for the Basic Professional Services shall be as shown in Attachment "A" Payment for the Basic Professional Services shall be due in monthly installments in proportion to that part of the assignment that has been completed. Such payment shall be based on the CONSULTANT'S estimate of percentage of assignment completion, as evidenced by monthly statements submitted by the CONSULTANT to the OWNER. Final payment for services authorized herein shall be due at the completion of these services. 2. SPECIAL CONSULTANT SERVICES None — All work included in BASIC PROFESSIONAL SERVICES. 3. ADDITIONAL SERVICES Services other than those set forth in the Scope of Services shall constitute Additional Services. Additional Services, such as additional design work or other services other than those included in the Scope of Services, or any others, shall be performed only with OWNER'S authorization in writing signed by owner's authorized representative, and shall be derived the same as Basic Professional Services. Additional Services will be in addition to the total amount in sub- paragraph 4 below. Additional services will be provided for a mutually agreed upon sum. No payments will be due as additional services unless authorized in writing by execution of a supplement to this agreement by The City Manager of North Richland Hills. 4. TOTAL COMPENSATION Total compensation to the CONSULTANT shall not exceed $49,600, and reimbursable expenses not to exceed ($2,500), for a total amount not to exceed $52,100 without additional negotiation and authorization. The compensation for Engineering Services stated does not include sales tax. If the State of Texas imposes a sales tax on landscape architectural services during the time of this contract, then the Owner agrees to pay the sales tax as an extra payment, above and beyond the agreed compensation for basic professional services. SECTION VII REVISION OF REPORTS, PLANS, SPECIFICATIONS AND OTHER DOCUMENTS The revision and redrafting of reports, plans, specifications and other documents during the formative stages as an orderly process in the development of the project to meet the needs of the OWNER shall be considered as part of the Basic Professional Services; however after a definite plan has been approved by the OWNER, if a decision is subsequently made by the OWNER, which, for its proper execution involves extra services and expenses for changes in, or additions to the drawings, specifications or other documents, or if the CONSULTANT incurs extra labor cost or expenses due to delays imposed on him from causes not within his control, the CONSULTANT shall be compensated for such extra expense which shall be considered as Additional Services. The CONSULTANT is responsible for notifying the OWNER as soon as possible if this circumstance arises. Page 2 SECTION VIII OWNERSHIP OF DOCUMENTS Original documents, plans, design and survey notes represent the product of training, experience, and professional skill, and accordingly belong to, and remain the property of the CONSULTANT who produced them, and the OWNER regardless of whether the instruments were copyrighted or whether the project for which they were prepared is executed. SECTION IX COMPLETION SCHEDULE From the date the Notice to Proceed is issued, the CONSULTANT agrees to complete the work described in Attachment A within ten consecutive months, excluding the construction observation phase. SECTION X TERMINATION Either party to this AGREEMENT may terminate the AGREEMENT by giving to the other 30 days notice in writing. Upon delivery of such notice by the OWNER to the CONSULTANT, the CONSULTANT shall discontinue all services in connection with the performance of this AGREEMENT and shall proceed to cancel promptly all existing orders and contracts insofar as such orders or contracts are chargeable to this AGREEMENT. As soon as practicable after receipt of notice of termination, the CONSULTANT shall submit a statement, showing in detail the services performed under this AGREEMENT to the date of termination. The OWNER shall then pay the CONSULTANT promptly that proportion of the prescribed charges which the services actually performed under this AGREEMENT bear to the total services called for under this AGREEMENT less such payments on account of the charges as have been previously made. Copies of all completed or partially completed designs, plans and reports prepared under this AGREEMENT shall be delivered to the OWNER when and if this AGREEMENT IS TERMINATED, but subject to the restrictions, as to their use, as set forth in Section VIII. SECTION XI LIABILITY The CONSULTANT agrees to indemnify, and hold City whole and harmless against any and all claims for damages, costs, and expenses of persons or property that may arise out of, or be occasioned by, or from any negligent act, error or omission of CONSULTANT, or an agent, servant, or employee of CONSULTANT in the execution or performance of this Contract, without regard to whether such persons are under the direction of City agents or employees. The CONSULTANT agrees to carry errors and omissions type of professional liability insurance policy and will fumish the OWNER a certificate of insurance for the OWNER'S file. SECTION XII SUCCESSORS AND ASSIGNMENTS The OWNER and the CONSULTANT each binds himself and his successors, executors, administrators and assigns to any other party of this AGREEMENT and to the successors, executors, administrators, and assigns of such other party, in respect to all covenants of this AGREEMENT. Except as above, neither the OWNER nor the CONSULTANT shall assign, sublet or transfer his interest in this AGREEMENT without the written consent of the other. Nothing herein shall be constituted as creating any personal liability on the part of any officer or agent of any public body, which may be a party thereto. Page 3 SECTION XIII SPECIAL CONDITIONS Special conditions, under the AGREEMENT, include and are limited to those listed hereinafter; the conditions shall become part of the AGREEMENT: Other provisions contained in the written "Authorization of Services ", issued by the OWNER, under Section III, and accepted by the CONSULTANT, shall become part of the AGREEMENT. EXECUTED in three counterparts (each of which is an original) on behalf of CONSULTANTS by their authorized contract representatives, as shown below, and on behalf of the OWNER by its CITY MANAGER (thereunto duly authorized) this day of 2012. CITY OF NORTH RICHLAND HILLS, TEXAS By: MARK HINDMAN, CITY MANAGER DUNAWAY ASSOCIATES, L.P. By: LARRY O'FLINN, PRINCIPAL ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM: George Staples, City Attorney ATTEST: Page 4 ATTACHMENT "A" PROPOSAL FOR PROFESSIONAL SERVICES FOR ADVENTURE WORLD PLAYGROUND RENOVATION North Richland Hills, Texas February 23, 2012 I. PROJECT DESCRIPTION Dunaway Associates, E.P. ( "Dunaway ") will perform professional design services for the City of North Richland Hills ( "City ") for the renovation of the Adventure World Playground in Cross Timbers Park. This scope of services includes professional surveying, landscape architectural, and engineering design services. Dunaway has prepared this proposal based upon a meeting with City staff on February 13, 2012, in which staff outlined the goals for the project and the general steps for Dunaway's work, as well as a follow -up phone conference on February 22, 2012. This scope of services and fee schedule is based upon an approximate construction budget of $490,000.00 as identified by the City during the meeting. II. SCOPE OF SERVICES A. Topographic Survey Dunaway will provide a Topographic Survey of the existing Adventure World Playground and extended area as outlined on the attached "Exhibit A ". This area totals approximately 6.5 acres. 1 -foot interval contours will be developed based upon the results of the measurements taken. Visible improvements, surface features, trees greater than 6-inches DBH, and existing visible, above- ground, utility facilities situated within this defined area will be located and depicted on the face of the survey. The vertical datum upon which the elevations are based will be a local City of North Richland Hills Datum, unless directed otherwise. The horizontal datum for this survey will be NAD83, Texas North Central Zone, 4202 (State Plane Coordinates).. Page 1 of 8 B. Base Map Preparation & Site Analysis 1. Dunaway will utilize the new topographic survey as a basis for the existing site conditions. The City will also provide Dunaway any additional information required to perform this Scope of Services for on -site and off -site conditions including, but not limited to: above and below ground utilities; site features; easements; property boundaries; roadways; wooded/vegetated areas; soils /geotechnical information; hydrology /drainage information, etc. 2. Based upon the new survey and additional information provided by the City, Dunaway will prepare an existing conditions base map(s) for use in the master planning process. 3. Dunaway will attend one (1) kick -off meeting with City representatives to discuss the project goals, possible program, public involvement steps, and overall project schedule. 4. While meeting with City representatives on item B.3, Dunaway will then conduct a site review with City representatives to visually evaluate the existing playground, site features, and extended wooded areas to the east. The site will be documented photographically for use in planning studies and work sessions with City staff. 5. Dunaway will prepare Site Analysis exhibits documenting the primary opportunities and constraints of the existing site and extended natural areas. 6. Dunaway will participate in one (1) conference call with City representatives to discuss Site Analysis exhibits, as well as potential progr thoughts for the playground renovation. C. Programming & Concept Development 1. Dunaway will attend one (1) stakeholder meeting during the day with interested groups to solicit programming goals and ideas for the park renovation. That same evening, Dunaway will attend one (1) Public Meeting to do the same with the Page 2 of 8 community at large. City staff will be responsible for recruiting and advertising the stakeholder meeting and Public Meeting. 2. Based on the input received from the programming sessions, Dunaway will prepare a preliminary document that summarizes the City's goals and program priorities for park renovation. 3. Based on the City approved program priorities, Dunaway will prepare conceptual studies for the potential renovation of Adventure World Playground and the extended site areas. Dunaway will also prepare preliminary cost budget projections for the primary program items depicted in the conceptual studies. 4. Dunaway will attend one (1) meeting with City representatives to present the conceptual studies and preliminary cost budget projections. During this meeting, a consensus plan will be agreed upon which satisfies the program goals of the City. 5. Based upon the input received at the Public Meeting, City staff will give Dunaway a final list of park renovation program items to be included in the final design and construction document phase. 6. Dunaway will attend one (1) Public Meeting with City representatives to present the conceptual park design. D. Design Development 1. Based on the City provided list of program items that stay within the City's designated budget of $490,400.00, Dunaway will prepare Design Development drawings for the proposed park renovation. 2. The City will provide Dunaway all front end documents, contracts, insurance requirements, general conditions, etc. for us by Dunaway in preparing the specifications and contract documents. 3. Dunaway will prepare a preliminary Table of Contents for the specifications and contract documents, as well updated preliminary cost budget projections. Page 3 of 8 4. Dunaway will submit the Design Development drawings, Table of Contents for the specifications and contract documents, and updated preliminary cost budget projections to the City for review. 5. The City will provide in writing all review comments for the Design Development submittal. Dunaway will obtain these comments and approval from the City prior to proceeding into the final construction documents. E. Construction Documents 1. Based upon comments and approval from the City, Dunaway will prepare final Construction Documents at an approximate 95'% level of completion. 2. Based upon the 95% Construction Documents, Dunaway will prepare a final cost estimate for the proposed park improvements. 3. Dunaway will submit the 95% Construction Documents and cost estimate to the City for final review and continents. The City will provide in writing all revisions requested to the final Construction Documents. 4. Based upon the final written comments received from the City, Dunaway will prepare final 100% Construction Documents for the City to utilize in bidding the proj ect. 5. Dunaway will submit the Construction Documents to the Texas Department of Licensing and Regulation (independent reviewer) for the State required accessibility review. All costs associated with this review will be included as a reimbursable expense. F. Bid Phase 1. Dunaway will assist the City by attending one (1) pre -bid meeting with potential bidders. Page 4 of 8 2. Dunaway will assist the City in preparing addenda, if required, during the bid phase. G. Construction Phase 1. Dunaway will assist the City by attending one (1) pre - construction meeting and a maximum of four (4) progress meetings during construction to observe completion of work by the contractor. The City will be responsible for the day - to -day administration of the construction contrast. 2. Dunaway will prepare a written Field Report for each meeting attended during the construction of the project. 3. Dunaway will assist the City in reviewing and approving submittals, shop drawings, requests for interpretation and change orders. The City will require the contractor to use an internet based project management system to facilitate the process for all parties. Page 5 of 8 IILBASIS OF COMPENSATION Dunaway Associates, L.P. proposes to provide the above - described scope of sei vices for a Lump Sum fee of $49,600.00, exclusive of reimbursable expenses. A. Topographic Survey $5,500.00 B. Base Map Preparation & Site Analysis $4,410.00 C. Progr & Concept Development $8,820.00 D. Design Development $11,025.00 E. Construction Documents $15,435.00 F. Bid Phase $882.00 G. Construction Phase $3,528.00 Total Design Services $49,600.00 Reimbursable Expenses (Not -to- Exceed) $2,500.00 TOTAL FEE (Not -to- Exceed) $52,100.00 Reimbursable expenses will be additional to the Professional Services costs. These expenses include, but may not be limited to such items as: reproduction costs, computer plotting, printing, mounting, travel/mileage/tolls, copies, photography, meals, mail/couriers /deliveries, etc. Reimbursable expenses will be paid for at cost tunes a 1.10 multiplier. Page 6 of 8 IV. ADDITIONAL SERVICES Additional services, not included in this Scope of Services, will be negotiated with the City as necessary. Compensation will be based upon either a mutually agreed lump sure fee or on an hourly basis. Items which would be considered Additional Services could include: expanding the limits of topographic survey; boundary survey; design of additional program items beyond the City designated construction budget of $490,000; additional meetings with City staff and/or presentations to groups beyond what has been listed, etc. V. ASSUMPTIONS A. The City has designated a construction budget of approximately $490,000.00 for the parr improvements. Should this construction budget increase, or should the City request additional alternate bid items to be included in the construction document package, Dunaway and the City will reevaluate this Scope of Services and determine the basis of compensation in accordance with revisions to the design services. B. The City will provide as expeditiously as possible all base information, which it currently has in its possession, necessary to complete this Scope of Services described herein. Should additional information be needed by Dunaway, the City will provide this information to Dunaway. ALL INFORMATION PROVIDED BY THE CITY IS ASSUMED TO BE ACCURATE AND COMPLETE, unless indicated otherwise by the City. Any information required to complete this Scope of Services that cannot be readily provided by the City will remain the responsibility of the City. All such information shall be provided to Dunaway and any costs associated with acquisition of information will be borne by the City. C. The City may choose to bring Shane's Inspiration into the project as a specialized stakeholder to provide input for the program involving children's play. Their role would be integrated into this Scope of Services as written and assumes no extra stakeholder meetings or public meetings would be required. D. The City will contract separately for geotechnical services as required for the project. E. This Scope of Services does not include any services associated with preparing an Environmental Impact Statement or Environmental Assessment. F. This Scope of Services does not include any hydraulic or hydrology engineering modeling or design services for the existing drainage channel. Page 7 of 8 G. Dunaway team members will attend the meetings and/or presentations as described within this Scope of Services. Additional meetings, workshops, public hearings, stakeholder meetings, focus groups, or presentations required by the City will be considered as additional services as authorized by the City. H. This Scope of Services does not include any special artist renderings, 3D animations or models, or any special marketing graphics, booklets, flyers, brochures, posters, videos,. etc. 1. The City will pay for all required governmental processing fees, public notice advertising costs, and printing of bid documents /plans for bidding. VI. COST ESTIMATES Any cost estimates provided by Dunaway will be on a basis of experience and judgment, but since it has no control over market conditions of bidding procedures, Dunaway cannot warrant that bids or ultimate construction costs will not vary from these cost estimates. However, Dunaway acknowledges that the City is relying on the cost estimates provided by Dunaway and expects minimal variation from the cost estimates provided. Page 8 of 8 M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. F.3 GN 2012 -025 Rescheduling of the May 28, 2012 City Council Meeting to May 21, 2012 Presenter: Patricia Hutson, City Secretary Summarv: The May 28, 2012 City Council meeting is being rescheduled due to the Memorial Day Holiday. General Descrivtion: The May 28 City Council meeting falls on the Memorial Day holiday. Council is being asked to consider rescheduling the meeting to May 21. The rescheduling of the meeting to May 21 will also allow Council to canvass the May 12 City Council General and Bond Elections in accordance with state law. The Election Code provides that the canvass is to be conducted between the 3` and 11 try day after the election or May 15 to May 23. Setting the meeting for May 21 will provide sufficient time for Tarrant County Elections to complete the election processes that are required to be conducted after Election Day and to provide us with our official results. Recommendation: To reschedule the May 28 City Council meeting to May 21, 2012. M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. G.0 EXECUTIVE SESSION ITEMS M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. H.0 INFORMATION AND REPORTS M RH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject: Agenda Item No. H.1 Announcements - Councilman Whitson Presenter: Councilman David Whitson Announcements ,loin us on Saturday, 'March 31 for North Richland Hills' annual Easter in the Park celebration. This event is scheduled from 10 a.m. to Noon at Green Valley Park, 7701 Smithfield Road. The Easter egg hunt will begin promptly at 10 a.m., so don't be late. For more information, please call at 817- 427 -6600. The grand opening of the new NRH Centre will take place on Saturday, April 14, 2012. This special event will include a ribbon cutting ceremony at 0 a.m., followed by an open house beginning at 10 a.m. and continuing throughout the day. The NRH Centre is located at 6000 Hawk Avenue. For more information, please call 817 -427 -6600. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Tonight we spotlight. Terri Howell and Doug Dunn, Public Works Department - A resident called to thank Terri and Doug for their help in getting a pedestrian crossing signal repaired. She said everyone at the city was very nice. "Thanks from all the parents and walkers of the neighborhood for snaking our walkways safe," she said. M KH COUNCIL MEMORANDUM From: The Office of the City Manager Date: 3 -26 -2012 Subject Agenda Item No. H.2 Adjournment