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HomeMy WebLinkAboutCC 2012-06-11 MinutesMINUTES OF THE MID -YEAR BUDGET WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE NORTH RICHLAND HILLS CITY COUNCIL WORKROOM, 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS, JUNE 11, 2012 — 4:30 P.M. 1. CALL TO ORDER Mayor Trevino called the work session to order at 4:30 p.m. Present: Oscar Trevino Mayor Tom Lombard Mayor Pro Tem, Council, Place 3 Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 Tim Barth Council, Place 4 David Whitson Council, Place 5 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 Vickie Loftice Managing Director Mike Curtis Managing Director Patricia Hutson City Secretary Kristin Weegar Assistant to City Manager Mary Peters Public Information Officer Larry Koonce Director of Finance Mark Mills Budget Director Patrick Hillis Human Resources Director Craig Hulse Economic Development Director Jo Ann Stout Neighborhood Services Director Jennipher Castellanos Budget Analyst Stacy Udoni Public Works Management Assistant 2. DISCUSS ANNUAL BUDGET AND PLAN OF MUNICIPAL SERVICES FOR FY 2011 -2012 AND DISCUSS PLANNING AND PROGRAM OF SERVICES FOR FISCAL YEAR 2012 -2013 City Council Work Session Minutes June 11, 2012 Page 2 of 8 Mr. Mark Hindman, City Manager, made introductory comments. The purpose of the work session is to present some issues to Council and receive input on council priorities prior to the July formal budget process when Council will be asked to make decisions. Mr. Hindman discussed some of the accomplishments during the past year and changes to the local economy since adoption of the 2011/2012 budget. Council was advised that there has been a slight increase in sales taxes and property values are closer to their pre- recession levels. The Building Department is seeing an increase in both residential and commercial building activity and the Economic Development Department is beginning to see an elevated interest in commercial projects. The Loop 820 construction project continues to be a challenge to the current economic picture and as a result, it is anticipated that sales tax will not rebound at the level it might have without the construction. However, once the project is complete it will be a tremendous asset for the City. Mr. Hindman reviewed the guiding principles that were used to develop the 2011/2012 budget. One of the principles was to focus on city goals as expenditures and programs were developed. Council was advised a biannual goal setting review is due and staff plans to proceed with setting one for this winter. Council will contact the City Manager's office with any input they would like to provide regarding the upcoming review. A second principle was to reduce the City's reliance and use of reserve funds that were dipped into when the recession hit. Council was advised that the City was able to contribute some to the reserves this past end of year. A third principle, to hold the line on expenditures, was accomplished with staying within the adoption of a budget that was essentially the same as 2010 -2011. Lastly, the City has been able to maintain its physical and human infrastructure with Council's continuing commitment to street maintenance, maintenance of city facilities, the replacement of equipment and technology equipment. A major step was taken in the area of human infrastructure with the two percent salary increase that went into effect in January. Mr. Hindman updated the Council on the progress towards the achievement of the five programs and projects he presented to Council during last year's budget work session and wanted to see accomplished during the budget year. • City facility needs — This project is being addressed with the approval of the bond election. The next steps will be to recommend a contract with an architect followed by selection of a project manager and a firm to serve as the construction manager. • Use of Food Lion property — This was put on hold when discussion on the relocation of the municipal complex inside of Loop 820 was being considered by the bond committee. It will need to be re- evaluated with the relocation of the municipal complex to inside of Loop 820. • Plans to implement at least one of the suggestions from the Regional Assessment and Opportunity Analysis for Inside Loop 820 — Staff has considered and pursued several options but is not ready to make any recommendations to the Council. • Progress on Boulevard 26 — Significant progress with TxDOT has been made and a contract revision to initiate Boulevard 26 improvements will be presented for Council's consideration at the June 25 meeting. City Council Work Session Minutes June 11, 2012 Page 3 of 8 • Continue progress on improving property conditions — During the regular work session, Council will be briefed on some proposed changes to the nuisance ordinance that will close some loopholes and allow the city to address some of the property condition complaints the City is receiving from its citizens. New technology is also being implemented that will allow Staff to more efficiently monitor and resolve code violations. Council was advised that at the July 27 Budget Work Session Staff will be proposing several questions for Council. Staff will be discussing with Council the need for a tax increase. It is anticipated that there will be a need to increase the debt service tax rate by at least three cents to fund the first phase of the municipal complex debt service. Council was advised that if they did not support a tax increase, Staff will need to start making other adjustments to balance the budget with the project. Council discussed the voters had been informed prior to the May election that a 3 to 4 cent property tax increase would be necessary to help finance the municipal complex project. Council consensus was for Staff to proceed with plans for a three cent tax increase in the 2012/2013 budget and as more information becomes available with the sale of assets and if growth does not occur as anticipated, additional adjustments to the tax rate may need to be made in the future. Mr. Craig Hulse, Director of Economic Development, presented an overview of the regional and local economic outlook. Council was advised North Richland Hills unemployment is at 5.9 percent, which is close to pre- recession levels. Permits are up ten percent and the dollar value of permits is up 70 percent. Taxable sales are slightly up at 2.5% over prior year but as the Loop 820 construction progresses, they are expected to be a lower percentage by year end. The Loop 820 construction is beginning to pose a serious challenge to existing businesses but it is also attracting future businesses. Mr. Hulse discussed the City's taxable property value mix and compared the City's taxable sales with other Northeast Tarrant County cities. Councilman Welch commented that he was hearing talk that in some of the older residential neighborhoods Tarrant Appraisal District (TAD) flip flopped the values for land and improvements and questioned why TAD might be making this adjustment. Staff advised they would check into the change and purpose. Mr. Mark Mills, Budget Director, presented a summary of the 2011/2012 revised revenues and expenditures comparing the 2012 revised preliminary revenue and expenditure projections to the adopted budget. Council was advised the operating budget is seeing an increase primarily due to prior year encumbrances. Revenue and expenditure increases are primarily related to the public safety consolidation. An increase in construction related permits has also contributed to the increase in revenues. City Council Work Session Minutes June 11, 2012 Page 4 of 8 FY 2011 -12 Revised vs. Adopted General Fund FY 2012 Ado ted FY 2012 Revised Difference Revenues Fund Balance $37,752,609 20,000 $40,217,440 20,000 $2,464,831 0 Revenues $37,752,609 $39,287,211 $1,534,602 PY Encumbrances 0 469,281 469,281 Fund Balance 20,000 34,185 $14,185 Total Resources $37,772,609 $39,790,677 $2,018,068 Expenditures $37,664,977 $39,052,435 $1,387,458 PY Encumbrances 0 469,281 469,281 Reserve & Other 50,000 110,650 60,650 Total Commitment $37,714,977 $39,632,366 $1,917,389 Balance $57,632 $158,311 $100,679 Mr. Larry Koonce, Finance Director, discussed the preliminary tax roll released by Tarrant Appraisal District in May, the assumptions being used to prepare the 2012/2013 proposed budget and property tax revenue and its distribution. Mr. Mark Mills, Budget Director, presented an overview of the 2012/2013 preliminary budget. Mr. Mills compared the preliminary revenues and expenditures to the adopted budget. Council was advised the significant changes were due to the public safety consolidation. Projections include an increase in taxes, a decline in fines and forfeitures and licenses and permits are projected to be flat. Overview of P reliminary Revenues and Expenditures to Adopted Budget General Fund FY 2012 Adopted FY 2013 Prelimina Difference Revenues Fund Balance $37,752,609 20,000 $40,217,440 20,000 $2,464,831 0 Total Resources Expenditures Reserve & Ot her $37,772 $ 50,000 $40,237,440 $40,452,288 F 300,000 $2,464,831 $2,787,311 250,000 Total Commitment $37,714,977 $40,752,288 $3,037,311 Balance $57,632 ($514,848) ($572,480) City Council Work Session Minutes June 11, 2012 Page 5 of 8 The preliminary budget is not balanced but will be brought into balance by Management as further review of services is completed. Staff presented Council with information on the following issues: 1) Multi -Year Financing Plan for Voter Approved Bond Projects — Mr. Larry Koonce, Finance Director, presented a financing plan for the voter approved general obligation bonds. Mr. Koonce reviewed the plans to issue the G.O. Debt and compared the pre - election preliminary financing scenarios the plans were based on to current conditions. • Remaining 1994 and 2003 bonds will be issue over next 5 to 7 years — no change • Municipal facilities complex will not exceed $70 million. Management and staff will work to reduce costs during the design, bid and construction. Needed debt financing will be issued over a 3 to 4 year period in order to have the funds as needed — no changes • The financing of the municipal complex would include the issuance of G.O.s for the voter approved $48 million and the $11 million from cash reserves from various sources to finance or pay -go — no change • Taxable property value growth was assumed to be a conservative 1% over several years — Preliminary taxable property values for fiscal year 2013 grew 3% instead of the 1% projected. Staff believes the projections can be revised to the 2% to 2.5% growth range. As a result more property tax revenues are predicted to be available to pay for debt than originally projected. • Voters were informed prior to the election that a 3 to 4 cent property tax rate increase would be necessary to finance the project — no change; Management and Staff are working to propose a tax rate increase of 3 cents for FY 2013. • Interest Rates on bonds issued were estimated to be in the range of 3.25% to 3.50 %. - The City's Financial Advisors are indicating that interest rates on bonds are currently at the 3.25% level. There is no guarantee that the rates will not be higher at the time the bonds are sold in August or future years. The City may want to issue as much as it can afford in the August sale. • The structuring of the debt was left open for the purpose of budgeting for positive cash flows. Historically the City has used a level principal payment structure. Another option is the level debt structure. The two debt structures were explained to Council and an illustration was given of the costs for each. Council was advised that management and staff are reviewing the option of considering the level payment method for at least the first issue of the Municipal Complex G.O.s in August. The structure would be reassessed each year to determine the most beneficial structure. City Council Work Session Minutes June 11, 2012 Page 6 of 8 2) Debt Issuance Policy — Mr. Hindman advised the City has traditionally issued bonds under a competitive sale unless there was some factor that made it advantageous to do a negotiated sale. Staff is looking at formalizing a policy on the issuance of debt. Council was presented a draft policy to review. 3) Regional Consolidation and Communication Services — Jimmy Perdue, Director of Public Safety presented a status report on the consolidation of the detention and emergency communication services for North Richland Hills, Watauga, Haltom City and Richland Hills. The consolidation has been fully implemented. Based on early projections, it was anticipated that the consolidation would save each city at least $200,000 annually. North Richland Hills anticipates approximately $260,000 in savings. During start-up, it was necessary to utilize a portion of these savings for one -time startup expenses. Despite these expenses, a savings of approximately $180,000 is projected for the current fiscal year. Projected savings for fiscal year 2012/2013 is $172,000 when compared to the original stand -alone program. The primary factor contributing to the decrease is a one time expense to be paid to all shared services employees required by the regional supplement agreement. If the payment were not required, the expected savings would remain above the original projection. 4) Human Resource Considerations — Mr. Patrick Hills, Human Resources Director, discussed with Council employee compensation and health insurance. • Employee Compensation • Merit Pay Program - Funds were not available for the City's Merit Pay Program in FY 2010/2011; however, funds were allocated for the City's Attendance and Stability Benefit Program. Funds were allocated in FY 2011/2012 for a 2% merit increase and the City's Attendance and Stability Benefit Programs. For FY 2012/2013 funding for the Merit Pay Program will be a priority but it may be necessary to consider alternatives to the established 4% annual merit increase. A recommendation regarding the continuation of the City's Merit Pay Program will be included in the FY 2012/2013 budget. • Pay Range Adjustments — Last year's compensation survey showed that the economy slowed the salary growth of the market comparison cities. It is anticipated that the market comparison cities will be adjusting employee ranges in FY 2012/2013. A recommendation regarding the pay range adjustment for next fiscal year will be included in the FY 2012/2013 budget. • Health Insurance The City's health plan is performing well and year to date expenditures are under budget. There has been a reduction in the overall cost of large claim losses and it is anticipated the fiscal year will finish under budget. City Council Work Session Minutes June 11, 2012 Page 7 of 8 With the positive claims experience, it is anticipated for FY 2012/2013 that there will not be any design changes to the plan and an overall cost increase of approximately 5% is forecast for the budget and monthly premiums. 5) Animal Adoption and Rescue Center — Chief Perdue presented a plan for the construction of the new Animal Adoption and Rescue Center. Council was advised the current shelter opened in 1987 and in 2002 the City realized that it needed to upgrade the facility. The plan was to combine City funds with private donations to expand and modernize the facility. The original shelter plan in 2002 called for a budget of $3 million for the renovation of the existing 6,747 square foot facility plus constructing 11,342 square feet of new space for a combined facility of 18,089 square feet. Voters approved as part of the 2003 bond election $1.3 million. These bonds were to be combined with funds from the donations account (approximately $535,000) and approximately $1.1 million obtained through a fund raising campaign. During the past 10 years, several different approaches were studied for the new shelter. In 2009 and 2010 staff made presentations to the Council concerning the status of the facility and sought direction to move forward. Staff was advised to continue moving forward and to recommend the best way to construct and fund a new facility. Staff believes a new 10,800 sf facility meets the needs and can be constructed for a maximum budget of $3.4 million. Combined with the donations account an additional $1.25 million will be required to fund a $3.4 million project. While some opportunities still exist for funding through alternative sources, the Council will need to be prepared to fund the difference with City funds until other sources are identified. Staff made the following recommendations on how to proceed: • Construct an all new facility • Build adjacent to existing facility • Set budget at $3.4 million • Utilize existing donation fund account to hire architect • Delay upcoming bond sale for animal shelter scheduled for next month • Identify outside funding sources Council was also advised that if Council desired to move forward with the project, additional personnel will be needed to staff a larger facility. It is anticipated the facility would open in the FY 2014 -15 budget year. A preliminary request has been made for the following new personnel: 1 full -time Kennel Technician 1 full -time Humane Services Technician (clerk) 1 part-time Kennel Technician Council was asked if they agreed with the plan recommended by Staff and approve moving forward. City Council Work Session Minutes June 11, 2012 Page 8 of 8 After a brief discussion by Council, the Council concurred with the recommendations and moving forward with the facility. Mr. Mills reviewed with Council the budget calendar. 3. ADJOURNMENT Mayor Trevino adjourned the work session at 5:54 p.m. APP ED: Oscar evino — Mayor ATTEST: ? ii Ifit i °,'�4pity Secretary MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 — JUNE 11, 2012 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 11 day of June 2012 at 6:00 p.m. in the City Council Workroom prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Tom Lombard Mayor Pro Tern, Council, Place 3 Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 Tim Barth Council, Place 4 David Whitson Council, Place 5 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 & Development Larry Koonce Finance Director Laury Fiorello Assistant Finance Director Amy Stephens Finance Accountant II Eva Ramirez Purchasing Buyer Mike Hamlin Assistant Police Chief Andy Kancel Assistant Police Chief Chris Swartz NRH2O Park Manager Greg VanNieuwenhuize Assistant Public Works Director Stacy Udoni Public Works Management Assistant JoAnn Stout Neighborhood Services Director Debbie York Assistant Neighborhood Services Director Call to Order Mayor Trevino called the work session to order at 6:04 p.m. City Council Minutes June 11, 2012 Page 2 A.0 Discuss Items from Regular City Council Meeting There were no questions from the Council. A.1 Proposed Changes to the Nuisance Ordinance JoAnn Stout, Neighborhood Services Director, presented a PowerPoint presentation with the proposed changes to the Nuisance Ordinance. Highlights include: Three (3) new definitions have been added for clarification: 1. Brush — shall mean scrub vegetation, tree trimmings, shrubs or dense undergrowth. (By adding this definition, it will allow the code officers to require homeowners to maintain under their bushes and trees where there is thick undergrowth). 2. Filth — shall mean any matter in a putrescent state. 3. Rank Profusion — means any vegetation, brush, bush or tree that is allowed to grow in such a manner that it could damage buildings or structures or block ingress and egress or become a rodent harborage. (This definition accompanied with the amended "high grass" section will require all vegetation and undergrowth to be maintained, if it has grown beyond what is reasonable). Under the section of ordinance which identifies "specific nuisances ", staff has added some new sections, but also clarified some exiting nuisances for easier interpretation: 1. Any building, swimming pool, sign or any other structure for which a permit is required by ordinance which is erected, moved, expanded or in any other way altered without first obtaining a permit is a violation. (The code officers currently are referencing the building code.) 2. The act of sweeping, blowing or depositing any trash, brush, paper, grass clipping, rubbish or any other matter onto any public thoroughfare or other public place is a violation. 3. Missing or deteriorated slats must be replaced and consistent with the same material and height, including posts, of existing fence. No fence shall be constructed of sheet/corrugated metal, plywood, unfinished concrete masonry unit block, or materials not manufactured or designed for the primary purpose of fence construction. 4. A person commits an offense if the person places or maintains a clothesline in the front yard or side yard of any residentially zoned property. If the clothesline is located in the side yard it must be screened from public view. 5. A person commits an offense if the person accumulates or allows the accumulation of materials or items stored on rooftops or porches of buildings when visible from the public right -of -way or neighboring property. 6. Permitting brush, bushes, trees or vegetation to grow in rank profusion. City Council Minutes June 11, 2012 Page 3 7. Allowing poison ivy, poison oak or any poisonous plant to grow onto adjacent property or onto public property. 8. Dirt moving or disturbing activities which cause an unreasonable amount of excessive dirt or dust particles to become airborne and travel onto adjacent properties is a violation. When such activity occurs under the auspices of an active building or construction permit, the terms of the permit may be revised or the permit may be revoked until such time that the nuisance is abated. 9. The proposed amendment to the junk vehicle ordinance better clarifies by definition what inoperable, wrecked and dismantled or partially dismantled vehicles are and vehicles not subject to state motor vehicle inspections such as off -road vehicles, race cars, dirt track vehicles, golf carts, watercraft, all- terrain vehicles and aircraft 10. The current ordinance specifies that a violation occurs when grass, weeds or any plant that is not cultivated, is allowed to grow to a greater height than 10 inches on average and will require a property owner to edge the sidewalk and curb line should the grass grown in rank profusion and become a safety issue while walking on the sidewalk or when the grass grows beyond the curb and begins growing into the street.. The proposed amendment will delete the "on average." The purpose for the removal of "on average" is so that any section of yard that has weeds growing above 10 inches and does not equal fifty percent of the yard over 10 inches, but becomes an eyesore, will be required to be mowed. It will also add a section that specifically requires the proper keep of all bushes, trees and vegetation. In drought conditions, or any other hazardous condition, the fire marshal may require any grass, bush, tree or vegetation to be removed. After a brief discussion and questions by the Council, the consensus was to move forward with the changes. 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) Mayor Trevino announced at 6:36 p.m. that the Council would convene into Executive Session as authorized by Chapter 551, Texas Government Code, pursuant to the following section: 1) Section 551.071 to consult with Attorney regarding pending litigation on 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). City Council Minutes June 11, 2012 Page 4 C.0 Adiournment Mayor Trevino announced at 6:43 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 June 11, 2012 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Tom Lombard Tito Rodriguez Rita Wright Oujesky Tim Barth David Whitson Scott Turnage Tim Welch Staff: Mark Hindman Jared Miller Karen Bostic Jimmy Perdue Mike Curtis Vickie Loftice Patricia Hutson Monica Solko George Staples Mayor Mayor Pro Tem, Council, Place 3 Council, Place 1 Council, Place 2 Council, Place 4 Council, Place 5 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 A.1 INVOCATION Councilman Rodriguez gave the invocation. A.2 City Council Minutes June 11, 2012 Page 5 PLEDGE OF ALLEGIANCE Councilman Rodriguez led the pledge of allegiance with help from Nicolas Hayes, Boy Scout Troop 347. A.3 SPECIAL PRESENTATION AND RECOGNITION(S No items for this category. A.4 CITIZENS PRESENTATION None. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.0 APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF MAY 14, 2012 CITY COUNCIL MEETING B.2 APPROVAL OF MINUTES OF MAY 21, 2012 CITY COUNCIL MEETING B.3 GN 2012 -042 CONSIDERATION OF REVISIONS TO LANDSCAPE REGULATIONS — ORDINANCE NO. 3204 COUNCILMAN TURNAGE MOVED TO APPROVE THE CONSENT AGENDA. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. C.0 PUBLIC HEARINGS City Council Minutes June 11, 2012 Page 6 No items for this category. D.0 PLANNING & DEVELOPMENT Items to follow do not require a public hearing. DA SUP 2012 -01 CLARIFICATION OF CITY COUNCIL VOTE FOR A SPECIAL USE PERMIT FOR A GAS DRILLING /PRODUCTION PAD SITE ON PROPERTY DESCRIBED AS LOT 5RA, BLOCK 3, INDUSTRIAL PARK ADDITION; LOCATED ON 2.027 ACRES AT 6401 BROWNING DRIVE - ORDINANCE NO. 3200 APPROVED Mayor Trevino advised that Councilwoman Wright Oujesky's spouse is employed by Chesapeake Energy and would abstain from discussion and voting. An affidavit of disqualification has been completed by Councilwoman Wright Oujesky and filed with the City Secretary stating the nature of the interest was her spouse employed by Chesapeake Energy. John Pitstick, Planning and Development Director, presented the item. The item before Council was approved on the May 14, 2012 Council Meeting but the stipulations recommended by the Planning and Zoning Commission were left off the Ordinance. Staff is requesting Council clarification on the action to approve SUP with the staff recommended stipulations or without the staff recommended stipulations. Staff recommended SUP stipulations: • Maximum number of gas wells is 10. • SUP is restricted to 5 years from the date of approval. • A minimum of a 150 foot setback be established for 7 out of the 10 proposed gas wells to adjacent property lines and public streets. MAYOR PRO TEM LOMBARD MOVED TO APPROVE SUP 2012 -01 REQUEST WITH THE STIPULATIONS THAT THE MAXIMUM NUMBER OF GAS WELLS IS 10, THE SUP IS RESTRICTED TO 5 YEARS FROM THE DATE OF APPROVAL, AND A MINIMUM OF 150 FOOT SETBACK BE ESTABLISHED FOR 7 OUT OF THE 10 PROPOSED GAS WELLS TO ADJACENT PROPERTY LINES AND PUBLIC STREETS. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6 -1 WITH COUNCILWOMAN WRIGHT OUJESKY ABSTAINING. E.0 PUBLIC WORKS City Council Minutes June 11, 2012 Page 7 EA PW 2012 -013 APPROVE THE FIRST AMENDMENT TO THE CITY / DEVELOPER AGREEMENT FOR THE DJ ANDERSON ADDITION, BLOCK 1, LOTS 1 -4 APPROVED Greg VanNieuwenhuize, Assistant Public Works Director, presented the item. The Council is being asked to consider approving an amendment to an existing City /Developer Agreement (CDA) in an effort to facilitate development. The platting of the DJ Anderson Addition (Block 1, Lots 1 -4) was initiated in 2007 because a preschool facility wanted to locate on what is now Lot 4. The Traffic Impact Analysis (TIA) of a preschool on Lot 4 indicated that the traffic volumes generated by such a preschool facility did not warrant the construction of any of the deceleration lanes. The CDA allowed the developer to proceed with a phased development approach, beginning with the construction of a preschool facility on Lot 4. This CDA also provided TxDOT with the assurance that when any further development took place on the remaining three (3) lots within the addition, the City had a mechanism to require the construction of deceleration lane(s). The CDA also provided that the northern driveway would be removed at such time as the property immediately north of the DJ Anderson Addition was developed. Along with the removal of Driveway 2, a new drive approach would be constructed at the signalized intersection. Since the approval of the original CDA and the platting of the DJ Anderson Addition in 2007, the preschool has been constructed and no further development has occurred within this addition. In 2011, the city was approached by an entity interested in developing Lot 2. When made aware of the original CDA, a consultant was hired by the entity to perform a new traffic study analyzing the traffic impacts of the proposed development, which is a proposed 6,000 square foot retail facility. The intent of this new traffic study was to determine whether a deceleration lane was warranted if both the now existing preschool facility and the proposed 6,000 square foot retail facility were located within the addition. This new traffic study was also reviewed by TxDOT, and TxDOT determined that adding this additional 6,000 square foot retail facility within the addition did not generate enough traffic to warrant the construction of any of the deceleration lane(s) at this time. However, TxDOT's postponement of the deceleration lane requirement for Lot 2 was contingent on a limitation to the types of uses within the proposed 6,000 square foot retail facility. The owner of the three (3) remaining undeveloped lots within the addition did not want to limit the sizes or types of potential businesses on Lot 2 of the addition. As such, the owner obtained approval from TxDOT to postpone the deceleration lane for Lot 3, but would construct the deceleration lane for Lot 2 allowing for the unrestricted development of Lot 2. Consequently, the developer will construct a deceleration lane for the northernmost driveway with the development of Lot 2, but no modifications will be made to the driveway on Lot 3 at this time. City Council Minutes June 11, 2012 Page 8 TxDOT representatives have indicated to the city that they can support the currently proposed developments, if the deceleration lane for Lot 2 was constructed now; additionally, TxDOT would allow for the postponement of a deceleration lane for Lot 3. In order to allow for the postponement of the deceleration lane for lot 3 while requiring the construction of the deceleration lane for Lot 2 now, an amendment to the original CDA would need to be approved by the owner, TxDOT and the city. The amendment would allow for a delay of the requirement to construct the deceleration lane for Lot 3, while requiring the deceleration lane for Lot 2. The purpose of the amendment is to allow the current property owners to develop Lot 2 without making alterations to the driveway serving Lot 3. The city's role in this process remains to merely facilitate development of the property by providing assurance to TxDOT that the needed roadway facilities will eventually be constructed. Without a CDA in place, TxDOT would have required the construction of the deceleration lanes for both driveway 2 and driveway 3 when these driveways were originally installed. COUNCILMAN WELCH MOVED TO APPROVE PW 2012 -013; THE FIRST AMENDMENT TO THE CITY /DEVELOPER AGREEMENT FOR THE DJ ANDERSON ADDITION, BLOCK 1, LOTS 1-4. MAYOR PRO TEM LOMBARD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. E.2 PW 2012 -014 APPROVE THE 2012 PREVENTIVE STREET MAINTENANCE PROGRAM APPROVED Councilman Welch, Chair of the CIP Committee, spoke briefly of the presentation given to the committee to determine the 2012 Preventive Street Maintenance Program. Councilman Welch introduced Mike Curtis, Managing Director of Development Services, to give more details on the process. Mr. Curtis presented area maps that outlined the city's detailed street maintenance program and spoke about the streets that are in poor condition, but also places an emphasis on maintenance methods that extend the pavement life of the streets. This year staff is proposing that the city concentrates most of the improvements in two areas of the city. These two areas have a high concentration of streets in need of repair. The two areas this year are: 1. The neighborhoods north of Mid - Cities Boulevard, south of Amundson and east of Davis Boulevard. 2. The second area is north of Loop 820, south (or immediately north) of Emerald Hills Way and east of Davis Boulevard. City Council Minutes June 11, 2012 Page 9 This year in addition to the processes used for asphalt streets, staff is recommending a process that can be used on concrete pavement. Staff has identified sections of Bursey Road and Mid - Cities Boulevard (both are concrete streets) that need maintenance. Staff is recommending that $50,000 from the program go toward sections of these two streets. This will be the first year that the program will consist of improvements for both asphalt and concrete streets. COUNCILMAN WELCH MOVED TO APPROVE THE 2012 PREVENTIVE STREET MAINTENANCE PROGRAM. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. E.3 PW 2012 -015 AWARD OF PROJECT RFB NO. 12 -020 TO STABILE & WINN, INC. IN THE AMOUNT OF $347,841.00 FOR THE CONSTRUCTION OF THE TABOR STREET IMPROVEMENTS (RUFE SNOW DRIVE TO STEVEN STREET) PROJECT (ST1002) APPROVED Greg VanNieuwenhuize, Assistant Public Works Director, presented the item. Council is being asked to award a construction contract to Stabile & Winn, Inc. in the amount of $347,841.00 for the CIP Project identified as "Tabor Street Paving Improvements Project (Rufe Snow Drive to Steven Street) ". The project, originally identified in the 2003 Bond Program and the FY 2011/2012 Capital Improvements Budget, consists of reconstructing approximately 1,300 feet of asphalt pavement with concrete pavement to comply with the current city standards including the introduction of sidewalks. By accepting the lowest bid being approximately $16,000 more than the amount available in the Project's construction account ($332,000). Staff has conducted a budget transfer of $16,000 from the recently constructed Douglas Lane Street and Utility Improvements project with sufficient construction funding. COUNCILMAN RODRIGUEZ MOVED TO APPROVE PW 2012 -015. MAYOR PRO TEM LOMBARD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. E.4 PW 2012 -016 AWARD OF PROJECT RFB NO. 12 -022 TO MCCLENDON CONSTRUCTION COMPANY, INC. IN THE AMOUNT OF $1,192,544.05 FOR THE CONSTRUCTION OF THE TRINIDAD DRIVE (RUFE SNOW DRIVE TO HOLIDAY LANE) STREET IMPROVEMENTS PROJECT (ST0909) APPROVED City Council Minutes June 11, 2012 Page 10 Greg VanNieuwenhuize, Assistant Public Works Director, presented the item. The item is to consider the award of a construction contract for the Trinidad Drive (Rufe Snow Drive to Holiday Lane) Street Improvements Project consisting of reconstructing approximately 3,500 feet of asphalt pavement with concrete pavement to comply with the current city standards. In addition, existing sidewalks will be reconstructed, parkway areas without sidewalks will have sidewalks installed and minor changes to the water (replacement of service lines under the pavement) and sanitary sewer systems (replacement of clean -outs with manholes) will be implemented. The City requested bids (RFB's) in accordance with city policy and qualifications were received from four firms. The project's design engineer reviewed and evaluated the proposals and is recommending awarding the contract to the lowest bidder McClendon Construction Company in an amount $1,192,544.05. The lowest bid is over the amount budgeted for the project and staff has conducted a budget transfer of $265,000 from a recently constructed Douglas Lane Street and Utility Improvements project with sufficient construction funding. MAYOR PRO TEM LOMBARD MOVED TO APPROVE PW 2012 -016. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. F.0 GENERAL ITEMS F.1 GN 2012 -044 APPROVE RESOLUTION TO AUTHORIZE INVESTMENT OFFICERS - RESOLUTION NO. 2012 -022 APPROVED Laury Fiorello, Assistant Finance Director, summarized the item. As a result of staff changes, a resolution is required amending the authorized representatives list of current investment officer authorizations. Staff recommends approval of Resolution No. 2012- 022 which designates these individuals as City representatives. • Director of Finance Larry Koonce • Assistant Director of Finance Laury Fiorello • Accountant II Amy Stephens COUNCILMAN RODRIGUEZ MOVED TO APPROVE RESOLUTION NO 2012 -022, GN 2012 -044. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. City Council Minutes June 11, 2012 Page 11 F.2 GN 2012 -045 APPROVE THE AMENDMENT TO THE IRON HORSE GOLF COURSE MANAGEMENT AGREEMENT WITH EAGLE GOLF APPROVED Vickie Loftice, Managing Director of Community Services, summarized the item. This item is to amend the agreement with Eagle Golf for the Management of Iron Horse Golf Course. The current agreement is for a five year term with two one (1) year renewal options. To comply with IRS rules on management agreements for tax exempt bond - financed facilities, the agreement needs to be modified to a one (1) year agreement with six (6) automatic one (1) year terms. Staff has reviewed the changes with Eagle Golf and the City Attorney has reviewed and approved the amendment. Staff recommends approval of the amendment to the Iron Horse Golf Course Management Agreement with Eagle Golf. COUNCILMAN TURNAGE MOVED TO APPROVE GN 2012 -045. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. F.3 GN 2012 -046 RENEW ANNUAL CONTRACT FOR 2012 AUDIT SERVICES WITH DELOITTE AND TOUCHE, LLP APPPOVFn Laury Fiorello, Assistant Finance Director, presented the item. Deloitte and Touche, LLP has submitted an engagement letter for audit services for the 2012 fiscal year. Management and staff have met with their representatives and determined that the proposal is reasonable based on the number of hours and types of audits anticipated. Their pricing includes a 6% increase over the fiscal year 2011 audit. The original contract with Deloitte and Touche was for three years with two 1 year options. This renewal is the first one year renewal of the original contract. COUNCILMAN WHITSON MOVED TO APPROVE GN 2012 -046. MAYOR PRO TEM LOMBARD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. F.4 PU 2012 -017 APPROVAL OF AGREEMENT WITH THE TODD COMPANY FOR AN City Council Minutes June 11, 2012 Page 12 AMOUNT EXCEEDING $50,000 APPROVED Chris Swartz, NRH2O Park Manager, summarized the item. NRH2O Family Water Park, as a themed water park, advertises its services to the general public. To accomplish this, various media channels are used including radio and television. The park currently uses the Todd Company for all of the parks media buying. There is a long standing relationship with this organization and they have served the park well. Staff recommends authorization for an expenditure in excess of $50,000, with the caveat that it does not exceed NRH2O's Council approved budget for advertising expenses with the Todd Company. MAYOR PRO TEM LOMBARD MOVED TO APPROVE THE PU 2012 -017. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. G.0 EXECUTIVE SESSION ITEMS G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA EXECUTIVE SESSION ITEM 13.1 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) nppRnVFn Jimmy Perdue, Public Safety Director, summarized the item. After months of litigation a settlement agreement has been presented in Cause No. 2011 - 002840 -1 and Cause No. 2011 - 000462 -1. Staff recommends approval for the City Manager to execute all documents necessary to finalize settlement agreement with the State of Texas. COUNCILMAN WELCH MOVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO FINALIZE SETTLEMENT AGREEMENT WITH THE STATE OF TEXAS REFERENCE CAUSE NO. 2011 - 002840 -1 AND CAUSE NO. 2011- 000462. COUNCILMAN RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. City Council Minutes June 11, 2012 Page 13 H.0 INFORMATION AND REPORTS HA Councilman Turnage made the following announcements. June is Adopt a Cat Month. To celebrate, the NRH Animal Adoption & Rescue Center is offering reduced adoption fees for all pets this month. For more information, please visit the Animal Adoption & Rescue Center or call 817 - 427 -6570. In honor of Father's Day, the first 100 Dads will get in free on June 17th at NRH2O Family Water Park. Fathers must be accompanied by a child. For more information, call 817 - 427 -6500 or visit www.nrh2o.com The City reminds residents that outdoor watering is prohibited between 10 a.m. and 6 p.m., except when watering by hand or soaker hose. Irrigation systems should be set to operate in the early morning or late evening, when the sun and temperatures are less likely to cause evaporation. Kudos Korner - Gary Bechthold and the Maintenance Staff in the Parks & Recreation Department. A citizen who leased the pavilion at Linda Spurlock Park for a company picnic said she was very impressed with the cleanliness and beauty of the park. The park amenities are the jewels in the city's crown and you "should be proud of Gary and his staff for doing such an excellent job at keeping those jewels sparkling," the resident said. H.2 ADJOURNMENT Mayor Trevino adjourned the meeting at 7:52 p. Oscar Trevino — Mayor ATTEST: H Patriciakiut§8n, City lei' etary