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HomeMy WebLinkAboutCC 2014-06-09 AgendasCITY OF NORTH RICHLAND HILLS CITY COUNCIL MID YEAR BUDGET WORK SESSION AGENDA NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS MONDAY, JUNE 9, 2014— 4:30 P.M. 1. Call to Order 2. Discuss Annual Budget and Plan of Municipal Services for FY 2013 -2014 and Discuss Planning and Program of Services for Fiscal Year 2014 -2015 3. Adjournment I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on June 6, 2014 at 2..'. p.m. www.nrhtx.com i 44 \41 Live Work Play k4lkH CITY OF NORTH RICHLAND HILLS June 9, 2014 Honorable Mayor and Members of City Council City of North Richland Hills North Richland Hills, Texas Office of the City Manager Welcome to the Mid -Year budget review for fiscal year 2013 -14. The plan for this meeting is to provide you with an overview of how the current budget is proceeding, as well as a general overview of major issues staff feels will drive the 2014 -15 budget that we present in early August. Overall we are seeing signs of economic stability and anticipate this trend to continue into the future. The single family home market continues to rebound, and commercial businesses are continuing to pursue expansion opportunities. In addition to the general improvement in the regional economy, the end is in sight for the construction of the North Tarrant Express. While we have a few weeks coming up where construction will heavily impact North Richland Hills, NTE Mobility Partners is confident construction will be substantially complete by the end of 2014. With nearly 40% of our retail activity coming from the corridor encompassing the NTE project, this is welcome news. As a result of the stabilizing economy and the completion of the North Tarrant Express, staff anticipates in FY 2014 -15 a modest increase of 1.5% in sales tax over the FY 2013 -14 Revised Budget. While property values continue to rise we have seen an increase in the amount of property value reductions given during the appeals process and an increase in delinquent accounts. These factors have tempered our projections for increased property tax revenue. The small increase in property tax revenue can be attributed mainly to the new commercial and residential construction we continue to see occur throughout the city. As we will discuss in more detail, other revenue sources remain fairly steady, creating an improved revenue forecast for the 2013 -14 budget. On the expenditure side of the budget, there are several issues that we would like to bring to your attention prior to presentation of the 2014 -15 budget. One such issue is the enhancement of the City's Code Compliance efforts. With the homes in the city aging, the Neighborhood Services Department taking on additional responsibilities over the years and the high emphasis placed on making North Richland Hills an attractive place for people to live, I felt it was important to look at ways of enhancing our efforts to enforce the standards set out in our code. After reviewing our current efforts, staff has created a two- tiered plan that will be presented in more detail in the coming months. PO Box 820609 * North Richland Hills, TX 76182 website: www.nrhtx.com In addition to Code Compliance, other major expenses I anticipate being factors in the FY 2014 -15 budget include: staffing two additional School Resource Officers, the replacement of our current CAD /RMS software, the major revision to the City's Comprehensive Plan and increases in costs related to both water and sewer. All these items are described in more detail in the 2014/15 Preliminary Budget section of this document. As with previous years, I also foresee decisions regarding personnel and benefits important in FY 2014 -15. Being that The City of North Richland Hills is primarily a service industry whose principal working asset is its people. Personnel costs compose a large portion of the operating budget; therefore, changes in personnel costs related to the compensation market or the cost of benefits has a profound effect on our budget. Staff is currently reviewing proposals for administration of the City's medical, dental, prescription, vision, employee assistance program, life and long term disability programs. In addition, the Human Resources Department continues to track compensation throughout the DFW region. As the increase in competition for qualified workers continues, it is important we have competitive compensation and benefit packages for employees. In summary, I believe we are heading into a bright and economically stable future; however, we will continue to see new issues and challenges arise. It is our responsibility as staff to keep you as informed and as up to date as possible on all issues affecting the City of North Richland Hills and one way to do this is to have this Mid -Year Budget Review session. It is my hope that by the conclusion of the meeting, you will feel informed and comfortable with where we are in the current 2013 -14 Fiscal Year, as well as the direction we are heading in the development of the 2014 -2015 Fiscal Year Budget. Respectfully, Mark Hindman City Manager Agenda MID -YEAR BUDGET WORK SESSION— FISCAL YEAR 201412015 4:30 pm, Monday, June 9, 2014 City Council Workroom • Introduction • Economic Outlook • 2013/2014 Revised Budget o Summary of Revenues and Expenditures • 2014/2015 Preliminary Budget o Overview of Revenues and Expenditures o Budget Calendar • Finance and Debt • Human Resources Update • Future Considerations • Closing Economic Outlook ECONOMIC OUTLOOK NRH From a national perspective the worst winter since 1996 resulted in a first quarter decline of GDP (goods and services). The current quarter has turned around as job increases are driving the unemployment rate to its lowest level since September 2008. Housing starts continue to be a bright spot in the economy as single family growth continues, but at only half pre- recession levels. Meantime multi - family starts exceed pre- recession levels and show no sign of slowing down. Consumer confidence continues to increase (10% over last year), while consumer prices moderately increase from rising energy costs. Texas continues to outpace the nation on all positive economic indicators. A most telling statistic is the state's growth from domestic migration. In 2013 Texas welcomed over 113,000 people from other states, by far the most of any state. This figure is all the more staggering as New York lost over 104,000, Illinois almost 70,000, California almost 50,000 and New Jersey over 45,000. The state continues to enjoy lower consumer prices (10% less) with a much higher level of consumer confidence (50% greater). Retail sales tax collections and residential starts are also slightly up over the previous year. Albeit good, a few state trends are worth noting. First, total sales tax collections are up 4 %, driven mostly by higher energy prices. Second, Texas multi- family starts have increased by 88% over the past year versus only a 2% increase in single family starts. Both of these trends are worth future monitoring. Economic conditions locally are currently stable with a positive future outlook. The City's location and diverse economy have allowed it to be resilient through the bad times and excel during the good times. Unemployment is one percent lower (at 4 %) than the same period last year while two years of strong residential construction has established NRH as one of the faster growing cities in the nation. The US Census Bureau recently announced the City's 2013 growth rate of 3% ranked 32nd in the nation, the highest in Tarrant County. Meantime road construction continues to impact select big box retailers, muting the City's taxable sales growth. Overall congestion and inconsistent closures continue to wreak havoc on business along Loop 820. As always, in planning for next fiscal year it's important to delve further into City's residential and business economies given their significance on the City's budget capacity. Residential Economy The residents of North Richland Hills enjoy a higher level of employment than the region, state and nation. As of April 2014, the labor force in NRH is just under 38,000 people, roughly 60% of the City's total population. Combined with steady population growth and lower unemployment rates, the local labor force should continue grow. Although the City is roughly 75% built out, residential development continues to be a strong driver of growth. The 350+ single family starts over the past two fiscal years have dwindled the number of available lots resulting in a 40% reduction in starts this fiscal year. While this may seem concerning, the City alongside the residential 1 Economic Outlook NRH development community have been quite active. As of April 2014 there are over 500 single family lots in various stages of development. So while starts take a breath in FY 14, we can expect next fiscal year to pick back up to previous year's strong level. As it pertains to existing single family sales in 2014 over 2013, the City has seen a 12% decrease in the number of sales, a 5% increase in average sales price and a 19% reduction in the average number of days on the market (now at 51 days). In previous years the City has averaged roughly 170 single family listings; however as of June 2014 there are 111 listings helping to explain the recent spike in lot development in response to demand. While single family continues to be the main driver of growth, the City recently permitted roughly 400 multi - family units in the Home Town area. While this figure from a unit comparison exceeds recent single family starts, only 25% of all residential units in the City are multi - family, 5% less than the County average. While the City remains single family based; economic, societal and behavioral shifts continue to drive demand for multi - family across the county, state and region. For example, 30% of all DFW residential units constructed in 2007 were multi - family, that figure today is now 50 %. Business Economy While the City's business economy continues to remain stable, new business activity is on the rise. From a retail perspective, the vacancies are slowly decreasing (now below 15 %) while new space is under development. Vacant office space however continues to hover around 20% as absorption is anticipated upon the completion of the North Tarrant Express project. So far this fiscal year the City has welcomed 48 new businesses resulting in a net increase of 11 businesses. The number of employees working inside the City limits has increased by 320 due mainly to Portfolio Recovery Associates in the south sector of the City. Beside the three grocery developments that are under construction, the City is in the process of facilitating the construction of a Chipotle, Chick- fil -A, Whataburger, Pollo Tropical, Jason's Deli and AutoZone just to name a few. Meantime, shopping centers such as the Venue at Home Town, The Crossing and Tarrant Parkway Plaza have quality businesses now occupying long term vacancies. As for the new grocery projects, both ALDI and WinCo are on pace to open before the end of 2014, while Kroger Marketplace is targeting the first half of 2015. While new business activity is on the rise, the City is paving the way for long term business growth and development. There are roughly 24 acres of highway frontage available for redevelopment along the North Tarrant Express and 20 additional acres marketed for new development near the Davis Boulevard and North Tarrant Parkway intersection. 2 Economic Outlook NRH Heading into FY 2015, there has been no significant change in appraised values for existing commercial and industrial property (25% of the property tax base); however because of the three aforementioned grocery projects, we do expect an increase for FY 2016. The projects currently under construction will not generate property tax revenue until FY 2016, versus the upcoming FY 2015. For example, WinCo and ALDI are expected to generate property tax revenue for FY 2016 from tax year 2015. Taxable sales which make up roughly 20% of the General Fund come primarily from local businesses (74 %), however an ever increasing share (26 %) come from utilities, gas drilling and online /mail order. From the chart below, increases in online / mail order will continue as consumers figure out more ways to purchase away from brick and mortar locations. Meantime utility prices have triggered a 15% increase in taxable sales over previous year. Type FY 2014 YTD Change From Prior Period Local Business 74% (of total taxable sales) Down Utilities 12% Up Gas Drilling 1% Flat Online / Mail Order 13% U Fiscal year -to -date total taxable sales in North Richland Hills are 2% over same period last year and 100% to budget. The portion of sales tax generating businesses that reside along Loop 820 (roughly one third of the City total) is down 6% over previous year resulting in a slight reduction from local businesses overall. During the next fiscal year the North Tarrant Express project will be completed while new grocery projects open in the south and north sectors of the City. Given these two milestones, staff expects a healthy increase to the local business sales tax base for FY 2015. Summary While current economic conditions are strong, key sources of local tax revenue will continue to not only rely upon broader economies and transportation, but also social and political dynamics. Issues regarding how taxable sales are collected, products are purchased, trends in residential development and the redevelopment along Loop 820 will shape the City's short and long term economic future. Going into FY 2015, it is conservatively estimated that both property and sales tax revenues will grow. From a property tax revenue standpoint, the City will approach FY 2015 with approximately 3% growth. We expect single family and multi - family taxable values to make up the majority of this growth, while commercial and industrial taxable values to remain flat. The City anticipates taxable sales in FY 2014 to finish at 100% to- budget, 2% over previous year. In planning for FY 2015, staff conservatively forecasts taxable sales to increase another 1.5% as Loop 820 construction subsides, existing businesses rebound and new business enters the City. 3 2013/2014 UVIFFn RI_,inrET NFZH FISCAL YEAR 2013 -2014 SCHEDULE 1 - SUMMARY OF REVENUES AND EXPENDITURES GENERALFUND ADOPTED PRIOR REVISED BUDGET YEAR FY 2013114 BUDGET FY 2013114 ENCUMB. REVISIONS FY 2013114 REVENUES Taxes $29,340,679 SO ($180,679) $29,160,000 Fines & Forfeitures 2,601,090 0 (538,160) 2,062,930 Licenses & Permits 1,811,300 0 51,408 1,862,708 Charges for Service 3,485,750 0 (93,493) 3,392,257 Intergovernmental 4,364,104 0 27,730 4,391,834 Miscellaneous 747,612 0 (16,974) 730,638 SUB -TOTAL $42,350,535 $0 ($750,168) $41,600,367 APPROPRIATION FROM FUND BALANCE Legal Settlement & Litigation $0 $0 594,000 $94,000 Utility Assistance Program 20,000 0 0 20,000 Previous Year Encumbrances 0 279,902 0 279,902 SUB -TOTAL APPROPRIATIONS $20,000 $279,902 594:000 $393,902 TOTAL REVENUES $42,370,535 $279,902 ($656,168) $41,994,269 EXPENDITURES CIN CCLlnc 1 $125,462 $0 $0 $125,462 City Ma-.ager 544,522 0 (68,744) 475,778 Communications 349,412 0 (715) 348,697 _ Ity Secretary 464,119 0 (20,475) 443,644 -egal 338,753 0 (39,633) 299,120 rumen Resources 118,165 0 0 118,165 once 658178 0 0 658,178 Budget u research 399,859 0 0 399,859 Munic pa Court 1,348,390 0 (989) 1,347,401 Planning and Inspections 998,454 0 (5,178) 993,276 Economic Development 316,942 0 (16,493) 300,449 Library 2,054,332 0 (537) 2,053,795 Neighborhood Services 1,655,862 0 3,732 1,659,594 Public Works 3.745,142 63,531 (22,803) 3,785,870 Parks & Recreation 2 063 728 0 (11,235) 2,052,493 Police 12,418.255 36,871 (160,738) 12,294,388 Emergen-y h :1a:r:gerrlcnt 820,544 179,500 (114,887) 885,157 Fire 10,531,623 0 34,882 10,566,505 5i11l;;1114, 5e "i , es 705,401 0 0 705,401 %on- Del.atnenta1 2,226,781 0 (124,591) 2,102,190 SUB -TOTAL DEPARTMENTS $41,883,924 $279,902 ($548,404) $41,615,422 RESERVES & OTHER EXPENDITURES Reserves $410,729 $0 ($210,689) $200,040 Transferto Information Services 75,882 0 0 75,882 Legal Settlement 0 0 94,000 94,000 SUB -TOTAL RESERVES AND OTHER $486,611 $0 ($116,689) $369,922 TOTAL EXPENDITURES $42,370,535 $279,902 ($665,093) $41,985,344 BALANCE $0 $0 $8,925 $8,925 Overview of Revenue and Expenditures REVENUE OVERVIEW Sales Tax NRH Sales tax has been performing within expectations during Fiscal Year 2013/2014. North Richland Hills has received its sales tax remittance from the State for the months of October 2013 through March 2014. Month FY2013114 Collections FY2012113 Collections Percent Inc /Dec October $611,271 $676,075 - 9.59% November 720,967 653,821 +10.27% December 1,032,373 970,272 +6.40% January 617,536 635,602 +2.84% February 595,042 619,192 - 3.90% March 956,120 8817005 +8.53% Total $475337309 $474357967 +2.19% Staff has conducted an analysis of sales tax collection trends. Based on the result, staff believes current year collections project to be flat to the Fiscal Year 2013/2014 adopted sales tax figure. If this occurs, total General Fund sales tax collections at year -end are estimated at $8,957,844. Considering this trend and the potential impact of NTE construction to lessen within the City later this year, staff estimates sales tax to increase approximately 1.5% for Fiscal Year 2014/2015 over the Fiscal Year 2013/2014 Revised Budget estimate. Staff projects total estimated collections of $9,092,212 for the General Fund; an additional $134,368 over the adopted budget for Fiscal Year 2013/2014. Property Tax North Richland Hills receives an uncertified preliminary estimate of taxable values in May of each year. These figures are subject to reductions resulting from a variety of factors; however they act as a starting point for projecting property tax revenue for the following fiscal year. Historically, the reductions that occur from the May Estimate to the July Certified Tax Roll average about 3% for North Richland Hills. Based on higher value trends and an increased number of properties under protest, a 4% decrease has been utilized to project Fiscal Year 2014/2015. The Estimated Net Taxable Value for North Richland Hills as reflected on the May Estimate is $4,121,722,244. This is an increase of $280,657,795 compared to the July 2013 Certified Roll, or 7.3 %. Of this amount, $43,776,587 is attributed to new commercial construction and $44,389,052 is attributed to new residential construction. The total new construction, $88,165,639, is 48.8% higher than the new construction reflected in the July 2013 certified tax roll. 1 Overview of Revenue and Expenditures NRH Including a projected 4% drop in values between the May Estimate and the July Certified Roll, the estimated property tax levy for Fiscal Year 2014/2015 is $24,136,805. When projecting property tax revenue, staff estimated that 1.5% of the property tax levied will be uncollectable, $362,052 for Fiscal Year 2014/2015. Staff projects estimated property tax collections of $23,774,753, roughly $578,565 higher than Fiscal Year 2013/2014. This amount will be allocated between Debt Service, TIF Debt Service and Maintenance and Operations. Construction Related Revenue Over the last three years, construction activity in North Richland Hills has experienced a resurgence. The four main permit revenues have shown steady recovery since Fiscal Year 2008/2009. Revenue Type Actual FY2007 /08 Actual FY2008 /09 Actual FY2009 /10 Actual FY2010/11 Actual FY2011/12 Actual FY2012/13 Building Permits $868,208 $282,368 $309,403 $426,952 766,824 $894,624 Electrical Permits 41,467 22,880 26,298 33,120 56,005 69,384 Plumbing Permits 63,076 45,376 54,576 74,525 132,161 119,725 Mechanical Permits 74,768 74,289 53,293 78,333 72,335 77,426 Total $1,047,519 1 $424,913 1 $443,570 1 $612,930 1 $1,227,325 1 $1,161,159 Based on year -to -date activity, staff projects to end the fiscal year with construction related revenue in line with the Fiscal Year 2013/2014 Adopted Budget. Staff anticipates construction activity to remain consistent; therefore the Fiscal Year 2014/15 is anticipated to remain relatively flat in comparison to Fiscal Year 2013/2014 estimated revenue. 2 Overview of Revenue and Expenditures EXPENDITURE OVERVIEW " rtH In preparing the Fiscal Year 2014/2015 Preliminary Budget, there are several items that have the potential to impact the City. The costs presented below represent the potential impact of the items /programs. While it is possible that the impact may be offset by increased revenues or decreased expenditures in other areas, staff felt it was important to bring these items to Council's attention. While not all inclusive, the following provides a brief description of several significant items /programs. Enhanced Code Compliance - $80,65 Three Code Compliance Officers currently enforce codes and ordinances for the City. The Code Compliance Division provides for the general welfare of the community through implementation and enforcement of local zoning, nuisance, and health and safety related ordinances that govern the condition of both commercial and residential structures throughout the city. The City's population has increased over 18% since the last code officer was hired in 1999. An aging housing stock has significantly increased the responsibilities of this three person team, specifically south of 820. Code Compliance has also taken on additional duties in recent years, including: water restrictions, commercial parking, vacant & foreclosed homes, recreational vehicles, and the Neighborhood Initiative Program. A modified shift has been implemented to provide limited weekend coverage, however it still does not provide for adequate enforcement. Code Compliance staff is working at full capacity to produce results consistent with the council's goals and have addressed 5,513 complaints in a twelve month period. To improve the quality of services to residents, a two tier plan is recommended to enhance Code Compliance staff. This plan will provide additional personnel for focused code enforcement south of 820, weekend coverage, and increased compliance by the business community. Tier I increases the existing staff by one officer. This tier provides weekend coverage and creates a proactive overlay inspection zone. This zone encompasses areas south of 820 and commercial areas north of 820 to the Amundson and Precinct Line intersection. This officer would also handle routine calls city -wide, and conduct follow -ups from internal referrals. The cost of Tier I would be $80,655, including salary and benefits, training and equipment. Tier II would add a second Code Compliance Officer and a complete redistricting of the existing coverage areas. This redistricting focuses dedicated resources south of 820 and along the Boulevard 26 commercial corridor. The Tier II program would significantly redistribute current call loads among staff and would provide the capacity for proactive code compliance activities in target areas. Tier 3 Overview of Revenue and Expenditures " rt" II would provide for shift coverage to include weekends and afterhours resources for call -outs when warranted. This plan will also offer sub - standard case specialization, which is in greater demand due to neighborhood transition. The cost of Tier II would be an additional $87,425 on top of the Tier I cost. This would bring the total cost of both tiers to $168,080 which includes salary, benefits, training, and equipment of two full -time code enforcement officers. At this time, staff is evaluating the financial feasibility of implementing Tier I in Fiscal Year 2014/2015. Tier II will be evaluated for a future budget year, based on the success of the Tier I implementation. School Resource Officer (SRO) Staffing: $201,274 The School Resource Officer (SRO) program once included a total of 5 officers and provided an officer at each middle school and high school. Over the past few years, the program has been reduced at Birdville Independent School District's (BISD) request. Currently, there are two SRO's: one assigned to each high school. North Richland Hills shares the cost of these 2 officers with BISD based on a 50/50 split over a ten month period (the school year). The total cost of the two officers and related equipment is $196,882. In 2013 BISD administration made the decision to evaluate the possibility of funding additional SRO positions throughout the district. In the Spring of 2014, BISD agreed to share the cost for 4 NRH officers on a 50/50 split over a twelve -month period. The new total program cost would be $398,156. This is an increase of $201,274 over the previous $196,883 funding level. The net total cost for North Richland Hills under the new agreement will be $199,078 (half of $398,156), compared to the current net cost of $114,848 under the current agreement with BISD. These additional officers would be assigned at the middle school level and at the Birdville Center of Technology and Advanced Learning (BCTAL). This decision will result in the City of North Richland Hills adding 2 SROs to the current staffing of 2; bringing the total SROs for NRH to 4. Under the new agreement, one officer will continue to be assigned each high school. A third SRO will rotate between Smithfield Middle and North Ridge Middle Schools. The fourth SRO will be assigned to cover North Richland Middle School and the Birdville Center of Technology and Advanced Learning. The Police Department does not currently have staffing to facilitate this change at the commencement of the 14/15 school year (August 2014). The Police Department has hired 2 additional officers who will need to complete the requisite training before the 2 middle school SRO positions are assigned. The Police Department is targeting staffing the additional SROs when school resumes after the holiday break in January 2015. The new agreement with BISD will be brought to Council prior to the beginning of the 14/15 school year. M Overview of Revenue and Expenditures Public Safety — CAD /RMS: up to $4, 000, 000 N itH In 2013, the City of North Richland Hills, along with the partner cities of the Shared Service Public Safety effort, began moving forward with the research, identification, and ultimate replacement of the CRIMES software. In October of 2013 the City entered into an agreement for consulting services with the consulting firm of Sciens Consulting, Inc. to assist with acquiring a replacement CAD /RMS. A series of meetings were held through March 2104, which were attended by representatives (Fire, Information Services, Police) of the partner cities. System criteria were identified as a result and used to develop the specifications for a replacement CAD /RMS solution that will meet the needs of each agency well into the next decade. A request for proposal was drafted and submitted for vendor review on April 18, 2014. It is anticipated that a specific vendor can be identified by end of fiscal year 2014 with negotiations and Council approval occurring before the end of calendar year 2014. At this time, staff is creating a capital project in the amount of $4,000,000 for the Fiscal Year 2014/2015 Budget to fund the CAD /RMS replacement. This funding will be utilized to acquire the replacement system, related requisite software interfaces, and legacy data conversion. In the coming months staff will also continue to explore alternative methods of financing the replacement, including options to lease the system. Comprehensive Plan: $400,000 The City's Comprehensive Plan has had only minor updates and separate studies since 1992. The City is therefore operating under 22 year old land use descriptions, market assumptions, and thoroughfare recommendations. While it has held as a stable document, it has fallen behind market and city planning trends and current and emerging technologies. The plan should be reestablished as the principal guiding document for the City. Since the foundation of the current Comprehensive Plan was written in 1992, the City has seen tremendous change: overall residential population growth, a substantial retail exodus along Loop 820, retail gains further north, HomeTown, commuter rail plans, NRH2O, a new Library, the NRH Centre, and a comprehensive trail system. In the next two years the City will witness more substantial change: a New City Hall facility placed within a mixed use redevelopment; a completed Loop 820 expansion; major commercial growth on the north side of town; and the next wave of residential growth. The City around and south of the loop is beginning to enter the next phase of its life — reinvestment, revitalization and redevelopment —while the dust of new development has yet to settle on the north side of town. 5 Overview of Revenue and Expenditures NRH The Fiscal Year 2014/2015 Capital Projects Budget will include a project request for a new Comprehensive Plan, to include the following elements: • Land Use Plan • Mobility Plan • Parks, Recreation & Open Space Master Plan • Community Facilities Plan • Economic Development Plan • Urban Design Plan • Sustainability Plan • Water, Wastewater & Storm Water Master Plan A single RFQ would be released under a maximum budget of $400,000 to acquire a single package of consultants for the Economic Development, Land Use, Mobility and Urban Design elements of the plan. Other elements would be completed in -house by NRH staff with the direction of a Comprehensive Plan Advisory Committee (CPAC). The project would take place between October 2014 and January 2016 (minimum 15 months) and will span two fiscal years. As such, the intent is to split the cost and impact to the budget between two budget years. An additional $25,000 is requested for a separate city -wide traffic count contract that will provide information necessary to make informed decisions for the Economic Development Plan and Mobility Plan. No such comprehensive city -wide traffic count exists today. Obtaining current counts would benefit not only the Comprehensive Planning process, but general economic development and marketing purposes. Water /Sewer. $610,995 Water is provided to North Richland Hills by Fort Worth and the Trinity River Authority (TRA). North Richland Hills is charged based upon the gallons of water supplied. Water demand for the City can fluctuate depending upon weather conditions. Water purchases have been based on consumption over the last four years. In addition, the City expects an annual rate increase from each entity. The treatment of the City's wastewater, also handled by Fort Worth and TRA, is billed based on sewer flow. Prior to the beginning of Fiscal Year 2014/2015 staff anticipates an additional annual increase by each entity. Finance & Debt FINANCE & DEBT Debt Financing Update MR" The City pays for projects with cash on hand when possible but often times the magnitude of projects is such that debt issuance is necessary. Each year staff assesses the need for debt financing on capital improvements such as streets, drainage, facilities, etc. In addition to looking at what's needed for the upcoming year, we also must take into account the possible issuance of debt in the future to insure the ability to finance projects within the current property tax rate (61¢). We also continuously look for opportunities to reduce interest expenses by monitoring the market for opportunities to refund existing debt at lower interest rates. A preliminary property tax supported bond sale in FY 2015 may include: — City Hall (G.O.s and C.O.$) $18,850,000 — Animal Adoption & Rescue Center (C.O.$) $270,000 — Replacement of CAD Public Safety Software $4,000,000 Remaining authorized general obligation bonds after the FY 2015 Sale: — 1994 Bond Election $ 425,000 (Holiday Lane / 820) — 2003 Bond Election $ 4,410,000 (streets and drainage) — 2012 Bond Election $ -0- Also for budget consideration staff has determined a preliminary Self- Supporting FY 2015 Bond Sale: — NRH20 Improvements $400,000 — Asphalt Paver Replacement $200,000 These projects will be discussed in detail with City Council at the budget work session to be held in August. . 1 Human Resources Update "Ft-" HUMAN RESOURCES UPDATE Employee Benefits The City's health plan is performing well and year -to -date medical expenditures are projected to finish very close to our original 2013 -2014 budget. Through April 2014, claims are running approximately $110,000 under budget. A new wellness initiative, NRH "Can Do" Wellness, was introduced to our employees for calendar year 2014. Participation in this program is not tied to achieving a certain weight loss goal or blood pressure reading. Participation in this program is not tied to being able to run a mile in under six minutes or even being able to walk a mile. All employees have an opportunity to participate in the NRH "Can Do" Wellness Program because everyone can take the steps necessary to learn about their current health condition. Employees on the City's health plan must complete required activities to include an annual physical and the viewing of educational videos focused on self - reported medical conditions. Optional activities include a wide variety of activity based programs and medical screenings, such as membership to a fitness center, monthly exercise, completing an online health risk assessment, completing age and gender appropriate medical screenings, to name a few. Required and optional activities are tracked by employees through on an online wellness platform. Required annual physicals and tests can help find problems before they start. They also can help find problems early, when chances for treatment and cure are better. By getting the right health services, screenings, and treatments, and by participating in regular exercise, employees are taking steps that help their chances for living a longer, healthier life. On April 21, 2014, a Request for Proposals (RFP) was advertised for the administration of the City's medical, dental, prescription, vision, employee assistance program, life and long term disability programs. The closing date of the RFP was May 21, 2014. Staff along with the City's benefits advisor, Holmes Murphy, is currently reviewing the proposals and anticipate finalists to be chosen later in summer 2014. The City will continue to proactively monitor and address health care costs through potential plan design changes as well as employee wellness education and prevention efforts. Current trends in the market include narrow, cost efficient networks, tobacco surcharges, near site clinics, and spousal surcharges. Any recommended revisions to the City's Group Medical Plan will be discussed with the City Council during the budget work session in August. Employee Compensation The Dallas /Fort Worth region has one of the fastest growing economies in the nation. Virtually all sectors of the economy are booming. In Fort Worth and the surrounding areas, the unemployment rate declined to 4.6% in April 2014 from 5.8% a year ago. In comparison, The Texas unemployment rate in April 2014 was 5.2% and the national unemployment rate was 6.3 %. This increase in economic activity creates instability 1 Human Resources Update NRF4 within the regional job market. The increased competition among employers for qualified candidates puts pressure on employers to provide higher wages for recruitment and retention purposes. In FY 2013/14 the majority of North Texas cities provided some form of salary increase to their employees. With the continuing improvement to the local economy, it is anticipated that our market comparison cities will be allocating funds for their employee compensation programs next fiscal year. Therefore, in FY 2014/15, staff anticipates allocating funds for the City's compensation programs. As in the past, options for consideration include employee merit increases, pay range adjustments and lump sum increases. The Human Resources Director will present staff's recommendation regarding the City's compensation program for FY 2014/15 at the upcoming budget work session in August. 2 Future Considerations H.T.E. System Replacement N rtH In 1997 the City purchased the H.T.E. system, which serves as the primary software system for many of its operations. Since the original purchase, for approximately $1,000,000, the City has continued to pay around $100,000 for annual support and upgrades that have been installed as they became available. H.T.E has served the city well; however, because of it being an "all in one" type solution it has and will never do everything to the full level of expectations. Each year the Information Services Department receives requests from more departments that have identified a solution that better meets their business needs. Additionally, there have been requests to automate functions and move the City's processes closer to being totally electronic (paperless). It is time to move toward its replacement, given the age of the system and its declining usefulness. Replacing H.T.E. with a new system, or combination of systems, is estimated to cost between $1,200,000 and $2,500,000. This expense will not hit in the upcoming year. Similar to the process for replacing the Public Safety Computer Aided Dispatch / Record Management System (CAD /RMS), staff will be proposing the utilization of a consultant to guide the selection process. Solid Waste Requests for Proposals The contract with Republic Waste Services expires on January 31, 2015. It was decided many months ago that instead of negotiating a new contract with Republic, we would issue a request for proposals (RFP) to make sure we get the best service for our City while keeping costs to residents reasonable. It is anticipated the RFP will be issued in the next several weeks. Two surveys have been conducted in preparation of the request for proposal. City Council was surveyed to get an idea of what is currently being done to council's satisfaction and where improvements could be made. A second survey was conducted of area cities to determine what different types of services they might be providing to residents and how much residents pay on a monthly basis. Based on City Council feedback and the results of the city surveys, some of the services to be considered in a new contract are rolling carts for recycling, more frequent brush collection and a green waste program. Additionally, we will be exploring the possibility of the City itself providing the brush collection. 1 Future Considerations Street CIP Program MR" As Council is aware our last bond program for streets improvements was in 2003. Since that time we have had several streets deteriorate to a condition that they must be reconstructed. In 2012 the Citizens Task Force — Street Committee helped identify and prioritize 49 streets that had a reconstruction cost of approximately $30 million. To make matters worse; during the past 2 years we have noticed several other streets deteriorating at a much more rapid rate due to the cut - through traffic from the North Tarrant Express (NTE) project. Staff has identified several streets that have seen a rapid deterioration due to the cut - through traffic. Some of the streets identified were also streets identified as a high priority by the Citizen Task Force but most are streets that were not considered a high priority two years ago. Some of the streets can be improved with the Preventive Street Maintenance program but some, like Meadow Lakes and Harwood Road, will need to be reconstructed. Staff plans to focus the Preventive Street Maintenance on those streets that have been severely impacted by the NTE cut - through traffic. Deterioration of Walker- Calloway Branch Sewer Outfall Lines The Walker- Calloway Branch outfall lines were constructed in the early 1970's to serve the cities of North Richland Hills and Hurst. It consists of two separate 27" diameter sewer lines serving different areas and connecting into a single 42" line which transports the wastewater to an existing 96" Fort Worth Truck line. This system is owned by the two cities and both cities have contracted with TRA to maintain and operate this system. TRA is informing the cities that the system is in very poor condition and needs to be replaced. The estimated cost to replace the Walker- Calloway Branch outfall lines is approximately $20 million. TRA has made this determination through an assessment study performed by one of their engineering consultants. In December of 2011 the system experienced a line collapse which required an emergency repair. Additional failures occurred in 1991, 2006 and 2008. These failures and TRA's concern over the integrity of the system resulted in TRA retaining the RJN Group Inc. to conduct a condition and a preliminary capacity assessment. The results of the assessment indicated that most of the system had less than 10 years of remaining useful life and some segments did not have the capacity to handle the projected peak wet weather flows. Staff is still reviewing the capacity analysis but the condition of the line appears to be bad in certain areas. Most of the pipe is reinforced concrete pipe (RCP) and has been in a corrosive environment for over 40 years. 2 Future Considerations "PI" The way the agreements are written TRA cannot require NRH and Hurst to reconstruct the system of sewer lines. Since a complete reconstruction would fall outside what would be considered "routine" O &M. However, TRA could decide not to continue with the current agreement to maintain and operate the system. This responsibility would fall back on Hurst and NRH. This is an informational item at this time because of several remaining questions to fully be examined. For example, are there really capacity issues? Since staff is currently reviewing the capacity assessment we do not know for certain at this time. How could the improvements be phased? What does Hurst officially think about what TRA is suggesting? If we proceed how will the cost for the improvements be split between Hurst and NRH? Currently we split ordinary O &M 50 -50 but extraordinary maintenance and repair is split by flow. NRH contributes about 80% of the flow. 3 Other Information Status of Bond Election Programs 1994 BOND ELECTION PROGRAM " Pt" In 1994, a sixteen - member Citizen Advisory Committee was appointed by the City Council to review the City's capital improvement needs for the following five to seven years. The Committee spent several months reviewing and assessing various capital improvement needs. The Committee examined nearly $40,000,000 in needed projects and recommended $23,540,000 for voter consideration in a bond election package. Street and drainage improvements were an integral part of the authorized proposal. Street projects were prioritized according to which projects would provide the most positive impact on traffic flow and congestion in the City. Drainage projects were ranked according to which project would protect the most property from flooding and erosion. All public safety projects recommended by City staff were included in the bond election. The projects were divided into three propositions according to the type of project for the bond election. The election was held on September 27, 1994. All three propositions passed by a 2 to 1 margin. The propositions are outlined as follows (in thousands of dollars): Authorized Un- issued $425 0 0 $425 As of June 2014 the City has issued all but $425,000 for projects approved in the 1994 bond election: $19.6 million in street bonds, $1.9 million of drainage bonds, and $1.7 million in public safety bonds. There are no plans to issue the remaining $425,000 authorized 1994 G.O. bonds in 2014. This remaining amount will be issued for Holiday Lane, from Loop 820 to Dick Lewis Drive as part of the Loop 820 widening project. 2003 BOND ELECTION PROGRAM In 2002, City Council appointed a Citizens Capital Improvements Study Committee to evaluate major capital project needs for the City over the following seven to ten years. The Committee evaluated and prioritized streets, drainage, and facility improvements that would benefit the citizens of North Richland Hills. City management and staff analyzed the financial impact of the capital improvements program. The analysis included factors such as existing debt service obligations, the issuance of the remaining 1994 bond authorization, estimates of future property value growth, and impact on future operations. 1 Amount Amount Issued 2014 Authorized To -Date Proposed Issue Streets $20,000 $19,575 $0 Drainage 1,865 1,865 0 Public Safety 1,675 1,675 0 Totals: $23,540 $23,115 $0 Authorized Un- issued $425 0 0 $425 As of June 2014 the City has issued all but $425,000 for projects approved in the 1994 bond election: $19.6 million in street bonds, $1.9 million of drainage bonds, and $1.7 million in public safety bonds. There are no plans to issue the remaining $425,000 authorized 1994 G.O. bonds in 2014. This remaining amount will be issued for Holiday Lane, from Loop 820 to Dick Lewis Drive as part of the Loop 820 widening project. 2003 BOND ELECTION PROGRAM In 2002, City Council appointed a Citizens Capital Improvements Study Committee to evaluate major capital project needs for the City over the following seven to ten years. The Committee evaluated and prioritized streets, drainage, and facility improvements that would benefit the citizens of North Richland Hills. City management and staff analyzed the financial impact of the capital improvements program. The analysis included factors such as existing debt service obligations, the issuance of the remaining 1994 bond authorization, estimates of future property value growth, and impact on future operations. 1 Other Information MR" The results of the analysis were based on conservative estimates of future property value growth and the scheduled retirement of existing debt. The analysis indicated that the 2003 debt tax rate of $.24 per hundred dollar valuation would support over $40 million of debt service through the year 2010. The committee identified $38.2 million (over $30 million for street improvements alone) in projects needed to improve the infrastructure and provide essential services to the citizens of North Richland Hills. The committee presented the project list to City Council who called a bond election for February 1, 2003. The referendum consisted of five separate propositions including twenty -two street projects (arterial, collector, and residential streets), two drainage projects, and five municipal facilities projects. All of the propositions, except for the proposed authorization of $1 million in general obligation bonds for Maintenance Service Center improvements, were approved by the voters, and are now a part of the long -range financial plan of the City. The propositions are presented in the following table (in thousands of dollars): Streets Drainage Public Safety Facilities Animal Rescue Center Expansion Totals Approved street projects included eight arterial streets, six collector streets, and eight residential streets. Some of the major street projects were: Rufe Snow Drive, North Tarrant Parkway, Glenview Drive, and Boulevard 26. The two drainage projects were Holiday West Channel and Meadowview Estates Channel. Approved facilities projects were: Fire Training Facility expansion and upgrade, Fire Stations #2 and #3 upgrades, Public Safety Facility upgrade, and the Animal Adoption and Rescue Center expansion. The proposed 2014 G.O. bond sale will help pay for costs at the new City Hall for the emergency operations center. This will leave an authorized but unissued balance of $4,410,000 as indicated above. Of the remaining $4,250,000 for street projects $3,000,000 was authorized for Boulevard 26 widening and the intersection of Harwood and 26. 2 Amount Amount Issued 2014 Authorized Authorized To -Date Proposed Un- issued Issue $30,010 $25,760 $0 $4,250 4,000 3,840 0 160 1,900 1,650 250 0 1,300 1,300 0 0 $37,210 $32,550 $250 $4,410 Approved street projects included eight arterial streets, six collector streets, and eight residential streets. Some of the major street projects were: Rufe Snow Drive, North Tarrant Parkway, Glenview Drive, and Boulevard 26. The two drainage projects were Holiday West Channel and Meadowview Estates Channel. Approved facilities projects were: Fire Training Facility expansion and upgrade, Fire Stations #2 and #3 upgrades, Public Safety Facility upgrade, and the Animal Adoption and Rescue Center expansion. The proposed 2014 G.O. bond sale will help pay for costs at the new City Hall for the emergency operations center. This will leave an authorized but unissued balance of $4,410,000 as indicated above. Of the remaining $4,250,000 for street projects $3,000,000 was authorized for Boulevard 26 widening and the intersection of Harwood and 26. 2 Other Information 2012 BOND ELECTION PROGRAM " rt" In 2011, City Council appointed a Citizens Capital Improvements Study Committee to evaluate major capital project needs for the City over the following seven to ten years. The Committee evaluated and prioritized streets, drainage, and facility improvements that would benefit the citizens of North Richland Hills. City management and staff analyzed the financial impact of the capital improvements program. The analysis included factors such as existing debt service obligations, the issuance of the remaining 1994 and 2003 bond authorization, estimates of future property value growth, and impact on future operations. After much study and deliberation, the committee decided the most pressing need for the community was a municipal facility complex that would consolidate and combine the general government functions of city hall services with public safety and municipal court services into one facility. A space needs study was completed, and the cost of a facility which would meet these needs was determined. It was determined that the maximum cost of this facility would be $70 million dollars. The Committee recommended to City Council that $48 million be financed with voter approved bonds, and the use of cash reserves identified from various sources be used to finance or pay -go the additional maximum $22 million. Staff identified cash reserves from sources such as gas development reserves, 413 sales tax for economic development reserves, general fund balance, debt service fund balance, TXDOT settlement for City right of way, and proceeds from future sale of city property including the current City Hall and former Library and Recreation Center sites to help finance the municipal complex. The committee presented its' recommendation to City Council who called a bond election for May 12, 2012. The referendum consisted of the Municipal Facilities Complex in the amount of $48 million. Prior to the May election, voters were informed that a 3 to 4 cent property tax rate increase would be necessary to help finance the project. A 4 cent property tax rate increase was approved by City Council in 2012 to help pay for the Municipal Facilities Complex debt. The Municipal Facilities Complex was approved by the voters, and is now a part of the long -range financial plan of the City. The proposition is presented in the following table (in thousands of dollars): Amount Issued Authorized To -Date Municipal Facility $48,000 $48,000 2014 Proposed Issue $0 Authorized Un- issued $0 3 Other Information Status of Existing Debt Service MR" The City of North Richland Hills maintains a multi -year plan for the capital improvement needs of the City. This plan is part of the ongoing effort by the City Council and staff to meet the needs of a growing community, while stabilizing the tax burden of the citizens of the City. The strategy includes managing the cost of capital projects, paying cash for capital projects when possible and reducing interest expense by managing the borrowing of funds. This includes the structuring of general obligation debt (taxpayer voted debt backed by ad valorem tax levy) and non - general obligation debt (certificates of obligation authorized by the City Council primarily backed by ad valorem tax levy). City policy is to structure debt maturities to match the useful life of capital assets acquired or constructed and to maintain an even - principal repayment schedule. This practice has saved thousands of dollars in interest expense over the years. Streets, drainage, parks, and facilities projects with a useful life of at least twenty years are structured using a twenty -year pay -back period. Debt maturities for equipment replacement are based on the useful life of the financed equipment. The Multi -Year Capital Improvement Plan includes the following assumptions: 1. When it is necessary to finance projects through the issuance of debt, the City of North Richland Hills will continue to issue general obligation bonds and certificates of obligation (or equivalent). Because interest rates have been more favorable than those of revenue bonds, certificates of obligation have been issued to fund Enterprise Fund projects and equipment. An additional benefit of issuing certificates in place of revenue bonds is that no legal reserve is required with the issuance of certificates. 2. If it is necessary to issue debt, the maturity schedule will be designed to coincide with the life of the asset being financed. Every effort will be made to structure the payback at level principal to ensure the most rapid retirement of debt. The vast majority of debt issues in the past several years have achieved these objectives. 3. Enterprise Fund projects, such as infrastructure improvements by the Utility Fund, the Aquatic Park Fund and the Golf Course Fund, funded with ad valorem tax backed debt will be repaid with Enterprise Fund revenues. Thus, the term "self- supporting debt." 4. General debt service fund balances will be used as needed to supplement debt payments and issuance costs. Debt capacity will be calculated annually to ensure adequate revenues for debt payments for both existing issues as well as prospective issues. M Other Information "PI" 5. The plan assumes that City Council will set an ad valorem tax rate that will assure the payment of existing debt. This assumption is in keeping with the Council objective to stabilize the tax burden of the citizens of North Richland Hills. The following graphs illustrate outstanding debt for fiscal years 2014 through 2034. The majority of the City's debt is twenty year maturity for street, drainage, utility improvements and new facilities. The City also has twenty year outstanding debt for fire apparatus. Ambulances and some public works equipment are financed over 10 years. Total City Debt Payments 2014 -2034 $18,000,000 - $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 11 F1 n ,LO .LO .LO .LO .LO .LO .LO .LO .LO ,LO ,LO ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 .LO .LO .LO .LO .LO This graph shows the city -wide annual debt payments from 2014 through 2034 as of the latest bond sale in December, 2013. Principal and interest payments through 2034 total $184.6 million. In ten years, by the end of fiscal year 2023, the City will have paid $126.6 million, or 69% of those obligations. Enterprise Fund Debt The following three graphs are the enterprise funds debt payments. These payments are self - supporting in that they are paid for by the users of each system through the applicable rates charged to utility customers, water park customers and golfers respectively. 5 Other Information 1,200,000 , 1,000,000 800,000 600,000 400,000 200,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 Utility Debt Payments 2014 -2033 NIR I--,', n ti ti ti ti ti ti ti ti ti Aquatic Debt Payments 2014 -2031 100,000 EI n n I I I I I I I I I r ,. The original debt for NRH2O has been and is being paid for through the 4B sales tax revenues collected in the Parks Development Fund (see next chart). The debt service payments indicated in the Aquatic Park chart are for new attractions and improvements made to NRH2O after the initial construction in the early 1990's. The first new attraction was the Green Extreme in 1998. The newest attraction is the Viper added in summer of 2011. A ,LO .ti0 ,LO .y0 ,LO ,y0 .10 ,ti0 .ti0 ,LO .ti0 NIR I--,', n ti ti ti ti ti ti ti ti ti Aquatic Debt Payments 2014 -2031 100,000 EI n n I I I I I I I I I r ,. The original debt for NRH2O has been and is being paid for through the 4B sales tax revenues collected in the Parks Development Fund (see next chart). The debt service payments indicated in the Aquatic Park chart are for new attractions and improvements made to NRH2O after the initial construction in the early 1990's. The first new attraction was the Green Extreme in 1998. The newest attraction is the Viper added in summer of 2011. A Other Information Golf Debt Payments 2014-2032 $350,000 $300,000 $250,000 $200,000 $150,000 — — — $100,000 $50,000 - - - - ffl-E] ❑ ❑ ❑ ❑ ❑ ❑ ❑ El $0 - - - - NR <-) (- ' ,LO Q� QN� (zp (Z�'O' p -0, -�5 T T T T T T -e-0 -0 ­0 LO LO LO ti0 LO ti0 LO ti0 LO ❑GO&CO Debt Utility Loan ]General Fund Loan The final payment for the 1992 original golf course construction debt was made in 2011. This chart shows the repayment of the loans from the General Fund since 2006. Loans have been made mostly for replacement of course maintenance equipment. Those loan repayments began in 2013. Also included are certificates of obligation sold for course infrastructure improvements made since the course was opened in 1992. General Government Debt The next series of charts are debt payments paid for from taxes or special fees collected for a specific purpose. Parks Development 46 Debt Payments 2014-2031 $500,000 - $450,000 - $400,000 - $350,000 - $300,000 - $250,000 - $200,000 - $150,000 - $100,000 - $50,000 $0 A � The final payment for the original 4B parks projects, including NRH20 will be made in 2015. The City issued revenue bonds for the early projects but has more recently 7 NI R�-f: issued certificates of obligation because interest rates for those have been more favorable than those of revenue bonds. An additional benefit of issuing certificates in place of revenue bonds is no legal reserve is required with the issuance of certificates. A certificate of obligation was obtained in 2011 to fund the Senior Center addition to the NRH Centre. Drainage Utility Debt Payments 2014 -2032 $700,000 - $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 n These payments are made with fees collected for drainage improvements through the monthly water and sewer utility bills. TIFs Debt Payments 2014 - 2033 $3,500,000 $3,000,000 — $2,500,000 $2,000,000 ❑TIF #2 $1,500,000 — ❑TIF #1a $1,000,000 ■TIF #1 $500,000 $0 ti(0 ti1 ti� ti� ti� ti� ti� ti� ti� ti� ti� ti1 ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO Other Information MR" This debt, which is being paid for with property taxes levied on property within the district, includes the original drainage improvements for the business center in 1998 as well as $1 million in the 2010 sale for Boulevard 26 improvements in the TIF 1 Expansion. The TIF district expires in 2018. Other participants contributing property taxes include BISD, Tarrant County, Tarrant County Hospital District and Tarrant County College District. TIF 2 debt, which is being paid for with property taxes levied on property within the district, includes the new library and NRH Centre. It is anticipated that no additional debt will be issued for TIF 2 projects. TIF 2 expires in 2027. Other participants contributing property taxes include Tarrant County, Tarrant County Hospital District and Tarrant County College District. All Other Tax Supported Debt Payments 2014 -2034 $10,000,000 — $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 ti� tih ti� ti1 ti� ti� ti� titi ti� ti� ti� ti� ti� ti� ti� ti� 3� 3ti 3� 3� 3� ,LO ,LO ,LO ,LO ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,ti0 ,ti0 ,ti0 ,LO ,LO ,LO ,LO ,LO This represents general obligation debt from the 1994, 2003, and 2012 (Municipal Facilities) bond programs and some certificate of obligation debt over the years. The total principal and interest payments here are $118.8 million. In ten years $77.3 million or 65% of the total will be retired. 9 Other Information MR" Preliminary Property Tax • Tarrant Appraisal District released preliminary roll in May 2014 • Assumptions: — July Certified are estimated to be 4% less than May preliminary values based on Appraisal Review Board and other Tax Roll adjustments — 2014 certified (July 2014) is estimated to be a 3% increase over 2013 certified values. Preliminary FY 2015 property tax revenues are based on this. — 98.5% collection rate of tax levy is the historical trend — 610 tax rate is proposed for FY 2015 Preliminary Net Taxable Value $4,121,722,224 Less: 4% Estimated Loss (ARB etc.) ($164,868,889) Estimated Net Taxable Value $3,956,853,335 Tax Rate per $100 (No Change) 61 cents Tax Levy at 100% Value $24,136,805 Less: 1.5% Uncollectible ($362,052) Less: Debt Service /TIF Taxes (Est.) ($8,765,000) Estimated General Fund Tax Revenues $15,009,753 • Effective tax rate calculation — Definition — Effective tax rate is the tax rate necessary to produce the same property tax revenues as the prior year — Includes increase in values existing in prior year — Does not include new construction (May Roll $88 million new construction) • Public hearing and publication of tax increase required if proposed tax rate (61 ¢) greater than effective tax rate. • Estimated effective tax rate approximately 62.5¢ • Public hearing & publication of tax increase cannot be determined at this time • The 610 proposed tax rate will not exceed the rollback rate 10 Other Information Change in Fund Balances FY 2012 to FY 2013 FUND BALANCE SUMMARY FOR FISCAL YEAR 2013 "p1H FUND AUDITED BALANCE AS OF 09/30/2012 AUDITED BALANCE AS OF 09/30/2013 INCREASE (DECREASE) FY 2013 General Fund (Unassigned) $8,992,908 $9,186,072 $193,164 General Debt Service Fund $2,267,515 $2,615,711 $348,196 Utility Fund $15,945,123 $12,986,784 ($2,958,339) Golf Course Fund ($406,269) ($187,550) $218,719 Aquatic Park Fund $3,821,762 $3,945,209 $123,447 Facilities & Construction Services Fund $1,146,280 $1,292,161 $145,881 Fleet Services Fund $2,003,797 $1,848,266 ($155,531) Self Insurance Fund $5,645,386 $6,525,389 $880,003 Information Services Fund $1,920,632 $1,987,296 $66,664 Promotional Fund $474,368 $472,287 ($2,081) Donations Fund $886,728 $962,253 $75,525 Special Investigation Fund $517,141 $657,916 $140,775 Drainage Utility Fund $1,205,750 $1,284,052 $78,302 Gas Development Fund $4,809,823 $5,195,014 $385,191 Traffic Safety Fund $156,740 $189,204 $32,464 Park & Recreation Facilities Development Fund $2,238,439 $3,075,676 $837,237 Economic Development Fund $4,406,170 $4,465,067 $58,897 Crime Control District $1,071,282 $1,240,583 $169,301 11 Other Information Fund Balances - Assigned & Unassigned - September 30, 2013 Fund Balance General Fund Unassigned Balance $9,186,072 General Fund Assigned: Savings Incentive Program $250,360 Retirement Stabilization $250,000 Utility Billing Assistance $8,571 Rail Station Project $1,200,000 City Hall Project $2,000,000 Encumbrances & Non - spendable $254,402 Restricted for Muni -Court Tech /Security $821,953 Restricted for Franchise Peg Fees $301,634 Parks Development $3,075,676 Crime Control District $1,071,282 Promotional (Hotel /Motel) $474,368 Donations (mostly Utility Bills) $886,728 Special Investigations (PD) $517,141 Drainage Utility $1,205,750 Gas Development: Unassigned $1,915,014 City Hall Project $3,280,000 Economic Development: Unassigned $717,590 City Hall Project $3,747,477 Utility Fund (Operations & CIP) $25,883,963 Golf Course Fund ($115,507) Aquatic Fund $4,017,252 Facility Services $1,295,541 Fleet Services $1,943,272 Insurance Fund $6,525,389 Information Services $2,034,363 Capital Projects Funds - June 2014: Street Funds— Unassigned Project Savings $0 Drainage Funds— Unassigned Project Savings $0 Pay-As-You-Go — Unassigned $77,000 Permanent Street Maintenance Fund $570,424 Permanent Sidewalk Maintenance Fund $73,278 . all funds include operations & construction funds "PI" 12 Other Information FUND OVERVIEWS N PtH, Before moving into the details of the revised and proposed budgets, it is important to give an overview of the types of funds used in planning and accounting for the annual program of work to create a clearer understanding of the budget as it is reviewed. General Fund The General Fund is the principal fund of the City and is used to account for resources associated with core government services, such as police, fire, streets, library services, code compliance and building inspections. This is also the largest fund in the operating budget. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds include: Parks & Recreation Facilities Development Fund, Crime Control and Prevention District Fund, Promotional Fund, Donations Fund, Special Investigations Fund, Drainage Utilities Fund, Gas Development Fund and Traffic Safety Fund. Park 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. Financing is provided primarily from the half -cent sales tax and NRH Centre revenues. Crime Control and Prevention District Fund Accounts for the accumulation and use of the half -cent sales tax proceeds dedicated for crime prevention and reduction programs. Financing is provided primarily from sales taxes, franchise fees and investment income. Voters reapproved the Crime Control and Prevention District (CCD) for 20 years in May 2010. Promotional Fund Accounts for the operations and expenditures for which hotel /motel occupancy taxes are used. Occupancy tax revenues are used primarily to attract tourists and new businesses to the City. Donations Fund Accounts for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support library activities, the Animal Adoption and Rescue Center, and special events /public art. The Donations Fund derives most of its revenue from contributions made through city utility bills. The contributions are 13 Other Information MR" allocated to the Library ($0.65), Humane Services ($0.65), and special events and arts ($0.20). Special Investigations Fund Accounts for the accumulation and use of resources from the forfeiture of contraband and certain other specialized police activities. Revenues for this fund are derived from federal and state forfeited funds and the automated fingerprint identification system (AFIS) program. Forfeited funds revenues are dependent on which cases go to court and whether or not a judge releases any funds to the City. These revenues fluctuate year to year depending on actual cases involving actual court awards, making it difficult to predict the amount of funds that will be available for the following fiscal year. Drainage Utilities Fund Accounts for the monthly fees charged to residents and businesses to pay for the cost of storm drainage improvements throughout the City. Revenues are transferred to the Debt Service Fund to pay for principal and interest on bonds approved by voters for drainage improvements. Gas Development Fund Accounts for the accumulation and expenditures of resources from gas drilling and exploration on City -owned property. Traffic Safety Fund Accounts for resources that will assist in various traffic safety initiatives, revenue is received primarily through the City's red light camera program. Enterprise Funds Enterprise Funds account for services that are funded directly through user fees. They are financed and operated similar to a private business in that the costs of providing goods and services are self - supporting. These funds include the Utility Fund, Golf Course Fund and Aquatic Park Fund. 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. 14 Other Information Aquatic Park Fund MR" Accounts for the operation of NRH2O, the City's public waterpark. 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. 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. Internal Service Funds Internal Service Funds are used to account for the financing of materials and services provided by one department to other departments on a cost reimbursement basis. Internal Service Funds are designed to clearly delineate the costs associated with these services. These funds include the Facilities /Construction Management Fund, Fleet Services Fund, Information Services Fund and Self Insurance Fund. Facilities /Construction Management Fund Accounts for building maintenance and repair services provided to numerous departments located at various sites throughout the City. Facility /Construction Management Fund operations are financed by charges to user departments. Fleet Services Fund Accounts 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. Information Services Fund Accounts for the acquisition, maintenance, and support of computer and telephone, hardware and software. Information Services Fund operations are financed by charges to user departments. Self Insurance Fund Accounts for the payment of insurance premiums and medical, prescription, dental, property and casualty claims. Self- Insurance Fund operations are financed by charges to user departments and employee contributions. 15 CITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, June 9, 2014 6:00 P.M. A.0 Discuss Items from Regular City Council Meeting A.1 Presentation and Discussion of Proposed Estate Lot Designations (20 Minutes) B.0 EXECUTIVE SESSION - The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase, exchange, lease or value of real property in the southwest sector 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 June 6, 2014 at 2'.23 p.m. 40 CQd A"-� r 4sis` ht City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 - 427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. City Council Agenda — June 9, 2014 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, June 9, 2014 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 Barth A.2 Pledge - Councilman Barth A.3 Special Presentation(s) and Recognition(s) - Presentation of Teen Court Scholarships by Teen Court Advisory Board 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. City Council Agenda — June 9, 2014 Page 2 of 4 B.1 Approval of Minutes of May 19, 2014 City Council Meeting C.0 PUBLIC HEARINGS C.1 SUP 2014 -02 Public Hearing and Consideration of a Request from the Caffey Group, LLC for a Special Use Permit for the Kest gas well pad site located on a portion of Lot 1, Block 2, City Point Addition in the 4200 Block of Ruth Road - Ordinance No. 3310 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 Award RFB 14 -023 to Medora Corporation in the amount of $62,482 for Bursey Water Storage Tank Solar Power Mixer Unit F.0 GENERAL ITEMS F.1 Renew the Joint Administration Agreement for Community Development Block Grant and HOME Investment Partnership Programs with Tarrant County for Fiscal Year 2015- 2017 - Resolution No. 2014 -016 F.2 Approve the Purchase of Cisco Network Equipment, Servers, Software Maintenance and Licensing from Synetra in the Amount of $82,794.75 F.3 Approve Denial of Rate Increase Requested by Atmos Energy Corporation, Mid -Tex Division - Resolution No. 2014 -015 F.4 Authorize the purchase of dispatch consoles for the new City Hall Communications Center from Watson Furniture Co. in the amount of $181,539.76 to be reimbursed by the Tarrant County 9 -1 -1 District PSAP Assistance Program F.5 Approval of an agreement with the Birdville Independent School District for assignment of School Resource Officers 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 Turnage H.2 Adjournment City Council Agenda — June 9, 2014 Page 3 of 4 All items on the agenda are for discussion and /or action. rPrfifirafinn I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on June 6, 2014 at P.M. 4istant City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 - 427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. City Council Agenda — June 9, 2014 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, June 9, 2014 6:00 P.M. A.0 Discuss Items from Regular City Council Meetinq A.1 Presentation and Discussion of Proposed Estate Lot Designations (20 Minutes) B.0 EXECUTIVE SESSION - The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase, exchange, lease or value of real property in the southwest sector of the City C.0 Adjournment 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.0 Discuss Items from Regular City Council Meeting 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.1 Presentation and Discussion of Proposed Estate Lot Designations (20 Minutes) Presenter: John Pitstick, Planning & Development Director Summary: Discussion with City Council for determining final options for designation of Estate lot areas. Estate Lot: The R -1 -S (Special Single Family Residential) zoning was created in the late 1990's to allow large lot estates (1 acre +) with limited livestock and non - masonry buildings. Most of the zoning applications have been requested because of the demand for large accessory buildings that can be built without full masonry requirements. R-1 -S has occurred throughout the city, sometimes sporadically. Currently there is no distinction between several single family zoning districts on the Comprehensive Land Use Map. The single family zoning districts vary from less than 1 unit per acre up to 6 units per acre. Market demand is also creating competition between rural lots and traditional R2 zoning on the same land areas. There are some perceived conflicts from R2 development adjacent to rural estates where there are livestock and large accessory buildings. Also, the rural estate owners have concerns about multiple 2 -story homes overlooking rural estate areas. April 21, 2014 Joint P&Z and City Council work session summary: City Council and P &Z members came to a consensus to support designation of Estate districts in NRH; to limit future R -1 -S zoning to these designated districts; and to discourage R -1 -S zoning outside of designated Estate areas. Staff research clearly indicates that there are only two primary Estate areas that have sustainable contiguous areas. These include Little Ranch /Meadow Creek and Continental Trail /Valley. (please see maps below) Staff has also researched other cities standards for Estate type zoning and will be presenting typical standards appropriate for this type of zoning. Currently, staff evaluates R -1 -S zoning requests on a one -on -one case. But generally considers this type of zoning all over the city where the minimum requirements are met. Staff seeks clarification and final direction regarding designation of Estate lot areas. Staff will be giving a presentation regarding these issues and will be seeking direction and consensus on future Estate lot development based on the three below scenarios. Zoning as Usual (no go) - Regulate Estate areas through one -on -one zoning cases with general City Council policy to allow R -1 -S zoning in Little Ranch/Meadow Creek and Continental Trail /Valley areas while discouraging R -1 -S zoning outside of these areas. This is similar to what we currently do except in this option we would discourage R -1 -S everywhere except in the two areas identified above. or Comprehensive Plan Update (slow go) — Incorporate new Estate district policies and outline Estate area boundaries through Comprehensive Plan update over the next couple of years. or Create new Estate zoning district (Go Go!) - Develop new standards and boundaries with city initiated rezoning to include lot, square footage, architectural, entryway, driveway and fencing standards for designated Little Ranch/Meadow Creek and Continental Trail /Valley areas. Min Area none 40 acres Min Width 85' 100' Min Depth 120' 200' Dwelling size 2,300 s. f. 31000 s.f. Front Bldg line 25' 40' Continental TrailNalley area L ®G LOCATIONI I.. P M+ I T IAG III9.5 awxilry ran nm hen �aa was �u�na� 7 r i�r /i r r ,� 4�'/' Legend II Aft ollid ,IrC;CU aq rn,�,n,� r,ndf� ar>,;.� / r � p �/ Z /i m 0 BONN, Little Little Ranch /Meadow Creek area 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 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 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. B.1 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase, exchange, lease or value of real property in the southwest sector of the City Presenter: Craig Hulse, Economic Development Director 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 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, June 9, 2014 7:00 P.M. A.0 Call to Order - Mayor Trevino A.1 Invocation - Councilman Barth A.2 Pledge - Councilman Barth A.3 Special Presentation(s) and Recognition(s) - Presentation of Teen Court Scholarships by Teen Court Advisory Board 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. B.1 Approval of Minutes of May 19, 2014 City Council Meetinq C.0 PUBLIC HEARINGS C.1 SUP 2014 -02 Public Hearing and Consideration of a Request from the Caffey Group, LLC for a Special Use Permit for the Kest gas well pad site located on a portion of Lot 1, Block 2, City Point Addition in the 4200 Block of Ruth Road - Ordinance No. 3310 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 Award RFB 14 -023 to Medora Corporation in the amount of $62,482 for Bursey Water Storage Tank Solar Power Mixer Unit F.0 GENERAL ITEMS F.1 Renew the Joint Administration Agreement for Community Development Block Grant and HOME Investment Partnership Programs with Tarrant County for Fiscal Year 2015 -2017 - Resolution No. 2014 -016 F.2 Approve the Purchase of Cisco Network Equipment, Servers, Software Maintenance and Licensing from Synetra in the Amount of $82,794.75 F.3 Approve Denial of Rate Increase Requested by Atmos Energy Corporation, Mid - Tex Division - Resolution No. 2014 -015 F.4 Authorize the purchase of dispatch consoles for the new City Hall Communications Center from Watson Furniture Co. in the amount of $181,539.76 to be reimbursed by the Tarrant County 9 -1 -1 District PSAP Assistance Program F.5 Approval of an agreement with the Birdville Independent School District for assignment of School Resource Officers 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 Turnage H.2 Adjournment 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.0 Call to Order - Mayor Trevino 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.1 Invocation -Councilman Barth 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.2 Pledge - Councilman Barth 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.3 Special Presentation(s) and Recognition(s) - Presentation of Teen Court Scholarships by Teen Court Advisory Board Presenter: Karen Russell, Teen Court Advisory Board Chair Summary: The Northeast Tarrant Teen Court Board will be presenting the 2014 scholarships to Teen Court volunteers. General Description: The Northeast Tarrant Teen Court ( NETTC) includes teens from Watauga, Richland Hills, Haltom City and North Richland Hills. The NETTC Advisory Board is made up of representatives from all four cities that participate in Teen Court sessions and oversee a scholarship fund for the program. Teens participating in Teen Court, as well as the public, may donate funds to be used to provide scholarships to graduating seniors who have participated as volunteers in the Teen Court Program. Scholarship applicants must meet criteria which includes; years of volunteer service in the Teen Court program, a panel interview by the Teen Court Advisory Board, and an essay submission about the Teen Court Program. This year the Northeast Tarrant Teen Court Advisory Board would like to award scholarships to the following Teen Court volunteers: Leon Zajimovic Richland High School Dylan Barth Birvdille High School Mary Rofaeil Birdville High School Marina Rofaeil Birdville High School The Teen Court staff and Advisory Board would like to express their sincere thanks to the City Councils from all four cities for their continued support of the program which allows students to serve our communities while participating in and learning more about the judicial system. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 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. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. A.5 Removal of Item(s) from the Consent Agenda 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. 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. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. B.1 Approval of Minutes of May 19, 2014 City Council Meeting Presenter: Monica Solko, Assistant City Secretary Recommendation: To approve the minutes of the May 19, 2014 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 — MAY 19, 2014 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 16th day of May 2014 at 6:30 p.m. in the City Council Workroom prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Tito Rodriguez Mayor Pro Tem, Council, Place 1 Rita Wright Oujesky Council, Place 2 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 David Whitson Council, Place 5 Scott T urn age Council, Place 6 Staff Members: Karen Bostic Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer Kristin James Assistant to City Manager John Pitstick Director of Planning & Development Larry Koonce Finance Director Stan Tinney Fire Chief Kirk Marcum Assistant Fire Chief Kyle McAfee Assistant Fire Chief Cecilia Barham Library Director Mike Hamlin Assistant Police Chief Mike Young Assistant Police Chief Kyle Spooner Information Services Director Greg VanNieuwenhuize Engineer Absent: Tim Welch Council, Place 7 Mark Hindman City Manager Call to Order Mayor Trevino called the work session to order at 6:30 p.m. A.0 Discuss Items from Regular City Council Meeting There were no questions from Council. A.1 Library Update Cecilia Barham, Library Director, updated Council on library services and programs, including North Richland Hills Friends of the Library and the 2014 Mayor's Summer Reading Program. 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 *MIT C.0 Adjournment Mayor Trevino announced at 6:44 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 May 19, 2014 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Tito Rodriguez Rita Wright Oujesky Tom Lombard Tim Barth David Whitson Scott T urn age Mayor Mayor Pro Tem, Council, Place 1 Council, Place 2 Council, Place 3 Council, Place 4 Council, Place 5 Council, Place 6 Staff: Karen Bostic Assistant City Manager Absent Jimmy Perdue Mike Curtis Vickie Loftice Monica Solko George Staples Tim Welch Mark Hindman Director of Public Safety Managing Director Managing Director Assistant City Secretary Attorney Council, Place 7 City Manager A.1 INVOCATION Mayor Pro Tem Rodriguez gave the invocation. A.2 PLEDGE OF ALLEGIANCE Mayor Pro Tem Rodriguez led the pledge of allegiance. A.3 OATH OF OFFICE Mayor Trevino called for Place 2 Rita Wright Oujesky to come forward for her oath of office. Ray 0ujesky administered the oath of office to Rita Wright 0ujesky. Mayor Trevino called for Place 4 Tim Barth to come forward for his oath of office. Dylan Barth administered the oath of office to Tim Barth. Mayor Trevino called for Place 6 Scott Turnage to come forward for his oath of office. Reed Turnage administered the oath of office to Scott Turnage. Mayor Trevino stepped down from the Council dais to take his oath of office. Robert, Vanessa and Reis Copeland administered the oath of office to Oscar Trevino. A.4 SPECIAL PRESENTATION AND RECOGNITION(S) 2013 Lone Star Achievement Award for Firefighters Safety Fire Chief Stan Tinney recognized the NRH Fire Department for being one of the fourteen area departments recognized with the 2013 Lone Star Achievement Award for Firefighters Safety from the Texas Fire Chiefs Association. *MIT A.5 CITIZENS PRESENTATION A.6 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA Councilman Lombard removed Consent Agenda Item 13.2. B.0 APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF MAY 12, 2014 CITY COUNCIL MEETING =1ITI1011FA =1I] COUNCILWOMAN WRIGHT OUJESKY MOVED TO APPROVE THE CONSENT AGENDA. MAYOR PRO TEM RODRIGUEZ SECONDED THE MOTION. MOTION TO APPROVE CARRIED 6 -0. B.2 APPROVE SECOND AMENDMENT TO TOWER SITE AGREEMENT WITH STC FIVE LLC AND GLOBAL SIGNAL ACQUISITIONS II LLC. Mayor Trevino advised Councilman Lombard would be abstaining because he is an employee at AT &T. An affidavit of disqualification has been completed by Councilman Lombard and filed with the City Secretary stating the nature of the interest was his employment with AT &T. MAYOR PRO TEM RODRIGUEZ MOVED To APPROVE THE SECOND AMENDMENT TO TOWER SITE AGREEMENT WITH STC FIVE LLC. AND GLOBAL SIGNAL ACQUISITIONS II, LLC. COUNCILMAN WHITSONN SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5 -0 -1; COUNCILMAN LOMBARD ABSTAINING. C.0 PUBLIC HEARINGS No items for this category. D.0 PUBLIC WORKS Items to follow do not require a public hearing. No items for this category No items for this category. No items for this category. E.0 PUBLIC WORKS F.0 GENERAL ITEMS F.1 ELECTION OF MAYOR PRO TEM ❑PPRC]Vpn Mayor Trevino called for a nomination. COUNCILMAN LOMMBARD MOVED TO NOMINATE COUNCILWOMAN WRIGHT OUJESKY AS MAYOR PRO TEM. COUNCILMAN WHITSONN MOVED TO CEASE NOMINATIONS. Mayor Trevino closed nominations and called for the vote. MOTION TO APPROVE CARRIED 5-1; COUNCILWOMAN WRIGHT OUJESKY VOTING AGAINST. G.0 EXECUTIVE SESSION ITEMS G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA 1CMI T H.0 INFORMATION AND REPORTS H.1 ANNOUNCEMENTS Councilman Lombard made the following announcements. This week is National Public Works Week, a time to recognize the many contributions that Public Works employees make in our community. Public Works employees are the unsung heroes who build and maintain our city's infrastructure, such as streets and sidewalks; traffic signals and signs; and our water, sewer and drainage systems. The health, safety and comfort of our community is greatly dependent on the services that Public Works employees provide. In honor of National Public Works Week, we recognize the employees of the North Richland Hills Public Works Department and thank them for their dedicated service to our community. City Hall and other non - emergency City offices will be closed on Monday, May 26th, for the Memorial Day Holiday. The NRH Centre, Iron Horse Golf Course and NRH20 Family Water Park will be open on Memorial Day. Garbage and recycling will be collected as normal. Keep NRH Beautiful invites you to participate in the "I Dig My Garden" Photo Contest now through July 31 st. Entry forms are available at City Hall, Neighborhood Services and online at www.nrhtx.comlphotocontest. Winning photos will be displayed on the city's website and the winner will receive a $25 gift card from a local nursery. For more information, contact Debbie York at 817- 427 -6650. Kudos Korner - David Simmons of the Fire Department. A citizen called to express thanks and appreciation for David who came to her rescue after a recent meeting at City Hall. Following the meeting she discovered she had low tire pressure. David not only put air in her tire, he led her through the confusing highway construction zone so she could get back home. She greatly appreciated his kindness and help. David exemplifies the spirit of public service and is an asset to the community. H.2 ADJOURNMENT Mayor Trevino adjourned the meeting at 7:32 p.m. Oscar Trevino — Mayor ►:rid =36 Monica Solko, Assistant City Secretary 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. C.0 PUBLIC HEARINGS 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. CA SUP 2014 -02 Public Hearing and Consideration of a Request from the Caffey Group, LLC for a Special Use Permit for the Kest gas well pad site located on a portion of Lot 1, Block 2, City Point Addition in the 4200 Block of Ruth Road - Ordinance No. 3310 Presenter: John Pitstick, Planning & Development Director Summary: The Caffey Group has made application for a Special Use Permit for an initial 4 acre gas drilling and production pad site with frac pond area on property in the 4200 block of Ruth Road. The Caffey Group is requesting to drill up to 16 gas wells from this site and has shown a final production pad site to be reduced to 1.93 acres at the completion of drilling activities. SUP approval for gas well pads are required on all non- residential properties with appropriate technical and safety plans and a master development plan indicating how the proposed gas well site will not prohibit or hinder future development on prime non - residential properties. This SUP only includes potential approval for a gas well pad site. Specific gas drilling and production permits would be issued by staff and the Gas Board would be responsible for deciding any setback variances through a public hearing process on all gas wells that fall within 600 feet of 2 church properties and several businesses on Wellman Drive. A 150 foot "no build" zone easement outside the boundaries of the pad site is also required and being established. SUP Process The SUP process provides for a land use to occur within a zoning district that would not otherwise allow such a use by right. Such uses typically warrant the consideration of special conditions to reduce adverse effects on adjacent or surrounding properties. Essentially, the City can require additional stipulations beyond the regulations in Chapter 104: "Gas Well Drilling and Production" of the City Code to enhance visibility and aesthetics. In this effort, the Caffey Group is proposing to provide certain improvements before they are required to be installed. The actual process of permitting the individual gas wells at this site is a separate process that will require separate permits approved by staff for each of the proposed gas wells. This permitting process requires the gas operator to demonstrate compliance with the technical details, safety issues and the other regulations indicated in Chapter 104. EXISTING ZONING: The property is currently zoned C1 (Commercial) which is typically appropriate for retail or office uses. This property also falls directly adjacent to the recently zoned City Point area planned for multifamily to the east and retail to the north. Property to the south includes Institutional zoned property occupied by the Richland Methodist Church. The property to the west is zoned C1 Commercial and includes a series of office and commercial buildings along Willman Drive. REVIEW OF GAS WELL REGULATIONS: The City Council and the Planning & Zoning Commission are aware that North Richland Hills currently has seven operating gas well sites. The TCCD site and Rick site previously were granted a Special Use Permit. An SUP for a gas well is required when the proposed gas well site is located in a zoning district other than Agricultural or Residential. The primary reason behind requiring an SUP for a gas well site in a zoning district other than Agricultural or Residential zoning districts is to protect property in the "other" districts from being burdened with long term gas well sites that could diminish the ability to fully develop the property. For this reason the first concern in considering approval of a potential gas well pad site should be to ensure that the gas well does not hamper or burden the land use and building potential of the property. The Special Use Permit process cannot relax any regulations and as such, approval of an SUP does not grant any variances to the requirements mandated by Chapter 104. The proposed Kest gas well pad site is within 600 feet from the Methodist Church, Catholic Church and a few commercial properties on Willman Drive, but does not include any single family properties. The Caffey Group will need to make a separate variance application if the SUP is approved and receive approval from the Gas Board of Appeals prior to the drilling of any wells that are within 600 feet from these institutional and commercial buildings. Approval of this SUP will not grant a variance to the 600 foot setback requirement. Staff is notifying all properties outside of 200 feet from the greater pad site which should include the primary properties within 600 feet of all proposed wells. REVIEW OF GAS DRILLING OPERATIONS: Typical gas well drilling and production involves several operations with the main actions being drilling, fracturing, pipeline connections and production. Multiple wells can also be drilled from a single pad site. Individual wells can be drilled within 10 feet of each other and can access areas 360 degrees from the well site much like spokes on a wheel. Different subsurface geology can cause more directional focused drilling along fracturing lines. Drilling operations include the initial vertical penetrations of approximately 5,000 feet to the Barnett Shale and horizontal drilling up to 6,000 feet which allows for the reaching of subsurface properties more than a mile from the drill hole. Drilling typically lasts 30 days and involves 24 hour operations which includes the erection of major drilling towers, installation of sound reducing devices, drilling and other activities. Fracturing operations involve pumping pressurized water and sand into the drill hole that stimulate fractures deep in the shale and allow the gas to escape. These operations typically last a few days and may involve flaring to make the gas ready for production. Gas pipelines are required to be constructed in order to get the gas transported to market; they must be built directly to the gas well site and connected and distributed to major markets. Production is the final process and generally a quiet activity whereby the gas exits the well, enters the pipeline and is transported to an endpoint. Properly screened and buffered sites should cause little notice of production activities. Production does however require weekly maintenance and trucking operations to remove water waste from onsite storage tanks. REVIEW OF KEST PAD SITE SUP SITE PLAN: The specific SUP for a gas well pad site includes the following information. Conceptual Development Plan- One of the primary requirements of the SUP is to provide a master development plan to ensure that the gas well site does not hamper or burden the land use and building potential of the property. This property is left over land outside of the City Point Planned Development area with access off of Ruth Road. Plans indicate that the final pad site will be less than 2 acres and be reduced to allow for future commercial development to the north. The Kest development also includes a plan for future multifamily apartments directly east of Ruth Road. By reducing the ultimate production pad site from almost 4 acres down to 2 acres will allow for the provision of the 150 foot "no build" zone around the final pad site and provide for effective use of a potential commercial development along Boulevard 26 north of this site. Drilling Site Plan — The drilling site plan indicates the potential for 16 gas wells and also shows the initial construction of a masonry wall and concrete drive prior to drilling which exceeds current gas drilling requirements. Production Site Plan — The production site plan indicates full masonry wall with appropriate landscaping around the entire pad site. Masonry Wall details — The site plan indicates an 8 foot verticrete ashlar patterned wall similar to other gas well sites including TCCD and Little Bear. Drainage Area map — Appropriate grading is provided for the site. Drainage inlets will have to be installed on the northeast corner of the pad site. Transportation Route — The plan indicates the primary access off of Ruth Road to Glenview Drive. This drive off of Ruth Road will be shared with NRH City Hall construction traffic. An alternate travel route includes access to Boulevard 26 if access is not available to Glenview Drive. Landscape Plan — The landscape plan includes large trees such as Live Oaks, Cedar Elm, Red Oak and Bosque Elm around the pad. Holly and wax myrtle and grasses are also included around the masonry wall. The initial landscaping at the northern wall will include Desert Willow and Crepe Myrtle to eventually be removed and relocated at the time the final smaller pad is established. Line of Sight plan — The line of sight from the west, north and south provide effective screening with the 8 foot masonry wall. The future multifamily may include 3 -story apartments that will have visible access to the pad site from upper floors. Upper floors of the NRH City Hall should be effectively screened from any view of the Kest pad site because the multistory apartments will block this view corridor. Photometric Analysis — The photometric analysis indicates that no light should affect the existing adjacent properties. Pipeline Route — Connecting a required pipeline to the Kest Pad site will be from a main pipeline valve station adjacent to Calloway Creek and the Medical Office Building. The initial temporary route shows that the pipeline connection will traverse property lines adjacent to the church, City Hall property and Kest land holdings. Staff would recommend that any pipeline connections anticipated across NRH City Hall property be established quickly prior to any parking lot construction or that future pipeline plans be outside of NRH property. Fracking Plan — A one acre fresh water Frac pond is shown directly south of the Kest drilling pad to provide water for fracing. The Frac pond is required to be reclaimed at the end of drilling all wells. STAFF CONSIDERATION: The proposed Kest Pad Site is in a commercial area that is not visible from the traveling public and therefore not very marketable for commercial uses. The ultimate development plan indicates a reduction from 4 acres to less than 2 acres for the final pad site that will allow for future commercial and office buildings to develop to the north along Boulevard 26. The surrounding masonry screening wall and landscaping is compatible with similar gas well pad sites established in the city. There are no existing residential properties within 600 feet of proposed gas wells. The Kest pad site provides effective technical, safety and aesthetic plans and the provision of a significant reduction in the ultimate pad site. STAFF RECOMMENDATION: Staff recommends approval of SUP 2014 -02 with the following stipulations: • The surrounding church properties and commercial building owners along Wellman Drive have input and appropriate aesthetic concerns be addressed as part of this SUP approval. • A permanent concrete access driveway and 8 foot masonry wall and landscaping be established prior to any drilling activities. • Maximum number of gas wells is 16. • SUP is restricted to 5 years from the date of approval. PLANNING & ZONING COMMISSION RECOMMENDATION: The Planning & Zoning Commission met on May 15, 2014 and voted 6 -0 to recommend approval with the following stipulations: • The surrounding church properties and commercial building owners along Wellman Drive have input and appropriate aesthetic concerns be addressed as part of this SUP approval. • A permanent concrete access driveway and 8 foot masonry wall and landscaping be established prior to any drilling activities. • Maximum number of gas wells is 16. • SUP is restricted to 5 years from the date of approval. MAP AERIAL PHOTO PROPERTY OWNER NOTIFICATION qtr NOTICE OF PUBLIC HEARINGS CITY OF NORTH RICHLAND HILLS PLANNING AND ZONING COMMISSION FX AND CITY COUNCIL Case Number: SUP 2014-02 Applicant: The Caffey Group, LL,C III 1 .1 PT-TE -;MT 11 IF :-rq 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 Caffey Group, LLC for a Special Use Permit for the Kest gas well pad site located on a portion of Lot 1, Block 2, City Point Addition in the 4200 block of Ruth Rd, Public Hearing Schedule: Public Hearing Dates: PLANNING AND ZONING COMMISSION 7:00 PIM THURSDAY, MAY 15, 2014 CITY COUNCIL 7:00 PM MONDAY, JUNE 9, 2014 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 (Hillis 7301 Northeast Loop 820 North Richland Hills, Texas 76180 Phone (817) 427-6300 Fax (817) 427-63013 LIST OF NOTIFIED PROPERTY OWNERS Grant, Miichael 4146 Willman Ave N R H Tx 76180-8616 Jordan, Linda D 56001 Meadows Way N IR H Tx 761 90 -6315 Current Owner 4164 Willman Ave N R H Tx 76180-81616 Cncor Ellectir6o Dellivery Co LILC State & Local Tax I PC Box 219,071 Dallas Tx 75221-91071 St John The Apostle Ch 900 W (Loop 920 S (Port Worth Tx 76108-2936 Pettit„ Melissa Glenn 4150 Willman Ave N R Y-I Tx 76180 -8616 Darrow, Kean P.tux Cheryl (Darrow PLi Box 1806 Colllleyville Tx 79034 -1805 Current Owner 41616 Willman Ave NRH Tx 76160 -8616 Richland Hills Methodist Ch 7301 GVeinvIIew Dr Fort Worth Tx 76180 -8337 Iron, Rod eir & D Daugherty %IIlnc PO IBox 1714 Colleyvillle Tx 76934.1714 Herndon, Wayne L 815 Wheellwood Dr Hurst Tx 76053 -3834 Herindoirn„ Wayine L Cool Air 7502 Boullevaird 26 NRIH Tx 76180 -8318 La Verne Buttertielfd LIP 5150 Overland Ave Culver City Ca 90230-4914 ORDINANCE NO. 3310 SUP 2014 -02 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, AMENDING THE COMPREHENSIVE PLAN AND THE COMPREHENSIVE ZONING ORDINANCE BY APPROVING A SPECIAL USE PERMIT FOR THE KEST GAS WELL PAD SITE LOCATED ON A PORTION OF LOT 1, BLOCK 2, CITY POINT ADDITION IN THE 4200 BLOCK OF RUTH ROAD; ESTABLISHING A PENALTY; PROVIDING FOR PUBLICATION AND PROVIDING AN EFFECTIVE DATE. WHEREAS, notice of a hearing before the Planning and Zoning Commission was sent to real property owners within 200 feet of the property herein described at least 10 days before such hearing; 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 Council is of the opinion that the zone change herein effectuated furthers the purpose of zoning as set forth in the Comprehensive Zoning Ordinance and is in the best interest of the citizens of the City of North Richland Hills; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT the Comprehensive Plan and the Comprehensive Zoning Ordinance are hereby amended by amending the zoning of Lot 1, Block 2, City Point Addition to the City of North Richland Hills, located in the 4200 block of Ruth Road and approving a special use permit to allow for the Kest gas well pad site and approving the legal description attached hereto as Exhibit A and the site plan attached hereto as Exhibit B. Section 2: Any person, firm or corporation violating any provision of the Comprehensive Zoning Ordinance and the zoning map of the City of North Richland Hills as amended hereby 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 3: The City Secretary is hereby authorized and directed to cause the publication of the descriptive caption and penalty clause of this ordinance two times. Section 4: This ordinance shall be in full force and effect immediately after passage. PASSED AND APPROVED on the 9th day of June, 2014 ►:ri III =36 Monica Solko, Assistant City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: John Pitstick, Planning & Development Director Oscar Trevino, Mayor EXHIBIT A DESCRIPTION OF A OPERATIONS SITE BEING tract oHands it uated in tho WAV, Wallacc Survey —Abstract Numhor W)6, City cat' North Richland Mls,Tarrant County. Texas and being as por-tion ofthoso trads, kit'hind descrihQd by decd to in LA Verne Butterfield, L.P. as recorded in Instniment NU111bCr D20 5028589, and [A I R, Mock 13. Shopping Center SiW, an addilion to the Oty ol'Norlh R icWaiid Ifilfisas rQQordcd in Cabinct 388-186, Page 7& IxAh of County Records, Tarrant County, YQxas, and being more part icularly described by mcte�,,, and boun� as 1'611on"�,.,: COMMENCING at a 1 2 hich iron rod lound at the nortli eaast cornor ol'said 1A Verne Buftorfie[d Inact, Uff,NCE S 89136'54"W, 24.70 reel to the POIN'TOF IWXANNING' THENCE S 00"2712-F, 411'2,111 fecl� ,ri[ENCE S 89"4414-W, 444.1111 fiocl, THENCE N 001710"W, 130.00 d'bet; ,ri[ENCE S 89'52'26-1 6162 fcct; ,ruENCE N 00`27" L2"W, 327.02 Cod; 'mENCT W-52'26"1;, 371,00 Coot, THENCE 15 00"2712"E, 19.00 fcct; THENCE N 89"32AWT, 10.00 fcet: ,mENC T S 00`2919-F, 33M t 1co to the P0111t, of Beginning and con-taining 1'141.432 s quaarc fect or 4.165 acres of land morc or Icss. 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T. 7, A 2 -1 g. 3 2 I '4 �t 4z —7 2 2 2 t 2 2 t 2 2 z Z Z, 71 7 7 2 r2 L 't 6 2 . ... .. ......... . 00 U- 0 co - - - -- ------------ EXCERPT FROM THE MINUTES OF THE MAY 15, 2014 PLANNING AND ZONING COMMISSION MEETING SUP 2014 -02 Public Hearing and Consideration of a request from The Caffey Group, LLC for a Special Use Permit for the Kest gas well pad site located on a portion of Lot 1, Block 2, City Point Addition in the 4200 block of Ruth Rd. John Pitstick came forward to present staff's position on the SUP zoning application. The 600 foot radius from the Kest gas well pad site includes commercial property and a couple of church sites. There is a 150 foot "no build" zone around the site. Any gas wells considered for the site would require additional approval. Valve or lift stations would need to be contained within the site pad. Staff expresses a concern regarding where the gas pipeline would travel from pad site to valve station around City Hall parking lot construction. Staff is generally supportive of the request with the stipulation that the churches & commercial building owners along Willman have input. An eight (8) foot masonry wall and landscaping will be in place prior to construction. Likewise, stipulation of a maximum of sixteen (16) wells and a five (5) year maximum time frame from approval date for the SUP. Patrick Filson; 5751 Kroger Dr; Ft Worth, TX, representing The Caffey Group came forward presenting the applicant's SUP request. Caffey has worked with Mr Pitstick and staff. We may need to modify the pipeline alignment as we work through the City Hall construction plans with Staff. The Caffey Group has received a number of letters of support from surrounding properties. Per Staff recommendations, we are planning a double row of landscape screening in front of masonry screening wall prior to drilling operations. We understand the approval requirement for each gas well drilling permit. Chairman Randall Shiflet opened Public Hearing of SUP 2012 -02 at 07:16pm. Mark Hancock, Chairman of Board of Trustees, representing Richland Hills Methodist Church, 6104 Circleview Drive; Haltom City, TX came forward. He stated that they have signed a waiver in favor of the well site. Ken Kenvin; 7341 Glenview Dr; NRH, representing St John the Apostles Catholic Church at 7341 Glenview Drive came forward, neither in favor or in opposition. This was an informational briefing. Concerns over potential noise, drilling /construction safety and proximity to church and school. We have 4,000 registered families as well as 250 children in school and 100 children in day care. Our property is mostly outside of the 600 foot radius. Gas line runs right along our property line, adjacent to athletic field. Paul Lee; 7813 Conn Drive; NRH came forward in favor. I am President of North Hills Mineral Owners Coalition. We comprise 1,300 members within these proposed units in a wide area, including a working relationship with the hospital. We are supportive of the whole concept, but not yet in agreement. Residential and commercial are in favor of moving forward. Debra Gagliardi; President Gagliardi Croup, Inc.; 5712 Cherrywood; Arlington, TX. I represent The Kest Group on this project. Kest would like to address the one issue with the church. Kest has been working with the City, Caffey Group and Peleton for over a year. Original location was slightly west of City Hall, close to the school. The school is one of the primary reasons for the current site location. We hope this is beneficial to all parties. Lofts and multi - family just west of the City Hall will be outside the 300 foot radius. Chairman Randall Shiflet closed Public Hearing of SUP 2012 -02 at 07:23pm. MOTION TO APPROVE Bill Schopper motioned to approve SUP 2014 -02, including staff recommendation and stipulations, as proposed. The motion was seconded by Mark Haynes. Don Bowen confirmed with Mr. Pitstick that the gas well route was a staff concern, not a concern for this Board. Bill Schopper brought up a point of information regarding staff recommendations that surrounding properties provide input; that driveway, landscaping and screening wall be established prior to drilling activities; that there is a maximum of 16 wells and SUP restriction of 5 years from date of approval. Don Bowen brought up his primary concern for the multi - family. However the gas well will be place before the multi - family comes into place, so they would know what they are getting. Jerry Tyner requested landscaping clarification for the reclaimed frack pond. Mr. Filson clarified the final plan along the south side of trees and shrubs. When frack pond is filled in, it will revert to natural vegetation. APPROVAL The motion passed (6 -0). 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. E.0 PUBLIC WORKS 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. EA Award RFB 14 -023 to Medora Corporation in the amount of $62,482 for Bursey Water Storage Tank Solar Power Mixer Unit Presenter: Jimmy Cates, Public Works Operations Manager Summary: This is an item to award the purchase and installation of a solar powered water mixer unit for the elevated potable water storage tank located on Bursey Road. The unit is being funded from the Utility Capital Project identified as UT1401 with an approved budget of $85,000. General Description: The elevated water storage tank on Bursey Road is a 2 million gallon tank that serves the northern portion of the city's water distribution system. The storage tank was constructed prior to the development of equipment used for circulating water inside a tank bowl. The mixing unit helps to keep the drinking water quality good by circulating water inside the tank which provides disinfectant boosting and eliminates water stagnation. There were two scheduled bid openings for the mixing unit with the first bid opening resulting in one bid proposal being received. Since only receiving one bid proposal, the bid time was extended for a week. During the extension of time, staff contacted several vendors and requested submittal of a bid proposal. A couple of the vendors stated they would consider submitting one. The second bid opening resulted in two bid proposals being received. Edwards Equipment, LLC $75,098.65 Medora Corporation $62,482.00 Medora Corporation bid proposal of $62,482 is well within the approved budget. The vendor has installed mixing units for the cities of Roanoke, Rockwall, McKinney and Plano. Medora also installed the mixing unit for the Shady Grove water storage tank located in North Richland Hills. The vendor has a good record of meeting the job specifications and work schedules. Recommendation: Award RFB 14 -023 to Medora Corporation in the amount of $62,482. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.0 GENERAL ITEMS 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.1 Renew the Joint Administration Agreement for Community Development Block Grant and HOME Investment Partnership Programs with Tarrant County for Fiscal Year 2015 -2017 - Resolution No. 2014 -016 Presenter: Kristin James, Assistant to the City Manager Summary: The joint administration agreement between the City of North Richland Hills and Tarrant County includes the administration of the Community Development Block Grant Program (CDBG) and HOME Investment Partnership Program which the City of North Richland Hills receives direct funding for. The agreement allows the City of North Richland Hills to continue to be a part of the Urban County for the purpose of program planning and implementation for the entire period of the Urban County qualification. General Description: In order to continue to receive CDBG and HOME entitlement funding through 2017, Tarrant County must once again qualify as an Urban County. Entitlement counties must re- qualify every three years for funding. Tarrant County is eligible to receive entitlement grant funds by having a combined population of 200,000 or more from unincorporated areas and participating municipalities. Under the Urban County designation Tarrant County is authorized to undertake essential community development and housing assistance activities without the consent of local governments; therefore, the County must notify local governments that they have the option to be included or excluded from the Urban County designation. North Richland Hills accepted its status to be included in the Urban County and entered into a joint agreement with the urban county three years ago and wishes to maintain the same relationship with the county for this next qualification period. If the City of North Richland Hills chooses to renew and enter into an agreement with Tarrant County the city must notify Tarrant County through a signed resolution by June 30, 2014. Recommendation: Approve Resolution No. 2014 -016 the renewal of the Joint Administration Agreement for participation in the Community Development Block Grant and HOME Investment Partnership with Tarrant County for Fiscal Year 2015 -2017. IN * *QR1j11[0]24 F.WillE1111[.1 RESOLUTION REGARDING CITY OF NORTH RICHALND HILLS PARTICIPATION IN TARRANT COUNTY'S COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP AND EMERGENCY SOLUTIONS GRANT CONSORTIUM FOR THE THREE PROGRAM YEAR PERIOD, FISCAL YEAR 2015 THROUGH FISCAL YEAR 2017. WHEREAS, Title I of the Housing and Community Act of 1974, as amended through the Housing and Community Act of 1992, establishes a program of community development block grants for the specific purpose of developing viable communities by providing decent housing and suitable living environment and expanding economic opportunities principally for persons of low and moderate income, and WHEREAS, Title II of the Cranston - Gonzalez National Affordable Housing Act, as amended, establishes the HOME Investment Partnership Act to expand the supply of decent, safe, sanitary and affordable housing for very low- income and low- income Americans, and WHEREAS, Tarrant County has been designated an "Urban County" by the Department of Housing and Urban Development entitled to a formula share of Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) program funds provided said County has a combined population of 200,000 persons in its unincorporated areas and units of general local government with which it has entered into cooperative agreements, and WHEREAS, Article III, Section 64 of the Texas Constitution authorizes Texas counties to enter into cooperative agreements with local governments for essential Community Development and Housing Assistance activities, and WHEREAS, the City of North Richland Hills shall not apply for grants under the State CDBG Program from appropriations for fiscal years during the period in which it is participating in Tarrant County's CDBG program, and WHEREAS, the City of North Richland Hills shall not participate in a HOME consortium except through Tarrant County, regardless of whether or not Tarrant County receives a HOME formula allocation, and WHEREAS, through cooperative agreements Tarrant County has authority to carry out activities funded from annual Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) Program Allocation from Federal Fiscal Years 2015, 2016, and 2017 appropriations and from any program income generated from the expenditure of such funds, and WHEREAS, Tarrant County and the City of North Richland Hills agree to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities, and WHEREAS, Tarrant County will not fund activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the county's actions to comply with the county's fair housing certification, and WHEREAS, Tarrant County will not fund activities in support of City of North Richland Hills that does not comply with section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, and other applicable laws, and WHEREAS, the City of North Richland Hills has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations and WHEREAS, the City of North Richland Hills has adopted and is enforcing a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non - violent civil rights demonstrations within jurisdictions, and WHEREAS, Tarrant County and the City of North Richland Hills shall take all actions necessary to assure compliance with the Urban County's certification required by section 104 (b) of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, and Title VIII of the Civil Rights Act of 1968, section 109 of Title I of the Housing Community Development Act of 1974, and other applicable laws, and WHEREAS, prior to disbursing any CDBC, HOME and ESC Program funds to a subrecipient, Tarrant County shall sign a written agreement with such subrecipient, and WHEREAS, the City of North Richland Hills agrees to inform the county of any income generated by the expenditure of CDBC funds received and that any such program income must be paid to the county to be used for eligible activities in accordance with all CDBC, HOME and ESC Program requirements, and WHEREAS, in accordance with 24 CFR 570.501(b), Tarrant County is responsible for ensuring that CDBC, HOME and ESC funds are used in accordance with all program requirements, including monitoring and reporting to U.S. Department of Housing and Urban Development on the use of program income and that in the event of close -out or change in status of the City of North Richland Hills, any program income that is on hand or received subsequent to the close -out of change in status shall be paid to the county, and WHEREAS, in accordance with 24 CFR 570.501(b), Tarrant County, as the recipient is responsible for ensuring that CDBG funds are used in accordance with all program requirements. The use of designated public agencies, subrecipients, or contracts does not relieve Tarrant County of this responsibility. Tarrant County is also responsible for determining the adequacy of performance under subrecipient agreements and procurement contracts, and for taking appropriate action when performance problems arise, such as the actions described in §570.910. Where a city is participating with, or as part of Tarrant County Urban County, as a participating unit, or as part of a metropolitan city, the County is responsible for applying to the unit of general local government the same requirements as are applicable to subrecipients, except that the five -year period identified under §570.503 (b) (8) (i) shall begin with the date that the unit of general local government is no longer considered by HUD to be a part of the metropolitan city or urban county, as applicable, instead of the date the subrecipient agreement expires. WHEREAS, the City of North Richland Hills agrees to notify Tarrant County of any modification or change in the use of the real property from that planned at the time of acquisition or improvement, including disposition, and further agrees to reimburse the County in an amount equal to the current fair market value (less any portion thereof attributable to expenditure of non -CDBG funds) of property acquired or improved with CDBG funds that is sold or transferred for a use which does not qualify under the CDBG regulations, and WHEREAS, any money generated from disposition or transfer of property will be treated as program income and returned to the county prior to or subsequent to the close -out, change of status or termination of the cooperation agreement between county and the City of North Richland Hills; WHEREAS, Tarrant County and City of North Richland Hills may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non - Federal considerations, but must use such funds for activities eligible under title I of the Act in the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2014, Pub. L. 113 -76. NOW, THEREFORE, BE IT RESOLVED, by the City of North Richland Hills, that the City Council of North Richland Hills, Texas supports the application of Tarrant County for funding from Housing and Community Development Act of 1974, as amended, and Cranston - Gonzalez National Affordable Housing Act, as amended, and asks that its population be included for three successive years with that of Tarrant County, Texas to carry out Community Development Program Activities Eligible for Assistance under Public Law 93 -383, and Affordable Housing activities under Public Law 101 -625, and authorizes the Mayor of North Richland Hills, Texas to sign such additional forms as requested by the Department of Housing and Urban Development pursuant to the purposes of the Resolution, and further that the City of North Richland Hills, Texas understands that Tarrant County will have final responsibility for selecting projects and filing annual grant requests. BE IT FURTHER RESOLVED, this agreement will automatically be renewed for participation in successive three -year qualification periods, unless Tarrant County or the City of North Richland Hills provides written notice it elects not to participate in a new qualification period. Tarrant County will notify the City of North Richland Hills in writing of its right to make to such election on the date specified by the U.S. Department of Housing and Urban Development in HUD's urban county qualification notice for the next qualification period. Any amendments or changes contained within the Urban County Qualification Notice applicable for a subsequent three -year urban county qualification period must be adopted by Tarrant County and the City of White Settlement, and submitted to HUD. Failure by either party to adopt such an amendment to the agreement will void the automatic renewal of this agreement. This agreement remains in effect until CDBC, HOME, ESC funds and income received to the fiscal 2015, 2016, 2017 programs, and to any successive qualification periods provided through the automatic renewal of this agreement, are expended and the funded activities completed, neither Tarrant County nor the City of North Richland Hills may terminate or withdraw from the agreement while the agreement remains in effect. Official notice of amendments or changes applicable for a subsequent three -year urban county agreement shall be in writing and be mailed by certified mail to the City Secretary of the City of North Richland Hills. Any notice of changes or amendments to this agreement by the City of North Richland Hills to Tarrant County shall be in writing to the Tarrant County Community Development Division Director. ATTEST: CITY SECRETARY Commissioners Court Clerk day of 2014 APPROVED: MAYOR County Judge Approval Form for District Attorney Approved as to Form* *By law, the District Attorney's Office may only advise or approve contracts or legal documents on behalf of its clients. It may not advise or approve a contract or legal document on behalf of other parties. Our review of this document was conducted solely from the legal perspective of our client. Our approval of this document was offered solely for the benefit of our client. Other parties should not rely on this approval, and should seek review and approval by their own respective attorneys). JOINT ADMINISTRATIVE AGREEMENT FOR ADMINISTRATION OF COMMUNITY DEVELOPMENT BLOCK GRANT THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF TARRANT § The CITY OF NORTH RICHLAND HILLS, hereinafter called "City ", has accepted a designation by the United States Department of Housing and Urban Development (HUD) as a metropolitan city eligible to receive direct entitlement of Community Development Block Grant (CDBG) funds for the FY 2015 -2017 program years, and The CITY OF NORTH RICHLAND HILLS has entered into a cooperative agreement (attachment "Resolution ") with TARRANT COUNTY, hereinafter called "County ", to participate in the County's CDBG program as a metropolitan city eligible to receive direct entitlement of CDBG funds, and The CITY OF NORTH RICHLAND HILLS and TARRANT COUNTY have agreed to abide by HUD requirements as detailed in CPD 96 -04, Article 5, in the cooperative agreement (attachment "Resolution "), and in accordance with 24 CFR 570.308 Joint Requests. This JOINT ADMINISTRATIVE AGREEMENT is made and entered into by and between the City Council of the CITY OF NORTH RICHLAND HILLS and TARRANT COUNTY and the parties hereby AGREE as follows: 1. Scope of Term of Services. The County through this Joint Administrative Agreement agrees to administer on behalf of the City of NORTH RICHLAND HILLS all activities and requirements of federal, state and local law, and rules and procedures of the United States Department of Housing and Urban Development with regard to the City's Community Development Block Grant entitlement program for the Fiscal Years 2015 through 2017. 2. Distribution of CDBG. The City shall receive CDBG entitlement program funding from the County as an entitled metropolitan city. The amount of funding shall be equivalent to or greater than what HUD determines annually as the City's entitlement as a metropolitan city. 3. Duties of County. The County shall be responsible for administering all activities related to the City CDBG entitlement program in accordance with 24 CFR 570.500 Subpart "J" Grant Administration, 24 CFR 570.501(b), and 24 CFR 570.503. 4. Duties of the City. The City will approve all City CDBG entitlement program funding decisions. The City will determine specific programs, projects, or any other uses to the extent permitted and consistent with HUD eligible activities. 5. Administrative Expenses. The County shall retain, for HUD eligible reimbursable administrative costs, an amount not to exceed TWENTY PERCENT (20 %) of the total annual HUD allocation under 570.205, 5 70.20 6 and OMB Circular A -87 and A -133. This Joint Administrative Agreement is executed on behalf of the CITY OF NORTH RICHLAND HILLS and TARRANT COUNTY by its duly authorized officials. CITY OF NORTH RICHLAND HILLS Oscar Trevino, MAYOR of CITY of NORTH RICHLAND HILLS DATE: TARRANT COUNTY, TEXAS B. Glen Whitley, COUNTY JUDGE DATE: 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.2 Approve the Purchase of Cisco Network Equipment, Servers, Software Maintenance and Licensing from Synetra in the Amount of $82,794.75 Presenter: Kyle Spooner, Information Services Director Summary: The purpose of this project is the replacement of existing public PCs at the NRH Library with virtualized PCs. Virtualized desktops utilize back office equipment to perform their processes. The proposed solution will allow city staff to easily control, troubleshoot, and deploy Windows computing to current locations. This purchase allows Information Services to deploy 101 virtual desktops. General Description: Information Services has been evaluating the use of virtual desktops instead of conventional PC replacement and have found it to be a viable solution for this specific area at the NRH Library. Virtual PCs meet the need for users who only require the use of Windows and Office. The advantages of virtualizing desktops is flexible and quick deployment, ease of maintenance, desktop security and reduced costs. Currently the Library has 117 PCs scheduled for replacement. Of those computers, around 100 are being used by the public for various applications. The library is currently paying for a third party service to keep individual patrons from changing the user interface and settings on all public PCs. In the virtualized arena, each desktop is locked down to the user and reset to the original interface nightly. Additionally, the solution allows Information Services to deploy one of many standard interfaces to the virtualized desktops at any time. This solution will be evaluated for use in other areas of the City in the future. If we were to replace all of the proposed virtualized PCs with traditional desktop PCs, the cost involved would be around $175,000. Synetra participates in the State of Texas Department of Information Resources (DI R) cooperative purchasing program. By purchasing from this contract the city meets all State competitive bidding requirements. Recommendation: Approve the purchase of network equipment, servers, software and maintenance from Synetra in the amount of $82,794.75. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.3 Approve Denial of Rate Increase Requested by Atmos Energy Corporation, Mid -Tex Division - Resolution No. 2014 -015 Presenter: Karen Bostic, Assistant City Manager Summary: Earlier this year, Atmos Mid -Tex filed a Rate Review Mechanism request with the City to increase rates. The request was for a $45.7 million increase system -wide. The City worked with the Atmos Cities Steering Committee ( "ACSC ") to review documentation substantiating the rate increase. It was determined the amount of the rate request was not supported by the documentation and the ACSC Executive Committee tried to reach a compromise with Atmos. No compromise was reached so the next step in the process is for City Council to approve a Resolution to deny the increase. After the denial, Atmos will have the ability to appeal the denial to the Texas Railroad Commission. General Description: The City, along with approximately 164 other cities served by Atmos Energy Mid -Tex Division ( "Atmos "), is a member of the Atmos Cities Steering Committee ( "ACSC "). On or about February 28, 2014, Atmos Mid -Tex filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism ( "RRM ") tariff renewed by the City in 2013. This is the second annual RRM filing under the renewed RRM tariff. The Atmos Mid -Tex RRM filing sought a $45.7 million rate increase system -wide based on a test -year cost of service revenue deficiency of $49 million. Consultants working on behalf of ACSC Cities investigated the Company's requested rate increase. While the evidence does not support the $45.7 million increase requested by Atmos, ACSC's consultants agree that the Company can justify an increase of $19 million. The Executive Committee authorized a settlement value considerably above the consultants' recommendation but it was insufficient to meet the Company's expectation. The Company and ACSC Cities were too far apart in their positions to reach a compromise, and rather than granting a partial increase that the Company will not accept, the option remaining is to deny the rate increase request in its entirety, and participate in the Company's appeal of this decision at the Railroad Commission. As a reminder, the RRM tariff was adopted by the City as an alternative to the Gas Reliability Infrastructure Program ( "GRIP "), the statutory provision that allows Atmos to bypass the City to increase its rates annually to recover capital investments. In past years, cities have been able to reach a compromise with Atmos to reduce the rate impact from the requested RRM increases, and these compromises have also been lower than the rates that Atmos would have been entitled to under the GRIP filing. In this case, the Company would have been entitled to an increase from GRIP of no more than $31.5 million. The magnitude of the requested increase under the 2014 RRM filing, and the wide differences between it and the ACSC consultants' recommendations made a compromise much more difficult and ultimately impossible. Atmos requested more than it would be entitled to if it had filed a GRIP case. For this reason, the ACSC Executive Committee and ACSC legal counsel recommend that all ACSC Cities adopt the Resolution denying the requested rate change. Rates cannot change without the adoption of rate ordinances by cities. The purpose of the Resolution is to deny the rate increase requested by Atmos. Under the RRM tariff, Atmos may appeal the rate decision of the cities to the Railroad Commission within thirty (30) days of the City action. The RRM tariff also allows Atmos to implement its requested rates effective June 1 while any appeal at the Commission is pending, subject to refunds based upon the outcome of the appeal. This would represent a monthly increase of approximately $2.02 for the average residential customer, subject to any refund if the Commission reduces the rates implemented by Atmos. The attached resolution also authorizes the City to participate as a party to the appeal in conjunction with the ACSC, and requires Atmos to reimburse the City for its rate case expenses associated with the City's review of the RRM filing, and with the appeal of the City's denial of the rate increase. The RRM tariff constrains the annual increase in the residential base customer charge to no more than $0.50. The current $17.70 base customer charge will be increased to $18.20 per month plus there is a new $0.02 per month for an energy conservation program, making the new base customer charge $18.22 per month. An average customer comparison of rates for Atmos' RRM filing is reflected below: Residential Customer Current gill - $48.09 New gill - $50.11 Diff - $2.02 Commercial Customer Current gill - $254.85 New gill - $260.91 Diff - $6.06 Industrial Customer Current gill - $4,680 New gill - $4,837 Diff - $157 Transportation Customer Current gill - $2,837 New gill - $2,994 Diff - $157 Recommendation: Approve Resolution No. 2014 -015. 10114 N=R-10]Itej11[0]24 1L4 [QW*]iiE Ell &i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, DENYING THE RATE INCREASE REQUESTED BY ATMOS ENERGY CORP., MID -TEX DIVISION UNDER THE COMPANY'S 2014 ANNUAL RATE REVIEW MECHANISM FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES PERTAINING TO REVIEW OF THE RATE REVIEW MECHANISM; AUTHORIZING THE CITY'S PARTICIPATION WITH ATMOS CITIES STEERING COMMITTEE IN ANY APPEAL FILED AT THE RAILROAD COMMISSION OF TEXAS BY THE COMPANY; REQUIRING THE COMPANY TO REIMBURSE CITIES' REASONABLE RATEMAKING EXPENSES IN ANY SUCH APPEAL TO THE RAILROAD COMMISSION; DETERMINING THAT THIS RESOLUTION WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINS ACT; ADOPTING A SAVINGS CLAUSE; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND THE STEERING COMMITTEE'S LEGAL COUNSEL. WHEREAS, the City of North Richland Hills, Texas ( "City ") is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "Company "), and a regulatory authority with an interest in the rates and charges of Atmos Mid -Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee ( "ACSC "), a coalition of approximately 164 similarly situated cities served by Atmos Mid -Tex that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid -Tex service area; and WHEREAS, pursuant to the terms of the agreement settling the Company's 2007 Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to develop a Rate Review Mechanism ( "RRM ") tariff that allows for an expedited rate review process controlled in a three -year experiment by ACSC Cities as a substitute to the current Gas Reliability Infrastructure Program ( "GRIP ") process instituted by the Legislature; and WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos Mid -Tex resolving the Company's 2007 rate case and authorizing the RRM tariff; and WHEREAS, in 2013, ACSC and the Company negotiated a renewal of the RRM tariff process for an additional five years; and WHEREAS, the City passed an ordinance renewing the RRM tariff process for the City for an additional five years; and WHEREAS, the RRM renewal tariff contemplates reimbursement of ACSC Cities' reasonable expenses associated with RRM applications; and WHEREAS, on or about February 28, 2014, the Company filed with the City its second annual RRM filing under the renewed RRM tariff, requesting to increase natural gas base rates by $45.7 million; and WHEREAS, ACSC coordinated its review of Atmos Mid -Tex's RRM filing through its Executive Committee, assisted by ACSC attorneys and consultants, to investigate issues identified by ACSC in the Company's RRM filing; and WHEREAS, ACSC attorneys and consultants have concluded that the Company is unable to justify a rate increase of the magnitude requested in the RRM filing; and WHEREAS, ACSC's consultants determined the Company is only entitled to a $19 million increase, approximately 42% of the Company's request under the 2014 RRM filing; and WHEREAS, the Company would only be entitled to approximately $31 million if it had a GRIP case; and WHEREAS, the Company's levels of operating and maintenance expense have dramatically risen without sufficient justification; and WHEREAS, the Company has awarded its executives and upper management increasing and unreasonable levels of incentives and bonuses, expenses which should be borne by shareholders who received a 23% total return on investment in 2013; and WHEREAS, the Company requested a drastically high level of medical expense that is unreasonable and speculatively based upon estimates; and WHEREAS, ACSC and the Company were unable to reach a compromise on the amount of additional revenues that the Company should recover under the 2014 RRM filing; and WHEREAS, the ACSC Executive Committee, as well as ACSC's counsel and consultants, recommend that ACSC Cities deny the requested rate increase; and WHEREAS, the Company's current rates are determined to be just, reasonable, and in the public interest. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1. That the findings set forth in this Resolution are hereby in all things approved. Section 2. That the City Council finds that Atmos Mid -Tex was unable to justify the appropriateness or the need for the increased revenues requested in the 2014 RRM filing, and that existing rates for natural gas service provided by Atmos Mid - Tex are just and reasonable. Section 3. That Atmos Mid -Tex shall reimburse the reasonable ratemaking expenses of the ACSC Cities in processing the Company's RRM application. Section 4. That in the event the Company files an appeal of this denial of rate increase to the Railroad Commission of Texas, the City is hereby authorized to intervene in such appeal, and shall participate in such appeal in conjunction with the ACSC membership. Further, in such event Atmos Mid -Tex shall reimburse the reasonable expenses of the ACSC Cities in participating in the appeal of this and other ACSC City rate actions resulting from the 2014 RRM filing. Section 5. That the meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. That if any one or more sections or clauses of this Resolution is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Resolution and the remaining provisions of the Resolution shall be interpreted as if the offending section or clause never existed. Section 7. That a copy of this Resolution shall be sent to Atmos Mid -Tex, care of Chris Felan, Manager of Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767 -1725. PASSED AND APPROVED this the 9th day of June, 2014. Is] IW9 07Mkq [0]:i111:INIs]:IW124I III: llIW-1 Oscar Trevino, Mayor ATTEST: Monica Solko, Assistant City Secretary 0 :1= t 0l1FA =1 I TTI a 11011010 I T J W A 24 I I] I =10 it 4 k wi f George A. Staples, City Attorney APPROVED AS TO CONTENT: Karen Bostic, Assistant City Manager 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.4 Authorize the purchase of dispatch consoles for the new City Hall Communications Center from Watson Furniture Co. in the amount of $181,539.76 to be reim b rsed by the Tarrant County 9 -1 -1 District PSAP Assistance Program Presenter: Jimmy Perdue, Public Safety Director Summary: Staff requests authorization to purchase dispatch consoles from Watson Furniture Co. in the amount of $181,539.76 for the Communications Center as part of the new City Hall project. This resolution allows the city to proceed into an agreement to make payments to Watson Furniture Co. structured around the utilization of available funds from the Tarrant County 9 -1 -1 District Public Safety Answering Points (PSAP) Assistance Program. Payments will be made over a 3 -year submission and approval cycle with three distributions approximating a total of $180,000. General Description: The Police Department, working in conjunction with Tarrant County PSAP, is eligible to request funding through the PSAP Assistance Program reimbursement process. Tarrant County 9 -1 -1 determines the amount of the total available funding, the annual funding request limits and disbursements, as well as the parameters for utilization of the funding. The Police Department has been notified of $180,000 available funding through the PSAP Assistance Program, with an annual limit set at approximately $60,000. The process entails formal application in June 2014, with reimbursement distribution in August 2014 —to be repeated for three equal payments over a 3 -year cycle. Allowable expenses are limited to PSAP - related equipment, furniture, gear, etc. supporting the communicationstdispatch setting. Moving into the new City Hall in January of 2016 offered the opportunity to align this available funding to equip the communications suite with ten (10) new dispatch consoles and a training console which can also serve as a backup /overf low station to run an event and/or future growth. Communications Staff, I.S. Staff, and Police Staff toured several recently installed installations and determined that the "Watson— Mercury" dispatch furniture line would best serve the city's current and future dispatching needs. The collective assessment and recommendation for the Watson— Mercury product was based on the following conclusions: • Provides a state -of -the art dispatching work environment • Great integration of technology and cable management • Capability to accommodate the 8 -9 monitors NRH currently utilizes at each console • Accessibility and ease for IS 1 IT upgrades, repairs, replacements, etc. of equipment, cabling, and monitors without impact or disruption to dispatchers • Lifetime warranty on all Watson manufactured components, and three -year warranty on all other components • Multiple adjustment options to accommodate the different dispatcher preferences and work styles • Individual console environmental controls (lighting, heat, cooling) • The same manufacturer of the current consoles purchased in 2010 • Watson, an industry leader in communications /dispatch settings, has been in business for over 30 years serving over 2,500 communications 1 dispatching agencies The Watson pricing structure and quote is based on the HCAC -Buy platform (Watson Buyboard Contract #EC07 -11). As a unit of local government, HCACBuy strives to make the governmental procurement process more efficient by establishing competitively priced contracts for goods and services. All contracts available to participating members of HCACBuy have been awarded by virtue of a public competitive procurement process compliant with state statutes. The purchase order to be executed with Watson Furniture Co. will be structured to align with the Tarrant County 9 -1 -1 PSAP Assistance Program funding and reimbursement schedules, as well as the construction schedule for the projected delivery and installation of the consoles in November - December of 2015. The approved City Hall project budget includes a line item for "Tarrant County PSAP Assistance" under "Additional Funding Sources." Recommendation: Authorize the City Manager to enter into an agreement to make payments to Watson Furniture Co. for the purchase of dispatch consoles structured around the utilization of available funds from the Tarrant County 9 -1 -1 PSAP Assistance Program over a 3 -year submission and approval cycle with three distributions approximating a total of $180,000. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. F.5 Approval of an agreement with the Birdville Independent School District for assignment of School Resource Officers Presenter: Jimmy Perdue, Public Safety Director Summary: City Council is being asked to approve an agreement with the Birdville Independent School District (BISD) for assignment of School Resource Police Officers in various schools within the district. The City of North Richland Hills provides School Resource Officers (SROs) for the security and wellbeing of students within BISD schools located within the city. Currently, the schools receiving SRO services are Birdville High School and Richland High School. Two SROs provide services for these two schools during the school year. An agreement has been reached to add two SROs to provide law enforcement services to additional schools within the district. General Description: Over the past year, BISD and the city have worked together with regard to increasing the number of police officers in BISD schools within North Richland Hills. Through a series of meetings, BISD has agreed to assist in funding two additional SROs to be assigned to schools within the city, bringing the total number of SROs to four. The city agrees to assign one officer to Birdville High School and one officer to Richland High School during the school year. The city agrees to assign one of the additional SROs, who will rotate coverage between two schools, to North Ridge Middle and Smithfield Middle schools during the school year. Further, the city agrees to assign the second additional SRO, who will rotate coverage between two schools, to North Richland Middle School and the Birdville Center of Technology & Advanced Learning campus during the school year. The two SROs assigned to the high schools will commence coverage with the onset of the 14115 school year, August 25, 2014. The two additional officers are expected to begin covering their schools January 5, 2015. To assist in the costs incurred by the city for this program, BISD agrees to reimburse 50% of the personnel and benefits costs for each officer for a 12 -month period. The estimated annual reimbursement from BISD to the General Fund for four SROs is $199,078. The term of this agreement is for the 2014 -2015 school year and will continue each school year, thereafter, unless terminated by either party. Recommendation: Authorize the City Manager to execute an agreement with BISD for assignment of School Resource Officers SCHOOL RESOURCE OFFICER SHARED SERVICES AGREEMENT between the CITY OF NORTH RICHLAND HILLS and BIRDVILLE INDEPENDENT SCHOOL DISTRICT For and in consideration of the mutual covenants, promises, and agreements contained herein, North Richland Hills, hereinafter referred to as the "City," and the Birdville Independent School District, hereinafter referred to as the 'District," agree as follows: The District and City agree that four (4) Police School Resource Officers (SRO) will be assigned to the District. The District and City agree that two (2) officers will be assigned to the following schools: Birdville High School and Richland High School. The District and City agree that the remaining two (2) officers will, at the discretion of the Chief of Police, be assigned to provide patrols at the following schools: North Richland Middle School, Smithfield Middle School, North Ridge Middle School, and Birdville Center of Technology and Advanced Learning campus. Officers working as an SRO will work one additional hour each school day for which they will receive compensatory time. The officers will be required to utilize this accrued compensatory time during the regular school holidays or breaks. District agrees to reimburse the City 50% of the negotiated costs for personnel, training, equipment, and benefits incurred by the City for each police officer for the full fiscal year to assist with the personnel costs incurred by the City in this project. The City will provide the District with standardized budget worksheets detailing the costs associated with the School Resource Officers each fiscal year. The District will provide an office for each School Resource Officer with a computer work station. The City will invoice the District twice during the school year, in December and May, for such reimbursement and the District will remit such amount promptly. Payments for the above described governmental service must be made from current revenues available to the school district. 2. The term of this agreement is for the 2014 -2015 school year and will continue each school year thereafter unless terminated by either party. Each party agrees to give at least one (1) year advance notice if it does not wish to continue this agreementforthe following school year. 3. It is understood and agreed that this agreement may be terminated by either party when such termination is determined by its governing body to be in its best interest. Notice of such termination will be sent to the other party promptly after such action of the governing body. In the event of termination, the District will be given a final invoice for reimbursement to the City for the pro -rated costs and the District agrees to remit such amount within 30 days of receipt of the invoice. 3 All school resource officers furnished by the City will be employees of the City and will at all times be subject to the supervision and control of the City's Chief of Police and shall be responsible to the Chief of Police. However, the officers shall work closely with the principal of the school to which they are assigned. The SRC's Police Department supervisor will periodically confer with campus administrators to discuss the performance of the SRC assigned to their respective schools. Such officers shall have the school to which they are assigned as their primary duty assignment and will not be assigned additional police duties during regularly scheduled school hours. The City reserves the right, however, to reassign those officers temporarily in the event of an emergency or urgent police need as determined by the Chief of Police. City shall provide all law enforcement training, certification, vehicles, police equipment, benefits, and insurance (including liability coverage) to all officers employed by City. The District shall provide any radio equipment necessary to allow the assigned officer to communicate with school staff. The City will coordinate assignments and duty hours with the District. Should it become necessary for the Chief of Police to remove or reassign a SRC, the police department will confer with the affected school principal to determine unique or important qualifications desired in the replacement officer prior to the selection of the new SRC. 5. When acting as a commissioned peace officer for District, the officer's jurisdiction shall include, in addition to this jurisdiction as a North Richland Hills Police Officer, all territory within the boundaries of the District that are within the city limits of North Richland Hills and all property, real and personal, outside the boundaries of the District that are within the North Richland Hills city limits and owned, leased, or rented by or otherwise under the control of the District and its Board of Trustees. 6. District and City, in the execution, performance, or attempted performance of this agreement, will not discriminate against any person or persons because of sex, race, religion, color, national origin, or age except on the basis of a bona fide occupational qualification, retirement plan, or statutory requirement. 7. City and District agree that in the event either party fails to comply with any provision of this agreement, the non - defaulting party will give written notice to the other party promptly upon learning of such failure. If the defaulting party fails to cure the default within 15 days, the non - defaulting party may terminate this agreement. 8. The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court, federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect other provisions which can be given effect without the invalid provision. 0 This written instrument constitutes the entire agreement by the parties hereto concerning the work and services to be performed hereunder, and any other oral or written agreement which purports to vary from the terms hereof shall be void. us The governing bodies of City and District have approved the execution of this agreement, and the persons signing the agreement have been duly authorized by the governing bodies of the City and the District to sign this agreement. Is] 11W 90 1MkgIQ:i111:IN[y:IW24IQ111:11IW-1 Mark Hindman, City Manager ATTEST: Monica Solko, Assistant City Secretary BIRDVILLE INDEPENDENT SCHOOL DISTRICT Dr. Darrell Brown, Superintendent APPROVED AS TO FORM AND APPROVED AS TO FORM AND LEGALITY: LEGALITY: George A. Staples, City Attorney TOASE, General Council APPROVED AS TO CONTENT: Jimmy Perdue, Director of Public Safety 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. C.0 EXECUTIVE SESSION ITEMS 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. C.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. H.0 INFORMATION AND REPORTS 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Subject: Agenda Item No. HA Announcements - Councilman Turnage Announcements June is Adopt a Cat Month. To celebrate, the NRH Animal Adoption & Rescue Center is offering reduced adoption fees for all cats and kittens this month. For more information, please visit the Animal Adoption & Rescue Center or call 817- 427 -6570. Iron Horse Golf Course is celebrating its 25th Anniversary with a special golf tournament this Friday, June 13th. Each player will receive an Iron Horse golf shirt and golf ball, as well as great food and prizes. Call 817- 485 -6666 to sign up and get more information. Celebrate Father's Day at NRH20! All dads will get in free on Father's Day when accompanied by a child. Visit NRH20.com or call 817- 427 -6500 for more information. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Tonight we recognize: Eliza Margenau of the Municipal Court — A note was received from an attorney thanking the staff who came to her aid when she fainted in court. Eliza was the first to respond and take care of the attorney until paramedics arrived. "Your kindness and help that day and since then touched me and my office. We are so grateful and appreciative," the note said. 10114 COUNCIL MEMORANDUM From: The Office of the City Manager Date: 6 -9 -2014 Subject: Agenda Item No. H.2 Adjournment