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HomeMy WebLinkAboutCC 2021-03-08 Agendas k4Ft, D HILLS CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, MARCH 8, 2021 In compliance with the Texas Open Meetings Act and in accordance with Section 418.016 of the Texas Government Code and such action issued by the Governor of Texas on March 16, 2020, the North Richland Hills City Council will conduct its regular meeting via video conference in order to advance the public health goal of limiting face-to-face meetings (also called "social distancing") to slow the spread of the Coronavirus (COVID-19). There will be no public access to the City Hall location described above, unless otherwise noted. Video conference link: https://bit.ly/3b5 P3 Password: NRHCC0308 If you are not able to join the video conference you can address the City Council via email: (1) Complete a comment card and email it to publiccomments@nrhtx.com. Comment cards must be received no later than 7:00 p.m. RULES FOR SPEAKING AT CITY COUNCIL MEETING AND COMMENT CARD CAN BE FOUND ONLINE AT w .nrhtx.com//1106/speakinq-at-a®council®meeting The live steaming video of the regular meeting is available at the City's website (nrhtx.legistar.com or nrhtx.com/video) and cable channels — Charter Cable Channel 190 and AT&T U-Verse Channel 99. Monday, March 8, 2021 City Council Agenda Page 1 of 5 WORK SESSION: 6:00 PM Via Webex Video Conference 1. Discuss items from regular City Council meeting. 2. Discuss NRH20 Family Water Park operations and 2021 season. CALL TO ORDER EXECUTIVE SESSION The City Council may enter into closed Executive Session as authorized by Chapter 551, Texas Government Code. Executive Session may be held at the end of the Regular Session or at any time during the meeting that a need arises for the City Council to seek advice from the city attorney (551.071) as to the posted subject matter of this City Council meeting. 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. 1. Section 551.07Deliberate the purchase, exchange, lease or value o real property - (1} 5301 Davis Boulevard and ( } 400 block o Weqeview Drive. REGULAR MEETING: Immediately following executive session (but no earlier than 7:00 p.m.) Via Webex Video Conference A. CALL TO ORDER A.1 INVOCATION - COUNCIL MEMBER COMPTON A.2 PLEDGE - COUNCIL MEMBER COMPTON A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) Monday, March 8, 2021 City Council Agenda Page 2 of 5 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 City Council during citizens presentation, register for the video conference at the link above and join the meeting at 7:00 p.m. or submit a public comment card by 7:00 p.m. the day of the meeting. A.5 PUBLIC COMMENTS An opportunity for citizens to address the City Council on matters which are scheduled on this agenda for consideration by the City Council, but not scheduled as a public hearing. In order to address the City Council during public comments, register for the video conference at the link above and join the meeting at 7:00 p.m. or submit a public comment card by 7:00 p.m. the day of the meeting. A.6 REMOVAL OF ITEM(S) FROM CONSENT AGENDA B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS B.1 Approve minutes of the requiar February 22, 2021 City Council meeting. B.2 Consider authorizinq the City Manager to execute a Cooperative Purchase Agreement and Master Services Agreement No. 22516with MCCii, LLC, for document management services and software support for the ity's Laserfiche system in an amount not to exceed 57,317 annually for one year with two one year renewals. B.3 Consider Resolution No. 2021-016, authorizing submission of the application and acceptance o allocated funds if awarded for the Texas Governor's Office Homeland Security ivision FY2022 North Texas Anti-Gang Center, Grant 2848907 B.4 Consider award of RFBi 1-008 to Insituform Technologies, LLC, for construction of the Big Fossil 4" Interceptor Project ( T 004) in the amount o 737,815.50 and authorize the City Manager to execute the agreement. B.5 Approve voting and alternate members to the Fort Worth Wholesale Customer Advisory Committee for the October 1, 200 to the September 302 2021 period. Monday, March 8, 2021 City Council Agenda Page 3 of 5 C. PUBLIC HEARINGS C-1 SUP 2020-08, Ordinance No. 3681 , Public hearing and consideration of a ' service restaurant at 5600 Rufe Snow Drive, being 1.98 acres described as Lot 1, Block 35, Holiday West Addition. D. PLANNING AND DEVELOPMENT D-1 RP 2020-11 Consideration of a request from Bohler Engigeering for a replaLplat of Lots 1 3 and 4 lock 1 , Gibson Addition, being 3.31 acres located at 8616 and 8624 Davis Boulevard and 8612 Precinct Line Road. D-2 Consider Ordinance No. 3681,__.Lemporarily �u�pening the fees imposed under Appendix A, Fee Schedule, Chapter 98, of the City of North Richland Hills Code of Ordinances,. for the issuance of permits and building inspections for home repairs related to the February 2021 Tarrant County De laration of Disaster. E. PUBLIC WORKS F. GENERAL ITEMS F-1 Receive the Fiscal Year 2020 Audited Financial Report and Fiscal Year 2020 Single Audit. F-2 Consider Resolution No. 2021-017 approving and authorizing the publication of a Notice of Intention to Issue Certificates of Obligation in an amount not to exceed G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA H. INFORMATION AND REPORTS - COUNCIL MEMBER BENTON H.1 Announcements I. ADJOURNMENT Certification Monday, March 8, 2021 City Council Agenda Page 4 of 5 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 Friday, March 5, 2021 by 3:00 PM. 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. Monday, March 8, 2021 City Council Agenda Page 5 of 5 "I r*4W NOLa`C`H KIC"HLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Discuss items from regular City Council meeting. PRESENTER: Mark Hindman, City Manager SUMMARY: The purpose of this item is to allow City Council the opportunity to discuss any item on the regular agenda. GENERAL DESCRIPTION: The purpose of this standing item is to allow City Council the opportunity to inquire about items that are posted for discussion and deliberation on the regular City Council agenda. City Council is encouraged to ask staff questions to clarify and/or provide additional information on items posted on the regular or consent agenda. City Council may also elect to move items from the regular agenda to the consent agenda upon receiving clarification from staff on posted regular agenda items. IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: NRH2O Family Water Park Operations Update PRESENTER: Paulette Hartman, Deputy City Manager GENERAL DESCRIPTION: As staff continues to evaluate, prepare and plan for the 2021 NRH2O operational season, the information shared in this work session will include preliminary plans for the 2021 season and NRH2O long range forecasting. "I r*4W NOLa`C`H KIC"HLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Approve minutes of the regular February 22, 2021 City Council meeting. PRESENTER: Alicia Richardson, City Secretary SUMMARY: The minutes are listed on the consent agenda and approved by majority vote of Council at the City Council meetings. GENERAL DESCRIPTION: The City Secretary's Office prepares action minutes for each City Council meeting. The minutes for the previous meeting are placed on the consent agenda for review and approval by the City Council, which contributes to a time efficient meeting. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the regular February 22, 2021 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 4301 CITY POINT DRIVE FEBRUARY 22, 2021 Via Webex Video Conference WORK SESSION CALL TO ORDER The City Council of the City of North Richland Hills, Texas met in work session on the 22nd day of February at 6.00 p.m. via video conference prior to the 7.00 p.m. regular Council meeting. Mayor Trevino stated in accordance with the Texas Governor's March 13, 2020 Disaster Declaration and subsequent suspension of certain Texas Open Meetings Act Provisions, this February 22 2021 meeting of the North Richland Hills City Council is hereby called to order at 6.02 p.m. Mayor Trevino stated that tonight's meeting will be conducted using Webex video conference in order to observe physical distancing to mitigate the spread of COVID-19. Mayor Trevino conducted a roll call of City Council members to confirm the presence of a quorum. Present via video conference: Oscar Trevino, Mayor Tito Rodriguez, Deputy Mayor Pro Tem, Place 1 Rita Wright Oujesky, Place 2 Suzy Compton, Place 3 Mason Orr, Associate Mayor Pro Tem, Place 4 Mike Benton, Place 5 Scott Turnage, Mayor Pro Tem, Place 6 Kelvin Deupree, Place 7 Staff present via video conference: Mark Hindman, City Manager Alicia Richardson, City Secretary Maleshia B. McGinnis, City Attorney 1. DISCUSS ITEMS ON REGULAR CITY COUNCIL MEETING. City Council had no questions for staff. February 22, 2021 City Council Meeting Minutes Page 1 of 8 2. QUARTERLY FINANCIAL REPORT FOR THE PERIOD ENDING DECEMBER 31, 2020. Director of Budget and Research Robert Myers reviewed the quarterly financial status reports for the period ending December 31, 2020. Mr. Myers reviewed the General Fund, Park Development Fund, Crime Control District and Utility Fund providing the following year to date actuals. General Fund Revenue - $24,115,402 (47.4% of revised budget) Expenditures - $12,416,176 (24.4% of revised budget) Park Development Fund Revenue - $2,172,459 (22.2% of revised budget) Expenditures - $2,500,660 (25.6% of revised budget) Crime Control District Fund Revenue - $1,505,253 (26.7% of revised budget) Expenditures - $1,241,986 (22.1% of revised budget) Utility Fund Revenue - $9,125,103 (23.9% of revised budget) Expenditures - $9,010,765 (23.6% of revised budget) EXECUTIVE SESSION 1. SECTION 551.072: DELIBERATE THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY - 6800-7100 BLOCK OF GLENVIEW DRIVE. Mayor Trevino announced at 6.16 p.m. that the City Council would adjourn into Executive Session as authorized by Chapter 551, Texas Government Code, Section 551.072: Deliberate the purchase, exchange, lease or value of real property - 6800-7100 block of Glenview Drive. Executive Session began at 6.24 p.m. and concluded at 6.41 p.m. REGULAR MEETING A. CALL TO ORDER In accordance with the Texas Governor's March 13, 2020 Disaster Declaration and subsequent suspension of certain Texas Open Meetings Act Provisions, this February 22, 2021 meeting of the North Richland Hills City Council is hereby called to order at 7.00 p.m. using Webex video conference. February 22, 2021 City Council Meeting Minutes Page 2 of 8 Mayor Trevino conducted a roll call of City Council members to confirm the presence of a quorum. Present via video conference: Oscar Trevino, Mayor Tito Rodriguez, Deputy Mayor Pro Tem, Place 1 Rita Wright Oujesky, Place 2 Suzy Compton, Place 3 Mason Orr, Associate Mayor Pro Tem, Place 4 Mike Benton, Place 5 Scott Turnage, Mayor Pro Tem, Place 6 Kelvin Deupree, Place 7 Staff present via video conference: Mark Hindman, City Manager Alicia Richardson, City Secretary Maleshia B. McGinnis, City Attorney A.1 INVOCATION Council member Wright Oujesky gave the invocation. A.2 PLEDGE Council member Wright Oujesky led the Pledge of Allegiance to the United States and Texas flags. A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) There were no items for this category. A.4 CITIZENS PRESENTATION There were no requests to speak from the public. A.5 PUBLIC COMMENTS There were no requests to speak from the public. A.6 REMOVAL OF ITEM(S) FROM CONSENT AGENDA No items were removed from the consent agenda. B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS February 22, 2021 City Council Meeting Minutes Page 3 of 8 APPROVED A MOTION WAS MADE BY COUNCIL MEMBER WRIGHT OUJESKY, SECONDED BY COUNCIL MEMBER DEUPREE TO APPROVE THE CONSENT AGENDA. MOTION TO APPROVE CARRIED 7-0. B.1 APPROVE MINUTES FROM THE REGULAR FEBRUARY 8, 2021 CITY COUNCIL MEETING. B.2 APPROVE AWARD OF RFB NO. 21-003 TO HORIZON DISTRIBUTORS FOR THE PURCHASE OF LANDSCAPE CHEMICALS AND SUPPLIES IN THE AMOUNT OF $58,112.88. B.3 AUTHORIZE PURCHASE OF FITNESS EQUIPMENT FOR THE NRH CENTRE FROM ADVANCED HEALTHSTYLES FITNESS EQUIPMENT, INC. IN THE AMOUNT OF $120,000.00 THROUGH BUYBOARD COOPERATIVE PURCHASING CONTRACT NO. 583-19. B.4 APPROVE RESOLUTION NO. 2021-013, AUTHORIZING SUBMISSION OF THE GRANT APPLICATION AND ACCEPTANCE OF ALLOCATED FUNDS IF AWARDED FOR THE 2021 STATE HOMELAND SECURITY PROGRAM (SHSP) FOR NORTHEAST FIRE DEPARTMENT ASSOCIATION (NEFDA) - HAZARDOUS MATERIAL (HAZMAT) AREA MONITORING EQUIPMENT GRANT#4257101. B.5 APPROVE RESOLUTION NO. 2021-014, AUTHORIZING SUBMISSION OF THE GRANT APPLICATION FOR THE 2020 ASSISTANCE TO FIREFIGHTERS GRANT (AFG) PROGRAM - TRAINING PROPS/EQUIPMENT. B.6 APPROVE RESOLUTION NO. 2021-015, AUTHORIZING SUBMISSION OF GRANT APPLICATION AND ACCEPTANCE OF ALLOCATED FUNDS IF AWARDED FOR THE 2021 STATE HOMELAND SECURITY PROGRAM (SHSP) LAW ENFORCEMENT TERRORISM PREVENTION ACTIVITIES (LETPA) PROGRAM FOR NORTHEAST EXPLOSIVE RESPONSE TEAM (NERT) - EXPLOSIVE ORDNANCE DISPOSAL (EOD) BOMB SUIT GRANT #4255101. C. PUBLIC HEARINGS There were no items for this category. D. PLANNING AND DEVELOPMENT February 22, 2021 City Council Meeting Minutes Page 4 of 8 There were no items for this category. E. PUBLIC WORKS E.1 CONSIDER THE 2021 PREVENTIVE STREET MAINTENANCE PROGRAM. APPROVED Assistant Director of Public Works Boe Blankenship presented the item. Mr. Blankenship provided City Council with an overview of the 2019/2020 preventative street maintenance program. The program includes 163 streets with over 26 centerline miles. The types of preventive street maintenance includes: crack seal, slurry seal, micro surfacing, and 2" asphalt overlays for asphalt and partial pavement replacement and crack seal for concrete streets. Mr. Blankenship informed City Council the City also partnered with Tarrant County for asphalt rehabilitation. Mr. Blankenship shared with City Council that the 2021 preventative street maintenance program includes 80 projects on 74 streets with over 14 centerline miles, and six pavement treatments for a cost of$1,763,978. Asphalt overlay street recommendations include: (1) Cardinal Lane, 8700; (2) Deville Drive, 4700-7004; (3) Greendale Court, 6700; (4) Holiday Lane, 5000-5300; (5) Laurel Lane, 5100; (6) Lewis Court, 5500; (7) Post Oak Drive, 6900-7000; (8) Rolling Ridge Drive; (9) Stonybrooke Drive, 7200-7400; (10) Amundson Drive, 8300-9400; (11) Onyx Drive South, 6100; and (12) Ruthette Drive, 8400. Asphalt slurry seal and micro surfacing recommendations include: (1) Grand View Drive, 8500; (2) Boca Raton Court, 8900; (3) Brandi Place, 7700-7770; (4) Browning Drive, 6400-6700; (5) David Drive, 7500; (6) Green Leaf Court, 7600; (7) Hidden Oaks Drive, 7800; (8) Liberty Way, 7300; (9) Northridge Boulevard, 5300-5355; (10) Oak Lane, 7600; (11) Paramount Street, 3500; (12) Price Drive, 6000-6100; (13) Terrell Drive, 8500-8700; and (14) Tipperary Court, 7300. Asphalt crack seal street recommendations includes: (1) Beverly Drive, 8100-8300; (2) Bogart Drive, 7400-7500; (3) Caton Drive, 4900; (4) City Point Drive, 4500-4600; (5) Cloyce Court, 4900-5000; (6) Cummings Drive, 4600; (7) Diamond Loch East, 3900-4029; (8) Emerald Oaks Drive, 3800; (9) Londonderry Drive, 7300-7337; (10) Marlette Court, 6400; (11) Meadowbrook Drive, 7300; (12) Northfield Drive, 7620-7645; (13) Oakfield Corner Court, 7000; (14) Orange Valley Drive, 7500; (15) Parkridge Drive, 6600; (16) Price Drive, 6200-6228; (17) Redondo Street, 4500-4613; (18) Short Street, 7500; (19) Starnes Road, 6800-7000; (20) Steeple Ridge Drive, 8520-8528; (21) Stonedale Court, 7300; (22) Tamarron Court, 7700; (23) Tanglewood Court, 8300; (24) Willowcrest Drive, 3300-3332; (25) Windhaven Road, 7036-7216; and (26) Windhaven Road, 7309-7313. February 22, 2021 City Council Meeting Minutes Page 5 of 8 Concrete partial pavement recommendations includes: (1) Ashley Court, 8600; (2) Green Valley Drive, 7900-8000; (3) Holiday Lane, 6044-6068; (4) Iron Horse Boulevard, 7200-7300; (5) King Ranch Road, 7000-7100; (6) Marilyn Lane, 4900; (7) Winder Court, 5000, (8) Winter Park Drive, 5800-5963; and (9) Holiday Lane, 5600-5700. Concrete crack seal recommendations includes: (1) Amhurst Court, 8600; (2) Barton Springs Drive, 5900-6000; (3) Bella Lane, 7400-7416; (4) Cedar Grove Drive, 6609-6625; (5) Dick Fisher Drive, 6200; (6) Forest Glenn Drive, 8100-8300; (7) Forest Hills Court, 7800-7900; (8) Hallmark Drive, 8105-8200; (9) Hawk Avenue, 6000-8700; (10) Hightower Drive, 6700; (11) Holiday Lane, 5700-5900; (12) Robert Drive, 5200-5300; (13) Ross Road, 5900; (14) Rufe Snow Drive, 7700-7800; (15) Shadywood Lane, 8000-8100; (16) Smithfield Road, 8300; (17) Spring Oak Drive, 7200-7300; (18) Susan Lee Lane, 5200-5300; and (19) Susan Lee Lane, 4900-5000. Mr. Blankenship shared with City Council that three additional streets received asphalt overlay and were funded through the 2019/2020 preventative street maintenance project savings. The streets included: Amundson Drive, 8300-9400; Onyx Drive South, 6100; and Ruthette Drive, 8400. City staff recommends the approval of the 2021 preventative street maintenance program and to authorize the City Manager to execute an interlocal agreement between Tarrant County and the City of North Richland Hills. A MOTION WAS MADE BY MAYOR PRO TEM TURNAGE, SECONDED BY DEPUTY MAYOR PRO TEM RODRIGUEZ TO APPROVE THE 2021 PREVENTIVE STREET MAINTENANCE PROGRAM. MOTION TO APPROVE CARRIED 7-0. E.2 AUTHORIZE THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH TARRANT COUNTY TO REHABILITATE AND RESURFACE STONYBROOKE DRIVE FROM RUMFIELD ROAD TO CRESTVIEW DRIVE. APPROVED This item was presented in conjunction with item E.1. February 22, 2021 City Council Meeting Minutes Page 6 of 8 A MOTION WAS MADE BY COUNCIL MEMBER COMPTON, SECONDED BY ASSOCIATE MAYOR PRO TEM ORR TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH TARRANT COUNTY TO REHABILITATE AND RESURFACE STONYBROOKE DRIVE FROM RUMFIELD ROAD TO CRESTVIEW DRIVE. MOTION TO APPROVE CARRIED 7-0. F. GENERAL ITEMS FA DECLARATION OF LOCAL DISASTER DUE TO PUBLIC HEALTH EMERGENCY DECLARED BY THE MAYOR OF THE CITY OF NORTH RICHLAND HILLS, TEXAS IN ACCORDANCE WITH CHAPTER 22 ARTICLE II, SECTION 22-32 OF THE CITY CODE OF ORDINANCES AND TEXAS GOVERNMENT CODE SECTION 418.108 DUE TO THE SEVERE WINTER STORM EVENT. Mayor Trevino announced that no action is necessary for this item. G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA Mayor Trevino announced that no action was necessary as the result of Executive Session. H. INFORMATION AND REPORTS HA ANNOUNCEMENTS Associate Mayor Pro Tern Orr made the following announcements. As a reminder, the City of North Richland Hills conducts a test of the 10 outdoor emergency warning sirens on the first Wednesday of each month. The next test will take place on Wednesday, March 3. The tests are not performed if threatening weather is near or there is low cloud cover. Citizens can also sign up for severe weather alerts by phone or text message at www.nrhtx.com/alerts. Kudos Korner - Every Council Meeting, we spotlight our employees for the great things they do. Tonight we recognize: All city staff for their response to the winter storm last week. We received numerous comments from citizens about the tremendous around the clock efforts to keep the community informed and safe. February 22, 2021 City Council Meeting Minutes Page 7 of 8 I. ADJOURNMENT Mayor Trevino adjourned the meeting at 7.31 p.m. Oscar Trevino, Mayor ATTEST: Alicia Richardson City Secretary/Chief Governance Officer February 22, 2021 City Council Meeting Minutes Page 8 of 8 IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Authorize the City Manager to execute a Cooperative Purchase Agreement and Master Services Agreement No. 22516 with MCCi, LLC., for document management services and software support for the City's Laserfiche system in an amount not to exceed $57,317 annually for one year with two one year renewals. PRESENTER: Bob Weakley, Assistant Director-IT SUMMARY: The purpose of this item is to authorize the City Manager to execute a Cooperative Purchase Agreement and a Master Services Agreement with MCCi, LLC. to provide software support for the City's Laserfiche system. GENERAL DESCRIPTION: In 2003, the City conducted a request for proposals for an "Electronic Document Imaging Project." At its January 26, 2004 meeting, City Council awarded the contract to VP Imaging, now known as DocuNav, to implement and support Laserfiche software. Laserfiche is the City's official repository, which stores the City's official records. The City is in the final year of maintenance support with DocuNay. In a decision based upon innovation and customer service, staff has deemed it is an appropriate time to change the City's Laserfiche reseller. MCCi has worked with a number of municipalities across the United States to streamline and improve processes. Staff looks forward to working with MCCi to advance the functionality of Laserfiche to expedite and manage our "paper" and processes in an efficient and purposeful manner. MCCi, LLC participates in Buyboard Purchasing Cooperative (Contract Number 625-20). As a participant in this cooperative, MCCi meets all of the purchasing requirements as mandated by the City and State. This participation streamlines the buying process for municipalities while saving time and money. RECOMMENDATION: Authorize the City Manager to execute a Cooperative Purchase Agreement and Master Services Agreement No. 22516 with MCCi, LLC. ................................ NRH NMI CITY OF NORTH RICHLAND HILLS COOPERATIVE PURCHASE CUSTOMER AGREEMENT Thi,s Cooperative Purchiase CUStorner Agreement ("CUstorner Agreement'") is i',interect info by and hetween MCZ, LLC ("Vendor")amr the City of North Richland Hills, ("Cusii or"Authorized Custonler"), ,i Texas gloverru'rient er"ifiry, and a Custorner �,is defii-�ccli in Sechon � - : � ;� , j - '� '; : " � '� J ; Of 1he Agreement l.x,,1vve(-,N0he ftjyBoard]andVeirdor, [Contract iNo. as arnended,(the "Agre(.;^rnent'�wth an effecti�,,e(;Nate u)f 12101/20120. This custonlev Agreement ariaaadd be govemed by the tervy's and oonWk�ons of the [Agve("Mentl, is inc'(qrporaaked herein by reference a n d is avanlWe, onfine at buybum chloin/shop/PB o(.h'v'J'..'h^'I 20,mc:co*mt�ao tvNndal,f:)r upon request from Vendor, and (lie attached Qiiiole/Purd ase, Order No, Addendum No 1 to Master Services AgrPernent,,.MSS"No,255)1)/QtA0t',1 No, 18743 'rho Agreement expkes on 11/30/2021, Authoirizi,ad Customer is eligible and desires to purchase Document Management Services/Laswliche pursuart to the terms and conditions of the[Agreen-rent]as the [BuyBoard]may specify from firne to time, as wck as the terms and conditions of this Customer Agreement. [PqyE;gald will only be responsible for services provided to I BUyBomid) and woil rot be responsible for payments for services provided toany individual CUStorner. The Authorized Cuslorr'ner agrees to the terms and conditions of the [Agreernent] as applicable The Authorized Custorner hereby agrees that it is separately and solely liable for all obfigations and payments for equiprylont and services provided hereunder. Vendor agrees that Customer shall be entitled to (he sarne rights and proteckins under the law afforded to the [ Buy,Board I under the [Agreement), as applicable, as if Cuslorner had entered into the [Agreernent] Further, Vendor agrees that until the expiration of three (3) years after Corral payment under this Customer Agreement, or the final conciusion of any audit commenced during fl'ie said three years, Custorrier, or Customer's designated representative, shall have access to and the right to audit at re�asonable braes, all records involving transacfioris relafing to this Customer Agreement necessary to determine compliance therewith, at r1c) adiditional cost to the CLIStorner. Vendor agrees that the Customer shall have access to sudi records during nounal business hours, Custorner shall provide Vendor%vith reasonable advance notice of any inlended! audits. Payments Under this Agreement shall not exceed $57,317 annu0y for 3 year(s)through 1113012023 ........... The Undersigned represents and warrants that he/she has the power, and authority to execute, this Custonler Agreement, hind the respective Authorized CUstorner, and that the execution and performance, of this Custon-aer Agreernent has been duly authorized by Customer. ALIthonzed Customer has caused tl'iis Customer Agreement to be executed by,its duly aUthorized repiresentative to be effective as,of this day of 20 21. CITY OF NORTH RICHLAND HILLS: VENDOR NANWI"- B y By: Mark Kndrrian, City Manager Name._ Victor UA6 Titic Q 00' ....... ATTEST: Alicia Richardson, Cjty Secretary APPROVED TO FORI'd AND LEGAIJTY� B y Madeshia B kticGirnr,,, CityAttorncy INS Vendor Name MCCi, LLC (Self-reporting Vendor) Contact Cassie Shores Phone Number 8507010725 Email salesoperations@mccinnovations.com Website www.mccinnovations.com Federal ID 33-1069550 Accepts RFQs Yes Address Line 1 1958A Commonwealth Lane Vendor City Tallahassee Vendor Zip 32303 Vendor State FL Vendor Country USA Delivery Days 10 Freight Terms FOB Destination Payment Terms Net 30 days Shipping Terms Prepaid and added to invoice Ship Via Common Carrier Is Designated Dealer No EDGAR Forms Received Yes Service-Disabled Veteran Owned No Minority Owned No Women Owned No Is National Yes No Excluded Foreign Terrorist Orgs Yes No Israel Boycott Certificate Yes Is MWBE No Regions Served All Texas Regions States Served All States Contract Name Copy-Print and Document Management Services Contract# 625-20 Effective Date 12/01/2020 Expiration Date 11/30/2023 Quote Reference Number 625-20 2/2/2021 3:48:49 PM INS Return Policy For software orders, within 30 days of order, if software has not been activated, a full refund will be granted; if software has been activated, a 15% processing fee will apply. No refunds will be granted after 30 days. For scanning orders, MCCi will correct only those valid discrepancies outlined in our agreement above the acceptable error rate reported within 90 days after delivery of electronic data to client. All product warranties are limited to manufacturer's standard warranty provisions. Additional Info null 2/2/2021 3:48:49 PM LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn PROPOSERS AGREEMENT AND SIGNATURE Proposal Name: Copy-Print and Document Proposal Due Date/Opening Date and Time: Management Services May 14, 2020 at 4:00 PM Location of Proposal Openina: Texas Association of School Boards, Inc. BuyBoard Department Proposal Number: 625-20 12007 Research Blvd. Austin, TX 78759 Anticipated Cooperative Board Meeting Date: Contract Time Period: December 1, 2020 October 2020 through November 30, 2021 with two (2) possible one-year renewals. MCCi, LLC 5/4/2020 Name of Proposing Company Date 3717 Apalachee Parkway, Suite 201 Street Address Signature of Authorized Company Official Tallahassee, FL 32311 Donald Barstow City, State, Zip Printed Name of Authorized Company Official 850.701 .0711 President & CEO Telephone Number of Authorized Company Official Position or Title of Authorized Company Official 850.564.7496 33-1069550 Fax Number of Authorized Company Official Federal ID Number Page 9 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWDoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn The proposing company ('you"or"your' hereby acknowledges and agrees as follows: 1. You have carefully examined and understand all Cooperative information and documentation associated with this Proposal Invitation, including the Instructions to Proposers,General Terms and Conditions,attachments/forms, item specifications, and line items (collectively"Requirements'; 2. By your response ("Proposal") to this Proposal Invitation, you propose to supply the products or services submitted at the prices quoted in your Proposal and in strict compliance with the Requirements, unless specific deviations or exceptions are noted in the Proposal; 3. Any and all deviations and exceptions to the Requirements have been noted in your Proposal and no others will be claimed; 4. If the Cooperative accepts any part of your Proposal and awards you a contract, you will furnish all awarded products or services at the prices quoted and in strict compliance with the Requirements (unless specific exceptions are noted in the Proposal and accepted by the Cooperative), including without limitation the Requirements related to: a. conducting business with Cooperative members, including offering pricing to members that is the best you offer compared to similar customers; b. payment of a service fee in the amount specified and as provided for in this Proposal Invitation; c. the possible award of a piggy-back contract by another governmental entity or nonprofit entity, in which event you will offer the awarded goods and services in accordance with the Requirements; and d. submitting price sheets or catalogs in the proper format as required by the Cooperative as a prerequisite to activation of your contract; 5. You have clearly identified on the included form any information in your Proposal that you believe to be confidential or proprietary or that you do not consider to be public information subject to public disclosure under a Texas Public Information Act request or similar public information law; 6. The individual signing this Agreement is duly authorized to enter into the contractual relationship represented by this Proposal Invitation on your behalf and bind you to the Requirements, and such individual (and any individual signing a form) is authorized and has the requisite knowledge to provide the information and make the representations and certifications required in the Requirements; 7. You have carefully reviewed your Proposal, and certify that all information provided is true, complete and accurate, and you authorize the Cooperative to take such action as it deems appropriate to verify such information; and 8. Any misstatement, falsification, or omission in your Proposal, whenever or however discovered, may disqualify you from consideration for a contract award under this Proposal Invitation or result in termination of an award or any other remedy or action provided for in the General Terms and Conditions or by law. Page 10 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn VENDOR CONTACT INFORMATION Name of Company: MCCI, LLC Vendor Proposal/Contract Contact Name: Cassle Shores Vendor Proposal/Contract Contact E-mail Address: cshores@mccinnovations.com ccinrloyatlorls.Com Vendor Contact Mailing Address for Proposal/Contract Notices: 3717 ApalaChee Parkway, Suite 201 Tallahassee, FL 32311 Company Website: https://WWW.fI' ccinrl ovations.corn Purchase Orders: All purchase orders from Cooperative members will be available through the Internet. Vendors need Internet access and at least one e-mail address so that notification of new orders can be sent to the Internet contact when a new purchase order arrives. An information guide will be provided to vendors to assist them with retrieving their orders. Please select options below for receipt of purchase orders and provide the requested information: RI I will use the internet to receive purchase orders at the following address: Purchase Order E-mail Address: salesoperations@mccinnovations.com Purchase Order Contact: Cassle Shores Phone: 850.701.0725 ext. 1750 Alternate Purchase Order E-mail Address: billing @mccinnoyatlorls.Com Alternate Purchase Order Contact: Lindsey Fearington Phone: 850.701.0725 ext. 1659 ❑ Purchase orders may be received by the Designated Dealer(s) identified on my company's Dealer Designation form as provided to the Cooperative administrator. I understand that my company shall remain responsible for the Contract and the performance of all Designated Dealers under and in accordance with the Contract. Reauest for Ouotes("RFO"): Cooperative members will send RFQs to you by e-mail. Please provide e-mail addresses for the receipt of RFQs: RFQ E-mail Address: bids@mccinnovations.com RFQ contact: Cassie Shores Phone: 850.701 .0725 ext. 1750 Alternate RFQ E-mail Address: salesoperations@mccinnovations.com Alternate RFQ Contact: Donny Barstow Phone: 850.701 .0711 Page 11 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn Invoices: Your company will be billed monthly for the service fee due under a contract awarded under this Proposal Invitation. All invoices are available on the BuyBoard website and e-mail notifications will be sent when they are ready to be retrieved. Please provide the following address, contact and e-mail information for receipt of service fee invoices and related communications: Please choose only one (1) of the following options for receipt of invoices and provide the requested information: ■❑ Service fee invoices and related communications should be provided directly to my company at: Invoice Mailing address: 3717 Apalachee Parkway, Suite 201 Department: Finance City: Tallahassee State: FL —Zip code. 32311 Contact Name: Lindsey Fearington Phone: 850.701 .0725 ext. 1659 Invoice Fax: 850.564.7496 Invoice E-mail Address: Ifearington@mccinnovations.com Alternative Invoice E-mail Address: billing@mccinnovations.com ❑ In lieu of my company, I request and authorize all service fee invoices to be provided directly to the following billing agent": Billing agent Mailing address: Department: City: State: _Zip Code: Billing Agent Contact Name: Phone: Billing Agent Fax: Billing Agent E-mail Address: Alternative Billing Agent E-mail Address: **If Vendor authorizes a billing agent to receive and process service fee invoices, in accordance with the General Terms and Conditions of the Contract, Vendor specifically acknowledges and agrees that nothing in that designation shall relieve Vendor of its responsibilities and obligations under the Contract including,but not limited to,payment ofall service fees under any Contract awarded Vendor. Page 12 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..uIyboard.corn FELONY CONVICTION DISCLOSURE AND DEBARMENT CERTIFICATION FELONY CONVICTION DISCLOSURE Subsection (a) of Section 44.034 of the Texas Education Code(Notification of Criminal History of Contractor) states: "A person or business entity that enters into a contract with a school district must give advance notice to the district if the person or an owner or operator has been convicted of a felony. The notice must include a general description of the conduct resulting in the conviction of a felony." Section 44.034 further states in Subsection (b): "A school district may terminate a contract with a person or business entity if the district determines that the person or business entity failed to give notice as required by Subsection (a) or misrepresented the conduct resulting in the conviction. The district must compensate the person or business entity for services performed before the termination of the contract." Please check (i/)one of the following: ❑ My company Is a publicly-held corporation. (Advance notice requirement does not apply to publicly-held corporation.) ■❑ My company is not owned or operated by anyone who has been convicted of a felony. ❑ My company is owned/operated by the following individual(s) who has/have been convicted of a felony: Name of Felon(s): Details of Conviction(s): By signature below, I certify that the above information is true, complete and accurate and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Aut rued Company Official Printed Name DEBARMENT CERTIFICATION Neither my company nor an owner or principal of my company has been debarred, suspended or otherwise made ineligible for participation in Federal Assistance programs under Executive Order 12549,"Debarment and Suspension,"as described in the Federal Register and Rules and Regulations. Neither my company nor an owner or principal of my company is currently listed on the government-wide exclusions in SAM, debarred, suspended, or otherwise excluded by agencies or declared ineligible under any statutory or regulatory authority. My company agrees to immediately notify the Cooperative and all Cooperative members with pending purchases or seeking to purchase from my company if my company or an owner or principal is later listed on the government-wide exclusions in SAM, or is debarred, suspended, or otherwise excluded by agencies or declared ineligible under any statutory or regulatory authority. By signature below, I certify that the above is true, complete and accurate and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Page 13 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •,b.u!yboard.corn RESIDENT/NONRESIDENT CERTIFICATION Chapter 2252, Subchapter A, of the Texas Government Code establishes certain requirements applicable to proposers who are not Texas residents. Under the statute, a "resident" proposer is a person whose principal place of business is in Texas, including a contractor whose ultimate parent company or majority owner has its principal place of business in Texas. A ,nonresident" proposer is a person who is not a Texas resident. Please indicate the status of your company as a "resident" proposer or a "nonresident" proposer under these definitions. Please check (i/)one of the following_ ❑ I certify that my company is a Resident Proposer. ❑■ I certify that my company is a Nonresident Proposer. If your company is a Nonresident Proposer, you must provide the following information for your resident state (the state in which your company's principal place of business is located): MCCi, LLC 3717 Apalachee Parkway, Suite 201 Company Name Address Tallahassee FL 32311 City State Zip Code A. Does your resident state require a proposer whose principal place of business is in Texas to under-price proposers whose resident state is the same as yours by a prescribed amount or percentage to receive a comparable contract? ❑ Yes X❑ No B. What is the prescribed amount or percentage? $ or % VENDOR EMPLOYMENT CERTIFICATION Section 44.031(b) of the Texas Education Code establishes certain criteria that a school district must consider when determining to whom to award a contract. Among the criteria for certain contracts is whether the vendor or the vendor's ultimate parent or majority owner(i) has its principal place of business in Texas; or (ii)employs at least 500 people in Texas. If neither your company nor the ultimate parent company or majority owner has its principal place of business in Texas, does your company, ultimate parent company, or majority owner employ at least 500 people in Texas? Please check (i/)one of the following_ ❑ Yes X❑ No By signature below, I certify that the information in Sections 1 (Resident/Nonresident Certification) and 2 (Vendor Employment Certification) above is true, complete and accurate and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Page 14 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •,b.u!yboard.corn NO ISRAEL BOYCOTT CERTIFICATION Effective September 1, 2017, as amended effective May 7, 2019 (H.B. 793), a Texas governmental entity may not enter into a contract with a value of$100,000 or more that is to be paid wholly or partly from public funds with a company (excluding a sole proprietorship) that has 10 or more full-time employees for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. (TEx. GoVT CODE Ch. 2270). Accordingly, this certification form is included to the extent required by law. "Boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. TEx. GoVT CODE §808.001(1). By signature below, I certify and verify that Vendor does not boycott Israel and will not boycott Israel during the term of any contract awarded under this Proposal Invitation,that this certification is true,complete and accurate,and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Note; If Vendor does not wish to make this certification,return the blank form in lieu of completed certification, NO EXCLUDED NATION OR FOREIGN TERRORIST ORGANIZATION CERTIFICATION Effective September 1, 2017, Chapter 2252 of the Texas Government Code provides that a Texas governmental entity may not enter into a contract with a company engaged in active business operations with Sudan, Iran, or a foreign terrorist organization —specifically, any company identified on a list prepared and maintained by the Texas Comptroller under Texas Government Code §§806.051, 807.051, or 2252.153. (A company that the U.S. Government affirmatively declares to be excluded from its federal sanctions regime relating to Sudan, Iran, or any federal sanctions regime relating to a foreign terrorist organization is not subject to the contract prohibition.) By signature below, I certify and verify that Vendor is not on the Texas Comptroller's list identified above; that this certification is true, complete and accurate; and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Page 15 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h.u!yboarcj.corn HISTORICALLY UNDERUTILIZED BUSINESS CERTIFICATION A proposer that has been certified as a Historically Underutilized Business (also known as a Minority/Women Business Enterprise or"MWBE"and all referred to in this form as a "HUB") is encouraged to indicate its HUB certification status when responding to this Proposal Invitation. The electronic catalogs will indicate HUB certifications for vendors that properly indicate and document their HUB certification on this form. Please check(1/) all that apply: ❑ I certify that my company has been certified as a HUB in the following categories: ❑ Minority Owned Business ❑ Women Owned Business ❑ Service-Disabled Veteran Owned Business(veteran defined by 38 U.S.C. §101(2), who has a service-connected disability as defined by 38 U.S.C. § 101(16), and who has a disability rating of 20% or more as determined by the U. S. Department of Veterans Affairs or Department of Defense) Certification Number: Name of Certifying Agency: RI My company has NOT been certified as a HUB. By signature below, I certify that the above is true, complete and accurate and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Print a e Signature of Authorized ompany Official Page 16 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn CONSTRUCTION-RELATED GOODS AND SERVICES AFFIRMATION A contract awarded under this Proposal Invitation covers only the specific goods and services awarded by the BuyBoard. As explained in the BuyBoard Procurement and Construction Related Goods and Services Advisory for Texas Members ("Advisory"), Texas law prohibits the procurement of architecture or engineering services through a purchasing cooperative.This BuyBoard contract does not include such services.Architecture or engineering services must be procured by a Cooperative member separately, in accordance with the Professional Services Procurement Act(Chapter 2254 of the Texas Government Code) and other applicable law and local policy. The Advisory, available at I U.y,lb.mjr..d_.. c,,m/Veindoir/V esouir es.as�px, provides an overview of certain legal requirements that are potentially relevant to a Cooperative member's procurement of construction or construction-related goods and services, including those for projects that may involve or require architecture, engineering or independent testing services. A copy of the Advisory can also be provided upon request. By signature below, the undersigned affirms that Proposer has obtained a copy of the Advisory, has read and understands the Advisory, and is authorized by Proposer to make this affirmation. If Proposer sells construction-related goods or services to a Cooperative member under a BuyBoard contract awarded under this Proposal Invitation, Proposer will comply with the Advisory and applicable legal requirements, make a good faith effort to make its Cooperative member customers or potential Cooperative member customers aware of such requirements, and provide a Cooperative member with a copy of the Advisory before executing a Member Construction Contract with the member or accepting the member's purchase order for construction-related goods or services, whichever comes first. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name 5. 13.2020 Date Page 17 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •,b.u!yboard.corn DEVIATION AND COMPLIANCE If your company intends to deviate from the General Terms and Conditions, Proposal Specifications or other requirements associated with this Proposal Invitation, you MUST list all such deviations on this form, and provide complete and detailed information regarding the deviations on this form or an attachment to this form. The Cooperative will consider any deviations in its contract award decision and reserves the right to accept or reject a proposal based upon any submitted deviation. In the absence of any deviation identified and described in accordance with the above, your company must fully comply with the General Terms and Conditions, Proposal Specifications and all other requirements associated with this Proposal Invitation if awarded a contract under this Proposal Invitation. A deviation will not be effective unless accepted by the Cooperative. The Cooperative may, in its sole discretion, seek clarification from and/or communicate with Proposer(s) regarding any submitted deviation, consistent with general procurement principles of fair competition. The Cooperative reserves the right to accept or reject a proposal based upon an submitted deviation. p J p p p Y 1C eN uaafions presented by the n c°utdor hm e been Please check W) one of the followina: accepted by BuyyBoa rd ❑ NO; Deviations Unaz Maaraad nn ■❑ Yes; Deviations BuuyBoaard Contract AduuQhfistnaor List and full explain an deviations you are submitting: Y p Y Y MCCi's scanning/imaging services do not include charges as applicable for pickup, delivery, and shipping. These are priced by job and will vary. MCCi may have additional Terms and Conditions related to each project that it will negotiate with cooperative members; it is understood that any additional terms will not supersede BuyBoard's terms. For avoidance of doubt, MCCi's standard Master Services Agreement(MSA) references government purchasing vehicle language as superseding MCCi terms. PLEASE PROVIDE THE FOLLOWING INFORMATION: 1. Shipping Via: ❑■ Common Carrier ❑■ Company Truck ❑ Prepaid and Add to Invoice ❑ Other: 2. Payment Terms: ■❑ Net 30 days ❑ 1% in 10/Net 30 days ❑ Other: 3. Number of Days for Delivery: Varies ARO 4. Vendor Reference/Quote Number: 625-20 For software orders, within 30 days of Order, if software has not been activated, a full refund will be 5. State your return policy: granted; if software has been activated, a 15% processing fee will apply. No refunds will be granted after 30 days. For scanning orders, MCCi will correct only those valid discrepancies outlined in our agreement above the acceptable error rate reported within 90 days after delivery of electronic data to Client. All product warranties are limited to manufacturer's standard warranty provisions. 6. Are electronic payments acceptable? ■❑Yes ❑ No 7. Are credit card payments acceptable? ❑Yes ❑■ No MCCi, LLC C pa y Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Page 18 of 62 Proposal Forms COMM/SVCS v.12.19.2019 *Does not apply to MCU, LLC I..'Wigoard Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn LOCATION / AUTHORIZED SELLER LISTINGS If you have more than one location/authorized seller that will service a contract awarded under this Proposal Invitation, please list each location/authorized seller below. If additional sheets are required, please duplicate this form as necessary. NOTE: Awarded Vendors shall remain responsible for all aspects of the Contract, including processing of Purchase Orders, and shall be responsible for the performance of all locations and authorized sellers under and in accordance with the Contract. If you are a product manufacturer and wish to designate Designated Dealers as defined in the General Terms and Conditions to receive Cooperative member Purchase Orders on your behalf, you must complete the Manufacturer Designated Dealer form. *Does not apply to MCU, LLC Company Name Address City State Zip Phone Number Fax Number Contact Person Company Name Address City State Zip Phone Number Fax Number Contact Person Page 19 of 62 Proposal Forms COMM/SVCS v.12.19.2019 *Does not apply to MM, LLC I..'Wigoard Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboard.corn MANUFACTURER DEALER DESIGNATION If Vendor is a manufacturer that sells products through a dealer network and wishes to designate a dealer or multiple dealers ("Designated Dealers' to receive Cooperative member Purchase Orders on Vendor's behalf, you must complete this form for each dealer you wish to designate. Regardless of any Designated Dealers submitted by Vendor, Vendor specifically agrees and acknowledges that any such designations are for Vendor's convenience only and shall not, if Vendor is awarded a Contract, relieve Vendor of any obligations under the Contract, including payment of Cooperative service fees on all Purchase Orders submitted to Vendor or any Designated Dealer. In accordance with the General Terms and Conditions, an awarded Vendor shall remain responsible and liable for all of its obligations under the Contract and the performance of both Vendor and any of Vendor's Designated Dealers under and in accordance with the Contract and remain subject to all remedies for default thereunder, including, but not limited to suspension and termination of Vendor's Contract for nonpayment of service fees. If awarded, Vendor authorizes the Cooperative, in its sole discretion, to list any Vendor Designated Dealers in the BuyBoard system and to receive Purchase Orders directly from Cooperative members on behalf of Vendor. To the extent a Vendor with Designated Dealers receives a Purchase Order directly, it shall be the responsibility of Vendor to appropriately process such Purchase Order in accordance with the Contract, including but not limited to timely forwarding such Purchase Order to a Designated Dealer for processing. The Cooperative reserves the right, in its sole discretion, to refuse addition of, or request removal of, any Designated Dealer, and Vendor agrees to immediately require such Designated Dealer to cease accepting Purchase Orders or otherwise acting on Vendor's behalf under the Contract. Further, the Cooperative's administrator shall be authorized to remove or suspend any or all Designated Dealers from the BuyBoard at any time in its sole discretion. If you wish to designate a dealer to service a contract awarded under this Proposal Invitation, please list the Designated Dealer below and have this form signed by an official of your company authorized to make such designation. If you wish to designate multiple dealers, please duplicate this form as necessary. *Does not apply to MM, LLC Designated Dealer Name Designated Dealer Address City State Zip Phone Number Fax Number Email address Designated Dealer Tax ID Number* (*attach W-9) Designated Dealer Contact Person Your Company Name Signature of Authorized Company Official Page 20 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboarcj.corn TEXAS REGIONAL SERVICE DESIGNATION The Cooperative (referred to as"Texas Cooperative" in this form and in the State Service Designation form) offers vendors the opportunity to service its members throughout the entire State of Texas. If you do not plan to service all Texas Cooperative members statewide, you must indicate the specific regions you will service on this form. Ifyou propose to serve different regions for different products or services included in your proposal,you must complete and submit a separate Texas Regional Service Designation form for each group of products and clearly indicate the products or services to which the designation applies in the space provided at the end of this form. By designating a region orregions,you are certifying that you are authorized and willing to provide the proposed products and services in those regions. Designating regions in which you are either unable or unwilling to provide the specified products and services shall be grounds for either rejection of your proposal or, if awarded, termination of your Contract. Additionally, if you do not plan to service Texas Cooperative members (i.e., if you will service only states other than Texas), you must so indicate on this form. Regional Education Service Centers 0 I will service Texas Cooperative members statewide. ❑ I will not service Texas Cooperative members statewide. I will only service members in the regions checked below: Reaion and Headauarters 1 "� ❑ 1 Edinburg ` r ❑ 2 Corpus Christi &., ,� �_� �- ..m ��ram, � ; ❑ 3 Victoria ��� �.�. � � ❑ 4 Houston ❑ 5 Beaumont ❑ 6 Huntsville ' V ❑ 7 Kilgore 8., � Mount Pleasant ❑ 2'0 '; ❑ 9 Wichita Falls ° ❑ 10 Richardson ❑ 11 Fort Worth ❑ 12 Waco !� ❑ 13 Austin ❑ 14 Abilene " �'� ❑ 15 San Angelo ,__ ❑ 16 Amarillo MCCI, LLC ❑ 17 Lubbock ❑ 18 Midland Com ny ame ❑ 19 El Paso ❑ 20 San Antonio Signature of Authorized Company Official Donald Barstow, President & CEO ❑ I will not service members of the Printed Name Texas Cooperative. Page 21 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.b.u!yboarcj.corn If this Texas Regional Service Designation form applies to only one or some of the products and services proposed by Vendor, list the products and services to which this form applies here: Page 22 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn STATE SERVICE DESIGNATION The Cooperative offers vendors the opportunity to service other governmental entities in the United States, including intergovernmental purchasing cooperatives such as the National Purchasing Cooperative BuyBoard. You must complete this form if you plan to service the entire United States, or will service only the specific states indicated. (Note:If you plan to service Texas Cooperative members, be sure that you complete the Texas Regional Service Designation form.) If you serve different states for different products or services included in your proposal,you must complete and submit a separate State Service Designation form for each group of products and clearly indicate the products or services to which the designation applies in the space provided at the end of this form. By designating a state or states,you are certifying that you are authorized and willing to provide the proposed products and services in those states. Designating states in which you are either unable or unwilling to provide the specified products and services shall be grounds for either rejection of your proposal or, if awarded, termination of your Contract. Please check(-/) all that apply: ❑■ I will service all states in the United States. ❑ I will not service all states in the United States. I will service only the states checked below: ❑ Alabama ❑ Alaska ❑ Nebraska ❑ Arizona ❑ Nevada ❑ Arkansas ❑ New Hampshire ❑ California (Public Contract Code 20118 &20652) ❑ New Jersey ❑ Colorado ❑ New Mexico ❑ Connecticut ❑ New York ❑ Delaware ❑ North Carolina ❑ District of Columbia ❑ North Dakota ❑ Florida ❑ Ohio ❑ Georgia ❑ Oklahoma ❑ Hawaii ❑ Oregon ❑ Idaho ❑ Pennsylvania ❑ Illinois ❑ Rhode Island ❑ Indiana ❑ South Carolina ❑ Iowa ❑ South Dakota ❑ Kansas ❑ Tennessee ❑ Kentucky ❑ Texas ❑ Louisiana ❑ Utah ❑ Maine ❑ Vermont ❑ Maryland ❑ Virginia ❑ Massachusetts ❑ Washington ❑ Michigan ❑ West Virginia ❑ Minnesota ❑ Wisconsin ❑ Mississippi ❑ Wyoming ❑ Missouri ❑ Montana Page 23 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h..u!yboarcj.corn This form will be used to ensure that you can service other governmental entities throughout the United States as indicated. Your signature below confirms that you understand your service commitments during the term of a contract awarded under this proposal. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name If this State Service Designation form applies to only one or some of the products and services proposed by Vendor, list the products and services to which this form applies here: Page 24 of 62 Proposal Forms COMM/SVCS v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h.u!yboard.corn NATIONAL PURCHASING COOPERATIVE VENDOR AWARD AGREEMENT In accordance with the Terms and Conditions associated with this Proposal Invitation,a contract awarded under this Proposal Invitation may be "piggy-backed" by another governmental entity. The National Purchasing Cooperative is an intergovernmental purchasing cooperative formed by certain school districts outside of Texas to serve its members throughout the United States. If you agree to be considered for a piggy-back award by the National Purchasing Cooperative, you agree to the following terms and agree to serve National Purchasing Cooperative members in the states you have indicated on the State Service Designation form, in your Proposal. By signing this form, Proposer(referred to in this Agreement as"Vendor") agrees as follows: 1. Vendor acknowledges that if The Local Government Purchasing Cooperative ("Texas Cooperative") awards Vendor a contract under this Proposal Invitation ("Underlying Award', the National Purchasing Cooperative ("National Cooperative' may - but is not required to - "piggy-back"on or re-award all or a portion of that Underlying Award ("Piggy-Back Award"). By signing this National Cooperative Vendor Award Agreement ("Agreement"), Vendor accepts and agrees to be bound by any such Piggy-Back Award as provided for herein. 2. In the event National Cooperative awards Vendor a Piggy-Back Award, the National Cooperative Administrator("BuyBoard Administrator") will notify Vendor in writing of such Piggy-Back Award, which award shall commence on the effective date stated in the Notice and end on the expiration date of the Underlying Award, subject to annual renewals as authorized in writing by the BuyBoard Administrator. Vendor agrees that no further signature or other action is required of Vendor in order for the Piggy-Back Award and this Agreement to be binding upon Vendor. Vendor further agrees that no interlineations or changes to this Agreement by Vendor will be binding on National Cooperative, unless such changes are agreed to by its BuyBoard Administrator in writing. 3. Vendor agrees that it shall offer its goods and services to National Cooperative members at the same unit pricing and same general terms and conditions, subject to applicable state laws in the state of purchase, as required by the Underlying Award. However, nothing in this Agreement prevents Vendor from offering National Cooperative members better(i.e., lower) competitive pricing and more favorable terms and conditions than those in the Underlying Award. 4. Vendor hereby agrees and confirms that it will serve those states it has designated on the State Service Designation Form of this Proposal Invitation. Any changes to the states designated on the State Service Designation Form must be approved in writing by the BuyBoard Administrator. 5. Vendor agrees to pay National Cooperative the service fee provided for in the Underlying Award based on the amount of purchases generated from National Cooperative members through the Piggy-Back Award. Vendor shall remit payment to National Cooperative on such schedule as it specifies (which shall not be more often than monthly). Further, upon request, Vendor shall provide National Cooperative with copies of all purchase orders generated from National Cooperative members for purposes of reviewing and verifying purchase activity. Vendor further agrees that National Cooperative shall have the right, upon reasonable written notice, to review Vendor's records pertaining to purchases made by National Cooperative members in order to verify the accuracy of service fees. 6. Vendor agrees that the Underlying Award, including its General Terms and Conditions, are adopted by reference to the fullest extent such provisions can reasonably apply to the post-proposal/contract award phase. The rights and responsibilities that would ordinarily inure to the Texas Cooperative pursuant to the Underlying Award shall inure to National Cooperative; and, conversely, the rights and responsibilities that would ordinarily inure to Vendor in the Underlying Award shall inure to Vendor in this Agreement. Vendor recognizes and agrees that Vendor and National Cooperative are the only parties to this Agreement, and that nothing in this Agreement has application to other third parties, including the Texas Cooperative. In the event of conflict between this Agreement and the terms of the Underlying Award, the terms of this Agreement shall control, and then only to the extent necessary to reconcile the conflict. Proposal Forms COMM/SVCS v.12.19.2019 Page 25 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcj.corn 7. This Agreement shall be governed and construed in accordance with the laws of the State of Rhode Island and venue for any dispute shall lie in the federal district court of Alexandria, Virginia. 8. Vendor acknowledges and agrees that the award of a Piggy-Back Award is within the sole discretion of National Cooperative, and that this Agreement does not take effect unless and until National Cooperative awards Vendor a Piggy-Back Award and the BuyBoard Administrator notifies Vendor in writing of such Piggy-Back Award as provided for herein. WHEREFORE, by signing below Vendor agrees to the foregoing and warrants that it has the authority to enter into this Agreement. MCCi, LLC 625-20 Nam ndor Proposal Invitation Number 2——4-----r Donald Barstow, President & CEO Signature of Authorized ompany Official Printed Name of Authorized Company Official 05.13.2020 Date Proposal Forms COMM/SVCS v.12.19.2019 Page 26 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h..u!yboarcj.corn FEDERAL AND STATE/PURCHASING COOPERATIVE EXPERIENCE The Cooperative strives to provide its members with the best services and products at the best prices available from vendors with the technical resources and ability to serve Cooperative members. Please respond to the following questions. 1. Provide the dollar value of sales to or through purchasing cooperatives at or based on an established catalog or market price during the previous 12-month period or the last fiscal year: $4,278,508.28 . (The period of the 12 month period is January2019 December2019). In the event that a dollar value is not an appropriate measure of the sales, provide and describe your own measure of the sales of the item(s). 2. By submitting a proposal, you agree that, based on your written discounting policies, the discounts you offer the Cooperative are equal to or better than the best price you offer other purchasing cooperatives for the same items under equivalent circumstances. 3. Provide the information requested below for other purchasing cooperatives for which Proposer currently serves, or in the past has served, as an awarded vendor. Rows should be added to accommodate as many purchasing cooperatives as required. CURRENT FORMER VENDOR(Y/N)? — AWARDED PURCHASING VENDOR? • •D GROUPD•• •• 1. Federal General Services Administration Y Schedule 70 2. T-PASS (state of Texas) N 3. OMNIA Partners Y Same as 9. 4. Sourcewell (NJPA) N 5. E&I Cooperative N 6. Houston-Galveston Area Council (HGAC) N 7. Choice Partners N 8. The Interlocal Purchasing System (TIPS) N 9. Other DIR, NCPA, City of Miami, Y 208-11, 208-36, 208-61 anover Uounty 208-80, 920-30, 920-38, ❑ MY COMPANY DOES NOT CURRENTLY HAVE ANY OF THE ABOVE OR SIMILAR TYPE CONTRACTS. 920-45, 958-82 CURRENT BUYBOARD VENDORS If you are a current BuyBoard vendor in the same contract category as proposed in this Proposal Invitation, indicate the discount for your current BuyBoard contract and the proposed discount in this Proposal. Explain any difference between your current and proposed discounts. Laserfiche Software-No Change Laserfiche Software- 7% Laserfiche Support-No Change Current Discount(%): Laserfiche Support- 10%w/SLA Proposed Discount(%): MCCi/Laserfiche Subscription-5% MCCi/Laserfiche Subscription - 5%w/SLA Laserfiche Cloud -No Change CCi Explanation: Laserfiche Cloud -3% 10%w/SLA Services-5%w/out SLA, MCCi Services - 8% w/out SLA, 10% w/SLA Adding ABBYY Manufacturer Scanning Discounts Vary Scanning Discounts-No Change There is no longer a requirement to have an active Service Level Agreement(SLA) to receive the Subscription discount. Although the MCCi Services Discount is still 10% with an SLA, without it is only 5% (versus the 8% it is today), so we can be in compliance with our other purchasing vehicles. Page 27 of 62 Proposal Forms COMM/Svcs v.12.19.2019 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.uIyboarcj.corn By signature below, I certify that the above is true, complete and accurate and that I am authorized by my company to make this certification. MCCi, LLC Company Name Donald Barstow, President & CEO Signature of Authorized Company Official Printed Name Proposal Forms COMM/SVCS v.12.19.2019 Page 28 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboarcA,corn GOVERNMENTAL REFERENCES For your Proposal to be considered, you must supply a minimum of five (5) individual governmental entity references. The Cooperative may contact any and all references provided as part of the Proposal evaluation. Provide the information requested below, including the existing price/discounts you offer each customer. The Cooperative may determine whether prices/discounts are fair and reasonable by comparing prices/discounts stated in your Proposal with the prices/discounts you offer other governmental customers. Attach additional pages if necessary. Quantity/ Entity Name Contact Phone# Email Address Discount Volume wendyc@ BuyBoard#544-17: 1.Corpus Christi, TX Wendy Contreras 361.826.1834 cctexas.com Software: 7% 1 Support: 10% $81,554.90 dharris@ BuyBoard#544-17: 2.Brazos County, TX Desmond Harris 979.361.4565 brazoscountytx.gov Software: 7% 1 Support: 10% $95,005.35 mstratta@ BuyBoard#544-17: 3.Bryan,TX Mary Lynn Stratta 979.209.5002 bryantx.gov Software: 7% 1 Support: 10% $81,487.35 jboozer@ BuyBoard#544-17: 4.Galveston,TX Jim Boozer 409.797.3528 galvestontx.gov Software: 7% 1 Support: 10% $42,595.70 Ieigh_johnson@ BuyBoard#544-17: 5.Prosper, TX Leigh Johnson 972.569.1150 prospertx.gov Software: 7% 1 Support: 10% $52,425.20 Do you ever modify your written policies or standard governmental sales practices as identified in the above chart to give better discounts (lower prices) than indicated? YES ❑ NO ❑■ If YES, please explain: By signature below, I certify that the above is true and correct and that I am authorized by my company to make this certification. MCCi, LLC Compa me Sign re of Authorized COkpany Official Donald Barstow, President & CEO Printed Name Proposal Forms COMM/SVCS v.12.19.2019 Page 29 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.uIyboarcj.corn MARKETING STRATEGY For your Proposal to be considered, you must submit the Marketing Strategy you will use if the Cooperative accepts all or part of your Proposal. (Example: Explain how your company will initially inform Cooperative members of your BuyBoard contract, and how you will continue to support the BuyBoard for the duration of the contract period.) Attach additional pages if necessary. See next page. MCCi, LLC CompanyAame Signature of Authorized Company Official Donald Barstow, President & CEO Printed Name Proposal Forms COMM/SVCS v.12.19.2019 Page 30 of 62 MARKETING STRATEGY ............ ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. ............. .......................... MCCi has a fully-staffed marketing department that is already dedicated to executing a marketing plan for all MCCi products and services. Those current strategies and tactics will be applied to the Cooperative members. A brief description of our marketing strategy is described below: IE II3 S III°'"'IIE We currently maintain a website to draw potential clients and support our current clients. We post upcoming events and webinars to this site and also focus on strengthening our Search Engine Optimization (SEO) by using GoogleAd Words and keeping our content up to date at all times. Our website allows potential and current clients to see our solutions by industry, use case, process, and integration options. We also frequently post case studies and client success stories. IE II .1"'III CA II,,, IIF O " S In addition to our focus on the public sector,we believe specific verticals within government will allow us to leverage client successes and allow for an increased number of sales rather than a broad focus on government in general. We defined our verticals based on areas we have a current client that has a success story to share: Z Cities and Counties 110 School Districts 110 Special Districts IN Licensing Boards (State Level) Z Law Enforcement 110 Higher Education 110 Courts IN DistrictAttorney's Offices Z State Agencies 110 Human Resources 110 Elections IN Building Departments IN Finance Departments IE V IE IIM I MCCi sees our most success from our events. We strive to make the most of each to maximize leads and opportunities. TRADE SHOWS &CONFERENCES We maximize our opportunities at conferences by attending all scheduled events, providing information marketing materials at our booth and securing speaking engagements to allow us to educate attendees on our products and services. In the state of Texas,we usually attend the following: IN Texas Municipal Clerks Association IN Texas Association of State Systems for Computing and Communications (TASSCC) IN Texas Association of Government Information Technology Managers (TAGITM) IN Texas Municipal Human Resources Association IN Texas Association of Business Officials IN GovTech Texas Public CIO IN Texas Government Finance Officers Association of Texas IN DIR e-Records In addition to the state of Texas,we go to over 75 conferences across the country with a similar focus. MCCi LASERFICHE USER COMMUNITIES MCCi hosts User Communities as a way for our clients to come together to network and learn more about our offerings.These educational events assist in retention efforts and facilitate sales, as clients learn about new products and new ways they can utilize our solutions. We also do remote User Communities periodically through the web to help those that cannot attend onsite events. CLIENT WORKSHOPS Client Workshops are similar to a User Community, but are focused on a specific client. Our account management team focuses on conducting as many of these as possible throughout the year to provide overview training, review their current licensing,educate clients on all their solution has to offer, invite new departments or users to learn more about the solution they already have and more. These have been extremely successful in growing the size of these accounts. tjCC 11 1 RFQ 625-20: Copy-Print and Document Management Services Page 30.1 of 62 EMAIL & DIGITAL CAMPAIGNS In addition to the events listed above and published materials,we use email and digital (social media) marketing as a way to market to current and potential clients. If MCO is chosen as a vendor,we will focus on educating our staff on the contract in order to make sure we maximize the use of it in our sales process.This will be come a resource for us to educate prospective clients as they approach the buying phase in the sales process.We will: IN Conduct an educational session for our staff IN Create documentation that can be easily forwarded along to potential clients that includes all the relevant information so they can easily utilize the contract IN Educate prospective clients on the process tjCC 11 1 RFQ 625-20: Copy-Print and Document Management Services Page 30.2 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn CONFIDENTIAL/PROPRIETARY INFORMATION A. Public Disclosure Laws All Proposals, forms, documentation, or other materials submitted by Vendor to the Cooperative in response to this Proposal Invitation, including catalogs and pricelists, may be subject to the disclosure requirements of the Texas Public Information Act(Texas Government Code chapter 552.001, et. seq.) or similar disclosure law. Proposer must clearly identify on this form any information in its Proposal (including forms,documentation,or other materials submitted with the Proposal)that Proposer considers proprietary or confidential. If Proposer fails to properly identify the information, the Cooperative shall have no obligation to notify Vendor or seek protection of such information from public disclosure should a member of the public or other third party request access to the information under the Texas Public Information Act or similar disclosure law. Proposer will be notified of any third party request for information in a Proposal that Proposer has identified in this form as proprietary or confidential. Does your Proposal (including forms, documentation, or other materials submitted with the Proposal) contain information which Vendor considers proprietary or confidential? Please check(A one of the following: NO, I certify that none of the information included with this Proposal is considered confidential or proprietary. YES, I certify that this Proposal contains information considered confidential or proprietary and all such information is specifically identified on this form. If you responded "YES", you must identify below the specific information you consider confidential or proprietary. List each page number, form number, or other information sufficient to make the information readily identifiable. The Cooperative and its Administrator will not be responsible for a Proposer's failure to clearly identify information considered confidential or proprietary. Further, by submitting a Proposal, Proposer acknowledges that the Cooperative and its Administrator will disclose information when required by law, even if such information has been identified herein as information the vendor considers confidential or proprietary. Confidential / Proprietary Information: N/A (Attach addition/sheets if needed.) Proposal Forms COMM/SVCS v.12.19.2019 Page 31 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn B. Copyright Information Does your Proposal (including forms, documentation, or other materials submitted with the Proposal) contain copyright information? Please check(A one of the following ❑ NO, Proposal (including forms, documentation, or other materials submitted with the Proposal)does not contain copyright information. ❑ YES, Proposal (including forms, documentation,or other materials submitted with the Proposal)does contain copyright information. If you responded "YES", identify below the specific documents or pages containing copyright information. Copyright Information: N/A (Attach additional sheets if needed.) C.Consent to Release Confidential/Proprietary/Copyright Information to BuyBoard Members BuyBoard members (Cooperative and nonprofit members) seeking to make purchases through the BuyBoard may wish to view information included in the Proposals of awarded Vendors. If you identified information on this form as confidential, proprietary, or subject to copyright, and you are awarded a BuyBoard contract, your acceptance of the BuyBoard contract award constitutes your consent to the disclosure of such information to BuyBoard members, including posting of such information on the secure BuyBoard website for members. Note: Neither the Cooperative nor its Administrator will be responsible for the use or distribution of information by BuyBoard members or any other party. D.Consent to Release Proposal Tabulation Notwithstanding anything in this Confidential/Proprietary Information form to the contrary, by submitting a Proposal, Vendor consents and agrees that, upon Contract award, the Cooperative may publicly release, including posting on the public BuyBoard website, a copy of the proposal tabulation for the Contract including Vendor name; proposed catalog/pricelist name(s); proposed percentage discount(s), hourly labor rate(s), or other specified pricing; and Vendor award or non-award information. By signature below, I certify that the information in this form is true, complete, and accurate and that I am authorized by my company to make this certification and all consents and agreements contained herein. MCCi, LLC Com ny Name Signature of Authorized Company Official Donald Barstow, President & CEO Printed Name 05.13.2020 Date Proposal Forms COMM/SVCS v.12.19.2019 Page 32 of 62 LaOWDoard 0 Cooperative Purchasing ing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboard.corn VENDOR BUSINESS NAME By submitting a Proposal, Proposer is seeking to enter into a legal contract with the Cooperative. As such, a Proposer must be an individual or legal business entity capable of entering into a binding contract. Proposers, must completely and accurately provide the information requested below or your Proposal may be deemed non-responsive. Name of Proposing Company: MCCi, LLC (List the/eaa/name of the company seeking to contract with the Cooperative. Do NOT/1st an assumed name,dba,aka, etc,here. Such information may be pro vided below. If you are submitting a joint proposal with another entity to,provide the same proposed goods or services,each submitting entity should complete a separate vendor information form. Separately operating legal business entities, even if affiliated entities, which,propose to,provide goods or services separately must submit their own Proposals.) Please check M one of the following: Tyne of Business: Individual/Sole Proprietor Corporation Limited Liability Company 0 Partnership Other If other, identify State of Incorporation (if applicable): Federal Employer Identification Number: 33-1069550 (Vendor must include a completed IRS W- form with their proposal) List the Name(s) by which Vendor, if awarded, wishes to be identified on the BuyBoard: (Note. Ifdifferentthan the Name ofPro,posing Company listed above,only valid trade names(dba,aka, etc.)of the Proposing Company may be used and a copy of your Assumed Name Certificate(s),if applicable,must be attached.) MCCi, LLC Proposal Forms COMM/SVCS v.12.19.2019 Page 33 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn EDGAR VENDOR CERTIFICATION (2 CFR Part 200 and Appendix II) When a Cooperative member seeks to procure goods and services using funds under a federal grant or contract, specific federal laws, regulations, and requirements may apply in addition to those under state law. This includes, but is not limited to, the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR 200 (sometimes referred to as the "Uniform Guidance" or new "EDGAR"). All Vendors submitting proposals must complete this EDGAR Certification Form regarding Vendor's willingness and ability to comply with certain requirements which maybe applicable to specific Cooperative member purchases using federal grant funds. This completed form will be made available to Cooperative members for their use while considering their purchasing options when using federal grant funds. Cooperative members may also require Vendors to enter into ancillary agreements, in addition to the BuyBoard contract's general terms and conditions, to address the member's specific contractual needs, including contract requirements for a procurement using federal grants or contracts. For each of the items below, Vendor should certify Vendor's agreement and ability to comply, where applicable, by having Vendor's authorized representative complete and initial the applicable boxes and sign the acknowledgment at the end of this form. If you fail to complete any item in this form, the Cooperative will consider and may list the Vendors response on the BuyBoard as "NO,ff the Vendor is unable or unwilling to comply, A"NO"response to any of the items may, if applicable, impact the ability of a Cooperative member to purchase from the Vendor using federal funds. 1. Vendor Violation or Breach of Contract Terms: Contracts for more than the Simplified Acquisition Threshold,which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 USC 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. Provisions regarding Vendor default are included in the BuyBoard General Terms and Conditions, including Section E.18, Remedies for Default and Termination of Contract. Any Contract award will be subject to such BuyBoard General Terms and Conditions, as well as any additional terms and conditions in any Purchase Order, Cooperative member ancillary contract, or Member Construction Contract agreed upon by Vendor and the Cooperative member which must be consistent with and protect the Cooperative member at least to the same extent as the BuyBoard Terms and Conditions. The remedies under the Contract are in addition to any other remedies that may be available under law or in equity. By submitting a Proposal, you agree to these Vendor violation and breach of contract terms. 2. Termination for Cause or Convenience: For any Cooperative member purchase or contract in excess of$10,000 made using federal funds,you agree that the following term and condition shall apply: The Cooperative member may terminate or cancel any purchase order under this Contract at any time, with or without cause, by providing seven (7)business days advance written notice to the Vendor. If this Agreement is terminated in accordance with this Paragraph, the Cooperative member shall only be required to pay Vendor for goods or services delivered to the Cooperative member prior to the termination and not otherwise returned in accordance with Vendor's return policy. If the Cooperative member has paid Vendor for goods or services not yet provided as of the date of termination, Vendor shall immediately refund such payment(s). If an alternate provision for termination of a Cooperative member purchase for cause and convenience, including the manner by which it will be effected and the basis for settlement, is included in the Cooperative member's purchase order, ancillary agreement, or Member Construction Contract agreed to by the Vendor, the Cooperative member's provision shall control. Proposal Forms COMM/SVCS v.12.19.2019 Page 34 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h.u!yboarcj.corn 3. Equal Employment Opportunity: Except as otherwise provided under 41 CFR Part 60, all Cooperative member purchases or contracts that meet the definition of"federally assisted construction contract" in 41 CFR Part 60-1.3 shall be deemed to include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246,"Equal Employment Opportunity"(30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 CFR Part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." The equal opportunity clause provided under 41 CFR 60-1.4(b) is hereby incorporated by reference. Vendor agrees that such provision applies to any Cooperative member purchase or contract that meets the definition of"federally assisted construction contract" in 41 CFR Part 60-1.3 and Vendor agrees that it shall comply with such provision. 4. Davis-Bacon Act: When required by Federal program legislation, Vendor agrees that, for all Cooperative member prime construction contracts/purchases in excess of$2,000, Vendor shall comply with the Davis-Bacon Act(40 USC 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction'. In accordance with the statute, Vendor is required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determinate made by the Secretary of Labor. In addition, Vendor shall pay wages not less than once a week. Current prevailing wage determinations issued by the Department of Labor are available at wddol., ov. Vendor agrees that, for any purchase to which this requirement applies, the award of the purchase to the Vendor is conditioned upon Vendor's acceptance of the wage determination. Vendor further agrees that it shall also comply with the Copeland "Anti-Kickback"Act (40 USC 3145), as supplemented by Department of Labor regulations (29 CFR Part 3,"Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. 5. Contract Work Hours and Safety Standards Act: Where applicable, for all Cooperative member contracts or purchases in excess of$100,000 that involve the employment of mechanics or laborers, Vendor agrees to comply with 40 USC 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 USC 3702 of the Act, Vendor is required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 USC 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 6. Right to Inventions Made Under a Contract or Agreement: If the Cooperative member's Federal award meets the definition of"funding agreement" under 37 CFR 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance or experimental, developmental, or research work under that "funding agreement,"the recipient or subrecipient must comply with the requirements of 37 CFR Part 401,"Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Vendor agrees to comply with the above requirements when applicable. Proposal Forms COMM/SVCS v.12.19.2019 Page 35 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..uIyboarcj.corn 7. Clean Air Act and Federal Water Pollution Control Act: Clean Air Act(42 USC 7401-7671q.)and the Federal Water Pollution Control Act(33 USC 1251-1387),as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act (42 USC 7401-7671q.) and the Federal Water Pollution Control Act, as amended (33 USC 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). When required, Vendor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act. 8. Debarment and Suspension: Debarment and Suspension (Executive Orders 12549 and 12689) —A contract award (see 2 CFR 180.220) must not be made to parties listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1966 Comp. p. 189) and 12689 (3 CFR Part 1989 Comp. p. 235),"Debarment and Suspension." SAM Exclusions contains the names of parties debarred,suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor certifies that Vendor is not currently listed on the government-wide exclusions in SAM, is not debarred, suspended, or otherwise excluded by agencies or declared ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor further agrees to immediately notify the Cooperative and all Cooperative members with pending purchases or seeking to purchase from Vendor if Vendor is later listed on the government-wide exclusions in SAM, or is debarred, suspended, or otherwise excluded by agencies or declared ineligible under statutory or regulatory authority other than Executive Order 12549. 9. Byrd Anti-Lobbying Amendment: Byrd Anti-Lobbying Amendment (31 USC 1352) -- Vendors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress,officer or employee of Congress,or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 USC 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award. As applicable, Vendor agrees to file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 USC 1352). 10. Procurement of Recovered Materials: For Cooperative member purchases utilizing Federal funds, Vendor agrees to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act where applicable and provide such information and certifications as a Cooperative member may require to confirm estimates and otherwise comply. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery, and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. 11. Profit as a Separate Element of Price: For purchases using federal funds in excess of the Simplified Acquisition Threshold, a Cooperative member may be required to negotiate profit as a separate element of the price. See, 2 CFR 200.323(b). When required by a Cooperative member, Vendor agrees to provide information and negotiate with the Cooperative member regarding profit as a separate element of the price for a particular purchase. However, Vendor agrees that the total price, including profit, charged by Vendor to the Cooperative member shall not exceed the awarded pricing, including any applicable discount, under Vendor's Cooperative Contract. Proposal Forms COMM/SVCS v.12.19.2019 Page 36 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •h.u!yboarcj.corn 12. General Compliance and Cooperation with Cooperative Members: In addition to the foregoing specific requirements, Vendor agrees, in accepting any Purchase Order from a Cooperative member, it shall make a good faith effort to work with Cooperative members to provide such information and to satisfy such requirements as may apply to a particular Cooperative member purchase or purchases including, but not limited to,applicable recordkeeping and record retention requirements. Vendor Certification: YES, I agree or Vendor'Certification Item No: NO, I'& NO-r agree Initial 1. Vendor Violation or Breach of Contract Terms YES 2. Termination for Cause or Convenience YES 3. Equal Employment Opportunity YES 4. Davis-Bacon Act YES 5. Contract Work Hours and Safety Standards Act YES u 6. Right to Inventions Made Under a Contract or Agreement YES d 7. Clean Air Act and Federal Water Pollution Control Act YES 8. Debarment and Suspension YES u 9. Byrd Anti-Lobbying Amendment YES 10. Procurement of Recovered Materials YES 11. Profit as a Separate Element of Price YES ,q 12. General Compliance and Cooperation with Cooperative Members YES /1) ' ro �� By signature below, I certify that the information in this form is true, complete, and accurate and that I am authorized by my company to make this certification and all consents and agreements contained herein. MC LLC Co pany ame Signature of Authorized Company Official Donald Barstow, President & CEO Printed Name Proposal Forms COMM/SVCS v.12.19.2019 Page 37 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U..u!yboard.corn PROPOSAL INVITATION QUESTIONNAIRE The Cooperative will use your responses to the questions below in evaluating your Proposal and technical and financial resources to provide the goods and perform the services("Work' under the BuyBoard contract contemplated by this Proposal Invitation ('Contract"). Proposers must fully answer each question, numbering your responses to correspond to the questions/numbers below. Proposers must complete below or attach your responses to this questionnaire, sign where indicated below,and submit the signed questionnaire and your responses to all questions in one document with your Proposal. You must submit the signed questionnaire and responses with your Proposal or the Proposal will not be considered. 1. List the number of years Proposer has been in business and former business names (if applicable). Note whether your company is currently for sale or involved in any transaction that would significantly alter its business or result in acquisition by another entity. MCCi originated from Municode, who manages the code, ordinances, and websites of more than 4,500 municipalities. In 2003 (17 years ago), the company's growth led to MCCi becoming a separate company and expanding its services to all types of government agencies and commercial businesses. 2. Describe the resources Proposer has to manage staff and successfully perform the Work contemplated under this Contract. State the number and summarize the experience of company personnel who may be utilized for the Work, including those who will be available to Cooperative members for assistance with project development, technical issues, and product selection for Work associated with this Contract. MCCi has been implementing complex Enterprise level software for government organizations for over 15 years. As a company, we have a large team of technical staff, ranging from software developers to system engineers and project managers. As the largest provider of Laserfiche in the Country, our technical staff handles remote and onsite training and implementations on a weekly basis 3. Describe Proposer's financial capability to perform the Contract. State or describe the firm's financial strength and rating, bonding capacity, and insurance coverage limits. State whether the firm, or any of the firm's past or present owners, principal shareholders or stockholders, or officers, have been a debtor party to a bankruptcy, receivership, or insolvency proceeding in the last 7 years, and identify any such debtor party by name and relationship to or position with your firm. MCCi maintains a Line of Credit that has adequate availability in times of need. MCCi maintains adequate cash reserves at all times. To verify statements above, MCCi can produce internally prepared financial statements upon request. MCCi does not subscribe to ratings from an agency like Dun & Bradstreet; therefore, these ratings are extremely inaccurate. Our CFO, James Dandy can be contacted directly at 850.701 .0725 ext. 1655 or email at jdandy a@mccinnovations.com. Proposal Forms COMM/SVCS v.12.19.2019 Page 38 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboard.corn 4. Does your company have any outstanding financial judgments and/or is it currently in default on any loan or financing agreement? If so, provide detailed information on the nature of such items and prospects for resolution. No 5. List all contracts, if any, in the last 10 years on which Proposer has defaulted, failed to complete or deliver the work, or that have been terminated for any reason. For each such contract, provide the project name, scope, value and date and the name of the procuring entity. Fully explain the circumstances of the default, failure to complete or deliver the work, or termination. N/A 6. List all litigation or other legal proceedings(including arbitration proceedings), if any, in the last 10 years brought against your firm, or any of the firm's past or present owners, principal shareholders or stockholders, officers, agents or employees, that relates to or arises from a contract similar to this Contract or the work contemplated under this Contract. Provide the style of the lawsuit or proceeding (name of parties and court or tribunal in which filed), nature of the claim, and resolution or current status. N/A By signature below, I certify that the information contained in and/or attached to this Proposal Invitation Questionnaire in response to the above questions is true and correct and that I am authorized by my company to make this certification. MCCi, LLC Comp Name Signature of Authorized Company Official Proposal Forms COMM/SVCS v.12.19.2019 Page 39 of 62 LaOWBoard 0 Cooperative Purchasing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.b.u!yboarcj.corn REQUIRED FORMS CHECKLIST (Please check(v)the following) X❑ Completed: Proposer's Agreement and Signature X❑ Completed: Vendor Contact Information 0 Completed: Felony Conviction Disclosure and Debarment Certification 0 Completed: Resident/Nonresident Certification 0 Completed: No Israel Boycott Certification 0 Completed: No Excluded Nation or Foreign Terrorist Organization Certification 0 Completed: Historically Underutilized Business (HUB) Certification 0 Completed: Construction Related Goods and Services Affirmation 0 Completed: Deviation/Compliance 0 Completed: Location/Authorized Seller Listings 0 Completed: Manufacturer Dealer Designation 0 Completed: Texas Regional Service Designation 0 Completed: State Service Designation 0 Completed: National Purchasing Cooperative Vendor Award Agreement 0 Completed: Federal and State/Purchasing Cooperative Experience 0 Completed: Governmental References 0 Completed: Marketing Strategy 0 Completed: Confidential/Proprietary Information 0 Completed: Vendor Business Name with IRS Form W-9 0 Completed: EDGAR Vendor Certification 0 Completed: Proposal Invitation Questionnaire 0 Completed: Proposal Specifications (Discount (%) off Catalog/Pricelist and/or other required pricing information including Catalogs/Pricelists(or no bid response)must be submitted with proposal response or response will not be considered.) 0 Completed: Required Forms Checklist Proposal Forms COMM/SVCS v.12.19.2019 Page 41 of 62 LaOWBoard 0 Cooperative Purchasing ing 12007 Research Boulevard • Austin,Texas 78759-2439 - PH: 800-695-2919 • FAX: 800-211-5454 •.U.u!yboard.corn PROPOSAL SPECIFICATION SUMMARY The categories and items specified for this Proposal Invitation are summarized below. For full Proposal Specifications, you must review and complete the Proposal Specification information in the electronic proposal submission system in accordance with the Instructions to Proposers ( r, if submitting hard copy Proposal,timely request and complete the Proposal Specification Form in accordance with the Instructions to Proposers). Section I: Cony and Print Services 1. Discount(%) off catalog/pricelist for Black and White Copy and Print Services. 2. Discount(%) off catalog/pricelist for Color Copy and Print Services. 3. Discount(%) off catalog/pricelist for Flyers, Brochures and Postcards(Black and White). 4. Discount(%) off catalog/pricelist for Flyers, Brochures and Postcards(Color). 5. Discount(%) off catalog/pricelist for Banners Signs and Posters (Black and White). 6. Discount(%) off catalog/pricelist for Banners Signs and Posters(Color). 7. Discount(%) off catalog/pricelist for Business Cards and Company Letterheads(Black and White). 8. Discount(%) off catalog/pricelist for Business Cards and Company Letterheads(Color). 9. Discount(%) off catalog/pricelist for Presentations and Manuals (Black and White). 10. Discount (%) off catalog/pricelist for Presentations and Manuals(Color). 11. Discount (%) off catalog/pricelist for Decals,Vehicle and Promotional Magnets(Black and White). 12. Discount (%) off catalog/pricelist for Decals,Vehicle and Promotional Magnets (Color). 13. Discount (%) off catalog/pricelist for Photo Posters and Canvas Prints (Black and White). 14. Discount (%) off catalog/pricelist for Photo Posters and Canvas Prints (Color). 15. Discount (%) off catalog/pricelist for All Types of Business Forms, NCR Forms, and Envelopes. 16. Discount (%) off catalog/pricelist for Copy and Print Finishing Services. 17. Discount (%) off catalog/pricelist for All Other Types of Copy and Print Services. Section II: Graphic Design and Layout Services 18. Hourly Labor Rate for Graphic Design and Layout Services, Not to Exceed hourly labor rate for Graphic/Design and Layout Services. (Hourly Labor Rate is inclusive of proofs to be provided prior to custom work). Section III: Document Management Services 19. Discount (%) off catalog/pricelist for Document Imaging and Data Management Services (comprehensive lifecycle management of documents and digital imaging). 20. Discount (%) off catalog/pricelist for Records Management and Storage Services(secure solutions for offsite records storage). 21. Discount(%) Off Catalog/Pricelist for Document Imaging Software(software for access to imaged information). 22. Discount (%) Off Catalog/Pricelist for Secure Document/Record Shredding Services (compliant document destruction for one-time and periodic shredding onsite or offsite). Section IV: Document Courier Services 23. Discount (%) off catalog/pricelist for Document Courier Services. 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CERTIFICATION F FILING t Nirn,of business eni ty Wirg frrrwro,and the cky,slate wwd country Of the bUswness enfHty s place Certificate Nu w berr: Me , LL.1d Tallahassee, FL United States bete Fde& fvn nc of glcro we=rnwraent aq entity or state aelerra;y that is a party To fire cantrart for�ahucta trt�6rrorrrej-,I, f'`11.t?2rM2.],. boing filed, I he Day of North F"f ia:'W ar d FfWs Date Ackno w iedgp& d Provide fh,e iden6f cawtinn nurnher used by the governmental e ntay or state agency to track or identify the contract,avid provide it descroptucn of ON e services,goods,or anther pruperty to be provided under the contract, L ra t r i,cu:he Content f0aanaaryemeent Services Nature of interest, 1 Name of Interested Party City,Mate,Country(place of business) (check applicable) Caaatr.110 lraterraaawdlrary CPC Ew M d-fatdcl ngs, LLB° EP Segundo, CA t.lr 0ed,fates x 5 Check oWy if there h NO Interested Party. 6 UNSWORN CECLARATtON YJy r1WTu 1:H..._....._Mr1(-)r..D!"urtrj, ......_,._..._._._... _.,...,,.,, _ _..._ _..__...... and rray dale ct'zr4h is Mynaw:kd,essis 717 gglp�!�� b'ar'kway, Suitea. 01..... TaIVa~ad��asseea...._. Flw....._... _32311 USA ®, (rtra,r, t11;ey (wt+:rdCm rrninlrJ) I de rl,arr o.kewder prn akty of perjury that the tnra^yCor rig is tarww<darned a:erne t. w ar:aa tt�l new___....Leort.... ._.. �. ._C n�nty, ,.ante, F Icarid � car,llwe 11 da,y ui;_Febru ry 21. i' Y+'aw r'I / _m ,Sign artwrre of zauthonza ui Tent(it carirtaa(.t 9nad busincss ajnliy Forms provided by Texo�ts Ethics C:araulrleur'nlon tirw�aw ethres twaiie.fxs.us Veis;d�'n V1 l.cefdtl98aa MASTER SERVICES AGREEMENT NO.25516 This Master Services Agreement No.25516("Agreement")is effective conformity with Client's expense policy and greater than five percent on the date of the last signature,("Effective Date")and is made by (5%)of a specific bill,such dispute will be subject to investigation and and between MCCi, LLC, a Florida limited liability company, and its correction; otherwise Client agrees to reimburse MCCi for the full Affiliates with its principal office located at 3717 Apalachee Parkway, amount of expenses billed.The Client acknowledges that it may incur Suite 201,Tallahassee,FL 32311 ("MCCV)and Client(defined herein). expenses due to circumstances such as non-refundable airline tickets, MCCi and Client may each be referred to individually herein as"Party" training/install charges, hotel reservations, rental cars, etc., in the or collectively as the"Parties", event that i)Client cancels or reschedules the event,after MCCi has made these arrangements; or ii) If Client site/team is not prepared The terms "Client" in this Agreement shall also include Client's upon MCCi's arrival,which results in cancellation,delays,and/or the "Affiliates,"defined as a legal entitythat directly or indirectly controls, need to reperform Deliverables. is controlled by, or is under common control with the party. It is agreed that Client's Affiliates shall enjoythe same rights,benefits and Client acknowledges that the price of the license and/or subscription obligations set forth in this Agreement as are applicable to Client. for the use of a third-party licensed product is subject to increases during the term of the license and/or subscription or at the time of The Parties hereto intending to be legally bound hereby, agree as renewal. in the event that MCCi is reselling a license and/or follows: subscription to a third-party product to Client with at least 15 days prior to written notice (an email will be sufficient) of an increase in 1. Scope of Service the price of the license and/or subscription. To the extent that Client MCCi and Client may develop and enter into one or more sales orders, does not agree to pay such increase in the license and/or attached herein or incorporated by reference, incorporating a subscription, Client must provide written notice to MCCi within 15 description of the specific goods and/or services requested by Client days of notice of such increase. Upon receipt of such notice, MCCi (each,and as modified in writing by the Parties,an"Order").MCCi will will cancel Client's license and/or subscription to the third-party provide to Client those goods and/or services described as its licensed product. obligation in the Order (collectively, the "Services"). If applicable, each Order will also describe items specifically required to be 3. Invoicing and Payment delivered by MCCi to Client(the"Deliverables"),and the acceptance Unless otherwise stated in an Order, MCCi will invoice Client for all criteria for each of the Deliverables.Further,each Order will setforth, fees, charges and reimbursable expenses on a monthly basis and among other things,tasks to be performed by the Parties and roles upon completion of each Order. and responsibilities of each Party. Each Order shall specifically identify this Agreement and indicate that it is subject to the terms Client agrees to pay all undisputed invoices and undisputed portions hereof. To the extent there are any conflicts or inconsistencies of a disputed invoice in full within thirty(30) days from the date of between this Agreement and any Order or Client purchase order, each invoice.Failure to pay invoices by the due date,unless MCCi has except in regard to Sections 2 or 3 herein, the provisions of this been informed by said due date that an invoice is being contested Agreement shall govern and control.To the extent that there are any and the reason therefore, may result in the imposition of interest conflicts or inconsistencies between this Agreement and any Client- charges to the extent allowable by law as well as any associated legal entered third party government purchasing agreement("Purchasing and collection fees incurred. Vehicle",the provisions of the Purchasing Vehicle shall govern and control. Client further agrees to pay amounts equal to any federal, state or local sales, use, excise, privilege or other taxes or assessments, No change order, notice, direction, authorization, notification or however designated or levied, relating to any amounts payable by request(collectively,"Change Order")will be binding upon Client or Client to MCCi under this Agreement or any other Agreement MCCi, nor will such Change Order be the basis for any claim for between the Parties,exclusive of taxes based on MCCi's net income additional compensation by MCCi,until Client and MCCi have agreed or net worth,and understands and accepts that any pricing defined in writing to change the terms of an applicable Order,or to execute in an Order does not include such taxes. a new Order,as appropriate. All recurring software maintenance support, subscriptions, and/or 2. Fees other service packages ("Recurring Services") will automatically Client shall pay to MCCi the fees and other compensation set forth in renew and be billed unless Client has terminated the Agreement per each Order. By executing the applicable Order,Client acknowledges Section 4 below or provided sixty(60)days written notice prior to the their pre-approval for any Order Expenses quoted.Unless otherwise scheduled renewal date of the Recurring Services.Once payment has specified, Client will also reimburse MCCi for all reasonable out-of- been received,no refunds for Recurring Services are available. pocket travel,living and other ancillary expenses paid or incurred by MCCi in connection with the Services("Order Expenses").If relevant, 4. Term.Termination.and Cancellation MCC!will follow Client's expense policy,to the best of its ability. If a This Agreement will commence on the Effective Date and will be dispute occurs regarding MCCi's billing of Order Expenses in effective for a one (1)year period and will renew automatically for Last updated: June 25,2020 MCCi MSA Pagel of 8 MASTER SERVICES AGREEMENT NO.25516 one (1) year periods and continue in full force and effect, unless terminated by either Party as set forth below. Termination of this In addition,MCCi shall be responsible for all acts or omissions of its Agreement or any Order hereunder may occur upon any of the Personnel.MCCi will also not discriminate in the referral or hiring of following: MCCi Personnel on the bases of race, religion, sexual orientation, (a) Thirty(30)days after a Party's receipt of written notice from the color, sex, age, national origin, disability that does not affect the other Party that this Agreement or the Services,in whole or in ability for an individual to perform his or her job,or other protected part under an Order,shall be terminated;or categories as required by state,federal,and local laws. (b) Thirty(30)days after one Party notifies the other in writing that they are in breach or default of this Agreement, unless the MCCi may utilize independent subcontractors in satisfying its negligent Party cures such breach or default within such thirty obligations under this Agreement(collectively with MCCi employees (30)day period;or "Personnel"). MCCi affirms to Client that these resources will adhere (c) Fifteen(15)days after the filing of a petition in bankruptcy by to and are subject to the same representations made by MCCi or against either Party, any insolvency of a Party, any throughout this Agreement. appointment of a receiver for such Party,or any assignment for the benefit of such Party's creditors (a"Bankruptcy Event"), Upon receipt of notice from Client that any MCCi Personnel is not unless such Party cures such Bankruptcy Event within the suitable, MCCi shall remove such person from the performance of fifteen(15)day period. Services and will provide a qualified replacement as quickly as possible. In all events, Client shall be liable for full payment for Services and reimbursement of MCCi's expenses incurred through the effective Unless a particular MCCi Personnel member has been identified as a date of termination. If Client cancels or puts on hold an Order key resource to the relevant Order, MCCi at its sole discretion may between completed milestones, MCCi will invoice Client for a pro- reassign, if and as necessary, other appropriately qualified MCCi rated share of the uncompleted milestone(s)for Services performed Personnel to the relevant Order as long as such assignment will not through the date of such termination or delay. affect MCCi's fee for the Services defined or ability to satisfy its Deliverables. 5. Working Arrangements All Services shall be performed remotely,unless otherwise agreed to Neither Party shall be deemed to be a legal representative of the by the Parties. If Services are to be performed on Client's premises, other nor has any authority, either express or implied, to bind or Client shall provide the following to MCCi Personnel:(i)a suitable and obligate the other in any way. adequate work environment, including space for work and equipment for performance of the Services;(ii)access to and use of 7. Non-Solicitation Client's facilities and relevant information, including all necessary Each Party agrees not to directly or indirectly solicit, offer software,hardware and documentation;(iii)timely assistance in the employment to, or accept any services outside of this Agreement acquisition of, or correction of any hardware or software problems from any employee or independent contractor of the other Party who that would affect the performance of Services; and (iv) any other provided services for the non-soliciting Party within the previous items set forth in each Order. twelve(12)months,during the term of this Agreement,and for twelve (12) months thereafter.Notwithstanding the foregoing, either Party Client will ensure that all Client's personnel, vendors, and/or may solicit for employment,offer employment to,employ,or engage subcontractors who may be necessary or appropriate for the as a consultant or advisor,any of the other Party's personnel who:(i) successful performance of the Services will,on reasonable notice:(i) had no previous direct contact with the soliciting Party's personnel in be available to assist MCCi Personnel by answering business, connection with, and during the performance of, the Services technical and operational questions and providing requested hereunder, or (ii) have responded to a general, publicly-available documents, guidelines and procedures in a timely manner; (ii) advertisement for employment at such Party(including its affiliates). participate in the Services as reasonably necessary for performance under an Order; and (iii) be available to assist MCCi with any other 8. Confidential Information activities or tasks required to complete the Services in accordance The Parties acknowledge that in the course of MCCi providing with the Order. Services for Client hereunder, each may receive Confidential Information (as defined below) of the other Party. Any and all 6. MCCi Personnel Confidential Information in any form or media obtained by a Neither MCCi nor its Personnel are or shall be deemed to be Recipient shall be held in confidence and shall not be copied, employees of Client but rather as independent contractors. MCCi reproduced,or disclosed to third parties for any purpose whatsoever shall be responsible for the compensation of its Personnel, in except as necessary in connection with the Services provided under addition to any applicable employment taxes, workmen's this Agreement.The Recipient further acknowledges that it shall not compensation and any other taxes, insurance or provisions use such Confidential Information for any purposes other than in associated with the employment of such personnel. connection with the activities contemplated by this Agreement.All Last updated: June 25,2020 MM MSA Page 2 of 8 MASTER SERVICES AGREEMENT NO.25516 consultants assigned by MCCi to Client will sign appropriate forms of proprietary code(source and object),which is subject to third-party confidentiality agreements on or prior to their start date. license agreements with MCCi;(ii)those portions of the Deliverables which include information in the public domain or which are generic "Confidential Information" means any and all confidential ideas, concepts, know-how and techniques within the computer information of a Party disclosed to the other Party,including,but not design, support and consulting business generally; and (iii) those limited to, research, development, proprietary software, technical portions of the Deliverables which contain the computer consulting information, techniques, know-how, trade secrets, processes, knowledge, techniques, tools, routines and sub-routines, utilities, customers,employees,consultants,pricing information and financial know-how,methodologies and information which MCCi had prior to and business information, plans and systems. Confidential or acquired during the performance of its Services for Client and Information shall not include information which:(i)was known to the which do not contain any Confidential Information (as hereinafter Party receiving the information(the"Recipient")prior to the time of defined)of Client conveyed to MCCi.To the extent that any portion disclosure by the other Party(the"Disclosing Party");(ii)at the time of the Deliverables includes information or material that falls within of disclosure is generally available to the public or after disclosure the exceptions to property of Client described in Subsection (iii) becomes generally available to the public through no breach of above,MCCi shall be deemed to have granted Client a paid up,world- agreement or other wrongful act by the Recipient; (iii)was lawfully wide, non-exclusive license to use any such information or material received by Recipient from a third party without any obligation of imbedded in the Deliverables for its internal business needs and a confidentiality;or(iv)is required to be disclosed by law or order of a non-exclusive license to make copies thereof for use only in its and court of competent jurisdiction or regulatory authority. its affiliates'facilities,subject to third party license agreements,if any. Should MCCi, in performing any Services hereunder, use any The obligations set forth in this Section shall survive termination of computer program, code or other materials developed by it this Agreement for a period of three(3)years thereafter. independently of the Services provided hereunder ("Pre-existing Work"),MCCi shall retain any and all rights in such Pre-existing Work. 9. Intellectual Property MCCi hereby grants Client a paid up, world-wide, non-exclusive Unless otherwise specified in any Order, title to all materials, license to use and reproduce the Pre-existing Work for its internal products and/or Deliverables, including, but not limited to, reports, business needs. designs, programs, specifications, documentation, manuals, visual aids, and any other materials developed and/or prepared for Client Client understands and agrees that MCCi may perform similar by MCCi under any Order(whether or not such Order is completed) services for third Parties using the same personnel that MCCi may ("Works"), and all interest therein shall vest in Client and shall be use for rendering Services for Client hereunder, subject to MCCi's deemed to be a work made for hire and made in the course of the obligations respecting Client's Confidential Information pursuant to Services rendered hereunder. MCCi shall retain a non-exclusive, Section 8. royalty-free, world-wide, perpetual license to use, sell, modify, distribute and create derivative works based upon any of the 10. Data Privacy foregoing Works in its information technology professional services In the event that MCCi, in the course of providing Services to Client, business,provided that in so doing MCCi shall not use or disclose any receives, stores, maintains, processes or otherwise has access to Client Confidential Information or Deliverables unique to or owned "Personal Information" (as defined by the State Data Protection by Client. To the extent that title to any such Works may not, by Laws and/or European Union Directives, and including, but not operation of law,vest in Client or such Works may not be considered limited to,an individual's name and social security number,driver's works made for hire,all rights,title and interest therein are hereby license number or financial number)then MCCi shall safeguard this irrevocably assigned to Client.All such Works shall belong exclusively information in accordance with these laws. MCCi may disclose to Client, except as set forth herein, with Client having the right to Personal Information for business purposes only on a need-to-know obtain and to hold in its own name,copyrights,registrations or such basis and only with (i) MCCi Personnel, (ii) any third party service other protection as may be appropriate to the subject matter,and providers that has agreed to safeguard Personal Data in a like any extensions and renewals thereof.MCCi agrees to give Client and manner as MCCi safeguards such information, and (iii) with other any person designated by Client, reasonable assistance, at Client's entities authorized to have access to such information under expense, required to perfect the rights defined in this Section 9. applicable law or regulation.MCCi may disclose Personal Data when Unless otherwise requested by Client, upon the completion of the necessary to protect its rights and property,to enforce its terms of Services to be performed under each Order or upon the earlier use and legal agreements,as required or permitted by law,or at the termination of such Order,MCCi shall immediately turn overto Client request of law enforcement authorities and the courts,and pursuant all Works and Deliverables developed pursuant to such Order, to a subpoena. MCCi shall have no duty to notify Client of such including,but not limited to,working papers,narrative descriptions, compliance with law. MCCi takes reasonable and appropriate reports and data. measures to maintain the confidentiality and security of Personal Data and to prevent its unauthorized use or disclosure. To the extent Notwithstanding the foregoing,the following shall not constitute the that MCCi experiences a Security Breach as defined under the State property of Client:(i)MCCi software,including but not limited to any Data Protection Laws for information generated in connection with Last updated:June 25,2020 MCCi MSA Page 3 of 8 MASTER SERVICES AGREEMENT NO.25516 this Agreement or any Order hereto, MCCI shall notify Client in WHETHER SUCH REPRESENTATION OR WARRANTY BE EXPRESS OR writing immediately,as soon as possible,but not later than three(3) IMPLIED. INCLUDING ANY WARRANTY OF MERCHANTABILITY, business days of discovering such Security Breach. QUALITY, OR FITNESS FOR A PARTICULAR PURPOSE OR ANY REPRESENTATION OR WARRANTY FROM COURSE OF DEALING OR 11. Warranty USAGE OF TRADE. (a) Services Warranty. In the event that Client asserts any claim for warranty services MCCi warrants that all Services shall be performed by personnel with hereunder and such claim relates to any matter that is mutually relevant skill sets and familiar with the subject matter for the Order determined by the Parties not to be MCCi's responsibility hereunder in a professional, competent and workman-like manner that meets (including any problem with Client's computer hardware or software industry standards. that was not caused by any Services performed by MCCi),Client shall pay MCCi for all costs incurred for all evaluation,correction or other MCCi's delivery of a Deliverable to Client shall constitute a services performed by MCCi relating to such claim on a time and representation by MCCI that it has conducted a review of the materials basis at MCCi's then standard billing rates. Deliverable and believes it meets the written specifications set forth in the corresponding Order. Client shall then have the right to (b) General Warranty. conduct any review of the Deliverable as Clientshall deem necessary MCCI shall perform the Services in compliance with all applicable or desirable. If Client, in its reasonable discretion, determines that international, federal and state laws and regulations and industry any submitted Deliverable does not meet the agreed upon codes,including but not limited to(i)federal and state anti-kickback specifications, Client shall have ten (10) business days after MCCi's laws and regulations and laws governing payments to and submission to give written notice to MCCi specifying the deficiencies relationships with healthcare professionals, including 42 U.S.C. in reasonable detail. MCCI shall use reasonable efforts to promptly §1320a-7b(b); (ii) federal Food and Drug Administration laws, cure any such deficiencies. After completing any such cure, MCCi regulations and guidance, including the federal Food, Drug and shall resubmit the Deliverable for review as set forth above. Cosmetic Act and the Prescription Drug MarketingAct,(iii)federal and Notwithstanding the foregoing,if Client fails to reject any Deliverable state securities laws,meaning that MCCi agrees that Client may be a within ten (10) business days, such Deliverable shall be deemed publiclytraded company and MCCI shall instruct MCCi Personnel that accepted. federal and state securities laws prohibit the purchase, sale, or pledge of Client stock while in possession of any material,non-public MCCi does not warrant that the Services or Deliverables will be information, (iv)the Foreign Corrupt Practices Act of 1977, and the uninterrupted or error-free, provided that MCCi shall remain UK Bribery Act,the 1997 OECD Convention on Combating Bribery of obligated pursuant to this Section 11. If the Services fail to conform Foreign Public Officials in International Business Transactions, and to the foregoing warranty in any material respect, Client's initial (v)international,federal and state privacy and data protection laws, remedy will be for MCCi,at its expense,to promptly use commercially including,but not limited to,the relevant European Union directives, reasonable efforts to cure or correct such failure.Upon failure of the Health Insurance Portability and Accountability Act of 1996 and the foregoing,Client's remedies,and MCCi's entire liability,as a result of Health Information Technology for Economic and Clinical Health Act, such failure,shall be subject to the limitations set forth in Section 12 Chapter 93H of The Massachusetts General Laws and its below. The foregoing warranty is expressly conditioned upon (i) implementing regulations, 201 CMR 17.00, and Cal. Civ. Code § Client providing MCCi with prompt written notice of any claim 1798.80-.84(collectively,"State Data Protection Laws"). thereunder prior to the expiration thereof,which notice must identify with particularity the non-conformity;(ii)Clients full cooperation with 12. Indemnification and Limitation of Liability MCCi in all reasonable respects relating thereto,including,in the case of modified software, assisting MCCI to locate and reproduce the (a) Mutual Indemnification. non-conformity;and(iii)with respect to any Deliverable,the absence of any alteration or other modification of such Deliverable by any (i)MCCI(for purposes of this Section 12,"Indemnifying Party")shall person or entity other than MCCI.The Parties acknowledge and agree indemnify,defend and hold Client harmless against any loss,damage that this Agreement relates solely to the performance of services(not or costs (including reasonable attorneys' fees) in connection with the sale of goods) and, accordingly, will not be governed by the third party claims,demands,suits,or proceedings("Claims"): Uniform Commercial Code of any State havingjurisdiction. MCCi also For bodily injury or personal property damage arising out of does not warrant any third-party products procured on behalf of MCCli's performance within the scope of its responsibilities Client, and if there are any product warranties provided by the under this Agreement. manufacturer of the product, any remedy should be requested A breach of MCCI's obligations with respect to confidentiality • Caused by negligent acts, omissions or willful misconduct of directly from manufacturer. the Indemnifying Party. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 11, MCCI DOES NOT MAKE OR GIVE ANY REPRESENTATION OR WARRANTY. Last updated: June 25,2020 MCCI MSA Page 4 of 8 MASTER SERVICES AGREEMENT NO. 25516 (ii)To the extent permitted by law,and subject to Section 12(f)herein, lost revenues,profits,savings or business)or loss of records or data, Client(for purposes of this Section 12,"Indemnifying Party")shall whether or not the possibility of such damages has been disclosed to indemnify and hold MCC]harmless against any loss,damage or costs such Party in advance or could have been reasonably foreseen by (including reasonable attorneys'fees that are necessary and just and such Party, and whether in an action based on contract,warranty, awarded by a court of competent jurisdiction) in connection with strict liability, tort (including, without limitation, negligence) or third party claims,demands,suits,or proceedings("Claims"): otherwise.Except for a Party's indemnification obligations,or except • For bodily injury or personal property damage arising out of in the event of loss or damage caused by gross negligence or Client's performance within the scope of its responsibilities intentional misconduct,each Party's maximum aggregate liability for under this Agreement, all claims, losses or other liability arising out of,or connected with, • A breach of Client's obligations with respect to confidentiality this Agreement,the Services contemplated hereunder or Client's use • Caused by negligent acts, omissions or willful misconduct of of any such Services or Deliverables, and whether based upon the Indemnifying Party. contract,warranty, strict liability,tort(including,without limitation, negligence), or otherwise, shall in no case exceed the aggregate (b) MCCi Indemnification. amounts paid to MCCi by Client under the applicable Order, giving MCCi shall defend, indemnify and hold Client harmless against rise to such claim during the last twelve (12) months. Each Party's Claims made or brought against Client by a third party alleging that entire liability and Client's remedies under this Agreement shall be the use of any Deliverable as provided to Client under this Agreement subject to the limitations contained in this Section 12.The limitations or any Order hereto and used in accordance with this Agreement and on warranty and liability specified in Sections 11 and 12 hereof will relevant documentation, infringes any third party's intellectual survive and apply even if any limited remedy herein is found to have property rights. Notwithstanding the foregoing, MCCi shall not be failed of its essential purpose. required to indemnify Client to the extent the alleged infringement: (x)is based on information or requirements furnished by Client,(y)is The Parties acknowledge that the limitation of warranties and the result of a modification made by a party other than MCCi,or(z) liabilities as set out in this Agreement are an essential basis of this arises from use of a Deliverable in combination with any other Agreement and that the prices agreed to be paid by Client for product or service not provided by MCCL If Client is enjoined from Services reflect these limitations. using the Deliverable or MCCi reasonably believes that Client will be enjoined, MCCi shall have the right, at its sole option,to obtain for (f1 Client Indemnification. Client the right to continue use of the Deliverable or to replace or Notwithstanding any of the foregoing in this Section 12, in no event modify the Deliverable so that it is no longer infringing. If neither of shall Client be required to create a sinking fund to satisfy any the foregoing options is reasonably available to MCCi, then this obligation to indemnify MCCi under this Agreement.This provision Agreement may be terminated at either Party's option and MCCi's shall survive termination of this Agreement. sole liability shall be subject to the limitation of liability provided in this Section. 13. Insurance (c) Client Warranties. During the term of this Agreement, MCCi shall carry, at its sole If the Services require MCCi to access or use any third party products expense,insurance coverage to include at a minimum the following: provided or used by Client,Client warrants that it shall have all rights workers Compensation: State statutory limits and $1,000,000 and licenses of third Parties necessary or appropriate for MCCi to employers'liability access or use such third party products and agrees to produce Comprehensive General Liability: $2,000,000 per occurrence evidence of such rights and licenses upon the reasonable request of and$4,000,000 in the aggregate MCCi and to the extent permitted by law, indemnify, hold harmless Professional Liability: $1,000,000 per occurrence and and defend MCCi from and against any Claims to the extent arising $3,000,000 in the aggregate from MCCVs access to or use of such third party products. Errors and Omissions:$1,000,000 per occurrence • Cyber and Technical Errors and Omissions: $3,000,000 in the (d) Indemnification Procedure. aggregate Each indemnified Party shall give the indemnifying Party(a)prompt written notice of the Claim; (b) sole control of the defense and 14. Notices settlement of the Claim (provided that the indemnifying Party may All notices, demands and other communications required or not settle any Claim unless it unconditionally releases the permitted hereunder or in connection herewith shall be in writing indemnified Party of all liability);and(c)at indemnifying Party's cost, and shall be deemed to have been duly given if delivered(including all reasonable assistance. by receipt verified electronic transmission) or mailed in the Continental United States by first class mail, postage prepaid, to a (e) Limitation of Liability. Party at the following address,or to such other address as such Party In no event shall either Party be liable for special, exemplary, may hereafter specify by notice: incidental, or consequential damages(including,without limitation, Last updated: June 25,2020 MCCi MSA Page 5 of 8 MASTER SERVICES AGREEMENT NO.25516 If to MCCi If to Client: With reasonable notice and at a convenient location,Client will have MCCi,LLC City of North Richland Hills the right to audit MCCi's records to verify MCCi's records to confirm 3717 Apalachee Parkway,Suite 201 4301 City Point Drive MCCVs billing to Client is correct. Tallahassee,FL 32311 North Richland Hills,TX 76180 Attn:Legal Department Attn:City Manager In addition,should any of Client's regulators legally require access to Email:legalCo)mccinnovations.com Email:mhindman@nrhtx.com audit the Services, MCCi will,to the extent legally required by such regulators, provide access for the same. All results of such audits shall be MCCi Confidential Information. is. Miscellaneous Client shall bear all reasonable costs associated with audits. (a) 3rd Party EULA Provisions. Client acknowledges that they are responsible for adhering to any 3.d (g) Assignment. party End User License Agreements ("EULA"),whether supplied by Neither Party may assign or otherwise transfer any of its rights, MCO as a convenience or not,for any products procured on behalf duties or obligations under this Agreement without the priorwritten of Client by MCCL consent of the other Party. Either Party, however, without any requirement for prior consent by the other, may assign this (b) Use of Open Source Code. Agreement and its rights hereunder to any Party or entity who Except as disclosed in the Order, MCCi does not distribute nor succeeds(by purchase,merger,operation of law or otherwise)to all otherwise use any open source or similar software in a manner that or substantially all of the capital stock, assets or business of such would obligate MCCi to disclose,license,make available or distribute any of its material proprietary source code as a condition of such Party, if the succeeding party or entity agrees in writing to assume use. For purposes of this Agreement,"Open Source"shall mean any and be bound by all of the obligations of such Party under this software or other Intellectual Property that is distributed or made Agreement.This Agreement shall be binding upon and accrue to the available as"open source software"or"free software"or is otherwise benefit of the Parties hereto and their respective successors and publicly distributed or made generally available in source code or permitted assignees. equivalent form under terms that permit modification and redistribution of such software or Intellectual Property.Open Source (h) Modification. Materials includes software that is licensed under the GNU General This Agreement may be modified only by a written amendment Public License, GNU Lesser General Public License, Mozilla License, executed by duly authorized officers or representatives of both Common Public License,Apache License or BSD License,as well as all Parties. other similar"public"licenses. (i) Provisions Severable. (c) Client Software Customizations. If any provision in this Agreement is held by a court of competent Client may choose to customize their software internally without jurisdiction to be invalid,void,or unenforceable,then such provision MCCi's help. MCCi is not responsible for any damages caused by shall be severed from this Agreement and the remaining provisions Client's customization of the software. MCCi will not be held responsible for correcting any problems that may occur from these will continue in full force. customizations. Q) Dispute Resolution. (d) MCCi Software Configuration Services. Should a dispute arise between MCCi and Client involving their Client may elect to contract with MCCi to configure Client's respective responsibilities, limitations or the working relations software.In these situations, Client acknowledges they are between the Parties under this Agreement or any Order,then the responsible for testing all software configurations and as such, Parties will make every effort to amicably resolve the dispute. Prior waives any and all liability to MCCi for any damages that could be to entering arbitration as set forth below,the Parties agree that any related to these software configurations, dispute will initially be referred to their senior management for resolution within ten(10)business days of receipt of notice specifying (e) Force Majeure. and asking for the intervention of the Parties'superiors.If the dispute If either of the Parties hereto are delayed or prevented from fulfilling is still unresolved after such ten(10)business day period,the Parties any of its obligations under this Agreement by force majeure, said agree,at the written request of either Party,to submit the dispute to Parties shall not be liable under this Agreement for said delay or a single arbitrator who shall be agreed upon by the parties, for failure. "Force Majeure" means any cause beyond the reasonable resolution by binding arbitration under the rules of the American control of a Party including,but not limited to,an act of God,an act Arbitration Association,and that any award of the arbitrator shall be or omission of civil or military authorities of a state or nation, enforceable under any court having jurisdiction thereof. In any such epidemic, pandemic, fire, strike, flood, riot, war, delay of action,the Parties will bear their own costs,including attorney's fess, transportation, or inability due to the aforementioned causes to and will share equally in the costs and fees assessed by the American obtain necessary labor,materials or facilities. Arbitration Association for its services. (f) Audit Rights. (k) Interpretation. Last updated:June 25,2020 MCCi MSA Page 6 of 8 MASTER SERVICES AGREEMENT NO. 25516 The descriptive headings of this Agreement and of any Order under this Agreement are for convenience only and shall not affect the (m) Entire Agreement. construction or interpretation of this Agreement. As used herein, This Agreement and all Order(s) attached hereto constitute the "include" and its derivatives (including, "e.g.") shall be deemed to complete and exclusive statement of the agreement between the mean"including but not limited to." Each Party acknowledges that Parties and supersedes all proposals, oral or written, and all other this Agreement has been the subject of active and complete prior or contemporaneous communications between the Parties negotiations, and that this Agreement should not be construed in relating to the subject matter herein. favor of or against any Party by reason of the extent to which any Party or its professional advisers participated in the preparation of (n) Counterparts. this Agreement. This Agreement may be executed in several counterparts, each of which will be deemed an original,and all of which taken together will (1) Publicity. constitute one single agreement between the Parties with the same MCCi may use the name of Client,the existence of this Agreement effect as if all the signatures were upon the same instrument. and the nature of the associated services provided herein for marketing purposes,except that such use shall not include any Client (Remainder of Page Intentionally Left Blank;Signature Page Follows) Confidential Information as defined in Section 8 of this Agreement. Last updated:June 25,2020 MCCi MSA Page 7 of 8 MASTER SERVICES AGREEMENT NO.25516 IN WITNESS WHEREOF,the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of the Effective Date. MCC!,LLC CITY OF NORTH RICHLAND HILLS("Client") E-SIGJV�D o Barstow Signed: on 20 �07 GMT Signed: Name: Donny Barstow Name:Mark Hindman Title: President & CEO Title: City Manager February 25, 2021 Date: Date: 4301 CITY POINT DRIVE NORTH RICHLAND HILLS,TX 76180 ATTEST: BY: Alicia Richardson,City Secretary/ Chief Governance Officer APPROVED TO FORM AND LEGALITY: By: Maleshia McGinnis,City Attorney Last updated: June 25,2020 MCCi MSA Page 8 of 8 IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Consider Resolution No. 2021-016, Authorizing submission of the application and acceptance of allocated funds if awarded for the Texas Governor's Office Homeland Security Division FY2022 North Texas Anti-Gang Center, Grant #2848907 PRESENTER: Jimmy Perdue, Director of Public Safety SUMMARY: The City is currently the fiduciary agent for a grant to fund the North Texas Anti-Gang Center (TAG Center). The North Richland Hills Police Department, in cooperation with law enforcement agencies across the area, supports the TAG Center in its mission to combat gang violence through the coordination of gang prevention, intervention, and suppression activities. State grant funding is available through the Governor's Office to continue this project and the funds must be disbursed to a governmental entity. The Governor's Office has contacted the City of North Richland Hills to continue as the fiduciary and sponsoring agency for the grant. GENERAL DESCRIPTION: The investigative units participating in the TAG Center are the Texas DPS Investigative Unit, the U.S. Homeland Security Investigators Gang Squad, the ATF's Violent Crime Squad and Intelligence Unit, and the FBI's Gang Unit, as well as local municipal and county agencies. The units have access to the High Intensity Drug Trafficking Area's regional support center located in North Texas. The Governor's Office contacted the City of North Richland Hills to serve as the fiduciary and sponsoring agency for this grant. This grant application is a continuation of the program to cover the TAG Center's annual operations budget for FY 2021/2022. As grantee, the City will coordinate and manage the grant, to include payment and reimbursement of expenditures generated by the TAG Center and its contracted on-site project manager and staff. For fiduciary services, the City will receive (assuming 100% of the grant is approved and expended) a maximum amount of $52,966.40 as an administrative fee for time and resources dedicated to the grant, representing 10% of Modified Total Direct Costs in the grant application. The grant application requests $963,435.35 to continue the program through August 2022. RECOMMENDATION: Approve Resolution No. 2021-016. RESOLUTION NO. 2021-016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS TO AUTHORIZE THE APPLICATION AND ACCEPTANCE OF ALLOCATED FUNDS IF AWARDED FOR THE TEXAS GOVERNOR'S HOMELAND SECURITY DIVISION FY2022 NORTH TEXAS ANTI-GANG CENTER, GRANT #2848907 SERVING AS THE FIDUCIARY AND SPONSORING AGENCY WHEREAS, The City of North Richland Hills, Texas possesses legal authority to apply and make appointments for the conduct of business relative to the Governor's Office Homeland Security Division (HSD) FY2022 North Texas Anti-Gang Center, Grant #2848907; and WHEREAS, The law enforcement agencies in the North Texas region desire to continue the North Texas Anti-Gang Center in its mission to combat gang violence in the Metroplex and surrounding areas through the coordination of gang prevention, intervention, and suppression activities; and WHEREAS, The City of North Richland Hills, as grantee, will coordinate and manage the grant, to include payment and reimbursement of expenditures necessary to continue the multi-agency North Texas Anti-Gang Center in operational status, and will receive 10% of Modified Total Direct Costs as an administrative fee for such services; and, WHEREAS, The City Council of North Richland Hills finds it in the best interest of the citizens of North Richland Hills that we request the funds available under this Program and to serve as a fiduciary and sponsoring agency for the grant; and, NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: SECTION 1. The City Council of the City of North Richland Hills hereby finds that the recitals set forth above are true and correct and are incorporated into this Resolution as if written herein. SECTION 2. The City Council of the City of North Richland Hills hereby authorizes and approves the submission of the application and acceptance if awarded for the Texas Governor's HSD FY2022 North Texas Anti-Gang Center Program Grant #2848907. SECTION 3. The City Council of the City of North Richland Hills designates Public Safety Director Jimmy Perdue as the grantee's authorized official, with the power to apply for, accept, reject, alter or terminate the funding request on behalf of the applicant agency. Resolution No. 2021-016 Page 1 of 2 SECTION 4. The City Council of North Richland Hills agrees that the loss or misuse of HSD funds or failure to comply with all HSD award requirements may result in suspension or termination of award funds, the repayment of award funds, and/or other remedies available by law. SECTION 5. That this Resolution shall take effect and be in full force and effect from and after the date of its adoption, and it is so resolved; and all Resolutions of the City Council of the City in conflict herewith are hereby amended or repealed to the extent of such conflict. PASSED AND APPROVED on this 8t" day of March, 2021. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson City Secretary/Chief Governance Officer APPROVED AS TO FORM AND LEGALITY: Maleshia B. McGinnis, City Attorney APPROVED AS TO CONTENT: Jimmy Perdue, Public Safety Director Resolution No. 2021-016 Page 2 of 2 IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Consider award of RFB No. 21-008 to Insituform Technologies, LLC, for construction of the Big Fossil 24" Interceptor Project (UT2004) in the amount of$737,815.50, and authorize the City Manager to execute the agreement. PRESENTER: Caroline Waggoner, Director of Public Works SUMMARY: The City Council is being asked to award a construction contract for the Big Fossil 24" Interceptor Project (UT2004). GENERAL DESCRIPTION: A bid opening was conducted for the Big Fossil 24" Interceptor Project on February 5, 2021. The project was approved as part of the FY 2019/2020 Capital Improvements Budget. The purpose of the project is to rehabilitate approximately 2,400 feet of sanitary sewer main in the vicinity of Fossil Creek Park. The sewer project will be constructed almost entirely using trenchless technology. This will mean very little surface disturbance over the existing main, with the work taking place at the manholes. The existing deteriorated concrete pipe will be left in place and lined using Cast in Place Pipe (CIPP), which is a type of in-situ rehabilitation in which a flexible liner (a felt or fiber sleeve) is infused with thermosetting resins and inserted into an existing pipe. The flexible liner can be installed via winch or in several different inverted methods depending on the application. Once in place, the liner is inflated until it fits snugly into the host pipe. The thermosetting resin in the liner is then activated by hot water or steam, after which, it is allowed to cure and fully harden before the pipe is put back into service. CIPP is one of the most popular in-situ rehabilitation methods because it can be inserted via already existing manholes with no extra excavation required. This project will include a short stretch of open-cut pipe replacement in the vicinity of Onyx Drive South. This is required as this pipe section is not a good candidate for CIPP based on its poor condition. IrLp NOKTH KICHLAN HILLS Notice of the city's intent to bid was advertised in local newspapers, as required by state statute, and posted on the city's website. Bid specifications were viewed on the city's website by multiple entities. However, the project only received one bid. Staff had hoped for more bids on the project, but it is not uncommon for specialized projects like this to have a limited response. The project specifications stipulated that eligible firms have recent large-diameter CIPP experience in an effort to avoid ill-equipped contractors. A decision was made to open the single bid due to the specialized nature of the project, the experience / qualifications of the single contractor, and the need to get the project completed as soon as possible. The single bid came in approximately $260,000 under the project construction budget. Insituform Technologies, LLC specializes in pipeline rehabilitation, with multiple active projects of similar type and scale throughout Texas, including the cities of Denton, Dallas, Mesquite, Austin, Wichita Falls and others. They have successfully installed tens of thousands of linear feet of CIPP in recent years, including pipe diameters as large as 60". Construction is anticipated to begin in spring 2021 and is anticipated to take six months to complete. The project contract includes two interim performance milestones, and liquidated damages of $744 per day for each day beyond 180 days the project is not completed. The calculation for liquidated damages is based on projections of actual damages the City would likely incur for this project in the event the Contractor fails to complete the project on time. Funding for the project is included in the FY 2020-21 Adopted Capital Budget. RECOMMENDATION: Award RFB Bid No. 21-008 to Insituform Technologies, LLC., for construction of the Big Fossil 24" Interceptor Project (UT2004) in the amount of$737,815.50, and authorize the City Manager to execute the agreement. � « 4-a u , @ ` 'O L- \ O CL @ i O (D 0 c � O § Ll Mo ! \ } � \ � e STANDARD FORM OF CONSTRUCTION AGREEMENT THE STATE OF TEXAS § COUNTY OF TARRANT § THIS AGREEMENT is entered into this the day of 20_, by and between the CITY NORTH RICHLAND HILLLS, a municipal corporation, of the County of Tarrant and State of Texas, with its principal place of business located at 4301 City Point Drive, North Richland Hills, Texas 76180, hereinafter called "OWNER" and , County of and State of with its principal place of business located at hereinafter called "CONTRACTOR." OWNER and CONTRACTOR in consideration of the mutual covenants contained in this Agreement, agree as follows: ARTICLE 1. WORK. CONTRACTOR covenants and agrees to perform the Work in every detail, in a good and first-class workmanlike manner as specified and indicated in the Contract Documents, of which are incorporated in this Agreement in their entirety as if they were herein set out at length written word for word. The CONTRACTOR shall furnish all labor, materials, tools and equipment required to perform and complete the Work in strict accordance with these Contract Documents. The Work is described as follows: BIG FOSSIL 24" INTERCEPTOR PROJECT ARTICLE 2. CONTRACT PRICE. OWNER agrees to pay CONTRACTOR for completion of the Work in accordance with the Contract Documents, the price or prices shown in the bidder's proposal, which total the following amount: DOLLARS AND CENTS ($ ) ("Contract Price"). ARTICLE 3. CONTRACT TIME / TERMINATION / LIQUIDATED DAMAGES. II - 1 Construction Agreement Unless otherwise stated in this agreement, time shall be considered of the essence. a. When time is of the essence, the CONTRACTOR shall be liable for failure to deliver or delay in delivery occasioned by and including without limitation strikes, lock-outs, inability of obtaining material or shopping space, breakdowns, delays of carriers or suppliers, and preexisting governmental acts and regulations of the Federal and State governments or any subdivision thereof, unless such governmental acts and regulations affecting delivery could not be found, recognized, or discovered by due diligence on the part of the CONTRACTOR prior to submission of his/her bid and City Council's acceptance thereof. b. When time is not of the essence, this agreement shall be inoperative during such period of time that aforesaid delivery or acceptance may be rendered impossible by reason of fire, strike, Acts of God, or government regulation. Provided, however, to the extent that the CONTRACTOR has any commercially reasonable alternative method of performing this contract by purchase on the market or otherwise, he/she shall not be freed of his/her obligation hereunder by this clause, even though the goods intended for this contract were destroyed or their delivery delayed because of any event described above. c. As time is of the essence on this contract, CONTRACTOR agrees to commence work under this contract within ten (10) days from the date specified in the "Notice to Proceed" and to totally complete work within 180 consecutive calendar days after the date specified in the "Notice to Proceed," subject to such extensions of time as are indicated in the Special Provisions. d. Milestones included in this contract are as follows: 1) When 50% of the contract time has elapsed, 30% or greater quantity of the total sum of Line Items 6 and 7 have been completed. 2) When 75% of the contract time has elapsed, 50% or greater quantity of the total sum of Line Items 6 and 7 have been completed. Calendar Days is defined as any day of the week or month; no days being excepted, such as, Saturdays, Sundays, holidays and inclement weather days. Counting of contract time will only be stopped when the Owner issues a written notice stating this fact, or when the project is noted as substantially complete by written notice from the Owner. OWNER shall determine when such action is necessary. Extensions of time due to weather delays shall be determined in accordance with the following formula: E = R- P where R is greater than or equal to P, and II - 2 Construction Agreement E = Extra Precipitation Days P = Average Precipitation Days R = Total Precipitation Days Average Precipitation Days (P) is defined as a day of rain, sleet, hail, snow or any combination thereof, and shall be based upon the average precipitation for each month of the year as defined in the Local Climatological Data summaries issued by the National Climatic Data Center in Asheville, North Carolina, and for this contract shall be as follows: Average Precipitation Month Jan Feb Mar Apr May June Number of Days 6 6 7 7 8 6 Month July Aug Sept Oct Nov Dec Number of Days 4 4 6 6 6 6 Partial months shall be prorated uniformly for the entire month and the sum of all the months used will be rounded to the nearest whole number. This number shall be P. Total Precipitation Days (R) is defined as a day of rain, sleet, hail, snow or any combination thereof, if determined by the Owner's Project Representative that the Contractor's construction cannot progress substantially due to precipitation and thus be put in the Daily Inspection Logs as a precipitation day. The sum of all precipitation says shall be R. The total number of Extra Precipitation Days (E) shall be granted to the Contractor as extension of time due to weather delays, and no additional time due to drying time for saturated soil will be allowed. This contract time is both multi-tiered and cumulative. e. Liquidated Damages. The CONTRACTOR further agrees to pay the following as liquidated damages- (1) $744 per Calendar Day for any unfinished work beyond 180 consecutive calendar days after the "Phase I Notice to Proceed" issuance date. This rate shall continue until such time that the Project is complete and accepted by the OWNER (2) It is understood between the parties hereto that these sums shall be treated II - 3 Construction Agreement as liquidated damages and not as a penalty, and the OWNER may withhold from the CONTRACTOR's compensation such sums as liquidated damages. The parties consider the CONTRACTOR's failure to complete performance of the entire contract within the 180t" calendar day after the "Phase I Notice to Proceed" date a substantial breach of this agreement, and the amount of liquidated damages set forth herein is a reasonable and fair estimate of just compensation for CONTRACTOR's failure to timely perform the contract. If there is any conflict between any provision of this Article 3, and any other Provision in this agreement, or in any attachment hereto or any other Contract Document, this Article 3 shall control. ARTICLE 4. PARTIAL PAYMENT. OWNER shall make payments to the CONTRACTOR in the following manner. On or about the first of each month, the OWNER, or the OWNER's Authorized Representative, will make accurate estimates of the value, based on contract prices, of the work done and materials incorporated in the work and of materials suitably stored at the site during the preceding calendar month. The CONTRACTOR shall furnish to the OWNER, or the OWNER's Representative, such detailed information as the OWNER may request to aid OWNER as a guide in the preparation of the monthly estimate. Within the following thirty (30) days, OWNER shall make partial payments to the CONTRACTOR for work performed during the preceding calendar month as estimated by the OWNER or OWNER's Representative. Ten percent (10%) of each estimate shall be retained by the OWNER until final completion and acceptance of all work covered by the Contract for contracts less than four hundred thousand dollars ($400,000). Five percent(5%) of each estimate shall be retained by the OWNER until final completion and acceptance of all work covered by the Contract for contracts greater than four hundred thousand dollars ($400,000). Upon completion and acceptance of all work in compliance with the Contract, the OWNER shall, within thirty (30) days, pay the CONTRACTOR the balance due under the terms and conditions of the Contract. It is understood that the monthly estimates shall be approximate only, and all monthly estimates and partial payments shall be subject to correction in the estimate rendered following the discovery of an error in any previous estimate, and such estimate shall not in any respect be taken as an admission of the OWNER of the amount of work done or of its quality or sufficiency nor as an acceptance of the work or the release of the CONTRACTOR of any of its responsibility under the Contract. II - 4 Construction Agreement ARTICLE 5. DISCRIMINATION. The CONTRACTOR agrees, in connection with the performance of work under this contract as follows: a. The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, creed, color, sex, religion, national origin or ancestry. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruiting or recruitment, advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. b. The CONTRACTOR agrees to include this non-discrimination clause in any subcontracts connected with the performance of this agreement. c. In the event of the CONTRACTOR's non-compliance with the above non- discrimination clause, the contract may be canceled or terminated by the OWNER. The CONTRACTOR may be declared by the OWNER to be ineligible for future contracts with the OWNER, until satisfactory proof of intent to comply shall be made by the CONTRACTOR. d. The OWNER shall be provided a list of subcontractors who are to be paid $10,000 or more. The CONTRACTOR must ensure that such subcontractors meet the requirements as outlined in Title VI of the Civil Rights Act of 1964 (42 USC 2000d et seq), execute required assurances and provide the OWNER a copy of the signed assurance of all such subcontractors prior to final payment. In the event of a claim of $10,000 or more against the CONTRACTOR by a subcontractor under this section, no further payment shall be processed unless and until each required subcontractor assurance is provided the OWNER. ARTICLE 6. ENTIRE CONTRACT. This Contract and Agreement contains the entire understanding and agreement of the parties upon the subject matter hereof. There is no agreement, oral or otherwise, which is not set forth in writing as part of this Agreement or the Contract Documents. ARTICLE 7. MODIFICATION. This contract cannot be modified except by a writing signed by both parties. ARTICLE 8. VARIABLES IN COST. The parties hereto assume and understand that the variables in the CONTRACTOR's cost of performance may fluctuate; consequently, the parties II - 5 Construction Agreement hereto agree that any fluctuations in the CONTRACTOR's costs will in no way alter the CONTRACTOR's obligations under this contract nor excuse nonperformance or delay on his/her part. ARTICLE 10. VENUE. This contract shall be governed by the laws of the State of Texas. Venue for any court proceedings shall be in Tarrant County, Texas. ARTICLE 11. CONTRACT DOCUMENTS. Documents Listed. The Contract Documents which comprise the entire agreement between OWNER and CONTRACTOR for the performance of and payment for the Work, consist of the following- (1) This Agreement (2) Addendum(s) (3) "Notice to Bidders" advertisement (4) Bidder's Proposal (5) Special Instruction to Bidders (6) Performance, Payment and Maintenance Bonds (7) Certification of Insurance (8) Notice to Proceed (9) Technical Specifications (10) City of North Richland Hills' Public Works Design Manual (11) Special Provisions (12) Project Construction Plans/Drawings (13) Special Material and/or Equipment Specifications (14) Special Material and/or Equipment Drawings (15) "Public Works Construction Standards - North Central Texas" adopted by the North Central Texas Council of Governments (NCTCOG), October 2004 Edition (16) North Central Texas Council of Government references ARTICLE 11. DEFAULT OWNER may declare CONTRACTOR in default of this Contract in the event Contractor fails to comply with the terms and conditions set forth in this Contract or any of the Contract Documents. II - 6 Construction Agreement ARTICLE 12. SUBCONTRACTORS Any subcontractor who furnishes labor or materials to fulfill an obligation to CONTRACTOR under this Contract or who performs all or part of the work required by this Contract, must comply with all notice and filing requirements of Texas Property Code, Chapter 53 in order to perfect a mechanic's, contractor's or materialman's lien. If a subcontractor complies with Chapter 53 of the Texas Property Code, Owner shall be authorized to withhold payment from the CONTRACTOR for payment of the claim. Owner shall release any such payment to the CONTRACTOR upon written notice and sufficient documentation to Owner from subcontractor that the claim has been paid or otherwise settled. IN TESTIMONY WHEREOF, the CITY OF NORTH RICHLAND HILLS has caused this instrument to be signed in its corporate name, and on its behalf by the Mayor or City Manager, duly authorized to execute this instrument by action of the City Council and a corporation, partnership, individual (Name of Contractor) ("X"out the inappropriate wording) acting by and through its duly authorized officials, thereby binding themselves for the faithful and full performance of the terms and provisions of this Agreement. CITY OF NORTH RICHLAND HILLS: CONTRACTOR: By: By: Mark Hindman Name: City Manager Title: Date: Date: ATTEST: ATTEST: By: By: Alicia Richardson Name: City Secretary Title: APPROVED TO FORM AND LEGALITY: By: Maleshia B. McGinnis, City Attorney II - 7 Construction Agreement The City of North Richland Hills is accepting sealed bids from all interested parties for: ➢ Bid Number: 21-008 ➢ Bid Type: REQUEST FOR BID ➢ Bid Name: Big Fossil 24" Interceptor Project ➢ Bid Due Date: Friday, February OS, 2021 ➢ Bid Due Time: 12:00 P.M. Central Standard Time ➢ Deadline for questions: Date: Friday, January 29, 2021 Time: 12:00 P.M. Central Standard Time DOCUMENTS MUST BE SUBMITTED ELECTRONICALLY VIA: DOCUMENTS MAY BE MAILED TO: City of North Richland Hills Purchasing, Attn: 21-008 BIG FOSSIL 24" INTERCEPTOR PROJECT 4301 City Point Drive North Richland Hills, TX 76180 If mailing a bid packet please include One 1� liar co an a {I) so t ca � on Flash drive. Submit documents in a sealed envelope with the following information marked plainly on the front: PURCHASING DEPARTMENT - " INTERCEPTOR PROJECT No oral explanation in regards to the meaning of the specifications will be made, and no oral instructions will be given after the pre-bid meeting and before the award of the contract. Requests from interested vendors for additional information or interpretation of the information included in the specifications should be directed in writing as a question related to this bid on Public Purchase and the question will be answered on Public Purchase. All addendums will also be posted to Public Purchase. It will be the vendor's responsibility to check all information related to this bid on Public Purchase before submitting a response, The City of North Richland Hills reserves the right to reject in part or in whole all bids submitted, and to waive any technicalities for the best interest of the City of North Richland Hills. 3 JGWEP,14ERA,III In submitting this bid, the Bidder understands and agrees to be bound by the following terms and conditions. These terms and conditions shall become a part of the purchase order or contract and will consist of the invitation to bid, specifications, the responsive bid and the contract with attachments, together with any additional documents identified in the contract and any written change orders approved and signed by a city official with authority to do so. All shall have equal weight and be deemed a part of the entire contract. If there is a conflict between contract documents, the provision more favorable to the City shall prevail. 1. BID TIME It shall be the responsibility of each Bidder to ensure his/her bid are submitted to the Public Purchase website on or before 12:00 PAL Friday, 05 021. The official time :M shall be determined by the Public Purchase Websitc. The Public Purchase Website will NOT allow bid responses to be uploaded after the closing time. All attached bid documents are to be returned completely filled out, totaled, and signed. The City of North Richland Hills will not accept any bid documents other than the attached. 2. WITHDRAWING BIDS/PROPOSALS/QUOTES Bids may be withdrawn at any time prior to the official opening; request for non- consideration of bids must be made in writing to the Purchasing Manager and received prior to the time set for opening bids. The bidder warrants and guarantees that his/her bid has been carefully reviewed and checked and that it is in all things true and accurate and free of mistakes. Bidder agrees that a bid price may not be withdrawn or canceled by the bidder for a period of ninety (90) days following the date designated for the receipt of bids. 3. IRREGULAR BIDS/PROPOSALS/QUOTES Bids will be considered irregular if they show any omissions, alterations of form, additions, or conditions not called for, unauthorized alternate bids, or irregularities of any kind. However, the City of North Richland Hills reserves the right to waive any irregularities and to make the award in the best interest of the City. 4. REJECTION/DISQUALIFICATION Bidders will be disqualified and/or their bids rejected, among other reasons, for any of the specific reasons listed below: a) Bid received after the time set for receiving bids as stated in the advcitisernent; b) Reason for believing collusion exists among the Bidders; c) Bid containing unbalanced value of any item; bid offering used or reconditioned equipment; d) Where the bidder, sub-contractor or supplier is in litigation with the City of North Richland Hills or where such litigation is contemplated or imminent; c) Uncompleted work which in the judgment of the City will prevent or hinder the prompt completion of additional work, or having defaulted on a previous contract; f) Lack of competency as revealed by reference checks, financial statement, experience and equipment, questionnaires, or qualification statement; 4 g) lid containing special conditions, clauses, alterations, items not called for or irregularities of any kind, which in the Owner's opinion may disqualify the Bidder. However, the City of North Richland Hills reserves the right to waive any irregularities and to make the award in the best interest of the City of North Richland Hills. S. BID EVALUATION Award of bid, if it be awarded, will be made to the lowest responsible bidder or may be awarded to the bidder that offers the goods and/or services at the best value for the City (Texas Local Government Code, 252.043). In deteiYnining the best value the City will consider the following: a) The purchase price; terms and discounts; delivery schedule, b) The reputation of the bidder and of the bidder's goods or services; c) The quality of the bidders' goods or services; d) The extent to which the bidder's gods or services meet the City specifications and needs; e) The bidder's past relationship with the City, f) Total long term cost to the city to acquire the bidder's goods or services; g) Any relevant criteria specifically listed in the specifications; h) Compliance with all State and local laws, General Conditions and Specifications; i) Results of testing, if required; j) Warranty and/or guarantee, maintenance requirements and performance data of the product requested; k) City's evaluation of the bidder's ability to perfoi n to specifications. . AWARD The bid award will be made within sixty (60) days after the opening of bids. No award will be made until after investigations are made as to the responsibilities of the best bidder. The City of North Richland Hills reserves the right to award bids whole or in part when deemed to be in the best interest of the City. Bidder shall state on bid form if their bid is "all or none", othetwise it shall be considered as agreeing to this section. Information contained in submitted bid documents shall not be available for inspection until after the award has been made by the City Council. Requests for this information must be submitted to writing. 7. ASSIGNMENT The successful bidder may not assign his/her tights and duties under an award without the written consent of the North Richland Hills City Manager. Such consent shall not relieve the assignor of liability in the event of default by his assignee. S. SUBSTITUTIONS/EXCEPTIONS Exceptions/variations from the specifications may be acceptable provided such variations, in each instance, is noted and fully explained in writing and submitted with bid. NO substitutions or changes in the specifications shall be peiYnitted after award of bid without prior written approval by the Purchasing Manager. 5 9. DELIVERYACCEPTANCE The delivery date is an ii-nportant factor of this bid and shall be considered during the evaluation process. The City considers delivery time the period elapsing from the time the order is placed until. the City receives the order at the specified delivery location. All material shall be delivered F.O.B. City of North Richland Hills to the address specified at the time of order. Acceptance by the City of North Richland Hills of any delivery shall not relieve the Contractor of any guarantee or warranty, expressed or implied, nor shall it be considered an acceptance of material not in accordance with the specifications thereby waiving the City of North Richland Hills right to request replacement of defective material or material not meeting specifications. 10. NOTICE OF DELAYS Whenever the contractor encounters any difficulty which is delaying or threatens to delay timely performance, written notice shall immediately be given to the Purchasing Manager, stating all relevant information. Such notice shall not in any way be construed as a waiver by the City of any rights or remedies to which it is entitled by law. Delays in performance and/or completion may result in cancellation of agreernent. & SALESTAX The City of North Richland Hills is exempt from Federal Excise and State sales tax; therefore tax must not be added to bid. 12. TIE BIDS In the event of a tie bid, State Law provides the bid or contract shall be awarded to the local bidder. In cases where a local bidder is not involved, tie bids shall be awarded by drawing lots at the City Council meeting, or as otherwise directed by the Mayor. 13. BRAND NAME OR EQUAL If iterns are identified by a "brand name" description, such identification is intended to be descriptive, not restrictive, and is to indicate the quality and characteristics of products that will be satisfactory. As used in this clause, the term "brand name" includes identification of products by make and model. Such products must be clearly identified in the bid as an equal product and published specifications of the equal products offered must be included with the bid reply. Bids offering equal products will be considered for award if determined by the Purchasing Manager and the user department to be equal in all material respects to the brand name products referenced. The decision of acceptable "equal" items or variations in the specifications will solely be the City of North Richland Hills. Unless the bidder clearly indicates in his/her bid that he is offering an "equal" product, his bid shall be considered as offering the brand name product referenced in the invitation for bids. 14. REFERENCES A minimum of three (3) references, preferably located within the Dallas/Fort Worth Metroplex, must be submitted with each bid. Company name, contact and phone number must be included with each reference. 6 15. PROHIBITION AGAINST PERSONAL FINANCIAL INTEREST IN CONTRACTS No employee of the City of North Richland Hills shall have a direct or indirect financial interest in any proposed or existing contract, purchase, work, sale or service to or by the City (CMA-074, Standards of Conduct, Section IV). 16. TERMINATION/NON PERFORMANCE Continuingnon-perfon-nance of the vendor in terms of Specifications shall be a basis for the termination of the contract by the City. The City of North Richland Hills reserves the right to enforce the performance of this contract in any manner prescribed by law or deemed to be in the best interest of the City in the event of breach or default of this contract. The City reserves the right to terminate the contract immediately in the event the success" bidder fails to 1.) Meet delivery schedules or, 1) Otherwise not perform in accordance with these specifications. Breach of contract or default authorizes the City to award to another bidder, and/or purchase elsewhere and charge the full increase in cost and handling to the defaulting successful bidder. The contract may be terminated by either party upon written thirty (30) days' notice prior to cancellation without cause, 17. ATTORNEYS FEES Neither party to this contract shall be entitled to attorney fees for any matter arising under this contract, whether for additional work, breach of contract, or other claim for goods, services, or compensation. All claims for attorney's fees are hereby WAIVED. 18. INDEMNITY City shall not be liable or responsible for, and shall be saved and held harmless by Contractor from and against any and all suits, actions, losses, damages, claims, or liability of any character, type, or description, including claims for copyright and patent infringement, and including all expenses of litigation, court costs, and attorney's fees for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, arising out of, or occasioned by, directly or indirectly, the performance of Contractor under this agreement, including claims and damages arising in part from the negligence of City, without; however, waiving any governmental immunity available to the CITY under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this indemnification are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. It is the expressed intent of the parties to this Agreement that the indemnity provided for in this section is an indemnity extended by Contractor to indemnify and protect City from the consequences of City's own negligence, provided, however, that the indemnity provided for in this section shall apply only when the negligent act of City 7 j i is a contributory cause of the resultant injury, death, or damage, and shall have no application when the negligent act of City is the sole cause of the resultant injury, death, or damage, unmixed with the legal fault of another person or entity. Contractor further agrees to defend, at its own expense, and on behalf of City and in the name of City, any claim or litigation brought in connection with any such injury, death, or damage. The Contractor will secure and maintain Contractual Liability insurance to cover this indemnification agreement that will be primary and noncontributory as to any insurance maintained by the City for its own benefit, including self-insurance. 19. PERFORMANCE AND PAYMENT BONDS In the event the total contract amount exceeds $100,000, the Contractor shall be required to execute a performance bond in the amount of one hundred (100) percent of the total contract price; if the total contract amount exceeds $50,000 the contractor shall be required to execute a payment bond in the amount of one hundred (100) percent of the total contact price, each in standard forms for this purpose, guaranteeing faithful performance of work and guaranteeing payment to all persons supply labor and materials or furnishing any equipment in the execution of the contract. It is agreed that this contract shall not be in effect until such performance and payment bonds are furnished and approved by the City of North Richland Hills. No exceptions to this provision allowed. Unless otherwise approved in writing by the City of North Richland Hills, the surety company underwriting the bonds shall be acceptable according to the latest list of companies holding certificates of authority from the Secretary of the Treasury of the United States. Attorneys-in-fact who sign bid bonds or contract bonds must file with each bond a certified and current copy of their power of attorney. 20. INTERLOCAIL, AGREEMENT Successful bidder agrees to extend prices and terms to all entities who have entered into or will enter into joint purchasing interlocal cooperation agreements with the City of North Richland Hills. [X] Yes, we agree [ ]No, we do not agree 21. ELECTRONIC PROCUREMENT The City of North Richland Hills has adopted policies and procedures complying with Local Government Code Section 252.0415, Section 271.906 and Section 2155.062, The City of North Richland Hills may receive submittals in electronic form u1 response to procurement requests. However, a bid that is submitted non-electronically by the due date and time will be accepted and then entered electronically by Purchasing after the bid opening. 22. COMPLIANCE WITH SB 89: 8 j Vendor agrees per HB 89 of the 85th Texas Legislative Session, and in accordance with Chapter 2270 of the Texas Government Code, vendor has not and shall not boycott Israel at any time while providing products or services to the City of North Richland Hills. ]Y e s, we agree [ ]No, we do not agree 23. COMPLIANCE WITH SB 252. Vendor agrees per SB 252 of the 85`t' Texas Legislative Session, and in accordance with Chapter 2252 of the Texas Government Code, vendor shall not do business with Iran, Sudan or a foreign terrorist organization while providing products or services to the City of North Richland Hills. [X] Yes, we agree [ ] No, we do not agree y selecting no, vendor certifies that it is affirmatively excluded from the federal sanctions regime by the United States government and is not subject to the contract prohibition under Section 2252.154 of the Texas Government Code. Vendor shall provide sufficient documentation to the City of such exclusion prior to award of any contract for goods or services. 24. ETHICS AND COMPLIANCE POLICY The City's Ethics and Compliance Policy can be found at The City of North Richland Hills Purchasing Division webpage r Or you may request a copy from the Purchasing Division. Aelmowledgment-The City of North Richland Hills' Internal Ethics and Compliance Policy has been made available to me. I understand the expectations of ethical behavior and compliance with the law, and agree to adhere to the City's ethics policies. �tiade-c..f fFtlu s---PD bidld llagree [ ]I do not agree 25. DEPARTMENT OF TRANSPORTATION (TXDOT) RELATED BIDS "°The City of North Richland Hills, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award" Due care and diligence has been used in preparation of this information, and it is believed to be substantially correct. However, the responsibility for determining the full extent of the exposure and the verification of all information presented herein shall rest solely with the bidder. The City of North Richland Hills and its representatives will not be responsible for any errors or omissions in these specifications, nor for the failure on the part of the proposer to determine the full extent of the exposures. 9 Contractors performing work on City property or public right-of-way for the City of North Richland Hills shall provide the City a certificate of insurance evidencing the coverages and coverage provisions identified herein. Contractors shall provide the City evidence that all subcontractors performing work on the project have the same types and amounts of coverages as required herein or that the subcontractors are included under the contractor's policy. The City, at its own discretion, may require a certified copy of the policy. All insurance eo a ies and coverages must be authorized by the Texas Department of Insurance to transact business in the State of Texas and must be acceptable to the Cittv of North Richland Hills. Listed below are the types and amounts of insurance generally required. The City reserves the right to amend the insurance requirements or require additional types and amounts of coverages a provisions depending on the nature of the work or services to be performed. .,. ......... Type of Insurance Amount of Insurance ., Provision I. Comi-nereial General Liabilityto $1,000,000 each occurrence, City to be Irstecl as additional include coverage for: $1,000,000 general aggregate, insured and provided 30 day-notice a) Premises/Operations of cancellation or material change b) Products/Completed Or in coverage Operations c) Independent Contractors $1,000,000 combined single Iimits City prefiers that insurer be rated d) Personal Injury B+VI or higher by A. M. Best or A e) Contractual Liability or higher by Standard&Poor's f) Personal/Advertising Injury g) Medial Expense h) Fire Legal Liability �I i) Underground Hazard j) Explosion/Collapse Hazard k) Patent Infi'ingernent 11 Convright Law Violations .. ...........X .... �..- _._...._ . RRR 2 Consultants,architects, engineers, $500,000 Professional Liability Landscape design specialist, other with proof that aggregate is still �,,...professronaIw services .....................—,-Statutory ,,,,,,,, ..available, ... 3. 'Workers' Comp ensation �r Statutory Limits Alternate employer endorsement. Ernplovers' Liability $500,000 eaclt accident repurr ed 4 Liability Insurance, rAutom Automobile $5 d 00 0 Combined single limit including f bodily injury and property coverage for loading and unloading damage hazards, for a) Owned/Leased Vehicles b) Non-Owned Vehicles d,,,.. o� Hned Vehrc,les A PURCHASE ORDER WILL NOT BE ISSUED WITHOUT EVIDENCE OF INSURANCE. 10 I I INO I' ,,,,,,Ir�"I�)IDCj. J 1()IN A " " luAM " i(WBIDDER State of Missouri County of St. Louis Gina Gurrieri verifies that: (Name) (1) He/She is owner, partner, officer, representative, or agent of Insitufarm Technologies, LLC has submitted the attached bid: (Company Name) (2) Ile/She is fully informed in respect to the preparation, contents and circumstances irl regard to attached bid; (3) Neither said bidder nor any of its officers, partners, agents or employees has in any way colluded, conspired or agreed, directly or indirectly with any other bidder, f= or person to submit a collusive or sham bid in connection with attached bid and the price or prices quoted herein are fair and proper. SIGNATURE Gina Gurrieri, Contracting &Attesting Officer PRINTED NAME Subscribed and sworn to before me this y SACK , 5 Da of February,,-_-, 2021. l {Votary Seal �� �,° Notary P blic STATE MISSOUR 5t. charley co 2 2021' ll��;i..).TARP PUBLIC in and for My �comrniss�r�#1;'5 3� MISSOURu,°�� °� ST.LOUIS County, Texa.q. My commission expires: THIS FORM MUST BE COMPLETED, NOTARIZED SUBMITTED WITH BID it BID The Undersigned, in submitting this bid, represents and certifies: a. He/she is fully informed regarding the preparation, contents and circumstances of the attached bid; b. He/she proposes to furnish all equipment/service at the prices quoted herein and bid is in strict accordance with the conditions and specifications stated herein; c. There will be at no time a misunderstanding as to the intent of the specifications or conditions to be overcome or pleaded after the bids are opened; ct He/she is an equal opporturvty employer, and will not discriminate with regard to race, color, national origin, age or sex in the performance of this Contract. e. The undersigned hereby certifies that he/she has read, understands and agrees that acceptance by the City of North Richland Hills of the bidder's offer by Issuance of a purchase order will create a binding contract. Further, he/she agrees to fully comply with documentary forms herewith made a part of this specific procurement. COMPANY: [nsituform Techno[ogies. LLC. ADDRESS: 17988 Edison Avenue CITY, STATE &ZIP: Qb9qt9tfi@!d, MO 63005 TELEPHONE: 636-530-8000 FAX 636-530-8701 .............................................................................................................—-----.............................................................................................- EMAIL: ggurrierl_@aegion.com SIGNATURE: AnahaAAi",-A� PRINTED NAME, Gina Gurrieri, Contracting estin Officer DATE: 2105/2021 .......................................................................................................................................................... 12 CO.M.P.L.I.ANCE wim HOUSE BILL 1295 In 2015, the Texas Legislature adopted House Bill. 1295, which added section 2252.908 of the Government Code. The law states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the business entity submits the signed contract to the governmental entity. The law applies only to a contract of a governmental entity that either (1) requires an action or vote by the governing body of the entity or agency before the contract may be signed or (2) has a value of a: least $1 million. The disclosure requirement applies to a contract entered into on or after January 1, 2016. The Texas Ethics Commission has adopted ruies necessary to implement the law, prescribed the disclosure of interested parties form, and posted a copy of the form on the commission's website. Filing Process- The commission has made available on its website a new filing application that must be used to file Form 1295. A business entity must: 1) Use the application to enter the required information on Form 1295, 2) Print a copy of the completed form, which will include a certification of filing that will contain a unique certification number. 3) Contract Number should be the Bid/RFP Number and Bid Title. 4) Sign the printed copy of the form (an authorized agent of the business entity must sign), 5) Either include your personal infoiYnation or have the form notarized, b) File the completed Form 1295 with the certification of filing with the governmental body with which the business entity is entering into the contract. The governmental entity must notify the commission, using the commission's filing application, of the receipt of the filed Form 1295 with the certification of filing not later than the 30th day after the date the contract binds all parties to the contract. The commission will post the completed Form 1295 to its website within seven business days after receiving notice from the governmental entity. Information regarding how to use the filing application may be found at info...... i°orn-d 2915..fi hn. 13 CERTIFICATE OF INTERESTED PARTIES FORM 1295 Complete Nos. I-4 and 6 V there are interested parties. OFFICE USE ONLY Complete Nos 1, 2,3,5, and 6 9 there are no interested parties. CERTIFICATION OF FILING I Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number: of business, 2021-710700 Insiturform Technologies, LLC Chesterfield, MO United States Date Filed: �2 Name of governmental entity or state agency that is-a party"i-D FR contractfor which the form is 01127/2021 being filed® City of Northland Hills Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 21,008 Contract Services 4 Nature of interest Name of Interested Party City, State, Country (place of business) (check applicable) Controlling Intermediary Morris, David Chesterfield, MO United States X Gordon Charles Chesterfield, M0 United States X ----- —-—----- -I-———--------------- -------...................... ................................... 5 Check only if there is NO Interested Party. 16 UNSWORN DECLARATION name is.......... Gina Gurrieri and my date of birth is, nfly address is 17988 Edison Avenue Chesterfield MO , 63005 -1-1-1-................ —,_..Q-A............ (alreet) (chy) (stale) (Alp corte) (noultry) I declare under penalty of ipmjuty that the foregohng is true and correct. Executed in St. Louis County, State of Missouri on the 27!day of , February, 2o 21 ............... ----------Signature- ent contracting business entity Forms provided by Texas Ethics Commission www.ethics-state.tx.us Version V1.1.ceffd98a FOR. I)IS.AD'VA,�,,,�T'A(.N"l�"','D 'BtJ,S.I..�,,TESS ENTE14,111FIRISES ON1 Iry Disadvanta ed Business Enterl!E:ises �DPE� are encouraged to participate in the City of North Richland Hills bid process. Representatives from DBE Companies should identify themselves as such and submit a copy of their Certification. The City of North Richland Hills recognizes the certifications of of the State of Texas Building and Procurement Commission HUB Program and the Not Central Texas Regional Certification Agency. All companies seeking information concerning DBE certification are urged to contact: Texas Building and Procurement Commission Statewide HUB Program 1711 San Jacinto Blvd., Austin TX 78701-1416 P 0 Box 13186, Austin, TX 78711-3186 (512) 463-5872 tote j�jMb-qqrdfiCqtior1/ .................................................................. North Central Texas Regional Certification Agency 624 Six Flags Drive, Suite 216 Arlington, Texas 76011 (817) 640-0606 �qp,:, �ixwyvnetreapr ............. If your company is already certified, attach a copy of your certification to this form and return as part of your packet. Company Names: NA Representative: ,,............... ...... .......... Address: City, State, Zip: ................. ............. TelephoneNo. ..................................................................................................................................— Fax No. Email address: INDICATE ALL THAT APPLY: Minority-Owned Business Enterprise Women-Owned Business Enterprise Disadvantaged Business Enterprise 14 Wx_rdWi F.UCT OF .W.NT.ERIutl T QW,J.Eu p, ➢. ,,, ,4.A.1RE Pursuant to Chapter 176 of the Texas Local Government Code, a person, or agent of a person, who. contracts or seeks to contract for the sale or purchase of property, goods, or services with the City of North Richland Hills must file a completed conflict of interest questionnaire. The conflict of interest questionnaire must be filed with the City Secretary of the City of North Richland Hills no later than the seventh business day of ter the person or agent begins contract discussions or negotiations with the City of North Richland .Hills or submits to the City of North Richland Hills an application, response to a request for proposal or bid, correspondence, or another writing related to a potential agreement with the City of North Richland Hills. An updated conflict of interest questionnaire must be filed in accordance with Chapter 176 of the Local Government Code. An offense under Chapter 176 is a Class C misdemeanor. The Conflict of Interest Questionnaire is included as part of this document and can be found at: lllr fipsm ° w ^ithu .state.tx.iiis�"rr"brnisICIC Rd 15 i CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor doing business with local governmental entity This questionnaire reflects changes made, ro the law by H.B. 23, 94th leg, Regular Session_ OFF3CEUSE4NL'Y This questionnaire is being filed h accordance with Chapter 176, Local Government Code, by a vendor who Date csiv has a business relationship defined by Section 176.001(1-a) wilh a local governmental entity and the vendor meals requirements under Section 176.006(a). By law this questionnaire must be fled with the,records administrator of the cocal governmental entity,not later than fhe 7th business day after the data the vendor becomes aware of facts that require the statement b be filed S60 Sedan 176.006(a-1), Local Govommont Coda Avendor commits an offense 9 the vendor knowingly viclates Section 176.006, L"Government Cods..An offarse under thk section b a misdemeanor. t Name of vendor who has a business relationship with local governmental entity. NA Check this box if you are filing an update io a previously fled questionnaire.(The law requires that you fib an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the ortg€natty filed questionnaire was incomplete or inaccurate.) NA 3 Name of local government officer about whom the information is being disclosed. NA Name of Officer 4 Describe each employment or other business relationship with the local government officer, or a family member of the officer,as described by Section 176.003(a)(2)(A). Also describe any family relationship with the local government officer. Complete subparts Aand B for each employment or business relationship described. Attach additional pages to this Form CIO as necessary. NA A. Is the local government officer or a family member d the officer receiving or llkely to reeve taxable income, other than investment income, from the vendor? 71 Yes E-1 No NA B. is the vendor receiving or likely to receive taxable income,other than investment income,from or ed the direction of the local government offices or a famhj member of the officer AND the taxable income B not received from the local governmental entity? Fl Yes 1-1 No NA U Describe each employment or business relationship that the vendor named in Section 1 maintains with a corporation or other business entity with respect io which the local government officer serves as an officer or director, or holds an ownership interest of one percent or more. NA e Check this box f the vendor has given the Mal government officer afamily member of the officer one or more gifts as described in Section 176.003(a)(2)(B), excluding gifts described in Section 176.003(a-1). NA 7 6 � � AMP,, t 2/5/2021 , � ��II ��, °, � �� r bl ature s it gn cf vender d g business wig the goverrrnantal en4ty . d-uluuw pia 6'e�rc^kmre;x N-- '�—»m"i:^ktlre'iu "� � '0 " " Form providod bl Tess Ethics Commission www.ethtcs.state.tx,us Revised iiO3Dl20i5 16 i .................... ......................................................... CONFLICT OF INTEREST QUESTIONNAIRE For vendor doing business with local governmental entity Acomplete copy of Chapter 176 of the LecA Government Code my be found at http:llwww.statutes.legis.state.tx.usl Docs1LG/him1LG.176.him. For easy reference, below are some of the sections cited an this form. Local Government Code§ 176.001L1-9): "Business relationship" means a connection between two or more parties based on cammercial activity of one of the parties. The term does not include a connection based on: (A) atransaction that is subject 10 rate or fee regulation by afederal, state,or local governmental entity or an agency of a federal,state, or local governmental entity; (B) atransacticon conducted at a price and subject to terms available to the public;or (C) a purchase a-lease of goods or services from a person that is chartered by a state a4-federal agency and that is subject to regular examination by,and reporting to, that agency. Local Government Code A176.003 a 2)jA�andKBh (a) A local government officer shall file a conflicts disclosure statement with respect to a vendor if: (2) the vendor: (A) has an employment or other business relationship with the local governmeni officer or a family member of the officer that results in the officer or family member receiving taxable income, other than investment income, that exceeds $2,500 during the 12-month period preceding the date that the officer becomes aware that O acontract between the local governmental entity and vendor has been executed; or (ii) the local governmental entity is considering entering into a contract with the vendor; (B) has given to the local government officer or afamily member of the officer one or more gifts that have an aggregate value of more than$100 in the 12-month period preceding the date the officer becomes aware that: (i) a contract between the local governmental entity and vendor has been executed;or (ii) the local governmental entity is considering entering into a contract with the vendor. Local G,o,vernma0tCade,,,.§i„76.006�at and .a-it (a) Avendor shall file acompleted conflict of interest questionnaire if the vendor has a business relationship with a local governmental entity and: (1) has an employment or other business relationship with a local government officer of that local governmental entity, or a family member of the officer,described by Section 176.003(a)(2)(A); (2) has given a kcal government officer of that local governmental entity, or a family member of the officer,one or mtxe gifts with the aggregate value specified by Section 176.003(a)(2)(B),excluding any gift described by Section 175.003(a-f);or (3) has a family relationship with a local government officer of that local governmental entity. (a-1) The completed conflict of interest questionnaire must be filed with the appropriate records administrator not later than the seventh business day after the later of: (1) the date that the vendor: (A) begins discussions or negotiations to enter into a contract with the local governmental entity; or (9) submits to the local governmental entity an application,response b a request for proposals or bids, correspondence, or another writing related to a potential contract with the local governmental entity;or (2) the dale the vendor becomes aware: (A) of an employment or other business relationship with a local government officer, or a family member of the officer,described by Subsection (a); (B) that the vendor has given one or more gifts described by Subsection(a);or (C) of a family relationship with a local government officer. Form provided by Texas Ethics Commission www.ethics.state.tx.us Revised 11130/2015 17 The Contractor has the obligation to review all documents that make up the contract documents in their entirety and include any objections or requests for modifications to the Terms and Conditions, or any of the Contract Documents, in the Contract Changes Grid included with the Notice to Bidders. No changes or modifications will be made to the contract documents unless such changes are set forth iti the Contract Changes Grid, submitted to the City along with the Contractor's proposal, and agreed to by the City. CONTRACT CHANGES GRID Proposed ContractorBidder ]nsituform Technologies, LLC("Contractor" or "Bidder"), submits the following modifications to the City's Standard ("Agreement") requesting changes to such provisions he acceptedby the City� ��y and incorporated into the Agreement. Contractor understands and acknowledges that the City is under no obligation to accept the modification(s) proposed by Contractor; however, the City agrees to negotiate in good faith in consideration of Contractor's request, subject to legal requirements, City policies and advice of the City Attorney. Section"l Page Term, C ,z...„ .. ..... ....,,. .. _.. na Condition or Exception/Prroposed Disposition (For Specification Modification City ofNRH Use Only) .__........ __ City Response: Accepted Not Accepted ........ _. ....... .... .._. ,, ., � Modified �� 18 SPECIFICATIONS °., .' 'I ::N The Contractor shall refer to the following for additional project specifications and relevant details: 1. Big Fossil 24" Interceptor Contract 2, NRH Big Fossil 100% Plans 3, Big Fossil 24in Interceptor E-Bid Tab 19 - 2010 A.1A TM Bid Bond CONTRACTOR: SURETY: (Name-,legal status and address) (X, legal status and principal place of business) This document has Travelers Casualty And Surety Company important legal INSITUFORM TECHNOLOGIES, LLC One Tower Sduare consequences. 17988 Edison Avenue Hartford, CT 06183 Consultation with an Chesterfield, MO 63005 attorney is encourageb with respect to its Mail Notices To: completion or OWNER: Travelers modification. (Mame, legal status and address) Attn: Surety Claim Dept. City of North Richland Hills One Tower Square 2S1A Any singular reference to 4301 Ci Point Drive Hartford, Cr 06183 Contractor, surety, North Richland Hills TX 7fi180 Owner, or other party, shall be considered plural where applicable. BOND AMOUNT: Five Percent of the Amount Bid ----------------- dollars($51/6 of Amount Bid) PROJECT: Big Fossil 24" Interceptor Project, Project No. 21-008 (None. location or address, and Project number, if any) The Contractor and Surety are bound to the Owner in the amount set forth above,for the payment of which the Contractor and Surety bind themselves,their heirs,executors,administrators, successors and assigns,jointly and severally,as provided herein.The conditions of this Band are such that if the Owner accepts the bid of the Contractor within the time specified in the bid documents, or within such time period as may be agreed to by the Owner and Contractor, and the Contractor either(I) enters into a contract with the Owner in accordance with the terms of such bid, and gives such bond or bonds as may be specified in the bidding or Contract Documents, with a surety admitted in the jurisdiction of the Project and otherwise acceptable to the Owner, for the faithful perfix-mance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof., or(2) pays t{D the Owner the diff=nec, not to exceed the amount of this Bond, between the amount specified in said bid and such larger amount for which the Owner may in good faith contract with another party to perform the work covered by said bid,then this obligation shall be null and void, otherwise to remain in full force and of loct. The Surety hereby waives any notice of an agreement between the Owner and Contractor to extend the time in which the Owner may accept the bid Waiver of notice by the Surety shall not apply to any extension exceeding sixty(60) days in the aggregate beyond the time for acceptance of bids specified in the bid documents, and the Owner and Contractor shall obtain the Surety's consent for an extension beyond sixty(60)days If this Bond is issued in connection with a subcontractor's bid to a Contractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. When this Bond has been furnished to comply with a statutory or other legal requirement in the location of the Project,any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished, the intent is that this Bond shall be construed as a statutory bong and not as a common law bond. i and scaled this 5th d f February,2021. 1AGUTUFORM TPC,NAtOLOGIES g (Princi 1) (Seal) rile ina Gurrrerr onl&r rt , Dhfistlantla Attkin~� (T )G g&Attesting O�Cer f'tntfacting Atiesting CiMear r w (Witness)Donna Robson, Witness t„ ... ._.R (T►Ue)Andrew A Thome,Attorney-In-Fact kit AIA Document A31OTm—2010.Copyright 01963, 1970 and 2010 by The American Institute of Architect.-,.All rights reserved. VU'A1R1kiH,1,''iiS:"oi i, A:IA 111oCUInCInit, I; Iuual �rcal.iy Ibl,, iU,S i.11p:Ilvul'dgpllrit IUrn, r',und Iluv lile,,„, iIunauthori✓ied nrlluirraduukpon or cdm&flrk0on N thu,; MA Lrninuiment,. G.m, rnt j.,iorkwni of iit, may re,;udll: iin arw&e aani cruninai 1peiw.)ai[es, tYuo�r,V 1+001 be. prrr,t>autcd to Hie ireueu;Iirnoarnu i.am�er tllic lam Purchasers are permitted to reproduce ten(10)copies of this document when completed.To report copyright violations of AIA Contract Docurnerrts,a-moil The American Institute of Architects'legal counsel,r,ovarriiglhtLoi agrg. 061110 € , .._.................... ,,,,,,,,,,,,,,, ,,,..... .... _ �eiers_ Casualty..._and Surety Company of. ...�....... Am _a ericw.. Tra Travelers Casualty and Surety Company TRAVELERS J St. Paul Fire and Marine Insurance Company ����..,.., ..�,.�.... m. ..� � �.,,r . n,M�� _�,,. „ ... POWER OF ATTOR NEY KNOW ALL MEN BY THESE PRESENTS:That Travelers Casualty and Surety Company of America,Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein coflectiveiy called the "'Companies"),and that the Companies do hereby make,constitute and appoint Andrew P.Thome,of Chesterfield, Missouri,their true and lawful Attorney-In-Fact to sib execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings awed by law. 1N WITNESS WHEREOF,the Companies have caused this instrument to be signed,and their corporate seats to be hereto affixed,this 3rd day of February, 2017. u ? State of Connecticut By. City of Hartford ss Robert L.Raney, or Vice President On this the 3rd day of February, 2017, before me personally appeared Robert L.Raney, who acknowledged himself to be the Senior Vice President of Ifravelers Casualty and Surety Company of America, Travelers Casualty and Surety Company,„and St. Paul Fire and Marine Insurance Company, and that he,as such,being authorized so to do,executed the foregoing instrument fur the purposes therein contained by signing on behalf of the corporations by himself as a duly autrorized officer. In Witness Whereof, I hereunto set my hand and official seal. e GTetr�ault, Nota�� cv My Commission expires the 30th day of June,2021 ltplrp� �� ry Public Ibis Power of Attorney 1�granted under and by the authority of the following resolutions adopted by ttw,Boards of Directors of Travelers Casually and Surety Company of America,, Trav rs Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company,which resolutions are now in full farce and effect,reading as follows- RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President., any Vile President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys41n-Fact and Agents b act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance,or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her arid i is FURTHER RESOLVED, that th.,Chairman„ the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or arry Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company,provided that each such delegation is In writing and a copy thereof is filed in the office of the Secretary;and it u FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when(a)signed bl the President any Vice Chairman,any Executive Vice President,any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and led with the Company's seal bl a Secretary or Assistant Secretary; or(b) duly executed(under seat, l required)by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed n his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority:and it is FURTHER RESOLVED, that the signature of each of the following officers:President,any Executive Vine President,any Senior Vice President,any Vide President,any Assistant Vice President, any Secretary,any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to arty certificate relating thereto appointing Resident W-e Presidents,Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory it the nature thereof,and any such Power of Attorney or certificate bearing such facsirie signature or facsimile seat shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which i is attached. J. Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Surety Company of America„ Travelers Casualty and Surety Company,and St. Paul Fire and Marine Insurance Company„ do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies,which remains in full force and effect: Dated this 5 day of February 2021 � rut � � aaa�ir�rgarro � " �tl Kevin E. 4�Ass, .retary To verify thin-autheaddly of this-Payer of attorney,please cadr as at 1-900-421-3880. Please refer to the above naared Attaraey-i,wP ct and the detall&of the hoad io w.hich the power is attached. I IMPORTANT NOTICE To obtain information or make a complaint: You may call Travelers Casualty and Surety Company of America and its affiliates' tall-free telephone number for information or to make a complaint at: 1-800-328- 19 You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance: P. C. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: „http:l1www.tdi.state.tx..us E-mail ConsumerProtechon a)tdi s#ate,tx„us PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should contact your Agent or Travelers first. If the dispute is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR BOND: This notice is for information only and does not become a part or condition of the attached document and is given to comply with Texas legal and regulatory requirements. (PN-047-B) Ed 10.18.07 "MM CITY OF NORTH RICHLANDILLS January 13, 2021 ADDENDUM 1: RFB 21-008 BIG FOSSIL 24" INTERCEPTOR The bid documents listed have been uploaded to Public Purchase. - NRH Big Fossil Interceptor -Issued for Bid Specs -2021-01-13 NRH Big Fossil Interceptor -Issued for Bid Plans -2021-01-13 - Big Fossil 24in Interceptor E-Bid Tab (locked) THIS ADDENDUM MUST BE SIGNED AND RETURNED WITH YOUR RFB RESPONSE. Acknowledge receipt of this addendum by inserting this page with your RIB response. This addendum form is a part of the contract documents and it so modifies, amends, deletes and/'or adds to the original RFB document. Name and Address of Company. Authorized Representative: Insstu,,form Technologies, LLC 2� 17988 Edison Avenue Signature: �1i n a, Chesterfield MO 63005 Name; Gina Gurrieri Title Contracting &Attesting Officer Phone: 636-530-8000 aX 636-530-8701 E-Mall: ggurrieri(cc7aegion.com i I BID FORM FOR BIG FOSSIL 24" INTERCEPTOR PROJECT FOR THE CITY OF NORTH RICHLAND HILLS, TEXAS (THIS BID FORM MUST BE COMPLETED IN ITS ENTIRETY, SUBMITTED IN ITS ENTIRETY AND NOT REMOVED FROM THE CONTRACT DOCUMENTS) Bid Opening Date: 12:OOPM (CST), February 6 1 2021 TO: City of North Richland Hills 4301 City Point Drive North Richland Hills, Texas 76180 FOR: BIG FOSSIL 24" INTERCEPTOR PROJECT Pursuant to the foregoing "Notice to Bidders", the undersigned bidder, having thoroughly examined the Contract Documents, the site of the project and understanding the amount of work to be done and the prevailing conditions, hereby proposes to fully complete all of the work and requirements as provided in the plans and Contract Documents and binds himself/herself upon acceptance of this bid form to execute a contract and furnish such bonds as required and proposes to complete the work within the time stated and for the following prices: 1- 14 Bid Form ............................................................... BASE BID - BIG FOSSIL 24" INTERCEPTOR PROJECT Project Item Information Bidder's Proposal ................................................. ............ ...................................... ...................................................................,- ", "I'l"''I'll""I'llIll""I'll"'I Bid list Description Specification Unit of Bid Unit Price Bid Value Item No. Section No. Measure Quantity 1 Mobilization/Demobilization 01 70 OD & ,00a00 0& ,00a00 traffic Control 3471 13 L S------- 1 ------ 0 0 ,000000 � 0 0 ,000000 ..................................................................N C-T-6—OG202 —LS.....................-1,...... ... . ................ ........... 13 ..SWPP 2,0 00000 0 2,0 00000 4 Pre CCTV Inspection 330130.16 LF 2651 000 00 ,000m 5 Post-CCTV Inspection 3301 30.16 LF 2651 D OM 0 01,0ZM0 6 Cleanfng 24" Pipe 3301 30.71 LF 2140 0 8000 0 10 ,120000 ........................ ............ ............... .............. 7 Cleaning 27" Pipe 3301 30.71 LF 511 &00 0 0 ,08&00 ............. ............. 8 Install 12" SDR-35 PVC 31 2316.16, LF 46 3311 03, 33 41 19, 3341 0 110000 0 0 ,a mo 20 9 Install 24" PS46 ASTM 31 23 16-16, LF 50 F679 PVC 33 11 03, 33 41 19, 3341 0 210000 0 10,0 moo 20 10 Install 27" PS46 ASTM 31 2316.16, LF 55 F679 PVC .33 11 03, 33 41 19, .3341 0 Z 0000 0 12,0 0 0000 2D 11 24" CIPP 333112 LF 2140 I HHOO 0 201,10 0000 ........................................ ....... 12 27" CIPP 33 31 12 LF 511 120 D00 m .......... 13 Cured-in-Place (CIP) 3331 13.2 EA 5 Manhole Rehabilitation & 010 ,Z0000 081,Z0000 Adjustments 1 -15 Bid Form ............. „e„ ,,. _... __ Project Item Information Bidder's Proposal Bid list Description Specification Unit of Bid Unit Price Bid Value Item No. Section No. Measure Quantity ------------------ 14 60" Manhole....Instal � 333 .. 3,, Installation ` 39 13, 3 39 EA 2 (Polymer Concrete) 17, 33 39 23 0 22,0 D 0000 0 0 0 ,0 00000 15 72" Manhole Installation 33 39 13, 33 39 EA 1 (Polymer Concrete) 17, 333923 00000 0 0 0 ,0 00000 ..„ _...... ......... �,�,,,,,,, 16 Surface Restoration 3291 19 LE 2598 00000 00 ,000m _ _ .... 17 Demo Manhole 0241 00 EA 2 0000 0 0 ,0 00000 18 Asphalt Pavement Repair NCTCOG 302 SY 21`" I 0 10 0000 0 2,0 D 0000 19 Bypass Pumping 3303 10.51 LS 1 0 0 0 ,000000 0 0 0 ,000000 20 Miscellaneous Allowance ous Utility 01",22.00 � LS 1 . .. $45,000 $45,000 n,,,....,n 21 Miscellaneous Paving 01 2200 LS 1 Allowance $10,000 $10,000 22 Miscellaneous Landscape 01 2200 LS 1 Allowance $10,000 $10,000 ...... .. . m...... . „., TOTAL BASE BID 0000 ,nm0 BID SCHEDULE TOTAL BASE BID — $.................................�.8........ .....0 (Total Amount Base Bid, Numerical Value) 1 - 16 Bid Form The undersigned bidder acknowledges receipt of the following Addenda: (If none is received, then write NONE across the blanks.) Addendum No. 1 - Date Received Janua 13 2021 Addendum No. 2- Date Received January 28, 2021 Addendum No. 3- Date Received January 28, 2021 Addendum No. 4- Date Received The undersigned bidder agrees to execute and file with the Owner a contract and bonds on the forms provided within ten (10) daysafter written notification of award of the contract to him and to begin the work to be performed under the contract within ten (10) days after written authorization to begin the work (Work Order) and to complete the work in full within 180 Consecutive Calendar ,,,,,, ays after the date specified in the "Phase I Notice to Proceed/Work Order". See contract for additional schedule/ time requirements to include Phase II. Enclosed with this bid form is a certified check or cashier's check or bid bond payable to the City of North Richland Hills in the amount of five percent (5%) of the total bid, which is to become the property of the City of North Richland Hills, or the attached Bidder's Bond is to be forfeited in the event the contract and bond are not executed within the time set forth, as liquidated damages for delay and additional work caused thereby. Respectfully Submitted, Signed: ;8e n o- Gina Gurrieri, Contracting &Attesting Officer Company: lnsituform Technologies, LLC Address: 17988 Edison Avenue SEAL Chesterfield MO 63005 „ww (If Bidder is a Corporation) Telephone: 636-530.8000 Fax: 636-530-8701 an iRdividLtal Submitted by: lnsituform Technologies, LLC A partiner&hj-p A e--e fpefatfen Doing Business As: Limited uab,lity„Qorppany 1 - 17 Bid Form I See attaches! "Audited Balance Sheet" FINANCIAL STATEMENT Condition of Bidder at close of Business month, ,20_ ASSETS LIABILITIES 1. Cash on Hand $ $ Cash in Bank $ $ Cash Elsewhere $ ,. . ,.,_ ...... 2. Accounts receivable from completed contracts (exclusive of claims not approved for payment) $ $ 3. Accounts receivable from other sources than above $ $ .............._ .......... ......... 4. Amounts earned on uncompleted contracts (not included in Item 3) (Contract price on completed portion of uncompleted contracts less total cost of completed portion) $ $ 5. Deposits for bids on other guarantees $ 6. Notes Receivable Past Due Due 90 days ................................................................ Due Later $ 7. Interest Earned $ 8. Real Estate, Business Property, present value $ Other property, present value $ $ . Stocks and Bonds, Listed on Exchange Unlisted $ $ 10. Equipment, Machinery, Fixtures Less Depreciation $ $ 11. Other Assets $ TOTAL ASSETS $ $ 1 - 7 Financial Statement/Liabilities and Net Worth LIABILITIES AND NET WORTH ASSETS LIABILITIES 1. Notes Payable to Banks Regular $ (For Certified Checks) $ Equipment Obligations $ Others $ $ 2. Accounts Payable Current $ Past Due $ 3. Real Estate Mortgages $ $ 4. Other Liabilities $ 5. Reserves $ 6. Capital Stock Paid Up Common $ Preferred $ 7. Surplus $ TOTAL LIABILITIES $ $ 1 - 8 Financial Statement/Liabilities and Net Worth EXPERIENCE RECORD SEE CLOSED PROJECTS LIST List of Projects your Organization has successfullycompleted: Amount Date Name and Contract Award Type of Work Accepted Address of Owner .p„m, ---------........ .................. ........... -------------------------- ............. .............. List of Projects your Organization is now engaged in completing SEE ACTIVE PROJECTS LIST Anticipated Amount of Date of Name and Contract Award Type of Work Completion Address of Owner i �� _.... i i I - 9 Experience and Current Workload I SEE ATTACHED LIST OF OPEN CONTRACTS List of Surety Bonds in Force on above Uncompleted Work: Date of Amount of Name and Contract Award Type of Bond Bond' J� Address of Surety ..... ........ „ .... 1 List every type of bond separately. If one project has more than one type of bond, list each and every bond for that project on a separate fine. 1 - 10 Experience and Current Workload EQUIPMENT SCHEDULE SEEATTACHE® EQIPMENT List List of Equipment owned by bidder that is in serviceable condition and available for use: Portions of work Bidder proposes to sublet if Awarded the Contract including amount and type: Experience and Current Workload CERTIFICATE OF INTERESTED PARTIES FORM 1295 Complete Nos. I-4 and 6 V there are interested parties. OFFICE USE ONLY Complete Nos 1, 2,3,5, and 6 9 there are no interested parties. CERTIFICATION OF FILING I Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number: of business, 2021-710700 Insiturform Technologies, LLC Chesterfield, MO United States Date Filed: �2 Name of governmental entity or state agency that is-a party"i-D FR contractfor which the form is 01127/2021 being filed® City of Northland Hills Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 21,008 Contract Services 4 Nature of interest Name of Interested Party City, State, Country (place of business) (check applicable) Controlling Intermediary Morris, David Chesterfield, MO United States X Gordon Charles Chesterfield, M0 United States X ----- —-—----- -I-———--------------- -------...................... ................................... 5 Check only if there is NO Interested Party. 16 UNSWORN DECLARATION name is.......... Gina Gurrieri and my date of birth is, nfly address is 17988 Edison Avenue Chesterfield MO , 63005 -1-1-1-................ —,_..Q-A............ (alreet) (chy) (stale) (Alp corte) (noultry) I declare under penalty of ipmjuty that the foregohng is true and correct. Executed in St. Louis County, State of Missouri on the 27!day of , February, 2o 21 ............... ----------Signature- ent contracting business entity Forms provided by Texas Ethics Commission www.ethics-state.tx.us Version V1.1.ceffd98a IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Approve voting and alternate members to the Fort Worth Wholesale Customer Advisory Committee for the October 1, 2020—September 30, 2021 period. PRESENTER: Mike Curtis, Managing Director SUMMARY: City Council is being asked to appoint a voting member and an alternate to the Wholesale Customer Advisory Committee for both water and wastewater. The appointment is for a one-year term. GENERAL DESCRIPTION: Several Tarrant County cities purchase treated water from the City of Fort Worth and have their wastewater treated by Fort Worth. The City of North Richland Hills is one of those customer cities. The agreement between the cities and Fort Worth for the purchase of treated water and wastewater outlines a committee that is made up of representatives from these customer cities. The name of the committee is the Wholesale Customer Advisory Committee (WCAC). The agreement specifies that the customer cities' governing body shall appoint a representative to be a voting member and a representative to be an alternate of the WCAC. The purpose of the WCAC is to consult with and advise Fort Worth, through the Water Director, on matters pertaining to conservation, wholesale planning, improvement, grants, wholesale rate studies, administration, and budgets. The WCAC has also established by-laws governing the election of officers. The current members appointed by Council are Mike Curtis, Managing Director, as the voting member and Karen Manila, Assistant City Manager, as the alternate member. The Council is being asked to make an appointment for the voting member and the alternate to serve on the WCAC for both water and wastewater for the period from October 1, 2020 to September 30, 2021. Attached is the form that will be completed once the appointments are made. Staff recommends keeping the voting members the same for the proposed time beginning October 1, 2020 and ending September 30, 2021. IrLp NOKTH KICHLAN HILLS RECOMMENDATION: Approve Mike Curtis, Managing Director, as the voting member, and Karen Manila, Assistant City Manager, as the alternate member for the Wholesale Customer Advisory Committee for both water and wastewater. FoRTWORTRO APPOINTMENT FORM Wholesale Water and Wastewater Customer Advisory Committee DATE: October 1. 2020 WHOLESALE CUSTOMER: City of North Richland Hills Check all that apply: ❑x Water ❑x Wastewater The following individuals have been officially appointed by the CUSTOMER's GOVERNING BODY, under the terms of the Wholesale Contract for Services, Section 15, as the VOTING MEMBER and ALTERNATE for the Water and/or Wastewater System Advisory Committee. The term is for the Fiscal Year beginning October 1,2020 through September 30, 2021. Voting Member: Alternate Member Mike Curtis Karen Manila Name Name Managing Director Assistant City Manager Title Title (817) 427-6400 (817) 427-6003 Office Phone Office Phone N/A N/A Cell Phone Cell Phone _IYYC';IVlYVI`��t�)Yb,llIY�X C",�Nl1Y _�6lY,Y,aYYbIIaY�t�)YbllIY�X C;,�'NIYY, Email Address Email Address Mailing Address: Mailing Address: 4301 City Point Drive 4301 City Point Drive North Richland Hills, TX 76180 North Richland Hills, TX 76180 Official Seal Signature of Mayor/Board President Please complete and return as soon as possible: WaterWho.e al (.a>tf°c�r(Nvc�r-t1ztexas. c�:v or City of Fort Worth Water Department Billing Section/Wholesale P. O. Box 870 Fort Worth, Texas 76101 "K NOKTH KICHLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: SUP 2020-08, Ordinance No. 3681, Public hearing and consideration of a request from Henry Quigg for a special use permit for a quick service restaurant at 5600 Rufe Snow Drive, being 1.98 acres described as Lot 1 , Block 35, Holiday West Addition. PRESENTER: Clayton Comstock, Planning Director SUMMARY: On behalf of Rufe Snow Plaza II LTD, Henry Quigg is requesting a special use permit for a quick service restaurant on 1.98 acres located at 5600 Rufe Snow Drive. GENERAL DESCRIPTION: The site is located at the northeast corner of Rufe Snow Drive and Buenos Aires Drive. The property is currently developed as a multi-use shopping center. The applicant proposes to renovate and remodel a portion of a former restaurant space on the southern endcap of the building for a new tenant, ��,r�rn„ , , Ir�,iica,,lKi„Iraq. A site plan for the proposed development is attached. Planned improvements to the site include the remodel and finish out of the interior space; construction of a drive through lane with menu boards and canopy; and the installation of landscaping, a sidewalk, and building signage. The proposed conditions of approval for this special use permit are attached. The zoning ordinance provides that special use permits may establish reasonable conditions of approval on the operation and location of the use to reduce its effect on adjacent or surrounding properties. These conditions are based on the applicant's proposed development of the property and Development Review Committee recommendations, and include the items described in detail below. Land use In 2015, the zoning ordinance was amended to create new land use types for restaurants. One of the land use types is "quick service restaurant," commonly referred to as a fast food restaurant. This land use requires approval of a special use permit in the C-1 (Commercial) zoning district. Drive-through standards and requirements The zoning ordinance includes design standards for restaurants that provide drive- through service. The proposed construction complies with all drive-through standards except as noted below. The applicant is requesting approval of the following modified standards as part of the planned development district. "K NOKTH KICHLAND HILLS • Drive through lanes and pickup windows are not permitted to be located between the building and a public street. The proposed site layout shows these features located between the building and Buenos Aires Drive. These features are already located in this area as they were constructed as part of a previous restaurant that occupied the space. • The traffic flow in the drive-through lane is counter to normal traffic flow directions. In order to enhance safety in the area on the south side of the building, the drive aisle would be converted to a one-way eastbound traffic flow. The site plan indicates the overall width of the drive aisle would be reduced to 20 feet, providing a 10-foot wide drive-through lane and 10-foot wide bypass/travel lane. Pavement markings would be added to direct traffic flow. Landscaping In order to soften the appearance of the drive-through lane from the street, a landscaped area would be provided adjacent to Buenos Aires Drive. The proposed improvements are shown on the site plan exhibit and include the following elements- 1. Pavement would be removed to establish a landscape planting area and sidewalk adjacent to Buenos Aires Drive. 2. Shrubs would be installed in the planting area to create a buffer between the drive- through lane and the street. The shrubs include 17 Texas sage and 15 Chinese holly. 3. A four-foot wide sidewalk would be constructed between the shrub row and the property line. Since the sidewalk would be located on private property, a sidewalk easement would need to be dedicated to correspond to the location of the sidewalk. Refuse container The existing refuse container enclosures behind the building do not comply with the standards contained in Section 118-874 of the zoning ordinance. The Development Review Committee recommends that at least one enclosure be reconstructed to comply with these standards. Preferably, the reconstructed enclosure would be the one that the proposed tenant would use on a regular basis. LAND USE PLAN: This area is designated on the Land Use Plan as Retail Commercial. This designation provides sites for community and regional shopping centers, commercial establishments, and employment centers. These sites are typically located on highways and major thoroughfares at key intersections. CURRENT ZONING: The property is currently zoned C-1 Commercial. This district is intended to provide for development of retail service and office uses principally serving community and regional needs. The district should be located on the periphery of residential neighborhoods and be confined to intersections of major arterial streets. It is also appropriate for major retail corridors as shown on the comprehensive plan. "K NOKTH KICHLAND HILLS SURROUNDING ZONING ( LAND USE: NORTH C-1(Commercial) Retail Commercial Vacant WEST C-1(Commercial) Retail Commercial Retail and automotive service uses SOUTH C-1(Commercial) Retail Commercial Quick service restaurant EAST R-7-MF(Multifamily) High Density Residential Apartment complex(Shadow Creek) PLAT STATUS: The property is platted as Lot 1, Block 35, Holiday West Addition. PLANNING AND ZONING COMMISSION: The Planning and Zoning Commission will consider this item at the March 4, 2021, meeting. If the Commission issues a recommendation to City Council, staff will brief City Council of their recommendation at the March 8, 2021, meeting. RECOMMENDATION: Approve Ordinance No. 3681. ......................................................."I'l""I'll""I'll'll""I'll""I'll",lI..........I................... ..............."I'll"I"I'll............... VNVAVH ..................... .............. ...................................................................................................................... (D ............................. ............ Nvoll"I'll"I'll (D U- o ...................... ..................................I................. ............... ............................................ 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J�07Prr��� a/i /rr, ! /�.,/i/1l l/' ,,,,,�/llli I'17>l7.,/./! �ii/il ii... j//ii //,.�,� ;,,J�II,,,,Jl/�///%/% � /, /G �// �,✓/, /�/�» ,,,,����lli//�%i���/,rl/./������� l/r�� ,����r/ /,,ai✓rir/rr�//�1������lf/� r��l%/r//��j/�r������/� / oil r rr�Wil �j /� jl .: //� rF G, � /� a rb >a✓i� �r Ir 0 (/ � % >, �/,i�/ter �iJf� ✓ l � / Sll � YIYIII (6 i NN a O a 4 Op a� re uull — i m — o N ono° c O N no d� O II ✓ / r / / ��I i E ,r,; r ""'ll' l it of �°' ✓l p f l//'///r/////ii/i//�%�llhl>r/ ` � o c o CO s O o rNn a or b I �y O m m o 11 � OOQ w Q .1,I� x L s Q o t k4FItH PUBLIC HEARING NOTICE NORTH RICHLAND HILLS CASE: SUP 2020-08 -OWNER- -MAILING_ADDRESS- tuue to recent severe weather and -CITY—STATE- -ZIP- rn dews )read Il�rawer outages, the III'°°1annli n and Zonlng Coirriirrilssuon Il�ruuIbIIiic Iliearliigt that was a ru gl inalll ssha(luu ed for ���'ebruary 1 8, 2021, limas Ibeen uresshauluu ed to Ilt arch 4, 2021 You are receivingthis notice because you area property owner of record within 200 feet of the property Y p p Y p p Y requesting a special use permit as shown on the attached map. APPLICANT Henry Quigg LOCATION 5600 Rufe Snow Drive REQUEST Public hearing and consideration of a request from Henry Quigg for a special use permit for a quick service restaurant at 5600 Rufe Snow Drive, being 1.98 acres described as Lot 1, Block 35, Holiday West Addition. DESCRIPTION Proposed remodel to add a Smoothie King quick service restaurant with drive- through service to the existing building PUBLIC HEARING DATES Planning and Zoning Commission 7:00 PM Thursday, February 18, 2021 City Council 7:00 PM Monday, March 8, 2021 MEETING LOCATION In compliance with the Texas Open Meetings Act and in accordance with Section 418.016 of the Texas Government Code and such action issued by IIILIS the Governor of Texas on March 16, 2020, the Enhanced sanitation protocols,social North Richland Hills City Council and Planning and Zoning Commission will conduct their regular distancing, and wearing of face coverings meetings in the Council Chambers,4301 City Point are in effect for all public meetings. Drive, North Richland Hills, Texas, or via video conference. People interested in submitting letters of support or opposition are encouraged to contact the Planning&Zoning Department for additional information. Letters must be received by the close of the City Council public hearing. Because changes are made to requests during the public hearing process, you are encouraged to follow the request through to final action by City Council. Planning and Zoning Department 1 4301 City Point Drive - NRH, TX 76180 817-427-6300 1 www.nrhtx.com I planning@nrhtx.com FOR MORE INFORMATION, VISIT NRHTX.COM/MAP TRINIDAD uj EAGLE CREST Pill 0 z uj Ul 0 (ALLEY) BUENOSAIRES BROWNING 10: 0 0 04 L-j T-- LJ 7-� 4w 114 III V. 11 id Y NOM 14 0 )21 H I �49 alOVO 0211'3n7i3 013591 NIVA38 Gi VEMV 03SSV810 �3V3HIIIO-A'6 VUV iAA)4jVA1aJlS:3101M V M AN 3A1HU S3H1V SON3ne NO I 10 SON I Planning and Zoning Department 4301 City Point Drive - NRH, TX 76180 817-427-6300 1 www.nrhtx.com I planning@nrhtx.com NOTIFIED PROPERTY OWNERS SUP 2020-08 ABERFELDY PROPERTIES INC PO BOX 1287 NORTHBROOK IL 60065 AHSU LLC 7219 BROOK DR CO LLEYVI LLE TX 76034 BIGDOG LLC 6395 LOWELL RD GIBBON NE 68840 HAMMONDS, MARK 6700 BUENOSAIRES DR NORTH RICHLAND HILLS TX 76180 INDEPENDENT BUILDERS INC PO BOX 323 GRAPEVINE TX 76099 LUI, IVY K PO BOX 4369 HOUSTON TX 77210 MOUNTAINPRIZE INC PO BOX 2437 SMYRNA GA 30081 PS TEXAS HOLDINGS LTD PO BOX 25025 GLENDALE CA 91221 RFI SHADOW CREEK LLC 5221 N O'CONNOR BLVD STE 600 IRVING TX 75039 RUFE SNOW PLAZA II LTC 5930 LBJ FWY STE 400 DALLAS TX 75240 October 22, 2020 Planning &Zoning 4301 City Point Drive RICH MOND illRO1111FI North Richland Hills, Texas arc;hk,ec;ture & pIanriurrg 76180 RE: Smoothie King 5600 Rufe Snow Drive#100 Lot 1 Blk 35 Holiday West Addition Mr. Husband: Please accept this letter, on behalf of owners, for a SUP for a drive-thru. This permit is for a Smoothie King to reopen an existing drive-thru service that existed prior at this location. This request does not modify the existing building other than to update the drive thru windows in the existing openings. The drive-thru will allow for a four car stack with an order board at the third car back from the window. This amount of stacking four cars is their standard design. Please feel free to contact me if there are any questions or comments regarding this submittal. Best Regards, Henry S. Quigg HSQ/swq cc: File 2873 12200 IN.Sii:eirnimons 1Freeway, Suute 317 � D Illlas, X 75234 '72A,84,597'7 � 17w 972.484.8641 � www.irg ar6h,cu oim ORDINANCE NO. 3681 SPECIAL USE PERMIT CASE SUP 2020-08 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS AMENDING THE ZONING ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, AND THE ZONING MAP OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BY APPROVING A SPECIAL USE PERMIT FOR A QUICK SERVICE RESTAURANT LOCATED AT 5600 RUFE SNOW DRIVE; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING FOR SEVERABILITY; ESTABLISHING A PENALTY; PROVIDING FOR SAVINGS; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills, Texas is a home-rule municipality located in Tarrant County, Texas acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the Zoning Ordinance of the City of North Richland Hills regulates and restricts the location and use of buildings, structures, and land for trade, industry, residence, and other purposes, and provides for the establishment of zoning districts of such number, shape, and area as may be best suited to carry out these regulations; and WHEREAS, the City Council has previously passed an ordinance adopting the Vision203O Land Use Plan as the primary document on which to base all zoning, platting, and other land use decisions; and WHEREAS, the Vision203O Land Use Plan map provides guidance for future development in conformance with the adopted Vision203O Land Use Plan; and WHEREAS, the owner of the property containing approximately 1.98 acres of land located at 5600 Rufe Snow Drive (the "Property") has filed an application for a special use permit to construct a quick service restaurant; and WHEREAS, the Planning and Zoning Commission of the City of North Richland Hills, Texas held a public hearing on March 4, 2021, and the City Council of the City of North Richland Hills, Texas, held a public hearing on March 8, 20217 with respect to the special use permit described herein; and Ordinance No. 3681 SUP 2020-08 Page 1 of 4 WHEREAS, the City has complied with all requirements of Chapter 211 of the Local Government Code, the Zoning Ordinance of the City of North Richland Hills, and all other laws dealing with notice, publication, and procedural requirements for rezoning the Property; and WHEREAS, upon review of the application, and after such public hearing, the City Council finds that granting the request herein furthers the purpose of zoning as set forth in the Zoning Ordinance of the City of North Richland Hills and that the zoning change should be granted, subject to the conditions imposed herein; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: That the Zoning Ordinance of the City of North Richland Hills is hereby amended by approving a special use permit to authorize a quick service restaurant on Lot 1, Block 35, Holiday West Addition, commonly referred to as 5600 Rufe Snow Drive, as described and shown on Exhibit "A," attached hereto and incorporated for all purposes. Section 2: The City Council finds that the information submitted by the applicant pursuant to the requirements of the Zoning Ordinance is sufficient to approve the special use permit in accordance with the Land Use and Development Regulations, set forth in Exhibit "B," and the Special Use Permit Exhibits, set forth in Exhibit "C," both of which are attached hereto and incorporated for all purposes. Section 3: That the official zoning map of the City of North Richland Hills is amended and the Planning Director is directed to revise the official zoning map to reflect the approved special use permit, as set forth above. Section 4: The use of the property described above shall be subject to all applicable regulations contained in the Building and Land Use Regulations and all other applicable and pertinent ordinances of the City of North Richland Hills. Section 5: The zoning district as herein established has been made in accordance with a comprehensive plan for the purpose of promoting the health, safety, morals and general welfare of the community. Section 6: This Ordinance shall be cumulative of all provisions of ordinances and of the Code of Ordinances of the City of North Richland Hills, Texas, as amended, except when the provisions of this Ordinance are in direct conflict with the provisions of such ordinances and such code, in which event the conflicting provisions of such ordinances and such code are hereby repealed. Ordinance No. 3681 SUP 2020-08 Page 2 of 4 Section 7: It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable, and if any section, paragraph, sentence, clause, or phrase of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining sections, paragraphs, sentences, clauses, and phrases of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional section, paragraph, sentence, clause or phrase. Section 8: Any person, firm or corporation violating any provision of the 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 9: All rights and remedies of the City of North Richland Hills are expressly saved as to any and all violations of the provisions of any ordinances governing zoning that have accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. Section 10: 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 11: This ordinance shall be in full force and effect immediately following publication as required by Section 10 hereof. AND IT IS SO ORDAINED. PASSED AND APPROVED on the 8th day of March, 2021. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor Ordinance No. 3681 SUP 2020-08 Page 3 of 4 ATTEST: Alicia Richardson City Secretary / Chief Governance Officer APPROVED AS TO FORM AND LEGALITY: Maleshia B. McGinnis, City Attorney APPROVED AS TO CONTENT: Clayton Comstock, Planning Director Ordinance No. 3681 SUP 2020-08 Page 4 of 4 Exhibit A— Property Description—Ordinance No. 3681— Page 1 of 1 Special Use Permit Case SUP 2020-08 Lot 1, Block 35, Holiday West Addition 5600 Rufe Snow Drive, North Richland Hills,Texas Being Lot 1, Block 35, Holiday West Addition, Section 8, according to the plat thereof recorded in Volume 388-159, Page 79, Plat Records,Tarrant County,Texas. Exhibit B— Land Use and Development Regulations —Ordinance No. 3681— Page 1 of 2 Special Use Permit Case SUP 2020-08 Lot 1, Block 35, Holiday West Addition 5600 Rufe Snow Drive, North Richland Hills,Texas This Special Use Permit (SUP) must adhere to all the conditions of the North Richland Hills Code of Ordinances, as amended, and the base zoning district of C-1 (Commercial). The following regulations shall be specific to this Special Use Permit. Where these regulations conflict with or overlap another ordinance, easement, covenant or deed restriction, the more stringent restriction shall prevail. A. Permitted land uses. A special use permit is authorized for a quick service restaurant on the property. B. Site development standards. Development of the property shall comply with the development standards of the C-1 (Commercial) zoning district and the standards described below. 1. The site improvements must be constructed as shown on the site plan attached as Exhibit „C .11 2. Landscaping must be installed as shown on the site plan attached as Exhibit "C" and the standards described below. a. All landscaped areas must be watered by an automatic underground irrigation system equipped with rain and freeze sensors. All large and ornamental trees must be on bubbler/drip irrigation on separate zones from turf grass. b. The landscaping must be installed prior to the issuance of a certificate of occupancy. 3. The drive-through components on the site must comply with Section 118-633(26) of the zoning ordinance and the standard described below. a. The drive-through lane improvements must be constructed as shown on the site plan attached as Exhibit "C," including lane widths, pavement markings, and menu board locations. b. The drive-through stacking lane and pickup window may be located on the south side of the building between the building and Buenos Aires Drive. 4. A four-foot wide sidewalk must be constructed adjacent to Buenos Aires Drive. The sidewalk may be located at the inside edge of the right-of-way, provided a sidewalk easement is dedicated that corresponds to the location of the sidewalk. 5. An enclosure for at least one (1) refuse container must be constructed. The enclosure must comply with the standards contained in Section 118-874 of the zoning ordinance. C. Building design standards. Building design and appearance must comply with the building elevations attached as Exhibit "C" and the standards described below. 1. The existing lighting fixtures on the building must be replaced with conforming fixtures that comply with Section 118-728 of the zoning ordinance. 2. Signs on the site must comply with Chapter 106 (Signs) of the Code of Ordinances. Exhibit B— Land Use and Development Regulations —Ordinance No. 3681— Page 2 of 2 Special Use Permit Case SUP 2020-08 Lot 1, Block 35, Holiday West Addition 5600 Rufe Snow Drive, North Richland Hills,Texas D. Amendments to Approved Special Use Permits. An amendment or revision to the special use permit will be processed in the same manner as the original approval. The application for an amendment or revision must include all land described in the original ordinance that approved the special use permit. E. Expiration. The special use permit will expire three (3) years from the effective date of this ordinance. If the quick service restaurant is still in operation at the time of expiration, the business shall be considered a legal non-conforming use and may continue operation subject to the standards described in Section 118-153 of the zoning ordinance. F. Administrative Approval of Site Plans. The development is subject to final approval of a site plan package. Site plans that comply with all development-related ordinances, and this Ordinance may be administratively approved by the Development Review Committee. The city manager or designee may approve minor amendments or revisions to the standards provided the amendment or revisions does not significantly: 1. Alter the basic relationship of the proposed uses to adjacent uses; 2. Change the uses approved; 3. Increase approved densities, height, site coverage, or floor areas; 4. Decrease on-site parking requirements; 5. Reduce minimum yards or setbacks; or 6. 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PRESENTER: Clayton Comstock, Planning Director SUMMARY: On behalf of VRE Davis LLC, Park/Wall Limited Partnership, and Avatar Ventures LLC, Bohler Engineering is requesting approval of a replat of Lots 1R, 3R, and 4R, Block 1, Gibson Addition. This 3.31-acre property is located at 8616 and 8624 Davis Boulevard and 8612 Precinct Line Road. GENERAL DESCRIPTION: The property is located at the northeast corner of Precinct Line Road and Davis Boulevard. The property includes three existing lots. Proposed Lots 1 R and 4R are intended for development of a car wash and auto repair shop, respectively. Proposed Lot 3R is currently developed as a salon. The existing lots were platted in 2000 and 2007. The replat would make the following revisions to the previous plat. 1. The internal lot lines would be revised to accommodate the proposed development on the site in accordance with the current zoning standards. 2. A new 24-foot fire lane, access, and utility easement would be dedicated to provide all lots access to an existing driveway on Davis Boulevard and a proposed driveway on Precinct Line Road. The existing 15-foot mutual public access easement would be abandoned and replaced by the new easement. 3. New easements would be added to accommodate water and drainage improvements associated with the development. The plat does not alter or remove any recorded covenants or restrictions, if any, on the property. As required by Section 212.015(f) of the Texas Local Government Code, written notice of this replat will be mailed to each owner of the lots in the Gibson Addition that are within 200 feet of the lots being replaced. The notice is required to be sent no later than 15 days after approval of the plat by City Council. "K NOKTH KICHLAND HILLS LAND USE PLAN: This area is designated on the Land Use Plan as Retail Commercial. This category provides sites for community and regional shopping centers, commercial establishments, and employment centers. These sites are typically located on highways and major thoroughfares at key intersections. Commercial uses should be prioritized at key intersections where retail is most likely to thrive. CURRENT ZONING: The property is currently zoned NR-PD (Nonresidential Planned Development). This NR-PD district was approved by City Council on August 24, 2020, (Ordinance 3662) to authorize the development of the property for a car wash and auto repair shop uses and address specific site development standards. TRANSPORTATION PLAN: The development has frontage on the following streets. Right-of-way dedication is not required for this plat. ME North Tarrant Parkway P6D Major Arterial Suburban 6-lane divided roadway Commercial variable right-of-way width Precinct Line Road P6D Major Arterial Suburban 6-lane divided roadway Commercial variable right-of-way width SURROUNDING ZONING ( LAND USE: NORTH C-1(Commercial) Retail Commercial Tire shop(Discount Tire) PD(Planned Development) Retail Commercial Independent senior living apartments WEST (under construction) C-1(Commercial) High Density Residential Vacant commercial lots SOUTH C-1(Commercial) Retail Commercial Bank/Auto repairshop(NTB) EAST City of Colleyville Commercial(perColleyville Single-family residences land use map) PLAT STATUS: The property is currently platted as Lots 1 and 4, Block 1, Gibson Addition. PLANNING AND ZONING COMMISSION: This plat was scheduled for action by the Planning and Zoning Commission at the February 18, 2021 , meeting. However, due to severe winter weather and widespread power outages, this meeting was canceled. As a result, the replat is considered approved by inaction of the Commission, as required by Section 212.009 of the Texas Local Government Code. DRC REVIEW & RECOMMENDATION: The Development Review Committee (DRC) recommends approval of the plat, which is in conformance with the subdivision regulations and the zoning ordinance. "K NOKTH KICHLAND HILLS RECOMMENDATION: Approve RP 2020-11. LL o CN 0) 0 0) (D 0 :mu fl, 0 um CY) mu iiiiiiijIfillillill LO 0 A 0 0 3 .......... 1111111111114�wll.................................................... 3NII JLON133dd ............... limllllmu ................. .......... ... ....... ........... ............. . ............... ................. ............... .......... ............... E ' 5 2 0 c 0 III IIWr ........... ............... 0............ c 's 2 ............... 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IrLp NOKTH KICHLAN HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Ordinance No. 3681 temporarily suspending the fees imposed under Appendix A, Fee Schedule, Chapter 98, of the City of North Richland Hills Code of Ordinances, for the issuance of permits and building inspections for home repairs related to the February 15, 2021 Tarrant County Declaration of Disaster. PRESENTER: Clayton Comstock, Director of Planning SUMMARY: February's winter storms wreaked havoc on the residents and businesses of our community. Significant damage to residents' homes were reported during the storm, including burst water pipes and irrigation lines, collapsed roofs and ceilings, fire damage, and busted water heaters and furnaces. The City encourages homeowners to seek permits for repairs to ensure the work is inspected by the City's building inspectors. To alleviate the financial impact to North Richland Hills homeowners and encourage use of courtesy inspections by our qualified professional building inspectors, the City of North Richland Hills is proposing to temporarily waive building permit and inspection fees related to the February 2021 winter storm event for 90 days. GENERAL DESCRIPTION: The following fees found in Appendix A, Fee Schedule, Chapter 98 of the City of North Richland Hills Code of Ordinances are proposed to be temporarily waived for a period of 90 days effective as of February 15, 2021 , for any repair to a home or business for damage caused by the February 2021 winter storm: (a) The $43 flat fee for plumbing for a residential or commercial water line repair (Appendix A, Chapter 98, Table 4, Category 6, Line 14); (b) The $39 flat fee for simple repair to a home that suffered water damage such as replacement of sheetrock (Appendix A, Chapter 98, Table 1(b), Line 3); (c) The $39 base fee for larger repairs to a home that suffered water damage involving sheetrock replacement and reinstallation of electrical, mechanical and/or plumbing (Appendix A, Chapter 98, Table 1(b), Line 4); IrLp NOKTH KICHLAN HILLS (d) The $39 base fee for major repairs to a home that suffered severe water damage involving more than 25% of the home's building area (Appendix A, Chapter 98, Table 1(b), Line 5); (e) A $39 permit fee discount applied to repairs of a commercial buildings (Appendix A, Chapter 98, Table 1(a)). The Chief Building Official shall be authorized to waive or refund fees not specifically listed above if the permit is necessary to repair damage to property caused by the February 2021 winter storm event. This waiver of fees is proposed to be applied to all winter storm related permits and inspections applied for between February 15, 2021 and May 14, 2021 ("suspension period"). All permits and inspections applied for after May 14, 2021 would revert to paying the full permit fee. Refunds for fees already paid during the suspension period would also be approved to be processed. The Chief Building Official, or his designee, will determine if the requested building permit is a result of damage caused by the February 2021 winter storm event. Fee waivers and refunds are intended for the benefit of the North Richland Hills homeowner, tenant, or property owner, not the contractor. RECOMMENDATION: Approve Ordinance 3681 . ORDINANCE NO. 3681 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, TEMPORARILY SUSPENDING FEES IMPOSED UNDER APPENDIX A, FEE SCHEDULE, CHAPTER 98, OF THE CITY OF NORTH RICHLAND HILLS CODE OF ORDINANCES FOR INSPECTION FEES AND HOME REPAIRS RELATED TO THE FEBRUARY 15, 2021 TARRANT COUNTY DECLARATION OF DISASTER; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES AND REPEAL OF CONFLICTING PROVISIONS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills, Texas is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, on February 12, 2021, pursuant to Section 418.014 of the Texas Government Code, the Governor of the State of Texas declared a state of disaster in all 254 counties in Texas due to severe winter weather; and WHEREAS, on February 15, 2021, the County Judge of Tarrant County declared a local state of disaster for all of Tarrant County, including the City of North Richland Hills; and WHEREAS, the citizens and businesses of the City of North Richland Hills have suffered damage to property resulting from the winter storm that impacted Tarrant County; and WHEREAS, the North Richland Hills City Council has determined that measures must be taken to mitigate the financial impact to North Richland Hills citizens and to protect or rehabilitate property; and WHEREAS, the North Richland Hills City Council now desires to temporarily suspend certain building permit and inspection fees as set forth in Appendix A, Fee Schedule, if the repair work is related to the February 2021 winter storm; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: SECTION 1. The recitals set forth above are found to be true and correct and are incorporated herein into this Ordinance. SECTION 2. The following fees found in Appendix A, Fee Schedule, Chapter 98 of the City of North Richland Hills Code of Ordinances shall be temporarily waived for any repair to a home or business caused by the February 2021 winter storm: (a) The $43 flat fee for plumbing for a residential or commercial water line repair (Appendix A, Chapter 98, Table 4, Category 6, Line 14); (b) The $39 flat fee for simple repair to a home that suffered water damage such as replacement of sheetrock (Appendix A, Chapter 98, Table 1(b)7 Line 3); (c) The $39 base fee for larger repairs to a home that suffered water damage involving sheetrock replacement and reinstallation of electrical, mechanical and/or plumbing (Appendix A, Chapter 98, Table 1(b), Line 4); (d) The $39 base fee for major repairs to a home that suffered severe water damage involving more than 25% of the home's building area (Appendix A, Chapter 98, Table 1(b), Line 5); (e) A $39 permit fee discount applied to repairs of a commercial buildings (Appendix A, Chapter 98, Table 1(a)). SECTION 3. The Chief Building Official may waive or refund fees not listed herein if the permit is necessary to repair damage to property caused by the February 2021 winter storm event. SECTION 4. It shall be the responsibility of the Chief Building Official, or his designee, to determine if the requested building permit is a result of damage caused by the February 2021 winter storm event. SECTION 5. This waiver of fees shall be applied to all winter storm related permits and inspections applied for between February 15, 2021 and May 14, 2021 ("Suspension Period"). All permits and inspections applied for after May 147 2021 shall pay the full permit fee as outlined in Appendix A, Fee Schedule, Chapter 98 of the City of North Richland Hills Code of Ordinances. SECTION 6. The Chief Building Official may refund fees already paid during the Suspension Period for building permits and inspections related the February 2021 winter storm event. SECTION 7. Fee waivers and refunds shall be for the benefit of the North Richland Hills homeowner, tenant, or property owner. SECTION 8. All otherfees set forth in Appendix A not modified herein in this Ordinance remain unchanged and in full force and effect. SECTION 9. This Ordinance shall be cumulative of all provisions of the Code of Ordinances of the City of North Richland Hills, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 10. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 11. All rights and remedies of the City of North Richland Hills are expressly saved as to any and all violations of the provisions of any ordinances in the Code of Ordinances of the City of North Richland Hills that have accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 12. This ordinance shall be in full force and effect from and after its passage. PASSED AND APPROVED on this 8th day of March, 2021. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson, City Secretary APPROVED AS TO FORM AND LEGALITY: Maleshia B. McGinnis, City Attorney APPROVED AS TO CONTENT: Clayton Comstock, Director of Planning "I r*4w NOLa`C`H KIC"HLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Receive the Fiscal Year 2020 Audited Financial Report and Fiscal Year 2020 Single Audit PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Mark Mills, Director of Finance, will provide an introduction for the results of the Fiscal Year ("FY") 2020 Comprehensive Annual Financial Report ("CAFR") for the City and the FY 2020 Single Audit. A representative of Whitley Penn, LLP will present the audit opinion. GENERAL DESCRIPTION: The auditor's opinion for the City's FY 2020 financial statements is an unmodified opinion or "clean" opinion again this year. This means the auditors found that the Financial Statements of the City of North Richland Hills fairly represent the City's financial position. Overall, North Richland Hills' results of operations during FY 2020, as well as the financial position at year-end, reflect a sound fiscal condition. This is in fulfilment of City Council's goal of Financial Stability. The auditor's single audit opinion is also unmodified. The single audit is an organization-wide audit performed by an independent auditor, intended to provide assurance to the United States Federal Government that a non-federal entity has adequate controls in place and is generally in compliance with program requirements. This audit typically encompasses both financial and compliance components and must be conducted if an entity expends $750,000 or more of federal or state assistance (i.e. grants). Article XII, Section 6 of the City Charter requires an annual audit of the City's finances, and a copy of the audit report shall be furnished to each member of the City Council and the City Manager. An electronic copy of the CAFR will be made available on the City's website. Individuals may also request a copy on a compact disc from the Finance Department and hard copies will be available at City Hall and Library for review. RECOMMENDATION: Receive the Fiscal Year 2020 Audited Financial Report and Fiscal Year 2020 Single Audit as presented. III ' i ! t AP y Fiscal 20191-20 City of North Richland Hills,Texas www.nrhtx.com About the Cover North Richland Hills' new City Hall opened for business March 2016. The majority of City departments are housed at this location along with the city's Public Safety operations and Municipal Court. Construction of the new City Hall was approved by North Richland Hills voters in 2012. Designed by: Budget & Research Department Layout by: www.creativemarket.com/brochuresfactory Picture provided by: Communications Department City of North Richland Hills, Texas CITY OF NORTH RICHLAND HILLS, TEXAS Comprehensive Annual Financial Report Year Ended September 30, 2020 City Officials Oscar Trevino Mayor Scott Turnage Place 6 Mayor Pro Tem Tito Rodriguez Mason Orr Deputy Mayor Pro Tem Associate Mayor Pro Tem Place 1 Place 4 Rita Wright Oujesky Suzy Compton Place 2 Place 3 Mike Benton Tim Welch(*) Place 5 Place 7 Mark Hindman City Manager Paulette Hartman Deputy City Manager Karen Manila Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director of Infrastructure & Capital Projects Mark Mills Director of Finance (*) Tim Welch resigned from City Council in December 2020. Kelvin Deupree was appointed by the City Council to fill the unexpired portion of his term on January 11, 2021. Prepared by: Finance Department North Richland Hills,TX 2020 CAFR N (�ORTH KICHLAND H I L L City f Choice ACKNOWLEDGEMENTS The Comprehensive Annual Financial Report was prepared by the Department of Finance, Office of Accounting: Karen Manila Assistant City Manager Mark Mills, CGFO Director of Finance Financial Reporting Staff Glenn Mizell, CMA,PMP, CGFO, Assistant Director Amanda Brown, Accountant II Andrew MacNeal, CGFO, Accountant II Amanda Townsend, Grants Specialist Donna Carman, Accounting Technician Lisa Ramirez, Accounting Technician Special appreciation is given to: Budget and Research Department Robert Myers, Director Jennipher Castellanos, CGFO, Senior Budget Analyst Anne Adiele, Budget Analyst Human Resources Department Patrick Hillis, Director Cameron Rowland, Assistant Director Ellen Cooper, Human Resources Analyst Nancy Holcomb,Payroll Specialist Jody Anderson, Benefits Coordinator Sabrina Markum, Human Resources Generalist And to all the departments and personnel throughout the City whose extra effort to contribute timely financial data for their departments made this report possible. North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS TABLE OF CONTENTS Year Ended September 30,2020 Page Introductory Section Letter of Transmittal i Organization Chart vii Principal Officials viii GFOA Certificate of Achievement ix Financial Section Report of Independent Auditors 3 Management's Discussion and Analysis 7 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 22 Statement of Activities 24 Fund Financial Statements: Balance Sheet- Governmental Funds 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Statement of Net Position-Proprietary Funds 34 Statement of Revenues,Expenses and Changes in Fund Net Position- Proprietary Funds 36 Statement of Cash Flows -Proprietary Funds 37 Statement of Fiduciary Net Position- Fiduciary Fund 38 Statement of Changes in Fiduciary Net Position - Fiduciary Fund 39 Notes to Basic Financial Statements 41 Required Supplementary Information: Schedule of Changes in Net Pension Liability and Related Ratios - TMRS 83 Schedule of Pension Contributions - TMRS 84 Schedule of Changes in Net OPEB Liability and Related Ratios 85 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP Basis) and Actual: General Fund 86 Parks and Recreation Development Corporation Fund 87 Notes to Required Supplementary Information 88 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS TABLE OF CONTENTS(continued) Year Ended September 30,2020 Page Financial Section (continued) Other Supplementary Information: Non-major Governmental Funds: Combining Balance Sheet 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 97 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget(Non-GAAP Basis) and Actual: General Debt Service Fund 100 Promotional Fund 101 Donations Fund 102 Special Investigations Fund 103 Drainage Utility Fund 104 Crime Control District Fund 105 Traffic Safety Fund 106 Gas Development Fund 107 Internal Service Funds: Combining Statement of Net Position 110 Combining Statement of Revenues, Expenses and Changes in Net Position 111 Combining Statement of Cash Flows 112 Proprietary Funds: Schedule of Revenues, Expenses and Changes in Net Position- Budget (Non-GAAP Basis) and Actual Utility Fund 113 Aquatic Park 115 Golf 116 Facilities and Construction 117 Fleet Services 118 Self Insurance Fund 119 Information Technology 120 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS TABLE OF CONTENTS(continued) Year Ended September 30,2020 Table Page Statistical Section Financial Trends: Net Position by Component 1 124 Changes in Net Position 2 126 Fund Balances of Governmental Funds 3 130 Changes in Fund Balances of Governmental Funds 4 131 Revenue Capacity: Appraised and Taxable Value of Property 5 133 Property Tax Rates - Direct and Overlapping Governments 6 134 Principal Property Taxpayers 7 135 Property Tax Levies and Collections 8 137 Debt Capacity: Ratios of Outstanding Debt by Type 9 138 Direct and Estimated Overlapping Governmental Activities Debt 10 139 Computation of Legal Debt Margin 11 141 Pledged Revenue Coverage 12 142 Demographic and Economic Information: Demographic and Economic Statistics 13 143 Principal Employers 14 145 Full-time Equivalent City Government Employees by Function/Program 15 146 Operating Information: Operating Indicators by Function/Program 16 148 Capital Asset Statistics by Function/Program 17 150 Glossary 154 North Richland Hills,TX 2020 CAFR North Richland Hills,TX 2020 CAFR Introductory Section North Richland Hills,TX 2020 CAFR North Richland Hills,TX 2020 CAFR NORTH K I C H L A N D H I I.I.s TqRH THE CITY OF CHOICE Department of Finance March 8, 2021 To the Honorable Mayor, City Council Members, City Manager, and Residents of the City of North Richland Hills, Texas: We hereby issue the comprehensive annual financial report of the City of North Richland Hills, Texas (the "City") for the fiscal year ended September 30, 2020. This report consists of City management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in the report. To provide a reasonable basis for making these representations,management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles ("GAAP"). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by the CPA firm of Whitley Penn, LLP,the City's independent auditors. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2020, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management;and evaluating the overall financial statement presentation. The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the City's financial statements for the fiscal year ended September 30, 2020, are fairly presented inconformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis ("MD&A"). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. i North Richland Hills,TX 2020 CAFR Profile of North Richland Hills The City, incorporated in 1953, is a growing community located in the heart of the Dallas/Fort Worth Metroplex. The City's estimated population is approximately 71,500 for 2020. The City is also home to over 1,200 commercial and industrial businesses. The third largest city in Tarrant County,North Richland Hills("NRH")is only 10 minutes from downtown Fort Worth and 25 minutes from downtown Dallas. Interstate Loop 820 and Texas 121/183 ("Airport Freeway")traverse the City,providing freeway access to five additional interstates and numerous US and state highways. The City is also conveniently located 10 minutes from Dallas/Fort Worth International Airport and 15 minutes from Alliance Airport. D/FW International Airport has over 1,900 flights daily with non-stop service to all major North American cities and many overseas destinations. The Alliance development facilitates the transport of merchandise through both the Alliance airport and the Burlington Northern/Santa Fe Intermodal Facility. The City operates under a charter adopted in 1964 which provides for a Council-Manager form of government. The Mayor and seven Council members are elected at large. The City Council is responsible for all matters of policy as well as for levying taxes, securing revenues, authorizing expenditures of City funds, and incurring City debts. The City Manager is directly responsible to the City Council. An organizational chart follows to show the various levels of responsibility. The City provides a full range of services. These services include police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure;parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; and the operations of a water and wastewater system, a golf course, and a public waterpark. A private contractor, through a franchise agreement,provides solid waste collection and disposal services for the City. The annual budget serves as the foundation for the City's financial planning and control. The City maintains budgetary controls to ensure compliance with provisions in the annual budget adopted by the City Council. Annual operating budgets are adopted for the General Fund,certain Special Revenue Funds,Debt Service Funds,Enterprise Funds, and Internal Service Funds. Project-length financial plans are adopted for the Capital Project Funds. The level of budgetary control—the level at which expenditures/expenses cannot legally exceed the appropriated amount —is established at the fund level. Detail control is accomplished by maintaining appropriations, encumbrances, and expended balances by line item within each operating department, within each operating fund. All annual appropriations lapse at the end of the fiscal year. Budgetary data for proprietary funds is presented in the Other Supplemental Information section only since reporting on such budgets is not legally required. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. The City Manager is authorized to transfer budgeted amounts between departments within any fund. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year. Transfers of appropriations between funds are allowed by budget ordinance as passed by the City Council. Budget- to-actual comparisons are provided in the report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund, comparisons begin on page 85 in the required supplementary information segment of the financial statements. The comparisons for other governmental funds with appropriated annual budgets are presented in the other supplementary information of this report. ii North Richland Hills,TX 2020 CAFR Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy The City continues to grow as all major economic indicators are trending in the right direction and it remains geographically positioned as the main link between bustling downtown Fort Worth and affluent Northeast Tarrant County. Adjacent to the high socioeconomic level cities of Colleyville, Keller and Southlake;the City remains the third largest City in Northeast Tarrant County with approximately 71,500 people and is likely to reach 80,000 residents by 2030. Since 2010, the City has grown by 12.41%in total population, adding over 8,100 residents. Amidst the global pandemic, fiscal year 2020 saw continued growth in taxable sales, taxable property values and new home starts. Compared to the previous fiscal year, taxable sales grew by 7.7%, a$79 million increase. This growth was due to a strong mix of essential retail businesses alongside the increase in online retail sales, both of which benefitted from social distancing. Taxable sales are expected to nominally increase in Fiscal Year 2021 as non-essential businesses rebound under fewer restrictions while conditions improve. Taxable property value grew for the 8th straight year, this time over $181.4 million, reaching approximately $6.4 billion in net taxable value. Finally, the City continues steady residential growth, permitting 250 new single-family homes with an average value of over$375,000 and over 800 platted or shovel ready single-family lots in the pipeline. Residential growth was "by new home start"the most amongst Northeast Tarrant County cities. The City maintains a diverse mix of 1,200 brick and mortar businesses with 14 primary employers representing 5,000 full time jobs within the healthcare, finance, aerospace and supply chain sectors. While many professionals began to work from home due to the pandemic, the City was able to welcome 11 different office-based businesses adding 226 professional jobs and absorbing 101,948 square feet of space. These new additions contributed to a further reduction of the City's office vacancy rate from 12% to 11% in 2020 (historical high was 18% in 2017). Since the pandemic's start, suburban office demand has increased due to a desire for lower density workplaces and closer in proximity to professionals now working from home. The City continues to experience quality commercial development and revitalization thanks to high standards and the ability to adapt and reinvent itself. The pandemic did affect local retail and service-based industry growth. While the City welcomed 84 new businesses, it only resulted in a net increase of 10 businesses. Moreover, there was a net decrease of 19,000 square feet of occupied space due to the relocation of a 62,000 square foot Hobby Lobby to an adjacent community. Noteworthy,the 52-acre redevelopment pro]ect called City Point was not slowed by the pandemic. When complete, the $187 million mixed-use development will include 70,000 square feet of commercial space,roughly 370 single- family homes and approximately 450 multi-family residences. Construction of the public improvements began on time in 2020 with vertical construction (buildings) set to begin in late 2021,which will take 5 to 7 years. in North Richland Hills,TX 2020 CAFR Long-term financial planning In 2012,NRH voters authorized the construction of a new City Hall. The election authorized$48 million in general obligation debt for the project. The new facility is targeted to be the center of a new economic environment in the oldest part of the city. Located on the site of a former retail mall,the plans provide for mixed use where commercial and multi-family housing stimulate the revitalization of the area. The City Hall project was completed and occupied beginning in March 2016.As mentioned in the previous section,the City Point mixed use development,surrounding the City Hall complex,broke ground in 2020 with completion anticipated by 2028. In February 2003, the voters authorized the development of 22 street projects (arterial, collector, and residential), two drainage pro]ects, and four municipal facilities pro]ects with the passage of four propositions in the 2003 Bond Election. The authorized election package totaled $37,210,000 for the aforementioned projects. The City Council and management believed these projects were needed to improve infrastructure and provide essential services to its citizens. The last remaining $3.86 million from the 2003 authorization was issued in late 2020 and there are no amounts authorized that are unissued. At least annually,management reviews and updates long-range financial plans for the general operations of the City as well as the proprietary activities. Forecasts are prepared using conservative growth estimates for major sources of revenue. Maintaining this conservative approach,coupled with an aggressive debt repayment policy,has assisted the City in retaining a continuous favorable bond rating. Analysis is continuously updated to reflect new bond issues and the repayment thereof, as well as updates to estimates based on new developments, historical trends, changes in applicable legal requirements, and City Council and management priorities. The plans for the internal service funds include the accumulation of resources for meeting both current and future needs. For example, support services such as facilities, fleet, and information technology collect user fees to meet current maintenance needs as well as to meet future capital replacement needs. Similarly,the City's policy with regard to self-insurance premiums has been to collect sufficient amounts to cover current health and dental claims as well as additions to reserves for future claims. In fiscal years 2002 and 2003 the Self Insurance (Internal Service)Fund reserves of$3.1 million were depleted due primarily to spiraling inflation in the health care industry and unforeseeable extraordinary health claims. In fiscal year 2004, City Council adopted a strategy to rebuild reserves over a six-year period beginning in fiscal year 2005. Savings from changes in the health care plan, transfers from existing cash reserves in the General Fund and Water and Sewer Fund, and employee premiums were used and continue to re-establish the reserves. In both 2016 and 2017, the City once again experienced significant inflationary costs and extraordinary health claims, which necessitated the use of a portion of the rebuilt reserves. Management instituted procedures to address the rising costs in both active employee and retiree health care costs. These procedures have begun to take effect and the reserves continued to improve in 2020. Similar plans for the build-up of reserves exist for the City's enterprise operations. Funds are set aside to meet future capital replacement needs such as infrastructure replacement and capital asset acquisitions. This approach has allowed the City's water and sewer operation to meet the majority of its capital replacement needs with the issuance of minimal debt. Over the course of its history, NRH2O, the City's waterpark, has funded some new attractions and infrastructure improvements by utilizing cash reserves accumulated from operations. Annual analysis by City management of capital needs could result in the need for debt funding of future attractions and infrastructure improvements if deemed necessary. iv North Richland Hills,TX 2020 CAFR Cash many eg Went policies and practices The City's previous bank depository contract with JP Morgan Chase Bank,N.A. expired in 2019, the City initiated a solicitation process in early 2019 to secure another depository contract agreement. The selection process awarded the new contract to the incumbent, JP Morgan Chase Bank,N. A. for another three years with an option to extend for an additional two years. Cash temporarily idle during the year was invested in two public funds investment pools, agency and corporate securities, municipal securities (within Texas), and U.S. Treasury Notes. The maturities of the investments range from overnight to three years. The average yield for overnight investments for fiscal year 2020 was 1.71%, and the weighted average maturity ("WAM") was 29 days. The average yield on all other investments for fiscal year 2020 (yield at cost) was 2.30% compared to 1.61% for the prior year. The portfolio's WAM for all other investments at the end of the fiscal year was 657 days, which represents a 26-day decrease over last year's WAM of 683 days. At fiscal year-end approximately 85%of the portfolio was invested beyond one year, 8%was invested for one year or less, and the remaining 7%was invested in the overnight market. The City continues to use the services of PFM Asset Management, LLC as an investment advisor and overseer of the portfolio,which began on October 1, 2009. Risk many eg Went The City is exposed to various risks of loss related to torts;theft of,damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self-Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims.This policy covers City medical claims in excess of$175,000 per individual per year, and/or $10,386,756 in the aggregate for a 12-month period beginning on January 1, 2020. Self-Insurance Fund claims are funded by charges to other funds and employee, retiree, and dependent premiums. Additional information on the City's risk management activity can be found in the notes to the basic financial statements. Pension and other post-employment benefits The City participates in the Texas Municipal Retirement System ("TMRS"), an agency authorized by the State of Texas. Full-time City employees contribute a fixed percentage of their gross pay (currently 7%). TMRS participants are immediately vested in the funds they contribute plus allocated interest. Participants are vested in employer contributions after five years of credited participation. If participants withdraw from TMRS prior to five years of credited participation, they may withdraw from TMRS those funds they contributed plus interest earnings. The City has historically provided postretirement health and dental care benefits for certain retirees and their dependents. As of the current fiscal year, there were 190 retired employees receiving these benefits. Additional information on the City's pension arrangements and post-employment benefits can be found in the notes to the basic financial statements. City's Response to the COVID-19 Pandemic In February 2020 the President declared a national health emergency which necessitated a response that no one had anticipated. With over 70,000 residents to consider and care for,the Public Safety department logged over 350,000 hours related to responding to the health emergency. This included working with nursing homes and senior living communities to assess their needs,review all of the changing protocols, and assisting them obtaining much needed PPE. The City provided a location for drive-through COVID-19 testing provided by the State of Texas. The Library offered curbside to go and virtual activities to ensure residents and students have access to books and materials. Library staff utilized the Maker Spot area to create face shields that were provided to first responders. The v North Richland Hills,TX 2020 CAFR Economic Development department assisted over 180 City businesses to obtain $1.8 million in grants through the Small Business Assistance Program, more than any other city in Tarrant County outside of Arlington and Fort Worth. The City undertook several cost saving measures designed to mitigate the anticipated loss in revenue from the business activity shutdowns caused by the pandemic. The City also received $3,738,900 in CARES Act funding from the Federal Government through Tarrant County. The result of these actions were readily shown in the financial performance of the General Fund which reduced a planned use of reserves from $1,912,678 to $21,987. Awards Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to North Richland Hills for its comprehensive annual financial report for the fiscal year ended September 30, 2018. This was the thirty-fifth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for aperiod of one year only.Due to the COVID-19 pandemic,the results of the 2019 CAFR have yet to be received but we expect to receive our thirty-sixth consecutive award. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. The City also received an award in 2020 for the Fiscal Year 2020 operating budget. The Distinguished Budget Presentation award was granted to the City for the 30th consecutive year by the GFOA. Acknowledgments Timely preparation of this Comprehensive Annual Financial Report was made possible by the dedicated service of the Finance Department, our independent auditors, and other City staff. We would like to express sincere appreciation to those who contributed to the process. In closing, the continued leadership and support of the Mayor, City Council, and City Manager in planning and conducting the financial operation of the City is sincerely appreciated. Respectfully submitted, Mark C. Mills Director of Finance vi North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS ORGANIZATION CHART r, Assistant Director of Managing Managing Director CityManager Public Safe Director of Community Services. g Safety Public Works •Animal Services •Consumer Health •Code Compliance Finance police PubliciWorks Parks&Recreation •Accounting • Police •Streets • Parks&Recreation • Purchasing • Detention •Traffic • Richland Tennis Center • Uti l ity Custom er Svc. • Dispatch • Engineering • NRH2O • Public Information • Utility—Water/Sewer •Citicable Budget Budget Development Fire Facility]Const.Mgmt. Library • • Internal Audit • Fire Department • Building Services • Library Services •Tax(Tarrant County) • Emergency Mgmt. •Construction Mgmt. • Planning • Development • Building Inspection - • Rental Inspection Information Technology p Fleet Services Golf.Course.. • Permits •Computers J Network j__ _________ ________ •Telephone • Equipment Services •Golf Course •Technology • Fire Equip.Maint. -------------------------------- Municipal Court • Municipal Court •Teen Court Human Resources • Employment • Risk Management •Civil Service �Solid Waste 'i --------- ------------ Functional Responsibility.. Functional Responsibility Functional Responsibility •Water Utilities—Fort Worth/TRA •Tarrant Regional Transp.Coalition LEGEND • Franchises •City Hall Project • Regional Transportation Council • Legislative Analysis • Development Review Committee appoinred ay city council • Minerals/Gas • Rail Initiatives `® convacxed vii North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS PRINCIPAL OFFICIALS September 30,2020 MAYOR OSCAR TREVINO MAYOR PRO TEM, COUNCIL MEMBER,PLACE 6 SCOTT TURNAGE DEPUTY MAYOR PRO TEM, COUNCIL MEMBER,PLACE 1 TITO RODRIGUEZ ASSOCIATE MAYOR PRO TEM, COUNCIL MEMBER,PLACE 4 MASON ORR COUNCIL MEMBER,PLACE 2 RITA WRIGHT OUJESKY COUNCIL MEMBER,PLACE 3 SUZY COMPTON COUNCIL MEMBER,PLACE 5 MIKE BENTON COUNCIL MEMBER,PLACE 7 TIM WELCH (*) City Manager Mark Hindman Deputy City Manager Paulette Hartman Assistant City Manager Karen Manila Director of Public Safety Jimmy Perdue Managing Director of Development Services Mike Curtis Managing Director of Community Services Vickie Loftice City Secretary Alicia Richardson City Attorney Maleshia McGinnis Director of Human Resources Patrick Hillis Director of Finance Mark Mills Director of Budget and Research Robert Myers Director of Economic Development Craig Hulse Director of Planning Clayton Comstock Public Information Officer Mary Peters Director of Information Technology Vacant Municipal Court Administrator Rebecca Vinson Director of Neighborhood Services Stefanie Martinez Library Director Cecilia Hurt Barham Fire Chief Stan Tinney Public Works Director Caroline Waggoner Director of Facilities& Construction Chris Amarante Chief Building Official Dave Pendley (*) Tim Welch resigned from City Council in December 2020. Kelvin Deupree was appointed by the City Council to fill the unexpired portion of his term on January 11, 2021. viii North Richland Hills,TX 2020 CAFR Due to the COVID-19 pandemic, the results of the 2019 CAFR Award Certificate submission have yet to be received but we expect to receive our thirty-sixth consecutive award. ix North Richland Hills,TX 2020 CAFR x North Richland Hills,TX 2020 CAFR Financial Section 1 North Richland Hills,TX 2020 CAFR 2 North Richland Hills,TX 2020 CAFR 640 I dylrrr Sl ivel.: 11 Wol l n, I exas ran N 02 vVI-i flcrypel-1-i.C.c'rrrr REPORT OF INDEPENDENT AUDITORS To the Honorable Mayor and Members of City Council City of North Richland Hills, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities,the business-type activities, each major fund, and the aggregate remaining fund information of the City of North Richland Hills, Texas (the "City"), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. gw�v',9 P,irrie n"ibe*r of 3 North Richland Hills,TX 2020 CAFR 6°jNiNexiia Niyu�n,, Iri4_crrrJaHora ail To the Honorable Mayor and Members of City Council City of North Richland Hills, Texas Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30,2020, and the respective changes in financial position, and where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis, pension information, other post-employment benefit information, and certain budget to actual schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund statements and schedules,budget to actual schedules, statistical section, and glossary are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules and budget to actual schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory section,statistical section,and glossary have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly,we do not express an opinion or provide any assurance on them. 4 North Richland Hills,TX 2020 CAFR To the Honorable Mayor and Members of City Council City of North Richland Hills, Texas Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2021, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance and has been issued under separate cover. L't Fort Worth, Texas March 3, 2021 5 North Richland Hills,TX 2020 CAFR 6 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30,2020 The City of North Richland Hills, Texas (the "City") Management's Discussion and Analysis ("MD&A") is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City's financial activity, (c)identify changes in the City's financial position(its ability to address the next and subsequent years' challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. MD&A is designed to focus on the current year's activities, resulting changes, and currently known facts, and should be read in conjunction with the City's financial statements (beginning on page 22). Financial Highlights • The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the fiscal year ended September 30, 2020 by over$345.4 million (net position). • The City's total net position increased by$14.6 million in fiscal year 2020 from the beginning net position of $330.7 million.Additional details of this change may be found beginning on page 24(Statement ofActivities). • As of September 30, 2020,the City's governmental funds reported combined fund balances of$88,176,318, which represents an increase of$22.0 million in comparison to the prior fiscal year's ending balance. • Approximately 26.6%of total governmental fund balance,or$23,483,836,is available for appropriation at the City's discretion(assigned and unassigned fund balance). • The City's objective regarding fund balance for the General Fund is to maintain a minimum unassigned fund balance to operate the City for a period of 60 days or 15% of the following year's appropriated budgeted expenditures. This objective was met at year end. • At the end of the current fiscal year,unassigned fund balance for the General Fund was $17,386,675 or 34.2% of General Fund actual expenditures, including transfers out, for 2020. This unassigned balance represents 34.7% of the Fiscal Year 2021 adopted budget. • The City's total debt increased by approximately $14.2 million during the fiscal year 2020. This is due to scheduled principal payments of$12.4 million,issuance of$30.8 million in bonds and COs,and the refunding of$4.3 million in bonds and certificates of obligation. 7 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Overview of the Financial Statements MD&A is intended to introduce the reader to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other required supplementary information in addition to the basic financial statements. Government-wide financial statements-The government-wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to private-sector business. The Statement of Net Position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All of the current year's revenues and expenses are recognized regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods(e.g.,uncollected taxes and earned,unused vacation leave).Both the Statement of Net Position and the Statement of Activities are prepared using the accrual basis of accounting as opposed to the modified accrual basis used in governmental funds. In the Statement of Net Position and the Statement of Activities,the City's operations are separated into two types of activities: • Governmental activities-Most of the City's basic services are reported here,including the activities of public safety,culture and recreation,public works,and general government.Property taxes,sales taxes,and franchise fees finance most of these activities. • Business-=e activities For this type of activity, the City charges a fee to customers to cover all or most of the cost of services provided including the recovery of costs of capital assets used in the delivery of such services. The City's water and sewer,golf course, and aquatic park activities are reported here. The government-wide financial statements can be found on pages 22 - 25 of the comprehensive annual financial report. Fund financial statements -A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements provide detailed information about the most significant funds,not the City as a whole. Some funds are required to be established by state law, bond covenants, or Council ordinance. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. • Governmental funds - The majority of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available for appropriation at year- end. These funds are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. Statements of governmental funds provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources available for appropriation in the near future to finance City programs. By comparing information presented for governmental funds with similar information 8 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 presented for governmental activities in the government- wide financial statements, readers may better understand the long-term impact of the government's near-term financing decisions. The relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are detailed in a reconciliation following the fund financial statements. The City maintains five major individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds. The General Fund, General Capital Projects Fund, General Debt Service Fund,Parks and Recreation Development Fund, and the Tax Increment Finance District No. 2 Fund are the major governmental funds of the City. Data from the other non-major governmental funds are combined into a single, aggregated presentation in the governmental statements. Financial statements for the governmental funds can be found on pages 26 - 33 of this report. • ProprietaLy funds - The objective of proprietary funds is to charge customers,both internal and external, for services provided in an amount sufficient to cover virtually all costs including the replacement of assets used in the delivery of such services. These services are generally reported in proprietary funds. Proprietary funds are reported in the same manner that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary funds) are almost identical to the business-type activities that are reported in the government-wide statements,but provide more detail and additional information, such as the statement of cash flows. The internal service funds (the other component of proprietary funds) are utilized to report activities that provide supplies and services for the City's other programs and activities, such as the City's facilities maintenance and construction services, fleet management,employee and property insurance coverage,and telephone and computer services.Because these services benefit both governmental and business-type functions, they have been included in both the governmental and business-type activities in the government-wide financial statements. The City maintains three enterprise funds,which it uses to account for the provision of water and wastewater services, golf course operations, and water park activities. The Utility Fund, Aquatic Park, and the Golf Course are all considered major funds.Financial statements for the enterprise funds can be found on pages 34 - 37 of the report. Notes to the financial statements - The notes to the financial statements provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41 - 79 of this report. Government-Wide Financial Analysis The government-wide financial analysis highlights the information contained in the Statement of Net Position and Statement of Activities. The City's combined net position was $345,376,664 as of September 30,2020. Analyzing the net position of governmental and business-type activities separately,governmental activities total net position was $255,853,663 and business-type activities total net position was $89,523,001. This analysis focuses on the net position and changes in program and general revenues and significant expenses of the City's governmental and business-type activities. 9 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Statement of Net Position The largest portion of the City's net position (93.2%) reflects its net investment in capital assets(e.g.,land,buildings,machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses capital assets to provide services to citizens; consequently, capital assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these obligations. The following table presents the condensed government- wide statement of net position as of September 30,2020 and 2019.Current and other assets include restricted deposit and investment balances. Schedule of Assets,Liabilities,and Net Position Amounts shown in thousands ($000's) As of September 30,2020 and 2019 Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Current and other assets $ 107,707 $ 88,265 $ 38,691 $ 33,644 $ 146,398 $ 121,909 Capital assets,net 332,495 330,924 90,070 87,463 422,565 418,387 Total Assets 440,202 419,189 128,761 121,107 568,963 540,296 Total deferred outflows of resources 7,294 16,028 752 2,815 8,046 18,843 Long-ternlliabilities 157,744 170,775 30,876 28,310 188,620 199,085 Other liabilities 17,775 18,656 7,521 7,321 25,296 25,977 Total liabilities 175,519 189,431 38,397 35,631 213,916 225,062 Total deferred inflows of resources 16,123 2,442 1,593 899 17,716 3,341 Net Position: Net investments in capital assets 250,864 239,570 71,095 73,400 321,959 312,970 Restricted 23,229 20,825 6,189 5,120 29,418 25,945 Unrestricted (18,239) (17,051) 12,239 8,872 (6,000) (8,179) Total net position $ 255,854 $ 243,344 $ 89,523 $ 87,392 $ 345,377 $ 330,736 Statement of Activities - Governmental activities increased the City's net position by $12.5 million in fiscal year 2020,and business-type activities increased net position by$2.1 million.The following table presents the condensed government-wide statement of activities for the years ended September 30, 2020 and 2019. 10 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Changes in Net Position Amounts shown in thousands ($000's) Years Ended September 30,2020 and 2019 Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $ 11,294 $ 13,820 $ 40,255 $ 41,437 $ 51,549 $ 55,257 Operating grants and contributions 9,706 8,357 - - 9,706 8,357 Capital grants and contributions 553 787 553 787 General revenues: Property tax 34,619 34,417 34,619 34,417 Sales tax 22,014 20,439 22,014 20,439 Mixed beverage 125 154 125 154 Franchise taxes 3,818 4,316 3,818 4,316 Occupancy taxes 254 279 - - 254 279 Unrestricted investment earnings 2,032 2,670 523 671 2,555 3,341 Miscellaneous 2,380 3,101 1,426 1,735 3,806 4,836 Total revenue 86,795 88,340 42,204 43,843 128,999 132,183 Expenses: General government 18,403 14,796 - - 18,403 14,796 Public safety 30,185 34,642 30,185 34,642 Culture and recreation 12,151 12,988 12,151 12,988 Public works 7,988 8,101 7,988 8,101 Interest and other fees 4,873 3,453 - - 4,873 3,453 Utility - - 35,405 33,544 35,405 33,544 Aquatic park 3,216 4,556 3,216 4,556 Golf course - - 2,136 2,521 2,136 2,521 Total expenses 73,600 73,980 40,757 40,621 114,357 114,601 Increase(decrease)in net position before transfers 13,195 14,360 1,447 3,222 14,642 17,582 Transfers between governmental and business-type activities (685) 3,616 685 (3,616) - - Net Increase(decrease)in net position 12,510 17,976 2,132 (394) 14,642 17,582 Net position-beginning of year 243,344 225,368 87,391 87,786 330,735 313,154 Net position-end of year $ 255,854 $ 243,344 $ 89,523 $ 87,392 $ 345,377 $ 330,736 Governmental activities -In comparison to fiscal year 2019, overall assets for Governmental Activities increased $21.0 million or 5.0% in 2020. Capital assets, net of depreciation, increased $1.6 million or 0.5% in 2020. This activity was related to capital improvement projects,specifically improvements to streets,roadways,and equipment replacements. Outstanding debt liabilities decreased by $9.1 million or 8.9% in 2020. The decrease was due to principal repayments for debt held in the governmental funds. Governmental activities increased the City's net position by approximately $12.5 million in fiscal year 2020. The City had an increase in tax revenues of$1.2 million during 2020. Property taxes increased $0.2 million, sales tax increased by $1.6 million, and franchise taxes decreased by $0.5 million. In fiscal year 2020 the City experienced significant growth in its taxable base of 9.5% and added $80 million in new construction value. The tax rate was lowered from $0.585 to $0.572, to help reduce the overall property tax burden. Sales taxes increased 7.7% due in large part to gains in online sales,which were bolstered by changes brought about by the Supreme Court's Wayfair decision. 11 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 The City faced extraordinary challenges during 2020 from the COVID-19 pandemic as significant impacts were seen on the day to day lives of our residents,businesses, and city operations. The COVID-19 pandemic dominated a significant portion of City resources and had a direct impact on the City's budget as staff worked to respond to the crisis. Fortunately due in part to the stability the City saw in property tax and sales tax collections in the General Fund, which comprise roughly 61% of all revenue in the General Fund, the City's year-end position was much stronger than anticipated at the start of the COVID-19 pandemic. Charges for services decreased approximately $2.5 million or 18.3% in fiscal year 2020. Operating Grants and Contributions increased approximately $1.3 million or 16.1%in fiscal year 2020. This increase was expected due to the continuation of significant grant funding in the area of General Government,Public Safety and Public Works. Capital Grants and Contributions decreased approximately $0.2 million or 29.7% in fiscal year 2020. Significant projects included the North Texas Anti-Gang Center, the closeout of the reconstruction of Rufe Snow Drive, and the realignment of Smithfield/Davis intersection. Governmental activities saw a total decrease in expenses totaling approximately$0.4 million or approximately 0.5% below 2019 levels. This is attributable to the City's response to the COVID-19 pandemic which necessitated a change in planned expenses for parks, police, neighborhood services and municipal court. Many functions were held remotely while many events were scaled back or cancelled in an attempt to control the spread of the virus. Depreciation expense rose $1.6 million or 0.4%, on net fixed assets of$332.5 million. Debt service interest and other fees increased by approximately 41.1%. Refer to the fund level financial analysis section for further details. Expenses and Program Revenues -Governmental Activities $(000-s) 35,000 .................................................................................................................................................................................................................................................................................................................................................................... 30,000 25,000 ..................................................................................... 20,000 ..................................................................................... 15,000 1 10,000 5,000 _ .... .... ry .... .... a ... ry ry n General Public Safety Culture& Public Works Interest&Other Government Recreation Fees II Expenses Program Revenues 12 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 ...................................................................................................................................................................................................................................................................................................................................................... General Revenues by Source - Governmental Activities Unrestricted Investment Earnings Occupancy Taxes 3.11% Miscellaneous 0.39% 3.65 Franchise Taxes 5.is % Mixed Beverages 0.19 Property Taxes 53.07% Sales Tax 33.74% Business-type activities Business-type activities resulted in an increase to the City's total net position of$2.1 million in 2020. Overall the Utility operations (before non-operating revenues (expenses) and transfers to governmental activities) resulted in an increase in operating income of approximately $5.3 million. Transfers out of the Utility Fund into General Funds totaling $4.4 million, for PILOT fees,indirect fees, and administrative fees, further reduced Business-Type Activities net position. Aquatic Park experienced a decrease in net position (before non-operating revenues(expenses)and transfers to governmental activities)of$2,806,188.Golf course experienced a decrease in net position (before non-operating revenues (expenses) and transfers to governmental activities) of $946,873. The overall increase in net position for Business-type activities was driven by the Utility fund which increased $1.0 million,inclusive of transfers out. Aquatic Park and Golf course operations are funded by consumers who patronize each facility. Due to the operational restrictions resulting from the COVID-19 pandemic, the Aquatic Park was open for 13 days during FY 2020, whereas a normal season is approximately 105 days. Operational restrictions affected all entertainment venues in the area and annual pass holders for 2020 will have their passes honored in 2021. The Golf Course was not affected to the same extent by the pandemic as it was already on reduced operations due to a capital project to reconstruct the golf course as well as refurbish the clubhouse. At least 12 of the 18 holes on the course were out of circulation for 7-9 months of FY 2020. 13 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 The Utility Fund experienced higher sales in the summer heat, which together with a rate increase in effect November 2019, helped generate increase revenues. On the whole, the weather demonstrated how sensitive business-type activities are to climate impacts. Expenses and Program Revenues-Business Type Activities $(000-s) je�°�� ��uuulllllll�lllll�lllll�llllllllllll�ll�lll 40,000 30,0W 20,000 " 10,000 'MM1.S.I...I..I..V.. . r da.l6 Utility Aquatic Park Golf ICI Expenses Program Revenues Revenues by Source - Business-Type Activities Utility 97% 1 Aquatic Park 1% Golf 2% 14 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Fund Level Financial Analysis Governmental Funds-The focus of the City of North Richland Hills' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City's Council itself, or the designated individual delegated the authority to assign resources for use for particular purposes (Council Designated). At September 30, 2020, the City's governmental funds reported combined fund balances of $88,176,318, an increase of$21,987,584 in comparison with prior year. Unassigned fund balance of$17,386,675 is available for spending at the government's discretion. The remainder of the fund balance is either non-spendable, restricted, committed,or assigned to indicate that it is 1)not in spendable form($138,314),2)legally required to be maintained intact or to be used for a particular purpose ($61,485,769), 3) committed for particular purposes($3,068,399), or 4) assigned for particular purposes ($6,097,161). The General Fund is the chief operating fund of the City. For fiscal year 2020, the General Fund unassigned fund balance was $17,386,675 — an increase of$3,487,435. Unassigned fund balance represents approximately 37.2% of total General Fund expenditures for 2020,while total fund balance represents 41.4%. The General Fund balance increase was due primarily to operational savings recognized at year-end. Higher than anticipated revenue, in particular Sales Taxes collected,Licenses and Permit revenue related to development, and funding received via the CARES Act contributed to the increase. The General Capital Projects fund increased governmental fund balance by approximately $10.6 million. During fiscal year 2020, the City issued $8.4 million in bonds payable for capital projects. Of the fund's $10.3 million in expenditures, a significant portion can be attributed to the close out activities associated with the new City Hall project, as well as improvements in the public street network including, Rufe Snow & Mid-Cities improvements, and Davis &Mid-Cities improvements General Debt Service fund increased governmental fund balance by $112,437. The increase is associated with retirement of debt through principal and interest payments for 2020. The debt service fund had accumulated roughly $1.8 million in fund balance by the end of 2014. City Council and City Management instituted a planned drawdown of these funds to offset transfers out of regular operations for future fiscal year debt service requirements. Parks and Recreation Development Corporation increased governmental fund balance by $33,610. Part of that increase belongs to the NRH Centre,which experienced an increase to fund balance of$196,485 from activity. The TIF 92 Capital Projects Fund increased governmental fund balance by $232,535, resulting in an ending fund balance of$11,974,697 as of September 30, 2020. The increase was due to investment income received during 2020. The TIF 92 Debt Service Fund increased governmental fund balance by $2,183,484, resulting in an ending fund balance of $12,434,895 as of September 30, 2020. The increase was due to property tax collections from participating entities and investment income received during 2020. ProprietM Funds - The proprietary funds provide the same type of information found in the government-wide financial statements. 15 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 General Fund Budgetary Highlights Original budget compared to final budget. During the fiscal year, there were sufficient reasons to revise original estimated revenues and original appropriations. Revenue amendments resulted in a net increase of $1,624,025. Other Appropriations increased $1,624,025. Modifications were made to specific revenue projections, based on known activities and observed collection trends throughout the fiscal year. Final budget compared to actual results.Revenue sources saw negative variances in three categories-property taxes ($170,421 or-0.85%), franchise taxes ($6,128 or-0.13%) and charges for services ($32,606 or-1.3%). A positive revenue variance of$289,414 in Licenses and Permits resulted from the continued activity in new development/ remodels. Other categories were revised upward and actual collections exceeded projections. Within expenditures and other uses for the fiscal year, transfers out were under budget by $143,469 as a planned transfer to Crime Control District was not required. Estimated Actual Revenues Revenues Revenues Difference Property taxes $ 19,847,315 $ 19,676,894 $ (170,421) Sales taxes 10,568,043 11,019,420 451,377 Franchise taxes 4,819,618 4,813,490 (6,128) Fines and forfeitures 1,725,604 1,840,749 115,145 Licenses and permits 2,586,291 2,875,705 289,414 Charges for services 2,582,460 2,549,854 (32,606) Intergovernmental 5,256,140 9,013,707 3,757,567 Miscellaneous 2,188,423 2,382,080 193,657 Estimated Actual Expe nditure s and Othe r Us e s Appropriations Expe nditure s Difference Transfers out $ 3,741,191 $ 4,084,824 $ (343,633) Economic development incentives 133,992 190,472 (56,480) 16 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Capital Asset and Debt Administration Capital assets - At the end of fiscal year 2020, the City had $422.6 million (net of accumulated depreciation) invested in a broad range of capital assets including,but not limited to,police and fire equipment,buildings,park facilities,roads,bridges, aquatic park facilities, golf course assets, and the water and sewer system. The following table provides capital asset balances net of accumulated depreciation for each major category for both governmental and business-type activities as of September 30, 2020 and 2019. Capital Assets (net of Accumulated Depreciation) Amounts shown in thousands (000's) Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Land and land improvements $ 78,484 $ 78,484 $ 2,579 $ 2,579 $ 81,063 $ 81,063 Works of art 310 310 - - 310 310 Buildings&improvements 92,215 95,165 450 466 92,665 95,631 Other improvements 132,915 136,161 15,011 12,631 147,926 148,792 Utility plant - - 66,099 68,755 66,099 68,755 Machinery and equipment 19,195 15,798 1,487 1,460 20,682 17,258 Assets held for sale 15 15 - - 15 15 Construction in progress 9,361 4,991 4,444 1,572 13,805 6,563 Total capital assets $ 332,495 $ 330,924 $ 90,070 $ 87,463 $ 422,565 $ 418,387 This year's major additions included: Description Amount Various Land and Land Improvements $ 3,333,846 Various Water/Sewer Replacement& Improvements 285,863 Various Street Improvements 1,590,011 Computer,Machinery,and Equipment 185,242 Various Drainage Improvement 315,582 Various Vehicles 2,021,414 The City prepares an annual Capital Improvement Projects budget that assigns specific funds and resources for use to only these projects. Until appropriations are removed, these resources are unavailable for general operations or new capital projects. The City currently has committed resources (displayed as Noncurrent Assets-cash and cash equivalents in the Statement of Net Position)totaling $50,813,745 for both the Governmental and Business-type activities. These resources will be used to purchase major equipment, construct new buildings, and add new infrastructure such as water and sewer lines and streets. More information on capital assets can be found in footnote IILC in the Footnotes to the financial statements. 17 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Debt-At September 30, 2020 and 2019, the City had the following debt outstanding: Outstanding Debt Amounts shown in thousands (000's) Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 General obligation bonds $ 53,150 $ 53,885 $ 3,590 $ 3,910 $ 56,740 $ 57,795 Certificates of obligation 45,910 47,385 20,095 14,685 66,005 62,070 General obligation bonds- Private placement 835 1,115 140 160 975 1,275 Special assessment bonds 11,580 - - - 11,580 - Capital lease - - 308 77 308 77 Totals $ 111,475 $ 102,385 $ 24,133 $ 18,832 $ 135,608 $ 121,217 The presently outstanding general obligation debt of the City is rated"AA2"by Moody's and"AA+"by S&P. As a home rule city, the City is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation debt.For FY 2020,the City's property tax rate is $0.5720 per $100 assessed valuation. The current ratio of tax-supported debt to assessed value of all taxable property is 1.71%.Additional detailed information on long-term debt activity is disclosed in the notes(III-E)to the financial statements. Pensions and Retiree Health Care Pensions and retiree health care continue to receive negative media attention as governments around the nation struggle to fund these commitments. The City is committed to providing programs in these areas that are fair to both employees and taxpayers and that can be sustained over the long term. Effective for fiscal year 2015,Governmental Accounting Standards Board("GASB") Statement No. 68,Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, created specific reporting requirements for pensions that are different than that used for funding purposes. Both valuations are important as the reporting valuation provides a rigorous standard measure that can be used to compare the City's pension liabilities to other governments from around the nation. The funding valuation is important because the actuarial methods used include strategies for repaying any unfunded actuarial accrued liabilities. Combined with the City's history of making those contributions,it provides insights regarding the City's commitment to and the effectiveness of its funding strategy. Information contained in the financial statements themselves including the first schedule of Required Supplementary Information("RSI"), Schedule of Changes in Net Pension Liability and Related Ratios,is based on the reporting valuation.The second schedule in the RSI, Schedule of Contributions,is based on the funding valuation. On a reporting basis, the City's financial statements reflect a Net Pension Liability as of September 30, 2020 of$20,778,800, which is 55.8% of the City's annual covered payroll of$37,205,542 for the 2019 calendar year. Retiree health care's net OPEB liability has been calculated in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, to be $33,719,651 as of September 30, 2020, a decrease of$7,283,498 from the previous valuation. 18 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS(continued) For the Year Ended September 30,2020 Economic Factors and Next Year's Budgets and Rates The two largest revenue sources for the General Fund are property tax revenues and sales tax receipts.After working through a struggling economy,the City of North Richland Hills is finally experiencing a stabilization.In June 2019, the Texas state legislature passed Senate Bill 2 (SB-2) which limits the ability of local governments to increase property tax revenues above 3.5% without an affirmative vote of the citizens within the jurisdiction. For budget year 2020/2021, sales tax receipts are anticipated to be roughly equal to the 2019/2020 actual as the economy continues to deal with the effects of the pandemic. Property tax values are anticipated to continue rising due to steady new construction growth plus continued growth of existing property values. At this time, the City of North Richland Hills projects a 3-5% growth in property values, though a greater increase is not out of the realm of possibility. The fiscal year 2021 budget was based on a slight increase to the property tax rate from $0.572/$100 to $0.5757/$100. For fiscal year 2021, the tax rate distribution amounts for maintenance & operations and interest& sinking (per$100 assessed value) for the City are as follows: Tax Rate Tax Rate Distribution Schedule Tax Rate Distribution General Fund- Maintenance & Operations $ 0.343611 $ 20,035,463 Debt Service Fund- Interest& Sinking 0.232089 11,202,557 Total Distribution of tax proceeds $ 0.575700 $ 31,238,020 By policy, the City maintains an unassigned General fund balance of 15% of budgeted expenditures. The use of available fund balance for one-time expenditures eliminates the financial impact of such purchases on future budgets. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of North Richland Hills, Director of Finance, P.O. Box 820609,North Richland Hills, Texas 76182-0609. 19 North Richland Hills,TX 2020 CAFR 20 North Richland Hills,TX 2020 CAFR Basic Financial Statements 21 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 STATEMENT OF NET POSITION September 30,2020 Primary Government Governmental Business-Type Activities Activities Total Assets Current Assets: Cash and cash equivalents $ 18,890,837 $ 47,565 $ 18,938,402 Investments 22,931,462 8,600,536 31,531,998 Receivables,net of allowances: Accounts 617,417 5,062,462 5,679,879 Property taxes 253,718 - 253,718 Other taxes 4,178,021 - 4,178,021 Interest receivable 16,597 4,293 20,890 Special assessments 132,657 - 132,657 Intergovernmental 1,273,992 266,729 1,540,721 Other 7,774,407 24,607 7,799,014 Prepaids 426,180 41,869 468,049 Inventories,at cost 261,679 415,974 677,653 Internal balances (7,812,457) 7,812,457 - Total current assets 48,944,510 22,276,492 71,221,002 Noncurrent assets: Cash and cash equivalents 37,469,826 13,343,919 50,813,745 Investments 20,793,031 3,070,556 23,863,587 Interfund loan receivable 500,000 - 500,000 Capital assets-net: Land and land improvements 78,484,139 2,579,137 81,063,276 Buildings and improvements 126,451,825 3,268,726 129,720,551 Improvements other than buildings 256,062,681 32,069,497 288,132,178 Utility plant - 146,451,415 146,451,415 Machinery and equipment 37,325,733 6,119,856 43,445,589 Artwork and historical treasures 310,208 - 310,208 Assets held for sale 14,612 - 14,612 Construction in progress 9,360,688 4,443,806 13,804,494 Accumulated depreciation (175,514,992) (104,862,330) (280,377,322) Total capital assets-net 332,494,894 90,070,107 422,565,001 Total noncurrent assets 391,257,751 106,484,582 497,742,333 Total assets 440,202,261 128,761,074 568,963,335 Deferred Outflows of Resources Deferred loss on refunding 415,150 121,405 536,555 Deferred outflows-OPEB 1,448,403 331,167 1,779,570 Deferred outflows-Pension 5,429,584 298,684 5,728,268 Total deferred outflows of resources 7,293,137 751,256 8,044,393 See notes to the financial statements. 22 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 STATEMENT OF NET POSITION September 30,2020 Primary Government Governmental Business-Type Activities Activities Total Liabilitie s Current Liabilities: Accounts payable and accrued liabilities $ 2,596,628 $ 1,524,522 $ 4,121,150 Deposits and other liabilities 1,256,022 77,516 1,333,538 Customer deposits - 3,196,459 3,196,459 Retainage payable 74,149 164,750 238,899 Compensated absences 585,591 92,563 678,154 Unearned revenue 1,683,324 394,379 2,077,703 Accrued interest payable 449,313 100,625 549,938 Bonds payable 10,925,000 1,895,000 12,820,000 Special assessment bonds 205,000 - 205,000 Capital lease payable - 74,725 74,725 Total current liabilities 17,775,027 7,520,539 25,295,566 Noncurrent Liabilities: Bonds payable 94,692,054 22,826,450 117,518,504 Special assessment bonds 11,375,000 - 11,375,000 Capital lease payable - 232,784 232,784 Compensated absences 2,898,661 360,439 3,259,100 Interfund loan payable - 500,000 500,000 Intergovernmental payable s - 1,236,034 1,236,034 Net OPEB liability 30,479,702 3,239,949 33,719,651 Net pension liability 18,298,468 2,480,332 20,778,800 Total noncurrent labilities 157,743,885 30,875,988 188,619,873 Total liabilities 175,518,912 38,396,527 213,915,439 Deferred Inflows of Resources Deferred gain on refunding 45,385 6,991 52,376 Deferred inflows-OPEB 8,465,517 945,434 9,410,951 Deferred inflows-Pension 7,611,921 640,377 8,252,298 Total deferred inflows of resources 16,122,823 1,592,802 17,715,625 Net Position Net investment in capital assets 250,864,326 71,094,790 321,959,116 Restricted for: Municipal court technology& security 796,621 - 796,621 Franchise peg fees 747,411 - 747,411 Records preservation fees 4,000 - 4,000 Parks and recreation development 3,395,295 - 3,395,295 Crime control district 1,071,336 - 1,071,336 Debt service 14,589,564 - 14,589,564 Grants 267,171 - 267,171 Promotional&economic development 1,119,636 - 1,119,636 Public safety 1,237,579 - 1,237,579 Impact fees restricted for construction - 6,188,722 6,188,722 Unrestricted (18,239,276) 12,239,489 (5,999,787) Total net position $ 255,853,663 $ 89,523,001 $ 345,376,664 See notes to the financial statements. 23 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 STATEMENT OF ACTIVITIES For the Year Ended September 30,2020 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental Activities: General government $ 18,402,693 $ 5,099,784 $ 4,787,353 $ 17,509 Public safety 30,185,432 1,747,559 4,767,276 - Culture and recreation 12,150,887 2,572,335 151,109 - Public works 7,988,277 1,873,331 - 535,826 Interest and other fees 4,873,291 - - - Total governmental activities 73,600,580 11,293,009 9,705,738 553,335 Business-Type Activities: Utility 35,405,045 38,934,995 - - Aquatic park 3,215,995 287,217 - - Golf course 2,136,067 1,032,999 - - Total bus iness-type activities 40,757,107 40,255,211 - - Total primary government $ 114,357,687 $ 51,548,220 $ 9,705,738 $ 553,335 See notes to the financial statements. 24 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 STATEMENT OF ACTIVITIES For the Year Ended September 30,2020 Net(Expense) Revenue and Changes in Net Position Governmental Business-type Functions/Programs Activities Activities Total Primary Government Governmental Activities: General government $ (8,498,047) $ - $ (8,498,047) Public safety (23,670,597) - (23,670,597) Culture and recreation (9,427,443) - (9,427,443) Public works (5,579,120) - (5,579,120) Interest and other fees (4,873,291) - (4,873,291) Total governmental activities (52,048,498) - (52,048,498) Business-Type Activities: Utility - 3,529,950 3,529,950 Aquatic park - (2,928,778) (2,928,778) Golf course - (1,103,068) (1,103,068) Total bus ine s s-type activities - (501,896) (501,896) Total primary government (52,048,498) (501,896) (52,550,394) General revenues: Taxes: Property 34,618,987 - 34,618,987 Sales 22,014,072 - 22,014,072 Mixed beverage 125,456 - 125,456 Franchise 3,818,194 - 3,818,194 Occupancy 254,203 - 254,203 Unrestricted investment earnings 2,032,166 522,875 2,555,041 Miscellaneous 2,379,746 1,425,737 3,805,483 Transfers between governmental and business-type activities (684,934) 684,934 - Total general revenues and transfers 64,557,890 2,633,546 67,191,436 Change in net position 12,509,392 2,131,650 14,641,042 Net position-beginning ofyear 243,344,271 87,391,351 330,735,622 Net position- end of year $ 255,853,663 $ 89,523,001 $ 345,376,664 See notes to the financial statements. 25 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 BALANCE SHEET-GOVERNMENTAL FUNDS September 30,2020 Parks and General Capital General Debt Recreation General Fund Projects Service Development Assets Cash and cash equivalents $ 6,885,836 $ $ $ 1,867,310 Investments 10,068,804 2,026,769 Receivables,net of allowance: Accounts 433,554 - Property taxes 253,718 - Other taxes receivable 2,150,751 979,932 Interest receivable 3,572 1,820 219 746 Special assessments receivable - 132,657 - - Intergovernmental receivables 359,074 - - Other receivables 107,318 6,075,000 32,481 Due from other funds 783,128 - - Prepaid items 4,406 8,358 - Inventories,at cost 108,214 - - 17,336 Assets limited to use: Cash and cash equivalents 2,225 11,154,472 793,243 1,240,491 Investments - 5,434,290 618,260 75,316 Total assets $ 21,160,600 $ 22,806,597 $ 1,411,722 $ 6,240,381 Liabilities Accounts payable $ 342,640 $ 460,144 $ - $ 5,812 Retainage payable - 74,149 - Accrued liabilities 350,523 - 38,303 Deposits and other liabilities 466,293 729,865 45,224 Due to other funds - - - Unearned revenue 95,129 - 128,942 Total liabilities 1,254,585 1,264,158 218,281 Deferred Inflows of Resources Unavailable revenue-ambulance fees 321,353 - - Unavailable revenue-property taxes 253,717 Unavailable revenue-grants - - Unavailable revenue-assessments - 132,657 Total deferred inflows ofresources 575,070 132,657 - Fund Balance Nonspendable: Inventories $ 108,214 $ $ $ 17,336 Prepaids 4,406 8,358 - Restricted: Municipal court technology&security 796,621 - Franchise peg fees 747,411 Record preservation fee 4,000 - Parks and recreation development - 3,395,295 Crime control district - - Debt service 1,411,722 Grants - Promotional&economic development Public safety - Capital projects(bond funded) 18,197,350 Committed: Donations - Drainage Utility Gas development - Assigned: Recreation centre - 2,609,469 Capital projects 3,204,074 - Purchases on order 283,618 - Unassigned 17,386,675 - - - Total fund balance 19,330,945 21,409,782 1,411,722 6,022,100 Total liabilities,deferred inflows and fund balance $ 21,160,600 $ 22,806,597 $ 1,411,722 $ 6,240,381 See notes to the financial statements. 26 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 BALANCE SHEET-GOVERNMENTAL FUNDS September 30,2020 Non-major Total TIF#2 Capital TIF#2 Debt Governmental Governmental Projects Fund Service Fund Funds Funds Assets Cash and cash equivalents $ $ $ 2,279,559 $ 11,032,705 Investments 2,510,962 14,606,535 Receivables,net of allowance: Accounts 183,863 617,417 Property taxes - 253,718 Other taxes receivable 1,047,338 4,178,021 Interest receivable 1,878 2,204 2,331 12,770 Special assessments receivable - - - 132,657 Intergovernmental receivables 914,918 1,273,992 Other receivables 1,529,144 7,743,943 Due from other funds - 783,128 Prepaid items 13,327 26,091 Inventories,at cost - - - 125,550 Assets limited to use: Cash and cash equivalents 6,679,336 6,220,651 8,780,194 34,870,612 Investments 5,293,483 6,212,040 697,404 18,330,793 Total assets $ 11,974,697 $ 12,434,895 $ 17,959,040 $ 93,987,932 Liabilities Accounts payable $ $ - $ 75,421 $ 884,017 Retainage payable - 74,149 Accrued liabilities 46,370 435,196 Deposits and other liabilities 353 1,241,735 Due to other funds 783,128 783,128 Unearned revenue 1,456,591 1,680,662 Total liabilities 2,361,863 5,098,887 De le rre d Inflows of Resources Unavailable revenue-ambulance fees - 321,353 Unavailable revenue-property taxes - 253,717 Unavailable revenue-grants 5,000 5,000 Unavailable revenue-assessments - 132,657 Total deferred inflows ofresources 5,000 712,727 Fund Balance Nonspendable: Inventories $ $ $ $ 125,550 Prepaids 12,764 Restricted: Municipal court technology&security 796,621 Franchise peg fees 747,411 Record preservation fee 4,000 Parks and recreation development - 3,395,295 Crime control district - 1,071,336 1,071,336 Debt service 12,434,895 1,192,260 15,038,877 Grants - 267,171 267,171 Promotional&economic development 1,119,636 1,119,636 Public safety 1,237,579 1,237,579 Capital projects(bond funded) 11,974,697 7,635,796 37,807,843 Committed: Donations - 694,367 694,367 Drainage Utility 2,006,488 2,006,488 Gas development 367,544 367,544 Assigned: Recreation centre - 2,609,469 Capital projects 3,204,074 Purchases on order 283,618 Unassigned - - - 17,386,675 Total fund balance 11,974,697 12,434,895 15,592,177 88,176,318 Total liabilities,deferred inflows and fund balance $ 11,974,697 $ 12,434,895 $ 17,959,040 $ 93,987,932 See notes to the financial statements. 27 North Richland Hills,TX 2020 CAFR See notes to the financial statements. 28 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30,2020 Total fund balances - governmental funds $ 88,176,318 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities resources (excluding internal service capital assets) are not financial resources and,therefore,are not reported as net positions in governmental funds. 329,883,772 Certain receivables are not available to pay current-period expenditures and,therefore, are reported as unavailable revenue in the funds. 712,727 Internal service funds are used by the City's management for building and vehicle support services,self insurance,and information services. The assets,deferred outflows of resources,liabilities,and deferred inflows of resources of the internal service funds, net of amounts included in business type activities,are included with governmental activities in the Statement of Net Position but are not included at the fund level. 11,022,587 Long-term liabilities and related deferred inflows and outflows,including bonds payable, accrued interest payable,compensated absences,other post employment benefits,and net pension liability,are not due and payable in this current period and,therefore,are not reported as liabilities in the funds. (173,941,741) Total net position- governmental activities $ 255,853,663 See notes to the financial statements. 29 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS For the Year Ended September 30,2020 General Parks and Capital General Debt Recreation General Fund Projects Service Development Revenues Taxes $ 34,142,184 $ - $ 11,200,798 $ 5,509,712 Licenses and permits 2,581,001 - - - Charges for services 2,312,363 14,961 - 2,148,839 Gas utility leases and royalties - - - - Fines 1,840,751 - - - Contributions - 46,154 - 440 Investment income 488,956 308,516 36,231 96,964 Intergovernmental 6,645,819 295,000 82,853 - Forfeitures - - - - Miscellaneous 353,287 - - 297,032 Total revenues 48,364,361 664,631 11,319,882 8,052,987 Expenditures General government 10,335,279 6,866 - - Public safety 29,441,281 - - - Culture and recreation 3,638,421 - - 6,050,286 Public works 3,278,404 - - - Capital outlay: General government - 5,853,710 - - Public safety - 18,350 - - Culture and recreation - 968,815 - 139,211 Public works - 3,174,719 - - Debt service: Principal retirement - - 8,840,000 - Interest and fiscal charges - - 3,124,656 - Bond issuance costs - 228,110 76,858 - Total expenditures 46,693,385 10,250,570 12,041,514 6,189,497 Excess(deficiency)of revenues over expenditures 1,670,976 (9,585,939) (721,632) 1,863,490 Other Financing Sources (Uses) Issuance of debt - 8,425,000 - - Issuance of refunding debt - - 3,795,000 - Issuance of special assessment bonds - - - - Premium on issuance of debt - 618,110 463,990 - Payment to refunded bond escrow agent - - (4,182,132) - Proceeds from sale of assets 37,233 20,505 - 154 Transfers in 6,033,725 11,873,020 757211 487,102 Transfers out (4,093,887) (734,056) - (2,317,136) Total other financing sources (uses) 1,977,071 20,202,579 834,069 (1,829,880) Net change in fund balances 3,648,047 10,616,640 112,437 33,610 Fund balances-beginning of year 15,682,898 10,793,142 1,299,285 5,988,490 Fund balances-end of year $ 19,330,945 $ 21,409,782 $ 1,411,722 $ 6,022,100 See notes to the financial statements. 30 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS For the Year Ended September 30,2020 Non-major Total TIF#2 Capital TIF#2 Debt Governmental Governmental Projects Fund Service Fund Funds Funds Revenues Taxes $ - $ 4,164,923 $ 5,831,722 $ 60,849,339 Licenses and permits - - - 2,581,001 Charges for services - - 1,738,176 6,214,339 Gas utility leases and royalties - - 407,632 407,632 Fines - - - 1,840,751 Contributions - - 217,435 264,029 Investment income 232,535 217,235 245,861 1,626298 Intergovernmental - - 6,636,802 13,660,474 Forfeitures - - 56,939 56,939 Miscellaneous - - 1,711 652,030 Total revenues 232,535 4,382,158 15,136,278 88,152,832 Expenditures General government - - 273,802 10,615,947 Public safety - - 6,523,696 35,964,977 Culture and recreation - - 210,148 9,898,855 Public works - - 2,030,369 5,308,773 Capital outlay: General government - - 906,228 6,759,938 Public safety - - 388,461 406,811 Culture and recreation - - - 1,108,026 Public works - - 353,491 3,528,210 Debt service: Principal retirement - 1,755,000 - 10,595,000 Interest and fiscal charges - 443,674 430,028 3,998,358 Bond issuance costs - - 968,190 1,273,158 Total expenditures - 2,198,674 12,084,413 89,458,053 Excess(deficiency)of revenues over expenditures 232,535 2,183,484 3,051,865 (1,305,221) Other Financing Sources (Uses) Issuance of debt - - - 8,425,000 Issuance of refunding debt - - - 3,795,000 Issuance of special assessment bonds - - 11,580,000 11,580,000 Premium on issuance of debt - - - 1,082,100 Payment to refunded bond escrow agent - - - (4,182,132) Proceeds from sale of assets - - - 57,892 Transfers in - - 1,512,125 20,663,183 Transfers out - - (10,983,159) (18,128,238) Total other financing sources (uses) - - 2,108,966 23,292,805 Net change in fund balances 232,535 2,183,484 5,160,831 21,987,584 Fund balances-beginning of year 11,742,162 10,251,411 10,431,346 66,188,734 Fund balances-end of year $ 11,974,697 $ 12,434,895 $ 15,592,177 $ 88,176,318 See notes to the financial statements. 31 North Richland Hills,TX 2020 CAFR r ; 1 99 L NRH Sounds of Spring provides six weekly concerts at the NRH City Hall with free live music by some of the region's best live performers under the stars. See notes to the financial statements. 32 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30,2020 Net change in fund balances - total governmental funds $21,987,584 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 34,759 The net effect of various transactions involving capital assets (i.e. sales,trade-ins,and donations) is to increase/(decrease)net position. 1,648,232 Certain deferred inflows of resources were earned in prior year but not yet available for fund level activity. This increase/(decrease)is due to the deferred inflows becoming available in current year. (4,032,757) Certain long-term liabilities are accrued at the government-wide level but not at the fund level. The current year change in those liabilities is reported as expense in the statement of activities. Expenses recorded for accrual of interest and amortization expense are included in this category. (732,148) Bond proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net position. This is the difference between repayments and proceeds received. (9,604,069) Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet maintenance,to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities (exclusive of capital assets and debt). 3,207,791 Change in net position of governmental activities $12,509,392 See notes to the financial statements. 33 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 STATEMENT OF NET POSITION-PROPRIETARYFUNDS September 30,2020 Governmental Enterprise Funds Activities Total Internal Utility Aquatic Park Golf Enterprise Service Assets Current Assets: Cash and cash equivalents $ 47,565 $ - $ - $ 47,565 $ 7,858,132 Investments 7,763,714 582,987 253,835 8,600,536 8,324,927 Accounts receivable,net of allowances: Billed 5,062,462 - - 5,062,462 - Unbilled - - - - - Other 3,405 3,387 17,815 24,607 30,464 Interest receivable 3,844 309 140 4,293 3,827 Intergovernmental receivable 266,729 - - 266,729 - Prepaid items 11,2220 - 30,649 41,869 400,089 Inventories,at cost 292,309 46,086 77,579 415,974 136,129 Total current assets 13,451,2248 632,769 380,018 14,464,035 16,753,568 Noncurrent assets: Cash and cash equivalents 12,852,954 295,399 195,566 13,343,919 2,599,214 Investments 3,070,556 - - 3,070,556 2,462,238 Interfund loan receivable - - - - 500,000 Capital assets-net: Land 75,366 745,771 1,758,000 2,579,137 - Buildings and improvements - 2,465,964 802,762 3,268,726 53,976 Other improvements - 23,445,064 8,624,433 32,069,497 602,769 Utility plant in service 146,451,415 - - 146,451,415 - Machinery and equipment 2,673,449 780,811 2,665,596 6,119,856 10,122,801 Construction in progress 4,443,806 - - 4,443,806 - Accumulated depreciation (82365,024) (14,936,399) (7,560,907) (104,862,330) (8,168,424) Total capital assets-net 71,2279,012 12,501,211 6,289,884 90,070,107 2,611,122 Total noncurrent assets 87,2202,522 12,796,610 6,485,450 106,484,582 8,172,574 Total assets 100,653,770 13,429,379 6,865,468 120,948,617 24,926,142 Deferred Outflows of Resources Deferred loss on refunding 68,766 42,911 9,728 121,405 - Deferred outflows-OPEB 283,088 48,079 - 331,167 218,178 Deferred outflows-Pension 255,088 43,596 - 298,684 221,442 Total deferred outflows of resources 606,942 134,586 9,728 751,256 439,620 See notes to the financial statements. 34 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 STATEMENT OF NET POSITION-PROPRIETARYFUNDS September 30,2020 Governmental Enterprise Funds Activities Total Internal Utility Aquatic Park Golf Enterprise Service Liabilities Current Liabilities: Accounts payable and accrued expenses $ 1,224,714 $ 104,982 $ 143,526 $ 1,473,222 $ 1,278,315 Deposits and other liabilities 274,516 3,221 15,829 293,566 13,387 Customer deposits 3,196,459 - - 3,196,459 - Compensated absences 86,194 6,369 - 92,563 62,671 Unearned revenue - 310,533 83,846 394,379 2,662 Accrued interest payable 63,698 23,367 13,560 100,625 - Bonds payable 1,125,000 550,000 220,000 1,895,000 Capital lease payable - - 74,725 74,725 - Total current liabilities 5,970,581 998,472 551,486 7,520,539 1,357,035 Noncurrent Liabilities: Bonds payable 14,254,976 5,050,285 3,521,189 22,826,450 - Capital lease payable - - 232,784 232,784 - Compensated absences 274,915 85,524 - 360,439 235,591 Interfund loan payable - 500,000 500,000 - Intergovernmental payables 1,236,034 - 1,236,034 - Net OPEB liability 2,752,582 487,367 3,239,949 2,375,235 Net pension liability 2,145,243 335,089 - 2,480,332 1,553,268 Total noncurrent labilities 20,663,750 6,458,265 3,753,973 30,875,988 4,164,094 Total liabilities 26,634,331 7,456,737 4,305,459 38,396,527 5,521,129 Deferred Inflows of Resources Deferred gain on refunding - 6,991 - 6,991 - Deferred inflows-OPEB 813,399 132,035 945,434 548,858 Deferred inflows-Pension 547,460 92,917 640,377 460,731 Total deferred inflows of resources 1,360,859 231,943 - 1,592,802 1,009,589 Net Position Net investment in capital assets 61,592,701 7,127,962 2,374,127 71,094,790 2,611,122 Impact fees restricted for construction 6,188,722 - - 6,188,722 - Unrestricted net position(deficit) 5,484,099 (1,252,677) 195,610 4,427,032 16,223,922 Total net position(deficit) $ 73,265,522 $ 5,875,285 $ 2,569,737 81,710,544 $ 18,835,044 Reconciliation to business-type activities: Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal balances are included with business-type activities. 7,812,457 Net Position of business type activities $ 89,523,001 See notes to the financial statements. 35 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS STATEMENT OF REVENUES,EXPENSES,AND CHANGES INNET POSITION-PROPRIETARYFUNDS For the Year Ended September 30,2020 Governmental Enterprise Funds Activities Total Internal Utility Aquatic Park Golf Enterprise Service Operating Revenues Charges for services: Water and sewer service $ 37,717,774 $ $ $ 37,717,774 $ Service charges 980,050 980,050 Inspection fees 100,547 100,547 Golf course fees and charges - 1,032,999 1,032,999 Aquatic park admissions and services - 287,217 - 287,217 Other intergovernmental 102,925 - 102,925 - Risk management - - 14,014,007 Facilities and fleet management 6,925,304 Information systems management - - - - 3,066,441 Miscellaneous revenues 1,292,807 656 4,551 1,298,014 317,899 Total operating revenues 40,194,103 287,873 1,037,550 41,519,526 24,323,651 Operating Expenses Claims - - - - 8,508,702 Contractual services 2,033,131 445,208 2,478,339 1,832,222 Water purchases 10,174,957 - 10,174,957 - Wastewater treatment services 6,774,685 - 6,774,685 - Personnel services 3,236,664 1,319,657 4,556,321 3,792,253 Golf course sales and service - - 1,624,751 1,624,751 - Repairs and maintenance 7,941,828 128,251 - 8,070,079 3,117,011 Supplies 338,890 270,350 - 609,240 1,034,966 Depreciation 4,386,960 930,595 359,672 5,677,227 582,212 Total operating expenses 34,887,115 3,094,061 1,984,423 39,965,599 18,867,366 Operating income(loss) 5,306,988 (2,806,188) (946,873) 1,553,927 5,456,285 Nonoperating revenues(expenses) Investrment income 460,207 35,858 26,810 522,875 405,868 Interest and fiscal charges (398,579) (117,243) (88,038) (603,860) - Bond issuance costs (85,652) (74,089) (159,741) - Other income 19,326 - 56,127 75,453 211,994 Gain(loss)on disposal of assets 46,815 11,247 - 58,062 353,523 Total nonoperating revenues(expenses) 42,117 (70,138) (79,190) (107,211) 971,385 Income(loss)before transfers 5,349,105 (2,876,326) (1,026,063) 1,446,716 6,427,670 Transfers Transfers in - 2,309,693 751,989 3,061,682 413,029 Transfers out (4,369,851) - - (4,369,851) (1,639,805) Total transfers-net (4,369,851) 2,309,693 751,989 (1,308,169) (1,226,776) Change in net position 979,254 (566,633) (274,074) 138,547 5,200,894 Net position-beginning of year 72,286,268 6,441,918 2,843,811 81,571,997 13,634,150 Net position-end of year $ 73,265,522 $ 5,875,285 $ 2,569,737 $ 81,710,544 $ 18,835,044 Reconciliation to business-type activities: Change in net position of enterprise funds $ 138,547 Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal balances are included with business-type activities. 1,993,103 Change in net position of business type activities $ 2,131,650 See notes to the financial statements. 36 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS STATEMENT OF CASH FLOWS-PROPRIETARYFUNDS For the Year Ended September 30,2020 Governmental Enterprise Funds Activities Total Internal Utility Aquatic Park Golf Enterprise Service Cash flows from operating activities: Receipts from customers $ 39,705,516 $ 580,975 $ 1,075,817 $ 41,362,308 $ - Receipts from(payments for)interfund services provided - - - - 23,970,919 Other operating revenue 1,638,595 656 4,551 1,643,802 317,899 Payments to suppliers (27,691,439) (985,688) (1,640,140) (30,317,267) (15,248,900) Payments to employees (3,146,784) (1,309,299) - (4,456,083) (3,684,951) Net cash provided by(used for)operating activities 10,505,888 (1,713,356) (559,772) 8,232,760 5,354,967 Cash flows from noncapital financing activities: Transfers from other funds - 2,309,693 751,989 3,061,682 413,029 Transfers to other funds (4,369,851) - - (4,369,851) (1,639,805) Net cash provided by(used for)noncapital financing activities (4,369,851) 2,309,693 751,989 (1,308,169) (1,226,776) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (4,613,873) (82,234) (3,555,465) (8,251,572) (312,731) Proceeds from capital debt 3,695,000 - 3,335,000 7,030,000 Principal paid on capital debt (1,165,000) (550,000) (40,000) (1,755,000) Interest paid on capital debt (470,824) (148,780) 102,850 (516,754) - Insurance recovery proceeds 19,326 - 56,127 75,453 211,994 Proceeds from sale of capital assets 24,895 764 - 25,659 195,826 Net cash provided by(used for)capital and related financing activities (2,510,476) (780,250) (101,488) (3,392,214) 95,089 Cash flows from investing activities: Sale(purchase)of investments (2,264,639) 140,962 (105,345) (2,229,022) (743,648) Interest and dividends received 469,735 37,089 27,379 534,203 416,909 Net cash provided by(used for)investing activities (1,794,904) 178,051 (77,966) (1,694,819) (326,739) Net increase(decrease)in cash and cash equivalents 1,830,657 (5,862) 12,763 1,837,558 3,896,541 Cash and cash equivalents,beginning ofyear 11,069,862 301,261 182,803 11,553,926 6,560,805 Cash and cash equivalents,end ofyear 12,900,519 295,399 195,566 13,391,484 10,457,346 Reconciliation ofCash and Cash Equivalents to Statement ofNet Position-Proprietary Funds Cash and cash equivalents-current 47,565 - - 47,565 7,858,132 Cash and cash equivalents-noncurrent 12,852,954 295,399 195,566 13,343,919 2,599,214 Total cash and cash equivalents 12,900,519 295,399 195,566 13,391,484 10,457,346 Reconciliation ofoperating income(loss)to net cash provided by(used for)operating activities: Operating income(loss) 5,306,988 (2,806,188) (946,873) 1,553,927 5,456,285 Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating activities: Depreciation expense 4,386,960 930,595 359,672 5,677,227 582,212 (Increase)decrease in accounts receivable 686,170 18,753 6,201 711,124 (19,540) (Increase)decrease in intergovernmental receivable 242,863 - - 242,863 - (Increase)decrease in prepaid items (4,156) (21,753) (25,909) (241,162) (Increase)decrease in inventories 65,407 (17,772) 25,320 72,955 (2,401) (Increase)decrease in OPEB deferred outflows (65,034) (10,550) - (75,584) (43,796) (Increase)decrease in pension deferred outflows 1,828,485 296,617 - 2,125,102 1,231,348 Increase(decrease)in accounts payable (585,155) (139,294) 31,867 (692,582) (514,548) Increase(decrease)in other current liabilities 121,366 (2,585) (25,503) 93,278 (289) Increase(decrease)in customer deposits 155,568 - (201) 155,367 - Increase(decrease)in compensated absences 18,923 (1,153) - 17,770 59,518 Increase(decrease)in unearned revenues - 292,777 11,498 304,275 (12,892) Increase(decrease)in intergovernmental payables 39,997 - - 39,997 - Increase(decrease)in net OPEB liability (682,464) (110,709) (793,173) (459,589) Increase(decrease)in net pension liability (1,614,488) (261,902) (1,876,390) (1,087,238) Increase(decrease)in OPEB deferred inflows 771,478 125,149 896,627 519,533 Increase(decrease)in pension deferred inflows (167,020) (27,094) - (194,114) (112,474) Total adjustments 5,198,900 1,092,832 387,101 6,678,833 (101,318) Net cash provided by(used for)operating activities $ 10,505,888 $ (1,713,356) $ (559,772) $ 8,232,760 $ 5,354,967 See notes to the financial statements. 37 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS STATEMENT OF FIDUCIARYNET POSITION-FIDUCIARYFUND September 30,2020 OPEB Trust Assets Investments,at fair value: Investment in master trust $ 2,428,318 Total assets $ 2,428,318 Net Position Restricted for other post employment benefits $ 2,428,318 Total net position $ 2,428,318 See notes to the financial statements. 38 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS STATEMENT OF CHANGES INFIDUCIARYNET POSITION- FIDUCIARYFUND For the Year Ended September 30,2020 OPEB Trust Additions Contributions: Employer $ 100,000 Net investment income 177,601 Total additions 277,601 Deductions Administrative expenses 13,628 Total deductions 13,628 Change in net position 263,973 Net position-beginning 2,164,345 Net position- ending $ 2,428,318 See notes to the financial statements. 39 North Richland Hills,TX 2020 CAFR See notes to the financial statements. 40 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS Note I- Summary of Significant Accounting Policies The City of North Richland Hills, Texas (the "City")Home Rule Charter was adopted by the voters at an election held on November 3, 1964. The City operates under a Council-Manager form of government. The City provides a full range of services including police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure; parks, library, and recreational activities including tennis center operations;neighborhood services activities;planning and inspections;and the operations of a water and wastewater system, a golf course, and a public water park. A private contractor, through a franchise agreement,provides solid waste collection and disposal services for the City. The accounting policies of the City conform to accounting principles generally accepted in the United States of America ("GAAP") as applicable to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. A. Reporting Entity As required by GAAP, these basic financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. The blended component units, although legally separate entities, are, in substance, part of the primary government's operations. As such, data from these units is combined with data of the primary government. Discretely presented component units are entities that are legally separate from the City,but for which the City is financially accountable or whose relationships with the City are such that exclusion would be misleading or incomplete. Blended Component Units - The North Richland Hills Parks and Recreation Facilities Development Corporation ("PRD") is used to account for the accumulation of resources to build and improve City parks and recreational facilities and fund economic development activities. The North Richland Hills Crime Control and Prevention District("CCD")is used to account for the accumulation and use of half-cent sales tax proceeds dedicated for crime reduction programs. The PRD and CCD are reported as special revenue funds of the primary government. The Boards of Directors of both component units are substantially the same as the City Council. Tax Increment Financing District No. 1 ("TIF 41")was created to fund drainage improvements that would alleviate flooding problems,reduce property damage associated with the flooding,and stimulate development within the zone of TIF 91. In 2008, TIF 91 was expanded to provide funding for intersection improvements and the burial of utility lines to enhance economic revitalization in the area. Tax Increment Financing District 42 ("TIF 42") was created to provide funding for public improvements that would benefit the participants in and citizens of TIF 92. These TIF's meet the criteria for blending as the City Council and TIF Boards are substantially the same. In addition, although other entities are involved in the TIF, the primary financial benefit or burden relationship is between the City and the TIF's, and management of the City has day-to-day operational responsibility for the activities of the TIF. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities)report information on all of the non-fiduciary activities of the primary government and its blended component units. For the most part,the effect ofinterfund activity has been eliminated from these statements. However,interfund services provided and used are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for support. 41 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) B. Government-Wide and Fund Financial Statements (continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services,or privileges provided by a given function or segment; and grants and contributions that are designated to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus,Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources traditionally associated with governments which are not required to be accounted for in another fund.Major functions financed by the General Fund include general government, public safety, culture and recreation, and public works. Financing is provided from taxes (primarily property, sales, and franchise), licenses and permits, fines, and investment income. The General Capital Projects Fund is used to account for financial resources used for the acquisition and construction of major street, drainage, and municipal facilities capital assets. The General Debt Service Fund accounts for the accumulation of resources for the payment of principal,interest, and related charges on long-term general obligation debt of governmental funds. Financing is provided primarily by a specific annual property tax levy. 42 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) C. Measurement Focus,Basis of Accounting, and Financial Statement Presentation (continued) The Parks and Recreation Facilities Development Fund accounts for the accumulation and use of resources to build and improve City parks and recreation facilities as well as economic development projects. The City has permanently designated this fund as a major governmental fund. The Tax Increment Financing District 92 Capital Projects Fund provides funding for public improvements that would benefit the participants in and citizens of TIF 92 as well as others in the Metroplex area. The Tax Increment Financing District 92 Debt Service Fund is used to accumulate monies for the payment of principal,interest, and related charges on the debts of TIF 92. The City reports the following major proprietary funds: The Utility Fund accounts for the distribution of water, transportation of wastewater, and solid waste removal services provided to the residents of the City. All activities necessary to provide such services are accounted for in the fund,including,but not limited to, administration,operations,maintenance,financing and debt service,and billing and collections. The Aquatic Park Fund accounts for the operation of NRH2O, the City's public water park. All activities necessary to operate the park are accounted for in the fund, including, but not limited to, administration, park operations,park maintenance, and financing and debt service. The Golf Course Fund accounts for the operations of Iron Horse Golf Course,the City's public golf course. All activities necessary to operate the course are accounted for in the fund, including, but not limited to, administration,operations,course maintenance,and financing and debt service. The Golf Course in the only non- major proprietary fund. Internal Service Funds account for building maintenance services, fleet management, computer and telephone service, as well as insurance coverage provided to other departments of the City,on a cost reimbursement basis. The City also reports one fiduciary fund. The OPEB Trust Fund accounts for the activities of the long-term funding of the City's other post-employment benefits provided. These funds are contributed by the City on an annual basis to help offset future costs and outflows for post- employment benefits payments. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided,2)operating grants and contributions, and 3) capital grants and contributions,including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting the definition are reported as non-operating revenues and expenses.When both restricted and unrestricted resources are available for use,it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 43 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance Deposits and investments Deposits consist of cash and cash equivalents. Substantially all operating deposits and investments are maintained in pooled deposits and investment accounts. Interest income relating to pooled deposits and investments is allocated monthly to the participating individual funds based on each fund's pro-rata share of total pooled deposits and investments. Investments consist of(1) investments in public fund investment pools, (2) short-term investments that mature in 12 months or less from the time of purchase and (3) investments that mature in greater than 12 months from the time of purchase. Other than investment pools, most of the City's investments are long-term (i.e., at the time of purchase, the maturity equals or exceeds one year) and, accordingly, the investments are carried at fair value. The government's investment pools operate in accordance with state laws and regulations. Investments in external pools are carried at either net asset value or amortized cost, as determined by each pool's individual investment valuation method and whether there is a readily determinable fair value of the pool as of the City's fiscal year end. In instances where pools transact at amortized cost,no readily determinable fair value is deemed available. Legal provisions generally permit the City to invest in certificates of deposit,repurchase agreements,public funds investment pools, direct obligations of the United States of America or its subdivisions, and state and local government securities. During the year ended September 30, 2020, the City did not own any types of securities other than those permitted by statute. For the purposes of presenting the statement of cash flows for Proprietary Funds, cash and cash equivalents are defined as cash and the funds' investment in the City's pooled accounts which provide cash-equivalent liquidity (Note III). Receivables and payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds"(i.e.,the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectibles. The City's property tax is levied each October I on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of February 1. Taxes are due upon receipt of the tax bill. Property taxes are limited by the Texas Constitution to $2.50 per$100 of assessed valuation and by City Charter to $1.50 per$100 assessed valuation. The combined tax rate to finance general governmental service and debt service for the year ended September 30, 2020 was $0.572 per$100 of assessed valuation. 44 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance (continued) Inventories and prepaid items In accordance with the consumption method of accounting, both inventories and prepaid items of governmental funds are recorded as expenditures when consumed rather than when purchased. All inventories are valued at cost using the first-in/first-out ("FIFO") method. Inventories are offset by a fund balance reserve account in applicable governmental funds to indicate the inventory values are not available for appropriation and are not expendable financial resources. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Restricted assets Certain resources set aside for the repayment of outstanding City debt are classified as restricted assets on the balance sheet because their use is limited. The "debt service reserve funds" are used to segregate resources accumulated for outstanding debt. The "construction funds" account includes, but is not limited to, unspent bond proceeds that are limited as to use for financing the acquisition or construction of capital assets. The Crime Control and Prevention District (Special Revenue) Fund contains assets restricted for transition. The "transition"term is used to identify funds that are covered by Texas Sales Tax laws and has been restricted to offset future unforeseen circumstances (i.e. dissolution of the fund due to citizens vote to end operations of the district). If the half-cent sales tax funding CCD activities is discontinued, the restricted assets will be used to fund those activities until an alternate funding source can be identified(i.e., during the transition period). In the Utility Fund,impact fees are a restriction imposed by the City's governing body for the purpose of collection of funds from developers for specific utility infrastructure improvement projects. State of Texas Statutes grant this authority to the City Council which upon their approval is valid for a five-year period. Every five years,the impact fee plan expires and a new program must be developed and submitted to Council for approval. Assets limited to use Assets limited to use and defined as noncurrent assets in the Utility Fund are customer deposits. This limitation is contractually supported. The City is not allowed to use the funds unless it is to refund back to the customer for good standing account history or that they default upon the terms of the agreement. The Information Technology (Internal Service) Fund contains assets used for future system improvements. The intended purpose is to fund major computer system software and hardware system replacements and upgrades. The Facilities and Construction Services and Fleet Services (Internal Service) Funds contain assets to be used for building and equipment maintenance and replacement. The building reserve is used to accumulate funds for the implementation of the multi-year plan. The equipment reserve is used to accumulate funds for the replacement of vehicles and heavy equipment. 45 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance (continued) The Self-Insurance (Internal Service) Fund contains assets to be used for future insurance claims. Funds will be accumulated until needed to cover these costs of excessive claims or until management has determined sufficient funds have been accumulated to cover future claims. Future claims of the Self-Insurance Internal Service Fund are funds set aside and obligated for medical,dental,prescription,or other risk payables that could arise in future fiscal periods. This fund has a very proactive approach to plan for future claims and ensure that funding is available to pay should the need occur. Capital assets Capital assets, including property, plant, equipment, and infrastructure assets (e.g., roads, bridges, drainage facilities, parks and related improvements, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund level financial statements. Capital assets are defined by the City as assets with an initial,individual cost of at least$5,000 and an estimated useful life in excess of one year. Assets purchased or constructed are recorded at historical cost when available or estimated historical cost if actual cost is unavailable. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets of the primary government are capitalized at the following thresholds and are depreciated using the straight-line method over the following estimated useful lives: Capitalization Asset Category Useful Life Threshold Land $ - Buildings and improvements 30 years 100,000 Other improvements 30 years 100,000 Water,sewer system and other infrastructure 33 years 100,000 Furniture and fixtures,& certain machinery and equipment 10 years 5,000 Firetrucks and ambulances 20 years 5,000 Other machinery and equipment including vehicles 3-12 years * 5,000 *Range is due to different machinery and equipment having different levels of capitalization thresholds within fiscal policy. 46 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance (continued) Compensated absences City employees are granted vacation leave in varying amounts depending on length of service. Sick leave is also granted to employees. In the event of termination, an employee will be paid for all unused vacation leave credit upon separation from employment with the City. Employees who are eligible to utilize their accrued vacation but who have not completed their probationary period are not eligible to be paid for unused vacation at the time of separation. No reimbursement is made for unused accumulated sick leave upon termination of employment, except upon retirement. Upon retirement, an employee may convert up to six weeks of accrued sick leave to vacation. Sick pay is recorded when taken. All vacation pay is accrued as vested and included in accrued liabilities in the government-wide and proprietary fund financial statements. Accrued vacation pay,including converted sick leave, that is expected to be liquidated within one year,is reported as a short-term liability. The remainder of the liability is reflected as long-term. Long-term obligations In the government-wide financial statements and proprietary funds financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts and losses on bond refundings are deferred and amortized over the life of the related debt. In the fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and therefore will not be recognized as an outflow of resources(expense/expenditure)until then. The City has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in the government- wide statement of net position, deferred amounts related to pension, and deferred amounts related to OPEB. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred amounts related to pension and OPEB relate differences between estimated and actual investment earnings, changes in actuarial assumptions, and other pension and OPEB related changes. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. The City has four items that qualify for reporting in this category.Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: ambulance fees,property taxes,grants, and assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available, or within 60 days of the fiscal year-end. In the government-wide financial statements the City reports deferred amounts related to pension and deferred amounts related to OPEB. 47 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance (continued) Fund balance Fund balances are reported within one of the fund balance categories listed below: 1. Nonspendable, such as fund balances associated with inventories, prepaids, long-term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned), 2. Restricted fund balance category includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation, 3. Committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City's Council (the city's highest level of authority), 4. Assigned fund balance classification are intended to be identified and authorized for specific purposes by the City's authorized representative by the Council (City Manager) and for other purposes that cannot be classified as restricted or committed, 5. Unassigned fund balance is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. Committed Fund Balance Policy Fund balances are committed by the City Council under specific resolutions or ordinances which were adopted to restrict the utilization of special revenue sources. Once the resolutions or ordinances are adopted, the limitation imposed remains in place until a similar action is taken(the adoption of another resolution or ordinance)to remove or revise the limitation. Fund balance reporting as a result of resolutions and ordinances passed by City Council: • General Donations or contributions to the City that do not have specific goals designated by the donor are committed by council resolution to keep the original general intent for which they were received. • Drainage Utility Fees are to be utilized for the infrastructure or debt service for such infrastructure. • Gas Development funds are used for specific projects for various reasons such as deemed necessary by city management. Assigned Fund Balance Policy Approved by the fund balance policy,the City's Assigned Fund Balance is under the direction of the City Manager, (as authorized by the City Council). • Capital projects are proceeds assigned by management through budget appropriations to fund special capital projects not funded through bond proceeds, • Recreation Centre assignment is net operations for the program for future infrastructure maintenance and operational needs, • Encumbrances are purchases procured in the current fiscal year, but will not be delivered or services accomplished until the next fiscal year. This assignment of prior year encumbrances insures resources are available to complete the purchases. 48 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note I- Summary of Significant Accounting Policies (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance (continued) Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance depleted before using any of the components of unrestricted fund balance. Further when the components of unrestricted fund balance can be used for the same purposes, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Minimum Fund Balance At the end of each fiscal year,the General Fund should maintain a minimum unassigned fund balance that is no less than 15%of the subsequent year's General Fund Appropriated Expenditure budget. This target amount has been established in order to provide a reasonable level of assurance that the City's day-to-day operations will be able to continue even if circumstances occur where revenues are insufficient to cover expenditures. Note II-Reconciliation of Government-Wide and Governmental Fund Financial Statements A. Explanation of certain differences between the governmental fund balance sheet and the government- wide statement of net position The governmental fund balance sheet includes a reconciliation between fund balance —total governmental funds and net position—governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that"capital assets used in governmental activities (excluding internal service capital assets) are not financial resources and, therefore, are not reported as assets in governmental funds." The details of the difference are as follows: Capital assets,net of depreciation(internal service funds excluded) $ 320,523,084 Construction in progress (internal funds excluded) 9,360,688 Net adjustment to increase fund balance - total governmental funds to arrive at net position- governmental activities $ 329,883,772 The second element of that reconciliation explains that "certain receivables are not available to pay current-period expenditures and, therefore, are deferred in the funds." The details of the difference are as follows: Unavailable revenue $ 712,727 Net adjustment to increase fund balance - total governmental funds to arrive at the position- governmental activities $ 712,727 49 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note II-Reconciliation of Government-Wide and Governmental Fund Financial Statements (continued) A. Explanation of certain differences between the governmental fund balance sheet and the government- wide statement of net position (continued) Another element of that reconciliation explains that "the assets and liabilities of the internal service funds are included with governmental activities in the Statement of Net Position but are not included at the fund level." The details of the difference are as follows: Net position,internal service fiords combined $ 18,835,044 Amount allocated to business-type activities (7,812,457) Net adjustment to increase fiord balance-total governmental fiends to arrive at net positions-governmental activities $ 11,022,587 The last element of that reconciliation explains that "long-term liabilities (excluding internal service funds), including bonds payable and related deferred inflows and outflows of resources are not due and payable in the current period and, therefore, are not reported in the funds." The details of the difference are as follows: Bonds payable $ (99,895,000) Unamortized premiums/discounts on bonds payable (5,722,054) Deferred gain on refunding (45,385) Deferred loss on refunding 415,150 Accrued interest payable (449,313) Special assessment bonds payable (11,580,000) Compensated absences (3,185,990) Net OPEB liability (28,104,467) Deferred outflows- OPEB 1,230,225 Deferred inflows - OPEB (7,916,659) Net pension liability (16,745,200) Deferred outflows-pension 5,208,142 Deferred inflows -pension (7,151,190) Net adjustment to reduce fund balance -total governmental funds to arrive at net position-governmental activities $ (173,941,741) B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balance and the government-wide statement of activities The governmental fund statement of revenues, expenditures, and changes in fund balance includes a reconciliation between net changes in fund balance — total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of the difference are as follows: Capital outlay in excess of capitalization threshold $12,965,492 Depreciation expense (12,930,733) Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net position of governmental activities $ 34,759 50 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note II-Reconciliation of Government-Wide and Governmental Fund Financial Statements (continued) B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balance and the government-wide statement of activities (continued) The next element of that reconciliation explains that"the net effects of various transactions involving capital assets (i.e. sales, trade-ins, and donations)is to decrease net position." The details of the difference are as follows: Asset retirements and impairments,net of proceeds $ (172,866) Capital contributions from developers 1,821,098 Net adjustment to decrease net changes in fund balance -total governmental funds to arrive at changes in net position of governmental activities $ 1,648,232 The next element of that reconciliation explains that "certain revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds. These differences are the net change in deferred inflows of resources." The current year difference is $4,032,757. The next element of that reconciliation explains that"certain long-term liabilities are accrued at the government- wide level but not at the fund level." The details of the difference are as follows: (Excludes Internal Service Funds) Changes in: Accrued interest/interest expense $ (102,674) OPEB expense (371,860) Pension expense (105,319) Compensated absences (152,295) Net adjustment to decrease net changes in fund balance - total governmental funds to arrive at changes in net position of governmental activities $ (732,148) Another element of that reconciliation states that "bond proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This is the difference between repayments and proceeds received." The details of the difference are as follows: (Excludes Internal Service Funds) Debt issued or incurred: Refunding bonds $ (3,795,000) Certificates of obligation bonds (8,425,000) Special assessment bonds (11,580,000) Principal repayments on debt 10,595,000 Payments to refunding agent 4,182,132 Premium on bond sale (1,082,100) Current year amortization of bond premium,discount, deferred inflows and outflows (gain and loss) 500,899 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ (9,604,069) 51 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note II-Reconciliation of Government-Wide and Governmental Fund Financial Statements (continued) B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balance and the government-wide statement of activities (continued) Another element of that reconciliation states that "the net revenue (expense) of internal service funds is reported with governmental activities." The details of the difference are as follows: Change in net position- internal service funds combined $ 5,200,894 Income (Expenses)reflected in business-type activities (1,993,103) Net adjustment to decrease net changes in fund balances -total governmental funds to arrive at changes in net position of governmental activities $ 3207,791 Note III-Detailed Notes on all Funds A. Deposits and investments Deposits - The City maintains an entity wide cash and investment pool that is available for use by all funds. Each fund's portion of the pool is displayed on the statement of net position as"Cash,Cash Equivalents and Investments". The investment policy of the City is governed by State statute and a Council adopted City Investment Policy. Major controls stipulated in the Investment Policy include: depository limitations require Federal Deposit Insurance Corporation ("FDIC") insurance or full 100 percent collateralization; depositories are limited to Texas banking institutions; all collateral for repurchase agreements and deposits held by independent third party trustees; all settlement is delivery versus payment; all authorized investments are defined; and diversification guidelines are set as are maximum maturity and maximum weighted average maturity. State statutes require all time and demand deposits to be fully insured or collateralized. At September 30, 2020, the bank balances of the City's demand deposits were $8,682,859. Accounts with under $250,000 balance of either an interest-bearing account or non- interest-bearing account are covered by FDIC deposit insurance. The total cash held in demand deposits has been materially collateralized and meets statutes' requirements. As of September 30, 2020, the City's investment pool portfolio (excluding bank deposits) are held by the City's custodian in the City's name under written agreements. The City's custodian is JP Morgan Chase. The City's investment portfolio, excluding the fiduciary fund,held the following cash, cash equivalents, and investments as of September 30, 2020: Cash on hand(petty cash,cashier tills) $ 21,402 Demand Deposit Accounts 18,980,864 Investment Pools 50,749,881 Commercial Paper 1,399,009 U.S. Treasury Notes 21,211,942 U.S. Agencies and Governmental Sponsored Agencies 32,784,634 Total deposits and investments $ 125,147,732 Legal provisions generally permit the City to invest in certificates of deposit,repurchase agreements,public funds investment pools, direct obligations of the United States of America or its subdivisions, and state and local government securities. Because the City is responsible for the investment portfolio of its blended component units, the City's investment practices and policies disclosed herein apply equally to its component units. During the year ended September 30, 2020, the City did not own any types of securities other than those permitted by statute. 52 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) A. Deposits and investments (continued) TexPool falls under the purview of the Texas Comptroller of Public Accounts ("Comptroller") who is responsible for oversight of TexPool operations. TexasTERM is directed by an Advisory Board of experienced local government officials,finance directors and treasurers and is managed by a team of industry leaders that are focused on providing professional investment services to investors. Duties of the governing boards include oversight responsibility. The Comptroller and the governing boards exercise oversight of the pools' activities via daily, weekly, and monthly reporting requirements. Additionally, per the requirements of the Public Funds Investment Act ("PFIA"), all pools will maintain an AAA or equivalent rating from at least one nationally recognized rating agency. The PFIA also requires an annual examination of the financial statements of the pools by an independent certified public accounting firm. TexPool is carried at amortized cost and TexasTERM is carried at net asset value. Investments -Weighted average maturity ("WAM") of the portfolio by investment type categories reflected in the following table is stated in days. Investment type acronyms displayed in the following table are defined as follows: FHLB — Federal Home Loan Bank, FHLMC — Federal Home Loan Mortgage Corporation, FNMA — Federal National Mortgage Association, and USTR — U.S. Treasury Notes. The rating agency acronym is defined as follows: S&P— Standard and Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. Additional information about the rating agency or the significance of the ratings provided may be obtained from the agency's web site. As of September 30, 2020, the City held the following investments: Rating Carrying Investment Type WAM Rating Agency Value Investment Pools: TexPool 38 AAAm S&P S 45,273,318 Texas TERM 57 AAAm S&P 5,476,563 Total Investment Pools 50,749,881 Commercial Paper 114 A-1 S&P 1,399,009 U.S. Treasuries 568 AA+ S&P 21,211,942 U.S. Agencies and Governmental Sponsored Agencies: FHLB 769 AA+ S&P 3,028,188 FHLMC 835 AA+ S&P 14,446,702 FNMA 825 AA+ S&P 9,570,215 FFCB 541 S&P 4,532,293 Municipal Bond 332 AA S&P 1,207,236 Total U.S. Agencies and Governmental Sponsored Entities 32,784,634 Total Portfolio 371 S 106,145,466 In accordance with GASB Statement No. 72, "Fair Value Measurement and Application," the City records investments at fair value. However, for participating interest-earning investments contracts with maturities of one year or less at time of purchase, the City reports these investments at amortized cost. 53 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) A. Deposits and investments (continued) Interest Rate Risk Interest rate risk is the potential for a decline in market value due to rising interest rates. In accordance with its formally adopted investment policy, the City manages its exposure to declines in fair market value by limiting the portfolio's weighted average maturity to a maximum of 730 days. The City also employs an investment maturity laddering structure to stagger investment maturities at various monthly rungs on the ladder. This laddering structure provides the City with the ability to reinvest the proceeds from the maturities in higher-yielding securities given the proceeds are not required to meet immediate cash flow needs. Custodial Credit Risk Custodial credit risk is the risk that a government will not be able to recover(a)deposits if the depository financial institution fails or(b)the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. To minimize such risk, the City requires collateralization of most deposits in excess of coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with a third-party safekeeping agent. In conjunction with JP Morgan Chase, the City has exercised the option to accept a Federal Home Loan Bank Irrevocable Standby Letter of Credit, as the first $9,600,000 of collateral. Per the terms of its depository agreement, for bank deposits in excess of the coverage provided by the FDIC, the City requires the depository bank to pledge to the City securities (collateral) equal to the following percentages, as applicable, to the largest balances the City maintains in the Bank. Maturity of Collateral U.S. Treasuries Other Securities 1 year or less 101% 102% 1 year to 5 years 102% 105% Over 5 years 103% 110% The percentages as shown reflect the requirement based on fair value of the pledged securities. The City's depository bank also acts as its safekeeping agent per the terms of the depository contract. City policy dictates that all securities rendered for payment will be sent delivery vs.payment meaning that the funds required for purchase of a security will not be released until the safekeeping agent has received the security purchased in the City's name. No broker holds City funds. The City does not purchase securities from its depository bank or any subsidiary banks of the same bank holding company. Credit Risk The Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. In order to minimize credit risk,the City limits investments to those rated as to investment quality of not less than "A" or its equivalent by a nationally recognized rating firm. Diversification of the portfolio is also employed to manage credit risk. The investment policy limits the percentage of the portfolio that may be invested in any specific type of security. Ratings for the City's investments and the percentage of the total portfolio of each investment type held at the end of year can be found on the first table in this section. 54 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) A. Deposits and investments (continued) Other Post-Employment Benefit ("OPEB") Trust Fund Investments The City has contracted with Public Agency Retirement Services("PARS")for trust administration and Union Bank serves as the trustee for all investments of the OPEB Trust Fund. The OPEB Plan does not have a formal policy for custodial credit risk. As of September 30, 2020 all investments are registered in the name of the OPEB Plan's custodian established through a master trust custodial agreement. The OPEB Trust Fund investments are carried at fair value of$2,428,318 as of September 30, 2020. The investment in master trust is classified in Level 3 of the fair value hierarchy using quoted market prices of the mutual funds owned by the trust, allocated among members. The Trust's funds are invested in a mutual fund that is invested in equity, money market and fixed income mutual funds. The investment strategy of the OPEB Trust Fund is to provide current income with capital appreciation. The credit rating and weighted average maturity is not available for the pool. • Interest Rate Risk—Interest rate risk is the potential for a decline in market value due to rising interest rates. In accordance with its formally adopted investment policy, the Trust committee has chosen to use moderate risk levels. Exposure to market fluctuations can occur, and the investment strategy is reviewed annually to ensure that exposure to these market fluctuations is appropriate. • Custodial Credit Risk — Custodial credit risk is the risk that a government will not be able to recover (a) deposits if the depository financial institution fails or(b) the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. The Trust is not covered by any collateral agreement or FDIC insurance. • Credit Risk—The Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The risk tolerance chosen by the Trust is moderate. The mutual fund investment is not rated. Fair Value of Assets Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices,such as quoted prices for similar assets or liabilities;quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities Where quoted marketprices are available in an active market,securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including,but not limited to,yield curves, interest rates,volatilities,prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. 55 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) A. Deposits and investments (continued) Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying financial statements measured at fair value on a recurring basis and the level within the fair hierarchy in which the fair value measurements fall at September 30, 2020: Fair Value Level 1 Level 2 Level 3 Investments measured at fair value: U.S. Treasury Obligations S 21,211,942 S - S 21,211,942 S - U.S. Agency Securities 32,784,634 - 32,784,634 - Investment in Master Trust 2,428,318 - - 2,428,318 Commercial Paper 1,399,009 - 1,399,009 - Total investments measured at fair value 57,823,903 S - S 55,395,585 S 2,428,318 Investments measured at net asset value - TexasTERM 5,476,563 Investments measured at amortized cost- TexPool 45,273,318 Total investments S 108,573,784 Certain investments that are measured using the net asset value per share (or its equivalent)practical expedient or amortized cost have not been classified in the fair value hierarchy. The fair value amounts included above approximate net asset value for all related external investment pool balances. Investments in State Investment Pools During the year, the City invested in multiple public investment pools, including TexPool and TexasTerm. TexasTerm is measured at net asset value and are designed to approximate the share value, while TexPool is measured at amortized cost. Each pool's governing body is comprised of individuals who are employees, officers, or elected officials of participants in the funds or who do not have a business relationship with the fund and are qualified to advise. Investment objective and strategies of the pools are to seek preservation of principal, liquidity and current income through investment in a diversified portfolio of short-term marketable securities. Pools offer same day access to investment funds. 56 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) B. Receivables Governmental and Business-type funds' receivables as of year-end for the City's major funds and non-major in the aggregate,net of the applicable allowances for uncollectible accounts, are as follows: Governmental Funds: General Parks and TIF 92 Non-major Total General Capital General Recreation Capital TIF 92 Debt Governmental Governmental Fund Projects Debt Service Development Projects Fund Service Fund Funds Funds Accounts $ 433,554 $ $ $ $ $ $ 188,768 $ 622,322 Property taxes 919,939 - 919,939 Other taxes 2,150,751 979,932 1,047,338 4,178,021 Interest 3,572 1,820 219 746 1,878 2,204 2,331 12,770 Special assessments - 132,657 - - - - - 132,657 Intergovernmental 359,074 - - 914,918 1,273,992 Other 107,318 6,075,000 - 32,481 - - 1,529,144 7,743,943 Total 3,974,208 6,209,477 219 1,013,159 1,878 2,204 3,682,499 14,883,644 Allowance (666,221) - - - - - (4,905) (671,126) Total(net of allowance) $3,307,987 $6,209,477 $ 219 $ 1,013,159 $ 1,878 $ 2,204 $ 3,677,594 $ 14,212,518 Proprietary Funds: Total Aquatic Enterprise Internal Utility Park Golf Funds Service Accounts $5,266,782 $ 3,387 $ 17,815 $ 5,287,984 $ 30,464 Interest 3,844 309 140 4,293 3,827 Intergovernmental 266,729 - - 266,729 - Total 5,537,355 3,696 17,955 5,559,006 34,291 Allowance (200,915) - - (200,915) Total(net of allowance) $5,336,440 $ 3,696 $ 17,955 $ 5,358,091 $ 34,291 Unearned Revenue At the end of the current fiscal year, the various components of unearned revenue were as follows: Unearned Revenue General Fund: Escrow deposits $ 19,173 LEOSE Public Safety proceeds 75,956 Total General Fund 95,129 Parks and Recreation Development: Centre and event deposits for future services 128,942 Non-major Governmental Funds: Gas development 1,456,591 Enterprise Funds: Advanced Payments,Gift Certificates,Store Credit 394,379 Internal Service Funds: Information technology advance payments 2,662 Total Unearned Revenue $ 2,077,703 57 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) C. Capital assets Capital asset activity for the primary government for the year ended September 30, 2020,was as follows: Beginning Ending Governmental activities: Balance Increases Decreases Transfers Balance Capital assets,nondepreciable: Land $ 78,484,139 $ - $ - $ - $ 78,484,139 Works of art 310,208 - - - 310,208 Assets held for sale 14,612 - - - 14,612 Construction in progress 4,991,142 9,643,770 (139,868) (5,134,356) 9,360,688 Total nondepreciable 83,800,101 9,643,770 (139,868) (5,134,356) 88,169,647 Capital assets,depreciable: Buildings 125,136,695 - - 1,315,130 126,451,825 Other improvements 252,145,689 2,011,398 - 1,905,594 256,062,681 Machinery and equipment 33,545,747 3,601,850 (1,735,496) 1,913,632 37,325,733 Total depreciable 410,828,131 5,613,248 (1,735,496) 5,134,356 419,840,239 Less accumulated depreciation for: Buildings (29,971,891) (4,264,953) - - (34,236,844) Other improvements (115,985,215) (7,161,802) - - (123,147,017) Machinery and equipment (17,747,439) (2,086,190) 1,702,498 - (18,131,131) Total accumulated depreciation (163,704,545) (13,512,945) 1,702,498 - (175,514,992) Total depreciable -net 247,123,586 (7,899,697) (32,998) 5,134,356 244,325,247 Governmental activities -net $330,923,687 $ 1,744,073 $ (172,866) $ - $332,494,894 Beginning Ending Business-type activities: Balance Increases Decreases Transfers Balance Capital assets,nondepreciable: Land $ 2,579,137 $ - $ - $ - $ 2,579,137 Construction in progress 1,572,320 6,524,785 (40,675) (3,612,624) 4,443,806 Total nondepreciable 4,151,457 6,524,785 (40,675) (3,612,624) 7,022,943 Capital assets,depreciable: Buildings 3,268,726 - - - 3,268,726 Utility plant 144,908,231 1,346,640 - 196,544 146,451,415 Other improvements 28,653,417 - - 3,416,080 32,069,497 Machinery and equipment 5,735,071 453,225 (68,440) - 6,119,856 Total depreciable 182,565,445 1,799,865 (68,440) 3,612,624 187,909,494 Less accumulated depreciation for: Buildings (2,802,434) (16,471) - - (2,818,905) Utility plant (76,153,509) (4,215,446) 16,876 - (80,352,079) Other improvements (16,022,341) (1,036,030) - - (17,058,371) Machinery and equipment (4,275,259) (409,280) 51,564 - (4,632,975) Total accumulated depreciation (99,253,543) (5,677,227) 68,440 - (104,862,330) Total depreciable -net 83,311,902 (3,877,362) - 3,612,624 83,047,164 Business-type activities -net $ 87,463,359 $ 2,647,423 $ (40,675) $ - $ 90,070,107 58 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) C. Capital assets (continued) Depreciation expense was charged to functions/programs of the primary government as follows: Depreciation Governmental activities: Expense General government $ 3,180,308 Public safety 1,442,844 Culture and recreation 2,192,886 Public works 6,114,695 Facilities and construction 24,454 Fleet services 493,096 Information systems 64,662 Total governmental activities $ 13,512,945 Depreciation Business-type activities: Expense Water and sewer $ 4,386,960 Aquatic park 930,595 Golf course 359,672 Total business-type activities $ 5,677,227 Construction Commitments The City has active construction projects as of September 30, 2020. The projects include street construction, widening, and streetscaping, as well as construction of drainage facilities, parks and park improvements, and municipal facilities. At year-end the City's commitments with contractors were as follows: Stored and Project Completed to Remaining Authorization Date Commitment Streets,drainage,public safety,park improvements,municipal facilities,equipment, and utility improvements $ 169,661,772 $ 13,804,494 $ 155,857,278 Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows: Encumbrances General fund $ 15,952 Capital projects fund 4,099,852 Total $ 4,115,804 59 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) D. Interfund Receivables,Payables, and Transfers At September 30, 2020, current interfund balances consisted of the following: Interfund Interfund Receivable Payable Governmental: General Fund $ 783,128 $ - Other governmental - 783,128 Total governmental funds $ 783,128 $ 783,128 In fiscal year 2018,the City approved a long-term interfund loan to be paid in future years payable from the Aquatic Park to the Self-Insurance fund. The original amount of the loan was $500,000 and the amount outstanding as of September 30, 2020 was $500,000. Transfers In/Out amounts for Governmental and Proprietary Funds are as follows: Trans fe r in: General General Parks and Non-major Internal General Capital Debt Recreation Governmental Aquatic Service Fund Projects Service Development Funds Park Golf Funds Total Transfers out: Governmental: General Fund $ - $ 1,050,000 $ $ 487,102 $ 9,063 $2,309,693 $ $238,029 $ 4,093,887 General Capital Projects 734,056 - - - - 734,056 Parks and Recreation Development 499363 1,171,000 509,030 137,743 2,317,136 TIT 92 Fund - - - - - Non-major governmental 106,482 8,511,188 248,181 1,365319 - 751,989 - 10,983,159 Subtotal govemmentalfimds 1339901 10,732,188 757,211 487,102 1,512,125 2,309,693 751989 238,029 18,128,238 Proprietary: Utility fiord 4,194,851 175,000 4,369,851 Subtotal enterprise fiords 4,194,851 175,000 4,369,851 Internal service fiords 498973 1,140,832 1,639,805 Total $6,033,725 $11,873,020 $757,211 $ 487,102 $ 1,512,125 $2,309,693 $751989 $413,029 $24,137,894 Governmental During fiscal year 2020,the General Fund received a total of$6,033,725 from other funds.Transfers in of$734,056 were received to offset operating and debt service impacts associated with the City Hall project from funds previously set aside for that purpose. Internal Service Funds transferred $498,973 to offset debt service impacts associated with capital equipment and vehicle purchases. Parks and Recreation Development Corporation transferred$499,363 for indirect cost and to cover its portion of a sales tax based economic development incentive. Other governmental funds provided a series of transfers totaling $106,482, comprised of$30,156 from the Crime Control District for its share of the sales tax based economic development incentive, $46,326 from the Grant Fund to reimburse for administrative expenses associated with grants, and$30,000 from the Donations Fund. The Utility fund transferred $4,194,851 for payment for administration fees,payment in lieu of tax, and franchise fees. During fiscal year 2020,the General Fund transferred out to other funds a total of$4,093,887. Transfers to General Capital Funds included $1,050,000 for Streets and Sidewalks and Information Services capital projects. An operational supplement transfer of$487,102 to the Parks and Recreation Fund for NRH Centre and $238,029 was transferred to Internal Service Funds, including $209,154 to the Information Technology Fund and $28,875 to the Fleet Maintenance Fund. A one-time transfer of $2,309,693 to the Aquatic Park to offset losses due to the extraordinary shut down of operations resulting from the COVID-19 pandemic. An additional $9,063 was transferred from the General Fund for local required funding for grants. 60 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) D. Interfund Receivables,Payables, and Transfers (continued) Governmental(continued) General Capital Projects received$1,050,000 from the General Fund for street and sidewalk maintenance,drainage, information services projects,neighborhood reinvestments and facility construction projects.Parks and Recreation Development transferred $1,171,000 for capital projects associated with the Parks system. Other governmental funds transferred $575,000 from the Drainage Utility Fund, $5,646,188 from the Grants fund for reimbursements for grant funded projects, and $2,290,000 from the Gas Development Fund for related capital projects. Internal Service funds transferred$1,140,832 for the purchase of machinery and equipment and related debt service. General Debt Service received transfers from self-supporting debt repayment sources each year. Parks and Recreation Development Corporation and Other Governmental transferred$509,030 and $248,181 respectively. Parks and Recreation Development Corporation received a transfer for the General Fund's annual contribution for Recreation Centre operations in the amount of$487,102. Non-Major Governmental funds received additional funding for economic development projects from the Parks and Recreation Development Fund in the amount of$137,743. Funding of$9,063 was received from the General Fund for matches on grants and to support the Crime Control District fund. Transfers between individual non-major governmental funds totaled $1,365,319 which included $1,338,089 from the City Point Development Fund to the City Point Development Bond Fund to pay for debt service on special assessment bonds. Proprietary Internal Service Funds received additional funding to help offset non-capital project related costs above normal operations. Specifically,these transfers went to the Information Technology Fund and were respectively $238,029 (General Fund) and $175,000 (Utility Fund). A transfer from the Gas Development fund to the Golf Course of$751,989 was made to offset operational losses incurred due to the reconstruction project of the Iron Horse Golf Course. A transfer to the Aquatic Park of $2,309,693 from the General Fund was made to offset losses incurred due to the extraordinary COVID-19 pandemic that required the park to cease operations during the summer operating season. E. Long-term debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets such as streets, drainage structures, and municipal facilities, as well as for the purpose of refunding a portion of its outstanding debt. In prior year, the government defeased certificate of obligation bonds by placing the proceeds of the new bonds in an irrevocable trust account to provide for all future debt service payments on the old bonds. Accordingly,the trust account assets and the liability for the defeased bonds are not included in the government's financial statements. At September 30, 2020, the City did not have any defeased bonds outstanding. 61 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) General obligation bonds currently outstanding are as follows: Interest Principal Purpose Rate s Amount Governmental activities 2.00 - 5.50% $ 53,150,000 Business-type activities 2.00 - 5.00% 3,590,000 $ 56,740,000 Annual debt service requirements to maturity for general obligations bonds are as follows: Year Ending Governmental Activities Business-type Activities September 30, Principal Interest Principal Interest 2021 $ 5,785,000 $ 1,632,337 $ 530,000 $ 117,975 2022 5,140,000 1,462,997 520,000 99,975 2023 4,965,000 1,302,496 515,000 83,100 2024 4,710,000 1,154,483 395,000 69,325 2025 4,450,000 1,016,551 395,000 56,775 2026 4,435,000 878,287 385,000 43,238 2027 3,840,000 741,465 330,000 29,300 2028 3,745,000 609,399 295,000 15,675 2029 3,540,000 481,990 210,000 5,025 2030 3,265,000 362,335 15,000 375 2031 2,895,000 256,616 - - 2032 2,800,000 161,231 - - 2033 1,505,000 87,669 - - 2034 1,015,000 42,219 - - 2035 185,000 21,100 - - 2036 185,000 16,900 - - 2037 185,000 12,700 - - 203 8 185,000 8,500 - - 2039 160,000 4,800 - - 2040 160,000 1,600 - - $ 53,150,000 $ 10,255,673 $ 3,590,000 $ 520,763 Private placement general obligation bonds currently outstanding are as follows: Interest Principal Purpose Rates Amount Governmental activities 2.00 - 5.50% $ 835,000 Business-type activities 2.00 - 5.00% 140,000 $ 975,000 62 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) Annual debt service requirements to maturity for private placement general obligations bonds are as follows: Year Ending Governmental Activities Business-type Activities September 30, Principal Interest Principal Interest 2021 $ 270,000 $ 16,030 $ 20,000 S 2,977 2022 265,000 9,904 20,000 2,519 2023 65,000 6,126 20,000 2,061 2024 60,000 4,695 20,000 1,603 2025 60,000 3,321 20,000 1,145 2026 60,000 1,947 20,000 687 2027 55,000 630 20,000 229 S 835,000 S 42,653 S 140,000 S 11,221 Certificates of Obligation The City also issues certificates of obligation("CO's")to finance the acquisition and construction of capital assets including certain capital improvement projects, municipal facilities, and machinery and equipment. The bonds are generally issued as 20-year serial bonds with equal amounts of principal maturing each year. Certificates of Obligation bonds currently outstanding are as follows: Interest Principal Purpose Rate s Amount Governmental activities 1.25 - 5.00% $ 45,910,000 Business-type activities 1.25 - 5.00% 20,095,000 $ 66,005,000 63 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) Annual debt service requirements to maturity for certificates of obligation of the primary government are as follows: Year Ending Governmental Activities Business-type Activities September 30, Principal Interest Principal Interest 2021 S 4,870,000 S 11751,804 S 1,345,000 S 677,484 2022 4,385,000 1,587,377 1,345,000 633,953 2023 4,380,000 1,417,525 1,305,000 590,154 2024 4,040,000 1,253,304 1,305,000 546,459 2025 3,985,000 1,092,997 1,245,000 501,298 2026 3,935,000 930,453 1,240,000 455,107 2027 3,860,000 766,530 1,240,000 407,167 2028 2,565,000 624,730 1,240,000 357,383 2029 2,135,000 518,780 1,240,000 309,449 2030 2,025,000 428,354 1,240,000 266,420 2031 2,020,000 341,213 1,225,000 226,250 2032 1,875,000 258,475 1,120,000 187,938 2033 1,875,000 179,891 860,000 155,307 2034 1,870,000 101,097 860,000 126,306 2035 565,000 53,125 825,000 97,569 2036 565,000 35,772 820,000 69,247 2037 515,000 19,181 650,000 44,097 2038 230,000 7,903 640,000 22,025 2039 115,000 3,225 350,000 5,469 2040 100,000 1,000 - - S 45,910,000 S 11,372,736 S 20,095,000 S 5,679,080 Special Assessment Bonds-City Point Improvement District(TIF #3) In fiscal year 2020, the City issued Special Assessment Revenue Bonds, Series 2019 (City Point Public Improvement District Improvement Zone A Project)in the amount of$2,615,000 and Special Assessment Revenue Bonds, Series 2019 (City Point Public Improvement District Improvement Zone B Project) in the amount of $8,965,000. The City Point Public Improvement District(the "District"was created for the purpose of undertaking and financing certain public improvements within the district as authorized by the PID Act and approved by the City Council. The City will pay the project costs for the improvement within Zone A and Zone B from proceeds of the corresponding bonds. Special assessment bonds currently outstanding are as follows: Interest Principal Purpose Rate s Amount Governmental activities 4.50 - 5.63% $ 11,580,000 64 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2021 $ 205,000 $ 609,375 2022 225,000 599,888 2023 230,000 589,463 2024 245,000 578,813 2025 250,000 567,469 2026 265,000 555,900 2027 275,000 542,625 2028 295,000 528,844 2029 310,000 514,069 2030 320,000 498,525 2031 340,000 482,494 2032 350,000 464,175 2033 375,000 445,313 2034 395,000 425,101 2035 420,000 403,800 2036 440,000 381,150 2037 460,000 357,413 2038 490,000 332,588 2039 520,000 306,132 2040 550,000 278,044 2041 355,000 248,325 2042 380,000 229,244 2043 395,000 208,819 2044 420,000 187,588 2045 440,000 165,013 2046 470,000 141,363 2047 495,000 116,100 2048 525,000 89,494 2049 555,000 61,275 2050 585,000 31,444 $ 11,580,000 $ 10,939,846 Capital Leases The Golf Fund entered into a lease agreement as lessee in fiscal year 2020 for the financing the acquisition of golf cart equipment originally valued at$312,851. The equipment has a five year estimated useful life with a remaining net book value of$307,509. This lease agreement qualifies as a capital lease for accounting purposes and,therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2020 was $307,509. 65 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) Annual lease payments for the capital lease are as follows: Year Ending September 30, 2021 $ 74,725 2022 77,267 2023 79,895 2024 75,622 Total Minimum Lease Payments $ 307,509 Long-term liability activity for the year ended September 30, 2020,is reflected in the following tables. Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds payable: General obligation bonds $ 53,885,000 $ 7,545,000 $ (8,280,000) $ 53,150,000 $ 5,785,000 General obligation bonds - Private placement 1,115,000 - (280,000) 835,000 270,000 Certificates of obligation 47,385,000 4,675,000 (6,150,000) 45,910,000 4,870,000 Special assessment bonds - 11,580,000 - 11,580,000 205,000 Premium on bond issues 5,140,853 1,082,100 (500,899) 5,722,054 - Compensated absences 3,272,439 684,988 (473,175) 3,484,252 585,591 Total Governmental Activities $110,798,292 $ 25,567,088 $(15,684,074) $120,681,306 $11,715,591 Business-type Activities: Bonds payable: General obligation bonds $ 3,910,000 $ 190,000 $ (510,000) $ 3,590,000 $ 530,000 General obligation bonds - Private placement 160,000 - (20,000) 140,000 20,000 Certificates of obligation 14,685,000 6,840,000 (1,430,000) 20,095,000 1,345,000 Capital lease 77,182 312,851 (82,524) 307,509 74,725 Premium on bond issues 693,849 263,064 (60,463) 896,450 - Compensated absences 435,232 46,395 (28,625) 453,002 92,563 Total Business-type Activities $ 19,961,263 $ 7,652,310 $ (2,131,612) $ 25,481,961 $ 2,062,288 Current Year Debt Issuances In December 2019,the City issued Series 2019 General Obligation Refunding Bonds in the amount of$3,985,000. The bonds were issued at a premium of$485,647 and mature in fiscal year 2030 with interest rates ranging from 2.5% to 5.0%. The proceeds from the sale were used for(i)refunding a portion of the City's outstanding debt and (ii) payment of the costs of issuance of the bonds. The refunding transaction resulted in an economic gain of $391,853. 66 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note III-Detailed Notes on all Funds (continued) E. Long-term debt(continued) In December 2019,the City issued Series 2019A Tax and Waterworks and Sewer System(Limited Pledge)Revenue Certificates of Obligation in the amount of$6,040,000. The certificates were issued at a premium of$488,498 and mature in fiscal year 2037 with interest rates ranging from 2.125% to 5.0%. The proceeds from the sale are being used for (1) constructing, renovating, equipping, and improving various City streets, including drainage, landscaping, curbs, gutters, sidewalks, entryways, signage, lighting and traffic signalization incidental thereto and the acquisition of land and rights-of-way therefor, (ii) acquiring fleet vehicles and equipment for various City departments, including fire/emergency services department and public works department, (iii) constructing, renovating and improving City facilities, (iv)constructing,acquiring,purchasing,renovating,enlarging,equipping, and improving the City's water and sewer system facilities, including the acquisition of land and rights-of-way therefor and(v)professional services rendered in relation to such projects and the financing thereof. In December 2019,the City issued Series 2019B Tax and Waterworks and Sewer System(Limited Pledge)Revenue Certificates of Obligation in the amount of$3,335,000. The certificates were issued at a premium of$24,089 and mature in fiscal year 2036 with interest rates ranging from 2.69%to 3.125%. The proceeds from the sale are being used for (1) constructing, improving and equipping the City's golf course and related infrastructure and facilities; and(ii)professional services rendered in relation to such projects and the financing thereof. In September 2020,the City issued Series 2020 Tax and Waterworks and Sewer System (Limited Pledge)Revenue Certificates of Obligation in the amount of$2,140,000. The certificates were issued at apremium of$147,571 and mature in fiscal year 2031 with interest rates ranging from 2.0% to 3.0%. The proceeds from the sale will be used for (1) constructing, renovating, equipping and improving various City streets, including drainage, landscaping, curbs,gutters,sidewalks,entryways,signage,lighting and traffic signalization incidental thereto and the acquisition of land and rights-of-way therefor, and (ii) professional services rendered in relation to such projects and the financing thereof. The proceeds were not received until subsequent to the fiscal year-end and the funds are therefore recorded as a receivable as of September 30,2020. In September 2020,the City issued Series 2020 General Obligation Bonds in the amount of$3,750,000. The bonds were issued at apremium of$199,360 and mature in fiscal year 2030 with interest rates ranging from 2.0%to 3.0%. The proceeds from the sale will be used for (1) street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and rights-of--way, (ii) drainage improvements„ and(iii)professional services rendered in relation to such projects and the financing thereof. The proceeds were not received until subsequent to the fiscal year-end and the funds are therefore recorded as a receivable as of September 30, 2020. In December 2019, the City issued Special Assessment Revenue Bonds, Series 2019 (City Point Public Improvement District Improvement Zone A Project)in the amount of$2,615,000 and Special Assessment Revenue Bonds, Series 2019 (City Point Public Improvement District Improvement Zone B Project) in the amount of $8,965,000. The proceeds from the sale will be used to pay a portion of the costs of the corresponding zone's public improvements, funding reserve accounts for future debt service payments, and paying for formation costs allocable to the corresponding zones. 67 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information A. Risk Management The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions;and natural disasters. While the City has historically retained aportion of these risks,coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation;property damage; commercial crime coverage;and employee life insurance. Premiums are paid into the self-insurance internal service fund by all other participating funds and are available to pay claims, claim reserves, and administrative costs of the program. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for health and dental as well as workers' compensation claims that have been incurred but not reported ("IBNR"). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly,claims are reevaluated periodically to consider the effects of inflation,recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. An excess coverage medical insurance policy covers individual claims in excess of$175,000 and/or$10,386,756 in the aggregate for a 12-month period beginning on January 1, 2020. Changes in the balances of claims liabilities during the past two years are as follows: 2020 2019 Unpaid claims,beginning of year $ 1,258,714 $ 1,249,026 Incurred claims (including IBNR) 9,205,107 10,861,626 Claim expense (9,377,696) (10,851,938) Unpaid claims,end of year $ 1,086,125 $ 1,258,714 B. Contingent Liabilities The City is a defendant in certain lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. C. Postemployment Benefits The City offers its employees a deferred compensation plan (the "Plan") created in accordance with Internal Revenue Code Section 457. The Plan is administered by Public Employees Benefit Services Corporation. In 1998, the City implemented the requirements of GASB No. 32, Accounting and Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. In accordance with this statement and tax law, the City has amended its trust agreements which establish that all assets and income of the trust are for the exclusive benefit of eligible employees and their beneficiaries. Due to the implementation of these changes,the City does not have any fiduciary responsibility or administrative duties relating to the deferred compensation plan other than remitting employees' contributions to the trustees. Accordingly, the City has not presented the assets and liabilities of the Plan in these basic financial statements. 68 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) C. Postemployment Benefits (continued) Retiree Healthcare Plan Plan Description-The City of North Richland Hills Retired Employees Healthcare Plan("NRHREHP")is a single- employer defined benefit healthcare plan and is self-administered through an internal oversight committee (appointed by the City Manager through conveyed authority from City Council). NRHREHP provides medical, prescription, and dental insurance benefits to eligible retirees and their spouses. City council is the authoritative body granting health care benefits for both active and retired employees. The City provides postretirement health and dental care benefits for retirees and their dependents. The City does not have a separate audited generally accepted accounting principles financial report for the retiree health plan. Benefits Provided Full-time employees of the City who meet the City's requirements are eligible to participate in the retiree health care plan. Upon terminating from active service, employees must have separated in "good standing",be eligible to retire under the Texas Municipal Retirement System (age 60 with 5 years of service or 20 years of service at any age) with the declared intent to begin to receive an annuity check from TMRS, and must have been covered under the City's health plan on the retiree's last day of active employment. Reduced premium rates for medical and dental coverage are offered to eligible retirees that have attained age 55 at retirement and meet one of the following plan rules: Plan Rule Multiplier 90 Plan 1.00 85 Plan 1.25 80 Plan 1.50 Access Plan 1.75 To be eligible for the 90 Plan, 85 Plan or 80 Plan, retirees must have attained the applicable combined number of years of service plus age at time of retirement. To be eligible for the Access Plan,retirees must have attained age 60 with at least 10 years of service. Service requirements are based on continuous service with the City of North Richland Hills. Pre-65 medical premiums for 90 Plan retirees will be set to 20%of the total cost. Dental premiums for 90 Plan retirees are also reduced. For retirees that meet one of the other Plan Rules, applicable multiplier is applied to the premium rates for 90 Plan retirees. Medical coverage through the City's pre-65 health plan ceases when retirees/spouses become eligible for Medicare benefits. Vision benefits are available to retirees through a fully insured plan in which retirees pay 100% of the vision premiums. The City does not provide life insurance coverage for retirees or their dependents. At December 31, 2019, valuation and measurement date, the following employees were covered by the benefit terms: Membership Retirees and beneficiaries 190 Inactive,nonretired members - Active members 559 Total 749 69 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) C. Postemployment Benefits (continued) Contributions - The contribution requirements of plan members and the City are established and may be amended by the City Council members. The required contribution is based on projected pay-as-you-go financing requirements,with an additional amount to prefund. For plan year 2019, the City contributed a total of$1,477,599 to the plan for benefit payments,which was for health insurance benefit payments. Net OPEB Liability-The City's net OPEB liability ("NOL")was measured as of December 31, 2019 and the total OPEB liability ("TOL")used to calculate the NOL was determined by an actuarial valuation as of that date. Actuarial Assumptions - The TOL in the actuarial valuation was based on an actuarial valuation performed as of December 31,2019. And a measurement date of December 31,2019. The following are the actuarial assumptions: Valuation Date: December 31,2019 Methods and Assumptions: Actuarial Cost Method Individual Entry-Age Single Discount Rate 3.28%as of December 31,2019 Inflation 2.50% Salary Increases 3.50%to 11.50%,including inflation Demographic Assumptions Based on the experience study covering the four-year period ending December 31,2018 as conducted for the Texas Municipal Retirement System(TMRS) Mortality For healthy retirees,the gender-distinct 2019 Municipal Retirees of Texas mortality tables are used.The rates are projected on a fully generational basis using the ultimate mortality improvement rates in the MP tables to account for future mortality improvements. Health Care Trend Rates Pre-65:Initial rate of 7.00%declining to an ultimate rate of 4.50%after 15 years; Post-65:Initial rate of 5.50%declining to an ultimate rate of 4.15%after 14 years Participation Rates 85%for retirees meeting eligibility requirements for the 90 Plan; 75%for retirees meeting eligibility requirements for the 85 Plan; 60%for retirees meeting eligibility requirements for the 80 Plan; 60%for retirees meeting eligibility requirements for the Access Plan; 0%for retirees who are not eligible for any of the Plan Rules Other Information: The Single Discount Rate changed from 4.08%as of December 31,2018 to 3.28%as of December 31,2019.Additionally,the long-term expected rate of investment return was lowered from 6.50%to 6.25%,the demographic assumptions were updated to reflect the 2019 TMRS Experience Study and the health care trend rates were updated to reflect the plan's anticipated experience and the repeal of the "Cadillac Tax". Discount Rate - Projected benefit payments are required to be discounted to their actuarial present values using a Single Discount Rate that reflects (1) a long-term expected rate of return on OPEB plan investments (to the extent that the plan's fiduciary net position is projected to be sufficient to pay benefits), and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of this valuation, the expected rate of return on OPEB plan investments is 6.25%; the municipal bond rate is 2.75%; and the resulting Single Discount Rate is 3.28%. Basis of Allocation- OPEB items are allocated between governmental activities and business-type activities on the basis of employee payroll funding. For the year ended September 30, 2020, those percentages were 90% and 10%, respectively,which approximated the prior year's allocations. 70 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) C. Postemployment Benefits (continued) Changes in Net OPEB Liability Net OPEB Total OPEB Plan Fiduciary Net Liability Liability(a) Position (b) (a)-(b) Balance at December 31, 2018 $ 42,839,458 $ 1,836,309 $ 41,003,149 Service cost 1,415,009 - 1,415,009 Interest 1,748,613 - 1,748,613 Difference between expected and actual experience (9,119,458) - (9,119,458) Changes of assumptions 471,134 - 471,134 Contributions - employer - 1,477,599 (1,477,599) Net investment income - 333,159 (333,159) Benefits payments,including refunds of employee contributions (1,377,599) (1,377,599) - Administrative expense - (11,962) 11,962 Net changes (6,862,301) 421,197 (7,283,498) Balance at December 31, 2019 $ 35,977,157 $ 2,257,506 $ 33,719,651 Changes of assumptions reflect a change in the Single Discount Rate from 4.08%as of December 31,2018 to 3.28% as of December 31, 2019, lowering the long-term expected rate of investment return from 6.50% to 6.25%,revised TMRS demographic and salary increase assumptions, and updates to the health care trend assumption to better reflect the plan's anticipated experience and the repeal of the "Cadillac Tax"on high-. Consistent with the requirements of GASB Statements No.74 and No.75,employer contributions include"amounts for OPEB as the benefits come due that will not be reimbursed to the employer using OPEB plan assets." The employer contributions of $1,477,599 consists of a trust contribution of $100,000 and benefit payments of $1,377,599,which were paid by the City using its own assets. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, calculated using the discount rate of 3.28%, as well as what the City's net OPEB liability would be if it were calculate using a discount rate that is 1-percentage-point lower or 1-percentage higher than the current rate: 1% Decrease 1% Increase in Discount Discount Rate in Discount Rate (2.2 8%) (3.2 8%) Rate (4.2 8%) City's Net OPEB Liability $ 37,249,923 $ 33,719,651 $ 30,627,139 71 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) C. Postemployment Benefits (continued) The following presents the net OPEB liability of the City, calculated using the healthcare cost trend rate, as well as what the City's net OPEB liability would be if it were calculate using a trend rate that is 1-percentage-point lower or 1-percentage higher: Current Healthcare Cost Trend Rate 1% Decrease Assumption 1% Increase City's Net OPEB Liability $ 30,111,047 $ 33,719,651 $ 38,054,075 OPEB Plan Fiduciary Net Position-Detailed information about the OPEB's plan Fiduciary Net Position is available in the basic financial statements section of the City of North Richland Hills Comprehensive Annual Financial Report for the year-ended September 30, 2020. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2020,the City recognized an OPEB expense of$1,732,299. At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Difference in assumption changes $ 819,590 $ (1,085,507) Differences between expected and actual experience - (8,325,444) Contributions subsequent to the measurement date 959,980 - $ 1,779,570 $ (9,410,951) $959,980 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended September 30, Amount 2021 $ (1,321,064) 2022 (1,321,062) 2023 (1,299,027) 2024 (1,339,314) 2025 (1,333,316) Thereafter (1,977,578) $ (8,591,361) 72 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) D. Employee Retirement System and Pension Plan Plan Description The City of North Richland Hills participates as one of 887 plans in the nontraditional,joint contributory, hybrid agent multiple-employer defined benefit pension plan administered by the Texas Municipal Retirement System ("TMRS"). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the "TMRS Act") as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate,appoints the Board,TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issue a comprehensive annual financial report("CAFR") available to the public that can be obtained at rwrwrw;,.,tinr's,,,,c r; All eligible employees of the city are required to participate in TMRS. Benefits Provided TMRS provides retirement,disability, and death benefits. Benefit provisions are adopted by the governing body of the City,within the options available in the state statutes governing TMRS. At retirement,the benefit is calculated as if the sum of the employee's accumulated contributions,with interest, and the city-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments,which cannot exceed 75% of member's deposits and interest. Benefits depend upon the sum of the employees' contributions to the plan, with interest, and the City-financed monetary credits,with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (100%, 150%and 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit. An updated service credit is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless of age. A member is vested after 5 years. The plan provisions are adopted by the City Council, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. 73 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) D. Employee Retirement System and Pension Plan (continued) As the December 31, 2019,valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 407 Inactive employees entitled to but not yet receiving benefits 306 Active employees 559 1,272 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%,both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal ("EAN") actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year,with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 16.15% and 16.34%in calendar years 2019 and 2020,respectively. The City's contributions to TMRS for the year ended September 30, 2020 were $6,318,501, and were equal to the required contributions. Net Pension Liability The City's net pension liability ("NPL") was measured as of December 31, 2019, and the total pension liability ("TPL")used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The total pension liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 25 Years Asset Valuation Method 10 Years smoothed market; 12% soft corridor Inflation 2.50% Overall payroll growth 3.50%to 11.50%including inflation Investment Rate of Return 6.75% Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment,with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103%with a 3-year set-forward for both males and females. 74 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) D. Employee Retirement System and Pension Plan (continued) In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. Actuarial assumptions used in the December 31, 2019, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period December 31, 2014 through December 31, 2018. The long-term expected rate of return on pension plan investment was determined using a building-block method in which best estimate ranges of expend future real rates of return(expected returns,net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative)with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal year 2020 are summarized in the following table: Long-Term Expected Real Target Rate of Return Asset Class Allocation (Arithmetic) Global Equities 30.0% 5.30% Core Fixed Income 10.0% 1.25% Non-Core Fixed Income 20.0% 4.14% Real Return 10.0% 3.85% Real Estate 10.0% 4.00% Absolute Return 10.0% 3.48% Private Equity 10.0% 7.75% Total 100.0% Discount Rate The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption,the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 75 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) D. Employee Retirement System and Pension Plan (continued) Basis of Allocation Pension items are allocated between governmental activities and business-type activities on the basis of employee payroll funding. For the year ended September 30,2020,those percentages were 88%and 12%,respectively,which approximated the prior year's allocations. Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability(a) Net Position(b) Liability(a)-(b) Balance at December 31, 2018 $ 257,463,014 $ 219,453,818 $ 38,009,196 Changes for the year: Service cost 6,689,567 - 6,689,567 Interest 17,239,979 - 17,239,979 Difference between expected and actual experience 767,788 - 767,788 Changes of assumptions 409,737 - 409,737 Contributions - employer - 6,008,691 (6,008,691) Contributions - employee - 21604,392 (2,604,392) Net investment income - 33,921,847 (33,921,847) Benefits payments,including refunds of employee contributions (10,801,408) (10,801,408) - Administrative expense - (191,704) 191,704 Other changes - (5,759) 5,759 Net changes 14,305,663 31,536,059 (17,230,396) Balance at December 31, 2019 $ 271,768,677 $ 250,989,877 $ 20,778,800 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City's net pension liability would be if it were calculate using a discount rate that is 1-percentage-point lower(5.75%) or 1-percentage higher(7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (5.75%) (6.75%) (7.75%) City's Net Pension Liability $ 59,720,214 $ 20,778,800 $ (11,133,236) Pension Plan Fiduciary Net Position Detailed information about the pension plan's Fiduciary Net Position is available in a separately- issued TMRS financial report. That report may be obtained on the intemet at rwrwrw;,.,ix;�;irs.,c,c�in. 76 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) D. Employee Retirement System and Pension Plan (continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2020,the City recognized pension expense of$6,510,050. At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Net difference between projected and actual investment earnings $ - $ (7,621,496) Difference in assumption changes 318,482 (903) Differences between expected and actual experience 797,034 (629,899) Contributions subsequent to the measurement date 4,612,752 - $ 5,728,268 $ (8,252,298) $4,612,752 reported as deferred outflows of resources related to pension resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Amount 2021 $ (2,326,084) 2022 (1,985,795) 2023 868,334 2024 (3,693,237) $ (7,136,782) E. Tax Incentive Rebates The City of North Richland Hills has five (5) active Commercial Development and Job-Related Incentive Rebates that develop or redevelop a particular property attracting business that generates incremental tax revenues. One of the agreements reached the end of its term and was closed out in December 2019. The agreements are subject to Chapter 380 of the Texas Local Government Code that promotes local economic development,commercial activity and business stimulation. City Council approves the agreements via resolution. As part of the agreement, the City agrees to rebate the tax valorem tax increment and the local sales tax after confirmation of payment. If the businesses do not meet the obligations as set forth in the agreement, a clawback provision for default on agreement is included in the agreement and the business agrees return a percentage of the rebate back to the City. Total rebate of taxes for Fiscal Year 2020 was $202,275.06. 77 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) F. Current and Future GASB Pronouncements The following GASB pronouncements have been implemented by the City in the current fiscal year: GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This Statements was issued was in March 2020.The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. The requirements of this Statement are effective immediately. The effective dates of the following pronouncements are postponed by 12 months: • Statement No. 83, Certain Asset Retirement Obligations • Statement No. 84,Fiduciary Activities • Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements • Statement No. 89,Accounting for Interest Cost Incurred before the End of a Construction Period • Statement No. 90,Majority Equity Interests • Statement No. 91, Conduit Debt Obligations • Statement No. 92, Omnibus 2020 • Statement No. 93,Replacement of Interbank Offered Rates • Implementation Guide No. 2017-3,Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) • Implementation Guide No.2018-1,Implementation Guidance Update 2018 • Implementation Guide No.2019-1,Implementation Guidance Update 2019 • Implementation Guide No.2019-2,Fiduciary Activities. The effective dates of the following pronouncements are postponed by 18 months: • Statement No. 87,Leases • Implementation Guide No.2019-3,Leases. The City implemented GASB No. 83 Certain Asset Retirement Obligations, GASB No. 88 Certain Disclosures Related to Debt, including Direct Borrowings andDirect Placements, and Statement No.89,AccountingforInterest Cost Incurred before the End of a Construction Period in fiscal year 2019. The City plans on implementing GASB No. 84 Fiduciary Activities in fiscal year 2021 and GASB No. 87 Leases in fiscal year 2022. The following GASB pronouncements have been issued but not yet implemented by the City: GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32.It was issued in June 2020,but the requirements in (1) paragraph 4 of this Statement as it applies to defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans and(2)paragraph 5 of this Statement are effective immediately. The requirements in paragraphs 6-9 of this Statement are effective for fiscal years beginning after June 15,2021. Implementation of this Statement is planned for fiscal year 2022. 78 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS(continued) Note IV- Other Information (continued) F. Current and Future GASB Pronouncements (continued) GASB Statement No.96,Subscription-Based Information Technology Arrangements.This statement was issued in May 2020 and provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments,including implementation costs of a SBITA; and(4)requires note disclosures regarding a SBITA. To the extent relevant,the standards for SBITAs are based on the standards established in Statement No. 87,Leases, as amended. This statement is effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Implementation of this Statement is planned for fiscal year 2023. H. Subsequent Events On January 31, 2020, the Secretary of the United States Health and Human Services Department declared a public health emergency for the United States and on March 13, 2020, the President of the United States declared the outbreak of COVID-19 in the United States a national emergency. On March 13, 2020, the Governor of Texas (the "Governor") declared a state of disaster for all counties in Texas in response to the COVID-19, which disaster declaration he has subsequently extended.In addition, certain local officials,including the County Judge of Tarrant County, also declared a local state of disaster. The full extent of the ongoing impact of COVID-19 on the City's fiscal year 2021 and longer-term operational and financial performance will depend on future developments, many of which are outside of its control, including the effectiveness of the mitigation strategies related to COVID-19, the duration and spread of COVID-19, and future governmental actions, all of which are highly uncertain and cannot be predicted 79 North Richland Hills,TX 2020 CAFR 80 North Richland Hills,TX 2020 CAFR Required Supplementary Information 81 North Richland Hills,TX 2020 CAFR �f d„ I §ib t s it W A NRH Public Works street division crews replace a section along a residential street. In 2020, the Street Division resurfaced approximately 7 miles of residential streets. Additionally, the Street Division excavated and patched over 66,859 square feet of asphalt pavement and sealed approximately 29 miles of pavement. 82 North Richland Hills,TX 2020 CAFR 0 N 0 N U r-: 4.1 N N FA FA FA ,--i H3 H3 H3 � y C a\ a\ V N Vi v 79 5y FA FA FA � FA FA FA O aJ OctM O a\ a\ O oo a\ oo M a oo N oc r � N 7 r o oc O CA � � N v, N v, N N o� N N FA '" cV vj vj cvjV vj vj O a\ M N oo�O oc �o O� �n a\ 00 M l� - a\ M �O �n a\ M C\ vi O M ..y O o0 �n � \O M O\ C\ ,M� `� N O fy W N O O v N 0 O O oc 00 M O pO `— `— cn N N 4O U ^ H3 H3 H3 H3 H3 H3 U .� l� a\ oc r oo M t � oc � O o N o O Q W M O I'O l� O O ;; l� O O l0 l0 M 00 l l O 00 o0 o0 M o0 oc oc .may oc m � O O O �o �o O O N O M 00 Ir p 'O N l� t oc M l O �O O\ o0 �..i t C\ l N O N N N M O v M N N N M O rM..i a -181 ti Ci] Q y o U U V � h � � H zF• F• a zaa z a U z o O N �+ N O ocz 06 74cz M N O O cyd 4.1 C O N M _N p 00 U cz cz 00 cz _ � N o cz ss s9 ssctw ' cz U U F"r O N o 0 0 m cz ° bb °o v z °, u .� 00 l o N a CAo 0 00 0 � cz rTi rTi O O U 'O C/1 s9 s9 s9 w e a� v O v v , p o W .a cz W P H h C cz cz u cz a4 c Lam" a.� P-� U cz cc C>t cz CZ m �L4I CITY OF NORTH RICHLAND HILLS, TEXAS REQUIRED SUPPLEMENTARYINFORMATION NORTH RICHLAND HILLS RETIRED EMPLOYEES HEALTHCARE PLAN SCHEDULE OF CHANGES INNET OPEB LIABILITYAND RELATED RATIOS For the Last Three Measurement Years Measurement Year December 31, 2019 2018 2017 Total OPEB Liability Service cost $ 1,415,009 $ 1,380,982 $ 3,033,865 Interest on the total OPEB liability 1,748,613 1,612,101 2,939,073 Changes of benefit terms - - (36,006,639) Difference between expected and actual experience (9,119,458) (424,223) - Change of assumptions 471,134 (1,473,549) 678,308 Benefit payments (1,377,599) (2,036,450) (2,192,748) Net Change in Total OPEB Liability (6,862,301) (941,139) (31,548,141) Total OPEB Liability-Beginning 42,839,458 43,780,597 75,328,738 Total OPEB Liability-Ending (a) $35,977,157 $42,839,458 $43,780,597 Plan Fiduciary Net Position Contributions - employer $ 1,477,599 $ 2,136,450 $ 2,292,748 Net investment income 333,159 (79,800) 212,194 Benefit payments (1,377,599) (2,036,450) (2,192,748) Administrative expense (11,962) (10,939) (8,770) Net Change in Plan Fiduciary Net Position 421,197 9,261 303,424 Plan Fiduciary Net Position-Beginning 1,836,309 1,827,048 1,523,624 Plan Fiduciary Net Position-Ending (b) $ 2,257,506 $ 1,836,309 $ 1,827,048 Net OPEB Liability-Ending (a) - (b) $33,719,651 $41,003,149 $41,953,549 Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 6.27% 4.29% 4.17% Covered Payroll $37,205,602 $34,555,433 $33,455,733 Net OPEB Liability as a Percentage of Covered Payroll 90.63% 118.66% 125.40% Changes of assumptions reflect a change in the Single Discount Rate from 4.08% as of December 31,2018 to 3.28% as of December 31,2019. Consistent with the requirements of GASB Statement No. 74,the employer contributions include "amounts for OPEB as the benefits come due that will not be reimbursed to the employer using OPEB plan assets." The employer contributions shown above include trust contributions of$100,000 and benefit payments of$1,377,599,which were paid by the City using its own assets. 85 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS REQUIRED SUPPLEMENTARYINFORMATION SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-GENERAL FUND For the Year Ended September 30,2020 Budgetary Variance with Final Original Final Basis Budget Positive Budget Budget Actual (Negative) Revenues Taxes Property taxes(penalties&interest included) $ 19,847,315 $ 19,847,315 $ 19,676,894 $ (170,421) City sales taxes 10,398,713 10,568,043 11,019,420 451,377 Mixed beverage taxes 151,000 118,200 125,456 7,256 Franchise taxes 4,945,065 4,819,618 4,813,490 (6,128) Sub-total taxes 35,342,093 35,353,176 35,635,260 282,084 Fines and forfeitures 2,110,367 1,725,604 1,840,749 115,145 Licenses and permits 2,440,521 2,586,291 2,875,705 289,414 Charges for services 2,842,585 2,582,460 2,549,854 (32,606) Intergovernmental(includes CARES Act funding) 5,325,176 5,256,140 9,013,707 3,757,567 Miscellaneous 2,141,661 2,188,423 2,382,080 193,657 Sub-total non-tax revenues 14,860,310 14,338,918 18,662,095 4,323,177 Other appropriations Court technology funds 59,800 64,376 64,376 - PEG Fees 45,000 89,075 89,075 Previous Year Encumbrances - 173,005 173,005 General Fund Reserves - 1,912,678 21,987 (1,890,691) Sub-total other appropriations 104,800 2,239,134 348,443 (1,890,691) Total Revenues 50,307,203 51,931,228 54,645,798 2,714,570 Expenditures City council 133,893 96,789 57,657 39,132 City manager 734,957 755,763 755,361 402 Communications 394,874 388,599 387,739 860 City secretary 475,819 466,292 442,427 23,865 Legal 429,510 428,034 423,461 4,573 Human resources 141,545 140,204 131,486 8,718 Finance 771,524 758,454 757,538 916 Budget&research 427,236 418,602 417,821 781 Municipal court 1,394,917 1,323,166 1,275,721 47,445 Planning&inspections 1,318,419 1,334,307 1,332,368 1,939 Economic development 350,958 346,546 340,886 5,660 Library 2,282,980 2,234,535 2,094,826 139,709 Neighborhood services 2,105,253 2,055,038 1,996,052 58,986 Public works 3,411,978 3,323,604 3,278,402 45,202 Parks&recreation 1,670,973 1,613,386 1,543,592 69,794 Police 15,879,537 15,833,912 15,652,134 181,778 Fire 14,317,885 14,047,272 13,788,614 258,658 Building services 812,101 812,101 812,101 - Non-departmental 1,095,643 1,061,919 1,012,996 48,923 Sub-total departments 48,150,002 47,438,523 46,501,182 937,341 Other&Reserves Reserves 148,684 130,420 130,420 - Transfers out 1,387,423 3,741,191 4,084,824 (343,633) Economic development incentives 133,992 133,992 190,472 (56,480) Sub-total other&reserves 1,670,099 4,005,603 4,405,716 (400,113) Total Expenditures 49,820,101 51,444,126 50,906,898 537,228 Adjustment for CARES Act funds received - - (3,738,900) 3,738,900 Net Increase(Decrease) $ 487,102 $ 487,102 - $ 5,916,242 Reconciliation between budgetary basis actual and GAAP Increase(decrease)in fair value of investments 176,690 Appropriations of fund balance (278,334) Amounts prepaid for expenditures occuring in future period 10,791 CARES Act funding received 3,738,900 Net change in fund balance(deficit)-GAAP $ 3,648,047 86 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS REQUIRED SUPPLEMENTARYINFORMATION SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- PARKS AND RECREATIONDEVELOPMENT CORPORATION FUND For the Year Ended September 30,2020 Budgetary Variance with Final Original Final Basis Budget Positive Budget Budget Actual (Negative) Revenues Sales tax $ 5,199,346 $ 5,284,095 $ 5,509,712 $ 225,617 Interest income 69,653 73,631 70,771 (2,860) Youth assn.maintenance fees 39,000 39,000 27,270 (11,730) Tennis center revenue 420,600 293,593 371,366 77,773 Park impact fees 95,000 200,000 255,834 55,834 Other income 1,500 500 5,693 5,193 Appropriation of fund balance 224,057 622,899 - (622,899) Subtotal PARD revenues(excluding NRH Centre) 6,049,156 6,513,718 6,240,646 (273,072) NRH Centre: Memberships/drop-in passes 1,420,000 889,536 891,315 1,779 Fitness 453,000 326,719 212,928 (113,791) Recreation/sports 324,000 161,327 234,626 73,299 Grand hall rental 402,150 316,000 275,943 (40,057) Catering&event fees 28,275 24,000 20,705 (3,295) Aquatic programs 255,000 148,217 105,556 (42,661) Pool rental 3,000 2,055 3,645 1,590 Gym rental 12,000 9,900 12,020 2,120 Concessions/merchandise 27,000 17,360 16,177 (1,183) Special events 9,000 4,655 8,680 4,025 Other 10,000 - 4,709 4,709 General fund 487,102 487,102 487,102 - Subtotal NRH Centre revenues(only) 3,430,527 2,386,871 2,273,406 (113,465) Total Revenues $ 9,479,683 $ 8,900,589 $ 8,514,052 $ (386,537) Expenditures Operating: Park facilities development administration $ 956,834 $ 945,945 $ 942,388 $ 3,557 Parks&public grounds 2,129,790 2,015,150 1,959,715 55,435 Tennis center operations 627,934 528,488 521,171 7,317 Sub-total operating 3,714,558 3,489,583 3,423,274 66,309 NRH Centre: Center management 825,518 762,924 691,784 71,140 Fitness 513,399 414,756 405,534 9,222 Building operations 223,910 258,160 289,717 (31,557) Aquatic 659,956 566,097 581,277 (15,180) Recreation sports 313,492 247,730 178,438 69,292 Event center 377,310 320,294 293,768 26,526 Building services 277,788 277,788 277,788 - Sub-total NRH Centre 3,191,373 2,847,749 2,718,306 129,443 Other&Reserves Debt service 509,030 509,030 509,030 - Indirect costs 497,541 497,541 499,363 (1,822) Non-department 57,043 53,590 47,917 5,673 Reserve for capital 1,046,000 1,171,000 1,171,000 - Reserve for economic development 129,984 132,096 137,743 (5,647) Reserve for impact fees 95,000 200,000 255,834 (55,834) Reserve for NRH Centre 239,154 - - Sub-total other&reserves 2,573,752 2,563,257 2,620,887 (57,630) Total Expenditures $ 9,479,683 $ 8,900,589 8,762,467 $ 138,122 Net Increase(Decrease)-NRH Centre only (444,900) Net Increase(Decrease)-Parks 196,485 Net Increase(Decrease)-Total (248,415) Reconciliation between budgetary basis actual and GAAP Increase(decrease)in fair value of investments 26,191 Reserves which are not actual revenues 255,834 Net change in fund balance(deficit)-GAAP $ 33,610 87 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO REQUIRED S UPPLEMENTAR Y INFORMA TION For the Year Ended September 30,2020 Note A-Budgetary Information Annual budgets are adopted on a modified cash basis for the following:General,General Debt Service,Promotional, Donations, Special Investigations, Drainage Utility, Parks and Recreation Development, Crime Control District, Gas Development, Traffic Safety, Utility, Aquatic Park, Golf, Facilities and Construction, Fleet Services, Self- Insurance, and Information Technology. The General Capital Projects Fund and Grants Fund adopt project-length budgets. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. The City Manager is authorized to make inter-departmental and inter-fund transfers during the fiscal year as deemed necessary in order to avoid over- expenditure of particular accounts. After the budget is adopted, the City Manager is not allowed to authorize any expenditure that exceeds total funds in the overall budget without amending the budget through City Council action. There are instances where transfers on the financial statements may not tie directly to the transfers as presented in supplemental information. As a result of management directive,city practice,or efforts to more specifically identify transfers by purpose,it is possible for individual transfers to be referenced by another title consistent with how the budget was developed by staff and adopted by Council. During the fiscal year City budget appropriations were increased by $1,433,097. 88 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO REQUIRED SUPPLEMENTARYINFORMATION(continued) For the Year Ended September 30,2020 Note A-Budgetary Information (continued) Legally Increase AdoptedFand Original Final (Decrease) Explanation General Fund $ 49,820,101 $ 51,444,126 $ 1,624,025 The budgeted increase was for an interfund loan to the Aquatic Park fund to offset anticipated losses in FY 19/20 based on the parks truncated operating season due to the C0VID-19 pandemic ($2.3 M). Partially offsetting the increase was a reduction in operational expenses in the fund--2.5% salary reduction (April25-Sept 30),3% operational budget reduction,training freeze,vacant position freeze General Debt Service 12,211,310 11,993,596 (217,714) The decrease was due to a lower than anticipated debt service payment in FY 19/20. Parks and Recreation 9,479,683 8,900,589 (579,094) The decrease was due to temporary facility closures, program reductions,and reductions made in operational expenses in the fund-- 2.5% salary reduction (April 25-Sept 30), 3% operational budget reduction,training freeze,vacant position freeze. Promotional 290,000 260,077 (29,923) The reduction is due to the elimination of a planned contribution to reserves and a reduction in operational expenses in the fund--2.5% salary reduction(April 25-Sept 30),3%operational budget reduction, training freeze,vacant position freeze. Donations 264,388 266,828 2,440 The slight increase is due to additional police program expenditures related to the victim's assistance program Special Investigations 262,300 262,300 - No change. Drainage Utility Fund 1,657,000 1,657,000 - No change. Crime Contro I District 5,727,125 5,828,583 101,458 The increase was due to an anticipated contribution to reserves in FY 19/20 based on the performance of sales tax collections. Partially offsetting the increase was a reduction in operational expenses in the fund -- 2.5% salary reduction (April 25-Sept 30), 3% operational budget reduction,training freeze,vacant position freeze. Traffic Safety 86,726 134,294 47,568 The increase was due to an anticipated contribution to reserves in FY 19/20 and for the annual encumbrance roll. Gas Development 1,487,479 3,041,989 1,554,510 The increase was due to an increase in funding requirements for the construction costs associated with the 820 Redevelopment Project ($1.5 M).In addition there was an increase in the funding required at the Golf Course to help offset losses associated with the temporary closure of the course related to the major course renovation project completed in September 2020. 89 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO REQUIRED SUPPLEMENTARYINFORMATION(continued) For the Year Ended September 30,2020 Note A-Budgetary Information (continued) Legally Increase Adopted Fund Original Final (Decrease) Explanation Utility $ 38,233,116 $ 37,823,529 $ (409,587) The bulk of the decrease is related to an anticipated decrease in water purchase expenses based anticipated water demand for the remainder of the fiscal year. In addition reductions were made in operational expenses in the fund--2.5%salary reduction (April 25-Sept 30),3% operational budget reduction,training freeze,vacantposition freeze. Aquatic Park 4,506,323 2,904,088 (1,602,235) Significant operational reductions were made in FY 19/20 from the significant reduction of the facilities operating season(reduced to 16 operating days from 102 days planned) due to the COVID-19 pandemic. Golf 1,651,547 1,864,090 212,543 The increase is due to the first year of debt service being owed related to the issuance of debt for the Iron Horse Golf Course Improvements Project and the addition of funding to the project from reserves for other grounds improvements. Facilities and Construction 2,982,718 2,988,118 5,400 The increase was due to the addition of funding for exterior improvements to the clubhouse at Iron Horse Golf Course which was almost entirely offset by a reduction in the planned contribution to reserves. Fleet Services 4,511,499 5,001,728 490,229 The increase was due to the early replacement of an ambulance that encountered significant service issues and the annual encumbrance roll. Self Insurance 15,788,103 15,788,154 51 Slight increase based on the performance of the fund. The increase is due to the inclusion of funding to improve network security and from the annual encumbrance roll. Information Technology 3,941,622 4,175,048 233,426 Total $ 152,901,040 $ 154,334,137 $ 1,433,097 90 North Richland Hills,TX 2020 CAFR Other Supplementary Information 91 North Richland Hills,TX 2020 CAFR d , r i ' 1' I 1 j f f r rrrk9� ✓ fhw,�na,�.�n�slwrk The NRH Centre is North Richland Hills premier fitness, aquatics and activity center and is designed to be the Centre of your active, healthy and connected world. As Tarrant County's first LEED certified recreation center, the NRH Centre is built and operated using sustainable features to minimize its impact on the environment. The Centre includes indoor aquatics, fitness, gymnasium, a senior center, and the Grand Hall for events 92 North Richland Hills,TX 2020 CAFR NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS The Promotional Fund accounts for the operations and expenditures for which hotel/motel occupancy taxes are used. Occupancy tax revenues are primarily to attract tourist and new businesses to the City. The Donations Fund holds funds contributed (donated) to the City for special projects earmarked by requests or nonrecurring expenditures. It primarily collects and holds funds that are voluntarily given by the citizens via adding $1.50 to their water utility billing which is then distributed to support the activities of the library and neighborhood services departments. The Special Investigations Fund is mandated by state statute to account for various legal seizure and forfeiture deposits and expenditures. The Drainage Utility Fund accounts for the establishment of drainage facilities within the municipal boundaries of the City and the subsequent billing and collection of fees so established. The Crime Control and Prevention District Fund accounts for the accumulation and use of half-cent sales tax proceeds dedicated for crime prevention and reduction programs. The Grants Fund is a centralized fund accounting for all private, local, state, and federal grant proceeds. The Economic Development Fund accounts for the accumulation and expenditure of resources designed to stimulate the local economy through development and redevelopment. The Traffic Safety Fund accounts for funds collected from various red-light traffic safety cameras. These resources assist with funding of various traffic safety projects. The Gas Development Fund accounts for the accumulation and expenditures of resources from gas drilling and exploration on City owned property. CAPITAL PROJECTS FUND Tax Increment Financing District 91 (TIF 91)Fund accounts for funds held for drainage improvements that alleviate flooding problems,reduce property damage associated with the flooding, and stimulate development for the benefit of citizens within TIF 91. The City Point Development Project Fund accounts for public improvements funded by special assessment debt for the benefit of citizens within TIF 93. DEBT SERVICE FUNDS The City Point Development Bond Fund is used to accumulate monies for the payment of principal, interest, and related charges on the special assessment bonds of TIF 93. The Sales Tax Revenue Debt Service Fund is used to accumulate monies for the payment of principal,interest, and related charges on sales tax revenue bonds. 93 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 3 COMBINING BALANCE SHEET-NON-MAJOR GOVERNMENTAL FUNDS September 30,2020 Special Revenue Special Drainage Promotional Donations Investigations Utility Assets Cash and cash equivalents $ 364,327 $ 345,990 $ 213,518 $ 950,864 Investments 370,956 353,291 211,975 871,452 Receivables,net of allowance: Accounts - - - 183,863 Other taxes receivable 65,399 - - - Interest receivable 132 125 75 309 Intergovernmental receivables - - - - Other receivables 8,096 Prepaid items - Assets limited to use: Cash and cash equivalents Investments - - - - Total assets $ 800,814 $ 699,406 $ 433,664 $ 2,006,488 Liabilitie s Accounts payable $ $ 5,000 $ $ Accrued liabilities 1,457 - 900 Deposits and other liabilities - 39 - Due to other funds - Unearned revenue - - - Total liabilitie s 1,457 5,039 900 De fe rre d Inflows of Re sources Unavailable revenue-grants - - - Total deferred inflows of resources Fund Balances Restricted: Crime control district Debt service Grants - Promotional&economic development 799,357 - Public safety - 432,764 Capital projects(bond funded) - - Committed: Donations 694,367 - Drainage Utility - 2,006,488 Gas development - - - - Total fund balances 799,357 694,367 432,764 2,006,488 Total liabilitie s,de fe rre d inflows and fund balances $ 800,814 $ 699,406 $ 433,664 $ 2,006,488 94 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 3 COMBINING BALANCE SHEET-NON-MAJOR GOVERNMENTAL FUNDS September 30,2020 Special Revenue Crime Control Economic Gas District Grants Fund Development Traffic Safety Development Assets Cash and cash equivalents $ $ $ $ 404,860 $ Investments 400,397 302,891 Receivables,net of allowance: Accounts - - Other taxes receivable 981,939 - - - - Interest receivable - 915 92 142 196 Intergovernmental receivables 914,918 - - - Other receivables - 1,521,048 Prepaid items - 13,327 - - Assets limited to use: Cash and cash equivalents 136,936 - 258,037 Investments - - 254,914 - - Total assets $ 1,118,875 $ 929,160 $ 513,043 $ 805,399 $ 1,824,135 Liabilitie s Accounts payable $ 7,190 $ 63,231 $ $ $ Accrued liabilities 40,349 3,394 270 Deposits and other liabilities - - - 314 Due to other funds 590,364 192,764 - - Unearned revenue - - - - 1,456,591 Total liabilitie s 47,539 656,989 192,764 584 1,456,591 De fe rre d Inflows of Re sources Unavailable revenue-grants - 5,000 - - - Total deferred inflows of resources - 5,000 Fund Balances Restricted: Crime control district 1,071,336 - Debt service - - Grants 267,171 - Promotional&economic development - 320,279 - Public safety - 804,815 Capital projects(bond funded) - Committed: Donations Drainage Utility - Gas development - - - - 367,544 Total fund balances 1,071,336 267,171 320,279 804,815 367,544 Total liabilitie s,de fe rre d inflows and fund balances $ 1,118,875 $ 929,160 $ 513,043 $ 805,399 $ 1,824,135 95 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 3 of 3 COMBINING BALANCE SHEET-NON-MAJOR GOVERNMENTAL FUNDS September 30,2020 Capital Projects Debt Service Total City Point City Point Non-major Development Development Sales Tax Governmental TIF#1 Fund Project Fund Bond Fund Revenue Bond Funds Assets Cash and cash equivalents $ $ $ $ $ 2,279,559 Investments 21510,962 Receivables,net of allowance: Accounts 183,863 Other taxes receivable 1,047,338 Interest receivable 297 48 2,331 Intergovernmental receivables - - 914,918 Other receivables 1,529,144 Prepaid items - - - 13,327 Assets limited to use: Cash and cash equivalents - 7,328,438 916,141 140,642 8,780,194 Investments 307,061 - - 135,429 697,404 Total assets $ 307,358 $ 7,328,438 $ 916,141 $ 276,119 $ 17,959,040 Liabilitie s Accounts payable $ $ $ $ $ 75,421 Accrued liabilities 46,370 Deposits and other liabilities 353 Due to other funds 783,128 Unearned revenue 1,456,591 Total liabilitie s 2,361,863 De fe rre d Inflows of Re sources Unavailable revenue-grants 5,000 Total deferred inflows of resources 5,000 Fund B glance s Restricted: Crime control district - - 1,071,336 Debt service 916,141 276,119 1,192,260 Grants - - 267,171 Promotional&economic development 1,119,636 Public safety - - 1,237,579 Capital projects(bond funded) 307,358 7,328,438 7,635,796 Committed: Donations - - 694,367 Drainage Utility 2,006,488 Gas development - - - - 367,544 Total fund balances 307,358 7,328,438 916,141 276,119 15,592,177 Total liabilitie s,defe rre d inflows and fund balances $ 307,358 $ 7,328,438 $ 916,141 $ 276,119 $ 17,959,040 96 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 3 COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2020 Special Revenue Special Drainage Promotional Donations Investigations Utility Revenues Taxes $ 254,203 $ $ $ Charges for services - 1,703,926 Gas utility leases and royalties - - Contributions - 217,435 - - Investment income 14,631 13,735 8,083 28,391 Intergovernmental - - 14,500 - Forfeitures - 56,939 Miscellaneous - 5 3 - Total revenues 268,834 231,175 79,525 1,732,317 Expenditures General government 137,792 17,259 - - Public safety - 10,991 52,568 Culture and recreation 104,928 101,654 - - Public works - - 33,070 Capital outlay: General government 6,228 - - Public safety - 4,597 Public works - Debt service: Interest and fiscal charges Bond issuance costs - - - - Total expenditures 242,720 136,132 57,165 33,070 Excess(deficiency)of revenues over expenditures 26,114 95,043 22,360 1,699,247 Other Financing Sources (Uses) Issuance of special assessment bonds - - - - Transfers in Transfers out (30,000) (823,181) Total othe r financing sources (uses) - (30,000) (823,181) Net change in fund balances 26,114 65,043 22,360 876,066 Fund balances-beginning of year 773,243 629,324 410,404 1,130,422 Fund balances-end of year $ 799,357 $ 694,367 $ 432,764 $ 2,006,488 97 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 3 COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2020 Special Revenue Crime Control Economic Gas District Grants Fund Development Traffic Safety Development Revenues Taxes $ 5,577,519 $ $ $ $ Charges for services - 34,250 - Gas utility leases and royalties - 407,632 Contributions - - - Investment income 5,788 46,626 10,195 15,373 28,119 Intergovernmental 297,186 6,325,116 - - - Forfeitures - - Miscellaneous 1,703 - - - - Total revenues 5,882,196 6,371,742 10,195 49,623 435,751 Expenditures General government - 118,751 - - - Public safety 5,467,898 974,992 17,247 Culture and recreation - 3,566 - Public works - 28,491 Capital outlay: General government 900,000 - Public safety 383,864 Public works 353,491 Debt service: Interest and fiscal charges - Bond issuance costs - - - Total expenditures 5,467,898 2,734,664 - 45,738 - Excess(deficiency)of revenues over expenditures 414,298 3,637,078 10,195 3,885 435,751 Othe r Financing Source s (Us a s) Issuance of special assessment bonds - - - - - Transfers in 36,293 137,743 Transfers out (50,910) (5,698,990) - (3,041,989) To tal o the r financ ing sources (uses) (50,910) (5,662,697) 137,743 (3,041,989) Net change in fund balances 363,388 (2,025,619) 147,938 3,885 (2,606,238) Fund balances-beginning of year 707,948 2,292,790 172,341 800,930 2,973,782 Fund balances-end of year $ 1,071,336 $ 267,171 $ 320,279 $ 804,815 $ 367,544 98 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 3 of 3 COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2020 Capital Projects Debt Service Total City Point City Point Non-major Development Development Sales Tax Governmental TIF#1 Fund Project Fund Bond Fund Revenue Bond Funds Revenues Taxes $ $ $ $ $ 5,831,722 Charges for services 1,738,176 Gas utility leases and royalties 407,632 Contributions 217,435 Investment income 38,043 28,525 2,922 5,430 245,861 Intergovernmental - - - - 6,636,802 Forfeitures 56,939 Miscellaneous - - - - 1,711 Total revenues 38,043 28,525 2,922 5,430 15,136,278 Expenditures General government - - - - 273,802 Public safety 6,523,696 Culture and recreation - 210,148 Public works 1,968,808 2,030,369 Capital outlay: General government - 906,228 Public safety 388,461 Public works - - - 353,491 Debt service: Interest and fiscal charges 158 5,000 424,870 430,028 Bond issuance costs - 968,190 968,190 Total expenditures 158 2,941,998 424,870 12,084,413 Excess(deficiency)of revenues over expenditures 37,885 (2,913,473) (421,948) 5,430 3,051,865 Other Financing Sources (Uses) Issuance of special assessment bonds - 11,580,000 - - 11,580,000 Transfers in - 1,338,089 1,512,125 Transfers out (1,338,089) - (10,983,159) Total other financing sources (uses) - 10,241,911 11338,089 2,108,966 Net change in fund balances 37,885 7,328,438 916,141 5,430 5,160,831 Fund balances-beginning of year 269,473 - - 270,689 10,431,346 Fund balances-endofyear $ 307,358 $ 7,328,438 $ 916,141 $ 276,119 $ 15,592,177 99 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- GENERAL DEBT SERVICE FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Taxes: Property taxes (including penalties &interest) $ 11,200,798 $ 11,200,798 $ 11,200,798 $Transfers in: Drainage utility 278,599 248,181 248,181 - Parks &recreation facilities development core. 509,030 509,030 509,030 - Fleet services fund 130,911 - - - Sub-total transfers in 918,540 757,211 757,211 - Other: Bond issuance and premium - - 4,258,990 4,258,990 Interest income 9,119 6,716 28,004 21,288 City of Watauga, CIP participation 82,853 82,853 82,853 - Sub-total other 91,972 89,569 4,369,847 4,280,278 Total Revenues 12,211,310 12,047,578 16,327,856 4,280,278 Expenditures Existing bonds & co's 12,202,610 11,984,896 12,034,330 (49,434) Issuance costs/paying agent fees 8,700 8,700 7,185 1,515 Bond defeasance/refunding - - 4,182,132 (4,182,132) Total Expenditures 12,211,310 11,993,596 16,223,647 (4,230,051) Net Increase (Decrease) $ - $ 53,982 104,209 $ 50,227 Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 8,228 Net change in fund balance (deficit)- GAAP $ 112,437 100 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-PROMOTIONAL FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Occupancy tax proceeds $ 280,000 $ 192,924 $ 254,203 $ 61,279 Appropriation of Fund Balance - 58,823 - (58,823) Interest revenue 10,000 8,330 9,897 1,567 Total Revenues 290,000 260,077 264,100 4,023 Expenditures Operating expenses Economic development 150,212 145,311 137,569 7,742 Culture & leisure 122,901 114,278 104,929 9,349 Non-departmental 533 488 222 266 Sub-total operating expenses 273,646 260,077 242,720 17,357 Other&Reserves Contribution to reserves 16,354 - - - Total Expenditures 290,000 260,077 242,720 17,357 Net Increase (Decrease) $ - $ - 21,380 $ 21,380 Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 4,734 Net change in fund balance (deficit)- GAAP $ 26,114 101 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-DONATIONS FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Contributions NRH water bills $ 60,200 $ 58,800 $ 61,096 $ 2,296 Donations Spay/neuter 8,500 12,000 28,119 16,119 Shelter fund 10,800 22,934 24,980 2,046 Duncan 15,000 15,000 15,007 7 Santa cops 2,500 2,500 1,600 (900) Sub-total donations 36,800 52,434 69,706 17,272 Proceeds Library book sales 9,000 6,500 6,799 299 Other Interest revenue 9,076 5,949 9,177 3,228 Other income 124,150 113,785 79,837 (33,948) Appropriation of fund balance: Teen court 400 2,000 - (2,000) Neighborhood services 9,923 10,523 - (10,523) Library 18,815 18,760 - (18,760) Parks and Recreation 29,700 25,323 - (25,323) Police 3,100 2,200 - (2,200) Sub-total Other 195,164 178,540 89,014 (89,526) Total Revenues 301,164 296,274 226,615 (69,659) Expenditures Library -book collections 68,865 68,865 57,033 11,832 Neighborhood services Animal services 19,810 19,810 4,613 15,197 Keep NRH Beautiful 17,013 17,013 12,129 4,884 Municipal court- teen court 5,000 4,000 4,500 (500) Parks special events and arts 114,500 113,000 46,864 66,136 Public safety 9,200 14,140 10,991 3,149 Transfer out 30,000 30,000 30,000 - Total Expenditures 264,388 266,828 166,130 100,698 Net Increase (Decrease) $ 36,776 $ 29,446 60,485 $ 31,039 Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 4,558 Net change in fund balance (deficit)- GAAP $ 65,043 102 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-SPECIAL INVESTIGATIONS FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Forfeited funds $ 141,000 $ 71,000 $ 56,940 $ (14,060) AFIS reimbursements 13,500 13,500 14,500 1,000 Interest income - - 5,544 5,544 Other income - - 2 2 Appropriations of fund balance 107,800 177,800 - (177,800) Total Revenues 262,300 262,300 76,986 (185,314) Expenditures Federal forfeited funds 145,000 145,000 35,171 109,829 State forfeited funds 105,000 105,000 14,400 90,600 Local forfeited funds 1,000 1,000 - 1,000 AFIS maintenance & equipment 4,300 4,300 7,594 (3,294) LEOSE contributions 7,000 7,000 - 7,000 Total Expenditures 262,300 262,300 57,165 205,135 Net Increase (Decrease) $ - $ - 19,821 $ 19,821 Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 2,539 Net change in fund balance (deficit)- GAAP $ 22,360 103 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-DRAINAGE UTILITY FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Drainage fees $ 1,647,000 $ 1,647,000 $ 1,703,926 $ 56,926 Interest income 10,000 10,000 14,938 4,938 Total Revenues 1,657,000 1,657,000 1,718,864 61,864 Expenditures Debt service 278,599 248,181 248,181 - Other expenditures 605,000 605,000 608,070 (3,070) Contribution to reserves 773,401 803,819 - 803,819 Total Expenditures 1,657,000 1,657,000 856,251 800,749 Net Increase (decrease) $ - $ - 862,613 $ 862,613 Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 13,453 Net change in fund balance (deficit)- GAAP $ 876,066 104 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- CRIME CONTROL DISTRICT For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Sales tax $ 5,160,426 $ 5,244,541 $ 5,484,940 $ 240,399 Franchise tax 96,127 92,579 92,579 - Interest income 15,400 11,000 5,787 (5,213) SRO Reimbursement(BISD) 240,826 240,826 240,826 - Miscellaneous revenue 70,877 70,877 58,063 (12,814) Appropriation of fund balance 143,469 143,469 - (143,469) Transfers in - 25,291 - (25,291) Total Revenues 5,727,125 5,828,583 5,882,195 53,612 Expenditures Operating Administration 16,000 8,133 8,055 78 Community Resources 1,195,721 1,060,184 1,011,646 48,538 Investigations 527,912 646,766 537,158 109,608 Uniform patrol 3,005,620 2,996,705 3,008,598 (11,893) Technical services 573,686 561,072 523,131 37,941 Property Evidence 222,668 232,749 231,250 1,499 Sub-total operating 5,541,607 5,505,609 5,319,838 185,771 Other&reserves Partner agency funding 44,426 43,426 43,009 417 Other 112,758 115,402 105,052 10,350 Indirect Costs 28,334 28,334 30,156 (1,822) Reserves - 135,812 - 135,812 Sub-total other&reserves 185,518 322,974 178,217 144,757 Total Expenditures 5,727,125 5,828,583 5,498,055 330,528 Net Increase (Decrease) $ - $ - 384,140 $ 384,140 Reconciliation between budgetary basis actual and GAAP Reserves which are not actual expenditures (20,752) Net change in fund balance (deficit)- GAAP $ 363,388 105 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- TRAFFIC SAFETY FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Gross fine revenue $ - $ 34,250 $ 34,250 $ - Interest income - 8,330 11,185 2,855 Appropriations of fund balance 86,726 86,726 302 (86,424) Prior year encumbrances - 4,988 - (4,988) Total Revenues 86,726 134,294 45,737 (88,557) Expenditures Traffic enforcement 70,145 75,133 33,478 41,655 Pedestrian safety 16,581 16,581 12,259 4,322 Contribution to reserves - 42,580 - 42,580 Total Expenditures 86,726 134,294 45,737 88,557 Net Increase(Decrease) Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 4,187 Appropriations of fund balance (302) Net change in fund balance (deficit) - GAAP $ 3,885 106 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- GAS DEVELOPMENT FUND For the Year Ended September 30, 2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Royalties/overrides General fund purposes $ 500,000 $ 320,000 $ 407,632 $ 87,632 Interest income 16,800 19,599 27,076 7,477 Appropriations of fund balance 970,679 2,702,390 2,607,281 (95,109) Total Revenues 1,487,479 3,041,989 3,041,989 - Expenditures Operating Interfund Loan 697,479 751,989 751,989 - Transfer to capital projects 790,000 2,290,000 2,290,000 - Total Expenditures 1,487,479 3,041,989 3,041,989 Net Increase (Decrease) $ - $ - - $ - Reconciliation between budgetary basis actual and GAAP Increase (decrease)in fair value of investments 1,043 Appropriations of fund balance (2,607,281) Net change in fund balance (deficit)- GAAP $ (2,606,238) 107 North Richland Hills,TX 2020 CAFR NRHz O FamilyWater Park is North Texas favorite family water park, conveniently located between Dallas and Fort Worth. The park features 8 water slides,a kiddie area,a large wave pool,a large lagoon- like play area, a lazy river and is open from May through September. Since NRH2O opened in 1995,it R R has consistently ranked amongst the top water parks r��r u�rz ��� u�r� �� wu��� i in the nation Y � rrr� irrr,� r i 1 A. r� Jkh I- 17 ?, 108 North Richland Hills,TX 2020 CAFR PROPRIETARY FUNDS ENTERPRISE FUNDS Utility Fund — To account 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. All activities of the fund are supported by the customers of the utility. Aquatic Park Fund- To account for the operation of NRH2O,the City's public water park. All activities necessary to operate the park are accounted for in the fund,including,but not limited to, administration,park operations,park maintenance, and financing and debt service. All activities of the fund are supported by the patrons of the water park. Golf Course Fund — To account for the operations of Iron Horse Golf Course, the City's public golf course. All activities necessary to operate the course are accounted for in the fund,including,but not limited to,administration, operations, course maintenance, and financing and debt service. The Golf Course in the only non-major proprietary fund. All activities of the fund are supported by the patrons of the golf course. INTERNAL SERVICE FUNDS Facility and Construction Services Fund — To account for building maintenance and repair services provided to numerous departments located at various sites throughout the City. Facility and Construction Services Fund operations are financed by charges to user departments. Fleet Services Fund— To account for the maintenance, repair service, and replacement of vehicles and equipment provided to numerous departments responsible for the operation of City vehicles and equipment. Fleet Services Fund operations are financed by charges to user departments. Self-Insurance Fund—To account for the payment of substantially all claims except for fire insurance coverage and employee life insurance coverage. Self-Insurance Fund operations are financed by charges to user departments and employee contributions. Information Technology Fund — To account for the acquisition, maintenance, and support of computer and telephone hardware and software. Information Technology Fund operations are financed by charges to user departments. 109 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS COMBINING STATEMENT OF NET POSITION-INTERNAL SERVICE FUNDS September 30,2020 Facilities and Total Construction Fleet Self Information Infernal Services Services Insurance Technology Service Funds Assets Current Assets: Cash and cash equivalents $ 1,658,374 $ 1,195,802 $ 4,092,122 $ 911,834 $ 7,858,132 Investments 1,678,134 1,607,476 4,008,883 1,030,434 8,324,927 Accounts receivable,net of allowances: Other 882 - 20,596 8,986 30,464 Interest receivable 595 570 2,296 366 3,827 Prepaid iterns 5,057 - 216,682 178,350 400,089 Inventories,at cost 30,553 105,576 - - 136,129 Total current assets 3,373,595 2,909,424 8,340,579 2,129,970 16,753,568 Noncurrent russets: Cash and cash equivalents - 90,947 2,491,218 17,049 2,599,214 Investments - 2,462238 - 2,462238 Interfund loan receivable - 500,000 500,000 Capital assets,net: Buildings and nnprovernents 53,976 - - 53,976 Other nnprovernents - - - 602,769 602,769 Machinery and equipment 386,341 7,435,475 13,312 2,287,673 10,122,801 Accuinulated depreciation (381,897) (5,411,561) (13,312) (2,361,654) (8,168,424) Net capital assets 58,420 2,023914 - 528,788 2,611,122 Total noncurrent russets 58,420 2,114,861 5,453,456 545,837 8,172,574 Total assets 3,432,015 5,024,285 13,794,035 2,675,807 24,926,142 Deferred Outflows of Resources Deferred outflows-OPEB 57,327 52,195 31,426 77230 218,178 Deferred outflows-Pension 98,444 62,425 49,810 10,763 221,442 Total deferred outflows of resources 155,771 114,620 81236 87993 439,620 Liabilities Current Liabilities: Accounts payable and accrued expenses $ 74,219 $ 16,704 $ 1,110,827 $ 76,565 $ 1,278,315 Other current liabilities 277 541 12,558 11 13,387 Compensated absences 2,873 27,623 14,791 17,384 62,671 Unearned revenue - - - 2,662 2,662 Total current liabilities 77,369 44,868 1,138,176 96,622 1,357,035 Noncurrent Liabilities: Compensated absences 39,531 20,125 60,868 115,067 235,591 Net OPEB liability 598,485 657,180 327903 791,667 2,375235 Net pension liability 409914 429,556 256,654 457,144 1,553,268 Total noncurrent liabilities 1,047,930 1,106,861 645,425 1,363,878 4,164,094 Total liabilities 1,125,299 1,151,729 1,783,601 1,460,500 5,521,129 Deferred Inflows of Resources Deferred inflows-OPEB 152,092 103949 83,433 209,384 548,858 Deferred inflows-pension 108,988 167,761 57,410 126,572 460,731 Total deferred inflows of resources 261,080 271,710 140,843 335956 1,009,589 Net Position Investment in capital assets 58,420 2,023914 - 528,788 2,611,122 Unrestricted(deficit) 2,142,987 1,691,552 11,950,827 438,556 16,223922 Total net position $ 2,201,407 $ 3,715,466 $ 11,950,827 $ 967,344 $ 18,835,044 110 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION-INTERNAL SERVICE FUNDS For the Year Ended September 30,2020 Facilitie s and Construction Fleet Self Information Total Internal Services Services Insurance Technology Service Funds Operating Revenues Internal service revenues: Risk management $ $ $ 14,014,007 $ $ 14,014,007 Facilities and fleet management 2,912,818 4,012,486 - 6,925,304 Information systems management - - - 3,066,441 3,066,441 Miscellaneous revenues 41,270 566 40,476 235,587 317,899 Total ope rating revenues 21954,088 4,013,052 14,054,483 3,302,028 24,323,651 Operating Expenses Claims - - 8,508,702 - 8,508,702 Contractual services 803,459 128,605 412,059 488,099 1,832,222 Personnel services 998,770 1,003,412 538,486 1,251,585 3,792,253 Repairs and maintenance 654,536 1,051,789 - 1,410,686 3,117,011 Supplies 86,117 782,105 4,503 162,241 1,034,966 Depreciation 24,454 493,096 - 64,662 582,212 Total operating expenses 21567,336 3,459,007 9,463,750 3,377,273 18,867,366 Operating income(loss) 386,752 554,045 4,590,733 (75,245) 5,456,285 Nonoperating revenues (expenses) Investment income 65,174 63,649 239,695 37,350 405,868 Other income - 34,237 177,757 - 211,994 Gain(loss)on disposal of assets - 350,932 - 2,591 353,523 Totalnonoperating revenues (expenses) 65,174 448,818 417,452 39,941 971,385 Income(loss)before transfers 451,926 1,002,863 5,008,185 (35,304) 6,427,670 Trans fe rs Transfers in - 28,875 - 384,154 413,029 Transfers out (96,500) (1,057,795) (485,510) (1,639,805) Total transfers -net (96,500) (1,028,920) - (101,356) (1,226,776) Change in net position 355,426 (26,057) 5,008,185 (136,660) 5,200,894 Net position-beginning of year 1,845,981 3,741,523 6,942,642 1,104,004 13,634,150 Net position-end of year $ 2,201,407 $ 3,715,466 $ 11,950,827 $ 967,344 $ 18,835,044 111 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS COMBINING STATEMENT OF CASH FLOWS-INTERNAL SERVICE FUNDS For the Year Ended September 30,2020 Facilities and Total Internal Construction Fleet Self Information Service Services Services Insurance Technology Funds Cash flows from operating activities: Receipts from interfund services provided $ 2,905,627 $ 4,016,394 $ 13,993,671 $ 3,055,227 $ 23,970,919 Other operating revenue 41,270 566 40,476 235,587 317,899 Payments to suppliers (1,572,004) (2,003,339) (9,517,283) (2,156,274) (15,248,900) Payments to employees (996,393) (983,879) (504,208) (1,200,471) (3,684,951) Net cash provided by(used for)operating activities 378,500 1,029,742 4,012,656 (65,931) 5,354,967 Cash flows from noncapital financing activities: Transfers from other funds - 28,875 - 384,154 413,029 Transfers to other funds (96,500) (1,057,795) (485,510) (1,639,805) Net cash provided by(used for)noncapital financing (96,500) (1,028,920) (101,356) (1,226,776) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (297,234) (15,497) (312,731) Insurance recovery proceeds 34,237 177,757 - 211,994 Proceeds from sale of capital assets 193,235 - 2,591 195,826 Net cash provided by(used for)capital and related financing activities (69,762) 177,757 (12,906) 95,089 Cash flows from investing activities: Sale(purchase)of investments 178,054 213,244 (1,434,584) 299,638 (743,648) Interest and dividends received 67,327 65,774 244,855 38,953 416,909 Net cash provided by(used for)investing activities 245,381 279,018 (1,189,729) 338,591 (326,739) Net increase(decrease)in cash and cash equivalents 527,381 210,078 3,000,684 158,398 3,896,541 Cash and cash equivalents,beginning ofyear 1,130,993 1,076,671 3,582,656 770,485 6,560,805 Cash and cash equivalents,end ofyear $ 1,658,374 $ 1,286,749 $ 6,583,340 $ 928,883 $ 10,457,346 Reconciliation ofCash and Cash Equivalents to Combining Statement of Net Position-Internal Service Funds Cash and cash equivalents-current $ 1,658,374 $ 1,195,802 $ 4,092,122 $ 911,834 $ 7,858,132 Cash and cash equivalents-noncurrent - 90,947 2,491,218 17,049 2,599,214 Total cash and cash equivalents $ 1,658,374 $ 1,286,749 $ 6,583,340 $ 928,883 $ 10,457,346 Reconciliation ofoperating income(loss)to net cash provided by(used for)operating activities: Operating income(loss) $ 386,752 $ 554,045 $ 4,590,733 $ (75,245) $ 5,456,285 Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating activities: Depreciation expense 24,454 493,096 - 64,662 582,212 (Increase)decrease in accounts receivable (882) - (20,336) 1,678 (19,540) (Increase)decrease in prepaid items (5,057) 4,618 (216,682) (24,041) (241,162) (Increase)decrease in inventories (6,309) 3,908 (2,401) (Increase)decrease in OPEB deferred outflows (12,146) (8,260) (6,662) (16,728) (43,796) (Increase)decrease in pension deferred outflows 341,499 232,219 187,336 470,294 1,231,348 Increase(decrease)in accounts payable (22,739) (45,569) (375,337) (70,903) (514,548) Increase(decrease)in other current liabilities (96) 111 - (304) (289) Increase(decrease)in compensated absences (10,876) 10,524 27,006 32,864 59,518 Increase(decrease)in unearned revenues - - (12,892) (12,892) Increase(decrease)in other post employment benefits (127,461) (86,674) (69,922) (175,532) (459,589) Increase(decrease)in net pension liability (301,532) (205,042) (165,411) (415,253) (1,087,238) Increase(decrease)in OPEB deferred inflows 144,086 97,978 79,042 198,427 519,533 Increase(decrease)in pension deferred inflows (31,193) (21,212) (17,111) (42,958) (112,474) Total adjustments (8,252) 475,697 (578,077) 9,314 (101,318) Net cash provided by(used for)operating activities $ 378,500 $ 1,029,742 $ 4,012,656 $ (65,931) $ 5,354,967 112 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAPBASIS)AND ACTUAL- UTILITYFUND For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Water sales&charges Water sales $ 24,556,883 $ 24,485,197 $ 24,506,261 $ 21,064 Water taps 44,200 44,200 49,900 5,700 Water inspection fees 24,000 24,000 47,857 23,857 Sub-total 24,625,083 24,553,397 24,604,018 50,621 Sewer sales& charges Sewer sales 12,660,706 12,448,676 12,088,789 (359,887) Sewer taps 12,600 12,600 14,700 2,100 Sewer inspection fees 24,000 19,000 19,315 315 Sub-total 12,697,306 12,480,276 12,122,804 (357,472) Miscellaneous Interest income 144,000 103,769 187,815 84,046 Service charges 153,500 133,388 112,746 (20,642) Late charges 420,000 318,111 347,698 29,587 Miscellaneous 36,034 55,550 63,152 7,602 Joint use reimb. (Watauga) 93,000 102,925 102,925 - Subdivision meter revenue 64,193 60,193 62,109 1,916 Developer CIP participation - - 1,266,005 1,266,005 Sub-total 910,727 773,936 2,142,450 1,368,514 Appropriation of fund balance Previous year encumbrances - 15,920 15,920 - Total Revenues $ 38,233,116 $ 37,823,529 $ 38,885,192 $ 1,061,663 Expenses Operating Administration $ 356,793 $ 354,171 $ 358,998 $ (4,827) Development 946,578 945,842 912,495 33,347 Right of way maintenance 352,976 352,570 288,706 63,864 Sub-total 1,656,347 1,652,583 1,560,199 92,384 Water services Water operations 4,799,523 4,766,117 4,693,705 72,412 Purchase of water FTW 4,294,242 3,274,554 2,726,909 547,645 Purchase of water TRA 6,197,623 6,763,657 7,448,048 (684,391) Sub-total 15,291,388 14,804,328 14,868,662 (64,334) Sewer services Sewer operations 1,499,013 1,463,974 1,309,758 154,216 Sewer treatment FTW 1,522,893 1,463,829 1,415,527 48,302 Sewer treatment TRA 5,073,378 5,349,157 5,392,857 (43,700) Sub-total 8,095,284 8,276,960 8,118,142 158,818 113 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL- UTILITYFUND For the Year Ended September 30,2020 Variance with Final Budget Original Final Budgetary Positive Budget Budget Basis (Negative) Expenses(continued) Finance/Utility Collections: Meter reading $ 571,258 $ 571,392 $ 566,430 $ 4,962 Utility billing/customer service 1,051,214 1,040,074 982,323 57,751 Utility collection services 249,273 248,098 241,454 6,644 Accounting services 444,255 437,717 408,603 29,114 Budget&research 236,339 232,820 232,038 782 Sub-total 21552,339 2,530,101 2,430,848 99,253 Building services 1,822,929 1,822,929 1,822,929 - Non-departmental 317,120 338,091 290,037 48,054 Sub-total Departments 29,735,407 29,424,992 29,090,817 334,175 Other&Reserves Debt service 1,673,546 1,658,969 1,666,986 (8,017) Bond refunding - - 208,323 (208,323) Franchise fee 1,116,527 1,097,397 1,087,873 9,524 Indirect costs 2,182,170 2,182,170 2,182,170 - Payment in lieu of taxes 405,201 405,201 405,201 - Transfer from CIP reserve to information services fund 175,000 175,000 175,000 - Transfer to capital 901,657 901,657 901,657 - Reserve for capital 2,043,608 1,978,143 - 1,978,143 Total other&reserves 8,497,709 8,398,537 6,627,210 1,771,327 Total expenses 38,233,116 37,823,529 35,718,027 2,105,502 Net Increase(Decrease) $ - $ - 3,167,165 $ 3,167,165 Non-cash revenue(contributions from developers) 1,266,005 Net increase(decrease)-adjusted for non-cash revenue above 1,901,160 3,167,165 Reconciliation between budgetary basis actual and GAAP Depreciation expense (4,386,960) Amounts paid for long-term liabilities 1,227,501 Capital outlay (1,270,316) Increase (decrease)in fair value of investments 244,369 Gain/(loss)on disposal of assets 46,815 Inflows of resources that represent unearned revenue 1,049,023 Transfers in 901,657 Net change in fund balance(deficit)-GAAP $ 979,254 114 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-AQUATIC PARK For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Operating: Admissions $ 3,259,118 $ 500,000 $ 206,779 $ (293,221) Food and beverage 848,881 66,200 60,771 (5,429) Merchandise 150,087 8,400 8,564 164 Rentals 180,105 6,000 11,103 5,103 Sub-total 4,438,191 580,600 287,217 (293,383) Other revenues: Interest income 20,632 13,695 19,774 6,079 Transfers from other funds - 2,309,693 2,309,693 - Other 47,500 100 1,420 1,320 Sub-total 68,132 2,323,488 2,330,887 7,399 Total Revenues $ 4,506,323 $ 2,904,088 $ 2,618,104 $ (285,984) Expenses Operating: General services&utilities $ 673,365 $ 552,299 $ 534,199 $ 18,100 Public grounds,aquatics, and maintenance 1,130,995 783,994 828,326 (44,332) Business&office admin. 516,070 225,292 233,377 (8,085) Gift shop&concessions 600,103 232,582 232,312 270 Sales,special events,and admissions 318,519 202,612 212,390 (9,778) Sub-total 3,239,052 1,996,779 2,040,604 (43,825) Other and Reserves: Debt service 753,029 753,029 753,691 (662) Bond refunding 1,250 1,250 - 1,250 Transfer for capital projects 100,000 100,000 100,000 - Reserve for: Infrastructure&major repairs 357,669 - - - Non-departmental 55,323 53,030 54,875 (1,845) Total Other&reserves 1,267,271 907,309 908,566 (1,257) Total expenses 4,506,323 2,904,088 2,949,170 (45,082) Net Increase(Decrease) $ - $ - (331,066) $ (331,066) Reconciliation between budgetary basis actual and GAAP Depreciation expense (930,595) Amounts paid for long-term liabilities 568,806 Capital outlay 7,758 Increase(decrease)in fair value of investments 18,464 Transfers in 100,000 Net change in fund balance(deficit)-GAAP $ (566,633) 115 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAPBASIS)AND ACTUAL- GOLF For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Green fees $ 295,900 $ 318,000 $ 330,437 $ 12,437 Pro shop 110,700 121,000 132,168 11,168 Driving range 34,500 34,500 39,974 5,474 Carts 133,900 114,000 114,147 147 Food&beverage 339,300 390,773 420,822 30,049 Interfund loan 697,479 751,989 751,989 - Other revenues 39,768 36,307 178,009 141,702 Appropriation of fund balance - 97,521 - (97,521) Total Revenues 1,651,547 1,864,090 1,967,546 103,456 Expenses Operating Pro shop 73,110 107,722 116,296 (8,574) Pro shop(cost of goods sold) 59,000 63,500 64,651 (1,151) Driving range 16,500 12,135 13,446 (1,311) Golf carts 156,604 169,464 178,899 (9,435) Course maintenance 552,181 540,800 617,473 (76,673) Food&beverage 163,090 160,900 171,591 (10,691) Food&beverage (cost of goods sold) 80,280 90,400 89,718 682 General&administrative 278,775 296,798 322,094 (25,296) Clubhouse 90,100 74,430 99,469 (25,039) Management fees 130,033 130,033 141,127 (11,094) Sub-total 1,599,673 1,646,182 1,814,764 (168,582) Other and Reserves Debt service 51,874 117,908 190,563 (72,655) Reserve for Equipment/CIP - 100,000 100,000 - Total Other&reserves 51,874 217,908 290,563 (72,655) Total expenses 1,651,547 1,864,090 2,105,327 (241,237) Net Increase(Decrease) $ - $ - (137,781) $ (137,781) Reconciliation between budgetary basis actual and GAAP Depreciation expense (359,672) Amounts paid for long-term liabilities 35,904 Appropriations from fund balance 3,317,668 Capital outlay (3,135,124) Increase(decrease)in fair value of investments 4,931 Net change in fund balance(deficit)-GAAP $ (274,074) 116 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-FACILITIES AND CONSTRUCTION For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Charges for service Transfer from General fund $ 812,101 $ 812,101 $ 812,101 $ - Parks development fund 277,788 277,788 277,788 - Utility fund 1,822,929 1,822,929 1,822,929 - Sub-total 2,912,818 2,912,818 2,912,818 - Other revenues Interest income 33,000 33,000 43,233 10,233 Rent from rental properties 36,900 42,300 41,270 (1,030) Sub-total 69,900 75,300 84,503 9,203 Sub-total revenues 2,982,718 2,988,118 2,997,321 9,203 Total Revenues $ 2,982,718 $ 2,988,118 $ 2,997,321 $ 9,203 Expenses Operating: General services $ 265,629 $ 264,057 $ 263,396 $ 661 Building services 2,474,383 2,514,731 2,241,723 273,008 Rental property program 36,120 36,120 21,208 14,912 Transfer to capital budget 53,000 96,500 96,500 - Sub-total 2,829,132 2,911,408 2,622,827 288,581 Other and Reserves: Other 22,762 21,686 19,232 2,454 Facility reserves 130,824 55,024 - 55,024 Total Other&reserves 153,586 76,710 19,232 57,478 Total expenses 2,982,718 2,988,118 2,642,059 346,059 Net Increase (Decrease) $ - $ - 355,262 $ 355,262 Reconciliation between budgetary basis actual and GAAP Depreciation expense (24,454) Amounts paid for long-term liabilities (2,377) Increase (decrease)in fair value of investments 26,995 Net change in fund balance (deficit)- GAAP $ 355,426 117 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-FLEET SERVICES For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Charges for service: Transfer from : General fund $ 1,389,677 $ 1,389,677 $ 1,389,677 $ - Utility fund 1,967,647 1,967,647 1,967,647 - Utility CIP/customers 288,678 288,678 288,678 - Crime control district 170,426 170,426 170,426 - Parks development fund 171,939 171,939 171,939 - Other funds 24,119 24,119 24,119 - Sub-total 4,012,486 4,012,486 4,012,486 - Other revenues: Interest income 42,000 30,000 42,856 12,856 Sale of city property 20,000 20,000 191,836 171,836 Other income - 23,564 34,803 11,239 Transfer from general fund - 28,875 28,875 - Sub-total 62,000 102,439 298,370 195,931 Sub-total revenues 4,074,486 4,114,925 4,310,856 195,931 Appropriation of fund balance: Equipment services 437,013 801,424 80,245 (721,179) Prior year encumbrances - 85,379 85,379 - Total Revenues $ 4,511,499 $ 5,001,728 $ 4,476,480 $ (525,248) Expenses General services $ 292,713 $ 288,953 $ 288,411 $ 542 Equipment services/operation 1,574,364 1,664,249 1,565,753 98,496 Fire fleet maintenance 323,461 366,935 349,944 16,991 Equipment purchases 746,830 600,748 583,567 17,181 Fire vehicles/equipment 107,280 77,280 93,118 (15,838) Police vehicles/equipment 553,000 536,000 519,383 16,617 Sub-total 3,597,648 3,534,165 3,400,176 133,989 Other and Reserves: Debt service 629,884 498,973 498,973 - Other 183,967 579,142 577,331 1,811 Equipment services reserves 100,000 389,448 - 389,448 Total Other&reserves 913,851 11467,563 1,076,304 391,259 Total expenses 4,511,499 5,001,728 4,476,480 525,248 Net Increase(Decrease) $ - $ - - $ - Reconciliation between budgetary basis actual and GAAP Depreciation expense (493,096) Amounts paid for long-term liabilities (19,537) Capital outlay 476,931 Increase(decrease)in fair value of investments 20,791 Gain/(loss)on disposal of assets 159,096 Outflows of resources for prepaid expenses (4,618) Appropriations from fund balance (165,624) Net change in fund balance(deficit)-GAAP $ (26,057) 118 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-SELF INSURANCE FUND For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Allocations Health/medical $ 13,148,568 $ 13,148,568 $ 13,086,683 $ (61,885) Worker's compensation 589,500 589,500 589,500 - Administration allocation 517,637 517,637 519,012 1,375 Other insurance 813,925 813,925 819,608 5,683 Sub-total 15,069,630 15,069,630 15,014,803 (54,827) Other revenues Interest income 81,473 81,524 143,731 62,207 Other income 137,000 137,000 215,554 78,554 Expenditure reimbursement 400,000 400,000 107,717 (292,283) Sub-total 618,473 618,524 467,002 (151,522) Sub-total revenues 15,688,103 15,688,154 15,481,805 (206,349) Appropriation of fund balance 100,000 100,000 - (100,000) Total Revenues $ 15,788,103 $ 15,788,154 $ 15,481,805 $ (306,349) Expenses Health/medical $ 13,259,089 $ 11,262,557 $ 8,687,168 $ 2,575,389 Worker's compensation 589,500 589,500 375,971 213,529 Personnel expenses 508,784 497,881 476,372 21,509 Other insurance 678,926 848,336 791,224 57,112 Other expenses 137,000 198,500 207,310 (8,810) Life insurance premium 135,000 135,000 116,620 18,380 Sub-total 15,308,299 13,531,774 10,654,665 2,877,109 Other and Reserves Retiree health care reserve 100,000 100,000 100,000 - Contribution to reserves 379,804 2,156,380 - 2,156,380 Total expenses 15,788,103 15,788,154 10,754,665 5,033,489 Net Increase (Decrease) $ - $ - 4,727,140 $ 4,727,140 Reconciliation between budgetary basis actual and GAAP Amounts paid for long-term liabilities (34,277) Increase (decrease)in fair value of investments 95,962 Gain/(loss) on disposal of assets 2,678 Outflows of resources for prepaid expenses 216,682 Net change in fund balance (deficit)- GAAP $ 5,008,185 119 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE BUDGET(NON-GAAP BASIS)AND ACTUAL-INFORMATION TECHNOLOGY For the Year Ended September 30,2020 Variance with Budgetary Final Budget Original Final Basis Positive Budget Budget Actual (Negative) Revenues Telecom(transfers in) General fund $ 369,544 $ 369,544 $ 369,544 $ Park fund 37,493 37,493 37,493 Crime control district 39,739 39,739 39,739 Utility fund 93,965 93,965 93,965 Other funds 67,487 67,487 67,487 Sub-total 608,228 608,228 608,228 Computers(transfers in) General fund 1,093,677 1,035,727 1,035,727 Park fund 118,506 118,506 118,506 Crime control district 210,252 210,252 210,252 Utility fund 771,562 771,562 771,562 Other funds 322,166 322,166 322,166 Sub-total 2,516,163 2,458,213 2,458,213 Other revenues: Interest income 29,167 21,000 24,896 3,896 Transmitter lease 152,958 170,000 176,960 6,960 Other income - 57,952 61,217 3,265 Transfer from general fund 193,954 209,154 209,154 - Transfer from utility fund 175,000 175,000 175,000 - Sub-total 551,079 633,106 647,227 14,121 Sub-total revenues 3,675,470 3,699,547 3,713,668 14,121 Appropriation of fund balance Prior year encumbrances - 153,301 - (153,301) Information systems reserves 266,152 322,200 - (322,200) Total Revenues $ 3,941,622 $ 4,175,048 $ 3,713,668 $ (461,380) Expenses General services $ 266,283 $ 264,779 $ 278,069 $ (13,290) Major computer systems 346,426 349,047 315,917 33,130 Microcomputer systems 776,217 791,700 825,548 (33,848) Telecommunications 500,599 495,949 474,742 21,207 Data network 938,810 936,739 629,630 307,109 GIS system 183,145 182,139 181,397 742 Public safety 642,645 657,336 548,317 109,019 Sub-total 3,654,125 3,677,689 3,253,620 424,069 Other and Reserves Other 14,497 11,849 47,410 (35,561) System improvements 273,000 485,510 - 485,510 Total Other&reserves 287,497 497,359 47,410 449,949 Total expenses 3,941,622 4,175,048 3,301,030 874,018 Net Increase(Decrease) $ $ - 412,638 $ 412,638 Reconciliation between budgetary basis actual and GAAP Depreciation expense (64,662) Amounts paid for long-term liabilities (51,116) Capital outlay (470,013) Increase(decrease)in fair value of investments 12,452 Outflows of resources for prepaid expenses 24,041 Net change in fund balance(deficit)-GAAP $ (136,660) 120 North Richland Hills,TX 2020 CAFR Statistical Section 121 North Richland Hills,TX 2020 CAFR l � ,.0 k° �4 1 F✓ vty ,.. The NRH water and sewer utility provides services to over 21,000 residential and business customers. The water provided by the city consistently meets or exceeds all state and federal drinking water requirements. The City of North Richland Hills purchases its drinking water, as well as sewer treatment services, from the City of Fort Worth and the Trinity River Authority as a wholesale customer. The Public Works Department Utility Division is responsible for maintenance of the city's water and sewer infrastructure. 122 North Richland Hills,TX 2020 CAFR Statistical Section Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government's current level of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 123 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 1 NET POSITION BY COMPONENT Page 1 of 2 Last Ten Fiscal Years Amounts in(000's) (Accrual Basis of Accounting) 2020 2019 2018 2017 2016 Gove rnme ntal Activities Net investment in capital assets $250,864,326 $221,090,589 $214,081,749 $208,508,926 $199,625,197 Restricted 23,228,613 20,825,594 16,138,949 11,257,910 4,005,996 Unrestricted (18,239,276) 1,428,088 (4,852,295) 15,716,225 28,160,118 Total governmental activities net position $255,853,663 $243,344,271 $225,368,403 $235,483,061 $231,791,311 Business-type Activities Net investment in capital assets $ 71,094,790 $ 73,399,637 $ 74,787,942 $ 52,999,815 $ 54,387,271 Restricted 6,188,722 5,119,704 4,260,462 3,764,244 3,507,899 Unrestricted 12,239,489 8,872,010 8,737,576 9,421,299 13,365,978 Total business-type activities net position $ 89,523,001 $ 87,391,351 $ 87,785,980 $ 66,185,358 $ 71,261,148 Primary Government Net investment in capital assets $321,959,116 $294,490,226 $288,869,691 $261,508,741 $254,012,468 Restricted 29,417,335 25,945,298 20,399,411 15,022,154 7,513,895 Unrestricted (5,999,787) 10,300,098 3,885,281 25,137,524 41,526,096 Total primary government net position $345,376,664 $330,735,622 $313,154,383 $301,668,419 $303,052,459 124 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 1 NET POSITION BY COMPONENT Page 2 of 2 Last Ten Fiscal Years Amounts in(000's) (Accrual Basis of Accounting) 2015 2014 2013 2012 2011 Gove rnme ntal Activities Net investment in capital assets $196,388,094 $196,926,762 $205,397,867 $205,162,006 $178,349,544 Restricted 3,451,280 4,115,704 4,634,803 4,253,430 3,368,190 Unrestricted 30,601,993 39,299,589 26,228,262 23,572,411 37,099,102 Total governmental activities net position $230,441,367 $240,342,055 $236,260,932 $232,987,847 $218,816,836 Business-type Activities Net investment in capital assets $ 57,335,778 $ 58,375,965 $ 62,044,064 $ 62,615,382 $ 65,810,811 Restricted 4,153,891 3,788,127 3,762,460 2,710,553 2,600,187 Unrestricted 17,209,164 22,414,369 20,753,387 22,957,383 21,455,781 Total business-type activities net position $ 78,698,833 $ 84,578,461 $ 86,559,911 $ 88,283,318 $ 89,866,779 Primary Government Net investment in capital assets $253,723,872 $255,302,727 $267,441,931 $267,777,388 $244,160,355 Restricted 7,605,171 7,903,831 8,397,263 6,963,983 5,968,377 Unrestricted 47,811,157 61,713,958 46,981,649 46,529,794 58,554,883 Total primary government net position $309,140,200 $324,920,516 $322,820,843 $321,271,165 $308,683,615 125 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 2 CHANGES IN NET POSITION Page 1 of 4 Last Ten Fiscal Years (Accrual Basis of Accounting) 2020 2019 2018 2017 2016 Expenses Governmental Activities: General government S 18,402,693 S 14,795,971 S 7,726,396 S 10,056,228 S 17,381,050 Public safety 30,185,432 34,641,711 10,115,202 36,900,873 36,372,485 Culture and recreation 12,150,887 12,988,181 7,985,984 13,477,176 12,638,389 Public works 7,988,277 8,100,775 10,465,375 11,362,841 9,569,723 Interest and other fees 4,873,291 3,452,789 3,562,127 3,743,076 4,016,128 Total governmental activities expenses 73,600,580 73,979,427 39,855,084 75,540,194 79,977,775 Business-Type Activities: Utility 35,405,045 33,543,900 32,041,219 31,655,646 31,490,416 Aquatic park 3,215,995 4,556,251 4,044,801 4,863,609 5,006,324 Golf course 2,136,067 2,521,179 2,562,080 2,554,338 2,465,475 Total business-type activities expenses 40,757,107 40,621,330 38,648,100 39,073,593 38,962,215 Total primary government expenses S 114,357,687 $ 114,600,757 $ 78,503,184 $ 114,613,787 $ 118,939,990 Program Revenues Governmental Activities: Charges for services: General government S 5,099,784 $ 5,311,802 $ 4,835,477 $ 5,904,994 $ 4,158,829 Public safety 1,747,559 3,122,234 2,757,133 2,443,763 3,486,887 Culture and recreation 2,572,335 4,179,364 3,487,459 3,274,056 3,246,982 Public works 1,873,331 1,206,002 1,100,243 1,118,102 979,812 Operating grants and contributions 9,705,738 8,356,606 7,086,384 4,910,865 3,336,301 Capital grants and contributions 553,335 787,186 225,013 1,647,847 4,575,258 Total governmental activities program revenues 21,552,082 22,963,194 19,491,709 19,299,627 19,784,069 Business-Type Activities Charges for services: Utility 38,934,995 34,803,804 37,145,864 31,983,377 30,544,439 Aquatic park 287,217 4,072,406 3,759,312 4,117,435 4,005,048 Golf course 1,032,999 2,560,903 2,361,058 2,543,641 2,552,175 Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenues 40,255,211 41,437,113 43,266,234 38,644,453 37,101,662 Total primary government program revenues S 61,807,293 $ 64,400,307 $ 62,757,943 S 57,944,080 S 56,885,731 Net(Expense)Revenue Governmental activities S (52,048,498) $ (51,016,233) $ (20,363,375) S (56,240,567) S (60,193,706) Business-type activities (501,896) 815,783 4,618,134 (429,140) (1,860,553) Total primary government net expense S (52,550,394) $ (50,200,450) $ (15,745,241) S (56,669,707) S (62,054,259) 126 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 2 CHANGES IN NET POSITION Page 2 of 4 Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2014 2013 2012 2011 Expenses Governmental Activities: General government S 11,393,967 S 11,226,130 S 10,656,322 $ 10,399,845 $ 9,886,731 Public safety 31,515,975 31,035,115 30,611,650 28,881,714 28,512,136 Culture and recreation 12,542,034 11,931,205 11,633,882 11,679,786 9,352,354 Public works 8,958,913 8,962,500 8,398,711 7,794,339 7,679,001 Interest and other fees 4,488,461 3,915,632 3,673,780 3,453,283 2,108,277 Total governmental activities expenses 68,899,350 67,070,582 64,974,345 62,208,967 57,538,499 Business-Type Activities: Utility 30,228,765 28,066,386 27,623,220 26,642,141 27,981,025 Aquatic park 4,354,652 4,542,966 4,749,688 4,753,949 4,507,561 Golf course 2,394,132 2,433,004 2,566,632 2,429,973 2,227,315 Total business-type activities expenses 36,977,549 35,042,356 34,939,540 33,826,063 34,715,901 Total primary government expenses $ 105,876,899 S 102,112,938 $ 99,913,885 $ 96,035,030 $ 92,254,400 Program Revenues Governmental Activities: Charges for services: General government $ 5,145,175 S 5,521,811 $ 5,497,050 $ 5,490,245 $ 5,466,876 Public safety 3,894,194 3,655,306 4,204,508 3,426,008 2,668,111 Culture and recreation 3,104,181 3,100,292 3,001,249 2,381,024 858,241 Public works 1,063,766 1,136,920 937,102 932,819 857,809 Operating grants and contributions 2,966,484 2,826,280 2,545,158 1,833,138 879,524 Capital grants and contributions 478,587 2,676,372 2,938,951 7,401,996 17,644,326 Total governmental activities program revenues 16,652,387 18,916,981 19,124,018 21,465,230 28,374,887 Business-Type Activities Charges for services: Utility 29,826,840 30,483,178 30,160,950 28,445,746 28,921,168 Aquatic park 4,237,734 4,019,970 4,377,388 4,548,828 4,587,899 Golf course 2,335,223 2,314,514 2,371,010 2,443,865 2,324,118 Operating grants and contributions - 84,842 138,831 80,660 - Capital grants and contributions - - 7,291 50,744 4,643,096 Total business-type activities program revenues 36,399,797 36,902,504 37,055,470 35,569,843 40,476,281 Total primary government program revenues $ 53,052,184 S 55,819,485 S 56,179,488 S 57,035,073 S 68,851,168 Net(Expense)Revenue Governmental activities $ (52,246,963) S (48,153,601) S (45,850,327) S (40,743,737) S (29,163,612) Business-type activities (577,752) 1,860,148 2,115,930 1,743,780 5,760,380 Total primary government net expense $ (52,824,715) S (46,293,453) S (43,734,397) S (38,999,957) S (23,403,232) 127 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 2 CHANGES IN NET POSITION Page 3 of 4 Last Ten Fiscal Years (Accrual Basis of Accounting) 2020 2019 2018 2017 2016 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 34,618,987 S 34,416,931 $ 32,519,445 $ 29,852,651 S 27,060,196 Sales tax 22,014,072 20,438,448 20,519,795 19,838,314 19,324,022 Mixed beverage 125,456 154,095 145,495 145,222 139,062 Franchise and other taxes 3,818,194 4,315,995 4,093,150 4,015,982 4,437,141 Occupancy 254,203 279,026 301,835 278,764 275,072 Unrestricted investment earnings 2,032,166 2,670,106 396,058 285,287 522,485 Miscellaneous 2,379,746 3,101,123 3,237,668 637,784 4,077,647 Transfers (684,934) 3,616,377 2,685,453 4,878,313 5,708,025 Total governmental activities 64,557,890 68,992,101 63,898,899 59,932,317 61,543,650 Business-Type Activities: Unrestricted investment earnings 522,875 670,582 63,542 74,378 127,777 Miscellaneous 1,425,737 1,735,383 2,153,798 157,285 3,116 Transfers 684,934 (3,616,377) (2,685,453) (4,878,313) (5,708,025) Total business-type activities 2,633,546 (1,210,412) (468,113) (4,646,650) (5,577,132) Total primary government $ 67,191,436 S 67,781,689 S 63,430,786 S 55,285,667 S 55,966,518 Changes in Net Position: Governmental activities $ 12,509,392 S 17,975,868 S 43,535,524 S 3,691,750 S 1,349,944 Business-type activities 2,131,650 (394,629) 4,150,021 (5,075,790) (7,437,685) Total primary government $ 14,641,042 S 17,581,239 S 47,685,545 S (1,384,040) S (6,087,741) 128 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 2 CHANGES IN NET POSITION Page 4 of 4 Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2014 2013 2012 2011 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 26,099,238 S 24,903,041 $ 24,126,068 $ 22,222,620 S 19,339,750 Sales tax 18,571,502 18,007,872 17,359,807 16,974,086 16,645,412 Mixed beverage 138,100 129,512 117,223 101,724 128,007 Franchise and other taxes 4,502,303 4,332,756 4,166,579 4,269,229 4,329,500 Occupancy 232,793 206,930 221,003 210,324 238,410 Unrestricted investment earnings 514,062 320,460 258,705 300,928 495,386 Miscellaneous 188,123 142,074 205,445 288,093 1,271,555 Transfers 3,973,821 4,162,160 3,674,512 3,384,630 1,590,704 Total governmental activities 54,219,942 52,204,805 50,129,342 47,751,634 44,038,724 Business-Type Activities: Unrestricted investment earnings 119,568 20,007 80,950 50,479 171,125 Miscellaneous 35,052 300,555 5,380 6,909 30,703 Transfers (3,973,821) (4,162,160) (3,674,512) (3,384,630) (1,590,704) Total business-type activities (3,819,201) (3,841,598) (3,588,182) (3,327,242) (1,388,876) Total primary government $ 50,400,741 S 48,363,207 S 46,541,160 S 44,424,392 S 42,649,848 Changes in Net Position: Governmental activities $ 1,972,979 S 4,051,204 S 4,279,015 S 7,007,897 S 14,875,112 Business-type activities (4,396,953) (1,981,450) (1,472,252) (1,583,462) 4,371,504 Total primary government $ (2,423,974) S 2,069,754 S 2,806,763 S 5,424,435 S 19,246,616 129 North Richland Hills,TX 2020 CAFR M ti �O o 0 o N 00 0 00 o n O �p oM0 N O N 00 N --� Ef3 EA ,y r- 00 C N 00 l— �c O �c V) N l7t C� N M N U O r- 00 r-� C� M �q N M 00 C O l— 0000 M � O 00 ' H M Oc p �c '� C� 00 00 . ry. O O rTi C4 M C� W O ��Uyy C� Cf) Vl 00 00 C� M 00 1 00 �c F4 r 00 i 0 = � O 00 O O -7t r- 00 rl vl 0 p � � D O DD N M 00 O_ Gei A M N N 00 r- V) Z M 00 ,--i Ef3 EA N V1 V1 00 O O' (-AO� ,--i 00 00 C� 00 � 00 � 00 v1 l O ' vi 00 00 00 O� v1 O� O 00 O N C4N C - �cO M C� - DD O O O N O N C� M v ,--� ,--� M V) �p Ef3 EA 00 C� 0000--i r ,Vly 00 00 � 00 � N �c Vl V�1 W N M M N 00 M� r- N r- V) � � M 00 N 00 M N Z M N V1 0000 ^� C4 M N W �q ' l O DD � M V1 00 =1. 00 C� M I M 00 00 �c - 00 Cf) Steil C4 00 00 OM N M �c ;01 a C4 V1 N M M C� O 00 00 W --� M Vl � 00 � � d zj � d CITY OF NORTH RICHLAND HILLS, TEXAS Table 4 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Page 1 of 2 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2020 2019 2018 2017 2016 Revenues Taxes $ 60,849,339 $ 59,608,600 $ 57,455,121 $ 54,092,627 $ 51,253,936 Licenses and permits 2,581,001 2,550,598 2,150,745 2,326,087 2,534,768 Charges for services 6,214,339 7,446,486 7,086,865 6,120,805 6,027,624 Gas utility leases and royalties 407,632 519,830 555,185 454,264 263,932 Fines 1,840,751 2,088,401 1,973,660 2,212,430 1,892,511 Civil citations - - - 1,088,773 1,322,940 Contributions 264,029 281,178 428,977 362,139 1,795,872 Special assessments - 4,199 8,764 775 3,755 Investment income 1,626,298 2,203,691 385,620 304,456 475,680 Intergovernmental 13,660,474 5,195,951 6,892,700 6,194,623 6,121,987 Forfeitures 56,939 114,246 86,783 92,346 112,118 Developer contributions - - - - - Miscellaneous 652,030 1,858,022 333,603 354,955 366,569 Total Revenues 88,152,832 81,871,202 77,358,023 73,604,280 72,171,692 Expenditures General government 10,615,947 10,497,502 10,259,209 10,447,419 9,965,076 Public safety 35,964,977 35,480,280 34,610,632 33,044,578 31,277,423 Culture and recreation 9,898,855 10,514,871 10,335,379 10,186,032 9,634,940 Public works 5,308,773 3,258,397 3,193,928 3,153,832 3,088,996 Capital outlay 11,802,985 13,463,999 19,572,041 15,089,154 27,524,601 Debt Service: Principal retirement 10,595,000 10,630,000 10,745,000 10,515,000 11,187,728 Interest and fiscal charges 3,998,358 3,586,252 3,941,465 4,165,468 4,327,617 Bond issuance costs 1,273,158 216,920 - - - Total Expenditures 89,458,053 87,648,221 92,657,654 86,601,483 97,006,381 Excess of revenues over(under) expenditures (1,305,221) (5,777,019) (15,299,631) (12,997,203) (24,834,689) Other Financing Sources (Uses) Issuance of debt 8,425,000 8,490,000 7,545,000 1,850,000 Issuance of refunding debt 3,795,000 4,865,000 1,695,000 2,006,810 Premium on issuance of debt 1,082,100 738,173 362,160 97,212 Payment to refunded bond escrow agent (4,182,132) (5,380,743) - (1,682,019) (2,025,720) Proceeds from sale of assets 57,892 484,003 2,712,686 505,650 3,977,054 Transfers in 20,663,183 14,220,231 12,180,950 14,617,046 19,233,421 Transfers(out) (18,128,238) (8,733,124) (7,332,100) (8,657,479) (12,888,595) Total other financing sources (uses) 11,712,805 14,683,540 7,561,536 14,385,358 12,250,182 Net change in fund balances $ 10,407,584 $ 8,906,521 $ (7,738,095) $ 1,388,155 $ (12,584,507) Debt service as a percentage of noncapital expenditures 19.1% 19.5% 19.8% 20.4% 20.8% 131 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 4 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Page 2 of 2 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2015 2014 2013 2012 2011 Revenues Taxes $ 49,541,169 $ 47,625,477 $ 45,990,682 $ 43,777,983 $ 40,681,079 Licenses and permits 1,520,086 1,632,278 1,764,004 1,543,875 1375,742 Charges for services 5,904,848 6,681,429 6,800,050 6,715,031 6,076,625 Gas utility leases and royalties 664,788 1,187,340 - - - Fines 2,2222,995 1,990,953 2,424,064 2,421,696 2,665,135 Civil citations 1,226,567 990,714 923,282 778,393 674,745 Contributions 277,972 199,825 140,385 176,740 187,813 Special assessments 12,095 - 10,116 200 8,748 Investment income 437,668 319,622 177,178 415,326 383,453 Intergovernmental 4,305,248 5,072,166 4,467,635 5,732,323 9,070,672 Forfeitures 67,598 107,275 323,285 138,604 183,295 Developer contributions - 600,000 - - - Miscellaneous 263,251 388,858 1,318,985 1,363,579 445,214 Total Revenues 66,444,285 66,795,937 64,339,666 63,063,750 61,752,521 Expenditures General government 9,299,236 10,155,142 10,673,511 10,829,793 10311,297 Public safety 30,050,383 29,022,814 28,317,163 26,959,990 25,934,692 Culture and recreation 9,534,702 9,231,503 9,290,204 9,163,107 7,453,931 Public works 3,024,822 2,924,516 3,563,149 3,601,659 2,416,186 Capital outlay 55,831,018 30,729,875 10,208,747 15,945,071 15,475,441 Debt Service: Principal retirement 9,999,376 8,578,960 8,523,434 8,846,947 8,187,696 Interest and fiscal charges 4,506,910 3,924,385 3,659,348 3,092,172 2,194,444 Interest and fiscal charges - - - - - Total Expenditures 122,246,447 94,567,195 74,235,556 78,438,739 71,973,687 Excess of revenues over(under) expenditures (55,802,162) (27,771,2-58) (9,895,890) (15,374,989) (10,2221,166) Other Financing Sources (Uses) Issuance of debt 22,215,000 24,360,000 9,845,000 26,224,2251 7315,000 Issuance of refunding debt 10,416,576 3,936,985 - 3,699,388 - Premium on issuance of debt 3,265,946 310,000 300,486 546,164 358,270 Payment to refunded bond escrow agent (10,416,576) (3,936,985) - (3,809,076) - Proceeds from sale of assets 136,558 19,500 799,045 3,145,280 806,479 Transfers in 12,337,451 16,597,422 7,782,662 8,705,604 5,659,688 Transfers(out) (6,151,378) (13,343,076) (3,816,456) (4,842,779) (4304,576) Total other financing sources (uses) 31,803,577 27,943,846 14,910,737 33,668,832 9,834,861 Net change in fund balances $ (23,998,585) $ 172,588 $ 5,014,847 $ 18,293,843 $ (386,305) Debt service as a percentage of noncapital expenditures 20.9% 18.9% 19.0% 19.2% 18.4% 132 North Richland Hills,TX 2020 CAFR ti a h 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A M N 000 000 of I If) 00 O �c cz U .Ur N O od W bb 00 'O 00 M N M 00 00 YE Mcd CA 4.1 o � � y V O M M CD cz O O CZ V 00 M OHO of 1,0 N N M N c N N cz N 00 of O vi vi p N N N cd 00 N 7Ur c�C Q y J2 ,Oti 0 00 c. 000^ cy r--� o o ry ry �3 H cz QI ~ cz U 3Ur T 69 N cz N cz vi al 00 O N 0, m M O 0 O 7�-i 00 Vl Ol Ol M CD 0,Ol � Ct� l^^ M l^^ l^ O O� 11O 00 r� O 00 O O Oi 110 00 v) oo M cNy, llo ol ICI O of vi l-- �p ,� ,-' .j O cz 00 O v) (� 00 Y�I o, M of "o O 00 00 00 00 W CZ cz cz y..� U M M 00 N M 00 VO N 00 00 vi CD N c cz C cz CZ � CZ � O �••I •� 'f N vi Oi 00 O� O� O cC , U YN� N � U • "'� tOOy --i vl 00cz q y F+I U b4 yy Ocz Z r� N N N N N N N N N N N Q y ti a h 0 N 0 N H 4.1 �C �C O O O O O O O O O O O V O O O O O O O O O O O O O O O O O M M M O O O O O O O O O O O ~ x Oa O � F+y O O O O O O O O O O zA o � o x ? 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O O O O O O O O O O 00 �� w N N N N N N N N N N CITY OF NORTH RICHLAND HILLS, TEXAS Table 7 PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Year ended September 30, 2020 2019 % of Total Assessed Assessed Taxpayer Type of Business Valuation* Valuation Star Delano LLC/Star Meadows LLC Multi Family $ 82,071,920 1.33% 8500 Harwood Gardens LP Multi Family 70,100,000 1.13% Company One,LLC Real Estate 69,286,440 1.12% Dolce Living Hometown LLC Multi Family 52,100,000 0.84% Silver Creek II Norstar USA/Skyline Norstar Multi Family 51,200,000 0.83% Devon Square LLC Multi Family 43,500,000 0.70% Oncor Electric Delivery Co LLC Utility Service Provider 39,029,150 0.63% Rockport NRH LLC Multi Family 37,781,052 0.61% Wal-Mart Real Estate Bus Trust/Stores Tex Retail 36,374,039 0.59% Columbia.N Hills Hosp Sub Healthcare Provider 36,181,894 0.58% $517,624,495 8.36% Year ended September 30, 2011 2010 % of Total Assessed Assessed Taxpayer Type of Business Valuation* Valuation Wal-Mart Retail $ 61,785,850 1.72% Hospital Corporation of America Healthcare Provider 42,593,212 1.18% Western RIM Investors 2001-3 LP/1997-2 Real Estate 36,924,798 1.03% Oncor Electric Delivery Co Utility Service Provider 26,808,838 0.74% BGPC Equestrain Real Estate 23,500,000 0.65% Venue at Home Town LTD ETAL Property Developer 18,265,850 0.51% Bradbury Pointe LLC Commercial Business 16,995,460 0.47% Alliance PP2 FX3 LP Commercial/Real Estate 16,273,834 0.45% Company One,LLC Real Estate 15,665,282 0.43% Tyson Prepared Foods Inc Food Manufacturer 15,623,026 0.43% $274,436,150 7.61% * Source: Tarrant Appraisal District 135 North Richland Hills,TX 2020 CAFR 'l �hdlllu y / The Maker Spot is a 4,500 sq. ft. makerspace on the second floor of the NRH Library. The Maker Spot is a community workspace where Library cardholders can come to create,explore,collaborate and innovate.The Maker Spot, opened in 2015, was funded by a Special Projects grant from the Texas State Library and Archives and the Institute for Museum and Library Services. Lip, „r of jj� %i%%�///ii /,��`l/w:an,r,:raararsss a vra «s �l�l�/�N1�HT(60fGYl%fl�Pvfl�fifY �' � %` ,xyivL5U4hYr�n�/iml '` a a Jp/ r 136 North Richland Hills,TX 2020 CAFR ti a h 0 N 0 N e«. H .. eC o A � H N N N N N N N OM M M Ef3 � M � O ~ �" �" y a Ql Ql Ql Ql Ql Ql Ql Ql Ql � O W H ,S� ti O a Q H � Ef3 M - - - - - - y V N w N N N N N N N N N N CITY OF NORTH RICHLAND HILLS, TEXAS Table 9 RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years(dollars in thousands,except per capita) General Bonded Debt Pe rce ntage General General Certificates of Net Bonded Fiscal Estimated Net Taxable Obligation of Total General Taxable Debt Per Year Population 1 Value 2 Bonds Obligation Loans Payable Bonded Debt Value Capita 1 2011 63,420 $ 3,602,318 $ 41,800 $ 9,575 $ 1,242 $ 52,617 1.46% 830 2012 63,420 3,618,184 65,283 33,330 840 99,453 2.75% 1,568 2013 63,420 3,732,732 70,179 30,910 311 101,400 2.72% 1,599 2014 65,690 3,841,064 81,512 36,050 - 117,562 3.06% 1,790 2015 66,300 4,056,028 83,354 50,105 133,459 3.29% 2,013 2016 69,204 4,150,188 77,625 46,330 123,955 2.99% 1,791 2017 69,768 4,599,695 71,478 49,485 120,963 2.63% 1,734 2018 69,600 5,163,559 64,925 44,825 109,750 2.13% 1,577 2019 71,269 5,650,605 60,131 47,395 107,526 1.90% 1,509 2020 71,508 6,187,263 56,130 49,487 105,617 1.71% 1,477 Othe r Gov't Activities Debt Business-Type Activities Pe rce ntage Total Pe rce ntage Sales Tax General Total Total of Net Bonded of Per Fiscal Revenue Obligation Certificates Capital Business-type Primary Taxable Debt Per Capita Year bonds Bonds of Obligation Leases Activities Government 3 Value Capita 1 Income i 2011 $ 2,640 $ 1,432 $ 12,610 $ - $ 14,042 $ 69,298 1.92% $ 1,093 3.46% 2012 1,645 2,346 16,415 388 19,149 120,246 3.32% 1,896 6.08% 2013 615 1,885 15,300 317 17,502 119,517 3.20% 1,885 5.87% 2014 210 1,815 15,280 245 17,340 135,112 3.52% 2,057 6.47% 2015 105 2,012 13,670 163 15,845 149,409 3.68% 2,254 7.00% 2016 - 3,452 14,980 92 18,524 142,479 3.43% 2,059 6.33% 2017 3,190 13,605 253 17,048 138,011 3.00% 1,978 5.73% 2018 2,737 12,455 175 15,367 125,117 2.42% 1,798 5.16% 2019 4,784 14,665 77 19,526 127,052 2.25% 1,783 4.91% 2020 3,949 20,772 308 25,029 130,647 2.11% 1,827 4.91% Votes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 See Table 13 for additional population statistics. 2 See Table 5 for additional information on net taxable value. 3 Includes general bonded debt,other governmental activities debt,aid business-type activities debt,net of premiums aid discounts. 138 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 10 DIRECT AND ESTIMATED OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Last Ten Fiscal Years Overlapping Net Bonded Percentage City Share of Taxing Jurisdiction Outstanding Debt Applicable 2 Overlapping Debt City of North Richland Hills $ 117,830,000 100.00% $ 117,830,000 Birdville ISD 440,974,599 47.80% 210,785,858 Hurst-Euless-Bedford ISD 364,720,000 0.06% 218,832 Keller ISD 906,954,071 3.66% 33,194,519 Tarrant County 240,445,000 3.00% 7,213,350 Tarrant County Hospital District 16,135,000 3.00% 484,050 Tarrant County College District 264,175,000 3.00% 7,925,250 Total Overlapping Debt $ 259,821,859 Total Direct and Overlapping Debt $ 377,651,859 Source:Municipal Advisory Council of Texas i Includes self-supporting governmental activities debt. 2 The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 139 North Richland Hills,TX 2020 CAFR r1 r/� � vi�A74p�✓� � 1 ri�Jl is✓ �/� ✓ fr� r it �m U r w J r r � � ✓/j,,�r � r , ���rtiw�h��'r�xri �r �tiJl� rYi�r � r of r 1 r cl/'�!�6/pr i a I�� I/,� �r��4'',��f�);�Jl l✓���,/,/,y�����H�!L�4��� i r '�11f jV7i'��yr��u�r�4 ✓vlf�rrl.. ,!,.' ","a � �" � �(.';,r orb,,;.� mrdr'.✓, � ��e✓t1 ,�o� '✓� l r��r- 'l itiYlP rq l,l'„i;? , ��11 '�., �,n� �X �,Sm �,r ,fi'i�f r, r,r ;, „,. ,�. r i;u .� f; �' ;9. w �'F, r. ���rt'rj l�1✓r �f�r ,�ri bri� �r,��.;�Y. '; :' /N fin.. �. ,.�;,�. !'/a�'�.!. „,,,.i,, ( rr ( ✓� .„r, 'i" {�r «°„,, 1 ,,,� ,i� /, fl&'��,�/ � , ,�� h w,m�, ; � �2,, �� r r ���.� ..,a-,a //.�/,. /K.,w�l Y� �;ln i ���i!����d /� ss � r/1r ,.l ✓, rlyyt". „k 1fF "'i wl���+�^7 i... � � li,�ly,,..r r�.,�,�ri �w ,.r.) '�,✓r.. �f�/ �, b;.,, Jy n,mr /,,: / ��a���.,,rr*�r lr l'��,d.,,r� ,„t rr ��».r�`''�" ,�°�i.ryw,1 �1,,1 N�,`�k..`t(v M�j�ru , ,,'S r��r r��r � r9?�''�it>�,,`�4 .i� Frr7�i JlYfq � .. ✓, r/ Js��wpA 1 �G'du rw,. lr�l ✓ J rP%�ra!-! r� ;GI h�J:. /Jlr�, - +� r� F r r� r�k st(G'^I,;, '� r�w�✓'•'1� �i yrt/ r h`�lJ� �'.i r$, r�Y��V� �"„1„aa. oaf,`;ti�N��fi 7 ���u,.Sa I✓� ��/,�`�"�����r��,�"����4'Y�0 rq� r JN; u.169/,,v'�.��, f��i�li'!d������4� �r''� �,l� �r�(v% �' � � � r '„�:cr� � r� ;✓�yy �Ir'.:�4�F�v �; �° ,, a � ry � �r+R�N'� �ro°. y���7 ,yP'i' �� ��r�� ���"r''n,1',„y�'� ��d'��h r ��,71,. ,. «J"5;�,,��,'�' �,i'�'r?�ra,�l�,°,r"✓ �" ��'nrr '' :�i��'k �i����r,�����"Y��%7,�'". i°i4�.,r� 'r7t��(kr� rd'�hJs�'�����,�,��,^ir rq 7�l r�,�r 4� � r��"""� �r v! �' i,f'� l � Ifs ✓ a ,� M�ei 9�^�+ ao N �mk 4 �' � r�' �"r���`',�,h�l J ,w � r,✓,p �f�$m,np� '�A r � ;,r.; +!„r „.�;�b�ro �` ix �Ht� h �,',�,U'- �,vu r, �.� ,.�I �� �� r�k.,�"'M`�'� 'P m1�,:.`?'H✓ Ait�1 ,v.7��r� pr v.%:. � s� � l',/ rS�)jt ��`�4 ii9, �l✓w�Pfrl"4��� J/f� P%tf ""J'"i ,a��,�hli ,� Y r�d�h.,�,,�1, ���M r��� � �d�,�'�,,.h�"�I�e��%�a,�������' ,.dr"f,�1 i h;.V� 4��' �bp,n �j'�y b✓n l,,m<�way i �, �d�,;,;� �,a�ra dr^����+� F�'r5,y✓r" � ��� M� J+ h �� . �irn �r 4 *a ��i,� �D' �� t� a~ d'>, yr���� pz,Y� ,�'�, ;w"! s,'� � �" �� �` M'�.��1��rwywE7�j +,�i�` �1•����,Y'r�ry;'%' r m�, c,r ,tle r,���;�1, �'� ��� �i ,ih; 9N+� "� b'' ,r��;;.� �u�fir,r� rF�ufw��� -.'� kxm•`��i�' ft�l 1/ ��'�r�rh " ,��; rr �l� ii �?.1��,-��, J�����,u���, �r,'�,N�.e�'u ,� ,,, ^�vr�,�r'„ ������ g ,MJ', The North Richland Hills Parks & Recreation Facilities Development Corporation Capital Improvement Program is funded through a voter approved half-cent sales tax authorized to fund the development of parks and recreational facilities for the community. The Corporation was established following voter approval in January 1992. Since its inception in 1992,many accomplishments have been achieved. 902 acres of park land have been acquired, offering the following parks and recreational services to our citizens: • 20 miles of multi-use trails creating a complete network of trails throughout the City • 7 community parks • 13 neighborhood parks • 9 linear parks • Richland Tennis Center • NRH20 Family Water Park • Tipps Canine Hollow Dog Park • Davis Emerald Pocket Park • Stormy Plaza • NRH Senior Center • Common Ground NRH Community Garden The 7-member Board of Directors is appointed by City Council and comprised of 4 City Council members and 3 citizen members. 140 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 11 COMPUTATION OF LEGAL DEBT MARGIN Last Ten Fiscal Years Total Net Debt Estimated Applicable to the Fiscal Net Taxable Total Debt Legal Debt Limit as a Percentage Year Value Debt Limit Service Margin of the Debt Limit 2011 $ 3,602,317,712 $54,034,766 $9,263,791 $44,770,975 17.14% 2012 3,618,184,021 54,272,760 7,567,382 46,705,378 13.94% 2013 3,732,731,760 55,990,976 8,768,411 47,222,565 15.66% 2014 3,841,064,449 57,615,967 9,565,203 48,050,764 16.60% 2015 4,056,028,230 60,840,423 11,196,142 49,644,281 18.40% 2016 4,150,187,927 62,252,819 12,709,626 49,543,193 20.42% 2017 4,599,695,190 68,995,428 11,668,135 57,327,293 16.91% 2018 5,163,558,808 77,453,382 16,751,884 60,701,498 21.63% 2019 5,650,605,159 84,759,077 16,849,964 67,909,113 19.88% 2020 6,187,263,435 92,808,952 16,435,242 76,373,710 17.71% 141 North Richland Hills,TX 2020 CAFR N ti ti O h ct cn cn M \O V) V) vi 4.1 y M O M N O M vp v) O M O r-i r- Cl Cl O l� � ' N '� N oc M O oc 00 C\ r- CQ A N � O O O O O O O O O O c O O O O O O O O O O O + c V C C F+ c V N `n N vUi N py : � O c\ c\ M ,O v� o6 N O 'C oc o N Vn OC� m N O V) O� N cn n O cn Ct ct a �n �C �C �C �C N O 'C ct t u A a W U� W 2N M M Moc Q� r- V'� r- r- U U V CC Q1 r-i M \O o O M C\ ct U N � ct ct O cn 4a ct ct cn cn O N `�+� Cd — C� 3� v q h TO N N N N N N N N N N U O Z U \ / ¢ % % \ u \ 6 6 a e m m m m m m e � ƒ Q � / m m �n M e o » o m & t \ g 7 - - - - - - - - - - 7© o \ t W ƒ � ® � y y y y y y y y y . cn y G u ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ u \ U / a a 2 % 2 2 2 2 0 2 2 2 7 ' u \ r- - 7 / 9 / Q ( G G M M M M M M M % U / o m OC o k \ J 7 r- U J / % / % % %04 ( � � 2 ¢ \ � t w u F 7t 7t7t m » e k \ g ¢ $ \ 7 7 7 % / / / / % % 2 \ ct ¥ f & f 5 u § cn k \ \ 3 ct � 7 \ \ ? (cn D @ % m � a U § § o J ; 1 , 4 ci v t J � r '��, I '1yI III iiii�°�uuuuuuuuuuuuuuuuuuu"uVVV "'"'' The annual NRH Holiday Magic Christmas Tree Lighting & Family Festival is held each December with activities including visits from Santa and Mrs. Claus, children's activities, craft vendors, performances on the community stage, and a holiday-themed firework show. 144 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 14 PRINCIPAL EMPLOYERS Current Year and Nine Years Ago Year ended September 30, 2020 Percentage of Total City Employer Employees s Rank Employment Santander Consumer USA,Inc. 1,500 I 3.92% Wal-Mart Supercenters 784 2 2.04% Birdville ISD1 753 3 1.97% Medical City North Hills 615 4 1.61% City of North Richland Hills 539 5 1.41% Tarrant County College -NE Campus 491 6 1.28% Health Markets HQ 452 7 1.18% Stericycle 400 8 1.04% Tyson Prepared Foods 380 9 0.99% XPO Logistics 260 10 0.68% 6,174 16.12% Year ended September 30, 2011 Percentage of Total City Employer Employees s Rank Employment Birdville ISD1 1,160 1 3.38% Santander Consumer USA,Inc. 1,100 2 3.20% Wal-Mart Supercenters 872 3 2.54% North Hills Hospital 786 4 2.29% Health Markets 650 5 1.89% City of North Richland Hills 506 6 1.47% Tarrant County College -NE Campus 455 7 1.33% ATI Career Training Center 419 8 1.22% Tyson Prepared Foods 398 9 1.16% Con-Way Freight,Inc. 293 10 0.85% 6,639 19.33% Number denotes employees working in schools in the City of North Richland Hills. Split with Hurst. 3Actual number of employees employed at time of reporting. * Source: City records 145 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 15 FULL-TIME EQUIVALENT CITY GOVERNMENT Page 1 of 2 EMPLOYEES BYFUNCTION/PROGRAM Last Ten Fiscal Years Function 2020 2019 2018 2017 2016 General government Administration 7.00 7.00 7.00 6.00 5.00 Public information 3.50 3.00 3.00 3.00 4.00 Judicial 15.00 15.00 15.00 15.00 15.00 Finance 22.50 22.50 22.50 22.00 23.00 Nondepartmental 1.00 1.00 1.00 1.00 1.00 Human resources 1.00 1.00 1.00 1.00 1.00 Planning and inspections 12.30 12.30 12.30 12.30 10.30 Neighborhood services 21.78 21.78 21.78 19.73 19.73 Budget and research 3.00 3.00 3.00 3.00 3.00 Public relations 3.50 3.50 3.50 3.50 3.50 Total general government 90.58 90.08 90.08 86.53 85.53 Public safety Police 200.86 200.86 195.86 203.13 193.88 Fire 100.00 100.00 94.00 94.00 94.00 Total public safety 300.86 300.86 289.86 297.13 287.88 Culture and recreation Parks and recreation 149.87 150.24 148.25 161.95 163.48 Library 27.53 27.74 27.74 27.53 28.03 Economic development 3.00 3.00 3.00 3.00 3.00 Total culture and recreation 180.40 180.98 178.99 192.48 194.51 Public works 79.70 79.70 79.70 69.43 79.18 Internal services Building services 17.25 16.38 13.88 13.63 15.63 Equipment services 12.00 12.00 13.00 13.00 13.00 Self-insurance 5.00 5.00 5.00 5.00 5.00 Information services 12.00 12.00 12.00 12.00 12.00 Total internal services 46.25 45.38 43.88 43.63 45.63 Total full-time a quiv ale nts 697.79 697.00 682.51 689.20 692.73 Source:City operating budget i Consolidated services with Haltom City,City of Richland Hills and City of Watauga for Communication and Detention Centers. 2 Increase due to new staff members for the Recreations Center. 146 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 15 FULL-TIME EQUIVALENT CITY GOVERNMENT Page 2 of 2 EMPLOYEES BYFUNCTION/PROGRAM Last Ten Fiscal Years Function 2015 2014 2013 2012 2011 General government Administration 5.00 4.70 4.70 4.70 4.70 Public information 4.00 4.00 4.00 4.00 4.00 Judicial 15.00 15.00 15.00 15.00 15.00 Finance 23.00 23.00 22.00 23.00 23.00 Nondepartmental 1.00 1.00 1.00 1.00 1.00 Human resources 1.00 1.00 1.00 1.00 1.00 Planning and inspections 10.30 10.30 10.30 8.30 8.30 Neighborhood services 19.73 18.75 18.75 18.75 18.75 Budget and research 3.00 3.00 3.00 3.00 3.00 Public relations 3.50 3.75 3.75 3.75 3.75 Total general government 85.53 84.50 83.50 82.50 82.50 Public safety Police 191.88 189.88 187.88 186.88 1 165.20 Fire 91.00 91.00 91.00 90.00 88.00 Total public safety 282.88 280.88 278.88 276.88 253.20 Culture and recreation Parks and recreation 162.10 162.70 160.25 2 145.55 121.53 Library 27.11 27.11 27.11 27.11 28.58 Economic development 3.00 3.00 4.00 3.00 3.00 Total culture and recreation 192.21 192.81 191.36 175.66 153.11 Public works 78.18 78.18 79.68 77.68 77.68 Internal services Building services 15.63 15.73 15.23 16.23 16.23 Equipment services 13.00 13.00 13.00 13.00 13.00 Self-insurance 5.00 5.10 5.10 5.10 5.10 Information services 12.00 12.00 12.00 11.00 11.00 Total internal services 45.63 45.83 45.33 45.33 45.33 Total full-time equivalents 684.43 682.20 678.75 658.05 611.82 Source:City operating budget i Consolidated services with Haltom City,City of Richland Hills and City of Watauga for Communication and Detention Centers. 2 Increase due to new staff members for the Recreations Center. 147 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 16 OPERATING INDICATORS BYFUNCTION/PROGRAM Page 1 of 2 Last Ten Fiscal Years Function 2020 2019 2018 2017 2016 General Goveimment Planning and inspections Construction Commercial units 27 29 21 31 20 Commercial value $15,022,201 $49,609,337 $67,800,454 $53,156,352 $13,603,082 Residentialunits 253 211 234 233 238 Residential value $80,289,238 $70,298,392 $80,589,505 $81,180,734 $75,615,139 Public safety Police Law violations 1 1,931 2,333 2,697 2,772 2,595 Part one offenses 1,393 1,655 1,830 1,662 1,560 Traffic violations 17,245 17,953 7,721 18,404 17,566 Calls for service 40,070 39,448 iz 123,112 120,098 111,984 Case clearance% 46% 54% 47% 52% 23% Fire Total responses 8,025 8,234 8,354 8,205 7,932 Fire responses 2,494 2,549 2,691 2,567 2,402 EMS responses 5,531 5,685 5,663 5,638 5,530 %responses<5 minutes(4) - 67% 66% 56% 64% %responses<4 minutes(4) 55% - - - - %responses<8 minutes(4) 94% - - - - Total inspections 1,711 2,958 3,201 2,549 3,143 11 Culture and recreation Parks and recreation Water park admissions 12,501 185,971 184,064 202,515 221,101 Goff rounds played 18,961 46,915 42,953 49,147 47,873 Library Number of volumes 146,928 162,460 164,482 179,303 174,156 Annual circulation 576,827 728,605 778,166 764,520 814,070 Annual loans per capita 8.07 10.72 11.18 10.96 11.76 Public Works Water Avg daily consumption 2 1,201,993 1,101,439 1,247,915 1,153,565 1,160,247 Peak daily consumption 2 2,649,332 2,345,187 2,614,572 2,096,524 2,614,973 Streets Street overlay-nines 7 4 7 6 4 Concrete pavement repair-sq.ft. 7,810 4,324 5,166 13,921 14,052 Pothole repair-sq.ft. 4,522 8,521 4,800 3,018 4,767 Street cut-sq.ft. 79,110 68,430 93,310 147,676 162,607 Sign fabrication 684 1,158 1,599 1,332 1,215 Source: City Records i Excludes traffic violations. 2 Cubic feet. 3 Remodels included in error. 4 New records system implemented for Fire. 5 Reported from the National Incident-Based Reporting System annual report. 6 Decline in response time is due to in-town traffic increasing because of the Hwy 820 expansion causing a longer drive time. 7 Reinspections are down due to corrected violations. 8 Inspection numbers unavailable for the year due to changes in the computer record management system and procedures. 9 Conversion to new computer record management system incomplete therefore Company Inspections are unavailable. io Decrease due to the installation of the Fibre Crete this year. 11 Increase in inspections is due to it being the first year that the record keeping has been fully migrated/implemented/online and pushed out to the companies 12 Decreased due to an inaccurate reflection in previous years. 148 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 16 OPERATING INDICATORS BYFUNCTION/PROGRAM Page 2 of 2 Last Ten Fiscal Years Function 2015 2014 2013 2012 2011 General Goveimment Planning and inspections Construction Commercial units 65 35 25 91 3 24 Commercial value $11,481,833 $14,309,733 $15,498,935 $ 7,533,480 3 $ 3,489,824 Residentialunits 122 321 189 168 122 Residential value $36,838,614 $27,754,692 $46,472,244 $42,138,527 $ 27,218,868 Public safety Police Law violations 1 3,144 3,014 3,215 3,463 3,574 5 Part one offenses 1,868 1,644 1,960 1,791 2,075 5 Traffic violations 21,305 17,052 22,215 22,155 20,733 Calls for service 112,313 107,393 114,269 115,644 137,243 Case clearance% 28% 23% 58% 26% 42% Fire Total responses 7,475 7,276 7,189 7,064 6,850 Fire responses 2,221 2,412 2,275 2,235 1,762 EMS responses 5,254 4,864 4,914 4,829 5,088 %responses<5 minutes(4) 74% 70% 58% 70% 51%6 %responses<4ninutes(4) - - - - - %responses<8 minutes(4) - - - - Total inspections 1,232 1,201 9 768 9 - 8 2,005 7 Culture and recreation Parks and recreation Water park admissions 227,525 219,077 242,490 272,336 270,845 Goff rounds played 43,250 45,339 48,229 50,524 51,264 Library Number of volumes 214,867 202,103 204,302 206,840 200,982 Annual circulation 939,022 854,452 771,994 947,883 840,667 Annual loans per capita 14.16 13.01 12.17 14.95 13.26 Public Works Water Avg daily consumption 2 1,165,254 1,219,696 1,278,326 1,306,524 1,521,220 Peak daily consumption 2 2,582,620 2,441,043 2,624,198 2,938,102 3,091,043 Streets Street overlay-nines 4 4 1 4 6 Concrete pavement repair-sq.ft. 3,113 6,258 6,488 5,322 9,372 Pothole repair-sq.ft. 4,467 2,677 2,152 4,577 3,974 Street cut-sq.ft. 153,559 163,910 10 86,160 10 176,844 162,577 Sign fabrication 1,179 850 973 852 935 Source: City Records 1 Excludes traffic violations. 2 Cubic feet. 3 Remodels included in error. 4 New records system implemented for Fire. 5 Reported from the National Incident-Based Reporting System annual report. 6 Decline in response time is due to in-town traffic increasing because of the Hwy 820 expansion causing a longer drive time. 7 Reinspections are down due to corrected violations. 8 Inspection numbers unavailable for the year due to changes in the computer record management system and procedures. 9 Conversion to new computer record management system incomplete therefore Company Inspections are unavailable. 10 Decrease due to the installation of the Fibre Crete this year. 11 Increase in inspections is due to it being the first year that the record keeping has been fully migrated/implemented/online and pushed out to the companies 12 Decreased due to an inaccurate reflection in previous years. 149 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 17 CAPITAL ASSETS STATISTICS BYFUNCTION/PROGRAM Page 1 of 2 Last Ten Fiscal Years Function 2020 2019 2018 2017 2016 Public safety Police Stations 1 1 1 1 1 Fire Stations 5 5 5 5 5 Fire hydrants 2,318 2,304 2,279 2,256 2,251 Culture and recreation Parks and recreation Parks and recreation 39 39 39 39 34 Park acreage 899 899 899 899 735 Playgrounds 22 22 22 22 22 Trails - miles 31 31 31 31 31 Golf courses 1 1 1 1 1 Recreations centers 1 1 1 1 1 Athletic fields 53 53 53 53 53 Senior centers 1 1 1 1 1 Library Libraries 1 1 1 1 1 Public Works Water mains - miles 374 372 372 371 370 Water connections 22,990 22,707 22,492 22,233 21,988 Wastewater lines - miles 257 255 257 256 255 Wastewater connections 21,237 20,958 20,711 20,430 20,212 Storm drain- miles 141 140 139 139 139 Streets - miles 247 246 244 241 241 Street lights 2,980 2,977 2,948 2,550 2,545 Source: City Records i New Senior Center in NRH Centre combined/closed Dan Echols and Bursey Road Senior Citizens Centers 2 Department's system inventory report was calculated by outside source. 150 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS Table 17 CAPITAL ASSETS STATISTICS BYFUNCTION/PROGRAM Page 2 of 2 Last Ten Fiscal Years Function 2015 2014 2013 2012 2011 Public safety Police Stations 1 1 1 1 1 Fire Stations 4 4 4 4 4 Fire hydrants 2,219 2,202 2,162 2,127 2,125 Culture and recreation Parks and recreation Parks and recreation 33 33 33 33 33 Park acreage 734 734 709 709 709 Playgrounds 22 22 20 20 20 Trails - miles 30 30 21 21 21 Golf courses 1 1 1 1 1 Recreations centers 1 1 1 1 1 Athletic fields 53 53 53 53 53 Senior centers 1 1 1 1 i 2 Library Libraries 1 1 1 1 1 Public Works Water mains - miles 367 356 355 351 346 Water connections 21,329 21,141 20,936 20,792 20,522 Wastewater lines - miles 252 2 293 292 290 288 Wastewater connections 19,919 19,761 19,603 19,469 19,240 Storm drain- miles 139 139 139 139 139 Streets - miles 238 238 238 238 238 Street lights 2,545 2,545 2,545 2,545 2,540 Source: City Records i New Senior Center in NRH Centre combined/closed Dan Echols and Bursey Road Senior Citizens Centers 2 Department's system inventory report was calculated by outside source. 151 North Richland Hills,TX 2020 CAFR Vq a ? A The North Richland Hills City Hall opened in May 2016. The 182,000 square foot for the new facility includes about 89,000 square feet for Public Safety operations, about 78,500 square feet for City Hall and about 14,500 square feet for Municipal Court. Prior to the opening of City Hall, city services were housed in six buildings on three different campuses. 152 North Richland Hills,TX 2020 CAFR Glossary The Smithfield TEXRail station is one of two stations in North Richland Hills offering commuter-rail service to Fort Worth and the Dallas-Fort Worth International Airport. flop W Alamo Drafthouse Cinema opened in April 2019 providing the area with entertainment options galore. 153 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY ACCOUNT A term used to identify an individual asset, liability, expenditure control,revenue control, encumbrance control,or fund balance. ACCOUNT PAYABLE A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNT RECEIVABLE An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government. ACCOUNTING SYSTEM The total set of records and procedures, which are used to record, classify, and report information on the financial status and operations of an entity. ACCRUAL ACCOUNTING A basis of accounting in which revenues are recognized in the period in which they are earned and become measurable, and expenses are recognized in the period incurred instead of when cash is actually received or spent. ACCRUED INTEREST Interest that has been earned and recorded,but has not been received. ACTUARIAL. Relating to actuaries or their work of compiling and analyzing statistical calculations to assess risk in insurance, finance and other industries and professions. AD VALOREM TAX(See also PROPERTY TAX.) A tax based on value of land and improvements (property tax). AGENDA A formal listing of items to be discussed during a public meeting.Agendas for public meetings are posted 72 hours in advance,in compliance with the Open Meetings Act. AMORTIZE To amortize is to allocate the cost of an intangible asset over a period of time. ANNUITY A fixed sum of money paid to someone each year, typically for the rest of their life. APPROPRIATION An authorization granted by City Council to make expenditures and to incur obligations for specific purpose. Usually limited in amount and as to the time when it may be expended. ARBITRAGE With respect to the issuance of municipal securities, arbitrage usually refers to the difference between the interest paid on tax-exempt bonds and the interest earned by investing the proceeds of the bonds in higher-yielding taxable securities. Federal income tax laws generally restrict the ability to earn positive arbitrage in connection with tax- exempt bonds. 154 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) ASSESSED VALUATION A valuation set upon real estate or other property by government as a basis for levying taxes. (See also TAXABLE VALUE.) ASSETS Property owned by a government,which has economic value, especially which could be converted to cash. AUDIT In general, an official inspection of an individual's or organization's accounts by an independent body. The City's charter requires an annual audit of the books of accounts, financial records, and transactions of all administrative departments of the City by an independent certified public accountant. In practice, that means the City contracts with an independent certified public accountant to audit the year-end financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City and the related notes to the financial statements,which collectively comprise the City's basic financial statements. AUDIT COMMITTEE The Audit Committee is responsible for recommending to the City Council an independent auditor as needed, reviewing the audit of the City's basic financial statements prior to submission to the City Council, and assisting the independent auditor and city staff with the presentation of the audit to the City Council. The Audit Committee is composed of members of the City Council as well as the City Manager and the City's Director of Finance. BALANCESHEET A statement purporting to present the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. BALANCED BUDGET A budget in which total recurring expenditures for any fiscal year do not exceed total recurring revenues for that same fiscal year. BASE LEVEL SERVICES Funding required to meet current service level. BASIC FINANCIAL. STATEMENTS The basic financial statements are comprised of the financial statements of the governmental activities,the business- type activities, each major fund, and the aggregate remaining fund information of the City and the related notes to the financial statements, and are subjected to an annual audit by an independent certified public accountant. The basic financial statements are included in the Comprehensive Annual Financial Report along with unaudited information, including introductory information, required supplementary information, other supplementary information, and statistical information. BASIS OF ACCOUNTING Refers to when revenues and expenditures are recognized in the accounts and reported in the financial records of the City, regardless of the measurement focus applied. Accounting records for governmental fund types are maintained on a modified accrual basis of accounting,with revenue being recorded when available and measurable, and expenditures being recorded when services or goods are received and the liabilities are incurred. 155 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) BASIS OF BUDGETING (See also MODIFIED ACCRUAL.) The City's basis for budgeting is the modified accrual basis for governmental funds, including the General Fund. Budgeting for proprietary funds, which includes the Enterprise Fund, is essentially on the full accrual basis. Encumbrances are recognized by both governmental and proprietary funds since encumbrances represent a commitment of funding for goods and services. BEGINNING BALANCE The residual non-restricted funds brought forward from the previous fiscal year(ending balance). BONDS Debt instruments that require repayment of a specified principal amount on a certain date (maturity date), together with interest at a stated rate or formula for determining the interest rate. BOND DEBT That portion of indebtedness represented by outstanding bonds. BOND PROPOSITION A recommendation to issue debt and a proposal as to the best use of the bonds. BUDGET A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. The term is also sometime used to denote the officially approved expenditure ceiling under which a government and its departments operate. BUDGET AMENDMENT A revision of the adopted budget that, when approved, replaces the original provision and increases or decreases the budget appropriation. BUDGET CALENDAR The schedule of key dates that a government follows in preparation and adoption of the budget. BUDGET ENHANCEMENT A request to enhance current service level beyond current funding. BUDGET ORDINANCE Governmental action which appropriates revenues and fund balances for specified purposes, functions,or activities for a budget period. BUDGET PERIOD The period for which a budget is proposed or a budget ordinance is adopted. BUDGETARY CONTROL The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within limitations of available appropriation and available revenues. BUDGETED FUNDS Funds for which annual budgets are legally adopted, as opposed to non-budgeted funds for which annual budgets are not legally adopted. Budgeted funds are typically supported by tax revenues, charges for services, fees, fines, and/or penalties, while non-budgeted funds are typically supported by transfers from other funds, grant revenue, donations, or regulated fees such as municipal court fees. 156 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) BUSINESS-TYPE ACTIVITIES Business-type activities include any activity engaged in the primary purpose of making a profit. Business- type activities are financed in whole or in part by fees charged to external users for goods or services and are generally reported in Enterprise Funds. CAFR CAFR is an acronym for Comprehensive Annual Financial Report. (See also COMPREHENSIVE ANNUAL FINANCIAL REPORT.) CAPITAL IMPROVEMENT The addition of a permanent structural change or the restoration of some aspect of a property that will either enhance the property's overall value,increase its useful life or adapt it to new uses. CAPITAL IMPROVEMENT PLAN A comprehensive plan that projects the capital needs of a community. Generally, it is a cyclical process that estimates the needs for a set number of years. Capital Improvements Plans are essential for sound infrastructure and financial planning. CAPITAL ASSET An item costing more than $10,000 and having a useful life of more than four years. CAPITAL EXPENDITURE Also called a CAPITAL OUTLAY—An expenditure to acquire a capital asset. CAPITAL PROTECTS FUND Is used to account for the expenditures of resources accumulated from the sale of bonds and related interest earnings for capital improvement projects. CASH BASIS A method of accounting in which revenues and expenses are recognized and recorded when received, not necessarily when earned. CASH EQUIVALENTS Cash equivalents are investments securities that are for short-term investing, and they have high credit quality and are highly liquid. Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes, along with stocks and bonds. These securities have a low-risk, low-return profile and include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper and other money market instruments. CHART OF ACCOUNTS The classification system used by the City to organize the accounting for various funds. CHARTER A written instrument setting forth principles and laws of government within boundaries of the City. LM CIP is an acronym for Capital Improvement Plan. (See also CAPITAL IMPROVEMENT PLAN.) 157 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) CITY COUNCIL The legislative body that governs the City. CITY COUNCIL PRIORITIES A five-year planning horizon focusing on safety, infrastructure and facilities, residential and recreational, budget and finance, and commercial redevelopment. CITY MANAGER An appointed official who directs the administration of the City. ITIZE An inhabitant of the City. COMPREHENSIVE ANNUAL FINANCIAL REPORT Comprehensive Annual Financial Report(CAFR)is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board. COMPREHENSIVE PLAN A Comprehensive Plan is to anticipate and guide future development trends in a manner that will provide a community with a balance of land uses that promote a superior quality of life. CONSUMER PRICE INDEX The Consumer Price Index(CPI)is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. The CPI is calculated by the U.S. Bureau of Labor Statistics. CONTINGENCY Funds set aside in a reserve account for major expenditures or for emergencies. COUNTERPARTY A counterparty is the other party that participates in a financial transaction, and every transaction must have a counterparty for the transaction to go through. PI CPI is an acronym for Consumer Price Index. (See also CONSUMER PRICE INDEX.) CREDIT RISK Credit risk is the probable risk of loss resulting from a borrower's failure to repay a loan or meet contractual obligations. CURRENT ASSETS Cash and other assets expected to be converted to cash, sold,or consumed within in a year or in the operating cycle. 158 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) CURRENT FINANCIAL RESOURCES MEASUREMENT Current financial resources measurement focus is where the financial statements report the near-term (current) inflows, outflows, and balances of expendable financial resources. The current financial resources measurement focus is unique to accounting and financial reporting for state and local governments and is used solely for reporting the financial position and results of operation of governmental funds. CURRENT LIABILITIES Debt or other legal obligations arising out of transactions in the past which must be liquidated,renewed,or refunded within one year. CUSTODIAL CREDIT RISK In the case of deposits, this is the risk that the event of a bank failure, the City's deposits may not be returned to it. For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that in the position of an outside party. DEBT SERVICE The amount of money required for interest and principal payments on an outstanding debt in any given year. DEBT SERVICE FUND Also called a SINKING FUND - A fund established to account for the accumulation of resources for the payment of principal and interest on long term debt. DEBT RATE The City's property tax rate has two components, the general rate which generates property tax revenues used to fund operations and the debt rate which generates property tax revenues used to fund the repayment of debt. (See also PROPERTY TAX RATE) DEFERRED INFLOW OF RESOURCES Deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting period. DEFERRED OUTFLOW OF RESOURCES Deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting period. For example,prepaid items and deferred charges. DEFICIT The excess of expenditures over revenues during an accounting period;or in the case of Enterprise Funds,the excess of expense over income during an accounting period. DELINQUENT TAXES Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. DEPRECIATION A non-cash expense that reduces the value of an asset as a result of wear and tear, deterioration, action of the physical elements,inadequacy, or obsolescence. DIRECTOR OF FINANCE DEPARTMENT The officer of the City that has primary responsibility for managing the City's finances,including financial planning, management of financial risks,record-keeping, and financial reporting. 159 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) DISCOUNT RATE The interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. EFFECTIVE TAX RATE The tax rate required to generate the same amount of revenue as in the preceding year on the same properties. ENCLAVE A portion of territory within or surrounded by a larger territory. ECONOMIC RESOURCES Economic resources are the goods or services available to the City used to produce valuable consumer products. The classic economic resources include land, labor and capital. ECONOMIC RESOURCES MEASUREMENT FOCUS Economic resources measurement focus is where a set of financial statements reports all inflows, outflows, and balances affecting or reflecting an entity's net position. The economic resources measurement focus is used for proprietary and trust funds, as well as for government-wide financial reporting. ENCUMBRANCE Obligations in the form of purchase orders, contracts,or other commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or actual liability is set up, at which point they become expenditures. ENDING BALANCE The dollars remaining after current expenditures for operations and debt service are subtracted from the sum of the beginning fund balance and current resources. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances. ENTERPRISE FUND A fund established to account for operations which: (a)finance and operate in a manner similar to private business enterprises-where the intent of the governing body is that the costs(expenses,including depreciation)of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. EXPENDITURES Decreases in net financial resources. They include current operating expenses that require the current or future use of net current assets, debt service, and capital outlay. FEE Charges for services. FEM0 FEMA is an acronym for Federal Emergency Management Agency. FIDUCIARY A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. 160 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) FINANCIAL STATEMENTS Written records that convey the business activities and the financial performance of the City. FISCAL.FORECAST A management tool that presents estimated information based on past, current, and projected financial conditions. This will help identify future revenue and expenditure trends that may have an immediate or long-term influence on government policies, strategic goals, or community services. FISCAL YEAR A twelve-month period of time to which the annual budget applies, and at the end of which, the City determines its financial position and results of operation. The fiscal year for the City of North Richland Hills runs from October 1 to September 30 of the following year. FIXED ASSETS Assets of long-term character intended to continue to be held or used. Examples are land, buildings, and improvements such as machinery and equipment. FIXED COST Costs which do not change with increases or decreases in the amount of services provided, such as rent. FRANCHISE A special privilege granted by a government,permitting the continued use of public property, such as City streets, and usually involving the elements of monopoly and regulation. LU FTE is an acronym for Full-Time Equivalent. (See also FULL TIME EQUIVALENT.) FULL TIME EQUIVALENT A unit that indicates the workload of a single full-time worker. The concept is used to convert the hours worked by part-time employees into the hours worked by full-time employees. For example, someone who works a half-day would be 0.5 full time equivalents. The City budgets authorized employment positions using full time equivalents. For example, there might be a part-time library assistant position budgeted as 0.5 FTE, which would be the equivalent of one-half of a full-time employee. FUND A fiscal and accounting entity with a self-balancing set of accounts. A fund records cash and other financial resources, all related liabilities, residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE The balance of net financial resources that is spendable or available. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances. FUND BALANCE POLICY A policy requiring a minimum fund balance to be kept in reserve. Fund balances over the policy requirements may be appropriated in the budget. 161 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) FUND FINANCIAL STATEMENTS For governmental and proprietary funds, special and extraordinary items are reported separately at the bottom of the statement of revenues, expenditures and changes in fund balances or the statement of revenues, expenses and changes in net position,respectively. FUNDING SOURCE Specifically identified dollars allocated to meet budgeted requirements. FY(as in FY 2019) FY is an acronym for Fiscal Year. See FISCAL YEAR. GAAP GAAP is an acronym for Generally Accepted Accounting Principles. (See also GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.) GENERAL FIXED ASSETS Capital assets that are not assets of any particular fund, but of the government unit as a whole. Most often these assets arise from the expenditure of the financial resources of governmental funds(as opposed to proprietary funds). GENERAL FUND A fund established to account for all financial resources except those required to be accounted for in another fund. Examples of General Fund departments include Parks,Facilities and Recreation,Fire Department,Library,Finance and Municipal Court, Streets and Drainage, Development Services, and Police Department. GENERAL OBLIGATION BONDS (G.O.BONDS) Bonds secured by the full faith and credit of the issuer.General obligation bonds issued by local units of government are secured by a pledge of the issuer's ad valorem taxing power. They are usually issued to pay for general capital improvements such as parks and streets. GENERAL RATE The City's property tax rate has two components,the General Rate which generates property tax revenues used to fund operations and the Debt Rate which generates property tax revenues used to fund the repayment of debt. The General Rate is sometimes referred to as the Maintenance and Operations Rate,or M&O Rate.(See also PROPERTY TAX RATE.) GENERAL REVENUE Funds acquired through business and property taxation. Monies that may be utilized for any purposes as received at the state and local levels of government. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) The uniform minimum standards of, and guidelines to, financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompass the conventions,rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. GEOGRAPHIC INFORMATION SYSTEM A system is designed to capture, store,manipulate,analyze,manage,and present all types of spatial or geographical data allowing one to visualize,question,analyze,and interpret data to understand relationships,patterns,and trends. 162 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) GIS GIS is an acronym for Geographic Information System. (See also GEOGRAPHIC INFORMATION SYSTEM.) GOVERNEMENT-WIDE FINANCIAL STATEMENTS Government-wide financial statements report information about the government as a whole without displaying individual funds or fund types. GOVERNMENTAL ACCOUNTING The composite activity of analyzing, recording, summarizing, reporting and interpreting the financial transactions of government. GOVERNMENTAL ACCOUNTING STANDARD BOARD (GASB) The governing body that sets accounting standards specifically for governmental entities at the state and local level. GOVERNMENTAL. ACTIVITIES Governmental activities are general government activities and are financed primarily through taxes. Governmental activities generally are reported in governmental funds. All general capital assets and general long-term liabilities are part of governmental activities as well. Common examples of governmental activities include general administration,public safety, education, streets and roads, and health and sanitation. GOVERNMENTAL FINANCE OFFICERS ASSOCIATION (GFOA) Professional association of state/provincial and local finance officers in the United States and Canada dedicated to the sound management of government financial resources. GOVERNMENTAL.FUNDS Funds generally used to account for tax-supported activities. There are five different types of governmental funds: general funds, special revenue funds, debt service funds, capital projects funds, and permanent funds. GRANT A contribution by one government unit or funding source to another unit. The contribution is usually made to aid in a specified function(for example, education),but it is sometimes also for general purposes. HOME RULE CHARTER Texas cities operate under two different categories of local government: 1) General Law; and Home Rule. Texas law grants General Law cities limited specific authority. Cities under 5,000 in population are required to be General Law cities. Cities over 5,000 in population can adopt a Home Rule Charter which defines the structure, power, duties, and authority of the local government. Rather than looking to state statues to determine what they may do, as General Law cities must do, Home Rule cities look to their local charters to determine what they may do. A Home Rule city may generally take any action that is not prohibited by the Texas Constitution or statues as long as the authority is granted in the charter of the city.Home Rule is essentially the privilege of citizens at the grass roots level to manage their own affairs with minimal interference from the State. INCOME A term used in proprietary fund-type accounting to represent (1) revenues or (2) the excess of revenues over expenses. INFRASTRUCTURE Immovable fixed assets having value only to the governmental unit. Common examples of infrastructure include roads, sidewalks,bridges, and streetlights. INTERGOVERNMENTAL REVENUE Revenue received from another governmental unit for a specific purpose. 163 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) INTEREST RATE RISK Interest rate risk is the risk that arises for bond owners from fluctuating interest rates. How much interest rate risk a bond has depends on how sensitive its price is to interest rate changes in the market. The sensitivity depends on two things, the bond's time to maturity, and the coupon rate of the bond. INTERESTED PARTY People or organizations who may be affected by a situation. INTERNAL CONTROLS Processes designed to assure achievement of an organization's objectives in operational effectiveness and efficiency,reliable financial reporting, loss prevention, and compliance with laws,regulations, and policies. INVESTMENTS Securities and real estate held for production of revenue in the form of interest,dividend,rental, or lease payments. The term does not include fixed assets used in governmental operations. LEASE/PURCHASE A financing tool utilized to fund large capital outlays where the city may not have cash immediately available for purchase. This arrangement allows the city to use the item while payments are being made. LED LED is an acronym for Light Emitting Diode. (See also LIGHT EMITTING DIODE.) LETTER OF TRANSMITTAL A cover letter from the City's Director of Finance that accompanies the comprehensive annual financial report. LEVY To impose taxes or special assessments. The total of taxes or special assessments imposed by a governmental unit. LIABILITIES Debt or other legal obligations arising out of transactions in the past,which must be liquidated,renewed,or refunded at some future date. LIGHT EMITTING DIODE A two-lead semiconductor light source. Light emitting diodes (LEDs) emit light through the process of electroluminescence when suitable voltage is applied. LEDs have many advantages over traditional incandescent light sources including lower energy consumption, longer lifetime,improved physical robustness, smaller size, and faster switching. LEDs are now used in applications as diverse as aviation lighting, automotive headlamps, advertising, general lighting, traffic signals, street lighting, and camera flashes. LOCAL GOVERNMENT INVESTMENT POOL A local government investment pool (LGIP), is a state or local government pool offered to public entities for the investment of public funds. These pools are important investments tools, offering safety with a competitive yield. LONG-TERM DEBT Debt with a maturity of more than one year. LONG-TERM LIABILITIES Long-term liabilities are financial obligations of a company that become due more than one year. 164 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) LINE ITEM BUDGET A budget format in which departmental outlays are grouped according to the items that will be purchased with one item or group of items on each line. MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) The portion of the City's Comprehensive Annual Report in which management addresses the company's performance over the previous twelve months. MAYOR The elected head of the City. MODIFIED ACCRUAL City of North Richland Hills's governmental funds are budgeted using the modified accrual basis, with revenues recognized when they become measurable. Revenue is "measurable" when the amount of the transaction can be reasonably determined.Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred and is expected to be liquidated within 60 days. MUNICIPAL FACILITIES City owned structures, mechanicals, and building systems NET PENSION LIABILITY The net pension liability is the difference between the total pension liability (the present value of projected benefit payments to employees based on their past service) and the assets (mostly investments reported at fair value) set aside to pay current employees,retirees, and beneficiaries NET POSITION Net position is the residual of all other elements presented in a statement of financial position. It is the difference between(a) assets and deferred outflows of resources and(b) liabilities and deferred inflows of resources. NON-BUDGETED FUNDS Funds for which an annual budget are not legally adopted, as opposed to budgeted funds for which annual budgets are legally adopted.Budgeted funds are typically supported by tax revenues,charges for services,fees,fines,and/or penalties,while non-budgeted funds are typically supported by transfers from other funds,grant revenue,donations, or regulated fees such as municipal court fees. The resources supporting non-budgeted funds are typically either transfers that were budged as expenditures at a budgeted fund or revenues that are restricted by third parties such as grant revenue, donations,or regulated fees. NON-RECURRING REVENUE One-time windfall revenue that is budgeted only for one fiscal year. OPEB OPEB is an acronym for Other Post-Employment Benefits. (See also OTHER POSTEMPLOYMENT BENEFITS.) OPERATING BUDGET Plans of current expenditures and the proposed means of financing them. 165 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) OPERATING REVENUE Operating revenue is revenue generated from the City's business activities. ORDINANCE A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision,it has the full force and effect of law within the boundaries of the City. OTHER POST-EMPLOYMENT BENEFITS (OPEBS) Other postemployment benefits (or OPEBs) is a term used in the United States to describe the benefits that an employee begins to receive at the start of their retirement. These benefits do not include the pension paid to the retired employee. OVERLAPPING DEBT Overlapping debt refers to the financial obligations of one political jurisdiction that also falls partly on a nearby jurisdiction. Overlapping debt is common in most states because states are divided into numerous jurisdictions for different tax purposes, such as building a new public school and building a new road. PENSION A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life. PLANNING AND ZONING COMMISSION An appointed seven-member board that makes recommendations to City Council regarding the physical development of the City,including the Comprehensive Plan that serves as the basis for the City's zoning regulations. It also reviews and approves applications for subdivision plats and replats. PROJECTION A forecast of future trends in the operation of financial activities done through the remainder of the fiscal year to gain a better picture of the City's finances. PROPERTY TAX An annual or semi-annual tax paid to one or more governmental jurisdictions based on the real and personal property's assessed valuation and the tax rate, done in compliance with the State Property Tax Code. PROPERTY TAX RATE The rate applied to the taxable value of property to determine the property taxes due. The City's property tax rate has two components, the general tax rate which generates property tax revenues used to fund operations and the debt tax rate which generates property tax revenues used to fund the repayment of debt. Property tax rates are commonly presented as the amount of tax levied for each$100 of assessed valuation. PROPRIETARY FUNDS Funds generally used to account for a government's ongoing organizations and activities that are similar to businesses found in the private sector. These funds are considered self-supporting in that the services rendered by them are generally financed through user charges or on a cost reimbursement basis. There are two types of proprietary funds: enterprise funds (used to account for any activity for which a fee is charged to external users for goods or services); and internal service funds (used to account for the provision of goods or services by one department to other departments of a governmental unit). (See ENTERPRISE FUND.) 166 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) PUBLIC HEARING A public hearing may be a formal meeting for receiving testimony from the public at large on a local issue, or proposed government action. Testimony from both sides of an issue is usually recorded for public record, and a report summarizing the key points is generated. RATINGS Designations used by credit rating agencies to give relative indications of credit quality. RF,FF,RF,NDITM The principle or practice of referring measures proposed or passed by a legislative body, head of state, etc., to the vote of the electorate for approval or rejection(plural referenda). REFUNDING BONDS Bonds issued to retire bonds already outstanding. REPORT OF INDEPENDENT AUDITORS The report of independent auditors,published in the comprehensive annual financial report, opines on whether the City's basic financial statements comply with generally accepted accounting principles. REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information(RSI)is information that a designated accounting standard-setter(e.g.,FASB, GASB)requires to accompany the basic financial statements. RESERVE An account used to indicate that a portion of fund equity is legally restricted for a specific purpose or not available for appropriation and subsequent spending. RESOLUTION A special or temporary order of a legislative body requiring less legal formality than an ordinance or statute. RESTRICTED NET POSITION The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. RESTRICTED RESOURCES Restricted resources refer to a reserve of money that can only be used for specific projects or purposes. UNRESTRICTED RESOURCES Unrestricted resources refer to a reserve of money that can be used as the City sees fit. REVENUE Revenue is (1) an increase in a governmental fund's net current assets from other than expenditure refunds and residual equity or (2) an increase in a proprietary fund's net total assets from other than expense refunds, capital contributions, and residual equity transfers. ROLLBACK RATE The highest tax rate an entity may adopt without being subject to a rollback election. 167 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) SCADA SCADA is an acronym for Supervisory Control and Data Acquisition. (See also SUPERVISORY CONTROL AND DATA ACQUISITION.) DBF SCBP is an acronym for Supplemental Death Benefits Fund. (See also SUPPLEMENTAL DEATH BENEFITS FUND.) SERVICE PLANS Each department within the City has a three-year plan, outlining their strategic priorities for the City. SPECIAL REVENUE FUND A Fund used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects)that are legally restricted to expenditure for specified purposes. STEWARDSHIP The job of supervising or taking care of something, such as an organization or property. STRUCTURAL BALANCE The state at which current revenue sufficiently supports current expenditures. SUPERVISORY CONTROL AND DATA ACQUISITION An industrial computer system that monitors and controls a process. Supervisory control and data acquisition systems (also known as SCADA systems) are used to monitor and control a plant or equipment in industries such as telecommunications,water and waste control, energy,oil and gas refining and transportation. A SCADA system gathers information, such as where a leak on a pipeline has occurred and transfers the information back to a central site. SCADA systems frequently are used to manage processing systems that include geographically disbursed components. SUPPLEMENTAL.DEATH BENEFITS FUND (SDBF) A cost sharing multiple-employer defined benefit group-term life insurance plan operating by the Texas Municipal Retirement System. TAX LEVY The total amount to be raised by general property taxes for intentions specified in the Tax Levy Ordinance. TAX RATE The amount of tax levied for each $100 of assessed valuation. TAXABLE VALUE A valuation to which the property tax rate is applied to calculate property taxes. The Taxable value of property is generally equal to the assessed valuation less any qualifying exemptions (such as a homestead exemption). TAXES Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments, or charges for services rendered, such as sewer service. TBD TBD is an acronym for To Be Determined. 168 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS GLOSSARY(continued) TEXAS MUNICIPAL RETIREMENT SYSTEM (TMRS) TMRS is a statewide retirement system that provides retirement, disability, and death benefits for employees of participating Texas cities. TMR An acronym for Texas Municipal Retirement System. (See also TEXAS MUNICIPAL RETIREMENT SYSTEM.) TORT A wrongful act or an infringement of a right(other than under contract) leading to civil legal liability. TRANSFERS Authorized exchanges of cash or other resources between funds. UNASSIGNED FUND BALANCE In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. UNRESTRICTED NET POSITION The unrestricted component of net position is the net amount of the assets,deferred outflows of resources,liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. YIELD The rate earned on an investment based on the price paid for the investment, the interest earned during the period held, and the selling price or redemption value of the investment. 169 North Richland Hills,TX 2020 CAFR 170 North Richland Hills,TX 2020 CAFR CITY OF NORTH RICHLAND HILLS, TEXAS FEDERAL AND STATE SINGLE AUDIT REPORT For the Fiscal Year Ended September 30, 2020 CITY OF NORTH RICHLAND HILLS, TEXAS TABLE OF CONTENTS Page Report of Independent Auditors on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Report of Independent Auditors on Compliance for Each Major Federal and State Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditure of Federal and State Awards Required by the Uniform Guidance and the State of Texas Uniform Grant Management Standards 3 Schedule of Findings and Questioned Costs 7 Schedule of Expenditures of Federal and State Awards 9 Notes to Schedule of Expenditures of Federal and State Awards 11 Summary Schedule of Prior Audit Findings 12 Corrective Action Plan 13 640 I dylrrr Sl ivel.: 11� Wol l l,, I exas ran N 02 vv � I "Illll u � l i�ii°i�i i�iio� / �9 4)N 00 Nal l vVI-i flcrypel-1-i.C.c'rrrr REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the Honorable Mayor and Members of the City Council City of North Richland Hills, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of North Richland Hills, Texas (the "City"), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 3, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. gw�v',p P,irrie n"ibe*r of 1 North Richland Hills,TX 2020 SA Report �o r�°rlli ii Niyu�n,, Iri4_crrrJaHr mill To the Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Fort Worth, Texas March 3, 2021 2 North Richland Hills,TX 2020 SA Report 640 I dylrrr Sl ivel.: 11� Wol l l,, I exas ran N 02 vv � I "Illll u � l i�ii°i�i i�iio� / �9 4)N 00 Nal l vVI-i flcrypel-1-i.C.c'rrrr REPORT OF INDEPENDENT AUDITORS ON COMPLIANCE FOR EACH MAJOR FEDERAL AND STATE PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS REQUIRED BY THE UNIFORM GUIDANCE AND THE STATE OF TEXAS UNIFORM GRANT MANAGEMENT STANDARDS To the Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Report on Compliance for Each Major Federal and State Program We have audited the City of North Richland Hills, Texas' (the "City") compliance with the types of requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement and the State of Texas Uniform Grant Management Standards that could have a direct and material effect on each of the City's major federal and state programs for the year ended September 30, 2020. The City's major federal and state programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal and state statutes, regulations, and terms and conditions of its federal and state awards applicable to its federal and state programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal and state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the State of Texas Uniform Grant Management Standards. Those standards and the Uniform Guidance and the State of Texas Uniform Grant Management Standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal and state program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal and state program. However, our audit does not provide a legal determination of the City's compliance. gw�vq,,, P,irrie n"ibe*r of 3 North Richland Hills,TX 2020 SA Report �o r�°rlli ii Niyu�n,, Iri4_crrrJaHr mill To the Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Opinion on Each Major Federal and State Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal and state programs for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal and state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal and state program and to test and report on internal control over compliance in accordance with the Uniform Guidance and the State of Texas Uniform Grant Management Standards,but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal and state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal and state program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal and state program that is less severe than a material weakness in internal control over compliance,yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and the State of Texas Uniform Grant Management Standards. Accordingly, this report is not suitable for any other purpose. 4 North Richland Hills,TX 2020 SA Report To the Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Report on Schedule of Expenditures of Federal and State Awards Required by the Uniform Guidance and the State of Texas Uniform Grant Management Standards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2020, and the related notes to the financial statements,which collectively comprise the City's basic financial statements. We issued our report thereon dated March 3, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal and state awards is presented for purposes of additional analysis as required by the Uniform Guidance and the State of Texas Uniform Grant Management Standards and is not a required part of basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal and state awards is fairly stated in all material respects in relation to the basic financial statements as a whole. el j7_1 Fort Worth, Texas March 3, 2021 5 North Richland Hills,TX 2020 SA Report 6 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30,2020 L Summary of Auditors' Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Material weakness (es)identified? No Significant deficiency (ies)identified that are not considered to be material weaknesses? None reported Noncompliance material to the financial statements noted? No Federal Awards Internal controls over major programs: Material weakness (es)identified? No Significant deficiency (ies)identified that are not considered to be material weaknesses? None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 2 CFR 200.516(a)? None Identification of major programs: Name of Federal Program or Cluster CFDA Number CARES ACT— Coronavirus Relief Fund(CRF) 21.019 National Clean Diesel Funding Assistance Program 66.039 Dollar threshold used to distinguish Between Type A and Type B federal programs: $750,000 Auditee qualified as low-risk auditee? Yes 7 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2020 L Summary of Auditors' Results (continued) State Awards Internal control over major programs: Material weakness(es)identified? No Significant deficiencies identified that are not considered to be None reported material weaknesses? Type of auditors' report issued on compliance for major state Unmodified programs: Any audit findings disclosed that are required to be reported in None accordance with the Uniform Grant Management Standards? Identification of major programs: Name of State Program or Cluster North Texas Anti-Gang Center Dollar Threshold Considered Between Type A and Type B Programs: $300,000 Auditee qualified as low-risk auditee? Yes IL Financial Statement Findings None Noted III. Federal Award Findings and Questioned Costs None Noted IV. State Award Findings and Questioned Costs None Noted 8 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS Page 1 of 2 SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended September 30,2020 Federal Grantor/ Federal Pass-Through Grantor/ CFDA Pass-Through Entity Total Federal Program or Cluster Title Number Identifying Number Expenditures U.S.Department of Justice Direct Awards: State&Local Task Force Agreement 16.000 N/A $ 36,981 Bulletproof Vest Partnership Program 16.607 N/A 11,118 Federal Asset Forfeiture Program 16.922 N/A 35,171 Pass-through from City of Fort Worth,Texas: Edward Byrne Memorial Justice Assistance Grant Program 16.738 097-985-824 318 Pass-through from Texas Office of the Governor-Criminal Justice Division(CJD): Victims of Crime Act Formula Grant Program 16.575 3367203 165,185 Violence Against Women Formula Grants 16.588 3544402 96,910 Total U.S.Department of Justice 345,683 U.S.Department of Transportation Pass-through from Texas Department of Transportation: Highway Planning and Construction Cluster: Highway Planning and Construction Program 20.205 CSJ 0902-90-079 28,548 Highway Planning and Construction Program 20.205 CSJ 0902-48-577 784,788 Highway Planning and Construction Program 20.205 CSJ 0902-90-080 24,943 Total Highway Planning and Construction Cluster 838,279 Highway Safety Cluster: State and Community Highway Safety Grant Program 20.600 2019-Nrichlan-S-lYG-00033 34,763 Total U.S.Department of Transportation 873,042 U.S.Department of the Treasury Pass-through from Tarrant County: CARES ACT-Coronawrus ReliefFund(CRF) 21.019 CARES-2020 3,738,900 Total U.S.Department of the Treasury 3,738,900 U.S.National Endowment for the Humanities Pass-through from Texas Library and Archives Commission: Grants to States 45.310 901744 3,484 Total U.S.National Endowment for the Humanities 3,484 Environmental Protection Agency Pass-through from North Central Texas Council of Governments: National Clean Diesel Funding Assistance Program 66.039 TRN5077 300,000 Total Environmental Protection Agency 300,000 U.S.Department of Homeland Security Pass-through from the Office of the Governor-Homeland Security Grants Division: Non-cash Assistance(Equipment): Homeland Security Grant Program 97.067 3759401 46,500 Total U.S.Department of Homeland Security 46,500 Total Federal Expenditures $ 5,307,609 9 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS Page 2 of 2 SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS(continued) For the Year Ended September 30,2020 Total State State Granting Agency/Grant Program Grant or Identifying Number Expenditures Texas Governor's Office-Criminal Justice Division 2019 North Texas Anti Gang Center 2019-AG-ST-0019 $ 123,274 2020 North Texas Anti Gang Center 2020-AG-ST-0019 723,803 Total Texas Governor's Office-Criminal Justice Division 847,077 Texas Attorney General's Office State Asset Forfeitures N/A 14,400 Texas Department of Transportation North Richland Hills-NETS URB 2002(02)51309020220 116,134 Texas Department of State Health Services Pass-Through from the North Central Texas Trauma Regional Advisory Council(NCTTRAC): 2019 EMS-County Assistance (EMS Pass-through)Allocations N/A 3,721 Total State Awards 981,332 Total Federal and State Awards $ 6,288,941 10 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended September 30,2020 Note 1 - Summary of Significant Accounting Policies The City accounts for awards under federal and state programs in the General, Special Revenue, and in the local Capital Projects governmental funds. In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses)in net current assets. The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Expenditures are recognized following the cost principles contained in the Uniform Guidance and State of Texas Uniform Grant Management Standards,wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods. The City has elected not to use a 10 percent de minimis indirect cost rate allowed under the Uniform Guidance on an overall basis. Certain grants allow for a negotiated indirect cost rate using a consistent basis, which has been implemented. Note 2-Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state grant activity of the City under programs of the federal and state government for the year ended September 30, 2020. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance and State of Texas Uniform Grant Management Standards. Because the schedule presents on a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets or cash flows of the City. 11 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS SUMMARYSCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended September 30,2020 Federal regulations, Title 2 U.S. Code of Federal Regulations Section 200.511 states, "The auditee is responsible for follow-up and corrective action on all audit findings. As part of this responsibility, the auditee must prepare a summary schedule of prior audit findings."The summary schedule of prior audit findings must report the status of the following: • All audit findings included in the prior audit's schedule of findings and questioned costs and • All audit findings reported in the prior audit's summary schedule of prior audit findings except audit findings listed as corrected. I. Prior Audit Findings None reported 12 North Richland Hills,TX 2020 SA Report CITY OF NORTH RICHLAND HILLS, TEXAS CORRECTIVE ACTIONPLAN For the Year Ended September 30,2020 Federal regulations, Title 2 U.S. Code of Federal Regulations §200.511 states, "At the completion of the audit,the auditee must prepare, in a document separate from the auditor's findings described in §200.516 Audit findings, a corrective action plan to address each audit finding included in the current year auditor's reports." L Corrective Action Plan Not applicable 13 North Richland Hills,TX 2020 SA Report "I r*4W NOLa`C`H KIC"HLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Consider Resolution No. 2021-017, approving and authorizing publication of Notice of Intention to Issue Certificates of Obligation in an amount not to exceed $875,000 PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The Fiscal Year 2020/2021 Adopted Budget includes certain projects to be financed with Certificates of Obligation ("CO's"). Prior to the issuance of these CO's the City must meet specific notification requirements. City Council is requested to consider Resolution No. 2021-017, approving and authorizing the publication of this notice for the issuance of CO's in an amount not to exceed $875,000. GENERAL DESCRIPTION: As part of the legal requirements for the planned issuance of CO's, the City Council must authorize the City Secretary to publish, in a newspaper of general circulation and continuously on the City's website, the notice of intent of the City to issue Certificates of Obligation in an amount not to exceed $875,000. The proceeds include $840,000 in project funds and an estimated $35,000 for associated issuance costs. The proposed sale will occur on April 26, 2021 . The notice of intent to issue CO's must be published once a week for two consecutive weeks. The first publication date must be at least forty-six (46) days prior to the date set for Council's vote on the ordinance authorizing the issuance of the CO's. The notice must also be posted continuously on the City's website for at least forty-five (45) days prior to Council's vote. The notice of intention is attached to the resolution and labeled Exhibit A. A copy of the projected schedule of events has been attached to this item as Attachment 1. Highlights of the proposed calendar for the sale is as follows: • March 11 (or earlier) City to publish 1st Notice of Intent in Star Telegram • March 18 (7 days later) City to publish 2nd Notice of Intent in Star Telegram • April 1 Distribute Term Sheet for CO's to Potential Bidders • April 22 Bids Due from Bidders for the CO's "I r*4W NOLa`C`H KIC"HLAND HILLS • April 26 City Council Adopts Ordinance and Approves Sale • June 1 Closing and Delivery of Funds to the City The 2021 CO funded projects and associated cost estimates are as follows: Project Taxable or Type Description Tax-Exempt Term Amount utility College Hills Ground Storage Tank Rehab Tax-Exempt 15 Year $840,000 Sub Total $840,000 Est. Issuance Cost $35,000 TOTAL $875,000 RECOMMENDATION: Approve Resolution No. 2021-017, approving and authorizing publication of Notice of Intention to Issue Certificates of Obligation in an amount not to exceed $875,000. RESOLUTION NO. 2021-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, APPROVING AND AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of North Richland Hills, Texas, has determined that certificates of obligation should be issued, in one or more series, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended (the "Act"), for the purpose of paying contractual obligations to be incurred for (i) constructing, acquiring, purchasing, renovating, enlarging, equipping, and improving the City's water and sewer system facilities, including the acquisition of land and rights-of-way therefor, and (ii) professional services rendered in relation to such projects and the financing thereof (collectively such purposes are referred to herein as the "Project"); and WHEREAS, prior to the issuance of such certificates, the City Council is required to publish notice of its intention to issue the same in accordance with the provisions of the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: SECTION 1. The City Secretary or the Assistant City Secretary is hereby authorized and directed to cause notice to be published of the Council's intention to issue certificates of obligation in one or more series in a principal amount not to exceed $875,000, for the purpose of paying contractual obligations to be incurred for the Project; such certificates to be payable from ad valorem taxes and a limited pledge of the net revenues derived from the operation of the City's combined Waterworks and Sewer System. The notice hereby approved and authorized to be published shall read substantially in the form and content of Exhibit A hereto attached and incorporated herein by reference as a part of this resolution for all purposes. SECTION 2. The City Secretary or the Assistant City Secretary shall cause the aforesaid notice to be published (i) in a newspaper of general circulation in the City, once a week for two consecutive weeks, the date of the first publication to be at least forty-six (46) days prior to the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation and (ii) continuously on the City's website for at least forty-five (45) days before the date stated therein for the passage of the ordinance authorizing the issuance of the certificates of obligation. SECTION 3. This Resolution shall take effect and be in full force and effect from and after the date of its adoption, and it is so resolved; and all Resolutions of the City Resolution No. 2021-017 Page 1 of 3 Council of the City in conflict herewith are hereby amended or repealed to the extent of such conflict. PASSED AND APPROVED on this 8t" day of March, 2021. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson City Secretary/Chief Governance Officer APPROVED AS TO FORM AND LEGALITY: Maleshia B. McGinnis, City Attorney APPROVED AS TO CONTENT: Mark C. Mills, Director of Finance Resolution No. 2021-017 Page 2 of 3 EXHIBIT A NOTICE OF INTENTION TO ISSUE CITY OF NORTH RICHLAND HILLS, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2021 TAKE NOTICE that the City Council of the City of North Richland Hills, Texas, shall convene at 7.00 o'clock P.M. on the 26th day of April, 2021, at the City Hall, 4301 City Point Drive, North Richland Hills, Texas, and, during such meeting, the City Council will consider the passage of an ordinance authorizing the issuance of certificates of obligation, in one or more series, in an amount not to exceed $875,000, for the purpose of paying contractual obligations to be incurred for (i) constructing, acquiring, purchasing, renovating, enlarging, equipping, and improving the City's water and sewer system facilities, including the acquisition of land and rights-of-way therefor, and (ii) professional services rendered in relation to such projects and the financing thereof; such certificates to be payable from ad valorem taxes and a limited pledge of the net revenues of the City's combined Waterworks and Sewer System. In accordance with Texas Local Government Code Section 271.049, (i) the current principal amount of all of the City's outstanding public securities secured by and payable from ad valorem taxes is $110,900,000; (ii) the current combined principal and interest required to pay all of the City's outstanding public securities secured by and payable from ad valorem taxes on time and in full is $13675827391 ; (iii) the estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $994,113; (iv)the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (v) the maximum maturity date of the certificates to be authorized is February 15, 2036. The certificates are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended. Alicia Richardson, City Secretary City of North Richland Hills, Texas Resolution No. 2021-017 Page 3 of 3 2/3/2021 lq�m� IF4 City of North Richland Hills, Texas General Obligation Refunding&Improvement Bonds,Series 2021 Tax and Waterworks and Sewer System(Limited Pledge) Revenue Certificates of Obligation,Series 2021 Projected Schedule of Events Mar-21 Apr-21 May-21 Jun-21 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 P 3 1 1 2 3 4 5 7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8 6 7 8 9 10 11 12 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15 13 14 15 16 17 18 19 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 20 21 22 23 24 25 26 28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 27 28 29 30 30 Complete By Day Event 8-Mar-21 Monday City Council passes resolution authorizing Notice of Intent Publication for Certificates of Obligation&Approves FYE 2020 CAFR I I-Mar-21 Thursday 1st Notice of Intent published in the Star Telegram (No later than March 11,2021) 12-Mar-21 Friday Initial Draft of Preliminary Official Statement&Term Sheet distributed to the City and to Bond Counsel for review 18-Mar-21 Thursday 2nd Notice of Intent published in the Star Telegram (exactly 7 days after publication of first notice) 19-Mar-21 Friday Receive initial comments to Term Sheet 22-Mar-21 Monday Term Sheet sent out to the City and Bond Counsel for final signoff 24-Mar-21 Wednesday Receive initial comments to Preliminary Official Statement 25-Mar-21 Thursday Distribute revised draft Preliminary Official Statement and Notices of Sale to City and Bond Counsel Distribute draft Preliminary Official Statement to Rating Agencies 29-Mar-21 Monday Receive all final comments to Term Sheet 1-Apr-21 Thursday Term Sheet sent out to Potential Bidders for CO Issuance 31-Mar-21 Wednesday City's Annual Disclosure Filings Due 5-Apr-21 Week of Rating Agency Conference Calls 8-Apr-21 Thursday Receive 2nd Round of comments on Preliminary Official Statement and Notice of Sale 9-Apr-21 Friday Distribute revised draft Preliminary Official Statement and Notice of Sale for final comments and sign-off 14-Apr-21 Wednesday Receive information and comments to complete Preliminary Official Statement and Notice of Sale from City and Bond Counsel Receive Credit Ratings 15-Apr-21 Thursday Distribute Official Statement and Notice of Sale Electronically through i-Deal Prospectus 22-Apr-21 Thursday Bank Bids Due at 10 AM for CO Issuance 26-Apr-21 Monday Price/Sale of Obligations:City Council adopts Ordinances and approves sales 1-Jun-21 Tuesday Closings and Delivery of Funds to the City H it ltopSeCLu c l tieas "I r*4w NOLa`C`H KIC"HLAND HILLS CITY COUNCIL MEMORANDUM FROM: The Office of the City Manager DATE: March 8, 2021 SUBJECT: Announcements PRESENTER: GENERAL DESCRIPTION: At each City Council meeting a member of the governing body announces upcoming events and recognizes an employee who exemplifies our core values. Announcements: Daylight Saving Time begins on the second Sunday in March. Remember next weekend to "spring forward" by setting your clock ahead one hour. It is also a good time to test or change the batteries in your smoke detectors and carbon monoxide detectors. Winter is not kind to our roadways. The freezing and thawing of moisture in the ground weakens the pavement, leading to cracks and potholes. NRH Public Works is patching potholes that surfaced after last month's freezing weather. You can report a pothole by phone or online and they will add it to their list. We appreciate your patience, as they work to get caught up. In addition to pothole repair, numerous streets will be improved through the annual Preventive Street Maintenance Program and the 2020 Street Bond Program. You can find more information about these programs on the city's website. Kudos Korner: Every Council Meeting, we spotlight our employees for the great things they do. Tonight we recognize: Traci Henderson in the City Secretary's Office — A citizen recently contacted us to share her praise for Traci. The citizen had called City Hall during last month's winter storm and power outage because she was unable to get through to the facility where her elderly relative lives. Traci was able to track down the information she needed and assure her that the facility's residents were all ok. The citizen wanted Traci's supervisor to know how kind and helpful she was. "She was so good to help me with my problem. She did a tremendous job, and I thank you and thank the city for helping me in a crisis," the citizen stated.