HomeMy WebLinkAboutCC Minutes 2023-06-05 Regular MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF FRIENDSWOOD
JUNE 5,2023
THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD MET IN A REGULAR MEETING ON
MONDAY, JUNE 5, 2023, AT 5:30 P.M. IN THE COUNCIL CHAMBERS, FRIENDSWOOD CITY
HALL, LOCATED AT 910 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE
FOLLOWING MEMBERS PRESENT CONSTITUTING A QUORUM:
Steve Rockey Councilmember
Sally Branson Councilmember
Trish Hanks Councilmember
Robert J. Griffon Councilmember
Joe Matranga Councilmember
Brent Erenwert Mayor Pro Tem
Mike Foreman Mayor
Morad Kabiri City Manager
Karen Horner City Attorney
Leticia Brysch City Secretary
1. CALL TO ORDER
Mayor Foreman called the meeting to order with a quorum present at 5:30 P.M.;all members were present
with the exception of Councilmember Branson who arrived at 6:25 p.m.
2. INVOCATION
The invocation was led by Pastor McCauley Austin of Friendswood Baptist Church
3. PLEDGE OF ALLEGIANCE-United States and State of Texas
Mayor Foreman led the Pledge of Allegiance of the United States and to the State of Texas.
4. COUNCIL COMMENTS AND REPORTS
Mayor Foreman stated that the Memorial Day Event, thanked all the councilmembers for attending the
event. There were 150 veterans in attendance, which made for a great picture.
Councilmember Griffon apologized that he was not able to be at Councilmember Matranga's swearing-in
last month, congratulated him and welcomed him to the Council.
Councilmember Matranga stated he is deeply honored for the opportunity to serve and is looking forward
to contributing to this community.
City Council Regular Meeting Minutes
June 5,2023
2 Page of 16
5. PUBLIC COMMENT
Mr. Jason Jones requested to speak before the Council to advocate on behalf of Parks and Recreation
Department to consider increasing the project budget for Centennial Park. He stated the park appears to
be in need a few updates; such as:
1. extending the chain-link an additional 100+feet,
2. changing the chain-link to something more appealing like wrought iron,
3. filling in the holes through-out the park, and
4. drainage issues.
6. COMMITTEES OR SPECIAL REPORTS
A. Receive the Library Advisory Board Annual Report
Diane Freeman Chair of the Library Board presented the Library Boards Annual Report and highlights
from the past year. Below are the Board's main highlights for the past year:
1. Assisted and approved Friendswood Library 2023-2028 long-range strategic plan.
2. Served on the Galveston County Library System Advisory Council and approved the
Galveston County Library System budget.
3. Assisted Friends of the Library in hosting library fundraising Galas.
4. Met with library staff for regular board meetings to advise on library services and
policies.
5. Presented Outstanding Programming Award to Irina Varentsova for her volunteer art
programs and coordination of Ceramics and Craft Show.
6. Assisted library with funding for a facility renovation project.
7. Raised over$5,000 from Book Sales.
8. Sponsored programs and events throughout the year including music performances,
movie nights, and youth Summer reading programs.
9. Purchased prizes for Summer Reading and other reading challenges.
10.Purchased new Library Outreach Vehicle for home delivery and other outreach projects.
The Mayor and Council thanked Ms.Freeman for the presentation and asked that she extend their gratitude
to the Board,the Friends of the Library members, and many volunteers.
7. SCHEDULE OF EVENTS FOR THE UPCOMING GENERAL OBLIGATION BOND
A. Receive and discuss-a Schedule of Events for the upcoming General Obligation Bond Sale.
City Manager Kabiri presented the item and introduced Mr. John Robuck, Managing Director of BOK
Financial Securities Incorporated who would be presenting the information on the schedule of events. Mr.
Kabiri stated that this item-the culmination of the 2019 bond program,which was approved by the voters
to fund an array of facilities and drainage projects, and this is the third and final sale of the remaining
bonds for this program.
City Council Regular Meeting Minutes
June 5,2023-
Page 3 of 16
Mr.Robuck introduced Ms.Nikki Hill,the City's new bond counsel with McCall,Parkhurst,and Horton,
LLP and thanked the Council-for the opportunity to speak to them on this item. Mr. Robuck began the
presentation by given the Council an overview of the Bond Buyers Index which is a snapshot of Municipal
Rates for municipal bonds across the country. He noted that currently it is at a 3.67%, which is slightly
higher than when they completed their report and about 1.65%above the.all-time low and about 45 basis
points below the historical-average since 2000. Mr. Robuck stated that they are seeing some volatility in
the market,mostly in response to the Federal Government and the debt ceiling discussions and they hope
that with the debt ceiling issues being settled, some stability will return to the market.
Mr. Robuck then gave the Council an overview of the City's estimated debt service requirements for its
General Obligation Improvement Bonds, Series 2023, as follows:
FiscalYesir Plus: Series2023_GO•Wntls Total
Fntlina Gurrenf:Tatal S3000,000 in.Procee& DebE Service
(9130) DebtSenice,(a) Printipcd* hiterest(b) Total ,Regairaneuts
2023 $3;903,906 33,903;906
2024 3,909,20.6 $L482,263 $1,48Z263 5,39L469
2025 3;908469 $210,000 L388,000 1.598000 5.506;469
2026 3,900;669 229,000 L377,250 1;597, % S 50d.919
2027 3;951;863 '190,000 L367,000 1;557,(& _5,505,803
2028 3 953,944 195,000 1,357375 1,557375 5 50k319
2029 3,-950,669 -210,000 1,347;250 1,55]?S0. 5,50.7,919
2030 3;951,025 20;000 1;336,500, 1556.500- 5�507525
2031 • '.952,775 230.000 L325,2501 1,555,250 5 308,025
2032 17587,825 680,000. L302,500 1.984500 3;570325
2033 1,589925 715,000 1_267625 1982625. 3,572,550
20341,588 200 755,000 L230,*875 1,985 875 3,574075
2035 1,587.850 795,000 1,192,125 1;93T,125 3,574,975
2036 1,41-1;800. `860;000 I2150,750 2;O1Q75.0 3,422,550
2037 L410,300 905,000 1,106,675 2;U11625 3,42i;925
2038 i"412,825 _950,000 L060,250 2,01Q250 3,423,015
2039 '1;414300 995"000 L011,625 20M625 3,420 925
2040 1,44725 L045,000 96%625 2;005,625 3,42Q350
2041 921;600 1,050,000 908,250 1,958 250; 2,879,850
2042 920;150 L105,000 854,375 1;959;373= 2;879,525
2043 924.,72 1,.155,000 797,875 1,052;S75: 7,377,447
2044 924;897 L215.000 738,625 1,953,025 .2;378 522
2045 924,684 L275,000 676,375 1,951,375 2,87(�059
2046 923,950 L310,000 611,000 1;951,000 2 87�050
2047 922,694 N10000 542,250 1,952,250- 2;874;944
2048 920.900 L485;000 469,875 L 54 2,875 775
2049 923,509 1;560,000 393,750 1;953;750. 2,877,B9
2050 920,522 1:645,000 313,025 1;958,625. 2,379,'147
2051 591947 1,725,000 229375 1954,375: 2,54&322
2052 L815,000 140,875 1,955;875: 1,955;875
2053 1-910,060 47,750 1957,759. 1;957,750
Totals S537633,641 S27,865;000 S27987.888 S55.852,888 S114,486t+29
* Preliminary,subject to change. Generates
$30,000,000 in construction proceeds for the
City and includes estimated issuance costs.
(a) Excludes the City's General Obligation debt
paid by Waterworks and Sewer System
revenues and Capital Leases payments.
(b) Interest estimated at current market interest
rates,for illustrative purposes only.
City Council Regular Meeting Minutes
June 5,20.23
Page 4 of 16
Mr. Robuck noted that this G.O. Bonds, Series 2023, will-be $30 million over a 30-year debt period that
can only be.paid by property taxes. He further noted that the.debt has been structured to minimize the tax
rate impact and the interest cost to the City which will give the City more capacity later on as needed for
the projects as the numbers decrease from$5.5 million to $3.5 million. Mr:Kabiri.noted that the current
debt-service payment is.$3.9 million is not-inclusive of our capital lease payments; such as,the recently
purchased ambulance, that:have associated short-term leases associated like the self-contained breathing
apparatus are also added to that number,which increases the amount to right at$4.5 million to debt service-
payment.from the City's General Fund tax account.
Mr-. Robuck stated that their numbers are intentionally conservative in order.to over deliver on their
projections. He stated that they are planning to sell $27.8 million in bonds to generate proceeds in the
amount of$30 million,-and involve some premiums so investors pass more money for those bonds of
about$2.4 million,less issuance expenses of about$305,000,gives the City total proceeds of$30 million
that will be delivered at closing. He'f irther noted that the estimated all costs interest rate is about 4.398%;
but believes that it will be a lot lower, and the average life is about 20.09 years.
City of Friendswood,Texas
S27,865,-000"General-Obligation Improvement
Bonds,Series 2023
Prncipal Amount of the Bonds: $27,865000 • -
Plus:Net Premium :2,44g744.
Less:Expenses: 305,744-*
_ U*nderwi$ers'Dscntnt $174.156
TbaacialAcksor 46 41
Bond Counsel; 38,632
Rating Agencies 30,000
Attomey General Fee 9500
Prtotittg,Dst,,butioa 1,250
%fiscenaneous 4516
Payng Agentlrrvstee 750
TotalPrviceeds: $10,000,000
a:3a►SIG—SeU ete—Inlgie'.st'RatSC�.,
Awrege.L&:. 20.09,Years
Mr. Robuck stated that in order to accomplish this sale, the following schedule of events-would need to
take place, and they are the following:
Date Action Role _
lfotniay,illay29,2023 First Do-tof_Prdminwof6cdSmtemeACPOY) - = FA
Monday,Jtam 5,2023 City Couoctl�llfeeting, City;fir,BC
Rcviem Fniatttiog P!w and Sdieduk of Events Ici -
General Obligation Improwmera Bonds('GO Bonds')
Timesday,Jone 6,2023 .Secood Draft POS City,FA,BC
\leek of JwL-12,2023 Rating turd Ditgence Calls City,FA,BC
Friday,Junm 16,?023 Tlrird Dmft POS city,F3 BC.U,\l
Fridat Junec 30;20 3 FinA Draft POS -CitL FA,tC,t3\l
Manday-,July 3,2023 Post/Distribute Fau1 POS -BOM
\fonday,J*10,2023 Sale of-Generol Obligation Bonds Citt;FA,-BC,U\l
City CoumetlWeeting -
City Council to Approve Sale of GO Bonds
Trteulay;August S.2023" Cl—ing/Delivery of GO Bonds City,FA,-BC,UW,
Participants
City=City of Fiieod ooda Testis -
:FA-BOK Fittancal Smuit a,Inc.ffm_atAJaisor) .
BC-afcCA Parldwsm&Horton LLP(Bond C nursel)
U W,-Uudeslytitas(ro Be Det=,iued)
City Council Regular Meeting Minutes
June 5,2023
Page 5 of 16
Councilmember Hanks asked when the interest rate is locked in for the sale of these bonds. Mr. Robuck
noted that it is locked in on the day of pricing, so as soon as the Council reviews and approves the results,
the rate will be locked down, and that is scheduled for July 10I'.
Councilmember Griffon asked if it would be better to hold off on the sale of these bonds as many of the
agreements related to the projects being funded by these bonds will not take place in 2023, and many of
the big, funded projects like the Whitcomb project are getting pushed back even more. He asked if the
City would get better market conditions by doing $8 million now; and $27 million later and hopefully
push out some of these interest payments,and not have to increase the City's tax rate by the projected.04
cents. Mr.Kabiri stated that the City did pay a little under one million to the Harris County Flood Control
and the other parties involved in that project, but in the next fiscal year, when the design phase is
completed,the City will have to pay them a little over$7 million. As it relates to the Whitcomb property,
when the state begins its new fiscal year on September lst, $10 million will go to Harris County Flood
Control District, and when that payment is made, the City will owe the District another $2.85 million.
Therefore, for fiscal year 2024, the City will owe the Harris County Flood Control District around $10
million. Additionally, as it relates to the Tannos project on the Whitcomb property,when he gets started,
the City's contribution relative to the drainage component will be$5 million dollars. So,there are about
$15 million worth of projects that will hit the books in FY2024;however, if it is the desire of the Council
to issue the balance of the debt that has been authorized in FY2025, staff can look into it,but note that the
City will be paying issuance cost twice now and then.
City Manager Kabiri also noted that currently the City has a cashflow issue as a result of having to front
money for grant projects that will be reimbursed at a future date,which has resulted in the City having to
slightly dip into its emergency reserves. The issuance of the bonds will help with the cash flow issue
particularly as we move into hurricane season.
Councilmember Hanks asked how long the City has to worry about negative arbitrage. Mr.Robuck noted
that really only about five years.
Mr. Kabiri stated the issuance of these bonds will impact next year's tax rate as the City's debt service
payments will increase by nearly$2 million dollars. Councilmember Griffon stated at this time,the City
is at $4.5 million, including EMS and this sale being discussed will add about $1.5 million every year
until 2031, so with all of that, how many pennies are needed to cover the additional $1.5 million. Mr.
Kabiri stated that based on the preliminary property values, that is about 3 pennies on the dollar for the
added $1.5 million. Mr. Kabiri noted that in 2019, before these bonds were issued,the voters were told
that it could impact the tax rate anywhere from five pennies to 10 cents, and thankfully, the City has not
gotten anywhere near the 10 cents mark. Mayor Foreman stated that the City has not increased the tax
rate yet to pay for these bonds but will be discussing that issue later on in the evening.
The Council discussed the various drainage projects under agreement and subject to the 2019 G.O.Bonds.
Mr. Kabiri stated that these are all good projects that they promised the voters to get done for the City,
and they are getting done,this is just the costs associated with those endeavors.
City Council Regular Meeting Minutes
June 5,2023
Page 6 of 16
B. Consider a schedule of Events for the upcoming General Obligation Bond Sale.
A motion was made by Councilmember Griffon and seconded by Councilmember Hanks to approve the
Schedule of Events for the upcoming General Obligation Bond Sale, as presented; the vote was the
following.
Ayes: Mayor Mike Foreman, Councilmember Trish Hanks, Councilmember Steve Rockey,
Councilmember Robert J. Griffon, Councilmember Joe Matranga, and Mayor Pro Tem
Brent Erenwert.
Nays: None.
Other: Councilmember Sally Branson(Not Present for the Vote)
The item passed unanimously.
8. WORK SESSION TOPICS
A. Receive and discuss an update regarding the Capital Improvement Projects.
Mr. Jil Arias, Director of Engineering presented this item and provided the following updates for the
City's ongoing Capital Improvement Projects:
Fire Station No. 2 Reconstruction:
This project is 89% complete, the interior work continues with the transferring to permanent power,
ceiling work and final painting, flooring and finishings to follow permanent power, and the target
completion date is August 2023.
Blackhawk Facility Renovation & Shelter:
This project started in January 2023, staff will begin moving into new offices late June 2023, and the
scope of work for the Shelter is in the process of being updated.
Blackhawk Blvd—Phase H-B:
This project was awarded to the contractor in May 2023. Staff is waiting on the franchise companies to
relocate their utilities so construction can begin. The project will start at the current northern terminus
of rebuilt street and will extend approximately 1115=feet(.85 lane miles).
Blackhawk Blvd—Phase H-C:
This project has been selected as one of Precinct 2's 2023 Partnership Programs. This project will
complete the remainder of Blackhawk Blvd. from Pennystone Way to FM 2351, thru to FM 528.
24-inch Clear Creek Water Line Crossing:
This project's Preliminary Engineering Report is in progress and is reviewing alternatives to improve
capacity in the water system and reduce water losses across the creek.
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June 5,2023
Page 7 of 16
Surface Water Plant#1 Tank Replacement:
This project is for Surface Water Plant #1, Blackhawk Boulevard behind Calvary Church and staff is
reviewing alternatives for the ongoing Preliminary Engineering Report.
2023 Impact Fee Assessment Study:
The Utility Impact Fee Project has kicked off and the consultant has completed its data collection and is
currently in the review process. There will be"Impact Fee 101"training course for Planning&Zoning,
and Council this summer.
FM 518 Curb &Ramp Proiect:
➢ TXDOT provided a punch list on May 18th— currently working through the list. If all goes as
planned TxDOT will activate the signals by the end of June 2023.
➢ The traffic signals will be set via timing until interconnectivity via fiber optics is completed.Wire
Span signals will be removed once signals are operational.
➢ TxDOT waiting on contractor to remobilize to finish sidewalks (with brick borders).
B. Receive and discuss an update regarding the Multi-Year Financial Plan.
Ms. Katina Hampton, Director of ASO presented the item and stated that the multi-year financial plan
covers years FY2024—2028,with year one being the budget being worked on now and noted that all of
the numbers being presented are very preliminary and conservative as the City has not received the
certified values from the appraisal districts.
Ms. Hampton stated that the City's biggest revenue is property taxes, and staff anticipates an increase in
values of 7% a year, residential and commercial, with a very rough estimate of $49 million in new
construction. Ms. Hampton noted that all values being presented are very preliminary and take into
consideration only the General Fund and the Tax Debt Service Fund. She also noted that the other
revenues sources in the General Fund are more consumption based and are estimated to have a 2%increase
based on anticipated population growth and include revenue sources like municipal court fines,
intergovernmental fund transfers,permit fees, etc. City Manager Morad Kabiri stated that 7%may seem
lower than the average of what some residents have seen in the increase of their property values,but the
number provided is more of a collective percent in order to balance out the devaluation of some
commercial properties and while $49 million in new construction may seem like a lot, this is lower than
what the City has seen in the last several years. He further noted that the only way organizations can
survive off of the no new revenue rate of what used to be known as the effective tax rate is if they in a
high growth area, and unfortunately Friendswood is not seeing new values being added to the ground in
terms of new construction fast enough to keep up with increases in debt services and inflation.
Councilmember Rockey stated that he understood that there was a new process that commercial/office
buildings can petition for their taxes and asked staff to elaborate. Mr. Kabiri that there have been quite a
few inquiries about this subject and noted that there is a single office building in Friendswood that was
devalued from last year at$14 million to $5 million this year, which is a significant impact to the City's
taxable values across the board, which represents nearly eighteen, half a million homes, so as these
devaluations happen,it places a greater burden to other properties that are already on the tax rolls to make
that value up. Mr. Kabiri clarified that nor the business owner, nor the taxing entity did anything wrong
in this situation,and the tax assessor allowed the value to come down based on the income coming off of
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June 5,2023
Page 8 of 16
the lease, which is allowed under state laws. He further noted that the City, as a taxing entity, does not
have the legal right to protest that valuation.
Mayor Foreman asked is there a way to separate out the commercial and residential values. Ms.Hampton
stated that there is a way to see the difference between the two by comparing the preliminary and certified
values from the counties to last year's numbers.Mayor Foreman requested that staff provide Council that
comparison in order to see how the City is growing on the commercial side because there will be a point
where the City will not be able to build anymore residential. Mr.Kabiri stated that last year the breakdown
was 14% commercial and 86% residential for values based upon land use. The recommendations have
been to have 80% residential and 20% commercial, but this will always be a moving target as values
change on properties.
Mayor Pro Tem Erenwert asked is there a way to forecast the values moving forward if more.people start
doing these types of appeals that result in significant devaluations. Mr. Kabiri noted that there is no way
for staff to anticipate these changes in values, there are some things staff can calculate into its numbers,
like new exemptions due to residents aging out; 65 years of age or older,protested values,properties that
are purchased by non-profits or churches but if commercial properties are being devalued so significantly,
this will result in a greater burden on the residential properties because the costs of services and other
obligations remain the same. Mr.Kabiri stated that staff is keeping a close eye on State's special session
as it relates to tax relief because it will impact the City to some extent. Ms. Hampton stated that currently
an estimate$2 billion of the City's overall property value is exempted for various reasons.
Ms. Hampton stated that the General Fund projections show a $37.2 mission in revenue, 55% of that
revenue is property taxes at $20 million, 24% or a little under $9 million are sales taxes, non-taxable
revenues are 15% and franchise taxes are 6%. Ms. Hampton noted that the sales tax revenue generated
from the%2 cent sales tax approved by voters in 2016 for street improvements and FDEDC is recorded and
expended in funds separate from the General Fund,so it is not included in these projections.Ms.Hampton
stated that staff anticipate the need for tax increase for a little less than 53 cents, but this number is very
preliminary, and staff will know more as the certified values come in. She further noted that this would
mean that the City would need to use a portion of its unused tax increment, and added as an explanation
that Senate Bill 2, in 2019, allowed municipalities, if they adopted less than the voter approved rate, then
that delta could be banked for a three-year running period and can be adopted by the City as needed. Ms.
Hampton noted that the City currently-has about 9 cents in unused increments.
Councilmember Rockey asked if staff anticipates that the sales tax revenue is going to continue to increase
as it has ever year. Ms.Hampton stated that staff does project that the sales tax revenue will increase but
noted that staff bases projections on previous years, but remain conservative because of the volitivity of
the economy,inflation,mistakes in collections at the state level, and other markers. Mr. Kabiri noted that
sales tax revenues are going up 10-15%per year but are not sure if that will be the case moving forward
and prefers to be conservative,particularly as the commercial growth is not sufficient enough and markets
are so volatile to ultimately help reduce the needed tax rate increase.
Councilmember Griffon stated that he understood being conservative on revenue projections, but noted
that in the last comprehensive audit, the City's revenue from property taxes were over a million dollars
more than budgeted, and the sales tax revenue came in over 11%more than projected,but that estimated
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June 5,2023
Page 9 of 16
$1.5 million in under budgeted monies could result in the reduction of some cents on the tax rate increase.
Mr.Kabiri stated that staff will go back and look at the revenues noted in the Comprehensive Audit.
Councilmember Matranga.stated that on the property taxes,staff is projecting$20.565 million and wanted
to know how that compared to the current year prior budget. Mr.Kabiri noted that this year's prior budget
is about $18 million and is inclusive of the additional debt service discussed in the previous item. He
further noted that the City has a little under $18 million of its property taxes that go to operations and
maintenance and the remaining $4.5 million go to debt service so this is going up to offset the additional
$2 million in debt service.
Ms. Hampton stated that as the property tax is such a large portion of the City's General Fund revenue,
she wanted to give an overview of the drivers for the anticipate tax increase for the next year.
As it relates to the City's property tax revenue,it has adopted the same tax rate in FY21,FY22,and FY23
at 48.73 cents, and has an estimated 9.6 cents in unused tax rate increment (2020—2022) available and
project using 4 cents of the tax increment for a tax rate used MYFP for FY24 of 52.94 cents.
This anticipated tax rate increase is due to the following:
➢ Issuance of$30 million G.O. Bond—shift from O&M to I&S (2.3 cents);
➢ Increases in FV Fire Department contract and transition of EMS into the City(1.2 cents);
➢ Impact of Bond Projects Operating Costs; such as mowing,utilities and maintenance(0.3 cent);
➢ Miscellaneous Operational Increases;
➢ Merit increase for employees (1.2 cents);
➢ Increases to maintenance, supplies &services (1.3 cents); and
➢ Forces-at-Work(FAWs) $1.2M(TOTAL FUNDED) (0.8 cent).
Mr. Hampton stated that the Department Heads submitted a number of decision packages that will not be
funded in the proposed budget in the amount of$4.7M.
Ms. Hampton also noted that as it relates to the planning assumptions related to expenditures, staff
included a 3%increase for wage and benefits for existing personnel per each year of the plan and for non-
personnel, there is a growth of a 5% increase in FY2024, a hold the 5% increase over year 2025-2028,
which is based on a 5-year-historical average related to expenditures. In looking at Year 1 of the Plan,
staff is anticipating$37.2 million in FY24 expenditures for the General Fund with an estimated 65%being
personnel costs and the other 35%.being the non-personnel costs. Lastly,Ms.Hampton noted that staff is
sill planning on incorporating the$500,000 for street improvements in the General Fund.
Ms. Hampton showed a chart outlining the historical and future projections related to the General Fund
and Fund Balance. The Council briefly discussed the street maintenance sales tax revenues and the street
improvements funds in the General Fund and Ms. Hampton provided the Council with a quick summary
of the Multi-Year Financial Plan summary to include the following:
➢ It maintains the 90-day operating reserve maintained in FY24;
➢ Projects a tax rate increase for FY2024 and a No New Revenue Rate(NNRR)through FY28;
➢ The Forces-At-Work and employee merit increases are included in FY24; and
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June 5,2023
Page 10 of 16
➢ No Decision Packages are funded in the 5-year planning window with current projections and
assumptions.
To close out, Ms. Hampton presented the next steps for the FY24 Budget Process, and went over the
following steps and dates:
➢ July 28,2024: Deliver the Proposed Budget,
➢ August 7,2023,Budget Work Session,
➢ August 28,2023, Hold Proposed Public Hearing,
➢ September 11,2023,Hold Public Hearing on Tax Rate, and Adopt Budget and Tax Rate.
The Mayor and Council thanked Ms. Hampton and the budget team for being very clear and educational
on the budget and the budget process.
9. CITY MANAGER'S REPORT
A. Present an update regarding the City's Fourth of July Celebration
City Manager Morad Kabiri presented the item stated the Grand Parade starts at 10:00 a.m. The Day
Program will begin at 11:00 a.m.in Stevenson Park and the Evening Program will take place at Centennial
Park with Tin Man Band at 7:30 p.m. and ending fireworks program which will begin at 9:40 p.m.
B. Present an update regarding the Waste Connections Scholarship recipients.
City Manager Kabiri presented recognized the three 2023 Waste Connection Scholarship recipients,which
are the valedictorian of each high school located in Friendswood, and they are:
➢ Friendswood High School—Madison Ressler,
➢ Clear Brook High School—Thomas Jennische, and
➢ Clear Sprints High School—Aiden Clarkson.
10.BUSINESS ITEMS
A. Consider awarding the Demolition and Removal Services Contract for Frenchman's Creek to
Grant Mackay Demolition Co. (Bid 2023-10)
A motion was made by Councilmember Hanks and seconded by Councilmember Branson,to authorize a
Demolition and Removal Services Contract for Frenchman's Creek Agreement with Grant Mackay
Demolition Co.,The vote was the following.
Ayes: Mayor Mike Foreman, Councilmember Trish Hanks, Councilmember Steve Rockey,
Councilmember Sally Branson, Councilmember Robert J. Griffon, Councilmember Joe
Matranga, and Mayor Pro Tem Brent Erenwert.
Nays: None.
City Council Regular Meeting Minutes
June 5,2023
Page 11 of 16
The item passed unanimously.
11. PROPOSED RESOLUTIONS & ORDINANCES
A. Consider an ordinance amending the City's General Budget for Fiscal Year 2022-2023 by
approving "Budget Amendment VIII" and providing for supplemental appropriation and/or
transfer of certain funds.
This budget amendment approves the following amendments and budget transfers:
1. Vehicle Replacement Plan(VRP) $20 545 Appropriate additional funding needed for replacement
of Public Works bucket truck (PW56). The total amount over budget is $20,545 due to inflation.
However, proceeds from the transfer of PW55 to the Police Department ($17,000) will be used to
supplement the cost of the new bucket truck. The remaining amount ($3,545) will be appropriated
from Public Works Street's Division Vehicle Maintenance in the General Fund.
2. 2017 CDBGDR (Harris Countyl Grant Reimbursement 457 826 Appropriate funds received
from the CDBG-DR(Harris County)grant program for the Forest Bend Detention Pond construction.
The City received a reimbursement of$457,826 for construction services related to pay application
#6.Advance funding for this pay application was originally approved at the May 1,2023 City Council
meeting. Therefore,the funds will be appropriated back to unassigned general fund balance.
3. 2017 CDBG-DR (Galveston CounW Grant —Reimbursement, S6 924 Appropriate funds
received from the CDBG-DR (Galveston County) grant program-for the Deepwood Flood Control
Project engineering. The City received a reimbursement of$63,924 for engineering services related
to prior year engineering expenses.Advance funding was originally approved at the October 5,2021
City Council Meeting. Therefore, the funds will be appropriated back to unassigned general fund
balance.
4. Forest Bend Detention Pond — Construction PaLARnlicatlons #7 & #8 $914 451 Appropriate
advance funding for Jerdon Enterprise Pay Applications #7 & ##8 for the construction of the Forest
Bend Detention Pond.The City applied for and was awarded a reimbursement grant through the 2017
Community Development Block Grant — Disaster Recovery with Harris County to engineer and
construct offline detention in coordination with the Forest Bend Homeowners Association. The
funding source will be unassigned general fund balance and will be reimbursed once grant funding
has been received from the grantor.
5. Blackhawk Shelter Engineering Chan2e Order $13.000. Appropriate funds for a change order
related to additional engineering costs to revise the bid documents with a modified scope for
construction of the Blackhawk Shelter.A reduction in the project scope is required so that the project
does not exceed the grant funds available. The construction project will be rebid with the reduced
scope of work. Funds will be appropriated from the 2021 General Obligation bonds.
6. Police Department-Vehicle Insurance Reimbursement.$23,774,Appropriate insurance proceeds
received from TML-IRP related to the loss of P429. Proceeds will be appropriated to cover a portion
of the replacement vehicle,P440, and for the towing costs related to P429.
City Council Regular Meeting Minutes
June 5,2023
Page 12 of 16
7. Police Department - Vehicle Insurance Reimbursement. $9.923. Appropriate insurance
reimbursement received from TML-IRP. Funding will be appropriated to the patrol division vehicle
maintenance account for repairs made to unit P437.
8. Fire Marshal Office Vehicle Upfi= S5,922i Transfer funds from the Fire Marshal operating
budget to the Vehicle Replacement Fund. Additional funds are needed to cover the equipment costs
associated with upfitting Unit FM16. Funds will be transferred to the Vehicle Replacement Fund
from the Fire Marshal vehicle maintenance account.
9. Keep Friendswood Beautiful Spring Sparkle.$1.087.Appropriate funds received from the KFB-
Spring Sparkle event.The appropriation will be recorded in the Keep Friendswood Beautiful division
operating maintenance budget for landscaping.
10. Friends of the Library Vehicle Donation.$44.437,Appropriate donation received from Friends of
the Library for the purchase of a vehicle. Funds will be appropriated to the Library Department's
vehicle account.
11. Creek Community Swim Association Donation, 4.000.Appropriate donation received from the
Creek Community Swim Association (FAST Swim Team) for pool improvements. The donation
proceeds will go towards the purchase of cooling cannon(pool cooler)at Stevenson Park.Funds will
be appropriated to the capital operating equipment budget for Stevenson Park.
12. Opioid Abatement Settlement. 5.353- Appropriate a portion of settlement proceeds for training
and equipment related to the opioid crisis.The City received$44,052.39 in proceeds from the Opioid
Abatement Settlement on March 16, 2023. Funds will be appropriated to the Police Department
Payroll($2,548) and Operating Equipment($2,805)budgets.
13. Friendswood Colts Donation. $3,000. Appropriate donation received from the Friendswood Colts
youth football organization. The donation will go towards the purchase of practice benches at
Centennial Park. The appropriation will be recorded in the Parks division operating equipment
budget.
14. Police Department Vehicle Insurance Reimbursement, $974. Appropriate insurance
reimbursement received from TML-IRP. Funding will be appropriated to the Patrol division vehicle
maintenance account for repairs made to unit P437.
15. SCADA Server URgrade. $56.229_Appropriate additional funds to cover the additional cost of the
SCADA upgrade. The project was partially funded in FY22. Funds will be appropriated from Water
and Sewer Working Capital.
16. ASOIHR Office Renovations. $6,750. Transfer funds from Administrative Services and Human
Resources operating budgets to the Facilities Division to extend partial walls to the ceiling in the
ASO/HR office area. The renovation is necessary to create a private work environment for Human
Resources.
City Council Regular Meeting Minutes
June 5,2023
Page 13 of 16
17. Friendswood Volunteer Fire Department — SCBA Packs. $411,000, Appropriate capital lease
proceeds to purchase self-contained breathing apparatus (SCABA) for the Friendswood Volunteer
Fire Department. The SCBA packs are used to protect firefighters' airways from toxic gas and other
harmful particles. The capital lease was approved at the April 3, 2023 City Council meeting. The
capital lease agreement is five years with the first payment due in FY23 and four remaining annual
payments to be repaid with Fire/EMS donations.
18. Fire Marshal's Office—Ambulance. $514.000.Appropriate capital lease proceeds to purchase an
ambulance.Plans include transitioning emergency medical services(EMS)from a contracted service
to a City department within the next two years. For the City to obtain the required state licensing to
operate the service, the addition of a fourth ambulance marked as the "City of Friendswood
Emergency Medical Services"to the vehicle fleet is necessary. The capital lease was approved at the
April 3, 2023 City Council meeting. The capital lease agreement is five_years with the.first payment
due in FY23 and four remaining annual payments to be supported by the Tax Debt Service funds.
19. Parks & Recreation Department Tennis and Basketball Court Repairs. $86.000. Appropriate
funds for emergency repairs to the tennis courts at Stevenson Park, and the basketball courts at
Centennial Park. The courts are in poor condition and need immediate improvements. The funding
source will be unassigned general fund balance.
20. Rlackhawk Boulevard Phase JI-B — on truction. $996,218, Appropriate funds for the
construction of Blackhawk Boulevard Phase II-B. The construction contract was awarded to Triple
B Services, LLP at the May 1,2023 City Council meeting. The total contract is $2,196,217. Harris
County Precinct 2 has awarded the City $1.2 million of the contract and $304,897 will come from
Water and Sewer Working Capital for the utility infrastructure related portion of the project. The
funding source for the remainder, $691,321,will be the Street Improvement Fund.
21. Blackhawk Boulevard Phase II-B — Materials Testine. $36.235, Appropriate funds for the
materials testing related to the construction of Blackhawk Boulevard Phase II-B. CMT Technical
A motion was made by Councilmember Branson and seconded by Mayor Pro Tem Erenwert to approve
Ordinance No. 2023-15,related to Item 1 LA, as submitted. The vote was the following:
Ayes: Mayor Mike Foreman, Councilmember Trish Hanks, Councilmember Steve Rockey,
Councilmernber Sally Branson,Councilmember Robert J. Griffon,Councilmember Joe Matranga,
and Mayor Pro Tem Brent Erenwert
Nays: None.
The item passed unanimously.
ORDINANCE NO. 2023-15
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS, AMENDING ORDINANCE NO. 2022-19, PASSED AND APPROVED
AUGUST 29, 2022, SAME BEING AN ORDINANCE APPROVING AND ADOPTING
City Council Regular Meeting Minutes
June 5,2023
Page 14 of 16
THE CITY'S GENERAL BUDGET FOR FISCAL YEAR 2022-23, BY APPROVING
"BUDGET AMENDMENT VIII" THERETO; PROVIDING FOR SUPPLEMENTAL
APPROPRIATION AND/OR TRANSFER OF CERTAIN FUNDS; PROVIDING FOR
SEVERABILITY; PROVIDING OTHER MATTERS RELATED TO THE SUBJECT.-
AND PROVIDING FOR THE EFFECTIVE DATE.
12. CONSENT AGENDA
A motion was made by Councilmember Matranga and seconded by Councilmember Branson to approve
the Consent Agenda,Items 13.A through 13.N. The vote was the following:
Ayes: Mayor Mike Foreman, Councilmember Trish Hanks,Councilmember Steve
Rockey, Councilmember Sally Branson, Councilmember Robert J. Griffon,
Councilmember Joe Matranga,and Mayor Pro Tern Brent Erenwert
Nays: None.
The item passed unanimously.
A. Consider approving an engagement letter with Gabriel,Roeder,Smith&-Company for actuarial
valuations and authorize the mayor to execute said document.
This item is for financial reporting purposes. Said reporting requires an actuarial valuation of at least
biennially for OPEB plans with a total membership greater than 200. In the off year when a full valuation
is not performed,the City will receive a"roll-forward"report which provides an updated liability,updated
assets, a liability reconciliation from the prior measurement date, new deferred outflows/inflows, new
OPEB expense, and new sensitivity disclosures. The current report will be prepared as of December 31,
2022,for fiscal year 2023 and a roll-forward valuation report will be prepared for fiscal year 2024.
B. Consider authorizing Change Order Number 1 for the Blackhawk Building Renovation Project.
This item approves Construction Master's Change Order #1 to provide audio visual equipment and
installation to the Blackhawk Building's large conference room. The cost associated with this change will
be to provide audio visual equipment in order for the room to host meetings in person and virtually similar
in function to the conference rooms at City Hall. The contractor's original scope of work was to provide
all necessary electrical and low voltage infrastructure for future audio-visual needs in the conference room.
Changes to the original scope of work include labor,equipment,and materials to complete the installation
of a new audio/visual system by Intergrated Technology Solutions. This purchase will be funded with the
Blackhawk Building Reconstruction Project's Furniture,Fixtures, and Equipment funds.
C. Consider authorizing the final acceptance of Avalon at Friendswood's Public Improvements Lift
Station Project(LS#42).
City Council Regular Meeting Minutes
June 5,2023
Page 15:of 16.
D. Consider authorizing the purchase of cascade equipment and installation of equipment for the
Fire Station#2 Reconstruction Project from Municipal Emergency Services,through
Sourcewell Purchasing Cooperative.
This item authorizes the purchase of cascade equipment that is needed by the Friendswood Volunteer Fire
Department to fill oxygen tanks used in training and live fire situations.This proposal is for the equipment
and installation of the equipment.There will be a future proposal-to alter the compressor room that this
equipment will be housed in to meet ventilation requirements. This purchase will be funded with the.Fire
Station#2 Reconstruction Project's Furniture,Fixtures, and Equipment funds.
E. Consider approving an emergency purchase of a pump for sanitary sewer Lift Station#2.
This item approves submersible Pump#6(which is one of our only two larger pumps at this lift station),
is in need of immediate emergency repair/replacement. These pumps are critical,as they serve as the last
step of pumping resource during an emergency peak flow event. Public Works staff has urgently
coordinated with an approved vendor through the Buy Board Cooperative Purchasing Program, who is
fortunately a vendor whom we have already conducted other separate sanitary sewer pump lift station
repairs and/or purchases with. The cost to repair this specific 168hp/460V/12" discharge submersible
pump is$67,425.00 with a 20-to-26-week lead time to repair and only comes with a 1-year warranty-: The
cost to replace it with a new pump is $95,725.00,with an approx. 28-week lead time and comes with a 3-
year warranty covering 100%parts and labor.
F. Consider authorizing a lease agreement with Motorola Solutions for body-worn cameras for
the Police Department through the Texas Department of Information Resources.
This item authorizes a five-year agreement with Motorola Solutions to lease 75 body-worn cameras,
including associated equipment and services,in the amount of$491,000(in five equal annual installments
of$98,200). This agreement includes cloud storage for BWCs and.In-Car (42 systems), warranty, and
replacement of all BWC devices during the contact period. This is a contract pricing quote-through Texas
DIR-TSO-4101. Funding for the lease payments will need to be included in the City's General Fund
operating budget for fiscal years 2024—2028.
G. Consider appointing Mr. Gregory Reid Wiseman as the City of Friendswood's direct
appointment and re-appointing Sawyer Blackburn as an indirect appointment (nominated by
the Board)to the West Ranch Management District for a four-year term, set to expire on June
1,2027.
H. Consider appointing(i)Paul Marx,(ii) Elmer Johnson and-(iii)Arden Hill to the Friendswood
Downtown Economic Development Corporation for another two-year term beginning on July 11,
2023 and ending on June 30,2025.
1. Consider appointing(i)Travis Mann and(ii) Thomas Hinckley to the Planning and Zoning
Commission for a two-year term beginning July 1,2023, and ending June 30,2025.
City Council Regular Meeting Minutes
June 5,2023
Page 16.of 16
J. Consider appointing Phillip Ratisseau and Glenn Mintz as regular members and Les French as
an alternate member to the Zoning Board of Adjustment for a two-year term beginning July 1,
2023,and ending June 30,2025.
K. Consider appointing (i) Margaret Pickell, (ii) Dr. Donald Stran, and (iii) the City's Animal
Control Supervisor to the Animal Shelter Advisory Committee for a three-year term set to begin
on July 1,2023, and end on June 30,2026.
L. Consider approving the ad valorem tax report for April 2023.
M. Consider approving the minutes of the City Council Special Meeting held on May 17,2023.
13. ADJOURNMENT
With there being no further business to discuss,Mayor Foreman adjourned the June 5,2023,City Council
Regular Meeting at 6:49 P.M.
AV
ike Fo an, ayor
Attest
4F FRIENps
-�. r O
Leticia Brysch, City Secre tr,.; . ":A p