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HomeMy WebLinkAboutCC Minutes 2024 06 03 RegularMINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD JUNE 3, 2024 THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD MET IN A REGULAR MEETING ON MONDAY, JUNE 3, 2024, 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: John Ellisor Councilmember Trish Hanks Councilmember Sally Branson Councilmember Joe Matranga Mayor Pro Tern Robert Griffon Councilmember Brent Erenwert Councilmember Mike Foreman Mayor Morad Kabiri City Manager Karen Homer 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 Ellisor who arrived at 5:42 p.m. 2. INVOCATION The invocation was led by the Friendswood Police Department Chaplain Moe Mays. Chaplain Mays stated that he wanted to take a moment to share the loss of a Retired Friendswood Detective William Keith Steele who passed away on May 24, 2024. Keith Steele was hired in 1968 and was the very first patrol officer in Friendswood, was an auxiliary police officer and retired from Friendswood PD on July 31, 2001. Chaplain Mays extended prayers to the family and colleagues of Detective Steele. 3. PLEDGE OF ALLEGIANCE - United States and State of Texas Mayor Foreman led the Pledge of Allegiance of the United States and the Pledge to the State of Texas. 4. COUNCIL COMMENTS AND REPORTS Mayor Foreman stated that the City's Memorial Day event was truly an outstanding Memorial Day, and probably one of the best ones yet. He noted that the event was very well attended, and the honorary speaker was one of our own, John Sasson, who served in the Marine Corps and Afghanistan. Councilmember Branson welcomed Councilmember John Ellisor to his first meeting. She stated that she also really enjoyed the Memorial Day Celebration and John Sasson did an excellent job. Councilmember Branson also noted that she had received a lot of great comments about the Hero Banners, and she extended her thank you to the group who brought this program to Friendswood, including the Sasson Family and the Friends of Downtown Friendswood Association. City Council Regular Meeting Minutes June 3, 2024 Page 2 of 29 She also noted that she, Mayor Foreman and members of the Engineering staff attended H-GAC last week where they accepted a check in the amount of $4.6 million for groundwater storage tanks from the GLO, and lastly, she encouraged residents to consider volunteering for any of the City's many organizations, committees, boards, commissions and events. Councilmember Hanks thanked Chaplain Mays for his lovely comments regarding Officer Steele and his many years of service to Friendswood. She also extended her heartfelt condolences to Officer Steele's family. She commented on the wonderful Memorial Day service, the speaker was great, and her granddaughter, who attended the event with her, was very impressed about the service, those that were being honored, as well as the wonderful banners along FM 518 showing our hometown military heroes. Councilmember Hanks also gave an update about the Keep Friendswood Beautiful committee, its volunteers and the many good works being done in around the city, including the beautification efforts around town including parks, medians, esplanades, the park entrance. Lastly, Councilmember Hanks gave an overview of the Library Board and noted that the annual library gala was being planned and they are working on various fundraising activities, that help support the Library's programs, including one that helps provide a GED-type diploma for people who did not have a normal pathway to their education. 5. PUBLIC COMMENT Mayor Foreman announced the following citizens had signed up to speak for a public comment. Katherine Hale, 902 Applewood Dr, requested to speak before the Council and stated that she lives on Applewood Drive and as a grandmother is concerned about the safety of family members getting to the pool. She noted that she has served in multiple volunteer capacities in Friendswood. She also stated that she had researched on Realtor.com that cut -through traffic will reduce her property value by a significant amount. She further stated that she believed that this item had been voted down in the past and would instead like to see a drainage plan for this area. Lastly, she noted that she did not want a road. Tom Christ, 812 W Castlewood, requested to speak before the Council and stated that he moved to Castlewood over 48 years ago and there were not a lot of homes or roads at that time. Concrete roads were brought in, and the existing swales became ditches that were not maintained by the City, even though he was informed that they would. There are issues with speeding and safety on Castlewood Drive and would like speed bumps to be considered to address this issue. Jason Jones, 1917 Sandy Lake Dr, requested to speak before the Council and stated that Friendswood is a city on a hill, with good school districts, successful students, and a green city. He stated that he believes in legacy and how elected officials vote will decide theirs. Deborah Winters -Chaney, 1008 Applewood Drive, requested to speak before the Council and stated that she might be one of the few who has read the documents on the agenda and still, she does not have full understanding of the TIRZ subject and wished that there had been a public meeting that explained everything related to the TIRZ. She stated that she wanted another option other than to open Castlewood to a four -lane boulevard as she has concerns for the safety of the neighborhood children. 6. COMMITTEES OR SPECIAL REPORTS A. Present the City of Friendswood Five Star Spirit Award for the First Quarter of 2024 to Mitchell Blanchard and Jason Haritos, both of which are Laborers in the Parks and Recreation Department. City Council Regular Meeting Minutes June 3, 2024 Page 3 of 29 City Manager Morad Kabiri presented the item and stated that he gets the honor and the privilege of recognizing outstanding employees that have been voted the Employee of the Quarter, so to speak, by their peers and by residents. Mr. Kabiri presented the award to two employees from the Parks Department, Mitchell Blanchard and Jason Haritos. Mr. Kabiri noted that the two outstanding gentlemen were nominated by a resident who had brought his children, a daughter and son, fishing at Lake Friendswood. They attempted to fish and after not having any luck, they had started to pack up to leave. At about that time, Mitchell walked out onto the dock and threw a line in the water, which got a bite instantly, he then handed the fish to the little boy. Shortly thereafter, Jason did the same with the daughter and they ended up limiting out on fish. Both kids were ecstatic about their experience and the father took a moment to write a thank you note for endearing fishing to them in the future. Mr. Kabiri thanked Mitchell and Jason for taking the extra time and making the family's day enjoyable. 7. COMMITTEES OR SPECIAL REPORTS A. Receive the Library Advisory Board's Annual Report. Ms. Diane Freeman, Library Advisory Chair presented the item and stated that she was going to go over three different highlights in her report. She noted that the first was on the Board, the next on the Friends of the Library, and the third being the Library itself. The highlights were the following: The Board supports the Friendswood Library in their vision to engage, educate, entertain, and empower every family member and business in the community to the best of their abilities. She noted that the whole point of the Board is to support the Library's needs in order to be a vibrant location where everyone feels comfortable at any age. The Board has supported efforts to achieve and promote the Library's mission through the discussion of policies, long-term goals, services, and programs. It also supports Friends of the Library's fundraising events such as the galas and book sales as well as assisting the Library in meeting its goals and long-range strategic plan. The Board is also very involved with the Gale Excel High School Completion Program, which has helped three young adults attain their high school diploma. At one young man's graduation, his friends and family almost filled up the entire Community Room, which is pretty big. They were so proud of him, and the board members were so proud to support him and all of the graduates. The Friends of the Library is currently planning the Camelot themed gala, which is scheduled for March 2025. As a result of the monies that have been raised for the previous galas along with the monies from the book sales, they have been able to purchase new makerspace equipment, a sublimation printer, astronomy equipment, and new mobile shelving. They have also provided scholarships for this Gale Excel High School Program and just this year they awarded scholarships to two students in Friendswood High School. With respect to the Library, they received for the loth consecutive year in a row, the TMLDA Achievement in Library Excellence Award. The Library hosted many different programs, including the annual Summer Reading Programs, Health Fair, ZakiCon anime event, Craft Fair, and Friendswood Poetry Event with participation from local and international poets. The Library staff also provided outreach services to schools, daycares, retirement committees, and home bound residents, and now the staff gets City Council Regular Meeting Minutes June 3, 2024 Page 4 of 29 around in their brand-new outreach van. Lastly, the Library added new STEM technology classes such as 3D and sublimation printing, robotics, STEAM night programs, and database training. Mayor Foreman thanked Chairperson Freeman for her report and all the wonderful work being done with the Library. B. Receive an update regarding a Hometown Heroes Veteran Street Banner Program. Ms. Meg Crowley, President of Friends of Downtown Friendswood Association (FDFA) presented the item and stated that Mr. Richard Sasson, their Committee Chair, had brought the hometown heroes concept to Friendswood. She noted that now that the program is up and running, they just wanted to come back around and thank the Council and staff for supporting the program. Ms. Crowley stated that this first year resulted in 28 banners being placed along S Friendswood Dr, which exceeded expectations. She further stated that each year, applications for banners will be accepted from March 1st until April 15th, with the banners being placed in time for Memorial Day with new banners. Ms. Crowley noted that the banners could be used for two years and then would be given back to whoever submitted the application. Councilmember Erenwert asked that staff work with FDFA to promote the program, maybe via a link on the City's website. Mr. Kabiri stated that staff will assist FDFA with the advertising and communication of this program. Ms. Crowley again thanked the Mayor and Council for their support of the program 8. WORK SESSION TOPICS A. Receive and discuss a presentation regarding the City of Friendswood Multi -Year Financial Plan. Finance Director Rhonda Bloskas presented the item and stated that the City's multi -year financial plan for Fiscal Years, 2025 through 2029 is a planning tool that projects the general funds revenues and expenditures over a five-year period using historical and trend analysis. Ms. Bloskas stated that this plan is what is being used as the basis for the city's upcoming FY25 budget, however, she noted that the information is very preliminary, and projections will be adjusted throughout the budget process and as more information becomes available. Ms. Bloskas noted that based on preliminary values received from the Galveston Central Appraisal District, staff projects an increase in values of 6%, this includes residential and commercial properties, as well as an estimate for any new home construction. However, most of the other revenue sources in the plan are projected to increase by 2%. City Manager Morad Kabiri interjected that as it relates to those preliminary projections, a few months ago everybody within the community received their new appraisal value from the Appraisal District. He noted that those statements have two figures, one that estimates the fair market value of the home and then the other that estimates the 10% cap that exists on residential properties. So, of the 6% that is being evaluated right now, the staff does not know the full impact as a number of homes will be under protest. As such, staff will have a better idea of the values later on this summer, when the certified values are received. Ms. Bloskas stated that as it relates to the revenue planning assumptions, the FY25 general fund revenue is projected to be $41.2 million with property taxes being the city's largest source of revenue. She noted City Council Regular Meeting Minutes June 3, 2024 Page 5 of 29 that to calculate the $22.6 million in revenue, the staff used a tax rate of 52.13 cents; however, this calculation did not include property taxes for debt service, which is accounted for in a separate fund. Ms. Bloskas noted that the sales tax revenue is the next largest source of general fund revenue at a little over $9.5 million; however, this amount did not include the sales tax revenue generated for the streets maintenance sales and use tax and the Friendswood Downtown Economic Development Corporation sales and use tax. Of the remaining revenue sources, franchise taxes are 5% of total revenues generated from utilities, and non -tax revenue is about 17%, which includes fines, building permits, Parks and Recreation fees, interest earnings, as well as the inter -fund transfer from the water and sewer fund. Ms. Bloskas went over a slide that provided the detail on why a tax rate increase is anticipated in FY2025. She noted that historically, the city had adopted the No New Revenue Rate, and in FY24, the tax rate that was adopted was a little above 50 cents, which was well below the voter approval rate, and included any unused increment. Ms. Bloskas noted that the city has approximately 5.3 cents in unused increment from staying well below the maximum allowed rate without triggering an automatic rollback election. Additionally, as previously discussed with the Council and with their direction, the EMS will become a department of the city in FY25 with an associated costs of approximately 1.3 cents on the tax rate. Other items that impact the anticipated tax rate increase include increases in supply services and maintenance costs which are estimated to increase 5%, while personnel costs are projected to increase by 4%. Additionally, $500,000 to be used for deferred maintenance items is built into the plan, which also adds almost a penny to the tax rate. She noted that the forces at work funded in the plan are estimated at $1.2 million, and these are required expenditures that are beyond the control of city staff, no decision packages submitted by city departments are included in the plan. Property tax revenue: • Historical adoption of NNRR Tax rate adopted in FY24 - $0.500 Tu me used in the MYFP for FY255 - 52.13 cents Unused tax rate inc e,nent (2021-2023) available - 53 cents • Projected use of 2.6 cents Need for tax rate increase due to: EMSatingC Costs i creasy Operating Costs - 5% increase (1.6 cents) Personnel Costs - increase cents) Deferred Maintenance (0.9 cents) Forces -at -Work $1.2M (Tmxt FuNoto) • Decision Packages $1.BM(UNFUNOED) Ms. Bloskas went on to discuss the expenditures and the assumptions included in the multi -year financial plan. Staff is projecting that there will be a 4% increase each year in wages and benefits, with the 4% taking into consideration the projected salary adjustment for the citywide compensation study that is in process now. Ms. Bloskas noted that based on historical trends, non -personnel expenses included in the plan are projected to grow about 5% each year. With that said, she noted that based on the preliminary assumptions, the FY25 preliminary expenditures are estimated at $41.2 million, with personnel costs being the largest part of the city's budget at 66% of total expenditures. Also on the slide, the EMS onboarding was broken out from the other forces -at -work and shows a net of the reduction in the Friendswood Volunteer Fire Department (FVFD) contract, due to the elimination of the EMS contract, and the revenues from EMS billing. City Council Regular Meeting Minutes June 3,2024 Page 6 of 29 Ms. Bloskas did not go into detail on the forces -at -work slide but allowed Council time to review. OfIT OESCAIPTION oFx TIME COST o13naFR• CT31T TOfAI ovlElcE IIlVBTIIIE fO08tlS F2[T IOTAI OE5 EMS EMSOnba M FVFO Ftr FVFORre Contract Reduction 10,000 2,%3,WS 2,WI,095 1,035,000 $1,918,MS 64,195 64.1% 247,981 $183,796 FM EMS EMS Contract Eliminatbn PO Patrol 12-Hour Shots• WhIeW 0 1,022,8M $1.022,8M 93.725 30S,299 399,024 255,3M $143,634 n Mmin Clued Poecln ..-I Aofitin [onsuWnt Po edrNn -- AmedRadon 13,000 13,000 $13,000 4431" 26.920 66,920 1.920 $6S,000 PO Pwd F60 School Resource OFBcer Inueau EHG Additional Whicle Stormwater duties) 91,582 91,582 $91.582 So'" 1.500 51,500 S51,500 P&R Parks Maintenance Worker+Vehide+to FTE 62.000 R9,432 t2lalm i i 150432 Al FORCES AT WO $2S8 J23 $D W3 1 $D T89 TM $ZAU.M I 0,XTJ Mr. Kabiri stated that many of the numbers mentioned by Ms. Bloskas were decided either over a year ago or several months ago, through Council's approval of various contracts, and the costs associated with these contracts are included in the base budget for the purposes of this analysis. Ms. Bloskas noted that the City's fund graph slide is loved by everybody. The blue bar represents the City's revenues, the red is expenditures, and the green bar represents the 90-day reserve. The blue trend line represents what happens to the City's capital improvement reserve if all of the forces -at -work in the plan are funded, and then the purple line shows what happens to the capital improvement reserve if all of the forces -at -work and submitted decision packages were funded. Mr. Kabiri stated that he wanted to expand a bit on Ms. Bloskas earlier comments regarding the impact of the multiple years of adopting the No New Revenue Rate. He noted that for a period of 15 years, 10 of those years the City adopted the No New Revenue Rate or less, and the years in which the No New Revenue Rate was not adopted was because of voter approved tax increases. As such, in order to pay for the voter approved bond projects, the City had to issue that debt. The slide shows that the impact of doing that over a number of years shows a depreciation of that light blue line, so on the left side of the chart, the light blue line represents the funds available above the 90- day emergency, which was nearly $7,000,000 back in 2020. Over the course of the last four years, that amount got depleted to where it is now just a little over a million dollars. However, in reality, the City is about $400,000 over the 90-day reserve; while staff continues waiting for reimbursement from the State and Feds on some grant funds that the city advanced. City Council Regular Meeting Minutes June 3, 2024 Page 7 of 29 snnmmc 5m.omma snmomv Mr. Kabiri further noted that as a part of the upcoming budget cycle, he wanted the Council to consider the possibility of a deferred maintenance line item, which was mentioned earlier in Ms. Bloska's presentation, as well as potentially, a line item for grant related advanced funding. This last line item would assist the City in capturing grant opportunities, similar to the one mentioned by Councilmember Branson regarding the HGAC's $4.6-million-dollar grant. He noted that while the City is thrilled tickled with the grant, staff has to find a way to fund the $4.6 million up front over the course of the next three years, and then wait for the reimbursement, which takes time. Mr. Kabiri noted that this is the way grants work, and though great for the city, they may create a problematic situation cash flow situation, if the City continues to apply for these types of grants. Ms. Bloskas summarized the presentation and noted that on preliminary planning assumptions in the multi -year financial plan, the City's operating reserve is maintained in FY25. Staff is anticipating a tax rate increase this year and in future years with the tax rate being used in the plan being the voter approved rate. The forces -at -work and employee merit are funded, but no decision packages were funded in the current year or for any of the next five years. Mr. Kabiri stated that much like past years, as further information is gathered, these figures will get refined further and this presentation is simply painting a picture of the budget based the existing information and data. Mayor Foreman noted that he felt it was important to point out that while the plan includes employee merit raises in the amount of 4%, the City is doing a study to find out how our compensation stacks up against other municipalities, so hopefully, the study will come back with an amount that will not be a bigger number than the projected 4%. Mayor Foreman stated that they needed to pay the staff well, so they do not have quality people heading out the door. Mr. Kabiri responded to the comments by noting that in the last 18 months, the City has lost five key employees for pay raises that were anywhere from a $40,000 a year pay raise to an $80,000 a year pay raise. Ms. Bloskas noted that the next steps in the budget process are the following: City Council Regular Meeting Minutes June 3, 2024 Page ll of 29 • Proposed Budget Delivered — 08/01/2024 (per City Charter) • Budget Work Session — 08/05/2024 • Proposed Budget Public Hearing (Special Council Meeting) — 08/26/2024 • Public Hearing on Tax Rate — 09/09/2024 • Budget & Tax Rate Adoption — 09/09/2024 With that, Ms. Bloskas thanked the Council for their attention and asked for comments and guidance. Councilmember Hanks stated that she understood that the information presented will be refined as they move through the budget process, but she wanted to comment that she hoped that the line item for Deferred Maintenance was kept. She noted that she has been a proponent of having a Deferred Maintenance line item for years, in order to account for these type things when we adopted the No New Revenue Rate and put off some of the deferred maintenance items. Mayor Foreman thanked Ms. Bloskas and the Finance staff for their hard work and for putting together a well-informed presentation. B. Receive and discuss an update regarding the City of Friendswood's utility rates. Mr. Jason Gray, Vice President and Managing Principal of Willdan Financial Services, presented the item and stated that because they had provided a lot of very detailed information to the Council via the agenda packet, he wanted to keep his presentation relatively short, and as there was no action on the item that evening, he could come back at a later date for additional discussion and Council could take action then. Mr. Gray noted that his company does utility rate studies and other financial work for municipalities across the country. His office is in Plano, Texas, and they have done about 300 of these types of studies within Texas for utility rate programs across the state and somewhere around 1,600 nationwide. Mr. Gray noted that there are five different areas that he is going to go over with the Council: • Background on Rates • Customers and Volumes • Current and Forecast Cost of Service • Initial Rate Plan Scenarios, and • Summary Mr. Gray began by stating that it is important to recognize that average utilities have been increasing their rates at about 5 to 6% per year and this is primarily due to the increased pace of capital improvement project costs. He noted that generally what he is seeing right now in the rate increases, they are closer to 6, 7 or 8% increases over the last couple of years, where historically, increases have been about 5% to 6%. The American Water Works Association, which is the national group that tracks these sorts of things, forecasts that water and wastewater rates will triple within the next 15 years. He further noted that the cost of treating both water and wastewater and conveying both of those products to and from the households continues to go up at a frankly alarming pace, particularly from a capital improvement projects perspective. Mr. gray further noted that one very important factor in this equation is that about 30 to 40% of utilities charge rates that do not cover their costs with many times it being deferred maintenance like what was City Council Regular Meeting Minutes June 3, 2024 Page 9 of 29 talked about earlier in the general fund that just does not get done in one particular year, but that is still a cost that is experienced. Mr. Gray further stated that sometimes it is the City's utility that is not transferring any of its revenues back to the general fund, which supports the utility fund operations through the management of the utility, generally speaking, in the HR functions, the IT functions, those sorts of things. Friendswood does that, which is why these sorts of cost -of -service studies are important in order to ensure that the City's tax rate is not paying for utility fund operations. The water and wastewater wholesale contracts that Friendswood has in place with the City of Houston and the Gulf Coast Authority are continually increasing in their costs for the same reasons that were noted earlier about cost increases. Rate adjustments are largely due to factors that are essentially beyond the City's direct control, as a lot of what makes up the rates are directly impacted by capital improvement projects and their related costs, and the contract services to purchase treated water and to send wastewater off to be treated. Mr. Gray showed the following slide to discuss its numbers. CURRENT RATE STRUCTURE • Water: Base + Conservation Tiers Volume Rate for Residential & Irrigation • Base + Flat Volume Rate for Commercial • Wastewater • Base+ Flat Volume Rate for Residential & Commercial • Winter Average Method for Residential • Outside City Limits Rate: • 1.5x Inside Rates MmYium chw by New Sue WW S a!0 (1.4MfJ,CSL Gelb. rI Baa) ,' ass ,t7 am r 147E wM•. Rw IpM 1.000 Gasva) aw0 s 5001 10.000 1 10. ]5.000 4000, n.m+ .naae So 00z aul�N.m a.ww N.v sa arx� s aee +- a ,m cz.m r r Mmm n c' M. M r ,xsn va4e (Wl.aoo ) E ♦m Nninaan Ch O Gy Mew S bB'-W' E ass ,• a.s azw T z14743 r uo mm r uan r r sMasen VaWrte Rae IFH i.OLC Gaeau) 01M s 3.00, ae0 AM a.000 a a.e01 M.= 25 � eo: f' 2rJ0 nr n.ae z n.ae V.1. Pm (M I Gabe) f 429 ' NcnNry p3N CafeG on an an�M1r m•Mu aw�pe naw mslvP� Nwnum uwpe h Mews srsr s n 080 ra' 7 27 2W 3- r r w C 27M s zr ae o n VaNma Rae (W 1,000 Gabel f 420 xo1E amc. cly xwe a wuewaw c�e�.e ,.s. I.N. cuslor.r R,l. He noted that essentially, this is the current rate plan and discussion about rate plans occur simply because there are a variety of different rates based on who the customer is, how they use the water, and how much of it they use, those sorts of things. Friendswood has what he considered a fairly typical type of rate plan for Texas at least with a base charge and a charge by volume. Mr. Gray stated that the base charge is related to having the meter there and to having the water available to the meter, regardless of whether you use it or not. This charge is there because there is a significant cost associated with ensuring that there is availability of that water, and that is what the base charge is essentially designed to recover. Additionally, the volume charge occurs when there are a couple of different conservation tiers, this is called an inverted block tier structure, by where the price goes up the more water is used in order to try and encourage conservation. Friendswood has four different tiers at various rates, there are 3,000 gallons City Council Regular Meeting Minutes June 3, 2024 Page 10 of 29 included within the base charge, and if anybody uses less than 3,000 gallons, they get charged the base charge only. It is only when the 3,000 gallons are exceeded that the volume charge is accumulated. The same kind of concept is used with the City's wastewater, except there is no tiered structure because there is no conservation associated with wastewater. Therefore, generally speaking, Friendswood has a flat rate on volume, and then they also have base charges for the sewer component as well. Mr. Gray noted that for those outside city limit rates, which is a fairly small component of the overall revenue, the rates are one and a half times the inside city limit rates, and that is for a variety of reasons. Mr. Gray noted that at this time, the City charges customers on a bi-monthly basis, so they took a 20,000- gallon bi-monthly charge, and calculated what the costs would be for 20,000 gallons of water and 10,000 gallons of wastewater. Mr. Gray showed on the following chart that generally speaking Friendswood is about $40 less than the state average for that use profile, which is pretty close to your average use across the community, and about middle -low, low side of the middle, in the comparison surrounding communities. CURRENT BI—MONTHLY CHARGES I COMBINED W&WW �W.m 53w.ao 525a.ao smw sIDERA) ffiY101+catl my We er R.s.b., L.,.W sup, U" GCY111[M fI1H FYe� AIti1 PrrYrtl �nrwrnwu City Manager Morad Kabiri added to Mr. Gray's comments by noting that several of the communities on the left-hand side of the chart are still on groundwater, so they are in Fort Bend County. They are not fully mandated to be at 80% usage, so groundwater is much less expensive and have limited treatment requirements. Mr. Gray stated that Mr. Kabiri was right, the water source is one of the top two factors that go into the actual costs to provide the service, and as it relates to the purchase of surface water or pump groundwater is significantly less expensive, generally speaking, today than surface water; however, over time, that may not necessarily be the case. As it relates to customers and volumes, currently Friendswood has 14,400 water accounts and about 13,500 wastewater accounts, which is typical. He noted that not only are there a couple of water customers on the residential side that do not have wastewater because they have septic systems, but there are also a City Council Regular Meeting Minutes June 3, 2024 Page 11 of 29 significant number of sprinkler accounts that do not have a wastewater account that goes along with it. Additionally, oftentimes, with commercial properties there will be multiple water accounts that are only paid through one wastewater account. Mr. Gray noted that they are projecting, along with city staff, a 0.7% increase in the number of water accounts and wastewater accounts over time and they will grow over the next ten years from 14,400 up to a little over 15,000. He further noted that there is a slightly higher percentage increase on the wastewater side simply because it is starting from a slightly lower base, and for every new water account, they are assuming that there's going to be a wastewater account that goes along with it. Mr. Gray stated that from the billed volume trend, which is not what the city purchases but what is actually billed. He noted that every water system has some differential between how much water is received and how much water can be billed due to hydrant flushing, leaks, firefighting, and other things that do not get metered. Mr. Gray stated that Friendswood's billed volume trend has gone up significantly over the past couple of years. The study used a baseline assumption of about 1.87 billion gallons on an annual basis and then escalating that up as Friendswood grows. He noted that they do not expect the city's use profile to change in any significant way, but as the community grows, the amount of gallons that goes through the system will increase as well. Currently, residential use inside the city limits makes up over three-quarters of the total water and when three-quarters of the customers are residential, cost increase to provide the service, but there is no significant way to increase the water system's revenues without having an impact on the residential side in some way. Many communities prefer to have commercial or industrial, which is understandable, particularly as those are business write-offs related to the cost of doing business for those commercial entities. Mayor Pro Tem Matranga asked if by inside versus outside accounts, he was referencing those accounts in the city limits of Friendswood versus those outside of the city limits. Mr. Gray noted that he was correct, and Friendswood has a fraction of customers, both commercial and residential, outside of city limits that don't even register. Mr. Gray stated that the bi-average monthly use by customer class, residential inside the city limits, is just over 19,000 gallons. The small number of residential customers outside the city limits use a little bit higher level of water. The commercial properties inside the city limits use about 34,000 per month, and sprinkler account inside city limits is about 21,000 gallons on average. So, during the summer months, the usage is actually quite a bit more than during the winter months. As it relates to the cost of service, there are four different components that impact it, and they are operating expenses, capital outlays for both the in -budget capital projects as well as the debt -funded capital project capital improvement program, debt principal and interest for both current and future debt issuances, and then transfers. Mr. Gray noted that they used the same assumptions as those in the multi -year financial plan, along with their own to establish what an accelerator in their modeling for each and every line item in the City's budget. He noted that they have different accelerators for personnel and benefits than those they have for chemicals, vehicle purchase and other items. There is a lot more detail of this in the model provided to Council, but generally, certain expenses increase at a much faster pace than inflation for a variety of different reasons with the biggest one being construction. There's a whole construction cost inflation index that's separate from the consumer price index and these are the kinds of things that the City's utility faces. Especially those that are at a heightened level of inflation over and above the general CPI that everybody experiences within the marketplace with the biggest impact on the City's rate plan being the wholesale providers and new debt service that will be required to fund the City's CIP. City Council Regular Meeting Minutes June 3, 2024 Page 12 of 29 Mr. Gray made the following points on the slide noted below: TEST YEAR COST OF SERVICE Wttbr. S113 Mullen Wastewater: $9.1 Million aon,i mni.y, 1� lerrliaa� en Mwta�m os ane, Pn • On the water side, which is on the left side of this chart, there is an estimated $11.3 million annual budget, 23% of that goes to purchase water, and 37% of that goes to current debt service for a combined 40% of the overall cost and personnel services are just 15%. So, this shows that there are not a lot of operating expenses as a component of the City's overall costs. On the wastewater side, in a similar way, the wastewater treatment plant, the sewer expenses, and the contract services are about 38% of the overall budget, with debt service being 15% and the transfer to the City's general fund is another significant portion. One of the things that Friendswood does well is recognize the full cost of providing these services and transferring that money back into the general fund appropriately. Mr. Gray stated that the City of Houston water rate increases are projected, recognizing that the costs generally do, and will continue to go up. He noted that at this time, the City of Houston rate per thousand gallons is 93 cents, but the City's effective rate goes up to a $1.24 as the effective rate includes the other components such as the cash calls, the debt service, and other fees associated with the City of Houston providing water to Friendswood. Mr. Gray stated that they expected this effective rate to increase at a pace of about 5% a year. The other thing driving the total cost is the increase in the amount of water being purchased and they project and increase from about 2.13 billion gallons to about 2.28 over the next five or ten years, which tracks with the City's 0.7% increase in the City's population. This year, the city is expected to pay the City of Houston about $2.7 million and close to $4 million at the end of a ten-year period. The same kind of idea relates to the City's wastewater side but with the contract provider being the Gulf Coast Water Authority. Currently, the Authority treats about a billion gallons of wastewater for Friendswood, and this is expected to go up to 1.1 or 1.1 l billion over the next ten years, and the cost associated with it increasing from $3 million today up to about $4.7 million over those ten years. Another of the City's primary drivers of the rate plan is its 5-year capital improvement plan that equals $63 million on the wastewater side and $51.5 million on the water side. Mr Gray noted that the capital improvement plan includes projects planned by the staff for the next 5 years. These projects have a total number of bond issuances, or debt to finance, is millions of dollars less than the total capital improvement projects and that's due to the grants and partnerships the City has successfully acquired, as well as the use of general fund or utility fund reserves where necessary and appropriate. City Council Regular Meeting Minutes June 3, 2024 Page 13 of 29 PROJECTED CAPITAL IMPROVEMENT PLAN (FY24 - FY29) R- Waer Mum R.pecemM (COH Cann CM r"` a" "oW p m ESTI 124' FinaresnPma Tray IF Lmp 6evnr 12' Oawpxom. Eaal Lmp 12 rk ' GmuStpap Tana ®NN I and Pump.nprowmmn (Funam eN. Sena 201a A o Clenn E..,, 12' CMppx C, 0 Cmm., If SuRau wMar solar, e2 Nu cprvda oennm, v Surtan wan, suucn 4 Pipe Red Reboean Prgea iCwe r AnrWea RapMa^ma InprmennM - 13 Waller. 1:3 KW. V3 Sure, WMan esmu B es*J, nk 6W Peas. 4c upiLee TOTAL WATER PROJECTS 5 lam", Upa¢aq LM SON, R 5 Fdp We. 5 15 W111m 00112000 %,mR. Lap Saapn 23 ama Farce Man ' 5.392.1m, a mim U Am,,ea' Au,me W. 11.0100.00) a 410.000 F, Oe.NpLMT Lam su," saes ] 1M.OM 3180O00 Weraepm Len simemr, Sumer a.m,= 3033140 Let soap, F2 3.0010.000 2.041 Uppe. Let Summ, m ana F.. Ram 2,51111.1140 23W.M0 Canvas Creek $enor ups'Pap 2.am,Om I.aW.MO Ln a. P.., I 1.aM.aM 1.ON.QA' ugae Let S. #30 1.e48.501) M3.71a mIa_mi Senn Luse, MaM It C4erap- FWea el YuruM pupa. 1.8110,IX1) MIND G,W,p,mra: c_.a Cumk Gokp Senn Vn 1.1M.011C, 316.317 U. LF, a.. la 1A312M f 51,434553 ume';!F.. Is—limi.em, I4111M Lepipmon.2a Remnmsm, I.5M.000 Let Set,,, Q] upprW. 1.541 Su S26faepn Rui o Wm'.., Sem., sum r • 1.e53.Im LA Suwn n22 fleMOYhtipnWeplaoem2m 1.]nm Sake!ROM FaMOLeaSSanl+ar,,Seuar 1]111(Am aW WWTP Aeteum Uppeanl WnRaO Cap 11MAM Leta tr Sown FaeSape a 1.OM.000 Ppe Rati R.Y .anpr Pum,mm (Gorr) M3.J50 6-1�31YaSx I ] NW 1 3 5aM1 \WdYl esml NyMmpner MS.IM Ciampi H Ari h Cgpiduee a00.OM .PlereBesfeme 54:MankBM Pnap 315.'Jti Iaesieu p«nmar al carom cr.w GravaS sane Lae nemo TOTAL WA STEWATER PROJECT 5 { WTIAST So, while there is a significant amount of new debt that is projected as a part of the financing for this capital improvement plan, there are some grant funds that are coming in and ARPA funds that are being used for some of these projects, which helps with the costs. Mr. Gray made the following comments on the following chart: a.1031XyI41XIOt2:Z61kIIII 6XYtIe1:10Xy e ped .r need wo xma a 1a.smaup 5 sam.mp 5 u,Ompm ' � $nc IDES %D'V. ,ItO umams, ELIkmmO po SR6 190'O,CW 0.a.O..fU Il.(M.ma .11 9,.me Afm.Lm 4.510.01 $Eso 3pIB 11.m1.Cm 95MO`I` 15LOOA ID19 B, 15 v.01 4.11A® 41LLT,OL NM I,.,. lam.. $'.:> Tuel 5 im.)54pm S KaS4® 1 "Weeme $s0 m, mta Ms mis AE1 ma IDn mn . wMn .wWrrrter Mr. Gray stated that the total amount of new debt issuances over time varies each year depending upon the projects. Unfortunately, there's many of the City's projects and associated costs that are front -loaded in the first couple of years of the plan, which is going to have an immediate impact on the recommended rates. The chart shows that the City's total debt service payments between water and wastewater is projected to increase from $5.3 million in the current year up to almost $5 million within a ten-year period, so nearly doubling over that ten-year period for debt service as well. City Council Regular Meeting Minutes June 3, 2024 Page 14 of 29 FORECAST DEBT SERVICE PAYMENTS Yw C1a7an Panea9r COmnt Feraraat row 2024 5 4,163,100 5 - 5 1.155.175 9 - 6 5,318,275 2025 4,164,148 359.107 1157,977 979.363 6,680,615 M26 4219,104 1,338,490 1.153.846 2,350,519 9,061,959 2027 4.129,934 1.860,828 1,158.066 3,068.733 10,217,561 ma 4.133,254 2121997 1.158.971 3.362.548 10.776,770 2029 4.243.063 2,742,272 1157.337 3,460.487 11,603,159 2030 4246,702 3,052,410 1,15615% 3.721.656 12,1r.m M31 2459,797 3.052.410 1,158.403 3.826.123 10.496.733 2032 2.461,407 3,052410 1.156.493 3,826,123 10,496,433 M33 2460,684 3052410 1156,116 3,826,123 10,05.333 Below is the City's total cost of service breaks down: FORECAST WATER & WASTEWATER COST OF SERVICE f114 CON 6 W6 COas[= 29.1X & TIX] f05 FY33 Cotta6 =:28.SXMTo1a1CD5 u 61a Ls Lu I ss S ]01 IDri A% >ID IDO IDtl 3B5 a9l ]W2 Mll Mr. Gray stated that as it relates to the proposed rate plan scenarios, he noted that they did not find anything within the City's existing structure that needed to be changed. He noted that the city has a good rate structure, a good separation between tiers that allows the customer to consider whether they are going to continue to use water every day or twice a day or whatever the case may be. Having the base plus the inverted block, again, is a very common structure within Texas that is backed up and supported within the customer classes. Mr. Gray stated that the bottom line of this study is that over the next three years, because of the relatively significant debt issuances, they recommend that in order to cover all of the costs and to meet all financial metrics, the City will need about a 7% increase on water and about an 8% increase on wastewater in January of 2025, the same in January of 2026 and then that will begin to go down, particularly on the wastewater side in January of 2027. Because cities sell their debt which can go up and down on any given year, they together a full 10-year plan, but recommend adopting the noted rates no further out than about three to four years, depending upon the fluidity within the community. City Council Regular Meeting Minutes June 3, 2024 Page 15 of 29 Mr. Kabiri added to the comments and noted that with recently installed automated meters do a better job of accurately depicting the amount of water usage, which is one of the biggest factors in the increase of billable gallons that were identified in the presentation. He further stated that if staff sees that the rates are coming in a lot higher, future rate increases can be delayed or postponed associated with it. Mr. Gray identified the recommended rates for the three periods starting in January of 2025 2026 and 2027 as noted below: RATE PROPOSAL I WATER M.hQ Minmum CY1m� SJa' S ass S 2538 s x95 5 n.8s I' S ass 5 x]8 5 2595 5 28,85 I1/2- S 120 5 ASS 5 ll15.1S S 12285 2' s Ws 1 S In.n 5 A&M s M60 Vdu Rye Pw1 W9 GW I sM 3.001 III= 311 ib SA 395 IO,W 2s,= Ilu 830 IW 490 25,W1 AWw 6-02 6.6 690 >W MN[MY M'wnum Qrw 3/t• n55 25. IC96 I885 1' 2355 2510 26M95 2885 13�1' YlG3 ASS 11265 r 1n.N 2n.n IUM 168m 1q.w r 28S.43 283.n 303.60 r 463.nI" MIS 530.95 r 66.03 W W fii.q Ma Sn.n I.M r 1iStn I,153E 39ss60 I.W uA.n 18s3A Issss vw 0 s8 n. n' 135Ln I,n3S l,sss.6c 16u w I Mcw 4MI SJS 5.60 GM Mr. Gray went over the impact of the suggested rates on the bill. So today, a 20,000 gallon, using the middle of the tier selection, a 20,000-gallon bimonthly bill with 10,000 gallons of wastewater would be $349.62 on a bimonthly basis. Mr. Gray noted that if the proposed plan was adopted, in January 2025, that same use would go up by $27.08 or 7.7% combined for both water and wastewater. Again, that's a combination of 7% for water and 8% for the wastewater, and another $28.00 in 2026 and $21.00 in 2027, on a bimonthly basis. i131'l_Tell dKI ;7sfLU!1i!tou LD]N1:IVLSI aV1 -1 9aJeY,1MrM,CVp- r sm %a%, 1oaoo w.v s :us s m10 s v3so s v3n xvr-S )].L 323] )5n 51%ssu 30pAW�r Y1.(W WH H9 s_ l]fN YNA 5261E 1mv-S xla 2IQ sn. 5o.W2 Ws n.OA MW mN 9LV LA. Un. xnw-S n.0 Is 56m Mai-4 2A ]Mf 1. m1M,Q19�-r AplpKm. S . I"W' 1J6f6 5 IIO.Y S l2fOM1 5 Mau-$ 6112 6392 6 IVN�-% SM 55n Is SSA City Council Regular Meeting Minutes June 3, 2024 Page 16 of 29 Mr. Gray stated that one thing to pay attention to is not just the annual cash flow, but the total net revenues in any given year. Net revenues are essentially what is potentially leftover to pay for things like unforeseen expenses and significant weather issues, which goes up and down in any given year. Mr. Gray stated that they try not to use net revenues as too much of a limiting factor in this process as they understand that they fluctuate up and down year to year. Other metrics used in projections include cash flow and debt service, which should begin to fall off in 2031. The critical item to consider the City's debt service coverage ratio, which is something that rating agencies look at when a city is selling debt on the market, mainly does the city have at least a 1.25 debt service coverage ratio, and if not, they will be subject to higher interest rates. Therefore, the proposed rate plan is designed to keep the City's debt service coverage ratio at or above the 1.25 threshold in every year of the plan. Mr. Gray further noted that this ratio is the main limiting factor in the study because they tried to ensure that the city remains at that level as opposed to any annual cash flow needs, as well as making sure that the city remains in a position where it can get the lowest interest costs possible. Mr. Gray summarized that the proposed plan (1) enables the City to fully fund all water and wastewater costs and CIP over next decade, (2) enables the Utility Fund to operate self- sufficiently with no need for subsidies from fund balance, and (3) enables the City to provide safe drinking water and effectively treat wastewater continually for forecast period. Mr. Gray thanked the staff for their support and collaboration with the rate study and noted that he would be back at a future meeting to have additional discussion. Councilmember Griffon stated that automated water meters were installed, which from what he saw in the report have helped generate the escalation in the volume trend that should result in an increase in revenue. He noted that the City's water and sewer fund had $7,730,000 over and above the 90-day reserve, so when can the City start giving some of that money back to the customer. Mr. Gray stated that he understood his concerns; however, he noted that it was important to consider the other components that make up the rates, most importantly the debt service coverage ratio, which is based on the City's annual revenues that are used to support operations and how much of the debt service it can cover. He further noted that the monies above the 90-day reserve that are not otherwise assigned, can be used to essentially buy down the total amount of debt, so there are many different dials that have to be turned to try to identify the right balance to ensure that the city has the annual revenues to cover the debt service as well as its the operating expenses, as well as the balance that between keeping money in reserve versus paying that down for some of the capital projects. Councilmember Griffon asked that Mr. Gray and his team look at the rates again, they look at the reserve and unassigned revenues above 90 days, for him to better understand what is being done about the rates. Mayor Foreman thanked Mr. Gray for the report. 9. ZONE CLASSIFICATION CHANGE AT 4201 & 4209 FM 528 FROM PUD 2015-18 TO CSC/SUP A. Conduct a public hearing regarding a zone classification change for 31.18 acres of land, located at 4201 and 4209 FM 528 Rd., known as Reserves B and D in the Final Plat of Clear Creek Community Church of Friendswood recorded in Harris County Real Property Records, RP- 2020-230485, in Friendswood, Harris County, Texas, to change from Planned Unit Development (PUD) 2015-18 to Community Shopping Center (CSC) with a Specific Use Permit to allow NAICS Use #8131, Religious Organizations. City Council Regular Meeting Minutes June 3, 2024 Page 17 of29 At 6:48 P.M., Mayor Foreman called the public hearing to order regarding a request for a Zone Classification Change for 31.18 acres of land located at 4201 and 4209, FM 528 Road, known as Reserves B and D in the final flat of Clear Creek Community Church of Friendswood. Community Development Department (CDD) Director Aubrey Harbin summarized the subject matter of this public hearing for Council. The property's original zoning was Single -Family Residential (SFR) and has been included in various Planned Unit Developments (PUD) over the years. With the change of the creation of the PUD for the City Center, this property has two tracks that are not part of that PUD anymore. As such, the PUD they were a part of is invalid now. Ms. Harbin explained this is a cleanup effort for Clear Creek Community Church. They began construction of their building in 2019 and was completed in 2022. Since then, they have made a few additions which she briefly listed for Council. Ms. Harbin stated the Future Land Use Map identifies this property developing as retail. Religious organizations are allowed by a Special Use Permit (SUP) in that district, so it is in compliance with the land use map. The Planning and Zoning Commission meeting was held on May 9a'. Following the public hearing, the Commission voted six to zero on a motion to approve the requested change. At 6:50 P.M., with no one signed up to speak on this item, Mayor Foreman closed this public hearing. B. Consider an ordinance regarding a proposed zone classification change for 31.18 acres of land, located at 4201 and 4209 FM 528 Rd., known as Reserves B and D in the Final Plat of Clear Creek Community Church of Friendswood recorded in Harris County Real Property Records, RP-2020-230485, in Friendswood, Harris County, Texas, to change from Planned Unit Development (PUD) 2015-18 to Community Shopping Center (CSC) with a Specific Use Permit to allow NAICS Use 1f8131, Religious Organizations. A motion was made by Councilmember Erenwert and seconded by Councilmember Griffon, approving Ordinance No. 2024-16, as submitted. The vote was as follows: Ayes: Mayor Mike Foreman, Councilmember John Ellisor, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Councilmember Joe Matranga, and Councilmember Brent Erenwert Nays: None The item passed unanimously. ORDINANCE NO.2024-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF FRIENDSWOOD TO CHANGE THE CLASSIFICATION OF 31.18 ACRES OF LAND LOCATED AT 4201 AND 4209 FM 528 RD.,KNOWN AS RESERVES B AND D IN THE FINAL PLAT OF CLEAR CREEK COMMUNITY CHURCH OF FRIENDSWOOD RECORDED IN HARRIS COUNTY REAL PROPERTY RECORDS, RP-2020-230485, HARRIS COUNTY, FRIENDSWOOD, TEXAS, TO CHANGE FROM PLANNED UNIT DEVELOPMENT (PUD) 2015-18 TO COMMUNITY SHOPPING CENTER (CSC); GRANTING A SPECIFIC USE PERMIT TO ALLOW NAICS USE #8131, "RELIGIOUS ORGANIZATIONS" FOR SUCH PROPERTY: PROVIDING A MAXIMUM PENALTY City Council Regular Meeting Minutes June 3, 2024 Page 18 of 29 OF TWO THOUSAND AND NO/100 DOLLARS ($2,000.00); REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR IN CONFLICT HEREWITH; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE. At 6:51 P.M., Mayor Foreman recessed the meeting and later reconvened at 7:04 P.M. 10. TAX INCREMENT REINVESTMENT ZONE A. Conduct a public hearing on the creation of a tax increment reinvestment zone and its benefits to the City and to the property in the proposed zone, being approximately 326 acres of land generally located along FM 528/W. Parkwood Avenue at the intersection of Friendswood Parkway, extending northwest to the city limits of Friendswood and southwest of Baker Road and also including three of the four corner tracts at the intersection of FM 528/W. Parkwood Avenue and Friendswood Parkway, wholly located within Galveston County and the corporate limits of the City of Friendswood, Texas. At 7:05 P.M., Mayor Foreman called the public hearing to order regarding the creation of a Tax Increment Reinvestment Zone (TIRZ) and its benefits to the City and to the property in the proposed zone. City Manager Morad Kabiri summarized the subject matter of the public hearing for Council. He first defined a TIRZ as a tool that is given to municipalities through the Tax Code of the State of Texas, Chapter 311. It is an economic development tool used to promote development (or redevelopment) in a defined area determined to be predominantly open, undeveloped, and which substantially impairs or arrests the sound growth of the municipality due to obsolete planning, deterioration of structures, site improvements, or other factors thereof —which would not develop solely through private efforts. A TIRZ obligates future revenues of a piece of property that are generated by the same tax rate that is applied to every piece of property within the city but limits the benefits only to those within the boundaries of the Zone. The City establishes a base tax revenue that is coming off the property as it sits today. Once the property is developed, an increment above that revenue is collected and would be set aside in a special fund to fund projects that are eligible through State law to allow for the development of this property. Mr. Kabiri provided the following points regarding what a TIRZ can do: • Fund needed public infrastructure to provide drainage and mobility relief to benefit the properties within the TIRZ and the adjacent communities; • Build enhancements and/or amenities into infrastructure projects; • Develop green space for improved quality of life; • Encourage new quality private investment through public improvements; and • Acquire property to implement project plans. In addition, Mr. Kabiri provided the following points regarding what a TIRZ could not do: • Permit or approve building and development plans; • Exercise eminent domain; • Maintain infrastructure; and • Fund improvement projects that do not directly benefit the TIRZ. Mr. Kabiri further clarified that a TIRZ is not a mechanism for avoiding public processes, community engagement, or local regulations. He noted that this is the City's second public hearing on this matter. It City Council Regular Meeting Minutes June 3, 2024 Page 19 of29 is also not a regulatory agency. The TIRZ and its subsequent development authority are simply a board overseeing the financing components of the TIRZ itself. They are not there to determine the adequacy of development standards or development codes, but simply the financing associated with it. Why is a TIRZ needed for this property? Mr. Kabiri explained the property is three hundred and twenty- six (326) acres that is roughly along FM 528 going towards Pearland. He noted this property has been looked at for development for a number of years. It is currently undeveloped and open. The City has had three (3) significant attempts for development, seven (7) in total, that have all failed. Mr. Kabiri listed those significant development attempts that failed due to lack of public access and regional infrastructure. The City has the capacity to serve this property with their regional water purification plant but does not have the infrastructure necessary to get those services to these properties. As such, the City has determined that the property is currently impaired and arrested for growth and development. Mr. Kabiri noted that TIRZ No. 2 would bring retail and office uses to the City of Friendswood. One of the biggest office uses would be Castle Biosciences. The City also has large single-family homes being proposed. Those proposed homes are on half -acre lots that are estimated anywhere from a million and a half ($1,500,000) to two million ($2,000,000) dollars of value once completed. What happens if a property owner within the TIRZ does not want to be within the TIRZ? Mr. Kabiri reiterated there is no impact on those property owners if they decide not to move forward with their project. The rubber meets the road when they do a development agreement with the City of Friendswood. The development agreement will outline what the responsibilities are of the developer as well as the responsibilities of the City through the TIRZ. If property owners do not want to participate in the TIRZ, they do not have to participate by simply not doing a development agreement. Mr. Kabiri noted that several folks have mentioned that Friendswood Parkway has been voted down before, so why is the City even pursuing that? He proceeded to discuss the significant population growth of their neighboring cities. All that traffic is currently routed to FM 518 and through Sunset Drive. Regardless of what the City does in terms of limiting growth, they are going to be impacted negatively by the growth of their neighboring cities. Mr. Kabiri additionally shared that the City did a citywide traffic study with Brown and Gay Engineering. In discussing the specifics, he posed the question: "Do we [the City] prepare for that impact to our community, or do we look the other way and hope for the best?" Friendswood Parkway has been called Brittany Bay Boulevard, Lake City Parkway, and Pearland Parkway. It has been on the books for over 35 years. It currently connects SH 146 at Clear Lake and travels all the way to Pearland Parkway at Beltway 8. However, two (2) segments are missing: Lake City Parkway and FM 528 to Dixie Farm Road (or FM 2351). Mr. Kabiri added that without the construction of Friendswood Pkwy, the intersections at FM 518 and Sunset Drive would have to become grade separation intersections in order to avoid congestion. Lastly, Mr. Kabiri addressed that the project has garnered the most attention with the Estates at Wilderness Trails. The roadway, as it sits today, will not be moved any closer. In fact, it will be moved further away from the existing homes that front Wilderness Trails because of the right of way being dedicated. The ditch will go away and they would have ten (10) foot landscape buffers on either side of that roadway, a subsurface storm sewer line, and a sidewalk. Mr. Kabiri stated that the buffer and the enhanced transportation from a sidewalk standpoint vastly improves the current condition of what is out there. With that, Mayor Foreman announced the following citizens had signed up to speak on the public hearing. City Council Regular Meeting Minutes June 3, 2024 Page 20 of 29 Mr. Chris Johnson provided handouts to Council to aid his expression of opposition for the creation of the TIRZ and Friendswood Parkway due to its proximity to his home. The handouts consisted of letters from developers that were told by the City that they would only entertain the TIRZ if they would build the road. Ms. Blaire Johnson wished to speak on the underlying issues of the TIRZ, such as: the future development that does not comply with the Future Land Use Map, drainage, a parkway that should not pop up next to their homes, their area being considered "underdeveloped," and Exxon's deed restrictions. Dr. Omkar Dave voiced his opposition to Friendswood Parkway and what he believed to be the illegal use of the TIRZ in this matter. The reasoning provided for the TIRZ that Mr. Dave countered was that their area was not blighted, open, and underdeveloped. The parkway would also be invasive to their homes. Ms. Jennifer Garey expressed her opposition to the TIRZ and parkway. She requested Council to vote "no" as there was no reason for this to be completed before the road's aliemnent studv was completed. Ms. Shawna Talton shared her story of building their forever home for their disabled child at Wilderness Trails. However, they would now be frontage to a major thoroughfare which she opposed. Mr. Robert Talton voiced his opposition and recalled the bond proposal for Pearland Parkway which was voted down. With this issue arising again, Mr. Talton expressed that it seems their votes did not matter. He additionally suggested an alternate route for the parkway that would not affect any of their homes. Ms. Kathy Rogers requested to speak in front of the Council to express her opposition to the parkway and TIRZ. She shared the sentiment that encouraging development for the sake of development is also not a good thing. Ms. Rogers encouraged Council to reconsider and look into more southern routes. Mr. Matt Johnson, an attorney from the City of Houston, wished to support Friendswood residents in their opposition to the TIRZ and Friendswood Parkway. Ms. Margaret Pickell stated her family's lifestyle was in jeopardy by allowing the creation of the TIRZ to develop the parkway. She noted there was no town hall meeting for residents to discuss these issues with City leaders. Her concern was not for the properties being developed for drainage and transportation. Her concern was with the parkway and whether the City was only using the TIRZ to get it developed. Mr. Frank Stokes, on behalf of Castle Biosciences, requested that Council approve the TIRZ as proposed so they can keep their business in the City of Friendswood. Mr. Steven Shippy shared his findings with Council from researching into this matter as well as the questions he had that arose from his research. He noted that portions of the property were formerly used as an oil field which creates barriers to development. He also found the property's deed restrictions and site assessment, which had requirements for development, that he did not see was being addressed. Mr. Brady Burnett expressed his concern with the TIRZ as taxpayers would likely pay for the expansion of utilities. With the decision to grant the funds accumulated in the TIRZ that would be at the direction of a board, he would rather vote directly on how his taxpayer money is being used within the city. Mr. Jerome Karem and his engineer associate voiced their support for the TIRZ due to the deficiency in infrastructure to develop their land. City Council Regular Meeting Minutes June 3, 2024 Page 21 of 29 Mr. Louis Tannos, a developer, gave a few words over their intent to build a neighborhood, the utilities that were required to create it, and the TIRZ being a valuable instrument to the city for development. At 8:22 P.M., with no one else desiring to speak, Mayor Foreman closed the public hearing. B. Consider an ordinance designating a contiguous geographic area, being approximately 326 acres of land generally located along FM 5281W. Parkwood Avenue at the intersection of Friendswood Parkway, extending northwest to the city limit of Friendswood and southwest of Baker Road and also including three of the four corner tracts at the intersection of FM 5281W. Parkwood Avenue and Friendswood Parkway, wholly located within Galveston County and the corporate limits of the City of Friendswood, Texas, as a reinvestment zone pursuant to Chapter 311 of the Texas Tax Code to be known as Reinvestment Zone Number Two, City of Friendswood (the "Zone"); describing the boundaries of the Zone, containing findings related to the Zone, creating a Board of Directors for the Zone; establishing a tax increment fund for the Zone; and providing for the effective date and termination date of the Zone. A motion was made by Mayor Foreman and seconded by Councilmember Branson to approve Ordinance No. 2024-17, related to 10.b., as submitted. However, the item was discussed prior to the vote. Mayor Foreman commented why he was in favor of this item. The Tax Increment Reinvestment Zone (TIRZ) would create development out there where it would not develop. When he ran for mayor, he had said he was going to improve drainage, flooding, and mobility. Mayor Foreman expressed that the city needs this road, but they need the development first. The road will follow. They also need development to reduce the tax burden on all Friendswood residents. He was in favor of this TIRZ because they need to help residents be able to get around and keep their tax rates as low as they can. The Mayor than addressed that it was mentioned voters voted this road down. He clarified that on that ballot was a question: should the City borrow money to pay for this road? The residents said, no, they would rather have the City borrow money to fix drainage and other things. Thus, yes, they voted down a bond for this road. However, there are other ways to pay for this road. Mayor Foreman relayed developing and using this TIRZ to support the infrastructure that the City needs is the best way to do it. Councilmember Branson reiterated this was thirty-five (35) years in the making. She appreciated that it is going to be a boulevard with sidewalks, it would have a residential component, and would not be a freeway. She noted traffic, as the Mayor said, has continued to be a problem and it is only going to get worse. As City Manager Morad Kabiri pointed out in the previous item, League City and Pearland's population took off. They exploded with growth and Friendswood was caught right in the middle. Councilmember Branson related this issue to people first opposing paying for Stevenson Park. Now, fifty years later, what would their community be without Stevenson Park? She expressed that sometimes Council has to make unpopular decisions. With that, she stated that she would be supporting this. Councilmember Erenwert noted there were around fifteen (15) people that spoke against this with only developers speaking for it. He understood the need for the parkway; however, the timing and method were problematic for him. He commented that he was still learning about what a TIRZ mechanism is and believed there needed to be a longer segment to educate the public on what is being done. Councilmember Erenwert stated that he did not see a lot of financial gain for commercial on this project. He further shared that he grew up in Bel -Air and they had a similar situation in the seventies where they overbuilt against the will of the people. As such, he would be voting "no" on this item. City Council Regular Meeting Minutes June 3, 2024 Page 22 of 29 Councilmember Ellisor had questions on this item and wanted more time to review the information. A motion was made by Councilmember Ellisor and seconded by Councilmember Erenwert to postpone Item 10.B. However, discussion ensued prior to the vote. The Council discussed the presented motions on the table, and it was clarified that this motion was made with the intent to postpone Item 10.B. indefinitely. City Manager Morad Kabiri clarified that Council would be approving the financing mechanism to create a TIRZ. At some point in the future, they will be presented with a development agreement that will outline the responsibilities of the developer as well as the responsibilities of the City. At that time, Council can suggest and influence the alignment of the roadway. In order for the City to move any of the infrastructure forward, they would have to have a partner that is economically viable for them. Mr. Kabiri reiterated that there is no project proposal that will work if they do not have a willing private investor. What Staff is proposing is no City of Friendswood tax dollars, they are talking about the value added by these projects. Upon further questioning, Mr. Kabiri reiterated that until a development agreement is executed, there will be no movement on the TIRZ. The TIRZ just establishes the zone and freezes the revenue coming off of it. Without development on those property, there would be no increment created. Without a development agreement, they are not obligating any future funds of the City towards any project. Councilmember Hanks commented she had no problem with the TIRZ; however, she had reservations about the road and the Castlewood Drive opening. Nonetheless, she expressed that she liked the emergency gates. She agreed that the road is inevitable and believed they needed to find the best place for it. Councilmember Hanks understood that they would approve the TIRZ tonight and not commit to Mr. Kabiri relayed that was correct. Councilmember Branson also understood that the approval of the TIRZ is only a finance mechanism. It is not determining where the road is. Mr. Kabiri confirmed that was correct. Councilmember Griffon expressed that he does not want to lock himself in on a TIRZ with a conceptual Planning and Zoning Commission plan that has been adopted without the ability to influence a future location of that road. Mr. Kabiri noted he could make that a part of his motion to create the TIRZ subject to the development agreement hashing out the location of the roadway in the future. The vote for Councilmember Ellisor's motion to postpone Item 10.B. indefinitely was as follows: Ayes: Councilmember John Ellisor and Councilmember Brent Erenwert. Nays: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, and Mayor Pro Tem Joe Matranga. The motion failed. A motion was made by Councilmember Griffon and seconded by Councilmember Branson to amend the original motion on the table to approve Item 10.B., subject to the negotiation of the development agreement which would include the alignment of Friendswood Parkway. However, discussion ensued prior to the vote. Mayor Pro Tern Matranga took a moment to thank everybody there that night. He shared that he has become convinced that they absolutely need a parallel route to FM 518 within Friendswood. He has also been convinced that they need to make improvements to their water and sewer systems on the south side of Friendswood, which is included in this TIRZ as well as the Friendswood Parkway. However, one major City Council Regular Meeting Minutes June 3, 2024 Page 23 of 29 problem for him has continued to be the route. He shared over his meetings with the developer and City Staff which convinced him that this is the only viable option. Therefore, he would support the TIRZ. The vote for the amendment of the motion on the table was as follows: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, and Mayor Pro Tern Joe Matranga. Nays: Councilmember John Ellisor and Councilmember Brent Erenwert. The item passed. Mayor Foreman called for the vote on the original motion to approve Ordinance No. 2024-17, related to Item 10.B., as amended. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, and Mayor Pro Tern Joe Matranga. Nays: Councilmember John Ellisor and Councilmember Brent Erenwert. The item passed. ORDINANCE NO.2024-17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, DESIGNATING A CONTIGUOUS GEOGRAPHIC AREA WITHIN THE CITY GENERALLY LOCATED ALONG FM 528/W. PARKWOOD AVENUE AT THE INTERSECTION OF FRIENDSWOOD PARKWAY, EXTENDING NORTHWEST TO THE CITY LIMITS AND SOUTHWEST OF BAKER ROAD AND ALSO INCLUDING THREE OF THE FOUR CORNER TRACTS AT THE INTERSECTION OF FM 528/W. PARKWOOD AVENUE AND FRIENDSWOOD PARKWAY AS A REINVESTMENT ZONE PURSUANT TO CHAPTER 311 OF THE TEXAS TAX CODE,TO BE KNOWN AS REINVESTMENT ZONE NUMBER TWO, CITY OF FRIENDSWOOD; DESCRIBING THE BOUNDARIES OF THE ZONE; CREATING A BOARD OF DIRECTORS FOR THE ZONE; ESTABLISHING A TAX INCREMENT FUND FOR THE ZONE; CONTAINING FINDINGS RELATED TO THE DESIGNATION OF THE ZONE; PROVIDING A DATE FOR THE TERMINATION OF THE ZONE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. 11. CITY MANAGER'S REPORT A. Present an update regarding the City's Fourth of July celebration. City Manager Morad Kabiri opened his report by stating that we are getting into the summer months and our Parks Department is busy as ever. Our big celebration is coming up, the 4th of July here in about a month. We will kick off festivities with a grand parade down Friendswood Drive in Friendswood. Don't plan on traveling down Friendswood Drive at 10:00 a.m. on July 4th. It will be shut off. We will follow up the parade with a daytime program at Stevenson Park. Thank you for that bit of history, Councilmember City Council Regular Meeting Minutes June 3, 2024 Page 24 of29 Branson. And then after the daytime program, we'll take a short break and get prepared for the evening festivities at Centennial Park, which will include some introductory comments from Councilmembers, pre-recorded comments, a show by the Spasmatics, which are very popular, and fireworks display around 9, 10-ish. B. Present an update regarding Small Business Week help April 28-May 4, 2024. City Manager Kabiri thanked our CEDC members, the Friendswood Rotary, Friends of Downtown, Friendswood Association, the Chamber of Commerce, Galveston County Small Business Development Center, and as well our council liaison, Councilmember Branson. Small Business Week was the last week in April, and there were a number of activities throughout town that afforded folks the opportunity to engage experts in the community, learn about local businesses and opportunities that exist out there, and basically support these businesses that are the backbone of our community so thank you all for your efforts. I already hear you're talking about next year's planning. C. Recognize the Waste Connections of Texas 2024 Scholarship Recipients City Manager Kabiri noted that as they do every year, they have highlighted three students at Friendswood High School, Clearbrook, and Clear Springs to receive a scholarship from Waste Connections to further their education after they leave Friendswood. In Friendswood High School, Julia Houding will pursue a psychology degree at the University of North Texas. Claudia Palacios will pursue an engineering degree at Texas A&M University. And Anna Trunowski will pursue Human Development and Family Science at Texas Tech University. Unfortunately, none of them wanted to go to the best school ever, University of Houston, but I'm sorry. Go, Cougs. D. Present an update regarding the Friendswood Public Library Summer Reading Programs. We are in the summer months, and we are kicking off the summer reading challenge. It is for all ages, so adults are welcome and encouraged to participate. It will run from June Ist to August loth. You register on the Beanstack through the library's website, and that's a program in the library. You can claim prizes throughout the summer as you complete certain milestones in your reading. I always encourage folks to read at least two or three books throughout the summer. E. Present an update regarding the City's receipt of Texas General Land Office Mitigation Grant. City Manager Kabiri reiterated that it was mentioned earlier tonight, the City of Friendswood had received a $4.63 million allocation through the CDBG Mitigation Grant Program. It's a U.S. Housing and Urban Development Program. It is going to make some improvements in the Annalea Subdivision so Virginia Lane and Ella Court will be improved. The roadway will be totally reconstructed. Water lines will be replaced and storm sewer lines will be upgraded. And then in Sun Meadow, there is a half -million -gallon ground storage tank, a water plant for that will be replaced. It's desperately in need of replacement. 12. BUSINESS ITEMS A. Consider authorizing the City Manager to negotiate and execute a contract with the Gulf Coast Authority for the Blackhawk Regional Waste Water Treatment Facility Aeration Improvements Project. City Council Regular Meeting Minutes June 3, 2024 Page 25 of 29 A motion was made by Councilmember Erenwert and seconded by Councilmember Griffon to negotiate and execute a contract with the Gulf Coast Authority for Blackhawk Regional Waste Water Treatment Facility Aeration Improvements Project, related to Item 12.A. The vote was as follows: Ayes: Mayor Mike Foreman, Councilmember John Ellisor, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Mayor Pro Tern Joe Matranga, and Councilmember Brent Erenwert Nays: None The item passed unanimously. 13. PROPOSED RESOLUTIONS & ORDINANCES A. Consider an ordinance amending the City's General Budget for Fiscal Year 2023-2024 by approving "Budget Amendment VIP' and providing for supplemental appropriation and/or transfer of certain funds. A motion was made by Councilmember Hanks and seconded by Councilmember Erenwert to approve Ordinance No. 2024-18, as submitted. The vote was as follows: Ayes: Mayor Mike Foreman, Councilmember John Ellisor, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Mayor Pro Tem Joe Matranga, and Councilmember Brent Erenwert Nays: None The item passed unanimously. ORDINANCE NO.2024-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, AMENDING ORDINANCE NO. 2023-20, PASSED AND APPROVED AUGUST 28, 2023, THE SAME BEING AN ORDINANCE APPROVING AND ADOPTING THE CITY'S GENERAL BUDGET FOR FISCAL YEAR 2023-24, BY APPROVING "BUDGET AMENDMENT VII" 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. 14. CONSENT AGENDA A motion was made by Councilmember Branson and seconded by Councilmember Matranga to approve the Consent Agenda Items 14.A. through 14.S. The vote was the following: Ayes: Mayor Mike Foreman, Councilmember John Ellisor, Councilmember Sally Branson, Councilmember Trish Hanks, Councilmember Robert J. Griffon, Mayor Pro Tem. Joe Matranga, and Councilmember Brent Erenwert City Council Regular Meeting Minutes June 3, 2024 Page 26 of 29 Nays: None The item passed unanimously. A. Consider a resolution denying the proposed increases to the electric transmission and distribution rates and charges of CenterPoint Energy Houston Electric LLC, and finding that reasonable rate case expenses be reimbursed. RESOLUTION NO. R2024-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, DENYING CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S REQUESTED INCREASE TO ITS ELECTRIC TRANSMISSION AND DISTRIBUTION RATES AND CHARGES WITHIN THE CITY; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL FOR THE GULF COAST COALITION OF CITIES; AND PROVIDING FOR AN EFFECTIVE DATE. B. Consider authorizing a Memorandum of Understanding with the City of League City concerning the Grisson Road/Bay Area Boulevard CIP Partnership. This item authorized a Memorandum of Understanding with the City of League City concerning the Grisson Road/Bay Area Boulevard CIP Partnership. The intersection of Grissom Road and Bay Area Boulevard (the "Intersection") lies within Harris County along the common boundary of the City of Friendswood and the City of League City. Due to the elevated number of vehicular collisions at the Intersection, a traffic signal warrant analysis was performed, which analysis indicated the need for a signal at the Intersection. The estimated cost to signalize the Intersection and to provide protected left turns at the Intersection (the "Project") is $500,000. The City of Friendswood submitted a CIP Partnership Request Form to Harris County Precinct 2 for the Project, which requested funding from Harris County in the amount of $250,000. The remaining $250,000 is to be divided equally between the City of Friendswood and the City of League City. This proposed Memorandum of Understanding (the "MOU") memorializes the $125,000 commitment of both cities for the Project. C. Consider approving a contract extension with Emergicon, LLC, to extend the term of the Agreement for Specialized Professional Ambulance Billing Services for the first one-year extension period. This item authorized a Contract Extension with Emergicon, LLC ("Emergicon") to extend the term of the Agreement for Specialized Professional Ambulance Billing Services (the "Agreement") for the first one- year extension period. This Agreement was entered into on July 20, 2021, for the billing and account receivable management services of the City's ambulance and emergency medical services. The Agreement's initial three-year term is set to expire on July 19, 2024. The Agreement may be extended by the parties for two additional one- year periods. The parties desire to extend the Agreement for the first one-year extension. D. Consider approving a Property Sales Agreement with Takoordeen Adhar for the purchase of 1303 Deepwood Dr., Friendswood, Galveston County, Texas. City Council Regular Meeting Minutes June 3, 2024 Page 27 of 29 The Property Sales Agreement (the "Agreement") that the City signed with Takoordeen Adhar for the purchase of property located at 1303 Deepwood Dr., Friendswood, Galveston County, Texas, is contingent upon the City Council's approval of the agreement at this June 3rd meeting. Under the Agreement, the City agrees to purchase the property for a sales price of $35,000. The Agreement calls for a closing date 45 days after it is filed with the title company. The property is flood -prone property and will be used for open land for drainage, greenspace and/or recreational purposes. E. Consider authorizing a Professional Services Agreement with Kimley-Horn and Associates, Inc., for the Lift Station No. 30 Rehabilitation Flow Monitoring Analysis and Preliminary Design Project. The City's Lift Station No. 30 may need to be expanded and upsized from its current capacity of approximately 650 gpm to approximately 1,150 mpg in order to accommodate future projected peak flows. Under this agreement, Kimley-Horn and Associates, Inc. ("KHA") will complete a flow monitoring analysis and calculate a revised projected peak flow to determine if the current wet well has sufficient capacity per Texas Commission on Environmental Quality (TCEQ) and City of Friendswood design criteria. Additionally, KHA will perform preliminary design phase services and prepare a Preliminary Engineering Report ("PER") to document the flow monitoring analysis, existing and projected peak flows, lift station design calculations, and required site modifications. KHA's services include structural and electrical analysis of the existing lift station equipment. Final design, bid, and construction phase services are not included in this agreement. Pursuant to the proposed Agreement, KHA will perform the analysis and preliminary engineering phase services for a lump sum cost of $88,000 within the following time frame: Task 1: Flow Monitoring Data Collection .................................. 60 calendar days of NTP Task 2: Preliminary Design (Draft PER) .......................................... 45 days after Task 1 Task 3: Preliminary Design (Final PER) ............. 14 days after receipt of City comments The expansion and upsizing of this lift station was included in the 2023 Water and Wastewater Impact Fee Update. F. Consider authorizing an agreement with the Friends of Downtown Friendswood Inc., for the Hometown Heroes Project. The Friends of Downtown Friendswood Inc (the "Friends") presented its Heroes of Friendswood Banner Program to the City Council earlier this year, which program is designed to recognize the great sacrifices our military members make in serving our country. This agreement authorizes the use of certain poles in the Downtown District to display banners to recognize, honor servicemen and women from the City of Friendswood. Under the Agreement, the City is responsible for the erection and removal of the banners and the Friends is responsible for administering the program and storing the banners when not in use. The term of the agreement is for two years, which term will be automatically extended for three (3) additional one-year periods unless either party terminates the agreement or provides notice of its cancelation. G. Consider a resolution amending Chapter 7 "Benefits" of the City of Friendswood Personnel Policy Manual to add a new section entitled "Fitness Incentive Leave" to promote employee City Council Regular Meeting Minutes June 3, 2024 Page 28 of 29 health and wellness and to encourage employees to participate in designated physical fitness activities. RESOLUTION NO. R2024-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS,AMENDING CHAPTER 7"BENEFITS"OF THE CITY OF FRIENDSWOOD'S PERSONNEL POLICY MANUAL TO ADD A NEW SECTION TO BE ENTITLED AND NUMBERED SECTION 7.07 "FITNESS INCENTIVE LEAVE'; DIRECTING THE CITY MANAGER TO ADOPT AN ADMINISTRATIVE RULE CONSISTENT THEREWITH;RENUMBERING THE REMAINING SECTIONS OF SUCH CHAPTER; INCLUDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. H. Consider appointing (i) Rebecca Hillenburg, (ii) Ron Cox, (iii) Chris Richardson and (iv) Scott MacKenzie to the Friendswood Downtown Economic Development Corporation for a two-year term beginning July 1, 2024, and ending on June 30, 2026. I. Consider reappointing (i) Willie Anderson and (ii) Richard Sasson to the Planning and Zoning Commission for a two-year term beginning July 1, 2024, and expiring on June 30, 2026. J. Consider reappointing (i) Glen Grayban, (ii) Jason Byers and (iii) Michael Fernandez as regular members to the Zoning Board of Adjustment and Appeals for a two-year term beginning July 1, 2024, and expiring June 30, 2026. K. Consider reappointing (i) Cindy Deaton, (ii) Cody Owen (iii) Billy Mendoza, (iv) Les French, (v) Randy Weisinger (vi) Thomas Hinckley to the Construction Board and Adjustment and Appeals for another two-year term beginning July 1, 2024, and expiring on June 30, 2026. L. Consider reappointing (i) Brett Stephen and (ii) Sharon Tait to the Friendswood Public Library Advisory Board for another three-year term beginning July 1, 2024, and ending June 30, 2027. M. Consider reappointing (i) Judy Wiggins, (ii) Blaise Guzzetta, and (iii) Andrea Trabanino to the Community & Economic Development Committee for a three-year term beginning July 1, 2024, and ending on June 30, 2027. N. Consider appointing Dr. Donna Coleman to the Animal Shelter Advisory Committee for a three- year term beginning on July 1, 2024, and ending on June 30, 2027. O. Consider reappointing Judge James Woltz as the Municipal Court Judge for the City of Friendswood for a two-year term, beginning July 1, 2024. P. Consider reappointing Judge Robert J. Barfield and Judge Kathleen M. McCumber as Associate Municipal Court Judges for the City of Friendswood for a two-year term, beginning July 1, 2024. Q. Consider approving the ad valorem tax report for April 2024. R. Consider approving the minutes of the City Council Regular Meeting held on May 6, 2024. City Council Regular Meeting Minutes June 3, 2024 Page 29 of 29 S. Consider approving the minutes of the City Council Special Meeting held on May 14, 2024. 15. ADJOURNMENT With there being no further business, Mayor Foreman adjourned the ne 3, 2024,City Council Regular Meeting at 9:01 P.M. j -/ , Attest: Leticia Brysch, City tTgTE OF