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HomeMy WebLinkAboutCC Minutes 2024 08 26 JointMINUTES OF THE JOINT MEETING OF THE CITY COUNCIL AND THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NUMBER TWO, CITY OF FRIENDSWOOD AUGUST 26, 2024 THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD AND THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NUMBER TWO, CITY OF FRIENDSWOOD MET IN A JOINT MEETING ON MONDAY, AUGUST 26, 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: 0 John Ellisor Councilmember Sally Branson Councilmember Trish Hanks Councilmember Robert J. Griffon Councilmember Joe Matranga Mayor Pro Tern Brent Erenwert Councilmember Mike Foreman Mayor Morad Kabiri City Manager Karen Horner City Attorney Leticia Brysch City Secretary John Ellisor Director Sally Branson Director Trish Hanks Director Robert J. Griffon Director Joe Matranga Director Brent Erenwert Director Mike Foreman Chair Morad Kabiri General Manager Karen Homer City Attorney Leticia Brysch City Secretary 1. CALL TO ORDER Mayor Foreman called the joint meeting to order with a quorum present at 5:32 P.M.; all members were present. Mayor Foreman announced that there would be no action for all items related to the Reinvestment Zone Number Tow, City of Friendswood as said items were being delayed to a future meeting. City Council Joint Meeting Minutes August 26, 2024 Page 2 of I 2. INVOCATION The invocation was led by Councilmember John Ellisor 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 The Mayor and Council gave the deepest condolences for the loss of former Councilmember Harold Raley and former Chief of Police Bob Weiners and asked that everyone keep them and their families in their prayers. 5. PUBLIC COMMENT Mr. Michael Ross requested to speak before the Council regarding his opposition the TIRZ #2, and noted that in his opinion, the financing vehicle being used will not bring a good development of value to the city. He recommended that Council hold additional public meetings to explains the TIRZ #2 in more detail. Mr. Chris Johnson requested to speak before the Council regarding his opposition the TIRZ #2 and noted that earlier in the day he had filed a lawsuit against the Council as he believed that the decisions made in regard to TIRZ #2 are illegal and directly impacts him and his family. Mr. Derek Maetzold requested to speak before the Council regarding his support of the TIRZ #2 and the related Castle Bioscience project and agreements. He noted that as a resident and local business owner he had a vested interest in keeping his bio medical company in Friendswood which has experienced at 300% growth since its creation in 2007. He requested that the Council continue to support his company's new headquarters project within the TIRZ. 6. CITY COUNCIL —MUNICIPAL BUDGET FOR FISCAL YEAR 2024-25 A. Conduct a public hearing regarding the Proposed Fiscal Year 2024-24 Municipal Budget for the City of Friendswood. At 5:49 P.M., Mayor Foreman opened the public hearing and requested staff give council an overview of the item. Finance Director Rhonda Bloskas presented the Council with an overview of the proposed budget and noted that the hearing was being held in compliance with the Texas Local Government Code and the City's Charter. She noted that she would be giving the Council a high-level overview of the budget as they have seen the same information multiple times over the last few months. City Council Joint Meeting Minutes August 26, 2024 Page 3 of 11 Ms. Bloskas noted that the proposed budget was developed to deal with expenditures growth that included the key budget drivers of: • Insurance Costs • EMS Onboarding • Operational Costs • FVFD Contract • Personnel Costs • Bond Project Impacts • Deferred Maintenance • Grant Project Impacts • ARing Infrastructure Ms. Bloskas noted that the total budget for the City of Friendswood, including projected revenues and expenditures, is about $108.2 million and is inclusive of all City funds. The total proposed revenues by source and the percentage of the overall budget are as follows: Mixed Drink $87,281 Franchise Tax '1% $2,090,697 Sales Tax 2% $12,389,226 11 % Property Taxes $27,837,699 26% Use of Fond Miscellaneous Receipts B.I.rxe toosined Earnings $869,451 $23,128,056 1% 21% Licenses & Permits $846,968 1% Interg.er.ental Revenues $12,826,661 12% Charges for Services $23,525,618 22 % Fines $1,021,998 1 Inmrest $2,386,063 2% VRF Reimbursements 51,163,006 1% Staff is required to present a balanced budget; therefore, the total proposed expenditures budgeted are at about $108.2 million. The total proposed expenditures by expenditure categories are as follows: Community Development Public Works Engineering $1,481,710 $15,545,110 A,328,627 sod Recreation & Facilities $5,997,440 6% Library $1,495,438 1% cle Replacement Fund $777,500 1% $40,223,375 37 % City Council Joint Meeting Minutes August 26, 2024 Page 4 of I Ms. Bloskas noted that she would be focusing on the General Fund and the Water and Sewer Fund. The General Fund, the City's primary operating fund, is budgeted with a proposed revenue of $41.8 million, with 79% of that coming from taxes; such as property, sales and franchise taxes. The breakdown of the City's revenues is noted below: Fines & Charges for Forfeitures Services S965,598 Intel 8$1,656,799 2 SIAI 38 Sti4I,R3N q% \ \ 2% \` Permits S846.968 2% Mixed Drink S87,281 <1% WII i,47 SalesTal/ $9,291,919 22% Interest Earned Other S681,925 $416,709 1% / I% Interfund Transfers $3,212,181 8% Property Tax S21,879,396 52% The proposed budget was developed using a proposed tax rate of 51.420, which is about 1.4 cents above the current rate of 50.07 cents, and about 1.09 cents above the estimated no new revenue rate. Ms. Bloskas noted that there was a change to the voter approved tax rate from the last budget presentation; however, it did not effect any of the budget's calculations as this new voter approved tax rate is almost 4 cents higher than what Staff is proposing. The proposed tax rate will provide a projected tax levy of $27.7 million, that is $21.8 million for maintenance and operations expanses in the General Fund and $5.9 million for tax. The graph below was displayed to illustrate the City's maintenance and operation (M&O) tax rate. 0.41 0.01" 0.4041 0.4 o.a o.00aa 0.3785 0.020 am � o.a7 ■ o.otzo o.ae am o.osae a.x NNMMME Dlberaevrnu EMSOnboardin, Mersa Defm d Otter FANS Prapoud Sources Compmsatim Study MMntenanu Mao Tex Mate •Dec'eaee 8iv_—se City Council Joint Meeting Minutes August 26, 2024 Pages of 11 Additionally, the General Fund's proposed expenditures were announced to be $41.8 million with a little over 50% being related to Public Safety. The departmental expenditure breakdown is outlined in the following chart: Deferred Maintenance $500,000 1% Parks & Recreation _ $5,997,440 14% �\ Library $1,495,438 Engineering $743,643- 2% Public Works $2,684,223 - 6% Development $1,481,710 4% Emergency Sen FVFD/EMS $5,711,925 14% tr & Council City Secretary City Manager Finance $91,719 $430,841 $1,210,430 $1,423,907 3% 3% Human Resources $1,227,380 3% Information Tech $2,352,485 6% City Attorney $478,802 1% Municipal Court $530,088 1% Communications olice - $481,555 $14,929,725 1% 36% Ms. Bloskas showed the Council a list of the Forces at Work (FAW), which is a budget term that is used by Staff for supplemental expenditures that are outside of the Staff's control. Examples noted for FAW included Federal Grants, State mandates, economic impacts, or approved contracts that were approved by the Council previously. The total forces at work and decision packages. TOTAL FORCES AT WORK AND DECISION PACKAGES Forces at Work $1,497,142 Decision Packages $888,603 Total Funded FAW & DPs $2,385,745 Unfunded Decision Packages $4,029,351 The full list of the General Fund, Forces at Work and funded Decision Packages included in the proposed budget are as follows: City Council Joint Meeting Minutes August 26, 2024 Page 6 of 11 outside One Time Ongoing Revenue Net DiNA Oeserilmon Cost Covt Total Sourcas Total City Wide Windstorm Insurance Increase (3%) $O $25.220 $25,220 so $25220 City Wide Auto Liability Insurance Increase (rib) 0 20,766 20,768 O 20,768 City Wide Real & Personal Property Insurance Increase (13%) O 16.431 16.431 0 16.431 P&P Facility Electricity Increase (2%) 0 10,898 10.898 0 10,8g8 PW_St Streets Electricity Increase (2k) 0 11,468 11,488 0 11.480 City Wide Health Insurance Increase (S%) O 104.764 104,764 0 104,764 City Wide Workers Compensation Increase 0 29.8g9 29.899 O 29,899 DES -EMS EMS CnInoading 0 ZWZ772 2-477772 1.035OOD 1.937.772 FVFDFire FVFD Fire Contract Reduction 0 64,195 64.195 247,981 (183,786) FVFD EMS EMS Contract Elimination O O 0 L02ZB40 (1,022840) PD_Admin Police Policy Accreditation 40.000 26,920 66,920 1.920 65DW PO -Patrol 12-Hour Shifts • Vehicle 93,72S 301 394200 255360 138.940 PD_Patrol FISD SRO Contract Reduction 0 0 0 (91S82) 91-W PO -Patrol CC ISO School Crossing Gua rd Agreement O 18.534 18,534 0 18.534 ENG Additional Vehicle (Stormwatw) 50.000 3.500 53500 0 53,500 Quaker's Landing Buyout lots -Mowing & P&P -Pk Maintenance 0 2%600 29,600 0 29.600 P&RPl, Maintenance Worker . Vehicle [-10 FTE) 62000 87.372 149.372 0 149.372 Total Forces a Work $245,725 $3,722,916 S3,968.K1 S24471,499 $1,497,142 Doerm ollge" Qi51Ae Retinue rill Dept Desaiptim Cost Cost Tad Sourm TOW PDW Temporary Records Speeisii4, FY25-FY26 SO $89,624 SB9,624 S89,624 $0 P&R SDC Holiday Camps 0 27,000 77,000 27,000 0 City Wide Salary Adjustments/Meth 4.09E 0 B8B,603 WJO3 0 BR603 Tod Decision Padmes SD SMSM f1iDD5W SD6,624 Wi6D$ Below is the list of unfunded decision packages that were requested but not included in the proposed o.ataia. pro Tina Orryoin9 Ra eenue Nat OaCt W Ipliaa Coat Coat Totel $Onrwi Total COMM Social Madla Posts 510.000 s1O,o00 SlOp00 PD_Comm PE) Records Specialist (H.0 FTE) 91,058 WAS8 91858 PW_5t Equipment Operator- Street5(.10 FTE) 86.583 86.S83 86.563 DES EMS Full-time Paramadic Cmwrsion (.30 FTE) 422,092 422,092 22262s 194,467 P&R_Pk Weekday Ubonar (110 FTE) rss. 9 iszi 90 6 csic, IT Cloud Bac]kuP Service 17.000 T7.000 17,000 Hp eenelit Specialist (r10 FTC) 4.000 91244 95,244 95.244 PDlC Animal Control Officer I Vehick,(11.0 FTE) 78.800 97,029 VS.829 175,829 CSO Temporary Records Technician (part-time) 24,823 24.823 24,823 PW_St Maintenance Worker (•1.0 FTE) 79346 79.346 79.346 COD_GIS Geographic Information Systems Analyst (110 FTE) S,0o0 100.507 105-507 105$07 PW_St Street5/539n Shop Vehicle 45000 4jscic, 49$00 49.50p PW_St Maintenance Worke, (•1.0 FTE) 79.346 79.346 79346 ENO City Wide Traffic Study 200.000 200000 200,000 CAC) Legal Services/Litigation Deduc2iblesrDamages 50.000 50,000 SO.000 PW_5t Crew Leader � Vehicle (•1.0 FTE) 75,000 102.840 1T .840 I?'1,840 DES -FM Deputy Fire Marshal 11 • Vehicle (-).0 FTE) 6s,oOo 158.728 223.728 223,728 P&R_Rec Summer Camp Staff Wage Increase 8.594 8.594 8.594 P&R Roc Summer Pool Staff Wage Increase 75 7.S% 7S96 P&R_Rec Citizen Awareness (City u) 500 500 500 P&R_Rec pekzvant Sp¢ ial Event Programming 8.500 8500 8,500 Lake Friendsweod Fish Feeding & RestocWng P&R_M Program 6,S00 3.500 lo.000 1O,00o ENG Sunset Drive Signal Rehabilitation &Optimization 2.2S0.000 Z2!SO.000 2.25 A, Lake Frlendswood Kaya WPaddklboard Rental P&R_Rec Kiosk IB.000 18,000 18,000 Total UMurrdw Oacasiorr packapea for Cwrtal Patrol 1<2,772,123 f1.494,e9 54.23SSf+7a $227.623 f4,070.361 City Council Joint Meeting Minutes August 26, 2024 Page 7 of 11 Ms. Bloskas announced the proposed revenue of the Water and Sewer Fund is $22.1 million with the about $21 million coming from utility fees. >dministralke Fees 5483,_"'.. 2"', Sewer $10,112,236 46% Sales of Water Meter $30,000 <t of Interest s;Q7 083 Water $10,885,145 49%, The Water and Sewer Fund's proposed expenditures were announced to be $23.7 million, which includes an estimated $3.1 million Forces at Work with the largest item being a cash call to the City of Houston for the Southeast Transmission Line Project. The expenditure departmental breakdown is outlined in the following chart: Interfund Transfer $8,073,256 34% Capital $1,300,000 6% Engineering $584,984 2% Finance $648,477 3% Service $287,132 1% Human Resources P\V - Administration $258,764 $427,103 1% 2%i Operations $4,156,427 18% PW - Water Utilities $1,037,008 4% PW - Sewer Utilities... PW - Water Operations $6,231,513 26% Ms. Bloskas noted that all of the forces at work and decision packages for the Water and Sewer Fund were included in the proposed budget in the following amounts: Forces at Work $3,132,936 Decision Packages $1,544,377 Total Funded FAW & DPs $4,677,313 City Council Joint Meeting Minutes August 26, 2024 Page 8 of 11 The full list of the General Fund, Forces at Work and funded Decision Packages included in the proposed budget are as follows: Ongoing Outside Revenue Net Dept Description 186 Cost Total Sources Total City Wide Real & Personal Property Insurance Increase (13%) 0 13,444 13,444 0 13,444 PW Electricity Increase (2%) 0 8,217 8,217 0 8,217 City Wide Health Insurance Increase (5%) 0 18,401 18,401 0 18,401 City Wide Workers Compensation Increase 0 3,375 3,375 0 3.375 PW_SU Blackhawk WIN Operations Increase @ S% 0 143,262 143,262 0 143262 PW_WO City of Houston Cash Call 42' SETL 2,515,039 0 2,515,039 0 2,515,039 Southeast Water Purrfication Plant - CIP Program PW_SU 2023-2027 (Year 3) 431,198 0 431,198 0 431,198 Total Forces at Work $2,946,237 $186,699 $3,132,936 $0 $3,132,936 Outside One Time Ongoing Revenue Net Dept Description Cost Cost Total Sources Total City Wide Salary Adjustments / Merit 4.0% $0 $109,579 $109579 $0 $109,579 PW_50 Sewer Operator Vehicle (Fl.0 FTE) 45,000 97,826 142,826 0 142,826 PW_SU Equipment Operator - Sewer Utilities (+1.0 FTE) 0 89,646 89,646 0 89,646 PW_WO Water Operator t Vehicle (+1.0 FTE) 4S,000 97,826 142,826 0 142,826 PW_Admin Administrative Vehicle SS,000 4,500 59500 0 59,500 ENG Wastewater Master Plan 1,000,000 0 1,000,000 0 1,000,000 Total Derision Pad"m $ItW,01)0 $399,377 $1,544,377 $0 $1,544,377 Ms. Bloskas identified the following next steps for the budget approval process: • 08/26/2024: Complete public hearing and either: o adopt the budget or o postpone the adoption of the budget to the 09/09/2024 Council Meeting. • 09/09/2024: Conduct a Public Hearing on Tax Rate and Consider the adoption of the proposed tax rate. At the conclusion of the presentation, Mayor opened the discussion to Council for questions and comments. Mayor Pro Tem Matranga asked if the proposed budget included the expenditures incurred with the Hurricane Beryl debris removal. Ms. Bloskas responded that those expenditures were not included in the proposed budget as they were being handled through the current fiscal year budget. Additionally, City Manager Morad Kabiri noted that at this time the estimated amount of expenditures for Beryl related debris and trash pickup and other emergency related activities is in excess of $4.5 million. City Council Joint Meeting Minutes August 26, 2024 Page 9 of 11 At the request of Councilmember Matranga, Mr. Kabiri gave an overview of the 24-inch waterline project and stated that back in the 1990s the Harris -Galveston Subsidence District enacted rules to reduce the use of ground water in order to limit subsidence in the area. Further, at that time, the City was required pursuant to State Law to no longer use groundwater and switch to surface water sources. Mr. Kabiri noted that surface water rights were for the most part already accounted for around the area, so the City partnered with the City of Houston to secure surface water rights from the Trinity River and Lake Livingston. This water is treated out of the Southeast Water Purification Plant and pumped to Friendswood. Because most ground water systems function on a pressure system, Friendswood originally had six water wells strategically placed throughout the city to work off of each other and improve water pressure throughout the city. When the City switched to surface water, Friendswood could no longer rely on these six wells and now, the water has to be pumped all the way from the north end of town to the south end which depending on the circumstance reduces the water pressure to the south end of the city. Mr. Kabiri stated that the 24-inch waterline is intended to run parallel a large part of the water supply at the take points near Timber Creek all the way to the water plant behind Friendswood High School in hopes that this will improve pressure throughout the system, especially during high demand times. With there being no one signed up to speak on this item, Mayor Foreman closed the public hearing at 5:58 p.m. B. Discuss and take action concerning the City of Friendswood's Proposed FY 2024-25 Municipal Budget. City Manager Morad Kabiri presented the item and stated that the Council had two options before them as it related to taking action on the budget. He noted that the Council may choose one of the following: • Adopt the proposed budget for fiscal year 2024 — 2025 as presented, • Adopt the proposed budget with any amendments desired, or • Postpone the adoption of the proposed fiscal year 2024 — 2025 budget until our next regularly scheduled meeting on September 9, 2024. Mr. Kabiri noted that for the most part the budget had not materially changed since it was presented to the Council back in June and discussed multiple times since then. He stated that staff was open to any comments or amendments the Council desired. Mayor Foreman stated that he felt the proposed budget was outstanding and thanked the Finance staff for bringing forth a budget that covered the 5% increase in operations without having a 5% increase in the tax rate. Councilmember Griffon thanked the staff for the budget workshop as it helped him have a better understanding of the budget. Mayor Foreman reminded the Council that the budget that they just approved needed to be supported by the proposed tax rate that will be considered in the September 9' Council meeting. City Council Joint Meeting Minutes August 26, 2024 Page 10 of 11 A motion was made by Councilmember Hanks and seconded by Mayor Foreman that the proposed budget for fiscal year 2024 — 2025 be adopted as revised and presented including revenue projections of $108,172,723 and expenditure appropriations totaling $108,172,723. The vote was the following: The vote for the motion on the table was as follows: Ayes: Mayor Mike Foreman, Councilmember John Ellisor, Councilmember Sally Branson, Councilmember Trish Hanks, Mayor Pro Tern Joe Matranga, Councilmember Robert J. Griffon and Councilmember Brent Erenwert Nays: None. The item passed unanimously. ORDINANCE NO.2024-25 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, APPROVING AND ADOPTING THE CITY OF FRIENDSWOOD, TEXAS, GENERAL BUDGET FOR FISCAL YEAR 2024-25; MAKING APPROPRIATIONS FOR THE CITY FOR SUCH FISCAL YEAR AS REFLECTED IN SAID BUDGET, AND MAKING CERTAIN FINDINGS AND CONTAINING CERTAIN PROVISIONS RELATED THERETO; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. 7. TIRZ BOARD — BUSINESS ITEMS A. Consider the election of a Vice Chair and Secretary of the Board of Directors of Reinvestment Zone Number Two, City of Friendswood. B. Consider Approving the Rules of Procedure of the Board of Directors of Reinvestment Zone Number Two, City of Friendswood. C. Consider adopting the Rules of Procedure of the Board of Directors of Reinvestment Zone Number Two, City of Friendswood. D. Consider approving the Development Agreement by and between Castle Biosciences, Inc. the City of Friendswood, and Reinvestment Zone Number Two, City of Friendswood. 8. CITY COUNCIL - CONSENT A. Consider an ordinance approving the Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Two, City of Friendswood. B. Consider authorizing a Development Agreement by and between Castle Biosciences, Inc, Reinvestment Zone Number Two, City of Friendswood, and the City of Friendswood. City Council Joint Meeting Minutes August 26, 2024 Page 11 of 11 9. ADJOURNMENT With there being no further business, Mayor Foreman adjourned the August 26, 2024, Joint Meeting of the City Council and the Reinvestment Zone Number Tow, City of Friendswood at 6:01 P.M.