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HomeMy WebLinkAboutCC Minutes 2014-09-08 Regular 09/08/14 4325 STATE OF TEXAS )( ' CITY OF FRIENDSWOOD )( COUNTIES OF GALVESTON/HARRIS )( SEPTEMBER 08, 2014 )( MINUTES OF A REGULAR MEETING OF THE FRIENDSWOOD CITY COUNCIL THAT WAS HELD ON MONDAY, SEPTEMBER 08, 2014, AT 4:30 PM AT FRIENDSWOOD CITY HALL COUNCIL CHAMBERS, 910 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE FOLLOWING PRESENT CONSTITUTING A QUORUM: MAYOR KEVIN HOLLAND MAYOR PRO-TEM JIM HILL COUNCILMEMBER STEVE ROCKEY COUNCILMEMBER BILLY ENOCHS COUNCILMEMBER PAT MCGINNIS COUNCILMEMBER JOHN SCOTT COUNCILMEMBER CARLGUSTAFSON CITY ATTORNEY STEVE WEATHERED CITY MANAGER ROGER ROECKER CITY SECRETARY MELINDA WELSH I REGULAR SESSION Mayor Holland called the meeting to order. The invocation was given by Pastor Danny Mercer with Friendswood Church of Christ. Mayor Holland led the Pledge of Allegiance to the United States and to the State of Texas. COMMUNICATIONS FROM THE PUBLIC Mayor Holland asked if anyone would like to speak. No one spoke. WORK SESSION Mayor Holland opened the discussion regarding an update on capital projects. Assistant City Manager Morad Kabiri stated the architectural and civil design activities are underway for the library expansion, the schematic layouts have been completed, Staff has received a set of the 90% submittal plans for review and comment, a set of civil/drainage plans have been provided to Galveston County Consolidated Drainage District for approval, and a commercial site plan has been provided to the Planning and Zoning Commission for the same. In regards to Fire Station No. 4 and the new fire station at the Public Safety Building, Staff, in conjunction with the architect, are working on the solicitation of qualifications for construction managers in pursuit of a 'Construction Manager at Risk' approach to tackling the two facilities. Staff anticipates advertising for the Construction Manager will be published in the upcoming week. A professional services contract was awarded at the May Council meeting for the design of the Sportspark improvements. The proposed improvements include new restroom and concession facilities, parking lot, four youth softball fields, and lighting upgrades. Preliminary schematics/layouts have been completed and a design meeting was held for comments. Staff has scheduled a meeting with the Girls Softball Association for their review and input. Architectural and civil design activities are well underway for the basketball pavilion, and equipment is on order for the lighting improvements at the detention pond fields. The lighting improvements should be completed in time for the fall football season. An agreement has been struck with Friendswood Development Company (FDC) for improving access to Lake ' Friendswood. FDC has agreed to allow access to the lake through the West Ranch Subdivision. Additionally, FDC will build 55 to 60 parking spaces, a restroom/concession pavilion and an automatic gate for controlled access. Following a 'meeting in June with a landscape architect, a professional services design proposal was submitted in late August for improvements at the lake, and Staff anticipates 09/08/14 4326 bringing a professional services contract to Council for consideration in October. Separate from the proposed improvements, Staff has recently had issues of vandalism at the lake. It appears people have been intentionally driving through the newly installed security fence. A contract has been awarded for the final phases of the Splash Pad and the proposed Rotary Pavilion at Stevenson Park. Separate from those improvements, modeling efforts and final design plans are underway for the bridge crossing Cowards Creek, and Staff continues to work with nearby property owners regarding the alignment of a trail system to and from the bridge. A professional services design contract is on tonight's agenda for Council consideration/approval for the Round 1 Street Improvement project, and if approved, engineering should commence on the project. Discussion took place between Mayor, Council, and Staff regarding estimated groundbreaking dates on bond funded capital projects and an update on the Baker Road Rehabilitation Project. The estimated groundbreaking date for the library would be in February of 2015, Fire Station projects the first quarter of 2016, Sportspark improvements in the Spring of 2015, Centennial Park improvements in January or February of 2015, Lake Friendswood in the spring or early summer of 2015, and Round 1 Street Improvements in mid-summer of 2015. A construction contract has been awarded for the Baker Road Rehabilitation Project, the current roadway is being torn up, is a 120-day contract, and should be completed by February 2015. Once the roadway is completed, the irrigation system will be started. Mayor Holland reported that over half the funds for the irrigation project have been donated by private citizens. Mayor Holland opened the discussion regarding the City's proposed Fiscal Year 2014-2015 General Fund Budget. Administrative Services Director Cindy Edge and Deputy Director of Fiscal Operations Katina Hampton presented a PowerPoint presentation regarding the proposed budget. Ms. Edge stated the first step in the budget process is identifying priorities, look for needs, submit Decision Packages, and make the Decision Packages part of the Multi-Year Financial Plan. Council had a retreat with Staff in June so Staff could receive guidance to develop the proposed budget. Budget development is made up of Forces ' at Work and Decision Packages, revenue projections, current service expenditures, and each department scrubbed their budgets. The Fiscal Year 2015 budget priorities from Council was funding for street maintenance from current resources, limiting operations and maintenance (O&M) impact of bond-funded projects, fiscal responsibility, public safety, and evaluating potential uses of the remaining '/2 cent sales tax. Ms. Hampton stated the Fiscal Year 2015 proposed budget revenue of$48.9 Million is made up of property tax levy of $15 Million, charges for services of $10.7 Million, miscellaneous receipts of $10.5 Million (bond proceeds of $9.653 Million), sales tax of $4.6 Million, intergovernmental revenue of $3.1 Million and other revenue of$5.0 Million. Ms. Edge stated the interest and sinking rate (debt service rate) is holding steady, could have lower a little but felt it was better for the bond issue, getting ready to issue the debt, will not have any impact on debt portion of the rate until next year, and rate increase is not reflective on the proposed budget. Councilmember Enochs stated that last year's budget was$38 Million, increased this budget year due to the first bond issuance being shown as revenue. Ms. Hampton stated the Fiscal Year 2015 proposed budget expenses of $42.6 Million is made up of salaries and benefits of $17.8 Million with additions, reductions and reorganization in two departments, supplies of $1.3 Million, maintenance of $1.1 Million, services of $9.1 Million, capital improvements of $7.4 Million, and debt service obligations of$5.2 Million. Councilmember Rockey stated he thought a procurement person was going to be hired. Ms. Hampton stated the position was in the 2014 budget. Ms. Edge stated an offer has been made to someone and was accepted today, will be coming on board soon, was a panel interview of Staff that interviewed the applicants. City Manager Roger Roecker stated at the last Council meeting there was a question about contracting for the Multi-Media Communications Specialist, found cost to be on the low end, $75 to $95 an hour and upwards of$160 an hour. Staff could go that direction but would not fulfill the function that Staff wanted to have for the proposed position, need to be able to respond in real time, and a portion of the job would be social media. Ms. Edge continued the presentation with the funded Decision Packages, replacement of six Automated External Defibrillator (AED) units, Department of Transportation (DOT) physicals for Commercial Driver's License (CDL) holders with follow-up exams and verification after employment, health insurance increase for City ' employees, Park Scenario No. 1 Improvements (Dog Park) with supplies, benches, and irrigation equipment, Park Scenario No. 1 improvements (Disc Golf) for benches, 2013 Bond Project (basketball pavilion) for supplies, landscaping maintenance, trash cans and park benches, irrigation and mowing 09/08/14 43271 services for two fields at Baker Road, employee merit, Multi-Media Communications Specialist second ' quarter hire, and Peace Officer mid-year hire for a total of $507,274 proposed funded Forces at Work/Decision Packages for the General Fund. Councilmember Scott asked if some of the parks Decision Packages could be funded through the bond, and Ms. Edge answered the items were small dollar amounts and did not want to finance. Councilmember McGinnis asked if the salaries listed for the two new positions reflected mid-year hires, and Ms. Edge answered that the amount listed is proportional to the time the position will be hired throughout the year, and also includes benefits. Councilmember Enochs stated in regards to the Police Officer positions, one Decision Package for a Mid-Year Peace Officer hire is funded and one is unfunded, asked if this would put the City at 60 officers, and Police Chief Bob Wieners answered the City currently has 61 officers, have taken over the Court Bailiff budget and staffing of that position. Ms. Edge continued with the Friendswood Volunteer Fire Department; (FVFD)/Emergency Medical Services (EMS) Donations Fund. Decision Packages will be paid withi donated funds from the $6 that is on utility bill, replacement of five LifePak Monitors and replacement of Ambulance Unit No. 48, total funded Decision Packages for FVFD/EMS Donation Fund will be $385,000. Water and Sewer funded Forces at Work/Decision Packages were listed with the Forces at Work total at $620,026 and Decision Packages total at $133,803, total funded Forces at Work/Decision Packages for the Water and Sewer Fund of$753,829. Unfunded Decision Packages, which includes a Peace Office mid-year hire, driver license verification and follow-up after employment, replace street striping machine because the machine is over 10 years old and is past its useful life, industrial zero-turning riding mower which would replace an existing mower, increase of .25 FTE for a part-time position with a current seasonal position at .35 FTE and going to part-time year-round at .60 FTE, Stevenson Park benches) Splash Pad water features and spinners for playground equipment, copier/scanner/printer/fax replacement for Administrative Services Department (ASO), City Manager's Office (CMO) and the Community Development Department (CDD), employee hearing screening, bonds for cash handlers; employee vision screening, Friendswood Volunteer Fire Department FVFD) request for self-contained breathing apparatus (SCBA) cylinder replacement program, FVFD request for hourly rate increase in health insurance premiums, FVFD request for bunker gear replacement, online learning for career development of City employees. Councilmember McGinnis asked regarding the employee hearing and vision screening, is risk and liability attached, are there employees at routine risk of impacting their hearing or vision, and Deputy Director of Administrative Services/Human Resources Bill Bender answered that several employees work with heavy equipment, is a risk to those employees, and are putting a program together to assist with the risk. Councilmember McGinnis asked if the hearing and vision screening could be part of the employee's health coverage, and Mr. Bender answered if the screening is done under the employee's healthcare the employer does not have a right to the information: Councilmember Rockey stated the screening is important and is surprised it has not been done already. Mr. Bender stated it has become an issue over the last two years. Councilmember Enochs stated Staff is not looking at the screening from an occupational health standpoint but are evaluating employees to make sure they are fit for duty to ensure the employee is capable of performing the work required safely. Mr. Bender agreed with Councilmember Enochs and stated Staff will eventually have a hearing and vision conservation program. Ms. Edge continued with the unfunded Decision Packages list with the addition of one new entryway sign and one solar light at FM 518 and landscaping maintenance, as well as the addition of an Animal Control Clerk. Police Chief Bob Wieners stated reevaluated with budget scrubbing, in 2013, calls for service were down by 10% and at-large calls were down by 20%, owner pickups were down by 20%, impound rate is not going down, once analysis was done it negated the reason behind adding Staff, reviewed and found 450 dogs went through the facility in the first year, on track to be 625 to 650 this year, would rather do a soft reset, and can reevaluate if needed later. Ms. Edge continued with the unfunded Decision Packages list with the FVFD request for vehicle maintenance budget increase, FVFD request for increase in insurance costs such as vehicle insurance, accidental death and dismemberment, and Workers Compensation, FVFD request for Internal Revenue Service (IRS) ruling impact on Stipend Program, FVFD request for increase in training funds for Fire Division, and FVFD request for increase in merit pool for full time employees. Ms. Edge explained that all Decision Packages listed so far could be funded with the current tax rate and are above the blue line on the slide, the ' remaining Decision Packages would fall below the line of being funded with the current tax rate. The Decision Packages that fell below the current tax rate line were listed with FVFD request to add three full- time Paramedics to current staff, a new modular building, and fire training field improvements at Fire Station No. 2. Councilmember Hill asked if it would be possible to fund one full-time Paramedic in place 09/08/14 4328 of the Animal Control Clerk, and Ms. Edge answered there is a differential, one full-time paramedic is $68,333 and the Animal Control Clerk is $53,271. FVFD could close the gap based on when the Paramedic was hired. Councilmember Hill stated EMS could use another Paramedic, currently make a lot of calls. Mayor Holland stated a Paramedic could be hired in the second quarter. Ms. Edge stated it may need to be a mid-year hire to make it work. When FVFD delivered the Decision Package plan it was delivered as a whole, Staff split it, was presented that their goal was for three Paramedics to cover a 24- hour shift. Councilmember Rockey clarified that as he understands everything, up to the blue line on the unfunded Decision Packages could be done by not doing the Effective Tax Rate but keeping the tax rate flat, and anything below the blue line would require a tax increase. Ms. Edge continued with the unfunded Decision Packages for the Water and Sewer Fund with driver license verification follow-up and verification after employment, bonds for cash handlers, employee hearing and vision screening, total for unfunded Decision Packages for the Water and Sewer Fund is$3,801. Discussion took place between Mayor, Council, and Staff regarding the tax increase due to the bond issuance should be $.02 for the first two years, and $.01 thereafter. Council's guideline of Public Safety was well addressed in the Decision Packages, analysis of the '/z cent sales tax has not been done since direction from Council has not been given, there are a variety of types of uses, the consensus of Council was to have a discussion at the October Council meeting regarding the types of uses for the %:cent sales tax increase. Current debt projections are until 2035, paying interest along the way, look into ways to reduce debt before 2035. The Effective Tax Rate versus the flat tax rate was discussed. If Council decides not to go with the Effective Tax Rate, there are differing opinions on how the revenue from the flat tax should be spent. Councilmember Scott stated he would support the flat tax rate if debt would be decreased, Decision Packages need to be reviewed and discussed by Council on the financial impact of each item. Mayor Holland stated he is in favor of keeping the tax rate the same, are not expanding spending to meet increased revenue but are doing things that have not been able to afford in past years. If the Effective Tax Rate is used, it will cost more to catch up if Council waits until another year. Councilmember Gustafson stated the Effective Tax Rate has been held for the last five to six years, the City ends up absorbing the costs in the form of a reduction of services, hold the rate where it currently is and look into other sources of revenue for additional funding needed. Councilmember Hill stated the City has held the tax rate down for many years, have not given Staff additional funding to spend in the last five years, every month it takes more to provide services, citizens wholeheartedly approved the bond, do not have the opportunity to make revenue quicker in order to pay off debt, and Staff needs a little more money to operate the City. If Council votes on a tax rate above the Effective Tax Rate, there will be two Public Hearings scheduled for September 22, 2014, and September 29, 2014, and the tax rate would go into effect in October 2014. Mayor Holland opened the discussion regarding CenterPoint Energy Electric's (CenterPoint) application to amend its rate schedules. Planning Manager Nick Haby explained this item and stated CenterPoint wants to replace the current street lights with Light-Emitting Diode (LED) lights, would like to recoup the costs by passing cost along to their customers, only the Harris County portion of the City of Friendswood is in CenterPoint's territory. The City of Friendswood is involved with the Gulf Coast Coalition of Cities (GCCC)which was formed to review filings by utility companies for rate adjustments with the Public Utility Commission (PUC). If the review finds that the utility company's rates are not correct, the Coalition appeals to the PUC and asks for a reduction in the rates. GCCC has been fairly successful in past appeals. A couple of years ago the Coalition incorporated as a non-profit but the City of Friendswood chose not to join the Coalition as a dues paying member. Dues go towards GCCC's expenses in the appeal process. GCCC has been involved in three cases since they incorporated, not sure if the PUC will rule that the current case will be reimbursable. Due to the fact that the City of Friendswood is a non-dues paying member of the GCCC, the City has three options in the action that can be taken. The first two options require Council to take action prior to October 1, 2014. Option No. 1 would be for Council to pass the resolution later on the agenda to intervene with GCCC for this case only. If the case turns out to be non-reimbursable, the City's portion of the $10,000 GCCC has already authorized out of the Coalition's reserve would be roughly $1,000 if no further expenditures were required. Option No. 2 would be for Council to pass a resolution later on the agenda to intervene with GCCC, and then join GCCC as a dues paying member shortly thereafter, dues are based off of population, $.15 per resident, the cost to the City would be approximately $5,700 annually. Option No. 3 would be to take no further action, CenterPoint's 09/08/14 4329 application would be deemed approved by the City of Friendswood, and CenterPoint would be authorized to begin the retrofit and cost recovery process. The City's rates would increase based on CenterPoint's cost projections, and if GCCC's efforts resulted in a reduction to the proposed rates, the City of Friendswood would not benefit by paying lower rates. Texas New Mexico Power could follow suit in the future, similar to the Smart Meters that were installed. Discussion took place between Mayor, Council, and Staff regarding that there are 30 cities in the Gulf Coast Coalition of Cities (GCCC), there is not a city that has the resources to intervene on their own, and the firm that represents the GCCC is experienced in the appeals process. City Manager Roger Roecker stated the Compensation Study was not discussed under the budget work. session, and Deputy Director of Administrative Services/Human Resources Bill Bender would like to speak on the Compensation Study. ACTION ITEM **Councilmember Rockey moved to go back to Agenda Item 5B, Work Session regarding the City's� proposed Fiscal Year 2014-2016 General Fund Budget. Seconded by Councilmember Enochs. The motion was approved unanimously. Deputy Director of Administrative Services/Human Resources Bill Bender stated the Compensation Study, was done by Fox Larson, contacted 11 other cities to look at wages to determine if the City's minimal! salary per grade was competitive with the market, and results were the City is 5% under market. Administrative Services Director Cindy Edge stated initial review, used 70% of the market, wanted to be better than 50%, 21 non-Police Department positions are affected, annual cost with benefits would be around $35,000, 26 positions are affected in the Police Department, and annual cost with benefits would be around $98,000. Staff is proposing to spend more time with the study, do not want to get compression` in the plan, with Council's approval Staff would bring it to the October meeting in the form of a budget adjustment, may have enough money to do. CLOSED EXECUTIVE SESSION Mayor Holland asked if anyone would like to speak regarding the Executive Session. No one spoke. Council convened into Executive Session in accordance with the Texas Government Code, pursuant to Section 551.072—Deliberation regarding real property. RECONVENE INTO OPEN SESSION Council reconvened into Open Session with no action taken later in the meeting. PUBLIC HEARING Mayor Holland called a Public Hearing to order to receive comments from the public, both oral and written, regarding the proposed Fiscal Year 2014-2015 General Operating Budget for the City of Friendswood. Mayor Holland asked if anyone would like to speak in favor of or in opposition to the request. No one spoke. Mayor Holland adjourned the Public Hearing. JOINT PUBLIC HEARINGS Mayor Holland and Planning and Zoning Commission Chair Mark McLean called a Joint Public Hearing to 09/08/14 4330 order to receive comments from the public, both oral and written, regarding a zone classification change request for a tract of land containing .642 acres; being part of the Southeasterly '% of Lot 9, Block 2 situated in the J.R. Williams or Sarah McKissick League, property located at 110 East Willowick Avenue, Galveston County, to change from Downtown District(DD)to Planned Unit Development(PUD). Planning and Zoning Commission Chair McLean asked if anyone would like to speak in favor of or in opposition of the request. Robert Griffon with the Anson Jones Masonic Lodge No. 1416, applicant, explained Anson Jones Masonic Lodge and history, and listed famous Mason's. Modern Freemasonry began in England when the cathedrals were being built. Objective of Freemasonry is to make good men better, is not a secret organization. The masonic fraternity is known for its charitable work and contributions, all of the masonic fraternities taken together including the Scottish Rite, Shriner's, the York Rite Mason's, and the Knights Temple contribute over $3 Million daily to charity. Anson Jones Masonic Lodge is involved in the local public schools and community, is a not-for-profit 501(C)3 organization, gave $8,000 in scholarships to graduating seniors this past school year, and helps orphans as well with the Angel Fund. The City of Friendswood has the Order of the Eastern Star organization. The Freemason organization is open to both men and women, and are involved in many activities throughout the City. The present lodge was built in 1943 and used as a temporary Army barracks for the soldiers heading off to World War II, moved to its current location in 1966 and has served as a meeting facility since. Mr. Griffon stated it is his duty as the senior officer to draw the design of a new facility upon the trestle board, and showed Council a picture of the proposed facility as well as provided details and specifications on the proposed building. Mr. Griffon thanked Staff and stated they helped him a lot and are unbelievably great people. Planning and Zoning Commission Chair McLean asked if anyone else would like to speak. No one spoke. Planning and Zoning Commission Chair McLean adjourned the Planning and Zoning Commission's ' portion of the Joint Public Hearing. Mayor Holland left Council's portion of the Joint Public Hearing open. Mayor Holland and Planning and Zoning Commission Chair Mark McLean called a Joint Public Hearing to order to receive comments from the public, both oral and written, regarding a zone classification change request for a tract of land containing 5.2196 acres; being part of Reserve B in the Quail Crossing Subdivision, located at 5000 Watkins Way, Harris County, to change from Multi Family Residential-High Density (MFR-H) to Multi Family Residential-High Density — Specific Use Permit (MFR-H — SUP) to add NAICS Use No. 6111, Elementary and Secondary Schools. Planning and Zoning Commission Chair McLean asked if anyone would like to speak in favor of or in opposition of the request. No one spoke. Planning and Zoning Commission Chair McLean adjourned the Planning and Zoning Commission's portion of the Joint Public Hearing to the upstairs conference room. Mayor Holland left Council's portion of the Joint Public Hearing open. COMMUNICATIONS FROM THE PUBLIC Mayor Holland asked if anyone would like to speak. No one spoke. COMMUNICATIONS FROM COMMITTEES AND SPECIAL.REPORTS Senior Citizen Advisory Committee Chair Paul Gordner reported on the activities at the Senior Center. Staff is doing an excellent job at the Senior Center. The bi-monthly newsletter is distributed by e-mail with a few being published at the Center upon request. Daily transportation to and from the Senior Center is provided, diverse activities are provided to improve seniors physically, mentally, socially, and spiritually. Average daily attendance at the center is over 120. Events for the year included a spaghetti luncheon, birthday socials, spring and fall picnics, monthly bingo, Senior Fish Day, banana split social, 09/08/14 4331 sundae social, brownie social, watermelon bash and bingo, casino extravaganza, health fair, Go Texan luncheon, grandparents social, tea party, BBQ fundraiser, Christmas in September, pie social, quarterly breakfast, cookie social, Fashion Show, and the National Hotdog Day celebration. The holiday events included a Valentine's Day social, Thanksgiving potluck, Christmas Luncheon, Cinco de Mayo celebration, and Veterans luncheon. The center averages three to five trips per month including shopping, Opry, Bingo, museums, and other area attractions. Senior Program Manager Genie Balderaz led 36 seniors on a cruise to Cozumel on the Navigator of the Seas out of Galveston, another cruise is being planned for the future. Assistant Senior Program Manager Jamie Eubanks has received) certification as a Zumba Gold instructor, and will soon be leading Zumba Gold at the Center. Accomplishments and improvements for the year were a productive garden, a sidewalk to the adjacent parking lot, new picnic tables, and a new pavilion is in the planning. Some classes have as many as 45 participants so a larger facility may be needed in the future. It has been a very busy year and the committee is expecting better things to happen in the future. Delinquent Tax Attorney Mike Darlow gave the annual collection report and stated the City off Friendswood does not have a delinquent tax collection problem, good relationship with Court Administrator Pat Riffel and Staff in Municipal Court, looking forward to getting to know the Incodel software, worked on utility account collections and did not have much success, is a hard debt to collect,) holds up results of the City of Friendswood for other clients, all is going well, and appreciates working with Council. Galveston County Economic Alliance President C.B. "Bix" Rathburn gave the annual report from Galveston County Economic Alliance (GCEA). Mr. Rathburn had a handout for Council and stated he has been in the President/CEO position for 90 days, economic development in the area has seen a resurgence, recently have lead recruitment efforts for three large industrial projects with a total potential, investment exceeding $3 Billion, excited about the potential of these projects. Prospect development is ' going well, process of due diligence for the world's largest methanol production and export facility, due' diligence budget is over $100 Million, over the last 8 years have worked over 20 major national and international development projects, ranging from industrial to medical to chemical to manufacturing, and will continue to grow. Is proud to be host of the Small Business Development Center, training programs and consulting services focus on enhancing the success of small business of all types and stages of development. In the last seven years there have been 7,657 counseling sessions, 172 new business starts, 814 new jobs created, and 94 jobs retained. Year-to-date there are over 200 active clientsf provided 1,100 hours of professional counseling, produced 180 new jobs, retained 16 jobs, and creation 16 new business startups. In the north county area, year-to-date there are 47 active clients, provided over 200 hours of professional counseling, produced 14 new or retained jobs, creation of two new businesses with an investment of$300,000. The Alliance is much more than small business, advocates in Austin and Washington D.C., currently working on new Strategic Plan, had another handout for Council regarding the Strategic Plan process, what would the City like the Alliance to do in the future. Water is a big concern, working closely with the Governor's office, looking for new sources of water, have talked to three large desalination operations, exploring those efforts, long-term need for this area is more water, top goal for the next 18 months is to develop a plan to bring 100 Million gallons of water into the watershed over the next 10 years. Transportation, developing a plan along Interstate 45, the main corridor, look at area West of Interstate 45, is opportunity to develop high quality jobs. Galveston County, sits perfectly for manufacturing, have feedstock from chemical plants. Communication infrastructure has some holes, does not allow Galveston County to compete for some technological company relocations, and is one of the areas that will need improvements. Residential support, enjoys working with the City df Friendswood's Community and Economic Development Committee and Economic Development Coordinator Karen Capps, Live Here Work Here vision, applauds Friendswood school districts, and is excited to be a part of this effort. CITY MANAGER'S REPORT City Manager Roger Roecker reported that the City received positive financial news from Standard & Poor's (S&P)who raised the long-term rating of the City's general obligation bonds two notches from "AA- to "AA+" while affirming the City's stable financial outlook. The stable outlook assessment reflects 09/08/14 4332 S&P's opinion that the City's financial position is strong, and their expectation that the area economy will not change significantly. This rating review reflects the City's sound financial management practices and decisions and is an indication to the taxpayer of Friendswood's commitment to ensuring the City's long- term financial health. A bond rating, similar to a person's credit score, represents the creditworthiness of the city's bonds to potential investors based on economic base, financial indicators, outstanding debt and financial management policies and practices. The rating is for a two-year outlook period and will likely remain unchanged during that time. The City Manager reported that the 31" Annual National Night Out, a unique crime/drug prevention, community building event sponsored by the City of Friendswood, has been scheduled for Tuesday, October 7, 2014. Last year's National Night Out campaign involved citizens, law enforcement agencies, civic groups, businesses, neighborhood organizations and local officials from over 15,000 communities from all 50 states, U.S. territories, Canadian cities and military bases worldwide. National Night Out is designed to heighten crime and drug prevention awareness, generate support for and participation in local anti-crime programs, strengthen neighborhood spirit and police-community partnerships, and send a message to criminals letting them know that neighborhoods are organized and fighting back. The City hopes that all neighborhoods will join in this community gathering event. Friendswood Police Department offers their.services for any neighborhood or Homeowner's Association interested in having an officer stop by and speak with their residents. The City Manager reported that this summer has been a hot one, and a good measure of"just how hot?" is the number of service calls related to waterline breaks the Public Works Department has received and responded to. Extremely dry weather conditions can cause an increase in the number of water main breaks. Extended periods of low to no rainfall and high temperatures will cause the ground to be too dry and can force the ground to shift. The ground motion can create breaks in waterlines as they remain at a constant elevation while the ground shifts. During normal weather conditions, water main breaks may average less than five per month. Unfortunately during adverse weather conditions the number of main ' breaks can increase up to 15 to 25 per week. When water mains break, water pressure in the surrounding areas can be decreased. In order to get water service back to normal operating conditions, the Public Works Department must act as quickly as possible to repair the water mains, and make every effort to repair waterlines and restore pressure in a timely and professional manner. This often requires crews to work extremely long days and into the late night hours. if you see water bubbling up in the pavement or grassy areas or water ponding in an area that is normally dry, please contact the City of Friendswood's Public Works Department directly. After business hours, during weekends and holidays these conditions can be reported to the Police Department. The City Manager reported that Galveston and Harris counties are responsible for mosquito control. The City of Friendswood supplements the counties' efforts by spraying at all City facilities, public parks and by providing additional spraying in public rights-of-way in the Harris county portion of Friendswood, since Harris county only focuses on areas that have been impacted by West Nile Virus. The City of Friendswood has contacted both Harris and Galveston counties to request additional spraying service.. Residents can also call their respective county to request spraying in a specific area. ACTION ITEMS (continued) **Councilmember McGinnis moved to approve the Schedule for the City's Series 2015 Permanent Improvement and Refunding Bonds. Seconded by Councilmember Rockey. City Manager Roger Roecker introduced John Robuck and Ryan O'Hara, Financial Advisors with BOSC, Inc. Mr. Robuck congratulated Council on the increase in the City's credit rating, was a two level increase, one notch away from AAA score. Mr. Robuck presented a PowerPoint presentation regarding a schedule of events for the Bond issuance, discussed the current market conditions in regards to the Bond Buyer Index, currently General Obligation Bonds are at 4.85%, historically 5.18%, market is great to sell bonds. Discussed bank qualified bonds versus non-bank qualified bonds, bank qualified status of sales is if less than $10 Million in bonds are issued in a calendar year, benefit is local banks and banks across the 09/08/14 4333 country can purchase the bonds at a lower rate. Two options in the issuance of bonds, non-bank qualified option, $21.065 Million in bonds issued in 2015, bank qualified option, $9.825 Million in bonds issued in 2014 and $9.655 Million in bonds issued in 2015. The bank qualified option generates a debit service difference of approximately $70,000 compared to the non-bank qualified option. The City has an opportunity to refund a portion of its outstanding General Obligation and Waterworks and Sewer System Revenue Bond as General Obligation debt at a lower interest rate and receive interest cost savings. The schedule of events for the Permanent Improvement Refunding Bonds for 2014, first draft of Preliminary Official Statement (POS) on September 16, 2014, second draft of the POS on October 06, 2014, rating agency calls the week of November 03, 2014, final draft of the POS on November 04, 2014, print and; distribute the final POS on November 10, 2014, Bond pricing on November 17, 2014, and Bond closing on December 16, 2014. The schedule of events for Permanent Improvement Bonds for 2015, first draft of Preliminary Official Statement (POS) on September 16, 2014, second draft of the POS on October 06, 2014, rating agency calls the week of November 03, 2014, final draft of the POS on November 04, 2014, print and distribute the final POS on November 24, 2014, Bond pricing on December 15, 2014, and Bond closing on January 14, 2015. Discussion took place between Mayor, Council, and John Robuck and Ryan O'Hara, Financial Advisors with BOSC, Inc., regarding that the current payoff of the bonds is 20 years, could shrink time-frame 10 to 15 years, payoff can be structured to any time-frame Council would like. Citizens of Friendswood can buy bonds during the bond issuance, will need to go through a broker, BOSC, Inc., will provide underwriters' with Friendswood brokers information, Council should be able to purchase bonds, can have it set up fort the citizens of the City of Friendswood to get the first opportunity to buy the bonds, and Mr. Robuck's recommendation is for Council to go with the bank qualified option. ***Councilmember McGinnis amended the main motion to use the bank qualified option and approve the schedule of events. ' Seconded by Councilmember Rockey. The amended main motion was approved unanimously. **Councilmember Scott moved to approve disposition of RFP No. 2013-05 for Integrated Finance and Administration System, and award to Tyler Technologies for their Incode and EnerGov Software packages, and authorize the appropriation of funds of$637,700. Seconded by Councilmember Hill. Information Technology Director Todd Yeager reported that after a lengthy evaluation of the proposed products, Staff is prepared to make a recommendation to Council, introduced Jerry Byrd, consultant, toy explain the selection process and present the recommendation. Mr. Byrd complimented Staff on thei hard work and stated Staff made sure the decision was in the best interest of the City, presented ai ri PowerPoint presentation regarding system selection and acquisition. Phase 1 of the journey began in May of 2013 with discovery and production of the Request for Proposal (RFP), Phase 2 was to publish the RFP and evaluate responses, sent the RFP to 13 potential vendors, four vendors attended a preJ, proposal meeting, received three qualified responses, in Phase 3, vendors presented their company and product history, three vendors gave a one-day-long demonstration of their product. Staff eliminated one vendor due to having no Texas installs of their proposed system, several site visits in Houston area selected a court system and decided to delay remainder portion of the product, contract negotiation with, finalist vendor Tyler Technologies, ready for Council to make a decision on the contract award. The scope of acquisition is Municipal Court which was previously acquired, funding for Municipal Court software was on an additional contract, Financials, Utility Billing, Operations, all-inclusive implementation of software, maintenance, extraction of data from AS/400 and conversion, implementation assistance and training. Only other item not accounted for is $100,000 for servers and other hardware. System investment estimate is a grand total of$637,700. Discussion took place between Mayor, Council, consultant Jerry Byrd, and Staff regarding that there will ' be no additional Staff cost. Staff will become more fully engaged and there will be no need for outside assistance. The Enterprise Resource Planning (ERP) system will be the Information Technology Services Department's project for the upcoming year, and efficiencies brought on by a new ERP system could be determined in the next budget cycle. Funding for the ERP project is not in the Fiscal Year 2014- 09/08/14 4334 2015 General Fund Budget, two options available for funding, Fund Balance or finance over three years at 1.19% interest rate, could interfere with bond, would not come out of Fund Balance all at once. Began the purchasing process of current system in 1996 and final piece was applied in 1999, and current system cannot do what the rest of the world can do. Tyler Technologies has a policy called Evergreen, would not have to pay for a better version, would not cost anything to upgrade. To upgrade the current system the City would have to purchase an upgrade, annual costs will be $96,000 and is in line with current annual costs, both systems will be run simultaneously for a while. The operations portion of the software will be for Community Services, building permits, inspections, Public Works, everything not financial. Purchasing servers, proposed software will be installed on the City's servers, will be operating system in-house, a couple of components will be outside. At the end of the current budget year there will be $3 Million in excess of the above 90-day fund, and Mud Gulley is set aside as well as other projects. If the project was put in debt service it would complicate the bond issue but could be done. ***Councilmember Scott moved to amend the main motion to approve disposition of RFP No. 2013-05 for Integrated Finance and Administration System, award to Tyler Technologies for their Incode and EnerGov Software packages, and authorize the appropriation of funds of$637,700 from the above 90-day fund. Seconded by Councilmember Hill. The amended main motion was approved unanimously. Discussion took place between Mayor, Council, consultant Jerry Byrd, and Staff regarding the time period to implement the software project, 12 to 18 months, Tyler Technologies could go as fast as the City would like, recommended to pace the project. Payments will be weighted, a percentage is due at signing, when software is delivered, when the system goes live, and a certain period after the system goes live. With concurrence of Council, Mayor Holland moved to Agenda Item 21 C, Resolution R2014-19. RESOLUTION **Councilmember Rockey moved to approve Resolution R2014-19-A resolution of the City Council of the ' City of Friendswood, Texas, approving the sixth bond issuance of the West Ranch Management District, for the proposed amount of$9,735,000. Seconded by Councilmember Hill. The motion was approved 6-1 with Councilmember Gustafson opposed. Assistant City Manager Morad Kabid explained this agenda item, is the sixth bond issuance request, there is a wrinkle with this request, City of Friendswood is looking to issue refunding bonds as well this year and next year, the City has asked West Ranch Management District to postpone their issuance to 2016 or issue taxable bonds in 2015, agreed to the limitations, resolution is for Council to authorize the consent. With concurrence of Council, Mayor Holland moved to Agenda Item 14, Discussion and possible action regarding approving the award of a professional services contract to IDS Engineering Group for engineering services for Lift Station No. 18 and authorizing the Mayor to execute the contract. ACTION ITEMS (continued) **Councilmember Rockey moved to approve a professional services contract with IDS Engineering Group for engineering services related to Lift Station No. 18 in the amount of$81,750. Seconded by Councilmember Scott. The motion was approved unanimously. **Councilmember Enochs moved to approve the disposition of RFQ No. 2014-06 for Engineering Services of 2013 Street Bond Projects — Round 1 Design and award a professional services contract to Cobb, Fendley and Associates, Inc., and authorize the appropriation of funds of$221,698. Seconded by Councilmember Hill. The motion was approved unanimously. **Councilmember Enochs moved to keep the ad valorem at the existing tax rate. Seconded by Councilmember Hill. 09/08/14 4335 Discussion took place between Mayor, Council, and Staff regarding the proposed ad valorem tax rate, current action item is to have a recorded vote on the tax rate Council desires, and budget adoption is a separate item that will be considered at the October 6, 2014, Council meeting. If Council were to lower the tax rate to the Effective Tax Rate, the time needed for Public Hearings has been exceeded, the current tax rate is 0.5914. ***Councilmember Enochs moved to amend the main motion to approve 0.5914 as the tax rate for Fiscal Year 2015. Seconded by Councilmember Hill. The amended main motion was approved 6-1 with Councilmember Scott opposed. **Councilmember Hill moved to approve a traffic control plan for the Whispering Pines Avenue/Friendswood Link Road reconstruction project. Seconded by Councilmember Gustafson. Assistant City Manager Morad Kabiri explained that a construction contract was previously awarded for' the Whispering Pines Avenue/Friendswood Link Road expansion project, a joint effort with the General Land Office (GLO) utilizing a combination of Disaster Recovery Funds and General Fund Reserves/Water: and Sewer Working Capital. Prior to awarding a construction contract, an effort was undertaken to' rescope the project from a four-lane facility to a three-lane facility from FM 518 to approximately Hibiscus Lane and four-lane boulevard from Hibiscus Lane to Blackhawk Boulevard. The rescoping was a result of bids coming in for the project well beyond the funding provided by GLO. It was soon determined following the start of construction that the City's original intent of providing two-way traffic throughout the construction period was not feasible without increasing the construction budget. Staff has been working, diligently with the contractor and engineer of record to develop alternative solutions. Option No. 1 is to, maintain two-way traffic throughout the construction period. Doing so would extend the existing 1311 ' month construction schedule by a number of months, and would increase cost by an additional) $158,000 for temporary asphalt. Option No. 2 is to provide one-way traffic from FM 518 to Hibiscus Lane for a period of seven months, and the remaining portion in Harris County would remain two-way traffic.) Doing so would reduce the existing 13 month construction schedule, and would result in a cost savings oft $50,000. Staff has reached out to both Friendswood Independent School District(FISD) and Clear Creek Independent School District(CCISD) and both are amenable to Option No. 2. Discussion took place between Mayor, Council, and Staff regarding residents that live along Whispering Pines Avenue/Friendswood Link Road, would have to take FM 2351 or FM 528 from Interstate 45 to' return home, residents that live on Whispering Pines Avenue/ Friendswood Link Road wanting to go to Friendswood would have to go to Blackhawk Boulevard. Option No. 1 would add additional time and money to the project, Option No. 2 would be an additional seven months with a cost savings of$50,000 j Staff could ask the contractor if crews could work nights to speed up the time frame. Staff has not communicated with the residents along Whispering Pines Avenue/Friendswood Link Road, waiting on Council's decision, was an unforeseen item. Residents could be.notified by using door hangers, reader boards, phone calls to designated areas, website, and e-mail blast. Emergency vehicle responses would be impacted, will lose response times, need to have two-way traffic, suggestion was made to one of the ambulances at the Forest Bend station, and staffing would be an issue. ***Councilmember Hill moved to amend the main motion to approve Option No. 2. Councilmember Gustafson withdrew his second to the motion. The-motion died for lack of a second. ****Councilmember Rockey moved to amend the main motion to approve Option No. 1 Seconded by Councilmember McGinnis. The amended main motion was approved 4-3 with Councilmembers Hill, Enochs, and Gustafson opposed. I **Councilmember Rockey moved to approve the purchase of three new vehicles for the Friendswood Volunteer Fire Department and disposal of the vehicles being replaced. Seconded by Councilmember Enochs. The motion was approved unanimously. 09/08/14 4336 Discussion took place between Mayor, Council, and Friendswood Volunteer Fire Department Chief Stan Kozlowski regarding the 2007 Suburban Duty vehicle that has not reached the 15-year life span required of larger vehicles in the Vehicle Replacement Plan, Duty vehicle responds to all calls, never has a chance to cool down, has maintenance issues, and new Duty vehicle will not have a light tower. **Councilmember Enochs moved to approve the appointment of Renae Rives, Kathy Molinaro, and Barbara Blanchard to fill vacancies on the Fourth of July Steering Committee with terms to expire November 2017. Seconded by Councilmember Scott. The motion was approved unanimously. **Councilmember Hill moved to approve a contract with Inland Pipe Rehab for the City's Sewer Rehabilitation Program in the amount of$300,000. Seconded by Councilmember McGinnis. The motion was approved unanimously. RESOLUTIONS (continued)' **Councilmember Enochs moved to approve Resolution R2014-17 - A resolution of the City of Friendswood, Texas, soliciting support for legislative action to change the deadline for posting the proposed property tax rate notice as required by Texas Local Government Code Section 140.010. Seconded by Councilmember Hill. The motion was approved unanimously. **Councilmember McGinnis moved to approve Resolution R2014-18 - A resolution of the City of Friendswood suspending the October 1, 2014, effective date of CenterPoint Energy Houston Electric LLC's, application to amend its rate schedules to permit the City time to study the request; approving cooperation with the Gulf Coast Coalition of Cities; hiring Lloyd Gosselink Attorneys and Consulting Services to negotiate with the company and direct any necessary litigation and appeals; finding that the ' meeting at which this resolution is passed is open to the public as required by law; requiring notice of this resolution to the company and legal counsel, and approving Option 1, as discussed earlier in this meeting,for an estimated cost of$1,000, if no further expenditures are required., Seconded by Councilmember Enochs. The motion was approved unanimously. ORDINANCES **Mayor Holland moved to approve the Second and Final reading of Ordinance No. 2014-21 - An ordinance amending Ordinance No. 2012-04 in order to approve an annual rate adjustment as provided for in the City of Friendswood — IESI solid waste franchise and subtracting the fuel component of the Consumer Price Index(CPI)out of the rate adjustment. Seconded by Councilmember Rockey. The motion was approved 6-1 with Councilmember Enochs opposed. **Councilmember Hill moved to approve the Second and Final reading of Ordinance No. 2014-22 - An ordinance amending the Code of Ordinances of the City of Friendswood, Texas, Appendix A — "Signs," Section 15., "Temporary Signs," Subsection 15.3., "Temporary Direction Signs" by revising, adding and updating regulatory requirements for temporary direction signs; providing a penalty for violation in an amount not to exceed $2,000, or as otherwise provided by law; repealing all ordinances or parts of ordinances inconsistent or in conflict herewith; and providing for severability. Seconded by Councilmember McGinnis. The motion was approved unanimously. **Councilmember Rockey moved to approve the Second and Final reading of Ordinance No. 2014-24 - An ordinance of the City of Friendswood adopting an amended Water Conservation Plan for the City of Friendswood to promote responsible use of water; providing a severability clause; providing a penalty for each day of violation of any provision hereof; providing for the disconnection of water service for noncompliance with the provision of Water Conservation Plan; and providing an effective date. Seconded by Councilmember McGinnis. The motion was approved 6-1 with Councilmember Gustafson opposed. 09/08/14 43371 I **Councilmember Enochs moved to approve the First and Final reading of Ordinance No. 2014-25 - An ordinance amending City of Friendswood, Texas, Ordinance No. 2013-37, passed and approved October 7, 2013, same being an ordinance approving and adopting the City's General Budget for Fiscal Year 2013-2014 by approving "Budget Amendment XII" to the "Original General Budget of the City of Friendswood, Texas, for the Fiscal Year 2013-2014"; providing for supplemental appropriation and/or transfer of certain funds; providing for severability; and providing other matters related to the subject. Seconded by Councilmember Rockey. The motion was approved unanimously. Planting Manager Nick Haby reported that the Planning and Zoning Commission's vote for Agenda Item 22 E, an ordinance amending the zoning classification for property located at 5000 Watkins Way, approximately 5.2196 acres, part of the Thomas Choate Survey, Abstract No. 12, also being out ofl Reserve "B" Final Plat of the Quail Crossing as recorded under Film Code No. 402131, Harris County, Texas, being the same tract called 5.22 acres in the name of Blackhawk Apartments II, LTD., as recorded in H.C.C.F No. 20100269982 from "Multi Family Residential — High Density" (MFR-H) to "Multi Family Residential — High Density — Specific Use Permit" (MFR-H-SUP) to allow NAICS Use No. 6111, "Elementary and Secondary Schools"was approved unanimously. **Councilmember Scott moved to approve the First reading of Ordinance No. T2014-26 - An ordinance amending the Code of Ordinances of the City of Friendswood, Texas, Appendix C — "Zoning," by amending the zoning classification for 5000 Watkins Way, a 5.2196 acre tract out of the Thomas Choate Survey, Abstract No. 12, also being out of Reserve "B" final plat of the Quail Crossing as recorded under Film Code No. 402131, Harris County, Texas, being the same tract called 5.22 acres in the name of Blackhawk Apartments Il, Ltd., as recorded in H.C.C.F. No. 20100269982, being more particularly described in Exhibit"A" attached hereto, from "Multi Family Residential— High Density" (MFR-H) to "Multi Family Residential — High Density — Specific Use Permit" (MFR-H-SUP) to allow NAICS Use No. 6111, "Elementary and Secondary Schools"; providing for amendment of the Official Zoning Map; providing a penalty in an amount not to exceed $2,000 for each day of violation of any provision hereof; and providing for severability. Seconded by Councilmember McGinnis. The motion was approved unanimously. Planning Manager Nick Haby reported that the Planning and Zoning Commission's vote for Agenda Item 22 F, an ordinance approving a zoning classification change for property generally described as 110 East Willowick Avenue, a tract of land consisting of approximately .642 acres, being a portion of the southeasterly '% of Lot 9, Block 2, in Friendswood, Galveston County, Texas, a subdivision of part of the J.R. Williams or Sarah McKissick League in Galveston County, Texas, according to the map of said Friendswood of record in Volume 254, Page 37, County Clerk, Galveston County, Texas, from "Downtown District" (DD) to "Planned Unit Development" (PUD); to allow NAICS Use No. 8134 "Civic and Social Organization"was approved unanimously. **Councilmember Scott moved to approve the First reading of Ordinance No. T2014-27 - An ordinance amending the Code of Ordinances of the City of Friendswood, Texas, Appendix C, "Zoning", Section 3, "provision for Official Zoning Map", by changing the zoning classification for property, generally described as 110 East Willowick Avenue, a tract of land consisting of approximately .642 acres, being a portion of the southeasterly '% of Lot 9, Black 2, in Friendswood, Galveston County, Texas, a subdivision of part of the J.R. Williams or Sarah McKissick League in Galveston County, Texas, according to the map of said Friendswood of record in Volume 254, Page 37, County Clerk, Galveston County, Texas, being more particularly described in Exhibit "Al", attached hereto, from "Downtown District" (DD) to "Planned Unit Development" (PUD); to allow NAICS Use No. 8134 "Civic and Social Organization" pursuant to the attached site plan and Exhibit"B"; providing for an amendment of the City's Official Zoning Map; providing for a penalty in an amount not to exceed $2,000 for each day of violation of any provision hereof; and providing for severability. ' Seconded by Councilmember Hill. The motion was approved unanimously. Mayor Holland closed Council's portion of the Joint Public Hearings. I 09/08/14 4338 COMMUNICATIONS FROM THE MAYOR AND COUNCILMEMBERS Mayor Holland stated the Mayor and Council were challenged by the Friendswood Rotary Club Directors ' to complete the "ALS (Amyotrophic Lateral Sclerosis) Ice Water Challenge", and asked the City Manager to assist Council in setting up the event. City Manager Roger Roecker stated Staff would be happy to assist with the effort. Councilmember Rockey stated the first Friendswood Farmers Market will be October 4, 2014, at 8:00 AM to 12:00 PM, in the Chamber of Commerce parking lot, will eventually move to Stevenson Park. Councilmember Enochs stated it was good to see the Houston Texans win after 14 straight losses. Councilmember Gustafson stated he received positive feedback on the disc golf course. The Community and Economic Development Committee (CEDC) were tasked with coming back to Council with an action plan at the Council spring retreat, rough draft is half done, should have something to present to Council as early as November. CONSENT AGENDA **Councilmember Scott moved to approve all items on the Consent Agenda as presented: A. Approving a Congregate Meal Program Interlocal Agreement with Galveston County Parks and Senior Services Department for the City's Senior Citizen meal program. B. Approving a Mutual Aid Agreement with Harris County for emergency management purposes and authorizing the Mayor's signature. C. Approving a contract for $5,000 with Galveston County Economic Alliance for regional economic development services and authorizing the Mayor to execute. D. Approving an Interlocal Contractual Agreement with the League City Police Department for Breath Alcohol Technical Supervisor services. E. Accepting the July 2014 Property Tax Report. F. Approving the Minutes of the July 14, 2014, August 4, 2014, and ' August 18, 2014, Council Meetings. Seconded by Mayor Holland. The motion was approved 6-1 with Councilmember Enochs opposed. The meeting was adjourned at 9:10 PM. Mayor Kevin I and Attest: Melinda Welsh, TRMC :p City Secretary .•N�••••• co ••9TFOF