Agenda

AGENDA

CITY COUNCIL WORK SESSION
City of Garland

REMOTE MEETING

Monday, November 16, 2020
6:00 p.m.

DEFINITIONS:

Written Briefing: Items that generally do not require a presentation or discussion by the staff or Council. On these items the staff is seeking direction from the Council or providing information in a written format.

Verbal Briefing: These items do not require written background information or are an update on items previously discussed by the Council.

NOTICE: Due to the COVID-19 emergency, and pursuant to Section 551.125 of the Texas Government Code and the executive orders of Governor Greg Abbott suspending provisions of the Texas Government Code and other applicable laws of the State regarding normal open meetings, the City Council will hold this meeting by internet/telephonic remote means.

The meeting will be broadcast by webinar or telephone at the following URL:

https://garlandtx.zoom.us/webinar/register/WN_a6GtUjJuTNaY91zxpL1OJg

Registration for the online meeting is required. The meeting will be recorded and will be available for viewing the next day at www.garlandtx.gov.

For those without internet access to the meeting, a dial-in option is available. The numbers are:

346-248-7799
470-250-9358
470-381-2552

The Meeting ID is: 938 7826 0777

For participants (online and by phone) who wish to speak, a public comments period is provided as the first item on the agenda. If you desire to address the City Council on a matter that is posted on this agenda, please be prepared to do so at the beginning of the meeting. After the City Council has begun its discussion of the agenda, you will not be recognized to speak. The public comments portion of the meeting is provided for citizen comments. You are invited to offer a comment or make a statement on any item on the agenda. However, please bear in mind that offering comments should not be done in the form of posing questions. Generally, due to legal restrictions, the City Council is not able to answer questions during the public comments portion of the agenda. Your comments must relate to an item on this agenda - non-germane comments are not in order.

If an Executive Session is included as part of the agenda for this meeting, the Executive Session will be conducted by teleconference between and among the members of the City Council and relevant City staff. Public access to that call is prohibited by State law.

COUNCIL HOUSE RULES

1. Decisions based on issues, goals and vision.	9. Follow goals, principles and action agenda.
2. Do not take things personal.	10. Decide, vote and move on.
3. Project a positive attitude.	11. Avoid ambushes - Council or staff.
4. Focus on issues, not on the person.	12. Talk to staff before meetings.
5. Be prepared to discuss issues.	13. Vote our convictions, but be willing to compromise "What is best for Garland."
6. Maintain decorum.	14. Follow Roberts Rules of Order consistently.
7. Keep your sense of humor.	15. Agree to disagree.
8. Honor and respect each other; accept each other as individuals.	16. Be open and honest.

NOTICE: The City Council may recess from the open session and convene in a closed executive session if the discussion of any of the listed agenda items concerns one or more of the following matters:

(1) Pending/contemplated litigation, settlement offer(s), and matters concerning privileged and unprivileged client information deemed confidential by Rule 1.05 of the Texas Disciplinary Rules of Professional Conduct. Sec. 551.071, Tex. Gov't Code.

(2) The purchase, exchange, lease or value of real property, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Sec. 551.072, Tex. Gov't Code.

(3) A contract for a prospective gift or donation to the City, if the deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third person. Sec. 551.073, Tex. Gov't Code.

(4) Personnel matters involving the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee or to hear a complaint against an officer or employee. Sec. 551.074, Tex. Gov't Code.

(5) The deployment, or specific occasions for implementation of security personnel or devices. Sec. 551.076, Tex. Gov't Code.

(6) Discussions or deliberations regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City and with which the City is conducting economic development negotiations; or to deliberate the offer of a financial or other incentive to a business prospect of the sort described in this provision. Sec. 551.087, Tex. Gov't Code.

(7) Discussions, deliberations, votes, or other final action on matters related to the City’s competitive activity, including information that would, if disclosed, give advantage to competitors or prospective competitors and is reasonably related to one or more of the following categories of information:

generation unit specific and portfolio fixed and variable costs, including forecasts of those costs, capital improvement plans for generation units, and generation unit operating characteristics and outage scheduling;
bidding and pricing information for purchased power, generation and fuel, and Electric Reliability Council of Texas bids, prices, offers, and related services and strategies;
effective fuel and purchased power agreements and fuel transportation arrangements and contracts;
risk management information, contracts, and strategies, including fuel hedging and storage;
plans, studies, proposals, and analyses for system improvements, additions, or sales, other than transmission and distribution system improvements inside the service area for which the public power utility is the sole certificated retail provider; and
customer billing, contract, and usage information, electric power pricing information, system load characteristics, and electric power marketing analyses and strategies. Sec. 551.086; Tex. Gov't Code; Sec. 552.133, Tex. Gov’t Code]


1.		Public Comments on Work Session Items Persons who desire to address the City Council on any item on the Work Session agenda are allowed three minutes to speak. Speakers are taken only at the beginning of the meeting, other than invited testimony. Speakers are grouped by Work Session item and will be taken in the order of the Work Session agenda. Speakers must submit to the City Secretary a completed speaker’s card before the beginning of the meeting. Speaker cards will not be accepted after the Mayor calls the meeting to order. Speaker cards are available in the lobby, at the visitor’s side of the Work Session Room, and from members of staff. Speakers are limited to addressing items on the Work Session agenda – any item relating to a Regular Session agenda item should be addressed at the Regular Session and any item not on an agenda may be addressed during the open microphone at the end of the Regular Session.

2.		Consider the Consent Agenda A member of the City Council may ask for discussion or further information on an item posted as a consent agenda item on the next Regular Meeting of the City Council. The Council Member may also ask that an item on the posted consent agenda be pulled from the consent agenda and considered for a vote separate from consent agenda items on the regular agenda. All discussions or deliberations on this portion of the work session agenda are limited to posted agenda items and may not include a new or unposted subject matter.

3.		Written Briefings:

	a.	Bond Refunding - Electric Utility System Commercial Paper Notes and Revenue Bonds Council is requested to authorize staff to refund approximately $50 million of Electric Utility System Commercial Paper Notes, Series 2018 and approximately $5.4 million of Electric Utility System Revenue Bonds, Series 2011 with Electric System Revenue Refunding Bonds, Series 2021. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 2, 2021 Regular Meeting.

	b.	Bond Refunding - Water and Sewer System Revenue Refunding Bonds and Commercial Paper Notes Council is requested to authorize staff to refund approximately $35 million of Water and Sewer System Commercial Paper Notes, Series 2015, approximately $14.4 million Water and Sewer System Revenue Bonds, Series 2011 with Water and Sewer Revenue Refunding Bonds, Series 2021. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 2, 2021 Regular Meeting.

	c.	Amendment to Downtown/Forest-Jupiter - TIF #1 Boundaries and Project Plan Council is requested to approve an ordinance expanding Downtown/Forest-Jupiter - TIF#1 boundaries to include Montgomery Park and update the TIF #1 Project and Financing Plan to include additional projects. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the December 1, 2020 Regular Meeting.

	d.	Future Tennis Facility Planning Status Update At the November 9, 2020 Work Session, Council Member Jerry Nickerson and Mayor Scott LeMay asked for an update on plans for future tennis facilities in Garland.

4.		Verbal Briefings:

	a.	COVID-19 Response Update and Further Actions Staff will provide an update to Council and ask for Council direction, if needed, on various matters related to COVID-19 and actions being taken by the City. Discuss the possibility of reductions and/or limitations to city services and/or city facilities as a result of increasing COVID-19 cases, hospitalizations and related issues

	b.	2021 Texas Legislative Season Briefing Ty Embrey with Lloyd Gosselink Attorneys at Law will provide Council with a briefing regarding the upcoming 2021 Texas Legislative Session.

	c.	Zoning Notification Procedures Update During the July 20, 2020 City Council Work Session, the City Council discussed zoning case notification procedures. The item was assigned to an Ad-Hoc Committee, consisting of three (3) Council members and two (2) Plan Commissioners. The Ad Hoc Committee will report its recommendations to the City Council.

	d.	Temporary Parklet Program Discussion Staff will present draft guidelines for a Temporary Parklet Program, as discussed by the Development Services Committee during their October 19, 2020 meeting.

	e.	Home Improvement Incentive Program Update Neighborhood Vitality will provide a summary of the outcomes for the first round of the Home Improvement Incentive Program.

	f.	Downtown Facade Improvement Program - Pilot Year Review and Proposed Amendments Staff will brief Council on the pilot year of the Downtown Historic District Facade Improvement Program and request direction on proposed changes to the program.

5.		Announce Future Agenda Items A member of the City Council, with a second by another member, or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or a committee of the City Council. No substantive discussion of that item will take place at this time.

6.		Adjourn

GARLAND
POLICY REPORT


City Council Work Session Agenda		Work Session Item 3.b.
Meeting Date:	11/16/2020
Item Title:	Bond Refunding - Water and Sewer System Revenue Refunding Bonds and Commercial Paper Notes
Submitted By:	Matt Watson, Finance Director
Strategic Focus Areas:	Sound Governance and Finances

ISSUE
Consider refunding approximately $35 million of Water and Sewer System Commercial Paper Notes, Series 2015 and approximately $14.4 million Water and Sewer System Revenue Bonds, Series 2011 with Water and Sewer System Revenue Refunding Bonds, Series 2021. The purpose of this transaction is to refund a portion of variable rate commercial paper notes with fixed rate long-term debt and to generate debt service savings.
OPTIONS
Authorize staff to refund approximately $35 million of Water and Sewer System Commercial Paper Notes, Series 2015, approximately $14.4 million Water and Sewer System Revenue Bonds, Series 2011 with Water and Sewer Revenue Refunding Bonds, Series 2021. Do not approve the refunding transaction.
RECOMMENDATION
Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 2, 2021 Regular Meeting.
BACKGROUND
The Water and Sewer System Commercial Paper Program finances various capital improvement projects for the Water and Sewer System. Funding capacity of this program is $90 million. Due to current market conditions, the City of Garland has an opportunity to refund the $35 million of variable rate commercial paper notes with fixed rate long-term Water and Sewer System Revenue Refunding Bonds. In addition, due to current market conditions, the City of Garland has an opportunity to refund approximately $14.4 million Water and Sewer System Revenue Bonds, Series 2011. This refunding will generate approximately $2.8 million in debt service savings between fiscal years 2021 and 2031. The exact amount of savings is subject to market conditions between now and the final pricing date of February 2, 2021.
CONSIDERATION
The Refunding Bonds will be fixed rate debt with a 20-year amortization period. The Refunding Bonds will have a declining amortization schedule with projected annual debt service payments of approximately $850 thousand in 2021, $3 million between 2022 and 2024, $3.8 million between 2025 and 2031 and $2.1 million between 2032 and 2041. The projected interest rate is 1.8%. The exact amount of annual debt service and interest rate is subject to market conditions between now and the final pricing date of February 2, 2021.

GARLAND
POLICY REPORT


City Council Work Session Agenda		Work Session Item 3.c.
Meeting Date:	11/16/2020
Item Title:	Amendment to Downtown/Forest-Jupiter - TIF #1 Boundaries and Project Plan
Submitted By:	Matt Watson, Finance Director
Strategic Focus Areas:	Growing Economic Base Commercially Thriving Downtown Enhanced Quality of Life through Amenities, Arts, and Events Sound Governance and Finances

ISSUE

At the August 31, 2020 Work Session, Council requested that staff bring forward a recommendation to the Board of Directors of the Tax Increment Financing (TIF) Zone #1 to expand the boundaries of the Forest/Jupiter area of the TIF to include Montgomery Park. In addition, Council requested that a portion of the tax increment be dedicated toward projects in the Forest/Jupiter area (specifically Montgomery Park). The Board of Directors held a meeting on October 14, 2020 and unanimously approved moving forward with this recommendation.

OPTIONS

Approve an ordinance expanding Downtown/Forest-Jupiter - TIF#1 boundaries to include Montgomery Park and update the TIF #1 Project and Financing Plan to include additional projects.
Do not approve an ordinance expanding TIF#1 boundaries to include Montgomery Park and update the TIF #1 Project and Financing Plan to include additional projects.

RECOMMENDATION

Unless otherwise directed by Council, this item will be scheduled for formal consideration at the December 1, 2020 Regular Meeting.

BACKGROUND

Tax increment financing (TIF) is a tool local governments of Texas have used since 1986 to finance public improvements and programs within defined areas that have unique challenges and opportunities for economic development. The City Council established TIF #1 (Downtown/Forest-Jupiter) by ordinance on December 2, 2003. On January 20, 2015, the TIF board and City Council approved a Project Plan and Financing Plan (required by Chapter 311 of the tax code) which authorized the use of TIF funding to be used towards the City Center and Oaks Fifth Street Crossing developments. Due to the success of these projects, the TIF #1 Project and Financing Plan was updated once again on May 1, 2018 with $3.1 million of additional projects that included a Facade Improvement Program, Managed District Services, Enhanced Downtown Square Programming, Public Art, and Public Infrastructure.

At the August 31, 2020 Work Session, staff reported to Council that TIF #1 is projected to receive $1.3 million of additional tax increment revenue between 2021 and 2024 that could be programmed into new or existing projects within the TIF zone boundaries. In addition, staff reported that approximately 37% or $460,000 of the tax increment revenue would be generated from properties located in the Forest/Jupiter area of the TIF zone. Council recommended that the Forest/Jupiter area receive its proportionate share of this revenue for improvements to the area. In addition, Council recommended extending the boundaries of the Forest/Jupiter area of the TIF to include Montgomery Park and programming $460,000 into this area for improvements to the Park including: a restroom facility, security lighting, soccer field improvements, and additional site amenities. On October 14, 2020, staff took this recommendation to the TIF #1 Board of Directors, and they unanimously approved moving forward with expanding the TIF zone boundaries to include Montgomery Park and updating the Project and Financing Plan to include funding for these improvements to the Park. In addition, the Board unanimously approved allocating the remaining portion of the $1.3 million towards infrastructure and downtown improvements.

Based on this proposal, TIF#1 is projected to spend $6.9 million between FY 2021 and FY 2024 (TIF #1 is currently set to expire on December 31, 2024). The table below outlines the specific projects these funds are proposed to be allocated towards.

Projects	Remaining Funding
Oaks Fifth Street Crossing ED Agreement	$835,000
City Center Debt Service	1,899,000
Managed District Services	729,000
Facade Improvement Program	490,000
Enhanced Downtown Square Programming	50,000
Public Art	45,000
Forest/Jupiter Area (Montgomery Park)	460,000
Infrastructure and Downtown Improvements	2,415,000
TOTAL	$6,923,000

CONSIDERATION

Unless otherwise directed by Council, staff will begin notifying the public and conduct a Public Hearing at the December 1, 2020 Regular Meeting (as required by state law) at which time Council will also formally consider an ordinance expanding the TIF zone boundaries to include Montgomery Park and updating the Project and Finance Plan.