Agenda

AGENDA

CITY COUNCIL WORK SESSION
City of Garland
Work Session Room, City Hall
William E. Dollar Municipal Building
200 North Fifth Street
Garland, Texas
February 18, 2019
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.

Regular Item: These items generally require discussion between the Council and staff, boards, commissions, or consultants. These items are often accompanied by a formal presentation followed by discussion.

[Public comment will not be accepted during Work Session
unless Council determines otherwise.]

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.		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.

2.		Written Briefings:

	a.	Police Contact Data In accordance with the Texas “Racial Profiling” statute (Texas Code of Criminal Procedure Article 2.131 through 2.138), the Garland Police Department has been collecting police contact data for the purpose of identifying and responding to concerns regarding racial profiling since the statute's implementation in 2002. In accordance with the law, the Police Department is required to submit this report to the City Council by March 1st of each year for the data from the previous calendar year.

	b.	Optional Redemption of Tax Notes When Council approved the issuance of $12,195,000 Tax Notes, Series 2018 on September 18, 2018, it was contemplated that the City would exercise the call provision to redeem the notes prior to the scheduled maturity date of November 15, 2019. Staff requests Council consider approving a resolution to redeem the Tax Notes, Series 2018 as contemplated. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 19, 2019 Regular Meeting.

	c.	2018-19 Budget Amendment No. 1 Council is requested to approve Budget Amendment No. 1 as proposed. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 5, 2019 Regular Meeting.

	d.	Joint Election Contract Council is requested to approve a contract with Dallas County Elections to secure election services for all Garland registered voters for the May 4, 2019 General Election. Dallas County will provide the estimated cost for the election after February 20, 2018. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 19, 2019 Regular Meeting.

	e.	Sale of Property - 450 East Kingsley Road Council is requested to approve the sale of 450 East Kingsley Road to the Garland Foundation for Development and provide an executed deed without warranty. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 19, 2019 Regular Meeting.

	f.	Sale of Property - 502 East Kingsley Road Council is requested to approve the sale of 502 East Kingsley Road to the Garland Foundation for Development, Inc. and provide an executed deed without warranty. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 19, 2019 Regular Meeting.

3.		Verbal Briefings:

	a.	Preview of 2019 Proposed CIP Staff will provide an overview of the 2019 Proposed Capital Improvement Program (CIP), which will be formally presented by the City Manager at the February 19, 2019, Regular City Council Meeting.

	b.	Hinton Landfill Permit Modification The Site Operating Plan (SOP), Part IV of the operating permit issued by the Texas Commission on Environmental Quality (TCEQ) for the Hinton Landfill, must be modified due to an increase in waste acceptance rates. The waste acceptance rate was last modified in 2006. The SOP requires modification of waste acceptance rates if the maximum daily average is exceeded for four consecutive quarters. The 2006 modification set the maximum daily average of waste acceptance at 1,500 tons per day and that rate was exceeded each quarter over FY 2017/18. Staff will brief Council on the permit modification and public notification process.

	c.	Bond Program Public Education Plan Multiple public education/information tools are being produced to educate voters about the upcoming bond election. The Public & Media Relations Director will provide an overview and a timeline for when those tools will be available.

	d.	Transportation Update The Transportation Director will provide an update on recent developments regarding advancing the IH 635 East Project, SH 78 and I-30.

	e.	GRACE in Healing Hands At the request of Council Member Deborah Morris and Mayor Lori Barnett Dodson, Council is requested to discuss a request to waive approximately $100,000 in city permits and fees related to constructing a dental clinic on First Street and State Street. The clinic is being sponsored by Lavon Baptist Church and Dr. Grace Smart to serve those in the community that would otherwise not have access to dental care.

4.		Discuss Appointments to Boards and Commissions

		Council Member Jerry Nickerson Jerry Carter - Parks & Recreation Board

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.		Council will move into Executive Session

		EXECUTIVE SESSION AGENDA 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:



		The City Council will convene in executive session pursuant to Sec. 551.074, to consider 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 involving the: Appointment of Jeffrey L. Bryan as Chief of Police of the Garland Police Department.

		The City Council will convene in executive session under the provisions of Sec. 551.087, TEX. GOV'T CODE for 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. Potential development in the Shiloh-Jupiter area

7.		Adjourn

GARLAND POLICY REPORT

City Council Work Session Agenda		Work Session Item 2.c.
Meeting Date:	02/18/2019
Item Title:	2018-19 Budget Amendment No. 1
Submitted By:	Ron Young, Budget Director
Strategic Focus Areas:	Sound Governance and Finances

ISSUE

Amend the 2018-19 Adopted Budget in order to appropriate available funds for the following:

Projects approved in last year's Budget but not completed by the fiscal year-end.
Rollover of open Purchase Orders from the 2017-18 fiscal year.
Expenditures not anticipated in the 2018-19 Adopted Budget.

OPTIONS

Approve Budget Amendment No. 1 as proposed.
Approve portions of Budget Amendment No. 1.
Do not approve Budget Amendment No. 1.

RECOMMENDATION

Option (A) – Approve Budget Amendment No. 1 as proposed. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 5, 2019 Regular Meeting.

BACKGROUND

(1) Carryover of 2017-18 Incomplete Projects

(a) Rolled-Forward Funds for Street Upgrades

The FY 2017-18 Revised Budget for the Infrastructure Repair & Replacement Fund included $2,900,000 for Street Pavement Improvements that was not spent prior to the end of FY 2017-18. Budget Amendment No. 1 proposes to increase FY 2018-19
operating appropriations by $2,900,000 to complete various concrete street replacement projects.

A Budget Amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(b) Rolled-Forward Funds in the Information Technology Replacement Fund

The FY 2017-18 Revised Budget for the Information Technology (IT) Replacement Fund included $1,255,168 for replacement equipment that was not purchased by the close of the fiscal year. Budget Amendment No. 1 proposes to increase FY 2018-19 appropriations by $1,255,168 in the IT Replacement Fund to purchase previously approved equipment.

A Budget Amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(c) Rolled-Forward Funds in the Hotel/Motel Tax Fund for Heritage Tourism

Program

The FY 2017-18 Revised Budget for the Hotel/Motel Tax Fund included $205,000 for the Heritage Tourism Program to promote Downtown Garland as a visitor destination with additional wayfinding and gateway signage. A new funding strategy for Downtown was developed to optimally align funding sources, including the Downtown TIF Fund and the Hotel/Motel Tax Fund, to appropriate needs within Downtown. Advancement of the Heritage Tourism Program was pending approval of the strategy as well as the Financing and Project Plan for TIF #1, which includes Downtown Garland. Proposals for the use of these funds will be taken to Council for direction and approval. Budget Amendment No. 1 proposes to increase FY 2018-19 operating appropriations by $205,000 in the Hotel/Motel Tax Fund.

A Budget Amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(d) Rolled-Forward Funds in the Equipment Replacement Fund

The FY 2017-18 Revised Budget for the Equipment Replacement Fund included $368,000 to replace seven pieces of equipment that did not get purchased by the end of the year. The previously approved equipment includes one truck for the Health Department, one van for the Parks, Recreation & Cultural Arts Department, one utility trailer for Garland Power & Light, one truck for Wastewater Utility, one truck for Environmental Waste Services, one vehicle for Stormwater Management Utility, and one van for Facilities Management. Budget Amendment No. 1 proposes to increase the FY 2018-19 operating appropriations by $368,000 to purchase the previously approved equipment.

A budget amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(e) Rolled-Forward Funds in the SafeLight Fund

The FY 2017-18 Revised Budget for the SafeLight Fund included $197,000 for the completion of traffic safety programs led by the Transportation Department. Programs include stop bar and crosswalk resurfacing, supplemental crossing guard signage, replacement of flashing crosswalks, florescent school signs and other signs, and a safety audit. Budget Amendment No. 1 proposes to increase the FY 2018-19 operating appropriations by $197,000 to complete these programs.

A budget amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(2) Rolled-Forward Encumbrances from Fiscal Year 2017-18

When an order is placed for goods or services, a Purchase Order is issued that encumbers the budgeted funds. This has the effect of reserving the funds for future payment of the items covered in the Purchase Order. Every year on September 30, when the fiscal year ends, there are open Purchase Orders related to goods or services that have been ordered but not yet received. Accordingly, the funds reserved for these open Purchase Orders are still in the year-end fund balances since the transactions are not yet completed.

Because the purchase of these open items was authorized by Council in the previous fiscal year (2017-18), the City’s practice has been to roll these encumbrances forward into the current fiscal year (2018-19). This has the effect of increasing the current year’s appropriation by the amount of the open Purchase Orders or encumbrances. The funding to cover the expenditures is available in the fund balance since payment was not made before the close of the fiscal year.

The projected fund balance for the current fiscal year is unaffected by the “roll forward” because it was assumed in the 2018-19 Adopted Budget that the expenditures would be completed in the prior year. The presence of the funds in the fund balance is above and beyond what the Budget assumes for the 2018-19 year-end balance.

Budget Amendment No. 1 proposes that encumbrances totaling $12,565,434 be rolled forward to 2018-19. Of the total rollover amount, $1,075,205 is related to the General Fund. Attachment A provides a detailed listing by fund of individual outstanding encumbrances over $25,000.

A Budget Amendment is required due to the timing of the expenditures only. There is no additional financial impact.

(3) Expenditures Not Anticipated in the 2018-19 Adopted Budget

(a) Transportation Equipment

SafeLight Fund requests approval of $110,000 to purchase an additional thermoplastic markings machine and traffic sign printer. The thermoplastic markings machine is requested in response to the Street Department’s increase in asphalt overlays, which has greatly increased the amount of yellow thermoplastic markings. The traffic sign printer is a large printer and associated equipment to allow the City to print virtually any sign color or type, enabling the in-house fabrication of signs that have been typically fabricated by third parties. These signs will meet the quality and longevity of Transportation’s newer standard traffic regulatory and warning signs.

Budget Amendment No. 1 proposes to increase the SafeLight Fund’s FY 2018-19 capital appropriations by $110,000 to purchase the traffic safety equipment for the Transportation Department. Funding for the new signage will come from fund balance reserves in the SafeLight Fund.

(b) Rifle Replacement Program

Narcotic Seizure Fund requests approval of an additional $22,500 to purchase rifle replacements for the Police Patrol Division. The replacement of Patrol rifles was discussed with City Council by Chief Bates during the budget presentations held in August 2018 regarding the use and expenditure of Narcotic Seizure Funds. At that time, Council approved $5,000 for this purpose. Since the budget discussions last fall, additional Narcotic Seizure funds have been awarded by State and/or Federal courts. The Patrol Division is requesting to replace 25 rifles that are beginning to experience mechanical failures. This is the first of a two to three-year process to replace 140 Patrol rifles.

Budget Amendment No. 1 proposes to increase the Narcotic Seizure Fund’s FY 2018-19 operating appropriation by $22,500 to purchase rifle replacements for the Police Patrol Division. Funding for the program will come from fund balance reserves in the Narcotic Seizure Fund.

(c) Recycling Partnership Contract – FCC Environmental Services

City Council, at the December 4, 2018, Regular Meeting, authorized the City Manager to execute an amendment to the Single Stream Recyclable Materials Transport, Processing and Marketing Agreement between the City of Garland and Fomento de Construcciones y Contratas, Inc. (FCC). Due to decreased recyclables commodity values and increased operational costs, our current Agreement with FCC has been amended to include $138,000 to pay costs for transporting recyclable materials. FCC transports recyclables from the City’s Recyclable Drop-Off Center to their Materials Recovery Facility in Dallas, Texas, where the materials are processed and sold.

Budget Amendment No. 1 proposes to increase the Environmental Waste Services Fund’s FY 2018-19 operating appropriations by $138,000 to pay for transportation fees. Funding for this request will come from excess fund balance reserves.

(d) Erosion Control Expenses – Hinton Landfill

Environmental Waste Services - Disposal requests approval of an additional $22,000 needed for expenses related to acquisition of rock material used for erosion control at the Hinton Landfill caused by the site receiving 23 inches of rainfall during the months of October through December 2018. The rock material was needed to perform necessary repairs to the main access road and construction of a wet weather disposal working area for customers to offload their solid waste.

Additionally, Environmental Waste Services - Disposal requests approval of $5,700 needed to repair erosion of gullies and intermediate soil cover areas caused by the rainfall during the same period. At times, the front-line bulldozer and backup bulldozer were inoperable due to major mechanical repairs.

Budget Amendment No. 1 proposes to increase the General Fund’s FY 2018-19 operating appropriations by $27,700 to pay for the material needed to perform necessary repairs. Funding for this request will come from excess fund balance reserves.

(e) Water Rate Study

City Council approved, at its January 14, 2019, Work Session, a staff request to engage an outside consulting firm to update the City’s water and wastewater retail cost of service calculations. This project is intended to determine the allocable costs associated with providing water and wastewater services to the City’s various customer classes and, where needed, recommend adjustments to retail service rates that more closely align those rates with achieving the City’s service goals and objectives.

Budget Amendment No. 1 proposes to increase the Water Utility Fund’s FY 2018-19 operating appropriation by $65,000 to hire a firm to perform the study. Funding for this request will come from excess fund balance reserves.

CONSIDERATION

The Street pavement improvements, IT replacement equipment, Heritage Tourism Program funding, replacement vehicles, traffic safety programs, and outstanding Purchase Orders carried forward were fully funded in the FY 2017-18 Budget, and the funds required to cover these expenditures remain within each fund’s respective fund balance. As a result, there is no financial impact from approval of these items. The additional expenses in the SafeLight Fund, Narcotic Seizure Fund, Environmental Waste Services Fund, General Fund, and Water Utility Fund will all be funded out of excess fund balance reserves in each respective fund.

Budget Amendment No. 1 proposes to appropriate funds as follows:

Infrastructure Repair & Replacement Fund
Street Repair and Replacement Projects	$ 2,900,000
IT Replacement Fund
Equipment Purchases	1,255,168
Hotel/Motel Tax Fund
Heritage Tourism Program	205,000
Equipment Replacement Fund
Vehicle Replacement – Various Departments	368,000
SafeLight Fund
Continuation of Traffic Safety Programs	197,000
Thermoplastic Markings Machine & Traffic Sign Printer	110,000
Narcotic Seizure Fund
Rifle Replacement Program	22,500
Environmental Waste Services Fund
Recycling Partnership Contract – FCC Environmental	138,000
General Fund
Erosion Control Expenses – Hinton Landfill	27,700
Water Utility Fund
Water Rate Study	65,000
Various Funds
Rollover of Purchase Order Encumbrances	12,565,434

TOTAL SUPPLEMENTAL APPROPRIATION	$17,853,802

Attachments
PO Rollover List
BA #1 - Financial Summary