Agenda



REGULAR MEETING OF THE CITY COUNCIL September 27, 2022 ADDISON TREEHOUSE 14681 MIDWAY RD. SUITE 200, ADDISON, TX 75001 6:30 PM EXECUTIVE SESSION & WORK SESSION 7:30 PM REGULAR MEETING Notice is hereby given that the Addison City Council will conduct a Regular Meeting on Tuesday, September 27, 2022 at the Addison TreeHouse. A quorum of the governing body will be physically present at the foregoing location. Email comments may be sent to: iparker@addisontx.gov by 3:00 pm the day of the meeting. The meeting will be live streamed on Addison's website at: www.addisontexas.net.


Call Meeting to Order

Pledge of Allegiance

EXECUTIVE SESSION Closed (Executive) Session of the Addison City Council pursuant to: Section 551.071, Tex. Gov. Code, to conduct a private consultation with its attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Tex. Gov. Code, pertaining to: G J Seeding, LLC v. FNH Construction, LLC and Hudson Insurance Company, Cause No. DC-20-11409, 134th Judicial District, Dallas County, Texas.

Reconvene in to Regular Session: In accordance with Texas Government Code, Chapter 551, the City Council will reconvene into Regular Session to consider action, if any, on matters discussed in Executive Session.

WORK SESSION

	1.	Present and Discuss Maintenance of Residential Screening Walls in Addison.

REGULAR MEETING

Announcements and Acknowledgments Regarding Town and Council Events and Activities Present the 2022 Addison Foodservice Safety and Sanitation Awards Discussion of Meetings / Events

Public Comment The City Council invites citizens to address the City Council on any matter, including items on the agenda, except public hearings that are included on the agenda. Comments related to public hearings will be heard when the specific hearing starts. Citizen comments are limited to three (3) minutes, unless otherwise required by law. To address the Council, please fill out a City Council Appearance Card and submit it to a staff member prior to the Public Comment item on the agenda. The Council is not permitted to take any action or discuss any item not listed on the agenda. The Council may choose to place the item on a future agenda.

Consent Agenda All items listed under the Consent Agenda are considered routine by the City Council and will be enacted by one motion with no individual consideration. If individual consideration of an item is requested, it will be pulled from the Consent Agenda and discussed separately.

	2.	Consider Action on the Minutes from the September 13, 2022 City Council Meeting.

	3.	Consider Action on a Resolution Approving an Economic Development Program Grant Agreement with Firehawk Aerospace, Inc. and Authorizing the City Manager to Execute the Agreement.

	4.	Consider Action on a Resolution Approving the Creation of a Trust Under Internal Revenue Code Section 115 For the Purpose of Pre-Funding Other Post Employment Benefits (OPEB) Releated to the City’s Post Employment Health Plan For Retirees; Appointing The City Manager As Trustee; And Providing An Effective Date.

Regular Items

	5.	Present, Discuss, and Consider Action on an Ordinance to Amend the Town's Annual Budget for the Fiscal Year Ending September 30, 2022.

Adjourn Meeting

NOTE: The City Council reserves the right to meet in Executive Session closed to the public at any time in the course of this meeting to discuss matters listed on the agenda, as authorized by the Texas Open Meetings Act, Texas Government Code, Chapter 551, including §551.071 (private consultation with the attorney for the City); §551.072 (purchase, exchange, lease or value of real property); §551.074 (personnel or to hear complaints against personnel); §551.076 (deployment, or specific occasions for implementation of security personnel or devices); and §551.087 (economic development negotiations). Any decision held on such matters will be taken or conducted in Open Session following the conclusion of the Executive Session.

THE TOWN OF ADDISON IS ACCESSIBLE TO PERSONS WITH DISABILITIES. PLEASE CALL (972) 450-7017 AT LEAST 48 HOURS IN ADVANCE IF YOU NEED ASSISTANCE. POSTED BY: ________________________________ Irma G. Parker, City Secretary DATE POSTED: September 22, 2022 TIME POSTED: 5:00 PM DATE REMOVED FROM BULLETIN BOARD: ______________________ REMOVED BY: ________________________________


Council Meeting		Item # 1.
Meeting Date:	09/27/2022
Department:	Parks & Recreation
Pillars:	Excellence in Asset Management
Milestones:	Promote and protect the Addison Way Continue development and implementation of the Long-Term Financial Plan

AGENDA CAPTION:
Present and Discuss Maintenance of Residential Screening Walls in Addison.
BACKGROUND:
The Parks Department maintains some, but not all of the masonry residential screening walls in Addison. Typically, the walls that the Parks Department maintains are identified on plats or surveys by easements for wall maintenance. Over the last few months, several single-family residential neighborhoods have reached out to staff requesting that repairs be made to their perimeter screening walls. The requested repairs are associated with walls that have not been historically maintained by the Parks Department, nor is there a record of a wall maintenance easement on the plat and the walls are located on private property. The neighborhoods that have reached out indicated that previous Town staff committed to maintaining all single-family residential perimeter screening walls to provide a different level of service to Addison residents. In one instance, the Home Owner's Association (HOA) for a neighborhood provided recent e-mail correspondence with a former Town employee that did substantiate this. However, staff cannot find a legal record or documentation of this direction and is requesting Council's direction regarding the maintenance of single-family residential masonry perimeter screening walls. To facilitate the conversation, staff will make a presentation that identifies single-family residential masonry perimeter screening walls in Town and the respective, known maintenance responsibilities.
RECOMMENDATION:
Staff seeks Council direction.

Attachments
Presentation - Wall Maintenance


Council Meeting		Item # 2.
Meeting Date:	09/27/2022
Department:	City Secretary

AGENDA CAPTION:
Consider Action on the Minutes from the September 13, 2022 City Council Meeting.
BACKGROUND:
The minutes for the September 13, 2022 City Council Meeting have been prepared for consideration.
RECOMMENDATION:
Administration recommends approval.

Attachments
Minutes - September 13, 2022


Council Meeting		Item # 3.
Meeting Date:	09/27/2022
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Leverage Addison's assets to grow and expand placemaking business programs and events that will set Addison apart to attract talent and businesses

AGENDA CAPTION:
Consider Action on a Resolution Approving an Economic Development Program Grant Agreement with Firehawk Aerospace, Inc. and Authorizing the City Manager to Execute the Agreement.
BACKGROUND:
On June 14, 2022, the City Council directed the City Manager to negotiate an incentive grant agreement with Firehawk Aerospace, Inc., for the company's headquarter and research and development relocation to Addison. The incentive package includes a grant not to exceed $75,000, a construction permit credit of $6,069, and an annual business personal property tax reimbursement of 50% on the Town’s portion of the tax rate. As part of the agreement, Firehawk Aerospace will lease a space of approximately 40,000 square feet at 4550 Excel Parkway, Suite 200 in Addison. The company will make an estimated $1.3 million investment in tenant improvements and other office space expenditures. The company will employ at least 55 full time positions with an average annual wage of at least $105,000. The grant provided by the Town is performance based and will be paid in three installments pending milestones related to space occupancy, capital investment, number of jobs created, and average wages that must be met by the company as highlighted in the attached agreement. On June 14, 2022, Council provided direction on the incentive package but did not authorize the City Manager to execute the agreement. Authorization is now being requested in the attached resolution to have the City Manager execute the agreement. The funds for the grant have been encumbered in the Economic Development Fund, and the attached agreement has been reviewed and approved by the City Attorney.
RECOMMENDATION:
Administration recommends approval.

Attachments
Resolution - FireHawk 380 Agreement


Council Meeting		Item # 4.
Meeting Date:	09/27/2022
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:
Consider Action on a Resolution Approving the Creation of a Trust Under Internal Revenue Code Section 115 For the Purpose of Pre-Funding Other Post Employment Benefits (OPEB) Releated to the City’s Post Employment Health Plan For Retirees; Appointing The City Manager As Trustee; And Providing An Effective Date.
BACKGROUND:
The Town offers retirees health care benefits should they retire from the Town. These benefits include two subsidies from the Town, an explicit subsidy - direct payments from the Town to the retirees, and an implicit subsidy - the retirees premium is at the Town's blended insurance rates. The adopted fiscal year 2023 budget includes appropriations to pre-fund these benefits through an irrevocable section 115 trust (like pension benefits with TMRS) with an initial deposit of $500,000 and annual deposits of up to 0.25% of payroll payable from each fund that has salaries expenditures. Pre-funding other post-employment benefit (OPEB) obligations is a Government Finance Officer's Association (GFOA) best practice and is viewed favorably by bond ratings agencies compared to the Town's current pay as you go arrangement. Creating a trust and a plan to pre-fund OPEB will immediately reduce the Town's OPEB liability by approximately $1 million due to the expected investment return of a trust arrangement of 5.25% compared to 2.0% in a pay as you go arrangement. The Town's current OPEB liability for retiree health care is $3.6 million, but anticipated to increase to over $10 million over the next thirty years under the pay as you go arrangement. This pre-funding plan would eliminate the entirety of that potential $10 million liability with contributions totaling approximately $2.5 million over the next thirty years creating a net savings of approximately $7.5 million. There are three GFOA best practices associated with OPEB arrangements and this would help the Town achieve all three. They are: Establishing and Administering an OPEB Trust, Ensuring OPEB Sustainability, and Sustainable Funding Practices for OPEB.
RECOMMENDATION:
Administration recommends approval.

Attachments
Resolution - OPEB Trust


Council Meeting		Item # 5.
Meeting Date:	09/27/2022
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:

Present, Discuss, and Consider Action on an Ordinance to Amend the Town's Annual Budget for the Fiscal Year Ending September 30, 2022.

BACKGROUND:

The Fiscal Year (FY) 2022 budget was adopted by Council on September 14, 2021. This is the second amendment for the FY2022 Town of Addison annual budget.

Each year, the Finance Department reviews the budget to determine which items should be recognized with formal budget amendments. When budget variances occur that are outside of the authority of the City Manager, these adjustments are presented to the Council in the form of a budget amendment.

Major items include:

General Fund

An amendment is needed for the Council Special Projects, City Manager's Office, General Services, Fire, Parks, and Emergency Communications Departments in the General Fund. On June 22, 2021 the Council approved additional funding of up to $72,000 to Metrocrest Services to respond to the COVID-19 pandemic, but not all was spent in Fiscal Year 2021. This amendment appropriates the remaining $10,000 in the Council Special Projects Department. Additionally, this budget amendment appropriates funding for Holiday in the Park ($55,000), advertising ($15,000), and miscellaneous expenditures ($20,000) in the Council Special Projects Department. An additional appropriation of $30,000 is needed in the City Manager's Office to provide funding for the payout of accrued vacation to the prior City Manager. An additional appropriation of $14,000 is needed in Emergency Communications due to communications expenditures slightly exceeding the original budget. An additional appropriation of $535,000 is needed in the General Services Department to provide funding to the Facility Maintenance Fund ($500,000) that was created in Fiscal Year 2021 as well as for temporary employment services ($35,000). This amendment appropriates $100,000 in the Fire Department to provide funding for retirement vacation payouts and overfill positions. This amendment appropriates $190,000 in the Parks Department for additional water usage due to the hot and dry spring and summer experienced in 2022 as well as $40,000 to replace a bus shelter that was damaged by a motorist. These additional appropriations are offset by increased Sales Tax Revenue of $969,000 resulting in a net impact of $0 to the General Fund.

Additionally, this budget amendment authorizes the City Manager to transfer unexpended appropriations and excess revenue from the Fiscal Year 2021-2022 budget to the Self-Funded Special Projects Fund. The amount of this transfer (if applicable) will be known in late November 2022 after the Town has recorded all revenues and expenditures for Fiscal Year 2021-2022. The Fiscal Year 2021-2022 estimate included in the Fiscal Year 2022-2023 budget included an estimated transfer amount of $1,400,000.

Streets Self-Funded Projects Fund

An additional appropriation of $900,000 is needed in the Streets Self-Funded Projects Fund to appropriate funding authorized in Change Order #3 with Jim Bowman Construction Company, LP that was approved by Council on June 14th, 2022. This amendment also recognizes $900,000 in reimbursement revenue making the net impact to the Streets Self-Funded Projects Fund $0.

Self-Funded Special Projects Fund

An amendment is needed in the Self-Funded Projects Fund of $253,000 for the relocation of a transformer at the Police Department in the amount of $135,000 and unanticipated facility repairs in the amount of $118,000.

Utility Fund

An additional appropriation of $400,000 is needed in the Utility Fund to provide funding for higher than anticipated wholesale water purchases ($250,000) due to a hotter and dryer spring and summer than anticipated as well as ($150,000) for water main repairs. These additional appropriations are offset by corresponding increased water sales revenue of $400,000 due to a hotter and dryer spring and summer than anticipated resulting in a net impact to the Utility Fund of $0.

Fund	Impact on Budgeted Expenditures	Impact on Budgeted Revenues	Impact on Fund Balance
General Fund	$969,000	$969,000	$0
Streets Self-Funded Projects Fund	$900,000	$900,000	$0
Utility Fund	$400,000	$400,000	$0
Self-Funded Special Projects Fund	$253,000	$0	($253,000)
Total	$2,522,000	$2,269,000	($253,000)

The attachments reflect the proposed budget changes by fund in the ordinance and budget amendment summary.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Budget Amendment #2 FY 22
Presentation - Fiscal Year 2022 Year-End Budget Amendment