City Council

Council Minutes January 28, 2025 STATE OF TEXAS § COUNTY OF TARRANT § CITY OF BEDFORD § The City Council of the City of Bedford, Texas, met in Regular Session at 6:00 p.m. in the Council Chambers of City Hall, 2000 Forest Ridge Drive, on the 28th day of January, 2025 with the following members present: Dan Cogan Mayor Rob Gagliardi Mayor Pro Tem Nichelle D. Dawkins Councilmembers Joy Donovan Brandon Steve Farco Amy Sabol Rich Steves constituting a quorum. Staff present included: Andrea Roy City Manager Caryn Riggs Assistant City Manager Bryn Meredith City Attorney Michael Wells City Secretary Mark Long Parks and Recreation Director Brady Olsen Finance Director REGULAR SESSION The Regular Session began at 6:00 p.m. CALL TO ORDER/GENERAL COMMENTS Mayor Cogan called the meeting to order. INVOCATION Spencer Jacobsen with Beacon Church gave the invocation. PLEDGE OF ALLEGIANCE The Pledges of Allegiance to the flags of the United States and Texas were given. COUNCIL RECOGNITION • Employee Service Recognition The following employees received recognition for dedicated service and commitment to the City of Bedford: 7085  Council Minutes January 28, 2025 Gerad King, Fire Department - 5 years of service Onay Nunez, Police Department - 15 years of service Barbara Johnson, Library - 35 years of service PUBLIC COMMENTS Joseph Hance, 816 Bryan Drive, Bedford – Mr. Hance signed up to speak on Items 2 and 7. He asked that the fireworks item be tabled until it is determined why the City’s roads have been closed for four months and the dangerous driving conditions have been allowed to occur. He requested to know if the agreement under Item 4 would lower his utilities as they were raised recently. He further asked that the beautification project with Bedford Road and Highway 121 be tabled permanently as he felt it was inefficient and not worth the money. There was discussion on the various road and infrastructure projects in the City. PRESENTATION • First Quarter Financial and Investment Report. Finance Director Brady Olsen presented the financial report for the first quarter. He presented an overview of revenues and expenditures for all funds, which showed revenues over expenditures across the board. He explained that sales tax collections have been up and down all year, but sales tax this quarter is tracking above the same time as the previous year. He presented an overview of historical sales tax collections and rolling monthly sales tax averages. He presented information on water and sewer charges, highlighting increases from the same time last year due to higher rates reflecting the City's rising costs for water purchases and sewer treatment. Mr. Olsen reported on the Hotel Occupancy Tax and explained that most hotels are doing a little worse than the previous quarter, with the City still pursuing delinquent payments from some hotels. He reported on General Fund expenditures and stated nothing was standing out as a red flag. There was discussion on the Hotel Occupancy Tax, including the number of hotels in the City, staff’s efforts to collect from delinquent hotels, and increased collections after the pandemic. Mr. Olsen presented the investment report for the first quarter. He stated the City’s portfolio is smaller than the previous quarter due to spending down of project funds. He explained that having most of the City’s investments outside the pools benefits interest earnings. The quarter-end average yield decreased from 4.95 percent to 4.83 percent, which is still higher than the rate for one-year treasuries, with interest earnings for the quarter being approximately $1.5 million. Mr. Olsen presented a comparison of the City’s portfolio and benchmark yields, the Treasury yield curve, and the current interest rate environment, including the impact of uncertainty in the market and current and possible rate cuts. He stated the year-over-year inflation rate is 3.3 percent, while the goal is to reduce it to two percent. He discussed the City’s strategy of laddering its portfolio, including ensuring there is enough cash to pay the City’s bills. In response to questions from Council, Mr. Olsen stated banks are hesitant to offer Certificates of Deposit over one year. CONSIDER APPROVAL OF ITEMS BY CONSENT City Manager Andrea Roy provided an overview of the consent agenda items. In response to Council questions, she confirmed that the Tourism Fund, which is funded by hotel revenue, has restricted uses, such as supporting events, and cannot be used for expenses like street improvements. She stated that even with the Hotel Occupancy Tax being down, there is enough in the Tourism Fund to cover the festivals. 7086  Council Minutes January 28, 2025 There was discussion on traffic enforcement and parking at the events, including the use of shuttle buses from Pennington Field as well as the reasoning for keeping the Beats and Eats festival over Labor Day weekend, citing factors such as scheduling flexibility, access to a larger talent pool, the City’s tradition of hosting a major festival on that date, and weather concerns during other times of the year. Parks and Recreation Director Mark Long stated there would be no cost savings on bands by moving the date. There was discussion on growing the Beats and Eats festival, including increasing the budget for higher quality musical talent. Motioned by Mayor Pro Tem Gagliardi, seconded by Councilmember Sabol, to approve the following items by consent: 1, 2, and 3 Motion approved 7-0-0. Mayor Cogan declared the motion carried. 1. Consider approval of the following City Council minutes: a) January 14, 2025 This item was approved by consent 2. Consider a resolution authorizing the City Manager or her designee to enter into a one- year agreement with four one-year renewal options for the 4th Fest Fireworks Display from Pyro Shows of Texas, Inc. for an annual amount of $48,000, totaling $240,000 if all extensions are exercised. This item was approved by consent 3. Consider a resolution authorizing the City Manager or her designee to execute a professional services contract with Promoter Line, Inc., to provide professional event production and planning services for the 2025 Bedford Beats and Eats Festival, in an estimated amount of $360,000. This item was approved by consent NEW BUSINESS 4. Consider a resolution authorizing the City Manager to enter into a professional services agreement with Texas Coalition for Affordable Power (TCAP) for future energy purchases. Finance Director Brady Olsen presented information regarding this item. He explained that State law allows the City to partner with other communities to get better wholesale electric rates. He stated the City is currently part of P3, and their agreement goes through the end of the year. He explained that P3 is made up mostly of counties, who have different electric loads than cities. Staff is proposing that the City join the Texas Coalition for Affordable Power (TCAP), which is a coalition made up largely of cities. In response to questions from Council, Mr. Olsen stated that moving to TCAP would allow Bedford to partner with other cities with similar load profiles, potentially securing a lower rate compared to staying with P3 or going out on its own. He confirmed this item is for what the City spends on electricity, not for an individual resident’s bill. Margaret Somereve with TCAP stated that TCAP has 167 members, including most of the cities in Tarrant County. She explained that having members all over Texas helps with buying power and can help smooth out the load. She stated their Board is made up of the membership, including city officials. Ms. Somereve explained that cities and counties have different load profiles, with 7087  Council Minutes January 28, 2025 cities having higher usage during overnight hours due to such things as streetlights. She presented a comparison of their average August daily load versus the Electric Reliability Council of Texas (ERCOT) as well as a TCAP city versus a county. She presented an overview of membership services, including annual budget estimates, assistance with state reporting, access to energy consultants, review of renewable contracts, energy conservation programs, a billing portal, webinars, a peer-elected Board, and a voice at the legislature. She stated TCAP is working on introducing a bill to the legislature exempting cities from gross receipts tax. She presented an overview of the pros and cons of long-term fixed-term contracts versus strategic purchasing. In response to questions from Council, Ms. Somereve stated that 82 of their members have been with them since they first formed in 2001. She stated there are approximately 1,400 brokers licensed in Texas, and that TCAP is the largest organization focused on cities in the state. Mr. Olsen stated if approved, the City would be part of TCAP in perpetuity until it decides to change and that an item would be brought to Council in the future to remove Bedford from P3. Ms. Somereve stated that TCAP charges an aggregation fee of 0.000012 of a cent and has an annual budget of $1.2 million. Mr. Olsen stated moving to TCAP would be cost neutral. Motioned by Mayor Pro Tem Gagliardi, seconded by Councilmember Donovan Brandon, to approve a resolution authorizing the City Manager to enter into a professional services agreement with Texas Coalition for Affordable Power (TCAP) for future energy purchases. Motion approved 7-0-0. Mayor Cogan declared the motion carried. 5. Consider a resolution authorizing an amendment to the approved project budget for Fire Station 3 in the amount of $48,750. Assistant City Manager Caryn Riggs provided an update on the project, noting that while it included a $38,000 contingency, unforeseen issues discovered during demolition, such as necessary fire panel repairs and additional mold remediation, particularly in the kitchen, have increased costs beyond the contingency. She stated that a specialized mold remediation company would handle the remediation and air quality testing. She also explained that this company is different from the previous one, as their bid was lower In response to questions from Council, Ms. Riggs recommended leaving the contingency in place to allow for more flexibility with the project. She explained that the bond language was written so that any project savings can be reallocated to other projects in the bond allocation. She stated that $2 million in bonds were issued for Fire Stations 2 and 3, and that the bond issuance has earned $40,000 in interest so far. Motioned by Councilmember Farco, seconded by Councilmember Dawkins, to approve a resolution authorizing an amendment to the approved project budget for Fire Station 3 in the amount of $48,750. Motion approved 7-0-0. Mayor Cogan declared the motion carried. 6. Mayor/Council Member Reports Mayor Cogan reported that he, Police Chief Bobby LaPenna, and Councilmember Sabol volunteered with the Tarrant County Homeless Coalition the previous Thursday, where volunteers count the homeless population in Tarrant County and offer them assistance. He explained that this effort takes place during this time of year due to weather conditions and helps secure grant funding. He noted that the experience was valuable in understanding what happens in the City at 7088  Council Minutes January 28, 2025 night and assessing its homeless population. He stated that while they did not encounter any homeless people in the parks, they did meet two individuals, including one living in her car, who declined assistance. He emphasized the need to change the stigma surrounding shelters and expressed a desire for more police chiefs to get involved. He also encouraged other Council members to participate in the initiative next year. Councilmember Sabol felt that this process needs to be led by Police or Fire as they are more familiar with the City than the residents and are better equipped to locate the homeless, who are often undercounted. 7. Report on most recent meeting of the following Boards: • Animal Shelter Advisory Board Councilmember Farco reported that the Board would hold its first meeting on February 3, 2025. • Beautification Advisory Board No report was given. • Library Advisory Board Councilmember Donovan Brandon reported that the Library Friends’ book sale would start this week. • Parks and Recreation Advisory Board Councilmember Steves reported that the Board will meet the following month. • Senior Advisory Board Mayor Pro Tem Gagliardi reported that a ribbon cutting would be held at the new Senior Activity Center on February 8, 2025. 8. City Manager/Staff Reports City Manager Andrea Roy congratulated the Finance Department on receiving the Government Finance Officers Association’s Distinguished Budget Presentation Award. She reminded everybody that the next Council meeting would be a strategic planning session. EXECUTIVE SESSION a) Pursuant to Section 551.071(2) Consultation with Attorney - Legal issues regarding rental properties. Council convened into Executive Session pursuant to Section 551.071(2) Consultation with Attorney - Legal issues regarding rental properties at 7:13 p.m. Council reconvened from Executive Session at 7:44 p.m. 9. Take any action necessary as a result of the Executive Session. No action was necessary as a result of the Executive Session. 7089  Council Minutes January 28, 2025 ADJOURNMENT Mayor Cogan adjourned the meeting at 7:45 p.m. _________________________________ Daniel S. Cogan, Mayor ATTEST: _________________________________ Michael Wells, City Secretary 7090