City Council

Belton City Council Meeting January 23, 2018- 5:30 P.M. The Belton City Council met in regular session in the Wright Room at the Harris Community Center with the following members present: Mayor Marion Grayson, Mayor Pro Tern Craig Pearson and Councilmembers David K. Leigh , Paul Sanderford, Guy O'Banion and John R. Holmes, Sr. Councilmember Dan Kirkley was absent. Staff present included Sam Listi, John Messer, Gene Ellis, Amy Ca~ey , Brandon Bozon, Chris Brown, Matt Bates, Paul Romer, Bob van Til, Kim Kroll , Angellia Points, Bruce Pritchard , Cynthia Hernandez, Cheryl Maxwell, Charlotte Walker and Judy Garrett. The Pledge of Allegiance to the U.S. Flag was led by Councilmember David K. Leigh , the Pledge of Allegiance to the Texas Flag was led by Assistant City Manager/Chief of Police Gene Ellis, and the Invocation was given by Dr. Bill Carrell , Director of Church Relations at the University of Mary Hardin-Baylor. 1. Call to order. Mayor Marion Grayson called the meeting to order at 5:30 p.m. 2. Public Comments. Christy Monroe - 2520 Shanklin Road: Mrs. Monroe asked the Council to continue to go slow with development. With the bonds that have been issued by the school district, it will add additional taxes to Belton's citizens. She added that the gateways into the City are becoming more and more commercial looking and asked if that is what the Council is wanting . She has been asked to run for City Council , but she has determined that she cannot run because she has not been a resident of Belton for 12 months. She advised the current Council to please think of the citizens and taxes as you run for re-election. Consent Agenda Items 3-6 under this section are considered to be routine by the City Council and may be enacted by one motion. If discussion is desired by the Council, any item may be removed from the Consent Agenda prior to voting, at the request of any Councilmember, and it will be considered separately. 3. Consider the minutes of the January 9, 2018, City Council Meeting 4. Consider appointments to the following Boards/Commissions A. Planning and Zoning - Stephanie O'Banion was appointed to fill Joel Berryman's unexpired term ending 5/28/2018. B. Library Board of Directors - Gary Busby was appointed to a three-year term ending 11 /30/2020. 5. Consider authorizing the City Manager to enter into a Mutual Aid Agreement with AMR to provide 911 Backup Ambulance Services. Belton City Council Meeting January 23, 2018 - Page 2 6. Consider a resolution confirming consent for a proposed bond issue by the Bell County Municipal Utility District (MUD) No. 1 as provided for in the Development Agreement between the City, the MUD, and W&B Development II, LLC. Councilmember Guy O'Banion requested to pull item 4 in order to abstain from voting on the item. Councilmember David K. Leigh pulled item 6 for discussion. Upon a motion by Councilmember Leigh, and a second by Councilmember John R. Holmes, Sr. items 3 and 5 were unanimously approved by a vote of 6-0. Mayor Grayson announced that she was recommending Stephanie O'Banion be appointed to the Planning and Zoning Commission , and she was recommending Gary Busby be appointed to the Library Board of Directors. Upon a motion by Mayor Pro Tern Craig Pearson, and a second by Councilmember Paul Sanderford, item 4 was approved upon a vote of 5-0-1 with Councilmember O'Banion abstaining. City Manager Sam Listi explained to the Council that in 2010 the City approved a Development Agreement with W.B. Development authorizing the creation of Bell County Municipal Utility District #1. The developer obtained off-site easements and built water and sewer lines for connection to Belton's utility system. Easements are currently held in the name of the developer, and are proposed to be conveyed to the City as public lines upon issuance of $4.5M in bonds to reimburse the developer for those expenses. Mr. Listi said all the costs will be funded by the District MUD tax paid by the subdivision residents. Based upon the agreement, the City received a notification from Bell County Municipal Utility District #1 requesting consent to issue $4.5M in bonds. Listi added that the bonds should be sold late this summer, and the easements and facilities should be conveyed to the City in September. Mayor Grayson clarified that this is debt incurred by the MUD, and it is not City debt. Listi said that there are no City funds involved in this bond sale. Councilmember John R. Holmes, Sr., asked if these were revenue bonds. Mr. Listi said he believes that they are. Councilmember David K. Leigh explained that the City partners with the MUD. He added that the developer spent his own money to tie into the City's system. The MUD will borrow money to pay the developer back. Once the debt is issued and the developer is paid, the developer will convey the utility lines to the City. He said the City will continue to receive revenue from the sale of water/sewer and garbage services at 1.25 times the in-City rates. He said the residents are responsible to pay for the bonds, but asked who is liable for the bonds if the residents do not pay the funds back. City Attorney John Messer said it would still be the residents of the MUD. Director of Finance Brandon Bozon said the MUD Board has taxing authority to require the residents to repay the bonds through the MUD property tax. Mr. Listi Belton City Council Meeting January 23, 2018- Page 3 said that TCEQ is also very involved in reviewing and overseeing the bond issuance. Mr. Leigh said he just wanted to make sure that the City was not co-signing the note by giving consent. Mr. Bozon assured him that the City is not co-signing the note. Upon a motion by Councilmember Leigh, and a second by Mayor Pro Tern Pearson, item 6 was approved upon a vote of 6-0. Planning 7. Hold a public hearing and consider a zoning change from Single Family-1 to Planned Development Retail to allow for a car wash on a 1.773 acre tract of land at 123 Lake Road, located at the southeast corner of Lake Road (FM439) and Commerce Street, west of Main Street (SH317). Director of Planning Cheryl Maxwell said that this 1. 773 acre property is currently used as a residence , and the applicant is proposing this zone change from Single Family-1 to Planned Development Retail to allow for a tunnel car wash facility. A car wash requires a commercial or less restrictive zoning district. Instead of commercial zoning , a Planned Development Retail Zoning District is proposed with a car wash as an additional use. She explained that the PD zoning also allows the opportunity for site plan approval. A residential structure is in place on the lot to the east, but that property is zoned PD Retail and apparently is in use as a business, so there is no code requirement to provide screening/fencing along the east property line. Mrs. Maxwell recommended basing the parking requirements on the number of employees. There will be 3 to 5 employees on site; therefore, one parking place per employee (5 minimum) is proposed as the requirement and is shown on the conceptual site plan . The entrance to the facility will be located on Commerce Street. Mrs. Maxwell stated that no direct access to Lake Road will be allowed in this location. This property will provide a shared access point with the adjacent property to the east. In addition to the car wash, several covered parking and vacuum stations are proposed , as well as a 1O' landscaped area between the Commerce Street property line and the parking/vacuum stations. On corner lots, both sides fronting on the street are considered front yards unless shown otherwise on the subdivision plat. Since this property is not yet platted , the setback for the main structure is 25' adjacent to both streets. Staff doesn't consider the vacuum stations to be accessory buildings but considers these similar to an unenclosed canopy for a service station pump island which will require a 1O' setback. The applicant will provide a detailed site plan addressing the following requirements in the Design Standards with the building permit: Building Materials; Tree Preservation and Landscaping Requirements; Screening; Dumpster Requirements; Lighting ; and Signage. A subdivision plat will also be required prior to a building permit. Belton City Council Meeting January 23, 2018 - Page 4 Mrs. Maxwell said that one property owner notice was returned in opposition to the car wash . Councilmember Holmes asked if there will be any fencing between the vacuum stations and the street. Mrs. Maxwell said there will be no requirements for fencing . Mr. Holmes was curious about possible vandalism with kids walking home from school. Mayor Grayson opened the public hearing. The applicant, Tyler Forney, 1304 Overlook Ridge Drive, spoke regarding the fencing that Councilmember Holmes asked about. Mr. Forney said that he has had no issues with foot traffic and vandalism at any of his other facilities, including one next to a high school. Mayor Pro Tern Pearson asked the applicant if there are plans for expansion since the site plan appears to show a future building/parking. Mr. Forney said that there are no plans at this time. The area will remain green space at this time. Councilmember Guy O'Banion said he had visited the applicant's car wash in Harker Heights. He asked if there were plans to have a full-service option at the Belton location. Mr. Forney said there will not be a full-service option at this time. Councilmember Holmes asked if there will be an issue with left hand turns. Several on Council responded that they did not believe so. Upon a motion by Councilmember Holmes and a second by Councilmember O'Banion, the following captioned ordinance was approved upon a vote of 5-0 with Councilmember Leigh voting "present and not voting" since he owns property nearby although it does not rise to the point of needing to abstain. ORDINANCE NO. 2018-02 AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF BELTON BY CHANGING THE DESCRIBED DISTRICT FROM SINGLE FAMILY-1 TO PLANNED DEVELOPMENT-RETAIL ZONING DISTRICT ON A 1.773 ACRE TRACT, WITH DEVELOPMENT TO BE REGULATED UNDER TYPE AREA 5 DESIGN STANDARDS. 8. Consider a final plat for Pro Star Rental, a 11.549 acre tract of land located east of IH-35 and south of Grove Road, generally north of Shanklin Road in the city limits of Belton. Director of Planning Cheryl Maxwell said this is a 1-lot subdivision plat proposed as the Pro Star Rental Addition . The property was recently rezoned to Commercial-2 District in October, 2017. The west side of this property is directly adjacent to the IH- 35 northbound frontage road. She added that the proposed lot complies with the Commercial-2 Zoning District area requirements in all respects.  I Belton City Council Meeting January 23, 2018 - Page 5 Mrs. Maxwell said that the principal issues associated with this plat involve subdivision ordinance requ irements for orderly extension of public improvements - water, sewer, drainage and streets. Water: This property will be served by the existing 12" water line on the east side of the tract. No extension is required by the applicant. Sewer: The proposed South Belton Sewer Project sewer lines are located on the far eastern edge of the property. However, due to topography, the sewer line along the eastern edge of the property is a force main. A service line, especially unpressurized , cannot tie into the force main. There is a gravity sewer line 1,300 feet northeast of the proposed building on this property, but the fall between the building and the gravity line is not great enough to allow for gravity flow. Therefore, the applicant must either install a septic system or install a grinder pump and private force main to connect to the gravity line approximately 1,300 feet away. Because the limited number of bathrooms and sinks will have a minimal contribution to sewer flows, Staff determined a septic tank is acceptable and a letter to this effect has been provided by the Bell County Public Health District. Drainage: Drainage calculations have been reviewed and a detention pond will be needed. The location and details of the detention pond will be provided with the building plans and can be accommodated on site. Streets: Access from the IH-35 frontage road is proposed on the north side of the property. The Thoroughfare Plan identifies a future southern roadway extension of Capital Way along the eastern perimeter of this proposed plat. Capital Way is shown as a major collector which requires 80 feet of ROW. The applicant is required to dedicate half of this (40') for the length of this subdivision. The original property owner, Bell County Joint Venture, is dedicating a strip of ROW +/- 60' wide along the eastern edge of the property (1 .549 acres) for the future extension of Capital Way. The applicant is providing an additional 8.5' wide strip (0.027 acre) adjacent to Lot 1. Of the 11.549 acres in this subdivision , 1.576 acres are proposed for the ROW dedication, leaving Lot 1 at 9.973 acres. Mrs. Maxwell stated that, according to the Subdivision Ordinance, the developer is required to contribute one half the total cost of paving (18.5 feet) , curb and gutter, and a 5' wide sidewalk for the portion of Capital Way adjacent to this plat. The estimated cost of the applicant's contribution is $21,900.90 for the 140' of frontage . She said that Staff recommends the applicant escrow the cost of construction for the required perimeter street improvements. When other properties are submitted for final platting , perimeter street improvement obligations will apply. Mayor Grayson asked if the proposed purpose of the property changes, what would happen with the septic tank. Director of Public Works Angellia Points said that Bell County Health Department would be involved. Mayor Pro Tern Pearson asked if the City would control that through a Certificate of Occupancy. Mrs. Points replied , "I believe so." Belton City Council Meeting January 23, 2018- Page 6 Councilmember O'Banion asked if there are any plans showing what this was going to be because he assumes that they will have a wash rack. Mrs. Points said that Staff has not seen plans, yet. Mr. O'Banion said that a wash rack would definitely have an impact since a wash rack cannot be run into a septic system. Mr. Listi said that this project will be monitored closely when it gets to the building permit stage. Councilmember Leigh said that it is unusual not to see ingress and egress and where the building will sit on the property. Mr. Listi explained that for zoning , the Council is much more involved. The applicant's engineer, Will Cisco of Turley Associates, explained that if this was a subdivision plat, it would show the roads and the utility lines, but it wouldn't show the placement of the building on the lot. The zoning will control the development standards for the site. He added that the owner will have a contract with Bell County Health Department regarding the septic system, and if there is a change where the owner is no longer meeting the requirements of that contract, it will be the Health Department's right to enforce the agreement. Mr. O'Banion said the Council may want to be more careful with zoning changes in the future if it causes Council to "lose visibility as we go." He added that this is a great use of the property although he knows nothing about the company. Upon a motion by Councilmember O'Banion, and a second by Councilmember Sanderford, Item #8 was unanimously approved by a vote of 6-0. 9. Consider authorizing a lease agreement between the City of Belton, City of Temple, and the US Army Corps of Engineers for the Miller Springs Nature Center. City Manager Sam Listi explained that Miller Springs Nature Center contains approximately 258 acres of scenic natural area located between the Leon River and 110-foot high bluffs, immediately east of the Lake Belton Dam. It is located within the boundaries of the City of Belton and City of Temple, and the land is owned by the US Army Corps of Engineers. Mr. Listi said the Nature Center was opened in November 1993 when the Miller Springs Alliance entered into a lease agreement with the Corps. The agreement between the Corps and Miller Springs Alliance ended in August 2017, and the facility was indefinitely closed. Belton and Temple citizens have expressed an interest in seeking a path to re-open this regional facility. Staff from the City of Belton, City of Temple and the US Army Corps of Engineers have been exploring a partnership opportunity for re-opening the facility. Listi added that a short-term lease is proposed to allow the facility to re-open this fiscal year, if possible. If approved by all parties, the first year will be important in defining actual needs for personnel, services, and maintenance. Staff believes there are many opportunities for in-kind staff assistance, volunteer support, and coordinated work days, that can keep Miller Springs safely open and accessible in its natural state. Belton City Council Meeting January 23, 2018 - Page 7 Mr. Listi stated that this short-term lease will allow interested parties to assess a long-term strategy for operation of the facility. Staff is proposing an agreement term of one-year, with the option of four (4) one-year renewals. Mr. Listi explained that the Temple City Council approved the agreement at their last meeting. Additionally, the Belton Parks Board held a special meeting to discuss this lease agreement. They unanimously recommend approval, and Staff concurs in that recommendation. Director of Parks and Recreation Matt Bates said that both cities are excited for the opportunity to re-open Miller Springs. He said that there are several volunteer groups who are willing to help. Councilmember Holmes asked if Staff knew what Belton's cost would be. Mr. Listi and Mr. Bates both said that they do not know at this time. Mr. Holmes asked if bike traffic was able to utilize the facilities. Mr. Bates said that mountain bikers will be welcome. Councilmember Leigh asked if the Corps would continue to open and close the gates to the facility. Mr. Bates said Staff desires to have the Corps continue to open and close the gate, but that is a detail that will still need to be worked out. Mr. Leigh asked if the bathrooms will continue to be the Corps' responsibility or will that responsibility transfer to the cities as well. Mr. Listi said that is something else that will still need to be discussed. Mr. Bates said that the City of Temple is expressing the desire to have Parks Staff available on-site, so he assumes that the responsibility for maintaining the bathrooms will become the cities. Mr. Leigh asked if there will be a joint Temple-Belton Commission appointed by the Mayors. Mr. Listi said that is something that could be considered. Upon a motion by Councilmember Sanderford, and a second by Mayor Pro Tern Pearson, item #9 was unanimously approved by a vote of 6-0. Public Works 10. Consider Amendment No. 3 to the professional services agreement with Kasberg, Patrick and Associates for additional services/amended scope on the Sparta Road project. Director of Public Works Angellia Points said that the City contracted with Kasberg, Patrick & Associates for the design of Sparta Road Improvements from Loop 121 to Main Street. She said that two contract amendments have previously been approved that added improvements to the valley gutter at Industrial and Main Street, the addition of a detour road to accommodate the construction of the roundabout, roundabout circle aesthetic features, traffic signal design and modification plan for Loop 121 at Sparta Road, as well as construction administration services. Belton City Council Meeting January 23, 2018- Page 8 Mrs. Points said that although KPA's contract included construction administration services, it did not include on-site construction inspection. On-site construction inspection services were needed several times throughout the project. At times, the contractor operated a 24-hour shift for consecutive days to complete certain tasks. During those times, the City Construction Inspector would work nights while KPA's project manager, Mack Parker, would provide inspection services during the day. KPA also provided inspection services when needed during the day for those occasions when the inspector wasn't available. There were also four (4) days when the City's Construction Inspector was on vacation, and inspection was required on the project to continue construction operation. Additionally, Mrs. Points explained that at substantial completion of the project, the Director of Public Works requested the property boundaries along the project be re- staked by KPA for the property owners. This was an additional service that was not a part of the contract with KPA. Therefore, KPA is requesting an amendment to their contract to account for the additional time and effort to assist in the construction inspection and the additional requested boundary staking to ensure the project was constructed properly and in a timely manner. Amendment No. 3 totals $11 ,320. Funding is available from the Tax Increment Reinvestment Zone (TIRZ) Capital Project Funds. Mayor Grayson commented that several who were not in favor of the roundabout are now believers. She added that Harker Heights is also adding a roundabout. Upon a motion by Councilmember Leigh, and a second by Councilmember O'Banion, item #10 was unanimously approved by a vote of 6-0. 11. Consider authorizing the City Manager to enter into a professional services agreement with Kasberg, Patrick and Associates for professional engineering services for the 2018 Water and Sewer Projects. Director of Public Works Angellia Points said that Belton has water and sewer infrastructure that has aged and is near the point of failure and/or the lines are too small for the surrounding development. Five projects have been identified: • Leon Street Sewer and Water Replacement - the sewer line is too small and too flat, causing frequent back-ups in the area; the waterline is currently a 3" and needs to be an 8" to support fire flows. • Old Waco Road Sewer Replacement - the sewer line is aging, causing some parts of the clay line to collapse and cause back-ups. • Old Golf Course Road Waterline Replacement - the waterline is too small and needs to be at least an 8" line to support fire and domestic flows and pressures. • Ave S Waterline Replacement between S Wall and Miller Streets - the waterline is too small and needs to be an 8" to support fire and domestic flows and pressures. Belton City Council Meeting January 23, 2018- Page 9 • East and 5th Waterline Replacement - the waterline is aging and has broken in several places; the line needs to be replaced to prevent additional breaks. Mrs. Points said the design services for the 2018 Water and Sewer Projects are fully funded by the 2018 Utility Capital Improvement Project Fund. She said that the top priority is Leon Street water and sewer. The priority and construction of the other four projects will depend on permitting from TxDOT (Old Waco Road and Old Golf Course Road) and funds available to construct them. Based on preliminary cost estimates, Mrs. Points explained that the following funding is available for construction of the 2018 Water and Sewer Projects: • Leon Street Sewer and Water Replacement - $354,235 • Old Waco Road Sewer Replacement - $572,150 • Old Golf Course Road Waterline Replacement - $0; to be funded by future bond ($737,390) • Ave S Waterline Replacement between S Wall and Miller Streets - $144,480 • East and 5th Waterline Replacement - $0; to be funded by future bond ($354,235) Points said that these projects are too large for City staff to handle internally, and external engineering services are required to fully complete the designs and bidding documents, and conduct reviews with TxDOT and utility providers, if required , for these projects to be successful. Staff is proposing to contract with Kasberg, Patrick, and Associates for engineering services to design the projects. Costs for engineering services are: • Leon Street Sewer and Water Replacement, design, cost estimate, and bid phase. $47,800 for Design Services; $11 ,000 for Bid Phase Services. • Old Waco Road sewer replacement, design, cost estimate, TxDOT permitting. $67,000 for Design Services. • Old Golf Course Road waterline replacement, design, cost estimate, TxDOT permitting. $77,000 for Design Services. • Ave S waterline replacement between S Wall and Miller Streets, design, cost estimate. $24,300 for Design Services. • East and 5th waterline replacement, design, cost estimate. $44,900 for Design Services. • Total Scope of Services= $272,000 Mrs. Points explained that after design and any required permitting, the bid and construction administration services for Old Waco Road, Old Golf Course Road, Ave S, and East & 5th will be negotiated with KPA. Construction Administration for the Leon Street project will be negotiated and recommended to be awarded with the bid award for that project. Belton City Council Meeting January 23, 2018 - Page 10 Upon a motion by Mayor Pro Tern Pearson, and a second by Councilmember O'Banion, item #11 was unanimously approved by a vote of 7-0. 12. Consider approving the revised alignment of the Chisholm Trail Hike and Bike Trail Phase II. Director of Public Works Angellia Points presented options for revising the alignment of the Chisholm Trail Hike and Bike Trail Phase II as shown in Exhibit "A. " Mayor Grayson thanked the Staff for continuing to work through the issues with this project. Councilmember O'Banion asked how far down the "rabbit hole" the City goes with the design of this project without knowing whether or not it will be approved by TxDOT. Mr. Listi explained that Staff was meeting with TxDOT the next day, and TxDOT will have to make a decision on the alignment and also approve some adjustments to the components of the project to lower the cost. O'Banion said it would be difficult to return the $1.9M in grant funds that has been awarded to the City. He believes that the project is very important, and recommends moving forward in meeting with TxDOT. Mr. O'Banion said Staff needs to map out the project costs so the City doesn't spend too much money before receiving a commitment from TxDOT. Councilmember Leigh said the Council owes it to everyone involved to continue to move forward and seek approval from TxDOT. He outlined what he believes to be the positives that are provided by the completion of this project including safety of UMHB students, improved drainage, and the placement of a sidewalk to be used by students of the schools in the area. He also discussed potential issues with rights- of-way along the new alignment. Director of Finance Brandon Bozon said that with the revised alignment, the local share is approximately $863,000. Approximately $330,000 is unfunded at this time. He added that the engineering design contract is about one-third complete having spent approximately $175,000 of a $467,000 contract. With the expedited timeline, he is certain there will be additional engineering services required before receiving TxDOT's approval. Mayor Grayson asked if the cost estimate includes the lighting. Mayor Pro Tern Pearson said the lighting is still included in the price. Councilmember Sanderford feels that each realignment of the hike and bike trail has made the project less and less attractive. He said that he doesn't picture a hike and bike trail being alongside a major road like an expanded Loop 121 . However, it is not a large segment, and the revised alignment also includes a much needed stretch along Sparta Road. He believes the City should ask Belton ISO to contribute some funding for the project as a way to reduce the cost since the segment along Sparta Elementary will significantly benefit their students. He said that it would be Belton City Council Meeting January 23, 2018 - Page 11 difficult for him to recommend returning the grant funds, and he added that Staff has done a good job in dealing with the difficulties presented as the project design has progressed. Councilmember O'Banion said he likes the Sparta piece because it adds the needed connection to Chisholm Trail Park. Upon a motion by Councilmember O'Banion, and a second by Mayor Pro Tern Pearson, item #12 was unanimously approved by a vote of 7-0. Finance 13. Consider approval of the FY2017 Annual Report for Belton's Tax Increment Reinvestment Zone. Director of Finance Brandon Bozon presented the 2017 Tax Increment Reinvestment Zone Annual Report as required by TIRZ bylaws. He commented that TIRZ had a strong year. He reviewed the Balance Sheet revenues and expenditures, and he highlighted several accomplishments for 2017 including: • Fa9ade Improvement Grants • 115 North East Street (Tirzah) • 208 Penelope Street (Blends Wine Bar) • 300 East Central Avenue (Miller's Smokehouse) • Master Signage Plan • SH 317/River Fair widening • SH 317/ MLK Jr. intersection improvements • Library Park and Landscaping • Bell County downtown parking lot cost-share • East Street sidewalk preliminary design Additionally, Mr. Bozon discussed projects in the pipeline for 2018 including: • South Main Street water line relocation and sidewalk enhancements • Sparta Road reconstruction and roundabout • Library space needs study • 5th Avenue Beautification design • Southwest Belton traffic circulation improvement design Upon a motion by Councilmember Leigh, and a second by Councilmember Sanderford, the report was unanimously approved upon a vote of 6-0. 14. Consider an ordinance reaffirming the City's Tax Abatement Guidelines and Criteria. Belton City Council Meeting January 23, 2018 - Page 12 Director of Finance Brandon Bozon reviewed the City's Tax Abatement Guidelines and Criteria stating that reviews are required every two years. He said the purpose of the policy is the promotion of high quality commercial and industrial development. He also discussed the types of projects that are eligible for tax abatement. - Mr. Bozon reviewed the City's Tax Abatement Reinvestment Zones, and he discussed how the City determines what types of tax abatement to offer. Mr. Bozon summarized the two changes that are proposed for the policy, including: • Increase the minimum annual salary for eligible jobs from $20,800 to $33,280 based on the 2016 median salary for Killeen-Temple Metropolitan Statistical Area . • Note addition to the Abatement Application Filing Instructions section stating that "Applications will become part of the public record and will be subject to open records requests." Mayor Grayson expressed some concern about companies being affected due to the possibility that the application could include trade secrets and with it being released as public record. Mr. Bozon explained that the City does not make an announcement when a company has submitted an application, so he thinks the requests will be few. He also added that the information may be provided in such a way as to not cause harm to any company. Councilmember Leigh asked if there are prov1s1ons within the tax abatement agreement for some type of penalty if the conditions of the tax abatement are not maintained. Mr. Bozon stated that there are provisions within the contract to address these types of issues. He suggested that Staff review the penalty to determine: (1) is the default penalty being applied consistently; and (2) is the default penalty fair. Mayor Grayson asked if the existing TARZ locations need to be amended to include areas along IH-14 and IH-35. Mr. Bozon said typically TARZ come about as a result of an application received by the City. However, the Council can initiate an amendment or expansion to a TARZ to include certain areas. Mr. Listi added that TARZ 7-9 expire at the end of 2018, so those will be coming back to the Council for renewal. Upon , a motion by Councilmember Sanderford and a second by Councilmember O'Banion , the following captioned ordinance was approved upon a vote of 6-0. ORDINANCE NO. 2018-01 AN ORDINANCE OF THE CITY OF BELTON, TEXAS, READOPTING THE TAX ABATEMENT POLICY FOR THE CITY OF BELTON; PROVIDING A Belton City Council Meeting January 23, 2018 - Page 13 SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING AN OPEN MEETINGS CLAUSE. 15. Conduct annual review of City's Investment Policy and consider a resolution attesting to review and re-adoption thereof. Director of Finance Brandon Bozon explained that the Public Funds Investment Act (PFIA) requires the governing body of an investing entity to review its investment policy and investment strategies (contained in the policy) not less than annually. Bozon said that the objectives of the policy are safety, liquidity and yield . He reviewed the currently authorized investments, as well as a newly proposed addition. The proposed addition will allow interest-bearing banking deposits that are guaranteed or insured by the Federal Deposit Insurance Corporation or its successor, or the National Credit Union Share Insurance Fund or its successor in accordance with State law. Mr. Bozon provided 2017 highlights including rising interest rates. He said annual revenues for all funds was up from $95,662 in FY2016 to $315,643 in FY2017. Councilmember Holmes asked if the FDIC insurance is limited to $250,000 for municipalities. Mr. Bozon said, "Yes, by instrument type." He said that all the deposits above the $250,000 have to be collateralized in accordance with the Public Funds Collateral Act. Mayor Pro Tern Pearson added that there is a typo on page 6, paragraph VI. I. 2. "is successor" should be "its successor". Mr. Bozon said he would make the correction. Upon a motion by Councilmember Holmes, and a second by Councilmember O'Banion, the following captioned resolution, was unanimously approved by a vote of 6-0. RESOLUTION NO. 2018-03-R A RESOLUTION ATTESTING TO CITY COUNCIL REVIEW OF THE INVESTMENT POLICY OF THE CITY OF BEL TON, TEXAS. 16. Conduct annual review of City's Debt Policy and consider a resolution attesting to review and re-adoption thereof. Director of Finance Brandon Bozon said the City's Debt Policy requires that the City Council conduct an annual review and make any alterations deemed necessary. Mr. Bozon highlighted the policy including: • Debt should be issued for the purpose of meeting the needs of the community through funding of capital projects and equipment, and for any purpose allowed under the City Charter and State law. Belton City Council Meeting January 23, 2018 - Page 14 • All debt issuances shall be approved by the City Council. • Long-term debt should only be issued to finance the acquisition and/or construction of capital improvements with an economic or useful life equal to or greater than the term of the debt. • Long-term debt should not be used to finance current operations or normal maintenance. • The debt financing structure wh ich represents the most financially efficient source of funding should be utilized. • Before any debt is issued, the City will conduct an analysis of the debt requirements to determine the impact on future budgets, the sufficiency of revenues to fund the debt service requirements, and additional operating costs of the capital asset acquired . • Revenue sources used to pay the debt shall be conservatively projected to ensure sound-financing of the long-term debt. Mr. Bozon said Staff is recommending no changes to the City's Debt Policy this year. Additionally, Mr. Bozon reviewed the City's debt capacity since this issue has been raised on several occasions lately. Water and Sewer Fund • $8-10M bond issue planned in late 2018 • $1 .2M projected for FY 2019 and beyond for projects • Small projects could be cash funded • $100,000 in debt service= $1 .35M in bond capacity; $16.2M Tax Supported • Current debt service begins to decline in FY 2026 • Interest on a $1-3M bond issue could be supported in the interim through the use of the fund balance of the General Fund TIRZ Supported • Without extension , a $5-6M bond issue is supportable Upon a motion by Councilmember Leigh , and a second by Councilmember Holmes, the following captioned resolution , was unanimously approved by a vote of 6-0. RESOLUTION NO. 2018-04-R A RESOLUTION ATTESTING TO CITY COUNCIL REVIEW AND RE-ADOPTION OF THE DEBT POLICY OF THE CITY OF BELTON, TEXAS. Belton City Council Meeting January 23, 2018- Page 15 Executive Session At 7:30 p.m., the Mayor announced the Council would go into Executive Session for the following item: 17. Executive Session pursuant to the provisions of the Texas Open Meetings Act, Chapter 551, Govt. Code, Vernon's Texas Codes Annotated, in accordance with the authority contained in Section 551.072, for a deliberation regarding real property. The Mayor reopened the meeting at 8:55 p.m. , and there being no further business, the meeting was adjourned . JM:n~ --- Marion Grayson, Mayor ATTEST: Chisholm Trail Hike and Bike Trail EXHIBIT "A" Decision to Proceed City Council January 23, 2018 Basis of Discussion ▪ Critical point: make a decision on alignment or cease work/decline the grant ▪ June 2016: Grant funding agreement signed with match requirement of $534,123. ▪ February 2017: Design contract awarded to KPA that resulted in potential match increase to $597,448, to be resolved with final construction costs. – Available funds are $334,123 plus two $100,000 local contributions, if continued. Shortfall with a $597,448 match is $63,325. ▪ Design was underway until October 2017 when the fiber conflict required a change in alignment or design. – Extend the tunnel under Crusader increased local match to $1,489,038. The total length of original trail was 4,200 LF. – Realign to at-grade crossing at College increased local match to $1,026,163, if not more. The total length of new trail was 7,650 LF. Basis of Discussion (Continued) ▪ Staff continued to look for alternative alignments to meet budget and timeline to meet the grant. ▪ Loop 121 Widening Plans came about after grant was awarded. – Extend trail from University to Loop 121 along Crusader, utilizing future connectivity to Sparta/Loop 121 and FM439/Loop 121 Updates Since 1/9/2018 Workshop ▪ What requirements must be met for the at-grade crossing at College? – Use of existing asphalt drive is not approved by TxDOT. Must construct new concrete trail (on top of or within UMHB access drive). – Fence along railroad not required. However, BNSF strongly encourages a boundary or channeling device to keep pedestrians off of BNSF ROW. Vegetation (scrubs) may be an option. Liability issue potential. – Cost to move and reuse existing fence is substantial (labor), approaching cost of new fence. – Rail crossing will likely need to be removed from the project and be fully funded by the City (6 mos. review). ▪ Go back to tunnel option? – Tunnel option is no longer feasible due to cost and time. ▪ Move bid date? – TxDOT will not allow a delay in the bid date deadline of September 30, 2018. ▪ Will the Crusader extension be approved by TxDOT? – TxDOT MAY approve with additional trail along Sparta, west of Loop 121. TxDOT Input on Proposed Trail ▪ TxDOT MAY approve the following: In addition to Crusader extension, add extension along Sparta Road. ▪ However, approval was not guaranteed. For approval, the City must provide: – Formal Council-approved request for realignment with all required information – Support letters from TxDOT District and Area Engineers with commitment/ timeline expectation for Loop 121 and corresponding H&B Trail along the Loop. – Amend the AFA, KPA contract – Designed, permitted, and be ready for 9/30/2018 let date ▪ This alignment’s estimated local match is $863,638. – MAY be reduced to original grant local match of $597,448 if lighting can be modified to street lighting. ▪ Total length of NEW trail installed with this alignment is 6,060 LF vs. 4,200’ original length.  Alternative No. 1 – Crusader to Loop 121, Loop 121 to Sparta Elementary • Obtain approval from TxDOT • ROW from BISD • Environmental clearance and permitting • Design – possibilities to reduce construction costs to be discussed with TxDOT (i.e., lighting) on 1/24/2018 • Reviews • Develop Bid Package • All due by 9/30/2018 Alternative No. 2 – Decline grant of $1,970,100 and cease all work • Potential challenges with future grant January 23, 2018 Alternatives applications • City’s costs approximately $175,000. What’s Next 1. Work with TxDOT for approval of realignment or decline grant and cease work. Staff Recommendation is to attempt approval and design for TxDOT’s proposed alignment (blue line) 2. Formal request with documentation, Modify AFA and KPA Contract, DESIGN and Permitting, Identify additional funding, if needed 3. Finish Design, ROW/Easement Acquisition, Per- mitting, Reviews, etc. 4. By End of September 2018 – Bid Opening 5. Jan 2019 – Construction Begins 6. Early 2020 – Trail Opens