Finance and Government Committee

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE COUNCIL BRIEFING ROOM TUESDAY, SEPTEMBER 05, 2023 AT 2:00 PM MINUTES CALL TO ORDER Chairman Humphreys called the meeting to order at 2:00 p.m. PRESENT Chairman Cole Humphreys Council Member Junior Ezeonu ABSENT Council Member Kurt Johnson STAFF PRESENTATIONS 1. Public Hearing, Presentation and Discussion on Public Improvement District (PID) Budgets Special District Administrator, Lee Harriss presented PID statistics and budgets for Grand Prairie. Carla Carlton, 4556 Knight’s Crossing, 75052, inquired if the City is still discussing lowering the contribution amount. Kevin Toth, 7064 Surfside Lane, 75054, stated that the City is not investing wisely because they are earning less than 1% on $2.5 million dollars. Chief Financial Officer, Cathy Patrick noted the City ladders their investments and monies in one place, we aren’t allowed to separate them per the investment policy. Ms. Patrick stated she sent Mr. Toth the investment policy previously and would send any updates on reinvestments in the future to the PID board. With no additional speakers present, Chairman Humphreys closed the public hearing at 2:09 p.m. without any action. Motion to recommend approval to City Council made by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 2. Discussion on Downtown Ice Rink Downtown Development Manager Chip Nami and Downtown Coordinator Camryn Thompson discussed increased costs compared to the previous year. Mr. Nami stated that the cost increase came because we had not chosen to renew within six months. Deputy City Manager Cheryl De Leon asked if we were still using synthetic ice vs. real and Mr. Nami confirmed yes. Chairman Humphreys asked for an update on the infrastructure improvement. Mr. Nami stated that the suggestions given previously by the Council would be considered if they chose to make this an annual event. Chairman Humphreys stated that Council Member Johnson spoke with him previously and stated he was in full support of this item. Chairman Humphreys also cited he would like to discuss the infrastructure improvement again on a separate occasion in the Finance and Government Committee – September 05, 2023 Page 1 of 6  future. Council Member Ezeonu expressed he would like everyone in the city to be well- informed in advance about this event and make sure we market to all residents including South Grand Prairie to skate since this will run for 26 days in December. Mr. Nami confirmed the goal is to market well in advance and the plan is to turn this into a three-day opening event weekend. The Finance and Government Committee recommends approval to the City Council. The recommendation was motioned by Council Member Ezeonu and seconded by Chairman Humphreys. CONSENT AGENDA Motion to recommend approval to City Council made by Council Member Ezeonu, seconded by Chairman Humphreys, to approve consent agenda items three through nine noting that the first meeting of item four be moved to January 9th, 2024. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 3. Minutes of the August 1, 2023, Finance and Government Committee Meeting Approved on Consent Agenda 4. 2024 Finance and Government Committee Meeting Dates Approved on Consent Agenda 5. Annual Contract for document destruction service from WorkQuest Inc. in an estimated annual cost of $30,000 through a Master Cooperative Agreement with TXMAS. This contract will be for one year with the option to renew for two additional one-year periods totaling $90,000 if all extensions are exercised Approved on Consent Agenda 6. Contract for Arbitrage Rebate Compliance Services from Hilltop Securities Asset Management in the amount of up to $ 22,000 annually. This contract will be for one year with the option to renew for four additional one-year periods totaling $110,000 if all extensions are exercised Approved on Consent Agenda 7. Annual Maintenance Contract for Maintenance and Software Support Dell VxRail Units from Unique Digital Technologies, Inc. in the estimated amount of $42,304.65 annually through a Master Cooperative Agreement with the Department of Information Resources (DIR). This contract will be for one year with the option to renew for four additional one-year periods, allowing an increase not to exceed 15% annually with an estimated total of $285,234.08 if all extensions are exercised Approved on Consent Agenda Finance and Government Committee – September 05, 2023 Page 2 of 6  8. Annual Contract for Portable Toilet Rentals and Services from United Site Services in the amount of $59,253.50. This contract will be for one year with the option to renew for four additional one-year periods totaling $296,267.50 if all extensions are exercised Approved on Consent Agenda 9. Annual Contract Renewal #3 with an annual increase for publications, audiovisual materials, books, textbooks, and ancillary services with Ingram Library Services in the amount of $85,000.00 annually for a total project cost increase of $170,000.00 if the remaining one-year extensions are exercised Approved on Consent Agenda ITEMS FOR INDIVIDUAL CONSIDERATION 10. Annual Contract for Investment Advisory Services from Valley View Consulting, LLC up to $75,000 annually. This contract will be for one year with the option to renew for four additional one-year periods totaling $375,000 if all extensions are exercised Ms. Cathy Patrick informed the committee that the City currently manages its investments but seeks to outsource this function due to the rise in interest rates, the need for continuity of portfolio management, and improved reporting capabilities. This agreement is for investment advisory services to provide non-discretionary portfolio management services for the City’s investment portfolio. Services shall include but not be limited to providing certain services related to the investment of City funds, including the execution of securities purchases/sales for the City’s operating and bond funds, investment advice, investment reporting, and review of the City’s Investment Policy and procedures. Chairman Humphreys asked if this advisory service would be making purchases on our behalf and Ms. Patrick noted that they will only give recommendations. Ms. Cheryl De Leon interjected that we control all the funds in this process. Motion to recommend approval to City Council made by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 11. Ordinance amending the FY 2022/2023 Capital Reserve Fund to allocate $2,922,604 from the unobligated fund balance Director of Audit Services, Thao Vo presented the need to amend this ordinance discussing the American Rescue Plan Act (ARPA) of 2021 was signed into law in March 2021. Funding was distributed into two tranches and allocated in calendar years 2021 & 2022. On May 25, 2023, the City Council approved an ordinance to replace several expenditures that were previously approved for ARPA funding with projects that could be encumbered immediately. This ordinance is to appropriate funding in the Capital Reserve Fund for the Alley Maintenance, Bella Vista, Building Blocks Program Replenishment, Downtown Business Vitality, Food, Rental, Water Bill, Homeless Assistance, Generators, Radial Café, Transportation Monitoring Center and Turner Park. Totaling: $2,922,604. Finance and Government Committee – September 05, 2023 Page 3 of 6  Motion to recommend approval to City Council by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 12. Price agreement for Fiber Restoration Services from Future Infrastructure in the annual amount of up to $476,190.00 with the option of four renewals for a total of $2,380,950.00 if all renewals are exercised Assistant Director of Transportation and Mobility, Caryl DeVries the committee was briefed on the utilization of the price agreement by City Departments for the installation of new fiber optic conduits and the repair of existing ones. Motion to recommend approval to City Council by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 13. Annual contract renewal #1 with an annual increase for HOOPLA Streaming Services with Midwest Tape in the amount of $50,000 annually for a total project cost increase of $200,000 if the remaining one-year extensions are exercised Library Director, Peter Sime presented to the committee a request to renew a contract for HOOPLA streaming media services to Midwest Tape for an annual amount of $100,000.00. The estimated annual amount to be paid to Midwest Tape shall be increased by the sum of $50,000.00 to reflect additional use of streaming services making the total estimated amount to be paid to Midwest Tape under such contract $150,000.00 annually, to reflect the one-year renewal. State statutes require City Council approval of a change order when the cumulative cost of the change order exceeds $50,000. With approval of this change order, the City Manager will be able to approve the change order to a cumulative value of $50,000 without additional Council approval. The library’s online streaming media service, HOOPLA by Midwest Tape has been very popular with our customers. Customers may check out audiobooks, music, graphic novels, eBooks, movies, and TV shows from HOOPLA’s inventory of 40,000+ items using smartphones, tablets, computers, and web browsers. HOOPLA is a pay-for-use service. The library only pays for items citizens have checked out. The increase in cost directly correlates to the increase in usage. The increased funding would only be spent if demand required it. When the Council first approved the original HOOPLA contract back in October 2016, the library estimated spending up to $12,000.00 annually for this pay-per-use service. A new contract increasing the annual amount from $12,000.00 to $60,000.00 was executed in July 2018. In 2022, to meet rising demand, the Council approved a contract raising the amount to $100,000.00 annually. Since then, actual usage has continued to exceed projections. The requested increase allows room for future growth in usage. Motion to recommend approval to City Council by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 14. Annual Contract for Arctic Wolf Networks Inc. Cybersecurity Operations Center Services and Software from FreeiT Data Solutions, in the estimated amount of $173,749.76 annually through Finance and Government Committee – September 05, 2023 Page 4 of 6  a Master Cooperative Agreement with the Department of Information Resources (DIR). This contract will be for one year with the option to renew for four additional one-year periods, allowing an increase not to exceed 15% annually with an estimated total of $1,171.487.08 if all extensions are exercised Chief Information Officer, Keshnel Penny discussed the annual contract renewal for Arctic Wolf Networks Inc. Cybersecurity Operations Center Services and Software from FreeiT Data Solutions. These services include Cybersecurity Operations Center, Managed Detection and Response services, Software and Hardware maintenance, and Implementation services. The IT Department Cybersecurity Committee’s strategic plan has a multilayered approach in which each security layer interconnects to strengthen the City’s security posture. Currently, we utilize a combination of security controls to safeguard the city. These controls include physical security, network security, endpoint security, application, and data security. In addition, we regularly update, patch, and replace server and network equipment to ensure our equipment is in security compliance. This multi-layered approach is an industry standard and best practice to keep an organization secure. A Cybersecurity Operations Center is a turn-key solution that will further bolster our security approach by adding enhanced cybersecurity coverage of our environment through a more robust toolset. The service also provides two dedicated security professionals for our team to leverage for assistance. Perhaps most importantly, this service offers a team of security analysts who review security logs and our environment 24/7/365 to catch suspicious activities as they occur. This will enhance our city’s ability to defend against existing and new threats. Adding a Cybersecurity Operations Center to our cybersecurity strategic plan is the most cost-effective way to reduce City-wide cybersecurity risks and increase our security posture. Ms. De Leon stated that this is adding an extra security level to our data to make sure that everything stays secure. Chairman Humphreys stated concerns with data breach security and whether the company was guaranteed. Mr. Penny assured Chairman Humphreys that they work with the biggest departments and organizations in the world. Council Member Ezeonu asked if Artic Wolf’s primary goal is to mitigate for us or provide security. Mr. Penny assured him that they are vetted and have top security clearance and would mitigate the situation on our behalf if needed. They are the complete package on security and prevention. Motion to recommend approval to City Council made by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. 15. Ordinance Amending the FY 2022/2023 Capital Improvement Projects Budget; Grant Recipient Contract with National Fitness Campaign for the 6 outdoor Fitness Studio/Courts in the amount of $890,000 and an estimated amount not to exceed $450,000 for engineering design services, geotechnical investigation, site work, and site furnishings, for a total project cost of $1,340,000 Parks, Arts and Recreation Director, Ray Cerda discussed the amendment needed to the Fiscal Year 2022-2023 Capital Improvement Projects Budget for the purpose of matching city funds required to receive grant funds. Staff applied for, and received approval of, National Fitness Campaign grants for six fitness courts in 2023, and three additional fitness courts in 2024. The Finance and Government Committee – September 05, 2023 Page 5 of 6  NFC has recognized Grand Prairie as a leader in the Dallas Fort Worth Metroplex as part of its Nationwide Model City Campaign. In order to be eligible for these funds, the matching funds must be encumbered by October 1, 2023, for 3 sites, and December 1, 2023, for another three sites. This action item will encumber the matching fund requirements for all six sites in the amount of $890,000 of City funds. National Fitness Campaign provided an additional $295,000 in grant funds for these two phases of the project. For the 2023 Phase, six locations will be selected based on geographic locations across the City, one in each Council District. Staff will work with the District Councilmember and the NFC for the ideal locations. The three additional will be placed in other key locations based on NFC recommendations. The current site recommendations for all nine sites are Tyre Park, Mike Lewis Park, EpicCentral, Friendship Park, Mi Familia Park, Fish Creek Linear Park, Charley Taylor Park, Live Oak Park, and Lakeridge Community Center. Chairman Humphreys asked if there was an anticipation of funds and beginning to work. Mr. Cerda stated that they were looking at March. Ms. De Leon, we are doing this in two segments. This fiscal year we are doing six sites and three remainder on the next. Council Member Ezeonu inquired if we discussed the design process yet or if these are the preliminaries where we need to receive the funding first and then move to architectural design later. Mr. Cerda stated that was correct. Ms. De Leon mentioned that there will be an art component to this, and local artists can apply to have their designs considered and if chosen they would receive an award of five thousand dollars to pay and design this group. We conveyed to the National Fitness Campaign that our goal is to have all the bells and whistles. We will be one of the first in the country to have a speaker component that you will be able to conduct a Zumba class if needed. Motion to recommend approval to the City Council made by Council Member Ezeonu, seconded by Chairman Humphreys. Voting Yea: Chairman Humphreys, Council Member Ezeonu. The motion carried unanimously. EXECUTIVE SESSION There was no executive session. CITIZEN COMMENTS There were no citizen comments. ADJOURNMENT There being no further business, the Finance and Government Committee meeting adjourned at 2:42 p.m. Cole Humphreys, Chairman Finance and Government Committee – September 05, 2023 Page 6 of 6