Finance and Government Committee

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE COUNCIL BRIEFING ROOM TUESDAY, SEPTEMBER 03, 2024 AT 2:30 PM MINUTES CALL TO ORDER Chairwoman Clemson called the meeting to order at 2:30 p.m. PRESENT Chairwoman Jorja Clemson Deputy Mayor Pro Tem Junior Ezeonu ABSENT Council Member Kurt G. Johnson STAFF PRESENTATIONS 1. Presentation and Discussion on Public Improvement Districts (PID) Budgets Lee Harriss presented the annual update for the PID Statistics for 2024 – 2025 to the committee. Mrs. Harriss stated that the total budgeted annual assessment revenue for Fiscal Year 2025, which includes a 2% increase in appraised values and new construction, is projected at $7,814,362, with total projected annual expenses of $10,254,126. There are 17,396 properties within the Public Improvement Districts (PIDs) and 16,649 assessed accounts. The assessment rate in the Berkshire Park PID will see a reduction of $0.01 per $100 of appraised value. PID assessments are billed and collected by Dallas County as a separate line item on property tax bills, except for Whispering Oaks, where a flat rate of $475 per improved lot is billed and collected by the Water Department. 2. Financial Update Director of Finance Susan Sanders provided the committee with a regular financial update on designated funds and the general financial condition of the City. Deputy Mayor Pro Tem Ezeonu asked if the city is getting closer to the budget and Mrs. Sanders assured him, they are diligently working towards that goal daily. 3. Enterprise Resource Planning (ERP) Project Update Lisa Norris, Managing Director, presented to the Committee the need for a new system. She stated that the current legacy system, which was implemented 18 years ago, only offers basic functionality with significant manual processes that hinder productivity and efficiency. The system has limited access to configurations, and technical constraints, and lacks analytics, reporting, and technical support. After reviewing responses to a Request for Information (RFI) Finance and Government Committee – August 06, 2024 Page 1 of 6  and conducting demos, Workday was identified as "Best in Class" software that exceeds functional requirements. This system is widely used by cities, counties, and private sectors in Texas and nationwide, including as an MWBE provider. It will support finance, general ledger, payroll, accounts payable/receivable, grants, budgeting, fixed assets, recruitment, HR, benefits, compensation, time tracking, IT security, and more, offering both employee and manager self-service. The system is budgeted in the CIP with $3.8 million allocated for both Fiscal Year 2025 and Fiscal Year 2026 and an estimated 10-year total cost of $15.6 million. Operational costs are projected at $1.1 million annually. This investment offsets up to $350,000 annually by eliminating the need for third-party software and will greatly enhance automation, improve productivity, and move the City of Grand Prairie toward best practices in HR, finance, and IT. Chairwoman Clemson stated that she is glad to know the systems will be updated to be comparable with those in the surrounding cities. 4. Grand Prairie Arts Council facilitation of arts in the community, utilizing Uptown Theater, Epic Theater, and Veterans Event Center Sarah Dedeluk Tourism Manager provided a detailed review of the utilization of venue spaces within Grand Prairie, highlighting the current occupancy and usage patterns. Chairwoman Clemson suggested that the Grand Prairie Arts Council explore placing decorative elements in the theater windows to enhance curb appeal, potentially attracting more interest from both visitors and residents. Deputy Mayor Pro Tem Ezeonu inquired whether the facility could be rented by citizens at any time, to which Chris Ginapp, Epic Manager, clarified that the venue is fully booked, leaving no availability for public rentals. In response, Deputy Mayor Pro Tem Ezeonu proposed a long-term solution: relocating rehearsals for performances to the Epic facility, freeing up the theater space for higher-revenue events. This adjustment could optimize the use of the venue, allowing for greater revenue generation rather than utilizing the theater as a rehearsal space. CONSENT AGENDA Motion to approve consent agenda items five and motion to recommend approval of consent agenda items six through ten to the City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 5. Minutes of the August 6, 2024 Finance and Government Committee Meeting Approved on Consent Agenda 6. Minutes of the July 23, 2024 Finance and Government Budget Meeting #1 and Minutes of the July 30, 2024 Finance and Government Budget Meeting #2 Approved on Consent Agenda 7. Purchase one (1) new Chevrolet Tahoe PPV 4x4 ($55,300.00) for the Police Department from Ed Morse Automotive LLC dba Freedom Chevrolet Buick GMC by Ed Morse through a Cooperative Agreement with Houston-Galveston Area Council (HGAC) Finance and Government Committee – August 06, 2024 Page 2 of 6  Approved on Consent Agenda 8. Agreement with Trane U.S., Inc. in an amount up to $164,392.00 for quarterly HVAC Preventative Maintenance and repairs at the EPIC Recreation Center. This Agreement will include quarterly Preventative Maintenance of the EPIC Recreation Center’s 16 rooftop HVAC units in the amount of $64,392.00, and a contingency for repairs for the same in an amount of up to $100,000.00. This would be for an initial one-year term, with the option for four additional one-year term renewals, for a total amount of $821,960 if all renewals are exercised Approved on Consent Agenda 9. Construction Contract Amendment No. 3 with Modern Contractors, Inc. in the amount of $66,745.00 for Public Safety Storage Facility work, including exterior building enclosure enhancements, additional flooring material required to match existing conditions and landscaping additions at the main entry of the new facility Approved on Consent Agenda 10. Change Order #2 in the amount of $136,431.23 to revise construction scope services with RLM EarthCo at Tyre Park Phase II. The change order is being requested to add a pavilion foundation, picnic area concrete, pavilion rain gutters, playground revisions, sod in lieu of landscape, anti-graffiti coating and the purchase and installation of a pavilion to the scope of work; and to remove playground drainage installation and decomposed granite installation from the scope of work Approved on Consent Agenda ITEMS FOR INDIVIDUAL CONSIDERATION 11. Ordinance Amending the FY 2023/2024 CIP Budget Thao Vo, Director of Management Services, and Krystal Crump, Budget Manager, are seeking the committee’s approval for several adjustments to the Fiscal Year 2023-2024 Capital Improvement Program (CIP) Budget. These adjustments include new appropriation and authorization requests, and updates to project costs and schedules, and are essential for the timely completion of capital projects and to meet the evolving needs of the community. The Capital Reserve CIP Fund includes $200,000 for Building Blocks Projects, $20,000,000 for the Goodland Rd - Provident Projects from the 2024 CO Bond funds, $1,304,000 for the design phase of the International Corridor Project, and $400,000 for the Sycamore Park Project through the Dallas County Interlocal Agreement. In the Economic Development CIP Fund, $40,000 is allocated for a sign visibility study supporting an economic development project. The Parks CIP Fund will receive $460,000 for the Open Space Master Plan, transferred from the Park Venue, Epic CIP, and Lake Parks CIP funds. These adjustments are critical for ensuring the successful execution of current and future city projects, and City Council approval is requested to implement the changes. Finance and Government Committee – August 06, 2024 Page 3 of 6  Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 12. Ordinance Amending the FY 2023/2024 Operating Budget Thao Vo, Director of Management Services, and Krystal Crump, Budget Manager, are requesting the committee's approval for several adjustments to the Fiscal Year 2023-2024 Operating Budget. These adjustments are necessary to ensure compliance with fund balance policies and to address differences in revenue and expenditures across multiple funds. The proposed adjustments include updates to the Community Policing Fund based on revised sales and use tax projections, as well as aligning the Debt Service Fund with the previously approved bond defeasance. Additionally, adjustments are proposed for the EpicCentral and Epic & Epic Waters Funds to account for the timing of the hotel opening, updated sales and use tax projections, and necessary transfers. Adjustments to the General Fund reflect revised projections for sales tax, license fees, intergovernmental revenue, and reduced transfers to other funds. Parks-related funds, including the Golf Fund, Park Venue Fund, and Prairie Lights Fund, will be updated to reflect changes in event revenue, sales tax projections, and increased city event costs, with $160,000 allocated for the Open Space Master Plan. The Employee Insurance Fund and Risk Management Fund will have updates related to insurance premium transfers and property claims, while the Capital Lending Fund includes transfers to support citywide insurance claims. Other funds, including Stormwater, Tree Preservation, and Water/Wastewater, will be adjusted for transfer strategies and revenue collection updates to maintain balanced operations. These changes are necessary to maintain the city's financial health and to support ongoing and future projects. City Council approval is requested. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 13. Authorize contract for purchase of one (1) new Heavy-Duty Mobile Concrete Screener ($384,508) for Solid Waste - Landfill from McCourt Equipment, Inc. Jason Ramirez, Director of General Services, informed the committee about the purchase of new equipment to replace the 2015 mobile concrete screener at the Solid Waste – Landfill, as outlined in the city’s replacement schedule and included in the Fiscal Year 2023-2024 approved budget. Mr. Ramirez explained that McCourt Equipment, Inc. provided the best value out of the four bids received, despite not being a local vendor. The equipment will be sourced from McCourt Equipment, Inc., based in La Grange, TX, in the Houston-San Antonio- Austin metro area. Currently, no electric alternatives meet the duty requirements of this unit. The purchase is for one new McCloskey International R155 Heavy Duty Mobile Concrete Screener at a cost of $384,508, which includes an extended warranty. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 14. Contract with Krunchies Popcorn, LLC for one year with four one-year renewal options for food and beverage concessions at Prairie Lights with a 30% commission back to the City estimated at Finance and Government Committee – August 06, 2024 Page 4 of 6  $127,000 annually based on gross revenues collected by vendor totaling $635,000 (estimate), if all extensions are exercised Ray Cerda, Director of Parks, Arts & Recreation, informed the committee that Krunchies Popcorn LLC has been chosen to operate the food and beverage concessions inside the Holiday Village tent at Prairie Lights throughout the event. Bid #24194 was advertised in the Fort Worth Star-Telegram and Planet Bids, reaching 104 vendors, including 17 MWBE/HUBs and several Grand Prairie businesses. Three bids were received and evaluated as detailed in Attachment A. The selection was based on various criteria such as percentage reimbursement, product quality, concession setup, qualifications, experience, and other relevant factors. Krunchies Popcorn LLC met all the requirements and is the recommended choice for the concession award. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. 15. Authorize an assignment agreement with NCTCOG for assumption of an annual contract with MHC Software Holdings, Inc. for software subscription licensing in the amount of $30,291.00 for the initial term. This contract will be for one year with the option to renew for 2 additional one-year periods, allowing an increase not to exceed 5% annually with an estimated total of $95,492.38 if all extensions are exercised Keshnel Penny, CIO of Information Technology, informed the council that the City of Grand Prairie has been part of a shared software agreement with MHC Software Holdings, Inc., in partnership with NCTCOG, the City of Arlington, and the City of Carrollton. This agreement, established in the early 2000s, supports numerous payroll functions through software layered on top of Lawson, forming a unified regional enterprise resource planning (ERP) system. However, Arlington and Carrollton have transitioned to other payroll software, and NCTCOG will no longer fund this agreement beyond the current fiscal year. Grand Prairie is positioned to achieve significant savings by continuing the agreement independently through an assignment. This assignment allows the City to maintain an annual contract with MHC Software for the Annual Software Subscription Licensing, which is vital for payroll processing, system maintenance, and 1099 processing. The 5% annual increase in subscription costs accounts for potential inflation, market changes, and workforce expansion. These projections provide flexibility and may not fully materialize over time. Under Local Government Code Chapter 252, the City is exempt from the competitive bid process, as MHC Software Holdings, Inc. is the sole provider of this software. Motion to recommend approval of this item to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Chairwoman Clemson. The motion carried unanimously. EXECUTIVE SESSION No executive session was held. Finance and Government Committee – August 06, 2024 Page 5 of 6 CITIZEN COMMENTS Louis Benavidez Jr., 401 Valentino Way, voiced his concerns on the purpose of a 2% increase in the PID and felt it was unnecessary. ADJOURNMENT Chairwoman Clemson adjourned the meeting at 3:30 p.m. The foregoing minutes were approved at the October 8, 2024, Finance and Government Committee meeting. __________________________ Chairwoman Jorja Clemson Finance and Government Committee – August 06, 2024 Page 6 of 6