Finance and Government Committee

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE CITY HALL - COUNCIL BRIEFING ROOM, 300 W. MAIN STREET TUESDAY, MARCH 04, 2025 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 Council Member Kurt G. Johnson STAFF PRESENTATIONS 1. Fiscal Year 2024 Annual Comprehensive Financial Report Susan Sanders, Finance Director, presented the Year-End Close Timeline, noting that sales tax received is at 40% for the year, which is above the projected 9.6%. She mentioned that the Finance Staff was introduced to the Council, and auditor Jennifer Ripka from Weaver Assurance provided a briefing on the audit timeline. Ripka highlighted improved revenue recognition, federal finances, and audit adjustments (none found). She also discussed significant risks such as management overrides of controls and the potential for fraud in revenue charges for utilities and sewer services. The audit found no significant issues or findings. Council thanked the staff for their presentations. 2. Presentation of Epic Waters Master Plan and Related Expansion Projects Andy Henning, Director of Design + Construction for Municipal Facilities, provided an update on the Epic Waters Master Plan. The RFQ issued in January 2020 received seven submissions, with Martin Aquatic Design & Engineering selected as the most qualified team. Design services began in July 2021 and concluded in June 2022, resulting in several expansion opportunities. The initial phase includes a new wave pool enclosure, inner tube slide tower, kiddie slides, food and beverage building, party rooms, and restrooms, with work phased based on funding availability. Discussions with American Resort Management are planned for Summer 2024. Phase 2 enhancements, including additional seating, will be presented to City Council in Spring 2025, with design fees estimated at $1.9M - $2.1M and construction costs ranging from $18.25M to $21.75M. Key project milestones include a City Council presentation on March 18, 2025, with Finance and Government Committee – March 04, 2025 Page 1 of 6  contract discussions scheduled for April 1 and April 15, 2025. The design process is set to begin in the Summer of 2025, with construction starting in Spring 2026 and concluding in Summer 2027. Council expressed their gratitude to the staff for their informative presentations. CONSENT AGENDA Motion to approve agenda item three and motion to recommend approval to City Council of agenda items four through seven made by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu and Council Member Johnson. The motion carried unanimously. 3. Minutes of the February 4, 2025 Finance and Government Committee Meeting Approved on Consent Agenda 4. Ordinance Amending the FY 2024/2025 Operating Budget Approved on Consent Agenda 5. Ordinance Amending the FY 2024/2025 CIP Budget Approved on Consent Agenda 6. Annual contract with Midwest Rides, LLC for one year with the option to renew for four additional one-year periods for carnival rides, games, and food booths at the Main Street Fest. The City will receive a 33.33% commission on all sales per the contract Approved on Consent Agenda 7. Annual contract with Investigation Discovery Services, LLC for pre-employment background investigation services in an amount not to exceed $25,000 annually. The contract will be for an initial term of one year with the option to renew for four additional one-year terms totaling up to $125,000 if all renewal options are exercised Approved on Consent Agenda ITEMS FOR INDIVIDUAL CONSIDERATION 8. Resolution declaring support for the preservation of the federal tax exemption of municipal bonds Finance and Government Committee – March 04, 2025 Page 2 of 6  Thao Vo, Director of Management Services, presented the National League of Cities (NLC) initiative to protect the federal tax-exempt status of municipal bonds to the committee. The NLC has called on local governments to pass a resolution supporting the preservation of this tax exemption and to emphasize its importance in every congressional district nationwide. If approved, the resolution would express the City Council’s formal support for maintaining the federal tax exemption on municipal bonds. Director Vo highlighted that this tax exemption offers significant benefits, including tax savings and reduced risk for bond investors. The tax-exempt status of municipal bonds makes them more attractive compared to other investment options, particularly for high-income investors, as they offer lower interest rates while remaining appealing to investors. Mr. Vo emphasized that eliminating the federal tax exemption would diminish the attractiveness of the City's bonds, reducing investor interest and potentially limiting the City’s borrowing capacity. This, in turn, would directly impact the City’s ability to fund essential projects such as street improvements, libraries, parks, public safety equipment, and municipal facilities. Motion to recommend approval to City Council by Council Member Johnson, seconded by Deputy Mayor Pro Tem Ezeonu. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu, and Council Member Johnson. The motion carried unanimously. 9. Contract with Sciens LLC for Project Manager Services for the Workday Implementation Project in an amount not to exceed $327,000. The term of the Contract is 18 months, with the option to renew on a monthly basis until Project completion Keshnel Penney, CIO of Information Technology, presented the City’s need for project management services to assist with the internal implementation of the Workday software. The scope of services includes project assessment, statement of work review, implementation governance, project planning support, change management consultation, risk mitigation, schedule and budget tracking, end-user training development, and vendor management. Additionally, the vendor may provide resources for data conversion, migration, or other business solutions on an as-needed basis. The project management services are expected to last 18 months, with the possibility of month-to-month extensions depending on project requirements. The vendor will also provide recommendations to streamline business processes and facilitate the implementation transition while actively monitoring project risks. An RFP was issued through the City’s Purchasing Department to 676 vendors, including 551 MWBE/HUB vendors and 11 local vendors. Sciens LLC, the second-highest scored vendor in the best value proposal process, was selected. Although the first-ranked vendor was ultimately eliminated due to pricing that exceeded the project budget after negotiations, Sciens LLC was chosen. Based in McKinney, Texas, Sciens LLC has extensive experience, having served over 200 cities nationwide and received excellent references. However, it is important to note that Sciens LLC is not an MWBE/HUB firm. The Committee reviewed the vendor recommendation and discussed the next steps for securing project management services for the Workday software implementation. Finance and Government Committee – March 04, 2025 Page 3 of 6  Motion to recommend approval to City Council by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu, and Council Member Johnson. The motion carried unanimously. 10. Construction Manager at Risk (CMAR) Contract with Fransen-Pittman Construction Co., Inc. for Initial Pre-Construction Services regarding City Hall West Open Space Stage in the amount of $5,500.00; Approval of a Construction Manager’s Fee of 2.9% of the Cost of Work, which will be determined after the Work is competitively bid and prior to construction Dana Woods, Senior Parks Project Manager of Parks, Art and Recreation, discussed with the committee the approval of a Construction Manager at Risk (CMAR) contract with Fransen- Pittman Construction Co., Inc. for initial pre-construction services related to the City Hall West Open Space Stage, in the amount of $5,500. Additionally, staff requested approval of a Construction Manager’s Fee of 2.9% to be applied to the actual costs of construction for the finalized work, which will be competitively bid at a later date and brought back to the City Council for approval prior to construction. Should the City Council approve the contract with Fransen-Pittman Construction Co., Inc., City staff will collaborate with Fransen-Pittman and Gaylen Howard Laing Architect, Inc. (Architect) to finalize design elements and initiate the bidding process with subcontractors. The CMAR pre-construction services will include the development of conceptual project estimates, preliminary construction schedules, value engineering considerations, and a constructability review. Once the final construction cost is determined, the overall project construction cost will be presented to the City Council for consideration and approval as an amendment to the initial contract. The Request for Proposal (RFP) 25066 was advertised in accordance with State law, with proposals due by February 4, 2025. A total of 830 vendors were notified, including 710 HUB/MWBE vendors and 38 local vendors. Ten companies submitted proposals, which were reviewed by the selection committee. Based on the evaluation, the committee unanimously recommended Fransen-Pittman Construction Co., Inc. for the CMAR contract award for the City Hall West Open Space Stage. Pending determination of the final project construction cost within the planned budget, a subsequent contract award will include Fransen-Pittman Construction Co., Inc.'s estimated field and office staff costs ($230,439), approximate general conditions ($196,085), and the 2.9% Construction Manager’s Fee applied to the actual competitively bid construction cost. Motion to recommend approval to City Council by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu, and Council Member Johnson. The motion carried unanimously. 11. Contract with Ponder Company Inc. for basketball court floor replacement at EPIC Recreation Center through a cooperative with Buyboard in the amount of $140,666.00 with a contingency of $25,000 for a total of $165,666 Finance and Government Committee – March 04, 2025 Page 4 of 6  Chris Ginapp, Supervenue Manager of the Epic, presented to the committee a reviewed proposal for replacing the water-damaged wood floor in the gym at Epic Recreation Center. The floor has sustained significant damage, making certain areas unplayable and unsalvageable. Staff obtained two cooperative agreement quotes and selected Ponder Company, Inc.'s proposal in the amount of $140,666.00 for the removal of the old floor and installation of new flooring, through their BuyBoard contract #737-24. Additionally, a contingency of $25,000 has been added to cover potential unknown conditions beneath the flooring. Under Chapter 271.102 of the Local Government Code, local governments are authorized to participate in cooperative purchasing programs with other local governments or cooperative organizations. This allows the City to purchase items and services through agreements that have already undergone competitive bidding by the sponsoring entity or agency, eliminating the need for a separate bidding process. The committee recommended approval of the proposal from Ponder Company, Inc. for the flooring replacement project and requested that it be forwarded to the City Council for final approval. Motion to recommend approval to City Council by Council Member Johnson, seconded by Deputy Mayor Pro Tem Ezeonu. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu, and Council Member Johnson. The motion carried unanimously. 12. Annual contract with Assembly Unlimited, Inc. for fitness equipment repairs and maintenance. The contract will be for one year in an amount not to exceed $36,976, with the option to renew for four additional one-year periods for a total amount not to exceed $184,880 if all extensions are exercised. Award secondary contract to On Site Fitness Service, LLC in an amount not to exceed $52,944 for one year with the option to renew for four additional one-year periods for a total amount not to exceed $264,720 if all options are exercised Chris Michalski, Assistant Director of Parks, Arts, and Recreation, presented the vendor selection for fitness equipment repairs and maintenance services for various City facilities, including three community centers, CVE, PSB, 10 fire stations, the CrossFit Gym, Summit, and the EPIC Recreation Center. The contract will cover a total of 499 pieces of fitness equipment, with quarterly maintenance on each piece, replacement parts at a discounted rate, and labor for necessary repairs. Bid #25065 received four responses, and after a best value evaluation based on the criteria outlined in the statement of work, Assembly Unlimited, Inc. was selected as the best choice. Bid invitations were sent to 55 vendors, including 12 HUB vendors. The committee recommended the approval of Assembly Unlimited, Inc. as the vendor for fitness equipment repairs and maintenance services and requested that the item be forwarded to the City Council for final approval. Council Member Johnson stated that procurement should be providing the departments with at least five key pointers instead of three, rather than the departments providing them, and emphasized that this approach should be followed. Motion to recommend approval to City Council by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. Voting Yea: Chairwoman Clemson, Deputy Mayor Pro Tem Ezeonu, and Council Member Johnson. The motion carried unanimously. Finance and Government Committee – March 04, 2025 Page 5 of 6 EXECUTIVE SESSION No executive session was held. CITIZEN COMMENTS No citizen comments were made. ADJOURNMENT Chairwoman Clemson adjourned the meeting at 3:29 p.m. Chairwoman Jorja Clemson Finance and Government Committee – March 04, 2025 Page 6 of 6