Finance and Government Committee

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE CITY HALL - COUNCIL BRIEFING ROOM, 300 W. MAIN STREET TUESDAY, MAY 06, 2025 AT 3:00 PM MINUTES CALL TO ORDER Chairwoman Clemson called the meeting to order at 3:00 p.m. PRESENT Chairwoman Jorja Clemson Deputy Mayor Pro Tem Junior Ezeonu Council Member Kurt G. Johnson STAFF PRESENTATIONS 1. Financial Update Assistant Director of Finance Luis Barrera provided an update on several key financial areas, including the General Fund, Water/Wastewater Fund, Solid Waste Fund, Hotel Motel Tax Fund, Sales Tax, and General Fund Sales Tax. The committee thanked staff for the comprehensive update. 2. Climate Action Plan for Municipal Operations Environmental Quality Manager Jody Cason presented an overview of the city's current environmental initiatives, highlighting the five proposed principles of the city's Climate Action Plan. These principles include a five-year plan focusing on best management practices and goals, new projects and the evaluation of existing efforts. At the end of year five, the city will update its greenhouse gases (GHG) inventory to determine the next steps. In response to Deputy Mayor Pro Tem Ezeonu's inquiry about the city's use of non-CO2e emissions data compared to other cities' use of CO2e data, Mr. Cason explained the emissions by sector for municipal operations. Council Member Johnson suggested that chem trails be included in the "Be Air and Sky Aware" proposed principles, to which Mr. Cason responded that they are not of concern. Chairwoman Clemson requested further details on the 9.31% of streetlight and traffic signal emissions mentioned in the presentation, as well as additional information on the city's activities related to the five-year plan. Council Member Johnson also asked staff to explore how Public Improvement Districts and Homeowners Associations can participate in the "Be Water Smart" principle. Deputy Mayor Pro Tem Ezeonu commended the city's efforts in developing the Climate Action Plan, and Council Member Johnson echoed this praise, encouraging collaboration with other cities. Finance and Government Committee – May 06, 2025 Page 1 of 4  3. Presentation & Discussion on Upcoming Debt Issuance Assistant Director of Managment Services Latifia Coleman presented to the committee an overview of debt financing, including the Capital Improvement Plan approval and bond issuance timeline, proposed debt financing for FY2026, associated financing costs, and challenges impacting debt and property taxes. Council Member Johnson remarked the timeline presented appeared somewhat aggressive. Deputy Mayor Pro Tem Ezeonu asked whether the challenges mentioned were contributing factors to the short timeline. Ms. Coleman said staff is collaborating closely with the City's bond counsel in Austin and noted the parameters ordinance would provide some flexibility. Mayor Pro Tem Clemson inquired whether staff had observed any other city implementing the same approach. Director of Management Services Thao Vo explained that the city is working to realign its debt management practices to better reflect the best practices for the City of Grand Prairie. The committee thanked staff for this presentation. CONSENT AGENDA Chairwoman Clemson asked the committee if they had any questions on the consent agenda item. Motion to approve agenda item four made by Council Member Johnson, seconded by Deputy Mayor Pro Tem Ezeonu. The motion carried unanimously. 4. Minutes of the April 1, 2025 Finance and Government Committee Meeting Approved on Consent Agenda ITEMS FOR INDIVIDUAL CONSIDERATION 5. Contract with Infinity Cube, LLC dba Cinnaholic for Food and Beverage Concessions at the EPIC Recreation Center with a 10% commission back to the City based on gross revenues for an initial one-year term with the option to renew for up to two additional one-year terms; Authorize the City Manager or his designee to execute any documents necessary to exercise optional renewals Parks, Arts and Recreation Supervenue Manager Chris Ginapp presented this item to the committee noting Infinity Cube, LLC DBA Cinnaholic will provide food and beverage concessions for the EPIC Recreation Center and mentioned the city would receive a 10% commission back on gross revenues. Council Member Johnson expressed concerns about selecting Cinnaholic as the concessionaire at The Epic Recreation Center—not as a critique of the business itself but felt that both the business name and menu was not a suitable fit for individuals pursuing a healthy lifestyle. In addition, Council Member Johnson noted that Cinnaholic is located just down the street from The Epic Recreation Center and expressed disagreement with the proposed 10% commission, suggesting it should be increased to 20%. Deputy Mayor Pro Tem Ezeonu acknowledged Council Member Johnson raised valid concerns regarding the menu options but emphasized his desire to support local businesses. Deputy Mayor Pro Tem Ezeonu stated that he felt a 10% commission was reasonable and expressed his willingness to give Cinnaholic the opportunity, noting the proposed contract was for a one- Finance and Government Committee – May 06, 2025 Page 2 of 4  year term. Council Member Johnson said there was no need to make a decision at this time and suggested that the business could return under a different name (DBA) with healthier menu options. Mayor Pro Tem Clemson stated that while the business name was not a major concern, the city's focus on promoting health made this a difficult decision. Cinnaholic Owner Connie Burks mentioned the menu supports a wide range of dietary needs, including vegan and organic options as well as fresh coffee, plant-based protein shakes and natural energy drinks. Council Member Johnson reiterated that he would like Cinnaholic to rework the menu, and the business name reconsidered. Despite these concerns, Mayor Pro Tem Clemson and Deputy Mayor Pro Tem Ezeonu felt comfortable taking this item to the council for consideration. Motion to recommend approval to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. The motion carried unanimously. 6. Amendment #1 to Cooperative Contract with Trane U.S., Inc. to increase the authorized amount for HVAC repairs at the EPIC from $100,000 to up to $200,000 annually, bringing the total annual cost, including maintenance costs, to an amount up to $264,292 and increasing the total contract amount to up to $1,321,960, if all extensions are exercised Mr. Ginapp presented the item to the committee, highlighting that EPIC's contract with Trane U.S., Inc. includes quarterly HVAC preventative maintenance and annual inspections. Originally, the potential repair costs were estimated at $100,000 to cover necessary repairs for the nine rooftop units, split systems, and the Addison unit. However, as the units age and we enter the building's eighth year, an additional $100,000 is needed, bringing the total annual repair estimate to $200,000. This increase accounts for the rising repair needs, as the units operate at constant speed, with the facility running 17 hours a day. Staff has observed a steady increase in service costs, driven by a higher frequency of service calls and repairs in recent years. Council Member Johson inquired about the warranty of the units. Assistant Director of Parks, Arts and Recreation, Chris Michalski, explained that some units are still under warranty, while other are not. Deputy City Manager Megan Mahan said the plan will allow us to take a proactive approach rather than a reactive one. Motion to recommend approval to City Council made by Council Member Johnson, seconded by Deputy Mayor Pro Tem Ezeonu. The motion carried unanimously. 7. Resolution to expand Public Improvement District No. 5, Forum Estates through annexation of The Preserve at Forum in Dallas County Special District Administrator Lee Harriss presented this item to the committee noting the DR Horton-Texas, LTD. development known as The Preserve at Forum has formally submitted a request for annexation into the Forum Estates Public Improvement District. On April 23, 2025, the Forum Estates PID Advisory Board met to discuss the requested expansion and provide input. If the annexation is approved, a public hearing will be held on September 16, 2025, on a 2026-27 budget, a five-year service plan, an assessment levy and PID board membership. Finance and Government Committee – May 06, 2025 Page 3 of 4  Ms. Harriss added the construction of the residential development is underway, and the property's first assessment will occur in October 2025. The city will provide administrative support to the PID and will prepare and mail assessment notices. Ms. Harriss outlined the standard process for the annexation of a PID to Deputy Mayor Pro Tem Ezeonu and confirmed to Mayor Pro Tem Clemson that the PID will have its own Homeowners Association. Motion to recommend approval to City Council made by Deputy Mayor Pro Tem Ezeonu, seconded by Council Member Johnson. The motion carried unanimously. EXECUTIVE SESSION No executive session was held. CITIZEN COMMENTS There were no citizen comments. ADJOURNMENT Chairwoman Clemson adjourned the meeting at 3:59 p.m. Chairwoman Jorja Clemson Finance and Government Committee – May 06, 2025 Page 4 of 4