Carrollton City Council Regular Worksession & Meeting – February 7, 2023

The Carrollton City Council met on February 7, 2023, beginning with a 5:45 p.m. worksession and convening the regular meeting at 7:00 p.m. at City Hall, 1945 E. Jackson Road, Carrollton, Texas. Mayor Steve Babick presided. The council received the Annual Comprehensive Financial Report, honored outgoing Denton County Commissioner Ron Marchant, approved a lengthy consent agenda, and adopted a zoning text amendment on short-term rentals.

Pre-Meeting / Executive Session

• Council discussed the agenda and met in executive session under Texas Government Code Section 551.071 for legal advice and under Chapter 54 of the Texas Local Government Code regarding two Carrollton properties. No action on those matters was reported in the open session transcript.

Worksession: Annual Comprehensive Financial Report (FY Ending September 30, 2022)

• CFO Diana Vaughn presented the ACFR overview. The city's unrestricted net position increased for both governmental and business-type activities, and liquidity strengthened from 18.4 to 21.4 for general government and from 6.2 to 6.5 for business-type activities.
• A new GASB lease accounting standard was implemented in FY2022; a similar software-as-a-service standard is scheduled for the next fiscal year.
• Health insurance was highlighted as a major financial cost, with an increase of 18.2% per active member over nine years; the employer health care share remains the largest benefit cost.
• Sales tax revenue was $46 million in FY2021 (reflecting 13 months) and $48 million in FY2022 (12 months). Staff continues conservative budgeting because of possible Texas Comptroller rule changes and signs that some large sales-tax payers are slowing.
• The city reported a $25 million pension asset and a 105.4% funded status at December 31, 2021, while the OPEB unfunded liability decreased from about $18 million to about $3 million. Staff cautioned these are balance-sheet items, not spendable cash.
• The ACFR was completed in 117 days, and council members noted a clean audit with zero findings and no auditor recommendations.
• Next financial milestones: multi-year budget presentation on March 7, 2023; certified tax roll in April; preliminary budget delivered by July 31, 2023; budget discussions and adoption through August and September.

Mayor and Council Reports & Information Sharing

• Council members reported on community events including Coffee with a Cop at C2 Square, Black History Month celebrations at Annie Heads Rainwater Elementary, the United Way of Denton County tribute event, a DFW Metro NAACP meeting, chamber ribbon cuttings, and a Pinewood Derby.
• Upcoming events mentioned included the African American Read-In at Josey Ranch Lake Library and Taste of Ok Ray at Newman Smith High School on February 18, 2023.

Presentation Honoring Commissioner Ron Marchant

• The council presented a proclamation and the Key to the City to Ron Marchant for decades of public service, including Carrollton City Council, Justice of the Peace for Precinct 6, and Denton County Commissioner for Precinct 2 through January 2023. Marchant thanked the council and spoke about his family's example of servant leadership.

Public Comments & Testimony

• No speakers came forward during the public comment portion for agenda items.
• During the public forum, former Mayor Becky Miller praised the Carrollton Police Department for its work assisting the DEA in fentanyl-related arrests and asked the council to provide whatever the department needs to address the problem.
• A resident, Mr. Vidovich, criticized the Carrollton Police Department and the court system, saying he was convicted for speaking on his own property and alleging corruption. His time expired after two minutes.

Consent Calendar

• Items 8 through 23 were approved unanimously. Highlights included:
  • Item 8: Purchase of one Stryker Power-LOAD system and one Stryker Power Pro 2 patient cot with installation equipment from Stryker Medical Corporation as sole source, not to exceed $66,000.
  • Item 9: Synthetic turf for playgrounds at Ward Steenson, Martha Pointer, and McInnish Park through OMNIA Partners, not to exceed $190,313.89.
  • Item 10: Digital materials from sole-source vendor Bibliotheca, not to exceed $115,500. FY2022 CloudLibrary checkouts totaled 107,751 digital items, nearly 29% of library circulation.
  • Item 11: Vendor change for four Frazer LTD ambulances from Mac Haik Dodge to Rush Truck Centers via BuyBoard, not to exceed $1,198,184.50.
  • Item 12: Authorization for the City Manager to buy IT products/services from Freeit Data Solutions through Texas DIR, not to exceed $150,000.
  • Item 13: Change Order No. 2 with 3D Paving and Contracting, LLC for the Northcrest Estates Street Reconstruction Section 2 NOTICE project, not to exceed $81,392.90, increasing the contract to $3,217,538.90.
  • Item 14: Ordinance amending FY2023 capital budgets to add $12,697,000 in DART funds.
  • Item 15: Resolution accepting the Investment Officer's Quarterly Report for the quarter ended December 31, 2022.
  • Item 16: Engineering services contract amendment with Teague, Nall, & Perkins, Inc. for Perry Road and Country Club Drive, not to exceed $86,600; revised contract amount $847,900.
  • Item 17: Engineering design services contract with O'Brien Engineering, Inc. for the McInnish Park Concessions and Parking 2022 project, not to exceed $99,804.
  • Item 18: Renewal of the Employee Health & Wellness Center lease with Buckeye Capital Investments, LLC, at 1735 Keller Springs Road; monthly rent $4,066.67 through May 31, 2026, then $4,320 through September 30, 2028; total not to exceed $412,700.
  • Item 19: Stop-loss insurance contract with SA Benefits Services, Medical Risk Managers, and Zurich, not to exceed $105 per employee per month.
  • Item 20: Resolution acknowledging receipt of the Annual Comprehensive Financial Report for FY ended September 30, 2022.
  • Item 21: Resolution authorizing the City Manager to enter an interlocal agreement with DART for $12,697,000 in public transportation or complementary transportation service funds.
  • Item 22: Resolution appointing Alan Overholt to the Planning and Zoning Commission and naming Scott Windrow Chair.
  • Item 23: Three-year court security services agreement with Twin City Security, Inc. through Jefferson County, Colorado, at $64,087.86 annually, total not to exceed $192,203.57. Note: the attached resolution text contains one reference to $64,067.86, while the agenda memo and resolution title state $64,087.86.

Public Hearing and Ordinance: Short-Term Rental Zoning Text Amendment (Item 24)

• Staff presented Case No. PLZT 2022-187, a city-initiated Comprehensive Zoning Ordinance amendment to align zoning with the short-term rental and bed-and-breakfast code amendments adopted by the council on December 6, 2022.
• The amendment replaces “Bed and Breakfast Inn” with “Short-Term Rental,” permits short-term rentals by special use permit in single-family detached, single-family attached, and duplex residential districts, and allows them by right in the Historic Square and Urban General areas of the Downtown Transit Center District.
• It renames “Bed and Breakfast Home” as “Bed and Breakfast,” adds definitions for “Bed and Breakfast,” “Booking Service,” and “Short-Term Rental,” and updates Article XXI special-use conditions for consistency with Chapter 97 of the City Code.
• The Planning and Zoning Commission recommended approval on January 5, 2023, by an 8-0 vote (Taylor absent). No public speakers testified at the council public hearing.

Key Outcomes

• Consent agenda items 8 through 23 passed unanimously on a motion by Deputy Mayor Pro Tem Nancy S. Cline, seconded by Councilmember Adam Polter.
• Item 24, the short-term rental zoning text amendment, passed unanimously on a motion by Councilmember Young Sung, seconded by Mayor Pro Tem Andrew Palacios.
• The council received the ACFR and approved related resolutions for the DART allocation and associated capital budget amendment.
• No action was reported following executive session.