Carrollton City Council Regular Worksession & Meeting - November 21, 2023

The Carrollton City Council convened for a Worksession at 5:45 PM and a Regular Meeting at 7:00 PM on November 21, 2023, at City Hall. The Worksession included discussions on water and wastewater rates, council meeting dates for February through June 2024, and council reports. The Regular Meeting addressed a consent agenda, a separate vote on the Denton Central Appraisal District board appointment, and a public forum. The meeting adjourned at approximately 7:12 PM.

Consent Calendar

• Items 8–10: Minutes from October 10, October 24, and November 7, 2023 meetings, approved as amended (correction: Councilmember Palacios' name added to attendee list; correction to Oct 24 minutes regarding holiday decoration options).
• Item 11: RFP #24-003 for City Hall Pond Dredge Project #2 from HK Dredging LLC for up to $113,132.25.
• Item 12: Purchase of sand filters from Sunbelt Pools through BuyBoard inter-local agreement for up to $194,547.10.
• Item 13: Award of RFP #23-042 for the 90/10 Matching Grant Sidewalk Replacement Program to Talbert Companies, LLC (primary) and B&E Concrete Paving, LLC (secondary) for up to $300,000 annually, $900,000 total over three years.
• Item 14: Award of RFQ #23-027 for a Vision Planning Facilitator to Gensler for up to $142,500.
• Item 15: Authorized City Manager to enter into a five-year agreement with MHC Software Services via SHI Government Solutions for up to $41,250 in the first year, $179,260 total.
• Item 16: Ordinance amending Chapter 31 (Comprehensive Fee Schedule) to increase water and wastewater rates, adjust Esports Center and pool rental fees, and update special event permit fees.
• Item 17: Ordinance amending the Operating and Capital Budgets for FY 2024, decreasing Utility Operating Fund uses by $883,329 and adjusting related funds.
• Item 18: Resolution authorizing acquisition of real property rights (including potential condemnation) for the Carrollton Heights Reconstruction Project (2018 Bond Program).
• Item 19: Resolution casting the City's vote for Richard "Rick" Grady for the Collin Central Appraisal District Board.
• Item 20: Resolution casting the City's vote for Michael Hurtt for the Dallas Central Appraisal District Board (as a fourth member).
• Item 22: Resolution supporting a Municipal Setting Designation application by the City of Farmers Branch for properties at Valwood Parkway and Dennis Lane.
• Item 23: Resolution authorizing sale of approximately 42,216 sq. ft. of city-owned land at 2415 Country Club Drive to DART for the Silver Line/Mercer Yard relocation for $366,543.
• Item 24: Resolution supporting DART Resolution No. 230038, authorizing DART to exercise eminent domain for right-of-way acquisition (Parcel CB2-037) for the Silver Line project.
• Item 25: Resolution authorizing an interlocal agreement with Denton County for Hebron Parkway reconstruction (Hamilton Dr to SH 121) with a county contribution up to $4,350,000 (total project est. $8.7M).
• Item 26: Resolution authorizing an interlocal agreement with Denton County for eastbound Frankford Road Bridge repair at Furneaux Creek with county contribution up to $255,000 (total project est. $510,000).
• Item 27: Resolution authorizing an interlocal agreement with Denton County for Frankford Road reconstruction (Commodore Dr to Eisenhower St) with county contribution up to $1,500,000 (total project est. $3.0M).
• Item 28: Resolution denying CoServ Gas, Ltd.'s proposed rate increase, finding rates unreasonable, and seeking reimbursement of city's rate case expenses. The consent calendar (items 8–20, 22–28) passed unanimously on a roll call vote.

Separate Consideration: Item 21

• Item 21: Resolution casting the City's 105 votes for Roy Atwood for the Denton Central Appraisal District Board. Councilmember Fleming voted in opposition; the motion passed 6–1.

Public Comments & Testimony

• Public Comment (Agenda Item 7): No speakers.
• Public Forum (Agenda Item 29):
  • Kate Huey, 2311 Green Meadow Dr: Representing Leadership Metrocrest, requested donations (toys, clothes, food, hygiene products) for Operation Kindness and Metrocrest Services through December 8.
  • Arthur John Hanscom, 221 Old Denton Rd, Apt 1108: Spoke on protecting senior citizens from scams and fraud, citing that seniors (age 50–80) are 32% of Carrollton's population. He offered a 60-page program developed with Police Chief Arredondo and Director Rex Redden to make Carrollton a model city for senior scam prevention.

Worksession Discussion Items

• Utility Fund, Water and Wastewater Rates (Item 4): Chief Financial Officer Diana Vaughn presented. The Utility Fund is an enterprise fund that must maintain a 90-day cash reserve and a AAA bond rating. Major cost drivers include Trinity River Authority (TRA) wastewater treatment costs (projected to increase 50% over five years). The recommended rate increases are: water 3%, irrigation 5%, wastewater 5%, generating approximately 5.3% additional revenue. For an average 2,000-gallon user, monthly bills increase by about $1.27 (water +$0.45, wastewater +$0.82). The Audit, Finance, and Governance Committee unanimously recommended approval. Council discussed options for potential future subsidies from other funds to moderate increases, with staff noting that one-time funds and annual budget reviews could inform such decisions. Carrollton's rates remain comparatively low among neighboring and similarly sized cities.
• February Through June 2024 Council Meeting Dates (Item 5): Council reviewed calendar adjustments: May meetings moved to the 14th and 21st (to accommodate Memorial Day and election canvass); June meetings set for the 4th and 25th (to allow for possible runoff election). Other months generally follow the first and third Tuesday schedule.
• Mayor and Council Reports (Item 6): Councilmembers shared activities including attendance at Veterans Day events, the BAPS Diwali Festival, Metrocrest Services board meetings, DART State of the Agency, the Steve Northam Memorial Golf Tournament, the NMC Patriotic Concert, a 100th birthday celebration, and various community events. A holiday council dinner was tentatively set for December 19, 2023.

Key Outcomes

• Consent Agenda (Items 8–20, 22–28): Approved unanimously on a roll call vote (7–0).
• Item 21 (Denton CAD Board Vote): Approved 6–1, with Councilmember Fleming opposed.
• Utility Rate Increases: The proposed increases to water (3%), irrigation (5%), and wastewater (5%) rates, along with other fee schedule amendments, were adopted via Item 16 (Consent). Effective January 1, 2024.
• Budget Amendment: The budget ordinance (Item 17) was adopted, decreasing the Utility Operating Fund uses by $883,329 and adjusting related funds.
• Interlocal Agreements with Denton County: Three agreements were authorized (Items 25, 26, 27) for road and bridge projects under the TRIP-22 bond program, with county contributions totaling $6,105,000.
• DART Agreements: Council authorized the sale of city land (Item 23) for $366,543 and supported eminent domain authority (Item 24) for the Silver Line project.
• CoServ Rate Denial: Council denied CoServ Gas's proposed $10.3 million annual rate increase (Item 28), initiating a 30-day period for CoServ to appeal to the Railroad Commission.
• Future Actions: Staff will provide additional information on a potential traffic signal at the Hutton Drive/Belt Line Road intersection and will continue to explore options to moderate future utility rate increases through budget subsidies.