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Minutes TC 07/29/2019 - Joint Session TOWN OF TROPHY CLUB TOWN COUNCIL JOINT SESSION MINUTES MONDAY,JULY 29,2019,7:00 P.M. LOCATION:100 MUNICIPAL DRIVE,TROPHY CLUB,TEXAS SVORE MUNICIPAL BUILDING BOARDROOM The Town Council of the Town of Trophy Club, Texas, met in a Joint Session on Monday, July 29, 2019. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: C. Nick Sanders Mayor Eric Jensen Mayor Pro Tern, Place 2 Alicia L. Fleury Council Member, Place 1 Sean Bone Council Member, Place 3 Michael Geraci Council Member, Place 5 TOWN COUNCIL MEMBERS ABSENT: Philip Shoffner Council Member, Place 6 TOWN STAFF PRESENT: Wade Carroll Interim Town Manager Gary Cochran Interim Fire Chief David Dodd Town Attorney Cheryl Davenport Interim Director of Finance Holly Fimbres Town Secretary/RMO Mike Pastor Information Services Manager TROPHY CLUB MUNICIPAL UTILITY DISTRICT(TCMUD)NO. 1 BOARD MEMBERS PRESENT: Gregory Wilson President Bill Rose Vice President Steve Flynn Secretary/Treasurer Kelly Castonguay Director Mark Chapman Director TCMUD NO.1 STAFF PRESENT: John Carman General Manager Laurie Slaght District Secretary Steven Krolczyk Finance Manager Mayor Sanders announced the date of Monday, July 29, 2019, called the Town Council Joint Session meeting to order and announced a quorum at 7:00 p.m. JOINT SESSION 1. Consider and take appropriate action regarding the Fire Protection Services Fiscal Year 2020 budget (W. Carroll). Interim Town Manager Carroll presented the Fire Protection Services Fiscal Year 2020 Budget that included the following budgetary goals: 1) Maintain the current level of service provided to citizens. Currently the Fire Department maintains three shifts consisting of five firefighters per shift with a five man minimum staffing during the peak time hours of 6:30 a.m.to 9:30 p.m. This allows the department to fully staff the truck and an ambulance,and allows the department to split the shift and run two calls at one time during peak hours. During the non-peak hours,they have a four man minimum staffing. 2) Preserve fiscal stewardship by providing a conservative budget that does not exceed the previous year's request in all areas outside of required personnel increases. The Fire Department has worked diligently to keep their services and supplies budget in line with last year's budget, but there were increases made on the personnel side. Currently the department is using part-time staffing to assist with the personnel cost. 3) Adhere to the Department's fleet and equipment replacement plans, ensuring the ability to respond and work safely on emergency scenes. This ensures that equipment would be replaced once it was no longer supported by the manufacturer or it has run past the manufacturer's recommended life cycle for the equipment. Interim Town Manager Carroll advised that a significant change in the Fiscal Year 2020 Budget was an increase in the overall personnel budget by seven percent. This included funding for the Fire Marshal position at 50 percent in the event the Town was not awarded the Assistance to Firefighters Grant (AFG) for next year. Last year the Fire Marshal position was 100 percent grant funded through AFG. Also a three percent increase was budgeted for fire personnel to receive a salary increase with associated increases in benefits. Interim Director of Finance Davenport reviewed the medical insurance budget figures of $74,126 in Fiscal Year 2019, $90,800 for the Fiscal Year 2019 estimate, and $86,631 for the proposed Fiscal Year 2020. The $90,800 included an adjustment that the auditors made of $17,000, which the Finance Department was attempting to obtain the explanation for this adjustment. When looking at what has been paid out so far, excluding this$17,000 entry, and with a projected 15 percent medical insurance increase,this brought the total to $86,631 for the Fiscal Year 2020. Mayor Pro Tem Jensen requested that the Council be notified when Staff has identified the explanation of the $17,000 adjustment. Interim Town Manager Carroll explained that the 15 percent increase in medical insurance was a conservative estimate, but it appeared that it would be closer to a seven to eight percent increase. The Services and Supplies budget was decreased by approximately two percent. There was an increase in the Software and Support line of $4,000 for a new Records Management System because the current system was not cloud based, it has a limit of two users at one time,and requires a connection between the Fire Department and Denton County,which creates a delay. The $8,500 increase in Communication/Pagers/Mobiles was due from items that were not budgeted in 2019 surrounding the Fire portion of internet connectivity costs. Information Services Manager Pastor explained that there were three parts for connectivity for the Fire and Police Department's data communication: 1) connection from the Fire Station to Town Hall; 2) connection from Town Hall to outside;and 3)a dedicated Police and Fire Department connection to access Denton County. Interim Town Manager Carroll discussed the Building Maintenance Budget that was increased by $4,000. There have been several issues this year with their sprinkler system from condensation causing rust and small holes in the dry system;therefore the air compressor may need to be replaced. Annual maintenance for the roof has been budgeted to help resolve the continual issue of roof leaks. The furniture in their building was eight years old and needed to be repaired or replaced. Lastly, he addressed that approximately $64,750 was budgeted for capital expenses, which included the replacement of the 2006 Ford F150 for the Fire Marshal for$20,000 since it was in need of front end replacement and was having motor issues. Mayor Pro Tem Jensen inquired what determined that this vehicle needed to be replaced based on the Capital Replacement Plan criteria. Interim Town Manager Carroll responded that the 2006 Ford F150 was scheduled to be replaced; based on the mileage and maintenance cost. The truck was given to the Fire Department by the Streets Department when the Fire Marshal was hired. Mayor Pro Tem Jensen asked if the Capital Replacement Plan was based on 12 years for a vehicle. Interim Town Manager Carroll responded that the replacement was based on a combination of the year, mileage, maintenance spent,and any future repairs that were tabulated for a certain score. Mayor Pro Tem Jensen questioned when the Department would expect to budget for another replacement for this vehicle. Interim Town Manager Carroll responded that he expected this new vehicle to last eight to 10 years. Town Council Joint Session Minutes July 29,2019 Page 2 of 4 Interim Town Manager Carroll remarked that in the past several years, there has been an attempt to separate capital assets since it was difficult to account for half of an asset for the Fire and EMS. He requested direction regarding shared assets for the replacement of the 2006 Ford F150 and replacement of computer equipment. The estimated total cost for three computer equipment replacements was $19,500, which included the mounting hardware,software,and labor. Mayor Sanders asked what portion of the computer equipment would be for the EMS versus the Fire. Interim Town Manager Carroll responded that there would be two computers used for the Fire portion and one for the EMS portion. Mayor Pro Tem Jensen asked if the fire truck and an ambulance both respond to each call. Interim Town Manager Carroll confirmed both respond to every call. Mayor Sanders inquired if the Interim Town Manager had a solution to solve the issue of shared assets. Interim Town Manager Carroll responded that he would propose that the Town purchase the vehicle and carry it as a Town asset and have the TCMUD No. 1 contribute towards the purchase, but if not, in essence,the replacement was for a Town vehicle so there would be no additional cost for insurance or maintenance. Mayor Pro Tern Jensen inquired if there were any current assets listed on both the Town and TCMUD No. 1 asset list. Interim Town Manager Carroll responded that there was not. Mayor Sanders asked if Interim Town Manager Carroll was proposing that the Town purchase the vehicle for $40,000 and have the TCMUD No. 1 reimburse a portion to the Town. Interim Town Manager Carroll responded that was correct but what needed to be discussed was the amount because he would not propose that it be based at 50 percent of the total cost. Additional direction would be needed for the replacement of computer equipment. Mayor Sanders questioned how long the life expectancy was for the Fire Marshal's truck and for the technology equipment. Interim Town Manager Carroll responded that the life expectancy for the truck was at least twice as long compared to the technology equipment. Mayor Sanders remarked that in theory, if one party paid $40,000 for the truck and the other party paid $19,500 for the technology equipment, the party that purchased the technology equipment would need to replace it in another four years,which would equal out for both parties. Mayor Pro Tem Jensen inquired which vehicles were included on the Town's asset list and on the TCMUD No. 1 asset list. Interim Town Manager Carroll responded that the Fire Chief's vehicle and the two ambulances were listed on the Town's asset list and the fire engine,fire truck,fire rehabilitation truck,and brush truck were listed on the TCMUD No. 1 asset list. Mayor Pro Tern Jensen asked if the TCMUD No. 1 reimbursed a percentage for the ambulances that were listed on the Town's asset list. Interim Town Manager Carroll responded that the Town paid 100 percent and received no reimbursement from the TCMUD No. 1. Motion: Motion made by Mayor Pro Tern Jensen, seconded by Council Member Fleury, to authorize Town Staff to include the purchase of the new vehicle for the Fire Marshal not to exceed $40,000 and the purchase of the necessary IT equipment for the one ambulance to be included in the Fiscal Year 2020 Town Budget. Motion carried unanimously 5-0-0. TCMUD No. 1 Board of Directors moved to approve the purchase of two computer units for the fire trucks. Interim Town Manager Carroll discussed the replacement of the 11 year old extrication tools for $35,000. The equipment was scheduled for replacement last year but was removed from the budget to stay under the roll back rate. The new electric extrication equipment was designed to cut, bend, and move the stronger steel that was being used in modern vehicles. Town Council Joint Session Minutes July 29,2019 Page 3 of 4 Mayor Pro Tern Jensen inquired why there was a substantial increase in Travel & Per Diem, the Fiscal Year 2019 estimate was$10,500 and the proposed Fiscal Year 2020 was$14,500. Interim Town Manager Carroll responded that the $10,500 was a year to date number and did not reflect the true estimate because there were two additional trainings to take place. Mayor Pro Tern Jensen asked why funds were allocated each year for Advertising when no funds have been spent for the last two years. Interim Town Manager Carroll explained that they were working to put together a recruitment video for future openings, at an estimate of $3,000 to be split between the TCMUD No. 1 and the Town. Mayor Pro Tern Jensen remarked that he counted 10 items that were in the Fiscal Year 2019 estimates for Services and Supplies but were not included in the proposed Fiscal Year 2020 Budget. Interim Town Manager Carroll apologized and advised that due to time constraints,some of the estimates were not appropriately reflected. TCMUD No. 1 discussed portions of their budget and asked questions of Interim Town Manager Carroll. Mayor Sanders stated that from his perspective, the Council was not going to approve the Fire budget at this meeting but instead provide direction because this item would be included when the Town considers their entire budget. Town Attorney Dodd discussed the requirements of Section 3.1, Budget and Funding, within the Interlocal Cooperation Agreement for Administration of Fire Protection Services. TCMUD No. 1 discussed amendment changes of their budget and their rollback rate. TCMUD No. 1 Board of Directors moved to approve the Fire Protection Service Fiscal year 2020 Budget in a total amount not to exceed$1,832,019 and to remove$20,000 from reserves to supplement the budget. ADJOURNMENT a R Mayor Sanders adjourned the m: j8:7 p J :2:1 1 d-kS).. 4%.)4AVA- /1 he —4/ c° .--/ Holly Fimbres, own Secretar 0-4- * C. Nick Sanders, Mayor Town of Trop y Club,Texas d �y Town of Trophy Club,Texas t 1 1 i Town Council Joint Session Minutes July 29,2019 Page 4 of 4