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HomeMy WebLinkAbout07-21-20 BOT MinMINUTES OF THE TOWN OF WESTLAKE, TEXAS JOINT TOWN COUNCIL AND BOARD OF TRUSTEES MEETING July 21, 2020 In accordance with Order of the Office of the Governor issued March 16, 2020 and March 19, 2020, the Town Council of the Town of Westlake and the Board of Trustees of Westlake Academy conducted a joint virtual meeting at 12:00 p.m. on Tuesday, July 21, 2020 by video and telephone conference in order to advance the public health goal of limiting face-to-face meetings (also called "social distancing) to slow the spread of the Coronavirus (COVID-19). There was no public access to the physical location described above. A recording of the telephonic meeting was made and is available to the public. PRESENT: President Laura Wheat and Trustees: Carol Langdon, Greg Goble, Rick Rennhack, Alesa Belvedere, and Rajiv Trivedi. ABSENT: OTHERS PRESENT: Superintendent Amanda DeGan, Deputy Town Manager Noah Simon, Assistant Town Manager Jarrod Greenwood, Town Secretary Todd Wood, Director of Information Technology Jason Power, Director of Finance Debbie Piper, Director of Facilities & Public Works Troy Meyer, Director of Communications Ginger Awtry, Fire Chief Richard Whitten, Dir. Of Planning & Development Ron Ruthven, Court Administrator Jeannie Roumell, Communications Manager John Sasser, Business Manager Marlene Rutledge, Building Official Pat Cooke, Facilities & Event Manager Darcy McFarlane, Budget & Financial Analyst Kelsey Wong, Executive Director Dr. Mechelle Bryson, PYP Principal Rod Harding, Assistant PYP Principal Beckie Paquin, DP Principal Dr. James Owen, and Registrar Kimberly Gardner. BOT Minutes — 7/21/20 Page 1 of 10 Joint Regular Session 1. CALL TO ORDER —TOWN COUNCIL Mayor Wheat called the Regular Session to order at 12:03 p.m. 2. CALL TO ORDER — BOARD OF TRUSTEES President Wheat called the Regular Session to order at 12:03 p.m. 3. CITIZEN COMMENTS Mayor Wheat provided a brief summary of instructions to the public for citizen comments. No one addressed the Town Council or Board of Trustees. 4. CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the Town Council meeting on May 18, 2020. b. Consider approval of Resolution 20-25, authorizing the Town Manager to enter into an Interlocal Agreement (ILA) for Fire Department Fleet Services between the City of Watauga and the Town of Westlake. c. Consider approval of Resolution 20-26, approving Annual Board appointments. MOTION: Council Member Belvedere made a motion to approve the consent agenda. Council Member Goble seconded the motion. The motion carried by a vote of 5-0. S. PRESENTATION AND DISCUSSION OF THE FY 19/20 AND PROPOSED FY 20/21 MUNICIPAL AND ACADEMIC BUDGETS, PROVIDING UPDATES AND ASSUMPTIONS TO THE TOWN COUNCIL AND BOARD OF TRUSTEES. Mrs. Amanda DeGan presented this item. She began by thanking the staff for their hard work in preparing the municipal and academic budgets, including the information that the Town Council and Board of Trustees would receive at this meeting. She noted that the municipal budget presentation would be a team effort with Assistant Town Manager Jarrod Greenwood, and all Department Heads were present as well to answer any questions. Town of Westlake Budget overview Mrs. DeGan's presentation began with the municipal budget and showed the Town's Vision Statement and explained how it ties into the strategic theme overview. Mrs. DeGan then asked Mr. Greenwood to present the next portion of the presentation illustrating the Town's BOT Minutes — 7/21/20 Page 2 of 10 residential and commercial growth. Westlake's residential and daytime populations through 2040 were shown, and it was noted that this is a planning tool for estimating service delivery needs and their anticipated budgetary impact. Mr. Greenwood mentioned that the level of required service delivery would be deceiving if one were to focus only on Westlake's residential population of approximately 1,650. By contrast, Westlake's daytime population is approximately 16,000 and represents a large component of overall service demand. According to the Comprehensive Plan, by 2030 the Town of Westlake would have approximately 3,300 residents and nearly 5M (five million) square feet of residential property. Additionally, the size of the average home in Westlake is more characteristic of commercial properties than residential properties when compared to most cities. This alone impacts many of the services provided by the Town, ranging from building inspections to emergency services. The Comprehensive Plan estimates that Westlake's daytime population will be approximately 23,000 by 2024; representing an 80% increase from 2019. Mrs. Degan then presented the Financial Overview for all funds in the FY 20/21 municipal budget using the latest projections and explained the following main revenue assumptions: 1. Projections for each fund are inclusive of the use of fund balance, where needed. 2. General sales taxes reflect a $1M reduction in FY 20/21. 3. Property tax projections are based on the current municipal tax rate of $0.16018. 4. Beverage taxes are projected to decrease by 35%. 5. Interest rate revenue is calculated at a 0.5% rate of return. 6. Hotel Occupancy taxes reflect a 55% decrease due to the likelihood of the Marriott hotel re -opening being delayed until 2021. 7. The $285k SAFER Fire Department grant has been included (pending award) and would be used for additional personnel if awarded. Mrs. Degan then explained the following expenditure assumptions for FY 20/21: 1. Municipal employee salaries do not reflect any increases from FY 19/20. 2. Marketing expenditures for the Marriott hotel have been reduced by 50% in the Visitor's Fund, and general marketing contract services have been reduced by 50%. 3. The Tree Lighting event has been eliminated. 4. The Utility Fund will begin making reimbursement payments to Hillwood Properties over a period of 10 (ten) years at approximately $700k per year. 5. Delays should be expected for one-time development revenues. 6. All department expenditures have been conservatively budgeted. 7. Transfers to conduit funds have been deferred to future fiscal years. 8. Several Capital Improvement projects have been delayed. 8. Transfers to the Debt Service Fund have increased by $500k due to a reduction in 4B sales tax projections. 9. The $285k SAFER Fire Department grant has been included (pending award) and would be used for additional personnel if awarded. Mayor Wheat asked if the aggregate number for deferrals to the conduit funds were available. She then asked if the staff had any concerns that any wrong impressions may result regarding the strength of the General Fund if this was not currently footnoted. She BOT Minutes — 7/21/20 Page 3 of 10 then stated if this was a significant number, she thought it would be beneficial to include this footnote. Mrs. DeGan indicated that approximately $400k-$500k is typically transferred to these conduit funds on an annual basis. Mrs. DeGan then transitioned into the General Fund Five -Year Forecast. She stated that the unassigned fund balance was inclusive of deferred transfers to conduit funds, and staff has discussed creating additional conduit funds in the future for certain projects. Additionally, unplanned development fees are not included in these forecasts; only revenues that can be reasonably relied upon have been included. The ending fund balance in the FY 20/21 budget indicates 401 operating days, calculated at a cost of $28,701 per day. This represents a reduction of 47 (forty-seven) operating days from FY 19/20 and is estimated to decline further in the future based on conservative revenue forecasting. Mrs. DeGan noted that the number of operating days would likely be higher than the ones shown, following the recovery from the pandemic and the additional development that is likely to occur through 2025. She noted that if Block "P" within Entrada blossoms, the number of operating days over the next few years may look quite look different. While Board Policy requires a minimum of 180 operating days in fund balance, Mrs. DeGan said that she prefers to see this number closer to 400 operating days, as this provides insulation for unanticipated expenditures at Westlake Academy and the unpredictable nature of commercial development revenues. Mrs. Degan then spoke on the topic of property tax rates. Prior to this year, cities could increase property tax rates by 8% before being subject to a rollback election. In the last legislative session, this was decreased to 3.5% before being subject to a rollback election. The term "Effective Tax Rate" was replaced with the term "No New Revenue Tax Rate" in the last legislative session. These terms essentially refer to a taxing entity receiving the same amount of revenue from the previous year on the same properties. Prior to FY 18/19, the Town of Westlake adopted the effective tax rate each year as residential and commercial growth occurred, keeping revenues static while experiencing a steady increase in service demands. If the current rate of $0,16018 is adopted for the upcoming year, this would be considered a tax increase, despite the rate remaining unchanged. This increase would be due to additional revenues being received on properties with increased valuations from the Tarrant or Denton County Appraisal Districts. A graph was shown illustrating the municipal property tax rates of surrounding cities compared to Westlake's municipal property tax rate. Assistant Town Manager Jarrod Greenwood then presented the Capital Improvement Projects portion of the budget. He stated that staff has taken a hard look at this portion of the budget for next year. During FY 19/20, staff has taken advantage of the office closures in Westlake as a window of opportunity to perform needed road work; minimizing any disruptions to the public. Due to the pandemic and the unknown impact that this unprecedented event could have on the Town's financial position, staff has identified Capital Improvement Projects that could be delayed in FY 19/20 and FY 20/21. The FY 20/21 draft budget currently allocates approximately $1.1M for Capital Improvement Projects, representing an approximate $500k decrease from FY 19/20. Projections in FY 21/22 contain several projects that would be bond -funded, and this would have an effect on the municipal property tax rate. Mr. Greenwood noted that it is important to have these conversations with the Town Council well in advance. Unfunded Capital Projects were then shown to the Council and were identified as needs that need to remain front and center for BOT Minutes — 7/21/20 Page 4 of 10 the purposes of planning and budgeting in the future. Mrs. DeGan asked the Council if the Westlake Academy Pedestrian Underpass project shown in FY 24/25 should remain on the list of Unfunded Capital Projects. Council Member Langdon stated that she was unsure if this was a want or a need and inquired if we knew the number of children walking or riding bicycles to school. PYP Principal Rod Harding stated that on an average day, six (6) to eight (8) children utilize the crosswalk. He noted that the cross-country track team utilizes the crosswalk in the morning during their season, involving approximately fifteen (15) students. In his observation, the crosswalk is generally not used on a regular basis. Mayor Wheat and Council Member Rennhack stated that this should be removed from the list of Unfunded Capital Projects. Council Member Belvedere stated that the practicality of the project did not justify the cost. Council Member Trivedi said that he would have to walk the property to understand if this project was a want or a need but trusted the judgment of the Council. Mayor Wheat stated that this is part of a larger discussion pertaining to future capital projects; notably the construction of a new Town Hall. She noted that at some point, we would need to come to grips with the answer as to whether a Town Commons area and the Town Hall (which would serve as the centerpiece) was important to the Town of Westlake. She then stated that Robin McCaffrey from Mesa Planning has been very insistent that having a Town Hall is critical to Westlake's identity as a community. Further, she said that she did not know what needed to be done to advance this discussion but felt that these discussions needed to occur sooner rather than later. Council Member Goble asked if it was realistic to keep the $6.27M for the Arts & Sciences Building expansion listed as an Unfunded Capital Project for FY 20/21. Director of Public Works & Facilities Troy Meyer replied that it was not realistic, as this timeframe was no longer attainable even if the Town currently had the funding for this project. Westlake Academy Budget overview Mrs. DeGan then provided a presentation for the Westlake Academy budget. She began with the Five -Year Forecast using the latest projections and explained the following revenue assumptions for the FY 20/21 budget: 1. State revenues for CTE (Career and Technical Education) programs are projected to decrease by $27K in FY 19/20. 2. State revenues are projected to increase in FY 20/21 by $44K, pending an update from TEA. 3. Enrollment is budgeted at 885 students enrolled through FY 23/24, although it is projected that the actual number for FY 20/21 will be 890 students. 4. Enrollment in FY 24/25 is projected at 890 students, increasing revenue by $24k. 5. State Facilities Allotment in FY 20/21 is projected to be $161k and is also expected to remain flat in future years. 50% of this revenue is assigned in fund balance cumulatively each year. 6. Municipal contributions to the Westlake Academy budget have been discontinued. 7. Bank interest is calculated at 0.5%. 8. Westlake Academy Foundation contributions remain steady at $1.03M. 9. Revenues have decreased by approximately $184k overall. BOT Minutes — 7/21/20 Page 5 of 10 Mrs. Degan then explained the following expenditure assumptions for FY 20/21 using the latest projections: 1. Salaries and wages have been increased by an average of 1%, at an annual cost of approximately $16k. 2. Staffing is projected at 100.26 FTEs (full-time equivalents), representing a decrease of 0.87 FTEs from the previous year. 3. The Pad Initiative is in its second year of a three (3) year lease at an annual cost of approximately $200k. 4. Maintenance and operations have increased by $42k for additional janitorial services and supplies due to unsuccessful efforts to hire an additional day porter. 5. Security and monitoring expenditures have decreased by $10k for equipment maintenance by implementing a new security system. 6. The K-3 Reading Academy mandated by HB3 is projected at $12k in FY 20/21, $21k in FY 21/22, and $18k in FY 22/23. 7. The Region 11 Service Center contract has increased by $12k and includes an instructional solutions contract for Canvas Distance Learning and support, inclusive of remote professional development opportunities. 8. A $50k Contingency Fund has been established specifically for COVID-19 expenses. Mrs. DeGan then transitioned into Westlake Academy's student enrollment projections. She noted that one of the things that are examined at each year during the budget process is where students are coming from and what projected enrollments will be. In FY 20/21, enrollment is estimated to be 890 students, although the budget is calculated at 885 students. If actual enrollment exceeds 885 students, any additional revenues would be retained in fund balance. Of the 885 students, 772 are enrolled students who are returning, inclusive of 273 students who reside in Westlake. Additional students would be admitted via residential building permits, those with pending resident status, and through the lottery process. The Five -Year Fund Balance Overview showed 57 (fifty-seven) operating days based on the ending Fund Balance in FY 20/21, reflecting no change from FY 19/20. This number was achieved in part by a $100 reduction in daily operating cost and the additional Facilities Allotment funding. The total annual cost per student in FY 20/21 is estimated to be $14,445, representing a 0.25% increase from FY 19-20. This number included indirect operating costs that are absorbed under the shared services model. Mrs. DeGan then spoke on the issue pertaining to the pandemic and its effect on the operations of the school. The Tarrant County Department of Health released an order on July 215t stating that schools would not be able to have on -campus classes prior to September 281h. As a result, remote learning will begin at Westlake Academy on August 24th, three (3) days later than originally expected. Dr. Bryson stated that this time would be used for additional staff training with remote learning and vertical articulation between teachers. A new academic calendar will be prepared for Board approval at the August 3rd meeting, and student -led parent/teacher conferences will be removed from the 2020-2021 Academic calendar. The additional three (3) days will be repurposed for teachers to use as staff workdays, giving them more time to plan. Mrs. DeGan mentioned that these days BOT Minutes — 7/21/20 Page 6 of 10 would be very important to have, as school staff has not had much of a summer break this year. During this time, four committees have been formed: Health & Safety, Academics, Operations, and Athletics. These groups have worked on the Westlake Academy Back -to School Plan, which will be brought to the Board for approval on August 3rd Mrs. DeGan mentioned that there are families who have expressed concerns regarding COVID-19 transmission to others on the school campus after returning. She noted that if several faculty members became infected, it would be nearly impossible to find a sufficient number of qualified substitute teachers during the required quarantine period. Mayor Wheat asked the Council if they had any concerns regarding the recent Tarrant County mandate, noting that it was a political issue and Westlake's governing body has an obligation to speak with one voice. Mr. Trivedi asked Dr. Bryson if it was true that if one student tested positive for COVID-19, the entire class would be required to quarantine. Dr. Bryson replied that this was dependent on contact tracing that the school would be required to do, and we would work with county health officials as to the scope of any quarantine that would be necessary. Mrs. DeGan indicated that conflicting information has been received; ranging from vacating classrooms for several hours up to a full day for a deep cleaning, and also whether it would affect adjacent classrooms. Westlake Academy is required to submit the health and safety components our Back -to -School Plan to Tarrant County following Board of Trustees approval. Mrs. DeGan also stated that she was aware that some ISDs would require facemasks for students 10 (ten) years of age and older. She noted that Westlake Academy would have much more difficulty following this practice as a K-12 campus, since our students are not segmented by age groups on different campuses like school districts. As a result, Westlake Academy would likely recommend masks for all students. Specific guidelines will be received from TEA (Texas Education Agency) by the end of the week. President Wheat noted that Denton County is currently reporting 500 pediatric cases of COVID-19. While the symptoms are generally less severe in this age group, this increase in positive cases has resulted in statistical increases in all other age groups approximately two weeks later. Mr. Trivedi stated that it was important to make our decisions based firmly on science, and not on emotional or political factors. Trustee Belvedere stated that one problem with science is that the information is often mixed. One concern she had regarding facemasks is that all types are only supposed to be used for a short period of time before being replaced; as this reduces the likelihood of spreading the virus through surface contamination. She stated that she did not know how this would be manageable with children. Mrs. DeGan noted that they have received conflicting information on this topic, and this has been discussed with staff on several occasions. At this time, the Academy plans to require facemasks to be worn on campus, and changes would be made to our operational procedures if data becomes available supporting that action. Mrs. DeGan then shared the results of a recent student enrollment survey for FY 20/21. This survey asked parents if they were required to make a decision today, would they choose to return their child(ren) to the campus for in -person instruction, choose remote instruction, or if they were undecided. Currently, 936 responses have been received, and are inclusive of new enrollments and new Westlake residents. The survey responses are as follows: a) Return to campus: b) Use remote learning: c) Currently undecided: 499 responses (53%) 316 responses (34%) 121 responses (13%) BOT Minutes — 7/21/20 Page 7 of 10 Trustee Langdon noted that Dallas ISD would be utilizing three -sided face shields and inquired whether using more than one type of PPE (Personal Protective Equipment) was a possibility for Westlake Academy students. Trustee Rennhack added that using this type of PPE would allow students and teachers to see the facial expressions other others; and noted that this was very important in a school environment. He then inquired if the effectiveness of face shields had been compared to facemasks covering the nose and mouth. Mrs. DeGan said this had been studied, with the N95 facemasks being the most effective, and cloth coverings (commonly known as "gators'� being the least effective. She then stated that we would be obtaining PPE from the State that has been allocated based on our enrollment and staff sizes. Staff has procured 10 (ten) face shields featuring two (2) different designs to try. While this type of face covering is shown to be more effective than gators, it is less effective than facemasks since they are open at the bottom. These face shields would provide an option for those who have respiratory issues or other conditions that would prevent the use of traditional facemasks. Trustee Rennhack stated that staff has looked into the possibility of having lectures online combined with on -campus instruction with teachers earlier this year and asked if this was a possibility moving forward. Dr. Bryson said that this was an accounting and attendance issue that could affect funding due to on -campus attendance requirements. Mrs. DeGan said that staff has researched this as a hybrid option for grades 9-12. Until last Friday, TEA's position was that this was not an allowable option in order for schools to receive funding for education. In order to receive funding, education was limited to in -person instruction, synchronous remote learning, or asynchronous remote learning. TEA has recently modified their position on this topic in response to many schools stating that students in younger grades could not be properly distanced if the upper grades were also on campus. At this time, it is likely that staff will recommend offering this hybrid learning option. TEA's current position on school sports programs relies on guidance released by the UIL (University Interscholastic League), subject to any legislative mandates applicable to each school. The UIL is expected to release information today that will provide necessary guidance to schools. Staff has had discussions regarding the possibility of re -arranging fall and spring sports; however, no final decisions have been made at this point. President Wheat expressed concern about our communication strategy during a time when information changes almost daily. She asked how we were planning to get information out to the public that is as consistent as we can possibly make it. Mrs. DeGan replied that Dr. Bryson was planning to do a Facebook Live session this week, and possibly share the draft health and safety components of the Back -to -School plan with participants to obtain feedback prior to bringing it to the Board for approval. Trustee Trivedi emphasized that our communications need to be accurate, consistent, and frequent. Trustee Goble expressed concerns that we are at the mercy of the State of Texas, the CDC (Center for Disease Control), and other regulatory agencies. He mentioned that we did not have a lot of choices as we continually receive information from these agencies, and this information is constantly changing. He then stated that it was of upmost importance to continue to convey that the safety of the students and staff is our primary goal and we will do everything possible to the best of our ability to achieve these goals. Mrs. DeGan agreed, BOT Minutes — 7/21/20 Page 8 of 10 adding that without putting health and safety first, education may not be possible due to possible school shutdowns in the future. Information would be shared explaining why we are making our operational decisions, and this would be in support of the ultimate goal of health and safety. Mrs. DeGan then stated that has been our intention to define what would constitute an acceptable face covering at Westlake Academy and asked the Board for their input. President Wheat and the entire Board of Trustees agreed that this decision may be made by Mrs. DeGan and the leadership of the organization. They also unanimously stated their support to require facemasks on campus, and they had full trust and confidence in Mrs. DeGan's ability to make the correct decisions on these issues. Trustee Goble asked how prepared we were with remote learning. Dr. Bryson stated that the assignments, activities, and grading for remote learning would be the same as for students who choose the in -person learning option. During the first five (5) weeks, the school would utilize remote learning for all students. Two (2) weeks prior to the end of this remote learning period, parents would choose the type of learning method for their child(ren) that would remain in effect for the remainder of the school year. Mrs. DeGan then asked the Board for staff direction on several items, beginning with changing the start date of the new school year to August 24th. This would require a change to the school calendar that would need to be submitted to TEA. The Board responded that this change was acceptable. The Council then considered a 2% municipal salary increase to be included in the draft municipal budget, and also to consider an additional 1% average increase for academic salaries in January after a review of Westlake Academy's financial position. 6. COUNCIL RECAP/STAFF DIRECTION a. Research a targeted update to the Comprehensive Plan and discuss with Robin McCaffrey about vendors that might be good for this project. b. Remove the pedestrian underpass from the Unfunded Capital Projects budget. c. Research professional strategists to work with the Westlake Academy Foundation on Blacksmith fundraising in light of current economic uncertainties. d. Provide general enrollment benchmarks for the fall, including withdrawal percentages. e. Add a column for cohort retention to the enrollment chart specifying whether students are residents, on the lottery list, or are a cohort. f. Research the transmission of COVID-19 among teens using scientific data from Denton and Tarrant counties. This could be part of the "why" in communications to parents regarding plans and decisions that are made. Being a small school with a small staff may drive many of our decisions in the future, beginning with the safety of staff and students. Illustrate the impact of COVID-19 on education and the operational areas that have been affected. g. Calculate 2% pay increases for municipal staff as a scenario to be included in future budget discussions and review the academic financials in January for a possible additional pay increase. BOT Minutes — 7/21/20 Page 9 of 10 7. FUTURE AGENDA ITEMS No future agenda items. 8. ADJOURNMENT OF THE TOWN COUNCIL AND BOARD OF TRUSTEES MEETING. There being no further business before the Town Council or Board of Trustees, Mayor/President Wheat asked for a motion to adjourn both meetings with one action. MOTION: Council/Board Member Rennhack made a motion to adjourn the meeting. Council/Board Member Langdon seconded the motion. The motion carried by a vote of 5-0. Mayor/President Wheat adjourned the meetings at 4:32 p.m. ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. APPROVED BY THE BOARD OF TRUSTEES ON SEPTEMBER 14, 2020. ATTEST: Todd Wood, Town Secretary 1 ce Laura Wheat, President BOT Minutes — 7/21/20 Page 10 of 10