2010-06-22 CC Retreat te CITY OF
SOUTHLAKE
TEXAS
CITY COUNCIL JUNE RETREAT: JUNE 22, 2010
LOCATION: Hilton Southlake
1400 Plaza Place
Southlake, Texas 76092
TIME: 5:00 P.M.
1. Call to order
2. A. Executive Session: Pursuant to the Open Meetings Act, Chapter 551,
Texas Government Code, Sections 551.071, 551.072, 551.073, 551.074,
551.076, 551.087, 418.183(f), and 418.106(d) (e). Refer to posted list
attached hereto and incorporated herein.
1. Section 551.072: Deliberation regarding real property
a. Discuss the potential purchase or lease of real property for
city facilities.
B. Reconvene: Action necessary on items discussed in Executive Session.
3. Welcome and Ice Breaker
4. Budget and policy issues discussion
5. Dinner at Copeland's
6. Strategic Focus discussion
7. Meeting adjourned
CERTIFICATE
I hereby certify that the above agenda was posted on the official bulletin boards at Town
Hall, 1400 Main Street, Southlake, Texas, on Friday, June 18, 2009, by 6:00 p.m.,
pursu nt to the Texas Government, Code, Chapter 551.
(97e— ,._,„,,t., awa,w
Lori Payne, TR h r `4 4 m
City Secretary a o
If you plan to attend this public nreeerie and have Visability that requires special needs, please
advise the City Secretary's Offik 48'•Iaodrs i, advance at 817 748 -8016 and reasonable
accommodations will be made to assts
City of Southlake values:
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City Council June Retreat
June 22, 2010
Page 2 of 3
EXECUTIVE SESSION
Section 551.071: Consultation with attorney
The City Council may conduct a private consultation with its attorney when the City
Council seeks the advice of its attorney concerning any item on this agenda, about
pending and contemplated litigation, or a settlement offer, or on a matter in which the
duty of the attorney to the City Council under the Texas Disciplinary Rules of
Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551.
This includes the following pending and /or contemplated litigation subjects:
1. Jayson Steele vs. City of Southlake. August 2008.
Section 551.072: Deliberation regarding real property
The City Council may conduct a closed meeting to deliberate the purchase, exchange,
lease or value of real property.
Section 551.073: Deliberation regarding prospective gift or donation
The City Council may conduct a closed meeting to deliberate a negotiated contract for a
prospective gift or donation to the City.
Section 551.074: Deliberation regarding personnel matters
The City Council may deliberate the appointment, employment, evaluation,
reassignment, duties, discipline, or dismissal of public officers, including the City
Manager, City Secretary, City Attorney, Municipal Judge and city boards and
commission members. A complete list of the city boards and commissions is on file in
the City Secretary's Office.
Section 551.076: Deliberation regarding security devices
The City Council may deliberate the deployment, or specific occasions for
implementation of security personnel or devices.
Section 551.087: Deliberation regarding economic development negotiations
The City Council may discuss or deliberate regarding commercial or financial
information received from a business prospect that the city seeks to have locate, stay,
or expand in or near the city and which the City is conducting economic development
negotiations; or to deliberate the offer of a financial or other incentive to a business
prospect as described above.
Section 418.183(f): Texas Disaster Act
The City Council may deliberate information: 1) for purposes of preventing,
investigating, or responding to an act of terrorism or related criminal activity and
involving emergency response providers, their staffing, contact information and tactical
plans; 2) that relates to the risk or vulnerability of persons or property, including
infrastructure, to an act of terrorism; 3) that relates to the assembly of an explosive
weapon, the location of a material that may be used in a chemical, biological or
radioactive weapon, or unpublished information pertaining to vaccines or devices to
City of Southlake values:
Integrity Innovation Accountability Commitment to Excellence Teamwork
City of Southlake
City Council June Retreat
June 22, 2010
Page 3 of 3
detect biological agents or toxins; 4) that relates to details of the encryption codes or
security keys for a public communication system; 5) that relates to a terrorism related
report to an agency of the United States; 6) that relates to technical details of particular
vulnerabilities of critical infrastructure to an act of terrorism; 7) that relates to information
regarding security measures or security systems intended to protect public and private
property from an act of terrorism. The Texas Disaster Act specifically requires that a
tape recording of the closed meeting be made.
Section 418.106(d) (e): Local meetings to discuss emergency management
plans regarding pipeline safety
The City Council may discuss emergency management plans involving pipeline safety
and /or security of pipeline infrastructures or facilities when those plans or discussions
contain such sensitive information.
City of Southlake values:
Integrity Innovation Accountability Commitment to Excellence Teamwork
p OFFICIAL RECORD
TEXAS
SOUTHLAKE CITY COUNCIL JUNE RETREAT
HILTON SOUTHLAKE
1400 PLAZA PLACE
SOUTHLAKE, TEXAS
JUNE 22, 2010
MINUTES
CITY COUNCIL PRESENT: Mayor John Terrell, Mayor Pro Tem Laura K. Hill, Deputy
Mayor Pro Tem Brandon Bledsoe (arrived at 5:43 p.m.), and City Council members
Carolyn Morris (arrived at 5:27 p.m.), Pamela A. Muller, Jeff Wang, and Al Zito.
CITY COUNCIL ABSENT: None.
STAFF PRESENT: City Manager Shana Yelverton, Assistant City Manager Director of
Public Safety Jim Blagg, Assistant City Manager Ben Thatcher, Assistant to the City
Manager Alison Ortowski, Community Relations Officer Pilar Schank, Director of
Technical Services Dale Dean, Deputy Director of Community Services Kari Happold,
Director of Finance Sharen Jackson, Director of Human Resources Stacey Black, Chief
of Fire Services Mike Starr, Director of Planning and Development Services Ken Baker,
Director of Public Works Robert H. Price, Director of Economic Development Greg Last,
and City Secretary Lori Payne.
Agenda Item 1. Call to order. Mayor Terrell called the retreat to order at 5:20 p.m.
Agenda Item No. 2A. Executive Session. Mayor Terrell announced City Council would
be going into Executive Session pursuant to the Texas Government Code, Section
551.072. City Council adjourned for Executive Session at 5:20 p.m. Executive Session
began at 5:20 p.m. and ended at 6:26 p.m.
Agenda Item No. 2B. Reconvene. Mayor Terrell reconvened the regular meeting at 6:37
p.m. and asked if any action was necessary from Executive Session. No action was
necessary.
Agenda Item No. 3. Welcome and Ice Breaker. Assistant City Manager Thatcher
welcomed Council and introduced an interactive exercise which resulted in Council
discussing individual areas of interest and tasks they would like to complete in FY2011.
At 6:42 p.m., a fire alarm sounded and the meeting had to temporarily cease. The
meeting reconvened at 7:00 p.m.
Assistant City Manager Thatcher continued the interactive exercise with Council
members. The Council continued their discussion of their focus areas for FY2011.
MINUTES FOR THE JUNE RETREAT WITH THE SOUTHLAKE CITY COUNCIL
JUNE 22, 2010 PAGE 1 OF 2
Agenda Item No. 4. Budget and policy issues discussion. Next, Director Jackson gave
the FY2010 budget report including updates on the General Fund and the various
revenue funds. She answered Council's questions.
Director Jackson presented the economic outlook and the cost drivers for FY2011 to
Council. She discussed unemployment rates, the housing market, and retail sales
numbers.
Assistant to the City Manager Ortowski presented reviewed several key points included
in last citizen survey and answered Council's questions regarding the progress made in
particular areas.
Director Jackson then presented information on FY2011 budget impacts including
expenditures, revenues, health insurance increases, property tax collections, sales tax,
and development revenue.
Council discussed these items.
Agenda Item No. 5. Dinner at Copelands. The Mayor called for a break at 8:19 p.m.
while the Council went to dinner.
The Mayor reconvened the meeting at 9:32 p.m.
Agenda Item No. 6. Strategic Focus discussion. Council discussed strategic focus areas
for the upcoming year.
City Manager Yelverton made closing comments and thanked the Council for their
participation in the June Retreat.
Agenda Item No. 7. Meeting adjourned. No action was taken at tonight's June Retreat.
Mayor Terrell adjourned the retreat at 10:30 p.m.
j
John Terrell
Mayor
ATTEST:
Au-
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V s F O V J v
Lori Payne 0';
City Secretary
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MINUTES FOR THE JUNE RETREAT WITH THE SOUTHLAKE CITY COUNCIL
JUNE 22, 2010 PAGE 2 OF 2
City Council June Retreat Southlake Hilton
Council present: Mayor Terrell, Mayor Pro Tem Laura Hill, Councilmember Jeff
Wang, Councilmember Pamela Muller, Councilmember Al Zito, Councilmember
Carolyn Morris, Councilmember Brandon Bledsoe
Staff present: Shana Yelverton, Jim Blagg, Ben Thatcher, Alison Orlowski, Pilar
Schank, Mike Starr, Dale Dean, Stacey Black, Sharen Jackson, Kari Happold,
Bob Price, Ken Baker
5:20 p.m. Mayor Terrell called meeting to order.
5:20 p.m. Mayor Terrell called for an executive session.
5:27 p.m. Carolyn Morris arrives.
5:43 p.m. Brandon Bledsoe arrives.
6:18 p.m. Laura Hill had to leave the meeting.
6:26 p.m Mayor closed executive session.
6:26 p.m Mayor called for a break
6:37 p.m. Mayor called meeting back to order
6:37:41 PM Ben Thatcher introduced the interactive exercise Toss the Cow
6:42 p.m. Meeting took a break due to a fire alarm sounding.
Ben Thatcher continued the interactive exercise with Council.
Avoid employee layoffs careful spending
Implement moratorium on assisted living and develop ordinance to avoid same
issues that have been faced previously
Council will successfully complete air testing. Mayor we owe it to citizens, have
a base line; Bledsoe agrees with Mayor, it will be a body of information we
must have; Wang clarify before and after; Muller hopefully can find a decent
base and not go into a lot of expense; Zito already in a non attainment area;
one of the most important issues Southlake;
Will successfully improve sign design relating to logos: Mayor there are a
number of ordinances we need to review and determine what can legally be
changed and close the gap; Muller agrees that we need to review the sign
ordinance people want family friendly atmosphere
Will successfully complete design of a multi purpose facility Wang one of the
most important issues we are facing; Muller need to determine where it will be
located, what it will cost; will have to phase it and start planning for it; Zito hope
we are able to listen to the largest demographics and not the loudest voices;
Morris study is good, need to know the consensus of what the various groups
need, ultimately need to go back to people for a decision; Mayor study will
provide Council with a lot of good information, need to be careful in that the
consultants have some self- interests in what they are showing everyone, citizen
survey was clear that a whole bunch of people want a facility but don't think
many are interested in paying for it, doesn't necessarily think a referendum is the
way to go because the residents were clear about not wanting to pay for it
Significant impact on sidewalks and trails Bledsoe agrees, people may not
understand how difficult they are many times; Wang 1709 is important, people
don't understand why a sidewalk may stop and not continue and connect to the
sidewalk down the road; Zito median development plan would probably be
viewed as positive but there is a lot to it cost, negotiating with property owners;
Morris some sort of ROW dedication, if 1709 could be finished out it would go a
long way with residents, information overload needs to happen with getting
sidewalk information getting out to residents; Muller communication to
residents with a catchy heading about sidewalk progress and North DPS facility
progress, decal lanes; Mayor ROW dedication program needs to be
implemented, we have made huge strides in completion of sidewalks and need to
communicate to residents where we've been, could recognize people when they
dedicate ROW
7:27:44 PM Sharen Jackson reviewed FY2010 status and overall fund status
general fund revenues, sales tax, sales tax trend, fines and forfeitures, permit
revenue, residential vs. commercial permits, utility fund revenue and
expenditures, SPDC and CCPD, red light camera fund, tax and sewer COs, GO
refunding bonds
Mayor asked where we are with the bonding companies
7:42:34 PM Yelverton stable to positive
7:52:25 PM Jackson reviewed what we expect to see in FY2011 residential,
commercial, retail sales, sales tax collections,
7:57:10 PM Alison Ortowski reviewed some key points included in the citizen
survey, service importance vs. satisfaction top gap areas,
8:04:14 PM Jackson FY2011 budget impacts expenditures, revenues
8:05:15 PM Mayor health insurance increases
8:09:50 PM Jackson reviewed FY2011 budget strategy reviewed areas of
property tax collections, sales tax, development revenue
8:15:43 PM Morris asked about animal shelter information, Jim Blagg updated
Council on the status
8:19:08 PM Jackson will monitor projects and continue updates to Council
8:19:24 PM Mayor adjourned the meeting for dinner
9:32:48 PM Mayor reconvened the meeting
9:32:59 PM Yelverton stated that the next item on the agenda is a "strategic
focus discussion."
Morris discussed an overall, comprehensive plan of the Prade /Rucker property.
Council suggested that staff prepare a plan of action.
Morris look at properties Lemke property legal non conforming uses
Morris abandoned properties Carpet One
Hill property at Highland
Look at Mesco property, strip center
Mayor and Council look at sports groups sports associations field usage
numbers of kids, from where who takes priority field availability need
detailed numbers
Muller suggested that Parks Board needs to meet with each sports association
to work through some of these issues and then meet with Council to discuss it
Muller suggested reviewing the city attorney contract and possibly look at other
options
Mayor maybe Council should look at their contract and compare rates to other
attorneys; are fees in line
Morris improve communication with our city boards philosophy
Mayor suggested holding a strategy /open dialogue meeting with certain boards
as was done with the CC /SPDC /Parks Board possibly with P &Z and ZBA
Morris should include training on ethics
Council suggested an online questionnaire for board applicants
Council enjoyed the last discussion time
Mayor adjourned meeting
T erminators Taret onverte tGr" 13v,s n e ,s' i on o GI
J rye i y t 4c
le si cue Rod Est. e.
Units Revert To Apartments Galeotafiore plans to seek a multi j
family housing loan at half the U
Investors switch to rentals interest rate he's paying
led. ew$1
in places where condos Rentals have renewed appeal, !As millionloan hewrangled.
with 1
cost less than a new car the median condo price in the area 1
BY MARILYN ALMA 4 i H Y f d I w �a e 44 sasince2007.
INVESTOR'S BUSINESS DAILY L5:4, month, that almost $600 000 a i 1
Likealotofinvestor investor-developers, :L5, A y ear in gross income potential," he
thonyGaleotafioretriedhisluckcon sod• "Andifexpensesare$200,000,
thong Galeotafiore
apartments to condo you can see what kind of net income I
miniumsduringthehousin boom thebuildingcanproduce." I
g 1
In the bust, he's doing the opposite 4 Galeotafiore has already hired a
a
as a condo terminator. The method propertymanager,tyho signed leas
k 3 Y e er ,°C
he's using could help salvage many A e s on 35 units at$1,000amonth.
of today's troubled condo convey k Condo terminations are cropping
sons, real estate professionals say.. up in other states where condo con
It helped Galeotafiore rescue his versions occurred, such as New
w York an California, says Orest To
investment in a $4 million apart F R
in
investment i n in $4 million i County. �a maselli, CEO ofNational Condo Ad
ment
years with this deal t 1 v isors a p roject approval service.
v g E But Florida is all
being the death of me, and now it's ygr zero for
rout
going to be one of the best assets I j c onversions andtheirtroubles.
have," he said. m "They've crashed harder than the
Back in the boom, Galeotafiore new condo ma McCabe said.
had seen how converters turned old 1 "Ri now in Miami, Orlando and
rental apartment buildings into con Fort Myers, you can buy a condo
dos, selling the fixed-up converters
units at a ,,x E a on
premium to buyers priced out of a Stern conversi thinks term for less th inati an a ons m new car ake r.
new luxury developments. for failed conversions, espe- Some 520 Florida rental complex llythose "heading for Class D." Mortgage es went condo in 2005 and 635 in M anySouthFloridaapartmentsliketheabovewent ondointheboom.N especiall rife in older conversions,
2006, state records show. thetrend asAnthonyGaleotafioreisdoingatanothercomp a re "the number one problem in our
But the housing market's collapse
halted the conversion craze, send i` bus r ight now," sa Paul Ka
R &PoliakoffinFortLauderdale. lan man
ingmanyprojectsintodistressas fi agingdirectorofKWPr
into distress e� Galeotafiore wasn't too worried. In e-rty Management &Consulting ;i: nancingandbuyer
"Condo convers failing „,,,,:,,,„1 ,1 Septe hef rt ed buying some Mortgage delinquencies pressure
a uni out of fore for a operating budgets. In some Florida
from one end of the country to the g 2 $18 000 each H e now h as contr of conversions, more th half of own
other,” said housing analyst Jack rt
McCabe said housing g analyst
ch &Can- 1 ��M r 39 ofthe 44 units in his complex. ers are behind and associations can't
sulting. "It started in South F l o r i da." T he other five headed toward fore- pay for lawn-cu tting, cleaning and
R closure over ar ago. None o.ftheir pool care. Remai owners su ffer
Galeotafiore's 1972 vintage rental owners c aye
hallen ed a termination special assessments, which can push
t g
vote June 9, puttingthe reversion on them over the edge into foreclosure.
tracktohappen Condo terminations aren't new.
complex became one of them.
At first things had gone well for Ga Several mortgages were 10 times a They were a legal necessity f
leotafiore, managingme ofBe u value, so it's "basically a mas- South Florida complexes destroye
Then Vs. Now
t eotafi N.Y., a eb grow sive short sale," said Grant Stern, by Hurricane Andrew in
p president of Morningside Mortgage boom, terminators bought 1992. oPre-
lder
had It's time consuming. In termina in r bor Islan ds, Fla, Galeo- beach condos to raze and rebuild.
sold 11 of the 44 units in Margate, lions, a trust is set up to pay any tafi ore's Ha a
a,at$195,000 each. But the hous debts and liens. "A lotofSunny Is es, were b
AJG Realty. By early 2008 he built on
in m arket collapse saddled him come beneficiaries
of any proceeds Short Sale Strategy six Trump Towers, were built on
with the rest of the units and a $2 from the sale of the roe this kind of terminated condo
Fl
property. plan Sternforeseesafcondo project," A written termination plan is re- termi at buildings newwaveo Zal
ripe for But terminati ski said. terminations have a different
million remaining bank loanerent
couldn't pay. By 2009 a two d. So is an OK by 80% of the bulkshort sales, such as Sunset Lake. purpose now, he says: "The condo
room unit appraised at just $15,000. voti interests of a condo complex. The idea "is ahead of the curve," terminations will be for a bulk
Galeotafiore drew up a new game A `no' by just 10% can scuttle paid do Vultures principal Peter buyer to reduce c costs and
ina "The best way to do a termina tion Za lews in Bal Harbour, Fla If suc operate the product as a
lion was his ticket out. He's turning is to have a building where less than cessful, "the industry will probably Galeotafiore is looking
plan, decidingthat a condo term forward to
the property— Sunset Lake Villas 10% of individuals own units; then embrace it as an exit strategy the better daysatSunsetLake.
project suddenly becomes much "It's a performing asset that will
backintoalegalrentalviaastate state- nobodycan blockit, "said real estate pro
proved condo termination process. attorney Jennifer Drake of Becker more attractive for an investor." be a long -term cash cow," he said.