Work Session Notes - March 31, 2025
I sing my diesel lullaby, now it's time to say goodbye
It was another great week on the mayoral campaign trail at the NAACP forum Saturday morning and canvassing South Garland all Sunday afternoon. I hope you are able to join us next Saturday at GAFHA’s Candidate Forum at the North Garland Branch Library at 11:00 AM.
Visit HedrickForGarland.com for additional upcoming events. I hope to see you soon!
Now on to the Work Session notes. As always, my comments are in bold italics.
WORK SESSION OF THE CITY COUNCIL
PUBLIC COMMENTS ON WORK SESSION ITEMS
CONSIDER THE CONSENT AGENDA
WRITTEN BRIEFINGS
Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.
Franchise Ordinance for Oncor Electric Delivery Company, LLC
Council is requested to consider approving a franchise ordinance with Oncor Electric Delivery Company, LLC. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 15, 2025 Regular Meeting.
The City of Garland historically regulated utilities through franchise agreements, which allowed companies to use public rights-of-way. Over time, state and federal regulatory bodies have taken over most regulatory functions, leaving cities with limited control over utility operations. However, gas and electric utilities still require franchise agreements to operate within Garland.
The City’s franchise agreement with Oncor Electric Delivery Company, LLC, which provides electric service in Garland in the areas that are not served by GP&L, was last amended in 2002 and is set to expire on April 30, 2025. The proposed new agreement aligns with provisions in the Public Utility Regulatory Act and allows for a 25-year term, the maximum allowed under the City Charter. The agreement also ensures Oncor will pay franchise fees, including a base factor and four percent of gross revenues from discretionary service charges, generating approximately $1.3 million annually.
The City Council is asked to consider approving the attached franchise ordinance with Oncor. If no objections arise, formal approval will be scheduled for the April 15, 2025, Regular Meeting.
Notice of Intent to Issue Certificates of Obligation
Council is requested to consider authorizing the publication of a Notice of Intent to Issue Certificates of Obligation in the amount not to exceed $46.5 million to fund a portion of the CIP. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 15, 2025 Regular Meeting.
The City Council adopted the 2025 Capital Improvement Program (CIP) on February 4, 2025, which includes funding through a Certificate of Obligation (CO) bond sale. A CO is a type of municipal debt that allows cities to issue bonds for infrastructure projects without voter approval, provided proper notice is given. At the April 15, 2025, Regular Meeting, the Council will consider approving a notice of intent resolution, which provides legal authorization for issuing the COs but does not obligate the City to issue debt. Final approval of the CO is expected on May 20, 2025.
Certificates of Obligation (COs) are commonly issued by municipalities to fund essential infrastructure and public service projects without requiring voter approval. Examples of projects funded through COs include:
Street and Road Improvements – Repaving roads, expanding lanes, installing traffic signals, and improving intersections.
Water and Sewer Infrastructure – Replacing aging water lines, upgrading sewer systems, and improving drainage facilities.
Public Safety Facilities – Constructing or renovating police and fire stations, purchasing emergency response vehicles, and upgrading communication systems.
Municipal Buildings and Facilities – Renovations or new construction of city halls, libraries, recreation centers, and other government buildings.
Parks and Recreational Amenities – Building new parks, upgrading playgrounds, adding trails, and improving sports fields.
In the case of the City of Garland, the 2025 CIP outlines projects requiring CO funding, with a maximum issuance of $75 million. These projects are aligned with the useful life of the debt to ensure responsible financial planning.
The CIP was formally submitted on January 6, 2025, followed by public reviews, hearings, and a budget work session. The program requires issuing COs with maturities between 5 and 20 years, ensuring debt alignment with project lifespans. Examples The notice of intent sets a maximum issuance of $75 million to fund approved projects. Since no cash or voter-approved bonds are available, the COs are necessary, and their issuance will not impact the City's debt service tax rate.
VERBAL BRIEFINGS
Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.
Proposed Development Agreement and Purchase and Sale Agreement with Blooming Investments Group 1, LLC
Council is requested to consider approval of the Proposed Development Agreement and Purchase and Sale Agreement with Blooming Investments Group 1, LLC. with regard to a 2.695-acre site at the corner of West Avenue D and South 1st Street. The City of Garland purchased several tracts on this corner in 2023 which had been a former industrial building and a residence. The Council will be briefed on this item tonight and the item will be scheduled for formal consideration at the April 15, 2025 Regular Meeting.
As per the development agreement, the Developer plans to invest $30 million to construct three mixed-use buildings with market-rate leasing and amenities like a parking garage. The City will sell the property to the Developer for $2,850,000 (Base Land Value) but offers a $425,000 incentive, reducing the payable amount to $2,425,000, contingent on the Developer completing the project by December 31, 2032, and achieving a minimum tax valuation of $30 million (including $150,000 per unit per building) as assessed by the Dallas Central Appraisal District. The agreement includes timelines for permitting (by December 31, 2027) and completion, with the City providing a Letter of Completion upon meeting standards.
If the Developer fails to meet these conditions, the full $2,850,000 becomes due. The City will also clear the property of structures and asbestos before the sale, retaining necessary easements. The agreement, effective upon signing and expiring by June 30, 2033, or upon full performance, aligns with Texas laws to stimulate business activity, benefiting both parties through mutual economic goals.
This is exactly the type of economic development that we intended to incentivise as part of Proposition F of the 2019 Bond Program and hope to continue as part of Proposition B of the proposed 2025 Bond Program. If this project is completed, it will put an underutilized piece of property back onto the tax rolls at a much higher valuation thus addressing the shortage of multifamily housing by adding 200 units and boosting Garland’s economy at the same time.
You can read more about Garland’s economic development efforts here: https://garlandtx.gov/CivicAlerts.aspx?AID=3531
Parking Enforcement Update
The City Marshal will brief City Council on recent activities related to the City Parking Enforcement Program. This update was requested by Councilmember Williams and seconded by Deputy Mayor Pro Tem Lucht at the March 17, 2025 Work Session.
As head of the City Marshals, Sr. Asst. City Attorney Shawn Roten will provide an update on our parking enforcement program. I got to see Shawn provide an update at Ed Moore’s town hall meeting last Thursday and he provided a very informative presentation. Shawn said that the goal of the program is to incentivize compliance with our parking ordinances rather than be punitive to our motorists. I’m sure he will bring the same message to tomorrow’s Work Session.
DART Governance and Funding: Impacts on Garland
Staff will provide the Council with an update on recent actions taken by the DART Board regarding funding and governance. Proposed legislation that would impact DART will also be discussed.
The Dallas Area Rapid Transit (DART) has been at the center of a funding debate with its 13 member cities, which contribute a one-cent sales tax that accounts for roughly 70% of DART’s revenue. Recently, several cities have pushed to reduce this contribution, prompting discussions about returning funds to these municipalities and adjusting DART’s financial structure.
The issue gained traction in mid-2024 when cities like Plano, Irving, Rowlett, Farmers Branch, and Carrollton passed resolutions to cut their sales tax contributions by 25%, citing concerns over service quality, transparency, and value for their residents. Dallas has also considered reductions to address its pension fund gap. This movement reflects a broader sentiment among some suburban leaders that DART’s services—spanning buses, light rail, commuter rail, and paratransit across a 700-square-mile area—do not adequately meet their needs, with complaints about safety, cleanliness, and efficiency.
In response, DART has explored options to return funds to cities as a compromise. A notable proposal emerged in March 2025, when the DART Board discussed redirecting 5% of sales tax revenue—about $42 million based on 2024 collections—into a locally created mobility fund. This fund would allow cities to use the money for transit-related projects, like street repairs or pedestrian improvements, without legislative intervention. However, cities like Plano found this insufficient, arguing it doesn’t address a perceived $65 million inequity in how DART allocates funds, pushing instead for a permanent 25% rebate, which could amount to over $200 million annually across all member cities.
Historically, DART has returned excess funds before. In 2022, with $215 million in surplus sales tax revenue from 2019-2021 (boosted by federal COVID-19 relief), the agency considered distributing it to cities for transit projects, alongside a $55 million accessibility fund. Garland received approximately $20 million in funds and plans to use it to build a transit-oriented development at the South Garland Transit Station at Shiloh Road and IH-635.
Mediation between DART and its member cities is underway aiming to resolve these disputes without slashing services—cuts that DART warns could reduce bus and rail frequency and halt modernization. Bills filed in the Texas State Legislature in February 2025 (e.g., HB 3187) already propose capping DART’s tax at 0.75 cents and mandating a 25% rebate, potentially costing DART $6 billion over 20 years if enacted.
DART’s counterargument is that reduced funding would cripple its ability to serve nearly 50 million annual passengers, especially as North Texas grows toward 11 million residents by 2050. Cities like Richardson and Dallas, which passed resolutions supporting full funding in early 2025, emphasize DART’s regional value. The mediation’s outcome remains pending, but for DART, it’s a pivotal moment in balancing city demands with DART’s operational sustainability.
This is how Grok imagines the DART negotiations are going.
Administrative Services Committee Report
Deputy Mayor Pro Tem Lucht, Chair of the Administrative Services Committee, along with staff, will present a committee report on the evaluation process for Council appointees. The discussion will also cover the next steps in engaging a consultant for next year's evaluation process. This item was submitted by Deputy Mayor Pro Tem Lucht.
At the beginning of the year, the Council reviewed the five council appointees - City Manager, City Attorney, City Auditor and Municipal Judges – with the assistance of Clear Career Professionals (CCP) consulting group. I enjoyed working with CCP throughout the process as part of the Administrative Services Committee and found them to be very thorough and responsive. I believe Chairwoman Lucht will provide details of how we may engage them earlier in the year so that we may have our reviews completed by early January 2026.
Transportation, Infrastructure and Mobility Committee Report
Councilmember Ott, Chair of the Transportation, Infrastructure and Mobility Committee, and staff will provide a committee report on the following items: No Parking Zones Near Naaman Forest and Mansions Drive, as well as No Parking Zones by the Stadium Near General Dynamics. The items were referred to the committee by Councilmember Ott with a second from Councilmember Hedrick at the February 17, 2025 Work Session. The items were discussed at the committee meeting on March 18, 2025.
Councilman Ott identified two areas he would like the TIM Committee to evaluate for adding additional no parking zones. Parking was restricted at the corner of Naaman Forest Drive and Mansions Drive several years ago, and Councilman Ott wanted to take another look due to the impending connection of Naaman Forest to N. Garland Ave. The committee however decided to postpone adding additional restrictions until the connection is constructed which may be several years from today.
Secondly, we looked at parking that occurs along N. Fifth Street South of Travis Street. The Committee decided that there were already no parking signs up along the street, they just needed to be more strictly enforced by our Parking Marshals.
(A view along N. Fifth Street looking southeast.)
CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS
Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.
Councilmember Dylan Hedrick
Kathleen Gardner, PhD, Senior Citizens Advisory Commission
ANNOUNCE FUTURE AGENDA ITEMS
A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.
EXECUTIVE SESSION
Deliberate or discuss:
The City Council will adjourn into executive session pursuant to sections 551.071, 551.072, and 551.087 of the Texas Government Code to deliberate and discuss the following:
1. Certain commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in the downtown district of the City and with which the City is conducting economic development negotiations (551.087), including the possibility of the conveyance of real property (551.072), and attorney/client discussions related to the same (551.071).
2. A potential offer by the City of financial and other incentives to a business prospect and the receipt of commercial or financial information that the City has received from that same business prospect, which the City seeks to have locate within the City in the area of I-H 635 and Shiloh Road, and in the area of President George Bush Turnpike and Holford Road, and with which the City is conducting economic development negotiations (551.087); and attorney/client communications related to the same (551.071).
3. A potential offer by the City of financial or other incentives to a business prospect and the receipt of commercial or financial information that the City has received from that same business prospect, which the City seeks to have locate within the City, and with which the City is conducting economic development negotiations (551.087); including the potential sale, exchange, or value of real property in the vicinity of Duck Creek Drive and E. Oates Road (551.072); and attorney/client communications related to the same (551.071).
ADJOURN
Talking about franchise agreements this week, here’s Franchise with “Diesel Lullaby.” Lots of Instagram filters used in the video, but it’s a catchy little tune.
Dylan, the City Council needs to look into this. This reported terrorist group is setting up their headquarters in Garland? What can you tell us about this?
https://rairfoundation.com/texas-under-siege-tablighi-jamaat-known-as-al/