>> I'D LIKE TO WELCOME EVERYONE OUT TO OUR CITY COUNCIL MEETING TONIGHT. [A. Meeting Opening] [00:00:07] TODAY IS MONDAY, AUGUST 19, 2024. TIME, MS. GRANGER? >> 6:30 P.M. >> THE TIME IS 6:30 P.M, WE ARE CALLED TO ORDER. NEXT ITEM ON THE AGENDA IS ITEM 2, INVOCATION AND PLEDGES OF ALLEGIANCE. I'VE ASKED MAYOR PRO TEM FRANKS TO OFFER THE INVOCATION AND MS. BUHLER TO LEAD OUR PLEDGES. IF YOU'LL PLEASE RISE. >> PLEASE PRAY WITH ME. DEAR LORD, THANK YOU FOR ALLOWING US TO GATHER TONIGHT AS WE PREPARE THE CITY OF SACHSE FOR OUR FUTURE, AND THE MANY YEARS DOWN THE ROAD THAT THESE DECISIONS WILL MAKE A DIFFERENCE IN. PLEASE GIVE US THE STRENGTH AND WISDOM AND PATIENCE TO UNDERSTAND EACH OTHER'S ARGUMENTS, INCLUDING THE CITIZENS' ARGUMENTS, AND TAKE THOSE INTO CONSIDERATION WHEN WE'RE MAKING AND PLANNING OUR DECISIONS. AS I ALWAYS ASK THAT YOU LOOK OVER ALL OF OUR CITY EMPLOYEES THROUGHOUT SACHSE AS THEY KEEP OUR CITY GOING ON A DAY-TO-DAY BASIS. I ALWAYS ASK THAT YOU LOOK OUT FOR ALL THE MILITARY MEMBERS ALL OVER THE WORLD, AND LOOK OUT FOR THEIR SAFETY. THANK YOU FOR ALLOWING US TO GATHER TODAY IN OUR PLANNING, AMEN >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE. >> THANK YOU. YOU MAY BE SEATED. BEFORE WE GET TO OUR NEXT ITEM, I WANT TO SAY A WARM WELCOME TO MS. DENISE LEWIS, WHO IS WITH US OVER THERE. SAY, HELLO, MS. LEWIS. SHE IS GOING TO BE WITH US TODAY, AND SHE IS UNDER THE GOOD CARE OF MS. GRANGER. WELCOME, MS. LEWIS. NEXT ITEM ON THE AGENDA IS ITEM B, PUBLIC COMMENT. THE PUBLIC IS INVITED TO ADDRESS COUNCIL REGARDING ANY TOPIC NOT ALREADY ON THE AGENDA FOR ACTION OR PUBLIC HEARING. COMMENTS REGARDING THE CONSENT AGENDA OR ANY DISCUSSION, ONLY ITEMS ON THE AGENDA MAY BE ADDRESSED DURING THIS PUBLIC COMMENT SECTION. THE TIME LIMIT IS THREE MINUTES PER SPEAKER. A PUBLIC COMMENT CARD SHOULD BE PRESENTED TO CITY SECRETARY PRIOR TO THE MEETING. ACCORDING TO THE TEXAS OPEN MEETINGS ACT, COUNCIL IS PROHIBITED FROM DISCUSSING ANY ITEM NOT POSTED ON THE AGENDA, BUT WILL TAKE COMMENTS UNDER ADVISEMENT. DOES ANYONE IN THE AUDIENCE LIKE TO ADDRESS THE COUNCIL AT THIS TIME ON SOMETHING NOT ON THE AGENDA OR ON DISCUSSION? HEARING NONE. AGAIN, IF YOU DO HAVE A COMMENT ON AN ITEM, WE WILL GET TO TAKE THOSE AT THIS TIME. FOR THE RECORD, I DID RECEIVE A WRITTEN COMMENT FROM MR. MARTY HOBBOCK THAT HAS BEEN RECEIVED AND ACKNOWLEDGED, AND EACH COUNCIL MEMBER HAS A COPY OF THAT PUBLIC COMMENT REQUEST FOR THEIR READING. ANYBODY ELSE LIKE TO ADDRESS THE COUNCIL AT THIS TIME. HEARING NONE, WE'LL MOVE ON. NEXT ITEM ON THE AGENDA IS ITEM C, [C. Council/Staff Reports and Updates] COUNCIL, STAFF REPORTS AND UPDATES. ITEM 1, MAYOR AND CITY COUNCIL ANNOUNCEMENTS REGARDING SPECIAL EVENTS, CURRENT ACTIVITIES, OR LOCAL ACHIEVEMENTS. ANYONE ON COUNCIL LIKE TO ADDRESS THE AUDIENCE AT THIS TIME? WELL, MS. NASH, IF THEY DO, YOU'LL GET TO GO FIRST. >> MAYOR AND COUNCIL, JUST A BRIEF ANNOUNCEMENT. WE HAVE TWO NEW EMPLOYEES. IF YOU SEE THEM AROUND TOWN OR AT CITY HALL, PLEASE SAY HELLO AND WELCOME THEM. WE HAVE A NEW MAINTENANCE TECH IN THE PARKS DEPARTMENT, ARTURO RAMIREZ, AND WE HAVE A NEW PART TIME LIBRARY ASSISTANT, [INAUDIBLE]. WE JUST WANT TO WELCOME THEM TO THE CITY OF SACHSE. >> THANK YOU, MS. NASH. MAYOR PRO TEM FRANKS. >> WELL, THE NEW FALL-WINTER BROCHURE FOR THE MICHAEL J. FELIX COMMUNITY CENTER IS OUT. THIS IS WHAT IT LOOKS LIKE. NO, THAT'S NOT ME ON THE COVER AND THE COSTUME. >> CAN YOU HOLD IT OVER HERE, I WANT TO SEE. >> I DON'T WANT TO SCARE YOU. [LAUGHTER] LOTS OF NEW ACTIVITIES, SPECIAL EVENTS. THIS YEAR, WE'RE EXPANDING OUR PUMPKIN PROWL TO A FOLLOWING EVENT. WE'RE GOING TO HAVE A MONSTER MASH DODGEBALL NIGHT. WE'RE GOING TO HAVE TEEN ACTIVITIES. THERE'S SO MUCH STUFF IN THIS CATALOG AND THIS BROCHURE THAT I COULD TELL YOU. AS MY DAUGHTER RELUCTANTLY STILL SAYS, HER FAVORITE EVENT IN FEBRUARY 21 IS THE DADDY, DAUGHTER DANCE. I THINK THE EVENT IS HER FAVORITE. I DON'T KNOW IF GOING WITH HER DAD IS HER FAVORITE ANYMORE, BUT WE STILL GO. I SEE [INAUDIBLE]. >> ANY COUNCIL MEMBER HAVE ANY ANNOUNCEMENTS AT THIS TIME? I HAVE A COUPLE. CITY SECRETARY IS ACCEPTING APPLICATIONS FOR BOARD AND COMMISSION APPOINTMENTS THROUGH SEPTEMBER. IF YOU'RE INTERESTED IN VOLUNTEERING TO SERVE OUR GREAT COMMUNITY, THE APPLICATION WAS FOUND ON OUR CITY WEBSITE. YOU MAY ALSO CONTACT MS. GRANGER WITH ANY QUESTIONS YOU MIGHT HAVE ABOUT THAT. THE SACHSE ANIMAL SHELTER IS PARTICIPATING IN THE NATIONAL CLEAR THE SHELTERS CAMPAIGN THAT ACTUALLY STARTED ON AUGUST 10, AND WILL RUN THROUGH SEPTEMBER 10. ADOPTION FEES WILL BE WAIVED FOR DOGS AND CATS, AND VACCINATIONS. [00:05:04] I KNOW WE'VE ALL BEEN WAITING TO DO THAT, SO THIS IS THE TIME. NO ADOPTION FEES, SO DEFINITELY TAKE ADVANTAGE OF THAT NOW THROUGH SEPTEMBER 10. THE NEXT FARMERS' MARKET IN SACHSE WILL BE HELD ON SATURDAY, SEPTEMBER 14, FROM 9:00 A.M. TO 1:00 P.M. IN THE 5TH STREET DISTRICT, RIGHT DOWN THERE. THE MARKET IS HOSTED ON THE SECOND SATURDAY THROUGH THE END OF THE YEAR. ALSO, CITY OFFICES WILL BE CLOSED ON SEPTEMBER 2 IN OBSERVANCE OF LABOR DAY. IF YOU HAVEN'T BEEN OUT THERE, HERITAGE PARK IS NEARING COMPLETION. WE'RE WORKING WITH OUR CONTRACTOR ON THE FINAL ITEMS. MORE IMPORTANTLY, WE GOT TO LET THAT GRASS TAKE SEED. WE JUST ASKED THAT OUR RESIDENTS, I KNOW WE GET EXCITED TO SEE ALL THE NEW STUFF OUT THERE, BUT WE WOULD JUST ASK RESPECTFULLY THAT WE DON'T STEP ON THE GRASS OUT THERE. WE GOT TO LET THAT GRASS TAKE. AS WE ALL KNOW, WE'RE IN THE THROES OF THE HEAT OF SUMMER RIGHT NOW, AND SO WE DEFINITELY GOT TO GIVE IT LITTLE EXTRA TLC. PLEASE, WE WOULD JUST ASK THAT YOU NOT WALK ON THE GRASS. I PROMISE YOU THERE'LL BE PLENTY OF TIME TO DO THAT WHEN THE PARK OPENS. SPEAKING OF THAT, I WOULD CALL IT THE RE-GRAND OPENING OF THE PARK IS SCHEDULED FOR OCTOBER 5, 2024 FROM 11:00 A.M. TO 1:00 P.M. WE'LL HAVE MUCH MORE DETAILS ON THAT WHEN WE GET CLOSER. BUT AGAIN, MARKET CALENDAR IS OCTOBER 5, 11:00 A.M. TO 1:00 P.M. THAT'S A VERY EXCITING PROJECT, AND I CAN'T WAIT TO REOPEN THAT PARK. ANY OTHER COUNCIL MEMBER HAVE ANY OTHER ANNOUNCEMENTS? HEARING NONE, WE WILL MOVE ON. NEXT ITEM ON THE AGENDA IS ITEM D, CONSENT AGENDA. [D. Consent Agenda] ITEM 1 APPROVED THE JULY 29, 2024 SPECIAL MEETING MINUTES. ITEM 2 APPROVED THE AUGUST 5, 2024 MEETING MINUTES. ITEM 3 APPROVED SCHEDULING A PUBLIC HEARING ON THE FY 2024-2025 PROPOSED BUDGET AT THE SEPTEMBER 3, 2024 COUNCIL MEETING. ITEM 4 APPROVED AN ORDINANCE ADOPTING AND APPROVING THE 2024 ANNUAL SERVICE PLAN UPDATE TO THE SERVICE AND ASSESSMENT PLAN, INCLUDING THE ASSESSMENT ROLE FOR THE SACHSE PUBLIC IMPROVEMENT DISTRICT NUMBER 1 IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE IN PROVIDING AN EFFECTIVE DATE. ITEM 5 AUTHORIZES THE CITY MANAGER OR THEIR DESIGNEE TO APPROVE THE PURCHASE OF SECURITY VIDEO CAMERAS FOR THE MICHAEL J. FELIX COMMUNITY CENTER FROM STS 360 FOR THE AMOUNT OF $59,993.02, USING THE TEXAS DEPARTMENT OF INFORMATION RESOURCES PURCHASING COOPERATIVE. ANY COUNCIL MEMBER THAT WOULD LIKE TO REMOVE ANY ITEM FROM THE CONSENT AGENDA? MR. MILLSAP. >> I WOULD LIKE TO REMOVE 3, 4 AND 5 FOR FURTHER DISCUSSION. >> ITEMS 3, 4 AND 5 ARE REMOVED. THAT LEAVES ONE AND TWO. ANYONE WANT TO EITHER TAKE THOSE OFF OR MAKE A MOTION? MR. PRESTENBERG. >> I'D LIKE TO MAKE A MOTION TO APPROVE ITEMS D1 AND 2 AS PRESENTED. >> I HAVE A MOTION BY MR. PRESTENBERG TO APPROVE ITEMS D1 AND 2 AS PRESENTED. DO I HAVE A SECOND? MS. BUHLER. >> SECOND. >> I HAVE A SECOND BY MS. BUHLER. ANY FURTHER DISCUSSION? AGAIN, THESE ARE ITEMS 1 AND 2 ONLY. HEARING NONE, PLEASE CAST YOUR VOTE. WE DID THROW A LITTLE BIT OF CURVEBALL. [LAUGHTER] DO YOU WANT TO JUST DO A HAND VOTE OR?? YOU GOT IT. THERE WE GO. PLEASE CAST YOUR VOTE. MOTION CARRIES UNANIMOUSLY. ITEMS 1 AND 2 ARE APPROVED. BACK ON TO THE PULLED ITEMS, ITEM D3, [3. Approve scheduling a public hearing on the FY 2024-2025 Proposed Budget at the September 3, 2024, Council meeting.] APPROVE SCHEDULING IN THE PUBLIC HEARING ON THE FISCAL YEAR 2024-2025 PROPOSED BUDGET AT THE SEPTEMBER 3, 2024 COUNCIL MEETING. MR. MILLSAP, THERE YOU GO. >> ITEM 3. I CAN OPEN IT UP. ON OUR BLUE SHEET, IT HAS ITEM 3. >> MR. MILLSAP, IF I CAN GET YOU TO SCOOT YOUR MIC. >> I'M SORRY ABOUT THAT. ANYWAY, IT HAS A NOTICE OF PUBLIC HEARING, CITY OF SACHSE STATEMENT HERE THAT SAYS, THIS BUDGET WILL RAISE MORE REVENUE FOR PROPERTY TAXES IN LAST YEAR'S BUDGET BINDING AMOUNT OF $2,989,038, WHICH IS 11.54% INCREASE FROM LAST YEAR'S BUDGET. THIS PROPERTY TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR IS 1,000,067. I GUESS DOWN AT THE BOTTOM OF THAT IT SAYS WHERE SOME OF THAT MONEY IS COMING. AS WE START BUILDING A BUDGET EACH YEAR, [00:10:02] I THINK WE HAD A 4% ESCALATOR UP FRONT TO BUILD A BUDGET. THEN, DOES THAT INCLUDE THAT MOUNTING OR THAT AMOUNT WOULD BE ADDITIONAL TO THIS $2.98 MILLION. >> THAT'S INCLUDED. WE'LL TALK A LITTLE BIT MORE ABOUT THIS LATER ON IN SOME OF THE BUDGET ITEMS. REMEMBER THAT ANY OF THE NEW CONSTRUCTION ADDS TO THAT 11.54%. >> IT INCLUDES NEW BUILDINGS THAT WEREN'T HERE OR WEREN'T TAXED AT LAST YEAR? >> YES, SIR. >> THAT'S ALL I WANTED, WAS JUST A CLARIFICATION ON THAT. >> THANK YOU, MR. MILLSAP. ANY FURTHER DISCUSSION ON ITEM D3? HEARING NONE, I'LL ENTERTAIN MOTIONS. >> I'LL MAKE A MOTION THAT WE APPROVE D3 AS PRESENTED. >> I HAVE A MOTION BY MR. MILLSAP TO APPROVE ITEM D3 AS PRESENTED. DO I HAVE A SECOND? MR. PRESTENBERG. >> SECOND. >> I HAVE A SECOND BY MR. PRESTENBERG. ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR VOTE. MOTION CARRIES UNANIMOUSLY. NEXT ITEM ON THE AGENDA THAT WE PULLED OFF THE CONSENT IS D5, [4. Approve an ordinance accepting and approving the 2024 Annual Service Plan Update to the Service and Assessment Plan, including the Assessment Roll, for the Sachse Public Improvement District No. 1 in accordance with Chapter 372, Texas Local Government Code, and providing an effective date.] APPROVING AN ORDINANCE ACCEPTING AND APPROVING THE 2024 ANNUAL SERVICE PLAN UPDATE TO THE SERVICE AND ASSESSMENT PLAN, INCLUDING THE ASSESSMENT ROLE FOR THE SACHSE PUBLIC IMPROVEMENT DISTRICT NUMBER 1 IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE, AND PROVIDING AN EFFECTIVE DATE. MR. MILLSAP. >> ON THIS ITEM, THE ONE COMMENT I WAS GOING TO MAKE, PROBABLY, I'M NOT GOING TO MAKE OUT OF BEING MORE POLITE THAN I WOULD LIKE. BUT ANYWAY, ON PAGE 4 OF THE ADDENDUM THAT WE GOT, IT MENTIONS AREA 3, AND IT TALKS ABOUT THE PRELIMINARY SITE PLAN FOR 3810 MILES ROAD WAS SUBMITTED TO THE CITY. THE 3810 AND 3,800 ARE APPARENTLY ON THE OLDER MILES ROAD BECAUSE LAST TWO WEEKS AGO, A COMPANY CAME BY LOOKING, HE HAS A GPS, IT SENT HIM TO OUR SHOP LOOKING FOR 3800 MILES ROAD AND HE COULDN'T FIND IT. IT WAS A SIGN COMPANY GETTING READY TO PAINT AS SIGN FOR THE NEW SACHSE CAVE OR WHISKEY AVE THAT'S GOING IN THERE, AND YOU COULDN'T FIND IT. APPARENTLY AS WE CHANGED THE MILES ROAD FROM HUDSON UP TO WHERE THE [INAUDIBLE] 711 IS NOW, WE DIDN'T DO AWAY WITH THE OLD MILES ROAD. THOSE ADDRESSES ARE DOWN THERE, BECAUSE ACTUALLY THE COMMERCIAL BUILDING THERE ON BUNKER HILL IS GOING TO HAVE MILES ROAD ADDRESSES, APPARENTLY. THAT'S GOING TO BE CONFUSING BECAUSE THOSE ARE 3800 AND 3810S LISTED HERE, SHOULD BE ON THE EAST SIDE OF MILES ROAD, WHERE MY SHOP IS, 3904. THAT'S GOING TO BE SOME ADDRESSES ON MILES ROAD THERE. AS YOU GET ABOUT WHERE CHIPOTLE IS GOING TO BE GOING IN, ON THE EAST SIDE OF IT, WHAT'S GOING TO BE THOSE ADDRESS NUMBERS? >> WELL, I SEE MR. ROBINSON IS JOINING US, SO MAYBE HE CAN ADDRESS THIS QUESTION. >> IT'S GOING TO BE CONFUSING, I THINK. >> YES. THE LABEL FOR THE BUNKER HILL RETAIL, WHEN THEY INITIALLY SUBMITTED IT WAS 3810 MILES ROAD. IT'S ACTUALLY ADDRESS OFF OF BUNKER HILL ROAD. WHEN IT REFERENCES IT IN HERE, IT SHOULD ACTUALLY BE OFF OF BUNKER HILL ROAD. CHIPOTLE AND STARBUCKS WILL ACTUALLY HAVE MILES ROAD ADDRESSES BECAUSE THEY FRONT ON MILES ROAD, BUT BUNKER HILL RETAIL, WHICH IS SPECIFICALLY MENTIONED IN HERE HAS A BUNKER HILL ADDRESS. >> BASICALLY, I'M JUST RINGING POINT OF INFORMATION, IT'S THIS COMPANY THAT CAME IN MY SHOP, HIS GPS IS SHOWING [INAUDIBLE] TO US, AND IT'S 3800 WHERE THE WHISKEY CAVE IS THERE TO TAKE MEASUREMENTS TO START BUILDING A SIGN OR SOMETHING. HIS LEGAL ADDRESS WAS WRITTEN DOWN, HE SHOWED IT TO ME, THAT WAS 3800. >> YES. PART OF THE THING WITH THE ADDRESS IS WHEN THE PROPERTY GETS PLATTED, THAT'S WHEN THE ADDRESS IS RECORDED IN THE SYSTEM. WE'VE BEEN IN CONTACT WITH THE BROKER FOR THE PROPERTY AS WELL, WHO'S LEASING OUT THE PROPERTY. THEY HAVE THE WRONG ADDRESS LISTED ON THERE, AND WE NOTIFIED THEM THAT THE NEW ADDRESS IS OFF OF BUNKER HILL ROAD. [00:15:03] >> IT WILL BE AT BUNKER HILL. >> YES. >> THAT'S JUST POINT OF INFORMATION BECAUSE IT WOULD BE CONFUSING FROM THAT STANDPOINT. >> THANK YOU, MR. MILLSAP. >> THAT'S IT. >> ANY FURTHER DISCUSSION FROM COUNCIL ON ITEM D4? HEARING NONE, I'LL ENTERTAIN MOTIONS. >> I MOVE THAT ITEM D4 BE APPROVED AS PRESENTED. >> I HAVE A MOTION BY MR. MILLSAP TO APPROVE ITEM D4 AS PRESENTED. MR. LINDSEY. >> SECOND. >> SECOND. >> THANK YOU. SECONDED BY MR. LINDSEY. ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR BALLOT. THERE WE GO. MOTION CARRIES UNANIMOUSLY. THE FINAL ITEM REMOVED FROM THE CONSENT AGENDA IS ITEM 5, [5. Authorize the City Manager or their designee to approve the purchase of security video cameras for the Michael J. Felix Community Center from STS360 for the amount of $59,993.02, using the Texas Department of Information Resources (DIR) purchasing cooperative.] AUTHORIZE THE CITY MANAGER OR THEIR DESIGNEE TO APPROVE THE PURCHASE OF SECURITY VIDEO CAMERAS FOR THE MICHAEL J. FELIX COMMUNITY CENTER FROM STS 360 FOR THE AMOUNT OF $59,993.02 USING THE TEXAS DEPARTMENT OF INFORMATION RESOURCES, DIR, PURCHASING COOPERTIVE. MR. MILLSAP [PHONETIC]. >> IN THIS ITEM, IT AUTHORIZES TO BUY THE EQUIPMENT FOR 59,000. IT DOESN'T SAY ANYTHING ABOUT SERVICES TO INSTALL THIS EQUIPMENT, BUT THEN AS YOU READ IT FURTHER, IT IMPLIES THAT CITY PURCHASE POLICY REQUIRES A RECOMMENDATION ON PURCHASES AND CONTRACTS OVER 50,000 BE SUBMITTED TO COUNCIL BY THE CITY MANAGER FOR COUNCIL APPROVAL. SO BASICALLY WHAT IT'S SAYING, I'M ASSUMING, IS THAT THE CITY MANAGER IS GOING APPROVE ANYTHING UP TO $50,000, AND I'M ASSUMING THE LABOR IS GOING TO BE THAT, SO THE OVERALL COST OF THIS WILL ACTUALLY BE MORE THAN $59,000; IS THAT RIGHT? >> MR. WHITWORTH [PHONETIC]. >> YES. THANK YOU. THE 59,000 INCLUDES THE PURCHASE OF THE EQUIPMENT IN THE INSTALLATION. >> IT DOES? >> IT DOES. >> BECAUSE ON THE AGENDA SHEET HERE, IT SHOWS SHOWS BILL OF MATERIALS, AND IT LISTS $59,993.02 AS BILL OF MATERIALS. IT DOESN'T SAY AND IT DOESN'T INCLUDE LABOR. >> IT DOES. IT'S RIGHT HERE. COUNCILMAN MILLSAP RIGHT HERE AT THE BOTTOM OF THAT SHEET THAT YOU WERE JUST LOOKING AT. IT SAYS LABOR, AND THEN IT SAYS TURNKEY INSTALLATION INSET WHERE THE WORD LABOR IS. DO YOU SEE IT? >> IT SHOWS HERE AT LABOR. YES, SIR. >> SHOWS OVER HERE TO BE $18,000. >> YES. THAT'S CORRECT. >> THAT'S WHAT I WANTED, JUST TO MAKE SURE THAT YOU'RE GOING TO HAVE PROVISIONS TO PUT IT IN, NOT JUST BUY IT AND SET IT IN THE CORNER. >> ABSOLUTELY. THANK YOU. >> ANY OTHER QUESTIONS FOR THIS ITEM D5? HEARING NONE, I'LL ENTERTAIN MOTIONS. >> I HAVE NO OTHER QUESTIONS. I'D MAKE A MOTION THAT WE APPROVE D5 AS PRESENTED. >> I HAVE A MOTION BY MR. MILLSAP TO APPROVE ITEM D5 AS PRESENTED, MR. PRESTENBERG [PHONETIC]. >> SECOND. >> SECOND BY MR. PRESTENBERG. ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR BALLOT, AND IT'S UP HERE. THE JOYS OF TECHNOLOGY. MOTION CARRIES UNANIMOUSLY. THAT CONCLUDES THE CONSENT AGENDA. NEXT ITEM ON THE AGENDA, [1. Conduct a public hearing and consider the adoption of an ordinance related to the Sachse Public Improvement District No. 1; ratifying and conforming prior actions of the City Council in connection with the District; approving an Operations and Maintenance Service and Assessment Plan Update for maintenance of authorized improvements within the District which lies within the corporate limits of the city; levying assessments against the assessed property to pay for maintenance of authorized improvements within the District; providing for the collection of assessments; creating a charge and lien against the assessed property; providing for penalties for delinquent assessments; creating a District Project Fund; making legislative findings; providing for severability; and providing an effective date.] ITEM E, ACTION ITEMS. ITEM 1, CONDUCT A PUBLIC HEARING AND CONSIDER THE ADOPTION OF AN ORDINANCE RELATED TO THE SACHSE PUBLIC IMPROVEMENT DISTRICT NUMBER 1, RATIFYING AND CONFORMING PRIOR ACTIONS OF THE CITY COUNCIL IN CONNECTION WITH THE DISTRICT, APPROVING AN OPERATIONS AND MAINTENANCE SERVICE AND ASSESSMENT PLAN [00:20:01] UPDATE FOR MAINTENANCE OF AUTHORIZED IMPROVEMENTS WITHIN THE DISTRICT, WHICH LIES WITHIN THE CORPORATE LIMITS OF THE CITY, LEVYING ASSESSMENTS AGAINST THE ASSESSED PROPERTY TO PAY FOR MAINTENANCE OF AUTHORIZED IMPROVEMENTS WITHIN THE DISTRICT, PROVIDING FOR THE COLLECTION OF ASSESSMENTS, CREATING A CHARGE, AND A LIEN AGAINST ASSESSED PROPERTY, PROVIDING FOR PENALTIES AND DELINQUENT ASSESSMENTS, CREATING A DISTRICT PROJECT FUND, MAKING LEGISLATIVE FINDINGS, PROVIDING FOR SEVERABILITY, AND PROVIDING FOR AN EFFECTIVE DATE. GOOD JOB, JOE. MS. NASH. >> MAYOR AND COUNCIL, THIS IS A PUBLIC HEARING FOR YOU-ALL TO CONSIDER THE ADOPTION OF THIS ORDINANCE RELATIVE TO THE PUBLIC IMPROVEMENT DISTRICT. NUMBER 1, RELATIVE TO THE OPERATIONS AND MAINTENANCE SERVICE AND ASSESSMENT PLAN. THIS IS SOMETHING THAT IS REQUIRED TO ADOPT ANNUALLY. THERE ARE NO CHANGES TO IT FROM WHAT WE HAVE DONE IN THE PAST, BUT THIS IS A REQUIREMENT THAT IT IS ADOPTED ANNUALLY. >> THANK YOU, MS. NASH. QUESTIONS FROM THE COUNCIL FOR MS. NASH OR STAFF IN GENERAL? I DO NOT SEE ANY COMMENTS AT THIS TIME FROM COUNCIL. AT THIS TIME, I'LL DECLARE THE PUBLIC HEARING OPEN. THE TIME MS. GRANGER. >> 6:51 PM. >> PUBLIC HEARING IS NOW OPEN AT 6:51 PM. IS THERE ANYONE IN THE AUDIENCE WHO WOULD LIKE TO SPEAK ON THIS ITEM? I DID NOT GET A SPEAKERS CARD. SEEING NONE, I'LL NOW DECLARE THE PUBLIC HEARING CLOSED. THE TIME MS. GRANGER? >> 6:51 PM. >> WE COULDN'T GET 6:52. PUBLIC HEARING'S NOW CLOSED.. WITH THAT, I'LL ENTERTAIN QUESTIONS OR COMMENTS FROM COUNCIL, OR IF THE COUNCIL SO MOVES, MOTIONS. MS. BEETER [PHONETIC]. >> MR. MAYOR, I MAKE A MOTION TO ACCEPT ITEM E1 AS PRESENTED. >> I HAVE A MOTION BY MS. BEETER TO ACCEPT ITEM E1 AS PRESENTED. MAYOR PRO TEM FRANKS. >> SECOND. >> I HAVE A SECOND BY MAYOR PRO TEM FRANKS. ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR BALLOT. MAKE SURE YOU SCROLL DOWN. EVERYBODY DID. MOTION CARRIES UNANIMOUSLY. SORRY, MR. PETTY. DIDN'T GET A CHANCE TO HEAR FROM YOU. I KNOW YOU'RE SORELY DISAPPOINTED. >> I'LL SEE YOU LATER. >> NEXT ITEM ON THE AGENDA ID ITEM 2, [2. Consider receipt of the City Manager's Proposed Budget for programs and services for the 2024-2025 fiscal year.] CONSIDER RECEIPT OF THE CITY MANAGER'S PROPOSED BUDGET FOR PROGRAMS AND SERVICES FOR THE 2024/2025 FISCAL YEAR. MS. NASH. >> MAYOR AND COUNCIL, WE'RE BACK TO TALK ABOUT THE BUDGET AGAIN. >> WE WERE JUST HERE. >> YES. WE'RE HERE ALL MONTH NEXT MONTH TO TALK ABOUT THE BUDGET. THIS WILL BE MORE OF A CONDENSED PRESENTATION THAN WE HAVE GIVEN SINCE WE PRESENTED IT TO YOU, WHICH ULTIMATELY, THIS WILL BE OUR THIRD TIME, I SUPPOSE, TO JUST GIVE AN OVERVIEW AND ANSWER ANY QUESTIONS RELATIVE TO THAT. I WILL BE PRESENTING, DAVID BALDWIN, OUR FINANCE DIRECTOR, AS WELL AS LAUREN ROSE, OUR ASSISTANT CITY MANAGER. SO WE'LL TRY TO KEEP THIS AS BRIEF AND PAINLESS AS POSSIBLE. >> HELLO, MR. BALDWIN. >> HELLO, MAYOR, COUNCIL. >> CAN YOU FLIP THESE SLIDES FOR ME? >> YOU BET I CAN. >> TO MAKE IT EASY. BECAUSE I'M STARTING NOW. >> MY BAD. >> JUST TO GIVE A QUICK OVERVIEW ON THE NEXT SLIDE, TALK ABOUT THE PROPOSED ANNUAL BUDGET, SOME GENERAL FUND ASSUMPTIONS THAT WE HAD IN BUILDING THIS BUDGET. WE'RE TO TALK ABOUT PROPERTY TAX RATES AND HOW THOSE ARE BUILT IN, OUR GENERAL FUND REVENUES, OUR FUND BALANCE, FINANCIAL POLICY UPDATES, THE SUPPLEMENTAL BUDGET REQUESTS, CAPITAL PROJECT EXPENDITURES, A NEW ADDITION THAT WE WILL TALK ABOUT AS THE MASTER FEE SCHEDULE. WE DID HAVE A COUPLE OF EDITS THAT WE WANT TO ADD TO THAT, AND WE'LL TALK ABOUT THOSE, AS WELL AS I'LL WRAP IT UP WITH THE BUDGET PROCESS NEXT STEPS. AS YOU KNOW, DELIVERED TO YOU, VIA THE FINANCE DEPARTMENT ON AUGUST 15TH, YOUR PROPOSED ANNUAL BUDGET BOOK, AND YOU-ALL DID RECEIVE THAT PER THE CITY CHARTER REQUIREMENTS. IT'S ALSO AVAILABLE FOR THE PUBLIC AT WWW.CITYOFSACHSE.COM/BUDGET IF YOU WANT TO LOOK AT IT ONLINE, AND THERE ARE PRINTED COPIES AVAILABLE WITH THE CITY SECRETARY, AS WELL AS AT OUR LIBRARY. NOTHING HAS CHANGED HERE SINCE THE LAST TIME I DID THIS PRESENTATION. AGAIN, WITH PROPERTY TAXES, YOUR CERTIFIED VALUES ARE AT ABOUT $4.64 BILLION, AND I'M PROPOSING THAT YOU MAINTAIN THE TAX RATE THAT YOU HAVE FOR THE LAST TWO YEARS AT A RATE OF 0.650416. AS WE'VE DISCUSSED, SALES TAX IS GROWING, BUT IT IS BUDGETED VERY CONSERVATIVELY. OUR FRANCHISE FEES ARE STEADY, BUT OUR LICENSES AND PERMITS, WE ANTICIPATED DELAYS IN SOME OF THESE PROJECTS, OF COURSE, DUE TO THE INFLATIONARY CAPITAL MARKETS, [00:25:01] AND SO THOSE ARE A LITTLE LOWER. THEN OUR EXPENDITURES, WE DID OUR BEST TO MAINTAIN THOSE AS WELL AS WE CAN. WE DID HAVE SOME MINIMAL BASE BUDGET GROWTH DESPITE INFLATION, AS WE HAD TO DO WITH CONTRACTS AND OTHER THINGS JUST INCREASING IN COST, BUT ALWAYS KEEPING AN EYE TO MAINTAINING OUR QUALITY SERVICES THAT YOU-ALL AND OUR RESIDENTS EXPECT. WITH SOME FURTHER ASSUMPTIONS WE HAVE, REALLY, WE KNOW THAT GROWTH IS LEVELING OFF, BUT WE DO CONTINUE TO SEE INFILL AND FUTURE DEVELOPMENTS, OF COURSE, AT FIFTH STREET, THE WOODBRIDGE CORNERS AT WOODBRIDGE AND 78, AND, OF COURSE, ALL THE PROJECTS THAT WE ANTICIPATE DOWN AT THE PRESIDENT GEORGE BUSH TURNPIKE AT THE STATION. WE ARE CONTINUING PLANNING AND PREPARATION FOR AN EXIT FROM OUR HIGH GROWTH PHASE, BUT WE, AGAIN, WANT TO MAKE SURE THAT WE ARE RESPONDING TO THE NEEDS EXPRESSED BY OUR RESIDENTS, AND, OF COURSE, YOU AS OUR ELECTED BODY. TWO THINGS TO POINT OUT HERE ON THE PROPERTY TAX RATES, SOMETHING COUNCILMAN MILLSAP KIND OF ALLUDED TO EARLIER, RELATIVE TO OUR NO NEW REVENUE RATE. REMEMBER, THIS IS SORT OF A HYPOTHETICAL TAX RATE THAT WOULD RAISE THE SAME AMOUNT OF REVENUE IN UPCOMING YEAR FROM PROPERTY TAXES AS THE PREVIOUS YEAR, TAKING INTO ACCOUNT, OF COURSE, CHANGES IN TAXABLE VALUES. A NEW PROPERTY ADDED TO THE TAX ROLL IS EXCLUDED FROM THAT CALCULATION, WHICH IS WHAT WE HAD THAT DISCUSSION WHEN HE PULLED THE ITEM OFF OF THE CONSENT AGENDA. THAT JUXTAPOSED WITH THE VOTER APPROVAL RATE. THAT'S THE HIGHEST TAX RATE THAT A TAXING UNIT MAY ADOPT WITHOUT HOLDING AN ELECTION, AND, OF COURSE, IS SPLIT INTO TWO SEPARATE RATES, OUR MAINTENANCE AND OPERATION RATE, AND THAT RATE IS NEEDED TO RAISE THE SAME AMOUNT OF TAXES AS LEVIED THE PRIOR YEAR, AND IT EXCLUDES THE NEW PROPERTY PLUS WITH AN INCREASE OF 3.5%, AND IT DOES INCLUDE THAT UNUSED INCREMENT ADJUSTMENT, WHICH IS THE DIFFERENCE BETWEEN THE ADOPTED AND THE VOTER APPROVAL RATE. THEN, OF COURSE, OUR DEBT TAX RATE, WHICH THAT SECOND PART OF OUR RATE THAT WE HAVE TO SET TO PAY THE TAXING UNITS DEBT PAYMENTS THAT ARE IN THE COMING YEAR. WHEN YOU LOOK AT THIS SLIDE, THAT DARKER BLUE IS THE NO NEW REVENUE RATE THAT I REFERRED TO BEFORE, AND YOU CAN SEE THAT THAT IS LOWER THAN WHAT THE VOTER APPROVAL RATE COULD BE SHOULD THE VOTERS WANT TO INCREASE THE RATE MORE. WHAT YOU CAN SEE, WHICH IS REALLY A GOOD NEWS STORY, WE ARE NOT GOING UP TO THE NO NEW REVENUE RATE. WE'RE NOT GOING UP TO THE MAXIMUM. WE ARE LOWER THAN WHAT THE NO NEW REVENUE RATE IS, CERTAINLY ALWAYS HAVE STAYED LOWER THAN THE VOTER APPROVAL RATE. THE 2025 APPROVED RATE DOES REFLECT OUR '24/'25 PROPOSED BUDGET TOTAL RATE. THAT IS INCLUDED IN THE SLIDE. YOU CAN SEE HERE THE BREAKDOWN BETWEEN OUR PROPERTY TAX RATE WITH THE DOLLAR AND CENTS, SO THAT NO NEW REVENUE RATE AT THE TOP, AND YOU CAN SEE THE VOTER APPROVAL RATE IN THAT SECOND GRAY BOX ACROSS. WHILE YOU CAN SEE THAT THE NO NEW REVENUE RATE DID GO UP, WHAT WE'RE SUGGESTING IS TO KEEP THAT TAX RATE FLAT AS WE HAD IT LAST YEAR AT 0.650416. AGAIN, I APPRECIATE THE FINANCE DEPARTMENT AND ALL THEIR WORK. YOU CAN SEE ON THESE SLIDES, IF ANYBODY HAS SPECIFIC QUESTIONS WITHIN THE BUDGET THAT THEY WANT TO REFER TO, YOU CAN SEE AT THE BOTTOM HERE, IT SAYS PROPOSED BUDGET PAGES 28 AND 29. FOR THE PUBLIC, YOU CAN REFER TO THE FULL DOCUMENT TO GO BACK AND FORTH BETWEEN THESE SLIDES AS A SUMMARY AND THE SPECIFICS THAT ARE WITHIN THE BUDGET DOCUMENT. WITH THAT, I'LL TURN IT OVER TO DAVID HE YOU CAN TALK ABOUT GENERAL FUND REVENUE. >> YES, MAYOR AND COUNCIL, JUST TO REITERATE THE CITY MANAGER'S POINT, THAT PDF VERSION THAT'S ONLINE AND THE PHYSICAL VERSIONS THAT YOU HAVE, ALL OF THE PAGE NUMBERING IS THE SAME. SO WE'RE ALL TALKING THE SAME THING IF WE'RE REFERENCING A PAGE NUMBER IN THAT 306-PAGE DOCUMENT. CONTINUING ON WITH GENERAL FUND REVENUES FOUND IN THE BUDGET DOCUMENT. THE SOURCE FOR THIS PIE CHART IS IN PAGES 77 THROUGH 79. YOU'VE SEEN THIS PIE CHART MANY TIMES. IT'S SHOWING 61% IN PROPERTY TAXES. TOTAL TAXES, OVERALL, OF THAT PIE IS 79%. AT THE BUDGET WORKSHOP, WE SHOWED YOU A PIE CHART THAT WAS 2023 ACTUALS BECAUSE THAT WAS THE LAST AUDITOR CLOSED AND AUDITED BUDGET YEAR, AND NOW WE'RE SHOWING THE PROPOSED BUDGET. THERE'S THAT PIE CHART. >> MR. BALDWIN, REAL QUICK. >> YES. >> AGAIN, FOR OUR AUDIENCE AND PEOPLE WHO MAY BE WATCHING, YOU CAN FIND THIS PIE CHART ON PAGES 77 THROUGH 79 OF THE HARD COPY. >> OF THE HARD COPY OR THE PDF, ANY VERSION THAT YOU'RE LOOKING ON, THEY'RE BOTH THE SAME, BUT YES. YOU CAN'T FIND IN THE PIE CHART, BUT THE NUMBERS, THEY GENERATED THIS PIE CHART. ABSOLUTELY. >> JUST WANT TO MAKE SURE PEOPLE KNOW WHERE TO FIND THAT IF THEY WANTED TO. >> YOU BET. THEN SIMILAR TO A SLIDE SHOWN AT THE JULY BUDGET WORKSHOP, [00:30:07] WE SHOW OUR FUND BALANCE GOING DOWN. THAT WAS A PLANNED REDUCTION IN FUND BALANCE IN THE FISCAL YEAR 2023/2024 BUDGET. COUNCIL AUTHORIZED $7.1 MILLION OF A FUND BALANCE DRAWDOWN TO GO TOWARDS WOODBRIDGE PARKWAY, HERITAGE PARK, THE SERVICE CENTER, AND THE SCREENING WALLS. WITH THAT REDUCTION, IT PUTS SACHSE IN A COMFORTABLE SPOT, RIGHT IN THE MIDDLE THERE BETWEEN OUR POLICY TARGET OF 25% TO 35% OF EXPENDITURES. >> WITHIN THE PROPOSED BUDGET, WE ALSO HAVE OUR COMPREHENSIVE FINANCIAL MANAGEMENT POLICIES. THEY'RE INCLUDED IN THE PROPOSED BUDGET AND ARE ADOPTED ALONG WITH THE BUDGET ADOPTION. IN THAT PROPOSED BUDGET, YOU CAN SEE BEGINNING ON PAGE 58, THERE'S JUST THAT ONE PAGE THAT WE MADE EDITS TO. FIRST OF ALL, EXPENDITURE MANAGEMENT ADJUSTMENTS WERE MADE, THAT'S JUST FOR BREVITY AND CLARITY. IT TURNS OUT THERE WERE TWO TABLES AND SOME TEXTS THAT WERE ALL TRYING TO DO THE SAME THING. WE REALIZED WE COULD SIMPLIFY THAT MESSAGE BY CONSOLIDATING IT TO ONE PAGE. IN ADDITION, THE DISBURSEMENT APPROVAL LEVELS WERE UPDATED. OUR DEPARTMENT HEAD DESIGNEES HAD AUTHORITY TO AUTHORIZE PAYMENT UP TO $500, AND THAT WAS BACK IN 2016, 2017. AS YOU KNOW, PRICES HAVE INCREASED SINCE THEN, AND MORE AND MORE, WE'RE HAVING TO GO OUTSIDE OF THE NORMAL PROCESS AND GET EXCEPTIONS TO PURCHASING REQUESTS, SO IT'S JUST BECOME REALLY BURDENSOME, AND SO WE'D LIKE TO INCREASE THAT TO $999, AGAIN, FOR THE FIRST TIME OF A CHANGE SINCE 2016/'17. WE'D ALSO LIKE TO INCREASE OUR MANAGER AND ASSISTANT DEPARTMENT HEAD EXPENDITURE AUTHORIZATION LEVEL FROM JUST UNDER $2,500 TO JUST UNDER $3,000. THESE CHANGES, ALL OF THEM, FACILITATE PURCHASING WHILE STILL MAINTAINING OUR LEGAL REQUIREMENTS. >> GOOD EVENING, MAYOR AND COUNCIL. AS MS. NASH AND MR. BALDWIN ALLUDED TO, I'M HERE TO COVER THE GENERAL FUND SUPPLEMENTALS, AS WELL AS SOME OF OUR OTHER FUNDS. THIS IS JUST A RECAP OF THE CONVERSATION THAT WE HAD EARLIER THIS MONTH AND THEN IN JULY. HERE YOU CAN SEE THE LIST OF RECOMMENDED GENERAL FUND SUPPLEMENTAL REQUESTS. FIRST, OF COURSE, WE HAVE THE COMPENSATION PROPOSAL. WE HAVE AN ADMINISTRATIVE VEHICLE SPLIT WITH THE EDC FOR ADMINISTRATIVE POOL CAR. UNDER THE CMO AND IT CATEGORY, WE HAVE VIRTUAL SERVER REPLACEMENT AND REPLACEMENT OF OUR PHONE SYSTEM, WE'RE RECOMMENDING FUNDING FOR BOTH OF THOSE ITEMS. UNDER THE CITY SECRETARY ITEM, WE HAVE RECOMMENDED FUNDING FOR A LASERFICHE EXPANSION TO HELP DIGITIZE OUR DOCUMENTS. UNDER FIRE RESCUE, WE'VE GOT THE SELF-CONTAINED BREATHING APPARATUS, THE EPOC READER AND NXS HOST. THOSE TWO ITEMS WERE RECOMMENDED FOR FUNDING, AND THEN YOU'LL SEE STATION 1 KITCHEN CABINETS AND COUNTERS, WE ARE NOT RECOMMENDING FUNDING THAT REPLACEMENT ITEM. UNDER HR, YOU HAVE A COMPENSATION CLASSIFICATION STUDY WHERE WE ARE RECOMMENDING FUNDING FOR THAT ITEM. MOVING OVER TO LEISURE SERVICES UNDER THE FACILITIES MAINTENANCE DIVISION, WE HAVE SEVERAL GENERATORS HERE, THE FIRST OF WHICH IS A REPAIR FOR FIRE STATION 1. WE'RE RECOMMENDING FUNDING THAT OUT OF GENERAL FUND. THEN FOR THE GENERATOR REPLACEMENT FOR POLICE AND FIRE, WE'RE RECOMMENDING UTILIZING DEBT INSTRUMENTS TO COVER THOSE EXPENSES BECAUSE THEY ARE SO SIGNIFICANT. MOVING OVER TO THE PARKS DIVISION, WE HAVE A PACKAGE DEAL WITH A CREW CAB 350, A TORO Z MASTER MOWER AND A LANDSCAPE TRAILER TO PULL THE MOWER. WE'RE RECOMMENDING FUNDING FOR THAT ITEM. SHIFTING OVER TO RECREATION. WE'VE GOT AN OUTDOOR CHRISTMAS TREE CAMPUS HOLIDAY DECORATIONS. WE ARE NOT RECOMMENDING FUNDING FOR EITHER ONE OF THESE CATEGORIES, HOWEVER, FOR THE HOLIDAY DECORATIONS, WHAT WE DID DO IS, IN THE PROPOSED BUDGET, THERE'S AN INCREASE TO THE LINE ITEM WITHIN THE RECREATION DIVISION SO THAT THEY CAN INCREMENTALLY PURCHASE REPLACEMENT DECORATIONS OVER TIME EACH YEAR AND NOT HAVE BIG ITEMS PURCHASED IN CHUNKS. THE IDEA HERE IS THAT WE ARE REPLACING THINGS AS NEEDED FOR THOSE EVENTS. >> LET ME FROZE AGAIN. JUST FOR CLARIFICATION, ON THE MIDDLE COLUMN WHERE YOU SEE A BLANK SPACE, AS YOU REFERENCED, THAT MEANS THAT THERE'S NO FUNDING PROPOSED FOR THOSE ITEMS. >> CORRECT. YES. >> OKAY. THANK YOU. >> UNDER POLICE, WE HAVE THE POLICE OFFICERED, AND WE ARE NOT RECOMMENDING MOVING FORWARD WITH THAT POSITION AT THIS TIME. [00:35:04] THEN UNDER PUBLIC WORKS AND STREETS, YOU'VE GOT THE ADDITIONAL SIDEWALK REPLACEMENT FUNDING WITH THE SIDEWALK PROGRAM, AND THAT'S AT $50,000. THAT BRINGS US TO OUR TOTALS HERE. YOU CAN SEE WE'VE GOT 1.4 MILLION IN GENERAL FUNDING REQUEST. THAT'S WHAT'S BEING RECOMMENDED, THAT'S NOT ALL THE REQUESTS THAT WE RECEIVED. AS I MENTIONED IN PRIOR PRESENTATIONS, WE'VE WHITTLED THE LIST DOWN TO ABOUT 18 REQUESTS FROM 40, SO IT DID GO THROUGH A PRETTY EXTENSIVE REVIEW PROCESS. THEN YOU'LL SEE ALSO THAT WE HAVE DEBT FUNDING THAT'S RECOMMENDED FOR THOSE GENERATOR PIECES. AS A REMINDERS, THROUGH THE PROCESS, DEPARTMENTS ARE ABLE TO SUBMIT REQUEST. THOSE DO GO THROUGH A PRETTY EXTENSIVE REVIEW. FOR TRANSPARENCY PURPOSES, WE DO WANT TO SHOW WHAT WAS SUBMITTED BUT NOT RECOMMENDED FOR FUNDING, AND YOU CAN SEE THAT SUMMARY LISTED THERE. SHIFTING OVER TO THE UTILITY AND EDC FUND SUPPLEMENTALS, YOU CAN SEE HERE FOR THE UTILITY FUND, THAT'S JUST THEIR PORTION OF THE COMPENSATION PACKAGE THAT WE'RE PROPOSING. THEN SHIFTING DOWN TO THE EDC, AGAIN, YOU HAVE THEIR PORTION OF THE COMPENSATION PACKAGE, AND THEN THE OTHER HALF OF THAT ADMINISTRATIVE VEHICLE THAT WE'RE PROPOSING. THE VERF SCHEDULED REPLACEMENTS. FOR THOSE IN THE AUDIENCE OR WHO MIGHT BE WATCHING AT HOME, THE VERF IS OUR VEHICLE AND EQUIPMENT REPLACEMENT FUND, AND THAT IS A PAY-AS-YOU-GO PLAN WHERE WE SET MONEY ASIDE EACH YEAR TO HELP US BUY BIG CAPITAL ITEMS AND PUT THEM ON A REPLACEMENT SCHEDULE. HERE YOU CAN SEE THAT ALL OF THESE REPLACEMENTS ARE BEING RECOMMENDED, I'LL GO THROUGH THEM VERY QUICKLY. WE HAVE CYCLE 2 OF OUR COMPUTER REPLACEMENT THAT'S ON DECK. WE HAVE A TAHOE THAT'S ON DECK FOR THE FIRE RESCUE DEPARTMENT. FOR LEISURE SERVICES, WE HAVE TWO HVAC UNITS FOR PUBLIC SAFETY, BUILDING, AND AT THE LIBRARY. WE HAVE THE TORO Z MASTER 4,000 SERIES FOR PARKS, AND POLICE IS SCHEDULED TO GET TWO CHEVY TAHOES FOR THEIR FLEET. OVER IN THE UTILITY ROOF, WE ARE RECOMMENDING FUNDING FOR THAT SKID STEER LOADER. >> MAYOR AND COUNCIL, AS WE CONTINUE TO TEAM TACKLE THIS PRESENTATION, IN BEGINNING ON PAGE 196 OF THE PROPOSED BUDGET, ALL THE WAY THROUGH PAGE 2,005, WE HAVE THE CAPITAL INVESTMENT PROGRAM. >> LIKELY 205, NOT 2,005. >> YEARS AND PAGE NUMBERS, THEY GET MIXED UP ALL THE TIME. ON THIS SLIDE HERE, WE'RE SHOWING CAPITAL PROJECT EXPENDITURES BY CATEGORY, THOSE ARE CATEGORIES OF ROADWAY ALL THE WAY THROUGH DRAINAGE PROJECTS. THE BUDGET ADOPTION ORDINANCE, IF YOU RECALL, PROVIDES AUTHORITY, ONE, FOR SPENDING BY FUND, AND THAT'S IN EXHIBIT A OF YOUR ADOPTION ORDINANCE, AND THEN TWO FOR AUTHORITY BY CAPITAL PROJECT IN EXHIBIT B. IN THE PROPOSED BUDGET THIS YEAR, WE'RE SYNCING THOSE TWO THINGS TOGETHER BY REQUESTING REMAINING CAPITAL PROJECT AUTHORITY FROM THE CIP, WHICH IS EXHIBIT B, WHICH WILL BE REFLECTED IN THE REQUESTED SPENDING AUTHORITY BY FUND IN EXHIBIT A. WHAT YOU'RE SEEING HERE IS BY EXPENDITURE CATEGORY, WE HAVE, FROM THE INCEPTION OF THE PROJECT THAT'S IN THE CIP PLAN, ALL OF THAT BUDGET AUTHORITY, WE THEN LOOK AT, SO TOTAL INCEPTION OF BUDGET, AND THEN ALL OF THE SPENDING UP THROUGH THAT SAME DATE TO GET, WHAT'S THAT REMAINING UNEXHAUSTED AUTHORITY ON THOSE PROJECTS? THAT'S IN THAT FIRST COLUMN THERE CALLED REMAINING PROJECT BUDGET CARRY FORWARD. THEN THE NEXT COLUMN ARE THE NEW REQUESTS IN FISCAL YEAR '24/'25, THAT'S IN THIS BUDGET BOOK, AND THAT IS THE NEW PROJECT SPEND SHOWING IN THAT MIDDLE COLUMN. THE THIRD COLUMN THEN ADDS UP THOSE TWO COLUMNS, SO ALL OF THE PRIOR AUTHORITY UNSPENT PLUS THE NEW AUTHORITY IS THE AUTHORITY THAT'S REQUESTED IN THIS BUDGET. CITY POLICY STATES THAT USER FEES SHALL BE ADOPTED DURING THE BUDGET PROCESS AND INCLUDED IN THE MASTER FEE SCHEDULE. THE MASTER FEE SCHEDULE BEGINS ON PAGE 284 OF THE PROPOSED BUDGET BOOK. I'M UP HERE AS A REPRESENTATIVE, I HAVE MY WHOLE TEAM OF DEPARTMENT HEADS BEHIND ME TO SPEAK TO THE REQUESTS THAT THEY SUBMITTED AND ARE INCLUDED IN THIS BUDGET. BUT AS A SUMMARY, WE HAVE EIGHT DIFFERENT SECTIONS THAT I'LL GO OVER. I WILL PROVIDE THEM IN SUMMARY FORM AT THE END OF THIS PRESENTATION. WE ALSO HAVE 15 DIFFERENT SLIDES IN MORE DETAIL IF THAT'S NEEDED. IN THAT MASTER FEE SCHEDULE, IN SECTION 2, [00:40:02] WE'RE BRINGING FORWARD CHANGES TO THE ENGINEERING HEALTH AND SANITATION SECTION, AND THAT IS FOR EXPANDING THE ENGINEERING INSPECTION FEE TO INCLUDE THE THIRD PARTY FEE AND REVIEW COST. A TOTAL OF EIGHT LINES WERE ADDED. THEN WE RAISED THE PUBLIC SWIMMING POOL PERMIT TO $150 FROM $100 TO MATCH THIRD-PARTY INSPECTION COSTS. IN THE PARK FACILITY RENTALS FEES, WE ADDED FEES TO THE TRAIN, WHICH IS TRAVELING, RECREATIONAL ACTIVITIES IN NATURE TO THAT TRAIN TRAILER FOR THE RENTALS. THAT WAS PUT INTO SERVICE IN FISCAL YEAR '23/'24, SO NOW WE'RE ADDING A RENTAL FEE FOR THAT TRAILER. THEN WE ADDED FEES FOR VENDORS TO PURCHASE SPACE TO ATTEND CITY EVENTS. IN BUILDING AND PERMITS AND DEVELOPMENT SERVICES, WE REVISED COMMERCIAL CONSTRUCTION, ADDITIONAL PLAN REVIEW, AND INSPECTIONS OUTSIDE OF BUSINESS HOURS TO ADJUST FOR INCREASED COSTS. WE ALSO REVISED AND REMOVED SOME PERMIT FEES TO ADJUST FOR DECREASED CITY COSTS. WE ADDED CLARIFICATION AND UPDATED COSTS FOR MISCELLANEOUS PERMITS, INCLUDING ADDING A NEW PERMIT FEE FOR SOLAR PANELS. WE ALSO ADDED WATER SYSTEM BORE CHARGES AND WATER METER CHARGES, THOSE INCREASE TO MATCH OUR INCREASED COSTS. UNDER REFUSE SERVICE FEES, RATES ARE SET BY THE REFUSE SERVICE VENDOR THE CITY IS CURRENTLY CONTRACTED WITH, WHICH IS CWD. RATES HAVE BEEN UPDATED TO REFLECT THE RECENTLY PUBLISHED 2024 COST ADJUSTMENT PER THE COST ADJUSTMENT MODEL IN THE CONTRACT. WE ALSO INCLUDED FRANCHISE FEES IN TRASH, RECYCLE, AND BULK COLLECTION, ADDITIONAL SOLID WASTE, POLY CART, AND ADDITIONAL RECYCLE POLY CART. IN THE WATER RATE SCHEDULE SECTION, THE CITY POLICY STATES THAT THE APPROVED UTILITY RATE STUDY OF WATER AND WASTEWATER RATES SHOULD BE PREPARED BY A THIRD-PARTY VENDOR AND SHALL SERVE AS THE BASIS FOR THE RATE CHANGE CONSIDERATIONS THAT WAS SPOKEN TO AT THE JULY BUDGET WORKSHOP. WATER RATES ARE GOING UP 7%, THIS IS NO CHANGE FROM WHAT WAS PRESENTED PREVIOUSLY. THEN ALSO OUR CONSULTANT NUGEN IS HERE THIS EVENING TO PRESENT LATER ON. THEN THE NEW RESIDENT BASE RATE. IT WAS PREVIOUSLY $17.34, THAT'S BEEN INCREASED TO $18.55, AND TIERED RATES WILL START AT $5.51, PREVIOUSLY $5.15. WATER SERVICE CONNECTION FEES. WE HAVE METER-RELATED CHARGES, THEY'RE INCREASING PER RISING METER COSTS, AND ANTENNA REPLACEMENT COSTS WERE REDUCED. OUR WASTEWATER RATE SCHEDULE WAS ALSO ADJUSTED PER WHAT WAS MENTIONED AT THE BUDGET WORKSHOP IN JULY. SEWER RATES ARE GOING UP 2% TO RECOVER COSTS. THE NEW RESIDENTIAL BASE RATE WILL BE $14.52, AND THE VOLUME CHARGE PER GALLON WILL BE $8.01. THEN TO ENSURE TRANSPARENCY, FRANCHISE FEES CHARGED BY THE CITY WERE ADDED TO THE MASTER FEE SCHEDULE, SO THAT'S JUST RIGHT AT THE BACK. THAT'S THE LAST OF THE MASTER FEE SCHEDULE CHANGES. THE REVISED MASTER FEE SCHEDULE WILL BE PLACED ON THE SEPTEMBER 16TH COUNCIL CONSENT AGENDA AS A SEPARATE ITEM FOR YOUR CONSIDERATION. >> MAYOR AND COUNCIL, JUST TO WRAP THIS UP IN A REMINDER TO THE PUBLIC ABOUT WHAT OUR NEXT STEPS ARE FOR THE BUDGET PROCESS, AS I SAID, WE TALKED TO YOU IN JULY, WE'RE TALKING TO YOU IN AUGUST, AND WE'RE GOING TO KEEP TALKING ABOUT THE BUDGET IN SEPTEMBER. AT YOUR NEXT CITY COUNCIL MEETING, WHICH IS THE DAY AFTER LABOR DAY HOLIDAY ON TUESDAY, SEPTEMBER 3, WE WILL HAVE THE PUBLIC HEARING FOR THE BUDGET, ANOTHER BUDGET DISCUSSION, AND THEN SET THE DATE FOR THE ADOPTION OF THE BUDGET. THEN AT YOUR CITY COUNCIL MEETING BACK TO THE REGULAR DATE OF MONDAY, SEPTEMBER 16TH, AS DAVID REFERENCED, WE'LL HAVE THE MASTER FEE SCHEDULE ORDINANCE, A TAX RATE PUBLIC HEARING, IF IT IS NECESSARY. IF YOU ALL DECIDE TO KEEP THE TAX RATE AT THE RATE THAT I HAVE RECOMMENDED, YOU WOULD NOT NEED TO HAVE A TAX RATE PUBLIC HEARING, BECAUSE YOU WOULD BE BELOW THE NO NEW REVENUE RATE. YOU WOULD ADOPT THE BUDGET THAT NIGHT, YOU'D RATIFY THE TAX RATE IN THE BUDGET, AND THEN APPROVE THE PROPOSED TAX RATE. WITH THAT, BETWEEN ME, DAVID, LAUREN, AND A FLEET OF DEPARTMENT HEADS AND STAFF, WE'RE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. [00:45:01] >> ALL THE DEPARTMENT HEADS, THEY WERE ALL HERE IN SPIRIT. WHEN YOU ALL WERE TALKING, THEY WERE [INAUDIBLE]. THANK YOU, MS. NASH, THANK YOU, MS. ROSE, THANK YOU, MR. BALDWIN. QUESTIONS FROM COUNCIL TO STAFF. MAYOR PRO TEM FRANKS. >> SLIDE 25, WASTEWATER RATE SCHEDULE. CAN YOU CLARIFY OR EXPLAIN THE NEW RESIDENTIAL BASE RATE WILL BE 14.52, AND THE VOLUME CHARGED PER GALLON WILL BE 81. I'M HOPING THERE'S A TYPO IN THERE. I'M NEVER FLUSHING MY TOILET EVER AGAIN. >> I'LL MAKE SURE TO MAKE A NOTE OF THAT IF I GO SEE YOU. >> I HAVE THE VOLUME CHARGE PER 1,000 GALLONS AS PREVIOUSLY $7.85, NOW AT $8.01 AND THE WATER METER FEE. THAT BASE FEE AS PREVIOUSLY $14.24, AND NOW AT $14.52. >> SO IT'S 8.01 PER 1,000 GALLONS. >> YEAH. IF YOU LOOK AT THE SLIDE, DAVID, IT'S PER 1,000. >> SAYS PER GALLON. >> PER 1,000 GALLONS. >> GOT YOU. >> THE SLIDE [INAUDIBLE]. >> GOT YOU. >> IS THAT ALL YOU GOT? >> BUT YOU ARE FLUSHING NOW. BECAUSE IT'S PER 1,000 GALLONS. >> MR. PRESTENBERG. >> PLEASE FLUSH. >> AS YOU KNOW, I LIKE TO READ SOCIAL MEDIA. I FEEL LIKE IT'S A WAY TO GET OUR PULSE ON OUR CITIZENS AND OUR FELLOW NEIGHBORS. ONE OF THE QUESTIONS THAT I'VE SEEN A COUPLE OF TIMES WAS ON THE ADVENT VEHICLE. I SEE ON HERE IT SAYS THE TOTAL OF $46,000 WITH HALF OF THAT GOING BETWEEN THE GENERAL FUND AND EDC. THE EDC PORTION IS BEING PAID FOR BY THAT QUARTER PERCENT THAT'S ALREADY BEEN FUNDED, WHATNOT. BUT THE QUESTION WAS, SHOULD WE OR HAVE WE LOOKED AT AN ALTERNATIVE WHERE USERS WRITE THEIR MILEAGE AND USE THEIR OWN PERSONAL VEHICLES. IS THAT A COST EFFECTIVE WAY OR NOT? >> THAT'S A GREAT QUESTION, AND I'M HAPPY TO CLARIFY. THAT'S THE MODEL THAT WE'VE BEEN USING FOR A NUMBER OF YEARS. AS WE'VE GROWN OUR STAFF OVER TIME, IT'S JUST NOT REALLY WORKABLE FOR US. RIGHT NOW, WHAT EMPLOYEES DO IN ADMINISTRATIVE POSITIONS THAT DON'T HAVE ACCESS TO VEHICLES, THEY TAKE THEIR PERSONAL VEHICLE, AND THEN THEY SUBMIT MILEAGE. IN SOME CASES, WE'RE ATTENDING MEETINGS ON BEHALF OF OFFICIAL CITY BUSINESS SO IT DOES MAKE SENSE FIRST TO SHOW UP IN AN OFFICIAL CITY VEHICLE. AND THEN IN OTHER CASES, WE'VE GOT COMPETING GROUPS WITH, WE'VE GOT FINANCE, HR, IT, COMMUNICATIONS, PORTIONS OF THE CITY MANAGER'S OFFICE WHO ARE ALL TAKING INDIVIDUAL VEHICLES AT A CERTAIN POINT. IT MAKES MORE SENSE FOR US TO HAVE A SHARED ADMINISTRATIVE POOL CAR. WE HAVE A UNIQUE OPPORTUNITY HERE NOW THAT THE EDC IS HOUSED WITHIN THE CITY MANAGER'S OFFICE TO SPLIT THAT VEHICLE AND SPLIT OUT SOME OF THOSE EXPENSES. SO 50% OF IT IS HANDLED BY THE EDC, WHICH HAS A NUMBER OF SITE VISITS THAT THEY ROUTINELY DO OUT IN THE PUBLIC, AND IT IS IMPORTANT TO HAVE THAT CITY BRANDING WHEN THEY DO ATTEND THOSE MEETINGS, AND THEN FOR THE OTHER 50% TO SPLIT IT AMONGST THE ADMINISTRATIVE STAFF. >> SO WE DON'T HAVE LIKE A DOMINOES THING THAT SAYS CITY OF SACHSE THAT WE PUT ON EVERY CAR. >> SADLY, NO. >> I THINK IT MAKES SENSE. IT'S JUST WHEN SACHSE CITIZENS ARE LOOKING AT WAYS TO SAVE MONEY. I THOUGHT IT WAS A GREAT QUESTION, BUT I'VE MANAGED FLEETS BEFORE, AND WHEN YOU USE YOUR PERSONAL VEHICLE, IT JUST GETTING WEAR AND TEAR, AND THE RATE KEEPS GOING UP. >> YEAH, WE'RE KEEPING UP WITH THE IRS RATES AND ALL OF THAT. AND THEN THERE'S ALSO THE SUBMISSION PROCESS OF JUST HAVING TO TURN IN THAT MILEAGE AND DO ALL OF THAT. WE FEEL LIKE AT THIS POINT, WE'VE GROWN UP TO THIS POINT WHERE WE NEED TO MAYBE CONSOLIDATE THAT AND SHARE THE RESOURCES. >> THIS IS NOT BUDGET-RELATED, BUT JUST ON THE ADMINISTRATIVE SIDE OF THE VEHICLE. WILL IT BE SECURED OR WILL IT BE GOING HOME EVERY NIGHT WITH JARED OR WILL BE PARKED IN THE GARAGE? >> IT WILL BE PARKED UP AT CITY HALL WITH A LOT OF OUR OTHER VEHICLES IN THE FLEET. SO HOPEFULLY NO ONE FEELS BOLD ENOUGH TO STEAL A CAR. >> I'LL GET RIGHT IN FRONT OF THE POLICE STATION. >> A CATALYTIC CONVERTER HAS BEEN STOLEN HERE BEFORE. >> THAT'S MY CONCERN, ESPECIALLY BRING THE CAR. THANK YOU VERY MUCH. >> YEAH, OF COURSE. >> OTHER QUESTIONS FROM COUNCIL FOR STAFF? WHILE WE PONDER THAT THIS IS A CONSIDER ITEM, SO WE WILL OPEN IT UP TO THE PUBLIC. [00:50:01] IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO ADDRESS THIS ITEM? SEEING NONE. BACK TO COUNCIL, OR WE CAN DO MOTIONS. WHATEVER DESIRE THE COUNCIL IS. MR. LINDSEY. >> I'LL MAKE A MOTION THAT WE APPROVE E1 AS PRESENTED. >> MY APOLOGIES, MR. LINDSEY, I DID FAIL TO MENTION THIS ITEM DOES REQUIRE A RECORD VOTE. IF I MAY BE SO KIND TO ASK THAT WHEN YOU MAKE YOUR MOTION, IF YOU'LL READ THE ACTUAL ITEM, YOU JUST HAVE TO DO THAT LITERALLY AND THEN THEN WE'LL GO FROM THERE. >> WE'VE CONDUCTED THE PUBLIC HEARING. MR. MAYOR, I MAKE A MOTION THAT WE ACCEPT RECEIPT OF THE CITY MANAGER'S PROPOSED BUDGET FOR PROGRAMS AND SERVICES FOR THE 2024-2025 FISCAL YEAR. >> THANK YOU, MR. LINDSEY, THAT PESKY STATE LAW STUFF. I HAVE A MOTION BY MR. LINDSEY. DO I HAVE A SECOND? MR. PRESTENBERG. >> DO I NEED TO SAY I SECOND? >> NO. >> SECOND. >> I HAVE OTHER ITEMS. WOULD YOU HAVE A COMMENT, MS. BUHLER? NO. MAYOR PRO TEM FRANKS? WE HAD TO STATE IT A VERY SUCCINCT WAY WE HAVE TO VOTE IN A VERY SUCCINCT WAY. I'VE ASKED MS. GRANGER TO DO A RECORD VOTE, AND SHE WILL CALL YOUR NAME AND SPEAK YOUR PIECE. MS. GRANGER. >> MAYOR BICKERSTAFF, YOUR VOTE, PLEASE? >> AYE. >> MAYOR PRO TEM FRANKS? >> YES. >> COUNCILMEMBER MILLSAP? >> YES. >> COUNCILMEMBER LINDSEY? >> YES. >> COUNCILMEMBER BUHLER? >> YES. >> COUNCILMEMBER PRESTENBERG? >> YES. >> PER MS. GRANGER, I DECLARE THE ITEM APPROVED. THANK YOU, MS. GRANGER. NEXT ITEM ON THE AGENDA, IS ITEM 3, [3. Consider placing a proposal to adopt a tax rate of $0.650416 per $100 of assessed property values for the 2024-2025 fiscal year as an action item on the September 16, 2024, City Council meeting agenda.] CONSIDER PLACING A PROPOSAL TO ADOPT A TAX RATE OF 0.650416 PER $100 OF ASSESSED PROPERTY VALUES FOR THE 2024, 2025 FISCAL YEAR AS AN ACTION ITEM ON THE SEPTEMBER 16TH, 2024, CITY COUNCIL MEETING AGENDA. I SEE MR. BALDWIN IS JOINING US, SO WE WILL TURN IT OVER TO YOU. >> GOOD. THANK YOU, MAYOR. THANK YOU COUNCIL. COUNCIL ACTION TONIGHT SETS A MAXIMUM RATE TO CONSIDER. THIS AGENDA ALLOWS STAFF TO COORDINATE ANY NECESSARY HEARINGS AND NOTIFICATIONS BASED ON THE MAXIMUM RATE THAT'S SET. COUNCIL IS NOT OBLIGATED TO ADOPT THE MAXIMUM RATE SET. YOU RETAIN THE ABILITY ON SEPTEMBER 16TH TO SET A LOWER RATE THAN THE RATE PROPOSED TONIGHT. WITH THAT STAFF REQUESTS YOUR ACTION ON THIS ITEM TO RECORD A VOTE ON THE MAXIMUM RATE TO CONSIDER. >> JUST FOR CLARIFICATION, IF I UNDERSTAND YOU CORRECTLY, DEPENDING ON WHAT WE DO TONIGHT, CAN GO DOWN, BUT IT CAN'T GO UP. >> CORRECT. AND THE MAXIMUM RATE TO CONSIDER THAT'S PROPOSED HERE IS THE ONE THAT WAS PROPOSED, THAT WAS MENTIONED AT THE BUDGET WORKSHOP THAT'S IN THE PROPOSED BUDGET BOOK, WHICH IS BELOW THE NO NEW REVENUE RATE AND IS THE SAME PROPERTY TAX RATE AS LAST YEAR. >> WHICH AGAIN, I WOULD SAY IS 0.650416 PER $100. >> CORRECT. >> IF WE DO ADOPT THAT TONIGHT, WE CAN GO BELOW THAT. CAN'T GO ABOVE IT FOR THIS POINT. JUST TO MAKE SURE COUNCIL UNDERSTANDS THAT. AGAIN, IT'S A RECORD VOTE AS WELL. WE CAN CERTAINLY DISCUSS IT BEFORE WE VOTE. BUT IF YOU ARE SO INCLINED TO MAKE A MOTION, WE WOULD NEED YOU TO READ IT VERBATIM OUT OF THE AGENDA. WITH THAT DISCUSSION, MOTIONS, QUESTIONS? MAYOR PRO TEM FRANKS. >> MR. MAYOR, I MAKE A RECOMMENDATION THAT WE APPROVE PLACING A PROPOSAL TO ADOPT THE TAX RATE OF 0.650416 CENTS PER $100 ASSESSED PROPERTY VALUES FOR THE '24-'25 FISCAL YEAR AS AN ACTION ITEM ON THE SEPTEMBER 16, 24 CITY COUNCIL MEETING AGENDA. >> THANK YOU, MR. FRANKS. I HAVE A MOTION. DO I HAVE A SECOND? MR. PRESTENBERG. >> SECOND. >> I HAVE A SECOND BY MR. PRESTENBERG. ANY FURTHER DISCUSSION? HERE YOU NONE. MS. GRANGER. >> MAYOR BICKERSTAFF, YOUR VOTE, PLEASE? >> AYE. >> MAYOR PRO TEM FRANKS? >> YES. >> COUNCILMEMBER MILLSAP? >> YES. >> COUNCILMEMBER LINDSEY? >> YES. >> COUNCILMEMBER BUHLER? >> YES. >> COUNCILMEMBER PRESTENBERG? >> YES. >> THE MOTION PASSES. >> THANK YOU MS. GRANGER. PER MS. GRANGER, THE MOTION HAS PASSED. NEXT ITEM ON THE AGENDA IS ITEM 4. [4. Consider scheduling a public hearing on the FY 2024-2025 proposed tax rate at the September 16, 2024, Council meeting.] CONSIDER SCHEDULING A PUBLIC HEARING ON THE FISCAL YEAR 2024, 2025 PROPOSED TAX RATE AT THE SEPTEMBER 16TH, 2024 COUNCIL MEETING. [00:55:03] I SENSE THAT MR. BALDWIN THAT YOU'RE GOING TO TALK TO US ABOUT TAXES AND BUDGET AND ALL THAT GOOD STUFF. >> YES, MAYOR. BUT JUST VERY QUICK ON THIS ONE. THIS AGENDA ITEM IS NOT NECESSARY DUE TO COUNCIL SETTING A MAXIMUM RATE TO CONSIDER THAT IS LESS THAN THE NO NEW REVENUE RATE AND THE VOTER APPROVAL RATE. SO THIS ITEM IS NOT NEEDED AND I'LL WALK AWAY. >> THANK YOU, MR. BALDWIN. QUESTIONS FOR STAFF ON THIS ITEM? I JUST WANT TO MAKE SURE COUNCIL UNDERSTANDS BECAUSE BY LAW WE HAD TO PLACE IT ON THE AGENDA. HOWEVER, BASED ON OUR ACTION AT THE PREVIOUS ITEM, WE DO NOT HAVE TO GO FORWARD WITH THIS, SO I WANT TO MAKE SURE EVERYBODY UNDERSTANDS THAT. SOUNDS LIKE YOU DO. THANK YOU VERY MUCH. THANK YOU, MR. BALDWIN. MY APOLOGIES. I SAW YOU. MAYOR PRO TEM FRANKS. >> ON ITEM E4. IF WE DO NOT HAVE A PUBLIC HEARING, I ASSUME WE'RE STILL GOING TO HAVE ACCEPT PUBLIC COMMENT ON THE BUDGET ITEM AT THE NEXT MEETING. >> THAT IS CORRECT. >> THANK YOU VERY MUCH. >> GOOD QUESTION. OTHER COMMENTS OR QUESTIONS ITEM 4. HEARING NONE. WE'LL MOVE ON. NEXT ITEM ON THE AGENDA IS ITEM F1, [1. Discuss and provide feedback on 2024-2025 Capital Improvement Plan.] DISCUSS AND PROVIDE FEEDBACK ON THE 2024, 2025 CAPITAL IMPROVEMENT PLAN, MS. NASH. >> MAYOR AND COUNCIL, THIS IS THE SECOND PART OF THE BUDGET DISCUSSION. WE'VE GONE THROUGH THE MAINTENANCE AND OPERATIONS DISCUSSION TONIGHT IN DETAIL, AS WE HAVE OVER THE LAST SEVERAL WEEKS. BUT TONIGHT, WE'LL GET INTO MORE DETAIL ABOUT THE CAPITAL IMPROVEMENT PLAN. COREY NESBIT, OUR DIRECTOR OF PUBLIC WORKS, WE'LL WALK THROUGH THAT WITH YOU. >> MR. NESBIT, YOU'VE BEEN WAITING PATIENTLY BACK THERE. >> I HAVE. >> THANK YOU, MAYOR, COUNCIL. AS MS. NASH MENTIONED, WE'RE GOING TO GO THROUGH A LITTLE BIT OF STUFF THAT WE'VE GOT UNDER CONSTRUCTION, HAVE COMPLETED SOME PROPOSED STUFF THAT'S UNDER DESIGN AND THEN KIND OF RECAP WITH A PROPOSED BUDGET FOR 2024-'25, AND THEN ALSO THE '24-'30 YEAR PLAN. WE'VE BEEN PRETTY BUSY THIS LAST YEAR. WE HAVE COMPLETED THE THIRD GARLAND SANITARY SEWER CONNECTION DOWN SOUTH OF THE FFA BARN IN GARLAND. THAT PROJECT IS REPAIR SOME EROSION CONTROL. WE'RE WRAPPING UP THE SACHSE SOUTH PIPE BURSTING PROJECT. THAT ACTUALLY PROJECT IS INCLUDING INGRAM STREET, HILLTOP AND MEADOW, AND THEN THE MURPHY ROAD SANITARY SEWER PROJECT THAT YOU GUYS APPROVED LAST MEETING. MAXWELL CREEK PUMP STATION, WE ARE STILL ON SCHEDULE FOR THAT. WE'RE FULLY OPERATIONAL RIGHT NOW, BUT THAT SHOULD BE COMPLETING HERE HOPEFULLY OCTOBER, BUT IF WE GET MORE HOT WEATHER THAT MAY BE DELAYED A LITTLE BIT. BUT THAT'S ON COMPLETION FOR THIS FALL. AGAIN, WE'RE ALMOST COMPLETED WITH THE EMERGENCY PUMP STATION GENERATOR AT THE PUBLIC WORKS FACILITY. THAT PROJECT WAS DELAYED A LITTLE BIT DUE TO SUPPLY CHAIN ISSUES. WE COULDN'T GET THE GENERATOR COMPONENTS IN TIME. GENERATOR SHOWED UP LIKE THE ELECTRICAL COMPONENTS AND ALL THE COMPUTER STUFF DIDN'T SHOW UP ON TIME SO THAT SHOULD BE WRAPPING UP HERE IN THE NEXT COUPLE OF MONTHS ALSO. FOR RAILWAY PROJECTS, WE COMPLETED THE FIRST ROUND OF THE NEIGHBORHOOD PACKAGES. THAT WAS COMPLETED HERE IN JUNE, THAT WAS TINA STREET, ANGIE PLACE, LISA COURT AND KELLY STREET KIND OF THAT BLOCK AREA. THAT WAS COMPLETED BY MCMAHON CONTRACTING HERE THE SUMMER. ALSO, WE COMPLETED A BUNCH OF ASPHALT OVERLAYS. THAT WAS EAST VIEW, SACHSE STREET, DEWITT STREET, MCDERMOTT STREET, AND THEN THEY ARE FINISHING UP HILLTOP TRAIL AND MEADOW NOW. SO THAT ONE COMPLETED SUMMER 22, BUT THEY JUST FINISHED THAT HERE LAST WEEK. THERE'S STILL SOME PROJECT CLEANUP OF STUFF THEY HAVE TO DO ON HILLTOP, BUT THAT ONE IS COMPLETED ALSO. ALSO COMPLETED THE TRAFFIC OPTICAM INSTALLATION. THAT PROJECT IS ADDING OPTICAM TO ALL THE TRAFFIC SIGNALS AND TO THE FIRE DEPARTMENT VEHICLES IN THE CITY HERE, SO THAT PROJECT IS COMPLETED. WE'RE JUST WRAPPING UP TESTING AND FINAL INVOICING ON THAT ONE. THE FIFTH STREET DISTRICT PROJECT THAT WAS COMPLETED LAST SUMMER. THAT PROJECT WAS ROUGHLY $141,000 UNDER BUDGET, SO SLIGHTLY UNDER THREE MILLION DOLLARS NOT SIX MILLION FOR THE RECORD. AND THEN WE ALSO COMPLETED THE HIGH RIDGE AND SOUTH RIDGE ALLEYS. THAT WAS COMPLETED BY ANOTHER CONTRACTOR. SIXTH STREET ALLEY, IT WAS ALSO COMPLETED WITH MCMAHON CONTRACTING. AND THEN, AS MENTIONED BEFORE, WE DID COMPLETE THE HUDSON SCREENING ON SUMMER ALSO. PROJECTS UNDERWAY FOR ROADWAY. BAILEY HOOPER, WE AWARDED THAT CONTRACT HERE IN AUGUST AND SO WE'RE HAVING A PRE-CON MEETING NEXT WEEK TO START. RESIDENT NOTIFICATIONS WILL BE GOING OUT PROBABLY THIS WEEK. WE KIND OF WAITED TO GET SOME DAYS FROM THE CONTRACTOR SO WE'LL BE MAILING LETTERS TO HOMEOWNERS THIS WEEK ON THE PROJECT ROUTE SO STAY TUNED FOR THAT. ALSO WORK WITH COMMUNICATIONS DEPARTMENT TO DO THE SOCIAL MEDIA, PUBLIC NOTIFICATIONS, AND STUFF LIKE THAT. WE'LL BE DOING A BIG PR PUSH FOR THAT HERE IN THE NEXT COUPLE OF WEEKS TO GET THAT GOING. [01:00:06] PROJECTS UNDER DESIGNED. WE HAVE A MUDDY CREEK SANITARY SEWER PROJECT. THAT PROJECT IS ALMOST COMPLETED. WE'RE ACTUALLY MEETING THIS WEEK TO GO OVER EASEMENT ACQUISITION AND STUFF LIKE THAT. THAT PROJECT IS WRAPPING UP WITH THE FINAL DESIGN. HOPEFULLY GO TO CONSTRUCTION HERE, MAYBE FIRST PART OF NEXT YEAR. WE'VE ALSO TALKED A LITTLE BIT ABOUT THE IMPACT FEE STUDY. YOU GUYS, WILL BE SEEING MORE OF THAT COME HERE THE NEXT COUPLE OF MONTHS FOR PUBLIC HEARING AND ADOPTION OF THAT. IT'S PROPOSED IN OUR BUDGET FOR NEXT YEAR. WE'RE DOING A WATER AND SEWER MASTER PLAN UPDATE. THAT'S ALSO IN OUR CIP PLAN, BUT THAT'LL START HERE OCTOBER 1ST. AND THEN THE PUBLIC WORK PUMP STATION IMPROVEMENTS, WE ARE DOING PUMP STATION. WE ADDED A GENERATOR AND NOW WE'RE DOING PUMP UPGRADES TO THAT FACILITY. THAT'S ON OUR DESIGN RIGHT NOW. HOPEFULLY, START CONSTRUCTION ON THAT IN SPRING OF 2025. >> AGAIN, PROJECTS UNDER DESIGN FOR ROADWAY. SACHSE ROAD PHASE 2 IS UNDER DESIGN RIGHT NOW. HOPEFULLY WE CAN BID AND ADVERTISE THAT NEXT SUMMER, AND THE CONSTRUCTION WILL BEGIN HOPEFULLY IN THE FALL OF 2025. AGAIN, MERRITT ROAD, WE'VE GOT SOME MORE CLARIFICATION FROM THE USDA. THEY HAVE NOT OFFICIALLY APPROVED IT YET, BUT I THINK WE'VE DONE EVERYTHING THAT THEY COULD POSSIBLY ASK FOR. ONCE WE GET THAT GREEN LIGHT FROM THEM, WE'LL SUBMIT THE 90% PLANS TO TAO. AGAIN, WE'LL COME BACK TO YOU GUYS THIS FALL WITH AN UPDATE ON THAT. ONE THING, SORRY, GO BACK ON THIS REAL QUICK. THE FUTURE BOND PROJECTS IN YOUR CIP AND IN THE BUDGET BOOK, WE RECOMMENDED ACCELERATING THOSE PROJECTS. THESE ARE THE DATES OF THE PREVIOUSLY APPROVED BOND. DEPENDING ON WHAT HAPPENS WITH THE BUDGET, THOSE DATES WILL BE REVISED AND YOU'LL SEE THOSE AGAIN HERE ONCE WE'VE TERM. >> FOR CLARIFICATION, THESE JUST REFLECT THE WAY IT IS CURRENTLY. >> THOSE ARE THE CURRENT DATES. >> WE MAY CHANGE IT. >> WE MAY CHANGE, YES. >> WE HAVE NOT YET. PROJECT RECOMMENDATIONS FOR THE NEXT YEAR, CIP '24, '25. WE ARE RECOMMENDING BRINGING TO YOU AGAIN, THE ANNUAL CONCRETE CONTRACT. THAT WAS EXTREMELY SUCCESSFUL. WE GOT $1.6 MILLION WORTH OF STREETS AND ALLEY'S DONE IN ROUGHLY SIX MONTHS. THOSE GUYS KNOCKED IT OUT AND THEY DID A GOOD JOB ON THAT. WE'RE RECOMMENDING DOING THAT AGAIN. AGAIN, THOSE PROJECTS ARE IN THE CIP AS WELL. THERE'S A WHOLE LIST OF THEM. WE'RE GOING TO WORK ON GETTING THE WOODBRIDGE PARKWAY DESIGNED AND EVALUATED. WE HAVE SOME PRELIMINARY NUMBERS ON THAT, BUT DUE TO THE PROJECT AMOUNT, WE'RE GOING TO HAVE TO ACTUALLY ADVERTISE AND DESIGN THAT. WORK WITH A CONSULTANT AND A CONTRACTOR ON THAT. AGAIN, NEXT YEAR, WE'RE GOING TO PROPOSE ROUGHLY $200,000 TO OVERLAY SACHSE ROAD FROM MERRITT TO THE CITY LIMITS. THAT WILL BE THE NEXT PROJECT. OVERLAY FOR THAT. MORE ROADWAY. THIS IS AGAIN, PART OF THE BOND AND PART OF THE CIP PROPOSAL, RECOMMENDING ACCELERATING THE NEIGHBORHOOD BOND PACKAGE, ROUGHLY $4 MILLION. THIS IS THE MAJORITY OF THE STREETS THAT WE'RE PROPOSING FOR THAT. AGAIN, THIS IS NOT AN EXHAUSTIVE LIST IF SOMETHING COMES UP, THAT WE NEED TO MOVE ONE AROUND. WE'LL CERTAINLY DO THAT TO ADDRESS THE PAVEMENT CONDITION, BUT THIS IS WHAT WE'RE PROPOSING FOR NEXT YEAR. FOR UTILITY RECOMMENDATIONS, AGAIN, SO WE'RE DOING THE DESIGN OF THE PUMP STATION IMPROVEMENTS RIGHT NOW. NEXT YEAR, WE'LL ASK FOR $800,000 TO ACTUALLY GO BUY THE PUMPS AND CONSTRUCT THEM. WE'LL HAVE A THIRD STREET CIP PROJECT, WHICH WOULD BE WATER AND SEWER ON THIRD STREET. ALSO TALKING ABOUT REPAINTING THE MAXWELL CREEK GROUND STORAGE TANK, AS YOU COME DOWN MCCREERY ROAD OR DEWITT ROAD. [LAUGHTER] WE'RE GOING TO REPLACE THAT TANK WITH THE NEW LOGO, REMOVE THE OLD LOGO, AND THEY NEED SOME MAINTENANCE AND CLEAN UP ALSO. WE'LL GET THAT DESIGNED AND CONSTRUCTED NEXT YEAR. THEN ALSO, WE'RE GOING TO WORK ON THROUGH NO DIGITECH AGAIN TO DO THE VICKSBURG PONDEROSA BONANZA SEWER IMPROVEMENTS ON THAT PROJECT. FOR DRAINAGE, WE ARE RECOMMENDING A SACHSE ROAD PARKING LOT DETENTION IN CONJUNCTION WITH THE FIFTH STREET DEVELOPER AND THE PHASE 1 PROJECT. WE'RE LOOKING AT DOING A PARKING LOT AND DETENTION FOR THAT AREA. ALSO PROPOSING SOME CORNWALL STREET DRAINAGE IMPROVEMENTS. THEN WITH THE HERITAGE PARK AND SOME OTHER DETENTION PONDS THAT WE'VE RECENTLY COMPLETED, WE'RE PROPOSING A MAINTENANCE AND A PROGRAM FOR THAT. THAT'S PART OF OUR DRAINAGE PROJECTS. FOR FACILITIES, AGAIN, CONTINUE WITH THE HERITAGE PARK EXPANSION PROJECT, 1.7 MILLION FOR THAT. THEN YOU'LL SEE HERE LATER TONIGHT WE'LL DISCUSS THE PARKS PUB WORK SERVICE CENTER PROJECT. AGAIN, THIS IS OUR BIG FIVE YEAR LOOK AHEAD, OLD BEN DAVIS ROAD BETWEEN BEN DAVIS AND BUNKER HILL. THE HOLE WE GET REDOING THAT ONE. ALSO CUT RIGHT IN BIG VALLEY. [01:05:02] THAT WILL BE AN ASPHALT OVERLAY MOST LIKELY. THEN THIS IS AGAIN, A LIST OF POTENTIAL BOND PROJECTS FOR 2028. ANY ONE OF THESE STREETS COULD BE MOVED UP IF WE HAVE PROJECT SAVINGS FOR THE 2021 BOND. AGAIN, THIS IS NOT AN ALL INCLUSIVE LIST, BUT THIS IS WHAT WE'RE PROPOSING FOR THE NEXT ROUND OF BOND PROJECTS AS WELL. ALSO, LIKE I MENTIONED PREVIOUSLY, WE'RE GOING TO DO A MASTER PLAN UPDATE FOR WATER AND SEWER. WE DID SOME WATER TANK MAINTENANCE AND CLEANING, BUT WE'RE TRYING TO DO A LITTLE BIT MORE EXPANSIVE PROGRAM ON THAT. THAT'LL BE COMING UP HERE IN THE NEXT FIVE YEARS. AGAIN, FIFTH STREET WATER TOWER, TALKING ABOUT REDOING THE LOGO AND LIGHTING AND REPAINTING THAT TO MAKE IT A DESTINATION FOR FIFTH STREET. THAT'S A $1.2 MILLION PROJECT. THEN AS PART OF OUR MASTER PLAN UPDATE, WE ANTICIPATE THE CONSTRUCTION OF ANOTHER ELEVATED WATER TOWER, SO WE'RE PLANNING FOR THAT $3 MILLION FOR THAT PROJECT. WE ALSO HAVE A CONTINUING PARTNERSHIP PROGRAM FROM NEIGHBORHOOD PARTNERSHIP PROGRAM. THAT'S ROUGHLY $25,000 A YEAR. AGAIN, WE TALKED ABOUT THE SERVICE CENTER, AND THEN JK SACHSE PARK WILL HAVE FUTURE CONSTRUCTION PHASES, 1.2 MILLION, 1.27 MILLION FOR THAT. THEN WE HAVE A MURPHY SEXY WILEY REGIONAL TRAIL SYSTEM. THAT'S ROUGH $3 MILLION. THIS IS A FIVE YEAR TO, 2030 LOOK AHEAD. WITH THAT, I'LL BE HAPPY TO TAKE ANY QUESTIONS. >> THANK YOU, MR. NESBIT. QUESTIONS FOR STAFF FROM COUNSEL. MR. PRESTENBERG. >> PRESENTATION 10. YOU MENTIONED THE PAINTING OF THE MAXWELL CREEK GROUND STORAGE TANK? >> CORRECT. >> 1.3 MILLION, WHEN I'M LOOKING THROUGH JUST THE PROJECT LIST, I'M NOT SEEING THAT ON HERE. I SEE MAXWELL CREEK PUMP STATION PAINTING FOR 200,000. THEN A STATION FENCE IMPROVEMENT FOR 185. THIS IS ON PAGE 200 OF THE UNLESS. >> I'M LOOKING AT THE BUDGET? >> I JUST YEAH, LOOKING AT PAGE 200. WHAT IT SAYS PROJECT LIST. >> IT'S RIGHT THERE, RIGHT? >> IS THAT ONE? >> ARE YOU ON PAGE 204? >> I WAS ON 200 BUT I GO TO 204. >> PLEASE LOOK AT ON PAGE 204. IT'S THE 100W 2508. IT'S THE NEXT ONE DOWN. >> SO 1.2 MILLION TO PAINT A TANK. >> PART OF IT, WE HAVE TO ACTUALLY DO A DESIGN. PART OF THAT THERE'S CERTAIN SPECIFIC. IT'S NOT LIKE PAINTING A HOUSE. THERE'S CERTAIN PAINT THEY HAVE TO DO THEY HAVE TO REMOVE AND TREAT ANY REST SPOTS. THERE'S ALSO SOME ADA ISSUES WITH THE LATCH AND THE HATCHING TO GET INTO THE TANKS AND STUFF. IT'S AN ALL INCLUSIVE. ONCE WE TAKE BECAUSE WE HAVE TO DRAIN THE TANK. ONCE ALL THAT'S DONE, THEN THEY DO THE IMPROVEMENTS TO THE ACTUAL TANK, AND THEN THE REPAINTING ALSO. >> THAT'S NICE. THEN ANOTHER 1.3 OR TWO FOR THE ONE AND FIFTH STREET AS WELL FOR FUTURE REFERENCE. THANK YOU. >> REAL QUICKLY, JUST TO PIG BACK ON MR. PRESTENBERG QUESTION. THE WAY IT'S LISTED, THE 1.3 MILLION FOR PAINTING, BUT FROM WHAT YOU JUST SAID, THOUGH, IT SOUNDS LIKE IT'S REALLY QUITE A BIT MORE THAN THAT. >> YES. AGAIN, SO WE HAVE TO DO A DESIGN. NOT NECESSARY A DESIGN, BUT WE HAVE TO CREATE PROJECT SPECIFICATIONS SO THAT THE THICKNESS OF THE PAINT. THERE'S ALL KINDS OF DETAILS AND THE TYPE OF MATERIAL THEY CAN USE OR NOT USE. IT'S PRETTY EXPANSIVE SPECIFICATIONS THAT THEY HAVE TO CREATE FOR THIS. THAT'S WHAT THE MAJORITY OF IT IS. >> IS THIS THE ESTIMATE, OR IS THIS THAT WE HAVE IT PRICED OUT, OR WE [OVERLAPPING] >>THIS IS AN ESTIMATE FROM OUR DESIGN FIRM. DESIGN AND CONSTRUCTION. >> ONE OF THESE LAST. USUALLY, IS IT A 10 YEAR, 20 YEAR? >> ROUGHLY 10-20 YEARS. THEY DON'T GET PAINTED VERY OFTEN. >> OUR CLIMATE IS OUR WORST ENEMY, BY THE WAY. [LAUGHTER] >> NO, I UNDERSTAND. >> IS THIS SOMETHING THAT THAT'S A LOT OF MONEY. IT'S LIKE A FIRE TRUCK. [LAUGHTER] >> JUST FOR PAINTING, THOUGH THAT'S WHAT. >> I GET IT. BUT IS THIS SOMETHING THAT WE CAN PUT AWAY FOR FUTURE LIKE, EVERY YEAR BECAUSE IT'S NOT A ONE TIME EXPENSE. [01:10:03] IT'S SOMETHING THAT WE'D SAVE UP OVER A 10 OR 20 YEAR PERIOD, 50,000 A YEAR OR SOMETHING. >> COREY, I CAN TAKE THAT ON. THE WAY THAT WE DO IT, OF COURSE, THE WAY WE BUDGET AND THE UTILITY FUNDS ARE VERY DIFFERENT THAN IN THE GENERAL FUND BECAUSE THIS IS FEE FOR SERVICE VERSUS GENERAL FUND, WHICH IS YOUR PROPERTY TAXES. WHAT WE DO HERE AND ACTUALLY, YOU'RE TEEING THIS UP FOR BECKY SCHAFFER, A CONSULTANT THAT'LL COME UP AND TALK ABOUT OUR WATER AND SEWER RATES IS WE BUILD OUR RATES AROUND THESE LARGE PROJECTS. THEN WHAT SHE HAS DONE WHEN WE GO THROUGH THE PRESENTATION, WE BUILD THESE PROJECTS IN, AND THAT'S HOW OUR RATES ARE BUILT. INHERENTLY, WE ARE SAVING AS WE GO. IT LOOKS LIKE WE'RE, SPENDING ALL OF THIS AT ONE TIME AND WE ARE SPENDING IT AT ONE TIME. BUT IT'S BECAUSE OF HOW THE RATES ARE BUILT, AND THEN WE CAN BUDGET OUR PROJECTS BASED ON THOSE RATES. >> NOT REALLY A COST QUESTION HERE, BUT JUST FROM A DESIGN STANDPOINT. NOT SURE HOW MUCH VIEWING A MAXWELL CREEK TYPE, WATER STORAGE GETS, BUT THE ONE ON FIFTH STREET IS GOING TO GET A LOT OF EYEBALLS. MIGHT BE OUR CHANCE TO, PAINT IN BLUE AND ORANGE OR SOMETHING. I'M JUST KIDDING, BUT, WHATEVER IT MIGHT BE TO GRAB SOME EYEBALLS AND, IF WE HAVE A NEW LOGO OR SOMETHING LIKE THAT, THAT'S THE TIME TO PAINT THAT PAINT. >> I THINK THAT'S CERTAINLY INTENT. AGAIN, WORK WITH EDC AND AT THE FIFTH STREET DISTRICT TO MAKE THAT A WAY FINDING BECAUSE THAT TANK HAS NOT BEEN REPAINTED IN PROBABLY 20 OR 30 YEARS, TOO. AT THAT POINT, WE NEED TO REDO IT. AGAIN, WE'LL MAKE THAT A TEAM PROJECT TO WORK ON THAT ONE. >> THANK YOU. THAT'S ALL I HAD, MR. PRESTENBERG. >> YEP. MARY FELTON FRIENDS. >> HOW WERE GOING TO STAY ON THIS SUBJECT. WHAT'S THE CAPACITY OF THE MAXWELL CREEK TANK? >> 750,000 GALLONS. >> AND FIFTH STREET. >> I'M SORRY. WHAT WAS THE FIRST ONE YOU SAID? >> MAXWELL CREEK? >> OH MAXWELL CREEK. OH, THAT'S FIVE MILLION GALLONS OF WATER. THERE'S TWO TANKS. >> THEN FIFTH STREET 750? >> SORRY, 750,000. >> A NEW TANK WOULD NEED TO BE WHAT? >> I THINK WE SAID 1.25 MILLION GALLONS. >> NOT REALLY A QUESTION FOR YOU, BUT A QUESTION FOR EVERYBODY. DOES IT MAKE SENSE TO BUILD AN OVERSIZED TANK AND NOT SPEND $2.5 MILLION PAINTING OLD TANKS? IS THAT A POSSIBILITY? >> I THINK THE FIFTH STREET DOESN'T SERVE MUCH CAPACITY. BUT IT'S THERE. IT'S A WAY FINDING. THERE'S MONEY TO TAKE IT DOWN. IT STILL FUNCTIONS PERFECTLY FINE. >> BUT IF WE'RE GOING TO HAVE TO BUY A NEW ONE AND EITHER ADD ONE OR REPLACE ONE IS WHAT I'M GETTING AT, DOES IT MAKE SENSE TO REPLACE IT RATHER THAN PAINT IT? I DON'T KNOW IF IT DOES. HAVE WE EVEN TALKED ABOUT THAT? >> I DON'T THINK WE CAN BUILD A BIG ENOUGH ONE ON THAT SITE. >> DOESN'T NEED TO BE ON THAT SITE. >> I DON'T THINK WE COULD PUT IT THERE. >> IT DOESN'T NEED TO BE THERE. A NEW ONE'S GOING TO BE SOMEWHERE ELSE ANYWAY, CORRECT? >> RIGHT. I THINK THAT'S WELL, TWO THINGS. WE'D HAVE TO PLUG THAT INTO THE MODEL TO SEE IF WE CAN ACTUALLY REMOVE IT BECAUSE IT DOES FUNCTION AND SERVE SHARE OUR POPULATION. THEN THAT MAY DETERMINE HOW BIG THE OTHER ONE IS OR IS REQUIRED TO BE? >> OR TWO. I'M JUST THINKING HERE TO SPEND $2.5 MILLION TO PAINT EXISTING ONE OF THEM RELATIVELY SMALL. IF WE'RE GOING TO HAVE TO GO AT LEAST DOUBLE, ALMOST DOUBLE ON THE NEW ONE? DOES IT MAKE SENSE TO GO A LITTLE BIT BIGGER AND REPLACE IT RATHER THAN SPEND THAT MONEY? I DON'T KNOW THE ANSWER. HAVE WE EVEN PLUGGED THAT IN. >> WE'LL HAVE TO RUN ALL THAT IN THE MODEL. THEN THAT TELLS US EXACTLY GOES THROUGH FUTURE POPULATION GROWS AND ALL THAT STUFF. WE'LL HAVE TO DETERMINE THE ACTUAL SIZE OF THE NEW ONE. BUT I WOULD IMAGINE IT'S PROBABLY THE SAME AS THE GEORGE BUSH TOWER. >> I GUESS I WOULD SAY ON HER FIFTH STREET TOWER, ARE ALL THOSE DEED RESTRICTIONS EXPIRED? I'VE BEEN TOLD, YES, BUT NO ONE'S VERIFIED THAT. >> DOES GET TRICKY BECAUSE IT DEPENDS ON HOW LONG THEIR DURATION IS. >> ANYWAY, JUST AN IDEA FOR PLANNING DOWN THE ROAD RATHER THAN JUST IF IT MAKES SENSE. IF IT DOESN'T, IT DOESN'T. >> AGAIN WHEN WE DO THE MODEL OR REDO THE MODEL, WE'LL TAKE ALL THAT INTO CONSIDERATION. EVEN IF WE DON'T USE THAT TANK, THERE'S SOME VALUE IN KEEPING IT. >> HOLD ON. SORRY, I TURNED IT OFF. GO AHEAD. >> I'M DONE. >> MS. BUHLER. >> THANK YOU FOR THE PRESENTATION. FOR THE HERITAGE PARK. SORRY, I LOST ME PLEASE. [01:15:13] THE HERITAGE PARK FUNDS ON PAGE 206 OF THE CIP PLAN. IT LOOKS LIKE THEY WERE ORIGINALLY BUDGETED IN THE 2023, '24. WE DIDN'T SPEND THOSE FUNDS AND THEY'LL ACTUALLY COME OUT OF THE BUDGET NEXT YEAR OR THIS NEXT FISCAL YEAR, IS THAT CORRECT? OR IS THAT REALLOCATING MORE MONEY? >> WHAT WAS THE PAGE NUMBER AGAIN? >> PAGE 206. >> THE CIP PLAN, PROBABLY. >> IF WE'RE GOING TO TALK ABOUT REALLOCATING MONEY, IT MIGHT BE CLEARER TO LOOK AT THE [LAUGHTER] REALLY SMALL PRINT PAGES. >> IN THAT CIP PLAN, THAT SHOWS THE REALLOCATION OF MONEY. THOSE COLUMNS IN GREEN SHOW THE INCEPTION TO DATE SPENDING, AND THEN SHOWING THE REMAINING OR CARRY FORWARD BUDGET. THAT'S THOSE THREE COLUMNS. TO THAT, YOU ADD THE BLUE COLUMN OF NEW REQUESTS, WHICH GIVES YOUR TOTAL BUDGET, WHICH IS THE CARRY FORWARD PLUS THE NEW REQUESTS. >> THANK YOU, DARREN. THAT'S ANSWER FOR MY QUESTION. >> MR. LINDSEY. MOST OF THE SAME QUESTIONS, BUT JUST TALK ABOUT THE WATER TOWER A LITTLE BIT MORE, JUST TRYING TO UNDERSTAND THE TIMEFRAME ON IT. THAT SOUTHEAST WATER TOWER, I THOUGHT WAS GOING TO TAKE US BEYOND THE 10,000 RESIDENTIAL HOOKUPS ON THERE. I THOUGHT THAT WAS GOING TO BE THE LAST ONE. WHERE ARE WE AT AS FAR AS, I GUESS, IT'S TEXAS ENVIRONMENTAL QUALITY AGENCY IS WHAT'S DICTATING THIS MOVE, AND HOW CLOSE ARE WE TO THIS THRESHOLD OF NEEDING ANOTHER WATER TOWER? >> IN THE 2011 CIP MASTER PLAN, IT SHOWED A WATER TOWER. IN THE 2017, WHEN IT WAS REMOVED, THE WOODBRIDGE DEVELOPMENTS THAT ALL HAVE TO COME IN. WE'RE GOING TO EVALUATE. WE THINK IT'S COMING. WE THINK WE'RE GOING TO BE AT THAT THRESHOLD THAT WE'RE GOING TO NEED ANOTHER WATER TOWER. BUT AGAIN, ALL THAT HAS TO GO INTO THE MODEL AND PROGRAMMING, AND THEN WE'LL DETERMINE EXACTLY WHAT THAT HAS TO BE. >> HAVE WE EVEN IDENTIFIED WHAT AREA OF TOWN THAT WOULD BE BEST PUT IN OR IS THAT STILL JUST ALL UP IN THE AIR BASINS? >> AGAIN, WE HAVE NOT IDENTIFIED A FINAL LOCATION, BUT MOST LIKELY IT WOULD BE AT THE END OF INGRAM ROAD AT THE PARK THERE. THAT'S PROBABLY THE LAST AVAILABLE LOT THAT THE CITY OWNS IN THAT AREA THAT WE NEED TO HAVE ON. >> IS THAT PRETTY TYPICAL? I MEAN, A TOWN OF 9.9 SQUARE MILES WE'RE LOOKING AT, LET'S SEE WHAT, I GUESS, FOURTH WATER TOWER. I MEAN, IS THAT PRETTY TYPICAL? >> WE HAVE TWO LARGE ONES AND THEN THE TWO SMALLER ONES, YES. >> THIS WOULD BE A SMALLER ONE. I THINK YOU SAID THREE QUARTERS OF A MILLION? >> I THINK THIS ONE WILL BE VERY SIMILAR TO THE ONE AT THE GEORGE BUSH. >> THAT'S LIKE A 2.5-3 MILLION? >> ONE MILLION GALLONS. >> THEN ON THAT GROUNDWATER STORAGE TANK, WHEN YOU WERE TALKING ABOUT ALL THE PAINT, THERE'S AN INTERIOR LINING OF THAT AS WELL. IT'S THE PAINT INSIDE AS WELL IS ACTUALLY GETTING REPLACED? >> I MEAN, IT'S VERY LABOR INTENSIVE. I MEAN, THEY HAVE TO TAKE EVERYTHING DOWN TO BARE METAL, REPAINT IT, WELD, REPAIR ANYTHING. I MEAN, IT'S A PRETTY EXTENSIVE PROJECT. IT SOUNDS LIKE WE'RE JUST REPAINTING IT, BUT IT'S A LOT OF WORKING GOING ON. >> I WOULD IMAGINE ANYTHING THAT CONTACTS OR WATER HAS GOT TO MEET CERTAIN REQUIREMENTS AND THINGS LIKE THAT. VERY INTERESTING. LOOK FORWARD TO LEARNING MORE. THANK YOU. >> DEFINITELY, I WANT TO MAKE SURE YOU FOLLOW THE RULES ON THOSE. THAT'S FOR SURE. OTHER QUESTIONS FROM COUNSEL ON THIS ITEM? MR. NESBIT OR STAFF, IN GENERAL. SEEING NONE, THANK YOU, MR. NESBIT. NEXT I'M AN AGENDA OF F2, [2. Receive a presentation on the results of the 2024 Water and Sewer Rate Study findings.] RECEIVE A PRESENTATION ON THE RESULTS OF THE 2024 WATER AND SEWER RATE STUDY FINDINGS. MS. SINACH. >> MAYOR AND COUNCIL, AS I JUST ALLUDED TO JUST A FEW MOMENTS AGO, THE RATES THAT WERE ACTUALLY BUILT INTO THE `24/25 BUDGET WERE PART OF OUR CONTRACTED RELATIONSHIP TO DO A STUDY. AS YOU KNOW, BACK IN 2014, THE RATES WERE STUDIED FOR THE FIRST TIME IN A VERY LONG TIME. THEN, I WAS JOYFULLY GIFTED WITH THE OPPORTUNITY TO BE ABLE TO IMPLEMENT THOSE RATES IN 2015 TO PUT OUR WATER AND SEWER FUND BACK IN THE BLACK, IF YOU WILL, AND FOR FOLKS TO BE PAYING FOR THE WATER THEY WERE USING AND GIVE US AN OPPORTUNITY TO BUILD A CIP. AT THAT TIME, THE DECISION WAS MADE TO ENSURE THAT WE CONTINUED ON MAKING SURE THAT WE WERE LOOKING AT OUR RATES WITHIN FIVE YEAR INCREMENTS. TIME HAS FLOWN, AND WE'RE BACK AGAIN, AND FORTUNATELY, BECKY IS HERE, [01:20:03] BECKY SCHAFFER WITH NEW GEN STRATEGIES. WE ARE HER LAST CLIENT BEFORE SHE RETIRES. I'M GLAD WE GOT TO BE [OVERLAPPING] THE LAST ONE TO WORK WITH US ON OUR RATES. SHE KNOWS THEM BETTER THAN ANYONE. BECAUSE SHE'S WORKED ON THEM FOR MANY YEARS. THAT IS WHAT SHE IS HERE TONIGHT TO DO IS TO TALK ABOUT THE STUDY FINDINGS. AS I SAID, THOSE ARE ALREADY BUILT INTO OUR 24/25 BUDGET, BUT SHE'LL GO THROUGH THE DETAILS TONIGHT AND BE ABLE TO ANSWER ANY QUESTIONS FOR YOU. >> HELLO, MS. SCHAFFER. HOW ARE YOU? >> I'M WELL, THANK YOU. >> HOPEFULLY AFTER TONIGHT, WE WILL NOT WANT YOU TO ACCELERATE YOUR RETIREMENT. >> WELL, IT'S TWO WEEKS AWAY, SO I DON'T KNOW. >> THAT'D BE HARD THEN [LAUGHTER]. AS YOU CAN SEE, WE HAVE OUR WATER TIERING QUESTION ON THE SLIDE SHOW. WHAT A COINCIDENCE? >> IT WAS PERFECT TEE UP FOR ALL OF THIS. THANK YOU VERY MUCH FOR YOUR TIME AND ATTENTION TONIGHT, AND AS ALWAYS, IT'S BEEN AN HONOR TO WORK WITH YOU AND YOUR STAFF, AND I HAVE ENJOYED IT VERY MUCH. I IN THE INTEREST OF TIME, WILL GO THROUGH AND PRETTY MUCH STICK TO THE SLIDES THAT YOU HAVE IN YOUR PACKET. INITIALLY, I'LL DO A LITTLE BIT OF A INTRODUCTION FOR THOSE THAT MAY NOT BE AS FAMILIAR WITH THE OBJECTIVES AND PROCESS OF A RATE STUDY. IT'S A BACKWARDS LOOK AS WELL AS A FORWARDS LOOK. WE LOOK BACKWARDS AT WHAT YOUR CONSUMPTION PATTERNS AND GROWTH HAVE BEEN OVER THE YEARS AND PROJECT FORWARD ON THAT SCORE. IT'S A DEEP DIVE THEN INTO A FIVE YEAR PLAN. AS YOU'VE JUST HEARD FROM COREY, THOSE CAPITAL COSTS ARE VERY LARGE. THEY GET LARGER ALL THE TIME, AND CIP CHANGES ALL THE TIME. BUT WHAT WE TRY TO DO IS FORECAST OUT AND MAKE SURE THAT THE RATE PLAN CAN ACCOMMODATE THINGS, BUT WE SMOOTH OUT THE RATE PLAN SO YOU DON'T HAVE A WILD SHIFT FROM YEAR TO YEAR TO ACCOMMODATE A PROJECT. THOSE FUNDS DO GET ACCUMULATED OVER TIME. WE ALSO DEVELOP THESE RATE PLANS ACCORDING TO WHAT YOUR POLICIES ARE IN THE CITY. WE WANT TO MAKE SURE THAT DEFINITELY NOT ONLY RECOVER THE REVENUE REQUIREMENT OF THAT SELF SUPPORTING ENTERPRISE FUND, BUT MAKE SURE THAT, WE'RE LISTENING TO PUBLIC WORKS IN TERMS OF THEIR NEEDS SO YOU CAN CONTINUE TO PROVIDE RELIABLE QUALITY SERVICE THROUGHOUT THE 24/7 TIMELINE THAT, PEOPLE EXPECT TO SEE SERVICE AND MEET YOUR FINANCIAL METRICS, AND AGAIN, AVOID RATE SHOCK BY HAVING A GRADUAL INCREASE EACH YEAR SO THAT WE DON'T HAVE TO DO SOMETHING MASSIVE. WE COULD NOT DO THIS WITHOUT A LOT OF INPUT FROM YOUR VERY CAPABLE STAFF. JUST TO LOOK AT WHERE THIS INFORMATION COMES FROM, WE GET ACCOUNT GROWTH AND CONSUMPTION DATA HISTORICALLY AND PROJECT IT BASED ON WHAT UTILITY BILLING PROVIDES. WE GET FUTURE BUILDING PERMIT PROJECTIONS FROM ECONOMIC DEVELOPMENT. WE LOOK AT ALL OPERATING AND MAINTENANCE AND TRANSFERS AND DEBT SERVICE AND CAPITAL COSTS FROM FINANCE AND SO FORTH. THIS YEAR, WE MADE SURE TO BUILD IN SOME OF THE THINGS WE TALKED ABOUT LAST YEAR, WHICH WAS THE UTILITY VEHICLE AND EQUIPMENT REPLACEMENT FUND FOR THE UTILITY, AND THE FINANCE GROUP DEVELOPED A MODEL TO HELP US PROJECT THOSE COSTS IN MORE SMOOTHLY INTO THE FORECAST BECAUSE A LOT OF THOSE VEHICLES ARE VERY PRICEY AS WELL. THIS LOOK AT THE FINANCIALS ALSO INCLUDES NEW DEBT FOR THE WATER AND SEWER FUNDS TO CONTRIBUTE TO THE COST OF THE NEW SERVICES BUILDING. WE'VE BEEN WORKING WITH STAFF IN THEIR DEVELOPMENT OF A NEW LONG TERM LOOK OF THE CIP THAT WE CAN BRING INTO THE RATE MODEL TO MAKE SURE WE MARRY THOSE UP IN THE FORECAST AND MAKE IT SOMETHING THAT THEY CAN USE GOING FORWARD AS A TOOL. THE WATER AND SEWER AVERAGE CAPITAL FUNDING, WE'VE BUILT IN THREE AND A QUARTER MILLION EACH YEAR TO ADDRESS PROJECT NEEDS ON AN ONGOING BASIS. THOSE SPECIFIC PROJECTS CAN MOVE AROUND FROM TIME TO TIME AND THE COSTS VARY FROM TIME TO TIME, BUT THAT FUNDING OF 3.25 MILLION ANNUALLY IS SET ASIDE IN THE RATE PLAN AS IT'S DEVELOPED. BIG PICTURE, AND IT'S A LOT OF NUMBERS, BUT THERE'S THREE KEY TAKEAWAYS FROM THIS SLIDE. ONE, IF YOU LOOK AT THE FIRST STACK ON OVER 2025, THE PROJECTED TOTAL COST OF SERVICE FOR THE WATER AND SEWER UTILITIES IN 2025 IS $18.8 MILLION. IF YOU LOOK AT THE BAR ON THE FAR RIGHT, IT RISES OVER THE NEXT FIVE YEARS TO 22.6 MILLION. WHAT DRIVES THOSE INCREASES OTHER THAN INFLATION? [01:25:02] THE LOWER BANDS, THE TURQUOISE, THE YELLOW, THE BRONZE, AND THE PURPLE. THEY SHIFT AROUND A LITTLE, BUT THEY REMAIN FAIRLY CONSTANT OVER THOSE FIVE YEARS. BUT WHAT WE SEE AT THE TOP IN THE BLUE BAND ARE REPRESENTATIVE OF THE CHANGES IN THE TOTAL CHARGES FOR NORTH TEXAS MUNICIPAL WATER DISTRICTS TREATED WATER. THAT SCHEDULE OF INCREASES OVER TIME IS A BIG DRIVER OBVIOUSLY ON THE WATER SIDE. GARLAND SEWER TREATMENT CHARGES ARE INCREASING BY AN AVERAGE OF 6% ANNUALLY IN THE FORECAST. NOW, THAT'S A LITTLE BIT DIFFERENT BECAUSE WE HAVE TO COMBINE THEIR PROJECTED RATE INCREASE EACH YEAR OF FOUR TO 5% WITH GROWTH. ON THE WATER SIDE, YOU'VE GOT A MINIMUM ANNUAL DEMAND THAT KEEPS THE PRICE GOES UP, BUT THE TOTAL CHARGES AND VOLUME, YOU PROBABLY ARE NOT GOING TO EXCEED THAT FOR A LONG TIME, BUT IT'S MORE VARIABLE ON THE SEWER SIDE. ON THE NEXT SLIDE, WE LOOK AT THAT A BIT MORE CLOSELY TO UNDERSTAND WHAT'S DRIVING THE COST INCREASES. ON THE TOP OF THE SLIDE, THE NORTH TEXAS WATER RATES GO UP ON AVERAGE MORE THAN THE SEWER CHARGES DO. IT SHIFTS AROUND EVERY TIME THEY ISSUE A NEW FORECAST, BUT THEY DO GO ONLY ONE DIRECTION. WHEN WE BUILD IN THE RATE INCREASES, WE'RE GOING TO TRY AND SMOOTH IT OUT OVER TIME. THE LOWER PORTION OF THE SLIDE SHOWS WHAT THE IMPACT IS ON YOUR TOTAL CHARGES. RIGHT NOW, NORTH TEXAS PAYMENTS PERCENTAGE OF THE WATER COST OF SERVICE IS ABOUT HALF YOUR WATER COST OF SERVICE, 52%. BUT BECAUSE OF THOSE INCREASES OVER TIME BEING SO LARGE, BY THE TIME WE LOOK AT 2029, THEY'RE COMPRISING MORE PERCENTAGE OR YOUR TOTAL COST, 54%. ON THE SEWER SIDE, IT'S A LITTLE MORE DRAMATIC BECAUSE THE COSTS ARE LOWER THERE, SO IT HAS A GREATER IMPACT. RIGHT NOW, THE GARLAND SEWER TREATMENT COSTS ARE 30% OF YOUR COST OF SERVICE. WITH THAT 6% ANNUAL INCREASE THAT WE'RE FORECASTING, THAT INCREASES TO ABOUT 42% OF YOUR COST OF SERVICE. WHEN WE LOOK AT ALL OF THAT, WE'LL LOOK AT YOUR CURRENT RATE STRUCTURE. WE'RE NOT RECOMMENDING A CHANGE TO THE WAY YOUR RATES ARE STRUCTURED. IT'S WORKING WELL. IT'S A BRILLIANT DESIGN. WE'LL JUST LOOK AT, A QUICK REVIEW OF WHAT YOUR CURRENT RATES ARE AND THEN WHAT THE IMPACT IS OF THE RECOMMENDED RATE PLAN. RIGHT NOW, YOU'VE GOT A WATER BASE CHARGE ON THE RESIDENTIAL RATE PAYERS OF $17.34. FOR YOUR NON RESIDENTIAL RATE PAYERS, THEY ARE ASSESSED ACCORDING TO THEIR METER SIZE, AND THAT'S ON THE LOWER PORTION THERE ON THE LEFT. THE WATER VOLUME RATE FOR EVERYONE FROM THE FIRST GALLON TO THE 10000TH GALLON IS $5.15 PER THOUSAND GALLONS. THEN THE NEXT BAND, IF YOU WILL, OF THE NEXT 10,000 GALLONS FROM 10,001 TO 20,000, GOES TO $6.88 AND SO FORTH, AS YOU SEE THERE. WHAT IS TYPICAL IS THAT MOST OF YOUR RESIDENTIAL CONSUMPTION IS IN THAT FIRST 10,000 GEAR GALLON BAND. THEN ABOVE THAT, IT'S MORE DISCRETIONARY USAGE FOR OUTDOOR WATERING AND POOLS AND SO FORTH. ON THE SEWER SIDE, ALL RESIDENTS PAY $14.24 FOR THEIR BASE RATE, THEIR VOLUMETRIC RATE IS ASSESSED BASED ON THE WINTER AVERAGE WATER USAGE SO THAT IT LEAVES OUT THAT OUTDOOR USAGE THAT DOESN'T GET RETURNED TO THE SANITARY SEWER. ON THE COMMERCIAL SIDE, AGAIN, THEY'RE ASSESSED BY METER SIZE, AND THEN THE VOLUME RATE MATCHES WHAT THEIR WATER USAGE IS, BECAUSE IF IT'S A COMMERCIAL ENTITY AND THEY'RE IRRIGATING, THEY PROBABLY HAVE AN OUTDOOR IRRIGATION METER THAT'S SEPARATE. WHEN WE DESIGNED THE RATE PLAN, WE APPLIED THE ANNUAL ADJUSTMENTS EVENLY TO EACH COMPONENT OF THOSE RATES THAT WE JUST LOOKED AT. WE ALSO AS WE SAID, BAKE IN ALL OF THOSE COSTS INTO THE COST OF SERVICE, AND MADE THEM THE SAME. WE WERE ABLE TO MAKE THEM THE SAME OVER THE FIVE YEAR PERIOD. THEIR ANNUAL 7% INCREASES ON THE WATER SIDE AND ANNUAL 2% INCREASES ON THE SEWER SIDE. THIS RESULTS IN ABOUT A 5% ANNUAL IMPACT ON A RATE PAYERS BILL. [01:30:05] YOU ADOPTED IN THE PAST IN 2014 AND IN 2019, A FIVE YEAR RATE PLAN, AND YOU STUCK WITH IT, AND YOU ARE IN GOOD SHAPE. THERE ARE SOME CITIES THAT, ACT A LITTLE MORE ERRATICALLY, AND YOU WIND UP PAYING THE PRICE FOR THAT. I COMMEND YOU ON THAT STEWARDSHIP. THAT'S NOT TO SAY THAT YOU WON'T AT SOME POINT IN TIME, HAVE AN UNEXPECTED EVENT WHERE YOU HAVE TO MAKE A TWEAK TO THE PLAN, BUT AT LEAST YOU'VE GOT A STARTING POINT. WHEN WE LOOK AT THE IMPACT OVER TIME OF THOSE UNIFORM 7% WATER AND 2% SEWER INCREASES, AGAIN, YOU SEE THAT 4.8-5% IMPACT ON THE BILL. THE NEXT QUESTION WOULD PROBABLY BE, WELL, HOW DO WE COMPARE THEN TO OTHER CITIES AROUND US? >> RIGHT NOW, THE BOLDER DARKER COLORS IN THE MIDDLE THERE, THEY ARE SACHSE AT $27.64 FOR 2,000 GALLONS OF WATER SERVICE AND $29.94 FOR 2,000 GALLONS OF SEWER SERVICE. YOU ARE RIGHT IN THE MIDDLE. WITH THAT INCREASE, YOU WILL GO UP TO $60.11 FROM 57.58, BUT BEAR IN MIND, ALL OF THESE CITIES ARE GOING TO BE HAVING TO ADJUST THEIR RATES ACCORDINGLY AS WELL. THE M IN PARENTHESES REPRESENTS A MEMBER CITY FROM NORTH TEXAS, AND THE C REPRESENTS A CUSTOMER CITY FOR NORTH TEXAS. THAT FIVE-CENT DIFFERENTIAL BETWEEN MEMBER CITY AND CUSTOMER CITY RATES COMES INTO PLAY THERE. A MORE TYPICAL LEVEL OF USAGE FOR A RESIDENTIAL HOUSEHOLD WOULD BE 10,000 GALLONS OF WATER AND THEN 5,000 GALLONS OF SEWER SERVICE. AGAIN, YOU'RE RIGHT IN THE MIDDLE. THE PLANNED ADJUSTMENT FOR NEXT YEAR, YOU WOULD GO FROM $122.33 UP TO 128.21 WITH A 5% INCREASE. BUT EVERY OTHER PROVIDER ON THAT LIST THERE WITH A C AND AN M, WILL BE HAVING THOSE SAME INCREASES FROM NORTH TEXAS AS WELL. AT THAT POINT, I WOULD JUST SUGGEST THAT WE'LL HAVE YOU CONSIDER AN ORDINANCE IN YOUR SEPTEMBER 16TH MEETING TO ADOPT THE RATE PLAN AND CONTINUE TO CAST AN EYE ON IT AND TAKE A LOOK YEAR-TO-YEAR TO SEE IF THINGS ARE ON TRACK OR NOT, AND I MIGHT BE BACK TO TALK ABOUT SOME DRAINAGE THINGS DOWN THE ROAD A LITTLE BIT WITH YOU AND COREY MENTIONED SOME DRAINAGE PROJECT WITHOUT NUMBERS. SO WE'LL LOOK INTO THAT. BUT IF YOU HAVE ANY QUESTIONS, I WOULD BE HAPPY TO ENTERTAIN THEM NOW. >> THANK YOU, MS. SCHAFFER. QUESTIONS FOR MS. SCHAFFER. I DO HAVE ONE. HOLD ON. MR. PRESTENBERG. >> YES. >> HOLD HERE. >> HI. >> FIRST OFF, THANKS FOR THE CHART BECAUSE THAT WAS ONE OF MY QUESTIONS AS TO COMPARATIVE CITIES, BUT THEY ANSWERED PERFECTLY. ON THAT CHART THOUGH, WHEN YOU GET INTO COLEYVILLE AND COPPELL NOT RECEIVING WATER FROM THE NORTH TEXAS MUNICIPAL WATER DISTRICT. WHEN YOU DON'T HAVE AN ALTERNATIVE, IS THERE ANY WAY TO COMBAT THE HIGHER PRICES THAT ARE COMING? IN THE LOGISTICS SIDE, SUPPLY CHAIN, WE CAN EITHER SIT ON A BUNCH OF PRODUCT FOR SEVERAL YEARS AND I KNOW WE CAN'T HOLD WATER. BUT IS THERE ANY WAY OR ANYTHING WE CAN DO TO COMBAT FIVE YEARS FROM NOW OR SIX YEARS. >> IN TERMS OF YOUR WATER SUPPLY? >> OR IN TERMS OF THAT CONTINUOUS RATE INCREASE. >> NOT REALLY. HONESTLY, BETWEEN INFLATION AND JUST THE FACT THAT YOU'VE GOT A MASSIVE INFRASTRUCTURE THAT YOU HAVE TO MAINTAIN. AND UNFORTUNATELY, YOU DON'T SEE IT LIKE ROADS, BUT IT'S THERE, AND IT NEEDS TO BE MAINTAINED. AND AS YOU, IMPACT FEES HELP A LOT WITH GROWTH, BUT YOU STILL HAVE A LOT OF INFRASTRUCTURE TO MAINTAIN, SO THERE WILL ALWAYS BE CAPITAL COSTS. WHEN YOU LOOK AT THAT STACK CHART, IT'S NOT YOUR CITY, MUNICIPAL STAFF COSTS OR ANYTHING LIKE THAT THAT DRIVES IT, IT'S THAT WHOLESALE WATER, FOR INSTANCE, AND WITH THE INFLUX OF POPULATION TO NORTH TEXAS, WE DON'T HAVE GROUNDWATER. WE DON'T HAVE NATURALLY OCCURRING LAKES. AND SO THE DISTRICT HAS TO CREATE THESE MASSIVE RESERVOIRS THAT COST BILLIONS OF DOLLARS AND THEN CONVEY THAT WATER TO CITIES TO BE SENT TO RATE PAYERS. THERE'S JUST NO OTHER WAY TO MEET THE NEEDS OF THE WATER DEMAND. >> SO WHEN LOOKING AT THIS CHART THEN, [01:35:02] AND YOU TALKED ABOUT CERTAIN CITIES HAVE ALREADY OR LIKE US, GO INCREMENTALLY INCREASE EVERY YEAR. SOME HOLD OFF, AND THEN MAYBE IN ONE FELL SWOOP DO IT IN EVERY SIX YEARS, SEVEN YEARS. SO IS THERE A WAY TO SEE WHAT CITIES ARE LIKE THAT? BECAUSE I LOOK AT THIS GOING, MAN, WE'RE HIGH, BUT THESE OTHER ONES MIGHT NOT HAVE DONE IT FOR FIVE OR SIX YEARS, AND WE'RE REALLY SITTING PRETTY? >> WELL, THIS IS 2024. YOU'RE IN THE MID RANGE THERE, NOW. AND THESE ARE COMPARING TO EVERYBODY ELSE'S 2024 CHARGES. NOW, COLEYVILLE AND COPPELL, I THINK THEY GET THEIR WATER FROM DALLAS WATER UTILITY. THEY HAVE A DIFFERENT CUSTOMER BASE AND SUCH. YOU'RE SEEING IN THE NEWS ALL THE TIME ABOUT HOW GROWTH IS PUSHING FURTHER AND FURTHER NORTH. WILEY AND MURPHY AND THESE OTHER CITIES, THEY'VE GOT A LOT OF INFRASTRUCTURE TO BUILD, AND AS TIME GOES ON, YOU'RE GOING TO SHIFT AROUND A LITTLE BIT. YOU'VE GOT CERTAIN CIRCUMSTANCES THAT ALTER EVERYBODY'S BILLS, JUST LIKE, YOUR HOUSEHOLD EXPENSES VERSUS MY HOUSEHOLD EXPENSES WOULD BE DIFFERENT BECAUSE OF DIFFERENT NEEDS AND DEMANDS. IT'S THE SAME WITH CITIES. WHILE THIS IS AN INTERESTING LOOK, I WOULD SAY YOU HAVE VERY REASONABLE RATES. AND NOT ONLY COMPARATIVELY, BUT YOU'VE GOT A VERY RATIONAL RATE STRUCTURE. WHAT THIS DOESN'T TELL YOU JUST LOOKING AT A CHART LIKE THIS IS, HOW ARE THE OTHER RATES STRUCTURED? YOU'VE GOT MORE REVENUE COMING FROM YOUR LARGER METERS, WHICH IS GOOD, BUT NOT SO HIGH THAT YOU DISCOURAGE COMMERCIAL. YOU'VE GOT A TIERED RATE STRUCTURE SO THAT YOU ARE TRYING TO PUT A LID ON DEMAND TO SOME EXTENT BY CHARGING MORE, YET YOU'RE NOT OVERCHARGING THE LOWER VOLUME USERS. YOUR RATE STRUCTURE IS WORKING FOR YOU, AND UNFORTUNATELY, INCREASES IN WATER AND SEWER RATES ARE FAIRLY INEVITABLE AT THIS POINT IN TIME WITH NOT JUST IN TEXAS, BUT EVERYWHERE, BUT ESPECIALLY IN NORTH TEXAS. >> I FIND THIS INTERESTING. >> SURE. >> I GOT TWO OR THREE MORE QUESTIONS. THEY'RE REALLY QUICK ONE'S REALLY EASY. ON A YEAR LIKE THIS YEAR WHERE WE'VE HAD A LOT OF RAIN. I KNOW YOU SAID COSTS DON'T GO DOWN, BUT WOULD IT SLOW THE GROWTH WHEN YOU HAVE THE RESERVOIRS TO HOUSE THE AMOUNT OF WATER OUT THERE? >> WELL, HERE'S THE THING. HERE'S THE THING WE HAD A LOT OF RAIN IN THE SPRING, BUT IT'S BEEN A REALLY LONG, HOT, DRY SUMMER. NOW, PEOPLE ARE USING A LOT OF WATER RIGHT NOW. THEY DIDN'T IN THE SPRING, BUT YOU PROBABLY ARE SELLING A LOT OF WATER RIGHT NOW. THINGS CAN HAPPEN, WHICH IS WHY YOU NEED MORE OF A FUND BALANCE IN A UTILITY THAN YOU DO NECESSARILY IN THE GENERAL FUND IN TERMS OF PERCENTAGE AND DAYS OF OPERATING. MANY YEARS AGO, I CAN'T REMEMBER EXACTLY WHEN, BUT WE HAD A LOT OF RAIN. THEN WE HAD A YEAR OR TWO WHERE WE DIDN'T HAVE A LOT OF RAIN, BUT THERE WASN'T A LOT OF WATER, AND THEY HAD TO PUT WATERING RESTRICTIONS INTO PLACE. THEN WE HAD TO DO BIG INCREASES, AND PEOPLE GOT VERY UPSET ABOUT THE INCREASES IN THE RATES BECAUSE THEY ALL OF A SUDDEN STARTED DIRTING ON THEIR SPRINKLERS. IT COULD HAPPEN AGAIN WHERE WE HAVE A DROUGHT, BUT WE HAVE A LIMITED WATER SUPPLY, AND YOU HAVE TO PUT IN WATER RESTRICTIONS, AND YOU CAN'T SELL AS MUCH AS YOU HAVE. BUT IT'S NOT LIKE YOU CAN BUILD TANKS LARGE ENOUGH TO HOLD AN EXCESS IN RESERVE. THE SITUATION THAT SACHSE IS IN RIGHT NOW IS THAT YOU HAVE A MINIMUM ANNUAL DEMAND THAT WAS SET A LONG WHILE AGO WITH NORTH TEXAS. AT THE CURRENT TIME, YOU'RE STILL OBLIGATED TO PAY FOR THAT MUCH WATER. IN THE FORECAST FOR THE NEXT FIVE YEARS, I DON'T SEE YOU EXCEEDING THAT. THERE MIGHT BE A PUSH BY NORTH TEXAS AS THEY KEEP TALKING ABOUT REVISING THE CUSTOMER RATE. THEY HAVEN'T REALLY GOT THAT ALL SORTED OUT YET. THAT WOULD BE ONE OF THOSE WILD CARDS THAT MIGHT CHANGE THE RATE PLAN WHEN IT HAPPENS. BUT I'VE STRAYED A LOT, I KNOW. BUT YOUR ORIGINAL QUESTION WAS, IS THERE ANY WAY TO MITIGATE THE NEED ON THAT? I JUST DON'T KNOW THAT THERE IS ONE. >> YOU HIT ON THE SECOND QUESTION. THAT WAS THERE'S A MINIMUM, IS THERE A MAXIMUM THAT IF WE EXCEEDED, DO WE START GETTING CHARGED MORE, BUT YOU ALREADY SAID, WE BARELY HIT THE MINIMUM. >> RIGHT. YOU SHOULD GET SOME FORM OF VARIABLE COST REBATE BACK EACH YEAR FOR VARIABLE COSTS. BUT JUST LIKE YOU HAVE TO BUILD CAPACITY TO SERVE THE NEEDS OF YOUR CUSTOMERS. NORTH TEXAS IS IN THE SAME BOAT. IT TRICKLES DOWN. >> LAST QUESTION, THE FEES THAT WE CHARGE FOR, [01:40:01] OUR CONSUMER SIDE, BUT THE BUSINESS SIDE. ARE THEY CONSIDERED FAIR? I KNOW YOU SAID YOU DON'T CHARGE THEM TOO MUCH, BUT IS IT SOMETHING THAT WE COULD MAYBE INCREASE IN THE FUTURE OR IS THAT JUST NOT LOOKED UPON? >> THERE IS ALWAYS AN OPTION TO REVISE THINGS AND CHARGE MORE FOR IRRIGATION OR CHARGE MORE FOR COMMERCIAL, TO TAKE SOME OF THE PRESSURE OFF OF RESIDENTIAL RATE PAYERS. I THINK TO SOME EXTENT, YOU'RE ALREADY DOING THAT BY CHARGING MORE FOR THE GREATER METER SIZES. THERE'S 101 WAYS TO STRUCTURE RATES. >> I GUESS THAT WAS MORE FROM A COMPARATIVE CITY. ARE WE IN LINE WITH THAT, OR IS IT? >> YOU'RE IN THE MIDDLE WITH THE COMMERCIAL RATES AS WELL. YOU'VE GOT, CERTAIN CITIES, WELL, IF PLANO WAS ON HERE, PLANO HAS SUCH A LARGE COMMERCIAL BAIT. THEY ALWAYS MADE EVERYBODY LOOK BAD. THAT'S THE THING, TOO, AS ALL OF NORTH TEXAS GETS BUILT OUT MORE, YOU'LL ALL HAVE A LITTLE BIT MORE SIMILAR MAKEUP, BUT RIGHT NOW, SOME HAVE ALMOST NO COMMERCIAL, YOU'RE IN THE MIDDLE OF THE PACK THERE. >> THANK YOU VERY MUCH. >> YOU'RE WELCOME. >> THANK YOU FOR THINKING OF 2011 BACK IN THE DAY WHEN WE HAD A LOT OF RAIN AND NO RAIN. THAT WAS A FUN YEAR. >> OH, YEAH. >> I WILL TELL YOU, MS. SCHAFFER, THANK YOU SO MUCH FOR ALL YOUR HARD WORK ON THIS. I KNOW YOU'RE ABOUT READY TO REAP YOUR REWARDS FROM ALL YOUR YEARS OF HARD WORK. I WANT TO TAKE A MOMENT AND SAY, THANK YOU VERY MUCH YOU'VE DONE TREMENDOUS WORK FOR THE CITY OVER THE YEARS. I WANT TO SAY THANK YOU VERY MUCH FOR THAT. WE LOOK FORWARD TO SEEING YOUR WORK LIVE ON IN SOME OTHER FORM. WE HOPE THAT WHOEVER HAS TAKEN YOUR ROLE HAS LISTENED TO YOU VERY INTENTLY. YES. >> I'VE ALREADY HAD HIM COME IN TO TALK. >> OKAY, GREAT. >> THANK YOU SO MUCH. >> THANK YOU, MS. SCHAFFER. NEXT ITEM ON OUR AGENDA IS ITEM F3, [3. Discuss the proposed design and construction of the Service Center.] DISCUSSED THE PROPOSED DESIGN AND CONSTRUCTION OF THE SERVICE CENTER. MS. NASH. >> COREY, YOU JUST GOING TO FLIP MY SLIDES FOR ME. THANKS. QUICK CHANGE. MAYOR AND COUNSELS, AS YOU RECALL, AT YOUR LAST MEETING, STAFF HAD COME FORWARD WITH THE RECOMMENDATION THAT WE MOVE FORWARD WITH AN ARCHITECT, RON HOBBS, WHO WE HAVE USED FOR, I THINK, EVERY NEW BUILDING THAT WE HAVE BUILT HERE IN THE CITY. THE QUESTION OR ITEM THAT WAS POSED TO THE STAFF WAS, CAN WE STEP BACK AND TAKE A LOOK AT THIS A LITTLE BIT DIFFERENTLY? THAT'S REALLY WHAT I WANTED TO PRESENT ON TONIGHT. MY APOLOGIES. IT'S A LONG PRESENTATION. SO I'M GOING TO TRY TO GO THROUGH THIS AS BEST I CAN. BUT I THINK THIS IS REALLY AN OPPORTUNITY TO REALLY STEP BACK A LITTLE BIT AND EXPLAIN HOW TEXAS LAW IS RELATIVE TO LOCAL GOVERNMENT CODE AND HOW WE ARE ABLE TO CONSTRUCT MUNICIPAL BUILDINGS IN TEXAS, BECAUSE IT CAN TAKE SEVERAL DIRECTIONS. I WANTED TO STEP BACK, ESPECIALLY FOR THE MEMBERS ON COUNCIL THAT HAVE NOT BEEN ON COUNCIL SINCE WE HAVE DONE A LOT OF THE CONSTRUCTION IN THE CITY AND TALK A LITTLE BIT ABOUT OUR OPTIONS. WE'LL TALK ABOUT DESIGN OPTIONS, WHAT OUR PROCUREMENT OPTIONS ARE, AND SOME FUNDING OPTIONS. I'LL GO BRIEFLY OVER THE EXISTING CONDITIONS BECAUSE WE'VE CERTAINLY TALKED ABOUT THAT AD NAUSEUM, THE SERVICE CENTER FEATURES, WE'D BE LOOKING FOR A PROPOSED PROJECT AND WHAT STAFF RECOMMENDS IN NEXT STEPS. TEXAS MUNICIPALITIES, WHEN IT COMES TO CONSTRUCTING A MUNICIPAL BUILDING, OBVIOUSLY, WE HAVE TO MEET STATE AND LOCAL ORDINANCE REQUIREMENTS. WE HAVE TO MEET COMPETITIVE PUBLIC BUILDING REQUIREMENTS, AND WE CAN FUND PROJECTS EITHER THROUGH DEBT OR PAY AS YOU GO. BUT REALLY WHAT I WANT TO TALK YOU THROUGH IN THE NEXT FEW SLIDES IS HOW WE DESIGN PROCURE AND ULTIMATELY FUND THESE PROJECTS. BUILDING DESIGN SPECIFICATIONS, OBVIOUSLY, THEY HAVE TO MEET THE STATE AND LOCAL REQUIREMENTS, AND WE DO HAVE MINIMUM REQUIREMENTS FOR OUR LOCAL CODES THAT MEET THE MINIMUM BUILDING STANDARDS. BUILDING DESIGNS DEFINITELY USE A PRICE PER SQUARE FOOT METHODOLOGY. THAT'S HOW WE CALCULATE OUR COSTS MOVING FORWARD, AND THOSE OF YOU THAT WE'RE HERE THROUGH THE PAINSTAKING PROCESS OF BOTH THE COMMUNITY CENTER AND EVEN THE ANIMAL SHELTER UNDERSTAND WHERE WE HAD TO WORK WITH COSTS PER SQUARE FOOT. A BASIC MUNICIPAL BUILDINGS, ABOUT TWO TO $300 PER SQUARE FOOT, BUT MORE SPECIALIZED FACILITIES LIKE WHAT WE'RE TALKING ABOUT COULD BE AS MUCH AS 300 TO $500 A SQUARE FOOT. AGAIN, THINGS THAT AFFECT THOSE COSTS INFLATION MATERIALS, COSTS AND LABOR AVAILABILITY. BUT WE CAN FOLLOW EITHER A TRADITIONAL ARCHITECTURAL DESIGN PROCESS OR [01:45:05] DO DESIGN BUILD THAT PLACES THE GENERAL CONTRACTOR AS THE MAIN CONTACT FOR OUR DESIGN AND CONSTRUCTION. MOSTLY WHAT WE HAVE DONE HERE AT THE CITY IN THIS CAMPUS WHEN THIS WAS CONSTRUCTED PRIOR TO ME COMING ON TO THE CITY BACK IN 2009/10. THEN WITH THE COMMUNITY CENTER AND WITH THE ANIMAL SHELTER, IS WE HAVE DONE A DESIGN WITH AN ARCHITECT, AN ENGINEER, ETC. WHAT WE DID WITH THAT IS BID AND ADVERTISE FOR CONSTRUCTION SERVICES. WE USED A PROCESS CALLED CONSTRUCTION MANAGER AT RISK, CMAR. THAT'S REALLY WHERE WE TALK ABOUT WHAT WE CALL A DESIGN WITH AN ARCHITECT. WE WOULD BID IT WITH A CONTRACTOR, AND THEN WE WOULD BUILD IT. THEN THERE IS THE DESIGN BUILD, WHICH YOU'D USE THE GENERAL CONTRACTOR TO HANDLE. THE GENERAL CONTRACTOR WOULD SELECT THE ARCHITECT, THE ENGINEERS, THE SUBS, AND EVERYONE, AND THEY WOULD ALL WORK TOGETHER TO NEGOTIATE AND GO THROUGH THE PROJECT DETAILS, AND IT'S ALL COORDINATED THROUGH THE CONTRACTOR. THAT'S A SEPARATE WAY THAT YOU CAN DO THIS. COREY, NEXT SLIDE. >> SURE. >> WE CAN CHOOSE BETWEEN THOSE TWO PROCESSES, EITHER A PROFESSIONAL SERVICES AGREEMENT TO DO THE START OF A DESIGN BID BUILD, OR WE WOULD GO THROUGH COMPETITIVE BIDDING THROUGH AN RFP WITH THE DESIGN BUILD AND DOING REQUESTS FOR QUALIFICATION. THERE'S SEVERAL DIFFERENT WAYS WE CAN DO THIS. IF WE DO A PROFESSIONAL SERVICES AGREEMENT, WHICH AGAIN, IS HOW WE'VE USED RON HOBBS ARCHITECTS AND WORK THROUGH TO DESIGN OUR BUILDINGS, THOSE ARE TYPICALLY THROUGH A PUBLIC SERVICE AGREEMENT. YOU DO DESIGN SERVICES, FEASIBILITY STUDIES, AND OTHER PROFESSIONAL SERVICES, AGAIN, WITH A HIGH LEVEL OF EXPERTISE. THE SCOPE OF WORK HAS TO BE CLEARLY DEFINED WITH THE SPECIFIC SERVICES THAT THAT PROFESSIONAL WOULD PROVIDE. THEN YOU SELECT THAT PROFESSIONAL BASED ON QUALIFICATIONS AND EXPERIENCE, NOT PRICE. THE WAY THAT THE STATE LAW WORKS IN TEXAS, WHEN YOU ARE CHOOSING WHAT THEY CALL A PROFESSIONAL SERVICE, AND ARCHITECTS ARE UNDER THAT UMBRELLA IS THAT YOU NEGOTIATE TERMS AND ALL OF THOSE THINGS UP FRONT THROUGH THEIR QUALIFICATIONS. YOU'RE NOT ALLOWED TO BID THESE SERVICES OUT USING A PRICE. THAT'S THE WAY THAT THE LOCAL GOVERNMENT CODE WORKS THROUGH STATE LAW TO PROCURE THESE SERVICES. YOU CAN SEE HERE ALL OF THE DIFFERENT STEPS, AND THIS IS WHAT WE'VE DONE IN THE PAST WHEN WE HAVE PROCURED THESE TYPES OF SERVICES. BUT REMEMBER, THE MOST IMPORTANT THING ABOUT THIS IS YOU LOOK THROUGH THE DIFFERENT STEPS IS THIS HAS EVERYTHING TO DO WITH WORKING THROUGH A SCOPE AND A PRICE WITH ONE PROFESSIONAL THAT YOU HAVE SELECTED. YOU GO THROUGH IT AND IT'S QUALIFICATION BASED. THEN AFTER YOU GO THROUGH THAT ENTIRE PROCESS THAT WE TALKED THROUGH HERE, YOU MAKE A DETERMINATION IF YOU WANT TO WORK WITH THIS PARTICULAR ARCHITECT OR NOT. AGAIN, YOU'RE NOT COMPARING EACH ARCHITECT, YOU'RE CHOOSING ONE BASED ON QUALIFICATIONS. YOU GO THROUGH THE WHOLE PROCESS TO NEGOTIATE A PRICE AND THEN MAKE A DETERMINATION IF YOU WANT TO MOVE FORWARD OR NOT. THESE PUBLIC PROFESSIONAL SERVICE AGREEMENTS, THEY DEPEND HEAVILY ON THE RELATIONSHIP BETWEEN THE CITY AND THE PROFESSIONAL. IT'S MAKING SURE THAT YOU'RE REALLY FOCUSING ON THE UNDERSTANDING OF THE CITY'S NEEDS AND PROJECT SUCCESS AND NOT NECESSARILY ON COMPARATIVE PRICE. IF YOU WENT THROUGH AND DID MORE OF A RFP, A REQUEST FOR PROPOSALS, THAT'S WHERE WE WOULD GO INTO CHOOSING SOMEONE BASED ON LIKE I SAID, THE DESIGN BUILD PROCESS, WHERE WE WENT THROUGH AND PICKED BASED ON THE CONTRACTOR, THE ARCHITECT, AND ALL OF THE SUBS WORKING TOGETHER TO COME UP WITH A SCOPE, PROJECT DETAILS, A SCHEDULE AND DELIVERABLES. A DIFFERENT WAY OF DOING IT. AGAIN, THESE ARE ALL OF THE STEPS THAT YOU WOULD DO IN A REQUEST FOR PROPOSALS. AGAIN, COMPLEXITY AND TIME. YOU HAVE SOME UNCERTAINTIES IN SOME COST SAVINGS. THERE'S PROS AND CONS, AND YOU CAN HAVE CERTAINLY A RISK OF INCONSISTENCY OF RECEIVING PROPOSALS THAT VARY SIGNIFICANTLY IN THE SCOPE, THE DESIGN APPROACH, AND THE PRICING. IT'S A LITTLE BIT DIFFICULT TO COMPARE THEM BECAUSE WHAT [01:50:01] YOU'RE DOING IN THIS CASE IS YOU'RE LETTING THEM COME UP WITH A PROGRAM AND THEN YOU HAVE TO COMPARE EACH OF THE PROGRAMS IN A DESIGN BUILD PROCESS TO DETERMINE WHICH ONE IS GOING TO FIT FOR YOU. AGAIN, REQUESTS FOR QUALIFICATIONS, THAT FOCUSES ON THE QUALIFICATIONS, AND WE'RE REALLY LOOKING AT, CAN THESE FIRMS DO THE PROJECT? DO THEY HAVE THE RIGHT PEOPLE, THE TECHNICAL CAPABILITIES? THEN WE USE THAT EVALUATION CRITERIA, LOOKING AT THE REPUTATION OF THE FIRM, THEIR EXPERTISE, AND THEIR ABILITY TO MEET OUR TECHNICAL REQUIREMENTS. THIS AGAIN, WALKS THROUGH ALL OF THE DIFFERENT STEPS OF WHAT YOU WOULD DO WITH AN RFQ, WHICH IS DIFFERENT FROM AN RFP. AGAIN, BASED ON QUALIFICATION AS OPPOSED TO PROPOSAL AND TECHNICAL SPECS. BUT AGAIN, ONE OF THE CHALLENGES WITH AN RFQ IS YOU DO LACK INITIAL COST PROPOSALS. YOU DON'T NECESSARILY KNOW WHAT THE ULTIMATE PRICE OF THE PROJECT IS GOING TO BE, BECAUSE YOU ARE PAYING THE ARCHITECT TO DESIGN YOUR PROJECT, AND IT CAN BE VERY IN TIME INTENSIVE BECAUSE YOU'RE EVALUATING THEIR QUALIFICATIONS, ETC, AND YOU DO HAVE A POTENTIAL FOR HIGHER COSTS. BECAUSE YOU'RE NOT FOCUSING ON COSTS DURING THIS. YOU'RE REALLY FOCUSING ON SOMEONE'S REPUTATION AND MAKING SURE THAT YOU'RE CHOOSING THE FIRM AND WHAT THEY CAN DO FOR YOU RATHER THAN SKIPPING TO THE END AND WORKING ON THE TECHNICAL COST PROPOSAL. WE LAID OUT HERE WHAT THE DIFFERENT TIMELINES ARE FOR THE VARIOUS METHODS IN WHICH YOU CAN DO THESE. OBVIOUSLY, THE PROFESSIONAL SERVICES AGREEMENT AND WORKING THROUGH THAT IS MUCH FASTER. AT THE FRONT END, IF WE WERE TO, LIKE I SAID, WHAT WE HAD PROPOSED LAST TIME, WORK WITH RON HOBBS, THAT WOULD BE 1-3 MONTHS. IF WE WENT THROUGH AN RFP PROCESS AND DID MORE OF THE DESIGN BUILD, THAT WOULD TAKE 6-8 MONTHS. IF YOU WOULD LIKE US TO LOOK AT OTHER ARCHITECTS, BESIDES HOBBS AND ASSOCIATES, WE WOULD HAVE TO DO A REQUEST FOR QUALIFICATIONS, THEN WORK THROUGH A PSA. YOU'D BE DOING THE 6-8 MONTHS PLUS THE 1-3 MONTHS IN THAT PARTICULAR SITUATION. WHEN WE TALK ABOUT CONSTRUCTING BUILDINGS IN TEXAS AND MUNICIPAL BUILDINGS THESE ARE OUR FUNDING OPTIONS. YOU'RE ALL FAMILIAR WITH GENERAL OBLIGATION BONDS, WHICH YOU APPROVED FOR BOND 2021 TO MOVE FORWARD, AND THE VOTERS APPROVE THOSE BONDS FOR PUBLIC INFRASTRUCTURE PROJECTS, AND OF COURSE, THOSE WOULD BE PAID OFF THROUGH PROPERTY TAXES. CERTIFICATES OF OBLIGATION. THOSE CAN BE DONE WITHOUT VOTER APPROVAL, BUT THEY'RE PAID BACK EITHER THROUGH PROPERTY TAXES OR OTHER REVENUE SOURCES. TYPICALLY WHAT YOU SEE IS THOSE COS ARE ISSUED AND DONE FOR WATER, SEWER, AND ROADWAY PROJECTS. GENERALLY NOT USED FOR THINGS THAT ARE MORE GO BOND BASED. I TYPICALLY WOULDN'T RECOMMEND USING THOSE FOR THAT AND GOING WITH THE GO, OR PAY AS YOU GO FINANCING. USING THE AVAILABLE FUNDS THAT YOU HAVE, WHICH MAY LIMIT YOUR PROJECT SCOPE, BUT IT DOES REQUIRE THE CITY TO HAVE THE FULL AMOUNT OF PROJECT EXPENSES. IN THAT CASE, IF YOU WANTED TO DO PAY AS YOU GO, SAY THE BUILDING WAS $10 MILLION AND YOU ONLY HAD SIX MILLION, YOU COULD NOT SIGN A CONTRACT WITH A CONTRACTOR TO BUILD THAT BUILDING IF YOU DIDN'T HAVE ALL OF THE FUNDS AT THAT TIME. YOU WOULD HAVE TO BACK THAT EITHER WITH COS OR GOS, AND YOU WOULD NOT BE ABLE TO ENTER INTO A CONTRACT WITHOUT ALL OF THOSE FUNDS. AGAIN, WE'VE TALKED ABOUT THIS LAST TIME, AND WE'VE TALKED ABOUT THIS SEVERAL TIMES, SO I DON'T WANT TO BORE YOU, BUT FOR THE PUBLIC, CERTAINLY THE EXISTING FACILITY HAS JUST FAILED. ANYTHING THAT CAN FAIL HAS FAILED IN THAT BUILDING, CERTAINLY FROM PLUMBING TO MECHANICAL TO JUST STRUCTURALLY, THE BUILDING IS A PROBLEM. WE'VE BEEN IN THAT FACILITY SINCE 1992, BUT WE KNOW THAT IT WAS A PRIVATE MECHANICS GARAGE PRIOR TO THAT. I CAN'T FIND ANYBODY WHO KNOWS THE DATE OF THAT WHEN IT WAS BUILT. BUT THAT FACILITY HAS BEEN AROUND FOR A VERY LONG TIME. IT'S GOT A LIMITED CAPACITY, AND IT'S JUST VERY DIFFICULT FOR US TO WORK IN IT. SAME AS THE CASES WITH THE PARKS BUILDING. THE PARKS BUILDING IS LOCATED ON HIGHWAY 78, USED TO BE A VOLUNTEER FIREFIGHTER. FIRE STATION. AGAIN, THE EXISTING FACILITY HAS PLUMBING, HVAC, ALL THE ISSUES YOU CAN IMAGINE. WE HAVE SECURITY RISKS FOR OUR OUTDOOR STORAGE OF OUR EQUIPMENT, AND THERE'S JUST LIMITED CAPACITY FOR ANY MATERIAL AND EQUIPMENT STORAGE THAT WE HAVE. [01:55:04] WE CERTAINLY, AS YOU KNOW, HAVE HAD THEFT AND SECURITY ISSUES WITH OUR MATERIALS AND EQUIPMENT OVER THE YEARS, BECAUSE WE JUST DON'T HAVE THE RIGHT SECURITY AROUND THAT FACILITY. THIS IS THE PUBLIC WORKS BUILDING AND SERVICE CENTER. YOU CAN SEE WE'VE SHOWN YOU THESE EXISTING CONDITIONS, WATER FLOWS STRAIGHT INTO THE BUILDING EVERY TIME IT RAINS. WE HAVE FOUNDATION ISSUES. THIS IS THE EXISTING PARKS FACILITY ON HIGHWAY 78. JUST THE LACK OF STORAGE, THE LACK OF CAPABILITIES, YOU CAN SEE THE CEILING TILES, THE SAGGING THAT'S GONE ON IN THAT BUILDING, AND THEN JUST THE LOOK OF THE FACILITY OVERALL. AGAIN, POOR WORKING CONDITIONS FOR OUR EMPLOYEES, ONE OF THE BIGGEST THINGS THAT WE HEARD DURING OUR STAY CHAT CONVERSATIONS WITH OUR EMPLOYEES, AND CERTAINLY IN PUBLIC WORKS WAS THEY REALLY WANT A NEW PLACE FOR THEM TO WORK, WHERE THEY CAN USE THE REST ROOM, WHERE THEY CAN EAT IN A BREAK ROOM, WHERE THEY CAN TAKE A SHOWER WHEN THEY HAVE BEEN OUT IN THE ELEMENTS AND BE IN A BUILDING THAT IS CLEAN, SAFE, SECURE, ETC, AND OF COURSE, AS I TALKED ABOUT THE LACK OF SECURITY AND THE LACK OF STORAGE. IF WE WERE TO BUILD A SERVICE CENTER, AS WE'RE CALLING IT, THESE WOULD BE THE FEATURES. AGAIN, GOOD WORKING CONDITIONS, PROTECTION AND STORAGE FOR EQUIPMENT, VEHICLES, OUR MATERIALS, GOOD SECURITY AND MONITORING. WE NEED WORK SPACES AND OFFICES, STORAGE, SHOWERS, AND LOCKER ROOMS, ASSEMBLY, AND TRAINING SPACES, AND BE ABLE TO HOUSE IT EQUIPMENT OUT THERE, SAFELY AND EFFECTIVELY. THEN BEING ABLE TO MOVE FACILITIES MAINTENANCE OUT OF CITY HALL ADMINISTRATIVE OFFICES AND BE ABLE TO MOVE THEM INTO THIS SERVICE CENTER, AND THEN EVEN BEING ABLE TO HAVE A FUELING STATION FOR OUR VEHICLES AND AN EMERGENCY GENERATOR. AS I SAID, HERE ARE THE EXISTING NEEDS, WE HAVE SOME EXPANDED NEEDS. THIS IS JUST A LITTLE BIT OF A DIFFERENT REORGANIZATION OF WHAT I JUST SAID, AND THEN SOME ANTICIPATED NEEDS THAT WE WOULD LIKE TO BE ABLE TO FULFILL. POTENTIAL TIMELINE FOR THIS PROJECT IS IT WOULD TAKE ABOUT 12 MONTHS TO DESIGN, AND STAFF WOULD BE IN CONSULTATION ON THAT DESIGN WITH THE ARCHITECTURAL AND CIVIL PROGRAMMING AND HOW WE WOULD DO THAT. IF WE WOULD DO THIS IN SOME PHASING AND THEN DEVELOPING SOME CONSTRUCTION COST ESTIMATES. THEN IT WOULD TAKE ABOUT THREE MONTHS TO DEVELOP THE PLANS AND THE ACTUAL CONSTRUCTION DOCUMENTS WITH PHASING AND SEQUENCING, IF THAT'S WHAT WE ENDED UP DOING AND GETTING INTO MORE OF A SPECIFIC COST BREAKDOWN WITH A COST ESTIMATE FROM THE ARCHITECT. BIDDING WOULD TAKE 3-6 MONTHS AND THEN A CONSTRUCTION WOULD TAKE ABOUT 12-18 MONTHS. THE STAFF RECOMMENDATION IS REALLY WHAT WE RECOMMENDED BEFORE, WHICH WAS TO ENGAGE RON HOBBS TO BEGIN THE DESIGN IN THE PROJECT SCOPE. OR UPON THE DIRECTION OF THE COUNCIL, I'VE HERE DISCUSSION TONIGHT, WE COULD DEVELOP A REQUEST FOR QUALIFICATIONS FOR ARCHITECTURAL SERVICES TO DESIGN AND ULTIMATELY CONSTRUCT THIS NEW FACILITY. THIS RFQ, OF COURSE, WOULD BE COMPLETED AND REVIEWED AMONGST THE STAFF, MYSELF, AND THE CITY ATTORNEY. BASED ON THOSE QUALIFICATIONS, WE WOULD BRING A RECOMMENDATION FOR THE DESIGN CONTRACT TO AN UPCOMING CITY COUNCIL MEETING FOR REVIEW AND APPROVAL. REALLY, WE WANT TO REVIEW THIS PROPOSED RECOMMENDATION WITH YOU ALL AND EVALUATE WHAT WE WANT TO DO MOVING FORWARD AND THEN BASED ON YOUR DIRECTION, WE WOULD PROCEED WITH YOUR DESIRED PROCUREMENT PROCESS. WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS. >> THANK YOU, MS. NASH. QUESTIONS FROM COUNCIL. MR. PRESTENBERG. >> HEY, GINA, THANKS FOR THAT. JUST IF WE COULD PRESS REWIND BACK TO WHEN RON HOBBS ARCHITECT WAS SELECTED. WAS THERE A BUNCH OF ARCHITECTS THAT WERE LOOKED AT AT THE TIME AND THAT YOU ALL LANDED ON THEM OR? >> THE CITY HAS USED RON HOBBS FOR MANY YEARS. I DON'T KNOW HOW THEY MADE THOSE DETERMINATIONS BEFORE I GOT HERE, BUT HE HAS AN EXCELLENT REPUTATION WITH MUNICIPAL FACILITIES AROUND THE STATE OF TEXAS. AGAIN, WE'VE BEEN VERY COMFORTABLE WITH WORKING WITH HIM AND HIS TEAM, AND WE'VE HAD SUCCESS WITH PROJECTS. PROCUREMENT LAW ALLOWS US TO, [02:00:01] AS I SAID, CHOOSE HIM. WE DON'T HAVE TO CHOOSE BASED ON ANY LENGTHY LIST OF OTHER ARCHITECTS, BUT AGAIN, THAT'S CERTAINLY AN OPTION THAT WE CAN USE. >> I THINK THE LAST MEETING, I DON'T REMEMBER WHO BROUGHT UP, SOMEONE BROUGHT UP ABOUT, ARE WE GOING TO PRICE IT OUT OR NEGOTIATE OR GET RFPS OR FFQS DONE? I THINK THAT'S WHAT TRIGGERED THIS DISCUSSION. I'M JUST CURIOUS BECAUSE HE DID THIS MUNICIPAL OR THE BUILDINGS IN THIS COMPLEX AND THEN THE ANIMAL SHELTER, OF COURSE, JUST CURIOUS TO SEE IF THERE WAS ANY RFP, RFQ OR QUALIFICATIONS, I GUESS TO SEE WHAT ALL THEY DID, AND THAT'S WHY WE SETTLED ON THEM BACK IN THE DAY. >> HE HAS BUILT FACILITIES LIKE THIS BEFORE. >> I'VE SEEN ALL OF THOSE WHEN WE GO TO THOSE DIFFERENT CONFERENCES, BUT YOU HAD SAID ESTIMATED TIME WAS 1-3 MONTHS FOR PSAS OR 6-8 MONTHS FOR THE OTHER ONES. ON THIS LAST TIMELINE, YOU SAID DESIGNS RUN 12 MONTHS. WERE YOU SAYING THAT 1-3 MONTHS WAS JUST TO PICK A PSA PERSON? >> COREY, IF YOU CAN SCROLL BACK A COUPLE OF SLIDES. LET'S GO BACK A LITTLE BIT MORE. >> CHART? >> YEAH, THE CHART. >> I MISS IT. >> KEEP GOING, THERE WAS A TABLE. NO. YOU KEEP GOING BACKWARDS. SORRY. >> YEAH. >> THAT'S THE ONE. IF WE WERE TO SELECT RON HOBBS, WE COULD NEGOTIATE AN AGREEMENT WITH HIM WITHIN 1-3 MONTHS. IF YOU ALL DECIDED THAT YOU WANTED TO GO OUT AND PUT OUT A REQUEST FOR QUALIFICATIONS FOR ALL SORTS OF ARCHITECTS TO POTENTIALLY GIVE US A PROPOSAL, THAT WOULD TAKE ANOTHER PROBABLY 6-8 MONTHS BETWEEN PUTTING IT OUT THERE BRINGING THEM BACK IN, INTERVIEWING THEM, NEGOTIATING AND SELECTING ONE, AND THEN BRINGING ONE TO YOU THAT THAT WE WOULD RECOMMEND BECAUSE WHEN YOU DO AN RFQ, YOU CANNOT SELECT BASED ON PRICE. YOU HAVE TO SELECT BASED ON THE QUALITATIVE EVALUATION, AND THEN YOU CAN NEGOTIATE ALL THE WAY THROUGH TO PRICE, THEN WE WOULD BRING THAT TO THE CITY COUNCIL. AND IF YOU ALL DID NOT LIKE THAT, WE WOULD GO TO THE NEXT MOST QUALIFIED NEGOTIATE PRICE AND GO FROM THERE. SO WITH THIS PROCESS, YOU CAN'T COMPARE PRICING BECAUSE IT'S BASED ON QUALIFICATION, UNLESS YOU WENT THE DESIGN-BUILD ROUTE. >> OKAY. WITH THE SERVICE BUILDING OR WHATNOT, WE HAVE AN IDEA BUDGET IN MIND. I'M ASSUMING, OR WE JUST SAY, HEY, IT'S A BLANK CANVAS. THESE ARE WHAT OUR REQUIREMENTS ARE FOR THE BUILDING, YOU DESIGN, LET US KNOW THE DOLLAR AMOUNT. THIS IS WHAT THE PSA AVENUE. WE SAY THIS IS WHAT WE WANT, YOU DESIGN IT. HE COMES BACK AND FITS WITH THIS HOBBS ARCHITECT. HE SAYS, I CAN DO IT FOR XYZ, AND THEN THAT'S WHEN WE START NEGOTIATING AT THAT POINT. >> RIGHT. COREY, THERE'S A SLIDE IN HERE THAT HAS THE BULLET POINTS OF THE THINGS WE ALREADY HAVE, THE THINGS THAT WE WANT IN THE BUILDING, AND THEN THE ENHANCEMENTS. >> GREAT. >> WHAT WE DO WHEN WE DO THESE BUILDINGS, IT'S JUST LIKE WHAT WE DID WITH THE ANIMAL SHELTER AND WITH THE COMMUNITY CENTER IS WE SAY, WHAT DO WE KNOW? WE DO A WORK PROGRAM, AND WE SAY, WHAT ARE THE BARE MINIMUM NEEDS THAT WE HAVE FOR THIS BUILDING? WHAT ARE SOME THINGS THAT WE REALLY WOULD LIKE TO HAVE TO MAKE SURE THAT THIS IS A BUILDING THAT WE CAN USE FOR THE NEXT 30 YEARS. THEN IF WE REALLY HAVE ENOUGH AT THE END, WHAT ARE SOME THINGS WOULD BE EVEN A BETTER ENHANCEMENT. AND THEN THAT'S HOW WE GO THROUGH THE WORK PROGRAM, AND THAT'S HOW IT WAS DECIDED WITH THE COMMUNITY CENTER OF WHAT WOULD BE THE ELEMENTS THAT WOULD BE INCLUDED OR NOT INCLUDED TO BE ABLE TO START TO FIGURE OUT WHAT COST PER SQUARE FOOT IS AND REALLY WHAT THE BUDGET COULD BE AND SO THAT'S HOW YOU COME UP WITH THAT PROGRAM. >> MY CONCERN IS I DO RFPS AND RFQS ALL THE TIME, OR AT LEAST I USED TO, AND SOMETIMES YOU GET PEOPLE SAYING, WELL, I CAN DO Y WHEN YOU WANTED X FOR Z AMOUNT OF MONEY, AND YOU'RE LIKE, WELL, CRAP. THAT'S NOT WHAT I WANTED. I SEE THE BENEFIT OF THE PSA. I'M JUST CURIOUS IS, NOW THEY COME BACK WITH A PRICE. HOW DO WE KNOW THAT'S A GOOD OR A FAIR PRICE? BECAUSE WE CAN'T SHOP AROUND AND SAY, OH, IT'S A COST PER SQUARE FOOT, IT'S THIS BUT I FEEL LIKE LOCKED IN, BUT I UNDERSTAND THE VALUE OF IT JUST A LITTLE CONCERNED ABOUT THAT. >> YEAH. THEY COME BACK AND THEY TELL YOU THIS IS THE COST PER SQUARE FOOT. [02:05:02] THEY GO OUT AND THEY HAVE COMPANIES THAT HAVE ESTIMATORS THAT ESTIMATE FOR THEM A WINDOW OF WHAT THE CONSTRUCTION COSTS WOULD BE, WHICH IS WHAT WE DID ANIMAL SHELTER. THAT'S THE MOST RECENT PROJECT. THAT'S WHEN WE WENT BACK IN AND SAID, WHAT ARE SOME THINGS THAT MAYBE WE COULD TRIM THE SIZE OF THE ROOMS OR TRIM THIS OR TRIM THAT? WHAT'S THE BASE PROGRAM THAT WE COULD DO AND STILL ACCOMPLISH POTENTIALLY WHAT YOU WERE LOOKING FOR? THEN THEY'LL GO OUT, AND THEY WORK WITH DIFFERENT CONTRACTORS THAT DO WORK FOR THEM, AND THEY SAY, GIVE US YOUR BEST ESTIMATE ON THIS AND THEN THEY COME BACK AND GIVE YOU A NUMBER AND A CONTRACTOR'S ESTIMATE, AND THEN THAT'S WHAT WE BUILD AND BASE IT ON. BUT UNTIL YOU GO OUT AND BID IT [NOISE] YOU'RE NOT GUARANTEED, IT'S REALLY A PRICE RANGE OF WHAT YOU'RE GOING TO GET. >> WELL, LAST THING, BUT WITH ALL THE OTHER BUILDINGS WE'VE DONE, IT SEEMS LIKE THEY DO A GREAT JOB. I'M IMPRESSED WITH THE ANIMAL SHELTER FROM WHAT WE'VE SEEN, EXCITED TO SEE IT IN A COUPLE OF MONTHS OR WHATNOT. BUT IS THE VALUE THERE, AND I'D LOVE TO HEAR FROM THE CHIEF PERSPECTIVE WITH THE ANIMAL SHELTER, WHICH I KNOW HE'S HAD A LOT OF INTERACTIVE INTERACTION OR WHO WAS INVOLVED WITH THE MICHAEL J FELIX CENTER AND IF THE VALUE IS THERE, THEN I DEFINITELY CAN SEE IT. I WASN'T THE ONE TO RAISE IT LAST TIME. I KNOW THE RFP VALUE AND BIDDING IT OUT, AND I THINK IT'S THERE. BUT IF THE PSA MAKES US QUICKER, FASTER, STRONGER, ALL THE THINGS, THEN I THINK CAN MOVE FORWARD WITH THAT. >> OTHER QUESTIONS FOR STAFF FROM COUNCIL? MR. MILLSAP. >> DID RON HOBBS WAS HE THE ARCHITECT FOR THE CITY HALL COMPLEX HERE? >> YES, SIR. >> OKAY. THAT IS THE ONLY BUILDING THAT'S BEEN BUILT SINCE WE STARTED THIS COMPLEX THAT'S ACTUALLY COME IN ON OR UNDER BUDGET. THIS BUILDING CAME UNDER BUDGET DRASTICALLY LOWER THAN BUDGETED. UNFORTUNATELY, WHAT WE DID IS WE USE THAT MONEY TO BUY OTHER STUFF INSTEAD OF NOT USE IT, BUT WE SPEND IT ALL UP. MY PERSONAL FEELING IS WE NEED TO FIGURE OUT HOW WE'RE GOING TO PAY FOR THIS FIRST BEFORE WE MAKE A DECISION. I AM NOT GOING TO SUPPORT ANYTHING SHORT OF A BOND ISSUE. WE USED AN RFQ, RCO GO, WHATEVER YOU WANT TO CALL IT, FOR THE FELIX CENTER. WE NOTICE THAT IF YOU GO BACK AND LOOK AT YOUR HOMEWORK, THAT'S BEEN A SORE SPOT FOR A LOT OF PEOPLE FOR A LOT OF TIME. ORIGINALLY, IT WAS SAID WE WERE GOING TO BUDGET THREE MILLION AND IT CAME IN AT FIVE. WE WOUND UP FINDING OUT THAT WELL, WE FORGOT TO PUT IN UTILITY CHANGES? THEN WE FORGOT TO PUT IN PARKING, AND THEN WE DID ALL SORTS SO WE WOUND UP AND WE FOUND OUT THAT WE WERE TOLD IN ITS OWN RECORD THAT OUR FINANCIAL SAID, WE HAVE AN OFFER OF 3% FOR THE MONEY WHEN WE SOLD THE BONDS OR SOLD GENERAL OBLIGATIONS. IT CAME IN AT 4%, 3% MORE MONEY. THAT BUILDING COST US ABOUT EIGHT THAT WAS BUDGETED FOR THREE. I AM RFP MYSELF. I THINK WE NEED TO TRY IT. IF WE DO AN RFP AND WE DON'T FIND SOMEONE WE WANT, CAN WE NOT GO BACK THEN AND PICK RON OR SOMEONE ELSE TO DO THE PSA? SIX TO EIGHT MONTHS LONGER IS NOT GOING TO MAKE US LOCK UP AND GO HOME. SACHSE HAS BEEN IN BUSINESS SINCE 1845, AND WE'RE NOT GOING TO LOCK UP AND SAY, WE CAN'T MOW THE LAWNS ANYMORE. WE'LL LET THE GRASS GROW. WE CAN'T TRIM TREES ANYMORE. WE LET THAT GO. WE CAN'T FIX SEWER LINES, WE LET THAT GO. WE'RE NOT GOING TO DO THAT. WE'RE NOT IN THAT BIG OF A HURRY. BUT FIRST OF ALL, I THINK WE NEED TO GET PERMISSION FROM THE TAXPAYERS TO DO THIS. BUDGET-WISE, WE'VE ALREADY SCUMITTED THAT IS GOING TO COST US A MINIMUM LOOKS TO ME LIKE $15 MILLION FROM WHAT I'VE SEEN, WE'RE LOOKING AT A 28,000 SQUARE-FOOT BUILDING, AND YOU'RE SAYING BUILDING COSTS ARE GOING TO BE THREE TO $500 PER SQUARE FOOT, $500 PER SQUARE FOOT TIMES 28,000 IS ABOUT 14 MILLION BUCKS. ARCHITECTS FEES NORMALLY 10%. THAT'S ANOTHER 1.4 MILLION, 1.5. YOU'RE LOOKING AT 15.5 MILLION BUCKS UP FRONT. IF $5,500 PER SQUARE FOOT FOR BUILDING IS A BUILDING, WHAT ABOUT THE PARKING AND WHAT ABOUT ALL THE OTHER EXTERIOR THINGS THAT DOESN'T GO IN THE BUILDING? IT LOOKS TO ME LIKE WE'RE AUTOMATICALLY LOOKING AT 16 TO $20 MILLION, [02:10:02] AND I WANT TO MAKE SURE THAT THE TAXPAYERS ARE WILLING TO DO THIS BEFORE WE TRAVEL DOWN THIS ROAD. >> MAYOR PRO TEM FRANKS. >> A COUPLE OF COMMENTS ON YOUR COMMENTS. I WOULD SAY THAT COMPARING THE CITY COMPLEX TO THE COMMUNITY CENTER OR THE ANIMAL SHELFS OR ANYTHING ELSE, BIG PART OF THAT IS THE ECONOMY. WE BUILT THIS DURING THE RECESSION AT THE END OF THE RECESSION, THAT'S A HUGE COMPONENT OF COST. SAME THING WITH THE LATEST PROJECTS WE'VE HAD, INFLATION FOR MATERIALS AND CONSTRUCTION WENT UP 25% A YEAR FOR THE FIRST TWO YEARS, MAYBE MORE, MAYBE THREE YEARS. IT'S SLOWING DOWN, BUT IT HAS NOT SLOWED DOWN. I THINK THAT'S A BIG PART. IF WE DO WAIT SIX OR EIGHT EXTRA MONTHS, IT'S GOING TO COST US AT LEAST 15% IN THE PROJECT VALUE AS WE'VE LEARNED, NOTHING EVER GOES DOWN. THE ECONOMISTS HAVE BEEN PREDICTING A RECESSION FOR ABOUT FIVE YEARS NOW. IT HASN'T HAPPENED. I SAY FIVE YEARS MAYBE THREE YEARS. HASN'T HAPPENED. THERE'S NO SIGNS OF IT. THEY WON'T WORRY TO REDUCE INTEREST RATES. MY 401K HASN'T GROWN AS EXPONENTIAL AS INFLATION, SO I HAVE PROBLEMS WITH THAT WHOLE SCENARIO, BUT THAT'S IT FOR ANOTHER MATTER, SO I'D SAY THAT, AND I'LL JUST GO ON TO MOVE ON TO THE NEXT POINT AND TELL ME IF I'M GETTING OFF-TOPIC HERE. SO IF THIS TAKES THREE YEARS, IF WE DECIDE TO DO THIS, AND IT TAKES THREE YEARS TO BUILD AND OPEN, WHAT IS OUR PLAN FOR OUR FACILITY, OUR EMPLOYEES, OUR EQUIPMENT FOR THE NEXT THREE YEARS? >> WORK WITH WHAT WE STILL HAVE. >> I WAS AFRAID YOU WERE GOING TO SAY THAT. >> YEAH. >> I DON'T THINK THERE'S ANY BANDAGE LEFT TO PUT ON CURRENT BUILDINGS. >> THAT'S WHAT THEY'VE BEEN DOING. >> OH, YEAH. I'VE BEEN IN THAT BUILDING. I DON'T LIKE GOING IN THAT BUILDING. I DON'T HAVE A PROBLEM WITH THE PSA. I DON'T HAVE A PROBLEM WITH RON HOBBS. I WOULD CAUTION THOSE OF YOU WHO WANT TO GO TO AN RFQ OR TO THAT ROUTE BECAUSE JUST LIKE WITH BAILEY ROAD, LAST MEETING, IT IS NOT THE COST OF THE PROJECT, IT IS THE SCORE OF THE QUALIFICATIONS OF THE BID. JUST KEEP THAT IN MIND. IT'S NOT AN ULTIMATE JUST-COST THING. THAT'S MY TWO CENTS. >> OTHER QUESTIONS FOR STAFF? >> I GOT A SOMEWHAT OF A CONSENSUS LITTLE BIT, MR. LINDSEY. >> WELL, SINCE YOU'RE LOOKING FOR DIRECTION FOR STAFF, I WAS JUST GIVING MY OPINION FROM COUNCIL BUHLER. >> YEAH, I'M IN FAVOR OF GOING WITH A PROFESSIONAL SERVICES AGREEMENT. I'VE BEEN VERY EDUCATED THIS EVENING. I APPRECIATE YOU BRINGING THIS PRESENTATION FOR IT ALL DAY LONG. IT'S BEEN VERY EYE OPENING AND HOW THE PROCESS WORKS ON THERE. IT'S A LITTLE DISHEARTENING BECAUSE IT'S THE PRICES JUST KEEP GOING UP. BUT WHAT WE HAVE HERE IT'S NOT A WARRANT, IT'S A NEED. WE'RE GOING TO BE LUCKY TO GET OUR STAFF TO CONTINUE FOR THE NEXT THREE YEARS. IT WAS LIKE OUR PREVIOUS COMMUNITY CENTER. IT WAS PROBABLY A BUILDING THAT IF THIS WAS A PRIVATE ENTITY, WE WOULD HAVE CONDEMNED AND I KNOW OUR PUBLIC BUILDINGS ARE SUPPOSED TO BE UP TO CODE WHEN WE BUILD A NEW BUILDING, BUT I THINK IF WE WERE ISSUING A CERTIFICATE OF OCCUPANCY FOR A PRIVATE COMPANY, WE WOULD NOT GRANT THE CO FOR IT. WE'RE RUNNING OUT OF TIME IN THESE BUILDINGS, AND WE'VE GOT TO MOVE QUICKLY AS WE CAN ON IT AND DO WHAT'S RIGHT FOR EMPLOYEES AND ALSO MAINTAIN THE LEVEL OF SERVICE THAT OUR CITIZENS DESERVE. I DID HAVE ONE QUESTION ON THE FEELING. I THOUGHT THAT WAS REALLY NEAT THERE. I HADN'T CONSIDERED THAT BEFORE SO THAT WOULD ALSO BE FOR OUR POLICE VEHICLES, FIRE VEHICLES, AND THINGS LIKE THAT. WOULD THERE ULTIMATELY BE A SIGNIFICANT COST SAVINGS IN DOING OUR OWN FUEL, I GUESS, BUYING IT IN BULK OR, LIKE, AT A WHOLESALE RATE ON THERE? >> IT'S A BIG OPPORTUNITY WE WANT TO EXPLORE BECAUSE WE THINK THAT THAT'S DEFINITELY A VIABLE OPTION FOR US TO BE ABLE TO FUEL AT A BETTER RATE AND TO HAVE THAT AVAILABILITY ALL THE TIME. THAT'S ONE OF THE THINGS THAT OTHER SERVICE CENTERS HAVE DONE THAT HAVE BEEN BUILT IN THE LAST SEVERAL YEARS. AND SO THAT'S REALLY ONE OF THOSE THINGS THAT WE WANT TO EXPLORE THE FEASIBILITY AND SEE IF THAT'S SOMETHING THAT'S AFFORDABLE AND THAT REALLY DO THE COST-BENEFIT ANALYSIS OVER TIME OF HOW WILL WE BE ABLE TO SAVE MONEY OR EFFICIENCY OR ALL OF THOSE SORTS OF THINGS. THAT'S ONE OF THE THINGS WE WANTED TO EXPLORE IN THE SCOPE AND IT WOULD BE FOR ALL. >> AWESOME. [02:15:01] >> YEAH, I WOULD SAY I NORMALLY LEAN TOWARD THE RFPS. HOWEVER, THERE'S A COUPLE OF DIFFERENT FACTORS THAT MAKE ME WANT TO GO TO THE PSA OR I WANT TO GO TO THE PSA IS THAT AS MAYOR PRO TEM FRANKS MENTIONED, INFLATION IS NOT GOING ANYWHERE, UNFORTUNATELY. THE LONGER WE WAIT TO DO THIS, THE MORE IT'S GOING TO COST. WE'VE TALKED ABOUT OUR EMPLOYEES MANY TIMES, AND I THINK MR. LINDSEY PUT IT IN A WAY I PROBABLY HADN'T THOUGHT OF IT BEFORE IS THAT THEY PROBABLY WOULD HAVE OCCUPIED THE BUILDING. THAT IS SOMETHING THAT WE'RE GOING TO DEAL WITH AT A MINIMUM. HOPEFULLY NOT THREE YEARS, BUT IT COULD BE. LASTLY, MR. HOBBS KNOWS OUR CITY HAS DONE A GOOD JOB, AND I'M CONFIDENT THAT THAT WOULD CONTINUE TO BE THE CASE. THE TIMELINE IS VERY IMPORTANT TO ME, 1-3 MONTHS IS WAY DIFFERENT THAN 6-8 MONTHS, AND SO I FEEL LIKE THAT THE PSA IN THIS CASE IS THE WAY TO GO. MS. BUHLER. >> I JUST WANT TO ECHO SOME OF THE SAME THOUGHTS. I LEARNED A GOOD LESSON LAST COUNCIL MEETING OF THE RFQ PROCESS, AND SO I THINK WE REALLY DO NEED TO BE BUDGET-CONSCIOUS, AND RON HOBBS HAS DONE A GREAT JOB WITH PAST PROJECTS. THE ANIMAL SHELTER, HE REALLY WORKED WITH OUR CITY FOR WHAT WE NEEDED. WE KNOW WE WANTED A CONDENSED BUDGET FOR THAT, AND THE PROCESS HAS GONE WELL. I THINK WE SHOULD STICK WITH THE PSA PROCESS. >> MS. NASH, I WOULD SAY NOT UNANIMOUS, OF COURSE, BUT A CONSENSUS TO GO FORWARD WITH THIS. WHAT WOULD BE OUR NEXT STEPS? >> THE NEXT STEP FOR US IS THAT IF YOU GO TO THE LAST SLIDE QUERY STAFF WOULD COME BACK TO YOU WITH A BASICALLY A PSA WITH RON HOBBS ARCHITECTS AND WITH A CONTRACT AND A PRICE SCOPE TO BE ABLE TO MOVE FORWARD WITH THEM TO DO THE DESIGN. >> MUCH LIKE ANY OTHER ITEM WE SEE, WE COULD CHOOSE TO ACCEPT THAT THAT NIGHT OR NOT? >> YES, SIR. >> BUT DISCUSSION, I AM SURE. THANK YOU, MS. NASH. OTHER QUESTIONS OR COMMENTS FROM COUNCIL? SEEING NONE, WE MOVE ON TO OUR NEXT AGENDA ITEM WHICH IS ITEM G, ADJOURNMENT. THE TIME MS. [INAUDIBLE] >> 8:47 P.M. >> WE ARE ADJOURNED AT 8:47 P.M. NO SECONDS. [LAUGHTER] * This transcript was compiled from uncorrected Closed Captioning.