Jul 13, 2021 City Council

[Call to Order, Invocation, and Pledge of Allegiance.]

[00:00:06]

>>> GOOD EVENING, IT IS 6:00 P.M. TUESDAY, JULY 13TH.

I CALL THIS SESSION OF MIDLOTHIAN CITY COUNCIL TO ORDER. COUNCILMAN COFFMAN WILL LEAD US

IN THE CONVOCATION AND PLEDGES. >> LET'S PRAY FOR OUR BROTHER ON THE SCHOOL BOARD NOW IF WE CAN. FATHER, WE COME BEFORE YOU THIS EVENING AND THANK YOU FOR ALL THAT YOU'RE DOING IN OUR COMMUNITY. THIS IS A BLESSED CITY AND A BLESSED COMMUNITY TO CALL HOME. LORD, WE PRAY OVER OUR BROTHER, RICHARD, AS HE'S DEALING WITH THIS ILLNESS.

I PRAY THAT YOU WOULD BRING YOUR HEALING TOUCH INTO THE HOSPITAL ROOM WHERE HE'S AT RIGHT NOW. AND PRAY THAT YOU WOULD BE WITH HIS FAMILY RIGHT NOW WITH ALL THAT GOES WITH HAVING A HEAD OF A HOUSEHOLD, FATHER FIGURE DOWN AND OUT AS HE'S IN THE HOSPITAL.

WE PRAY FOR THEIR FAMILY AS THEY'RE DEALING WITH THESE STRUGGLES. GOD, I PRAY FOR THIS MEETING THAT IT WOULD NOT BE OUR WILL TONIGHT BUT IT WOULD BE YOUR WILL IN OUR COMMUNITY. GOD WE GIVE THIS TIME AND EVENING TO YOU. THANK YOU FOR OUR FIRST RESPONDERS. WE PRAY THAT TONIGHT WOULD BE A GOOD NIGHT FOR ALL OF OUR POLICE AND FIRE AND PARAMEDICS.

IN JESUS NAME, AMEN. >>> ITEM 2021-293, CITIZENS TO BE HEARD. THE COUNCIL INVITES CITIZENS TO ADDRESS THE CITY COUNCIL ON ANY TOPIC NOT ALREADY ON THE PUBLIC AGENDA. CITIZENS ARE LIMITED TO THREE MINUTES. WE HAVE NO ONE SIGNED UP FOR

[CONSENT AGENDA]

ALL MATTERS UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE CITY COUNCIL AND WILL BE ENACTED BY ONE MOTION WITHOUT SEPARATE DISCUSSION. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND WILL BE CONSIDERED SEPARATELY. COUNCIL, DO YOU WISH TO -- DO I

HAVE A MOTION, PLEASE? >> MOVE TO APPROVE.

>> SECOND. >> WE HAVE A MOTION TO APPROVE AND SECOND. PLEASE VOTE.

THE CONSENT AGENDA IS PASSED 7-0.

[2021-306]

>> IN ACCORDANCE WITH SECTION 2.04, SPECIFIC USE PERMIT IS REQUIRED FOR ANY BUSINESS THAT WISHES TO USE A DRIVE-THRU ESTABLISHMENT. THE PROPERTY LOCATED ON LOT 5 BLOCK 1 IS A FINANCIAL INSTITUTION ALSO KNOWN AS BANK OF AMERICA WHO'S REQUESTING FOR TWO DRIVE-THRU ATMS TO BE LOCATED ON THE SITE. THE PROPOSED FINANCIAL INSTITUTION ONCE AGAIN DOES MEET ALL OF OUR MINIMUM REQUIREMENTS.

THAT WOULD BE A USE PERMITTED BY RIGHT.

THE DESIGN OF THE STRUCTURE IS CONSISTENT WITH ALL OF OUR ARCHITECTURAL BUILDING REQUIREMENTS FOR THIS DISTRICT AND FOR THE NONRESIDENTIAL DEVELOPMENT REGULATIONS.

IN LOOKING AT THE SITE PLAN AND DEVELOPMENT OF THE PROPOSED DRIVE-THRU SERVICES, WE DO FIND THIS IS CONSISTENT AND STAFF HAS NO OPPOSITION TO THE PROPOSED USES.

STAFF DOES RECOMMEND APPROVAL, WE SENT NOTICE OUT TO ALL BUSINESSES WITHIN 200 FEET. I CAN ANSWER ANY QUESTIONS AT

THIS TIME. >> DO WE HAVE A MOTION, PLEASE?

>> MOVE TO APPROVE. >> SECOND.

>> WE HAVE A MOTION TO CLOSE, SECONDED.

PLEASE VOTE. IS THERE ANY DISCUSSION OR A

MOTION? >> I GUESS JUST A QUESTION MORE THAN ANYTHING. I JUST WANTED TO CONFIRM, IT WAS HARD FOR ME TO TELL IN THE DRAWINGS AND THE PACKET, BUT IT DOES FACE WHAT IS THAT 663, RIGHT?

>> YES. CONSTRUCTION IS FACING 663.

>> GOTCHA. >> OKAY, I'LL MAKE A MOTION TO

[00:05:01]

APPROVE. >> MOTION TO APPROVE.

SECONDED. PLEASE VOTE.

ITEM PASSES 7-0. NEXT ITEM COUNCILMAN HARTSON

[2021-307]

142. THE PROPERTY IS LOCATED NORTH OF FM875 BETWEEN MCALPIN ROAD AND SKINNER ROAD.

>> THIS PROPERTY IS REQUESTING A REZONE FROM AGRICULTURAL DISTRICT TO A PLANNED DEVELOPMENT DISTRICT FOR APPROXIMATELY 46 ACRES. HOWEVER HALF OF THE PROPERTY IS LOCATED OUTSIDE OF THE CITY LIMITS.

GENERALLY WHEN A PORTION OF PROPERTY IS OUTSIDE THE CITY LIMITS, IT'S ALSO LOCATED WITHIN OUR ETJ.

HOWEVER THE REMAINDER OF THIS PROPERTY IS LOCATED IN WAXAHACHIE'S ETJ. IN ORDER FOR THIS TO BE ANNEXED INTO THE CITY LIMITS, THEY WOULD HAVE TO GO BEFORE THE WAXAHACHIE CITY COUNCIL FOR THEM TO REMOVE IT FROM THEIR CITY LIMITS AND US TO ANNEX IT INTO OUR CITY LIMITS.

WE HAVE BEEN WORKING WITH THE CITY OF WAXAHACHIE AND ELLY -- ELLIS COUNTY WITHIN THE PROPOSED DEVELOPMENT.

WITHIN THAT 78 ACRES, 58 RESIDENTIAL LOTS WILL BE DEVELOPED. 34 OF THOSE LOTS WILL BE WITHIN THE CITY LIMITS AND FIVE MORE OF THOSE LOTS WILL BE PARTIALLY IN THE CITY LIMITS AND PARTIALLY IN WAXAHACHIE'S ETJ.

IT'S PROVIDING APPROXIMATELY 4.92 ACRES OF OPEN SPACE AND 3.92% OF THAT IS WITHIN THE CITY LIMITS.

THIS DEVELOPMENT IS JUST SOUTH OF PD1 WHICH IS STONE HOLLOW.

STONE HOLLOW WAS ORIGINALLY ZONED AGRICULTURAL.

WHEN THEY WENT BEFORE AS A PLANNED DEVELOPMENT, IT DID NOT MEET THE FUTURE LAND USE MODULE. STONE HOLLOW IS CONSISTENT WITH THE COUNTRY MODULE. AT THE TIME CITY COUNCIL HAD APPROVED THE PD CHANGE WITHOUT PROVING THE FUTURE LAND USE DESIGNATION. THE PROPOSED DEVELOPMENT IS REQUESTING A SIMILAR DEVELOPMENT AS THE PROPERTY TO THE NORTH, STONE HOLLOW. THE LOT SIZE WILL BE OF SIMILAR SIZE AND LARGER. THIS IS SHOWING THE BOUNDARIES OF THIS DEVELOPMENT. AS YOU CAN SEE THE WHOLE FRONTAGE OF THE PROPERTY IS LOCATED WITHIN THE CITY OF WAXAHACHIE'S ETJ. TONGUE TWISTER THERE.

WITH THIS PD ONE OF THE PROVISIONS WRITTEN IN THIS PD IS THAT PRIOR TO THE FINAL PLAT BEING RECORDED FOR THIS DEVELOPMENT, THEY'RE REQUIRED TO SUBMIT THEIR HOMEOWNER ASSOCIATION'S OR CITY ATTORNEY TO ENSURE THEY ARE MEETING ALL THE REQUIREMENTS OF THE PD WHICH IS PRETTY CONSISTENT.

SPEAKING WITH THE DEVELOPER, CITY OF WAXAHACHIE DURING THIS PROCESS WE ALL AGREED IT WOULD BE DIFFICULT FOR THEM TO FOLLOW THE REGULATIONS FOR HALF OF THE DEVELOPMENT AND NOT FOLLOW THE REGULATIONS FOR THE OTHER HALF. THAT WOULD BE DETRIMENTAL TO THE ENTIRE DEVELOPMENT OVERALL. STAFF WOULD LIKE TO GO AHEAD AND MENTION THAT ALSO WITH THAT, THE DESIGN ELEMENTS THAT A MINIMUM OF ARTICULATION TWO FRONT HEIGHT GRADUATIONS ARE REQUIRED FOR ALL HOMES. ALL HOMES SHALL NOT REPEAT THE SAME DESIGN ON THE SAME SIDE OR OPPOSITE STREET ADDING ADDITIONAL DESIGN TO THE DEVELOPMENT.

WE GOT ABOUT 17 LETTERS IN ALL, 0 CAME BACK IN FAVOR, 0 CAME BACK IN OPPOSITION. WE FIND THIS CONSISTENT WITH THE SURROUNDING DEVELOPMENT AND WE DO RECOMMEND APPROVAL OF THE PROPOSED REQUEST. I CAN ANSWER ANY QUESTIONS AT

THIS TIME. >> WHAT DO WE DO ABOUT THOSE LOTS THAT ARE SPLIT BETWEEN THE COUNTY AND THE CITY?

>> SO WHEN WE GO TO ENFORCE IT, IT DEPENDS WHERE THE STRUCTURE IS GOING TO BE LOCATED WHEN IT COMES TO A BUILDING PERMIT.

[00:10:01]

OUTSIDE OF THAT, A PLAT, DEPENDING ON HOW THE PLAT IS DESIGNED IT'S GOING TO BE BETWEEN THE CITY OF MIDLOTHIAN, ELLIS COUNTY, AND CITY OF WAXAHACHIE FOR PLATTING DOCUMENTS. SO THREE DIFFERENT GOVERNING

ENTITIES. >> SO THERE'S SOME LOTS THAT IT LITERALLY SPLITS THE MIDDLE OF THEM.

IF THE HOUSE IS SITTING IN THE MIDDLE OF THAT, WHAT HAPPENS?

>> WE WOULD REQUIRE A BUILDING PERMIT FOR THE CITY OF MIDLOTHIAN. THEY WOULD HAVE TO GO BEFORE ELLIS COUNTY AND CITY OF WAXAHACHIE.

>> SOME OF THOSE LOTS WOULD PAY MIDLOTHIAN TAXING AND OTHERS

WOULD NOT? >> TAXING, I WOULD NOT BE ABLE

TO ANSWER THE QUESTION ON THAT. >> INTERESTING, I'VE NEVER SEEN

THAT BEFORE. >> SO THE PD WE'RE PROVING ONLY IS EFFECTIVE FOR THE PROPERTY IN MIDLOTHIAN?

>> CORRECT, YES. >> SO ARE THE HOA DOCUMENTS

GOING TO REQUIRE -- >> THE HOA WILL BE FOR THE

ENTIRE -- >> FOR THE ENTIRE AND THAT'S HOW YOU'RE PLANNING ON ENFORCING SOME OF THE --

>> WE WON'T BE ABLE TO ENFORCE -- WE'RE JUST MAKING SURE THERE'S THINGS INSIDE TO MAINTAIN THIS HOA LAW THAT'S WITHIN THE CITY LIMITS. AND THERE'S OTHER THINGS THAT ARE REQUIRED IN PD FOR THE CITY SIDE THAT THEY'LL BE IN THERE.

I'M TALKING TO THE APPLICANT. THEY UNDERSTAND THAT THESE COVENANTS WILL COVER THE ENTIRE PROPERTY, NOT JUST THE CITY OF

MIDLOTHIAN SIDE. >> ANY DISCUSSION?

MAKE A MOTION. >> I DON'T KNOW I'M CURIOUS AT THIS POINT ON IMPACT FEES AND THEN THE ENGINEERING FOR THE ROADWAYS. IS IT GOING TO BE THE COUNTY EDGE NEARING THE SPECS OR OUR SPECS? AND I DON'T THINK THE COUNTY IS THAT MUCH DIFFERENT.

SO IT FOLLOWS THEIR ENGINEERING, NOT THE COUNTY.

>> CITY OF WAXAHACHIE WAS IN THAT AS WELL TO DISCUSS THESE

ISSUES. >> WHAT WAS THE ANSWER ABOUT THE ROADS?

>>> WHEN THEY'RE RESURFACED WILL THEY ALL BE DONE AT THE SAME TIME OR NOT? NOT NECESSARILY.

THEY'LL BE CONCRETE? OKAY, I'M SORRY.

>> I SEE THAT YOU MENTIONED PD121.

THAT IS AN APPROVED PD NOW? OBVIOUSLY.

SO I GUESS THERE'S NO ENTRANCE INTO THAT NEIGHBORHOOD FROM THIS NEIGHBORHOOD, BUT THERE IS ONE I GUESS TO THE EAST ON THE

WAXAHACHIE ETJ? >> THERE'S AN ENTRANCE TO THE SOUTH ON FM875 AND THERE'S AN ADDITIONAL ONE RIGHT HERE.

>> I GUESS THE PD121 WOULD BE RIGHT ON TOP OF THE GREEN SPACE

IN THAT PICTURE. >> RIGHT HERE, CORRECT.

>> DO WE KNOW IF THE COUNTY HAS HEARD THIS DEVELOPMENT YET?

>> WE'VE BEEN WORKING WITH THE COUNTY AND WAXAHACHIE ALL ON

THIS DEVELOPMENT. >> BUT THEY HAVEN'T OFFICIALLY APPROVED THEIR SECTION OF IT YET?

>> I'M NOT SURE ON THEIR APPROVAL.

I KNOW PLATTING HAS BEEN SUBMITTED AT THIS POINT.

>> OKAY. >> I MEAN IT IS WHAT IT IS.

I'VE SEEN THIS HAPPEN A COUPLE OF TIMES.

[00:15:20]

IF THIS WERE IN THE TWO ETJS, IT WOULD BE WHICHEVER HAD THE MOST PROPERTY, THE RULES WOULD APPLY TO WHICHEVER CITY HAD THE MOST PROPERTY IN THEIR RESPECTIVE ETJ.

BUT BECAUSE IT'S IN OUR CITY LIMITS AND NOT THE ETJ, THEN THIS REALLY UNUSUAL SITUATION COMES ABOUT.

I SUSPECT AT SOME POINT, DEPENDING ON HOW THE LOTS ULTIMATELY GET FINAL PLATTED AND WHERE THE PROPERTY LINES END UP BEING, THERE MAY BE A SITUATION WHERE THE PROPERTY OWNERS ARE GOING TO HAVE TO GO TO SOMEBODY, OF COURSE THEY'LL PROBABLY MORE THAN LIKELY WANT TO GO TO WAXAHACHIE UNTIL WAXAHACHIE DECIDES TO ANNEX THAT AREA AT SOME POINT AND TRY TO GET RELIEF FROM CITY TAXES IF I WERE GUESSING.

BUT JUST SO THEY DON'T HAVE THIS KIND OF SPLIT THE BABY KIND OF DEAL ON THEIR LOT. BUT IT IS WHAT IT IS AND THERE'S REALLY NOT MUCH WE CAN DO ABOUT IT WITHOUT THE CITY OF WAXAHACHIE COOPERATING ON THEIR ETJ AND RELEASING AT LEAST SOME OF IT TO KIND OF GIVE SOME RELIEF ON AT LEAST THE LOTS THAT ARE SPLIT IF NOT THE WHOLE THING.

>> PLANNING AND ZONING DID RECOMMEND APPROVAL.

I MAKE A MOTION. >> I HAD ONE MORE QUESTION.

IS THERE ANY PRECEDENT OR POSITION ON THE LEGAL CHALLENGE FOR US TO REQUIRE FOR EXAMPLE THE RESIDENTS SAY I DON'T WANT MIDLOTHIAN BUILDING CODES. EXPLAIN TO ME WHY?

>> THE DEVELOPER HAS DONE A LOT OF THINGS IN OUR TOWN AND PROVEN

TO BE A REALLY GOOD PARTNER. >> IF THE HOUSE IS GOING TO BE LOCATED IN, IF THE HOUSE LOCATED AT ALL INSIDE THE MIDLOTHIAN CITY LIMITS, IT'S GOING TO BE SUBJECT TO OUR BUILDING CODES REGARDLESS. AND OTHERWISE I DON'T KNOW TO WHAT EXTENT WAXAHACHIE HAS EXTENDED THEIR BUILDING CODE REACH TO THEIR ETJ. I DON'T THINK THEY HAVE.

I SUSPECT THEY HAVEN'T. AND SO THAT KIND OF LEAVES IT UP TO THE COUNTY TO ADDRESS ANY BUILDING CODE ISSUES FOR CONSTRUCTION THAT'S WITHIN THE COUNTY EVEN THOUGH IT'S IN WAXAHACHIE'S ETJ TO GOVERN THOSE ISSUES.

>> THAT'S KIND OF UP TO THE POST OFFICE ON WHERE THEY'LL ACTUALLY

BE BOXED AT. >> THEN THE OTHER SIDE TO THAT IS ARE UTILITIES, LIKE I SAID FOR EXAMPLE WHEN WE WERE IN THE ETJ WE COULD CALL OVER TO ENCOR AND SEE THAT THERE WAS NO CITY INSPECTION REQUIRED, IT WAS JUST A COUNTY THING ET CETERA, ET CETERA. SO THERE WAS THESE UTILITIES HAVE SYSTEMS IN PLACE TO TRIGGER THE DIFFERENT QUALITY GATES FOR THE APPROVAL PROCESSES OF DEVELOPMENT AND BUILDING.

DO WE HAVE ANY IDEA HOW THAT'S GOING TO BE MAINTAINED SO THAT WE DON'T RUN INTO THIS SITUATION WHERE SOMETHING WAS SUPPOSED TO BE INSPECTED THAT DIDN'T OR VICE VERSA OR SOMETHING DOESN'T SHOW OR SOMEONE IS SAYING IT NEEDS TO BE INSPECTED AND IT DOESN'T?

DO WE HAVE ANY -- >> THE DEVELOPERS WILL HAVE TO WORK ALL OF THIS OUT. DO WE HAVE A MOTION NOW AND A

SECOND? >> I'LL MAKE A MOTION TO

APPROVE. >> MOTION TO APPROVE.

A SECOND? >> I'LL SECOND.

>> PLEASE VOTE. ITEM PASSES 6-0.

WALTER, WOULD YOU. ON THE NEXT ITEM WE HAVE ONE

[2021-308]

SO I OPEN ITEM 2021-308. CONDUCT A PUBLIC HEARING AND CONSIDER AND ACT UPON AN ORDINANCE GRANTING A SPECIFIC

[00:20:04]

>> THANK YOU. THIS PD IS IN PLANNED DISTRICT NO. 68. 2014 WAS WHEN THIS PD WAS ORIGINALLY ZONED. WITH THIS PD, WHEN IT WAS ORIGINALLY ZONED, THE RESIDENTIAL TO THE SOUTH, YOU SEE RIGHT HERE THERE'S SOME GENERAL PROFESSIONAL OFFICE TO THE EAST. AND THIS WAS ALL PART OF THE SAME PD. AT THE SAME TIME THIS WAS ALL REZONED. AT THE TIME THIS SECTION WAS GIVEN COMMUNITY RETAIL DESIGNATION, AND THIS SIDE WAS GIVEN GENERAL PROFESSIONAL OFFICE.

ORIGINALLY THIS WAS ALL COMMUNITY RETAIL BUT THROUGH ANOTHER AMENDMENT, THE DEVELOPER GOT THIS AS GENERAL PROFESSIONAL OFFICE. WITH THAT, WITHIN THE COMMUNITY RETAIL DISTRICT, ANY RESTAURANT OVER 1,000 SQUARE FEET OR DRIVE-THRU SERVICE REQUIRES A SPECIFIC USE PERMIT.

WE DID HAVE A REQUEST FOR A COFFEE SHOP WITH A DRIVE-THRU, NOT STARBUCKS, TO BE LOCATED AT THIS SITE.

WHEN THIS ORIGINALLY CAME BEFORE STAFF, WE HAVE WORKED WITH THEM QUITE A BIT ON THE SITE PLAN FOR HOW IT'S DESIGNED AND LOOKED.

ONE OF OUR FIRST CONCERNS WAS THE ARCHITECTURE OF THE STRUCTURE. WORKING WITH THEM AFTER THE PLANNING AND ZONING COMMISSION MEETING, WE DID WORK WITH THEM ADDITIONALLY ON THE ARCHITECTURAL SITE AND DESIGN OF THE BUILDING. THESE ALTERNATIVE MATERIALS THROUGHOUT THE BUILDING WOULD BRING OUT THE ARCHITECTURAL ELEMENTS. THEY'RE USING VARIOUS ELEMENTS TO CHANGE THE ROOF HEIGHTS, PORTIONS OF IT TO POP OUT.

WHEN YOU ACTUALLY CALCULATE THE REQUIRED ARTICULATE, IF YOU WERE TO IMPOSE THAT REQUIREMENT, IT WOULD GIVE IT A VERY ODD SHAPE, A VERY TALL BUILDING FOR THE WAY THIS IS DESIGNED.

AND SO ALL OF THOSE NOT MEETING THE ARTICULATION REQUIREMENTS, WE FEEL THIS WAS IN THE SPIRIT AND PURPOSE OF THOSE REQUIREMENTS. NOW THEY'RE DOING OTHER THINGS TO HELP MEET THE ARCHITECTURAL DESIGN AND BRING THAT OUT.

THEY HAVE AN ENHANCED OUTDOOR PATIO INSTEAD OF A STRUCTURE THEY ADD ON AS YOU'VE SEEN AT THE TYPICAL STARBUCKS LOCATIONS.

THE STRUCTURE IS ACTUALLY CONSTRUCTED AS PART OF THE BUILDING. THEY'LL HAVE FANS CONNECTING INTO IT ET CETERA FOR BETTER OUTDOOR SEATING.

WITH THIS, THEY'VE COME UP WITH A NEW DESIGN.

ONE OF OUR CONCERNS WITH THIS WAS THE ORIGINAL DESIGN OF TRAFFIC COMING ONTO, BLEEDING OUT ONTO THIS CROSS ACCESS THAT GOES THROUGHOUT THIS DEVELOPMENT AROUND TO HAWKINS RUN ROAD.

THERE'S A PROPOSED SCHOOL UNDER CONSTRUCTION RIGHT NOW, THE ELEMENTARY SCHOOL FURTHER DOWN WITH ALL OF THE RESIDENCES TO THE SOUTH. WE ARE VERY CONCERNED ABOUT WHAT POSSIBLE TRAFFIC ISSUES WE WOULD HAVE.

GOING THROUGH THE DEVELOPMENT PROCESS AND AFTER PLANNING AND ZONING COMMISSION MEETING, WE'VE HAD VARIOUS MEETINGS WITH THE DEVELOPER TO TRY TO BETTER UNDERSTAND AND FIGURE OUT A WAY TO ENHANCE THE SITE. ONE OF THE SUGGESTIONS WAS TO MOVE THE DUMPSTER LOCATION OVER TO THE WEST SIDE OF THE PROPERTY. ON THE SITE PLAN THAT YOU HAVE AS PART OF THE PACKET DOES NOT SHOW THAT.

WE RECEIVED THE SITE PLAN AFTER THE PACKET WAS SUBMITTED TO ALL OF YOU. RIGHT NOW IT SHOWS IT AS DIAGONAL. BUT TALKING TO THEM, THEY'RE GOING TO EITHER ADJUST IT TO BE PERPENDICULAR TO THIS PARKING LOT AND PARALLEL TO THIS PROPERTY LINE.

WE WOULD LIKE TO MAKE THAT AS A CONDITION TO APPROVE TO APPROVE THE NEW SITE PLAN WITH THE NEW DUMPSTER LOCATION.

ONE OF OUR OTHER CONCERNS IS WE HAVE AN EXISTING STARBUCKS WE HAVE ISSUES WITH BLEEDING OUT INTO HIGHWAY 67 FRONTAGE ROAD.

ONE THING THAT WE WORKED WITH THEM ON WAS WE WANTED THEM TO PROVIDE INFORMATION ABOUT THIS NEW DESIGN OF THE SITE TO PROVIDED DOCUMENTS AND VIDEOS, THEY PROVIDE TRAFFIC COUNTS OF AN EXISTING LOCATION USING AS A SIMILAR SITE AS THIS SITE PLAN.

THE DIFFERENCE WAS THAT THEIR PARKING WAS HEAD ON PARKING AND THIS ONE IS DIAGONAL. SO THIS IS EVEN A BETTER DESIGN THAN THE PREVIOUS SITE THAT'S OUT ON BOAT ROAD OUT IN FORT WORTH. THAT LOCATION AND THE APPLICANT WILL SPEAK MORE TO THAT. IT'S SUPPOSED TO HAVE A HIGHER CUSTOMER BASE THAN THIS PROPOSED LOCATION WILL.

THIS WILL FORCE ALL TRAFFIC TO COME OUT THIS WAY AND HELP RELIEVE THE QUEUEING THAT COULD OCCUR RIGHT HERE.

ALSO ONE OF THE ISSUES WITH THE SITE IS THE EXISTING STARBUCKS BETWEEN THE POINT OF ORDER AND THE WINDOW IS 87 FEET.

[00:25:05]

THE APPLICANT CAN ALSO SPEAK ON THAT HOW THAT WILL HELP DECREASE THE AMOUNT OF QUEUE ALONG THIS RED LINE RIGHT HERE COMING OUT INTO HAWKINS RUN ROAD. THAT IS QUITE A BIT OF INFORMATION THEY'VE PROVIDED AND THEY CAN GO AHEAD AND SPEAK MORE ON THE QUEUEING AND HELP ANSWER ANY QUESTIONS YOU MIGHT HAVE REGARDING ANY TRAFFIC ISSUES BLEEDING ONTO HAWKINS RUN ROAD.

14 NOTICES WERE SENT OUT, TWO CAME BACK IN OPPOSITION, TWO CAME BACK IN FAVOR. OUTSIDE OF 200 FEET RECEIVED AN ADDITIONAL FIVE LETTERS OF OPPOSITION AND AN ADDITIONAL SEVEN LETTERS OF SUPPORT OF THIS PROJECT.

THERE'S ALL OF THE INFORMATION I SHARED, BUT I CAN ANSWER ANY

QUESTIONS AT THIS TIME. >> WAS THERE A GENERAL CONSENSUS OF OPPOSITION? WAS THERE A REASON?

>> THE LETTERS OF OPPOSITION, THEY DIDN'T WANT A RESTAURANT BEHIND THEIR RESIDENTIAL HOMES, THE NOISE.

AT PLANNING AND ZONING COMMISSION THERE WAS A COUPLE OF PEOPLE THAT CAME IN TO SPEAK AND THAT'S WHAT THEY REITERATED WAS NOISE, POSSIBLE GARBAGE THAT COULD CAUSE RATS OR MICE THAT WOULD HAVE AN IMPACT ON THEIR LOT.

BECAUSE OF THOSE COMMENTS, THAT'S ONE OF THE REASONS WHY THEY CHANGED THE DUMPSTER LOCATION.

THE DUMPSTER LOCATION WAS ORIGINALLY RIGHT HERE AND THEY CHANGED IT TO BE THE FURTHEST POINT AWAY FROM ANY RESIDENTS.

>> JUST SO I'M CLEAR, THE PROPERTY BOUNDARY BETWEEN THE SUBJECT PROPERTY AND ALL OF THE RESIDENCES?

>> THE 18-FOOT MASONRY WALL EXTENDS ALONG RIGHT HERE.

AND ADDITIONALLY THERE WILL BE ADDITIONAL LANDSCAPING BETWEEN THE MASONRY, EXISTING MASONRY WALL AND THE PROPOSED SPACE.

AND THE TREES AND THE LANDSCAPING IS ACTUALLY EXCEEDING WHAT OUR LANDSCAPE REQUIREMENTS REQUIRED FOR THE

REAR LOT. >> WHAT WAS PLANNING AND

ZONING'S RECOMMENDATION? >> PLANNING AND ZONING'S RECOMMENDATION BASED OFF THE OF THE PREVIOUS SITE PLAN AND BASED OFF OF THE PREVIOUS ARCHITECTURAL DESIGN WAS A

DENIAL 4-2. >> WAS THERE A CHANGE IN THE STAFF'S RECOMMENDATION AFTER THE UPDATES?

>> SO STAFF, I THINK THE APPLICANT HAS BEEN ABLE TO HELP COMFORT SOME OF OUR CONCERNS WE DID HAVE ABOUT SOME OF THE TRAFFIC SUCH AS THE POINT OF ORDER TO THE PICKUP WINDOW, THE ARTICULATION REQUIREMENTS HAVE BEEN REMOVED.

WE FELT THEY'VE SHOWN SUFFICIENT EVIDENCE TO SHOW THAT THERE IS, IT'S NOT GOING TO BE AS BIG A CONCERN AS WE ORIGINALLY HAD.

>> STAFF WOULD RECOMMEND APPROVAL THEN?

>> STAFF WOULD RECOMMEND APPROVAL BASED OFF THE

INFORMATION WE HAVE. >> AND JUST ONE QUESTION, I GUESS THEY MAY GET TO IT. BUT THE AMOUNT OF CARS IN THE QUEUE THAT DOESN'T BLEED OUT ONTO THAT ACCESS ROAD?

>> GENERALLY WE RECOMMEND A SIX CAR QUEUE, I BELIEVE IT WAS SHOWING AN 11 CAR QUEUE BEFORE WE ALREADY GOT TO THE CROSS

ACCESS EASEMENT ONTO HERE. >> 11 CARS?

OKAY, THANK YOU. >> WHAT WAS P&Z'S REASON FOR

DENIAL? >> THEY'RE ALSO CONCERNED ABOUT THE TRAFFIC GOING ONTO HAWKINS RUN ROAD, THE DESIGN OF THE BUILDING. I WASN'T QUITE SURE IF THIS IS THE BEST LOT DUE TO THE PROPOSED USE OF DRIVE-THRU.

IT SOUNDED LIKE THEY WERE FINE WITH THE RESTAURANT BUT NOT THE

DRIVE-THRU IF I'M NOT MISTAKEN. >> SO ONE OF THE MAIN DIFFERENCES, I'LL BRING UP THAT. THERE'S A COUPLE OF MAIN DIFFERENCES WITH THE SITE. THE APPLICANT KNOWS QUITE WELL WHAT THOSE ISSUES ARE AND THIS IS ONE OF THE REASONS THEY'VE REDONE A LOT OF THEIR SITES IS TO AVOID WHAT HAPPENED AT OUR LOCATION IS THEY'VE INCREASED THE WAIT TIME OF WHEN YOU ORDER TO PICK UP, THEY'VE INCREASED FROM THE POINT OF ORDERING TO THE PROPERTY LINE, THEY'VE INCREASED THAT.

THEY'VE ELIMINATED ALL PARKING DIRECTLY ADJACENT TO THE BUILDING, THEY FORCE TRAFFIC IN ONE WAY AROUND THE STRUCTURE OUT THE DEVELOPMENT. RIGHT HERE, THAT'S 260 FEET.

AND THIS IS 297 FEET. >> THAT END OF THE RED LINE? IS THE FOOTAGE TO THE END OF THE

RED LINE? >> CORRECT.

AND THIS IS WHERE THE DRIVE INGRESS EGRESS VIEW.

[00:30:01]

>> COULD WE HAVE THE APPLICANT AND THERE'S ONE SPEAKER.

I DON'T KNOW WHO WANTS TO GO FIRST.

TERRY, MR. JOBE WILL GO FIRST. AND THEN THE APPLICANTS.

>> I'M TERRANCE JOBE, I LIVE AT 2415 SUMMERVILLE DRIVE, MIDLOTHIAN, TEXAS. WE ARE ALSO THE SELLER OF THIS PROPERTY. AND THANKS FOR HAVING US IN TONIGHT. I DON'T WANT TO STEAL THEIR THUNDER OR THEIR PRESENTATION BECAUSE THEY HAVE A VERY GOOD ONE, I'VE SEEN IT SEVERAL TIMES. WE'RE EXCITED ABOUT THE PROSPECT OF STARBUCKS OF OVER THE YEARS, I USED TO JOKINGLY SAY I KNOW WHERE EVERY STARBUCKS IN THE METROPLEX IS BECAUSE IN MANY OF OUR BUSINESS MEETINGS WHEN I MEET SOMEONE WE'D SAY WHERE DO WANT TO MEET AND THEY WOULD SAY WHERE IS THE LOCAL STARBUCKS.

AND IT'S NOT THAT WAY FOR EVERYONE, BUT IT IS A PLACE WHERE PEOPLE GATHER AND HAVE MEETINGS AS WELL AS SOCIAL EVENTS AND IT'S A PLACE TO GET OUR MORNING PICK UP, AFTERNOON PICK UP, AND OUR SUGARY DRINK IF WE WANT IT.

WELL ALONG CAME THIS THING LAST YEAR THAT WE WON'T EVEN MENTION THAT REALLY CHANGED THE LANDSCAPE OF RETAIL AND RESTAURANTS AND WE LEARNED A LOT OF NEW THINGS DURING THAT TIME.

SOME OF IT UNFORTUNATELY, BUT WE'VE LEARNED TO ADJUST OUR LIVES, MANY OF US, INCLUDING RESTAURANTS AND BUSINESSES.

STARBUCKS FROM WHAT I UNDERSTAND LEARNED QUITE A LOT DURING THAT TIME. AND THEIR NEW BUSINESS MODEL AS THEY'LL TELL YOU, THEY HAVE LEARNED TO MAKE IT MORE EFFICIENT, NOT JUST PARTICULARLY FOR THAT REASON, BUT IT WAS A CONTRIBUTING FACTOR. BECAUSE THEIR DRIVE-THRUS WERE, THAT SOME WERE ALREADY NOT THAT EFFICIENT BECAME EXTREMELY INEFFICIENT LAST YEAR. I WAS EXTREMELY DISAPPOINTED LAST YEAR WHEN I COULDN'T GO INTO STARBUCKS OR MY LOCAL COFFEE SHOP AND SIT DOWN AND HAVE A CUP OF COFFEE, AND I THINK THIS IS GOING TO BE A GREAT RESTAURANT AS WELL AS DRIVE-THRU. THERE'S A LOT OF FOCUS ON THE DRIVE-THRU BECAUSE THAT'S A LOT OF PEOPLE'S CONCERN.

SOME OF THE THINGS THAT TRENTON HAS ALREADY POINTED OUT AND I WON'T REHASH IT THAT IS GOING TO BE HELPFUL, ONE THING I'VE HEARD IN SEVERAL OTHER MEETINGS THAT I THINK WE'LL SPEAK TO IS WE HAVE NEW TECHNOLOGY, AND A LOT OF PEOPLE ARE USING THE HAPPEN NOW.

THE APP DOESN'T DO YOU VERY GOOD AT THE OTHER STORE BECAUSE I VISIT THE OTHER STORE AND I KNOW.

BECAUSE AS YOU PULL INTO THE DRIVE-THRU, I CAN'T PARK AND I CAN'T GO IN AND IT'S A BIG CLUSTER TO BE TRUTHFUL.

SO THIS ONE THEY'VE FIXED THAT. I THINK IT'S IMPORTANT NOT TO BEAT ON IT BUT THERE'S GOING TO BE DESIGNATED PLACES OUTSIDE OF THE DRIVE-THRU THAT IF I WERE TO USE MY APP, I CAN PARK THERE.

ACTUALLY I WON'T BE BECAUSE I HAVE AN OFFICE NEXT TO IT SO I CAN WALK OVER. BUT FOR THE OTHER PERSON THEY CAN PULL INTO THAT PARKING SPACE, RUN INSIDE, GRAB THEIR COFFEE AND OUT THEY GO. AND THEY DON'T EVEN GO IN THE DRIVE-THRU. I THINK THAT'S GOING TO TAKE SOME RELIEF OFF OF IT. AGAIN I'M NOT SPEAKING FOR STARBUCKS TONIGHT, I'M THE SELLER, AND I'D VERY MUCH LIKE TO HAVE THIS IN OUR COMMUNITY. I THINK IT'S A GREAT ACCOMPLISHMENT, WE THINK THIS IS THE RIGHT FIT.

EVERYBODY THINKS IT'S THE RIGHT FIT.

WITHOUT MUCH MORE TO DO, IF ANYBODY HAS A QUESTION FOR ME, I GUESS I'M NOT THE SPEAKER, YOU CAN'T QUESTION ME.

SO HAVE A GOOD EVENING AND THANKS FOR HEARING ME OUT.

>> I'M SHELLY ANDERSON, STORE DEVELOPMENT MANAGER WITH STARBUCKS. THIS IS THE DEVELOPER.

SO THANK YOU SO MUCH FOR HAVING US HERE TONIGHT.

WE GREATLY APPRECIATE BEING ABLE TO TALK.

I GREATLY APPRECIATE GETTING TO TALK TO CITIES AND EXPLAIN THAT WE'RE NOT TRYING TO JUST BE ANOTHER QSR.

ALL OF OUR LOCATIONS ARE CORPORATE LOCATIONS, WE'RE NOT A FRANCHISE LOCATION THAT'S GOING TO TURN AROUND AND TURN OVER.

WE'RE REALLY LOOKING TO EMBED OURSELVES IN THE COMMUNITY AND BE A VALUABLE PART OF THE COMMUNITY.

WE UNDERSTAND THAT WE HAVE A PROBLEM AT THE EXISTING STORE, SO NOT ONLY ARE WE LOOKING TO HAVE AN ELEVATED EXPERIENCE AT THE NEW STORE WITH ALL OF THE NEW BELLS AND WHISTLES AND ADVANCED NEW PATIO, AND ALL OF THE BEAUTY OF OUR NEW BRANDING, BUT THIS NEW STORE WILL GIVE RELIEF TO THE EXISTING STORE.

SO WE WILL THEN HAVE TWO STORES FUNCTIONING LIKE THEY WERE DESIGNED TO BE. LIKE I MENTIONED WE'VE GOT ALL OF OUR STORES ARE CORPORATE OWNED, THEY'RE LONG TERM LEASES.

WE'RE IN IT FOR THE LONG HAUL, WE DON'T BUILD STORES TO THINK WE'RE GOING TO FLIP AROUND AND LEAVE.

[00:35:02]

I'LL LET MATT TALK THROUGH SOME OF THE SITE PLAN CHANGES.

WE HAVE DONE QUITE A FEW STUDIES, WE CAN ANSWER ANY QUESTIONS YOU HAVE ABOUT CAR COUNTS AND WHAT'S HAPPENING AT THE EXISTING STORE AND WHAT'S GOING TO GO THROUGH, OR WHAT WOULD POTENTIALLY GO THROUGH THE PROPOSED LOCATION?

>> HI, MAYOR, MEMBERS OF THE COUNCIL.

MY NAME IS MATT JAMESON, I'M THE DEVELOPER ON THE PROJECT.

THE BIGGEST ISSUE IS TRAFFIC AND I WANT TO TAKE A BIT OF YOUR TIME TO ADDRESS THAT. I WANT TO TALK ABOUT WHAT'S CHANGED FROM 2007 WHEN THE ORIGINAL STORE WAS OPENED TO TODAY. ALONG WITH THAT, WE'RE GOING TO SPEND SOME TIME GOING THROUGH DETAIL ABOUT THE ENHANCED SITE CHARACTERISTICS WITH THE DRIVE-THRU LANE, ET CETERA.

THIS IS AT 717 BOAT ROAD IN FORT WORTH.

ACTUALLY IT WAS OPENED ONE YEAR AGO TODAY.

THE SITE DYNAMIC, SITE PLANNING IS VERY SIMILAR TO WHAT WE'RE PROPOSING TO DO ON HAWKINS RUN. IT HAS THE PARKING CONFIGURATION, STAFF RECOMMENDED, WE HAVE ANGLED PARK WHICH WE THINK WILL BE EASIER IN THIS LOCATION.

ONE ROW OF PARKING SIMILAR TO THIS ON THE NORTH SIDE OF THE BUILDING. BUT THE THING I WANT YOU TO FOCUS ON MOST IS THE DRIVE-THRU STACKING LANE.

SO FROM THE DRIVE-THRU WINDOW TO THE POINT OF ORDER IS 115 FEET AT THIS LOCATION. IF WE'RE TALKING ABOUT THE EXISTING LOCATION IN MIDLOTHIAN THAT STACKS UP SO BADLY, THAT'S 81 FEET. THAT FOUR CAR STACK.

AT STARBUCKS, THE LONGEST DRINK TAKES APPROXIMATELY TWO MINUTES TO MAKE. IT'S ROUGHLY THE SAME TIME, CORRECT ME IF I'M WRONG, FOR A FOOD ITEM.

SO THAT STACK FROM THE POINT STARBUCKS KNOWS WHAT THAT AH ORDER IS TO THE POINT OF PICKUP IS A VERY IMPORTANT MEASUREMENT OF DISTANCE. THIS LANE HAS A 4 CAR DRIVE-THRU STACK FROM THAT ORDER POINT TO THE DRIVE-THRU WINDOW.

OUR PROPOSAL HAS A 6 CAR DRIVE-THRU STACK.

SO THE OTHER THING I WANT TO NOTE ON THE EXISTING MIDLOTHIAN STORE IS FROM THAT ORDER POINT BACK TO THE POINT OF CROSS ACCESS ONLY HAS 60 FEET. AS YOU KNOW THE DRIVE-THRU LANE GETS BACKED UP AT THE ORDER, THE ORDER GETS BACKED UP IN THE QUEUE, AND THIS STACKS ALL THE WAY BACK TO 67 FRONTAGE ROAD.

VIRTUALLY AT PEAK TIMES ELIMINATING THE ABILITY TO PARK IN THOSE TEN PARKING SPACES AS MR. JOBE MENTIONED EARLIER DIRECTLY SOUTH TO THE EXISTING LOCATION.

THIS IS OUR PROPOSED SITE PLAN, SO AGAIN THE OLD EXISTING LOCATION HAS 81-FOOT. THIS PROPOSAL HAS 117 FEET FROM THE DRIVE-THRU WINDOW TO THE POINT OF ORDER.

AND THEN FURTHER THAN THAT, IT'S GOT 178 FEET FROM THAT POINT OF ORDER ALL THE WAY TO THE CROSS ACCESS DRIVE.

SO THAT TOTALS A 14 CAR. I THINK ONE OF YOU ASKED WHAT THAT STACKING COUNT WAS AND IT'S A 14 CAR DEDICATED DRIVE-THRU STACK. WE HAVE A BULLET DOWN AT THE BOTTOM, SO THERE'S 182 DRIVE-THRU STARBUCKS LOCATIONS IN THE DFW METROPLEX, OF THAT 182, THEIR AVERAGE DRIVE-THRU STACK IS 6.4 CARS ACROSS THAT 182 PORTFOLIO.

THIS LOCATION WE'RE PROPOSING IN MIDLOTHIAN HAS A 14 CAR DEDICATED STACK. IF WE WERE TO STACK ON THE CROSS ACCESS DRIVE, I REALIZE THAT'S NOT IDEAL FOR ANYBODY, BUT IF WE STACKED ALL THE WAY TO THE PUBLIC RIGHT OF WAY THAT'S A 19 CAR STACK, OVER THREE TIMES WHAT THE AVERAGE IS IN THE MARKET.

SO AGAIN THE OTHER TWO THINGS WE DID ON THIS SITE PLAN THAT IS NOT CONSISTENT WITH BOAT CLUB ROAD IS WE ANGLED THE PARKING SPACES AND WE ALSO MADE ALL OF THE TRAFFIC FLOW ONE DIRECTION.

SO THE DRIVE-THRU LANE IS DEDICATED, BUT WE ALSO HAVE A SINGLE LANE THAT ROTATES SO IF YOU COME IN TO PARK YOU'RE GOING IN THE ANGLED PARKING SPACE AND GOING AROUND THE STORE TO MAKE IT CLEANER FOR THE TRAFFIC FLOW. SO CURRENT VERSUS PROPOSED, THIS IS THE CURRENT LOCATION ON HIGHWAY 67 VERSUS WHAT WE'RE PROPOSING. AND WE WANT TO SHOW YOU WHAT THAT INCREASE IN EFFICIENCY IS, 23 CARS AT THE EXISTING LOCATION. AT PEAK TIMES IN THOSE TEN PARKING SPACES DIRECTLY TO THE SOUTH ARE NOT USEABLE, THAT TAKES THAT COUNT DOWN TO 13 CARS AGAINST OUR PROPOSED SITE PLAN TO 27. THOSE 27 PARKING SPACES EVEN IF YOU HAVE A 14 CAR DRIVE-THRU STACK ARE 100% USEABLE.

THE WINDOW TO ORDER DISTANCE 117 FEET, A 44% INCREASE.

THE QUEUEING BEFORE YOU GET TO THE ORDER POINT OF 60 FEET VERSUS 178 FEET IS NEARLY 200% INCREASE IN EFFICIENCY.

THE NEXT BULLET POINT IS ONE THAT ALL OF THIS BOILS DOWN THROUGH. SO WHAT DOES THIS LONGER DRIVE-THRU STACK REALLY MATTER. AT THE CURRENT STORE IT TAKES 89 SECONDS IF YOU PULL UP TO THAT DRIVE-THRU WINDOW TO GET YOUR DRINK, MAKE YOUR TRANSACTION, AND ROLL OFF.

WHAT WE'RE PROPOSING FOR HAWKINS RUN IS A 58 SECOND TRANSACTION NUMBER. THAT NUMBER COMES FROM BOAT RUN.

[00:40:02]

NOW WE'RE DOING A LOT OF DEALS AT 30,000 SQUARE FEET.

THIS IS ACTUALLY QUITE LARGER THAN THAT AT 35,000 SQUARE FEET.

SO THIS IS TALKING ABOUT THE WINDOW TIME.

SO BAR CHARTS ON THE RIGHT, WHAT THIS BOILS DOWN TO IS THIS IS SIX MONTHS OF DATA OF THE EXISTING STORE ON THE TOP AND AROUND BOAT CLUB ROAD ON THE BOTTOM.

IT SHOWS THAT THE AVERAGE WINDOW TIME AT THE CURRENT STORE IS 89 SECONDS. IT TRANSACTS ON AVERAGE 40 CARS PER HOUR. THE BOTTOM LOCATION, BOAT CLUB IS 58 SECONDS. SO MUCH QUICKER AND MOST OF THAT IS INCREASED OPERATIONAL EFFICIENCY BY HAVING THE APPROPRIATE DRIVE-THRU STACK IN TERMS OF ORDER POINT TO WINDOW AND ALSO QUEUEING PAST THAT. SO WE SENSED TO PUT OUR MONEY WITH OUR MOUTH WAS SOME TIME LAPSED VIDEOS TO STAFF OF THE LOCATION AT BOAT HOUSE ROAD. THIS IS A 45 MINUTE TIME LAPSE VIDEO TAKEN LAST TUESDAY. TUESDAY ARE THE PEAK PERFORMANCE TIME FOR STARBUCKS AT 8:00 A.M. IN THE MORNING.

YOU CAN SEE THE STACKING ON THE OTHER SIDE OF THE BUILDING, IN THIS VIDEO YOU WON'T SEE STACKING AND I'M NOT SAYING THAT'S NOT GOING TO HAPPEN, IT WILL HAPPEN.

IT SERVICES 50 CARS IN A 45 MINUTE TIME LAPSE VIDEO.

IT'S 73 TRANSACTIONS GOING THROUGH THAT TIME LAPSE VIDEO IN AN HOUR. THIS BOAT CLUB STORE DOES SIGNIFICANTLY HIGHER VOLUMES THAN WHAT WE'RE EXPECTING TO SEE ON HAWKINS RUN. SO IT'S A 73 TRANSACTIONS OUT THAT WINDOW FOR ONE HOUR COMPARED TO AN ESTIMATED NUMBER OF 50 AT A PEAK PERFORMANCE ON HAWKINS RUN.

SO THIS SLIDE I JUST ADDED AT THE END TO SHOW THE ZONING HAS BEEN IN PLACE SINCE 2014 AND THE SLIDE ON THE RIGHT IS TAKEN IN 2018. BUT IT SHOWS THE RETAIL CENTER WAS ALREADY THERE. THERE WAS SOME CONCERN ABOUT P&Z REGARDING IF THOSE TENANTS IT DOES BACK UP IF THEY WOULD BE SUPPORTIVE OF STARBUCKS COMING IN.

WE WENT AND ASKED TENANTS THAT ARE THERE IN THAT RETAIL SPOT.

WE HAVE EMAILS OR VERBAL CONFIRMATIONS FROM THE MANAGER OF ALL FIVE FRANCHISE LOCATIONS THAT THEY SUPPORT STARBUCKS COMING IN ADJACENT TO THE EAST OF THEM.

THAT'S WHAT WE HAVE, IF YOU HAVE ANY QUESTIONS FOR US, WE'D LOVE

TO ANSWER THEM. >> I'M GOING TO HAVE SEVERAL

QUESTIONS. >> MY QUESTIONS ONLY FOR STAFF.

>> WHAT'S THE STAFFING LEVEL GOING TO BE DURING YOUR PEAK

TIMES? >> SO DURING A SHIFT CHANGE, I DON'T KNOW IF THIS IS ACCEPTABLE TO WHAT YOU'RE ASKING.

>> WHAT'S YOUR PEAK SERVICE TIME DURING THE DAY, IN THE MORNING I

TAKE IT? >> 7:00 TO 8:00.

>> WHAT'S YOUR STAFFING FROM 7:00 TO 8:00?

>> IT DEPENDS, EIGHT. >> EIGHT PEOPLE?

>> 7 TO 8 PEOPLE HONESTLY. >> WORKING CONCURRENTLY?

>> YES. >> SO HOW MANY PEOPLE ARE MANNING THE WINDOWS, HOW MANY IS ON THE COUNTER, AND HOW MANY ARE

PREPARING FOOD OR DRINKS? >> WE'VE GOT FOUR PEOPLE MANNING THE DRIVE-THRU WINDOW, WE'VE GOT THREE PEOPLE BACK IN THE BAR.

WE'VE GOT THE WHOLE SITUATION BEHIND WHAT WE CALL OUR ENGINE IS CHOREOGRAPHED AND WE HAVE TO HAVE A RIGHT SIZE BUILDING WHICH THIS NEW PROPOSED BUILDING IS RIGHT SIZE, THE OLD BUILDING IS NOT RIGHT SIZE. THAT'S ANOTHER ISSUE WITH THE OLD SITE, IT'S A LITTLE BIT TOO SMALL OF A BUILDING AND TOO SMALL OF A SITE SO IT'S CONGESTED, IT'S HARD TO PUMP ALL OF THE TRAFFIC THROUGH THERE. THIS NEW BUILDING IS RIGHT SIZE WITH THE CORRECT SIZE ENGINE SO WE CAN FIT ALL OF OUR PEOPLE AND THEY CAN WORK THEIR CHOREOGRAPHY BACK THERE OF HELPING THE DRIVE-THRU, HELPING THE COUNTER, HELPING MOP SERVICE AND HELPING EVERYBODY THROUGH LIKE A DANCE AND IT MOVES REALLY SMOOTH.

>> SO IT TAKES TWO MINUTES TO PREPARE THE AVERAGE DRINK?

>> SURE. >> NOT THE AVERAGE DRINK, THE

LONGEST DRINK. >> WHAT'S THE SHORTEST DRINK?

>> A CUP OF COFFEE. THAT WOULD BE 30 SECONDS.

>> WHAT PERCENT OF YOUR BUSINESS IS DRIVE-THRU AND WHAT IS WALK

IN? >> THE PERCENTAGE OF DRIVE-THRU OUT OF THE EXISTING MIDLOTHIAN STORE IS 63%.

THE BOAT CLUB STORE IS 74% BECAUSE PEOPLE CANNOT MOVE

THROUGH THE -- >> I WAS GOING TO SAY ONE OF THE REASONS IT'S AS LOW AS IT IS IS PEOPLE DON'T WANT TO SIT IN THE 15 CAR STACKS, THEY'RE PARKING THEIR CAR AND GOING IN EVEN IF

THEY'RE PARKING AT CHASE. >> HOW MANY THINGS ARE ORDERED

IN THE AVERAGE CAR? >> IN THE AVERAGE CAR, IT'S HARD

[00:45:02]

TOTAL TRANSACTION COMING OUT. >> SO IF I UNDERSTAND CORRECTLY, YOU TAKE A CERTAIN AMOUNT OF TIME TO PREPARE THE ORDER FOR THE CAR, IN ADDITION TO THAT, DO YOU HAVE ANOTHER MINUTE TO SERVICE THEM AT THE WINDOW THAT IS IN ADDITION TO THE

PREPARATION OF THE ORDER? >> YES.

WE'RE MOVING THEM OFF THAT WINDOW AS QUICKLY AS POSSIBLE.

>> DO YOU UNDERSTAND MY QUESTION?

>> YEAH, SO THAT ORDER IS TAKEN 117 FEET BACK AND IN PEAK TIMES, THOSE CARS SLOWLY PULL UP, SO THEY'RE MAKING THAT ORDER DURING THAT TIME. WHEN THEY GET TO THE WINDOW, I THINK THIS IS YOUR QUESTION, WHEN THEY GET TO THAT WINDOW, THEY'RE SPENDING 58 SECONDS MAKING THE TRANSACTION.

>> BUT THEY ALREADY SPENT X NUMBER OF MINUTES --

>> PREPARING THE DRINK. >> AND THAT WAS WITH LABOR OTHER

THAN WHAT'S AT THE WINDOW. >> THAT IS CORRECT, RIGHT.

>> THE LABOR AT THE WINDOW IS THE ONE PASSING THE DRINK AND

TAKING THE TRANSACTION. >> SO THAT PERSON DOESN'T

PREPARE THE DRINKS? >> NO, THERE'S A PERSON INSIDE OF THE BAR PREPARING AND IF YOU WALK IN AND WATCH, IF YOU'VE GOT YOUR PEOPLE AT THE REGISTER TAKING ORDERS, YOU HAVE PEOPLE IN THE DRIVE-THRU WINDOW TAKING ORDERS, AND THERE'S THE PEOPLE BEHIND THE BAR PREPARING EVERYTHING.

>> NO OFFENSE, BUT I DON'T THINK I'VE EVER SEEN EIGHT PEOPLE WORKING IN A STARBUCKS. I MAY HAVE SEEN 4 OR 5.

>> OKAY. >> NO OFFENSE.

JUST PERSONAL EXPERIENCE. >> OKAY.

>> BECAUSE THE QUEUE, IF YOU HAVE 14 CARS IN THE QUEUE, HOW LONG DOES IT TAKE THAT CAR TO GET TO THE WINDOW?

THE 14TH CAR. >> THE 14TH CAR.

>> SO THAT'S 14 TIMES 58 SECONDS.

>> YOU'VE GOT THE PREPARATION TIME IN THERE.

>> RIGHT, BUT THE ORDER POINT, THEY HAVE AN ORDER POINT AND THEN THAT'S BEING PREPARED AS IT'S COMING UP TO THE WINDOW.

SO THAT ORDER TIME IS NOT NECESSARILY, THAT IS A PEAK TIME FOR CARS PULLING UP AND BEING AT THE WINDOW IS 58 SECONDS.

>> SO YOU'RE SAYING THAT THE PREPARATION OF THE ORDER CAN BE DONE ON AVERAGE WITHIN THE MINUTE THAT THE CARS ARE AT THE

WINDOW? >> THAT'S NOT A CORRECT

STATEMENT. >> THAT'S THE IMPLICATION

THOUGH. >> NO THE AVERAGE CAR MOVES UP TO THE WINDOW EVERY 58 SECONDS. THEY CAN STACK SIX CARS BETWEEN THE ORDER TIME AND THE DELIVERY TIME SO THAT'S ACTUALLY SIX MINUTES TECHNICALLY FROM ORDER THAT THEY HAVE TO MAKE IT.

>> THAT'S CORRECT. >> ACTUALLY FIVE CARS BECAUSE THAT SIXTH ONE IS THE WINDOW. THERE'S YOUR 58 SECONDS.

THAT SIXTH CAR. >> SO ONE OF THE I THINK CRITICAL PIECE OF INFORMATION HERE, SO ON THE EXISTING MIDLOTHIAN STORE, AT THE PEAK TIME, WHEN IT'S BACKED UP ON THE ROAD, WE CAN MOVE 40 CARS AN HOUR.

THAT'S IT. AND IT'S BACKED UP, YOU SEE IT BACKED UP ON THE ROAD, RIGHT. SO AT THIS BOAT CLUB ROAD STORE WITH THE IMPROVED SITE LAYOUT, WE CAN GET 70 TO 73 CARS THROUGH THERE IN AN HOUR NO BACK UP ON THE ROAD.

>> SO YOUR QUEUE LENGTH IS 14, SO YOU CAN DO THREE QUEUES IN AN

HOUR? >> ON AVERAGE AT 58 SECONDS.

>> YOU SAID YOU CAN DO 40 CARS. >> YOU'RE TALKING ABOUT TWO DIFFERENT LOCATIONS. SHE'S TALKING ABOUT THE 14 CARS IS THE PROPOSED LOCATION, THAT'S THE DEDICATED STACKING.

>> YOU SAID HOW MANY CARS CAN YOU DO IN THE CURRENT

CONFIGURATION? >> 40.

>> THE PROPOSED. >> NO, NO, NO.

IN THE PROPOSED, OUR BEST GUESS AS TO WHAT THAT CAN HANDLE IS EXACTLY WHAT YOU SHOWED YOU FROM BOAT CLUB ROAD WHICH IS A SIMILAR LAYOUT, SAME DISTANCE FROM THE ORDER POINT TO THE

DRIVE-THRU WINDOW. >> HOW MANY CARS CAN YOU DO PER

HOUR? >> WE SHOWED THAT VIDEO DOING 73 CARS PER HOUR. BOAT CLUB HAS STATS DOING THE HIGHEST WAS 78 OVER THE LAST SIX MONTHS PER HOUR.

>> AND THE EXISTING MIDLOTHIAN STORE IS ONLY GETTING 40 AND

STILL BACKING UP. >> I UNDERSTAND THAT.

WE'RE TALKING ABOUT THE PROPOSED CONFIGURATION.

BECAUSE YOU WENT FROM 89 SECONDS DOWN TO 58 SECONDS.

SO THAT SAYS MAYBE 62 CARS PER HOUR.

>> THOSE ARE AVERAGES. >> RIGHT.

>> SO THERE ARE TIMES WHERE AT 5:00 IN THE AFTERNOON, YOU PULL UP TO THE ORDER POINT AND YOU GET A DRINK THERE'S NO OTHER

CARS IN LINE. >> WHEN WE'RE TALKING ABOUT WHEN

THE DENSITY IS HIGH. >> RIGHT, BUT THOSE ARE AVERAGES OVER A WHOLE DAY THAT WE GAVE YOU.

TO ANSWER THAT QUESTION, AT THE ORDER POINT IF YOU ORDERED AND THERE WERE NO CARS IN FRONT OF YOU, YOU DIDN'T HAVE THE SIX MINUTES OR FIVE MINUTES TO PREPARE THE DRINK BECAUSE THERE WAS NOBODY IN FRONT OF YOU AND YOU MAY HAVE BEEN IN LINE FOR TWO AND A HALF MINUTES BECAUSE YOU WERE THE FIRST IN LINE.

>> IF YOU HAVE A FULL QUEUE AND YOU'RE TAKING 60 SECONDS PER CAR, IT'S GOING TO TAKE YOU 14 MINUTES TO CLEAR THE QUEUE.

>> RIGHT. ON AVERAGE.

[00:50:03]

>> WELL. >> I WAS CONCERNED ABOUT THE TRAFFIC BUT LOOKING AT YOUR VIDEO THERE, I NEVER DID SEE MORE THAN FIVE CARS STOPPED AT ONE TIME.

PEOPLE WERE MOVING THROUGH FAST. >> WHAT TIME DOES YOUR STORE

OPEN? >> BETWEEN 5:00 AND 6:00.

IT DEPENDS ON THE COMMUNITY. SO SOME OF OUR STORES IF THE COMMUNITY IS WANTING IT AT 5:00 A.M., WE'LL OPEN AT 5:00 A.M. IF WE'RE IN SOME DOWNTOWN AREAS OR AREAS WHERE THE COMMUNITY IS PREFERRING FOR 6:00 A.M. AND WE REALLY DON'T HAVE THE BUSINESS AT 5:00, THEN WE'LL OPEN AT 6:00.

>> AND YOU SAID 14 CARS IN THE QUEUE OR UP TO 14 CARS IN THE QUEUE, I THINK THAT'S PROBABLY PRETTY GENEROUS.

DEPENDING ON THE SIZE OF THE CAR OBVIOUSLY, BUT THERE'S A LOT OF BIG TRUCKS IN THIS COMMUNITY AND THEY'RE PROBABLY NOT GOING BUMPER TO BUMPER AND I HAVE REAL CONCERNS ABOUT IT STACKING OUT ONTO THAT ACCESS ROAD. I KNOW THAT'S MR. JOBE'S PROPERTY, BUT THERE'S A LOT OF TRAFFIC THAT GOES THROUGH THERE HEADED TO THE GYM AND HEADED TO MARCO'S AND ALL OF THOSE GOOD

PLACES. >> THESE SPACES ARE 20-FOOT

LENGTH. >> RIGHT SO MY EXPERIENCE WITH STARBUCKS AND IT'S PROBABLY NOT FAIR AND YOU SAID THAT YOU'VE ADDRESSED ALL OF THESE ISSUES. MY EXPERIENCE IS WAXAHACHIE WHICH IS HORRIBLE AND MIDLOTHIAN WHICH IS HORRIBLE.

AND SO TO BE HONEST WITH YOU, I DON'T HAVE A WHOLE LOT OF FAITH IN THE SYSTEM BECAUSE I JUST FORESEE POTENTIAL HUGE ISSUES GOING OUT ONTO THAT CROSS ACCESS EASEMENT ROAD AND I'M SURE THAT'S WHAT PLANNING & ZONING WAS DISCUSSING AS WELL.

>> I THINK THERE'S TWO THINGS TO CONSIDER, THIS IS A NEW SITE PLAN THAT YES, THOSE STORES ARE HORRIBLE.

>> THOSE ARE CORPORATE STORES AS WELL, RIGHT?

>> YES, THEY'RE CORPORATE STORES, THEY WERE BUILT IN 2007, MUCH SMALLER PROPERTIES, MUCH SMALLER BUILDINGS, MUCH SMALLER DRIVE-THRUS WHEN WE WERE ALL FIGURING OUT HOW TO RUN A DRIVE-THRU. AND WE HAVE A WHOLE ENTIRE ENGINEERING TEAM OUT OF SEATTLE IN THE LAST TEN YEARS HAS WORKED VERY HARD TO FIGURE OUT THEY NEED TO DO A BETTER JOB OF THIS BECAUSE WE'RE CAUSING PROBLEMS, ALL OF OUR OLDER STORES ARE CAUSING CONGESTION AND WE NEED TO FIX THAT.

SO NOT ONLY DO WE APPROVE THE NEW HOST SITE PLAN, IT WILL GIVE THAT EXISTING STORE RELIEF SO THAT EXPERIENCE IS NO LONGER

GOING ON THERE. >> I JUST HAVE A COUPLE QUESTIONS FOR STAFF UNLESS SOMEONE HAS ANY OTHER FOR THE

APPLICANT. >> THE ONLY THING I GOT GOING IS THE OTHER STORE AROUND THE MIDLOTHIAN, YOU CAN DRIVE ALL THE WAY AROUND IT ALMOST AND BYPASS 90% OF THAT TRAFFIC IF YOU'RE NOT GETTING A COFFEE. IT BACKS UP ONTO THE 67 ONRAMP SOMETIMES BUT THERE IS WAYS AROUND THAT.

IF YOU BLOCK THAT ACCESS TO THE PIZZA PLACE OR A GYM OR ANYTHING LIKE THAT, THERE IS NO OTHER WAY AROUND THAT SPOT.

THOSE PEOPLE IN LINE, THEY THINK THEY'RE PRIVILEGED AND THEY PARK RIGHT THERE AND THEY DON'T CARE THAT YOU'RE TRYING TO GET FROM THE OUT OF THE 7/ELEVEN GETTING ONTO THAT HAWKINS RUN.

THEY DON'T CARE. THE ONLY SPOT I'M CONCERNED

ABOUT IS THAT SPOT RIGHT THERE. >> YEAH, ME TOO.

>> BECAUSE THIS GUY HERE, CAN'T GET HERE.

THAT PLACE OVER THERE, I CAN GET AROUND IT.

I CAN GO THROUGH CROSS EXITS OF PARKING LOTS, I CAN DO ALL KINDS OF CUT AROUNDS THROUGH TACO SHOPS TO GET AROUND YOUR STORE.

BUT IF I'M SITTING GETTING OFF THE GYM AT 8:00 A.M. BECAUSE I HAVE TO BE AT WORK AND THIS IS THREE CARS, ALL IT TAKES IS THREE CARS RIGHT HERE, AND THEY WILL NOT MOVE AND THEY WILL SIT THERE AND THEY WILL MAKE YOU LATE FOR WORK, AND THAT IS THE ONLY WAY OUT OF THAT IS THAT SPOT RIGHT THERE AND THAT'S THE ONLY REASON THAT, YOUR NUMBERS AND I COULD ARGUE WITH YOUR NUMBERS THE DAY AFTER THE 4TH OF JULY WASN'T THAT BUSY OF A DAY PROBABLY, BUT I'M JUST SAYING THAT'S MY THOUGHT ABOUT IT.

THAT'S THE WHOLE CONCERN I HAVE. I DON'T THINK THEY'LL GET ONTO HAWKINS BUT THAT'S THE ONLY PLACE I HAVE A CONCERN.

>> THERE IS A SECONDARY CUT. SO THIS CROSS ACCESS GOES ALL THE WAY AROUND TO 663. SO FROM 7/ELEVEN TO THIS LOCATION, ALL OF THOSE BUSINESSES INCLUDING STARBUCKS CAN HAVE AN INGRESS EGRESS OFF OF 663 FOR THIS HAWKINS RUN LOCATION. I UNDERSTAND THAT CONCERN, BUT THERE IS AN ALTERNATIVE EXIT FOR THAT PERSON GOING TO 663.

>> IF HE PULLS IN TO GO TO THE GYM THEN DROPS THE KID OFF OR PICKS THE KID UP THAT'S THE WAY TO GET BACK TO THE SCHOOL.

WHATEVER THE THING IS THAT PERSON IS DOING.

[00:55:05]

THAT NEIGHBORHOOD. >> WE HAVEN'T SEEN THE FULL IMPACT OF THE TRAFFIC ON HAWKINS.

WE HAVEN'T TOUCHED THE IMPACT OF HAWKINS WHEN THAT SCHOOL OPENS.

THE REASON I ASKED WHEN YOU OPENED IS IF I WAS THE NEIGHBOR TO THE SOUTH AND SOMEONE PULLS IN WITH THEIR BIG MUFFLER AT 5:00 A.M. IN THE MORNING, THAT'S A REAL CONCERN.

>> I WOULD SAY THAT THAT WOULD BE UNFAIR BECAUSE 7/ELEVEN IS

RIGHT NEXT DOOR. >> BUT THEY'RE NOT SITTING THERE

IDLING. >> BUT PEOPLE PULL IN AND OUT OF GAS PUMPS ALL THE TIME. THIS WAS ZONED TO BE WHAT IT WAS BEFORE THE HOUSES WERE THERE. THAT'S WHY I ASKED THE QUESTION ABOUT, YOU ALL KNOW I KNEW THERE WAS A MASONRY WALL THERE, BUT I ASKED, THAT'S AN 8-FOOT MASONRY WALL BEHIND THAT STARBUCKS.

I'M GOING TO BE HONEST, THAT'S ROASTED BEANERY.

BECAUSE THE DRIVE-THRU AT STARBUCKS ON THE OTHER SIDE OF TOWN TAKES FAR TOO LONG. UNLESS IT'S EMPTY, I'M NOT GOING. SO I LOOK AT IT LIKE THIS, I SEE A STORE DESIGNED IN 2007, I SEE A STORE BEING DESIGNED FOR IMPLEMENTATION IN PROBABLY 2022 AT THIS POINT.

I SEE IMPROVEMENTS, I SEE CHANGES IN FLOW, CHANGES IN PATTERN, INCREASE IN QUEUEING, I SEE IMPROVEMENT.

SO I FEEL LIKE WE MAY BE PUTTING THE BURDEN OF THE FAILURES OF THE PREVIOUS STORE ON THE DEVELOPER OF WHAT SHOULD BE THE NEW AND IMPROVED STORE. AND THAT COULD BE UNFAIR.

IF WE HAD ONE GAS STATION IN TOWN, THE LINE WOULD BE OUT AND AROUND THE BLOCK TEN TIMES OVER. AND WE'D HATE IT, BUT WE HAVE 15 GAS STATIONS IN TOWN BECAUSE THAT'S WHAT IT TAKES TO SERVICE THE TOWN. NOW THERE'S PEOPLE WHO DON'T LIKE STARBUCKS, THERE'S PEOPLE WHO DON'T LIKE COFFEE, THERE'S PEOPLE THAT DON'T START THEIR DAY WITHOUT IT.

I THINK THERE SHOULD BE FOUR MORE STARBUCKS AND IF NOT STARBUCKS MAKE THEM WHATEVER KIND OF COFFEE YOU WANT.

BUT IF THAT'S WHAT IT TAKES TO SERVICE A TOWN, THEN THAT'S WHAT WE SHOULD BE LOOKING AT. I THINK FROM THE PRESENTATION, THEY ARE ADDRESSING THE MOST PREVALENT CONCERNS, SPECIFICALLY AND I WILL, I'LL TAKE CREDIT FOR IT, I REVIEWED THIS AFTER P&Z AND BEFORE THIS EVENING AND I ASKED THE QUESTION WHAT IS THE CONCERN, WHAT IS THE OPPOSITION FOR THE RESIDENTS IMMEDIATELY ON THE OTHER SIDE OF THAT WALL AND IT WAS THE DUMPSTER.

SO I CALLED AND I SAID IS THERE ANY WAY THAT WE CAN LOOK AT MOVING THE DUMPSTER TO THE OTHER SIDE OF THE PROPERTY.

CAN WE PULL THAT PICTURE UP. AND THE ANSWER OBVIOUSLY AS YOU SEE WAS YES BECAUSE MY THOUGHT WAS, WE ACTUALLY MEASURED IT OUT. HOW FAR IS IT FROM THE CLOSEST RESIDENCE TO THAT DUMPSTER ENCLOSURE.

I BELIEVE IT IS A SIX FEET MASONRY STRUCTURE BEHIND AN 8-FOOT MASONRY WALL. BUT THEY WERE STILL WILLING TO MOVE IT FROM THE LOWER RIGHT HAND CORNER WHERE THOSE THREE PARKING SPOTS ARE NOW OVER TO THE LOWER LEFT HAND CORNER WHICH IS DIRECTLY BEHIND 7/ELEVEN. SO I THINK THEY'RE DOING WHAT WE WOULD WANT AS A CITY TO PARTNER WITH US.

NOW I MIGHT NOT AGREE WITH EVERYTHING STARBUCKS LIKES, BUT YOU KNOW WHAT THAT'S NOT WHAT WE'RE TALKING ABOUT HERE.

WE'RE TALKING ABOUT GETTING COFFEE TO PEOPLE WHO WANT

COFFEE. >> I DON'T DRINK COFFEE SO I

DON'T GO THERE. >> TRENTON, I FORGOT DURING ALL OF THE MATHEMATICAL WORD PROBLEMS. WHAT IS THE CURRENT USE FOR THIS PROPERTY? WHAT DOES THE COMMUNITY CURRENTLY ALLOW?

>> ANYTHING PERMITTED BY RIGHT THROUGH THE COMMUNITY RETAIL OR ANYTHING PERMITTED THROUGH AN SDP.

>> ANYTHING PERMITTED THROUGH AN SDP?

>> YEAH. >> FOR SOME REASON I THOUGHT IT

WAS OFFICE. >> OFFICE IS LOCATED MORE TO THE

EAST. >> AND SO BECAUSE IT'S OVER 1,000 SQUARE FEET, THEREFORE THEY HAVE TO REQUEST.

>> CORRECT. >> THAT CHANGES THE WAY I LOOK

AT IT. >> IT WAS 2016 OR 15 THAT THEY

[01:00:01]

>> I WOULD HAVE PREFERRED THAT STAY OFFICE BECAUSE YOU CAN ALREADY DO THAT BY RIGHT. BUT SINCE IT'S ALREADY ALLOWED FOR RETAIL, I AGREE WITH WHAT WALTER SAID EARLIER.

I LOVE THE SITE PLAN, I FEEL LIKE THEY'VE ADDRESSED EVERY ISSUE. NOT WITH THE LAND USE, BUT THEY

CAN DO THAT ANYWAY. >> JUSTIN, DO YOU HAVE ANY OTHER COMMENTS? ANY OTHER QUESTIONS OF STAFF OR THE APPLICANT? DO WE HAVE A MOTION TO CLOSE THE

HEARING. >> MOTION TO CLOSE THE PUBLIC

HEARING. >> MOTION AND SECONDED, PLEASE VOTE. DISCUSSION, PLEASE.

>> I TAKE A DIFFERENT POINT OF VIEW.

I DON'T THINK THEY'VE ADDRESSED THE QUEUEING PROBLEM AND I THINK IT'S GOING TO IMPACT ON HAWKINS RUN.

WE HAVE AN UNCONTROLLED INTERSECTION AND WE HAVE A

SCHOOL COMING. >> I AGREE WITH THAT.

>> SO IT WILL BE AWHILE BEFORE WE SEE IT ALL WORKS ITS WAY OUT.

>> HERE'S MY ONLY QUESTION ON THE QUEUEING.

RIGHT ACROSS THE STREET ON THE NORTH SIDE IT'S ALLOWED BY RIGHT

TO HAVE A RESTAURANT, I BELIEVE. >> THIS LOT IS ALLOWED TO HAVE A

RESTAURANT AND A DRIVE-THRU. >> SO WHAT'S THE DIFFERENCE BETWEEN THE TRAFFIC IMPACT ON THE NORTH AND SOUTH IF IT'S THE

SAME ROUTE. >> BUT YOU HAVE A WHOLE LARGE PARKING LOT AND MULTIPLE ENTRY AND EXIT POINTS TO ABSORB THE CARS AND YOU ALSO HAVE A LIGHT DOWN THERE.

>> IS THIS STREET, IS IT SUPPOSED TO COME ALL THE WAY

DOWN? >> I BELIEVE IT CAN SERVE THESE

OFFICES. >> THAT'S THE ONLY WAY IN AND

OUT? >> YEAH AND YOU COULD GO AROUND.

>> I THINK THEY MEET THE DISTANCE REQUIREMENT FOR BUSINESSES TO HAVE A RIGHT IN RIGHT OUT.

>> I'LL JUST PLAY THE DEVIL'S ADVOCATE, WHAT IF A MCDONALDS GOES IN RIGHT THERE AND HAS TWO LANES OF TRAFFIC, THEY'VE GOT LOTS OF ROOM WITH THE EXTRA PARKING TO GO AROUND AND EVERYTHING LIKE THAT. THE LOT IS JUST SO SMALL RIGHT THERE IS THE ONLY THING I'VE GOT A PROBLEM WITH.

>> YEAH, BUT WE ALREADY HAVE IT ZONED FOR RETAIL WITH A DRIVE-THRU. IT DOESN'T MATTER IF IT'S STARBUCKS, MCDONALDS, WHATABURGER, THEY'RE ALLOWED TO PUT A DRIVE-THRU BY RIGHT. WE'RE GOING TO HAVE A QUEUEING

ISSUE BY RIGHT WHATEVER IT IS. >> YOU'RE TALKING ABOUT THE

KROGER AREA? >> NO.

>> I CAN'T FIND ONE THING THAT MAKES THIS PARTICULAR USE AND THIS PARTICULAR DESIGN EXPONENTIALLY FANTASTIC IN A WAY THAT WOULD BE DETRIMENTAL, ANYTHING ELSE CAN COME BACK IN BEHIND IT AND DO THE SAME THING. SO I HONESTLY THINK IT'S BECAUSE OF THE FIRST STORE WE'RE APPREHENSIVE OF THE SECOND STORE AND I THINK THAT THAT'S BEEN ADDRESSED.

AND I SAY WE CAN'T GET A THIRD, A FOURTH, AND A FIFTH STARBUCKS

UNTIL WE GET A SECOND STARBUCKS. >> WE HAVE A SECOND.

>> I WANT TO MAKE SURE I UNDERSTAND IT.

THEY'VE BUILT A SMALL STARBUCKS, IT WAS 900 SQUARE FEET.

>> THE RESTAURANT ONE, THE DRIVE-THRU WOULD BE.

THE DRIVE-THRU WOULD STILL REQUIRE THE SDP.

BUT THE RESTAURANT WOULD BE PERMITTED BY RIGHT.

>> THE RESTAURANT BUT NOT THE DRIVE-THRU.

>> HOW THE ORDINANCE IS CURRENTLY WRITTEN, NO.

IT WOULD BE REQUIRED TO GO THROUGH AN SDP PROCESS.

>> WHAT IS THE SQUARE FOOTAGE OF THE ACTUAL FACILITY, THE ACTUAL BUILDING COMPARED TO THE ONE DOWN BY WALMART?

>> THIS ONE IS 2200 SQUARE FEET. >> SIMILAR SEATING CAPACITY I

GUESS IS MY QUESTION? >> I BELIEVE THIS ONE ACTUALLY HAS LESS SEATING CAPACITY, OH IS IT MORE? I'D REFER BACK TO THEM. I DON'T HAVE THE NUMBERS FOR THE

OTHER ONE. >> BUT IT IS MORE?

>> THIS ONE HAS OUTDOOR SEATING IN HERE AS WELL.

[01:05:10]

>> I'D DEFER BACK TO THE APPLICANT.

>> WOULD THE APPLICANT COME BACK UP, PLEASE.

THE QUESTION IS THE SEATING YOU HAVE.

>> SO INSIDE SEATING IS ROUGHLY 45 SEATS, THE INSIDE.

AND THERE'S APPROXIMATELY 15 TO 20 SEATS ON THE OUTSIDE.

>> AND WHAT'S THE CURRENT SEATS IN THE EXISTING BUILDING?

>> WE COULD TELL YOU THE SQUARE FOOTAGE IN TERMS OF THE SEATING

ON THE INSIDE -- >> IT'S HALF.

>> IT'S A MUCH SMALLER BUILDING. IT'S CONSTRAINED.

>> THE OUTDOOR SEATING AREAS FOR BOTH ARE ROUGHLY THE SAME SIZE.

>> OKAY. ANY OTHER QUESTIONS? OKAY, THANK YOU. DO YOU HAVE MORE QUESTIONS FOR STAFF OR DISCUSSION. WE CLOSE.

YES, BUT WE HAVEN'T. >> JUST TO BE CLEAR STAFF IS CHANGING ITS RECOMMENDATION BASED OFF OF THE CHANGES BETWEEN THE P&Z PRESENTATION AND THIS CURRENT PRESENTATION FROM DENIAL

TO APPROVAL? >> CORRECT.

>> AND WHAT WAS THE MAIN REASON FOR THE CHANGE OF YOUR --

>> I THINK WITH UNDERSTANDING OF HOW THE QUEUEING WORKS, SHOWING THE DIFFERENT SITE PLAN CHANGES FROM THE POINT OF ORDER TO THE POINT OF PICK UP, THAT BEING EXTENDED, THEY APPROVED THE ARCHITECTURAL DESIGN OF THE STRUCTURE.

THEY REMOVED CERTAIN PARKING SPACES ON THE SOUTH, THERE'S ADDITIONAL PARKING SPACES RIGHT HERE.

THEY ACTUALLY INCREASED THE NUMBER OF PARKING SPACES WITH THE DUMPSTER BEING RIGHT HERE. THAT WILL ALLOW THE DUMP TRUCK TO COME IN WITH BETTER ACCESS. I THINK DUE TO THOSE REASONINGS,

WE RECOMMEND APPROVAL. >> MOVE TO APPROVE AS PRESENTED.

>> IS THAT WITH THE NEW SITE PLAN?

>> YEAH. >> WE HAVE A MOTION TO APPROVE AS PRESENTED AND SECONDED. STAFF'S RECOMMENDATION IS NOW APPROVAL. AND P&Z WITH THE CHANGES HAVE BEEN MADE. WE HAVE A MOTION TO APPROVE AS PRESENTED. SECONDED.

PLEASE VOTE. THE ITEM PASSES 4-3 AS PRESENTED. NOW TO THE REGULAR AGENDA.

[2021-309]

THE PROPERTY IS LOCATED ON MCALPIN ROAD.

>> THIS IS A REGULAR AGENDA ITEM, IT DOES NOT REQUIRE A PUBLIC HEARING. IN ACCORDANCE WITH SECTION 6.1413 IN SUBDIVISION REGULATIONS, ANY TIME AN INDIVIDUAL LOT SINGLE FAMILY RESIDENTIAL HOME REQUESTS ACCESS ONTO A CERTAIN TYPE OF ROAD, APPROVAL BY CITY COUNCIL AND PLANNING AND ZONING COMMISSION IS REQUIRED.

THIS IS THE SUBJECT PROPERTY RIGHT HERE THAT ACTUALLY ABUTS.

THEY ARE REQUESTING A DRIVE ACCESS.

STAFF DOES RECOMMEND APPROVAL WITH THE FOLLOWING CONDITIONS, THAT IT BE APPROVED BY THE CITY ENGINEER TO LINE UP WITH THE PROPERTIES ACROSS THE STREET. AND THAT THEY ARE REQUIRED TO MEET THE STANDARD CONSTRUCTION DETAILS OF THE CITY OF MIDLOTHIAN. AND WE DO RECOMMEND APPROVAL AND CAN ANSWER ANY QUESTIONS AT THIS TIME.

>> THEY DON'T HAVE TO DEDICATE ANY RIGHT OF WAY FOR THE

EXPANSION? >> IT'S NOT PLATTED YET?

>> AT THIS POINT IN TIME, IT IS NOT PLATTED.

IT'S BEEN LEGALLY SUBDIVIDED THROUGH MEETS AND BOUNDS.

>> THANK YOU. >> WE HAVE A MOTION TO APPROVE, SECONDED. PLEASE VOTE.

ITEM PASSES 7-0. THANK YOU.

[2021-310]

[01:10:02]

>> THANK YOU. >> ITEM 2021-310, RECEIVE A WATER AND WASTEWATER RATE STUDY AND FINANCIAL PLAN PRESENTATION FROM WILLDAN FINANCIAL SERVICES AND DIRECT STAFF ACCORDINGLY.

>> THANK YOU. GOOD EVENING, COUNCIL.

I'M GOING TO TURN THIS OVER TO DAN JACKSON WITH WILLDAN FINANCIAL SERVICES, BUT DAN HAS BEEN INVOLVED WITH OUR RATE STUDY FOR 20 PLUS YEARS SO DOING RATE STUDIES FOR THE CITY OF MIDLOTHIAN. BUT IT WAS 2016 WHEN THE LAST RATES WERE ADOPTED BY THE COUNCIL AND THE RATES WERE PUT IN PLACE BY THE COUNCIL. SO DAN WILL PRESENT HIS PRESENTATION THIS EVENING AND THEN WE'LL HAVE A CHANCE TO DISCUSS AND COUNCIL WILL GIVE US DIRECTION AFTER THAT.

>> THANK YOU, MAYOR AND MEMBERS OF THE COUNCIL.

MY NAME IS DAN JACKSON, VICE PRESIDENT OF WILLDAN FINANCIAL SERVICES. I'M HERE TO PRESENT THE RESULTS OF OUR LATEST WATER AND WASTEWATER RATE STUDY FOR THE CITY. IT'S BEEN MY PRIVILEGE AND HONOR TO BE THE CITY'S WATER AND WASTEWATER RATE CONSULTANT FOR THE LAST 23 YEARS. I APPRECIATE THE CONFIDENCE YOU HAVE SHOWN ME OVER AND I HOPE I CAN CONTINUE TO EARN YOUR CONFIDENCE. I'M GOING TO START BY TALKING A LITTLE BIT ABOUT YOUR CURRENT RATES AND WHAT'S HAPPENING IN THE INDUSTRY, THEN I'M GOING TO TALK ABOUT YOUR CURRENT AND FORECAST CUSTOMERS, AND YOUR CURRENT AND FORECAST VOLUMES AND YOUR CURRENT AND FORECAST COSTS AND THEN I'LL WRAP IT UP BY PRESENTING OUR PROPOSAL FOR A NEW LONG TERM WATER AND WASTEWATER RATE PLAN FOR THE CITY.

SO I ALWAYS LIKE TO START OFF PRESENTATIONS OF THIS NATURE BY TALKING A LITTLE BIT ABOUT WHAT'S GOING ON IN THE WATER INDUSTRY IN GENERAL. I THINK THAT'S IMPORTANT FOR DECISION MAKERS LIKE YOU TO UNDERSTAND THAT THERE ARE FORCES AND DYNAMICS AT WORK IN THE WATER INDUSTRY INFLUENCING WHAT WATER COSTS AND HOW YOU SHOULD APPROPRIATELY SET WATER POLICY FOR CITIES LIKE MIDLOTHIAN. FOR EXAMPLE, WATER COSTS ARE GOING UP ALL OVER THE COUNTRY. THEY'RE GOING UP HERE IN THE STATE OF TEXAS, THEY'RE GOING UP ACROSS THE NATION, THEY'RE GOING UP ACROSS THE WORLD. AS A MATTER OF FACT THE AVERAGE WATER AND CITY UTILITY HAVE BEEN RAISING THEIR RATES FOR THE PAST DECADE AND IT'S EXPECTED TO CONTINUE.

THE AMERICAN WATERWORKS ASSOCIATION ANTICIPATES WATER RATES ARE GOING TO TRIPLE IN THE NEXT 15 YEARS.

WE'RE FORTUNATE AS AMERICANS TO HAVE ACCESS TO RUNNING WATER, 70% OF THE WORLD DOES NOT, WE DO.

HOWEVER THAT WATER IS SIMPLY GOING TO BE MORE EXPENSIVE IN FUTURE YEARS. WHY IS THAT? WHY ARE COSTS GOING UP? WELL WATER IS A BUSINESS.

YOU PRODUCE A PRODUCT. WATER IS A PRODUCT JUST LIKE A MCDONALDS HAMBURGER OR A GALLON OF GASOLINE OR ANYTHING ELSE.

SO AS A BUSINESS, WHEN YOUR COSTS GO UP, YOU HAVE NO CHOICE BUT TO PASS THOSE COSTS THROUGH TO YOUR ULTIMATE CUSTOMER.

WHY DO THE COSTS GO UP? ONE REASON IS DUE TO INFLATION.

COST OF EVERYTHING GOES UP BY 3% A YEAR JUST DUE TO INFLATION.

MANY OF THE COSTS OF RUNNING A WATER SYSTEM ARE GOING UP AT RATES EVEN HIGHER THAN INFLATION.

AND IT COSTS AN AWFUL LOT OF MONEY TO BUILD AND MAINTAIN A WATER SYSTEM. IT COSTS MILLIONS OF DOLLARS TO BUILD THOSE PIPES, TANKS, AND WATER TREATMENT PLANTS, AND LIKE ANY OTHER ASSET, THEY WEAR OUT OVER TIME.

IT IS ADMIRABLE FOR ANY CITY TO WANT TO KEEP ITS RATES AS LOW AS POSSIBLE. THAT IS AN ADMIRABLE GOAL.

HOWEVER, THE WELL MANAGED CITY HAS TO BALANCE THE DESIRE TO KEEP RATES LOW WITH THE NEED TO INVEST IN YOUR SYSTEM TO ENSURE THAT IT CONTINUES TO OPERATE PROPERLY.

FINALLY MANY UTILITIES DON'T DO THAT.

IN FACT 30% TO 40% OF UTILITIES CHARGE RATES THAT DON'T COVER THEIR COSTS. SO JUST BECAUSE A NEIGHBORING UTILITY'S RATES ARE LOWER THAN YOURS, DOESN'T NECESSARILY MEAN THAT THEY RUN A MORE EFFICIENT OPERATION.

IT MIGHT MEAN THAT THEY'RE USING THE GENERAL FUND TO SUBSIDIZE THEIR WATER AND SEWER RATES. WELL IT'S NOT ILLEGAL, BUT IT'S NOT NECESSARILY GOOD PRACTICE BECAUSE EVERY DOLLAR THAT YOU SPEND SUBSIDIZED WATER RATES IS A DOLLAR THAT YOU DON'T HAVE FOR OTHER VITAL CITY SERVICES LIKE POLICE, FIRE, PARKS AND REC, ADMINISTRATION, AND ALL OF THAT. SO THE CITY OF MIDLOTHIAN DOES NOT SUBSIDIZE ITS WATER RATES AND NEVER HAS AS LONG AS I'VE BEEN ITS RATE CONSULTANT. LET'S TALK ABOUT THE CITY OF MIDLOTHIAN SPECIFICALLY. IN THE PAST TWO DECADES, YOU AS A CITY HAVE MADE A SERIES OF VERY DIFFICULT DECISIONS.

YOU HAVE DONE RATE ADJUSTMENTS, YOU HAVE SET NEW RATE POLICY, THAT'S NOT AN EASY THING, BECAUSE YOU KNOW WHAT, THOSE DECISIONS ARE NOT PARTICULARLY POPULAR.

NOBODY WANTS TO PAY MORE FOR ANYTHING AT ANY TIME FOR ANY REASON. UNFORTUNATELY COSTS DO GO UP AND YOU HAVE MADE THE DIFFICULT DECISION TO PASS THOSE COSTS THROUGH TO YOUR RATE PAYERS. AS A RESULT OF THAT, YOUR WATER AND SEWER FUND IS RIGHT NOW IN VERY SOUND FINANCIAL CONDITION.

BELIEVE ME, WE WORK FOR A LOT OF CITIES, WHOSE WATER UTILITIES

[01:15:01]

HOW DO PEOPLE PAY FOR IT? YOUR AVERAGE RESIDENTIAL CUSTOMER PAYS FOR WATER IN TWO WAYS, THEY PAY A MINIMUM CHARGE EVERY MONTH AND THEN A RATE FOR A THOUSAND GALLONS.

YOUR TYPICAL RESIDENTIAL CUSTOMER HAVE A STANDARD METER THAT GOES ON A HOME. THEY PAY A MINIMUM CHARGE OF $33.03 A MONTH FOR THAT SERVICE. THEY GET THE FIRST 2,000 GALLONS OF WATER INCLUDED IN THAT. ABOVE THAT THEY PAY A VOLUMETRIC RATE THAT INCREASES WITH THE VOLUME OF WATER THEY USE.

THE IDEA IS IT ENCOURAGES PEOPLE TO USE WATER PRUDENTLY.

WATER IS A FUNNY BUSINESS, HERE YOU'RE PRODUCING AND SELLING A PRODUCT YOU WANT YOUR CUSTOMERS NOT TO BUY.

THE REASON IS WE WANT PEOPLE TO CONSERVE WATER AND USE WATER ONLY WHEN NECESSARY. THAT'S WHY YOU SET THIS INVERTED BLOCK OR CONSERVATION RATE STRUCTURE.

COMMERCIAL CUSTOMERS PAY A SIMILAR MINIMUM CHARGE.

IF YOU HAVE A HIGHER METER YOU PAY A LARGER RATE.

AND THEY PAY A VOLUMETRIC RATE FIXED.

REASONS BEING THEY DON'T HAVE THE SAME ABILITY TO CONSERVE WATER AS RESIDENCES DO. ON THE WASTEWATER SIDE, PEOPLE PAY A MINIMUM CHARGE AT $29. IT'S OFTEN BEEN ASKED WHY IS YOUR WASTEWATER RATE HIGHER THAN YOUR WATER RATE, SHOULDN'T IT BE THE OTHER WAY AROUND? NO, AND HERE'S THE REASON WHY.

IMAGINE I'M STANDING BEFORE YOU AND IN MY BUCKET I HAVE A BUCKET OF RAW WATER AND RAW SEWAGE, WHICH ONE DO YOU THINK IT COSTS MORE TO TREAT? THAT'S THE REASON.

IN PRIOR YEARS BACK WHEN I WAS A KID A LONG, LONG TIME AGO WASTEWATER TREATMENT CONSISTED OF DUMPING RAW SEWAGE IN THE TRINITY RIVER, THAT WAS VERY CHEAP BUT IT DIDN'T DO A WHOLE LOT OF GOOD FOR THE TRINITY RIVER.

NOW YOU HAVE THESE WASTEWATER TREATMENT PLANTS THAT THE SEWAGE GOES IN AND WHAT COMES OUT IS SO PURE, YOU'RE SUPPOSED TO BE ABLE TO DRINK IT. I'VE NEVER TESTED THAT THEORY, BUT THAT'S THESE WHAT PEOPLE SAY.

THE THING IS THAT'S GREAT FOR THE ENVIRONMENT BUT IT COSTS A LOT OF MONEY TO BUILD A WASTEWATER TREATMENT PLANT.

THAT'S WHY WASTEWATER COSTS HAVE BECOME GREATER THAN WATER COSTS AND WILL CONTINUE TO BE SO IN THE FUTURE.

HOW DO YOUR RATES COMPARE TO OTHER CITIES? THAT'S ANOTHER COMMON QUESTION THAT'S ASKED.

THIS PART RIGHT HERE COMPARES A RESIDENTIAL CUSTOMER WHO USES 10,000 GALLONS OF WATER AND 5,000 GALLONS OF WASTEWATER IN THE CITY OF MIDLOTHIAN WITH OTHER CITIES IN THE DFW AREA AND THE STATE OF TEXAS. SOMEBODY USES THIS AMOUNT OF WATER IN MIDLOTHIAN PAYS ABOUT $142 A MONTH.

AS YOU CAN SEE THAT'S A LITTLE HIGHER THAN SOME OF YOUR NEIGHBORS. IT'S A LITTLE HIGHER THAN THE STATE AVERAGE, BUT IT'S VERY CONSISTENT WITH WHAT IN THIS PART OF ELLIS COUNTY PEOPLE ARE PAYING FOR WATER AND SEWER SERVICE. REMEMBER WHEN WE COMPARE, TEXAS IS AN AWFULLY BIG STATE, SO THERE'S OVER 1,000 CITIES IN THE STATE OF TEXAS. SO YES, SOME HAVE HIGHER RATES, SOME HAVE LOWER RATES. WATER IS MORE EXPENSIVE HERE IN ELLIS COUNTY. AND ALSO YOU HAVE JOE POOL LAKE WHICH IS A WATER RESOURCE YOU WILL HAVE FOR DECADES IN THE FUTURE THAT MANY OTHER CITIES DON'T HAVE.

SO YES, YOUR RATES ARE A TAD HIGHER THAN THE STATE AVERAGE, BUT THEY'RE CERTAINLY COMPARABLE TO MANY OTHER CITIES IN THIS AREA. YOU'RE WITHIN A FEW DOLLARS OF DESOTO AND MOUNTAIN PEAK AND CEDAR HILL AND OTHER UTILITIES OF THAT NATURE. AND ALSO KEEP IN MIND, A LOT OF CITIES CHARGE RATES THAT ARE BELOW THEIR COSTS.

OKAY, WHEN YOU DO A LONG TERM WATER AND WASTEWATER RATE PLAN, ONE OF THE KEYS YOU HAVE TO CONSIDER IS THAT YOUR UTILITY IS GOING TO BE DIFFERENT IN THE FUTURE THAN IT IS IN THE PRESENT. YOU HAVE TO TAKE THAT INTO CONSIDERATION WHEN YOU DO THE LONG TERM PLAN.

THE CITY HAS HAD A SPECTACULAR AMOUNT OF GROWTH IN THE LAST 20 YEARS. IN THE YEAR 2003, YOU HAD ABOUT 3,000 CUSTOMER ACCOUNTS. TODAY YOU'VE GOT 5746, ALMOST DOUBLE THE AMOUNT. AND AS YOU CAN SEE YOU'RE EXPECTED TO HIT AS MANY AS 7200 ACCOUNTS BY THE YEAR 2030.

THIS CHART RIGHT HERE IS A FORECAST OF WATER CONSUMPTION.

RATE GUYS LIKE US LOVE CHARTS LIKE THIS BECAUSE IT NOT ONLY SHOWS THE GENERAL GROWTH IN WATER CONSUMPTION OVER THE YEARS, BUT ALSO IT'S SHOWING WHO'S ACTUALLY USING THE WATER.

THE BLUE IS YOUR RETAIL COMMERCE, AS YOU CAN SEE YOU'RE EXPECTED TO GET SOME SOLID RETAIL GROWTH IN THE NEXT SEVERAL YEARS. THE RED IS WHOLESALE CUSTOMERS, THAT'S GOING TO BE A BIGGER AND BIGGER PORTION.

AND THEN YOU'VE GOT GRAND PRAIRIE AND ROCKETT.

[01:20:03]

SO FOR THAT REASON, HAVING YOUR WHOLESALE CUSTOMERS, HAVING ROCKETT, HAVING GRAND PRAIRIE, HAVING THESE OTHER LARGE CUSTOMERS HAS BEEN EXTRAORDINARILY BENEFICIAL FOR THE CITY OF MIDLOTHIAN, BECAUSE IT HAS ENABLED YOU TO CHARGE AN OVERALL LESSER RATE TO YOUR RETAIL CUSTOMERS BECAUSE YOUR WHOLESALE CUSTOMERS ARE PICKING UP SOME OF THE COSTS.

AGAIN BULK COMMODITY. OKAY.

WE'VE TALKED ABOUT YOUR USAGE. NOW LET'S TALK A LITTLE BIT ABOUT THE FINANCIAL PLAN. HOW DO WE ANTICIPATE COSTS INCREASING OVER THE NEXT SEVERAL YEARS? WELL OBVIOUSLY WOE'RE GOING TO EXPECT MOST OF YOUR COSTS WILL GO UP. COST OF EVERYTHING GOES UP 3% A YEAR. SO OUR COMPREHENSIVE RATE MODEL TAKES THAT INTO CONSIDERATION, TAKES AN INFLATION FACTOR INTO CONSIDERATION. WE ALSO CONSIDER THE FACT THAT SOME OF YOUR EXPENSES ARE GOING TO GO UP AT HIGHER RATES.

OUR MODEL HAS THE ABILITY TO TAKE EVERY EXPENSE IN YOUR BUDGET AND INCREASE IT BY AN ACCELERATION FACTOR AND SOME FACTORS INCREASE AT HIGHER RATES THAN OTHERS.

AND WE TAKE THAT INTO CONSIDERATION.

TRWD, TARRANT REGIONAL WATER DISTRICT, THEIR RAW WATER COSTS YOU PAY FOR ARE GOING TO CONTINUE TO INCREASE BY ABOUT 3% A YEAR. BUT THERE ARE TWO MAJOR FACTORS DRIVING THE BUS HERE IN TERMS OF YOUR LONG-TERM FINANCES AND YOUR LONG-TERM RATE PLAN. THE FIRST IS HOW YOU FUND YOUR CAPITAL IMPROVEMENTS. THE INVESTMENTS YOU MAKE IN ENSURING YOU CONTINUE TO PROVIDE A HIGH LEVEL OF SERVICE.

AND THE SECOND IS TRA, THESE INCREASES WHICH ARE GOING TO BE PRETTY SIGNIFICANT IN THE COMING YEARS.

LET'S FIRST TALK ABOUT YOUR CAPITAL IMPROVEMENTS.

THE CITY IS FORECASTING THE NEED TO FUND ABOUT $44 MILLION IN CAPITAL IMPROVEMENTS OVER THE NEXT FIVE YEARS.

AGAIN, IT'S CRITICAL, COSTS A LOT OF MONEY TO BUILD AND MAINTAIN A SYSTEM AND COSTS A LOT OF MONEY TO REPLACE THESE LINES AND OTHER ASSETS AS THEY WEAR OUT.

BUT IF YOU DON'T DO IT, YOU'LL RUN THE RISK OF DETERIORATING THE QUALITY OF YOUR SERVICE. IT'S SORT OF LIKE THINKING I CAN SAVE SOME MONEY IF I DON'T CHANGE THE OIL IN MY CAR, I CAN CHANGE $100 BY NOT DOING THAT. SURE, YOU CAN SAVE THAT, BUT A YEAR LATER, YOUR ENGINE IS GOING TO BLOW OUT.

THIS INVESTMENT IS NECESSARY TO ENSURE A GOOD QUALITY OF SERVICE. YOU CAN SEE ABOUT 35 MILLION OF WATER, AND ABOUT 8 MILLION OF WASTEWATER.

THIS IS JUST A DELINEATION OF SOME OF THE MAJOR PROJECTS.

I THINK MIKE IS A BETTER PERSON TO TALK ABOUT SOME OF THOSE THAN I WOULD BE. I'M JUST A FINANCE GUY.

SO HOW ARE YOU GOING TO FUND IT? WELL YOU HAVE A SOUND FINANCIAL BALANCE SHEET RIGHT NOW IN YOUR UTILITY FUND.

THAT HAS GIVEN YOU THE ABILITY TO TAKE SOME OF THE MONEY YOU HAVE PUT AWAY AND INVEST IT INTO THE FUTURE.

SO THE FINANCIAL PLAN ASSUMES THAT YOU'RE GOING TO DRAW DOWN YOUR FUND BALANCE BY ABOUT $9 MILLION.

THAT IS GOING TO, YOU'VE BUILT UP THE FUND BALANCE OVER PRIOR YEARS, NOW YOU'RE GOING TO SPEND SOME OF IT TO IMPROVE YOUR SYSTEM AND KEEP YOUR RATES LOWER THAN THEY OTHERWISE WOULD BE.

SECONDLY IMPACT FEES HAVE BEEN A BIG BENEFIT TO YOU.

THAT'S ANOTHER AT LEAST $8 MILLION, MAYBE EVEN MORE THAN THAT. AND THAT'S GOING TO GO INTO A LOT OF THESE IMPROVEMENTS. SO BASICALLY, ALTHOUGH YOU'VE GOT OVER $40 MILLION OF IMPROVEMENTS, YOU'RE ONLY GOING TO NEED TO ISSUE ONE BOND OF ABOUT $14 MILLION, THE REST OF IT YOU'LL BE ABLE TO PAY WITH YOUR ONGOING REVENUES.

YOU'LL BE ABLE TO DO A LOT OF CAPITAL IMPROVEMENTS WITH A MINIMAL ADDITION OF DEBT. I'VE BEEN TELL YOU A LOT OF GOOD NEWS, NOW LET'S TALK ABOUT THE NOT SO GOOD NEWS.

THIS IS THE FORECAST TRA COST OVER THE NEXT TEN YEARS.

TRA IS YOUR PRIMARY SUPPLIER OF WASTEWATER TREATMENT.

THEY DO A LOT OF YOUR WASTEWATER TREATMENT.

THEY HAVE SUGGESTED DOING A SIGNIFICANT AMOUNT OF CAPITAL IMPROVEMENTS IN THEIR SYSTEM. THE CITY OF MIDLOTHIAN PAYS TRA IN TWO WAYS, A DEBT SERVICE PAYMENT TO THEM AND THEN THEY PAY OPERATING COSTS. THE DEBT SERVICE PAYMENTS IS THE DARK GREEN LINE. AS YOU CAN SEE THAT'S EXPECTED TO GO FROM $2 MILLION A YEAR IN THE CURRENT YEAR TO $8 MILLION A YEAR BY 2030. THAT'S A 400% INCREASE OVER THE NEXT TEN YEARS. YOUR OPERATING EXPENSES ARE ALSO EXPECTED TO INCREASE VERY SIGNIFICANTLY.

ON AVERAGE TRA HAS ANNOUNCED THE INTENTION TO DO ABOUT 11% ANNUAL INCREASES IN THE COST OF TREATMENT.

THAT IS A COST THAT UNFORTUNATELY HAS TO FLOW THROUGH TO YOUR CUSTOMERS. NOW KEEP THIS IN MIND, THIS IS THEIR INTENTION. ARE THEY ACTUALLY GOING TO DO IT? LET'S WAIT AND SEE.

[01:25:02]

AND AS YOU CAN SEE IT'S FORECAST TO GO STEADILY UPWARDS OVER THE NEXT TEN YEARS. THE SAME THING IS TRUE WITH WASTEWATER ONLY AT A HIGHER LEVEL.

WASTEWATER IS EXPECTED TO INCREASE FROM ABOUT $9 MILLION TO ABOUT $19 MILLION BY THE YEAR 2030.

SO WE KNOW OUR COSTS ARE GOING UP, SO LET'S SEE HOW WE ADDRESS THIS. WE HAVE A COMPREHENSIVE PLAN THAT WE WOULD LIKE TO PROPOSE FOR YOU TO CONSIDER.

WE'RE NOT ASKING YOU TO MAKE A DECISION TONIGHT BECAUSE OF ALL OF THE INFORMATION WE'RE PROVIDING TO YOU.

HOWEVER THIS IS OUR PROPOSAL. FIRST YOUR WATER RATES ARE IN VERY GOOD SHAPE RIGHT NOW. WE ARE PROPOSING THAT YOU DO NO INCREASE IN YOUR RETAIL WATER RATES FOR THE NEXT FIVE YEARS.

WE THINK YOUR WATER RATES RIGHT NOW GIVEN THE GROWTH THAT YOU'RE EXPECTED TO GET AND GIVEN WHERE YOUR REVENUES ARE RIGHT NOW, WE BELIEVE YOU DO NOT NEED TO DO A RETAIL WATER RATE INCREASE.

HOWEVER YOUR WHOLESALE WATER RATES WE RECOMMEND YOU DO A SERIES OF INCREASES. YOUR WHOLESALE RATES HAVE BEEN A LITTLE BIT BELOW COST IN RECENT YEARS FOR A LOT OF REASONS SO WE RECOMMEND YOU START INCREASING YOUR WHOLESALE WATER RATES.

WE ALSO RECOMMEND YOU DO A FIVE YEAR ANNUAL WASTEWATER PLAN TO INCREASE YOUR WASTEWATER RATES. AND THE PRIMARY DRIVER IS TO COVER THE TRA COSTS. SO WE RECOMMEND YOU PUT THE FIVE YEAR PLAN IN PLACE AND REVIEW IT EVERY YEAR, BECAUSE IF TRA HAS NOT DONE THE INCREASES THEY ANNOUNCE THE INTENTION OF DOING, IF THEY DELAY SOME OF THESE CAPITAL IMPROVEMENTS OR MAGICALLY FIND A WAY TO NOT INCREASE IT AS MUCH, THEN WE RECOMMEND YOU COME BACK AND SCALE BACK THE FUTURE INCREASES.

IN OTHER WORDS PUT THE PLAN IN PLACE WITH THE ANTICIPATION THEY'RE GOING TO DO WHAT THEY INTEND, AND IF THEY DON'T, YOU CAN ADJUST IT LATER. IF YOU PUT A FIVE YEAR PLAN IN PLACE, YOU CAN AT ANY TIME GO BACK IN AND AMEND IT.

SO WHAT'S THE PLAN? HERE'S THE RETAIL RATE PLAN.

THIS IS A REAL EASY SCHEDULE TO LOOK AT BECAUSE THEY DON'T CHANGE OVER FIVE YEARS. WE RECOMMEND ALL OF YOUR RETAIL WATER RATES STAY THE SAME. HOWEVER THIS IS OUR RETAIL WASTEWATER RATE PLAN. FOR RESIDENTIAL CUSTOMERS WE RECOMMEND DOING AN AVERAGE RATE ADJUSTMENT EACH YEAR IN YOUR BASE CHARGE FIRST YEAR GOING FROM $29.93 TO $32.62 AND UP PROPORTIONATELY EACH OF THE NEXT FOUR YEARS AFTER THAT WITH THE SAME INCREASE IN THE VOLUMETRIC RATE.

YOUR COMMERCIAL CUSTOMERS HAVE A HIGHER BASE CHARGE, BUT THEIR VOLUMETRIC RATE WOULD BE THE SAME AS THE RESIDENTIAL RATE.

WHAT DOES THIS MEAN IN TERMS OF WHAT PEOPLE WOULD PAY? THIS IS PROBABLY THE MOST IMPORTANT CHART IN THE ENTIRE PRESENTATION, BECAUSE THIS DELINEATES WHAT THE IMPACT WOULD BE ON THE AVERAGE RATE PAYER. IF YOU'RE A 5,000 GALLON WATER AND WASTEWATER USER, RIGHT NOW YOU PAY $117 FOR WATER AND SEWER SERVICE. UNDER THIS PLAN, YOUR BILL WOULD GO UP BY ABOUT $6 A MONTH OR 5%. IT WOULD GO UP BY ABOUT 6 TO $7 A MONTH EACH YEAR FOR THE NEXT FOUR YEARS.

SAME THING IS TRUE IF YOU'RE A 10,000 GALLON WATER USER IF YOU ONLY USE 5,000 GALLONS OF WASTEWATER.

SO BASICALLY THE AVERAGE RATE PAYER WOULD SEE AN INCREASE OF SOMEWHERE AROUND $6 A MONTH EACH YEAR FOR THE NEXT FIVE YEARS UNDER THIS PLAN. AND ONCE AGAIN I CAN'T EMPHASIZE THIS ENOUGH, THE PRIMARY PRINCIPAL REASON IS TO FUND THE ANTICIPATED INCREASES IN TRA COSTS.

THERE ARE SOME OF COURSE OPERATING COSTS THAT WOULD HAVE TO GO THROUGH. BUT IF TRA'S COSTS DON'T GO UP, YOUR RATE ADJUSTMENTS WOULD BE FAR LOWER THAN WHAT THEY OTHERWISE WOULD BE. FINALLY WE RECOMMEND THAT THIS IS OUR RECOMMENDATION FOR YOUR ROCKETT AND MOUNTAIN PEAK RATES, GRAND PRAIRIE, VENUS, AND SARDIS RATES.

WE RECOMMEND TAKING IT TO 3.42 IN 2021.

AND EVENTUALLY UP TO 4.61. ROCKETT'S RATE HAS FALLEN BELOW THEIR COST. THIS IS GOING TO HELP MAKE UP SOME OF THE DISTANCE OVER THE NEXT 5 TO 10 YEARS SAME THING IS TRUE WITH YOUR OTHER WHOLESALE CUSTOMERS AS WELL.

[01:30:02]

IN FACT MOST OF THEM WILL REMAIN A LITTLE BIT BELOW THE COST OF SERVICE AS WE PHASE IN THE COST OF SERVICE RATE OVER THE NEXT TEN YEARS. SO YOU'LL BE HAPPY TO KNOW I'M ON MY LAST CHART. GIVEN MY LONG EXPERIENCE HERE WITH MIDLOTHIAN AND THE HUNDREDS OF OTHER UTILITIES I'VE DONE THESE RATE STUDIES FOR, I UNDERSTAND PERFECTLY WELL THAT IT IS NEVER EASY TO ASK PEOPLE TO PAY MORE FOR ANYTHING.

NOBODY WANTS TO PAY MORE FOR ANYTHING AT ANY TIME FOR ANY REASON. WE CERTAINLY UNDERSTAND THAT, BUT AT THE SAME TIME WE STRONGLY RECOMMEND THAT YOU CONSIDER THIS LONG TERM RATE PLAN. WHY? BECAUSE THERE ARE BENEFITS TO THE CITY OF IMPLEMENTING IT.

YOU MIGHT SAY TO YOURSELF HOW IN THE WORLD COULD IT POSSIBLY BE BENEFICIAL TO INCREASE WATER AND SEWER RATES? ONE OF THE BENEFITS OF IMPLEMENTING THIS PLAN IS IT WILL ENABLE YOU TO CONTINUE TO HAVE A FINANCIALLY HEALTHY UTILITY. LIKE I SAID EARLIER, HEALTHY UTILITIES CAN BECOME UNHEALTHY VERY QUICKLY IF YOU DON'T STAY ON TOP OF THESE COST INCREASES. SECONDLY ALL YOU'RE ASKING YOUR RATE PAYERS TO DO IS PAY WHAT IT'S COSTING YOU.

YOU DON'T MAKE A PROFIT ON YOUR WATER SERVICE OR YOUR WASTEWATER SERVICE. YOU DON'T HAVE STOCKHOLDERS, YOU DON'T PAY DIVIDENDS, ALL YOU'RE DOING IS RECOVERING YOUR COSTS, AND AS YOUR COSTS GO UP, YOU'RE JUST PASSING IT THROUGH YOUR RATE PAYERS. IT WILL ENSURE THAT YOUR UTILITY CONTINUES TO DO WHAT YOU'VE ALWAYS DONE, OPERATE ON A STAND ALONE BASIS WITHOUT THE NEED FOR ANY SUBSIDIES FROM THE GENERAL FUND. AND FINALLY BY IMPLEMENTING THIS PLAN, IT WILL ALLOW YOU TO DO $44 MILLION OF CAPITAL IMPROVEMENTS THAT WILL BUILD ASSETS THAT WILL BENEFIT YOU.

THESE ARE ASSETS THAT ARE GOING TO BE AROUND FOR THE NEXT 50 TO 75 YEARS, THEY'RE GOING TO BENEFIT YOU, YOUR CHILDREN, AND EVEN YOUR GRANDCHILDREN AS WELL. IT WILL MAKE THE UTILITY BETTER AND MORE OPERATIONALLY EFFICIENT AND PROVIDE FOR A BETTER QUALITY OF LIFE. WE STRONGLY RECOMMEND YOU CONSIDER THIS LONG TERM RATE PLAN.

THANK YOU FOR LETTING ME RAMBLE ON AS LONG AS I HAVE AND I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE AT THIS TIME.

>> ON THE WHOLESALE CONTRACTS I SEE VENUS IS DOWN TO 4.48, IS IT VARYING BASED OFF USAGE OR BECAUSE OF THE CONTRACTS WE HAVE

IN PLACE WITH THOSE? >> THE RATES FOR THE WHOLESALE CUSTOMERS DIFFER A LITTLE BIT BECAUSE EACH OF THE CUSTOMERS HAVE A DIFFERENT AMOUNT OF THE SYSTEM THAT THEY USE.

THE IDEA BEHIND WHOLESALE RATES IS YOU CHARGE WHAT IS USED AND USEFUL TO THAT CUSTOMER. FOR EXAMPLE ROCKETT AND VENUS AND THESE OTHER CUSTOMERS ONLY USE A PORTION OF YOUR DISTRIBUTION SERVICE SO THEY ONLY PAY FOR A PORTION OF IT.

SOME CUSTOMERS USE MORE OF THE DISTRIBUTION SYSTEM THAN OTHERS.

THAT'S WHY THE RATES DIFFER A LITTLE BIT.

>> SO JUST OUT OF CURIOSITY, WHY WOULDN'T WE HAVE EVEN RAISED THE PRICES ON WHOLESALERS EVEN MORE TO OFFSET THE COSTS ON THE RESIDENTS? BECAUSE THERE'S SOME OF THESE SYSTEMS THAT ARE WELL WATERS THAT UNLESS THEY SPEND SIGNIFICANT MONEY TO INCREASE THEIR SYSTEM, THEY'RE GOING TO

NEED WATER FROM SOMEBODY. >> THE PRIMARY REASON IS RATE SHOCK. I MEAN THE PROBLEM WHERE THEY'RE STARTING TO PAY BELOW THEIR COST, THAT DIDN'T ARISE OVERNIGHT AND IF YOU FIX IT OVERNIGHT, YOU CAUSE A LOT OF BURDEN ON THE OTHER CUSTOMERS AND YOU RUN THE RISK OF THEM REACTING VERY NEGATIVELY TO IT. SO SINCE IT DIDN'T ARISE OVERNIGHT, YOU PHASE IN THE HIGHER RATE.

THAT GIVES THEM THE ABILITY TO ADJUST THEIR BUDGETS.

IT DOESN'T CAUSE A BIG FINANCIAL HIT TO THEM, AND IT ENABLES THEM TO GRADUALLY ADJUST THEIR OWN RATES SO THAT THEY CAN ABSORB THE DIFFERENCE. SO YES, IT DOES TAKE A LITTLE BIT MORE TIME, BUT IT BENEFITS EVERYBODY BECAUSE IT LESSENS THE

PAIN OF THE HIGHER RATE. >> THANK YOU.

IF YOU CAN INDULGE ME ONE SECOND LONGER.

I REALLY APPRECIATE THE FACT THAT THE LAST 23 YEARS, YOU ALL HAVE ALLOWED ME TO BE YOUR CONSULTANT.

I ACTUALLY HAVE A RELATIONSHIP WITH THE CITY OF MIDLOTHIAN THAT PREDATES THAT BECAUSE I USED FOR A CERTAIN CONCRETE AND STEEL COMPANY THAT IS BASED AROUND HERE AS WELL BEFORE I BECAME A WATER CONSULTANT. I APPRECIATE MIDLOTHIAN SO MUCH THAT WHEN I PUBLISHED MY FIRST NOVEL IT WAS PARTIALLY SET HERE IN MIDLOTHIAN. IT'S STILL AVAILABLE ON AMAZON BY THE WAY. SO AS A GESTURE OF APPRECIATION, MY SECOND NOVEL WAS JUST PUBLISHED LAST YEAR AND I'D LIKE TO PRESENT A COPY TO YOU ALL FOR YOUR PUBLIC LIBRARY.

[01:35:03]

AND I HOPE THAT ALL OF YOU GET YOUR OWN COPY AT YOUR OWN

EXPENSE. >> THANK YOU VERY MUCH.

>> COUNCIL, JUST REAL QUICK. ONE THING WE DID, WE DID PRESENT THIS RATE STUDY TO THE UTILITY SUBCOMMITTEE AND ADVISORY BOARD AND THEIR RECOMMENDATION WAS TO BRING IT FORWARD TO COUNCIL FOR CONSIDERATION. THE OTHER THING I WANT TO STRESS, WE WILL LOOK AT ESPECIALLY ON THE WASTEWATER SIDE THE RATES EACH YEAR. AND IF COUNCIL OPTS TO DO THE FIVE YEAR PLAN AND PUT THOSE IN PLACE, THERE'S NOTHING THAT SAYS WE CAN'T BRING THAT BACK AND HOPEFULLY THEY'LL BE REDUCED.

BUT WE WANT TO LOOK AT IT EVERY YEAR ON THE WASTEWATER SIDE TO MAKE SURE WE'RE STAYING IN LINE AND THOSE COSTS ARE COVERING WHAT NEEDS TO BE COVERED AND THAT IF THEY'RE HIGHER THAN WHAT THEY NEED TO BE, THEY CAN BE HOPEFULLY REDUCED EACH YEAR THAT WE'RE LOOKING AT THAT. SO WITH THAT, JUST REALLY LOOKING FOR DIRECTION THAT WE'RE NOT READY TO TAKE ACTION ON THIS, BUT WE WILL BRING AN ORDINANCE BACK TO COUNCIL AT A FUTURE MEETING DATE BASED ON THE DIRECTION WE RECEIVE THIS

EVENING. >> CAN WE EVEN IMPLEMENT SOME OF THESE RATE INCREASES BECAUSE OF SOME CONTRACTS WE HAVE WITH ONE

USER IN PARTICULAR? >> YES, SIR.

BECAUSE IT'S TIED TO THE OTHER ONE, SO IT'S REALLY BASICALLY SET BASED ON A DOLLAR AMOUNT OF WHAT OUR MINIMUM WHOLESALE CUSTOMER IS PAYING AND SO IT'S TIED TO THAT.

SO AS THE RATES ADJUST, THAT WOULD ADJUST ACCORDINGLY AS

WELL. >> OKAY.

>> YES, SIR. >> MOVING ON TO ITEM 2021-311,

[2021-311]

TREATMENT PLANT. >> THIS ACTUALLY TIES INTO WHAT DAN WAS TALKING ABOUT WITH THE EXPANSION OF THE WATER TREATMENT PLANT. BACK IN APRIL WE CAME TO COUNCIL AND WERE LOOKING AT PHASING IN THE NEXT EXPANSION OF OUR AUGER WATER TREATMENT PLANT. THE BIGGEST COMPONENT WAS GOING TO BE COMING IN WITH THE NEW SEDIMENTATION BASINS, THE VACUUM SYSTEM, AND THAT WAS GOING TO BE EXPENSIVE.

SO WE HAD STARTED THE DESIGN ON THAT PARTICULAR PROJECT.

IT'S CURRENTLY UNDERWAY. HOWEVER WHAT WE LOOKED AT IN LOOKING AT NUMBERS OF RECENT PROPERTIES THAT HAVE COME, PLANS THAT HAVE COME FORWARD TO THE ENGINEERING DEPARTMENT, WHEN YOU START LOOKING AT WHAT'S BEEN SUBMITTED AND WHAT'S UNDER CONSTRUCTION, SOME OF THESE HAVE BEEN COMPLETED BUT WHAT ACTUALLY HAS COME IN, AND THIS IS ALL WITHIN OUR WATER SERVICE AREA, LOOKING AT THE TOTAL NUMBER OF LOTS AND THE FACT THAT WE CAN HAVE 202,100 -- 2,000, 2100 LOTS.

WE WANT TO MAKE SURE WE'RE STAYING IN PACE WITH A GROWTH STANDPOINT. WHAT STAFF IS RECOMMENDING IS WE GO AHEAD AND INITIATE THE DESIGN COMPONENT FOR THE MEMBRANE EXPANSION PART OF THE PLANNED EXPANSION RIGHT NOW.

AND AGAIN THIS WILL BE ROLLED INTO WHAT'S BEING DESIGNED NOW.

HOWEVER WE WILL LOOK BACK AND HAVE A CHANCE TO SEE WHAT WE'RE TREATING, WHAT OUR CURRENT DEMAND IS AND BE ABLE TO MAKE THE DECISION, DO WE WANT TO MOVE FORWARD WITH DOING THE MEMBRANE COMPONENT AS WELL AS THE BASINS OR DO WE WANT TO HOLD BACK AND GET THE BASINS GOING AND THEN WE CAN DO THE MEMBRANES AT A LITTLE BIT LATER DATE. THIS WOULD AT LEAST ALLOW FOR THAT DESIGN TO TAKE PLACE AND HAVE EVERYTHING READY TO GO.

THIS IS A MUCH MORE COMPLEX EXPANSION GOING TO THE 24 THAN IT WAS GOING FROM THE EIGHT TO THE 12.

AND SO THERE'S A LOT MORE TO BE DONE ON THAT, AND AGAIN THE MEMBRANES THEMSELVES ARE BEING MANUFACTURED IN AUSTRALIA.

SO THE TIME TO PROCURE, THE TIME TO MANUFACTURE, THE TIME TO SHIP, THERE'S A LOT OF LEAD TIMES.

SO WE WANT TO MAKE SURE WE'RE STAYING AHEAD.

THIS WAS ORIGINALLY BUDGETED AS PART OF THE 2.7 MILLION WE HAD FOR THE DESIGN FOR THE EXPANSION.

WE PULLED IT OUT WHEN WE WERE GOING TO TRY TO PHASE THIS A LITTLE BIT DIFFERENTLY. WE DID TAKE THIS ALSO TO THE UAB IN JUNE. AND THE RECOMMENDATION WAS TO BRING THIS FORWARD TO THE CITY COUNCIL FOR COUNCIL CONSIDERATION AND APPROVAL. WITH THAT I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE. THIS WILL BE WITH THE CURRENT BUILDING, YES, SIR. BUT THE PLAN WAS WE WERE THINKING WE WOULD GO TO 36 AND WE WOULD HAVE TO BUILD ANOTHER

[01:40:03]

AT THIS POINT IN TIME. >> WAS IT BUDGETED?

>> YES, SIR. >> THANK YOU.

I MAKE A MOTION TO APPROVE. >> SECOND.

>> MOTION TO APPROVE, SECONDED. PLEASE VOTE.

PASSES 7-0. >> THANK YOU, COUNCIL.

[2021-312]

>> ITEM 2021-312, CONSIDER AND ACT UPON AGREEMENT FOR PROFESSIONAL SERVICES FOR DESIGN AND RELATED PROFESSIONAL SERVICES FOR MCALPIN ROAD JUST EAST OF FM 663 TO PLAINVIEW ROAD. THE ROADWAY IMPROVEMENT PROJECT WITH KIMLEY-HORN AND ASSOCIATES IN AN AMOUNT NOT TO EXCEED

$970,200. >> THANK YOU, MAYOR AND COUNCIL.

THIS IS ACTUALLY 1 OF THE ROAD PROJECTS THAT WERE APPROVED THIS PAST MAY. AND SO WHAT STAFF IS ASKING IS THAT WE START THE DESIGN WORK NOW.

THIS PROJECT ACTUALLY, THIS WAS THE ORIGINAL, THAT WENT DEAD ON ME. THIS WAS THE ORIGINAL SCOPE THAT WE HAD WHEN WE WENT TO OUR CITIZENS PLANNING GROUP.

AND WHAT WE ENDED UP DOING FROM THE GROUP RECOMMENDATION AND COUNCIL ACTION, WE'RE ACTUALLY GOING FROM JUST TO THE EAST OF 663 TO PLAINVIEW ROAD, NOT ALL THE WAY TO 875.

SO THIS LENGTH IS ACTUALLY DOWN AROUND 10,500 FEET OR SO.

BUT AGAIN THIS WOULD START THE PROCESS.

WE ACTUALLY HAVE TWO OF THE OTHER ROAD PROJECTS.

ONES ALREADY BEEN DESIGNED AND BID AND WE'LL BE BIDDING THAT TO COUNCIL FOR AWARD OF HAWKINS RUN WHICH WAS ONE OF THE MAIN STREET PROJECTS AS WELL AS THE MT. ZION ROAD.

THIS WILL BE BRINGING IN TWO MORE OF THE TOTAL SIX ROADS WE IDENTIFIED AS PART OF THAT PROCESS.

PART OF THE THOUGHT PROCESS ON DOING THIS AS WELL IS THAT THERE'LL BE A NUMBER OF PARCELS WE'LL HAVE TO REQUIRE AND RIGHT OF WAY TAKES TIME. WE WANT TO GET THE DESIGN GOING AND GET THE RIGHT OF WAY NAILED DOWN AND START WORKING ON THE RIGHT OF WAY ACQUISITION SO WE CAN GET PACE AND GET THIS GOING IN A TIMELY MANNER. WHAT WE HAVE HERE AND WHAT WE SHOW FROM THE ACTUAL COST IS ACTUALLY LESS THAN WHAT WE HAD BUDGETED AS PART OF THE BOND PROJECT FOR THIS ON THE DESIGN COMPONENT SIDE. SO WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS COUNCIL MAY HAVE.

>> MOVE TO APPROVE. >> WE HAVE A MOTION TO APPROVE, SECONDED. PLEASE VOTE.

ITEM PASSES 7-0. >> THANK YOU, COUNCIL.

[2021-313]

>> ITEM 2021-313, CONSIDER AND ACT UPON AN AGREEMENT FOR PROFESSIONAL SERVICES FOR DESIGN AND RELATED PROFESSIONAL SERVICES FOR THE MOCKINGBIRD LANE MIDLOTHIAN PARKWAY TO NORTH WALNUT GROVE ROAD ROADWAY IMPROVEMENT PROJECT WITH KIMLEY HORN AND ASSOCIATES IN AN AMOUNT NOT TO EXCEED $975,200.

>> THIS TIES IN WITH WHAT WE HAD DISCUSSED WITH MCALPIN.

THIS IS THE MOCKINGBIRD SIDE. THERE'S A 200-FOOT LENGTH DISTANCE FROM THOSE PROJECTS SO THEY'RE FAIRLY CLOSE IN A DESIGN COMPONENT. AGAIN THIS IS A 2021 APPROVED ROADWAY BOND PROJECT. IT WILL INVOLVE THE ACQUISITION OF RIGHT OF WAY FROM ONWARD ROAD OVER TO THE EAST SIDE IN AREAS MOSTLY HERE. HERE WE HAVE MOST OF THE RIGHT OF WAY IF NOT ALL OF THE RIGHT OF WAY, BUT WE WANT TO START THAT PROCESS TO GET IN WITH THE RIGHT OF WAY DESIGN AND TRY TO KEEP GOING WITH THE PACE OF GETTING THE PROJECT COMPLETED IN A TIMELY MANNER. WITH THAT I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT COUNCIL MAY HAVE.

>> WE HAVE A MOTION TO APPROVE. SECONDED.

PLEASE VOTE. IT PASSES 7-0.

>> THANK YOU, COUNCIL. >> CONSIDER AND ACT UPON

[2021-314]

CLYDE. >> THANK YOU, MAYOR AND COUNCIL, GOOD EVENING. THIS IS A SCOPE OF WORK TO BRING ON THE VIDAURRI MANAGEMENT GROUP TO HELP THE CITY SELECT AN ARCHITECT, NOT ONLY SELECT AN ARCHITECT, BUT ALSO VET THEM OUT AS WELL AS AID US IN NEGOTIATING THE CONTRACT.

SO TODAY WE DID RECEIVE I THINK ABOUT 28 TO 29 RESPONSES TO OUR RFP. THERE WERE 16 FOR CITY HALL AND I BELIEVE 14 OR 15 FOR THE POLICE STATION.

SO THERE'S A LOT OF WORK TO BE DONE.

[01:45:05]

SO WHAT THE CURRENT CONTRACT IS FOR, THE $23,760 IS FOR BOTH BUILDINGS. SO WHAT I'M ASKING YOU TONIGHT IS APPROVE AN AMOUNT UP TO $23,760 FOR US TO ENTER INTO A NEGOTIATION WITH THE VIDAURRI GROUP, IF IT COMES TO FRUITION THAT CARL WANTS TO USE ANOTHER PERSON, WE WOULD REDUCE THIS CONTRACT, IT'S AN HOURLY RATE AND I FORGET WHAT THE HOURLY RATE IS. I THINK IT'S $144 AN HOUR.

$165 AN HOUR. WE'D REDUCE THE RATE, IT WOULD PROBABLY BE ABOUT HALF PRICE. AND THEN WE WOULD VET OUT WHO CARL WANTS TO USE, MAKE SURE IT'S AN EQUIVALENT CONTRACT, ET CETERA, WITH THAT. SO THIS WOULD BE AN AMOUNT UP TO $23,760. SO WHAT THE GOAL WILL BE THAT THE GROUP WILL COME ON AND THEY WILL BE ABLE TO REVIEW AND ANALYZE THE RFQ RESPONSES JUST TO MAKE SURE THEY HAVE COMPARABLE WORK EXPERIENCES AND STAFF CREDENTIALS, FINANCIAL CREDIBILITY. THE FIRM'S GENERAL APPROACH AND METHODOLOGY AND THE ABILITY OF THE FIRM TO ACCOMPLISH, SUCCESSFULLY ACCOMPLISH THE PROJECT BASED ON THE STAFF, RESOURCES, TECHNICAL RESOURCES, ORGANIZATIONAL COMMITMENT.

AFTER THAT, WE'LL SHORTLIST A GROUP OF 3 TO 5 RESPONDENTS, CONDUCT ORAL INTERVIEWS, FINALIZE THE ARCHITECTURAL ENGINEERING BASED SERVICES. AND THEN THEY WILL ASSIST IN NEGOTIATION AND DOCUMENTATION OF THE AIA PROFESSIONAL SERVICES AGREEMENT. SO WITH THAT THE BIG PART OF THIS IS ASSISTING US IN NEGOTIATING THAT CONTRACT, SHIFTING A LOT OF THE RISK FROM THE CITY TO THE ARCHITECT.

THERE WILL BE SEVERAL CONTRACTS IN HERE AS WELL AS THE ARCHITECT. SO IN UTILIZING SOMEBODY TO THIS CAPACITY, IT WILL REALLY HELP US IN THE LONG RUN AS FAR AS ABSORBING RISK AND SHIFTING THAT AROUND AS WELL AS IN THE DESIGN PROCESS OF THESE PROJECTS. WITH THAT, I'LL ANSWER ANY

QUESTIONS. >> I'VE GOT TWO.

>> OKAY. >> FIRST QUESTION, THIS IS BASICALLY TO ALLEVIATE SORT OF THE SITUATION WE HAD WITH THE FIRE STATION WHERE THE CHIEF WAS BASICALLY SPEARHEADING THE SUCCESS OF THE OVERALL BUILD OF THE BUILDING.

IS THAT PRETTY MUCH WHAT WE'RE DOING?

>> YEAH. IT WILL BRING IN ANOTHER COMPONENT. WE DO FEEL LIKE WE HAVE THE CAPACITY HERE TO BUILD THESE BUILDINGS.

WE ARE SPREAD THIN AND A LOT OF THE ECONOMY OF SAVINGS AND ECONOMY OF SCALE HAPPENS AT THE BEGINNING OF ANY PROJECT.

THAT'S WHY WE WANT TO MAKE SURE WE HAVE EVERYBODY ON BOARD THAT WE NEED TO. I WANT EVERYBODY TO BE SURE THIS IS NOT A FULL OWNER'S REP. THIS IS ONLY TO GET US THROUGH THE CONTRACT PORTION OF THIS PROJECT WITH THE ARCHITECT.

>> THAT BEING SAID AND I MEAN NO DISRESPECT, I JUST, IT CAUGHT ME OFF GUARD THAT YOU SAID THERE'S ANOTHER FIRM THAT THE CHIEF WANTS TO USE. NOW I RESPECT THE CHIEF, BUT WE BROUGHT HIM IN AS A POLICE CHIEF, NOT A BUILDING DESIGNER OR CONTRACT NEGOTIATOR. SO WOULDN'T THAT POTENTIAL TO MOVE TO ANOTHER FIRM BEST BE HANDLED BY YOURSELF, CHRIS,

LEGAL, AND FINANCE? >> LET ME RESTATE THAT, WE ARE NOT GOING TO TOTALLY USE ANOTHER FIRM.

WE WOULD STILL UTILIZE THIS FOR THE CITY HALL.

WE'RE STILL PLANNING ON USING THE VIDAURRI GROUP FOR THE CITY

HALL. >> THAT'S MY QUESTION, UNLESS I'M MISSING A COMPONENT, BY WHY WOULD CARL HAVE A SAY AS TO WHAT MANAGEMENT GROUP HELPS NEGOTIATE THE CONTRACT?

THAT WOULD BE LEGAL AND FINANCE. >> LET ME CLARIFY, I AM NOT SURE WHAT HE WANTS TO UTILIZE THIS FIRM FOR.

HE MIGHT BE THINKING HE WANTS TO USE IT AS AN OWNER'S REP.

HE MIGHT NOT BE UNDERSTANDING WE ARE JUST LOOKING FOR AN ARCHITECT. I APOLOGIZE, I NEED TO TALK TO CARL ARE TO CLARIFY THOSE THINGS.

AND WE'LL COME BACK AND CLARIFY THOSE THINGS IF HE WANTS TO GO

WITH ANOTHER GROUP. >> I ONLY ASK BECAUSE THE CHIEF CAME UP HERE AND SAID I NEVER THOUGHT I'D BE DESIGNING A FIRE

[01:50:03]

>> WHEN IS THE WINDOW YOU EXPECT THIS FIRM TO BE USED?

>> HE WILL BEGIN TOMORROW AND ACTUALLY TONIGHT AFTER THIS MEETING. THIS IS JUST THROUGH THE CONTRACT NEGOTIATIONS. SO THE CALENDAR WE BRIEFED YOU ON IS HOPEFULLY IN SEPTEMBER, WE WILL BE ABLE TO BRIEF YOU ON A CONTRACT AND BRING THE CONTRACT TO COUNCIL.

THEN THEIR SERVICES WOULD BE OVER FOR THIS PORTION.

>> THE EXPECTED ONE IS BETWEEN NOW AND SOMETIME IN SEPTEMBER?

>> YES, SIR. >> I MAKE A MOTION THE APPROVE.

>> WE HAVE A MOTION TO APPROVE, SECOND.

PLEASE VOTE. ITEM PASSES 7-0.

[2021-315]

AMOUNT NOT TO EXCEED $182,800. >> I'M STEPPING IN FOR KYLE BECAUSE HE IS OUT ON VACATION. BUT THIS IS A BID TO APPROVE A DECELERATION AND ANOTHER DRIVE APPROACH OF BASICALLY OFF OF 67 INTO THE BUSINESS PART. SO THIS PROVIDES A SECONDARY, MORE THAN EMERGENCY ACCESS BUT A SECONDARY ENTRANCE INTO THE PARK ON WHAT I WANT TO CALL THE WEST SIDE OF THE PARK.

THE MAIN ENTRANCE STAYS OFF OF MILLER ROAD BUT AS YOU GO OVER THE OVERPASS, YOU'LL HAVE A DECELERATION LINE AND THEN YOU CAN MAKE A RIGHT INTO THE BUSINESS PART.

>> I DON'T THINK SO. I THINK YOU'VE GOT THE ENTRANCE RAMP COMING ON AND IT WILL JUST BE A DRIVE AND THEY'RE NOT GOING

TO LOSE A LOT FOR THAT. >> A MOTION?

>> MOVE TO APPROVE. >> SECOND.

>> MOTION TO APPROVE. SECONDED.

PLEASE VOTE. ITEM PASSES 7-0.

[2021-316]

LLC. >> KYLE UPDATED YOU IN EXECUTIVE SESSION A FEW MEETINGS AGO BASICALLY THE ORIGINAL TAX ABATEMENT AGREEMENT WAS SIGNED OFF ON.

THEY HAVE CHANGED THEIR MODEL AND WANT TO ENTER INTO AN AGREEMENT WITH CORNERSTONE WOULD BE THE OWNER AND DEVELOPER.

THE ONLY CHANGE IN HERE IS CHANGING THE NAME TO CORNERSTONE. AND THE OTHER THING WAS CHANGING THE CLOSE DATE. THEY WERE ORIGINALLY SUPPOSED TO CLOSE ON JULY 31ST, THEY'RE STILL SHOOTING FOR THAT DATE BUT THERE'S A COUPLE OF LITTLE THINGS THAT THERE ARE SOME CONCERNS IT COULD PUSH IT A FEW DAYS SO WE WANTED TO GIVE THEM A LITTLE BIT OF GRACE PERIOD THERE AND GO TO AUGUST 20TH INSTEAD OF JULY 31ST. THOSE ARE THE TWO CHANGES, EVERYTHING ELSE STAYS THE SAME AND IT STILL IS TIED TO SUNOPTA.

THEY HAVE TO OCCUPY THE BUILDING AND PUT IN THE SAME MACHINERY AND EQUIPMENT THAT THEY PLANNED TO DO.

BUT THE AGREEMENT NAME IS WITH CORNERSTONE.

>> DOES THE PERFORMANCE AGREEMENT STAY WITH SUNOPTA OR MOVE TO CORNERSTONE OR IS IT DIRECTLY LINKED ANYWAY?

>> I THINK THAT STAYS WITH SUNOPTA.

THEY'RE STILL REQUIRED TO DO EVERYTHING THAT THEY SAID THEY'RE GOING TO DO. BUT THE OWNERS OF THE PROPERTY

WILL BE CORNERSTONE DEVELOPMENT. >> WE HAVE A MOTION TO APPROVE.

DO WE HAVE A SECOND? >> SECOND.

>> PLEASE VOTE. ITEM PASSES 7-0.

[2021-317]

[01:55:01]

>> GOOD EVENING, MAYOR AND COUNCIL.

THIS IS FOR CHANGE ORDER NO. 3 ON THE DAM IN THE REDESIGN OF THE PARK, THERE WAS AN OVERFLOW ON THE EAST SIDE OF THE POND.

AND NOW WE MOVED IT TO THE SOUTH SIDE KIND OF IN THE MIDDLE OF THE DAM AREA WHERE IT GOES DOWN INTO THE WETLAND, THE TREED AREA. SO THIS IS JUST TO SECURE THAT.

ONCE THEY WENT IN AND LOWERED THE LEVEL SO WE COULD CREATE AN EVEN LAKE LEVEL AT ALL TIMES. THEY LOWERED THE DAM JUST A LITTLE BIT IN THAT AREA TO CREATE A SPILLWAY.

AND THEN THE BIG HEAVY RAINS CAME IMMEDIATELY AFTER AND SO FOR A MONTH, IT RAINED AND IT'S ERODED SOME OF THE BACKSIDE.

THE INTENTION THE ENTIRE TIME WAS TO PUT RIP RAP ON THE BACKSIDE ANYWAY TO SECURE IT AND ARMOR THAT.

AND SINCE THAT RAIN WE FEEL IT'S NECESSARY TO SECURE IT EVEN MORE SINCE THIS POINT BECAUSE IT ERODED MORE THAN THAT.

THIS WOULD ALLOW A 36-FOOT INLET TO GO INTO THE POND SIDE AND ON THE DOWNSTREAM SIDE IT WOULD ALLOW THE WATER TO FLOW OUT INTO THE CREEK STRAIGHT INTO THE CREEK AND NOT FLOW BACK AROUND BY THE PLAYGROUND. IT WOULD HIT ONE EDGE, BUT WHERE IT WAS FLOWING BEFORE, IT WOULD GO DOWN TWO SIDES OF THE LAND HOLDING THE PLAYGROUND. SO THIS WILL ALLOW IT TO FLOW FURTHER ON. THERE WILL BE A SIDEWALK OVER THE TOP OF IT AND THIS PRICE, THE 75,000 DOES NOT INCREASE THE GENERAL CONTRACT PRICE AT ALL. IT'S JUST UTILIZING SOME OF THE CONTINGENCY THAT WAS ALREADY IN THE CONTRACT.

AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

>> IS THIS NEED DRIVEN BY A FAILURE OR OVERSIGHT IN THE ORIGINAL DESIGN BECAUSE OF CAPACITY?

>> NO, I THINK IT WAS A TIMING ISSUE SO WHEN THEY CAME IN AND LOWERED THE CREEK OR DAM TO LOWER THE SPILLWAY, WE WERE WAITING ON THE RIP WRAP TO BE POURED ON THE BACK.

THE CONCRETE PEOPLE COULD NOT GET OUT THERE TO DO IT DUE TO HAVE THE SHORTAGE AND EVERYTHING ELSE.

SO WHEN THE RAINS CAME, IT WAS NOT ARMORED BEFORE THAT RAIN HIT AND WE HAD JUST AN ENORMOUS AMOUNT OF WATER COMING THROUGH THERE. IT WAS RAPIDS GOING THROUGH THERE. SO AS THAT HAPPENED BECAUSE WE HAD CLEARED SOME OF THE TREE AREA TO GET IN THERE AND CLEAN IT UP, IT ALLOWED A WEAKENED STATE WITHOUT IT BEING ARMORED IN TIME. SO JUST TO MAKE SURE WE'RE GOING

TO STRENGTHEN BOTH SIDES. >> MOTION TO APPROVE AND SECONDED. PLEASE VOTE.

ITEM PASSES 7-0. >> THANK YOU, MAYOR AND COUNCIL.

>> HEATHER, QUICK QUESTION, IS THERE A WARRANTY ON THE TREES GOING UP AND DOWN MIDLOTHIAN PARKWAY?

I ONLY SAY THAT BECAUSE -- >> Y'ALL CAN TALK ABOUT IT.

>> THERE IS A YEAR WARRANTY. >> ONE IS DEAD.

>> WE'LL GET IT. >> 2021-318, CONSIDER AND ACT

[2021-318]

DEBT. >> GOOD EVENING, MAYOR AND COUNCIL. YOU'VE HEARD TONIGHT, MIKE HAS GONE THROUGH SEVERAL OF THE PROJECTS AND WE'VE ALSO TALKED ABOUT THE PUBLIC SAFETY LIBRARY AND CITY HALL BUILDING.

SO WE HAVE THE NEED TO POTENTIALLY FUND SOME OF THE EXPENDITURES FOR ITEMS THAT WERE INCLUDED IN THE BOND REFERENDUM, AND THE BONDS WON'T BE SOLD UNTIL SEPTEMBER.

SO WE WON'T HAVE FUNDING AHEAD OF TIME.

SO WHAT WE GENERALLY DO IN THESE CASES IS WE DO THE FUNDING FROM THE GENERAL FUND BALANCE, BUT THEN WE DO THIS RESOLUTION DECLARING THAT WE HAVE THE INTENTION TO REIMBURSE THE CITY FOR THOSE EXPENDITURES WITH PROCEEDS FROM THE BONDS.

[02:00:02]

SO THIS IS JUST AS A REMINDER, THE MOCKINGBIRD LANE AND MCALPIN ROAD PROJECTS WERE PRESENTED TONIGHT.

THE HAWKINS RUN ROAD PROJECT WILL BE PRESENTED ON JULY 27TH TO THE COUNCIL. AND THEN IT'S ANTICIPATED THAT THE PUBLIC SAFETY AND LIBRARY AND CITY HALL BUILDINGS MAY BE PRESENTED IN AUGUST, SO WE JUST WANT TO GET THE RESOLUTION IN PLACE. I'LL ANSWER ANY QUESTIONS

ANYBODY MIGHT HAVE. >> WE HAVE A MOTION TO APPROVE AND SECONDED. PLEASE VOTE.

ITEM PASSES 7-0. THANK YOU, HEATHER.

[2021-319]

>> WELL WE DID GO OUT FOR REQUESTS FOR PROPOSALS ON THE MEDICAL, THE FLEXIBLE SPENDING, AND ON VOLUNTARY VISION COVERAGE. WE DID HAVE FIVE HEALTH CARRIERS THAT THIS WENT TO AND FOUR OF THEM RESPONDED.

YOU'LL SEE IN YOUR PACKET THAT I HAVE A COMPARISON OF JUST CIGNA AND TML. THE OTHER TWO RESPONDENTS AETNA AND UNITED HEALTH CARE ULTIMATELY PROPOSED INCREASES SO WE DID NOT EVEN INCLUDE THEM ON THE ANALYSIS THIS YEAR.

WE STARTED OUT WITH CIGNA RESPONDING WITH A 2.87% INCREASE BUT WE NEGOTIATED THAT DOWN TO A 2% DECREASE.

THE OTHER ITEM WITH THE OTHER COMPANY THAT WE INCLUDED IN THIS COMPARISON WAS TEXAS MUNICIPAL LEAGUE.

THEY DID PROPOSE A 9.06% INCREASE, HOWEVER THERE WERE SEVERAL DIFFERENCES IN THEIR COVERAGE.

IF YOU WERE TO LOOK AT THE COMPARISON SPREADSHEET, THEY OFFERED NO LIMIT ON THE MAXIMUM AMOUNT OF POCKET FOR INDIVIDUALS OR FAMILIES IN EITHER THE BUY UP OR THE BASE PLANS.

THEY ALSO HAD HIGHER EMERGENCY ROOM COSTS.

THEY HAD HIGHER PRESCRIPTION COSTS IN THE NAME BRAND CATEGORY. AND THEY ALSO WOULD CHARGE US FOR THE FLEXIBLE SPENDING ACCOUNT ADMINISTRATION AND THIS ALL OF THOSE CASES, CIGNA WAS LOWER.

ALSO CIGNA OFFERED A VISION PLAN THAT WAS RELATIVELY INEXPENSIVE FOR THE EMPLOYEES. THAT IS SOMETHING THE CITY IS NOT DOING ANY CONTRIBUTION ON SO IT WILL BE FULLY PAID BY THE EMPLOYEES. I WILL SAY THAT OUR RECOMMENDATION ON THE MEDICAL IS THAT WE STAY WITH CIGNA AND DO A BEST VALUE RATHER THAN A LOW BID AWARD.

ONE, IT'S EASIER FOR EMPLOYEES WHO DON'T HAVE TO GO OUT AND DEAL WITH ANOTHER NETWORK, I THINK WE TALK ABOUT THIS EVERY YEAR. YOU ALSO DON'T HAVE TO GO THROUGH STEP THERAPY IF YOU'RE ON A PRESCRIPTION AND YOU HAVE TO GO BACK THROUGH THE FORMULARY AND GO BACK THROUGH THAT WITH AN ADDITIONAL CARRIER. ADDITIONALLY TML HAD A MUCH MORE RESTRICTED GROUP OF DOCTORS AND FACILITIES THAT WE COULD GO THROUGH, THEIR NETWORK WAS MORE RESTRICTED.

IT'S ACTUALLY UNDERWRITTEN BY BLUE CROSS BLUE SHIELD BUT IT'S NOT THE FULL BLUE CROSS BLUE SHIELD NETWORK, SO THERE WERE LIMITING DOCTORS IN OUR AREA SO IT WOULD BE LIMITING TO THE

EMPLOYEES FROM THAT PERSPECTIVE. >> DID YOU SAY THEY WERE A 9%

INCREASE? >> THEY WERE 9% DECREASE.

>> 9% DECREASE. >> TML WAS A LARGER DECREASE.

AND THAT'S WHY I'M SAYING -- THANK YOU FOR CORRECTING THAT.

NO, THEY WERE A DECREASE. WHEN WE ACTUALLY CONSIDERED THE EMPLOYEE CONTRIBUTIONS, THEIR DECREASE IS REDUCED TO A 6% TO THE CITY AND IT WAS SLIGHTLY LESS THAN 1% DECREASE FOR CIGNA.

[02:05:08]

AND THE MAJORITY OF OUR EMPLOYEES ARE ON THE BASE PLAN.

THE FLEXIBLE SPENDING, I THINK WE MENTIONED WE DON'T HAVE TO PAY FOR THE VOLUNTARY VISION INSURANCE.

THAT IS PURELY CONTRIBUTORY BY THE EMPLOYEE.

THE DENTAL COVERAGE, WE ARE STAYING WITH METLIFE, THEY EXTENDED OUR AGREEMENT FOR ANOTHER YEAR AT THE SAME COST.

SO WE DID NOT TAKE BIDS ON THAT. AND OUR LIFE INSURANCE, LONG-TERM DISABILITY AND OUR EAP PROGRAM, OUR EMPLOYEE ASSISTANCE PROGRAM THROUGH MUTUAL OF OMAHA, THAT HAS ALSO, THAT GOES THROUGH SEPTEMBER 30, 2022. SO THOSE ARE NOT INCLUDED, BUT THEY ARE BENEFITS THAT WE OFFER FOR THE EMPLOYEES.

I'LL BE GLAD TO ANSWER ANY QUESTIONS ANYBODY MIGHT HAVE.

>> MY ONLY QUESTION, I DID HEAR THAT YOU SAID THAT TML WAS MORE RESTRICTIVE WITH OUT OF NETWORK. DID ANYBODY DO A CALCULATION TO THE OVERALL POTENTIAL OUT OF POCKET COST TO A CITY EMPLOYEE ON THE TML WITH THOSE METRICS VERSUS THE CIGNA OUT OF POCKET?

>> NO, WE DIDN'T SPECIFICALLY DO THAT.

WE MORE WERE CONSCIOUS OF THE FACT THAT IT WOULD TAKE ONE EVENT FOR AN EMPLOYEE TO OCCUR FOR THAT TO PRETTY MUCH FINANCIALLY RUIN THEM IF THEY HAD AN EXTREME EVENT BECAUSE THERE WAS NO LIMIT AT THE UPPER EDGE.

THIS IS THE FIRST TIME I CAN REMEMBER SINCE I'VE BEEN DOING THESE TYPE OF CONTRACTS THAT SOMEONE HAS QUOTED NO LIMIT AT ALL. SO WE THOUGHT IT WAS A LITTLE

EXTREME AS A COMMITTEE. >> THE ONLY QUESTION I HAVE TO PIGGY BACK ON THAT IS DID WE REACH OUT TO TML FOR CLARIFICATION, THAT'S CORRECT? BY THE WAY CATASTROPHIC, SEE YOU LATER. OKAY, ALL RIGHT.

>> AND THAT DOES REMIND ME, I USUALLY MENTION AND I DIDN'T THIS TIME, WE DID HAVE A COMMITTEE OF EMPLOYEES WHO REVIEWED THESE AND MADE THE JOINT RECOMMENDATION AND THAT COMMITTEE WAS MADE UP OF SEVERAL DEPARTMENTS.

SO JUST FROM THAT PERSPECTIVE. BY THE WAY BLUE CROSS BLUE SHIELD DID NOT QUOTE THEMSELVES BECAUSE THEY HAD PARTNERED WITH TML AND THEY WOULD NOT COMPETE WITH TML.

SO I THOUGHT THAT WAS INTERESTING.

WE'VE ALWAYS HAD THEM QUOTE BEFORE IN THE PAST AS WELL.

>> I MAKE A MOTION TO APPROVE. >> SECOND.

>> MOTION TO APPROVE AND SECOND, PLEASE VOTE.

ITEM PASSES 7-0. AT THIS TIME WE'RE GOING TO

[EXECUTIVE SESSION]

>>> COME TO ORDERS IT IS 8:43 WE HAVE RECONVENED THE COUNTVILLE

* This transcript was compiled from uncorrected Closed Captioning.