6.2 Adopt a Resolution establishing rates and fees for commercial and residential solid waste, recycling, and household hazardous waste services.

[6.2 Adopt a Resolution establishing rates and fees for commercial and residential solid waste, recycling, and household hazardous waste services.]

LET'S MOVE ON TO ITEM 6.2, WHICH IS TO ADOPT A RESOLUTION ESTABLISHING RATES AND FEES FOR COMMERCIAL AND RESIDENTIAL SOLID WASTE RECYCLING AND HOUSEHOLD HAZARDOUS WASTE SERVICES.

DIRECTOR OF COMMUNITY SERVICES STEVE MASSEY WILL BE MAKING A PRESENTATION.

GOOD EVENING, STEVE. OH.

I'M I ON THE RIGHT ONE. YEAH.

MAYOR FULK, MEMBERS OF THE CITY COUNCIL, I'M UP FOR THREE PRESENTATIONS IN A ROW.

FOR BREVITY SAKE, I WILL SAY ALL THREE PRESENTATIONS ARE TO SET RATES AND FEES FOR ENTERPRISE FUNDS THAT THE COMMUNITY SERVICES DEPARTMENT MANAGES. ENTERPRISE FUNDS DO NOT RECEIVE TAX SUPPORT.

THEY DO NOT GET GENERAL FUND PROCEEDS OR MONEY, AND THEY HAVE TO EARN THE REVENUES TO MEET THEIR EXPENSES.

SO THEY'RE A LITTLE DIFFERENT THAN THE GENERAL FUND BUDGET.

I'LL SAY THAT FOR ALL THREE OF THESE BRIEFINGS, AND WE'LL START WITH THE SOLID WASTE PART OF THE PRESENTATION.

[00:20:08]

THE CITY PROVIDES WASTE SERVICES TO RESIDENTIAL AND COMMERCIAL CUSTOMERS.

WE MANAGE RESIDENTIAL SINGLE FAMILY HOUSEHOLD HAZARDOUS WASTE PROGRAM.

WE PROVIDE RECYCLING AND ENVIRONMENTAL EDUCATION SERVICES.

WE SUPPORT THE AWARD WINNING KEEP ALLEN BEAUTIFUL BOARD AND WE MANAGE ILLEGAL DUMPING ON CITY PROPERTY.

THE WASTE SERVICES STAFF IS EIGHT PERSONNEL.

WASTE SERVICES MANAGER DONNA GILES, TWO EDUCATION SPECIALIST, A COMMERCIAL WASTE SERVICES SPECIALIST, ONE SENIOR CUSTOMER SERVICE REP AND A HHW HOUSEHOLD HAZARDOUS WASTE CREW OF THREE PEOPLE.

THIS IS THE BUDGET WHICH YOU SAW AT BUDGET WORKSHOP.

THIS BUDGET DOES REFLECT A $1.50 RESIDENTIAL RATE INCREASE PER MONTH.

IT DOES NOT INCLUDE IN THE NEW RESOLUTION ANY CHANGE TO COMMERCIAL RATES WHICH WERE ESTABLISHED ON JUNE 1ST OF 2022.

SO ALL THIS DOES IS WORK ON THE $1.50 RESIDENTIAL RATES AND BY GOING UP THE $1.50 FOR EACH RESIDENTIAL HOUSEHOLD, YOU'LL SEE THAT THE BUDGET WORKS OUT WITH A SLIGHT LOSS, BUT STILL ENDING THE YEAR AT 97 DAYS OF FUND RESERVE, WHICH IS A HEALTHY FUND RESERVE FOR THE SOLID WASTE FUND.

THIS IS AN UPDATED SLIDE FROM BUDGET WORKSHOP.

IT'S UPDATED BECAUSE I BASED THE FIGURES I PRESENTED IN AUGUST ON WHAT WE THOUGHT OTHER CITIES WERE GOING TO DO.

AND ONE CITY, THE CITY OF FRISCO, ACTUALLY WENT UP $4.00 PER MONTH PER RESIDENTIAL HOUSEHOLD INSTEAD OF THE $1.50 THAT WE THOUGHT WOULD HAPPEN.

SO THIS KIND OF CHANGES OUR RATE COMPARISON BETWEEN CITIES AND MAKES THE NEW COMPARISON BE $19.73 IS THE AVERAGE OF THE RESIDENTIAL RATE PER MONTH FOR THE FIVE CITIES THAT RECEIVE DISPOSAL SERVICES THROUGH THE NORTH TEXAS MUNICIPAL WATER DISTRICT.

AND THIS, IN FACT, MAKES US VERY COMPETITIVE.

IN FACT, YOU'LL SEE US AND MCKINNEY ARE RIGHT AT THE BOTTOM, AND OTHER CITIES ARE SLIGHTLY HIGHER THAN WE ARE.

SO WE FEEL OUR RESIDENTIAL RATES ARE QUITE COMPETITIVE.

AND THE RECOMMENDATION THIS EVENING IS FOR CITY COUNCIL TO ADOPT A RESOLUTION ESTABLISHING RATES AND FEES FOR RESIDENTIAL AND COMMERCIAL SOLID WASTE RECYCLING AND HOUSEHOLD HAZARDOUS WASTE SERVICES.

ARE THERE ANY QUESTIONS? ANY QUESTIONS COUNCIL? IF NOT, DO WE HAVE RESOLUTION NUMBER? RESOLUTION NUMBER 3953-9-22R.

MAYOR, I'D LIKE TO MAKE A MOTION TO ADOPT RESOLUTION 39-53-9-22 R ESTABLISHING RATES AND FEES FOR COMMERCIAL AND RESIDENTIAL SOLID WASTE RECYCLING AND HOUSEHOLD HAZARDOUS WASTE SERVICES.

SECOND. WE HAVE A MOTION AND SECOND, DOES EVERYONE UNDERSTAND WHAT THEY'RE VOTING ON? IF SO, PLEASE CAST YOUR VOTE.

THE ITEM PASSES UNANIMOUSLY.

[6.3 Adopt a Resolution establishing residential and commercial water and sewer rates.]

WE'LL GO AHEAD AND MOVE ON TO 6.3, ADOPT A RESOLUTION ESTABLISHING RESIDENTIAL AND COMMERCIAL WATER AND SEWER RATES.

AND STEVE YOU ARE ON AGAIN.

OK. THIS WILL SET RESIDENTIAL AND COMMERCIAL WATER AND SEWER RATES FOR FISCAL YEAR 23, AND YOU'LL NOTE THAT ANNUALLY WE INCREASE THESE RATES ON NOVEMBER 1ST.

SO THE ACTIVE DATE FOR THE RESOLUTION WILL BE NOVEMBER 1ST.

I THINK YOU'RE AWARE THE WATER AND SEWER FUND HAS GROWN TO BE BIG BUSINESS IN THE CITY OF ALLEN.

IT SUPPORTS 76 AND A HALF OPERATIONAL FTE IN THE WATER AND SEWER DEPARTMENT.

MY ASSISTANT DIRECTOR, RAY YARBOROUGH, CONTROLS MOST OF THE STAFF AND I GET TO CONTROL THE UTILITY BILLING OFFICE AND DEAL WITH VERY INTERESTING AND NUMEROUS PHONE CALLS THAT COME IN ON UTILITY BILLING ISSUES.

RIGHT NOW, THERE'S A LOT OF CREWS AND A LOT OF PEOPLE AND A BIG BUDGET.

YOU VERY WELL SUPPORT OUR NEEDS TO PROVIDE GOOD WATER AND WASTEWATER SERVICES TO THE CITY OF ALLEN, AS WELL AS SUPPORT OUR NEEDS TO PROVIDE FOR CAPITAL IMPROVEMENTS LIKE PAINTING WATER TANKS, REPLACING WATER AND SEWER LINES IN THE OLDER NEIGHBORHOODS AND THINGS LIKE THAT.

I HONESTLY CAN TELL YOU WE ARE A MODEL CITY FOR THAT TYPE OF WORK AND THE ENTIRE DEPARTMENT GREATLY THANKS YOU FOR YOUR SUPPORT OF THE WATER AND SEWER FUND.

NOW WE'LL TALK ABOUT WHAT'S GOING ON WITH RATES.

RATES ARE LARGELY LED UPWARDS BY THE NEED TO DEVELOP NEW WATER AND SEWER INFRASTRUCTURE TO SUPPORT THE REGIONAL GROWTH OF THE 1.6 MILLION PEOPLE THAT DEPEND ON THE NORTH TEXAS MUNICIPAL WATER DISTRICT FOR WATER AND WASTEWATER SERVICES.

[00:25:04]

THE PHENOMENAL GROWTH IN OUR AREA IS MAKING THEM ADVANCE THE DEVELOPMENT OF EXTRA CAPABILITY IN WATER AND WASTEWATER.

AT THE SAME TIME, THEY'VE GOT A LOT OF AGING INFRASTRUCTURE THAT THEY HAVE TO ADDRESS AND REPLACE, AND CONSTRUCTION COSTS HAVE REALLY PUSHED US THROUGH THE ROOF.

THIS CHART IS DESIGNED TO SHOW YOU HOW MUCH WE PAY NORTH TEXAS FOR WATER AND WASTEWATER THROUGH THE FISCAL YEAR FROM 22 TO 26.

OF COURSE, TODAY WE'RE TALKING ABOUT 23.

AND YOU CAN SEE FROM LAST YEAR TO THIS YEAR ON THE SECOND LINE CIRCLED IN GREEN, WE OWED THEM 3.7 MILLION MORE DOLLARS IN THE BUDGET THAT YOU APPROVED FOR FY 23.

BUT LOOKING A LITTLE BIT FORWARD, YOU'LL SEE IN 24 IT GOES UP 3.9 MILLION, MORE THAN 4.1 MILLION MORE, AND THEN 3.6 MILLION MORE IN 26.

AND THAT'S THE LIMIT OF THE RATE STUDY THAT WE DID THIS YEAR.

THE AGGREGATE WATER AND SEWER RATE INCREASE THAT'S BEING PASSED ON TO THE CITY, YOU CAN READ IN THE RED CIRCLE THAT'S 12.2% THIS YEAR.

THAT DOESN'T GET MUCH BETTER AS YOU GO INTO THE FUTURE YEARS.

AS A PERCENT OF OUR FUNDS, THE WATER AND SEWER FUNDS, OPERATING BUDGET, THE MONEY THAT COMMUNITY SERVICES HAS TO CONDUCT ITS OPERATIONS, ALMOST 75% OF THAT IS SENT TO THE WATER DISTRICT TO PAY FOR THEIR TREATED WATER AND FOR TREATMENT OF OUR WASTEWATER.

AND YOU CAN SEE GOING INTO FUTURE YEARS, THAT NUMBER RISES.

SO IT'S MORE AND MORE AND IT'S JUST HELPING TO DRIVE OUR RATES UP.

THEY'RE NOT THE ONLY REASON WE NEED MORE PEOPLE AND MORE EQUIPMENT AS WE HAVE MORE MILES OF WATER AND SEWER LINE.

SO I'M NOT POINTING A FINGER AT THEM.

IN FACT, I WOULD DEFEND THEM BECAUSE THEY'VE GOT TO DEVELOP NEW WATER RESOURCES TO PROVIDE FOR THE WATER THAT THIS REGION DEMANDS.

AND IT'S JUST NOT ANYTHING BUT EXTREMELY EXPENSIVE ANYMORE.

NOW, LOOKING AT NORTH TEXAS, PERCENTAGE OF THE TOTAL WATER AND WASTEWATER BUDGET, THE PERCENTAGE IS BETWEEN 56 AND 59%.

SO THEIR RATES GOING UP HAVE A VERY LARGE IMPACT AND KIND OF LIMIT YOUR DISCRETION IN HOLDING THE RATE INCREASES DOWN.

THIS IS THE THREE YEAR BUDGET REVIEW, THE SAME AS YOU SAW AT BUDGET WORKSHOP.

IT DOES INCLUDE THE WATER AND SEWER RATE INCREASES THAT WE'RE PROPOSING TONIGHT UNDER FY 23.

YOU CAN SEE HOW MUCH REVENUES NEED TO GO UP TO MEET THE EXPENSES.

WE HAVE A LITTLE PROFIT JUST ENOUGH TO MEET OUR DEBT RATIO, WHICH HAS TO BE ABOVE 1.2.

WE'RE GOING DOWN TO 91 DAYS OF RESERVE BECAUSE YOU'RE A MEMBER AT THE FY 22 BUDGET WORKSHOP.

AS WE FIELD ADVANCED METER INFRASTRUCTURE, WE'RE EXPECTING TO GET SOME EXTRA WATER REVENUE BECAUSE THE NEW METERS WILL READ MORE ACCURATELY THAN OUR OLD METERS.

SO WE'RE LETTING THE DAYS OF RESERVE DROP A LITTLE BIT, EXPECTING THAT GETTING MORE ACCURATE METER READINGS WILL HELP US GET A LITTLE BIT MORE REVENUE AS THE YEAR GOES BY. WE DID DO A RATE STUDY THIS YEAR.

THIS WAS A MAJOR RATE STUDY.

IT DETERMINES THE REVENUE WE NEED TO MEET OUR EXPENSES.

THAT'S ABOUT AS SIMPLE AS I COULD PUT IT.

NORTH TEXAS COSTS WERE UP A BIT.

LIKE I SAID, OUR STAFF IS GROWING.

OUR EQUIPMENT'S GROWING.

EQUIPMENT, REPLACEMENTS, MORE EXPENSIVE, FUEL, EVERYTHING'S MORE EXPENSIVE, JUST LIKE IT IS ON OUR CITIZENS.

AND WE ALSO HAVE TO FUND OUR CIP TO MAKE SURE OUR WATER TANKS LAST FOREVER.

AND WE CAN KEEP GOOD, SOLID INFRASTRUCTURE TO SUPPORT THE CITIZENS OF ALLEN.

YOU'LL REMEMBER THERE WAS A WHOLE SERIES OF RATE INCREASE CHARTS NOT SHOWING YOU THOSE TONIGHT LIKE I DID AT BUDGET WORKSHOP.

I THINK THE MOST PROFOUND AND INTERESTING CHART IS THE TRACE OF NORTH TEXAS WATER RATES FROM WHEN THEY BECAME AN ENTITY IN 1957 UNTIL THE PRESENT TIME.

AND YOU'LL SEE THAT 66 YEAR ACTUAL WATER COST AND THEN FY 23 WATER COSTS GO TO 339 AND YOU CAN SEE THE SLOPE OF THE LINE INTO THE FUTURE.

THEY WENT FROM 1957 TO 2007 BEFORE WATER COST OVER $1 A GALLON.

THEN THEY WENT FROM 2007, 2015, THINK THAT'S SIX YEARS.

THEN IT WENT OVER TO SIX MORE YEARS.

IT WENT OVER THREE.

IN THREE YEARS, IT GOES OVER FOUR AND THREE MORE YEARS IT GOES OVER $5, A 1000 GALLONS.

AND THEN THREE MORE YEARS AFTER THAT, IT'S UP TO $6, 1000 GALLONS.

SO THAT LINE IS JUST A LITTLE BIT SCARY AS THE WATER SYSTEM MANAGER FOR THE CITY, BECAUSE IT JUST MEANS RATES ARE UNDENIABLY GOING TO HAVE TO GO UP AND BE UNCOMFORTABLE FOR THE CITIZENS OF ALLEN.

AND IT'S JUST THE FACT OF THE GROWTH OF THE SUCCESSFUL GROWTH OF THIS AREA.

THE TYPICAL CHARTS WE USE EVERY YEAR ARE THE ONES THAT COMPARE TO KINDS OF RESIDENTIAL WATER USE AND ONE COMMERCIAL WATER USE VERSUS THE OTHER CITIES IN

[00:30:04]

THE NORTH TEXAS MUNICIPAL WATER DISTRICT, WATER AND SEWER FAMILY.

AND WE THROW IN DALLAS, AND IF WE CAN GET AT THE TML OR TEXAS MUNICIPAL LEAGUE AVERAGE.

EVERY YEAR WHEN YOU SEE THIS, WHAT YOU'RE LOOKING AT IS OUR CURRENT CHARGE, WHICH IS DOWN AT THE BOTTOM RIGHT HERE, AND THAT COMPARES THAT CHARGE TO EVERY OTHER ENTITIES, CURRENT CHARGE, NOT THEIR FUTURE CHARGE, THE CHARGE IN FY 22 AND THEN WE DON'T MOVE ANYBODY ELSE, 23, BUT WE MOVE OURSELVES TO 23.

AND THE BLUE PART OF THE LINE IS WATER AND THE GREEN IS WASTEWATER, AND OUR RATES WILL GO FOR 10,000 GALLONS OF WATER.

THE AVERAGE ANNUAL USE OF EVERY RESIDENT ACROSS THE WHOLE CITY IS 9,168 GALLONS.

THIS COMPARISON IS 10,000 GALLONS OF WATER, 10,000 GALLONS OF SEWER, AND WE STOP CHARGING FOR SEWER AT 10,000 GALLONS.

AND YOU CAN SEE OUR RATES OF THIS USAGE LEVEL ARE GOING UP 10% OR $11.52 A MONTH.

LAST YEAR WHEN YOU SAW THIS, WE WENT UP.

AND WHEN YOU LOOK AT IT NOW AND SEE THE FY 22 RATES, WE'RE BACK AT THE BOTTOM.

I WOULD PREDICT WE'D BE ONE OF THE BOTTOM TWO AGAIN.

NOW, DON'T TELL ME TO WORK ON MY RESUME IF THAT DOESN'T HAPPEN, BUT I'M PRETTY SURE THAT'S WHAT'S GOING TO HAPPEN AGAIN THIS YEAR.

I'M SORRY.

I'M SORRY. THANKS, SHELLEY, FOR TAKING CARE OF ME ALL THE TIME.

WHEN DO YOU ANTICIPATE BEING ABLE TO GIVE US SOME UPDATED NUMBERS ON THESE CITIES? I'D KIND OF. I MEAN, YOU COULD JUST SHARE WITH COUNCIL THEY'LL BE PASSING ALL THOSE.

BUT NOT EVERY CITY CHANGES RATES THE SAME DATE.

SO IT'S IT'S VERY HARD TO KNOW.

BUT I KNOW SOME CITIES WENT UP EIGHT.

SOME CITIES WENT UP 12 AND WERE FOR AT THIS USAGE LEVEL, WE'RE GOING UP 10.

OKAY. WELL, JUST AS AN FYI, WHEN YOU CAN GET IT.

OKAY, THAT'D BE GREAT.

I'LL WORK WITH OUR RATE CONSULTANT TO SEE HOW QUICKLY WE CAN GET THAT FOR CITY COUNCIL.

SO THIS IS THE FIRST RESIDENTIAL COMPARISON.

THE SECOND RESIDENTIAL COMPARISON IS BASED UPON SUMMER AVERAGE USE.

NOW, THIS ISN'T MY SUMMER AVERAGE USE FOR FOUR MONTHS, BECAUSE I USE A LOT MORE THAN THIS.

BUT THE AVERAGE CITIZEN USES 12,538 GALLONS A MONTH IN THE FOUR HIGHEST WATER USAGE MONTHS OF EACH SUMMER.

SO WE SET THIS COMPARISON UP FOR 15,000 GALLONS OF WATER AND 10,000 GALLONS OF SEWER BECAUSE SEWER FEES ARE CAPPED AT 10,000 GALLONS.

SO THIS IS A LITTLE BIT HIGHER USES FOR RESIDENTIAL.

IT'S DONE JUST LIKE THE OTHER CHART.

EVERYBODY'S FY 22 RATES ARE RIGHT HERE.

DALLAS BEATS US OUT.

THEY BEAT US OUT BECAUSE THEY SELL A LOT OF WATER TO OTHER ENTITIES FOR A PROFIT SO THEY CAN CHARGE THEIR RESIDENTS LESS.

WE'RE HERE AND EVERY OTHER CITY ON THERE EXCEPT OUR PROPOSED RATE IS THE FY 22 RATE FOR EVERYBODY.

AND AFTER WE HAD THE DISCUSSION LAST YEAR, WE ENDED UP AT THE BOTTOM AND COMPARED TO THE OTHER 13 CITIES, AGAIN.

I WOULD PREDICT WE'LL BE ONE OF THE BOTTOM TWO CITIES WHEN EVERYBODY SETS THEIR NEW RATES.

BUT FOR US, WE'RE GOING FROM BLUE IS WATER, GREEN IS WASTEWATER, $130.15 FOR 15,000 GALLONS OF WATER, 10,000 GALLONS OF SEWER UP TO 144 $14.13 CENT INCREASE, WHICH IS 11%.

NOW, YOU KNOW, IF SOMEBODY IS USING 80,000 GALLONS OF WATER, THEIR INCREASE IS GOING TO BE A LOT MORE THAN 11% BECAUSE THEY GET INTO THOSE HIGHER RATE TIERS.

BUT THIS GIVEN WHAT WE'RE GETTING FROM THE WATER DISTRICT, THIS IS A PRETTY REASONABLE RATE INCREASE FOR THE AVERAGE CUSTOMER.

SO FOLKS MAY STILL BE UNHAPPY IF THEY USE 50 OR 60,000 GALLONS, BUT YOU PAY FOR WHAT YOU USE IN THE WATER FUND.

NOW, WE COMPARE ONE COMMERCIAL CHARGE, AND THAT'S A TWO INCH METER USING 50,000 GALLONS OF WATER AND 50,000 GALLONS OF WASTEWATER BECAUSE COMMERCIAL ACCOUNTS ARE CHARGED SEPARATELY FOR IRRIGATION.

THEY ARE CHARGED FOR 100% OF THEIR WATER USE FOR WASTEWATER.

IT'S CALLED COMMERCIAL DOMESTIC.

WE ASSUME ALL THE WATER USE IN THE BUILDING GOES DOWN, THE TOILET GOES DOWN THE DRAIN.

SO WE CHARGE THEM COMPLETELY WATER WASTEWATER IS FOR EVERY GALLON THEY TAKE IN WATER.

YOU CAN SEE HERE ON THE COMMERCIAL SIDE, AS THINGS SORTED OUT AT THE END OF FY 22, ROCKWALL BEAT US OUT BY A COUPLE OF BUCKS.

THEY WERE A COUPLE OF DOLLARS HIGHER BETWEEN HERE AND HERE.

EVERY OTHER CITY, THOSE ARE FY 22 RATES.

WE'RE GOING TO GO FROM WATER IN BLUE, SEWER IN GREEN, 557 TO 643, WHICH IS AN $86 INCREASE OR 15% IT'S HIGHER BECAUSE THEY'RE CHARGED FOR WASTEWATER FOR THE WHOLE USAGE.

SO THIS WILL BE PRETTY COMPARABLE.

AND THEN WHEN ALL THE DUST SETTLES, I STILL THINK WE'LL BE ONE OF THE BOTTOM TWO OR THREE ENTITIES.

[00:35:04]

I'M HAPPY TO SAY THAT.

WE'LL SEE HOW LONG THAT CONTINUES.

EVERYBODY'S UNDER FINANCIAL STRESS IN THEIR WATER AND SEWER FUNDS.

ARE THERE ANY QUESTIONS ON WATER AND SEWER RATES OR THE RATE STUDY OR COMMENTS ABOUT RATE TIERS OR ANYTHING LIKE THAT? I JUST WANNA SAY I APPRECIATE WHAT YOU'RE DOING WITH THE RESERVE FUND.

I KNOW IT'S LOOKING A LITTLE LOW, BUT WE EXPECT IT TO GROW AND WE COULD HAVE DONE AN INCREASE TO COVER THAT.

SO WE WEREN'T SO LOW, BUT WE ANTICIPATE THE INCREASE.

I JUST APPRECIATE YOUR APPROACH.

YES, SIR. I APPRECIATE YOU.

THANK YOU. WELL, I DEFER A LITTLE BIT BECAUSE I THINK THE DIRECTION OF THE RESERVE FUND IN SOLID WASTE AND HERE ARE NOT A PRETTY PICTURE. I MEAN, YOU JUST SHOWED THE LOSS ON THE SOLID WASTE THAT I GUESS YOU SAID THAT WELL, PERHAPS, YOU KNOW, THIS RESERVE CAN GO UP ONCE AMI IS INSTALLED.

AND, YOU KNOW, WE'RE CHARGING PEOPLE AND I KNOW ALL ABOUT I'VE LEARNED ALL ABOUT THE OLD METERS AND HOW THEY'RE THEY'RE NOT FUNCTIONING PROPERLY.

I WANTED TO ASK YOU, THOUGH, HAVE WE EVER CONSIDERED CHANGING THE TIER STRUCTURE TO WHERE YOU HAVE YOU SAY A RESIDENT USES AN AVERAGE OF 10,000 OR LIKE 9,900 THAT THE FIRST TIER STRUCTURE, THAT'S 1,500 TO 15,000 IS INCREASING IT 472.

AND THEN WE HAVE ESSENTIALLY FOUR TIER STRUCTURES AND WE USED TO HAVE FIVE GREATER THAN 75,000 GALLONS.

AND WE HAVE THE SECOND TIER IS 15,000 AND 25,000.

THE THIRD TIER ARE 25,000 TO 50,000 AND THEN A 50,000 PLUS TIER.

AND TO ME, THERE'S TWO THINGS, OPPORTUNITIES, I THINK, IF YOU WILL, TO NOT OVERCHARGE THE RESIDENTS.

BUT, YOU KNOW, WATER CONSERVATION IS BECOMING EXTREMELY IMPORTANT.

AND IN MY MIND, IF YOU CHANGE THIS TIER STRUCTURE, IT POSITIONS YOU TO I GUESS, HOW DO I PHRASE IT TO HOLD THOSE WATER ABUSERS ACCOUNTABLE. AND WHAT I MEAN BY THAT IS THAT, YOU KNOW, AND I KNOW AND PRETTY MUCH EVERYBODY HERE ON THIS DAIS KNOWS THAT SOME PEOPLE, YOU KNOW, CARELESSLY WATER BEYOND THEIR TWO DAYS.

AND I GUESS TO ME IS IF YOU I'M NOT SUGGESTING THAT I'M YOU KNOW WE GOT TO CHANGE IT BUT I'D LIKE TO CHANGE THAT RATE STRUCTURE THESE TIER STRUCTURES TO MAYBE ACCOUNT FOR THAT.

AND IN AN EFFORT THAT SAYS WHAT BETTER WAY TO PENALIZE PEOPLE FOR ABUSING THEIR WATER PRIVILEGES.

AND, YOU KNOW, EVERYBODY SHOULD BE HELD ACCOUNTABLE, RIGHT? I MEAN, EVERYBODY TALKS ABOUT PRECIOUS RESOURCES.

AND I THINK WATER IS THE MOST PRECIOUS RESOURCE WE HAVE.

I GUESS I COULD BE CONVINCED.

I'D JUST LIKE TO SEE WHAT THAT WOULD LOOK LIKE.

AND IF YOU WENT DOWN TO THE 1,500 TO 10,000 ON THE AVERAGE, THEN THOSE PEOPLE THAT ARE ACTUALLY, YOU KNOW, DOING IT RIGHT WOULD ACTUALLY HAVE A LOWER RATE.

SO YOU'RE REWARDING THEM FOR GOOD BEHAVIOR.

YES, SIR. THAT'S AND YOU'RE DISCIPLINING THOSE THAT AREN'T EXERCISING GOOD BEHAVIOR.

THERE'S ALMOST INNUMERABLE WAYS WE COULD DO THIS.

AND THE RATE CONSULTANT CAN DO IT ANY WAY THAT COUNCIL DESIRES.

I WOULD ONLY ASK THAT YOU NOT SAY, BRING ME BACK 50 ALTERNATIVES AND I OWE THE RATE CONSULTANT $1,000,000 FOR ALL THIS COMPUTER TIME THEY'RE GOING TO USE.

BUT IF I COULD GET A FEELING FROM COUNCIL IN THREE MONTHS BEFORE WE START THE NEXT RATE STUDY WHAT MIGHT BE PREFERRED OR YOU LET US BRING YOU A FEW ALTERNATIVES. WE COULD THEN DECREASE A RATE TIER FROM 1,500 TO 10,000 REWARD PEOPLE THERE.

RIGHT. THE NEXT TIER COULD BE 10,000 TO 15,000 TO CONSIDER THE SUMMER USE MAYBE.

AND THEN WE COULD WORK MORE THAN THE FOUR TIERS.

THERE'S NO LIMIT ON THE TIERS IN OUR COMPUTER OR IN OUR WATER CONSERVATION PLAN.

EACH TIER GOES UP 25%.

ALL THE TIERS.

EXCEPT WITH THE EXCEPTION WE ARE WORKING THAT DOWN THROUGH THE YEARS TO BE 25%.

WE RAN INTO A PROBLEM WHEN WE HAVE FIVE TIERS BECAUSE OUR TOP TIER WAS HIGHER THAN AUSTIN, TEXAS, WHICH USED TO BE THE HIGHEST RATE TIER IN THE STATE.

SO WHEN WE WERE $2.00 A 1,000 GALLONS HIGHER THAN AUSTIN, I ASKED THE CITY MANAGER, CAN WE JUST DUMP THIS RATE TIER? BECAUSE IF ANYBODY COMPARES IT, IT DOESN'T COMPARE TO ANY OTHER NORTH TEXAS CITY NOR REASONABLY COMPARE TO OTHER CITIES IN THE STATE.

BUT WE COULD SHUFFLE THAT AND REWARD PEOPLE FOR USING LESS IF COUNCIL COULD GIVE SOME SOME GUIDANCE ON WHAT WOULD BE PREFERRED.

[00:40:10]

YEAH SO I HEAR WHERE YOU'RE GOING WITH THAT, CHRIS.

I DON'T DISAGREE.

I WILL SAY THAT YOUR USE OF TERM, YOUR TERMINOLOGY OF CHOICE SEEMS A LITTLE TOO MUCH CARROT AND STICK TO ME.

MAYBE IF WE LOOK AT IT MORE ALONG THE LINES OF INCENTIVIZING CITIZENS TO CONSERVE FOR THE SAKE OF SAVING THEIR OWN MONEY UNDER THE PREMISE THAT WATER USAGE IS ONE OF THOSE THINGS THAT WE ABSOLUTELY HAVE A SAY IN HOW MUCH WE USE AND HOW MUCH WE SPEND VERSUS, OH, I DON'T KNOW, PROPERTY TAXES WHERE WE DON'T, BUT I SEE WHERE YOU'RE GOING.

I THINK IT'S WORTH LOOKING AT.

JUST NOT SURE IF WE SEE EYE TO EYE ON THE TERMINOLOGY.

THAT'S FINE. WHAT [INAUDIBLE], YOU WANT, BUT I THINK MAYBE A COUPLE OF TIERS JUST TO LOOK AT IT.

IF WE OBJECT TO IT, IT DOESN'T MAKE SENSE THEN.

WE COULD GET BACK IN A WORKSHOP IN THE FUTURE AND TALK ABOUT WHAT WE MIGHT DO.

YEAH. I COULD BRING THE RATE CONSULTANT IN TO DISCUSS IT WITH YOU AND GET SOME IDEAS SO WE CAN LIMIT IT TO A REASONABLE NUMBER OF ALTERNATIVES.

BUT WE COULD UPDATE THAT BY THE 2024 BUDGET, SO WE WOULD STICK WITH WHAT WE GOT AND LOOK AT IT FOR THE FUTURE.

AND THEN YOU COULD LAYER THAT INTO THE DAYS OF RESERVE.

RIGHT. I MEAN, YOU COULD PUT THAT IN THE AGGREGATE AND KIND OF SEE HOW THAT IMPACTS THIS.

THIS IS THE STRONGEST REASON FOR WATER CONSERVATION, BECAUSE IF THEY GO UP A DOLLAR COMING TO US, EVERYBODY GOES UP A DOLLAR PER 1,000 GALLONS IMMEDIATELY.

SO IN THREE YEARS, SIX YEARS, NINE YEARS, WE HAVE A NUMBER OF RATE INCREASES.

WHEN YOU READ ALL THE WATER CONSERVATION BOOKS, THEY TELL YOU WATER CONSERVATION BY PRICE CONTROL IS THE MOST EFFECTIVE THING YOU CAN DO.

NOW WE HAVE REBATES AND WE HAVE TWO WATERING DAYS AND WE'RE GOING TO ADVANCE METER INFRASTRUCTURE.

WE'RE DOING ALL THE SOFT STUFF, BUT WE'RE ACTUALLY GOING TO END UP BEING PUSHED TO DO THE HARD STUFF, WHICH IS PRICE CONTROL BASED ON WHAT THE WATER DISTRICT IS TAKING US TO. SO WE WILL END UP WITH PEOPLE UPSET ABOUT WATER LIKE I AM ABOUT ELECTRICITY, OR I AM ABOUT OTHER THINGS THAT ARE OUT OF MY CONTROL LIKE FUEL.

SO THIS PATH HERE WILL GET US THERE AS WELL.

BUT WE CAN COME BACK AT A WORKSHOP AND DISCUSS THAT SOME MORE.

I'M DEFINITELY FOR THAT.

YOU KNOW, WE ADD ANOTHER TIER TO, WHATEVER I JUST WANT TO CAUTION, YOU KNOW, I MEAN, EVERYBODY'S WAITING ON PEOPLE TO HAVE POOLS, SO I DON'T WANT TO HARM THE LITTLE GUY WITH THE POOL, OR YOU KNOW, BUT DEFINITELY THE ONES THAT ARE SPEWING WATER ALL OVER AND DOING NOTHING ABOUT IT.

SURE ABSOLUTELY.

AND WHAT IS THE CHANGE? THE CHANGE IN, TAKE OR PAY TAKE EFFECT.

THAT IS A TEN YEAR PHASE IN AND WE ARE IN THE THIRD YEAR OF THAT.

AND YOU'VE BEEN HERE LONG ENOUGH TO KNOW ALL THAT STUFF, JUST LIKE MR. SCHULMEISTER AND THE MAYOR AND SOME OTHERS.

BUT DURING THAT TEN YEAR PERIOD, SOME OF THE EXCESS COSTS THAT PLANO, RICHARDSON, GARLAND, AND MESQUITE PAID IS GOING TO BLEED OVER TO OTHER CITIES AND TAKE CITIES LIKE US UP BECAUSE WHILE THEY CONSTRUCTIVELY PAY LESS, WE WILL PAY MORE AS PART OF THAT LAWSUIT SETTLEMENT.

THANK YOU. SO IT'LL BE SEVEN MORE YEARS AND THEN IT WILL BE A ROLLING AVERAGE AFTER THAT.

FANTASTIC. THANK YOU. YES, SIR.

STEVE, I HAD A QUESTION, BUT I THOUGHT THE WHOLE INTENT OF THE 4 TO 5 TIER SYSTEM THAT WAS IMPLEMENTED YEARS AGO WAS TO CREATE AN INCENTIVE FOR PEOPLE TO CONSERVE SO THAT THEY CAN GET DOWN TO THAT NEXT LOWER TIER BY CONSERVING AND THEN THEREFORE SAVING MONEY.

IS THAT NOT THE CASE OR DO I CALL THAT.

NO THIS IS WAY OFF OF WHAT WE'RE DOING, BUT THE PUBLIC UTILITY COMMISSION STATED THROUGH AN ADMINISTRATIVE LAW JUDGE THAT THE WAY THE WATER DISTRICT WAS DOING TAKE OR PAY WAS INHERENTLY PREJUDICIAL TO CITIES THAT HAD DECREASED THEIR WATER USE SUBSTANTIALLY WHEN ALL THAT CHIP STUFF WENT TO CHINA.

SO NOW RICHARDSON AND PLANO THAT SUFFER FROM THAT, NOW THAT STUFF'S COMING BACK.

BUT THEY WERE STUCK. PLANO HAD A 26 BILLION GALLON TAKE OR PAY AND THEY WERE ONLY TAKING 16 OR 18 BILLION GALLONS. THEY WERE PAYING COMPLETELY FOR THE DIFFERENCE.

SO THEIR EFFECTIVE COST OF WATER WAS MUCH HIGHER THAN US BECAUSE WE WEREN'T STUCK LIKE THAT.

SO THE LAWSUIT ENDED UP BEING SETTLED BY GRADUALLY EQUALIZING THAT.

[00:45:01]

ERIC IS THE EXPERT, SIR.

WELL, I WAS JUST THE MAYOR'S QUESTION WAS A LITTLE DIFFERENT.

HE WAS TALKING ABOUT THE FOUR RATE TIERS WE HAVE.

OH, AND JUST THAT THAT INITIALLY WAS PUT IN FOR CONSERVATION PURPOSES.

YES. RIGHT. IT WAS AND ACTUALLY WE NEEDED FOUR, BUT WE PUT IN FIVE FOR RESIDENTIAL.

AND AT THE TIME, I BELIEVE YOU MAY HAVE BEEN ON COUNCIL, THEN WE DID 25, 25 BETWEEN THEM AND THEN WE WENT 50/50.

RIGHT. AND THE ONLY REASON WE TOOK OUT THE TOP ONE WAS THE RATES GOT SO HIGH OVER 15 YEARS THAT IT WAS REALLY KIND OF HARD TO DEFEND TO ME.

AND I THINK THOSE BIGGER INCREASES ON THE HIGHER TIERS WERE BECAUSE IT WAS DISCOVERED THAT UNLESS YOU HAD A HIGH ENOUGH RATE INCREASE THAT DID NOT IMPACT THE USER, THOSE THAT CHOOSE TO USE THAT MUCH WATER.

SO. OKAY.

ALL RIGHT. I JUST FOR SOME REASON, I JUST REMEMBERED THAT WHENEVER THIS WAS DONE YEARS AGO, THAT THAT WAS THE INCENTIVE.

YES, IT WAS. SO IN ESSENCE, WHAT WE'RE TALKING ABOUT NOW IS MAYBE TAKING A NEW FRESH LOOK AT THAT INCENTIVE STRUCTURE AND SEEING WHETHER IT NEEDS TO BE CHANGED OR NOT.

YES. AND OF COURSE, I'D LIKE TO THINK THAT OUR TOP TIER DID NOT PENALIZE OUR CITIZENS MORE THAN THE OTHER 12 MEMBER CITIES DID YOU KNOW JUST A SENSE OF FAIRNESS.

THANK YOU. ANY OTHER QUESTIONS FOR STEVE? IF NOT, DO WE HAVE A RESOLUTION NUMBER? RESOLUTION NUMBER 3954-9-22 R.

MAYOR, I'LL MAKE A MOTION THAT WE ADOPT RESOLUTION NUMBER 3954-9-22 R ESTABLISHING RESIDENTIAL AND COMMERCIAL WATER AND SEWER RATES.

I'LL SECOND.

WE HAVE A MOTION AND SECOND, DOES EVERYONE UNDERSTAND WHAT THEY'RE VOTING ON? IF SO, PLEASE CAST YOUR VOTE.

THAT ITEM PASSES UNANIMOUSLY.

THANK YOU VERY MUCH FOR THAT.

[6.4 Conduct a Public Hearing and Adopt a Resolution Establishing Commercial and Residential Drainage Fees.]

NOW ON TO 6.4.

THIS ONE IS TO CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION ESTABLISHING COMMERCIAL AND RESIDENTIAL DRAINAGE FEES.

AGAIN, STEVE, THIS IS YOUR LAST TIME, RIGHT? YES, SIR. THIS WILL WRAP IT UP FOR ME.

THIS ISSUE IS ABOUT DRAINAGE FEES.

AND AGAIN, BASED ON THE WAY THE STATE LEGISLATED DRAINAGE FEES, IT DOES HAVE TO BE A PUBLIC HEARING, ALTHOUGH ALL I'M ASKING TO DO TONIGHT IS TO ADOPT A RESOLUTION. BUT STATE REQUIRES A PUBLIC HEARING FOR THIS PARTICULAR RATE CHANGE.

THE DRAINAGE ENTERPRISE FUND, AS WE TALKED ABOUT AT BUDGET WORKSHOP, DOES ALL SORTS OF STUFF WITH EQUIPMENT AND BUGS AND MAINTENANCE OF THINGS AND GETTING OIL OUT OF WATER.

VERY IMPORTANT FUNCTION, ALTHOUGH IT'S A VERY SMALL ENTERPRISE FUND.

I THINK MOST IMPORTANT, THEY HELP WITH OUR EMERGENCY RESPONSE FOR BAD WEATHER AND FOR ILLICIT DISCHARGES.

THEY WORK ON SOME OF THE DRAINAGE SYSTEM.

THEY WORK ON REPAIR OF THE CURB INLETS THAT THE OUTFALLS AND WHERE THE WATER GOES INTO THE STORMWATER SYSTEM, THEY ACTUALLY DO PAVEMENT LIFTING IN ORDER TO LEVEL UP THE PAVEMENT.

I KNOW MR. CLEMENCICH HAD SOME AND HE SAW SOME OF THAT IN HIS NEIGHBORHOOD AND THAT'S DONE SO THAT WE DON'T END UP WITH PUDDLES IN FRONT OF HOUSES.

WE CAN LIFT THE PAVEMENT AND REESTABLISH THE DRAIN LINE.

THIS FUND PROVIDES FOR THE COST OF THE TEXAS POLLUTION DISCHARGE ELIMINATION SYSTEM DISCUSSED AT BUDGET WORKSHOP IS ONE OF THE THINGS THAT SINCE WE'RE OVER 100,000 IN THE RECENT CENSUS, LOTS MORE THINGS HAVE TO BE DONE.

CHRIS FLANIGAN IN ENGINEERING IS DOING THOSE THINGS.

THIS FUND WILL BE REQUIRED TO PROVIDING THE FUNDING TO ACTUALLY DO THAT WORK.

LEE BATTLE MENTIONED EARLIER THE MOSQUITO STUFF HE DOES.

WE PROVIDE THE FUNDS FOR TESTING, TRAPPING AND ABATEMENT TO KEEP WEST NILE AND ZIKA AND WHATEVER ELSE COMES NORTH AWAY FROM OUR CITIZENS AND KEEP THEM HEALTHY. WE MOW IN THE DRAINAGE AREAS AND WE CONTRACT MOWING ALONG THE TRAIL SYSTEM IN THE CITY AND WE CONDUCT STREET SWEEPING, WHICH IS ONE OF OUR TPDES REQUIREMENTS. THE DRAINAGE STAFF IS EIGHT PEOPLE.

THEY'RE SUPERVISED BY A FOREMAN STREETS AND DRAINAGE FOREMAN, AND THAT'S FUNDED OUT OF THE GENERAL FUND.

SO THE EIGHT FOLKS, A CREW LEADER THAT WORKS FOR THE FOREMAN, THE CREW LEADER HAS FIVE MAINTENANCE WORKERS, THE TPDES INSPECTOR, HE DOES A LOT OF THE WORK FOR ENGINEERING, LOOKING AT [INAUDIBLE] IN ACCORDANCE WITH OUR PERMIT.

AND THE CONCRETE REPAIR SPECIALIST IS ACTUALLY THE MUCH LOVED COST SHARED SIDEWALK REPAIR SPECIALIST.

HE'S THE YOUNG MAN THAT GOES OUT AND LOOKS AT ALL THE REQUESTS, TELLS WHETHER THEY NEED TO BE DONE OR NOT, SENDS THE LETTERS TO THE CITIZENS, GETS THE LETTERS BACK, SCHEDULES THE WORK, INSPECTS THE WORK, MAKE SURE EVERYTHING'S HAPPY AT THE END.

A VERY IMPORTANT MEMBER OF MY STAFF.

AS WE ENDED UP FY 22, WE SAW THE NEED IN FY 23 TO GENERATE MORE REVENUE.

SO WE DID WHAT WE'VE DONE IN THE PAST AND WE COMPARED OUR RESIDENTIAL AND COMMERCIAL DRAINAGE FEES TO FIVE LOCAL CITIES, THE SAME FIVE AS WE USUALLY USE RICHARDSON, MCKINNEY, PLANO AND FRISCO.

[00:50:02]

THE GREEN BAR ON THE LEFT IS WHAT ALLEN CURRENTLY CHARGES, AND YOU CAN SEE THE DOLLAR SCALE ON THE FAR LEFT, $3.50.

AND YOU CAN SEE WHAT THE OTHER CITIES CHARGE.

AND THE AVERAGE OF THOSE FIVE CITIES IS $3.97 PER MONTH.

WE THEN LOOKED AT COMMERCIAL FEES TO SEE HOW WE COMPARE TO OTHER COMMERCIAL CITIES, TO OTHER CITIES THAT HAVE THE COMMERCIAL FEES.

ALL THE COMPARISON CITIES DO.

EVERY CITY TALKS ABOUT WHAT THE RATE IS IN A DIFFERENT WAY.

WE CHARGE BY ACRE.

OTHER CITIES CHARGE BY 1,000 SQUARE FEET, SOME CITIES CHARGED BY 100 SQUARE FEET.

SO TO NORMALIZE IT, WE CONVERT AS EVERYBODY'S RATES INTO THE COST PER 100 SQUARE FEET OF EITHER IMPERVIOUS OR THE TOTAL ACREAGE.

AND THIS IS THE COMPARISON OF IMPERVIOUS.

SO ALLEN CHARGES 5.7 CENTS PER 100 SQUARE FEET OF IMPERVIOUS SURFACE.

AND THEN WE LOOK ACROSS TO RICHARDSON THERE, TEN AND A HALF.

MCKINNEY'S ALMOST 12.

PLANO'S ALMOST 12.

FRISCO IS UP ABOVE 14.

AND IF WE ADD ALL THOSE UP AND DIVIDE BY FIVE, THE AVERAGE IS 11.04 CENTS PER 100 SQUARE FEET, AND WE'RE AT 5.7.

THIS TALKS ABOUT OUR DRAINAGE FEE PAST INCREASES.

WE TOOK UP RESIDENTIAL FEES BY $0.25 IN 09, 15 AND 17.

IF WE COMPARE OUR RESIDENTIAL FEES AND WHAT WE EARN, WE EARN 70% OF THE REVENUE FROM RESIDENTIAL AT $3.50 A MONTH OUR CURRENT CHARGE, WE ARE AT 88% OF THE FIVE CITY COMPARISON.

OUR COMMERCIAL COMPARISON, WHICH EARNS 30% OF THE FUND REVENUE, ARE 5.7 CENTS PER IMPERVIOUS SQUARE FOOT, PUTS US ONLY AT 51% OF OUR NEIGHBOR CITIES, WHICH IS ALMOST $0.11 PER IMPERVIOUS SQUARE FOOT.

SO WHEN WE'RE LOOKING AT WHO DO WE ASK TO PAY MORE, WE SEE THE DISCREPANCY.

AND AS YOU SAW AT BUDGET WORKSHOP, WE SETTLED ON JUST TAKING UP THE COMMERCIAL RATES AND NOT TAKING UP RESIDENTIAL RATES BECAUSE I DIDN'T NEED MORE MONEY THAN WHAT WE GET, JUST TAKING COMMERCIAL UP.

SO ISF IS IMPERVIOUS SQUARE FEET 5CA IS FIVE CITY AVERAGE.

SO WE'LL LEAVE PROPOSE TO LEAVE RESIDENTIAL RATES AT $3.50 PER MONTH, WHICH IS 88% OF THE FIVE CITY AVERAGE OF $3.97.

IF WE TAKE COMMERCIAL FROM 5.61 CENTS PER 100 IMPERVIOUS SQUARE FEET TO 9.48 CENTS PER 100 IMPERVIOUS SQUARE FEET, THAT'S A 69% INCREASE, BRINGS IN $375,000 MORE DOLLARS.

THAT'S ABOUT WHAT WE NEED TO FIX THE FUND.

AND IT WILL THEN MAKE OUR COMMERCIAL COMPARISON BE 80% OF THE FIVE CITY AVERAGE.

THAT WILL, AS WE GO UP, IT'LL GO UP TO 11.83 CENTS.

SO THIS SEEMED LIKE A REASONABLE APPROACH AND WAS WHAT WE ASK YOU TO APPROVE AT BUDGET WORKSHOP.

NOW, THE DRAINAGE FEES AND THE RESOLUTION THAT YOU'RE GOING TO SEE, WE TALK ABOUT SINGLE FAMILY BEING 350 AND THEN PROPERTY CLASSIFICATION ON THE LEFT BASE RATE IS TOTAL ACRES AND ALTERNATE RATE IS JUST IMPERVIOUS ACRES.

THE COMPANY OR THE BUSINESS HAS A SURVEY DONE AND SHOWS HOW MUCH GRASS IS THERE, AND THEN THEY CALCULATE HOW MUCH IS IMPERVIOUS AND THEY CAN EITHER DO THE BASE RATE OR IMPERVIOUS IF THEY SEND IN A SURVEY.

THE CITY ENGINEER LOOKS AT IT AND SAYS, OKAY, YOU QUALIFY FOR IMPERVIOUS.

MULTIFAMILY AND COMMERCIAL BASE RATE WILL BECOME 3724, IMPERVIOUS IS 4138 AND BY THE ORIGINAL ORDINANCE, DAY CARE AND RELIGIOUS FACILITIES ARE ONE HALF OF THE MULTIFAMILY AND COMMERCIAL RATE.

SO THOSE WILL THEN BE ONE HALF OF THE RATES ABOVE.

SO WE'LL GO FROM 350 RESIDENTIAL UNCHANGED 69% INCREASE TO EARN 375 MORE.

AND THE TOTAL REVENUE IS THERE.

NOW YOU'LL SEE IN FY 23, THIS INCLUDES THE EXTRA FUNDING AND WE'LL END UP WITH THE FUND AT 107 DAYS OF FUND RESERVE.

SO THIS IS A GOOD SOLUTION TO THE CURRENT NEED FOR SOME EXTRA FUNDING.

THE RECOMMENDATION IS TO CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION ESTABLISHING COMMERCIAL AND RESIDENTIAL DRAINAGE FEES.

THANK YOU, STEVE. COUNCIL, DO YOU HAVE ANY QUESTIONS FOR STEVE BEFORE THE PUBLIC HEARING? I FORGOT MY GAVEL. I THINK I LEFT MY GAVEL DOWN THERE.

[00:55:01]

SORRY. I MIGHT NEED THAT.

SORRY ABOUT THAT. I COULD HAVE POUNDED THE TABLE, BUT I HATE TO DO THAT.

SO LET'S GO AHEAD AND OPEN THE PUBLIC HEARING AND ASK ANYONE WISHING TO SPEAK FOR OR AGAINST THIS REQUEST TO COME FORWARD AT THIS TIME.

STATE YOUR NAME AND ADDRESS FOR THE RECORD.

SEEING NO ONE COMING FORWARD.

WE'RE GOING TO GO AHEAD AND CLOSE THE PUBLIC HEARING AND TURN THE MATTER BACK OVER TO THE COUNCIL.

MAYOR, I'D LIKE TO MAKE A MOTION TO ADOPT RESOLUTION NUMBER 39-55-9-22 R ESTABLISHING COMMERCIAL AND RESIDENTIAL DRAINAGE FEES.

SECOND, WE HAVE A MOTION AND SECOND.

DOES EVERYONE UNDERSTAND WHAT THEY'RE VOTING ON? IF SO, PLEASE CAST YOUR VOTE.

THANK YOU STEVE. THANK YOU. THIS ITEM PASSES UNANIMOUSLY.

AND STEVE, I'D LIKE TO SAY THANK YOU FOR BEING DETAILED AND THOROUGH IN YOUR PRESENTATION .

THANK YOU SIR. BECAUSE I THINK ANYBODY CAN UNDERSTAND WHAT'S GOING ON WITH THIS WATER AND SEWER RATES.

THANK YOU VERY MUCH. THANKS STEVE.

[APPLAUSE]. NEXT, WE'RE GOING TO CONDUCT WELL IT'S ITEM 6.5.

[6.5 Conduct a Public Hearing and adopt an Ordinance to amend the development regulations of Planned Development No. 53 with a base zoning of Shopping Center to allow Restaurant (with drive-in or drive-through) as a Permitted Use; for a property located on the northwest corner of Exchange Parkway and Alma Drive. [Restaurant-Office at Alma & Exchange]]

WE'RE GOING TO CONDUCT A PUBLIC HEARING AND ADOPT AN ORDINANCE TO AMEND THE DEVELOPMENT REGULATIONS OF PLANNED DEVELOPMENT NUMBER 53, WITH THE BASE ZONING OF SHOPPING CENTER TO ALLOW RESTAURANT WITH DRIVE IN OR DRIVE THRU AS A PERMITTED USE FOR A PROPERTY LOCATED ON THE NORTHWEST CORNER OF EXCHANGE PARKWAY AND ALMA DRIVE, ALSO KNOWN AS RESTAURANT OFFICE AT ALMA AND EXCHANGE.

AND WE HAVE OUR PLANNING MANAGER, HAYLEY ANGEL, GOING TO MAKE THE PRESENTATION.

GOOD EVENING, HAYLEY. GOOD EVENING.

THANK YOU, MAYOR, MAYOR PRO TEM, AND.MEMBERS OF THE COUNCIL.

THE AGENDA ITEM THAT WAS JUST READ INTO THE RECORD IS A PUBLIC HEARING IN PD AMENDMENT FOR RESTAURANT OFFICE AT ALMA AND EXCHANGE.

THE PROPERTY IS ROUGHLY IDENTIFIED BY THIS YELLOW STAR.

AND FOR YOUR BEARINGS WE HAVE EXCHANGE PARKWAY AND ALMA.

THE PROPERTY IS OUTLINED HERE IN RED, AS YOU CAN SEE TO THE NORTH AND THE WEST.

THERE IS PLANNED DEVELOPMENT 53 SHOPPING CENTER ACROSS ALMA DRIVE, THEIR SHOPPING CENTER AND THEN TO THE SOUTH ACROSS EXCHANGE THERE IS PD 54 SINGLE FAMILY.

THE SUBJECT PROPERTY ITSELF IS CURRENTLY ZONED PD 53 SHOPPING CENTER.

AS SOME OF YOU ALL MAY OR MAY NOT REMEMBER, IN THE PAST FIVE YEARS OR SO, WE'VE SEEN A HANDFUL OF ZONING CASES GO THROUGH ON THIS PROPERTY THAT ACTUALLY SHOWED THIS AS A GROCERY STORE USE. SO THE MOST RECENT ZONING CASE THAT WENT THROUGH, YOU CAN SEE SPANISH SCHOOLHOUSE HERE TO THE NORTH OF THE FIRE LANE, WHICH IS A DAYCARE UNDER CONSTRUCTION, A RETAIL PORTION.

AND THIS PROPERTY THAT WAS REMAINING WAS SHOWN AS A GROCERY STORE.

SINCE THAT TIME, THE APPLICANT HAS COME THROUGH AND LOOKED TO SUBDIVIDE THIS INTO THREE NEW PARCELS.

AS WE LOOK AT THE CONCEPT PLAN SO FOR REFERENCE, WE DO HAVE THE FIRE LANE HERE THAT WE JUST SAW THAT WAS ALREADY CONSTRUCTED.

SO THIS IS TAKING PLACE SOUTH OF THAT AND THEY ARE PROPOSING THREE DIFFERENT PARCELS FOR DEVELOPMENT.

TWO OF THEM WOULD BE RESTAURANTS WITH DRIVE IN OR THROUGH IN YOUR ORDINANCE, YOU'LL SEE WE'VE SPECIFICALLY CALLED THIS OUT AS A PERMITTED USE AND DEFINED A NEW DEFINITION.

SO THEY ARE DRIVE THRU ONLY.

FINALLY, HERE CLOSEST TO THE FIRE LANE IS A MEDICAL OR DENTAL OFFICE USE FOR THAT BUILDING.

THERE ARE A HANDFUL OF ENTRANCES INTO THE SITE.

SO LOOKING AT OUR PUBLIC RIGHTS OF WAY, THERE ARE TWO ENTRANCES OFF OF ALMA AND ONE ON EXCHANGE.

BUT OF COURSE THERE ARE OTHER CONNECTIONS THROUGHOUT THE INTERNAL ACCESS DRIVES.

CLICKED A LITTLE TOO FAST ON THAT ONE.

I DO HAVE A HANDFUL OF INFORMATION ABOUT SOME OF THE TRAFFIC IMPROVEMENTS THAT ARE PROPOSED, BUT I ACTUALLY PAIRED THAT WITH THE DEVELOPMENT REGULATION SINCE THEY'RE A LITTLE BIT MORE COMPLICATED ON THIS CASE.

SO WE'LL GO THROUGH A CLOSE UP IMAGE TO LOOK AT THOSE IN A MOMENT.

GIVEN THE NATURE OF THE SITE ALONG EXCHANGE, THERE ARE QUITE A FEW EASEMENTS THAT ENCUMBER THAT PORTION OF THE PROPERTY.

THE APPLICANT DID ASK FOR SOME SLIGHT DEVIATION IN THIS AREA, SPECIFICALLY FOR THEIR LANDSCAPING.

THERE'S NOT A REDUCTION IN PLANT MATERIAL HERE.

IT'S JUST A LITTLE BIT OF DISTRIBUTING THROUGHOUT THAT AREA TO AVOID SOME OF THOSE EASEMENTS.

AND SO AS A PART OF THAT, THEY DID PROVIDE THIS LANDSCAPE PLAN SO THAT IT CAN BE CODIFIED WITH THE ORDINANCE ITSELF.

THE ELEVATIONS ARE HERE AS SHOWN.

SO THIS IS THE FIRST LOT ALL THE WAY OVER ON THE WEST.

AND SO THIS BUILDING IS APPROXIMATELY 24 FEET TALL AND HAS A BUILDING MATERIALS OF BRICK STUCCO AND METAL ACCENTS.

SO OF COURSE, WE CAN'T REGULATE BUILDING MATERIALS IN THIS AREA, AND THEY ARE SHOWN FOR REPRESENTATIONAL PURPOSES.

THIS IS AT THE [INAUDIBLE] CORNER OF ALMA AND EXCHANGE, THE OTHER RESTAURANT WITH DRIVE THRU, AND THIS BUILDING IS APPROXIMATELY 22 FEET TALL.

[01:00:05]

AND THEN FINALLY, THIS IS THE MEDICAL OR DENTAL OFFICE.

THE DEVELOPMENT REGULATIONS FOR THIS PROPERTY IN GENERAL ARE PRETTY STRAIGHTFORWARD.

SO WE ARE ADOPTING THE CONCEPT PLAN, LANDSCAPE PLAN AND BUILDING ELEVATIONS AND THAT PERMITTED USE, AS I MENTIONED.

OUR NEXT ROUND OF AMENDMENTS WILL INCLUDE THAT UPDATE, BUT SINCE THE ZONING CASE PRECEDED THAT, THEY WANTED IT TO BE INCLUDED EXPLICITLY.

AND THEN FINALLY THE TRAFFIC IMPROVEMENTS.

SO THIS WAS ACTUALLY WELL ESTABLISHED WHEN THE GROCER WAS INTENDING TO COME THROUGH.

SO WITH THAT INITIAL ZONING APPLICATION, THEY DID PROVIDE A TRAFFIC IMPACT ANALYSIS THAT LOOKED AT THE OVERALL IMPACT TO THIS CORNER AND LAID OUT SOME PARAMETERS FOR SOME TURN LANES ON BOTH EXCHANGE AND ALMA.

AND SO IN THE LONG AND SHORT, THERE WAS INITIALLY SOME MONEY THAT WAS PUT FORWARD IN ORDER FOR A TURN LANE TO BE BUILT.

I'M GOING TO STEP AHEAD SO YOU CAN KIND OF SEE IN THIS IMAGE HERE THERE IS AN EXISTING TURN LANE ON ALMA.

SO PART OF THAT MONEY WAS SET ASIDE TO HAVE THAT CONSTRUCTION MOVE FORWARD.

AND SO THIS MONEY ESSENTIALLY RECOUPS THAT COST TO THE CITY.

IN ADDITION TO THAT, AT THE DEVELOPER'S COST, THERE ARE TWO MORE TRAFFIC IMPROVEMENTS.

AND THEY ARE IN THESE TWO LOCATIONS HERE.

SO THERE IS GOING TO BE THE EXTENSION OF THAT EXISTING TURN LANE AND AN ADDITIONAL TURN LANE ON EXCHANGE.

AND YOU CAN SEE THEM A LITTLE BIT BETTER HERE.

SO THAT'S THE EDGE OF THE EXISTING TURN LANE.

SO AMPLE CAPACITY.

THIS WAS AGAIN LAID OUT WITH A BROCHURE AND NOW WE ACTUALLY HAVE A REDUCTION IN TRAFFIC AND THEY ARE PROVIDING THE SAME AMOUNT OF STORAGE SPACE.

PLANNING AND ZONING COMMISSION DID RECOMMEND APPROVAL OF THE REQUEST AND STAFF IS RECOMMENDING APPROVAL AS WELL.

I'D BE HAPPY TO ANSWER ANY QUESTIONS AND THE APPLICANT IS HERE AS WELL.

THANK YOU. REAL QUICK.

YEAH. ISN'T THIS THE SAME PLOT OF LAND THAT A COUPLE OF MONTHS AGO RECOMMENDATION FOR A GAS STATION WAS PRESENTED TO P&Z. YES.

AND SO THAT WAS THIS HARD CORNER HERE.

SO SINCE THAT TIME, THE APPLICANT HAS GONE BACK TO THE DRAWING BOARD AND PROPOSED THIS TENANT AS AN ALTERNATIVE.

SO THE CONCEPT PLAN WOULD BE AS ADOPTED HERE WITH THESE USES.

SO IN NO WAY, SHAPE OR FORM WE ARE WIDENING ALMA OR JUST THAT TURN LANE THERE.

SO THE TURN LANE HAS ACTUALLY ALREADY BEEN CONSTRUCTED.

SO WHAT WE'RE DOING IS LENGTHENING IT ALONG THE COMMERCIAL PARCEL.

AND JUST FOR CONFIRMATION, YOU'VE ALREADY STATED IT.

IT'S OKAY. BUT THIS HAS ALWAYS BEEN, OR AT LEAST FOR THE LAST FIVE YEARS, THE ZONE THAT IS SHOPPING CENTER.

CORRECT. SHOPPING CENTER. ORIGINALLY A GROCER.

FANTASTIC. THANK YOU. COUNCIL ANY OTHER QUESTIONS FOR HAYLEY OR THE PROPONENT BEFORE THE PUBLIC HEARING? THANK YOU, HAYLEY. WE'LL GO AHEAD AND OPEN THE PUBLIC HEARING AND ASK ANYONE WISHING TO SPEAK FOR OR AGAINST THIS REQUEST TO PLEASE COME FORWARD.

STATE YOUR NAME AND ADDRESS FOR THE RECORD.

SEEING NO ONE COMING FORWARD.

GO AHEAD AND CLOSE THE PUBLIC HEARING.

YOU TURN THE MATTER BACK OVER TO THE COUNCIL.

ANY OTHER QUESTIONS OR COMMENTS COUNCIL? IF NOT, DO WE HAVE AN ORDINANCE NUMBER? ORDINANCE NUMBER 3956-9-22.

MAYOR, I'LL MAKE A MOTION TO ADOPT ORDINANCE NUMBER 3956-9-22 TO AMEND THE DEVELOPMENT REGULATIONS OF PD 53 WITH THE BASE ZONING OF SHOPPING CENTER.

I'LL SECOND.

WE HAVE A MOTION AND SECOND, I ASSUME EVERYBODY UNDERSTANDS WHAT THEY'RE VOTING ON.

SO PLEASE CAST YOUR VOTE.

THIS ITEM PASSES UNANIMOUSLY.

CONGRATULATIONS TO THE PROPONENT.

WISH YOU THE BEST OF LUCK IN THIS DEVELOPMENT.

[6.6 Conduct a Public Hearing and adopt an Ordinance to amend the development regulations of Planned Development No. 64 with a base zoning of Garden Office to allow Massage Establishment use by right for property generally located southeast of Greenville Avenue and Buckingham Lane. [Alliance Office Centre]]

NEXT ITEM IS ITEM 6.6 IS TO CONDUCT A PUBLIC HEARING AND ADOPT AN ORDINANCE TO AMEND THE DEVELOPMENT REGULATIONS OF PLANNED DEVELOPMENT NUMBER 64 WITH THE BASE ZONING OF GARDEN OFFICE TO ALLOW MASSAGES ESTABLISHMENT USE BY RIGHT FOR PROPERTY GENERALLY LOCATED SOUTHEAST OF GREENVILLE AVENUE AND BUCKINGHAM LANE, ALSO KNOWN AS THE ALLIANCE OFFICE CENTER.

HAYLEY. THANK YOU, MAYOR.

MAYOR PRO TEM AND MEMBERS OF THE COUNCIL.

THE AGENDA ITEM THAT WAS JUST READ INTO THE RECORD IS A PUBLIC HEARING AND PD AMENDMENT FOR ALLIANCE OFFICE CENTER.

THE PROPERTY IS ROUGHLY IDENTIFIED BY THE YELLOW STAR AND IT IS SOUTH OF STACEY ROAD AND EAST OF GREENVILLE.

IT IS OUTLINED HERE IN RED THE SURROUNDING ZONING AND DEVELOPMENT INCLUDES TO THE NORTH ACROSS BUCKINGHAM, THERE IS AGRICULTURAL OPEN SPACE TO THE EAST THERE IS PLANNED DEVELOPMENT 51 SINGLE FAMILY TO THE SOUTH THERE IS AGRICULTURAL OPEN SPACE.

AND THEN ACROSS GREENVILLE AVENUE THERE IS PLANNED DEVELOPMENT 107 COMMUNITY FACILITIES.

THE.

AS YOU ALL CAN SEE, THIS IS A DEVELOPED PROPERTY.

[01:05:03]

IT WAS INITIALLY ZONED BACK IN 1998 AND THEN INCLUDED A VERY SPECIFIC LIST OF USES WITH THAT GARDEN OFFICE SPACE ZONING.

GENERALLY, THIS IS OUR LEAST INTENSIVE OFFICE DISTRICT, BOTH IN SCALE OF BUILDING AND USES, AND SINCE THAT TIME THE APPLICANT HAS ACTUALLY HAD AN INDIVIDUAL TENANT COME FORWARD AND WANT TO PURSUE A MASSAGE ESTABLISHMENT USE.

AND SO TO CLARIFY WHAT THAT MEANS EXACTLY, THE CITY OF ALLEN HAS ACTUALLY ADOPTED A LAND USE THAT PERTAINS JUST TO MASSAGE ESTABLISHMENTS TO MIRROR THE STATE LAW REQUIREMENTS FOR THOSE BUSINESSES.

SO WE HAVE A SPECIFIC SECTION IN OUR ALLEN LAND DEVELOPMENT CODE THAT OUTLINES OPERATIONAL PROCEDURES, LICENSING REQUIREMENTS THROUGH THE STATE AND WHATNOT.

AND THAT'S WHY IT HAS ACTUALLY BEEN PULLED OUT OF OTHER DEFINITIONS IN OUR ALLEN LAND DEVELOPMENT CODE, YOU MIGHT NOT SEE THE SAME TREATMENT TO SAY, A BEAUTY OR BARBER SALON.

WHILE THEY HAVE TO GET LICENSED THROUGH THE STATE THEY DON'T HAVE THOSE ADDITIONAL REGULATIONS PLACED UPON THEM AND THAT USE JUST DID NOT EXIST AT THE TIME THAT THIS ZONING WAS ESTABLISHED.

AND SO THE DEVELOPMENT REGULATIONS ARE PRETTY SIMPLE.

SO THIS ISN'T A CHANGE TO ANY OF THE EXISTING BUILDINGS ON THE PROPERTY.

NO PROPOSED PLANS FOR DEVELOPMENT AT THIS TIME.

IT REALLY JUST IS ADDING THIS ONE USE TO THE LIST OF PERMITTED USES.

PLANNING AND ZONING COMMISSION DID RECOMMEND APPROVAL AT THE SEPTEMBER 6TH MEETING.

STAFF IS RECOMMENDING APPROVAL AND I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

COUNCIL ANY QUESTIONS PRIOR TO THE PUBLIC HEARING? IF NOT, WE'LL GO AHEAD AND OPEN THE PUBLIC HEARING.

ASK ANYONE WISHING TO SPEAK FOR OR AGAINST THIS REQUEST TO PLEASE COME FORWARD AND STATE YOUR NAME AND ADDRESS FOR THE RECORD.

SEEING NO ONE COMING FORWARD I'LL GO AHEAD AND CLOSE THE PUBLIC HEARING AND TURN THE MATTER BACK OVER TO THE COUNCIL.

MAYOR, I'M GOING TO GO ON AHEAD AND SPEAK.

I THINK THE CITY OF ALLEN HAS PLENTY OF MASSAGE ESTABLISHMENTS AND I DON'T KNOW THAT I WILL FEEL COMFORTABLE SUPPORTING THIS AS I DON'T PERSONALLY BELIEVE WE NEED ANOTHER ONE.

ANY OTHER QUESTIONS OR COMMENTS? I JUST THINK THERE'S A BETTER USE FOR THAT LAND, ESPECIALLY ACROSS FROM A CHURCH, THAN A MASSAGE PARLOR MYSELF.

I GUESS FAR BE IT FOR ME TO TO PROHIBIT SOMEBODY, A LANDOWNER, FROM DOING WHAT HE WANTS ON HIS LAND.

I GUESS I HEAR A LOT ABOUT THAT, RIGHT.

I THINK THE THING WITH ME IS, IS THAT I SOMEWHAT CONCUR WITH WHAT YOU TWO HAVE SAID INITIALLY, NOT IN FAVOR OF THE PROPOSED USAGE. YOU KNOW, I LOOKED AT THE SCHEDULE OF PRINCIPLE USES AND SUCH.

AND, YOU KNOW, OBVIOUSLY MASSAGE ESTABLISHMENTS DON'T FALL UNDER GARDEN OFFICE.

SO BUT I GUESS GIVEN AND YOU BROUGHT IT UP AS SECTION 6.06.16 OF THE LDC.

I MEAN, IT REALLY SPELLS OUT SOME REALLY STIFF RESTRICTIONS ON WHAT'S ALLOWED IN THESE ESTABLISHMENTS.

AND GIVEN WHAT I READ WHILE I GUESS AGAIN, IT'S NOT ONE OF MY FAVORITE THINGS TO APPROVE I FEEL MUCH MORE COMFORTABLE DOING SO GIVEN SECTION 6.06.16 TO THE LDC.

SO I THINK WITH THAT IN PLACE, IT'S WE CAN GO AHEAD AND I WOULD BE IN FAVOR OF MOVING FORWARD WITH IT.

ANY OTHER QUESTIONS OR COMMENTS? DAREN. YEAH, I GUESS MY MY THOUGHTS I DON'T HAVE A PROBLEM WITH THE BUSINESS ITSELF.

I DON'T NECESSARILY THINK THAT PARTICULAR LOCATION IS PROBABLY THE RIGHT LOCATION.

I THINK WATTERS CREEK OR VILLAGES OF ALLEN IS PROBABLY A MORE SUITED PLACE FOR THAT TYPE OF BUSINESS IN MY MIND.

ANY OTHERS? I WOULD JUST MAKE THE COMMENT THAT I DON'T REALLY SEE A COMPELLING REASON NOT TO APPROVE IT.

BUT I UNDERSTAND THE ISSUE ABOUT LOCATION.

BUT I CAN ALSO LOOK AT OTHER PLACES THROUGHOUT THE CITY WHERE I KNOW WE ALSO HAVE MASSAGE ESTABLISHMENTS THAT YOU COULD SAY, WELL, THAT'S NOT REALLY ANY DIFFERENT THAN THIS SITE.

SO FOR THAT REASON I WOULD NOT BE OPPOSED TO THE PROPOSAL.

SO. I THINK THE ONLY THING I WOULD ADD BRIEFLY, AND I DIDN'T GO INTO IT INTO MY PRESENTATION, SO MY APOLOGIES FOR THAT.

WHAT STAFF DID WHEN EVALUATING IT IS LOOKED AT OTHER USES THAT ARE ALLOWED WITHIN GARDEN OFFICE TO UNDERSTAND AT THIS SCALE, KNOWING THAT THE BUILDINGS ARE DEVELOPED AND THAT THERE IS A CONCEPT PLAN IN PLACE.

IS IT POSSIBLE THAT A MASSAGE ESTABLISHMENT WOULD FUNCTION SIMILAR TO OTHER BUILDINGS? SO IF WE THINK ABOUT A CHIROPRACTOR, FOR INSTANCE OR EVEN A MEDICAL OR DENTAL OFFICE WHERE YOU'RE HAVING INDIVIDUAL APPOINTMENTS TO COME INTO THOSE SMALLER SUITES, OF COURSE

[01:10:09]

IT'S ALWAYS AT COUNCIL'S DIRECTION, BUT THAT IS WHAT STAFF EVALUATED.

WITH THAT ARE THERE ANY OTHER QUESTIONS OR COMMENTS? IF NOT, DO WE NEED AN ORDINANCE NUMBER ON THIS? YES, ORDINANCE NUMBER 39.

A PUBLIC HEARING. I'M SORRY.

YOU'RE RIGHT. OR DID WE ALREADY HAVE THAT? YEAH. OH, SORRY.

YEAH, WE DID THE PUBLIC HEARING.

MY MISTAKE. YES, WE DID.

WE DID. I'M SORRY.

YOU'RE THE APPLICANT. OKAY.

IF YOU WANT TO COME UP AND SPEAK ON BEHALF OF THE APPLICANT, YOU'RE WELCOME TO DO THAT.

MY NAME IS ANDREW ALEXANDER.

I LIVE IN RICHARDSON.

I'M ACTUALLY A MASSAGE INSTRUCTOR I OWN A MASSAGE SCHOOL DOWN IN RICHARDSON.

SO I WANTED TO ADD A COUPLE OF COMMENTS HERE.

THE FIRST THING IS I'VE NOTICED THAT A LOT OF THE GARDEN OFFICES IN THE ALLEN AREA ARE ACTUALLY IDEAL FOR GOOD MASSAGE.

THE SECOND THING I'D LIKE TO MENTION IS THAT CURRENTLY, BECAUSE THERE IS A CHIROPRACTOR THERE THAT ALL THE BUSINESS THAT THE PERSON THAT'S MOVING IN THERE IS ACTUALLY ONE OF MY INSTRUCTORS.

ALL THE BUSINESS THAT SHE DOES, SHE DOES MEDICAL MASSAGE.

IT CAN CURRENTLY BE DONE THERE UNDER THE CHIROPRACTOR'S OFFICE.

THE ONLY THING THAT'S DIFFERENT IS ONE THAT SHE CAN HAVE HER OWN OFFICE.

I'M NOT SURE IF THAT PUTS ANYTHING INTO PERSPECTIVE, BUT YEAH, I JUST WANTED TO ADD THIS KIND OF BITS FOR YOU.

AND I CAN ANSWER THE QUESTIONS ON THE SUBJECT IF NEEDED.

ANY QUESTIONS? SO AS SOMEONE WHO IS IN THE ACT OF COMMERCE WITHIN A CHIROPRACTOR OFFICE OFFERING THIS SERVICE, NOW THEY JUST WANT TO BE INDEPENDENT IN THEIR OWN SUITE? CORRECT. THEY BASICALLY LIKE THERE IS A THERE.

OKAY. GOTCHA. ALL RIGHT.

ANY OTHER QUESTIONS? I THINK SPECIFICALLY WITH THIS CASE, I'M NOT SURE IF IT MATTERS, BUT THIS IS SPECIFICALLY MEDICAL MASSAGE THAT SHE DOES, WHICH IS A LOT DIFFERENT THAN WHAT YOU NORMALLY GET FOR A REGULAR MASSAGE. ONE OF THE BIGGEST DIFFERENCES THAT LIKE IT IS HEALTH CARE.

IT'S, YOU KNOW, YOUR INSURANCE ACCEPTS THAT, THINGS LIKE THAT.

IT'S NOT A RANDOM WALK IN PLACE.

SO ANYTHING ELSE? NO. ALL RIGHT. APPRECIATE IT.

THANK YOU VERY MUCH. DAREN, DID YOU HAVE SOMETHING? I WAS JUST GOING TO SAY SO IT'S NOT ABOUT A SPECIFIC BUSINESS.

RIGHT. SO WE'RE JUST MAKE THAT VERY CLEAR.

SO IT WENT INTO THE DETAILS OF THE SPECIFIC BUSINESS.

AND THAT'S NOT WHAT WE ARE DECIDING ON.

BUT IT'S A MASSAGE ESTABLISHMENT.

AND WHETHER THAT USE IS APPROPRIATE IN THIS LOCATION OR NOT.

CORRECT. ALL RIGHT WITH THAT ORDINANCE NUMBER.

TRY IT AGAIN. ORDINANCE NUMBER 3957-9-22.

SO WITH THAT, I WOULD ENTERTAIN A MOTION AND A SECOND.

I'LL MAKE A MOTION TO ADOPT ORDINANCE NUMBER 3957-9-22 TO AMEND THE DEVELOPMENT REGULATIONS OF PLANNED DEVELOPMENT NUMBER 64.

DO WE HAVE A SECOND? SECOND.

WE HAVE A MOTION AND SECOND, DOES EVERYONE UNDERSTAND WHAT THEY'RE VOTING ON? IF SO, PLEASE CAST YOUR VOTE.

THIS ITEM PASSES 4, 3.

CONGRATULATIONS. GOOD LUCK WITH YOUR BUSINESS.

THANK YOU. NOW, MOVING ON TO ITEM 6.7 TO CONDUCT A PUBLIC HEARING AND ADOPT AN ORDINANCE FOR A SPECIFIC USE PERMIT FOR APPROXIMATELY 2,080 SQUARE

[6.7 Conduct a Public Hearing and adopt an Ordinance for a Specific Use Permit for approximately 2,080 square foot portion of a building for a Fitness and Health Center use generally located southeast of McDermott Drive and Custer Road commonly known as 2035 McDermott Drive, Suite 460. [Hero Training]]

FEET OF A BUILDING FOR A FITNESS AND HEALTH CENTER USE, GENERALLY LOCATED SOUTHEAST OF MCDERMOTT DRIVE AND CUSTER ROAD, COMMONLY KNOWN AS 2035 MCDERMOTT DRIVE, SUITE 460 HERO TRAINING.

AND WE HAVE KIM YOCKEY, THE SENIOR PLANNER, IS GOING TO MAKE THE PRESENTATION.

DID I PRONOUNCE YOUR LAST NAME CORRECTLY. YES, YOU DID.

THANK YOU. THANK YOU, MAYOR, MAYOR PRO TEM, AND MEMBERS OF CITY COUNCIL.

WE ARE IN A PUBLIC HEARING TO ADOPT AN ORDINANCE FOR A SPECIFIC USE PERMIT THAT THE MAYOR JUST RECENTLY READ INTO RECORD.

IT IS ROUGHLY IDENTIFIED BY THE YELLOW STAR ON THE MAP ON THE LEFT.

IT IS GENERALLY LOCATED ON THE SOUTHWEST CORNER OF MCDERMOTT DRIVE AND CUSTER ROAD.

THE SPECIFIC PROPERTY IS OUTLINED IN RED WITH THE SPECIFIC TENANTS FACE SHOWN IN YELLOW.

THE PROPERTY TO THE NORTH IS IN PD 56 WITH A BASE ZONING OF SHOPPING CENTER.

[01:15:01]

THE PROPERTIES TO THE EAST AND SOUTHEAST ARE IN PD 56 WITH A BASE ZONING OF SINGLE FAMILY PROPERTY TO THE SOUTH IS ALSO IN PD 56, WITH A BASE ZONING OF SHOPPING CENTER, AND THE CITY OF PLANO IS LOCATED WEST OF THE SUBJECT SITE.

THE SITE ITSELF IS ALSO IN PD 56 WITH A BASE ZONING OF SHOPPING CENTER.

TONIGHT WE ARE CONSIDERING THE ORDINANCE RELATED TO HERO TRAINING'S SPECIFIC USE REQUEST AND TWO OF THE ITEMS RELATED TO THE ORDINANCE INCLUDE IDENTIFYING THE SPECIFIC TENANT SPACE THAT THE ACTIVITIES RELATED TO THE BUSINESS WILL OCCUR, AS WELL AS PROHIBITING ANY EXTERIOR OUTDOOR ACTIVITIES RELATED TO THE BUSINESS.

THE BUSINESS ITSELF IS LEASING 2080 SQUARE FEET AND WILL OFFER INDIVIDUAL AND SMALL GROUP FITNESS TRAINING.

AT THE SEPTEMBER 6TH PLANNING AND ZONING COMMISSION MEETING THEY RECOMMENDED APPROVAL AND STAFF CONCURS AND RECOMMENDS APPROVAL AS WELL.

I'M HAPPY TO ANSWER ANY QUESTIONS AS WELL AS THE APPLICANT.

THANK YOU, COUNCIL ANY QUESTIONS BEFORE THE PUBLIC HEARING? WHAT ABOUT YOU, BEN? NO, SIR.

OKAY I SO YOU'RE MIC HOT. SO JUST I DO PAY ATTENTION TO THOSE RED LIGHTS.

ALL RIGHT, WITH THAT, WE'LL GO AHEAD AND OPEN THE PUBLIC HEARING.

ASK ANYONE WISHING TO SPEAK FOR OR AGAINST THIS REQUEST TO PLEASE COME FORWARD STATE YOUR NAME AND ADDRESS FOR THE RECORD.

SEEING NO ONE COMING FORWARD WE'LL GO AHEAD AND CLOSE THE PUBLIC HEARING AND TURN THE MATTER BACK OVER TO THE COUNCIL.

IF NOT, DO WE HAVE AN ORDINANCE NUMBER? ORDINANCE NUMBER 3958-9-22.

DO WE HAVE A SECOND? THINK WE NEED A MOTION.

I'M SORRY. I'LL MAKE A MOTION TO ADOPT ORDINANCE NUMBER 3958-9-22 GRANTING SPECIFIC USE PERMIT 184 FOR A FITNESS AND HEALTH CENTER.

I WILL SECOND THAT. WE HAVE A MOTION AND SECOND, DOES EVERYONE UNDERSTAND WHAT THEY'RE VOTING ON? IF SO, PLEASE CAST YOUR VOTE.

THIS ITEM PASSES UNANIMOUSLY.

THANK YOU VERY MUCH FOR THAT.

THANK YOU, TOO. NEXT, WE'LL MOVE ON TO ITEM 6.8, WHICH IS TO APPOINT TO FILL NEW AND EXPIRING TERMS AND VACANCIES ON THE FOLLOWING

[6.8 Appoint to fill new and expiring terms and vacancies on the following Boards, Commissions, Committees and Corporations: Animal Shelter Advisory Committee, Board of Adjustment/Building and Standards Commission/Sign Control Board, Central Business District Design Review Committee, Community Development Corporation Board, Community Engagement Advisory Board, Convention and Visitors Bureau Advisory Board, Economic Development Corporation Board, Keep Allen Beautiful Board, Library Board, Parks and Recreation Board, Planning and Zoning Commission, and Public Art Committee.]

BOARDS, COMMISSIONS AND COMMITTEES AND CORPORATIONS, INCLUDING THE ANIMAL SHELTER ADVISORY COMMITTEE, BOARD OF ADJUSTMENT BUILDING AND STANDARDS COMMISSION SIGN CONTROL BOARD, CENTRAL BUSINESS DISTRICT DESIGN REVIEW COMMITTEE, COMMUNITY DEVELOPMENT CORPORATION BOARD, COMMUNITY ENGAGEMENT ADVISORY BOARD, CONVENTION AND VISITORS BUREAU ADVISORY BOARD, ECONOMIC DEVELOPMENT CORPORATION BOARD, KEEP ALLEN BEAUTIFUL BOARD, LIBRARY BOARD, PARKS AND RECREATION BOARD, PLANNING AND ZONING COMMISSION, AND PUBLIC ART COMMITTEE. JUST A REMINDER THAT WE DO HAVE A NOMINATING COMMITTEE ON THE COUNCIL THAT CONSISTS OF THREE PEOPLE WHO RECEIVED DATA SHEETS, REVIEWED THEM, DID INTERVIEWS, AND THEN ARE PREPARED TO MAKE RECOMMENDATIONS.

IF FOR SOME REASON WE NEED TO BREAK INTO EXECUTIVE SESSION TO DISCUSS ANY INDIVIDUALS SPECIFICALLY ON QUASI JUDICIAL BOARDS ONLY, WE HAVE THAT OPTION.

SO SOMEBODY WILL NEED TO TELL ME WHETHER WE NEED TO PURSUE THAT OR NOT.

HOWEVER, WE CANNOT CONDUCT AN EXECUTIVE SESSION RELATED TO NON QUASI JUDICIAL BOARDS OR COMMISSIONS.

SO WITH THAT, I WILL TURN THIS OVER TO THE NOMINATING COMMITTEE.

AND I BELIEVE, CARL, YOU ARE TAKING CARE OF THAT? YES. OKAY. THANK YOU.

I JUST WANTED TO THANK THE NOMINATING COMMITTEE FOR THE TIME THEY SPENT.

WE INTERVIEWED A TOTAL OF 62 CANDIDATES FOR 15 POSITIONS AND WE SPENT COUNTLESS HOURS.

AND SO, AGAIN, THANK YOU FOR THE CITIZENS WHO CAME OUT AND APPLIED FOR THESE POSITIONS.

IT'S REALLY A TOUGH DECISION FOR US BECAUSE THERE ARE SO MANY GREAT CANDIDATES AND SUCH A LIMITED NUMBER OF OPENINGS.

SO WITH THAT, SHOULD I GO AHEAD AND READ THE NOMINATIONS? YES, OKAY I'LL GO BOARD BY BOARD.

ANIMAL SHELTER ADVISORY COMMITTEE.