San Angelo City Council 8-20-19

[0:00:00] to order welcome everyone and we ask that if you have a cell phone if you would please put it on silent or vibrate and with that we will start off with our chaplain prayer we're going to have gary jenkins join us this morning for our prayer and he is the chaplain in the police department good morning everyone well let us pray father in heaven in the name of jesus your word says that blessed is the nation whose god is the lord father we thank you for living in a nation where we can bow before you freely and worship you we thank you for this day that you have made we thank you for the san angelo city council meeting and we give honor to you lord and to the honorable mayor brenda gunter to the esteemed members of the san angelo city council to our city clerk our city attorney the city manager and all department heads we ask you to bless them from the crown of their heads to the souls of their feet through and through we pray that you endow them with wisdom and knowledge and revelation to be able to carry out the business of the city with excellence as unto you we pray for all of the residents and visitors that are here in the chamber today we pray for our city that this city will continue to be a city that we can be proud of and that we all can love and and live peaceably together i pray father for the challenging times that come when they do come give us the resolve to be able to overcome and to be able to resolve every issue at hand we pray as mayor gunter has often said we pray for rain for the city we pray god that you'll continue to water us

[0:02:02] not only with the rain but with your blessings all these things we ask in jesus name and for your name's sake amen and amen god bless you and i think gary forgot to say we pray for cooler weather along the way maybe thank you gary this morning we have three wonderful children here to help us do our pledges so we have jeremiah flores norah flores and sayla flores come forward please did i get your name right with liberty and justice for all honor one an indivisible come over here with me today we have two proclamations and the first one is for the united way the concho valley and robin flores who's the mother of the children who just did the pledges force is going to come forward while i read the recognition of the united way of the concho valley hope delivered donations to the 2019 united way campaign provide a wealth of

[0:04:05] opportunities to children families and the elderly here in the concho valley children many of them from low-income families receive hope that they can be successful in school and live through after-school programs where they are provided tutoring and guidance parents receive hope that they can provide for their families and better their lives by having quality affordable child care for their children battered women in our community receive hope to rebuild their lives and heal from the wombs of their past veterans and their families are given hope through mental health services substance abuse treatment and outreach during their time of crisis last year your donations helped united way of the concho valley deliver hope to just under 41 000 of our friends and neighbors with your continued support we can accomplish even more the city of san angelo supports the united way we ask that you do the same therefore i brenda gunter mayor of the city of san angelo on behalf of the city council do hereby recognize and applaud the united way of the concho valley for its achievement and positive determination to make a difference in our community thank you robin would you like to speak i want to say thank you for your support and and we really do appreciate it and the 19 programs that we um help fund appreciate your support as well so thank you [Applause] the west texas mayors of amarillo lubbock big spring

[0:06:07] abilene midland odessa and san angelo have proclaimed the week of august 19 2019 as el paso strong el paso fuente week our city is shocked and saddened by the deaths of 22 people and injuries to many others on august 3rd 2019 in the city of el paso texas these people were sons and daughters mothers and fathers sisters brothers husbands wives family and friends of people left behind in this tragedy the multiple law enforcement agencies who responded to the situation displayed courage and prepared response skills that want recognition and gratitude every life is valuable no matter a person's individual beliefs ethnicity occupation political views cultural choice graphic origin or nationality el paso is a city with a rich history in our state with a strong economic and educational impact for our future with a valued portal for international trade tourism and cultural development and most importantly it is the home to over 680 000 fellow texans el paso is the largest city in our west texas region and a valued partner in leading our west texas region west texans stand together to face difficulty including devastating heartbreak in the struggle to move forward and face the emotional realities of searching for quote new normals where life will never be the same west texas is our collective home and we value the safety and security of that home for all west texans therefore i brenda gunter mayor the city of san angelo on behalf of the city council do hereby proclaim the week of august 19 2019 as el paso strong in san angelo and stand behind the people and leadership of our sister west

[0:08:09] texas city as they grieve move forward in hope and stand strong for a future that is safe and secure for all people we call on all citizens to continue to carry el paso and every person affected by this tragedy and their thoughts and prayers thank you at this point on the agenda we will open up the city council meeting with public comment issues or items that are not on the regular agenda may be raised by the public at this time citizens should speak from the podium begin by stating their name and limit remarks to less than three minutes council members may request that a discussed item be placed on a future agenda the council takes public comment on our regular agenda items during the discussion of those items i'd like to open up the meeting with shane if i think i saw shane i hope could you come forward and explain to the public the work that's being done on south bryant boulevard there's been nothing in the paper nothing that's covered what's going on there and i think a lot of citizens are confused about um the bridge area that's being closed that's been closed off and some of the work that's being done there yes ma'am the the takestop bridge there on southeast it's uh where the joints come together uh where the joints of the bridge come together it's basically filled up with material um that has hardened and it's it started to come apart and started to push the push the pavement up there's it's nothing to be concerned over it's just one of those

[0:10:10] things that happens over time so text out what they've done they've got an emergency contract and they're going to basically come in there and clean out two sides of the bridge put it back with the expandable material that needs to be in there and then do the other side so that's it in a nutshell so is there a time frame they should start work hopefully within the next 30 days i know lance lance attended the pre-con for it so he may have better timelines than i have on it so because two lanes are closed off now right so there's a single lane available to the public yes ma'am i did attend that tech stop pre-con and they are going to be starting in the next three weeks with that they will be doing one side of the bridge moving on to the other side of the bridge they're anticipating that it would take i think they said around three to four weeks because once they have cleaned out those joints they are going to be going back in and putting concrete and re patching the deck as well so that'll have to cure and so they are currently in the process of getting everybody mobed in and all that material and i actually did see some sign board work going on yesterday when i was in that area for another project so no one needs to fear that that bridge is going to collapse so that it's breaking apart and there's a safety issue there no there isn't a safety issue at all what has happened is over time where those joints come together as shane mentioned material has fallen into those cracks and as it heats up the material that has fallen in doesn't expand and so what ends up happening is if you have something heating up and wanting to grow and there's no room for it to grow what's happening is those material the seams are actually buckling up a little bit because they can't grow out and so the whole idea is that they're going to go through clean all those seams out put that in that compressible material back in to fill that gap with something that works and then patch the deck but there's no structural concern at this point so okay thank you very much

[0:12:13] do i have any further public comment with no further public comment we will move into the consent agenda i will start with billy and ask if there's anything she'd like to pull off of the consent agenda uh yes mayor i'd like to pull item e okay lane lucy at the nipple harry tom tommy and i'd like to pull item d with that do i have a motion to approve the consent agenda with the exception of item d and item e any public comment no public comment we will take a vote all in favor say aye aye with none opposed consent agenda with exception of d and e passes all right we'll start with item d uh julia it says consider resolution adopting reasonable rules for public comment will you please talk about what that means yes ma'am i'm julia antley city clerk and in the recent legislator legislature house bill 2840 was passed and that adopted specific public comment rules that are effective to everyone a lot of these rules we were already following and but we wanted to adopt something formally so let me tell you what we'll be doing citizens can now make public comment either on an item that will be placed on the agenda they can either do that when the meeting opens when you call for public comment like we just did or they can wait until the item is called so that's a big change a lot of cities only took public comment on items where it was required our city council has had a history of taking public comment on all items so that won't be a big change for us but for some cities that is a pretty major and we've also added that citizens should introduce themselves not only by name but also either by address or by their smd number so we know who the

[0:14:16] comment is addressed to and also that will identify whether or not someone is actually a resident of the city or if they're somebody from the county so it'll just kind of be a little more pointed on who the comments might be directed to and who they could work with in the future and then if someone is speaking as a proponent as an applicant or as an applet of a case that's being heard maybe by planning those folks would be given five minutes to speak as opposed to our general three minutes the three minutes will stay for any other type of public comment but for someone who's actually vested in a case they'll have five minutes and one of the key changes to this is that our time we haven't had this issue that i'm aware of but for cities where a interpreter is required and their time limit is specified and doesn't count against the interpreters so that person would be given at least double time so that there's time for both languages and and then the public commenters can speak to the council only once on each item unless somebody on the dice would ask for them to provide maybe a rebuttal or more clarification later repeat that part so they can only speak one time on each issue on each issue and then anyone who's wishing to provide documents for display on our system they would need to turn those in to the city clerk and at least four days in advance we've specified 96 hours because sometimes our meeting days change but they would need to provide their documents and limit it to 10 pages or 10 slides just so we can keep the meeting flowing and the same time limits would apply um either three or five minutes when we opened up to public comment if someone had documents that they brought forward to the podium are those allowed to be

[0:16:18] we can we can still pass those around they just wouldn't be displayed on the screen and it wouldn't make its way into the channel 17 and all the other mediums that we have so it's still better for them to provide their documents in advance but if they wanted to do a handout the day of we could certainly do that and scan that into this system so it's part of the permanent record and then just one clarification um instead of directing a comment maybe to somebody else in the audience or a staff member all comments must be made to the city council instead of kind of pinpointing someone okay do i have any questions or need for further clarification to julia all right do let's go ahead and make take a motion on that so do i have a motion to pass item d second is there any public comment on item d about the rules for public comment anna bartosz single member district one i do have a question on the last part that you said uh everything should be addressed to the whole city council even though you're supposed to identify your single member district so that seems like you're it's in conflict just direct it towards the diocese not pinpoint a staff member or be having side conversations with someone else in the audience because some of us who might not be in your district might have a question for you so the need to address the entire city council is relevant to getting information from other people perhaps i guess thank you any further public comment with none we'll take a vote all in favor

[0:18:21] say aye aye none oppose motion passes seven zero we will move into item e which is consider accepting the city's revised fiscal year 2018 comprehensive annual financial report good morning afr tina dierski director of finance good morning mayor city council and mr valenzuela so this item is a revision of our kafir which we presented to you and you approved back in may it is for our year ending september 30th 2018 and the changes that were made to it were that revenue was restated and the water sewer storm water and solid waste funds um this was they were restated because yep i was getting to that yes ma'am it was due to a journal entry that our auditors present every year and it's to accrue for the revenues that were billed in september but then received in october so it's an accrual of revenue and when they receive that report this year i've asked gayla thornton our partner in charge of our audit to be here to kind of give you an explanation as well but it's my understanding when when they compiled that journal entry the report was in a different format and so um the information was i'll let them explain their side of it if you if you'll allow me to do that and then the other thing that changed was just that we had presented the ford ranch debt issue um as a certificate of obligation and indeed it's actually a revenue bond and so we just made that change while we were making the change to the revenue adjustment question for tina i'd like to hear the auditor share with us all right gayla would you come forward please kayla i'm i'm not an accountant and don't have any accounting experience so i'm just trying to understand you know what should have happened okay so the information provided to us in the past was it was presented differently this year it was filtered a

[0:20:23] little differently and so the numbers used for that accrual which means there was revenue that was earned in september but not billed until october and we needed to bring that into the september year well the wrong calculation was made this entry was never posted in the blue book because it was an audit adjustment and it's for the kafir only so information that you've been provided each month has not been affected by this this is just a presentation thing we had two choices we could have waited until the next audit and just corrected the error through a prior period adjustment or we could re-present this to you and uh management finance michael dain they all prefer to do this for transparency because i think the city's planning on going out for debt and they wanted the numbers to be accurately reflected so this was just an attempt to be very transparent in that miscalculation so did i understand you correctly it was for services billed in september but not collected until october services earned so the water was used in september but the bills didn't go out until october okay and so this is called unbilled revenue that because the water was used in september we have to bring it back into the september year and that would happen every year right gala yes ma'am so that revenue was was recorded in october in the blue book so it's just a timing difference is what that does that help you well sorta if it was used in september wouldn't we have the actual amount to post billy can i give an example okay uh if your water bill ran from the middle of the month to the middle of the month that so you had a 30-day water bill that ran from september 15th to october 15th

[0:22:25] would go out sometime after october 15th but you used as a customer you purchased city water from september 15th to september 30th but it wasn't billed and collected until the new year so what this adjustment attempts to do is capture that 15 days in this example of activity and place it in a proper accounting period which is in the 12th month of the prior fiscal year and so not the whole bill but a piece of the bill that went out in october actually is associated with the the prior year's activity and uh it's but it's for 30 000 customers and it's it's fairly substantial it is pro rated even with even though it's a 30-day window it is pro-rated so that the october is october september is september just for audit purposes for your management purposes it's not done that way it's recorded when the bills go out so this is just an audit adjustment what's the what's the financial so in other words if we look at the water department what does the water department say its revenue was if it's just an audit adjustment what does allison know she has in terms of her water what it did was overstate revenue for each of the funds that dina mentioned in other words they put too much revenue into september but in the long run it's just it's just an audit entry it is not an entry that affects any of the of the funding for allison well it would from one budget year to the next because it is the end of one year in the beginning of another year mayor you're correct if that entry had

[0:24:29] been used in the blue book it's used to prepare our audited external financial statements and those entries get reviewed by ryan gaddy who kudos to ryan he caught this one and said this looks too too high so good job ryan uh before they get used in the preparation of the blue book so it has not had an impact as gala mentioned has not had its impact on the blue book on any of the blue books yet so when we get our next when we get our september 30th blue book it will or will not be reflected in there well i know but regardless of whether it was this year last year it's the same thing that's a good question mayor that's a good question um because uh we did not post it to our financial software system our general ledger it will never be reflected in the blue book neither the error nor the correction because ryan caught it before he posted it to our financial system software on our general ledger it was never posted it will never impact your blue book okay so you're saying he caught it way back in 2018 in september our uh because we haven't got to september 2019. financial report is prepared well after the end of the year about three we usually start working on it in december so no we did not catch it in 2018. we caught it after the auditors completely finished their work and their report then they give us the journal entries to post that bring our financial software into a full accrual system we present the the blue book on a monthly basis without those uh audit adjustments in there because we do not we don't operate on an accrual basis it will never have an impact on your blue book or what you see from month to month and it will not there will be no changes to your blue book from september so if one said that in a certain department they were at 75 percent of their plan it could be in highly inflated in the

[0:26:33] blue book no ma'am it was never it was just clarifying our general ledger is what we used to prepare the blue book because we never posted this entry to our general ledger it will never have any impact on your blue book numbers additionally keep in mind that this is year-end activity the auditors are doing their field work audit work after the end of the year by the time this entry was created we were four or five months into the new fiscal year and so we were thinking about the new year moving on the new year and so allison sorry because we're talking water we had to do bring up the water issue i saw her back there someplace so we're not picking on you it's just water came up so it's an easy one to talk about because they use that as a reference for billing so this is not picking on you it's just a reference okay yeah we know i know but we just need to make sure that she enters also this is this may be more than we need but no it's not because of the nature of an accrual and reversal system what you go over in one year it's a timing issue you may if you had placed too much in the prior year you would place too little in the new year so over the fullness of time those that kind of error if it had been been the kind that would have gotten posted uh would have uh offset itself by now we're just trying to be as trans as you said we need to be transparent so these questions are meant to bring transparency to the subject you want transparency for so we're just clarifying the transparency conversation right i agree mayor and as gayla said we have the option to just wait until the next year's audit to fix this error but i believe that it was more transparent to our citizens and to those that rely on our cafe for example credit rating agencies to make the correction currently before we before anybody uses

[0:28:36] that for decision making are we all transparent i think we are thank you gayla um billing the entire city operates on a cash basis throughout or a modified accrual basis throughout the year and at year end the auditors put us into a full accrual basis of accounting all right thank you thank you mayor i moved to approve item e on the consent agenda second in a second by lane do we have public comment with no public comment we will take a vote all in favor say aye aye with none opposed item e passes seven zero that completes the consent agenda for today's august 20th meeting so we will move into the regular agenda and we will start off by a presentation of the downtown san angelo inc bi-annual report dale velasquez good morning mayor council members mr valenzuela i'd like to start off this morning to with introducing two new additions to our staff at downtown san angelo inc we have monica ramos monica ramos started with us in uh in march and she's our new office manager so in case you haven't met her i'm sure you will at some point or another and also want to introduce bella kinsey bella is with the americorps vista program and i want to thank i know saw a guy back there i want to thank guy andrews for the grant that supports having her on our team she will be she started in july and will be with us uh a whole year until so she'll be leaving

[0:30:39] us in july 2019 but she's been great to work with because she's working on grants so that's very important to our organization also um wanted to something that's not in your packet that i wanted to mention to you uh last year i received a phone call from a gentleman in amarillo and he was asking me about some of the incentives that potentially are in downtown san angelo and and he mentioned one of them that i was not aware of at that point and it's called texas pace and that program i won't go into a lot of detail with it but it is an incentive and we we were able to pull together a team and discuss it and last week uh the formal uh formal documents were signed and we're now a texas-based city and again it creates incentives for builders uh in relationship to saving uh energy water electricity and those kinds of things when they're developing a project so it's another one of those tools in the toolbox as far as incentives so i wanted to mention that i was extremely happy that we were able to accomplish that as far as our report i wanted to mention to you that i wanted to go into a little bit of the revitalization from january 1st through july 30th over 12 million dollars have been and reinvested in in downtown san angelo these numbers are provided to us from tom green county appraisal district also the city of san angelo permits department and what we look at is funds that are spent either with purchasing a new property or developing a or remodeling or revitalizing a property and then also new construction so those those are

[0:32:42] where this number this 12 million dollars comes from the total reinvestment for downtown we started tracking this by the way in 2007 the total is over 223 million dollars that have been reinvested in downtown san angelo so those are impressive numbers in my book and so we continue to develop and build the downtown district we had six new businesses that have started from january to now that have developed in downtown san angelo and one that has relocated the bill the picture that you're looking at right now is one of the projects that i'm referencing and it's the old firehouse the old central firehouse ben brew i think most of y'all are familiar with that particular property and we're again extremely proud of what's going on there this is another project that a gentleman purchased three buildings actually four he one of them is a parking lot uh 6 8 10 and 12 east concho avenue and he's done a really nice job of revitalizing remodeling those buildings and the other business that's in two businesses here the uh one solar and um i forgot which one that is but uh so these are part of the development that i'm talking about these numbers that i'm writing so your picture on the left is what it was your picture on your right is what it is that's correct and then um this is the one business that relocated into downtown helen's bistro and bakery it's in the library and then a new sports bar that was created on south chadburn used to be the civil local if you all remember that here's a list of the new businesses that

[0:34:44] have been moved into downtown and a very variety wanted to mention we've had an influx last year of personal training facilities that have moved in we had six come in and late last year and early this year and now we're seeing a little bit of salon activity we've seen some new salons come in we've got six salons in downtown the reason for that is well you know retail has been a tough market to play in these days with all of the internet and companies that target our consumers that way and so something that is amazon walmart proof if you will uh these are the ones these are the types of businesses that you can't get online so they've been very successful and we're certainly happy to have them in downtown um as you know tears is an important part of our revitalization effort one of the tools in the toolbox that i referenced earlier um this year we've spent 200 or tears has provided 254 thousand dollars in grants uh i'm starting off here with fuentes downtown cafe as you all may know that we had a uh an accident that it's over here will soon be over a year old in terms of its reconstruction i had dinner with john by the way he's my cousin last night he was telling me he hopes to be able to play open and at the end of september that's his goal we gave the old central firehouse 50 000 for sprinkler system and uh dean and dean attorneys uh 14 000 serenity trading posts 30 000 for facade both of those are facade uh 30 000 for east six east concho and uh 70 000 for the buffalo soldier art gallery for uh fire sprinkler and

[0:36:49] facade improvements so those products that building probably is the worst building in downtown or close to it i would probably agree with you it is really a sore sore for the downtown district and so uh we look forward to having that one redone and back up in business so in essence from the reinvestment report i already mentioned that we have over 12 million dollars in reinvestment of properties in the downtown district i wanted to give you a slight different perspective on what sales tax and mixed beverage taxes are relative to the overall city that you'll see there on the first column in the left hand and then we have in the middle the central business district the cbd district and with what is is generated both in sales and mixed beverage taxes and then just the main street district and just for clarity the central business district starts at the corner of avenue c off of char south chadburn and goes all the way up to third street on the north-south boundaries on the east boundaries uh it is randolph well and just recently you approve the expansion of the central business district so some of these numbers oh we haven't yet sorry okay but you're going to i think i think it's going to be discussed today okay uh so right now it's at randolph street on the east side and on the west side it goes to magdalen street so that kind of gives you an idea what the central business district boundaries are and did i say third street sorry okay on the north end and on the main street district it is if i'm going to start on the south washington drive runs east-west on the south end but it also curves back up as you go further west and goes back up

[0:38:53] into 6th street so if you draw a line going back up that way and then cut across on 6th street all the way to main street and then down main street going back south all the way across the river to washington street that is the main street district and that district was designated back when downtown san angelo became a main street city and so those are the businesses that are accountable in the main street district uh and what we show here is you'll see that we have uh for the uh 2019 um we show a five percent increase both in revenue or sales sales tax and mixed beverage uh tax um i think you forgot the decimal in that because it shows 51 percent uh on the first quarter reference yeah there was which couldn't be correct okay i'll have we'll have to look at that i'm not sure about that we would hope we would have a 51 increase we would all be celebrating but don't think we did during the first quarter of this year overall the city okay yeah we'll have to look at that one again so relatively speaking we show an increase all the way across the board in terms of what's happening in downtown we're not at a negative which is a real positive on our marketing and promotions we create a magazine downtown historic downtown san angelo this particular issue the spring summer of 2019 we highlighted paintbrush alley i hope everyone knows about paintbrush alley and if you know that the theme for the paintbrush alley is the movie giant and so we um our our team created a really neat graphic of featuring the paintbrush

[0:40:58] alley and art and uncommon places has been an incredible partner for us to work with in terms of what they're doing to create tourism of venues activities in downtown uh we also participated in the 2019 graffiti experience and and then there's just a graphic of one of the booklets that we created commemorating the paintbrush alley party which was attended approximately by about 500 people which was again a really neat activity for us the sheep the flock keeps growing uh here are some of the latest sheep that have been recently purchased i hesitate to quote a number but i think we're about 106 sheet right now and then the total number of sheep that we sold and as you will know that is the fundraiser for us and that has become a legacy even this week the texas downtown association posted on their facebook page they highlighted our sheep project and gave us kudos for creating such a great art project in our community as far as promotions we have the downtown stroll every month every third thursday of the month and here are copies of the uh of the flyer that we create every month and the venues that participate with us to promote downtown and our upcoming event and another fundraiser for us is the uh bruised use and barbecue this is our fourth year uh that we've initiated this project and um this year we're adding a kids queue so children are going to be able to participate from ages 6 to 15 and i believe we got word yesterday that both the late view and central culinary school students are going to help participate with us in that project so outreach in the community continues

[0:43:00] across the board here are some of the some photos of some of the activities we participated in the ribbon-cutting at the old firehouse asu invited us to participate at the arctic exhibition exchange with malaysia university and i was given opportunity to speak at that and and then we received the proclamation for historic preservation month again more outreach one of the things that we do is participate with asu we have a great partnership we get an intern from the school of business and also an intern from the arts and graphics department and they help us create those flyers for the downtown stroll and create some of the other art that we produce for different events and activities and that concludes my presentation do i have questions from counsel um billy very good report thank you dale but mayor that it 51 is correct the percent change from 2018 to 2019. well that's do you have the alcohol and sales tax because that was a combined report what i was seeing here is that he's saying the percent on san angelo yes the percent change from 2018 to 2019. remember we get our sales tax performance every every month here you know and we've never had a 51 percent increase in sales tax performance as a city and that would mean we would have to have a huge huge huge increase in alcoholic sales in order to produce 51. if you go back and look at the january february march 2018 to 2019 and you combined those three months i don't think we would come up with that percent but nonetheless let's just say it's a positive trend it just would mean

[0:45:02] we would have a huge increase in liquor sales to produce a 51 percent change but well it's the is it a percent or is it a percent increase over the previous years it's a not market share but you got your 51 from the 3.5 increase with 1.8 to get your first quarter 2019 5.388 right and that's a 51 increase from the 3.557 to 5.338 388. that's the 51. so for the for the first quarter the sales tax was four million nine hundred and eighty two thousand four hundred and eighty three dollars and the mixed beverage was four hundred and five thousand six hundred and twelve mm-hmm so that totals 5 million 388 is that yeah so the question mark is whether the 2018 is correct at the 3557 mayor and we can't tell from here because we don't have the background but i'm just saying if you look at our sales trend january february march our sales trends this season have been around the five to ten percent increases so if you had a five to ten percent increase every month you can't have a 51 percent unless you had 75 percent or more increase in liquor sales and i don't know that we did that that's well that's that's just where the calculation of the fit i'm just saying one of those numbers has to be wrong but nonetheless it's positive because we've had positives so it's good yeah overall um i can't tell you enough how we have our our phones are ringing people are looking for office space they're looking for all types of different buildings that they want to purchase and lease and so we're we're getting a lot of inquiries uh relative to what's happening in

[0:47:04] downtown i've had the opportunity this year to already visit with corpus christi the city of corpus christi called and we had a conference call and i had an opportunity to talk about our program because they see us as a model city for main street and also i've had conversations with lubbock and wichita falls and on later this month i'm going to be meeting with rosenberg texas as well and they initiate these phone calls they call and say hey we understand that your city is really doing your main street city is doing really well and we want to know what you're doing and so we have those kind of conversations uh with my my peers so i i think we're on track as far as what we're trying to accomplish and what's the number one thing that needs to happen get downtown living we've been working on that forever seems like and uh hopefully soon we'll have something something's going to happen and you know we we've just been from experience when i came on board in 07 i think it was an 08 we had one very successful nightclub come into town and that kind of turned the tide for all the nightclubs we really are pretty much an entertainment district downtown and and and so the domino effect occurred and we believe strongly that once we can get one of those mult one of those buildings uh with downtown living that will happen as well we'll see more development in that area what's the total downtown reinvestment since 2007. 223 over 223 million mara do you have a question um you mentioned 16 new businesses from january to now we do know i mean you do have to be amazon proof of walmart proof we do understand that so you have specialty businesses niche businesses that will come into those areas you

[0:49:07] mentioned 16 new businesses from january to now when you look at that and of course we know the new businesses do start up and some of them don't last very long are we still i mean we still vote very well as far as the number of new businesses start up compared to the ones that actually closed down uh yes um we actually was six not 16 but 60 businesses 16 businesses um we had two that shut down within this period of time okay so we're we're in the positive oh yes yeah right and the two that were one of them was a restaurant and the other one was an art gallery so yes the short answer is yes we're in the positive as far as continuing to see businesses that are are looking to be downtown and want to be downtown so they do come to you for advice and they ask hey dale what do you think i'm thinking about starting this business do you think this will be okay in the downtown area yes sir and because of um the nature of who we are as an organization um i don't necessarily take on those questions i i do refer them to the small business development center and and when it comes to incentive i refer them to besides the ones i'm very familiar with if there's something that's unique about them i also encourage them to visit with the economic development at the chamber or the coast of dc if it's appropriate the city of san jose development corporation so we try to continue to work with across the board with every organization because i don't know it all we don't know it all and we rely on all the resources that we can uh call on to for us to be successful and of course we want everybody to be successful good clarification thank you but there's still a lot of buildings left for anybody who's interested in yeah you know business downtown re going through the

[0:51:09] the vacant building uh list right now and i am very happy to announce that and we're not finished but we've reduced the number of vacant buildings quite a bit uh it's become difficult to find a the proper building for the interest level is greater than your ability to find a building to fit the need of that business yeah that's correct um but um so we we've we've moved we're moving in the right direction that's all i mean that's bottom line do i have further questions for dale i don't have a question but i would just like to uh compliment you dale on the work that you're doing sounds like you're really doing a very good job and i appreciate the report and so i hope you will continue to you know present personally because you have happy news i know sometimes it may not always be happy but today you have happy news about the progress that's happening and you can drive through a lot of texas cities and their downtowns are not close to being as vibrant as ours is so i just appreciate the work you put into it and also i want to thank you for participating in the vista program um you know that is such a worthwhile program and i just you know hope we continue to make it be successful in san angelo so all right thank you for doing that thank you for the compliment and um and we enjoy coming to city council it's fun i think when billy you were asking about the presentations one of the things that was in that language was that they no longer had to do with the downtown development group which is a separate group and organization than downtown san angelo inc and it referred that presentation to the downtown development group not downtown san angelo inc because of if you go further into the documents it it shows that they would do bi-annual reports so what's the difference in those two groups downtown development group does not exist

[0:53:12] it wasn't what did we because it used to be in the original contract and that contract was five years old so it was language that was omitted oh taken out okay yep mayor i do want to add a five-year-old contract very quickly paintbrush alley if you haven't been out there my family has come i've had multiple family members come visit we go by paintbrush you talk about photo opportunities they just love it so citizens if you haven't been out there go check it out it's a wonderful place and we really enjoy it oh it is uh daniel thank you for that and also i just wanted to take the opportunity to announce that there is another one that's on in the works it's going to be at 123 west tuig and it's going to be called uh pop art museum it's an open art museum it'll be an open art building that was been vacant for a very very long time and it has a history in san angelo and that's going to be an incredible piece of artwork as well we picked up on that and did a big story on it sorry who picked up on that news story um well uh lonely planet it's um an international i think it's international um news agency that put out a story on it it was they're based out of new york city and um and so it's we're getting a lot of attention let me put it that way tom did you have a comment yeah i got a question dale i know some like on the tears funding that we do some of that is spent on code compliance uh sprinkler systems and things like that when somebody brings over and just initiates the move of taking over one of these buildings code compliance does that create a lot of heartburn for them to take over one of these buildings and do we have a program that helps them adapt to that over a period of time over a couple years instead of taking it all at once because i've heard lots of heartburn with that and i'm glad to see we have a way to help them but i think sometimes it does create a lot of pain and agony when they take over these buildings and we don't want that to be a roadblock to

[0:55:14] help you grow yes sir it and yes it is and thanks to councilman thomas and i we sit down in a lot of meetings with a lot of different uh building owners or potential building owners that are looking for remodeling a building and we sit down with city staff and we work out the differences so just for public knowledge i say that if you are in that situation don't hesitate to call us at downtown san angelo inc because we can help facilitate and bring better understanding of what needs to happen and how we can negotiate and work through some of those issues but but there are some things that it's a hard fast rule and unfortunately we those steps have to be taken and they're hard steps and yes it can be different expensive steps expensive steps and that and it and it does uh and that's why it's so important that we continue to promote downtown as a cool and vibrant place and it is it really is people from out of town tell me that all the time i hear it consistently that we have a really cool vibrant downtown and i'm not sure what all that translates into but it means something really positive and so people want to be there it it draws um we're drawing more and more people i remember the days when i'd look out my office at five o'clock and there'd be nobody parked on the streets now starting on tuesday all the way through the weekend people are parked downtown all over the place so the biggest issue is the limited funds that come from tears in the southern district because we have so many non-profits in um a huge amount of real estate nonprofits so when tears is created by the increase in property values and you have a large area of nonprofits you're we're not developing a big fund and so unfortunately the projects are

[0:57:17] very expensive and the funds don't begin to even address the expense of it so it's going to be an ongoing challenge so the more we can redevelop the bigger the fund is the more we can help but i appreciate you very much well dale just want to commit you know what you're doing i just didn't want to see something like some immediate roadblocks that they have to comply with as they try to work through to develop something that stays and we keep those businesses long-term so nice job dale well it it it does i mean it it it does but it is again a fact that we have to work through and we do our best to overcome those objectives lucy hey dale will you go ahead and give us the address to the paintbrush alley again okay well there isn't an official address be able because this yes it's uh it's in the it's it's really about the 200 block of uh south irving is one entrance it actually has two entrances so one entrance is uh and the most common one is the one that's in the 200 block of south irving between concho and tuigg most people will relate to or understand where or know where the texas theater is so it's behind the texas theater and behind firestone on the corner so that's one entrance the second entrance is off a two-week it's a parking lot and some of the wall is already painted it's not part of some of it is paintbrush alley but there's an entrance there off a two egg in the middle of the block there's a giant parking lot so i did check in to seeing if we could designate a street there and call it paint brush alleyway or something but we ran in a roadblock with and 911 doesn't have a way if something was to happen so we did check into that thank you so much gary just a follow-up from what tom asked dell there are some opportunities out there for some of these buildings and

[0:59:21] tom was right sometimes uh the owners of these buildings or the people that are coming in and leasing them don't understand some of the things that we've got to do from the city's standpoint what dylan and i have have done over the last three years is sit down with these particular individuals and then go with city staff and have everybody in the room at the same time so everybody hears the same same thing planning permit fire marshal's office all of those particular individuals and we've been very very successful if we do this up front because then everybody knows what everybody needs to do and if there's some things that the city can change or adjust then we've been able to do that with them so i think we've kind of laid the groundwork and i think for future building owners and people that want to lease i think we've got a clear path on how we can do this yeah you know back in 2007 um we created the the uh the design review committee i believe that's what we call it and uh yeah the drc we call it drc and i always encourage everybody please and i send them the link i i kind of walk them through it so that they can go meet with all the departments harry just referenced so they can get a clearer picture and i encourage them to be as prepared as they possibly can to address what they're trying to accomplish and what kind of work that's going to be required so that they can get a clearer picture of what's going to happen and those have been very very helpful and in some ways it sometimes it discourages them to say no i'm not going to go down that path but then they weren't going to be successful if they did go down that path so it's it's a good thing for us to have that and and by the way we're one of the few cities i i get to go to those main street conferences every year and uh every once in a while i'll have an opportunity to talk about it and most cities go wow that's a great idea we

[1:01:24] need to do that so uh we're we're path we're leaders in that area further questions or comments for dale with none thank you very much we will move into item b which is consideration of matters related to requests for proposal hr-02-1 one is a discussion of proposals submitted for benefits regarding health rx clinic dental fsa eap vision post 65 retiree benefits cobra administration and benefit administration system and two consideration of selecting benefit providers authorizing staff to negotiate contracts and authorizing the city manager to execute any related documents and our presentation today will be made by brian kendrick and by holmes murphy's senior client service consultant julie rickman you're on good morning mayor council you know normally my uh knees back and eye sight remind me that i'm not a kid anymore but over the last few days i've had the feeling like a kid leading up to christmas to finally get to unwrap this present in front of you guys i'm very excited about what we're going to uh propose to you today um you know anybody that's watching the news knows exactly what the state of health care is and the volatility and the and the increases are are pretty scary and so i think we've got some good news so uh i think uh dell uh you know started off rainbow and butterflies and we're gonna try to continue that through this presentation so i'll let uh julie do the heavy lifting though good morning again julie rickman with holmes murphy senior client service consultant and i've actually worked with the city of san angelo for the last 10 years so i've been very privileged to work with you all and again to brian's

[1:03:26] point really excited to present what we have for you all today so i'm going to go over the budget summary that we did last time that i was here just to show you again where your trend is and how you're running we're going to go through the medical pharmacy wellness and clinic because those are all bundled together as a product right now and then ancillary coverage and then just our next steps on that so again you know to point out i don't have additional data from last time since it's only been a few weeks since i've been here last but we are running 149 000 under budget for this current plan year our medical trend right now is at 0.3 percent over the last 24 months and then the current market medical trend as brian was talking about before that's where we see the market running in general which is at 7.7 percent so we've been very fortunate to not see that type of trend happening with the city over the last few years our pharmacy trend is running at 12.2 which is higher than what we see right now in the marketplace but we have some solutions around that right now but that's really due to the increased cost of medications and then the increased use of specialty medications within your population i'm going to go over the market response specifically for the medical rfp there were four respondents to the medical rfp we narrowed down the finalists to aetna and cigna and that was based on a couple factors the network options that we had administration and then the overall plan costs and best and final requests were reviewed and received or received and reviewed the narrowing down the finalists came and we sat down with the employee committee as well as hr and determined and this is for all the lines of coverage we talked through today that helped us determine and narrow down what we wanted to select as finalists we presented as holmes murphy in front of the employees what our initial rfp responses were and then they helped us narrow down from there based

[1:05:30] on those responses and the network and again the cost savings so there was the two of the two we had aetnan cigna aetna has a choice pos2 network it's just the name of their network but the network approach as you know is that narrow network with the community partnership which excludes shannon when we looked at cigna that was called the open access plus network it's a traditional network it has a partnership through shannon as well instead of community and then it has steerage to shannon through plan design meaning that if we elected the cigna option we would end up steering people through the shannon network having the costs or the out-of-pocket costs for individuals going to community be a higher cost i want to go back to that because on the first slide the aetna one totally excludes shannon so what happens with that correct so that's been the relationship we've had with community for the last few years where we have an exclusion of the shannon um uh system completely and that was due to increase costs for out of network costs through shannon when folks were receiving care when it was an out-of-network facility at this point the way that that relationship works is that it is not in network it is not covered unless it's a true emergency in case of true emergency and someone is transported to shannon that's always covered as though it's in network day in and day out you can't use shannon correct day in and day out you cannot use shannon and that again was part of the marketing process of several years ago i want to say go back almost seven or eight years ago what ended up happening was the cost for shannon when people were using it as an out of network facility started to rise and because it was out of network there was no negotiations for those out-of-pocket costs and so the city was seeing higher bills than they would see and then employees were getting balance bills differences as well so

[1:07:32] it was nature of just the way that the costs were increasing on the shannon when we had them out of network but still in you know the not excluded billy did you have a question i did so is community considered um out of network the way um with edna shannon was considered out of network is community considered out of network under cigna no it would be well be considered out of network but not excluded okay so the cost would be higher correct okay that is correct right that's correct and what they would do again there'd be steerage towards shannon with that relationship meaning that if right now you're out of pocket you're paying 20 coinsurance for services they would increase the co-insurance for you to go to community so that way it steers people towards shannon okay but employees would still have the choice either shannon or community whereas with edna did they still have the choice at now you do not have the choice that's correct thank you and that again is the relationship that's current in place right now any other questions on this slide okay um one of the questions that we had asked about or i had been asked about last time in fact was about the wellness program and how those pieces work for folks for your individual members on your plan both the aetna community relationship and the cigna and i i specifically say aetna community because community has their own wellness component that is part of the rfp process cigna has wellness components within cigna but there wasn't a specific shannon signo wellness component aetna community has that 40 hours a week of total with two dedicated team members and then cigna has up to 100 hours monthly when it comes to wellness most of the components are very similar when it comes to the wellness pieces any questions on wellness

[1:09:37] so we used assumptions when we look at the cost of what we believe that your plan is going to be and so what there's a couple of factors that go into what our assumptions are when we receive the rfps back from the market we get what's called self-reported discounts which means that the discounts on total build charges that the carriers are letting us know is what they see as what they're discounting so for example if something costs 100 and their discount is 50 then the cost is actually 50 and so that's proprietary nature so we can't share the actual numbers of the self-reported discounts but when we receive those discounts in to homes murphy we use those discounts as a starting point as to what we can project out the costs we added in that 7.7 medical trend when we're trying to project out going forward not that you've seen that in the past but because we want to be as conservative as possible and then we factored in additional savings for a cigna shannon relationship over their self-reported discounts just to see um you know a matter of fairness and trying to figure out what that would look like the other piece that we put into place are when we look at it is we look at your pharmacy savings and over your current contracts there's actually a little over two million dollars of savings between either aetna or shannon that's due to additional just savings again through aetna i talked about that with the engagement committee but there's that cvs relationship so there's additional discounts but also we see additional rebates that are happening the trend for pharmacy was much higher a few years ago actually probably last year was was one of the higher trends rates that i've seen but because we've seen that we've noticed that dropping down because of the discounts that we see so i'm going to go over this kind of line by line and then the next page will give me a little bit more of a high level summary but our projected the first line is talking about our projected estimated medical costs for

[1:11:39] 2019. when we go over to the the right side of this we're looking at the aetna projected and cigna projected again that's using their self-reported discounts so what we did was we said if everything stayed the same this year you have the exact same claims and we use those same claims and put them against the discounts that were reported by the carriers added in that seven percent trend what would that look like for the next year remind us again on aetna aetna is community-based shannon excluded cigna is shannon and community correct correct the community again there would be steerage towards that community would be a higher co-insurance or co-pays for for individuals and they go the pharmacy costs again we have that on the prior screen is what we estimate our pharmacy costs to be for each year administrative fees that's what you pay for for a carrier to run through your claims to turn the light switches on and off to have the portals for employees to go on to figure out what providers are in network aetna actually lowered their administrative fees from this year to last year wellness credits those are dollars that we can use towards wellness programming so if we wanted to add in a diabetes prevention program or a program for people that have heart conditions we actually have allowances from both aetna and cigna aetna with sixty thousand dollars and fifty thousand dollars right now we have thirty thousand dollars of wellness credits the wellness program right now for the aetna that's kind of broken out for that community piece and that's a hundred and twenty thousand dollars if you look um that was kind of brought in before on the clinic so on our last rfp the way that what the response was the clinic and the wellness program were combined together so if you look at that last line where it says clinic cost was at 334 000 currently but you'll notice that drops down to a hundred and seventy two thousand that's because they just broke out the wellness component to make it a little bit more transparent as to where those dollars are actually being

[1:13:40] spent and then a communication credit we use those dollars if you wanted to print off materials for maybe open enrollment or if you had a campaign that you wanted to do for employees to promote something that's just a credit that you can use towards communications and then the bottom line is the estimated plan costs but really what we're looking at for the big summary is that the cost of current and this is for the first year is about a 700 000 savings over what your current spend is so an 8.1 reduction and then cigna is 378 000 above current at 5.1 percent and really those costs are due to the self-reported discounts that i talked about before the pharmacy savings administrative fee savings and then program enhancements do we ask our employees to list which hospital their doctors are associated that they use are associated with so for but for disruption specifically when we look at that it's a little hard for us to do disruption for you as an organization just because right now the relationship is with shannon excluded so for when we look at our claims data right now we don't have people going to the shannon network if they're going to shannon they're using it not it's not even out of network so it doesn't run through our claims feed so we don't know of any individuals that are going to shannon specifically i would wager to guess you have a portion of your population that does but we don't see that through our claims to retina all right i'm going to see if there's questions on this so far yes i was just making a comment about you know you're talking about shannon and community and i was saying that sheenan right now with their doctors and stuff it's it's kind of like overwhelming with with the patients the people that they have right now i was gonna go see the doctor and it was like now kings uh for my

[1:15:42] wellness jacket they said well you know you have to reschedule but i can't make it till march 2020. so i'm just saying that that could create a problem also yeah and you have right now the relationship with community has access to the community clinics and so your employees can go to any of those clinics with no out-of-pocket cost to them so that solves for some of those people that might just want to go in and get a well visit or maybe they're you know they have an ear infection or pink eye or something where they just want to go in and get taken care of the i know that the clinics are not at capacity when it comes to intake and so usually people can come in and have a same-day appointment and be seen for their standard acute care billy did you have a comment or something a minute ago well um i guess my comment and i'm not sure i know you had some employees that were you know on the committee um but i visited both hospitals and there is just a different level of care between the hospitals and i understand that um you know some doctors have their privileges only at community but you know from my perspective my comment is that i would always rather have a choice and um even though um cygnus cost at this point is greater um i just think it has to be considered i think it's worth something so i don't know if we're going to be allowed to know how the employees felt about uh will they have to pay higher out-of-pocket cost yeah for cigna their out-of-pocket cost will be greater do do we have an estimate on how much that is it depends on what we how we would do that so i'm not i don't have plan designs here if we were going to go with the cigna

[1:17:43] option but what i will tell you is there obviously there's a cost to choice that's just what it boils down to and it would be a matter of what the city can absorb versus what the employees what they want to cost share with employees and so it's a matter of whether or not you want to change their plan designs or if you wanted to increase their premiums when you're looking at that cost difference i would say that you likely would end up having to do both for employees if you wanted to because that 5.1 percent i mean really we're not even talking 5.1 at this point we're talking about more because we have the delta between the savings over the aetna plan and the increase over the cigna plan um i know that there's some talk and i don't know if brian wants to talk slightly about the there's a gasby liability that you have on the books right now that may afford some like flexibility in the future when it comes to some um reported or some some costs but again you know it's that delta so sorry go ahead before we go you know what go ahead before we get too far away from billy's core question what would the additional cost be that's on the screen the difference between the two plans is approximately six hundred thousand plus three hundred and seventy eight thousand dollars nine hundred thousand exactly almost a million dollars in additional costs between the two plans and the way you determine how you fund that is plan design which she touched on plan design is essentially creating the premiums to be paid in council the city pays premiums and employees pay premiums and so there would be with an additional 975 thousand 000 in costs there would need to be an additional 975 000 in premiums and to your point i think

[1:19:46] it's true everybody would prefer choice i think and i think the choices are more than just this though if we look at trying to fund the difference to provide the choice in in you know who you can go to i think then we start cutting into the possibility of raises and so i think if you asked city employees who already went through the struggle of we've relocated our doctors we've you know we've we've already adapted to community i think if you ask them if there was a possibility of we could we could spread this out or maybe we could uh you know adjust salaries this year in a year that maybe we thought we couldn't i think they would overwhelmingly tell you they would rather have their salary adjusted than to than to have the choice so again i think everything comes down to choice so the choice of of what provider we have the choice of what we do with this 975 thousand dollars so if i need to have surgery and community doesn't have the surgeon for that specific thing i've got to go to shannon and then it's out of pocket so no there are in network providers and so a lot of folks will end up going to abilene um if there's something out of network i will tell you too that there is a travel allowance that we have for individuals that if there is a network deficiency that they have to travel out of the city of san angelo to receive services there's dollars that we can use for those individuals to offset the cost of their travel we do have as part of this too some network enhancements that community has put as part of their rfp so i can talk to those as well but yes if if you have to have surgery and there's not someone in community that can do the surgery you will have to look elsewhere or have pay out of pocket we have um just elaine one second did you have a comment you wanted i do um i'll touch base on the abilene comment here in a second but you know my big

[1:21:48] biggest concern was exactly what billy said was the power of choice um and how that has an impact on the treatment of care that the patient has and from coming from health care i've seen that and from knowing a lot of people that have have dealt with this i've seen that another concern i have is with the specialties you have a head injury you're going to shannon [Music] you have a you have a massive case of cancer you're going to shannon and i've had a constituent die because she could not access the carrot in town by the time that her history of cancer came back it was three months out of being able to get her doctor for a pet scan up in abilene got the results four days later dead when she could have started care right away the other issue is technology does community have the same level of technology because i understand a lot of more sophisticated mri equipment or cat scan equipment exists at one hospital versus the other and i don't i don't want to try to make the hospitals compete i'm for the power of choice i've worked at both of them but it's for the choice that if i want to go to shannon i want to go to shannon if i want to go to community i want to go to community but to have our san angelo residents employees and their families to have access to care no matter what in san angelo is my biggest thing instead of having to access it at abilene lubbock to get a reference to md anderson do i have other questions on it harry just for a clarification standpoint do we have the figures that show what the

[1:23:50] cost out of pocket was for uh services that were outside of community for the last year outside of community um i don't have those on me are you asking specifically for shannon because we had a few head trauma cases that went through shannon it wasn't a um off the top of my head i'd hate to give you a number that i don't have but outside of yes but they are included in this cost um i will tell you that we do have some that go out of um the city for treatment and usually and to your point oftentimes those are cancers because there are facilities throughout the state of texas and actually beyond the state of texas that specialize in specific types of cancers and i'm sorry to hear your story i will tell you too for a patient advocate perspective if there's an individual that needs help and we've worked with hr for several members over the last few months as well and throughout the the relationship we've had with community if we find that there's someone that needs help we always if they can get through hr if they can get to homes murphy and talk to us or even if they talk through cigna we have abilities to be able to help get them the level of care that they need and so we've had so for instance we've had one situation where we actually had the ability to help transport someone to abilene to be able to receive care and again we've had situations where we've had cancers and things like that where we've had to go back through and say okay where can we get them treatment we need to get them in sooner and we figure out that that piece and so we would highly encourage any members that had issues with receiving care or again continuity care to be able to reach out to aetna reach out to hr and say i need some help and we will absolutely you know stop stop and stop what we're doing and help them and we've done that many times before i think that you know to your point there's there's always a cost for for choice for most of your employees standard on a regular basis that are just receiving their well visits and

[1:25:52] their standard you know medications that they're using i i think they are perfectly fine doing what they are people that have specialty pieces i think reaching out to aetna and having a care coordinator having someone work with them to say this is what's going on with me where should i be going for services that's always a helpful piece too do people know i mean my concern is is it's great you know that i'm not sure how we get that message out to everybody that says hey by the way if you got a real problem come call on us and we'll help you work through it so the question mark is how well is that communicated how does someone know to reach out how does someone know that that service is provided i mean when you get a scary diagnosis i would say that you know obviously probably does not everyone knows that it is but the vast majority of people know that they can speak to dolores or christine or veronica or myself in hr and we're gonna we're gonna go to work for them and we have success story after success story of of making things work for instance that that trip to uh that we provided transportation to and from abilene for pre-op the operation and the post-op and even in doing that we we did save money on that on that for the fund and again for me i'm trying to i don't want to take anyone's choice away that is not what i want to do but for me this is the fun that keeps me awake at night knowing that there is a 90 million liability related to uh the future cost of retiree health care and and so forth that we've booked knowing that that that's 15 years of this fund if it all just went to that liability if worst case scenario knowing that i don't want to take away anybody's choice and so we do work those specialized situations

[1:27:55] to you know 99 satisfaction i mean you're not never going to please everybody all the time but we go to work for those folks and we try to find solutions for those situations and again i'm trying to manage this for the next for the foreseeable future till that liability starts to climb down which it will i believe where you know there's different estimates my my personal estimate is that we're about seven years from seeing that go down uh reason for that would be um nutrition attrition in the yeah all right so one second um harry wanted to make a comment and then let me ask if is there a future slide so that we see what the increase in premium per person would be versus because these are big you know million dollar issues so the question mark is what does that calculate out to premiums harry i think my comment really is this you got a million dollar difference here but i want to make sure that we're we're comparing apples to apples i'm still not sure that i understand if you're going to have a savings of six hundred thousand dollars one and the proposal on the other one is almost four hundred thousand dollars from my perspective is these out-of-pocket costs are still significant i did i'd i'd like to see what those were uh i mean if we're talking about an additional uh five hundred thousand dollars now you're now you're getting closer to what the both uh both of them are so uh you know it looks good what we're looking at numbers right now but i'm not sure what that that cost is yeah yeah and so so let me let me make one point too for the question you asked before is how do people know where to go for care we do have that communication budget that we can actually use to be able to push messaging out to individuals saying this is what if you're diagnosed with something this is the options that you have to be able to if you feel like you're struggling you don't have options

[1:29:56] available you don't know what to do next we can have that as part of communication campaign for employees and help better get them acquainted with how their medical plan works um for the premiums we didn't prepare that for today and the reason why is because normally what happens is we look to the budget and then once we approve the plan designs we go back through and say this is what it would cost for employees but the the big question is from the city's side for let's even just say that four hundred thousand dollars or three hundred seventy eight thousand dollars plus the additional six hundred thousand dollars would the city pick up the cost sorry my two laps sir would the city pick up the cost of that are you expecting employees to would we need to change the plan designs right now we're looking at your lowest coverage for employee only is 20 a month for their premium i would say that that would not be something in the future if we were looking because a lot of your employees are in that plan we would have to increase that significantly to make up that 400 000 difference if employees were picking up that difference and then from the city side again are you picking up are you cost sharing that that savings or are you looking to offset so you know that would be the big question because when i see a delta like that it's going to be a combination of changing your plan designs and increasing employee premiums and having a city funding increase we know one of the greatest concerns citizens people have today is health care costs and insurance costs i mean that is always a major part of everyone's budget these days most people don't have the opportunity to be part of the city budget so they're having to figure out that all on their own and it's a substantial part very often more than their mortgage payment so this isn't a simple easy decision to make because health care catastrophic events bankrupt people in their lives and so

[1:32:00] we really need to talk through this and make sure we yes yes tommy julie do you have someone that watches the claims and i'm going to say like a hawk on a regular basis so that if you all started seeing these claims trending higher over the course of the year that you would say something to brian or brian is that something that you all watch in your office who who does that everyone most both sides do okay so let's let's go down that path a minute let's let's zoom out here this is council i think we're going to have an opportunity at some point to have the option of choice the way this thing works is claims they obviously have trended very well in our specific plan obviously that will turn around it's not gonna claims are cyclical they go up they go down and there will be some years when we have horrendous claims at that point if holmes murphy and brian's folks are watching this i would hope that in the in the normal course i don't know y'all is this a three-year contract is that what this is this is a three-year contract and then we have two options of one year renewals to tack on at the end so again if it was to your point at three years we could rebid this and and look again a question really is brian if 18 months from now we were starting to see some trend that this was this was climbing and we didn't i'm assuming julie that you all have the ability with aetna aetna can tell you by looking at the

[1:34:03] claims themselves they're not going to give you medical diagnosis but they're going to say we have this going on so that we know this is not going to go away in two months it's going to be ongoing for 18 months 24 months yeah there's actually three layers that we do with the claims and and watching where your trends at so the city obviously has their claim wire where you see what's going out of the claims spend i believe yours is weakly correct you claim weekly daily sorry daily claims wear and then holmes murphy does monthly reporting every month that talks about what your demographics is how many large high dollar claims that you have what your total spend is for pharmacy and medical and goes into detail about that as well and then we have quarterly meetings with our carrier and our at this point community as our our preferred partner and we go over every single detail about how the plan is running including how your clinic is running how your wellness program is improving your health stats of your employees and then goes into every detail about what we've seen over the last quarter of what your claim spend has been and what it's spending on so there's two pieces to that so from a pharmacy side we are constantly adjusting your pharmacy and looking at your pharmacy plan to see what we need to do with that so that's an ongoing piece because pharmacy is such a hot topic and that is is looked at often especially when something maybe comes off of a generic medicaid or off of a brand or there's a generic equivalent that just came out those types of things we're looking at on a regular basis when we talk about your medical usually that's a once a year conversation but we have several conversations during the year of how is your plan running do we need to make plan adjustments for your plan in the future adjusting co-pays increasing employee premiums those types of things so that's a that starts before budget and we continue on going on that for several months of just watching your claims and seeing how that goes to your point we don't see and and i've been a consultant for the last 12 years we

[1:36:06] don't see trend like this across the board when we look at basically you're looking at a level trend we don't generally see year over year of meeting your budget or you know not meeting your budget without having to increase your budget year over year by that seven percent eight percent ten percent whatever that happens to be i've had three renewals this year that i've had 20 percent increases and that's really because of claim spend and the high dollar claims um you know i have had claims where i've had nicu babies that are dollars and 19 million dollar children on the plan that affect the claims spend dramatically the relationship you currently have even though we have some spikes of large claims because of the way that the costs are and what the out-of-pocket cost to the city or to the employees and what the costs are to the city we're seeing that level trend essentially or that point three percent which we don't see in the marketplace so that's a big factor too and i can't factor in what that cigna trend would look like but if i'm saying that 7.7 for both of them knowing that aetna is not going to be that i believe that these numbers are actually pretty conservative and what i'm saying because i believe that cigna will go up at that trend at 7.7 because that's what we see in the marketplace i don't think that we're going to see that with aetna so i think that delta is actually bigger i just why is that because the relationship you currently have with community and aetna your trend does not rise up 7.7 and has never risen up with standard trend in the marketplace cigna's relationship and that contracts that they would have goes up by standard marketplace trend and so when i looked at the cost i determined that i was going to use standard marketplace trend for both but i would wager to guess that we're not going to see that standard trend with aetna going forward just aetna's more san angelo specific driven and cigna is standard world united states trend is that what you're saying no their trend would be more well

[1:38:07] united states or texas or texas trend really more than anything and they actually give us their discounts based off of the san angelo area so we're seeing it would be very similar but it's because of the contracts and the relationship with community and aetna that you're not seeing that standard trend so yes because it's that narrow network with community that's why you're not seeing that that full you don't see the realize the full trend that you would see otherwise if if all of us stayed on the council long enough the the conversation is difficult today because there's no choice that that's the difficult part of the conversation today there will come a day when a council that sits up here the conversation is going to be oh my how much do we increase what the the city of san angelo pays and how much more are we going to have to push off onto the employees at that point that could be when choice enters the picture because there may not be that much difference and choice may enter the picture at that point in time julie is right this you don't see this in the marketplace i have lived in this world my entire career this is one of those things that i believe we should take advantage of what we have in front of us here because of the savings the choice having no choice is not good i agree totally with that there's two choices one given choice in terms of the hospital and two having a choice about whether we want to incur additional expenses that's exactly right those are yours now i would ask the the big question here if we we could likely be having this same conversation if shannon was the provider of choice and community was totally excluded we could be having this very same conversation that it's this good that's what limiting choice does for your plan it is hard for your

[1:40:13] employees to accept that because some of them want to use a different provider but it does affect your cost and we are seeing that we've been here seven years eight years whatever and we are seeing the benefit in terms of the overall plan cost and the overall cost to the employees of having only one choice while it's no good you you have seen the you are seeing the financial impact of that and there's so much time unpacked there um with what you said because i think all of that's true i would advocate that every city employee have choice of where they go for their medical care but more than that i would advocate that we have a healthy self-insurance fund that we can guarantee that we're going to be able to provide a level of service to everyone without dramatically increases increasing their parts of the premium too and so again there's that there's a there's a trend line too and there there is a time in the future that this will not be the the consideration there is a time in the future when we're going to be able to come to you and say it's time to open up the the door back to choice we think now's the good time we've we've kind of outlived some of that liability now and and uh we're we're down the road of a few steps and we're in a better situation i would also say within the last 12 months we've finally climbed out of a negative fund balance in that in that fund that that's amazing i mean and i believe that's through a partnership of very creative solutions to those out-of-network problems because we could just you know wave a wand here and try to try to give choice to everyone but we've been very um i want to say we've we've adopted a very uh strong stewardship approach to this and trying to shepherd this this fund into the future where we can make that decision someday related to

[1:42:18] choice again i would advocate for everybody to have the choice but you know i'd all obviously also try to try to keep this fund healthy as well through the next few years and i don't admire the choice that all you you know up there have to make because i can make a recommendation and i can you know just tell you hard numbers but you are making decisions that that do impact folks lives and i can definitely see both sides um you know for me i have a pretty strong financial background so for me uh sometimes it's not um it's not as hard to kind of say well you know what let's just plow ahead we've made those we've made the hard choices in the past let's let it play out to to its fruition to the point that we're in a healthy place where we can provide um daniel you were going to say something actually we just heard exactly what i was thinking as well i think that at this point we do look at those at those numbers i do julie made a point as well i think if you ask the majority of employees that would say hey at this point we have made the switch over to edna and also community as far as the providers that we currently have right there uh i think a lot of employees at this point have transitioned have adapted to that as well i do look at the numbers and that's something that uh keeps me up at a week at night as well is how do we make things work within our budgets and to see a number coming like that i was so impressed that it dropped off by 8.1 percent uh i do agree that in the future i think at some point as as tommy mentioned a while ago we may get to that point where we have that that option for that choice and i would love to have that for our employees because that's that's my preference as well but looking at those numbers i completely agree i do agree with everything that's been stated at this point so i just want to make that very clear yeah and i'm sorry i was going to say one of the other pieces too is we've done over the last two years several direct contracts very similar to

[1:44:22] what the city of san angelo is doing with other organizations or other cities that are very similar size to you and a big piece of that is because when they were looking at their trends they were not sustainable and you wouldn't have a sustainable fund balance they kept increasing their employee premiums year over year in fact one of the ones that i'm i'm doing open enrollment meetings for them tomorrow is we're narrowing down that network and we're doing something very similar to what we did with the city of san angelo years ago when this relationship first started is narrowing down the network down to one facility that's in town that's not the facility that people are currently using which is what we had initially when we put this in place people were really more going to shannon and it was a lot of disruption but this particular this is a county that i'm working with this particular county every year was increasing employee premiums by seven percent and increasing city premium or county premiums by seven percent as well and we also had to make changes to their deductibles and out-of-pocket maximums and their co-pays and employees were saying we can't we can't pay this anymore and the county said what do we do and so it's not necessarily an easy choice and i agree with brian's statement you know you all sitting up there right now having to make a decision that affects the lives of individuals is difficult but if the plan isn't sustainable and people can't afford to pay their co-payments or their co-insurance or their pocket maximums too high for them to to pay for their plan we're in a completely different situation um plus a fund balance is negative is you know that's just kind of negative all around so again it's not an easy choice to make but there is a cost for choice and sometimes that makes it unaffordable for your employees to be able to afford to have that option i want to um when one second billy okay just two things i want to clarify number one is truly when we're looking at these numbers we are looking at apples to apples not peaches to peanuts so there's no reason to look at it and say i know yeah they're pretty different alabama

[1:46:28] yeah so um just to make sure we're not misled by these numbers because they're not holistic numbers incorporating every single aspect of the health care the out of pocket the whatever we call it you're saying to us today apples to apples these numbers are apples to apples with no byline or asterix or oh we forgot to do that oh we didn't include that oh those out of pocket things don't exist here and then some seen i would just say as we were talking about how this presentation would move forward that is one of the clarifications that we made is we are that first line that you saw on a previous um slide was the current projected for 2019 where we're going to be at the end of this calendar year based on our experience so far then we're taking that same number for both of the plans adding in the trend of of you know the trend percentage and the discount different differential and so it is absolutely apples to apples it is not peaches to peanuts so the the one thing that you can't guarantee on this is that the trend line maintains itself so let's say the trend line this year changes then you don't your numbers because you're assuming the trend line is going to stay the same on these numbers right that that is the assumption that is built what we're saying is that those trend lines are not normal and they don't happen in most places most communities most states so the assumption is ours is going to stay although most don't and then the next question is let me ask this first and then the next question is these are insurance policies aetna cigna not aetna community etc

[1:48:30] so that no matter what happens to any hospital in this city that the policy is whole to these providers not hold to that hospital that's correct and the first part i would say that uh actually we've we've applied a more stringent uh curve than than the one that we're actually experiencing we're we're applying the market curve to this not our personal curve and so it is actually the savings would be less if we wanted to do that but we've we've taken this the same way we want to take everything from a financial perspective is to be very conservative in the approach um and i would say you know the reason you know next week we'll be talking about about budget again and one of the things i would say is we're not necessarily saying we want to cut 596 out of this fund what we're saying is we need to take a look at that and try to get it to a healthier fund balance so we might not be recommending that you necessarily cut that but that we could finally get to a healthy fund balance because we say that again because what we think we're looking at is the savings or expense not fund balance so we didn't think we were looking at fund balance and impact of fund balance on this and what i was mentioning earlier is we finally claimed climbed out of a negative fund balance for the first time in ever ever um and we might be it'll be up to you guys how you want to use this 596 thousand if you want to even be a little more conservative than our approach already and if you want to say well you know what we'll cut 300 000 from the budget but we'll leave 300 you know kind of split it down the middle just in case that trend does take off and get worse that way we're protected against that rise so i was just offering it as a as a another insurance policy against a trend

[1:50:32] that might supersede what we've seen or what market is billy you had questions and comments i'd like to go back to that slide that compared the um this one here no the one that had the list of services provided and it showed no i think is it the one before that one i think it was the one two back two slides back the analysis next one not next one nope next time that's a summary no it was okay the only one is that other one go back go back to that one then yeah that one okay so so to your point you know we can't predict the future your claims are your claims so you have a nine million dollar claim hit that's that's zone piece we have stop loss insurance that layers on top that protects against pieces of that but you have a really really bad claim here i mean obviously our projections are based off of what we see the market trend being so when we're looking at those numbers we're looking at the projected that if everything stayed the same let's you have the same claims this year as you do for next year what would that projective claim be with that seven percent seven percent increase julie do we have both specific and and uh aggregate stop-loss you do have both specific and aggregate stop loss and what that protects you against is individual claims that go over a hundred and fifty thousand dollar you have a hundred fifty thousand dollar threshold or 175 150 150. so any individual claim that goes over 150 000 your stop loss insurance picks up the cost of that and then if you're find that stop loss so stop loss is an extra layer of insurance coverage that we put on top of your medical plan that if your claims go over certain dollar amounts the stop-loss policy picks up those dollar amounts so it doesn't go against what your claim

[1:52:33] spend is and so for any individual person that's over 150 000 your stop-loss picks up after that 150 000 is paid and if your claims spend runs twenty percent above what projected claim spend is then stop loss picks up and starts kicking in so you have uh it helps limit your liability in the long run um go ahead could i so what i heard you say earlier brian was that based on employee feedback and and your opinion of how employees see it they would much rather stay with edna and have less cost of their health care than they would going to perhaps a higher cost i think that's true of the majority now i was you know i was speaking to the extra cost and whether or not there would be a possibility of raises and i i guarantee you the vast majority would rather than possible healthy insurance let's not go down the route of in raises this is strictly a health care conversation but i think that's true as well i think the vast majority of city employees would rather uh they've already made the tough decisions that they've already you know transferred their doctors they've already set up with community they've already went through that that that painful kind of period and so they're kind of on the other side of that now and so if uh if you put it before the vast majority of folks whether or not increase your your cost related to health care or just kind of stay with the with the program as is for the uh for the next three years or so i think the vast majority would say uh don't raise my health care cost with that being said there are a vocal minority that would would say no i want access to shannon so again i don't admire the decision that that you all have to make related to this but i will say overall either one of these um this

[1:54:37] what you see before you with the 378 000 increase to actually go to choice that is that is the product of a very very creative process that staff and holmes murphy engaged in related to the rfp process we will continue doing that so that next time again we might be able to buy down that thing and actually offer choice next time but the only reason it's in the condition it is is or one of the main reasons to me is because we carved out the pharmacy and made it a separate um a separate bid process all right go back to that slide where pharmacy is on there because there was like a hundred thousand dollar difference on pharmacy correct wasn't that big of a difference well those but those are the savings no the screen that shows individuals right there so your pharmacy costs there are a hundred thousand there's only a hundred thousand dollar difference right but it's a six hundred thousand dollar difference most of your savings is in that line right there um if we're saying there's a savings of six hundred thousand overall you can find seven hundred thousand in that line meaning you're looking at the projected 2019 as the three million one four four eight seven eight that's correct and then they reduced the and how was the reduction in pharmacy costs how did that come up because you said pharmacy in one of the earlier slides pharmacy was the one that was trending up yes ma'am and that's what i was pointing out the um as we talked about this i think it was in february uh one of the questions that i asked uh julie i said is there a possibility of us carving out uh pharmacy you know and bidding it separately because there is such a rising cost to it and um not just bundling it together with the health because i mean i think it could be said that there's a possibility that you know you might artificially lower health but kind

[1:56:39] of make it up on the back end on pharmacy so we want to make sure we're we're having each service individually uh approached during the bid process and so with that that is the savings i mean you can even look over it with cigna there there's still a 600 000 savings from what we're projecting this year and so that is the component and it was like i said it's a creative thing that we have not done in the past and we're going to be looking for every creative thing that we can do to try to get this to a point where we can do choice in the future but i will say this is a success this is a huge success and and i don't want that to get um you know lost in the conversation that it is another time that we're probably not going to have the opportunity to go for choice but look at where we are um this is this is a success story and i just don't want to get that lost in the middle of it because even if we go with cigna that's the you know even if we go with a higher cost which again i don't admire y'all's decision to make that decision but if if we do it's we only have that opportunity because of the way that we bid this process out otherwise we'd probably be looking at instead of 400 000 a million we asked about trend yes pharmacy trend is trending up but the discounts that were given and the rebates that were given on the pharmacy through this rfp process is where that savings is and so the trend will still be the trend and we'll still see that go up but because they discounted and the rebates dropped those costs down significantly we'll see it drop down for this year and then next year you'll see it kind of rising back up with trend for the pharmacy they came down because you're using um private label pharmacies versus branded label prescriptions is that no it's it's simply because of the rfp process when we go out to bid for pharmacy and say that we are willing to look at separate pharmacy pieces the carriers will come back more aggressive with their discounting that they give to us on the

[1:58:40] pharmacy and so that's the reason why that that happened the way that it did on estimated medical is that just primarily the go to see my doctor for a checkup that's all your medical all-in surgeries going to see your doctor for a checkup going for you know having a assist removed i mean it's everything all in for your medical costs and again that trend we're looking at that trend going forward saying it's going to cost you more next year than it's going to cost you this year that's just the way that it works um but you know trying to be as conservative as possible with the numbers that when we look forward we can say okay if we run better than what we think trend is which we have been historically as a city and that's a big portion of that is the relationship you currently have when you narrow a network down that gives you significant savings over what you're what you see in the marketplace and that's you know again i i pointed out several times that we don't see this for most cities or counties that have don't that have additional choices when you narrow those network down yes there's some painful pieces to that we will do our best to continue to improve that network and prove the relationship for members improve the communication again to your point of where do you go for care how do i seek care if i have something and i i can't wait for three months for an appointment to that point we can use some of those communication dollars to be able to let people know this is what you can do to solve for this and then again to brian's point when we start reducing our other liability that might be a conversation we could have during next rfp process of choice is now an option on the table and what can we do with it because at this point it's how do you make up the delta between the two for employees are we going to change their plan designs are we going to increase their premiums or is the city going to try and pick up the extra four hundred thousand dollars go ahead with your questions um do you cover family members when people have to travel out of san angelo to seek specialty care correct so any network so

[2:00:43] it's it's let's be specific on that it's a network deficiency that you have within the city of san angelo if i decide that i want to go to houston to receive treatment for my cancer because that's where i want to go that's not necessarily you know a expense that we would reimburse for but if there's not a solution for me in the city of san angelo we will pave that travel expense for you to be able to go and seek treatment elsewhere and then again to brian's we we might even transport you back and forth depending on the situation that individual but if there is care in san angelo through shannon but i don't have it because i'm limited to community why wouldn't you take care of the extra cost of shannon rather than sending somebody to abilene or austin i don't know if you wanted to address that okay to be quite honest and i think that's a very good question to be quite honest we had a a situation without going into details related to somebody's medical condition there was a surgery that needed to occur community did not have the opportunity to provide that surgery we um we you know worked with shannon have the surgeon they certainly did yes yes and we worked with that participant on the program to to schedule the surgery in abilene but the consideration was i'm in too much pain to travel so we reached out to chief dunn at the fire department we got a ambulance staffed ambulance to take that person to a pre-op to the operation and to the post-op meetings and it was still cheaper because it was out of network going to shannon because what shannon charges i just i would ask questions for clarification yes that's that's correct it's not

[2:02:44] necessarily because it was out of network is because of the charges for that particular service was so expensive there versus going to abilene there was a definitely a cost quite a significant cost difference between the two even staffing with the emts and the ambulance folks to take that person to three different visits um it was a big big difference between the two but y'all do check that to see if it would be absolutely you know more cost effective one way or the other for example i've got a offer on the table right now that uh i might need to take somebody personally to dallas i'm willing to do that if if that's what we've got to do to to try to keep this fund healthy and so i don't know if that offer will actually be taken but it's on the table and i'll provide transportation back and forth myself uh to make that happen brian just just listen to what we're tr having to do to try to compensate i don't think it should be in your job description to provide personal transportation and i know you're willing to do it and and i appreciate it you know you're going above and beyond um i wasn't saying that thank you thank you you know it's i don't know i guess it's kind of my philosophy you get what you pay for understandable and so i and appreciate you and daniel been excited about saving 81.1 percent of our cost but if we aren't getting a service then you know i guess i would challenge that that saving and we have you know i mean we have actually and on some future slides you're going to see some commitments that community has made we haven't even got that far yet so you'll you'll see some expansions you want us to stop asking questions and continue it might be beneficial to at least get all the way through the uh through the medical thing and then we can come back to that but i would i would state one thing that you know our current

[2:04:47] population that's covered um about a third of that population is retirees with that benefit that we had that expired at the end of 1999 and that's what we were talking about with liability so i just wanted to i know we all know that but i wanted to make sure anybody listening in the public was was understanding when we talk about that liability related to um you know retirees and that that is not ongoing there is there was an end date to that uh so you had to be employed by the city of san angelo prior to december 31st 1999 uh to be on that so that's there's no new ones added to that but it's still one-third of our population that we're we're trying to fund from from the the two-thirds we're trying to fund all all three so uh anyway just to add some clarification to that but i'll let her continue in the slides yeah and i'll pause for one one moment too what the question that you had these types of claims where we have the situation where we have to find ways to transport folks are not very often i would say we have maybe two possibly three a year depending on the situation for that individual so it's not significant but the savings for those plans for those individuals are significant and not just to the city but to the out of pocket that the individual is paying as well so what about the family because it's one thing you get the person there but but then the family has to travel up there then the family has a hotel room then they i mean it's they said they covered that yeah i'm sorry i apologize absolutely so i'll move on from here and then we can ask questions as well so really the recommendation when we talk through this is maintaining that aetna community relationship aetna had that lowered fees increased discount and then the pharmacy enhanced savings which we saw obviously saw those in the number community is is had a commitment in their rfp to enhance their oncology um neurology pulmonary services um they have upgraded their wellness platinum

[2:06:49] what does that mean enhancing does that mean hiring specialists yes adding adding additional staff to be able to offset for that deficiency have they done that and also bought the equipment that goes with that that would be a question for the equipment question would be for for community um which i believe there's folks here that if we need to bring them up we can we can talk through those so we want to make sure that when you're comparing hospitals you're comparing quality of equipment and advanced technology and equipment on a hospital by hospital basis correct i understand what you're saying i can we can talk to that in more detail if we need to bring them up as well they um have upgraded their wellness platform they have offered a 50 discount to the community health club for people that are participating in the wellness program and then they're funding an early screening for cancer for firefighters when we look at the oncology neural neurological and pulmonary services enhancing those services are a question that folks have had in the past of how can we you know better serve the the members in the community um and so or in the city and so enhancing those programs there's a commitment with dates that they have as well as to when they'll have those up and running and so that's something that we definitely wanted to point out to you that they have that commitment to work with the city to help shore up some of those network deficiencies does that funding for early cancer screening for firefighters mean there will be no charge correct okay correct is that it uh on the medical side yes and then i can go into the ancillary i don't know if you want to talk anything else on them just keep going okay so i'm going to go through the ancillary this is all your other lines of coverage so there's a lot of pieces that we work through on this too for your dental you had seven vendors that responded to your dental that's not unlike the market that we usually see your plan designs are matching your current plan designs

[2:08:51] right now the annual premium is around 390 90 000 the committee selected three finalists based on cost disruption and network and then we receive the best and final offers so i wanted to point out your dental experience first because there is an increase to dental premiums and that's part of the reason why i wanted to bring this in through so when we're looking at a loss ratio carriers like to see a loss ratio meaning the dollars you spend on premium versus the dollars they spend on claims around 85 percent that gives them a margin for running through their claims and turning on turning off their lights those types of services so in 2017 through 2019 when we're looking at that pay period versus 2018 2019 you'll see your loss ratios are pretty high on your dental plan 91.4 percent on 17 to 19 and then 18 to 19 alone is 103.6 so pretty significant there's positives to that meaning that your employees are using their dental coverage and dental health is also linked to heart health and and other pieces of your your body general body health so that they're using the dental plan is not necessarily a bad thing but it will translate into increases to premiums the other piece we look at is the disruption in access so we take a report that asks for where all your employees are currently seeking dental treatment at we had a 112 providers on that list and we asked the carriers whether or not those providers are in network or out of network so that disruption is right now i'm going to see dr smith is dr smith in my network and you'll see that delta dental has 71 in network 51 out of network and then cigna and united concordia you can see their numbers there are 59 59 55 in network so you can see there's a difference as far as the network goes for folks so in the gray is what your current premiums are for your dental plan you'll see that the increased costs for all three across the board are above a 20

[2:10:55] increase on the dental it's different on the dental than it is with the medical when you see a 20 increase because you're talking about 20 on 17 versus 20 percent on you know hundreds of dollars so when we're looking at delta dental you'll see right now your in force rate is 17.06 on your low plan for employee only coverage and you can see that the increase to for delta dental specifically would be 21.33 so it's a few dollars more a month for the dental coverage again that's to make up for the loss ratio so that they've over the last couple of years you've been basically breaking even with your claims when you talk about the two between last year and the year before and so they need to have some profitability in there delta dental offered a three-year rate guarantee meaning that these rates would be locked in for the next three years and so we would see no increases to your dental over the three years cigna offered a two-year rate guarantee with a cap on year three meaning that on year three they say we will not increase your premiums more than ten percent on year three usually when we see caps on year three it just means that you're going to experience the ten percent increase on year three we see that time and time again and united concordia offered a two-year rate guarantee oops wrong direction for your retirees they have their different dental plans same plan designs but they pay for their premiums separately again same type of increase that we're looking across the board delta dental's at 25 increase cigna 23 and then united concordia almost 21 same rate guarantees with your retirees and you'll see the difference in costs for employee only is around five dollars a month of an increase in dental premiums the recommendation was remaining to renewing with delta dental it's because the three-year rate guarantee having a three-year-old for dental is is a good thing for your employees to for stability um and then

[2:12:58] there's no provider disruption for employees for where they're currently utilizing for you know we don't have that big difference between the the in-network dentals at dentists and the auto network dentists are there questions on dental no questions on dental so moving on to vision the city received responses from five different vendors on vision your current spend is around eighty nine thousand dollars annually again the quotes included similar plan designs to enforce and usually when i say similar it's because there might be some slight variations between plan designs we selected two carriers for best and final pricing again based on cost network and disruption we reviewed the top 20 current utilized provider envisions vision we don't have as many folks that are utilizing but you'll look superior and imed were too so you'll see the in network for superior the top 20 all of them are in network for imed 12 or in network 8 or out of network access to providers we also take your member zip codes and say where are your folks actually located at and do they have access to two providers of dental services within 10 miles superior had 81.3 access to 2 within 10. imed had 74.3 i'll say it's not uncommon to see only 81 access to within 10 especially when you're located where you're at because a lot of your firefighters may live miles and miles away and so they would be used to driving additional distances some of your employees as well might live a little bit farther than city center and so they have to drive a little way to receive services at that point most of them are used to that just because of where their geography is when we look at the plan design and if you look at that bottom notes it says alternate if you look at the plan design that your current high plan is six dollars and three cents a month for employee only

[2:15:02] coverage the high plan that we're saying is an alternate plan and i'll explain that in a moment six cents so an eight percent increase but again really fifty three or twenty fifty three cents difference a month but what it does is it increases your frame allowance for from every 24 months for frames to every 12 months and so for a little bit extra money people can actually receive glasses their their lenses and their frames right now it's every 24 months and some of your folks have said i mean i don't want to keep the same pair of glasses for two years or maybe the ones that i have them a little rough on and need another pair another frame set so it gives them an alternative to be able to change their frames out every two years or every year versus every two years and so the recommendation would be to renew the vision with superior and moved to that 12 12 12 so lenses frames and exams every 12 months enhanced benefits so it's enhanced benefit for employees but there's no disruption in the current coverage in the network pause here any questions on the vision any questions no questions okay eap services these are your employee assistance program that's the toll-free number that employees can call in if they need assistance with maybe mental health or grief and loss they need financial counseling services or legal services we received responses from six vendors to resp provide eap services right now the city spends around sixteen thousand dollars a year on that we have about a thousand folks participating in that and we selected three finalists for best and final pricing when i pulled this in currently yeah deer oaks is what your current provider is and so you'll notice that that's the the most cost but they actually did reduce their cost from what you're currently paying the pieces that i wanted to point out are training hours these are hours that hr can use to have people come in on site to the city of san angelo and train you know maybe they want to try and do

[2:17:04] some financial counseling training or some training on stress management or something along those lines they can bring in folks on site to be do training hours critical incident response hours if you have an incident so we've you know i know when you opened up this morning you there's other cities that have had some very critical incidents over the last few months that you have your first responders that are out there on the front line taking care of folks they will respond out and send someone on site for two hours per event to help with counseling for people that might be in the middle of either that situation or involved in that situation and then for face-to-face visits it's how many visits so i'm let's say i'm going through a divorce and i want to sit down and talk with a counselor or maybe i have some grief management that i need to go through i can have six face-to-face visits per incident per year at no cost to me and i go to the network provider and i have those visits and hopefully can receive my care so you'll notice that the lifeworks and the opt-in options they have less training hours less critical response hours they're either three or eight but not per event and then the face-to-face visits are less so your employees would have a higher level of eap service through the deer oaks would you go back on that so we have um utilized and they've executed this 26 hours of training your staff utilizes a portion of the training i don't know that they take advantage of the full 26 hours but that again can be part of our communication process with that dollars that if we decide that we remain with aetna in the community relationship using those communication dollars to let folks know we're having a training course on this or you know bringing people in so that communication dollars can be used for communicating to your employees i will say there's value to training hours especially on years where you either have major plan changes or you have no plan changes you know just to give people the additional resources for them not necessarily the most important piece

[2:19:08] of training hours i think my biggest piece for pointing out on the eap is the critical response hours having someone boots on ground be able to help your folks that are in need of talking to someone during something that's critical happening in your city and then also the face-to-face visits because if you're going through an issue having additional visits and not having to worry about stopping your treatment three visits in is important for your folks all right so we don't have documentation in terms of what we've used in the past in terms of training hours training hours to give you kind of a down-home texas response to that is we haven't historically but we're fixing to because that's obviously a big part of the total package the annual premium is what's built into those training hours correct yeah and the and the critical response and the face-to-face visits those are pieces because if you think about a face-to-face visit with a counselor you're sitting talking to someone you can pay anywhere out of pocket between 100 and 300 dollars depending on the level of service you're receiving so that six visits that extra visit from lifeworks over deer oaks is is a pretty big difference and then the other piece is providers in texas and so when we talk about if i need counseling services how many providers do i have access to and you'll notice there's a pretty big delta between deer oaks and life works of that fifty four hundred and thirteen hundred so you kind of pay for the network really is what you're paying for then optum has twenty seventy two hundreds correct but three face-to-face visits which limits your employees if they're having a critical incident where they need to sit and talk to somebody but only by three i mean it's not like it's 20 to three right most of the time for the eap programs people can usually get most of their therapy unless it's a long-term situation done in between five and six visits so it would just really be a matter of do you want employees to pick up that extra out-of-pocket cost if they need to

[2:21:10] talk to someone so you're saying per person is six face-to-face visits and there's no limit to the total number of face-to-face visits packaged into this premium correct six face-to-face visits per incident per year so i'm going through a divorce and then i lose my parent and then my child is being horrible and i need to go through counseling for you know parental counseling with my child it's six visits per event that i call in for and anyone that utilizes an eap program it's going to be a smaller percentage of your population but those who utilize it use it and it's usually for those that really need some extra help and don't have maybe resources outside of family to be able to actually help professional resources to be able to help them get through their events i think we're going to need an eap analysis after we get read before we get ready to vote on this and might have counselors waiting in the back for well we have critical incident response hours i can bring folks out for that too if you want to speak to them um but the recommendation would be to remain with xerox they did lower your enforce costs they have significant amount of training hours the critical resp incident hours are not limited so it's the two hours i've never seen them come out for two hours and leave immediately after the two hours up they come out and they they're there for what they need to be there for but also it's not limited to one event or eight hours total it's per event the face-to-face visits obviously are a big piece and then the network just having access to providers right and you have a screen that shows a difference in premium per month on the comparison not the the two dollars and 19 cents just the total annual premiums what i have here so when we look at the dear oaks here it's around 15 um almost 16 000 right now you're paying 16 000 so they lowered a little bit for you about 600 a year life works is 9 400 a year and then optimus 12 900 is about 13 000. so it's an additional

[2:23:14] i guess three thousand dollars over optum but again you have the training hours that as brian says you're fixing to use and then the critical response i think that's to me the critical response hours are one of the more important things to me when i'm looking at eap programs because we have enough things happening in the united states right now where it's happening across the u.s and we need someone to be able to come out and be able to help our first responders help the people that are going through those incidents and so to me that's an important aspect of any eap program questions from council proceed so fsa those are your flexible spending accounts where people can put money in pre-tax pre-tax deductions they put aside to pay for out-of-pocket costs regards to their medical dental or vision coverages we receive responses from eight vendors we have 115 participants currently on our fsa plan and our approximate annual spend is around 4 800 a year we selected three finalists and asked for best in the final from them and i'm kind of i'm going over these really quickly just because i'm going to pull up the the kind of the summary for these benefits because there are lesser benefits as far as um costs go so i'm going to kind of show you where we're looking at for that for cobra that is if someone leaves employment for the city of san angelo it helps extend their benefits out we receive responses from 10 vendors our approximate spend on that as well as around 4 800 a year and we selected three finalists for that as well aca reporting this is a government mandate that you probably receive your your 1095's in the mail when you get around tax time as part of saying that you have coverage through through the city of san angelo or through your employer the city received respondents from four vendors to provide these services we have around 13 81 participants we spend about 2 000 a year on that annually and the current administrator did not actually respond to the rfp so

[2:25:15] that's something we have to move on this one and then the benefit m enrollment system so we received responses from six vendors we don't have a system currently in place but the budget has already been approved for that 67 thousand dollars and that is an administrative piece where people can go online enroll make decisions on what plan that's best for them they can go online to make qualified life event changes so let's say they're getting married or divorced they can go online and do those pieces it shores up administration uh alleviates errors and then what they do is they also transfer files back and forth between carriers and the benefit administration system so that process that's manual right now is going to be a lot more fluid and easy for for hr um to be able to handle some systems provided additional administration services and so we requested best and final so here's what we did is we looked at a company called plan source for benefit administration and what they do is they actually include your cobra fsa aca reporting and enrollment platform all within that 61 000 your total cost right now including the budget for your enrollment platform is and your cobra fsa and aca reporting is seventy eight thousand eight or six hundred dollars a year so really if we bundle those products together we have a cost savings of seventeen thousand dollars a year over what we're budgeted for that's what you're we're talking to today about is selecting plan source for 2020. correct for all those because the the administration of cobra fsa and aca reporting all actually can be solved by a system that collects your employee data and demographics already and then those administration pieces make it so much simpler for not just hr for but your employees as well so then the recommendation on that one is to move to plan source um it's a they

[2:27:19] have a benefit shopping experience and they have um it's a little bit of an interesting experience for employees to be able to go on and actually shop for their benefits you have three plans how does someone know what plan to choose this allows them to go on and put in some information about themselves and it'll help recommend a plan for them it has quick concept videos to explain health benefits so we have less than 15 percent of the population knows what deductible copay coinsurance out-of-pocket means so they have videos in there to explain that to people so they understand that a little bit easier it has decision support tools to be able to help employees select a plan that are beneficial for their families based on their current spend they also have marketing and open enrollment communication pieces the aca fsa and cobra are included and then also i bolded down here which is a kind of an extra that they had on here they'll manage your retiree health plan billing as well at no additional cost and that right now is a manual process for your hr staff this will help streamline that administration piece what's the cost saving on that i think that's soft dollars right it is a soft cost but you know the complication uh and the complex nature i guess to all these reporting and all these things eventually as the government adds on new regulations related to health care it could really grow into another position so i think this future proves us against ever asking for for that that piece because the software will do it for us as well and so i think um not only that but one of the things i actually got a question this week about was uh you know when you have a life change event by irs guidelines you need to make those changes within 30 days and uh this will make that much easier for everyone to get through that process because you know a month passes pretty quick these days um and so i think this gives us a a little bit better tool there to to meet

[2:29:21] those things because we're always put in a place where you know compassion would say yeah let's go ahead and just make that life change but the irs guidelines will not allow for us to make that that that change uh or it would jeopardize our pre-tax contributions for everyone i think this will help solve that as well and so there's there's overall there's very little cost associated with this when you compare it to the plan and the benefits that we'll get from it okay questions um from council on this with none continue so really the recommendations for next steps um you know talking through this deck the wellness pharmacy clinic and medical retain that relationship with community delta dental remain with our dental plan vision retain superior vision eap retain deer oaks the biggest change that we're recommending this year would be your fsa cobra aca reporting and benefit administration system there's a lot of moving parts to that we would recommend implementing plan source and you know just again to talk back briefly to the medical and pharmacy i you know ryan has said you know i don't envy the choice that you have to make i know that there is a definite decision that has to be made when it comes to benefits with your medical we do not see what you have in the marketplace across the board and that helps us maintain the integrity of your plans maintain the integrity of your premiums for your employees and their out-of-pocket costs which we do not see that for most other organizations that don't have the relationship you currently have and you know i i'd like to strongly stress that we will if if this is what the um court wants to move forward or city council wants to move forward with that we can do everything that we can to communicate to employees some alternative options that they have if they're seeking care outside of the city of san angelo and with that being said i just wanted to again emphasize the fact that the reason we have such a tough choice

[2:31:23] before you and i'm i guess i apologize for that but is because of the creative way we did this rfp otherwise that choice wouldn't even be in in the spectrum so again i think we're we're making strong movement toward an eventual solution to that i don't think we're quite there yet but i do think this is really good news even though it's a tough decision for you guys and we're happy with whatever you decide okay so um are we to take a vote today yes we are supposed to take a vote today what i would recommend possibly is uh there wasn't really much discussion on dental vision eap we'll vote on that separately so we're gonna vote on the medical rx wellness clinic retain with community aetna separately from the balance of the other four so when someone makes a motion make a motion one motion first for medical arcs wellness clinic retain with community aetna and then we'll go through that process and then we'll take a second motion for the combination of dental vision eap and fsa cobra aca all right with that do i have a motion on the floor on medical rx wellness clinic retain with community aetna i'll make the motion to stay medical rx wellness and clinic with community aetna you have a second i'll second tommy made the motion thomas seconded we will open up for public comment is there any public comment with no public comment take a deep breath we're going to take a vote all in favor of the recommendation for medical rx wellness slash clinic retain

[2:33:26] with community aetnocei i those opposed aye motion passes 6-1 we will move down we will take a vote on the dental vision eap and fsa do i have a motion to accept the recommendations for those for line items second by harry a public comment with no public comment we will take a vote all in favor say aye aye with none opposed motion passes 7-0 here i'd like to add something very briefly only if you're going to say we're going to take a break afterwards we're going to take a break after this mayor um no bring in the eap no really i just really wanted to thank brian because i do know he's got a very creative mind and that's one of the reasons why i really liked him for his position and he takes this approach with everything he does and i do appreciate him working very closely with holmes murphy to present something to us that quite frankly every year we have seen an increase and this year we actually have an option for a decrease so again just very thankful for his additional work on this and that's all i wanted to say your heart is definitely in the right spot thank you for the work the effort loss of sleep now you've got a plan you've got a level of expectation now brian thank you all and we will it is 1106. so what do you say 11 20. we've done that we're done all of it uh-huh no we we approved all the dental vision eap and underneath okay so do you want to change your vote it's too late okay i'm done you can stay up here while we take a

[2:35:28] break while we're gone okay i love for everybody thank you all and let's come back at 11 20 does that give everybody time yes hearing and first reading of an ordinance amending chapter 2 administration and personnel article 2.07 boards committees and commissions and julia euron yes ma'am this time last year we started looking at all the boards and commissions and tried to unify those across um all the boards so one of the changes we made was to make the term limits the same we have three two-year term limits for most of the boards we added a provision that if any board member failed to appear for two-thirds of the meetings in a rolling year that would be deemed as their resignation and council can also take two-thirds of a vote and remove someone and um all the boards now have the same conflict of conflict of interest provision that the city council members have so those are kind of some of the things that we did to standardize the boards and then we also did some changes specifically to certain boards and so in the last year we've kind of been looking over that uh change and we realized that some things were missing in order for the zoning board we were having problems reaching a quorum and so we've added in this holdover provision where if there was a vacancy that could cause a problem reaching a quorum that person could stay on until a suitable replacement was found and we're also removing the requirement that boards meet each month for instance we have some boards that just they were meeting but they didn't necessarily have anything to discuss they're waiting on cases but because of the nature of those boards we can't say oh you're going to have a case in february and march but not in the summer months you know so we're saying they don't have to meet unless they have a reason to meet and then for

[2:37:31] civic events we're suggesting that they meet quarterly we did speak with them to find out what their meeting requirements are and we did read over in the chapter and there's very specific duties that they've been assigned and so we felt that quarterly was sufficient for them to meet and then we also added a provision that if council at any time wants to direct any of the boards to meet they would have the ability to do so if there's a special project that comes up yeah just a minute harry so on the adding a provision allowing council to direct any board to meet for a specific purpose or can the board request to for example if you quarterly meeting and then there's something that came up that someone wanted felt like they needed to call a meeting for most of the meetings they would be able to do that for our water advisory board they meet as directed by council and the way we have the civic events advisory board written as well and they would be convening quarterly unless directed by council okay harry that was my question is why are we singling out civic events parks and recreation still comes under carl this is a specific one why don't we just remove the monthly meeting requirements for all boards well we have by law have to yeah somebody uh we have removed the requirement to meet from the boards that that's eligible for and the reason we specifically looked at this one is because we're trying to be considerate of the volunteer and the staff time and if we know ahead of time that they don't really need to meet based on what they've told us then we didn't feel that it was necessary to leave that in so i think there's still some concern and i know sid's not here but carl is some concern with some of those board members that that particular board is being singled

[2:39:33] out to just meet quarterly as opposed to removing the monthly meeting requirements on it so that's why i bring it up the water advisory board what did we do only as needed as allison still here yeah is that the name of that board it has a water advisory board yeah and it's as needed right as called upon by city council basically there's a reason it is not as directed by city council so that's it too so and then which boards exist that by law we have to have for example the planning commission zoning cheers co-cdc animal shelter advisor animal shelter those are by law so those can't be dealt with anyway so it's not about signaling in anyone out or in it's those are required by law i might add that she had mentioned we had spoken with them i think she spoke with carl and sid and i and what we did was review uh the duties that the civic events board looks at which are the policies and their bylaws and their facility needs and so forth to see how many meetings you know we really at least have to have in order to to do those things so we reviewed that that was not reviewed with the board itself i did speak with the board chair and vice chair informing them of what we were looking at and one thing that billy nahara asked me to mention he wasn't able to be here today but he did have a concern about keeping the interest of the board members if they don't meet regularly that was his one concern he asked me well my concern is if you meet without a real agenda it's you and that's what's happened and i'm not saying this board i'm just saying there are boards that meet regularly because that's the way it's set up and the agenda is not particularly worthy of a meeting necessarily but you still have city staff time and that's

[2:41:36] above all things it's about city staff and the time and effort put into preparing for a meeting and not really having a big agenda and i've had people complain to me that they've been on these boards and then all of a sudden the night before it gets canceled because there's not anything on the agenda or the week before so i think it's trying to better use citizens time i think it's trying to better use city staff time and it's trying to keep an agenda focused towards making sure that your time spent is is spent on issues that really need to be discussed and not minimal in nature if you will harry would you like to speak please i don't i don't disagree with that i'm just wondering why civic events is on this particular ordinance is to convene quarterly when the rest of them are said removing the monthly meeting requirements for boards i would think that which should be sufficient for the whole whole ordinance and just to tell you a little bit about the background whenever um teresa and i were reviewing this some of the other boards that we had identified that we could possibly um put this towards would be the construction board of adjustment and appeals the dhrc and then tears but as we all know we can't really say when those cases will come up so we didn't want to restrict those because we kind of know the cyclical nature of when civic events does certain tasks that's why civic events was brought up not to target them at all so it wasn't a target it was just reviewing what each board does their role their requirements not intentional for anything no no while we were cleaning up the other provisions we just thought we would um add this in there and if it's not council's desire we can obviously change that but we were just reviewing it and that was what we came up with okay do we have questions further questions

[2:43:39] for julia okay with no further questions from julia do i have a motion question to approve as presented second public comment you did i am here mr weiss it was billy and i had a board chair civic events uh thank you mayor and uh for you all having me up here uh anyways um what miss uh julia was talking about was she has not gotten any input i was really surprised to see this on the agenda and no one coming before the board to ask us our opinion do you know what i mean you know in the previous agenda item choice was a big word that we used you know and given that i wish that they would have come up to us and said what would you guys like to do give us your input on do you all need to meet four times eight times 12 times so we'd like to be given that choice granted we probably don't need to meet 12 times but we probably need to meet more than quarterly some of the things that we that we go about so anyways my recommendation is that do not pass this give us the choice you know we don't have to meet we can always cancel meetings maybe we could manage those a little bit better mayor as far as when we think they can be but i think all boards can so it again it's not about this board it's about all boards i understand but in this particular item we are talking about civic issues that's correct and so what i'd like to say is give us the choice to meet there will be times when we don't need to meet but there's times when we when we go out and we tour facilities and then we talk about them for a couple of times and then we make a decision it's not just go meet the facilities the next in the next meeting we we go take a vote on it and there's many facilities uh to go and we can't hardly sometimes do that in one meeting because we've got to go to the coliseum we'll usually do the paseo and the in the in the river stage all together and so sometimes those things take out we've done we've formed a couple of subcommittees right

[2:45:40] now uh to talk about um the river stage and the paseo and of course we've always the coliseum is always ongoing so we i know the cvb is doing a lot of things they're trying to get more people to san angelo to me we're the keeper of the facilities and so we'd like to be able to have free reign to go out there and discuss those things that need to but you're right 12 times might be might not be might be too many but i think four times your subcommittees can still meet yes but one of the things i talked to mr weiss is all of a sudden right now i feel that we have a pretty strong board i feel that you know i've got two accountants me myself and and mr mahaffey um we've we've just seemed to to really try to work together to see what can we do and on the future items to uh to become better and and meet and advise the sick events department you know and give us give them our counsel on what on what direction to take and to me you know i'm in sales the numbers don't lie and i feel the civic events since we got on the board since uh mr sid uh got on board i think that we've done very well you know and i think that it's a team that's worked together to do very well and produce well for the city so i'd like not to have our hands tied so that's just my my input on that thank you very much we appreciate that further comment and just to reiterate what you said um the tours and the subcommittees that wouldn't count towards those quarterly meetings they could then report to the quarterly meeting whatever they discussed in the subcommittees lane did you have a question yes so they they're made to meet quarterly but they can't request to meet beforehand are they unable to do that if they you're asking if they if if they want to call a special meeting it's if it's a month before their next quarterly meeting can are they able to do that is this a requirement to say all right you have to meet quarterly but can they call that meeting like if billy

[2:47:44] says they do not have the way i understand it they can meet quarterly they do not have the ability to call a meeting where they take action other than those four meetings a year unless directed by council let me ask you a question when you say quarterly it doesn't mean the quarter because the quarter would start in october so you could actually meet october and then january or december you in other words you meet four times a year and the question mark is whether those four times occur on a quarterly basis or four times in a yearly basis so you could call a meeting to quickly address it because you're going to have four meetings a year and you might not you might pull one up two months because you need to address something is that legal or not you could do that we would just need to change it from quarterly to no more than four times a year unless directed by council all right well we have the motion that as this is right now so and that's the second so but so we can't change we're we're going to have to take a vote on this one and if it doesn't pass then we can bring something else forward but this is the motion at hand before you vote i'd like to read you what the duties of the board are just so everybody's clear this is a very limited scope of the board i mean if there's other things that need to be addressed you guys are the ones who would be assigning them those additional duties the duties of the board as you've approved is they shall act as an advisory board to the city council as to matters of policy and to the city manager or his or her representatives as to the administrative matters in regards to the operation of the convention center foster communications coliseum the memorial river stage farmer's market city of san angelo indoor arena pecan creek park pavilion and el paseo de santa angela the board may enact rules and regulations regarding the operation of the above name facilities which shall take effect after review by city council however city council may take action to enact different rules and regulations at any time so we took that dude we took looked at those duties and

[2:49:48] asked rick and carl how many meetings does it take to serve this function if there's additional functions and a member thinks there's an additional function they can always come to a city council member and ask to have an additional meeting and that can be directed to be to do that the the concern we have about a lot of the boards especially the boards who have a very limited function like this one is that they want to do something i mean these are citizens who are motivated to help their community and when we keep bringing them just reports and statuses and updates without any action they start wanting to find something to do and that's when we start going outside of the duties that are assigned to that board so like julia said i mean we can change the language however you would like us to but we felt like after discussion about this board in the context of other boards that one it's still a necessary board because we were also looking at can we alleviate any boards um since we do have a problem finding people to serve on our boards we didn't see any that we wanted to get rid of but two are there some that we can limit the number of meetings so potentially to free up citizens to do other things there really truly is a pressing matter which really uh i think those four meetings will do it but there truly is a depressing matter uh as you mentioned a while ago theresa city council if you talk to council member can't actually call that but again i think that's going to be very rare uh that that will occur so again on our point and our as far as our recommendation is to to go this route as well my biggest concern the mayor you brought that a while i brought it up a while ago is that uh it does take a lot of staff time it does take a lot of prep work you look at all the meetings all the boards that we have you multiply all those hours by the city staff associated with those it's not just one city staff member sometimes it's as many as five or six and that really does add up so we want to make sure that we are more efficient with our time and so this is why we we actually do uh support uh the changes that are recommended here okay yes tom theresa let's say billy calls me says hey i need to have a meeting something about the coliseum how long would it take time wise to

[2:51:49] legally have the meeting um well it would depend where we are in the city council schedule i mean we can develop a process by which council makes a decision you guys can say like the mayor or two council members or whatever can determine that and we can write that into the rules but we would need to put on a council agenda to direct them to do that and then their meeting would come after that a week two weeks week to two weeks yes but if it's anything that's urgent they they're just advisory in nature so we would bring it to you directly anyway we wouldn't go through them first it would come from a special agenda item no one's gonna hamper anybody from doing the business at hand but there that is an advisory position not a and and we have someone very strong running civic events sid who manages and books and works with people quite well and he's shown his ability in booking these facilities so we haven't hampered him in any way and that's number one concern for me billy i think you have a question or comment um i do did someone come forward complaining about meeting monthly and there not being anything to to talk about or discuss we've had several sit-ins citizens that do that we also have numerous complaints from the board members whenever the meeting is canceled last minute and we've also had staff that has shown up for meetings and they've been canceled due to lack of quorum or lack of items on the agenda so it is a problem and that's why we're trying to structure anything as with specific dates if at all possible and that way people can plan ahead and plan their vacation around it we have problems in the summer especially with quorums i think i think if you have a meeting that you know is going to be held quarterly you better plan for that as well you know which items will be on that list what's going to be discussed and

[2:53:50] i think you better coordinate make sure that because you're meeting quarterly that you have everything lined up that you're going to discuss anyway so i really think it can work i don't see an issue with it whatsoever and again on our end we just really look i look at it from the perspective of staff efficiency as well all right with that no there's no public comment there was a motion to accept it as presented we'll take a vote all in favor say aye aye any opposed aye aye motion passes 4-2 4-3 i'm sorry who is the third dissenting oh all right we'll move on to item d and then following item d we will in fact take a break for lunch so we have pub i'm sorry first reading and public hearing of an ordinance approving z19-13 a rezoning from single-family residents res1 zoning district to the two-family resident rs2 sony district on .482 acres located at 215 217 and 219 south washington street generally located at the northwest intersection of south washington street and west 2wig avenue john you're on thank you john james director of planning and development services this is as you mentioned on washington street it just affects these two lots basically both of these lots have a second housing unit on the back of the property both of them were built in the 1950s so this is a pre-existing situation again each of these lots has two basically two dwelling units on them it is the neighborhood future land use single-family zoning you can see back behind it is an area of small-scale multi-family although most

[2:55:52] of that is single-family developed already but it is zoned for multifamily and so what we would be doing is just rezoning those two lots to allow the two units rs2 zoning again it's not allowing any new development on the sites it's just recognizing what's already there on the site which has the side benefit of allowing these property owners to do maybe some additions or things that technically aren't allowed today because they are non-conforming uh on their properties and so they're requesting the change well one of the property owners requested the change we talked with the adjacent owner who was in the same situation and they said yeah they'd like us to include them as well just a couple of pictures of each of the houses again that houses fit within the neighborhood the secondary home or secondary units are in the back of the property and again this just legalizes what's already there it is consistent with our plans as i mentioned that those apartment units were built in the 40s and 50s it's similar other properties within the area have similar accessory apartments but again today we're just fixing these two we did send out our notices we did get five in opposition um two of those were from within the 200 feet you can see those there three were from outside the 200 foot notification area the major concern was just a concern of changing um the zoning from single family and what that might allow but again these these are both really to reflect what's already on the ground there it wouldn't allow any additional units to be built or anything like that uh would you go back a minute i apologize um on the five that were not positioned we're in opposition because what did they say general concerns about more units in the area are being able to build duplexes

[2:57:53] one of them was about possible drug activity was one of the comments that we got but as i mentioned this would not allow for you know something to be built that's not already there it's just reflecting what's there now this would you know if one of those houses burned down theoretically they could come back with a duplex on those lots given the size of those lots and the character of the neighborhood i suspect if that were to happen anything that would be rebuilt would most likely be consistent with the quality and architecture of that area anyway but again it does open the door to that it does technically open the door to that but again as you saw this whole area here was zoned for apartments so all three of those opponents are actually on properties that would if their houses burned down could build a four unit apartment building on those properties so again the character of this area is single family and i don't suspect that would change with this change as i mentioned staff does recommend approval as did the planning commission unanimously do i have questions for john no questions well that's simple okay so then i must have a motion harry moves it and lane seconds it public comment if you'll state your name please yes my name is amy zetzman i'm actually one of the owners of the properties at issue and i just wanted to be here in case you had any questions do we have any questions for her thank you for your time appreciate you coming okay with no public comment we will take a vote all in favor say aye aye none opposed motion passes seven zero we are going to take a break now one of the reasons we're doing it as

[2:59:56] we are is i understand that there's a parent student a lot of schools are having parents student meetings today from 12 to 1 and so we've been asked to work with staff because many of them want to go meet the teacher and so we are going to take a break to 115 probably one let's see what's i got to look at that there's four items so let's say 1 30 we'll come back that gives people plenty of time to go do what they meet the teacher and accommodate staff's needs and our lunch don't forget that pardon me we are going to do closed session while we are at lunch today so executive session and the provision of government code title 5 open government ethics subtitle a open government chapter 5-5-1 open meeting sub-chapter d exceptions to requirement that meetings be open under the following sections a section 551.072 to deliberate the purchase exchange lease or value of real property if deliberation and open meeting would have a detrimental effect on the position of the governmental body in negotiations with the third person regarding lot 90 section 9a block 2 red arroya hills edition b section 551.072 to deliberate the purchase exchange lease or value of real property if deliberation and open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person regarding spring creek marina c section 551.072 to deliberate the purchase exchange lease or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with the third person regarding southside recreation center and d section 551.074 a1 to deliberate the appointment employment evaluation reassignment duties discipline or dismissal of a public officer or employee regarding the

[3:01:59] annual evaluation of the city manager and we will see you all at 1 30. p.m and we will move into item e which is the first reading and public hearing of an ordinance approving z19-1 a rezoning from the general commercial cg general commercial heavy commercial cgch neighborhood commercial cn office commercial co and low-rise multi-family residential rm-1 zoning districts to the central business district cbd zoning district and on approximately 80 acres generally located north of the concho river south of west harris avenue east of santa fe park drive and west of south randolph street john you're on thank you again john james director of planning and development services as we looked at our comprehensive plan that designates areas in which the cbd is to grow in the future central business district this is one area that our plan our adopted plan for years has shown as one of those expansion areas for the cbd so as we were taking a look for a number of reasons over some development issues that have come up over the past year or two we decided it was time to to look start looking at these areas and so the area we're talking about is bounded by harris uh randolph and then basically the park uh and and the river uh so expanding into that uh entire area as you'll see on the next slide the current boundary uh of the cbd is right there at randolph and so we're looking at incorporating it into this area in the future we may also look at at this direction and and perhaps the other uh towards the east as well but we didn't want to take take on too much at once and so for now we're just looking at this uh kind of this southwest quadrant of the downtown area you can see it's a

[3:04:03] it's a mixture of zoning everything from cgch to residential zoning one of the benefits that we see of this is it would allow additional flexibility for the properties in that area right now for example our commercial districts don't allow residential and of course our residential districts don't allow commercial and so we'll see little spots where people have rezoned their properties to different things to accommodate the particular use they want to do whereas the central business district is much more flexible and much more open to mixed uses so that you could have you know an office on the first floor and and somebody living above it or you could have a mixture of retail and apartments and so we think by expanding the central business district into this area it provides that additional flexibility in addition it does not and i'm not going to go through all these there in your packet it no go through them it creates very few non-conformities in fact of existing uses within this area we only found one that this would affect negatively in any way at least theoretically in that case it's the auto repair of the goodyear they are already in existence and since auto repair repairs allowed in the central business district by conditional use they're not only they're not non-conforming they're actually considered conforming so they're as if they got a conditional use for that location so in fact this rezoning does not create any non-conforming properties that would no longer comply and i've highlighted in yellow here the few land uses that are allowed in the current zoning that would not potentially be allowed under the central business district and you can see campground rv park uh rental equipment currently allowed uh campground rv park would be allowed as a special use they would still have to come to the council to get permission but only in the cg or cgch district and so they would not be allowed under central business district

[3:06:05] so they couldn't put an rv behind the western mattress building or they could they could not if it's if it's zoned central business district then you could not have an rv park um i think staff would would argue that perhaps anything in the cbd is probably not appropriate for a large scale rv park type use similarly with the rental equipment and vehicle repair you'll notice that both of those are a conditional use so worst case scenario is if someone was looking to do an auto repair shop somewhere in the central business district they would have to go through an extra step of coming to the planning commission to get there are a lot of them that exist in the existing central business district that are vehicle repair shops right but again the only one that's newly affected by this would be that goodyear the others are all in the existing central business district so to the extent that there's a negative impact to them on being zoned central business district they're already zoned that uh currently with that one exception a couple more uses industrial service and manufacturing uses uh would would be industrial service again it's it's allowed in cgch it would be a conditional use so it could still happen in the cbd it would just take an individualized approval by the planning commission similarly with animal kennels horse boarding plant nurseries those are all uses that typically take a lot of land we don't see much if any interest for those in the downtown area even this expanded area anyway and then finally food and beverage processing drug processing those are all sort of manufacturing type uses and again they're only allowed in cgch so the only areas that would be affected by most of these uses are the ones that are the heavy commercial uses that again staff believes is probably not appropriate uses for this part of the town anyway if if for example you did not let me go

[3:08:07] back to that map if we decided for whatever reason this area was not appropriate for central business district our recommendation would be things like office and general commercial any of those heavy commercials that exist already are really a hold over from a previous zoning ordinance uh and and especially along beauregard here that is zoned cgch that's probably not the appropriate zoning for that corridor anyway and again most of these i've talked about industrial kinds of uses obviously wouldn't be allowed in any of those existing apartment or single family zoning districts either way this is just the development standards you can the main point of this is that there's much more flexibility your lot sizes can be smaller in cbd your buildings can be closer to the street and cbd and there's reduced in fact no parking requirement for most uses in the central business district so they're in this area we're talking about there are a lot of non-conforming buildings that are too close to the street there are a lot of buildings that don't have sufficient parking uh this provides and as well as uh lots that are too small for that existing zoning district so this takes a lot of non-conforming building slots and properties and makes them conforming so it for most properties that this affects it's actually moving them in the direction of becoming a more legalized use uh for that they were legal anyway because they they're legal non-conforming and so if if they were to burn down for example they couldn't replace them at the current layout you know they there are a number of things that they couldn't expand their building for example if uh if the building is right up to the street the current setbacks in our commercial zoning is 25 feet so any building expansion would have to be 25 feet back from their property line even though their existing building is right up on the property line so this it sort of addresses those non-conformities on those properties

[3:10:10] just a few pictures i'm going to go through these pretty quickly but um just a few examples of uh in this area what we've seen is is for example if you want to create an office uh our parking requirements necessitate that you pave all this front for parking versus leaving it looking like a more like a single family home and leaving the grass now that's not to say you can't do this under this new zoning it just doesn't require you to do it as our current code would with without being in the central business district you could leave it all grass you could leave it all grass under this change uh here's just a couple of pictures of examples of buildings that are built right up to the property line which wouldn't be allowed without being in the central business district the rationale for approval i think i've addressed most of these through through my descriptions but again it provides more opportunity for those property owners it does come to you with the recommendation of staff also the planning commission unanimously recommended this we met with dell at downtown san angelo and he was supportive as well no he wasn't supportive and we only we only received one notice in opposition four in favor in addition we talked to a number of property owners who did not respond to the notice but called with questions about how does this affect my property and after describing what it would allow for their property uh again none of those chose to to be in opposition the one owner in opposition was basically just skeptical of anything the city does and was hesitant for his property but in fact given his current use of the property this actually again creates more flexibility for him his non-conforming building would become conforming under this change as well as i mentioned it does come with a recommendation from staff in the planning commission with that i'd be happy to answer any questions

[3:12:12] the comments that i've had from people are well why would we waste our time and effort and energy on doing this and then the other comments i received are why don't we just declare the entire city a commercial development be done with it because you've got residential in there you've got all kinds of businesses what part of the city other than when you get deep down into maybe the central part of college hills does this same review not apply for example north bryant boulevard from houston heart north i mean you start doing this and then there what's the logic between doing one area and not all the areas and the rules don't seem to be the same even though the conditions are the same and the existing zonings might be the same and so we've picked this one little area to all of a sudden change the zoning on and there was a reason why there was a downtown business district to create that was created to begin with i mean there was some pretty good logic behind that and so you start i know several people who said well just just hey just change the zoning for the entire city then i mean they're just it just people don't understand it i'm sorry and i don't either yes ma'am this says mr dale velasquez of downtown san angelo spoke in favor of the request he explained that the main street boundaries are larger than the proposed cbd boundary but that he understood city staff will continue to look at these other boundaries that sounds like he spoke in favor of it well that's part of the conversation it wasn't the entire conversation because the challenge for and you know what i'm not going to speak

[3:14:14] for somebody else but i know what the intent was when he went to the meeting and basically it was it was going to move forward anyway so figure out how to be supportive of it because we're going to do this and so um it's kind of what you get out of that conversation but that you know there was a central business district created originally and you see it over there in white right to the right that's right and that was because it was the original central business district right boulevard and south bryant boulevard used to all be homes down in that area so they were all residential they were not major freeways going through the city so a lot of development happened because guess what the homes were torn down and those areas became north well coining heim and abe streets and then when they became coining him in abe streets which is 277 north and south or 87 north and south then businesses started to develop along that which is what always happens when you put in a major freeway mayor what is kind of the i know this is not something that you support but why not i mean what does it what are the adverse effects of it i'm i'm missing that i'm sorry that's okay so here's the comments i get from people is the same conditions that you're saying apply here apply to many areas in the city so if we're does that mean that based off of this we're going to go back and re-review all of the zoning and all of the city and change the zoning because there's not anything in this little section that we're looking at today in terms of

[3:16:18] zoning that's uniquely to its own that it applies to many areas for example further down 87 or 277 koeningheim or abe those same conditions would exist right i'm not sure to the same extent but we do have other areas that are similarly mixed use and non-conforming i would say that one difference here is that the the city did go through a planning process and adopt a future land use plan that did designate a slightly larger downtown area which included this area and so we're staff was acting on an adopted plan that said yes this is an area we think that the downtown should grow into over the long term is that the comprehensive plan for the city that is referred to quite a bit yes i would also add that in this area here along david street we've had a number of rezonings in the past couple of years a lot of those older homes are converting to offices or different types of uses in some cases apartments i think there's a short-term rental in there we have a couple of food trucks along here that that the setbacks of this general commercial district were affecting the placement of a food truck whereas the central business zoning would allow them to be closer to the street so that's one of the areas we picked this area to start with was because we have seen activity in this area that were in some ways inhibited by the current zoning and rather than have individual properties come in rezoning after rezoning or special use or conditional uses it seemed to us to make sense to rezone this this whole quadrant right there so if we don't rezone this and leave it as cgch what's the impact on that it's it's no different than today but then but there are a lot of businesses along there that

[3:18:21] are currently non-conforming so again they would be limited in being able to expand they you know if if they were to expand for example or change uses if they're short of parking they would either have to provide additional parking and if that's impossible then there are some uses that maybe couldn't go on those properties that sort of thing harry you wanted to comment yes please just want to make a comment that this didn't happen overnight john and staff working with businesses and downtown association has been working on this for two years this was something that i asked why we did certain things in certain areas early on in my first go around as councilman and they told me that this was an opportunity central business district was an opportunity to combine some of that stuff to allow some of these things to happen and i certainly support it yes sir so john in your opinion okay does this take away anything from the current business district is there is it you know we want to develop and go in stages and hopefully our growth will make us even deal with this later down the line and here's how does is there a downfall to this and does it harm the current cbd largely i would say no i mean i guess to the extent that it opens this area up for more intensive development you know if you if you're looking to get close to downtown with a business or restaurant or whatever the case may be it might you might look at this area whereas maybe you didn't before because to go into this area you'd have to get a rezoning or some special approval whereas this rezoning by adding the flexibility you make it more desirable for development so it perhaps opens it up as people are considering locating in the downtown it expands that area they might think of as as

[3:20:23] viable and wouldn't that be wouldn't that help our downtown i guess that's a one of those rhetorical questions that you don't have an answer to but it just seems to me as though that would help our downtown vibrancy to have an opportunity for more businesses to move closer to downtown i don't think it inhibits them from doing it currently i mean i don't i don't see that being an obstacle today and if you look at directly into the central business district you'll see that there's huge amount of opportunity within that existing district for a lot of growth and development um i'm not sure it hurts it or helps it one way or the other depending on what the business is if you said you wanted to tear down a building and put a duplex or triplex where one of the single houses are would you be allowed to do that yes well i mean you mean today or under the new zoning under the new zoning yeah you would um and depending on the zoning you in in some of these areas you'd be able to do that today but not all of them in the one zone for commercial you definitely would not so in fact in most of this area you could not put in housing like that without some sort of special approval so if you were looking for example on 277 87 south and you were around the northern part or where walmart is and you went north there's homes on one side and now development on the left hand whichever way you're facing so what's the zoning for all of that area and what's the zoning from houston heart north on 87 and 277 you know i couldn't answer specifically

[3:22:26] but largely that's all zoned commercial although there are some pockets of those existing homes that may be zoned either ranch in a state or single-family residential but the no area is clean in other words no area is the slate's been cleaned and we've been able to create holistically an area that is 100 percent the zoning that we want it to be i would say that's probably true in the old area older areas of town in the more suburban areas out southwest drive college hills southland those areas were developed at a time when that segregation of uses was more prevalent and you do have you have your mall and the area zone commercial then you have residential zoning and there's really not much inner mixing of the two compared to this area which is a big mixture of everything from commercial to auto repair to single family homes so i think this area is much more of a mixture than especially those newer growth areas but no area is pure unless you're in the middle of a bentwood country club well that's true and i think in in terms of development and the way things are going i think what what we've learned as cities is the more you just separate everything out that actually creates its own problems so when you have shopping over here and homes over here and they're completely separated that actually creates issues and mixing uses together that's my point is better yeah exactly my point thank you any other questions or comments from counsel who to approve is presented any public comment no public comment we'll take a vote all in favor say aye those opposed one me passes six one f first reading and public hearing of

[3:24:34] ordinances approving one pd 1 9-0-7 a rezoning from the general commercial heavy commercial cgch zoney district to a planned development pd zoney district to allow for uses permitted within the general commercial cg zoning district and a shared sign plan on acres located at 4150 and 4238 sunset drive and actually all these items under f can be taken in one motion if that's your preference so i just read once i'll do two z19-10 are rezoning from the ranchon estate rna zoning district and general commercial heavy commercial cgch zoning district to the general commercial cg zoning district on 0.484 acres located at 4744 north chavern street and three z19-11 a rezoning from the ranch in the state rna zoning district to the general commercial cg zone district bless you on 6.109 acres located at 5026 link road and 4z19-12 a rezoning from the heavy commercial ch zoning district to the light industrial ml zoning district on 5.95 acres located at 6993 and 7005 south u.s highway 277. thank you the reason these are all combined is these all four of these cases are cases in which staff is supportive there was no opposition from neighbors and the planning commission recommended them unanimously and so we've combined them and my presentation will be a little bit abbreviated but feel free to ask ask questions unless you'd like me to go each one i'll i may just go through all four at once i'll pause for questions at each one if if you have those this is an area out by the mall on sunset this is the old hastings location and mattress firm those properties are next door to each other this is basically creating a plan development

[3:26:37] district the main purpose of which is to allow a shared sign under our current zoning ordinance a business can have a sign on their property but they can't come you know two properties can't have a shared sign on one of the properties that makes it what we could call an offsite sign this basically would allow that type of shared sign as you may recall or you'll see on these pictures they're the two buildings the existing hastings and mattress firm signs they got a special approval years ago when this was first built to have a shared sign but now that they're wanting to do a new sign they basically have to come back to get that approval again you mean the mattress firm has to come back and get approval for that new sign for only their business well because they want to put um a sign if it was just the mattress firm sign then they wouldn't have to because they want to take this sign down put up a new one that's also a shared sign since they want to have both businesses on it that's what requires this approval so the hastings business has been the building has been leased out we don't know that you can assume that maybe that something is in the works since they are moving forward with the new sign but we have not heard any specifics on that this is the concept plan they really want to put the sign at the same location it is as it is currently they just want a slightly larger bigger taller sign it's going to be about 46 feet tall versus the 35 foot sign that's there now we did send out our notifications none in favor or in opposition i think i took out the slide we had some pictures and there's some in your packet the new sign wouldn't be any taller than their surrounding signs pier one target so it's it's consistent with the area that's consistent with the sign ordinance absolutely sure yeah if if they weren't trying to share the sign that would be allowed today it's it's really the only reason it's before you is so they can put two two

[3:28:39] businesses on one side again that's a recommended by staff and the planning commission uh there are a list of conditions here but uh it re limits them to the one sign so by sharing the sign uh they can't come back and each have their own separate sign now that it limits them to that one um i did get a question from someone about uh lighting and how that might affect the apartments that are close by here we do have a provision in the ordinance that says if there's any spillover glare from the lighting or the lighting of the sign that we could ask them to either dim the signs or or somehow orient the sign to make sure that it's not negatively impacting those apart those are lighted signs not the digital signs correct just to be clear it's a lighted sign not digital right i didn't hear a rumor that there's gonna be a blockbuster going in there is that correct just blockbuster is already sure because there would be the second one in the united states of america so anyway too bad yeah [Laughter] unless there are questions i'll move on to the next zoning case this is on north chadburn uh rezoning from cgch and rne to cg this is one of those you've seen a couple of these recently back in the past this city rezoned all along chadburn street basically a strip on either side um 50 100 feet back and so what it did is split a bunch of properties and so what they're wanting to do is basically take their entire property and bring it into the cg zoning so that it's all a commercial zoning and you can see again we we might see this property come in asking for the

[3:30:41] same thing at some point we might look at cleaning some of that up but that's one of those why are we not cleaning this up when we're cleaning other parts of town while we're already cleaning up stuff this would have seemed to been a natural to clean up well this one because the the the length of chadburn and how many properties this affects really it's just the the fact that it would that would be taking on a huge effort and at this point we haven't viewed that as as worthy of the amount of time it would take to do it including all the notifications it's such a large area we would be notifying probably thousands of property owners and the cost associated with that uh like i said it's it's sort of on a long list we have of things that would be nice to clean up just hasn't made it to the top of that list this is the existing facility and you can see the adjacent property of the west this is an area of largely general commercial type development and again this this would allow them to expand on the property by changing this the ranch and estate zoning to a commercial we mailed the 200 foot mailing zone right that's right but how many businesses exist in that or how many of those properties are actually in use in that mailing zone you know we could probably tell you can see here the ones that got notified if we go back to that aerial photo wow it doesn't zoom out enough i mean you can see there are some adjacent properties that do have activity because one of the things and billy has brought this up before is you know when we mail out somehow often it affects people who aren't in that 200 feet or yards whatever that is yards or feet feet in the 200 feet area and yet all of a sudden then something starts to happen on that property and they want to know why i wasn't notified so

[3:32:45] just to be clear and of course that's up to you all i think in in some cases in the past we had over notified we we thought now these people might be interested so let's notify more than we have to at the time it was of course a previous council we were told no just notify the ones you have to don't don't be deciding who to who to notify more or less let's let's just notify what we're required by state law to do some cities do notify a larger area and that is definitely up to you all but right now our practice is only to notify the 200 feet even if that means only one property owner gets notified again as i mentioned this comes to you as a recommendation from staff and unanimously from the planning commission the third item here is a church on south bryant basically they want to rezone from ranch in a state which does allow churches but to general commercial basically it's a commercial corridor on bryant they want to put up a sign that's larger than what would be allowed in ranch in a state and given that this is a commercial corridor we believe it makes sense to rezone that to general commercial that not only allows their sign but if for whatever reason that church moves or or something in the future that's an appropriate location for commercial anyway it is that's not a digital sign right well it could be i mean all we're doing here is changing the zoning so our sign ordinance does allow for digital signs uh so it wouldn't prohibit a digital sign that corridor would allow them so at this point they have not submitted the details of the sign to us that would come later in the process it is future land use and our future land use plan is commercial you can see it is part of ranch in a state but it's actually adjacent to an existing area of commercial zoning so we believe that makes sense and that ranch in would you go back a minute on that ranch in the state arne

[3:34:46] above that property what's there i believe that's vacant currently you can see on this picture i don't know if it's actually used for anything but it there are no buildings or anything on the property so changing the zoning on this piece of property would or would not impact that piece of property yeah there's nothing there right it would not and again as a commercial corridor like this i think our feeling is the expectation along brian is we could expect over the long term for most of that to be commercial anyway i don't know that anybody would go out and you know build a ranch in a state residential subdivision at that location if they did however there would be screening requirements from commercial potentially in the future if something commercial actually developed there this is just a picture of the the church on the property we did send out our notifications did not receive any responses in favor or in opposition which is good because part of that land would be your under your 200 in your 200 feet quarter where nothing exists so there could be no in favor or opposition well there's a property owner though so they if if they did have ideas for that property they would have had the opportunity to to comment and likewise this one is recommended by both staff and the planning commission and then finally the fourth one here is rezoning on highway 277 almost at the city limits from heavy commercial to lot manufacturing this is a a processing facility that isn't allowed to do everything they want to do in the current heavy commercial zoning and so they want to see a zoning to lot manufacturing which we're supportive of the the long-range plan you can see for that whole area is industrial there is a lot manufacturing zoning immediately to the north

[3:36:48] so we think it's appropriate for that area just a couple of pictures of that property and we did receive one response in favor from that property to the north and none in opposition with that i'd be happy to answer any questions on any of the four cases do i have any questions or comments for john on this pro on these properties member district 2 the one at 47 44 north tavern we're not going to affect anybody it's good it's good to go numbers on their districts impacted i've not heard anything from either the two in my district mayor okay so do we have a motion move to approve a second by tom public comment with no public comment we'll take a vote all in favor say aye aye with none opposed motion passes 7-0 move on to item g first reading and public hearing of an ordinance approving the abandonment and vacation of a 20 foot wide by 300 foot long 0.1370 acres or 6 000 square feet feet public alley the north-south alley located south of west beaugard avenue north of west colorado street between south jefferson street and south madison street thank you this is this actually could have been included on that last item but we typically don't put abandonments with rezonings this one is recommended by staff unanimous by planning commission and no opposition this is similar to ones you've seen a couple of these just over the last three or four months this is along beauregard they're between jefferson and madison it's an alley that really is not in use as an alley for any of those businesses and one of these businesses wants to extend parking into what is now an alley and so we would be abandoning that for city maintenance to the ex i'll get to that in a second just a picture down the alley again

[3:38:53] there's no trash service anything like that that would be negatively impacted there are some utilities in the area but our normal requirement is that they maintain an easement in what is currently the alley for any utilities that are currently in that uh that area as i mentioned there is aep and sudden link in that alley and they've asked for an easement as well but again the current plans are for only extending parking into that area this does go through a review process not only with external utilities like sudden link and aap and others but it goes to all the city departments water utilities streets and and there was no opposition to this with that i'll be happy to answer any questions are there any questions from council no questions lane moves to approve a second by lucy public comment with no public comment we'll take a vote all in favor say aye motion passes 7-0 we'll move on to item h was the discussion and guidance on the development and funding of a financial incentive program to promote in-field development in neighborhood neighborhoods targeted for revitalization bob you're on uh good afternoon uh we recently stood up a working group made up of department representatives to brainstorm options searching for ways to increase the affordable housing stock for middle-class citizens it's a need identified by the recent housing study in this case infill is defined as having the sword and water infrastructure already in place it's much too costly for the city to absorb the cost of installing the infrastructure for a housing expansion we believe that an incentive program may have i may promote developers to encourage them to develop in those infield areas who was in these meetings

[3:40:56] we had ellison we had [Music] the two assistants and managers uh we had shane we had lance um myself we had uh guy andrews john james and john james so all city staff city staff that's correct uh this is uh what a program design would look like uh staff recommends uh providing up to eighteen hundred dollars uh per unit for residential taps both the water and sewer uh units must be either a single family duplex or small apartment project no more than eight units we also recommend capping the incentive per applicant to 9k which is about nine well i'm sorry about five units per year and that's to ensure that we can spread the wealth around a little bit the development would need to be in a target neighborhood and that's not only to help promote forward the neighborhood revitalization plan but also to keep down the cost of a new home purchase as is directed by market forces houses in our neighborhoods happen to be a much lower this is a map of the infill areas in the city the neighborhoods target for revitalization are in yellow you can see it right there and you can see that a lot of the infield vacant lots are actually in those areas there are the vacant lots are in red [Music] um did you go back to that screen a minute let us for a minute so if you're talking about uh 87 north or

[3:42:58] where where's 87 north and where's 67 87 north i believe that's bryant over here that's harry right there yeah that's 87 going up and down though and houston heart would be where would be roughly and chadburn south would be where you ride in this area right here and bell street would be oh that would be down over here somewhere i'm just guessing i think you're probably pretty accurate with that and then that yellow area on the bottom right hand side below all of those markings right here yes sir that's that's part of the real vista the rovista target neighborhood and any major and they cross over here to this other area right here too that's also real vista kind of splits okay um to kick off the program uh staff recommends your market about 50 000 from the general fund uh the source to be identified later unfortunately we can't use cdbg funds or the kosa dc affordable housing funds for middle or upper class incomes and we don't want to tie the hands of the developers to sell only to low-income families it kind of opens it up a little bit unify low-income families what's the um average um yearly salary it qualifies uh for a family of four maybe forty two thousand dollars is a number that comes up to mind and it goes up every year in fact it's probably up to 45 now but that's that's roughly the area we're talking about and at this point uh we would like to get direction from council see if you want us to investigate uh have an

[3:45:00] interest and us pursue with this program i think we need to investigate it but if you go back to the um i think the screen before that so here would be my issue with it and that is capped at 9 000 per applicant per year because when you look at infill areas there's only a few builders who are interested in infill areas there aren't that many who are building an infill and so the question mark is these incentives would have a minimal impact based off of the limitations based off of the few numbers of builders actually building an infill and so i think that capped at 9 000 per applicant per year is too low and particularly when you look at the cost of um what some of these water and sewer lines are costing to put in to some of these areas it's really pretty low we agree mayor uh these terms are in here as a starting point for a discussion we tried to bob tried to put together terms which seemed to balance well but that doesn't mean that's where the program needs to start we're uncertain we everybody that we talked to about this was very positive about some sort of an infill program sure uh but the starting point for the discussion uh we're a little uncertain of and so we do need council's help for uh is the 1800 per unit appropriate is the cap appropriate is the funding source appropriate we're ready to jump in and give it a try uh but we we i don't think we have a sense for how popular or how effective the program is going to be that's why i strongly suggest i mean counsel can give you lots of ideas and input but unless you have some of the developers sit in

[3:47:03] the room with you and you present this to them and get their input we're not in the development business lane is but i mean were we sitting here or not and i would say to you there are many of our builders in town that only do new construction etc and then there's a few who are doing this type of a project i think you need to get input from them and bring some help review this with them let them give you some of their ideas we can look at additional sources of funds and bring it back to us but i think having singularly just city employees city and head you know you're in charge of your division so you're very smart and very bright and very educated about yours but you're not the builders and i think you have to go to them and say okay tell me about this infill where's your biggest expense what's the biggest issue where where do we need the city's help that's what we need to know mayor knight this is good i'm sorry i do want to mention of course in talking to developers the thing is they always talk about for every 1 000 in uh dollars in cost you know you're you're knocking out what 200 peop 200 potential buyers on the market right now we're at 1800 so that's close to 2 000 so we're i mean i know that the comments that i've heard have been positive that this is a really good area to start off with we do have to be really careful because of course we don't have a you know deep pocket so we definitely would uh love to hear from the developers but we'd have to be really cautious not to because developers would love to have a lot more and we just listen to them and see what what uh what else they would recommend but again our on our end we know that 1800 does make a pretty good impact for them as well but if you if your direction is for us to go back and and talk with directors we can i mean uh developers we can definitely do that we're not going to give away the farm sure you know i mean you know where did it have some input from developers artificially of course uh we have a developer in our in our staff in fact uh steve diaz he built something for us uh galileo cdc is a

[3:49:06] developer they they uh they gave some input so they'll also get government funds on top of it right so i mean you're talking about what we're really talking about as well are people who do this sure and we do talk to them we have uh dialogue with them often uh so uh not completely in the dark so we do have some basis for this recommendation but we can certainly go back and we will we'll go back and uh i think it's a great beginning we'll formalize this a little bit we'll formalize it and then come back to you with their input uh see this thing's changes they may not change but he may you know because if you have someone who's gonna put in 50 infield homes you know i mean go ahead i'll talk after you go go ahead you know we're looking for everyone we put in we're going to get 3 500 in taxes come back so it's basically a two-year payout for this and it comes in uh you know if you're capping it at nine grand you can only put in four of these i mean you've got no more and eight units but you know if you kept it at nine grand per applicant if you got a developer i mean are we going to develop or are we going to say you can have a little bit so i'm with the mayor i'd say if we're going to open up be aggressive with it let's go aggressive with it and get you some builders to talk to because i think some people would take this and do so a lot more development in some areas that would affect all of us significantly with that in mind how do you propose to fund this program let me stop a minute and tommy wanted to make some comments and once he talks in we'll talk about that bob do you prefer guidelines from the council since this is a brand new program i am wondering if the flexibility with just a dollar amount for you all maybe to start with something and if that doesn't work maybe you have to add some to it do you prefer that we give you some limits on these things or would it be better for us to say here's the money you have you got to use it wisely

[3:51:11] but then you all have the ability to to deal with that as you as you move through the program i'm very comfortable with you giving us a number and us working with that number somebody wants to put in 75 new homes in one area absolutely and that's three different builders okay so divide 75 by three it's 25 each 25 times 2 is 50 000 i mean you start doing the numbers because you either want development in infill or you just want to play with the idea and i say the following to tom's point you get eighteen hundred dollars it costs you that this year only that house is built you get property tax on it today next year the next year the next year the next year and then the next year and then the next decade and then the next decade that eighteen hundred dollars is so small per unit for the life of that property and the property tax dollars that the city is going to get you cap it at nine thousand per applicant per year you're not really talking about an aggressive infill program as tom said so and there aren't many people out there doing infill so and i'm not maybe there's 20 more people who want to do infill but that's not what it's looking like and i just say we want to grow the property tax base enfield brings us zero or close to zero and my biggest challenge on this is the capped at nine thousand per applicant because a city over three decades will benefit aggressively from the six decades that that property has been empty we were very conservative uh because we were not quite we weren't quite sure how much of funds that were in the world and

[3:53:14] that's if you if the depending on the cost we could certainly design a program that would be very aggressive again we we we give uh you know 50 000 per unit sometimes depending on through our program so it kind of depends we can certainly do that uh 1800 came from the cost of a water sewer tap so that was an easy delineation and easy capture so that's why we came up with that number that's jane what does it cost to put in a thousand feet of water and sewer allison she's my lady glad you're here allison we're allison i've had called on her so many times today and it's like it's not my job brandon anywhere she is she's supposed to be in san antonio she's supposed to be in san antonio yes ma'am and she's she hung around so i'm trying to tell her your question was how much water and sewer line would be um rough estimates would be about sixty dollars a foot for six inch water line eighty dollars a foot for eight inch um fire hydrants you add that cost uh engineering costs those type of things um so um if we're talking infill that infrastructure is already there that's correct yes as well say infill there's i think two different types of infills there's a lot of vacant lots that we have water and sewer infrastructure in place ready to go what is not there is the tap to the lot line itself so we are servicing water and sewer in that area there could be two homes on either side and so they just need the taps to get it to that property well in some cases it's um water but not sewer which are several examples of that septic and so then all of a sudden you have to put in sewer and then the other issue is the following is that you then have an existing six inch water line and because you're expanding you've got to take it up to eight inch and so then you've got the increase on the next

[3:55:15] three thousand feet at eight inch so i mean there it's not just simply it's there a lot of that would be really maintained around the these large red areas not the not the yellow portion with the red empty lots in because the majority of that will just need what allison said from the main line to the trunk of the of the property line you should talk to some of them up there because i think you'll find that that's not what they tell you mayor i guess what we do need to make sure we do is we truly define what works our expectations of infill really is because i know what lane is trying to talk about is there's going to be some vacant lots already within the neighborhood where all that services are on there but there we have developers who are talking about developing bigger uh portions of land so on our end really uh we need to make sure that we define exactly what that infill will be because we if we're going to incentivize it we need to know exactly what we're incentivizing as well so there's a few acres within a neighborhood that's not going to have the lines there for it but also my my two cents on that is you want if we're going to do this we need to have an incentivized program to where it knocks off enough to where you know five thousand dollars can be a tremendous help on financing so if it's a forty five thousand dollar home not a 50 someone lacking that that's 45 000 income they're talking about 150 150 thousand dollars yeah i say 45 yeah but there was a warning for that in my head 145 000 home and 150 000 dollar you know the bank's gonna say okay that might be the breaking points eighteen hundred dollars might be conservative like you said but yeah we can play with things based on the cost stuff main thing is how we're going to fund it like mike said we're we're everybody's very supportive of the program it is just a question of how how aggressive do you want to be and and how do we want to fund it one of the options

[3:57:18] for funding is this excess sales tax that we've been talking about for streets and potholes at the end of the year create a one-time pool of money uh to and and see how the program goes um uh uh i mean wait and see is a nice idea but i think we either have a program or we i don't know we would have a program but it wouldn't necessarily be built into the uh original budget and so the question is mayor tell us what you would like for a cap what i think you need to do is get with the builders have a meeting with them talk about what what the expectation is in terms of what development could possibly happen in the next 12 months to 18 months and look at what that means to us i mean we're again as i say several of the people that are up there developing are looking at 50 and 60 homes yes enfield was actually one or two homes on a block that's already got water and sewer on it and all you're doing is looking at putting taps in no infill is also where you're in an area that you might have a four block area within the midst of that neighborhood that has not been developed that wasn't my understanding of what infield was but that's what's going on let me tell you and that's what i was trying to say is that we need to make sure that we know what our expectations are it's making a difference yeah absolutely different how we want to approach this program we've got an inventory plenty of inventory questions to fill out and this is just a discussion right so we're not going to discussion right now this is a discussion point where a little bit of guidance to get go forward and come up with different uh different programs it's a great beginning and i i give you all credit for getting this far on it and we're so glad it's being brought before us and opening up the conversation because it needs to be done but i'd really like you to get more input and come back at the next city council meeting the first week in

[3:59:21] september for us with a more formalized presentation based off of input and that would be great john james is going to work the regulatory side one of the other aspects of infill is appropriate regulatory and appropriate regulatory environment and he is going to meet with his uh development task force it would make sense for us to present at that same meeting and get that same group to talk to us great can we time our return to council around that well it depends on when that meeting is michael because i really want this to come back to us the first week in september because i think this is a major major opportunity and so i would suggest you call if you need to john your meetings tomorrow morning did you say we're good then we're good yay okay would councils still be considering staying in the target areas yeah yeah absolutely yeah because that's your that is yeah okay it's already established perfect yes ma'am if you're talking about a builder building 75 units wouldn't it have to be outside of that target they're not all on one block billy they're not all on one area they could be they could be taking a 50 block area and doing two houses per block for example see what i mean they're not all like this like if you go out to bentwood and do a big thing one there could be three houses on 49th street there could be six houses on or three houses on 36th street two houses because they're buying individual lots within blocks so there's not a block of land if you will even though that might look like it there's not a block of land that says i'm going to put 75 homes there they're spotted throughout that area so they're piece milled and that's the reason it becomes expensive because

[4:01:23] you're doing this up here then you're doing this down here and then two blocks over you're doing two over there it's not like you get to do three blocks in a row linear and that's the difference so even though that looks like you could do it you can't so the probability of having taps in that area are very high yes okay and we'll try to avoid sticker shock yeah back to you well within reason we understand but as i repeat would you not rather have a property tax for three decades down the road that continue with the six decades of zero property tax on those lots roger that plus we're in dire need of housing around america and we're in dire need of housing so it fits really a strategic plan here thank you very much for the work that weighs high enough like a the percentage of return they've been empty for 60 years oh whoops and i'm throwing my pen around sorry lucy almost got stabbed sorry i'm sorry i saw it lucy okay so we will move on to the um item i and that is um first public hearing of the property tax rate for the city of san angelo for the 2019 tax year tina yes ma'am thank you mayor tina darcy director of finance and that is not the slide that i was looking for but that's the one that is showing so um i don't have my slides up just yet but this is the uh this item is the first public hearing on the property tax rate for the tax year 2019. of course we discussed at a previous meeting we took a record vote to keep the tax rate at the same amount of 0.776 per 100 valuation and we are required to publish the property tax rate the effective tax rate the effective m o tax rate the rollback tax rate and the debt

[4:03:26] tax rate in a in a public forum prior to adopting the tax rate for the next year's budget so i'm not sure you're working on it i think brian's working on getting the slides up so that you can actually see that in front of you um but i'll read them off for you the the property tax rate of course is the 0.776 per 100 valuation the effective tax rate is 0.7503 per 100 valuation and that is the amount of that is the rate that you would have to charge to raise the exact same amount of revenue um on new properties um that number is what 0.750 and that's the effective tax rate the effective mno tax rate is .6587 mno meaning for maintenance and operation as opposed to debt service the rollback tax rate which is um 0.8047 per 100 valuation is what would be capped at the one uh the eight percent over what we charged last year basically and then of course the next say that again the rollback rate is um capped at eight percent before it could trigger an election oh here we go now you have it in front of you thank you brian so this here is the rollback tax rate and that's the one that under current year regulations cannot exceed eight percent or it can trigger an election of the voters but of course we're not increasing our tax rate so it doesn't affect us but we are required to publish it and then of course the debt tax rate is at um 0.09366 per 100 valuation and that's the amount that we set aside for our debt service fund to fund things like debt issues for streets and things like that my question is why are we having this first public hearing the probably tax rate before we as a council have been presented with the general fund um information for this 1920 budget because

[4:05:30] it would seem to me we need to understand what's going on in the general fund and the amount of total new property dollars being added to the tax rolls so we have a better understanding of the big picture before we sign off on a rate and it's my understanding and i don't know if tracy can correct me if i'm wrong but my understanding is that we are required as a municipality to adopt a tax rate before we can adopt a budget okay but that doesn't mean that we wouldn't have a general fund presentation right i mean work because i mean obviously this tax rate is meant to be a key component to the total number of dollars that are would be brought in based off of the property tax dollars to fund the general fund yes ma'am and since you're speaking to the timing of the actual budget workshop for the general fund yeah because to me the general fund workshop should have come way before this conversation so we would better understand what it is we're talking about and but we're being asked and we when we did say okay 0.7760 but knowing that and knowing there's a lot of new property that will be put on the tax rolls we don't even know what how big that is or how much more dollars that's bringing to the table et cetera and it just seems like we're being asked to vote on something and maybe this is a public hearing and maybe we're not voting on anything but it's voting at a time period when we don't have a full deck of cards in terms of what the budget is going to look like didn't we get that that showed there was an increase of a certain amount 1.3 million or something like that that was the sales sales tax this is probably raised property taxes of 1.3 million dollars more than what we raised last year 1.3 million it was in your background yes ma'am oh but you but i mean this is the public health so this is a public

[4:07:32] hearing and then we come back on september 4th or the we changed the days it's the fourth and um the first and second meetings in september will come back with your property tax rate and that will be after the general fund workshop so this public hearing is to give the public a notice that we've um had a record vote at .776 but we can always decrease from there if the council chooses to do so we just cannot increase after that point so there's still we'll have the general fund workshop next week and then we'll have two more readings on the tax rate in september but the 1.3 million dollars that's in the packet that's not the public's not aware of that's increased property tax dollars not increased property tax valuations on new property it's a combination of both can you split increased valuations and some unless you have four hundred and five thousand one hundred forty dollars is tax revenue to be raised from new property added to the tax roll so the remainder would be increased valuation that's 900. yes ma'am mayor yes sir unless i'm mistaken the objective here is to have a public discussion and public discus uh a discussion in public about what uh the what these various rates are and the key is that rollback rate people focus a lot on that rollback rate so why pardon me you want to tell everybody why because uh if we uh issue if we approve a rate in excess of that that that could be subject to an election which might uh result in the rate being rolled back and that's an interest that's an item of interest to councils as they consider rates generally they they want to have the security of passing a rate and it sticking uh if they go above that rollback rate then there's some risk there and it gets attention and so i we can only guess what the state's objective is for

[4:09:34] this activity but we suspect that it is to make the public aware of what these various rates are that you will be considering as you develop that budget i don't think you're being asked to make a decision today just just to make the public aware of some of this preliminary information good enough just wanting to make sure that we have a full package before we get too far down the road and again as i mentioned earlier we will bring this back on september 4th with the proposed budget and tax levy and of course the adoption of the budget and the final tax levy ordinances on september 17th everybody nod we're good we're not asleep yet we're pretty close okay then thank you very much yes ma'am jay is the first public hearing and introduction of an ordinance amending the budget for the fiscal year beginning october 1 2018 and ending september 30 2019 for reimbursed expenses grants and an update and update the number of authorized full-time equivalent positions okay so this budget amendment is for four different items the first one is the u.s custom projects that has been approved by both the development corporation and the city council and the amount of 1.1 million dollars the reason it's requiring a budget amendment is that it will come out of the fund balance on the economic development side of the development corporation see billy we are doing fund balance and this next one is also coming out of the fund balance for the economic development side of the development corporation and it is to fund the remaining three years of the chatterbourne street project so far they've funded years one and two out of a five-year commitment of 755 750 thousand dollars per year for five years so this is the remainder it will be in a line line item for the project within their budget starting this next fiscal year

[4:11:36] okay we do need a budget amendment to increase our hotel occupancy tax revenue in order to fund our obligations to the financial cultural affairs council and the civic events that is because they are both still on percentage-based revenues or receipts during this current fiscal year and because we budget revenue at a static amount when we exceed that revenue budget in the hotel occupancy tax fund then we obviously also exceed the budget for those two obligations why would we not wait till we get through the rest of the year september 30th since we're in that fourth quarter so instead of doing it now and then doing i guess because the next one would be in the october time period didn't be we're running out of time this fiscal year yes ma'am so we projected what we expect based on what we received last year in september and projected out kind of based on that to cover so that we don't run the risk of the fund the entire fund going over budget okay okay and this is for the roofs at fort concho you had previously approved an amount of 125 083 dollars within the state office building fund hotel occupancy tax in the amount of 700 3 709 from that fund balance and the hotel occupancy tax fund and then um the remainder is just actually budgeting for those expenses within the fund the fort concho fund okay and that's all i have for the budget amendment if anyone has any questions do i have questions from counsel no questions is that good proof i do want to mention one more thing pardon me mayor i'm sorry we did if you um recall in the caption we are also bringing to your attention that we will be adding a full-time equivalent um to our budget ordinance and that is for the position that we're adding for k-stab so well go back on that wait a minute an fte which is a full-time equivalent basically another position will be added

[4:13:39] to our budget ordinance because we will have to hire someone internally initially for the first three years okay sab keep san angelo beautiful so in order to fill that position we have to increase our total number of positions for that staffing that makes sense so the non-profit doesn't raise money to fund the executive debt so i if you'll recall for the first three years the city agreed to fund that program and then it's meant to generate enough donations and in-kind support to support itself after that time period so for that three years we'll need that position um three years that position will go away yes ma'am that's my understanding off the city's books books right yeah that's why yeah yes yeah all right you want to amend your motion to include that as well is that what you're needing yeah so in a second tommy has a second on it any public comment with no public comment we'll take a vote all in favor say aye with none opposed motion passes seven zero the last item is k on the regular agenda which is an update on sales tax revenue performance yes ma'am and for the month of august compared with prior year we are up 5.74 for sales tax revenue and over budget year to date by just over 1.3 million dollars and here is a picture of how your sales tax by industry performed in the month of august compared with the prior year you had another slide in our packet that the cities and also by city right and um i just observed that in february it seemed like the sales tax went up and i just wondered what happens in february you know in 2018 stock show thank you tom is that what it okay well

[4:15:41] actually actually the revenue [Laughter] that we receive in february actually related to the month of december sales in the month of december so it would be related to probably christmas it's too much delay so it makes us think that and tom's taking it just made me feel bad about time on purpose you'd be the only one all right yes but this one by city so the slide that shows midland odessa and abilene and that is a chart that we put in to your sales tax memo that i don't have up here point but okay so abilene was down 1.06 percent in august midland was up 6.05 percent odessa up 3.62 and wichita falls up 2.37 so and i have a read those because we're getting ready to go into um the next workshop and just to remind everybody cities like odessa and midland were picking up 40 and 50 percent a year ago you just heard their numbers and so we need to make sure that we take that into consideration when we make our plans for our budget because um the sales tax increases are not double-digit anymore from some of the largest cities hit by the permian basin so we need to anticipate that in our budget team we will be hit and harry in light of the fact is that we'd have sales tax up over budget this year i would like for us to take a serious look at what we can do to increase the number of potholes that we can fill this particular go around i think that's probably one of the greatest phone calls that each of us up here get every every day and i know frane's making a lot of progress with his crews right now but i

[4:17:44] can guarantee you any help that we can get will help these streets we have always discussed that the increase in sales tax revenue over budget would go to street infrastructure so it is certainly we talked about last city council meeting taking a look at the benedetti money that we're going to get back from trading it in and looking at some um give me the words yes but the two words mil and overlay and buying equipment to start doing some mill and overlay in the city to help reduce some of the costs needed and and hopefully make a lot more progress so well and then to mayor i think that patrick let us know that they were having an issue getting materials all right we had so many potholes so i don't think it's that the effort is not there it's just you know we can't get the materials because we're i think doing the best we can so thank you very much and with that we are going to move i almost closed this off but with that we're going to move into fault number nine our follow-up and administrative issues so there's no announcements to make from items discussed in the closed session and be any announcements and consideration of future agenda items are there any with none i'm going to ask for a motion for adjournment and yes ma'am could we just remind everyone in the public that our next regular meeting will be on a wednesday we move that because of the labor day holiday so and for all the public out there our next regular meeting is wednesday september 4th thank you very much for that i didn't remember that and with that we didn't take a vote we voted take a vote i seven zero eyes yo

Captured 2026-07-26 · source: youtube.com/watch?v=CMfsvweys54