San Angelo City Council 7-16-19

[0:00:00] to start off today with Marcela Jenkins leading us in prayer and please ask for rain good morning everyone you bow your heads as I pray in the scriptures you have said that the citizens ought to obey the governing authorities since you have established those very authorities to promote peace and order and justice therefore if I pray for our mayor Brenda Gunter for the various levels of city officials and in particular for this assembled council I am asking that you would graciously grant them wisdom to govern among the conflicting interests and issues of our times a sense of the welfare and true needs for people a keen thirst for justice and righteous personal peace in their lives and joy in their tasks I pray for the agenda set before them today please give an assurance of what would please you and what would benefit those who live and work in and around our beloved city of San Angelo I pray for rain during our dry season that will replenish now only the trees and plants and animals but as well as us it is in your most blessed name Jesus I pray amen Lucy would you please come down and I would love for you to join us in doing the pledges with your great nieces who are from Holloman Elementary so Estella and Evelyn Burciaga please come forward like the United States of America

[0:02:12] Republic for which it stands one nation [Applause] okay bye thank you thank you there are no proclamations today so we'll move into can public comment we ask as a reminder to please turn off your cell phones and make sure they're on silent or vibrate public comment issues are 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 and all regular agenda items during the discussion of those items do I have anyone in the audience today who would like to offer public comment please come forward my name is Janice Potter North Jefferson it's where Jefferson runs across North

[0:04:22] Street North intersects Jefferson and for several a couple of years ago some they came out and fixed a leaky water leak and dug up the street made a big hole and then they repaired it since then we've had some rain and there's a place on the street where they fix it they wash this out makes a big pothole and it stays that way for two three months until they try to patch it again the third time they came out this week it they filled it with dirt and caliche I have video that shows where every time it rains whether it's little or much it runs right across that patch job washes the street out and I think that they're spending too much money just patching it up coming back over and over and over when it does no good the water runs across there across the intersection a block down and into the river and I just I think the patch or the fix it and needs to be a whole lot better to likely cement or whatever because it's gonna wash out every time thank you very much and we will it's Shane's in the audience so I see him behind that column so he's made a note of that okay thank you you can show it to him you know whose shank Elton is ma'am okay Shane he's raising his hand right there there further public comment today there's no public comment we will close the public comment section and move on into our consent agenda I am going to ask each council member if there's anything they'd like to pull from the consent agenda I'm gonna start with Layne I have nothing to pull Tommy ma'am Tom no ma'am Gary I want to shout out to the IEP group on Saturday had about 1,800 customers that were out of service because of a pole fire and they responded within about 20 minutes and

[0:06:26] within an hour I had electricity back on so I appreciate all the effort that they had on there nothing to pull with no items being pulled from consent agenda may I have a motion for approval motion by Harry is second by Lane any public comment with no public comment we'll take a vote all in favor of approving the consent agenda as as written say aye none opposed motion passes 6 0 or consent agenda passes 6 0 we will move into the regular agenda starting with item a consider resolution and public hearing approving the 2019 annual action plan for use of CD VG and home grant funds and authorizing the city manager to execute the applications required certifications related documents an annual funding agreement for the approximate allocation of six hundred fifty one thousand and seventy three dollars of CDBG and 290 4960 one of home grant funds and 53 thousand dollars in program income and Bob you are on good morning good morning mayor council a notch implant is our petition for the annual CDBG at-home grant funds it's the last opportunity for citizens to provide input into the plan and it is due to law to the HUD on 15 August the plan certifies that we're meeting federal requirements to include Fair Housing anti-discrimination and ensuring that our projects meet a drug-free environment it also addresses some key interest items to include housing for the homeless and special needs public housing availability and let base pain abatement but most importantly it documents the projects that we will be funding this year which we discussed

[0:08:30] last month Ahmir you had asked about a five-year plan we established four main objectives and programs that address those objectives starting with neighborhood revitalization you can see that our annual paint blitz emergency housing repair and code compliance actions support our revised activities we also want to increase our affordable housing stock which is supported through our new home construction and we address special needs VR TBR a which is ten based rental assistance and help enhance programs and lastly we set an objective to assist and address homelessness and that is supported by our homeless Prevention Program and our homeless coalition partnerships as just recap of our five-year plan if you recall last month we we discuss some of these projects and the proposed allocation we are asking for 31,000 for home Administration 131,000 for first-time homebuyers which will assist 8 to 13 clients 85,000 for TBR a which will assist 25 to 30 special needs renters and 120,000 for new home construction we hope to build at least 3 to 5 new homes and visa on the cdbg side where we 116,000 for admin 112,000 for project delivery 186 thousand for neighborhood let's retargeting 25 to 30 homes hopefully more 125,000 for emergency repairs were roughly target to 45 to 60 homes and then our debt payment and last month I mentioned that matures 2025 and actually matures in 2030 we went from a 15-year loan to a 20 year loan so that's the difference and the last night I have

[0:10:35] here is we are as you know we're limited on funding but we believe that these programs do have impact on the community especially a neighborhood revitalization we conducted a study in Blackshear over 10 10 years period and then you can see there started in 2007 2009 we invested pretty heavily in that area and then you saw it was really kind of triggered a pretty steady increase in property values and steady decrease in both code compliance cases and crime rate which really indicates neighborhood success some of the indicators we kind of kind of watch a monitor so anyway that's all I have this morning we're asking you to approve the annual action plan which I believe you all have copies of and I'd be glad to answer your questions well any of these funds be spent in the Bradford neighborhood they are we do have a plan going to cos'è DC next week to address specifically that area we have we're going to target some funds specifically for for Bradford and and and homes damaged by the storm so that's in addition to this is part of this there's gonna be a dition to this separate action separate funding so yes base off of those funds is there a specific area that we're targeting right now those are citywide except for the new home construction those are those are limited to the neighborhood's we targeted for we policy everything else citywide do I have questions from Council you see any question laying your face yeah no I'm alright with that then I would need a motion to approve item a as read motion by Lane a second by Lucy do we a public comment with no public comment we will

[0:12:41] take a vote all in favor of item a say aye none opposed motion passes six zero will move into item B which is consider approving a professional service agreement under RFQ es - o 4 - 1 9 - HDR engineering in the amount of 330 3838 for professional services to update the city's master drainage plan and authorizing the city manager to execute all related documents Shane you're on good morning all right this is an update to our master drainage plan of course it's as you know it's it's getting fairly fairly long in the tooth so from as far as plans drainage plans and master plans go for the city but we go back into our 2019 strategic planning workshop that we had back in the fall and if you remember I brought in I brought this issue to y'all there I guess spring brought that issue to you the end where we talked about some of the drainage issues that we're having especially as it relates to some of the road projects as where as we're getting ready to design and construct and build some of these things and and then need to update this plan especially as we're looking at all of the major road work that we're doing as well - because as you know our roads are our drainage system for the most part within the city so with that you know our last range plan it was completed in the year 2000 so again it's been a while and we have we've seen substantial growth throughout the city especially into the West in the southwest part of town that has really changed a lot of the the flow patterns and the volumes of the drainage that we're seeing in that part of town so what's the what are we looking at when we as we move into the end of this update and so we're gonna go back and look at everything that was done back in

[0:14:45] the late 90s and in 2000 when we finalized the last plan reevaluate all those areas because over time even all of those areas have changed the dynamics of all those areas have changed as well too we are working on some improvements right now currently out of the old plan namely Avenue P project which we're finalizing all our design documents currently right now we should be ready to go here pretty quick go to bid on those and we're also looking at the at the low order crossing there at East Angelo draw and Belle Street is we're redoing reconstructing Belle Street we're gonna we're gonna clean up some of those issues that we're having there that were identified in this plan so again reevaluating all the things that were identified in the last plan and then we're gonna look at the new areas in town that have cropped up in the last 20 years 19 or 20 years since since it was last evaluated so and of course we know the city staff is fully aware of a lot of those and so as we move forward we'll be working with the design firms to identify those areas and then of course once we identify those areas they're gonna go in there and they're gonna model all of these drainage basins around in town especially the ones that we're seeing the most difficulties with from from complaints from citizens and from the staff perspective we'll go back in there this company's going to model all of those drainage basins the flows the the rates and all the can get all the calculations and all of those things in there so that we can as we're moving forward through the through the the project and through the and through this Update plan update that there they will be able to come up with a ranking criteria that you know is going to take into the not only the amount of flow the amount of water that's coming down the life safety issues and we're ranking criteria for those and then we are going to prioritize those drainage issues so we can actually start with a CIP create basically a 10-year CIP is you know unfortunately you know we're not blessed with all the money in the

[0:16:46] world so we're going to have to prioritize these these drainage areas and these problem areas and then and then again try to identify funding solutions and in by dolphin chunks that we think that we can actually bite those in and that's what a lot of this is going to do they're going to provide the solutions for these drainage areas what can we do weather is that reasonable attention that's going to help this is this improving expanding drainage structures with the streets raising Heights lowering heights in certain areas what are those solutions that we're going to be able to do to address these drainage solutions and then give us probable costs of what those solutions will be and as we work through it and they're gonna provide you know not only with these probable solutions but you know for the first save the top ten projects that we that we identify that we feel that really need to be address we're gonna actually have them go ahead and do some initial construction phasing construction phasing for for each of those ten projects so that we can we will know if say it's gonna be a ten million dollar project well we know that we cannot afford to do all ten million of it at once so we're gonna identify what how it can be best phased in in chunks that can that we can actually afford to do and move forward and so within those and then also what this plan is going to do as we're as we're looking forth and we're looking forward and we're looking into potential growth patterns of the city especially again into the south and southwest portions of the city where we do seem to be seeing the majority of our growth we are going to look at those areas in right outside and etj in those areas that are developing in that our plan to be developed or what we believe will be developed in the near future and look at what that development what those developments are going to do to our drainage what those flows are going to look like what the increased capacities are gonna need to be and identify those so as we're moving not only with John James and the Planning Group in his issues in the engineering side you know when we start

[0:18:49] looking at the stormwater development and those issues from that side of the things we can also have identified plans in areas that we need to address moving forward so we're not retro actively trying to go back in correct situations that have been created with I'm sure without too much childish foster roads included in this and so that's definitely one of the that's one of those that will be included you know and we have a lot of our areas identified that are gonna be brought into the plan that haven't that are not currently in the plan again once we rank all of those we'll have to figure out where all they fall out and of course once we have them identified and we have them ranked then we'll be able to not only one bring us see up you know bring a plan and in CIP form that actually has identified with costs and it may be impossible funding solutions for some of them we'll also be able to have that ranked solutions and sets and so with probable with the a probable cost of solutions and we can also if we at that point time if something changes in the dynamics of any particular area we can always move those up within the ranking system and again have them designed and embed out and complete it as funding is available so sounds like we've spent a lot of time thinking through this whole process and establishing some once and needs and goals to be accomplished during this so I love the thought process that you're presenting today because I think it makes sense for not only this council but future councils as well because it gives us a real path forward yes ma'am and that's the whole thing I mean that's the beauty of the master drainage plan is one we need to be thinking not only what do we need to correct that's already existing but what do we need to do now for the future is well too so do I have questions from Council Lane oh no this is highly needed in a lot of areas when the initial study was done in 2000 same was did we anticipate just

[0:20:54] areas of development and excluded what has led to us of seeing the drainage that we see now did we think that we was going to develop over here but it ended up over here in the south southwest not necessarily the last drainage plan when it was conducted it just identified the hot spot areas we weren't necessarily looking at future development areas in that last study and that's why we found it so critical at this time to include those areas so we can help and when the last one was done that was that was prior to our stormwater ordinances that we have in effect now to to where we're actually worried about entertaining you know detaining water from new subdivisions from new from the commercial development and trying to slow that down so this was this was the last one was done pre stormwater ordinances so we really didn't have anything in place prior to the last one to even start addressing those issues until different now in this one in the in the old one we'll be anticipating new development right more than the last more than the last one correct Lucy do you have any questions for shame I do I think you mentioned this shame but just to clarify you talked about ETJ we've got some existing development occurring in our ETJ that does impact currently drainage issues those things will be looked at and addressed and in the priority fashion that you mentioned is that is that accurate that is accurate you know there's multiple you know we have some in the South in your area and then we also have some in the north and Tom's area that that are that are affecting you know it's it's out in the county the water starting from out in the county and it's coming into the city that are this definitely that drainage is affecting our citizens and so all of that will be looked at and because yeah there's a couple areas in district one that are some some are in the city limits obviously some are in the in the etj in the county that yeah yeah okay we

[0:22:58] have several those areas already identified in staffs mind and definitely wanting to look at an address you need any help you can call me because I got several calls sometimes the big flush coming from the north we would you just nailed it on the et je and 2105 that area going north is going on just as long as it's included okay it's it is it's that's definitely part of it just real quick comment and I think citizens understand this because all of us get calls on this every time it rains but I think we've this is the area that we spend a lot of time on the phone on with citizens so I'm glad we're we're headed in this direction you get an idea where we were coming from and what we can do for the future so I appreciate us going forward obviously against my constituents will really get mad if I don't say something about arrow-straight I mean so we got to make sure that we address that and know that it's on the list to do but I wanted them to know that that is gonna be taking all these and an era was actually on the last one as well too but however it's one of those that we will reevaluate because in a and again it's not only that the dynamics of the of the city have changed with housing and things like that as well to you know we're starting to see more intense rain events as well around here we hope those continue all right with that do I have loose you want to go ahead and make a motion does that make a motion to approve as presented have a second argument a second by Tommy do I have public comment good morning Steve Hampton I have a question the question is is this needed to qualify for grant money and if so what are those grants and how much might they be

[0:25:04] I know you're probably not prepared for exactness but just curious and also the other question I have is this is for the citywide and don't we have some of these engineering programs already in effect for like the code they read arroyo the manure answer is yes we do need this master drains plan to qualify for grants and even low-interest loans Texas Water Development Board has recently come out with a new program to help with drainage issues and and part of that would require the information that's going to be that's going to be garnered in the master drainage plan as well to some of those of course it's all dependent on upon you know the amount of money that's available you know through the through the state and even the federal government at times through some of the Corps of engineer programs that they have but yes you would apply for any grand actually and actually part of this part of the master drainage plan and and part of the task that we have tasked HDR with is to look at possible grant funding sources that are out there that we could apply for that would that would directly affect specific projects based on the requirements of the grant itself so they have been tasked with in this master drainage plan update as well - with that I'm ready Roy I'm not quite sure what the question is the red the red Arroyo there has been there are you know the FEMA flood maps and things like that that that have that shows some of the flood ways and flow patterns like that but we have changed the dynamic of the red Arroyo so so much in the last 20 years due to all of the construction in the building and even the commercial construction and building that has gone

[0:27:06] on in the southwest part of town that the red arrow is actually that's going to be the very first thing that we concentrate on so we can actually move forward with our College Hills reconstruction design project for the street portion of it because the flooding and you know on College Hills and salt rocks and all of those areas are so bad right now that's actually going to be the first thing that HDR looks at madrassas is going to be the Ritter oil issues that we have okay thank you any further public comment with no further public comment we'll take a vote all in favor say aye with none opposed item B passes six zero we will move in to items C which is a presentation of the 2018 cosa d c-- annual report and guy you're on Thank You mayor council mr. Valenzuela just preface to my presentation this morning is that you have a copy of the annual report within your package and for anyone that's out there that might want to copy I have a few copies with me and we will also be posting this to a new website that we're going to be launching within the next week I think you could characterize 2018 and this is a 2018 report I realize it's July we're actually a little over a month late in presenting this report but we're going to change that I think that you need more timely update on an annual report so we're going to change our bylaws to present this much earlier in the year probably in January of each year but this was a rebuilding year for us let me just say on that obviously on a quarterly basis you update us anyway that's correct and the timings great to change it but without a doubt you're updating as as we go along quarterly and

[0:29:08] as new projects come on board and you seek approval so I feel strongly that we have been kept in the loop we're aware of the projects and their successes Arriba as I was saying this is a was a rebuilding year for us in many ways we did reorganization within the city of San Angelo do I'm a corporation staff to align things more functionally and according to the talents of the individuals we have we work at improving relationships with our business partners and especially with our Chamber of Commerce that is a critical component of that since they are doing the business recruitment program in our marketing efforts I'm just going to run through those and highlight briefly some of the the highlights of this in our business retention and expansion program we did 489 new jobs and indirect jobs were created 130 direct and indirect jobs were retained there's about a hundred and twenty nine and a half million dollars of annual economic output in seven million in capital investments as a result of the program one of the folks that we helped out in that program was engine pro machines and we did that by buying down interest rate before them we also partnered with Goodfellow air force base a million and a half to help do some reconstruction of the air force base we are involved in the construction trades program with Howard College through a workforce high demands job program one hundred sixty seven thousand dollars in that program would continue to partner with our US Customs and Border Protection air and marine operations providing support to that operations in

[0:31:13] our business Factory we had two tenants within our business factory during the year a hundred two companies have been through their business factory within since its inception there were 13 full-time and one part-time employee in that the total gross sales that were generated were 55 million dollars in their payrolls were thirty four million dollars and twenty eighteen business plan competition in which we recognized one winner the rock your world decorative kind create LLC and they were awarded $50,000 in a cash prize in terms of infrastructure and capital investment we did a total of seven tiers agreements with the capital investment of 2.4 million dollars we had four tiers agreements in our North Zone with a capital investment of 1.2 million 1.2 million million and three tiers agreements in our South Zone for 1.15 million dollars and here some of the ones in the north that were done takes Taco Bueno the chicken farm Art Center and Santangelo insurance then in our south so the old central firehouse bed and brew and then still in progress is Skyway Motel our one east Twohig partnership in casa de corps in terms of capital improvements in our industrial park we had warren caterpillar i've received their final inspection on 14 point 85 acres with the total investment of about 12 million dollars the AP transmission Center I was on approximately 52 acres in our industrial parks a total investment of twenty

[0:33:15] million dollars and then it includes five hundred eighty nine thousand and public infrastructure the we were giving it a economic development administration grant of 1.25 million for infrastructure improvements and Phase two of our industrial park and the sentential Planning Commission approved the revised preliminary plan of phase two of the industrial park at a meeting that they had in November there was five hundred and eighty eight thousand eight hundred fifty Phase two for the industrial park for the extension of gateway drive in water we had that included water and sewer extension and construction of a temporary low-water crossing we also kicked out the airport master plan includes $121,000 for land use planning feasibility and infrastructure targeted marketing you get to hear this report often just to highlight some of the things that happen the targeted marketing is done to that Santangelo Chamber of Commerce during the year yuo as well services or is recruited that's 200 employees they have about a thirty five point eight billion dollar annual economic kill Aeon energy which is actually within the egj in the city is a hundred and thirty million in capital investment SMC global eighteen point four million in annual economic guild and then recurrent injury in their energy with a hundred and thirty million dollars in capital investment in your packet there's a lot of rhetoric about the program the target and industries some of the objectives and that sort of thing I won't go into that but I'd be happy to answer any questions that you might have in regard to our 2018 performance the first thing I want to

[0:35:18] say is that it's amazing what can happen when people choose to work together and not create power structures and silos of powers so I thank you for coming in and making sure that everyone gets along works well together and produces the results that need to happen so I think that's a major step forward also obviously this is 2018 so the continual impact of SMC global would not be included in those numbers and I think that they've added two more facilities since this report was done so we continue to see some successes whether it's with them or other companies and some new transportation companies coming into San Angelo but number one most things don't happen unless we have great partnerships and so I continue to say we've got to learn to work together produce great results together and the city benefits so thank you your kind remarks and we do have a great staff with bob nieman Shannon Scott and Nora Navarre Nora Nevarez that are really dedicated to advancing Santangelo and then of course we have great partnerships with the Sentinel chamber Michael Lenny Bruce Partain and Jessica hortal damn acing in regards to that and then our partnerships with workforce development and others so it's our pleasure to be able to serve that and we appreciate the opportunity to serve Santangelo and partnerships I love it you'll have further questions or comments Tommy just to comment I know you didn't have a lot of time got a to talk through this I encourage you all to continue your your laser focus on our bret program if we you know if SBA statistics are accurate which I would tend to think that they are that at a minimum 50% and could be as high as 80% of our new jobs come from existing

[0:37:20] businesses I would encourage y'all to keep your laser focus on helping those that are already here that have already made a contribution but can do even more maybe with just a little help so I appreciate what y'all do guy and keep up the good work Thanks I think and I think you're going to see some when we do our 2019 reports and brother amazing improvements within that program thank you buddy do I have further questions or comments from any other council members with none I don't know that we take a vote on this so it was just a presentation and so thank you for that and keep the partnerships and growth happening thanks guys we will move into item D which is consider ratifying a resolution by Cosa DC authorizing the use of sales and use tax funds in an amount not to exceed 1 million $100,000 to provide an economic to US Customs and Border Protection air and marine operations with participation by the city of San Angelo for a project authorized under chapters 501 and 505 of the local government code for type B Development Corporation's and authorizing the board president to negotiate and execute a Memorandum of Understanding with the city providing for the economic development project terms and mr. Steven you're on good morning mayor council mr. Valenzuela a beautiful day isn't it this project has been on I feel like has been a long time coming or a long time in development but basically it's a business retention and expansion program project so at some point I will be handing the main part of this off to Shannon Scott our prep person but through the construction portion of it I'll be staying involved what we're looking at is about 1.1 million dollars in improvements for Customs and Border

[0:39:22] Patrol air and marine operations which includes a new storage building proposed paving and then also some storm drainage improvements and then one thing that's not shown on this but it'll be on another slide is we're also looking at some pavement replacement in this area just because it is getting a lot of wear and tear this is a little better picture of of what we're planning and again it's the new storage building new pavement area remove them remove and replace an existing drainage along in this area and this is important not only for that it's a main access to the CBP amo hangar but it's also the main access in this direction to the ranger aviation paint hangar so it gets a lot of traffic through that area and broken pavement and gravel and things like that are not very aircraft friendly project details [Music] mobilization and pollution control about 77,000 paving and drainage 800 21,000 pre-engineered building at 45,000 and it's 10% contingency of ninety four thousand five hundred for a total of roughly 1 million thirty nine thousand five hundred eighty five dollars we also looked at what we're calling a deductive option the 1 billion dollars has all of the proposed pavement in concrete which is for longevity purposes is a better option a lot of the pavement is required and the thickness of the pavement is required because of the use of fuel trucks out there to fuel the aircraft and what-have-you particularly the the drone aircraft fuel spills don't mix very well with asphalt paving but we have looked at a an asphalt option as

[0:41:24] well which would reduce the cost to eight hundred fifty eight thousand nine hundred thirty dollars and these are based on engineering estimates we'd like to put the project out to bid and then discuss with the contractor once we've chosen a contractor maybe some value engineering that that may change some of these numbers and maybe we get a little better bang for our buck so to speak this is a an incentive type project so we are looking at 62 direct jobs at about one hundred and twenty thousand dollars a year average which is incredible for our area it would generate an additional thirty nine indirect jobs we've according to our analysis economic annual economic output would be about twenty two billion dollars and this does not even uh include about two and a half million dollars that CBP amo through the federal government has invested in the hangar and the equipment they're putting in out there so you want to explain CBP amo and that is Customs and Border Protection air and marine operations CBP amo you know goes pretty fast no one knows what that is I thought I mentioned it before maybe an end on the direct jobs are any of those existing jobs today as we speak they have about 60 now this is anticipated their growth an additional 62 in additional pilots technicians contract personnel there's 60 we're adding additional 62 and are they indirect jobs the jobs that will be used for the construction and work some of those would be construction jobs some of those will just be spin-off jobs that are a function of the impact on the local economy this has all been walked through and talked through with the master plan that's being worked on so

[0:43:27] that they are in sync that this isn't something on the sidelines that we have incorporated into the master plan that's right okay do I have questions comments you have a comment that's my that's our belief we just like to try to get the price down as low as I can do I have further questions or comments then with that do I have a motion to approve I'm going to have lane with a motion second with Harry and I'm going to ask for public comment with no public comment we'll take a vote all in favor say I wouldn't then opposed motion passes six zero will move into item e first reading and public hearing of an ordinance approving PD one 906 a rezoning from the law low sorry not law low-rise multi-family residential RM one zoning district to the planned development PD zoning district to allow retail sales and service users in offices with type 1 outdoor storage being one point four to five acres located at 3824 Green Meadow Drive John thank you John James Director of Planning and Development Services as you mentioned this is a planned development you can see the location there off of Green Meadow this road up here is the old Kmart site this is largely residential and that's one of the reasons that this comes to you as a PD to help provide some restrictions that ensure that it will not have a negative impact on those that housing across the street but as you can see and maybe on another map it'll show it better but this is largely north of Green Meadow is largely a commercial area so this type of commercial activity we believe is appropriate this is in our future land-use plan as commercial

[0:45:30] however as you can see here it is currently zoned for apartments multifamily and so this would basically change the zoning to the PD but the PD is based on a commercial underlying zone just a few pictures of the area there's the subject property there in the foreground you can see some of the homes and and then apartments back there in the background again the vacant you can see the vacant Kmart site there in the background as well and then here is a better look looking at the homes immediately across the street this is a proposed concept plan for the development you can see that it's an office warehouse largely the outdoorsters the outdoorsters would be very limited most of the storage and activity would be inside the building and again that's to help protect those neighbors across the street both from noise visual impacts those kinds of things from that kind of outdoor storage this is a sample of a project that these folks I don't know if they did this one but it's something that they're what they're intending theirs to look like so again we think across from these homes that is a nice looking facility that would would be there across the street just some reasons for the approval most of these I've mentioned already it is in a largely commercial area the PD will help protect the homes that are across the street they are planning a nice front facade again - just to help make it look nice for the neighborhood we did send out our notifications to the surrounding property owners to in favor and none in opposition staff does recommend approval as did the Planning Commission unanimously at their June meeting with that I'd be happy to answer any questions here's a list of the conditions I won't read through them but basically as I've described throughout their conditions to help ensure

[0:47:34] protection for those neighbors is there anything in a planned development that would be opposed project that residential owners homeowners would have a problem with no again by doing it as a planned development you were approving their proposed concept plan if they came back and decided to do something else you know the base is owning is CG but if they came back to do something that wasn't this sort of office development they would have to come back to you all because the PD is specific to their concept plan that they take a vote we're specifically taking a vote on what this project is correct and that's not just the zoning issue but the project right and that's a difference with a planned development versus normal zoning normally if we were zoning at CG just straight CG then they could go out and do anything that's allowed in the CG district but with the planned development we can restrict it both based on the conditions in the ordinance but also the concept plan that they've proposed do I have further questions from Council then do I have a motion for a motion in a second by Lane any public comment with no public comment we will take a vote all in favor of approving item e say aye all right with none opposed motion passes six zero will now move into item F it's a first reading and public hearing for one an ordinance for cp1 9-0 one an amendment to the city of San Angeles Comprehensive Plan changing certain lands from the neighborhood center future land-use to industrial future land-use being eight point nine eight acres located generally southeast of the intersection of Houston Hart frontage road in Smith Boulevard and to an ordinance for z19 - oh nine a rezoning from general commercial CG to light manufacturing m/l being eight

[0:49:38] point nine eight acres generally southeast of the intersection of Houston Hart Expressway frontage road and Smith Boulevard John thank you as you mentioned in there this is changing the comprehensive plan from compared Center which is a commercial district to industrial and as well as changing the zoning you can see on these maps here this corner was carved out for possible commercial I think given the fact that it's at the freeway and a major roadway that the idea was that could be a commercial location but as you see here everything back around it is playing the plan for industrial so we think expanding that industrial into that area makes sense and likewise we would this would action would change the zoning you can see back here the ethic on-site large site already zoned for the lot manufacturing this would just extend that zoning into these two properties right there the property in question is this property was the applicant and so that's the property with immediate development plans based on discussions with this property owner they were good with including their property as well to make the whole area so we wouldn't have industrial here with a commercial between that and the other industrial just some pictures of the area it is undeveloped currently you can see the freeway there in the background this is looking to the south immediately south of this is storage units again which we think is appropriate for industrial right next to that that creates something of a buffer but then there are apartments across the street and down a little bit so you can see that that's that's one of the things we considered was would this particular type of facility in zoning be a negative impact to those apartments and given the all nature of the area we thought that this was appropriate for that location again I've mentioned many of these the

[0:51:44] applicant does have is expanding their business based on a new contract with h-e-b so they need a lot more space to do their business of making sausage and so this gives them a site where they can do that larger facility we did send out our notifications did not receive any responses in favor or in opposition staff does recommend approval of both the plan amendment and the rezoning the Planning Commission approved both as well unanimously and I'd be happy to answer any questions do I have any Lucy yes John you know when you said you said into six letters on the attachment and said 2018 was that a typo it listed the years 2018 I assume so yeah I guess I haven't seen that yeah I was reading it last night and I saw it was 2018 I thought well surely that was a typo cuz he's out on the notices that sent out the date of the public hearing is 2018 no it said since the sixth notice is mailed and it said 2018 because it act zero in opposition on the staff report yeah but you did since the six notices this year oh absolutely okay that's what I needed to know also another thing that I read it was something about how they might be able to contain a smell that might be produced from this sausage factory like in the surrounding area do you know what y'all are gonna do about that yeah we don't really have to have any kind of stipulations that you'll put or anything that will be required them to do that we don't again as I mentioned in the last case a planned development could poss

[0:53:45] we addressed some of those issues but with straight zoning we're just allowing industrial zoning and anything that would be allowed in there I think they would it would be in their best interest and then they probably have something in place to address things like smells but and then we may I'm not sure we may have something in the city's just overall nuisance ordinance that if if smells are so bad that that could be a nuisance action but in terms of the zoning and what we're talking about today there's no no limitations other than just that whatever would be generally applicable well we know that they exist as a business today and so the question mark is has there been any issues with smell in their existing location because this is not a new business this is an expansion of a business no not not that we've heard of and in fact what you'll see I think in a couple of meetings from now that went to the Planning Commission this week was a similar business in another location and there were some similar questions with that and again they're there that facility has a house right next to it and they had no concerns there I don't have any I mean that's fine I just need to ask these questions because as usual we're always trying to help the local business owners and especially it's a benefit to the city when they're able to expand so I really don't have anything else to come and I I approve the on the notices being mailed can you show on that map the distance of which the notice would have been mailed out and who it would have been involved it's well it's 200 feet and so it's it's all of the properties that are colored and sort of that blue color we just didn't show the the actual boundary but it includes all of those properties nothing across Houston heart correct all right any further questions or comments all right Lucy do you want

[0:55:47] to make a motion I'm I feel approvers presenting the motion in a second do we have any public comment with no public comment we'll take a vote all in favor say aye aye with none opposed motion passes six zero I guess we didn't did we need to take a vote on item F 1 vs. F 2 or we read them together but the question mark is does one vote cover both 1 & 2 okay alright item G first reading and public hearing of an ordinance approving the abandonment and vacation of a 15 foot wide by 200 foot long zero point point zero six eight five acres which is three thousand square feet public alley located south of West Beauregard Avenue north of West Colorado Street between South Tyler Street and south Polk Street thank you again John James Director of Planning and Development Services I'm going to be real quick with this one you saw it a couple of meetings ago we had to make some minor modifications to the actual ordinance language and so we're bringing it back to you with that revised ordinance language but the way we presented it last time has not changed there's no change in the substance of what's being requested there were just some modifications we needed to make to the actual adopting ordinance so again this is in that area of the concho collision you did the rezoning at that same meeting where you looked at this abandonment and so it'd be basically abandoning this alley which is across the street from their main facility notifications were sent out to everyone about the abandonment of the alley and there were no opposition's correct yes and in fact the yes all of the properties that are would be affected by that were notified in fact they're all in agreement in working with

[0:57:50] concho collision the two properties on the front or the I guess that's the north side are actually owned by concho collisional they'll be taking that the other property owners will have the ability to take their half if they choose to or they could transfer that to Contra collision if they don't want to mess with it then concho collision could take that over and so Contra we'll be working that out with with those neighboring property owners this will is recommended by staff as well as recommendation by the Planning Commission with our standard list of comments including replanting the property paying the fee that's established by the fee ordinance as well as retaining an easement because there are some utilities within that existing Ally I have questions from Council and move for approval a second second second bite Tommy public comment with no public comment we'll take a vote all in favor say aye none opposed motion passes 6 0 we will move into item H which is presentation regarding the proposed fiscal year 2020 Convention and Visitor's Bureau budget Diane you're on good morning mayor city council city manager city staff and citizens thank you for allowing me to be here today to present as majority of the the audience here knows the Convention and Visitors Bureau is a division of the commitment of the San Angel Chamber of Commerce and our role is to enhance the quality of life for the citizens of San Angelo through tourism promoting marketing and promotion sorry so to explain how we are funded unlike the Chamber of Commerce which is funded through membership dollars in economic development is funded separately we are fully funded by local hotel tax dollars paid by visitors to San Angelo so 7% is the hotel tax

[0:59:56] rate in San Angelo and 6% is the state rate and it is a designated fund which means it has to be spent a certain way is not allowed to be spent for example on roads that kind of thing so in order to utilize these funds we have to meet two criteria criteria number one is first to every expenditure must directly enhance and promote tourism and the convention and hotel industry and then second every expenditure of the hotel occupancy tax must clearly fit into one of nine statutorily provided categories for expenditure of local hotel occupancy tax revenues so our proposed budget request for 2020 and I do want to share that we do have a 20 member CBB advisory board and they did vote to approve the proposed budget the current budget is a three year contract or was it a three year contract and it extended a year is 865,000 per year and there has been no increase since 2016 and the proposed budget for 2020 is 1 million twelve thousand six hundred thirty five five percent of that would be applied to operating expenses and included in that our potential 3 percent raise for staff which is not guaranteed and then the rest of that is for the rent of our facility which has gone up a touch and then also for our storage unit and I don't believe there's much more in that as far as operating expenses and then 95 percent would be applied to marketing and advertising which is what our role is to do I wanted to give you some occupancy an ad our average daily rate comparison sorry from 2016 to currently or 2019 that we have and so if you look at that this is based on 33 properties and 2800 and 15 rooms this is from the Smith travel report which is done by the

[1:01:58] Texas tourism office under the governor's office you will see that occupancy has continued to rise over the past four years as well as a DRA DRA average daily rate is is up it's it's goes down and up throughout this year for 2019 but it's pretty much maintaining the same rate as far as CVB sales and servicing activity based on booking our booking history requesting additional funds in convention servicing and visitors and travel marketing which includes familiarization and sight tours for servicing for and servicing for groups so in 2017 we had 82 definite groups and meetings in San Angelo we had 78 in 2018 and 86 in 2019 and please know these are bookings that we were directly involved with so that doesn't include some things that may have happened in our community that we did not have direct impact on our social media efforts this is something that we had not been doing a substantial amount of in 2017 when I arrived so I wanted to share this that we had a 50 we've had a 58% increase in our users since 2017 our Facebook Twitter Instagram all have seen in definite impacts a 52% increase in our viewers since 2018 and no presidents prior to 2017 on YouTube and we've also got a presence on LinkedIn and also on Pinterest in print and digital marketing we're looking to increase frequency in 2020 in targeted publications including but they are not limited to true West magazine Texas Music magazine and Buster publications so we we were in 30 print publications in six stores and websites in 2017 34 in a print and seven tourism sites in 2018 and currently 26 print publications in 8 tourism websites in

[1:04:02] 2019 as far as public relations is concerned we're seeking to focus greater outreach on travel media film and music industry we recently received our Texas music friendly designation we also received our film friendly designation and we're working closely with tribal media from bloggers to influencers to writers so we had 30 stories produced in print or online from CVB marketing efforts between 2016 and 2018 to shares shows aired on Texas country reporter in 2018 that should say in 2018 my apologies and then we've provided assistance for TV show shot in San Angelo to air on oxygen network Animal Planet and The Cooking Channel and we are also working with other film organizations through the Texas Film Office to see if we can find locations for feature films meeting and consumer tray looking to increase presence in targeted markets in 2020 also requires an increase in promotional items and conventional convention and travel trade so we were represented in seven trade shows in 2017 17 and 20 18 and 19 in 2019 so that requires staff to go they overnight they do sometimes entertain their clients when they're out to make sure that we are having direct face-to-face meetings with those folks and then fulfilment looking to increase quantity of rack cards and produce a more detailed trifold brochure for 2020 that would be more included in our local welcome bags to have a little more detail of what there is to see and do in cindy angelo the RAC card currently goes to locations all over Texas also in Louisiana and Arkansas and Oklahoma and those go into hotels those go into attractions that you might see those racked cards when you walk into those places so in 2017 we distributed 30,000 brochures in 2018 130,000 and I right now we have distributed almost 140 6500 and we've now printed another 10,000 write brochures because we are still producing and making those disappear so

[1:06:07] major accomplishments to date the Texas music from the music friendly designation we just received that from the Texas Music Office which is under the governor's office we were ranked number two and true West magazine's top ten Western towns in the US and 2019 the San Angelo Visitors Center in San Angelo State Park were named Best Buy best of by American bus Association this year the Texas film friendly designation which we acquired in 2018 discover San Angelo com was named judges Choice best website at the TAC B CV B which is the Texas Association of Commission and Visitors bureaus annual conference in 2018 seven stores were named best of in Texas on shop across Texas comm one was named best of the best in 2018 and we do marketing with shop across Texas our sales manager amy roberts was named desk and eric rookie of the year in 2018 and i served on both the Texas Association of Convention and Visitor's Bureau board of directors and the Texas Travel Industry Association Board of Directors so representing staying in that light so that is my presentation and I will be happy to answer any questions Diane are y'all strictly funded by hot tax or do y'all have any other revenue streams directly funded by hot tax Lucie no ma'am Harry yes Diane you talked about the nine areas by state statute that allows hot funds to be used you want to expand on that a little bit sorry be happy to say watching can can't understand sure well the the first criteria is every expenditure must do directly enhance and promote tourism and convention and hotel industry so if we are seeking out or anyone is utilizing those funds the hotel piece has to be a part of that in the convention center so and/or the Convention Center as far as criteria for number two this is pretty detailed so I do have this for you so I'll share it with you the first criteria is the Convention and visitor centers so we are in a visitor center this is a our

[1:08:11] convention center but more than 50% of the bookings at a convention center must directly promote tourism and the hotel and convention industry so I want to show that with you number two is convention registration so this is cost of materials for registration for guests so we might have to occasionally pay someone to actually work a registration booth for a group or for nametags welcome bags notepads pens those kinds of things that we provide at registration as far as the advertising number three is advertising the city so ads promotion online print billboards that could be a number of different things promotion of the arts arts also must promote tourism and the convention in hotel industry and no more than 15% of the annual tax dollars can be utilized or used for that historic resident restoration and preservation I can tell you that 50% max on the historical preservation for cities under 125 thousand can be applied but only if they are not funding a convention center so that that kind of negates some of that that piece because we are funding but the with the this council has funded the Convention Center number six sporting events in cities less than a million in population so promotional expenses related to a sporting event that substantially increases economic activity can be utilized for example we hosted the NJCAA region 5 national or regional region 5 baseball tournament recently at ASU we've hosted you triple si but the majority of those teams must be hotel guests and visitors to San Angelo number 7 enhancing or upgrading of existing sports facilities currently this this does not apply to st. Angelo if it did any funding to facilities would have to show matching hotel revenue based on improvements so if you spent four hundred thousand dollars this is the example they give in the law four hundred thousand dollars on improvement

[1:10:13] at Texas Bates Texas State Sports Complex you would have to show that a four hundred thousand dollars in hotel tax dollars were matched in that if not you have to return whatever that funding is that was not matched number eight tourist transportation systems to transport visitors from hotels to the visitor or to the city center Convention Center other hotels and attractions this does not allow for transportation of the general public so for example our Convention Center we may have people here that are staying at our hotels that are not adjacent to the property and so we occasionally will offer transportation to get those folks to and from or if they have an off-site event that is not at the hotel we will pay to do that so we have we have done that as an incentive a visitor infinitive an incentive and then finally directional signage funding for directional signs and promotional signage is allowed by this law and I do want to also add there are 3,300 tourism travel and tourism jobs in st. Angelo for in our industry here and if not for visitor spending five hundred and forty six dollars would have to be paid by every household in taxes every year so the more visitors we have the more more overnights we have the better off our citizens are as far as their taxes question Tommy I think I know the answer this but you're the expert not not I how do you measure the return on investment is it merely the an increase in in the the tax itself or in your industry how would you measure on this request an increase how would you measure the return on that investment well I will tell you that because we are a marketing industry it's the investment in our future primarily that is that is how we if we're not telling the story if you're not getting the word out you're not going to see people come in and so we do look at those tax dollars pure and

[1:12:16] simply as we go in and we do have a database that provides a calculation in order to see what those dollars look like per group as they come in I have a couple questions one is we are not hiring any more staff right no ma'am and number two the 3% raises not guaranteed that's correct so that doesn't necessarily happen that's correct and then number three my question is I know currently that there are some hotels that are receiving a lot of good business because of the oil and gas industry obviously with sales tax dollars tightening up and people such as Midland Odessa Abilene and San Angela are not getting the increases that we had in the previous years the question mark is the following by approving a hundred and forty seven thousand dollars which I think this is increase we need to be cognizant of if in fact the hotel industry starts to tight starts to tighten up because your hotel rooms are being occupied by the oil and gas industry employees we might not see the increase in 2018 or 2019 2020 that we've currently seen and so how do we work with you to ensure that if we approved the additional increase requested and the hot dollars don't meet the plan how do we work with you to ensure that we don't negatively impact the city I think what I would say the difference between us and Midland Odessa especially is we are very much a much more diverse market we do have the corporate and government groups that come in through Goodfellow through the city through what we do with economic development and we we work try to work

[1:14:17] closely with them so there are other entities that come in and stay in our hotels rather than just that we will and gas and so I think we have a much better broader audience as far as our hotel tax dollars are concerned and I would also add that we work in our sales team to look at various niches that can fit the need that we are looking for so for example Susana is focusing highly on the group tour market and also the international travelers which we have not done in the past Amy is working on more on that government and corporate group so she does she in fact she's stolen quite a bit of business out of Midland that comes here because of oil and gas and that so some of that is coming here but I don't think we're primarily dependent on that I think we have again a much more diverse piece and the other thing I would also urge the audience to also understand is when we say tourism a lot of people just think visitors on a weekend and vacationers but our industry is is travel and tourism so when you think of people coming in on a Sunday through the 3rd through Thursday at our airport those are business travelers so business is conducted in our community and so a lot of that concern and I and I do understand it I believe we can overcome a lot of that just simply because of the diversity of our market what happens tell me what we happens Tina Michael Dane if in fact the because when we approve a dollar increase and the dollars don't happen in the jet in that find how do we approach this oh and Tina dear ski director of finance good morning council mr. Valenzuela mayor so that's part of the reason why we try to keep a fund balance in that fund in the event that we do have a difficult year with hotel committee tax because it is a volatile revenue source we do try to keep a fund balance in that fund for in the event that we do need to dip into it in a particular year and that being said

[1:16:19] of course your finance department is always monitoring the budgets for both revenue and expenditures and if we the first sign that we see of any alarm we would of course bring that to the city manager and then to you is the City Council to make any decisions that we might need to make going forward for that particular fiscal year okay thank you yes okay your question is good overall management of the occupancy tax in total good questions and Tina we'll cover that in the next agenda item that'll be an opportunity to further consider what I think is your thought process now how do we manage that overall on this particular item this appears to be approximately a 17% increase and so I think the question would be what if anything will we see different from the CVB as a result of this increase this proposed increase well one of the things I would say is frequency in our marketing because currently we have certain areas that we are not doing a lot of targeted marketing on because we just simply don't have the funds for example in a magazine like Texas highways they have a 2.5 million pageviews per year in that in that online and we don't have a total of five banner ads we would increase of course those banner ads so we can increase that frequency as well as in the magazine which has a hundred eighty thousand monthly subscribers we run six ads currently with which we get a great discount on but we would want to increase that readership so that again more eyeballs are on what we do and and more about Santa Angelo ride Texas and ride Texas calm that's a new niche market that we're looking at just because visit Big Bend we see a lot of travelers specifically on motorcycles going on i-10 and i-20 but they haven't gone down the middle and that's one of the things we're working with right Texas to include us on that map so that we can

[1:18:22] capture some of that market and these are not just motorcycle enthusiasts but that's a good significant number of them but that's a new market that we believe we can strongly attract the visit the Big Bend visitor just simply because we have a similar nature based tourism product that could be beneficial and they would enjoy it while they're here we have other things like true West magazine currently we've only done I think two print ads and three digital this past year we would love to increase that based on our new true West designation that is a way to get more information out to them and then because we have our new music friendly designation we really want to hit the markets like Texas music magazine to get that information out to promote the Arts in our community because we do believe the Performing Arts the visual arts are very strong and particularly for that magazine it's the performing arts and so we want to encourage people to come to San Angelo and come to our facilities for concerts for whatever that might look like in the music business and and then in turn I say this often and I got to take it from my colleague Maura gas with Irving Convention and Visitors Bureau and st. Angelo native it all starts with a visit if we're not getting our name out there businesses are not seeing our name either and so we are basically the marketing arm for the city of San Angelo as far as visitor spending is concerned and so we want to continue to raise that awareness because that is important in getting the information out that says we have a great quality of life for businesses who might want to move here and then let me ask one more question if for example we say that we would approve the request for one hundred forty seven thousand can would that be done as a one-time increase and not a solid number as an ongoing number next in the next I'm asking them to yeah it would just be for a one-year period yes

[1:20:26] instead established and it is the new base that's what I'm asking so the agreement that the city has with the CVB currently expires on 1231 of this year and that is when the new contract amount would begin and so if council wanted to direct that then that would be included in that contract that we were new on January 1 of 2020 and then I guess that contract will just be limited to a one-year term if that's how you wanted to direct very nervous about the impact on hotels right now and slowing economy so I want to be make I want to make sure that we don't get ourselves in trouble financially my comments are not relative to how much I support CVB I think they're doing a great you all doing a great job in and I think the city benefits from it but in a big-picture world I want to make sure I protect the city and make sure that we don't sign up for a contract that is does not have flexibility and does not reflect a trend line in the hotel occupancy numbers and a benefit of what you're saying this will merit if you do it on a one-year basis so you can actually take a look at what the impact really was because it's really a difficult question that I had for Dan diana is what is your projection for hotel stays and tourism activity and actually if you do this over a year you have an actual indication of what the impact was because the question would be for every dollar of marketing that is spent what is it return and Tommy talked about that a little bit while ago but a lot of times we don't know that impact we don't know what the oil and gas market is going to do it's going to level off or drop off so all that impacts tourism as well as far as the hotel stays but am i and that's something that if anything there if you do that over a year it gives you a better indication during the year of what that impact was so the following year you all may say hey this was wonderful this too that another hundred forty seven thousand or let's do a little bit more you know so I agree with that unless I know Diane it's probably unfair to say what is your projection for how many more hotel stays will happen what have you but I think doing it this way it'll give us a better indication I also would request that as it relates to

[1:22:29] raises that it stay in line with whatever we make a decision to the city so if the city gives a maximum 2% for the budget that that would be in line with what you do yes may we follow what the city so just very clear on that so everybody is treated fairly correct those are my questions do I have further questions or comments Tom I see a head holding also okay you're just looking for better tools more tools it's key to getting people in here I think the energy the energy industry subsidizes a lot of what we do we're gonna say it will never be affected as fact it directly say Midland Odessa is and will never see the up ticks or the down ticks they do but I get what you're doing down and I'm going back to Tina I think we'll discuss this I think the fund budget of the excess balance or what we need to cover your 70% is there I'm I'm all for going and doing what you're asking to do here I think it's very important you got a hundred percent support out of us and at the rodeo we think you've done a wonderful job I see the mayor's point I just hope we're fertile enough on the fringe of it that doesn't become a problem but we're good to go just need the flexibility we understand that we're the stewards of the public funds and so we want to make sure that we are spending them in the way that this council wants us to spend them Lane you wanted to make a comment I don't know this whole discussion that we've been having I know consistency is what we've been trying to do in setting a set budget would like just like everything else every other department but I think this is the the downfall of our discussion of not going to a percentage basis we're always having to monitoring how much at what level are we using that instead of fluctuating I think that's the only downfall for this is if you have a percentage based you know exactly what level that is with what amount is coming in or not yeah yeah okay further comments from Council do I have a motion from Council that

[1:24:35] might be included it was oh well you're done thank you very much Tina you're on let's see let me read it first I guess discussion and direction regarding hotel occupancy tax budget allocations for fiscal year 2028 good morning again Tina dear Ski Director of Finance so this item is to kind of have a discussion about the hotel occupancy tax how it's performing and what our allocations will be for the budget for next year so this first slide is just giving you a picture of how the the tax has performed over the last several years and to show the fluctuations and volatility that are involved with the hotel occupancy tax we are projecting if we protect flat for 2019 that meaning that the last three months of the fiscal year remain exactly as they were last year we would project an ending revenue source of 2.8 million dollars for 2019 this slide is just showing you how the fund is performing in the current year and I'll just give you a minute to look at that we have the FY 19 budget compared with the jr. of the date numbers and you can see that revenue is performing very well expenditures are a little higher than the 75% that is of course based on the percentage that goes to civic events in sac at our 10 angel culture affairs council because those are a percentage base of course if the tax revenues higher than those expenditures going out are also going to be a little higher have any questions on this slide ok and this is showing the actual revenues and expenditures that came into the fund and went out of the fund for fiscal years 2015 through 2018 so this is the reason that the title says civic events slash hot fund is because in fiscal years 15 16 and 17 we still had civic events combined into the same fund with hotel occupancy tax pardon me mid-year and 2018 we actually moved so hot out of the civic events

[1:26:40] fund into his own fund so that we could more closely monitor that revenue source being that it is restricted and so for 15 16 and 17 they were still combined but mid year on 18 we actually moved to hot out into its own separate fund so with this light and we're just trying to show that for one thing that the operating expenditure target target for civic events has remained relatively stable from tissa years 15 to 18 that's because city staff sets the expenditure target for that fund and so while there may have been extra revenue coming into the fund because of the percentage-based amount their expenditure target was required to remain relatively stable there were some slight fluctuations for things like personnel increases or decreases that kind of thing but as far as what they're allowed to spend on their operating budget that remained relatively stable over those four years we dig down into the numbers meaning the following that when we establish the dollar amounts are we looking at percent of occupancy and average hotel rates or are we just simply looking at last year was this we've been on a trend line of X percent increase so based off of that percent increase we add that to last year's number and that's our new number or how do we dig down deep into these numbers to make sure that we have a relatively reliable number on the revenue side their revenue is mostly hotel occupancy tax of course and so that's just based strictly on the forty eight percent of whatever we budget for hotel occupancy tax we have for the most part trying to remain very conservative with budgeting for hota occupancy tax revenue because like I said it is volatile we want to make sure that we're able to meet the obligations that we have set for that fund and so as far as the expenditure targets those are set just like any other city department or what you had last year is what you get left get this year as far as your total expenditure target for your entire fund that being said we do have forms that are called target increased requests and so if a department does need to increase

[1:28:42] that expenditure target they are able to ask city manager and then City Council to increase their budget if there's a legitimate need for to do so are we looking at civic events or are we looking at the hot text fund this is civic this is why it's a little confusing because like I said in 2018 we moved it and separated it out so for those first three years that was the Civic events fund where all of the hotel occupancy tax came into that fund and then went back out to other stakeholders while the remainder women remained in that fund to operate civic events because of that confusion and the inability to closely monitor the hotel occupancy taxes why we made the decision in 2018 to separate them so that it's more clearly stated in your you know your Blue Book and your financial statements what's hotel occupancy tax versus what Civic events so how do we look at apples to apples in 2018 compared I'm not sure I understand your question sorry meaning if they were combined in 2015 through 2018 and we separated them in 2018 where's my Apple to Apple we didn't for FY 18 we did pull out the other stakeholders you can see there that there's obviously not enough expenditures going out do you have funded those other stakeholders so we did separate that out in 2018 from what the actuals were so this is an apples to apples comparison okay so and then the other thing I wanted to mention with this slide is that there was there was a contribution to the fund balance in each of those years again just showing that even though they may have had more revenue coming into the fund they were not allowed to spend it unless they went to City Council for authorization and so on this next slide I have some examples of how that happened so let me go back to this first slide so you see in 2015 for example they had a contribution of fund balance of six hundred fourteen thousand dollars because that was a good

[1:30:44] year for hot or hotel occupancy tax and then because of that they were able to come to City Council and asked to do some additional projects and so they came to City Council and asked to do projects in the amount of four hundred fifty eight thousand dollars which were approved and then still leaving an additional contribution to fund balance of a hundred just over $150,000 and so this slide is kind of showing you where while there may have been additional revenues coming into the fund they still were not allowed to access those revenues unless the City Council or I'll cauterize those expenditures any questions on this life and do we have an ongoing hot list if you will of projects that are needed for facilities because obviously our ability to attract tourism and and hotel occupancy is based off of the quality of our assets or our facilities yes ma'am I feel we're called a few council meetings ago we did bring to you some ideas the only two that we currently have in our capital improvement plan right now we're for Fort Concho and for the river stage and so we brought those two concepts to you we have city staff and those departments and divisions working on those ideas and we will be bringing those back to you in the near future finishing up some of those prior ones you know recently we've just brought back to because they completed a slate of projects and they didn't use all the money so council authorized them to go ahead and use the remainder of those dollars for a few other things currently the staff is working with our architect on the new plan of lists of items that will be coming to you they're working on some I think y'all are aware of at the river stage we've got some bathroom issues there need to be upgraded and just maintained so you'll be getting that list in the near future continue okay now we're switching gears a little bit this is strictly the civic events fund and what we're proposing for their budget for next year for fiscal year 2020 so we worked with the Department and director and the division manager

[1:32:48] and kind of sat down with them and saw where they might be able to increase their own venue revenue their own advertising revenue and then to see how much left they might need additionally to do some work and continue some maintenance and projects at the Civic or within the civic events fund excuse me so what we're currently requesting for from hotel occupancy tax for the Civic events fund is a million eight thousand fifty dollars the current year budget for that is a million seventy six thousand dollars so that is a slight decrease to what they're requesting from the hotel occupancy tax and of course from the current year budget yes it was a million seventy-six so the amount needed from hotel occupancy tax is actually less this year because they've also offset that a little bit by increasing their own venue revenue budgets by about $65,000 and so with that even though they're decreasing their amount requested from hotel occupancy tax they are still going to be able to try to set aside down here the restricted facility use fee and so that's a concept that we've discussed with them of course they do have a ticket fee on each of their tickets and an idea that we've kind of our a concept that we've discussed with them it's just to try to set aside that facility use fee and designate it so that it is only available for use on maintenance and projects within the needs that they have in the fund so the hot tax money that we're requesting that is based off of a base amount or as a percentage it's a flat amount we sat down with them they added about I think $40,000 to their budget and in certain venues just for maintenance because it has no additional personnel no no there's no additional personnel included here although they have a request in for one more staff member due to increased volume of our increased activity that they're seeing yes but the increase just to rehearse

[1:34:52] some numbers is that in past years they've done a lot more than the planned plan is right now with fewer people so if we're I think generally speaking Danielle we are not looking at adding an additional personnel to the city of San Angelo staff at this point there have been some requests man we'll discuss that when we get to the budget part of it so I mean to the the general market options corrects and also contain this coming in the month as well so we'll have that discussion but at this point that is something that City Council will decide as well in general this does not include it and the way we see it is any of those requests would go just like any other department requests would go in with the budget workshop discussions we're not looking to increase the payroll of the city of San Angelo and additional staff yes what would you like to ask they have over revenue for their venue can they put that towards their facilities so that's another concept that we discussed and I think that they could either designate the restricted facility use feet that's on each ticket and that's the hundred and thirty three thousand dollars or they might be able to retain the the revenue over expenditure in the venue's but I don't we could do both but of course it would require a much larger contribution of hotel occupancy tax revenue to the fund in order to be able to set aside both of those amounts sorry say that again if they go over revenue of six hundred thousand you would increase hot also that what you just said sorry no that's okay I thought you were asking a different question I thought you're asking about what revenue over expenditure in the venue's no just the just the venue itself for revenue if they go over there six hundred thousand okay can they apply that to get to keep that and can apply that towards their facilities any revenue over expenditure in that fund no matter where it comes from well go to the fund balance in the Civic events fund then it can only be accessed by action of council that's

[1:36:54] what's happened in years past you could see that brought in additional revenue so that just offset and you use less hot money it helps to supplement their operations basically and so there's less hot money that's needed for their actual operating budget there any other that we decrease their hot fund because they do better what other what other departments do we do that in well we go ahead we did it a few years back with the CVB contract it was on a percentage basis in the last year that it was on a percentage basis that exceeded a million dollars and hot tax was on its way up and we were seeking not to just dole those dollars out but to control the growth and those expenditures and so we did that with the CVB then and I believe the contract was a little over eight hundred and thousand or eight hundred originally started at $795,000 when we that first year went from over a million dollars based on a percentage to 795,000 what we really got to do is make sure that we are keeping money's a significant dollar amount to improve our facilities because no one can have success without these facilities being improved and once we give it out it's pretty hard to pull it back so we need to make sure that we're protecting the facilities by forcing dollars into facility improvement don't understand why we would I guess penalized by taking the way hot funds if we have a set amount for every other department they have a set amount for hot funds of million eight and if they go over fifty thousand on the six hundred thousand why would we decrease fifty thousand off that million you could take the if they bring in additional revenue then what is actually budgeted it council could say if you bring in additional over that you have hot dollars coming into this amount

[1:38:57] you have revenue budgeted it X if you bring in more that could go into your balance that is for for maintenance it designated specifically for Civic events if you don't do that then it reverts back to the hot fund which at the end of the day you still have control over that we've brought projects to you in the past saying we've got five hundred thousand dollars worth of projects can you allocate some of those additional hot dollars to do that so you will still have that authority whichever way going likes it yeah I mean it's all based off of facility needs I wouldn't want to disagree if we decrease the hot funds just because they well I think I hear something that may be a misunderstanding councilman if they bring in for example six hundred and fifty thousand instead of the six hundred thousand in venue and advertising revenue the budget is still set for the hot revenue and the still the 100 805 all will be transferred over into civic events in this year the possibility of reducing it would would only that would only change if council changed it either in a budget amendment during the year or in a subsequent years new budget so if they bring in 650 next year there I'm gonna get 50 less in occupancy tax does that does that make sense why would because if I look at history on this back in fiscal year 2017 in venue dollars they actually brought in 659 thousand dollars so we're not even back even though our hotel tax has gone up consistently since then our venue dollars have not gone back and matched the height of venue dollars which was six hundred and fifty nine thousand sixty four in fiscal year 2017 what I just want to prevent is say that well this department is actually using less hot funds but they still didn't even have the needs of the facilities so let's decrease that give it to this and then it's just a never-ending fight of

[1:40:59] so here we are we're still planning it at six hundred thousand right and and that's sometimes just a half an hour I'm just talking about just revenue advertise because if you look at it and you say did did the venue's or did we spend the is the let me clarify that question the six hundred eighty four thousand nine hundred fifty one was that income from renting out the venues or was that advertising dollars to try to get the venue's rented this number yeah so that is mostly venue revenue I think about twenty five thousand is advertising in that number so why don't we separate those anyway because they ought to be advertising is from McLoughlin from the advertising contract yeah wherever it comes from but the point is the following it's two separate line items and if you're going to look at the budget it's two separate line items then use one line item advertising as a separate line or item and you have it so it's just so I go back and I say okay so the question mark is we are consistently although we're moving the dollar amount up on venues for this year sixty five thousand right we're even at that it's six hundred thousand dollars on fifty thousand and venniese and fifteen thousand and advertising so that's total venue revenue but yes 65,000 total okay so I go back again hot tax dollars have continued to increase over those years twenty seventeen to eighteen to nineteen right actually in 2017 they were really strong but in 2018 they went they sorry I'm gone they're haa contraction go back to that slide there we go so 2017 was that strong number that you mentioned earlier the 659 with 25,000 of that being in advertising but then in 2018 dropped

[1:43:03] back down to five hundred sixty-six thousand dollars right now we're projecting for 2019 given what we have on the books and what we're expecting at least in working with the Department a ballpark of about between 585 around 585 for FY 19 so if it's 585 and we're planning in the budget at 600 it's only a fifteen thousand dollar increase not sixty five thousand from the current year budget not the actual actual I want actuals because we actuals are actuals they're not budgeted so we're gonna project only six hundred thousand and so it's only a fifteen thousand dollar increase sixty five thousand from her from what we are projecting for FY 19 I know yes ma'am budgets here right yes yeah but it doesn't mean anything if we're exceeding it okay with this if I like what Rick said as long as it goes back to facilities and it won't be specifically designated for facilities you all have control over that though to make it specific facilities facility use if you want which is what Layne is saying he wants to do because of that unrestricted nature of that part of it if we have a downward trend in occupancy tax revenue and need to decrease that line for a year or two that money would also be available for that so it the stability it provides stability for operating issues and it provides a resource for capital type issues when that money Falls the fund balance and once it's in fund balance again Council has to authorize this expenditure and here's the deal we know on an ongoing basis our facilities are going to need more and more maintenance and dollars will continue to increase so we've got to make sure that we understand the overall idea here is to ensure that we rent out and utilize the facilities because we're only as good as people want to use our facilities I mean that's what it's about and so the challenge has to be there if we're at five hundred and eighty five

[1:45:07] thousand this year that's not much of a challenge to get to six hundred in my opinion this is something that Sid and Rick and I have been working on for a little over two years to try to get an incentive to rent the facilities and utilize those dollars then to put back into facilities so that we can we can continue to do that I understand the $15,000 is not much of a stretch but if you look at the last two years we didn't get to that spot so anything that's over the six hundred thousand dollars it's actually going to come back into their fund balance and be an incentive for them anyway so as long as we're not increase in the hot dollars I think it is in a way that that Sid and the Civic advance board can look at let's let's look at how we can we can increase this whether it's concessions facility use fees merchandise sales whatever that is in order to make that fund balance larger thing that I wanted to do is what Lane's been talking about is make sure that they come back before the council so that we've got that opportunity to help them spend it in the right way I think we're headed in the right direction and I certainly think this is this has been vetted often enough and long enough that I think this is a good way to go so obviously it's called the hot tax Fund which is hotel occupancy so how are we tracking haut occupancy here how are we tracking yeah Civic events how are we tracking haut occupants seeing how many heads and beds were making hassey vb coordinates with us for that effort as far as usually about this building are you talking about why I'm talking about his hotel rooms the booking of hotel right can't answer that question are you talking about overall occupancy tax revenue is that correct

[1:47:10] I'm talking about a hotel rooms because this is hot tax money which is Haute heads and beds a whole philosophy behind high tax money is heads and beds I mean that's the philosophy is this money is created by the number of people we put into a hotel room and I want to make sure that when we ask for funds whoever we are and whatever we do that we're sure that everyone understands the overall purpose here because that's the way the hot fund dollars are created is we put heads in beds hotel rooms as I understand it all of these facilities basically are assisted in funding by this whether it's the river stage the conventions that are the Coliseum any of those and so those are all eligible sources if we in this case we rely on the CBB to assist in bringing in events and functions and all of those things so recently for this facility as you all know we started tracking that as I understand it Carl is coordinated with the CBB on a formula on how to do that we ask as we get in information and they've started that tracking process then I'm not sure house to answer your question I can't give you totals so we don't actually physically track let say if we have a band come to town do we know how much of it's from local so there's very few hotel rooms we certainly know when the stocks show comes to town the hotels are oversold and so we know the impact there do that through sub wire you can really track at least the zip code now that doesn't guarantee you that the people that are purchasing the tickets are going to stay in the hotel room but I think that's a good indicator that those things are at that are out there so if you've got a zip code from Dallas for example that's coming in here that buying tickets for a music video more than likely they're gonna be in a hotel room but dance your

[1:49:13] question mayor I'm not sure that you can physically track that unless the individual writes that in when they're when they're registering at the don't totally do it that's what we've started doing is that when people rent the facilities we started asking that so that is what I was telling that are trying to explain a minute ago so that process has started so they'll have that data as we go about having a mentality and all I'm trying to establish is the fact that we're fully aware of what we want to try to accomplish and that is to make our hotel successful by having high occupancy because we all win with that won't necessarily track that for if we have a rental at the river stage and they're having a concert then I have no way of tracking how many of those people came from out of town and stayed in a hotel or not so I'm only tracking it for events where the mayor comes and she's having a family reunion and she tells me what data she knows concerning those attending yeah and the zip codes don't totally work because we have a lot of good fellow people who have credit cards and zip codes from other areas so it's a good starting point and it's a good way to look at it there's nothing 100% I just want to make sure we all understand what hot funds is about we're not losing side it's hotels heads and beds that's how we do well when we get people in our hotel rooms and our success creating these funds is based off of that all right so we've discussed are we needing to take a vote on this or just give you directions so what we're saying based off of lanes comments and Harry's comments is is that anything over and above the 600,000 would end up going back to for council to review for facilities maintenance or improvements new over expenditure within the civic events or the hot fund would fall to fund balance mes require City Council

[1:51:16] authorization to spent okay so here this is my second to last slide so we're getting close to the end here current and proposed hot fund distribution the current there of course is the 2.2 million dollars so we have in the current year budget requested amount of 2.3 million dollars and then proposed because we didn't know if there was going to be an increase for the Convention and Visitors Bureau we just left it at the current amount but we would seek your direction and well you would want us to increase that amount as well and what they're requesting and so to show you how that looks for a budget for next year this is again without the increase to the SIP to the CBB but if you did want to increase to the requested amount we would be really close to being able to absorb that within the one hundred twenty six thousand dollars that's revenue over expenditure because of course it's prorated for three quarters of the year so you're asking if we are telling you to go ahead and accept the increase on a one-year basis for the CVB yes ma'am as we would bring that back in the proposed budget for next year and as well we would bring back the contract with that amount so I see heads nodding we're not taking a vote from what I understand but we're giving you the direction so the direction is to add the CVB funds for a one-year only the presentational and hot tax with the excess revenue going to maintenance and venue upkeep and then 1 million eight thousand for civic events and a flat fee yes what yes I see everyone agreeing right okay all right that's what I need for that one thank you so much item J first public hearing an introduction of an ordinance amending the budget for the fiscal year beginning October 1 2018 and ending September 30th 2019 for reimbursed expenses and grants okay so this we have two requests here one is for the police department they

[1:53:20] have the Edward Burns Memorial Justice assistant grant and they're planning to use that to purchase thermal-imaging scopes and the amount of twenty-two thousand dollars and we have one more for the fire department the fire department was recently deployed to California and so this is a return of funds from the TIFF stmas program and so they have been reimbursed in the total amount of salaries that were expended for that as well as about ten thousand dollars more for the use of equipment and so they're wanting to budget for both the revenue and expense associated with that do you need a vote on this yes ma'am do I have leh are you making them in a second I think Lucy beat you to it so you'll get the next one all right any public comment no public comment will take a vote all in favor say aye with nine opposed motion passes six zero the last item is item K which is an update on sales tax revenue performance and Tina your on okay so sales tax for the month of July was at five point three six percent and we are over budget for revenue for the year and the amount of 1.2 million dollars it's good it's the percent increase is continuing to narrow but it does give us an additional million to to put towards the our street repairs that's great thank you then just quickly your sales tax by industry this is for June of course you know this lags a month behind but just to give you a picture of what that looked like for June very good see we need that hotel number go back sorry to bring up hotels again but look how tiny the hotel number is does that mean we need a whole lot we need a lot more hotel numbers no that's just a sales tax that would be good always good thank you yes ma'am thank you all right we will now close the regular agenda of this yes so what we're gonna do is there

[1:55:27] will be no closed sessions so we are going to move on to item 9 which is follow-up and administrative issues so there was nothing there was no closed session so nothing needed to be discussed there item B is consideration of approving various board nominations for the tears board Jason Fernandez for SMD 3 - a second term in in July 2021 Tony hunter SMD 5 - a first full term ending July 2021 and Tom Mauer SMD 6 - a first full term ending July 2021 do I have a motion I'm going to give the motion to Harry the second - Lane together - Tommy I promise Tom gets it alright with that we'll take any public comment no public comment we will take a vote all in favor say aye motion passes 6 0 and are there any announcements or consideration for future agenda items from anyone on council yes yes Harry I know I see Shane back there and he's probably going to hate me for this but I'd like to get an update of where we are on the potholes because that burns that my phone up almost every day about where we are and I know that they struggle because of material and sometimes the rain but I'd like to get an update and it doesn't have to be next council meeting but sometime in the next next chain yummy give him the update there's still more to be done Shane our good friends with that do I have a motion for adjournment any opposed to that we want Tom Thompson to get on his way to vacation so we're going to end it motion passes 60 all right

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