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[00:00:04]

GOOD AFTERNOON.

TODAY IS TUESDAY, AUGUST THE FIRST YEAR, 2023.

IT IS FOUR O'CLOCK IN THE AFTERNOON.

WE'RE IN COUNCIL CHAMBERS AT 2 22 NORTH TENNESSEE STREET, IN THE GREAT CITY OF MCKINNEY.

[PUBLIC COMMENTS ON AGENDA ITEMS]

FIRST ORDER OF BUSINESS IS PUBLIC.

COMMENTS ON AGENDA ITEMS? I DO NOT SHOW ANYBODY.

HAS SIGNED UP TO SPEAK ONE PERSON.

YES, I DO HAVE ONE.

I'M SORRY.

MATT HANLIN, WHEN YOU COME UP, YOU'LL STATE YOUR NAME AND ADDRESS FOR THE RECORD.

YOU HAVE THREE MINUTES, I THINK YOU MAY KNOW THE DRILL.

HELLO? HELLO, CITY COUNCIL, UH, MAYOR FULLER.

I'M MATT HANLIN, UM, 2 0 0 8 MILL WAR DRIVE.

UM, I'M ALSO THE, UH, THE DIRECTOR OF THE COURTS OF MCKINNEY HERE ON BEHALF OF THE CITY OF MCKINNEY.

I JUST WANTED TO TAKE, I WANNA TAKE ALL THREE MINUTES, BUT I CERTAINLY JUST WANTED TO TAKE SOME TIME JUST TO THANK YOU ALL SO MUCH FOR EVERYTHING YOU'VE DONE.

UM, FOR THE, THE TENNIS PLAYERS, THE ENTHUSIASM, MCKINNEY FROM THE DAY I GOT HERE IN 2012 WHEN WE OPENED THE FACILITY TO WHERE IT IS JUST RECENTLY AND, AND OPENING THE INDOOR COURTS.

UM, THANK YOU FOR BEING THERE ON THE GROUND THIS SATURDAY.

AND, AND I KNOW SOME OF YOU OTHERS WERE THERE AS WELL, SO WE APPRECIATE YOU COMING IN.

ATTENDANCE, IT MEANT A LOT TO, UM, TO NOT JUST THE, THE ENTHUSIASTS, BUT ALSO THE, THE STAFF AND THE TEAM.

UM, IT'S JUST, IT'S QUITE INCREDIBLE TO SEE WHEN, WHEN THE VISION OF A, A CITY COUNCIL ALIGNS WITH THE CITY OF THE PARKS AND RECS, UM, DIRECTOR AND, AND THEIR TEAM, AND THEN ALSO THE MANAGEMENT, ALL THREE COMING TOGETHER.

IT'S PRETTY, PRETTY COOL.

THINGS CAN HAPPEN.

AND SO I CAN JUST TELL YOU FROM, FROM A PERSONAL POINT OF VIEW, IT'S THE MOST AMAZING PUBLIC TENNIS CENTER IN TEXAS.

AND AS, AS MAYOR FULLER MENTIONED ON SATURDAY, MAYBE IN THE COUNTRY.

SO, UH, IT'S EXCITING TO WORK AT.

I WISH YOU COULD SEE ALL THE FACES OF THE PEOPLE WHEN THEY WALK THROUGH THE DOORS AND JUST COMMENT AND LIKE, IS THIS REALLY A PUBLIC FACILITY AND THEY'RE BRINGING THEIR GUESTS OR THEY'RE BRINGING THEIR OPPONENTS FROM OTHER LEAGUES AND TEAMS. UM, IT, IT'S MIND BLOWING.

SO, UM, I INTEND TO, TO DO IT JUSTICE AS WE'VE DONE IN THE PAST.

UM, BRING SOME GREAT EVENTS TO THE CITY, SOME MORE TOURNAMENTS.

UM, AND ANYTHING AND EVERYTHING YOU ASK OF, OF OUR TEAM, UM, AS I SAID, WE'RE REALLY APPRECIATIVE.

UM, AND AGAIN, FOR MIKE KOWSKI, ALL THE SUPPORT HE'S GIVEN AS WELL, HE'S AND HIS TEAM.

IT'S JUST BEEN, JUST BEEN OFF THE CHART.

SO THANK YOU VERY MUCH.

I'VE GOT A SMALL TOKEN OF APPRECIATION.

UM, IF MY MANAGER, DAWN, CAN JUST BRING IT UP.

UM, WE'VE GOT SOME FLOWERS, BUT INSIDE THE FLOWERS, WE'VE GOT A, A TENNIS RACKET FOR ANYBODY THAT, THAT IS SERIOUS ABOUT PLAYING OR STARTING, WE'VE GOT THAT FOR YOU AS WELL.

SO HOPEFULLY THAT'S AWESOME.

HOPEFULLY WE'LL SEE YOU COME, COME USE THE COURTS.

YOU'RE MORE THAN WELCOME, YOU KNOW THAT.

SO THAT'S ALL I HAVE TO SAY.

THANK YOU VERY MUCH.

FANTASTIC.

I CALLED DIBS ON THAT .

UM, YOU KNOW, I CHALLENGED THE CITY MANAGER TO A TOURNAMENT THAT DAY AND HE DECLINED.

IF Y'ALL REMEMBER .

HEY, MATT, SOMETHING PLEASE.

UH, MATT, YOU HAVE, UH, YOU'RE BLESSED WITH ALEX MALDONADO TO BE WORKING OUT THERE WITH YOU.

AND I WAS PLEASANTLY SURPRISED TO REALIZE THAT HE IS RANKED NUMBER ONE IN AMATEUR TENNIS IN THE STATE OF TEXAS AND NUMBER TWO IN THE ENTIRE NATION.

AND I THOUGHT THAT'S JUST OFF THE CHARTS THAT YOU HAVE SOMEBODY OF THAT CALIBER WORKING WITH YOU WHO'S JUST REJUVENATED TENNIS IN MCKINNEY, TEXAS.

SO, THANK YOU.

THANK YOU, THANK YOU.

AND I WOULD SAY THAT COUNCILMAN FRANKLIN AND I DETERMINED WE BOTH HAVE N C A A ELIGIBILITY STILL.

SO , IF THERE'S ANY PROSPECTS OUT THERE, IT'S A BEAUTIFUL FACILITY.

ALRIGHT, UM, NEXT, DISCUSS REGULAR MEETING, UH, AGENDA ITEMS. IF THERE'S ANYONE COUNSEL WOULD LIKE TO DISCUSS TONIGHT WITH STAFF WHILE THEY'RE HERE.

[Summary of the 88th State Legislative Session]

IF NOT, WE WILL THEN MOVE TO OUR WORK SESSION ITEMS VERSES 23 0 6 1 1 SUMMARY OF THE 88TH STATE LEGISLATIVE SESSION, WHICH IS NOT OVER YET, AS WE, IT IS NOT, IT IS NOT.

THANK YOU, MR. MAYOR.

MEMBERS COUNCIL.

TREVOR MENIER, DIRECTOR OF STRATEGIC SERVICES.

I'M GONNA GIVE A BRIEF OVERVIEW OF SOME OF THE HIGHLIGHTS FROM THE RECENT REGULAR SESSION AND SPECIAL SESSIONS ONE AND TWO, AND THEN POINT YOU TO A LINK WHERE YOU CAN CATCH UP ON ALL THE, UH, NOT LOW LIGHTS, BUT MAYBE SOME MID LIGHTS.

AND AS THE MAYOR INTIMATED, THERE'S GOING TO LIKELY BE A SPECIAL SESSION THREE OCCURRING IN THE LATE SEPTEMBER, EARLY AUGUST TIMEFRAME, BUT WE'LL GET INTO THAT A LITTLE LATER.

FIRST THINGS FIRST, JUST TO ORIENT EVERYONE, UM, WE HAD A SIGNIFICANT SHIFT, A AFTER THE RECENT CENSUS AND THE NUMBER OF REPRESENTATIVES THAT WE ENJOY ON THE HOUSE AND THE SENATE SIDE.

SO PREVIOUS TO THIS SESSION, WE HAD ONE MEMBER, BASICALLY ON THE HOUSE SIDE, UH, THAT WAS REPRESENTATIVE SCOTT SANFORD.

NOW WE HAVE FOUR HOUSE DISTRICTS THAT TOUCH MCKINNEY.

UH, THE TWO PRIMARY DISTRICTS BEING 61 AND 67.

THAT'S REPRESENTATIVE FREDERICK FRAZIER AND REPRESENTATIVE, UM, JEFF LEACH.

AND THEN THE OTHER TWO ON CADDY CORNERS OF

[00:05:01]

THE CITY ARE REPRESENTATIVE, UH, M SHAHEEN AND REPRESENTATIVE K NOBLE ON THE SENATE SIDE.

THE MAJORITY OF MCKINNEY IS STILL OCCUPIED BY SENATOR PAXTON.

AND A SMALL CORNER OF MCKINNEY IS, UH, OCCUPIED BY SENATOR DREW SPRINGER.

HE HAS A LARGE NORTHERN SECTION INTO GRAYSON COUNTY AS WELL, BUT HE HAS A SMALL LITTLE PORTION OF MCKINNEY.

JUST WANNA THROW THESE UP THERE.

THESE ARE THE GENERAL PILLARS THAT WE FALL UNDER FOR WHAT THE COUNCIL ADOPTED BACK IN THE FALL OF LAST YEAR.

THAT WOULD BE KIND OF MY RUN SHEET WHEN I'M IN AUSTIN.

UM, A GREAT WAY TO SUMMARIZE THIS IS WE WOULD PROTECT THE AUTHORITIES WE HAVE AS A MUNICIPALITY AND WE WOULD OPPOSE ANY, UH, CIRCUMVENTING OF THAT AUTHORITY.

AND THERE'S ALL SORTS OF DETAIL UNDERNEATH THAT, BUT THAT'S KIND OF THE HIGH LEVEL, UH, ELEVATOR SPEECH.

SOME STATS FOR YOU.

UH, THEY BROKE A RECORD AGAIN THIS YEAR, 8,300 PLUS BILLS FILED, UH, THAT INCLUDES JOINT RESOLUTIONS TO BE FAIR.

JOINT RESOLUTIONS.

THEY'RE THANKING EVERYBODY AND VETERINARIANS FROM ALL ACROSS THE STATE.

UM, BUT THEY DID HAVE A LOT OF ACTIVITY.

THEY ALSO PASSED, UH, QUITE A FEW BILLS, 17% MORE THAN THEY DID IN THE PREVIOUS SESSION.

UH, ROUGHLY 20% OF THE BILLS THAT THEY PASSED DIRECTLY IMPACT A CITY OR A COUNTY.

THE THING THAT'S BEEN TOP OF LINE, LEMME BE OUT A SECOND, THERE WE GO.

UH, THE THING THAT'S BEEN TOP OF MIND LIKELY IS THE SENATE BILL TWO AND HOUSE RELU, HOUSE JOINT RESOLUTION TWO.

THAT'S THE PROPERTY TAX REFORM THAT OCCURRED IN THE MOST RECENT SPECIAL SESSION.

UM, THE SCREEN KIND OF GIVES YOU A LAYOUT OF HOW THAT WORKS.

THE HIGH LEVEL ITEMS ARE THAT THE SCHOOL HOMESTEAD EXEMPTION IS GONNA GO FROM 40,000 TO A HUNDRED THOUSAND.

THERE'S A NEW 20% WHAT THEY CALL CIRCUIT BREAKER FOR APPRAISED VALUES OF NON-HOMESTEAD PROPERTIES UNDER 5 MILLION.

AND THEN SOME OTHER KIND OF IN THE WEEDS STUFF WITH APPRAISAL DISTRICT ELECTIONS AND THE LIKE.

ALL OF THOSE HAVE TO BE APPROVED, UH, BY THE VOTERS IN THE NOVEMBER ELECTION.

UH, THEY REQUIRE CONSTITUTIONAL AMENDMENTS.

TREVOR, ON THE 20% CIRCUIT BREAKER, DOES THAT ONLY APPLY TO I S D TAXES? NO.

OR WILL THAT, OKAY, SO THAT APPLIES TO ALL TAXES THEN? THAT'S CORRECT, SIR.

OKAY.

AND WE DON'T ANTICIPATE THAT BEING A THING IMPACTING OUR BUDGET YEAR THIS YEAR AS WE'RE GOING THROUGH IT.

IT WOULD BE NEXT YEAR.

'CAUSE I THINK THERE'S A NOVEMBER REFERENDUM THAT WE SAID IN THERE THAT, YEAH.

YEAH.

OKAY.

YEAH, I DON'T, IT WILL NOT IMPACT THIS YEAR'S, UH, BUDGET, BUT WE WILL BE ABLE TO KIND OF SEE WHAT THAT 20% REPRESENTS IN NEXT YEAR'S BUDGET PREPARATION.

RIGHT.

THANK YOU.

MOVING ON, HOUSE BILL 2127 WAS, UH, APPROVED IN THE REGULAR SESSION.

IT IS WHAT WE REFER TO AS KIND OF A SUPER PREEMPTION BILL AND PREVIOUS LEGISLATIVE SESSIONS, SIMILAR BILLS HAVE BEEN FILED THAT WERE, UH, MORE NARROW IN SCOPE THAT ESSENTIALLY ROLLED HOMEROOM MUNICIPALITIES, WHICH IS WHAT WE ARE BACK TO, UM, GENERAL LAW CITIES, WHICH MEANS THAT IF YOU'RE UNDER 5,000, YOU OPERATE UNDER THE STATE CODE.

ESSENTIALLY THAT'S WHAT 2127 ACCOMPLISHED.

UM, IT'S A EXPRESSLY IN A FEW DIFFERENT CODES THAT I'LL GET TO ON THE NEXT SLIDE.

UM, WE'VE DONE A CURSORY REVIEW, AND I SAY WE, THE, UH, CITY ATTORNEY'S OFFICE AND STAFF.

WE DON'T BELIEVE THAT THERE ARE ANY ORDINANCES ON THE BOOKS THAT WOULD BE, UM, GO AGAINST WHAT HB 2127 HAS, UM, DICTATED TO THIS POINT.

HOWEVER, IF THERE ARE LEGISLATIVE ACTIONS THAT THE LOCAL, UH, MUNICIPALITY WANTS TO TAKE PLACE, THAT MCKINNEY WANTS TO TAKE PLACE IN THE FUTURE, UH, WE'D HAVE TO BE CAREFUL ABOUT REVIEWING WHETHER OR NOT WE HAVE THE AUTHORITY TO DO, UM, NOVEL THINGS MOVING FORWARD, SPECIFICALLY IN THESE CODES.

AG CODE, BUSINESS, FINANCE, INSURANCE, LABOR, NATURAL RESOURCES, OCCUPATION AND PROPERTY.

UM, THIS WAS A BILL THAT WAS A RESULT OF SOME, UH, REALLY EMPLOYMENT LAW AND PROPERTY LAW IN LARGER CITIES.

AND THE LEGISLATURE KIND OF REIGNING IN SOME OF THOSE, UM, INITIATIVES IN SOME LARGER CITIES, HOWEVER, IT WENT STATEWIDE.

SO CITIES LIKE MCKINNEY WERE WRAPPED UP IN IT AS WELL.

UH, TURNING THE PAGE TO PUBLIC FINANCE, UH, PFCS HAVE BEEN A POINT OF CONVERSATION WITH THE COUNCIL FOR ABOUT TWO YEARS NOW.

UM, PFCS RECEIVED A LITTLE BIT OF, UH, MASSAGING DURING THIS LAST SESSION.

PROBABLY THE MOST NOTABLE CHANGE IS NOW A P F C HAS TO OPERATE WITHIN ITS SPONSORING JURISDICTION.

IF YOU'LL REMEMBER, THERE WERE SOME INSTANCES OF PFCS FROM CITIES, UH, NOT IN OUR JURISDICTION TRYING TO PURCHASE PROPERTY IN A DIFFERENT CITY.

UM, SO THEY PUT THE KIBOSH ON THAT, UH, THEY IMPOSED SOME AUDIT REQUIREMENTS.

AND THEN THEY ALSO PUT

[00:10:01]

STANDARDS OF PERCENTAGE OF HOW MANY LOW INCOME UNITS HAVE TO BE IN A CERTAIN P F C PROPERTY.

IN ADDITION, IF A P F C WAS GOING TO PURCHASE A PROPERTY, UH, THEY WOULD HAVE TO DO SOME TYPE OF RENOVATION TO THAT PROPERTY.

THEY COULDN'T JUST GO BUY SOMETHING JUST TO HOLD IT.

UM, AND THEN THAT WAS EFFECTIVE IMMEDIATELY.

SO THIS IS CURRENTLY ON THE BOOKS FOR HOW WE ARE TO OPERATE THE CURRENT P F C THAT'S HERE IN MCKINNEY.

THE SENATE BILL 1999 UPDATED THE UNUSED TAX INCREMENT.

UH, AS A FORMER FINANCE PERSON, THIS IS REALLY UP MY ALLEY, SO I'LL TRY NOT TO GET TOO IN THE WEEDS, BUT ESSENTIALLY, OUR PREVIOUS CALCULATION OF OUR UNUSED INCREMENT WAS A PERCENTAGE BASIS.

ALL THIS DID WAS APPLY A DOLLAR AMOUNT BASIS TO THAT.

SO INSTEAD OF STACKING A PERCENTAGE INTO THE BANK, WE NOW, UH, STACK THE DOLLAR AMOUNT OF WHAT THAT PERCENTAGE REPRESENTS.

MOVING FORWARD.

SENATE BILL 5 43 MADE AN ADJUSTMENT TO THREE 80 AGREEMENTS OR ECONOMIC DEVELOPMENT AGREEMENTS FROM THE CITY PERSPECTIVE THAT WOULD ALLOW THE TRANSFER OF REAL PROPERTY OR LAND AND A THREE 80 AGREEMENT DEAL.

PREVIOUS TO THIS, IT WAS, UH, PROPERTY TAX, SALES TAX MOTIVATED.

SO THAT WOULD JUST ALLOW CERTAIN COMMUNITIES TO HAVE MORE FLEXIBILITY IN THEIR ECONOMIC DEVELOPMENT DUES.

1340, UH, FOR EVERY YING THERE'S A YANG, UH, REQUIRED SOME MORE STRINGENT REPORTING TO THE COMPTROLLER'S OFFICE AND THREE 80 REPORTING.

UM, WE ARE, UH, ONE OF THE MOST TRANSPARENT FINANCIAL GOVERNMENTS IN THE STATE OF TEXAS, SO WE HAVE NO ISSUE WITH THAT.

WE ARE SUPPORTIVE OF THIS BILL.

AND THEN FINALLY, UH, HOUSE BILL 40 82 PUT SOME MORE RESTRICTIONS ON CERTIFICATE OF OBLIGATIONS AND WHAT THEY CAN BE USED FOR.

YOU'LL SEE THE LIST THERE.

UM, THERE ARE SOME PERCENTAGE MIXES FOR A FEW OF THOSE USES.

SO IF YOU HAVE A CERTAIN PERCENTAGE THAT ISN'T BEING USED, UM, FOR, LET'S SAY A SPORTS, UH, COMPLEX, THEN IT COULD STILL BE ELIGIBLE.

BUT THAT'S A LITTLE BIT IN THE WEEDS.

FINALLY, LAND USE, OR EXCUSE ME, LAND USE.

UH, THE LARGE E T J BILL THAT PASSED THIS SESSION WAS IN RELATION TO THE ABILITY FOR A MEMBER OF THE E T J TO PETITION TO BE, UH, TAKEN OUT OF A CITY'S E T J.

UH, WE ARE LOOKING INTO WHAT THE EFFECT COULD BE TO THIS, NOT ONLY FOR LAND USE, BUT THEN ALSO FOR OUR UTILITY USE ACROSS THE STATE.

UM, IT, IT'S SAFE TO SAY WE DON'T REALLY KNOW WHAT THE IMPACT'S GONNA BE 'CAUSE IT'S SUCH A NOVEL THING THAT WAS APPROVED.

UH, HOWEVER, WE'RE KIND OF LOOKING AT DIFFERENT TRACKS THAT ARE IN THE E T J AND SEEING WHAT THE POTENTIAL OUTCOME OF SOMETHING LIKE THIS COULD BE IN THE FUTURE.

UH, I ALSO WANNA POINT OUT THOUGH WE DON'T HAVE ANY, UM, THERE, THERE WAS NO FOR ANNEXATION THAT OCCURRED, BUT IF THERE WAS A, FOR ANNEXATION THAT OCCURRED DURING THIS PERIOD, THAT'S SHOWN.

UH, THOSE ARE, UH, FOR ALL INTENTS PURPOSES REVOKED, UH, BY THE LEGISLATURE DURING IT THROUGH THIS BILL.

THAT DOESN'T APPLY TO US.

IT'S JUST KIND OF AN OGS COMMENT TO ADD.

AND THEN FINALLY, UH, SOME CHANGES TO THE PLATTING, IT'S PLATING AND SOME OTHER THINGS.

I MAY LEAN ON THE PLANNING STAFF IF YOU HAVE QUESTIONS ABOUT THIS.

BUT ESSENTIALLY, UH, SHOCK CLOCKS BEING REMOVED.

UM, AND SOME REALLY, THE LAST BULLET YOU SEE THERE IS WHERE THE NEGATIVITY FROM OUR PERSPECTIVE, UH, COMES INTO PLAY AND NOT ALLOWING US TO HAVE STUDIES ASSOCIATED WITH TRAFFIC IMPACTS.

ROADWAY IMPACTS, POPULATION IMPACTS, SIZE OF LOT IMPACTS, USE OF LOT IMPACTS, UM, WHEN A PLAT IS FILED, UH, THAT'S KIND OF A GAME CHANGER FOR HOW WE DO LAND USE ACROSS THE STATE, NOT JUST IN MCKINNEY, BUT SPECIFICALLY IN A FAST GROWTH PLACE LIKE MCKINNEY.

SO THIS IS ONE OF THE ONES THAT GOT ACROSS THE LINE WE WERE NOT SUPPORTIVE OF.

FINALLY, I WANNA POINT TO A COUPLE OF MCKINNEY SPECIFIC BILLS.

UH, HOUSE BILL ONE, WHICH IS THE GENERAL APPROPRIATION BILL FOR THE ENTIRE STATE BUDGET INCLUDED $5 MILLION, UH, TO BUILD A HANGAR FOR THE NORTH TEXAS DIVISION OF THE DEPARTMENT OF PUBLIC SAFETY'S, UH, HELICOPTER UNIT.

SO THEY'LL BE MOVING FROM A CITY TO OUR SOUTH AND BUILDING A HANGAR HERE AT MCKINNEY NATIONAL AIRPORT.

OVER THE COURSE OF THE NEXT 18 MONTHS, UH, THAT'S APPROPRIATED ALLOCATED MONEY.

SO IT'S IN THE BA IN THE BANK, SO TO SPEAK.

UH, HOUSE BILL 50 12 ALLOWS THE CITY OF MCKINNEY TO HAVE ACCESS TO THE STATE'S PORTION OF HOTEL MOTEL TAX FOR A QUALIFIED HOTEL CONFERENCE CENTER PROJECT.

UM, I, IF ONE WERE TO MATERIALIZE, ALL THIS WOULD, UH, DOES, IS ALLOW US TO APPLY TO GET ACCESS TO 10 YEARS OF THOSE STATE'S, UH, HOTEL MOTEL TAX DOLLARS.

SO IT'S NOT THE LOCAL HOTEL OPTION, IT'S THE STATE OPTION.

AND THEN FINALLY, SENATE BILL 25 98, UM, WAS A BILL THAT WAS FILED ON BEHALF OF THE HONEY CREEK IMPROVEMENT DISTRICT.

NUMBER ONE, THAT BILL, ALONG WITH ALL SPECIAL FINANCING DISTRICT BILLS, WERE VETOED BY THE GOVERNOR IN THE PROPERTY TAX DISCUSSIONS THEY HAD OVER SPECIAL SESSION ONE AND SPECIAL SESSION TWO.

AS I MENTIONED EARLIER, IN ALL LIKELIHOOD THERE WILL BE A THIRD SPECIAL SESSION IN THE OCTOBER TIMEFRAME.

I'D ANTICIPATE THAT A ITEM ON THAT SPECIAL

[00:15:01]

SESSION SAYS PREVIOUSLY VETOED BILLS TO BE RE TO BE REVISITED.

THAT'S MY SHORT AND SWEET PRESENTATION.

IF YOU HAVE QUESTIONS ABOUT SPECIFIC BILLS OR SPECIFIC INITIATIVES, OBVIOUSLY YOU CAN REACH OUT TO ME.

I'D ENCOURAGE, UH, EVERYONE ON THE COUNCIL TO TAKE ADVANTAGE OF THE TEXAS MUNICIPAL LEAGUE, UM, CONFERENCE BEING IN DALLAS, UH, JUST A SHORT DRIVE AWAY OCTOBER 4TH THROUGH THE SIXTH.

SO IF YOU CAN ATTEND, I'D ENCOURAGE YOU TO REACH OUT TO US.

LET US GET YOU REGISTERED TO ATTEND.

AND THEN FINALLY, EVERY WEEK, THE T M L UH, PUBLISHES A LEGISLATIVE UPDATE ON THEIR WEBSITE.

AND IF YOU'RE REALLY INTERESTED IN KNOWING EVERY SPECIFIC BILL THAT GOT PASSED AND THE IMPACTS OF ALL 1200, UH, THEY HAVE A REPORT ON THAT AS WELL.

BUT HAPPY TO STAND FOR ANY QUESTIONS, COMMENTS, WHEREAS MR. GRIME SAYS, SNIPE REMARKS, ELIZABETH , ANY QUESTIONS? I'D JUST LIKE TO SAY THANK YOU, TREVOR, FOR KEEPING UP WITH ALL THAT AND, UH, ALWAYS BEING A, UH, TREMENDOUS GUIDE WHENEVER WE MAKE IT DOWN TO AUSTIN AND ALL THE WORK THAT YOU DO DOWN THERE THAT THE PEOPLE HERE IN MCKINNEY RARELY SEE OR KNOW ABOUT.

AND IT IS, YOU'RE AN AMAZING TREASURE TO THE CITY OF MCKINNEY FOR ALL THAT YOU PROVIDE TO US AND ALL THE RELIEF YOU GIVE TO US SO THAT WE DON'T HAVE TO KEEP UP WITH ALL OF THAT.

APPRECIATE IT.

AMEN.

I'D SAY THAT EXTENDS TO DC AS WELL, SIR.

YOU KNOW, SIR.

THANK YOU.

ALRIGHT.

THANKS SIR.

THANKS,

[Update on the Water Service Line Program]

TREVOR.

23 0 6 1 2 UPDATE ON THE WATER SERVICE LINE PROGRAM.

GOOD AFTERNOON, MAYOR CITY COUNCIL.

RYAN GILLINGHAM, DIRECTOR OF PUBLIC WORK.

SO I'M HERE TODAY TO GIVE YOU AN UPDATE ON THE WATER SERVICE LINE REPLACEMENT PROGRAM AS WE'RE ABOUT HALFWAY THROUGH THE PROGRAM.

SO, UH, THIS AFTERNOON WE'RE GONNA TALK ABOUT THE PURPOSE AND HISTORY OF THE PROGRAM, AS WELL AS WE'RE GONNA TALK ABOUT THE CURRENT STATUS.

WE'RE GONNA TALK ABOUT THE NUMBER OF SERVICE LINES WE'VE COMPLETED, AS WELL AS THE IMPACT THAT THAT'S HAD ON NON-REVENUE WATER, AND THEN TALK ABOUT THE FUTURE OF THE PROGRAM AS WELL.

SO LET'S START WITH WHAT IS A WATER SERVICE LINE? SO THE WATER SERVICE LINE IS A PIPE THAT CONNECTS FROM THE WATER MAIN IN THE STREET, UH, TO THE HOME SPECIFICALLY.

UH, THERE ARE TWO PARTS TO THE WATER SERVICE LINE.

THERE'S THE, UH, PUBLIC PORTION OF IT AND THE PRIVATE PORTION.

SO THE PUBLIC PORTION IS FROM THE WATER MAIN TO THE METER BOX, INCLUDING THE METER BOX.

AND THEN THE PRIVATE PIECE IS FROM THE METER BOX INTO THE HOME.

SO SPECIFICALLY WHAT WE'RE TALKING ABOUT HERE IS WE'RE ONLY TALKING ABOUT THIS PORTION RIGHT HERE, UM, AS PART OF THE WATER SERVICE LINE IN OUR PROGRAM.

SO WHAT TYPES OF MATERIALS ARE, ARE SERVICE LINES MADE OF? SO THERE ARE FOUR DIFFERENT TYPES OF MATERIALS THAT HAVE BEEN INSTALLED, UH, FOR WATER SERVICE LINES OVER THE COURSE OF THE LAST 120 YEARS.

YOU HAVE LEAD LINES, GALVANIZED LINES, COPPER AND PLASTIC, UH, AND YOU CAN SEE ON THE TABLE TO THE RIGHT HOW MANY OF THOSE EXIST WITHIN THE CITY OF MCKINNEY.

IT'S VERY IMPORTANT TO NOTE THAT THE CITY OF MCKINNEY HAS NO KNOWN LEAD OR, OR GALVANIZED LINES.

AND THAT'S VERY IMPORTANT AS OVER THE LAST DECADE.

UH, CERTAINLY LEAD SERVICE LINES AND LEAD AND WATER HAS BEEN, UH, IN THE NEWS WHEN YOU THINK ABOUT FLINT, MICHIGAN.

SO IT'S VERY IMPORTANT TO NOTE THAT THE CITY OF MCKINNEY HAS NO KNOWN, UH, LEAD SERVICE LINES.

UH, WE HAVE APPROXIMATELY 37,000 COPPER LINES, WHICH IS THE SUBJECT OF THE SERVICE LINE REPLACEMENT PROGRAM, AND ABOUT 30,000 PLASTIC LINES.

AND THOSE ARE MADE, MADE UP OF HIGH DENSITY POLYETHYLENE OR THE BLUE, UH, PLASTIC PIPE THAT YOU SEE FOR A TOTAL OF 67,000, UH, SERVICE LINES.

SO, UH, WHAT ARE THE PROBLEMS THAT WE HAD WITH THE COPPER SERVICES? SO BETWEEN PARTICULAR YEARS FROM 1997 TO 2001, SOME INFERIOR COPPER WAS INSTALLED THROUGHOUT THE CITY.

UM, YOU CAN SEE THERE IN THE VIDEO TO THE LEFT, UH, WHERE THERE'S A LEAK OCCURRING, UH, ON THE SERVICE LINE, YOU CAN SEE THAT, UH, METER BOX FILLING WITH WATER ON THE RIGHT.

YOU CAN SEE A SERVICE LINE THERE, MADE A COPPER WITH A, A HOLE IN IT WITH THE WATER SPRAYING OUT.

UH, THESE ARE COMMON OCCURRENCES.

WE SEE THESE EVERY DAY WITHIN THE CITY OF MCKINNEY.

UM, SO IN, IN 2016, UH, THE CITY COUNCIL AND THE CITY EMBARKED ON A PROGRAM TO REPLACE, UH, 14,400 OF THESE SERVICES.

UM, THE GOAL AND THE MAIN GOAL OF THE PROGRAM WAS REALLY TO REDUCE NON-REVENUE WATER.

UM, SO WHAT IS NON-REVENUE WATER? SO WHEN YOU THINK ABOUT, UM, THE WATER COMING INTO THE CITY, WE HAVE FOUR TAKE POINTS WHERE WE RECEIVE WATER FROM NORTH TEXAS.

SO WE HAVE METERS IN THOSE LOCATIONS THAT, THAT TOTAL THE AMOUNT OF WATER THERE.

AND THEN IF YOU REMEMBER, WE HAVE 60,000, 67,000 SERVICE LINES.

SO AT EACH ONE OF THOSE LOCATIONS, WE HAVE A METER THAT WHERE THE, WHERE THERE WAS, WHERE THE WATER IS RECORDED GOING INTO THOSE PROPERTIES.

SO THE NON-REVENUE WATER IS THE DIFFERENCE BETWEEN WHAT WE'RE RECEIVING FROM NORTH TEXAS AND WHAT WE'RE PROVIDING TO THE HOMEOWNER.

UM, WE ALSO, SO THE GOAL REALLY WAS TO REDUCE THAT

[00:20:01]

AMOUNT AS LOW AS POSSIBLE.

WE'LL GET INTO THOSE STATISTICS IN A LITTLE BIT.

WE ALSO WANTED TO IMPROVE CUSTOMER SERVICE AS WELL AS WATER QUALITY.

IN 2016, UM, THE, UM, COST OF THE PROGRAM WAS ESTIMATED BY A CONTRACTOR TO BE $36 MILLION.

THE IN-HOUSE COST WAS ESTIMATED TO BE $14 MILLION.

SO THE CITY DECIDED AT THAT TIME TO GO WITH THE IN-HOUSE COST, MAINLY FOR LOWER COST, BUT ALSO FOR CUSTOMER SERVICE AS WELL AS CONTROL.

HERE IS A MAP, UH, SHOWING WHERE THE, UM, SERVICE LINE REPLACEMENT PROGRAM WAS TARGETED, SHOWING THOSE NEIGHBORHOODS IN BLUE.

SO THE NEXT QUESTION IS, HOW HAVE WE DONE, UH, SINCE 2017? SO YOU'LL SEE THE CHART HERE, UH, WE PEAKED IN, IN 2020 IN TERMS OF THE TOTAL NUMBER OF, OF SERVICE LINES REPLACED AT 1,720.

UH, MORE RECENTLY WE'RE AVERAGING ABOUT 1200 SERVICE LINES PER YEAR.

UH, THAT'S GONE DOWN REALLY DUE TO C OVID 19 AND STAFFING.

BUT THE REAL QUESTION IS, HOW HAVE WE DONE IN TERMS OF THE NON-REVENUE WATER AND THE WATER LOSS? SO PRIOR TO 2017, OUR WATER LOSS, YOU CAN SEE THERE WAS 20%, UH, IN THE YEARS PRIOR TO THAT IT WAS EVEN HIGHER.

SO IN 2020, UH, YOU CAN SEE THAT WE'VE, UH, GOTTEN THAT NUMBER DOWN ALL THE WAY TO 10%.

BUT WHAT, LET'S TALK ABOUT WHAT THAT NUMBER MEANS IN THE AGGREGATE, RIGHT? SO JUST YESTERDAY, UM, THE CITY PUMPED ABOUT 58 MILLION GALLONS OF WATER TO CUSTOMERS THROUGHOUT THE CITY.

SO 10% OF THAT IS 5.8 MILLION GALLONS OF WATER WAS NOT BILLED TO CUSTOMERS.

THAT'S A SIGNIFICANT AMOUNT.

AND I THINK WHAT IT GOES TO SHOW IS THAT WE NEED TO CONTINUE TO WORK TOWARDS, UH, REDUCING THAT NON NON-REVENUE WATER AMOUNT, EVEN THOUGH, UM, THE TEXAS STATE WATER BOARD, UH, SUGGESTS THAT A 12% SHOULD BE YOUR TARGET.

WE'RE BELOW THAT, BUT WE SHOULD CONTINUE TO WORK ON PROGRAMS TO GET THAT NUMBER EVEN LOWER, MAINLY BECAUSE OF THE COST IMPACTS THAT IT HAS TO THE CITY.

SO WHAT YOU'LL SEE HERE ON THIS CHART IS IN 2018, UM, THE VALUE OF THE REAL LOSSES.

'CAUSE REMEMBER, 2018 HAD THE HIGHEST AMOUNT AT 24% WAS ABOUT $7.3 MILLION.

YOU CAN SEE THE VALUE OF THAT NON-REVENUE WATER IN 20 20 22 IS ABOUT 2.6 MILLION.

ANOTHER WAY TO THINK ABOUT VALUE AS IT RELATES TO THE WATER SERVICE LINE REPLACEMENT PROGRAM IS HOW MUCH DOES IT COST FOR US TO, UM, PERFORM THE PROGRAM AGAINST HOW MUCH IS THE AMOUNT OF WATER THAT WE'RE SAVING? SO IF YOU LOOK HERE ON THE LEFT, YOU'LL SEE IF WE TOTAL UP ALL THE LABOR EQUIPMENT AND MATERIALS FOR IMPLEMENTING THE SERVICE LINE REPLACEMENT PROGRAM.

IN FISCAL YEAR 22, WE ESTIMATED IT WAS ABOUT 1.35 MILLION.

THIS INCLUDES ALL OF THE COSTS, NOT JUST FOR REPLACING THE WATER SERVICE LINE, BUT ALSO REPLACING THE CONCRETE PANELS, THE DRIVEWAYS, AND THE SIDEWALKS AS WELL.

ON THE RIGHT HAND SIDE, YOU'LL SEE WHAT, WHAT IS THE ESTIMATED WATER SAVINGS, RIGHT? SO AS YOU SAW ON THE EARLIER CHART, IF WE GO FROM A 20% LOSS DOWN TO A 10% LOSS, AND WE LOOK AT THE VARIABLE COST OF THAT WATER, WE'RE ESTIMATING ABOUT 3.56 MILLION, $3.5 MILLION IN SAVINGS, JUST IN TERMS OF THE, THE SAVINGS IN WATER.

AND THAT THAT WILL GO INTO THE FUTURE AS LONG AS WE'RE MAINTAINING THAT 10%.

ANOTHER WAY OF THINKING ABOUT IT IS IF THE CITY HAD DONE NOTHING, YOU KNOW, IN TERMS OF NOT IMPLEMENTING THE PROGRAM, WE'RE ASSUMING THAT WE WOULD STILL BE AT THE 20% LEVEL.

SO THE DIFFERENCE BETWEEN WHERE WE ARE TODAY AND WHERE WE WOULD'VE BEEN IF WE HADN'T DONE ANYTHING, IS ABOUT THAT 3.6 MILLION.

ONE OF THE OTHER IMPORTANT THINGS I THINK TO THINK ABOUT WHEN WE THINK ABOUT THIS 3.6 MILLION IS, UM, THERE ARE OTHER FACTORS THAT PLAY INTO, UH, WATER LOSS WITHIN THE CITY.

SO WHILE WE CAN'T DIRECTLY ATTRIBUTE THE 3.6 MILLION ENTIRELY TO THE SERVICE LINE REPLACEMENT PROGRAM, THERE IS STILL A VERY STRONG CORRELATION BETWEEN THE PROGRAM AND YOU CAN SEE HOW MUCH BETTER THE NON-REVENUE WATER IS DOING, UM, TO THIS NUMBER.

SO THESE ARE THE NEIGHBORHOODS THAT HAVE BEEN COMPLETED TO DATE.

AND ON THIS MAP HERE, YOU'RE SEEING THE NEIGHBORHOODS THAT ARE BEING PLANNED.

SO IN GREEN, YOU'RE SEEING WHAT WE'RE FINISHING UP THIS YEAR.

YELLOW IS WHAT'S BEING PLANNED FOR NEXT YEAR, AND THEN ORANGE IS 2025 AND BEYOND.

WE'RE GONNA TALK A LITTLE BIT MORE ABOUT HOW WE'RE USING ARTIFICIAL INTELLIGENCE TO HELP US FIGURE OUT WHICH NEIGHBORHOODS ARE NEXT A LITTLE BIT LATER ON.

BUT ON THE RIGHT HAND CORNER, UH, YOU CAN SEE OUR PROGRESS.

SO TO DATE, UH, WE'VE REPLACED ABOUT 8,600, UH, WATER SERVICE LINES THROUGHOUT THE CITY.

UM, IF WE TAKE OUR 14,400 GOAL, UH, WE HAVE ABOUT 5,800 REMAINING.

IN ADDITION TO REPLACING WATER SERVICE LINES, OUR CREWS THAT ARE DOING THOSE PROGRAMS HAVE EMBARKED ON SEVERAL, UM, MAIN REPLACEMENT PROGRAMS. AND I JUST WANTED TO HIGHLIGHT ONE FOR YOU HERE.

THIS IS COLORADO STREET WATER MAIN REPLACEMENT, UH, FROM TENNESSEE TO CHESTNUT.

UH, ONE OF THE CHALLENGES WE WERE HAVING ON THIS STREET, IT WAS THERE WAS A ONE INCH SERVICE LINE SERVING 12 HOMES.

SO YOU CAN IMAGINE THE PRESSURE AND THE VOLUME PROBLEMS THAT WE WERE HAVING ALONG THAT BLOCK.

UM, OUR TYPICAL PROCESS IS TO GO OUT AND GET QUOTES AND BIDS FOR THE WORK.

UH, AND

[00:25:01]

ON THIS PARTICULAR ONE, WE RECEIVED A, A QUOTE FROM A CONTRACTOR TO DO THE WORK FOR APPROXIMATELY $360,000.

WE FELT WE COULD DO BETTER, UH, THAN THIS QUOTE.

AND SO WE EMBARKED ON, ON THIS PARTICULAR PROJECT.

AND I'M PROUD TO SAY THAT WE WERE ABLE TO DO THE, THE PROJECT FOR ABOUT $85,000, OR ABOUT $300,000 LESS THAN THE QUOTE THAT WE HAD RECEIVED.

IT TOOK US ABOUT 300 WEEKS TO COMPLETE 800 FEET OF EIGHT INCH WATER MAIN.

AND IN TERMS OF PERFORMANCE, UH, WE MEASURED THIS AT THE INDIVIDUAL RESIDENCE PROPERTY.

IT WENT FROM 12 GALLONS PER MINUTE TO 40 GALLONS PER MINUTE.

WE GOT A LOT OF STAFF EXPERIENCE AS WELL AS JOB SATISFACTION.

UH, WE FORESEE MORE OF THESE TYPES OF PROJECTS BEING DONE IN-HOUSE, AND THAT'S WHY I WANTED TO HIGHLIGHT THIS PARTICULAR PROJECT.

ALSO, I WANTED TO TO TOUCH A LITTLE BIT ABOUT, UH, HOW WE'RE USING ARTIFICIAL INTELLIGENCE.

SO THE CHALLENGE THAT WE HAVE WITH, YOU KNOW, THAT WE HAVE IN THE BEGINNING OF THE PROGRAM, UM, THE WAY THAT NEIGHBORHOODS WERE SELECTED WAS REALLY JUST BASED ON INSTITUTIONAL KNOWLEDGE.

YOU KNOW, WHERE PEOPLE, WHERE WE HAD KNOWN LEAKS.

SINCE THAT TIME, WE'RE USING A LOT MORE MAPPING, UH, IN G I SS AND SOFTWARE TO HELP US PREDICT WHERE THOSE LEAKS ARE GOING TO OCCUR.

SO OUR FIELD STAFF HAS ACTUALLY USED SOFTWARE PUTTING IN DIFFERENT PARAMETERS ABOUT WHERE KNOWN LEAKS HAVE OCCURRED, UH, AGE DOMAINS, GROUND CONDITIONS TO HELP US PREDICT WHICH NEIGHBORHOOD SHOULD WE DO NEXT.

AND I JUST WANTED TO HIGHLIGHT THAT HERE BRIEFLY.

SO FIRST WE SET THE SUBDIVISIONS, WE LOOK AND WE EXPLORE FOR LEAKS.

AND THEN WHAT COMES OUT OF THAT IS THIS HEAT MAP USING ALL OF THAT DATA.

AND SO YOU CAN SEE HERE IN RED, THESE ARE THE NEIGHBORHOODS THAT WE'RE IDENTIFYING, UH, WHERE WE NEED TO DO THE WORK NEXT.

AND IT'S, AND IT'S REALLY NEAT TO SEE HOW OUR FIELD STAFF IS USING TECHNOLOGY TO IMPROVE EFFICIENCY AND COST FOR THE CITY.

IF WE ZOOM IN ON THIS PARTICULAR NEIGHBORHOOD, THIS IS CALLED THE SHILOH RANCH, UH, NEIGHBORHOOD.

SO THIS IS JUST ONE EXAMPLE OF MANY.

YOU CAN SEE IN THIS PARTICULAR NEIGHBORHOOD, WE REPLACED 20 SERVICE LINES.

WE FOUND NINE LEAKS.

AND SO WHEN WE LOOK AT THE MODEL, THIS IS TELLING US THAT WE NEED TO GO IN THERE AND REPLACE THE REST OF THE SERVICE LINES.

'CAUSE MOST LIKELY THIS HAS THE HIGHEST PROBABILITY OF LEAKS.

SO LOOKING AT, UH, WHERE WE NEED TO LOOK AT THE NEIGHBORHOODS FOR, UM, OUR NEXT PORTIONS AND OUR NEXT PART OF THE, YOU KNOW, OUR NEXT PART OR WHERE WE NEED TO GO REPLACE SERVICE LINES.

NEXT, WHAT WE LOOKED AT IS THE AGE IN NEIGHBORHOODS RELATIVE TO THE NUMBER OF LEAKS THAT ARE OCCURRING WITHIN THOSE NEIGHBORHOODS.

SO YOU CAN SEE IN ORANGE, THESE ARE THE NEIGHBORHOODS ON THIS MAP THAT WERE CONSTRUCTED BETWEEN 1997 AND 2011.

UH, YOU CAN SEE THAT THERE ARE 206 OF THOSE NEIGHBORHOODS.

THEN WHAT WE DID, AND YOU CAN'T READ THE NUMBERS THERE ON THE SCREEN, BUT WHAT, WHAT YOU'LL SEE ON THE RIGHT HAND SIDE IS THE NUMBER OF ACTUAL LEAKS THAT WE FOUND.

SO WE, WE MATCHED UP WHERE THE LEAKS WERE OCCURRING WITH THE AGE IN THE NEIGHBORHOOD TO SEE IF THAT TOLD US ANYTHING ABOUT WHERE WE SHOULD BE LOOKING FOR THOSE LEAKS.

AND WHAT WE FOUND WAS CONSISTENT WITH WHAT WAS PREDICTED IN 2016, IS THAT THE MAJORITY OF THE LEAKS THAT, THAT WE FOUND ARE OCCURRING IN NEIGHBORHOODS THAT WERE CONSTRUCTED ROUGHLY BETWEEN 1997 AND 2011.

SO THIS INFORMS US ABOUT WHERE WE NEED TO BE LOOKING IN THE FUTURE.

YOU KNOW, FOR THIS PROGRAM, WHILE WE HAVE IDENTIFIED ORIGINALLY 14,400 SERVICE LINES TO BE REPLACED, THERE ARE AN ADDITIONAL, 'CAUSE YOU'LL REMEMBER AT THE VERY BEGINNING, THERE WERE 37,000 COPPER SERVICE LINES WITHIN THE CITY, WITHIN THESE NEIGHBORHOODS CONSTRUCTED BETWEEN THOSE DATES, THERE'S AN ADDITIONAL 23,000 SERVICE LINES THAT ARE COPPER.

NOW, WE'RE NOT SAYING THAT ALL OF THOSE NEED TO BE REPLACED, BUT WE ARE SAYING IN THE FUTURE WE NEED TO BE MONITORING THOSE AND LOOKING FOR, USING OUR PREDICTIVE ANALYSIS TO SEE IF THOSE ARE ADDITIONAL NEIGHBORHOODS AND ADDITIONAL SERVICES THAT WE SHOULD REPLACE IN THE FUTURE.

RYAN, CAN I ASK YOU? YES, SIR.

WHILE YOU'RE ON A BREAK, BUT IT OCCURRED TO ME THAT BETWEEN 97 AND 2011, I WOULD APPROXIMATE THAT THE CITY'S POPULATION LITERALLY DOUBLED IN THAT TIME PERIOD.

MM-HMM.

, DO YOU HAVE THOSE STATS OR, WELL, ANECDOTALLY, YES.

I DON'T HAVE THOSE IN FRONT OF ME, BUT THAT IS, THAT IS CORRECT.

SO YOU SEE MORE NEIGHBORHOODS.

AND SO THAT'S WHY WE ALSO LOOK AT, UH, RATE OF FAILURE.

SO IT'S NOT JUST THE QUANTITY, BUT LOOKING AT THE NEIGHBORHOODS IN TERMS OF RATE.

AND THAT'S HOW THE SOFTWARE HELPS US TO FIGURE OUT WHICH NEIGHBORHOODS ARE THE MOST LIKELY TO HAVE THOSE LEAKS OCCURRING.

AND THAT'S ALSO CONSISTENT WITH WHERE WE FOUND, UM, THE COPPER SERVICE LINES WITH THE HOLES IN THEM, UH, THAT NEEDED TO, THAT WERE LEAKING AND NEEDED REPAIR ON HALF THE CITY.

WELL, YES, FROM, YOU KNOW, YOU CAN SEE THAT FROM THIS MAP.

SO, UH, IN SUMMARY, OUR ORIGINAL GOAL WAS TO REPLACE 14,400 SERVICES IN 10 YEARS.

OUR ACTUAL PRODUCTION WAS ABOUT 8,600 SERVICES, OR ABOUT 1200 SERVICES PER YEAR.

AS WE SAID EARLIER, WE HAVE ABOUT 5,800 LEFT.

IF YOU DIVIDE THE NUMBERS, THAT MEANS WE HAVE ABOUT 4.7 YEARS REMAINING, WHICH MEANS WE'LL BE DONE IN ABOUT 2028.

UM, HAVING STARTED THIS PROGRAM FROM SCRATCH

[00:30:01]

AT THE BEGINNING WITHOUT HAVING THE STAFF AND DOING THE WORK, YOU CAN SEE THAT THAT'S PRETTY AMAZING THAT WE STARTED A PROGRAM AND WE'RE PREDICTING IN, YOU KNOW, UH, SIX YEARS OR SEVEN YEARS AFTER WE STARTED THAT WE'RE GONNA BE DONE IN 11 YEARS.

AND THAT'S KUDOS TO, UH, MICHAEL GEORGE AND THE, AND THE SERVICE LINE TEAM FOR DOING A GREAT JOB AND, AND WORKING VERY HARD.

LOOKING FORWARD INTO THE FUTURE, SOME OF THE THINGS THAT WE NEED TO BE THINKING ABOUT IS THE CITY OF MCKINNEY IS ADDING ABOUT A HUNDRED THOUSAND FEET OF WATER MAIN PER YEAR, ABOUT 19 MILES.

THAT MEANS WE HAVE ADDITIONAL HYDRANTS THAT NEED TO BE, UH, RE UH, MAINTAINED.

WE HAVE ADDITIONAL THOUSANDS THAT NEED TO BE EXERCISED.

WE'LL HAVE MORE MAIN BREAKS AND MORE MAINTENANCE TO DO.

SO WE NEED TO THINK ABOUT HOW WE'RE TRANSITIONING THOSE STAFF AS WELL AS, YOU KNOW, OUR EXISTING STAFF TO MEET THOSE NEEDS.

SECONDLY, LIKE ANY INFRASTRUCTURE TO AGES OVER TIME, AND WE NEED TO BE THINKING MORE ABOUT THE COLORADO STREET EXAMPLE, ABOUT WHERE WE CAN USE OUR STAFF TO REPLACE THOSE LINES, AS WELL AS HOW DO WE INTEGRATE THOSE INTO OTHER CAPITAL IMPROVEMENTS.

AND THEN LASTLY, UM, WE HAVE THE 23,000 ADDITIONAL COPPER SERVICE LINES THAT WERE, UH, PUT IN, IN THAT, IN THOSE TIME PERIODS.

AND WE NEED TO POTENTIALLY THINK ABOUT HOW TO CONTINUE THE PROGRAM IF NEEDED, BASED ON DATA, UH, TO REPLACE THOSE LINES.

AND WITH THAT, I WILL STAND FOR ANY QUESTIONS.

IT'S A MASSIVE PROJECT.

SURE.

IS JUST ONE QUICK QUESTION.

UM, THAT 14,000 FEET, THE COPPER LINE, IS THAT PURE COPPER? CAN WE, ARE WE RESELLING THAT OR, OR SELLING IT BACK OR WHAT? I THINK IT GOES ON OUR SCRAP METAL PILE FOR, UH, RESALE.

IS THAT? YEP.

IT GOES IN OUR SCRAP METAL PILE FOR, UM, AND IT'S SOLD TO A SCRAP YARD.

MM-HMM.

RYAN, THANK YOU AND ALL OF YOUR STAFF FOR THE EXCELLENT WORK AND THE SAVINGS YOU REPRESENT TO THE CITY.

YOU'RE VERY WELCOME.

THANK YOU, RYAN.

THANK YOU, RYAN.

ALRIGHT, WE'LL

[Update on the Visit McKinney Strategic Plan]

MOVE ON TO THE NEXT ITEM, WHICH IS 23 DASH OH 6 1 3.

UPDATE ON THE VISIT MCKINNEY STRATEGIC PLAN.

AARON FLOOR IS YOURS.

FLOOR IS MINE.

GOOD AFTERNOON, CITY COUNCIL, MR. CITY MANAGER AARON WARNER, EXECUTIVE DIRECTOR AT VISIT MCKINNEY.

UH, RECENTLY, UH, PASSED THE ONE YEAR MARK OF BEING BACK WITH THE GREAT CITY OF MCKINNEY.

UH, WHEN I ARRIVED AND I TOOK THIS POSITION, ONE OF, UH, MY TOP PRIORITIES AND ONE OF THE PRIORITIES OF OUR BOARD WAS TO GO THROUGH A STRATEGIC PLANNING PROCESS TO GIVE US A ROADMAP FOR ME AND MY STAFF TO GAUGE, UH, HOW WELL WE ARE DOING, UM, BUT ALSO TO MAKE SURE THAT WE'RE IN LINE WITH, WITH YOUR GOALS AND WITH THE GOALS OF OUR STRATEGIC PARTNERS AROUND US.

AND SO WE ENGAGED IN, UH, IN THIS PROCESS.

ACTUALLY, I IMPRESS IF WE CAN DO THE EMPRESS, IF WE CAN DO THE, UH, PRESENTATION.

THAT'S THE FULL PLAN.

YEAH.

GIMME ONE SECOND.

ALRIGHT, PERFECT.

HERE WE GO.

AND SO, WHEN, WHEN WE TALK ABOUT TOURISM, WE TALK ABOUT DESTINATION MANAGEMENT, UH, AND, AND SOMEONE ASKS YOU, WHAT DOES YOUR C V B DO? UH, IT'S, IT'S NOT UNCOMMON FOR THERE TO BE QUESTIONS ABOUT WHAT DO THEY REALLY DO.

UM, AND SO I WANT TO KIND OF GIVE YOU AN EXAMPLE OF HOW WE GAUGE WHAT WE DO AND HOW IT IMPACTS THE COMMUNITY.

AND THE BEST WAY TO DO IT IS THROUGH, UH, THROUGH THIS, UH, DESTINATION MANAGEMENT CYCLE.

AND IT SAYS THIS, IT SAYS, IF YOU BUILD A PLACE WHERE PEOPLE WANT TO VISIT, THEN YOU BUILD A PLACE WHERE PEOPLE WANNA LIVE.

IF YOU BUILD A PLACE WHERE PEOPLE WANNA LIVE, THEN YOU'LL BUILD A PLACE WHERE PEOPLE WANNA WORK.

AND IF YOU BUILD A PLACE WHERE PEOPLE WANNA WORK, THEN YOU'LL BUILD A PLACE WHERE BUSINESS HAS TO BE.

AND THEN IF YOU BUILD A PLACE WHERE BUSINESS HAS TO BE, THEN YOU BUILD A PLACE WHERE PEOPLE WANT TO VISIT.

AND SO IT ALL COMES FULL CYCLE IN HERE.

AND, AND YOU BEGIN TO REALIZE THAT THE FIRST DATE OF MANY ECONOMIC DEVELOPMENT DEALS IS THE FIRST VISIT, THE FIRST DATE FOR MANY OF THE RESIDENTS THAT CHOOSE MCKINNEY AS A PLACE TO BUILD THEIR FAMILY, INVEST AND PUT THEIR HOME IS THEIR FIRST VISIT.

IT MAY BE COMING DOWNTOWN, IT MIGHT BE VISITING A PARK, THINGS LIKE THAT.

BUT IF YOU CAN GET 'EM HERE TO VISIT ONE TIME, THE THE OPPORTUNITIES ARE ENDLESS OF WHAT CAN COME FOR OUR COMMUNITY FROM THAT.

AND WHAT I BEGAN TO REALIZE PRETTY QUICKLY IS THAT THE IDEA OF VISIT MCKINNEY, DOING A STRATEGIC PLAN ON OUR OWN, UH, DOESN'T GET US VERY PAR, UH, VERY FAR.

UM, OUR SUCCESS, UH, IT REALLY COMES DOWN TO OUR ABILITY TO COLLABORATE AND WORK WITH OUR STRATEGIC PARTNERS AND OUR CITY MANAGER, OUR CITY COUNCIL, TO MAKE SURE THAT WE'RE ALL ON THE SAME PAGE.

BECAUSE WHEN YOU BUILD A DESTINATION, IT TAKES ALL OF THESE, AND I DON'T KNOW WHY M C D C POPPED DOWN, BUT, UM, IT TAKES ALL OF THESE DEPARTMENTS, UH, TO, TO WORK AS ONE UNIFIED, UH, BODY TO, UH, PURSUE, UH, WHAT WE WANT MCKINNEY TO BE.

AND SO WHEN IT CAME TIME TO DO A STRATEGIC PLAN, I KNEW THAT I NEEDED THESE PEOPLE IN THE ROOM WITH US, UH, NOT ONLY WITH OUR BOARD AND STAFF, BUT WITH OTHER STAKEHOLDERS INVOLVED.

SO A QUICK UPDATE OF WHERE WE ARE TODAY, JUST JUST A FLASH OF THE HOSPITALITY, UH, UH, IN MCKINNEY IS THAT WE HAVE 26 HOTELS AND AIR AND BMBS, UH, BED AND BREAKFASTS IN MCKINNEY TODAY, TOTALING AROUND 1,854 SLEEP ROOMS. UH, WE ALSO HAVE 284

[00:35:01]

SHORT-TERM RENTALS TODAY, UM, IN THE CITY LIMITS OF MCKINNEY.

AND THAT'S A NUMBER THAT'S, UH, GROWING, UM, PRETTY RAPIDLY THROUGHOUT THE COMMUNITY.

YOU WILL, IF YOU LOOK AT A HEAT MAP OF SHORT TERM RENTALS, YOU'LL SEE A LOT OF THOSE ARE IN OUR DOWNTOWN DISTRICT.

UH, VENUE WISE, THERE ARE 30 MEETING AND EVENT FACILITIES THROUGHOUT THE CITY.

UH, CVBS LOVE TO TOTAL UP ALL THEIR SQUARE FOOTAGE OF THEIR MEETING SPACE, WHICH WE HAVE 120,000.

THAT'S A DECEIVING NUMBER IF YOU REALLY GET DOWN TO IT.

WE ALL KNOW THAT THE SHERATON IS OUR LARGEST MEETING SPACE.

THE BALLROOM IS 7,500 SQUARE FEET, AND THE MAX EVENT SIZE WE CAN HAVE THERE IS AROUND 8 24.

AND THAT'S REALLY STRETCHING THE PROPERTY, BUT THE TOTAL EVENT SPACE WITH ALL OF OUR FACILITIES AND VENUES AND MCKINNEY'S 120,000 SQUARE FEET.

AND SO IN FEBRUARY OF, UH, 23, WE BROUGHT IN ALICIA COOK WITH OPPORTUNITY STRATEGIES TO LEAD OUR DISCUSSION, OUR STRATEGIC PLANNING PROCESS.

UH, SHE SPECIALIZES IN ECONOMIC DEVELOPMENT, TOURISM AND IN MAIN STREET PROGRAMS WITH HER STRATEGIC PLANNING.

AND, UH, WE ALSO BROUGHT IN, UH, STAKEHOLDERS FROM ALL OF THOSE ENTITIES THAT I SHOWED YOU ON THAT SLIDE BEFORE.

UM, AND WE HAD, UH, UH, VOICES FROM, UM, ALL OVER OUR COMMUNITY IN THE ROOM.

UH, THROUGH THAT PROCESS, WE WENT THROUGH A SWOT ANALYSIS, BRAINSTORMING, A START, STOP ACCELERATE.

UH, ULTIMATELY WE CAME UP WITH A FEW, UH, WITH, UH, SIX, UH, STRATEGIC GOALS IN OUR PLAN.

I PROVIDED THE FULL PLAN FOR YOU AT YOUR TABLE.

I'M NOT GOING THROUGH THAT ALL TODAY.

UM, BUT THERE'S SOME REALLY GOOD INFORMATION IF YOU DO WANT TO DIVE DEEP INTO THAT SWAT INTO TO THE, UH, STOP START AND ACCELERATE OF WHAT CAME FROM ALL OF THESE STAKEHOLDERS, UM, FROM OUR DESTINATION.

UH, BUT WE SPENT QUITE A BIT OF TIME ON VISION AND MISSION BECAUSE YOU KIND OF GOTTA START THERE TO KNOW WHERE YOU'RE GOING.

AND WE DIDN'T HAVE THAT IN PLACE FOR OUR, OUR FOR OUR TEAM.

UM, SO WITH EVERYBODY IN THE ROOM, BOARD, STAFF AND, AND ALL STAKEHOLDERS, UH, WE WALKED AWAY WITH THE VISION OF MCKINNEY'S TO BE THE MOST WELCOMING GYM IN ALL OF TEXAS.

I HOPE, UH, MAYOR FULLER GOT TO EXPERIENCE A LITTLE BIT OF THAT FIRSTHAND WHEN THE C L A CONFERENCE WAS IN TOWN.

UH, WE TAKE IT SERIOUSLY WHEN WE GET A GROUP INTO MCKINNEY.

WE WANT THEM TO WALK AWAY TALKING ABOUT HOW THAT WAS THE BEST EXPERIENCE THEY'VE EVER HAD AT A DESTINATION.

UM, AND, AND THAT'S OUR GOAL.

WE, AND WE TRY TO LIVE UP TO THAT TODAY AND WILL IN THE FUTURE.

UH, FROM A MISSION STANDPOINT, UH, WE DECIDED, UH, ON TO IMPROVE THE ECONOMIC VITALITY OF MCKINNEY BY INVITING OTHERS TO VISIT, EXPLORE, AND ENJOY THE MANY EXPERIENCES OUR CITY HAS TO OFFER.

IF YOU REALLY GET DOWN TO IT, WHAT WE'RE DOING IS WE'RE BRINGING VISITORS IN TO GIVE THEM A TASTE OF WHAT WE GET TO DO ALL THE TIME.

'CAUSE IT'S OUR COMMUNITY, BUT WE WANNA SHARE IT WITH THEM WHILE THEY'RE HERE.

AND SO, THROUGH THE PROCESS WE HAD, WE ENDED UP WITH SIX STRATEGIC GOALS.

UH, THEY'RE ALL IN YOUR PACKET WITH ALL THE DETAIL BELOW IT.

UM, BUT IN SHORT, THE FIRST ONE IS TO SUPPORT AND PROMOTE EVENTS IN MCKINNEY.

WE'VE GOT PHENOMENAL EVENTS IN MCKINNEY TODAY.

UH, WE, WE HOPE TO INCLUDE MORE IN THAT IN THE FUTURE, BUT FROM THE BUYER INTO OCTOBER FEST, UH, OUR, OUR GOALS UNDER THERE, UM, HELP SUPPORT THOSE EVENTS.

UH, WE CAN DO THAT THROUGH THINGS LIKE AN AMBASSADOR PROGRAM.

SO WE'RE TEACHING OUR FRONT DESK STAFF AT HOTELS OR, OR THE WAIT STAFF AND RESTAURANTS, HOW TO TALK ABOUT MCKINNEY WHEN THEY, WHEN THEY GET QUESTIONS FROM VISITORS IN THE ROOM.

WE CAN ALSO DO IT BY CREATING HOTEL PACKAGES.

SO WHEN YOU HAVE ANTO FEST, UH, WE'VE GOT AN EASY ACCESS WITH TRANSPORTATION TO AND FROM A HOTEL PROPERTY WITH V I P AMENITIES, SO WE CAN TRY TO KEEP PEOPLE HERE IN THE COMMUNITY LONGER.

THE SECOND GOAL THAT WE CAME UP WITH WAS, UH, TO CREATE A STRATEGIC MARKETING PLAN.

WE'RE IN THE INDUSTRY CALLED A D M O, A DESTINATION MARKETING ORGANIZATION.

IT'S OUR JOB TO MARKET MCKINNEY AS A DESTINATION AND DRAW PEOPLE HERE.

UM, AND SO ALL THE SUB GOALS UNDER THERE IS TO CREATE, UM, THAT IN A MORE STRATEGIC WAY, UM, SO THAT WE CAN MAKE SURE WE'RE TARGETING THE RIGHT DEMOGRAPHICS, BRINGING THE RIGHT PEOPLE HERE.

UH, THE THIRD IS TO DEVELOP A UNIFIED TOURISM PLAN WITH OUR STRATEGIC PARTNERS.

UH, THIS IS JUST GOING RIGHT BACK TO, TO HOW I STARTED THIS.

UM, UH, WE ARE NOT THE ONLY ENTITY OUT TRYING TO GROW THE TOURISM AND DESTINATION.

UH, IN MCKINNEY.

WE'VE GOT AMAZING PARTNERS LIKE OUR PARKS AND REC TEAM WHO ARE OUT WITH, WITH THE FIELDS THAT THEY ALREADY HAVE, THE FACILITIES THEY HAVE, AND THEN THE ONES THAT ARE COMING IN THE FUTURE.

UH, WE KNOW SPORTS TOURISM IS A HUGE DRAW FROM MCKINNEY, UH, TODAY, AND IT'S ONLY GONNA INCREASE.

SO IF WE KNOW THAT, THEN OUR TEAM CAN GO OUT AND, UH, AMPLIFY WHAT THEY'RE ALREADY DOING TO MAKE SURE THAT, THAT WE HAVE THE BEST EXPERIENCE POSSIBLE WHILE THEY'RE HERE.

UM, SO IT'S REALLY LOOKING IN THE MIRROR AT WHO WE ARE TODAY AND ALSO WHERE WE WANT TO GO.

AND THEN AS A UNIFIED GROUP, WE ALL GO AFTER THOSE GOALS.

NUMBER FOUR IS TO BECOME A DATA FOCUSED ORGANIZATION.

UH, GONE ARE THE DAYS WHERE YOU HAVE TO LOOK AT A MAP AND YOU THROW A DART AND YOU ASSUME PEOPLE ARE VISITING FROM OKLAHOMA CITY BECAUSE IT'S CLOSE IN PROXIMITY.

UH, WE HAVE DATA AT OUR FINGERTIPS NOW THAT CAN DIVE INTO THE ORIGIN, UH, DESTINATIONS OF WHERE PEOPLE ARE COMING FROM, HOW LONG THEY STAY IN YOUR COMMUNITY, HOW MUCH MONEY THEY SPEND WHILE THEY'RE HERE, AND WHERE THEY'RE GOING IF THE MONEY, IF THEY'RE LEAKING AND GOING TO OUR NEIGHBORING, UH, UH, COMMUNITIES TO EXPERIENCE DIFFERENT THINGS.

UM, SO WE'RE GONNA, WE'RE GONNA UTILIZE THAT DATA WHEN WE MAKE OUR DECISIONS AND OUR MARKETING PLANS, AND WE'RE GONNA MARKET TO THE RIGHT PEOPLE.

NUMBER FIVE IS TO, UH, ENHANCE ORGANIZATIONAL

[00:40:01]

STRUCTURE OF OUR TEAM.

UH, WE ARE IN A FAST GROWING, UH, CITY AS YOU ALL ARE WELL AWARE.

UM, BUT WE'RE ALSO IN A FAST GROWING DESTINATION, UM, WITH SOME OF THE THINGS ON THE HORIZON AND WHERE WE'RE HEADED.

UM, SO WE HAVE A SMALL BUT MIGHTY PHENOMENAL TEAM TODAY.

UM, AND, AND, UH, ONE OF THE GOALS OF OUR BOARD IS FOR US TO, UM, CONTINUE TO LOOK AT WAYS TO GROW INTO OUR DESTINATION.

UM, WE'RE A LITTLE SMALLER THAN WHAT SOME OF OUR NEIGHBORING COMMUNITIES ARE, UH, FROM A D M O STANDPOINT, UM, FROM A, A BUDGET AND A STAFF SIZE.

AND SO, UM, TO LOOK FOR WAYS TO GROW INTO THAT AND BE PREPARED FOR THE WHAT'S COMING UP IN THE FUTURE HERE IN MCKINNEY.

AND THE LAST ONE THAT WE LANDED ON WAS TO ENSURE FINANCIAL GROWTH OF VISIT MCKINNEY, OF COURSE, WE'RE, UH, FUNDED, UH, BY HOTEL MOTEL TAX.

SO IT'S OUR GOAL TO MAKE SURE THAT THE CITY BRINGS IN EVERY SINGLE DOLLAR WE CAN AND TO INCREASE THAT, UH, THAT INCOME, UH, EVERY SINGLE DAY.

UM, AND SO THAT'S WHAT WE'RE OUT DOING.

WE'RE WORKING WITH OUR HOTEL PARTNERS.

WE'RE TRYING TO RECRUIT AS MANY PEOPLE HERE AS POSSIBLE, UM, TO ENJOY MCKINNEY.

UM, BUT THERE ARE OTHER WAYS THAT THIS CAN BE DONE.

UH, FOR, UH, EXAMPLE, ONE QUICK WAY IS, UH, TODAY, UH, MCKINNEY ONLY COLLECTS SHORT-TERM RE OR HOT TAX FROM, UH, SHORT-TERM RENTALS THAT ARE POSTED ON AIRBNB.

UH, IF YOU HAVE EVER BOOKED A SHORT-TERM RENTAL, YOU KNOW, THERE ARE OTHER SITES OUT THERE THAT YOU CAN DO THAT FROM, LIKE, UH, VRBO AND, AND EVEN OTHERS THAT POP UP EVERY ONCE IN A WHILE.

UM, SO THERE'S MONEY LEFT ON THE TABLE, UM, FROM A SHORT-TERM RENTAL STANDPOINT WHERE YOU COULD HAVE ONE, ONE NEIGHBOR THAT HAS A, HAS A AIRBNB ONLY, AND THEN YOU HAVE ONE WHO'S POSTED ON BOTH AND THEY'RE NOT HAVING TO PAY FROM BOTH.

SO THERE, THERE ARE WAYS THAT WE CAN INCREASE THAT THROUGH SOME STRATEGIC DISCUSSIONS IN THE FUTURE.

UM, AND WE WANT TO BE ON TOP OF THAT AND, AND GUIDE THOSE DISCUSSIONS FOR EVERYONE.

UM, BUT THOSE ARE OUR SIX GOALS AGAIN.

UM, I I WANT TO THANK, UH, YOU KNOW, I, I KNOW PAUL WAS THERE FOR A WHILE.

WE HAD MEMBERS FROM E D C C D C PARKS AND RECREATION AND SEVERAL OTHER ENTITIES IN THE ROOM, UM, AS WE DID THIS.

AND OF COURSE OUR BOARD, UH, WAS HEAVILY INVOLVED.

SO NOW WE HAVE A ROADMAP UNTIL 2025.

UM, THIS IS, THIS IS THE SANDBOX WE'RE GONNA BE PLAYING IN, AND WE WANTED TO MAKE SURE YOU ALL WERE AWARE OF THAT.

AND WE WANT TO SUPPORT ANY, ANY GOALS OR ANY IDEAS THAT YOU ALL HAVE FOR US AS WE MOVE FORWARD.

SO WITH THAT, I'LL STAND FOR ANY QUESTIONS.

YOU MIGHT HAVE QUESTIONS FOR AARON.

AARON, I'LL SAY THAT C L A, UM, THEY HAVE PUT THE EVENTS ON, UH, THAT EVENT THAT WE HAD HERE IN, UH, 25 DIFFERENT CITIES, AND THEY SAID BY FAR THE EXPERIENCE THEY HAD WITH YOU GUYS AND, AND WITH JUST ALL THE PREPARATION AND, AND ASSISTANCE THAT, THAT YOU GAVE THEM, UM, WAS UNLIKE ANY OTHER CITY.

THEY, THEY ARE STILL TALKING ABOUT IT.

YEAH.

AND, UH, SO THANK YOU FOR THAT.

THEY, THEY REALLY HAD AN EXPERIENCE THAT WAS ABOVE ANY OTHER CITY THEY'VE EVER HAD.

YEAH.

WELL THAT TEAM'S RIGHT HERE BEHIND ME.

SO IT WAS THE LADIES BACK THERE THAT DID THAT.

AND, AND AGAIN, WE HAVE A PHENOMENAL TEAM TO DO THAT.

THEY, THEY, ONE OF THEM SAID AT THE END OF THE, KIND OF DID A SUMMIT AT THE END, JUST RECAPPING EVERYTHING THEY SAID.

THEY KEPT WAITING FOR SOMEONE TO COME OUT WITH A CAMERA LIKE THEY WERE ON CANDID CAMERA FOR THOSE OLDER PEOPLE TO KNOW WHAT THAT IS.

YEAH.

THAT, BECAUSE IT WAS JUST OVER THE TOP OF, OF, OF JUST REALLY GREAT HELP AND, UH, AND, AND ENGAGEMENT THAT THEY'RE JUST NOT, THEY'RE NOT USED TO IT.

SO THEY, THEY WERE FLOORED.

YEAH.

WE APPRECIATE THOSE, THOSE COMMENTS.

THAT'S OUR GOAL.

YEAH.

AND AARON, IT'S NOT OH, GO AHEAD, MR. MAYOR PARTAIN.

I JUST WANNA SAY THANKS TO ALL YOUR STAFF AS WELL AND THE BOARD FOR PUTTING ALL THAT TOGETHER AND EXCELLENT WORK.

THANK YOU.

THANK YOU, THANK YOU.

YEAH.

AND IT'S, IT'S NOT LOST ON US THAT YOU'VE ACTUALLY GOT BOARD MEMBERS HERE TO HELP SUPPORT YOU.

YOU'VE GOT A VERY SUPPORTIVE BOARD, A GREAT BOARD.

KATIE AND JANE ARE HERE.

AND, UH, IT'S ALSO NOT LOST ON ME THAT MR. PAUL SPARKMAN IS TRYING TO BASK IN THE GLORY OF THAT BOARD BY SITTING REALLY CLOSE TO EVERYBODY OVER THERE.

YEAH.

BUT, BUT Y'ALL DO A TERRIFIC JOB, UH, BOARD AND STAFF AND AARON, SO THANK YOU VERY MUCH.

THANK YOU SO MUCH.

WHERE DOES MR. SPARKMAN RANK ON YOUR LIST OF ATTRACTIONS DRAWING PEOPLE TO MCKINNEY? YOU KNOW, HE, HE'S A TRUE FOR MCKINNEY.

WE ACTUALLY TALKED ABOUT HIM THE OTHER DAY.

YOU SEE HIM OUT PUTTING THE FLAGS OUT AT ALL OF THE EVENTS, SO HE, HE IS SPECIAL.

SO YEAH.

THANK YOU GUYS.

THANKS SO MUCH.

THANK YOU, YOUR HONOR.

THANKS.

HEARING ALRIGHT, 2 3 0 6 1 4.

[Consider/Discuss Criteria for Opioid Fund Disbursement]

CONSIDER AND DISCUSS CRITERIA FOR THE OPIOID FUND DISBURSEMENT.

MR. MAYOR, COUNSEL MARK HOUSER, CITY ATTORNEY, UH, JUST WANTED TO SEEK SOME DIRECTION TODAY.

AS YOU KNOW, THE COUNSEL HAS ALREADY, UH, CONSIDERED MADE A GRANT OF SOME OF THE FUNDS, UH, THAT WE'VE BEEN RECEIVING AND WE WILL CONTINUE TO RECEIVE.

AND I KNOW THAT YOU'VE SEEN, UH, SOME, SOME COMMENTS, UH, FROM CITIZENS ABOUT, UH, THE TYPES OF ORGANIZATIONS THAT WERE SE THAT ARE SEEKING THESE FUNDS.

THE QUESTION REALLY FOR THE COUNCIL IS YOU, YOU HAD, YOU WERE COMFORTABLE WITH USING THE COMMUNITY GRANTS PROCESS, UH, AS THE KIND OF THE VEHICLE TO GATHER INFORMATION FOR MAKING DECISIONS.

THE COMMUNITY GRANTS PROCESS IS, REQUIRES ALL THE ENTITIES TO BE NON-PROFIT.

SO THE QUESTION FOR THE COUNCIL IS, DO YOU WANT TO CONSIDER AN EXEMPTION FOR THE OPIOID FUNDS UNDER THAT COMMUNITY GRANT PROCESS

[00:45:02]

SO THAT YOU CAN HAVE OTHER TYPES FOR PROFIT ENTITIES THAT COULD COME IN AND SEEK THOSE FUNDS? UH, I CAN, I WILL MENTION THAT IN ANY GRANT THAT THE COUNCIL DOES APPROVE, YOU CAN PUT WHATEVER CONDITIONS THAT YOU WANT ON THE DISBURSEMENT OF THOSE FUNDS.

SO NOT ONLY CAN THERE BE REPORTING REQUIREMENTS, WHICH THERE ALWAYS ARE, BUT YOU COULD ALSO, YOU COULD ALSO PUT OTHER CONDITIONS ON FUNDING IF YOU WANTED TO CONSIDER FOR-PROFIT ENTITIES.

UH, AND I WON'T BEGIN TO EXPLAIN ALL THE DIFFERENT TYPES OF, YOU KNOW, UH, UH, USES OF THOSE FUNDS, WHETHER IT BE FOR THE INDIVIDUALS WHO MIGHT HAVE THE, THE ADDICTIONS OR HOWEVER.

AND YOU ALSO KNOW THAT THESE FUNDS CAN BE USED BY THE CITY FOR PROGRAMS EDUCATION.

UH, SO YOU, YOU KNOW, THIS, AND WE'VE TALKED ABOUT IT BEFORE, BUT THE QUESTION TODAY IS REALLY ABOUT THE DISTINCTION BETWEEN THE NON-PROFITS UNDER THE COMMUNITY GRANTS PROGRAM OR FOR-PROFITS HERE TO ANSWER ANY QUESTIONS.

AND, AND CERTAINLY A A, AN ACCEPTABLE DIRECTION WOULD BE TO NOT, NOT DO ANYTHING, LEAVE AS STATUS QUO.

ABSOLUTELY.

WE DON'T NEED TO CHANGE THIS BECAUSE THE ONLY REASON I BRING THIS TO YOU IS BECAUSE WE'VE HAD APPLICANTS AND REQUESTERS WHO WOULD NOT QUALIFY OTHERWISE WHO ARE IN THE BUSINESS OF HEALTHCARE.

HAVE WE HAD A FORMAL APPLICATION FROM ANYONE WHO WAS IN THE FOR-PROFIT REALM, NOT A NON-PROFIT FOR THIS MONEY? WE HAVE NOT.

UH, THE REASON IS THEY, THEY CAN'T BECAUSE THEY DON'T HAVE A RIGHT.

NON-PROFIT STATUS.

RIGHT.

OKAY.

BUT WE HAVE HAD INQUIRIES AND REQUESTING, THERE WAS A SPEAKER HERE A COUPLE OF MEETINGS AGO.

RIGHT.

YEAH, I'M, I'M WELL AWARE OF THAT ONE.

YEAH.

COMMUNITY GRANTS PROCESS DOES NOT START UNTIL AFTER, I THINK AFTER THE FIRST OF THE YEAR.

RIGHT.

UH, THAT, THAT'S WHAT I WAS THINKING.

I WAS THINKING IS THERE ANYTHING FORMAL? UM, WELL, AND WE CAN ALSO, YOU CAN DO GRANTS OUT OF SEQUENCE, RIGHT? I MEAN, THE GRANT THAT YOU GAVE TO THE ONE ENTITY.

ABSOLUTELY.

SO, UH, AS YOU KNOW, THESE FUNDS COME WHEN THEY COME AND SO WE JUST WANTED TO SEE IF THERE WAS AN APPETITE FOR WIDENING THE, UH, UNIVERSE.

MY PREFERENCE IS SAME AS MY PERSONAL CONSUMPTION IS, I'D RATHER SPEND MY MONEY HERE IN MCKINNEY WHERE I MAKE MY MONEY THAN TO TAKE IT SOMEWHERE ELSE.

AND IF WE'RE GOING TO CONTINUE THIS PROGRAM, I THINK WE SHOULD BE FUNDING OUR OWN NON-PROFITS AND KEEPING THAT MONEY AT HOME RATHER THAN SHIPPING IT OUT TO NA NATIONAL AND STATEWIDE FIRMS THAT ARE PROFITING OFF OF MCKINNEY.

UNDERSTAND.

ANY OTHER COMMENTS? I, I, IN MY OPINION, WE SHOULD BE LOOKING FOR THE BEST OUTCOME AND I DON'T THINK RESTRICTING THAT TO WHERE SOMEONE IS HEADQUARTERED OR THEIR NONPROFIT STATUS DOES THAT AT ALL.

AND SO I DON'T THINK THAT THAT'S A LIMITATION WE SHOULD PUT ON THIS.

I DON'T THINK IT'S A LIMITATION WE PUT ON LOOKING FOR CONTRACTORS TO SERVICE OUR WATER LINES OR WE LOOK FOR WHO TO GIVE MONEY TO FROM OUR ECONOMIC DEVELOPMENT.

AND I DON'T THINK IT'S SOMETHING WE SHOULD START DOING WITH TRYING TO ENSURE THAT WE'RE GETTING THE BEST OUTCOMES FOR THE OPIOID RE REFUND OR FUNDING THAT WE HAVE.

SO WHERE DO YOU, WHERE DO YOU STAND, UM, JUSTIN THOUGH ON THE NON-PROFIT VERSUS FOR-PROFIT? I, I, SAME.

SAME ANSWER.

YEAH, SAME ANSWER.

I MEAN, THIS, I WANT US TO FIND THE BEST SOLUTION FOR THIS MONEY THAT HELPS THE MOST PEOPLE.

AND I, I DON'T, AGAIN, I SAID IT MONTHS AGO WHEN WE STARTED TALKING ABOUT THIS, I DON'T KNOW WHAT THAT IS, BUT I DON'T THINK PUTTING A PROFIT OR NON-PROFIT DESIGNATION OR A HEADQUARTERS IN MCKINNEY OR HEADQUARTERS SOMEWHERE ELSE DOES THAT AT ALL.

AND SO IN MY OPINION, WE, THIS ISN'T BENEVOLENT MONEY WE'RE GIVING OUT.

THIS IS MONEY THAT, THAT WE NEED TO, TO ADDRESS THIS ISSUE IN OUR CITY.

AND HOW DO WE DO THAT IN THE BEST WAY IS WE FIND THE BEST PEOPLE THAT, THAT ARE DOING THAT AND THE APPLICATION PROCESS AND A, AND A PRESENTATION AND DELIBERATION OF THAT IS THE BEST WAY TO DO THAT.

AND PUTTING ADDITIONAL RESTRICTIONS ON THAT, I DON'T THINK HELPS US.

AND TO BE CLEAR, MARK, WE COULD CONTINUE IT BEING A A, THE SAME, UM, GRANT PROCESS, JUST WE WOULD CARVE OUT AN EXCEPTION ON THESE FUNDS TO WHERE THEY COULD OPEN APPLICATION PROCESS FOR FOR-PROFIT.

CORRECT.

AND, AND, AND NOT THAT THE FOR-PROFIT WOULD GET THE FUNDS, I'M JUST SUGGESTING THAT ONCE YOU GET AN APPLICATION, YOU CAN DELVE INTO THE OPERATION OF THAT PARTICULAR BUSINESS AND SAY, THESE FUNDS CAN ONLY BE USED FOR THIS, CANNOT BE USED FOR THIS.

I MEAN, YOU CAN GET INTO SPECIFICS, UH, IF YOU CHOSE, AND THESE ARE DIFFERENT THAN YOUR AVERAGE TYPICAL, UH, COMMUNITY GRANT, WHICH YOU KNOW WHAT THE, THE NONPROFITS DO.

THEY MIGHT BE AN

[00:50:01]

ORCHESTRA OR SOMETHING.

UH, THIS IS MORE, CAN BE MORE TARGETED IF YOU WANTED TO TELL THE RECIPIENT HOW THEY CAN SPEND THE MONEY.

ANYONE ELSE HAVE A YEAH, I'LL JUST SAY I THINK THIS IS AN ANSWER IN THE SEARCH OF A PROBLEM.

I, I DON'T GET IT.

I DON'T UNDERSTAND WHAT WORLD EXISTS WHERE A FOR-PROFIT COMPANY WOULD MERIT THESE.

THE FOR-PROFIT COMPANY THAT RATTLED ITS SABER AT IS, IS AS I SAID A COUPLE WEEKS AGO IN COUNCIL LOAN BY PRIVATE EQUITY.

UH, THEY'RE GOBBLING UP OTHER METHADONE CLINICS THAT ARE HANDING THIS OUT.

THEY'VE GOT A CASH COW ON THEIR HANDS.

I DON'T KNOW WHAT THEY COULD SAY TO US NOW.

I WOULD SAY IT'S FAIR TO SAY THAT IF SOMETHING WERE TO BE SAID TO US WHERE THEY THOUGHT THEY HAD MERIT, IT SHOULD DEFINITELY COME FROM THEIR FINANCE DEPARTMENT THAT THAT IS WHERE THEIR HEADQUARTERS IS.

UH, I, I, I JUST, I'VE BEEN THINKING ABOUT THIS SINCE I SAW IT AS AN AGENDA ITEM AND I JUST CAN'T CONCEIVE OF A WORLD THAT A FOR-PROFIT COMPANY I THINK WOULD MERIT THIS BECAUSE THEY'RE MAKING THEIR MONEY.

UM, IF THEY DIDN'T, THEY WOULD HAVE A NONPROFIT ARM.

SO, YOU KNOW, I'M, I'M WILLING TO ENTERTAIN A REAL WORLD EXAMPLE OF, HEY, THIS IS WHERE IT COULD BE A GOOD IDEA AND PERHAPS ADAPT MY ANSWER.

BUT, UH, AS THINGS STAND RIGHT NOW, UH, I I JUST DON'T SEE A REAL WORLD EXAMPLE OF A FOR-PROFIT COMPANY THAT WOULD MERIT CONSIDERATION ON THIS.

I, I'D BE EMBARRASSED IF THAT FOR-PROFIT COMPANY THAT WE LOOKED AT GOT ANY MONEY.

I THINK ONE OF THE AREAS WHERE YOU MIGHT SEE THAT UTILIZATION BE VERY BENEFICIAL IS IF THERE'S SOME, UM, EDUCATION TO THE GENERAL PUBLIC.

SO SOME OF THESE COMPANIES CAN COME OUT AND TALK, TALK ABOUT PREVENTION, ESPECIALLY IN OUR HIGH SCHOOLS AND, AND THE LOCAL COLLEGES AND THINGS LIKE THAT.

SO I THINK IF WE'RE, IF WE'RE LOOKING AT FUNDING A FOR-PROFIT BUSINESS, THE QUESTION IS HOW DOES IT BENEFIT THE COMMUNITY? AND THAT MAY BE ONE OF THE AREAS THAT WE, IT, IT MAY BE, BUT, AND, AND I'M GONNA BE REALLY BASE HERE AND FORGIVE ME, BUT IF THE PRIVATE EQUITY COMPANY'S BUYING A METHADONE CLINIC, THEY'RE IN THE BUSINESS OF HANDING OUT METHADONE PILLS, THEY'RE NOT IN THE BUSINESS OF GETTING PEOPLE NOT TO TAKE THE METHADONE PILLS.

THEY, THIS, THEY'RE PRETTY NAKEDLY IN THE FOR-PROFIT BUSINESS.

I'M NOT SAYING THEY DON'T HAVE A PLACE IN THE SOLUTION, I JUST DON'T KNOW.

THEY HAVE A PLACE AT THE TABLE FOR OUR MONEY I'D HAVE TO SEE A REAL WORLD EXAMPLE OTHER THAN HERE'S, HERE'S KIND OF AN ETHEREAL EXAMPLE WHERE, UH, IT WOULD MAKE SOME SENSE.

I JUST DON'T SEE IT.

I SEE NON-PROFITS DOING THE EDUCATION.

I DON'T SEE FOR-PROFITS DOING IT, BUT I'M NOT TRYING TO BE ARGUMENTATIVE.

BUT TO, TO, UH, DR.

FELT IS, I MEAN, YOU COULD SAY TO A FOR-PROFIT, THE MONEY CAN ONLY BE SPENT FOR EDUCATION EVEN THOUGH YOU ARE IN THE BUSINESS OF METHADONE.

I MEAN, YOU COULD, YOU COULD TARGET THE MONEY.

I'M NOT SAYING THAT THAT'S WHERE YOU WANT TO GO.

I DON'T THINK WE'RE GIVING UP ANY CONTROL.

'CAUSE WE ULTIMATELY HAVE THE DECISION TO MAKE WHEN IT COMES FORWARD IN THE, IN THE SETTLEMENT FOR THE OPIOIDS.

MONEY WENT TO THE STATE, WENT TO THE COUNTIES, SOME WENT TO US.

YEP.

UH, THIS IS A PRETTY SMALL PIECE OF THE PIE.

I THINK ANY FOR-PROFIT COMPANY WORTH THEIR SALT IS SHOOTING AT MUCH BIGGER GAME THAN MCKINNEY, TEXAS.

NOW, I MAY BE WRONG, THEY MAY BE INTERESTED IN COMING HERE, BUT I FEEL LIKE IT'S IMPORTANT TO BE A STEWARD OF THIS WITH RESPECT TO, SIMILAR TO MAYBE WHAT THE MAYOR PRO TEM SAID, ARE PEOPLE ATTACKING THIS PROBLEM WHO WE SEE ATTACKING AT TIME AND TIME AGAIN.

AND I, I DON'T REALLY WANT TO OPEN THE BARN DOORS FOR, UM, SOMETHING WEIRD TO HAPPEN.

SO I, I RESPECT WHAT EVERYBODY'S SAYING.

IF YOU WANT TO VOTE A DIFFERENT WAY, I GET IT.

BUT I'M NOT GOING TO SUPPORT THIS.

MY, MY SUGGESTION WOULD BE THAT THERE'S A, THERE'S GOOD POINTS BEING MADE ALL AROUND THE TABLE, BUT WE'RE TALKING ABOUT $45,000 THAT'S REMAINING.

THERE IS AN AMOUNT THAT IS UNKNOWN THAT MAY COME.

AND, AND THAT PERIOD OF TIME, I THINK IS ALMOST INFINITE.

THINK OVER THE NEXT 10 YEARS.

HOW MANY YEARS? IT COULD BE 10 MORE YEARS.

10.

10.

I THINK IT WAS EVEN GREATER THAN THAT.

17, I THOUGHT.

YEAH, 17 YEARS.

SO, SO, UH, KNOWING THAT THAT'S THE KIND OF MONEY WE'RE TALKING ABOUT, UM, MY, MY PREFERENCE WOULD BE, UH, I'D, I'D DECIDE ON LEAVING IT AS IT IS.

THERE'S NOT ENOUGH MONEY TO TALK ABOUT.

BUT CERTAINLY, UM, RESPECTING WHAT YOU'RE SAYING, JUSTIN, THAT, UH, UM, THAT IF, IF, UH, WE'D NEVER WANT TO, WE'RE TALKING ABOUT IF WE WERE TALKING ABOUT REAL MONEY, AND NOT TO SAY $45,000 IS NOT REAL MONEY, BUT IF WE WERE TALKING ABOUT A LARGE SUSTAINABLE AMOUNT OF MONEY, THEN YEAH, I'D WANNA OPEN THE DOOR AND WHATEVER PROVIDES THE BEST RESULT WOULD TRUMP EVERYTHING ELSE.

FOR-PROFIT.

NOT-FOR-PROFIT HERE, NOT HERE.

WOULDN'T MATTER.

BEST RESULT SHOULD GET, SHOULD HAVE THE MONEY.

BUT FOR THE AMOUNT WE'RE TALKING ABOUT, I THINK WE HAVE PLENTY OF NON-PROFITS IN THE PROCESS THAT WE HAVE SET UP TO, TO, UH, THAT WILL HAVE NEED FOR THAT MONEY.

AND, AND SO I, I'M FINE LEAVING IT AS IS.

YEAH.

I THINK IT'S

[00:55:01]

KIND OF SPECULATIVE FOR A POLICY CHANGE AT THIS POINT IN TIME.

SO I'D AGREE WITH GEORGE AND PATRICK BOTH THAT, UH, IT'S NOT TIME YET.

I DON'T THINK IT'S SPECULATIVE WHEN WE'VE HAD A PROVIDER WALK IN HERE AND SAY, WE WOULD LIKE TO TAKE PART IN THIS.

WE SERVE 400 PEOPLE IN YOUR COMMUNITY, THREE BLOCKS FROM YOUR CITY HALL, BUT WE'RE NOT ELIGIBLE FOR THE PROCESS THAT YOU'VE PLACED IT IN.

BUT WE WOULD LIKE TO, TO BE A PART OF THAT.

I DON'T THINK THAT'S SPECULATIVE TO SAY, SHOULD WE LET THEM BE A PART OF THAT? AND I THINK WHEN WE LOOK AT HEALTHCARE DELIVERY ACROSS THIS CITY, ACROSS THIS COUNTY, IT TAKES A MIX.

AND THIS IS NOT WHAT WE DO.

AND SO TO TO, TO ALL OF A SUDDEN CREATE THESE BARRIERS OR THESE, THESE, YOU KNOW, I GUESS OPINIONS ABOUT WHO CAN BEST DELIVER BECAUSE OF, YOU KNOW, THAT'S THE WAY WE, WE HAND OUT BENEVOLENT FUNDS IN A GRANT PROGRAM, BUT WE, WE'VE JUST SET THESE PARAMETERS JUST BECAUSE WE, WE LIKE THE OUTCOME THAT WE GET FROM IT.

RATHER THAN SAYING WHO WOULD PROVIDE IT.

WE DON'T KNOW.

I, I'M, I MEAN, THAT'S WHAT IT WAS SAID ALL ALONG.

WE HAVE NO IDEA.

, NOBODY IN HERE KNEW WHO COMMUNITY HEALTH SERVICES WAS BEFORE THEY WALKED IN HERE TWO WEEKS AGO.

'CAUSE WE'VE NEVER, I MEAN, I'M MAKING AN ESTIMATION.

NOBODY IN HERE HAS EXPERIENCED AN OPIOID CRISIS AND HAS TO GO DO THAT.

SO THE IDEA THAT WE'RE GONNA COME UP WITH ONLY NON-PROFITS CAN, CAN FILL THAT NEED IS, IS, I DON'T KNOW.

IT'S JUST, IT SEEMS LIKE A RESTRICTION THAT WE'RE, WE'RE, WE'RE PUTTING ON THIS TO GET AN OUTCOME THAT, YOU KNOW, WE WANT, WE DON'T SAY THAT WHEN WE TALK ABOUT WHO, WHO EMPLOYEES CAN GO FOR HEALTH SERVICE.

WE'VE GOT FOR-PROFIT, WE'VE GOT NON-PROFIT.

MEDICAL CITY DOES A FANTASTIC JOB.

THEY'RE OWNED BY PRIVATE EQUITY COMPANIES.

MAKE NO MISTAKE.

I AGREE WITH EVERYTHING YOU JUST SAID.

IT'S IT, BUT FOR ME IT WAS JUST A MATTER OF THE AMOUNT OF MONEY WE'RE TALKING ABOUT.

AND THE, THE, UH, AS MUCH AS YOU SAY WE, WE DIDN'T KNOW WHAT, WHAT THAT GROUP DID PRIOR TO.

WE CERTAINLY ALL HAVE THE BENEFIT NOW.

AND I THINK THE GENERAL CONSENSUS WOULD BE, EVEN NOW KNOWING WHAT THAT GROUP DOES, THAT WOULD NOT BE A BENEFACTOR OF THESE FUNDS IN ANY WAY, SHAPE, OR FORM COMPARED TO WHAT OTHER OPTIONS WE HAD.

ALL THAT SAID, AT THE END OF THE DAY, I, I WOULD, I WOULD FALL ON YOU DON'T YOUR POINT.

I WOULD FALL ON YOUR POINT OF WHATEVER THE BE BEST OUTCOME IS, IS WHERE THE MONEY SHOULD BE USED.

AND, AND AT THE END OF THE DAY, YOU'RE RIGHT, WE DON'T KNOW WHAT THE BEST OUTCOME IS.

AND IF WE, IF WE DO, UH, EVEN I GUESS IF IT'S 45,000, I SHOULD RE I SHOULD RETHINK WHAT I SAID BEFORE.

AND IF IT'S 45,000, $10 OR A HUNDRED MILLION, IT SHOULD BE BASED ON THE BEST OUTCOME.

AND SO I'LL, I'LL, YOU'VE, YOU'VE WON ME OVER IN YOUR ARGUMENT, SO DON'T ARGUE WITH ME ANYMORE.

.

NOT ME.

UM, YOU KNOW, THE, THE PERSON WHO CAME UP AND TALKED TO US WAS SOMEONE WHO'S NOT IN THE FINANCE PART OF THAT COMPANY.

UH, IT WAS SOMEONE WHO'S IN AS BEST I COULD TELL, THE COUNSELING PART OF A COMPANY THAT HANDS OUT METHADONE PILLS.

UH, I I, THERE WAS NO NEED DEVELOPED.

IT WAS, IT SEEMED TO ME TO BE ALL, WELL, WE'RE HERE.

WELL, I KNOW YOU'RE HERE, BUT IF YOU NEED US, COME TO US.

COME TALK TO US.

YOU KNOW, WHY THEY DIDN'T, THEY DON'T NEED US.

WE DIDN'T PUT OUT AN INVITATION.

IT IT, BUT, BUT HAD WE EVEN DONE IT, IT WOULD'VE NEEDED TO COME FROM SOMEONE WHO COULD DEMONSTRATE THE FINANCIAL NEED FOR THIS MONEY.

IT DIDN'T, IT WOULDN'T HAVE COME FROM THE LOCAL DISPENSARY THAT HANDS OUT PILLS.

YOU KNOW, I THINK, I THINK IT'S A MISTAKE FOR US TO, TO, TO DELIBERATE OVER THAT ONE COMPANY.

'CAUSE I THINK, UM, BUT THAT'S THE, RIGHT, I MEAN THAT'S THE EXAMPLE THAT WE'VE GOT.

YEAH, WELL, IT'S NOT BECAUSE THERE'S, THERE'S, YOU KNOW, IF YOU, IF YOU JUST DO A GOOGLE SEARCH, YOU CAN FIND FOUR OR FIVE OPIOID SERVICERS IN MC IN THE MCKINNEY CITY LIMITS.

AND NONE OF THEM ARE NOTIFIED ABOUT THE WAY IN WHICH WE'VE DONE THIS.

AND WE DON'T KNOW WHO WE EXCLUDE BY CREATING PARAMETERS THAT WE JUST BECAUSE OF, OF THE PROCESS THAT WE'VE SELECTED ARE PLACED ON THERE.

NOT, NOT BECAUSE THEY GET US A BETTER OUTCOME.

PART OF ME WANTS TO ENTERTAIN TO ALLOW THIS, BECAUSE I'D LOVE TO SEE THE APPLICATIONS WE WOULD GET FROM PRIVATE EQUITY COMPANIES COMING IN HERE SAYING, HEY, GIVE US MONEY FOR THIS THING.

I'D LOVE TO SEE WHAT THEIR JUSTIFICATION IS, BUT, UH, I JUST DON'T WANNA OPEN THAT PANDORA'S BOX.

I DON'T, I DON'T THINK YOU'RE GETTING, GETTING THAT.

I THINK YOU'RE GONNA GET THE PEOPLE WHO ARE IN THIS WORK EVERY DAY WHO, WHO RECOGNIZE THAT THEY'RE FILLING THE NEED TOO AND CAN ALSO USE THE SUPPORT.

I THINK YOU'RE GONNA GET THE NON-PROFITS THAT REALLY NEED THE MONEY THAT AREN'T GETTING PAID FOR, YOU KNOW, FULL PRICE FOR THE PILLS THEY'RE HANDING OUT.

SO TO KNOW WHERE WE ARE, CONSENSUS WISE, MICHAEL, WHERE DO YOU FALL? I, I JUST THINK THE, THE AMOUNT JUST DOESN'T, I MEAN, IF WE'RE TALKING PRIVATE EQUITY, NO PRIVATE EQUITY'S COMING UP ASKING FOR $45,000.

I JUST, JUST HAVEN'T SEEN IT IN MY WORKSPACE OR ANY OTHER, SO I JUST THINK THAT THE AMOUNT JUST DOESN'T WARRANT A POLICY CHANGE IN MY OPINION.

BUT, YOU KNOW, WHERE DO YOU FALL? I CAN SEE, YOU KNOW, AS FAR AS

[01:00:01]

FOR-PROFIT, I MEAN, THERE'S FOR-PROFIT HOSPITALS AND WE HAVE MEDICAL CITY.

THERE'S FOR-PROFIT CLINICS THAT COULD, YOU KNOW, MAYBE HAVE A, YOU KNOW, HAVE A, A DIVISION WHERE THEY SERVICE, YOU KNOW, YOU KNOW, YOU KNOW, OPIOID ADDICTION THAT WANT TO SERVICE PEOPLE THAT, YOU KNOW, CAN'T AFFORD IT.

YOU KNOW, I CAN'T AFFORD THE, THE, THE, THE TREATMENT.

AND THEY, YOU KNOW, THEY MAY APPLY BECAUSE THEY WANT TO BE ABLE TO PROVIDE THEIR SERVICES IN THAT SENSE, AND THEY ARE FOR-PROFIT.

SO I DO SEE IT, YOU KNOW, BOTH WAYS.

BUT I'M JUST, AND I, I'M BACK TO JUST THE, THE AMOUNT ITSELF.

I, I JUST TALKING ABOUT 45 GRAND, I WOULD SAY DON'T RESTRICT IT.

YOU KNOW, I, I WANNA KNOW WHAT THEY'RE GONNA BRING IF THEY ARE FOR PROFIT, IF THEY'RE GONNA OFFER SOMETHING TO THE COMMUNITY THAT CAN BE BENEFICIAL, I'D LIKE TO SEE IT.

SO I, I WOULD LIKE TO KEEP IT OPEN, RICK, IT'S ON YOU MAKE GOOD DECISION.

OH, THANK YOU .

UH, I'M FOR OPENING IT UP.

I WANT TO, YOU KNOW, WE LIVE IN A FREE MARKET SYSTEM.

I WANT SEE WHAT OFFERS WE GET IN.

WE STILL HAVE CONTROL.

YEAH.

I MEAN AT SOME POINT WE COULD SAY, HEY, THIS ISN'T WORKING THESE, YOU KNOW, BUT AT LEAST INITIALLY WE OUGHT TO SEE, UH, WHAT WE GET COMING IN.

SO JUST, JUST AS A REMINDER, SO THE COMMUNITY GRANTS COMMISSION WILL BE, THEY WILL BE THE ENTITY THAT WILL RECEIVE THE APPLICATIONS FOR THE REMAINDER OF THE FUNDS AND THEY WILL DELIBERATE ON IT AND THEY WILL DECIDE.

AND WHAT I'M HEARING IS THAT THE COUNCIL IS SAYING, UH, WE'RE OKAY WITH OPENING UP, OR I SHOULD SAY RELAXING THE COMMUNITY GRANTS COMMISSIONS POLICY WITH RESPECT TO ONLY NONPROFITS FOR FUNDING THAT FOR PURPOSES OF OPIOID SETTLEMENT FUNDS, THEY WILL OPEN IT UP TO THE, THE UNIVERSE OF APPLICANTS AND THEN THAT WILL STILL COME, COME BACK, MAKE SURE THAT'S RIGHT, TO COME BACK TO COUNCIL, MAKE A DECISION.

I I MEAN IT DON'T THINK WHAT WE COULD MAKE THAT A CONDITION, YOU COULD SAY AS A CONDITION IS TO COME BACK TO COUNCIL COUNSEL.

SO THAT WOULD BE THE VERY QUICK, UM, COMPROMISE HERE IS WE OPEN IT UP AS IT RELATES TO NON-PROFITS OR FOR-PROFITS, BUT IT COMES BACK ULTIMATELY TO COUNCIL THAT SOLVES AND SERVES EVERYONE'S DESIRE HERE.

THAT WAS, THAT WAS ALWAYS THE UNDERLYING THING IN MY OPINION, THAT BECAUSE OF THE UNIQUE NATURE OF THESE FUNDS, I THOUGHT THAT YOU SHOULD MAKE.

YEAH.

SO DOES EVERYONE AGREE WITH THAT? WE'LL OPEN IT UP, BUT IT COMES BACK HERE FOR THE ALL OPIOID FOR ALL FUNDS.

IN OTHER WORDS, IF THERE'S $45,000, JUST FOR THIS FIRST ONE, WE KNOW THAT THERE MAY BE MORE COMING THAT WHETHER IT'S A NON-PROFIT OR A FOR-PROFIT THAT IS DESIGNATED BY THE COMMUNITY GRANTS COMMISSION TO RECEIVE THE FUNDS, YOU WOULD WANT TO HAVE THE FINAL SAY OR IS IT ONLY BY EXCEPTION, IN OTHER WORDS? ONLY BY, FOR THE, FOR-PROFITS.

I, I WAS INTERPRETING AS JUST FOR THE FUNDS TOTAL IN GENERAL.

OKAY.

IN GENERAL.

MM-HMM.

, THAT, THAT, THAT SOLVES EVERY CONCERN UP HERE.

OKAY.

'CAUSE I, I DO THINK YOU'RE GONNA SEE SOME UNIQUE REQUESTS YEAH.

THAT ARE NOT TYPICAL TO THAT.

WE'LL PUT ON, I'M JUST, IF WE PUT IT ON THE CAS CONSENT AND WE CAN PULL IT DOWN.

YEP.

JUST AS A NOTE, UH, EDUCATIONAL PURPOSES, UH, I HEARD A STORY THAT ONE OF THE MAJOR DRUG MANUFACTURERS IS EITHER FILING OR CONTEMPLATING FILING BANKRUPTCY IN AN ATTEMPT TO GET OUT OF THE SETTLEMENT.

MM-HMM.

.

SO NOT SURPRISING, WHICH SUPPORTS MY STATEMENT ON SPECULATIVE AS TO WHAT WE WILL HAVE TO WORK WITH.

BUT I'M FINE WITH THE COUNSEL MAINTAINING THE CONTROL AND ABOVE.

OKAY.

SO THIS IS NOT ON CONSENT, SO WE'LL HAVE TO PUT IT ON A RESOLUTION AT SOME POINT IN THE FUTURE.

YES.

SURE.

YEAH.

IN THE FUTURE WE COULD PUT IT ON THAT AGENDA.

ABSOLUTELY.

OKAY.

THANK YOU VERY MUCH.

ALRIGHT, WE'RE

[EXECUTIVE SESSION]

GONNA MOVE INTO EXECUTIVE SESSION BASED ON TIME IN ACCORDANCE WITH TEXAS GOVERNMENT CODE SECTION 5 5 1 0 7 1 CONSULTATIONS WITH ATTORNEY ON ANY WORK SESSION, SPECIAL SESSION OR REGULAR SESSION ITEM, UH, REQUIRED AND CONFIDENTIAL ATTORNEY-CLIENT ADVICE NECESSITATED BY THE DELIBERATION OR DISCUSSION OF SET ITEMS. SOLID WASTE HAULING RECYCLING AGREEMENT NEGOTIATIONS 5 5 1 0 7 1 ENCORE BLOOM DALE SWITCH STATION, SECTION 5 5 1 0 8 7.

PROJECT 2 0 0 9 TUBS, BREWERY AND ENTERTAINMENT DESTINATION.

AND THERE WILL BE NO ACTION AFTER, UH, EXECUTIVE SESSION.