we appointed through Council um several months ago and Freez and Nichols came on board uh last summer um as our Consultants to actually start start this process so we did go through the the formal approval process the contract process and everything else last summer but this is it's been a little while so now we're just bringing back the diagnostic report which really kind of lays out uh the work to be done over the next 18 months councilman horn thank you um right now you're producing the Diagnostics report which is basically I'm trying to get an idea what is included in that report is it or we showing the discrepancies between the zoning and the subdivision ordinance within those two entities and the comprehensive plan is that what we're looking at correct on on a on a higher level what we say is the these discrepancies or these things that we've identified in the report these are the things that we want to address in in the rewrite so we all on the same page where we know that whether it's addressing the parking or consolidating some of the zoning districts we all know that this is a path that we want to move forward with right and I and that I suspect is a Herculean effort between you you know you and our committee that we put together and staff now the question I have for staff is that now that we have a relatively speaking a new Planning and Zoning Board or commission with new members and they're still counting on the existing zoning ordinance existing subdivision ordinance and the existing comprehensive plan are we going to be able to provide that diagnostic tool to them as another element that they can use to make better and more informed decisions with regards to zoning cases the zoning cases will still largely rely on the comprehensive plan and other policy documents that we have the doc the this diagnostic report is really creating a road map for us to update the zoning and subdivision ordinance so it's trying to tell us what are our goals what are we trying to accomplish through this next 18-month process as we write we are going to be checking in both with the Planning and Zoning commission and the city council throughout that process this is kind of our our first step after the Contracting uh this is our first check-in with you okay sorry go ahead again I'm just trying again I know there with the new commission new members having to look at the two separate ordinances I'm talking about zoning and subdivision and then uh also taking into uh account the comp plan which took a a large effort um anything that we can provide those decision makers with elements that help their job a little easier because some of these are you know complex we have a lot of plan developments going on on we have a lot of uh revisiting of existing plan developments so I'm hoping that we're able to have something as we move through this process that you know I know we still have to accept those elements as as a uh Council but it certainly seems like it be a tool a handy tool to have as they make those decisions and I'm just bringing that forward as a suggestion and they do have that report the other benefit we have is the two most recent appointees um Mr bender and Mr lingenfelder both have a lot of experience Mr Bender's been on the Planning and Zoning commission and Mr L Lingenfelter while he hasn't served in Plano was on the Planning and Zoning Commission in mckin so they're both you know getting up to speed very quickly council member rad Deli thank you mayor thank you for that presentation uh just a couple of uh quick questions the first is uh at a Joint Council and pnz meeting uh maybe two or three years back I know there was discussion about uh conforming uh zoning that's on the ground to the comprehensive plan and I was wondering if that is part of this rewrite process or for the zoning ordinance or if that is a totally separate process uh just wondered how those two go together Pro proactive rezonings would would would come after the the rewrite of of the of the if we put it together a UDC we'll call it the unified development code and so that would come come after the adoption of that okay gotcha well thank you very much so that that's kind of not uh not part of this process at this time that would be a subsequent step okay gotcha thank you because I didn't see it diagn report and I just wanted to make sure we weren't you know missing that opportunity so it's sequential and then the other thing I just wanted to underline is that I saw in the diagnostic report the discussion about parking and that is something that I think is is probably one of the most frequent pieces of feedback we get about uh our zoning ordinance requirements and so I think it's great that we're taking a hard look at that thank you okay is everybody uh everybody okay with the uh acceptance of the diagnostic report okay all right thank you very much next item uh item three streets Bond referendum presentation Karen good evening Karen Road Whitley budget director Tonight is the last of our staff presentations regarding the May 3rd 2025 Bond referendum that right now totals 700 million the streets portion of the bond program that staff recommended is 342 million after tonight uh on Friday I am expected to get in all the boards and commissions reports and recommendations they will all be packaged starting January 13th the city council will start deciding which projects move on to go before the election good evening Council I'm Abby Owens director public works so I was going to highlight for you what is in our proposed streets section of the bond reference om so this is an overview slide of all the different elements in here and this is public works and Engineering is shown in this section the Public Works requests are the top two it's about 130 million for arterial Concrete Street repairs and overlay and residential street and Alley is around 92.75% in addition to that the survey um that's completed one of the questions asked about perception of current servicing level of the streets so for thorough fairs residential street repair alley repair and also sidewalk and as you can see it's about not enough to about right amount is kind of right where we need to be and the right amount is the majority of them so we feel that the dollars that we're asking for is going to keep Pace with what we're needing on top of it's about the right threshold for what the community can um can handle so our street network age as you can see from this graphic red is going to be our older streets and these are the two sections that Plano has grown out from the average Street um about 50% of our streets are over 30 years old and are needing those constant repair and maintenance in public works our goal is to do pavement maintenance and repair I know you all have seen this slide before so our goal is to stay in that green line and the Orange Line the black line depicts the average deterioration of the street over time and we want to provide preventative maintenance treatments to stay as close to green and in the orange as we can um if we aren't able to keep up with that street and do panel Replacements and maintenance then that's when it would fall into reconstruction at that moment is when we would hand the street over to engineering and ask them to do the full reconstruction and design not only is that very expensive but it's also very intense and causes more delays and impacts to traffic as well this is the overall square footage replaced by Public Works per year as you can see we had a significant influx in 22 23 and 22 23 24 and that is a result of the bond package that had passed in 2021 so you see we did just over 8 million square feet of payment repair um we have touched a lot of streets and made a lot of repairs over the last few years for the arterial Street reconstruction um the on the left- hand side is a map that when we had our streets inspected in 2020 and 2021 um it's a contractor that goes through and does the ratings of our streets you can see what the average scores look like for each of the SE segments and as you've seen before we will go through and remove panels that need to be replaced and then the concrete is poured back and ultimately we'll put down an Emulsion layer to protect the street and then have the ultra thin overlay on top of that um we use cograph as our asset management system the system uses the different types of improvements that we do the streets to estimate what the street score is while we wait for in inspections which occur about every four to five years and you'll see here whenever we complete a contractor repair on the road or whenever we complete the overlay the system autoc calculates for us and you can see we've made some significant impacts in the street network over the last four years the 2021 bond package we estimated it was going to be about $2 million per mile to do the repair and then the overlay um we have built in cost escalation for the 2025 Bond we estimate the concrete repair costs will go about 8% a year based on what we've seen and overlay because we really only have 2 to three years of overlay data we think it's going to be about 10% increase so the average cost per mile now is going to be closer to 3.45 over the entire bond package um we plan that with 130 million we think we could achieve about 38 miles and if you look at the graph and where we're looking that would be on an average about 9 miles per year um and these are the areas that we think that we will have concrete ready and uh for repair and then also the overlay um the 2021 bond package we estimated we would get to to 50 million or to 50 miles and we're right around 45.6 right now with some of the ones that originally had been planned for 23 24 had to be moved to our summer of 2425 this is our map of where we think that this Bond funding would be spent the green is where we've already completed the blue is where we're planning with current bond funds and then the gray is where we will be heading next for repairs and overlays um this is subject to change depending upon any sort of development projects that are going on um as engineer has intersection Improvement projects so we move around based upon where the pavement can be repaired where it's needing repair and then where we can overlay we do avoid areas that we know we're going to have to be having a sewer line replacement or a water line replacement coming up so that we don't have to do concrete repairs twice for residential we do Residential repairs in areas that we call zones um and our goal is to get to every Zone about 20 to 25 years depending upon the need in that area when we go to these zones we will do repairs on all the streets the alleys and the sidewalks to make sure that we're meeting um the needs of the community in that area but also any ADA requirements with the addition of ramps on average each one of our projects which you all have seen come before you on the council agendas cost about $5.3 million usually it's about two zone or two projects per zone so with this funding we think we'd be able to get to about eight zones and this does have cost escalation increases built into it as well and this is our neighborhood map um any of the items that you see that are in that bluish teal color are places that we have not been yet the red dates highlight the average age or the average date that the street was constructed in those areas and we monitor them to see when we might need to be going back to there an example is j11 originally that was on our plan that we thought we'd be getting to this year but after driving that area the streets and alleys and sidewalks are in relatively good condition so we're not sure that we need to do a Zone sweep there we think that one of our requirements contractors could go and handle the needs that we have there so we evaluated based on the condition of the area and then what that um timeline looks like to be able to get out there to complete a project any questions on those if not I will let Caleb Thorne he'll come take on Abby has a quick reminder can you remind us uh when we are projected to run out of bond funds for streets so we have currently programmed all of the bond funding for us will be spent this fiscal year we'll have completed all of our projects that we anticipated all right uh Caleb Thornhill director of engineering and I've got a few slides to go through as Abby mentioned a engineering project will occur when we are replacing the asset not just repairing it so all of our projects will be a full replacement of the asset uh so the first one we have is alley reconstruction 6 million that's approximately about six miles over that uh bonds the bond term uh this is a new new one that we did not have in the last Bond uh this is uh RightWay reservation and construction and so with our new Street design standards we've indicated some streets in the downtown area that we would uh like to add and to improve circulation to improve the downtown function and so with some recent legislature changing we have to set aside funding to include those on our street design standards so we are setting aside that funding for these projects uh depending on the development in downtown uh Bridge repair and replacement every year we do a repair project uh this is actually a replacement this is the Shiloh Road uh reconstruction that we recently uh completed uh we added two lanes but we had to replace the bridge one because of the age but two more importantly because of the drainage uh the drainage in the area the existing Bridge was not adequate was not at the right level it needed to be to meet the drainage for the creek so uh with it we replaced uh the existing bridge and then added the new bridge because of the widening of the project intersection improvements always one of our funnest projects uh intersection improvements there's two main reasons we do those one is to relieve congestion uh impr improve traffic capacity uh but more importantly if we have a safety concern at these locations uh if there's a sight distance issue a geometry issue with the intersection uh so typically these will involve adding uh additional Lanes dual lefts or right turn Lanes uh say them jokingly they're our funnest projects because they usually involve easement acquisition and on arterials at these locations it's sometimes challenging to get easements and then of course we've got tons of franchise Utilities in these area and unfortunately they uh tend to create the biggest obstacles for us residential and collector Street reconstruction so like Abby mentioned uh when we're coming in here we're doing a full replacement so from RightWay to rideway this an example Russell Creek Drive reconstruction where we've replaced the sidewalks and the street uh several time or uh more often than not we'll also look at the utilities if there's any storm drain improvements water or sewer improvements as well with these screening wall reconstruction again another one that we partner with the public works uh department on these Public Works will replace the bricks if they're falling or failing uh but if we have a structural issue or a safety concern with the wall the condition of it we'll do a full replacement uh and that includes the addition of new peers for hopefully those walls that will last uh for anywhere from 30 to 40 years sidewalks uh this is a great picture our team got with the Drone uh this is the new sidewalk along Plano Parkway we had two Bridges and this is when they were setting one of their Bridges but these this category is for the Reconstruction of sidewalks or if we're filling in gaps or voids and locations throughout the city where we uh need sidewalks traffic improvements uh this is a huge initiative that we've undertaken over the last few years uh we had this item on our 2021 Bond and we have it again on our 20 25 uh you can see there the list uh the picture that you're looking at is a traffic control cabinet kind of the brain of an intersection uh we're replacing right now all of the cabinets throughout the city uh we're also replacing different components the traffic controller uh we're adding vehicle detection at the signals we're adding CCTV uh we're also adding fiber to improve Communications to our signals to uh so that our team can rely on that information and get it quicker and better and uh we're real excited about the the improvements coming with this and water M rehab uh pavement and sidewalk repair so this is another one that we did not have on the 20 21 bond package uh the project you see there is the Parker Road um that was a water main project uh but we replaced nearly one lane mile of pavement with the Reconstruction of that water main so so this is a category that we added this year because a lot of our water projects include a significant amount of pavement repair and uh we don't want to exhaust the water fund for pavement repairs so we've added this item for this year believe that is the last one just a summary so I'm happy to answer any questions you may have council member Prince you have a question on the traffic signal upgrades updates I know when we had the um big ice storm and we lost electricity we had some issues throughout the city of all of the traffic signals just going dark right so there wasn't the flashing it caused big safety concerns will any of these um upgrades address any of those challenges have some sort of battery power anything that would help in that sort of emergency if we face that again yeah so I don't know if Abby wants to add anything but we do have battery backups at those locations so each of our signals has a battery backup the unfortunate part is I think there's an it an hour or do you know the timeline four hours four hours so that wasn't long enough so unfortunately in those situations if we don't have power restored uh we do have I think it's 30 temporary generators that we can deploy to critical areas uh unfortunately with that storm and the outage it's there's only so much that we could do with that okay thank you Council M Williams thank you and this isn't really a question but thank you Caleb and Abby um this is um I feel an necessary to use this opportunity to talk about the maintenance road map that I've uh been talking about for a while um I don't think anybody likes the road construction but I think everybody recognizes the need for it um our property tax is broken up into two components maintenance and operations is one interest in syncing which should really be called Bond debt is the other um we are necessarily uh looking at issuing a lot more Bond debt to take care of our roads but because we are built out we're now in the business of maintaining our roads and I believe that we really need to be maintaining our roads under the maintenance and operations baked right into the word portion of our property tax rate and the biggest reason for this is currently in 2024 we're spending about $25 million a year just in interest on our existing bonds when these retire and we issue the new bonds based on next year's election we can expect that to go up just based on current rates as opposed to the last Bond is issuances and and it's a much larger bond package than last time as well so over the next many election Cycles it can't happen all at once but the next I'm sorry not election Cycles the next many budget years budget Cycles that's what I meant to say the next many budget Cycles I would like us to shift as much of the maintenance burden from the bond column of the property tax rate to the maintenance and operations column as we can so that in the future we're saving 25 plus million dollar a year um and we can purpose it to well we could put it right back into our roads thank you so as a reminder and just you know adding to to that conversation currently we're spending about $110 million a year in um in roads and that is to to address uh the booming growth that we experienced in the 70s 80s and 90s um now has the echo effect that we've talked about of now needing significant maintenance repair and even replacement now 30 and 40 years later depending upon the road quality and construction the amount of traffic all sorts of things along those lines um but you know if we take that1 $110 million and then extrapolate it out for inflation and everything else um you know those funds have to come from from somewhere and whether it's debt or whether it's operations um I think what we see is that the um the repairs are are requested by our citizens to make sure that they get done and on which side of the equation um is really a council choice but I think that with our 3 and a half% um cap that we have on on Revenue to try to get to that would require either a um an election by the citizens or it would require maybe a series of Elections by the citizens in order to authorize that um with all the other repairs that we have um and I think those are Council choices to to consider those are things that again moving from debt to cash is is um you know we understand the the uh challenges and and the and the uh advantages of that but those would be Council decisions for uh for future budget discussions okay thank you for for that Bond report next item is consent and regular agendas is there an item a council member would like to remove council member horn yes please U Mr Mayor I'd like to remove item C for individual consideration okay thank you council member Riad Deli thank you Mr Mayor I'd like to remove item I uh the investment policy for individual consideration okay thank you and mayor protim um mayor I like to remove uh item number k for individual consideration all right lots to do lots to do cik all right uh Council items for discussion or future agendas all right we will take a recess and uh be back at 7 o'clock [Music] [Music] [Music] [Music] [Music] [Music] for e [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] I now declare that the city council is reconvened in an open session that all members are present we'll begin tonight's regular meeting with the invocation led by Ashlin Stanley student Ministry pastor with the Chase Oak uh Chase Oaks Church Legacy campus and the Pledge of Allegiance and the Texas pledge I am so glad to have the Cub Scout Pack 1259 from Harrington Houston and Wells Elementary School schools we've missed having the pledge led by you guys so if you all stand uh for the invocation wonderful thank you if you'll bow your heads with me God thank you so much for this opportunity to gather Lord and um I just pray that everything spoken of this meeting spoken at at this meeting Lord is fruitful and is honoring to you and and father I just pray that you bless each individual that is here this evening and that wonderful and productive conversation is able to take place in Jesus name amen come on we're so happy to have you lead the pledge all right you guys ready yeah okay let's face flag you guys start please join us as we recite the Pledge of Allegiance and the Texas pledge I pledge Al to the flag of the United States of America to the stands one nation under God indivisible with liy and jce for all the Texas flag I Al to the T God indivisible I want you to have one of my my lucky little key ranks put you can put them on your backs or around your wrists yeah you guys know you know what to do okay all right I am I you're welcome thank you guys let's take a picture real quick you guys want to just flip turn around everybody just turn around and back up oh front row we got the tall ones in the front oh how does that happen okay there we go perfect guys are great thank you guys thank you appreciate it thank you thank you appreciate [Applause] it we're we're also uh thrilled tonight to be back in our chamber we've been out for a while but uh it's a beautiful beautiful chamber and we're really proud of it so it's it's obviously a pleasure to have our Cub Scout group to do the pledge and we are thrilled tonight to have our first Proclamation since we've been back here and we've been waiting desperately to be able to do this and so in honor of Hesley Rivera the 2024 gold medal winning Olympic Team USA Gymnastics I would love to recognize Hesley and her family Hesley come on up Henry Rivera Heidi Rivera and Hanley Rivera so it is truly uh our honor at the city of Plano to recognize you Hesley with a proclamation and so I'll read it really quick whereas Henry Riv and Heidi Ruiz are the proud parents of Hesley Rivera who was born June 4th 2008 in hackin saac New Jersey Hesley became interested in gymnastics after attending a friend's birthday party that was held in a gymnastics facility in 2013 is this true okay Hesley and her family moved to Texas in 2021 so she could train under Valerie luin where as Hesley competed in the 22 winner cup where she placed third in the all-around final as a result she was selected to compete at the dtb Poke call Team Challenge while there she helped the USA win gold and in July of 22 she competed at the US classic where she finished second in the allaround won Gold on the balance beam silver on the floor and finished fourth on the Vault so whereas in 2023 Hesley complete competed at the 23 winner cup where she won the all-around competition placed first on the balance beam and floor exercise and as a result in winning the competition she was named to be on the junior world championship team and was the 23 Junior National Champion she became age El eligible for the senior level competition in 24 and made her debut at the 2024 winter cup placing third in the all-around and tying for first on the balance beam on June 30th 20124 Hesley won the wideopen competition for the fifth spot on the USA women's gymnastics team for the Paris 2024 Olympics Hesley competed at the 24 Olympic Games winning a gold medal as her member of the team USA's women gymnastics now therefore I John muns May of the city of Plano Texas do hereby Proclaim Tuesday December 17 2024 as Hesley Rivera day in Plano and I do hereby encourage all citizens to join me in the Plano City Council in congratulating Hesley congratulations thank you I want to take a picture with with Hesley and the family but I want the council to be able to come and take one too so let's take one real quick and then uh Council I want you to come on up too okay here we are thank you come on up come on up real quick congratulations y'all thank you thank you thank you Cong good seeing you again how are you all indeed congratulations good to see you congatulations I also want to uh let everybody know and I'm sure many of you were there for our uh Christmas parade last Saturday and I heard it was wonderful I unfortunately was out of town but I do want to thank uh uh the rotary rotary clubs for all their organization and help it was a great event and uh we can't thank you enough we look forward to uh next year okay moving on to the consent agenda the consent agenda the consent agenda will be acted upon in one motion and contains items which are routine and typically non-controversial I items may be removed from this agenda for individual discussion by a council member the city manager or any citizen the presiding officer will establish time limits based upon the number of speaker requests Mr Mayor I move we approve the consent agenda as presented except for uh please pull out item c i and K for individual consideration okay second thank you have a motion and a second to approve the consent agenda with the exception of CI and K please vote motion passes 8 to zero item C sorry I'm moving too fast okay item C to approve an increase to the current awarded contract amount of 270,000 by an estimated amount of 270,000 to exercise an additional six months renewal for renewal term for management of all secondary employment activities of Plano police officers from extra Duty solutions for the police department and authorizing the city manager to execute all necessary documents council member horn thank you uh Chief thank you very much this is a item for us to continue with the uh funding of uh the Eds subcontract I just really wanted just kind of before we went to do the approval of this item just had ask you a few questions if that's possible absolutely sir uh how long has the department actually been using the Eds system and we signed on with EDS in June of 2023 we started using it we went live with it in April of this year okay and are you using it just for scheduling or are you using it for are you using it for scheduling correct we we are using it to manage off-duty employment currently the off duty we're not using it for your regular Staffing is that correct cor uh we are not using it at this time we are building out the models that we need to put that in place okay so you're currently working on the model to try to fit it into your normal routine scheduling of your officers correct yeah so I think what you mean is our our regular on duty scheduling yeah we're working on the on on the you know filling the spreadsheets or the databases that we need to get that in place now when do you when do you expect that to be a fully functional I I think we can have the piece done for just scheduling probably by the uh end of February maybe March uh but uh ultimately our goal is to tie that into people soft we're going to need ts's assistance assistance with that they're aware of that and I'm not sure how long that piece would take okay so far with the scheduling with the extra Duty have you discovered any bugs that with the system no no there are no bugs I think um that that I that that I've come across there there are things that we have to call them Direct on occasionally and one of the things I like about this company is they've got 24-hour support when we can call them uh uh and there are some jobs that come up that are just outside the window very unique one-off types of things uh but uh yeah it's pretty much running uh as designed okay now the last question I have uh we are talking about another $270,000 uh have you found any value in the software with the management of the extra Duty uh scheduling right now and in other words we've already spent 270,000 since April oh I mean to get this approved and start using extra Duty scheduling it seems like an awful lot of money to for I I I don't know the scope of the work here on how much Ed how much extra Duty the officers are are you know how many how many how many times do we use extra Duty Officers I know we use them a lot on Sundays special events uh we use them for uh our balloon festival we use them for all the events we have in town sponsored by this city are we finding value in this EDS program right now yes absolutely we are yeah we have we and uh you mentioned the $270,000 that we do know that we are paying and we are and that is a lot of money however we don't know the value of how much we were spending in time before we got this I've already been able to utilize two sergeants who were spending all their time we call them ad Patrol administrative Sergeants they spent most of their time in the day managing call-in jobs that were coming in we don't have to do that anymore that's handled by EDS the coordinators before that that would have the officers do the schedules for the individual employers they typically do that on duty time they almost have to to get it done and uh except for the hospitals and the uh churches and probably the we're going to have to add the Plano Event Center to that too we're finding out uh the coordinators don't have to do as much in fact we don't even have them anymore the all of that is handled by the company so we don't have officers on their while they're at work having to drive someplace to go pick up a paycheck and and that wasn't always the case some of our employers were paying the officers directly into their bank account but certainly not all of them and so those officers have to go and the day that they work is typically not the day that they get paid unless it's a cash job and we wanted to get away from those too so typically the check is cut later now they've got to go pick that up all that's all that's we've done away with all of that it you will be rare now I think to find a police department in north Texas that's not using some software application some third party vendor to manage off duty employment because what we're doing here in Plano is not unique in itself although we may have a lot more than other places but uh because of some of just the nature of our city there are some cities that have more than us like Frisco too of similar size but most cities have some off-duty employment and they're using most cities are using a third- party vendor to help them manage that situation okay and just for clarification we think we'll start using the Eds off for for managing the schedules of our on Duty Officers sometime in April do we think yeah probably sometime in the third quarter I I'll just say that we we we can have it done probably sometime in the third quarter on actually using it for scheduling that won't won't address our payroll issue until we uh get that connected to another application that the city is already using but uh but for on duty scheduling we think we can get that done in the first quarter perfect thank you very much thank you sir any other questions Anthony did you have a question on this item uh yes just a quick okay sorry convers I was just making sure it wasn't yeah I know I've got item ey coming up as well thank thank you for making sure I'm on point mayor I appreciate that no I was just going to make a quick comment that I I I had a phone call with city manager israelson yesterday and uh um I I'm I'm in favor of approving this but I also think since uh the scope of this has kind of changed you know over time we were initially just looking off duty now we're including on duty uh initially the the uh users were going to be paying for it now it's a a city budgeted expense I think just with those kind of changing parameters over time it is a good idea to you know to go through an RFP process you know a formal process with those new parameters uh in the near future and it sounds like that is our intent and uh uh my my hope is that just because uh all eight of us have put so much time into learning about this that hopefully uh uh we can get that done before May before some of us uh hang up our hats and ride off into the sunset hopefully we can wrap this up but anyway I just want wanted to put that out there and uh um anyway I'm in favor of approving it is that a motion uh sure I'll go ahead and make that motion second okay I was G to get to you Rick sorry I'm trying all right I have a a motion and second to approve consent agenda item C please vote motion passes 8 to zero all right item I to review and approve the city's official public funds investment policy and providing an effective date all right Mr rodelli okay thank you very much so um I have just a couple of things I'm going to pass around if y'all could take one of each but I promise I we keep this quick uh we we've been discussing our investments promises promises let's see I'm going to do what I did during the budget it's it's 719 uh I'll be done by 724 so so F five five minutes that's uh uh that's the promise but anyway youall remember the discussion we had about the legislative agenda and beneficial amendments to the public funds investment act uh I would also like to Advocate that we make some beneficial amendments to our own investment policy I uh uh I support the uh uh safety liquidity yield uh method of investing the question is not the order of priorities but I think how big of a gulf we have between the second priority of liquidity and the third and final priority of yield um you know for context uh any reasonable returns that we don't harness result in additional taxation because money has to come from somewhere we just heard about the $342 million that we need for streets and uh obviously the the overall proposed bond package right now is at 700 million uh so obviously every dollar that we don't uh uh gain in returns uh has to come from from taxes and also uh you know I think a major issue that I've discussed previously is inflation uh in a high inflation environment like we had for a couple of years just recently uh our Investment Portfolio can lose purchasing power just sitting there and so um given um given those those concerns and uh um just with a desire to kind of keep uh uh our our order of priorities but really say that within those priorities we would like to uh explore opportunities for additional return uh I'm proposing uh two changes I had this printed before um before further conversation with the staff and so the Third change uh I don't think is necessary but the first two changes um on the statement of intent I noticed that uh we talk about uh security we talk about liquidity the daily cash flow demands of the city and we talk about conforming to State and local uh statutes but we don't talk about the why in slide we don't talk about yield at all in our statement of intent and so I'd like to add that in I think the staff made a great point that the uh teacher retirement system of Texas while very safely invested is not comparable to what we're doing so I would take that part out um again this was printed uh uh before uh before getting kind of those final responses but I would like to add it is the city's intent to maximize returns while still adhering to security liquidity and yield principles uh and then this language about recognizing that when the rate of inflation exceeds the rate of return on funds that's tan amount to a loss of capital we're losing purchasing power even if the dollar amount uh in our accounts doesn't go down its purchasing power goes down if inflation exceeds the rate of return so I just think that's important to put in there and then on the second change um uh the way it currently reads on the bottom of page two says the final objective of of obtaining a market rate of return is much less important than safety of principle and liquidity uh so as you all can see the changes I've proposed there I agree that it is less important but I think the the way that it's written currently almost uh dismisses return and I I'd like to place a you know a bit of a higher priority on so I would say it's very important though somewhat less important than safety of principle and liquidity so all three of those goals are important but obviously the the least important is yield but it's still an important goal and I I'd like to to put that out there so that hopefully our actions that are Guided by this investment policy um will will hopefully um pursue a little higher return and uh um you know and then also I added in you know it is the city's intent to to maximize return on investment to the greatest extent uh Allowed by state law including the Texas public funds investment act so um I would also point out that the idea as I talked about with our legislative agenda would not be that this would include that this would change how we invest the whole portfolio but really the longer time Horizon The Five-Year kind of uh uh trunch of funds uh because I I think that uh if you guys look at the second document this is one we discussed this is prepared by the staff and and and something that we discussed um during our legislative agenda discussion um during every 5year period including uh from 1999 to the present including the five years that included the Great Recession uh the S&P 500 has outperformed our Benchmark the two-year Treasury and so I you know to the extent uh uh permitted by state law I think that it would it would be beneficial to try to um well still obviously putting safety of principle first and liquidity second um adequate liquidity for the city's needs to to pursue a little more return and so uh uh I see it's 724 as promised so I I will I will yield the floor and I urge that we make those first two amendments so much of our um public funds our our investment policy is taken directly from the state law so it comes directly from the public funds investment act this this proposal changes some of the language that currently is in the state law state law requires that we invest in what we call Sly which is safety liquidity and yield there is a much lower emphasis on yield because we need to focus on the safety and liquidity because this is taxpayer dollars that we are investing we do not want to lose a dime of them and we're also a pretty shortterm churn if you think about it we have 660 million at year end in our Investment Portfolio we have a billion doll um uh budget so we are spending that money pretty quickly so it's pretty difficult to go out longterm where you're able to pick up a higher yield and you're able to um recoup a loss if you get a loss I mean if you saw today the Dow Jones Industrial had one of the worst um slides in the last few months since 1978 so um you know you know we don't want to take risk in that policy I will also mention that many of our surrounding cities don't even put yield in their policy it's not something they even focus on they so focus on safety and liquidity they're very key so it would be my recommendation to keep the policy as is um and I will answer any questions thank you counsilman Williams thank you um I'm supportive of um trying to increase our yield under the permissible um parameters of the Texas public funds investment act but not at the expense of safety and liquidity um but I think with as we've see as we see in the chart here that councilman Ricky Deli provided there's obviously not no risk in any kind of investment um but sound fiscal practices like we've been trying to employ for many years years can help offset the impact of a slide like we see between 1999 and 2009 there were two significant events during that time and um as long as we are looking to a very long-term forecast not necessarily long-term individual Investments such as other uh long-term bonds but um taking a long-term view of our investments and we can uh get out so to speak in the in sign ific events where it looks like we need to get out and then um reinvest uh regularly during uh upticks then the rest of our fiscal practices can help offset any risk of um those slides mayor protown so um Denise let me just understand you have you had a chance to look at councilman Rick deli's um proposal I have so it it sounds to when I'm looking at the two words that I I seem to see the compare uh the difference is our emphasis is on maximum security and it sounds like councilman Rick deli's emphasis is on maximum returns yes and and they're both maximum so that that's the reason but um the legislated policy as well as our own um policy is to maximize security yes investment yield all those things are also in consideration but maximum security should be the only one that should be emphasized is that what you're saying it's it is going to be our major focus is the safety and liquidity I mean if you recall Orange County years ago went bankrupt because they did not have the liquidity that they needed so they needed to liquidate some assets and accept some unrealized losses and so they all of a sudden became realized the other thing I want to mention is 30 to 40% of our policy is actually bond funds that have been unspent if we get so much build on them that we exceed what we pay the bond holders we have to pay that to the IRS because that's Arbitrage so we can't if we aren't spending those bond funds as fast we and sometimes we don't we try to get them spent quickly so Arbitrage doesn't matter but often we don't and so we this year alone we paid $600,000 to the IRS in Arbitrage because we earned more on our portfolio than we're paying our debt holders I see so in in your in your recommendation B based on um your analysis with the staff is that we continue with the language that we currently have because that tracks the legislative policy with regard to the money that we have that's correct council member Radell thank you mayor uh thank you so much Denise for that great information so and I appreciate you taking a look at at my proposal I just wanted to clarify uh because a statement was made that I'm talking about making yield for first I I'm I'm proposing keeping it third uh I I think safety of capital is first liquidity is second yield is third just like we currently have it I'm just saying the way this is currently written says there's a there's a huge gap between the second goal and the third goal and I would just move the third goal closer to say you know this this still is the third most important it's not as important as the first two but it's also important all three of them are important that that's my intent at least and uh um and and I just wanted to ask uh I know that we typically have about a $660 million you know year-end uh value of our Investment Portfolio um do we know what the lowest uh the unencumbered balance in the portfolio has gotten uh at any point say in the last five or 10 years that's not a statistic we look at and we only do a hard close at the end of every fiscal year so because of that that's the only time we take into account what encumbrances are incum in your budget for the next year okay thank you but then you know typically we have a very significant amount that's not legally encumbered that that I wouldn't call it significant okay I wouldn't call it significant when you've got 40% of the portfolio in bond funds that that's that's legally restricted then you have special Revenue funds that are legally restricted those are Grant funds I mean there's all the Tiff money that's in the portfolio that is also legally rest restricted so you have a lot more legally rest restricted in the portfolio than than I think the average person probably realizes okay gotcha well thank you for that anyway the point I was making though is just I know that we have fiveyear Investments currently uh fiveyear bonds currently and so that's why this great analysis that the staff prepared which by the way I want to be very clear about this also I I think you and the whole Finance team are doing a great job Denise and I'm just I'm saying if we gave you a little more uh I guess Freedom or Direction to within state law and and within Sly principles with yield third to pursue you know while still being very safe a little bit more return you know it looks to me based on this analysis like there might be um you know there there might be opportunities and Council I I think to you know kind of summarize I think Denise is recommending that we move forward with the language but I think the direction for councilman to be able to say you know to staff to to continue to seek um opportunities for yield as general direction is also something that we can accept and continue to look at as staff and whether that is you know reinvestment whether that is an aspect of refinancing and seeking additional yield whatever that might be I think that that direction for us just from a general purpose to to continue to seek yield um where possible where within the the um statutory guidelines is something that that um we're happy to accept mayor Pro did you want to make a mo so with that said um so um based on what Denise has presented that this is required for the legislative policy um I'm going to move that we adopt as is second thanks I have a motion a second to uh approve item I right please vote motion passes 7 one all right item K item K an ordinance to adopt excuse me to appoint an associate judge of the Municipal Court of record of the city of Plano setting the term of office and compensation for the judge and providing an effective date okay mayor protm Mr Mayor we policy to welcome the new associate um into our city of excellence and I wanted to take this opportunity to welcome our new associate judge Shaina Primo um to the city of Plano I don't want it to just be a consent agenda in which we just sort of pass her by uh I do want to recognize her um is if you're yeah thank you so much for standing up I believe that we have a great um municipal court and I hope that um you will remain with us and continue to bring uh more Excellence to our court system and welcome thank you Anthony oh you know I I thought Maria was about to make a motion and so I I was gonna I was going to Second it okay well I I just wanted to Echo those comments and welcome judge Primo to the city of Excellence uh you know I I I think by the way that name Primo you know kind of kind of me means Excellence so we know you will be a Primo judge thank you for that and I will move uh that we uh make this appointment I second that thank you sorry Rick I had you there I have a motion a second please vote motion passes 8 to zero congratulations and welcome thank you next item it is comments of public interest and we did have one speaker signed up but they are not on Zoom okay there being no further business meeting is adjourned [Music] taking make our road safer for everyone remember the life you save could be your own ride safe ride smart Plano