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HERE, DARREN.[1. Call Meeting to Order and Announce that a Quorum is Present]
IT IS FOUR OH TWO AND WE'LL CALL TO ORDER THIS MEETING, THE ADDISON CITY COUNCIL, UH, BUDGET MEETING ON AUGUST 5TH, 2025.AND WE, WE DO HAVE A QUORUM OF THE COUNCIL PRESENT WITH FIVE IN ATTENDANCE AT THIS TIME AND ONE ON HIS WAY.
AND, UH, AS ALWAYS, WE'D LIKE TO START OUR MEETING WITH THE PLEDGE OF BOTH OF OUR FLAGS.
IF YOU PLEASE RISE RE I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA TO THE REPUBLIC FOR WHICH IT STANDS.
ONE A NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE.
FOR HONOR THE TEXAS FLAG, I PLEDGE TO LEAVE TO THE TEXAS ONE STATE UNDER GOD, ONE AND INDIVISIBLE.
[3. Closed Meeting. The Addison City Council will enter a Closed Meeting pursuant to Texas Government Code Sections 551-071 through 090 to discuss the following item(s):]
GO RIGHT INTO ITEM NUMBER THREE, WHICH IS A CLOSED MEETING.UH, THE ADDISON CITY COUNCIL WILL ENTER A CLOSED MEETING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 THROUGH 0 9 0 TO DISCUSS THE FOLLOWING ITEM.
AND ITEM 38 IS PURSUANT TO SECTION 5 5 1 0.071.
SECTION ONE TO RECEIVE LEGAL ADVICE FROM THE CITY ATTORNEY REGARDING 12 GCS VERSUS WESTWOOD SCHOOL ET AL.
AND IT IS 4 0 3 AND WE'RE GOING INTO CLOSED SESSION AT THIS TIME.
OKAY, IT IS 4 21 AND WE ARE COMING BACK INTO OPEN SESSION FROM OUR CLOSED SESSION AND THERE IS NO ACTION TO BE TAKEN FROM THE CLOSED SESSION TODAY.
MOVING RIGHT INTO ITEM NUMBER FOUR, OUR OPEN MEETING ITEM FOUR, OR ACTUALLY WE'LL MOVE INTO ITEM FIVE,
[a. Present and discuss the operations and financial reconciliation for Taste Addison 2025.]
WORK SESSION REPORTS.ITEM FIVE A PRESENTED DISCUSS THE OPERATIONS AND FINANCIAL RECONCILIATION FOR TASTE ADDISON 2025.
I'LL SAY A COUPLE WORDS BEFORE ABBY COMES UP, UM, WHERE WE DE CERTAINLY WANTED TO GET THIS PRESENTATION, UH, TO YOU BEFORE WE GOT INTO THE BUDGET DISCUSSION.
WE DIDN'T HAVE ROOM ON PREVIOUS WORK SESSIONS.
UH, SO THIS PRESENTATION'S REALLY TALKING ABOUT OBVIOUSLY THE EVENT THAT WE JUST HAD THIS YEAR.
WHAT I WILL ASK IS, UM, AS WE HAVE DISCUSSION ON THIS PRESENTATION, AS WE KIND OF SHIFT TOWARD HAVING FUTURE DISCUSSION OF WHAT THIS CASE LOOK LIKE NEXT YEAR AND FUTURE YEARS, IF YOU COULD HOLD THAT DISCUSSION FOR THE BUDGET.
WE HAVE ADDITIONAL SLIDES IN THE BUDGET PRESENTATION WHERE WE TALK ABOUT THE FUTURE OF TASTE AND WHAT WE'RE LOOKING AT FOR THE NEXT YEAR.
SO I KNOW THAT DISTINCTION WILL BE A LITTLE TOUGH AS WE HAVE THE DISCUSSION, BUT AS MUCH AS WE CAN, IF WE CAN KEEP THIS DISCUSSION ON TASTE THIS YEAR AND HOLD THE OTHER DISCUSSION JUST FOR AN HOUR OR SO UNTIL WE GET TO THE BUDGET DISCUSSION THAT WE'RE GONNA.
GOOD AFTERNOON, MAYOR COUNSEL, ADAM MORALES, DIRECTOR OF SPECIAL EVENTS AND THEATER.
I'M HERE TO DO A TASTE ADDISON RECAP, JUST AS AN OVERVIEW.
WE'LL LOOK AT THE PAST, WE'LL GET SOME OF THE HISTORY OF THE EVENTS AND SOME OF THE OPPORTUNITIES.
WE'LL LOOK AT THE PRESENT, SPEAKING OF 2025, AND THEN WE'LL DO A TINY GLANCE INTO, UM, THE FUTURE WHEN WE GO THROUGH THE HISTORY OF TASTE ADDISON.
UM, THE EVENT WAS ESTABLISHED IN 1993 AS A FOOD AND MUSIC FESTIVAL DESIGNED TO GENERATE TOURISM SHOWCASE THE THRIVING RESTAURANT SCENE, AND IT ACTUALLY STARTED AS A ONE DAY EVENT WITH 25 PARTICIPATING IN RESTAURANTS, THE DIXIE CHICKS AND 10,000 PEOPLE IN ATTENDANCE.
THE EVENT WOULD GROW TO BE A LEADER IN THE REGION WITH UP TO 70 PARTICIPATING RESTAURANTS, TOPNOTCH HEADLINES AND OVER 75,000 ATTENDEES OVER THE THREE DAY COURSE OF THE EVENT.
FOOD HAS ALWAYS BEEN THE HERO.
IT'S ACTUALLY IN THE NAME OF THE EVENT ITSELF, UM, BUT IT'S THE MUSIC THAT REALLY DROVE THE ATTENDANCE AND ULTIMATELY THE HOTEL STAYS.
IN 2014, TAY ADDISON TURNED 21.
WITH THAT LEGAL, UM, AGE CAME THE INTRODUCTION OF FOR COURT, WHICH WAS USED TO, UM, HELP EVOLVE OUR BRAND AND FOCUS ON THE 21 AND OVERCROWD.
IT ALSO WAS DESIGNED TO SHOW OUR COMMITMENT TO THE CULINARY AND PERFORMING ARTS THAT, UM, WAS ESTABLISHED IN ADDISON AT THE TIME IN 2020, IN 2016, TASTE ADDISON WAS BACK.
UM, THE EVENT IN 2016 WAS DESIGNED TO TAKE THE SUCCESSES AND SOME OF THE BEST PARTS OF FOR CORK AND INTEGRATE THEM INTO TASTE.
ADDISON TURNING OUR FOCUS BACK TO COMMUNITY AND THE RESTAURANT SCENE HIGHLIGHTING ALL OF THE OPTIONS THAT EXIST, WHETHER IT'S OUR FAST FOOD, OUR FAMILY, UM, OUR FAMILY RUN BUSINESSES, OR EVEN THE, UM, ELEVATED EXPERIENCES WITH, UM, OUR CELEBRITY CHEFS.
IN 2020, THE WORLD WAS DEVASTATED WITH COVID.
UM, COVID HAD A MAJOR IMPACT ON THE HOSPITALITY INDUSTRY AS A WHOLE.
UM, THE INDUSTRY TODAY IS FOREVER CHANGED.
UM, COVID HIGHLIGHTED SOME STAFFING CHALLENGES AS WELL AS SUPPLY CHALLENGES FOR THE SUPPLIES THAT WERE USED TO ACTUALLY RUN AND MAINTAIN A RESTAURANT.
AND AGAIN, THE IMPACT OF COVID IS STILL
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PREVALENT TODAY AS FAR AS THE HOSPITALITY INDUSTRY GOES.IN 2024, WE IDENTIFIED A NEED TO REBRAND AND REIMAGINE TASTE ADDISON.
UM, WE WERE IDENTIFYING AND RECOGNIZING THE CHALLENGES THAT COVID BROUGHT WITH REGARDS TO OUR RESTAURANTS.
WE ALSO IDENTIFIED THE INCREASED COMPETITIONS IN AND AROUND THE REGION.
WITH RESPECT TO FESTIVALS AS A WHOLE, BACK IN 1993, WE WERE THE ONLY GAME IN TOWN AND WE ACTUALLY WERE A LEADER IN THE MODEL THAT OTHER AREAS IN THE REGION HAVE FOLLOWED WITH REGARDS TO THEIR FESTIVALS.
UM, WE ALSO STARTED TO LEAN INTO THE RESTAURANTS AND REALLY HEAR ABOUT THEIR CHALLENGES AND AGAIN, THE CHALLENGES THAT THEY'RE FACING.
ALSO, COVID, A LOT OF 'EM WERE STILL FACING THE CHALLENGES OF STAFFING.
THEY WERE ALSO, UM, FACING THE CHALLENGE OF BEING OUT OF THE FESTIVAL, BUT ALSO KEEPING YOUR BRICK AND MORTAR OPEN AT THE SAME TIME.
RIGHT? WHAT WE DECIDED IN 2024 IS WE WERE GONNA LEAN INTO THE FOOD COMPONENT AND WE WERE GOING TO REESTABLISH TASTE AS A LEADER IN THE INDUSTRY WITH BOTH FOOD AS WELL AS SOME OF THE OTHER EXPERIENCES ON THE GROUNDS TO INCLUDE MUSIC AND THE ARTS.
AND IN 2025, THIS PAST YEAR, TASTE ADDISON TURNED 30.
WHEN WE LOOKED AT SOME OF OUR GOALS FOR 2025, THEY WERE SIMPLE AND MANUALLY STEM FROM OUR 2024 PLANNING.
IN 2024, WE LOOKED AHEAD FOR THREE TO FIVE YEARS ON WHAT WE WANTED THE EVENT TO BE, AND THEN STARTED PUTTING SOME PARAMETERS AROUND WHAT WAS REALISTIC FOR US TO ACHIEVE.
AND SO IN 25, WE WERE BUILDING OFF OF 24.
UM, IF YOU REMEMBER IN 2024, WE HAD A STORM THAT HIT THE AREA THAT NOT ONLY IMPACTED THE TOWN, BUT IT OBLITERATED THE PARK FOUR DAYS BEFORE GATES OPENED.
AND SO A LOT OF THE PLANNING THAT WENT INTO 2025 WAS A REPEAT OF 2024, IF YOU WILL.
WE WERE SURVIVING THE STORM, SO RECRUITMENT OF OUR RESTAURANTS, WE WANTED TO MAINTAIN OUR 20, 24 LEVELS.
WHEN WE WENT OUT TO TALK TO THE RESTAURANT COMMUNITY IN 2024, WHAT WE HEARD WAS WE'RE NOT MAKING ANY MONEY AT THE TIME.
IN 23, WE WRAPPED UP WITH ABOUT 2025 RESTAURANTS, SOMETHING AROUND THERE, UM, RESTAURANTS THAT WE WERE WORKING TO RECRUIT FELT LIKE THE EVENT HAD BECOME STAGNANT, AND WHAT WERE WE DOING TO CHANGE THAT? SO IN 2024, YOU SAW A COMPLETE REVAMP OF WHAT THE EVENT LOOKED LIKE, AND WE KEPT ALL OF THAT GOING INTO 2025, SURVIVING THE STORM AS WELL.
SO WE KEPT OUR GOAL TO APPROXIMATELY 50 RESTAURANTS THAT WE WERE HOPING TO MAINTAIN AND RECRUIT FOR 2025.
FROM A PROGRAMMING PERSPECTIVE, WE KNEW THAT TO INCREASE ATTENDANCE, WE NEEDED TO OFFER PROGRAMMING THAT TARGETED ALL DEMOGRAPHICS.
WHAT WE SAW IN 2023 WAS A LOT OF OUR EGGS WERE IN OUR LINER BASKET, AND IN 24, YOU SAW THE INTRODUCTION OF A LOT OF COMPONENTS THAT TARGETED DIFFERENT AUDIENCES TO HELP INCREASE THAT OVERALL ATTENDANCE.
AND YOU SAW THAT SLIDE OVER IN 2025.
FROM A FINANCIAL PERSPECTIVE, WE WANTED TO CONTINUE TO REDUCE THE TOWN INVESTMENT.
WE ALSO RECOGNIZED THAT THE FORMAT OF THE EVENT ITSELF DIDN'T LEND ITSELF TO THE REVENUE STREAMS THAT ARE TIED TO THE OTHER EVENTS.
AND SO THAT WAS ANOTHER GOAL OF OURS, TO HELP OUR RESTAURANTS KIND OF GET IN ON THE ACTION AND HELP US FIGURE THAT COMPONENT OUT.
WE ALSO WANTED TO FOCUS A LOT ON THE SPONSORSHIPS AND THE PACKAGES AND THE PARTNERSHIPS THAT WE WERE, UM, THAT WE HAD BUILT OFF OF IN 2024.
WITH REGARDS TO OUR RESTAURANTS, THE RESTAURANT COALITION WAS ONE OF OUR GOALS AFTER GOING THROUGH 2024 AND CASTING THE VISION TO THE RESTAURANTS AND DOUBLING OUR RESTAURANT PARTICIPATION FROM 23 TO 24, WE PAINTED A VISION OF WHAT WE WERE WANTING TO, WANTING TASTE TO GO THE DIRECTION WE WERE WANTING TASTE TO GO IN.
UM, AND WE RECOGNIZED IN 24 THE COALITION WOULD BE IMPORTANT.
THERE ON THE SCREEN YOU'LL SEE THOSE THAT WERE PART OF OUR INAUGURAL UM, COALITION.
THIS ALSO GIVES US AN OPPORTUNITY TO STAY CONNECTED WITH OUR RESTAURANT COMMUNITY YEAR ROUND AND NOT JUST WHEN THE EVENT IS HAPPENING.
WE ACTUALLY HAVE STRUCTURE AROUND THE COALITION.
WE HAVE CAPTAINS AND CO-CAPTAINS, AND THE COALITION IS DESIGNED TO HELP WITH OUR RECRUITMENT.
THEY ALSO TALK TO SOME OF THE NEWER RESTAURANTS OR RESTAURANTS THAT HAVEN'T PARTICIPATED IN A WHILE WITH US, AND THEY MENTOR THEM THROUGH THE PROCESS.
AS FAR AS BEST PRACTICES AND THINGS THAT THEY LEARNED, UM, THEY PROVIDE PRE-EVENT SUPPORT FOR SOME OF THE RESTAURANTS THAT HAVE QUESTIONS OR HOW TOS.
UM, THEY ALSO ARE VERY WELL VERSED, VERY WELL VERSED IN TABC.
AND SO THEY WERE INSTRUMENTAL IN HELPING US NAVIGATE SOME OF THE TABC CHALLENGES THAT WE EXPERIENCED THIS PAST YEAR.
AND THEN WE SEE THEM AS VITAL TO HELPING US WITH THE EVENT PLANNING AND OVERALL STRUCTURE OF THE EVENT AS WE MOVE FORWARD IN 2025, OUR DATES WERE APRIL 25TH THROUGH THE 27TH.
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AT TASTE FOR A WHILE, YOU DO RECOGNIZE THAT THIS WAS IN FACT A DATE CHANGE FROM 2024.AS WE MOVED OFF OF THE JUNE, THE END OF MAY, EARLY JUNE TIMELINE AND PUSHED BACK ABOUT 30 DAYS.
UM, OUR PROGRAMMING STILL STEMMED AROUND EATS, BEETS AND ARTISTIC TREATS.
AGAIN, THIS WAS DESIGNED TO INCREASE ATTENDANCE AND GIVE A, GIVE APPEAL TO, UM, A LARGER AUDIENCE.
THIS ACTUALLY STEMS FROM 2024 PLANNING.
WE DECIDED THAT THE COOKIE CUTTER APPROACH OF ONE SIZE FITS ALL THE RUN OF THE RESTAURANT WASN'T NECESSARILY WORKING, AND IT WAS ACTUALLY A CHALLENGE FOR RESTAURANTS TO SAY THEY WANTED TO PARTICIPATE.
SO WHAT WE DID, WE CAME UP WITH FIVE DIFFERENT WAYS FOR A RESTAURANT TO PARTICIPATE.
AND YOU SEE THOSE LISTED THERE.
WE ALSO INTRODUCED SOME OPPORTUNITIES FOR BEVERAGE EXPERIENCES THAT WOULD TIE INTO THE TASTE COMPONENT AS WELL, SOME METRICS AROUND THAT.
OUR SPEAKEASY HAD 900 PLUS, UH, SPIRITS THAT WERE SAMPLED, AND THE COURTYARD HAD 2100 OUNCES OF WINE THAT WAS SAMPLED OVER THE COURSE OF THE WEEKEND.
WE HAD OVER 11,000 COMPLIMENTARY SAMPLES THAT WERE PROVIDED WITH A TASTING CUT IN VIP AREAS BY OUR PARTICIPATING RESTAURANTS.
CHOCOLATE AND WHISKEY PAIRING WAS A NEW EVENT THAT WE INTRODUCED IN 25.
WE HAD NEARLY 700 TASTE BITES THAT WERE PRE-SOLD WITH OUR CHOW HALL PASS THAT WAS INTRODUCED IN 2024 AND CARRIED OVER TO 2025.
AND WITH OUR BEYOND THE BAR, OUR MOCKTAIL SAMPLES, WE HAD OVER 400 OF THOSE AT 15 DIFFERENT DEMOS.
WHEN WE LOOK AT THE BEATS COMPONENT, WE DECIDED TO START PROGRAMMING TO TARGET ALL AUDIENCES TO AGAIN HELP INCREASE ATTENDANCE AND OVERALL ACTIVITIES THAT WERE IN AND AROUND ON THE GROUNDS.
THE SEVEN AREAS THAT WE HAD ON THE GROUNDS TO ENJOY LIVE MUSIC ALSO SUPPORTED SOME OF THE NEW AREAS THAT WERE INTRODUCED AND BROUGHT ALONG IN 25.
WE ALSO ADDED SILENT DISCO, UM, TO THE MIX OF MUSIC OPPORTUNITIES.
OUR MAIN STAGE WAS SPONSORED BY WFAA AND FEATURED OUR NATIONAL HEADLINERS.
OUR WORLD BEAT STAGE AS WELL AS DANCE FLOOR HOSTED OUR CULTURAL PERFORMANCES FROM THE ROUND THE WORLD.
THIS AREA ALSO COMPLIMENTED THE WORLD EAT STREET, WHICH IS OUR INTERNATIONAL AREA WITH THE, WITH THE MENUS THAT ARE PROVIDED BY OUR PARTICIPATING RESTAURANTS.
THE SPEAKEASY AND COURTYARD FEATURED LOCAL ARTISTS FROM IN AND AROUND THE REGION TO PROVIDE BY THE ENTERTAINMENT THERE.
OUR BLACK BOX 30 WAS INSIDE OF OUR ADDISON PERFORMING ARTS CENTER.
THAT'S WHERE YOU HAVE THE JAZZ BAND IN THE AERIAL LIST.
OVER 1800 GUESTS ATTENDED OVER THE COURSE OF THE WEEKEND.
THE BLUE.SPOT ACTUALLY FEATURES BUS FOR STYLE ENTERTAINERS, AND THIS IS DESIGNED FOR THE LITTLES IN, UM, THE FESTIVAL.
AND THEN OF COURSE, OUR STUDIO FOUR, WHICH WAS OUR SILENT DISCO AREA.
WE HAD THREE MUSIC CHANNELS, ONE LIVE DJ AND OVER 5,300, UM, HEADSET RENTALS.
OVER THE COURSE OF THE WEEKEND, ARTISTIC TREATS WERE ADDED IN 2024, UM, AND BROUGHT BACK IN 2025 TO HELP ROUND OUT THE PROGRAM OFFERINGS THAT WERE EXTENDED OVER THE COURSE OF THE WEEKEND.
UM, AND IT ASKED ALSO HELPED US ROUND OUT THE SUPPORT OF THE ARTS.
WE WERE SUPPORTING CULINARY ARTS BY WAY OF OUR RESTAURANT PARTICIPATION, THE PERFORMING ARTS WITH OUR NATIONAL, REGIONAL, AND LOCAL ENTERTAINMENT.
THE, UM, VISUAL ARTS WAS ADDED IN THIS SPECIFIC AREA AS WELL.
IF YOU WERE ON THE SITE, YOU SAW THAT WE HAD 12 ICONIC ADDISON AND FOOD-BASED PIECES THAT WERE ON DISPLAY FOR NUMEROUS PHOTO OPPORTUNITIES.
WE ADDED FOUR FOOT AND FIVE FOOT LETTERS FOR PHOTO OPPORTUNITIES, UM, WHICH HELPED OUR SOCIAL PRESENCE AND GROW.
UM, OUR SOCIAL FOLLOWING AS WELL, WE INCLUDED A PINATA THAT HAD 50 POUNDS OF CANDY IN OUR WORLD BEAST, UM, AREA.
AND THAT WAS, UM, AN ACTIVITY THAT TOOK PLACE ON SUNDAY IN OUR BACKS SIZE, BITES, SIZE BACKYARD.
WE HAD OVER 1,750 CRAFTS THAT WERE CREATED BY THE LITTLES ON THE FESTIVAL GROUNDS.
AND THEN OF COURSE, THE ADDITION OF THE SILK AERIAL LIST, UM, INSIDE OF THE BLACK BOX FOR OVER 1800 GUESTS.
WHEN WE PUT THAT ALL TOGETHER, WE WORK VERY CLOSELY WITH MARKETING TO TELL OUR STORY.
WE ACTUALLY HAVE A NEWS STORY TO TELL.
WE HAVE ALWAYS CENTERED AROUND FOOD AND MUSIC.
UM, WE WAIT FOR THE NATIONAL HEADLINERS TO COME OUT, AND THAT'S WHAT WE WERE PUSHING OUT.
WE WORKED WITH MARKETING TO COME UP WITH AN OPPORTUNITY TO MARKET ALL OF THE THINGS THAT WE'RE NOW MAKING UP TASTE ADDISON AND LOOKING TO CREATE THAT CONSISTENT FEEL SO THAT WHEN YOU SAW A PIECE OF COLLATERAL, YOU KNEW THAT IT WAS AROUND TASTE.
UM, AND THEN THE CELEBRATION OF OUR 30TH ANNIVERSARY AS WELL.
FROM A MARKETING PERSPECTIVE, WE WORK ON A DIVERSE APPROACH TO REACHING VARIOUS AUDIENCES.
YOU'LL SEE THERE'S RADIO, TV, UM, INFLUENCERS AS PART OF OUR SOCIAL PLATFORMS, PRINT AS WELL AS DIGITAL.
AND YOU SEE SOME OF THOSE METRICS THERE.
YOU'LL ALSO NOTE THAT WE HAVE BOTH PAID AND IN KIND ADVERTISING
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THAT HELP US TO MARKET AND PROMOTE THE EVENT.WHEN WE LOOK AT THE MARKETS THAT WE'RE TARGETING, UM, WE HAVE MAJOR FEEDER MARKETS, WHICH INCLUDED OKLAHOMA CITY, AUSTIN, SAN ANTONIO, AND HOUSTON.
AND THEN WE ALSO HAVE A SMALLER FEEDER MARKET, AND YOU'LL SEE THAT HIGHLIGHTED IN THE PINK, UM, RADIUS CIRCLES THERE.
UM, PULLED OUT THERE TO THE LEFT, UM, IS THAT SPECIFIC TARGET AREA.
YOU SEE THE TOP 10 PERFORMING ZIP CODES THERE.
AND THOSE, UM, ARE DALLAS CARROLLTON, FARMERS RANCH, RICHARDSON, AND ADDISON, WHICH IS HIGHLIGHTED THERE ON THE LEFT.
ONE OF OUR GOALS IS TO GENERATE TOURISM FROM TOURISM, UM, AND HOTEL PERSPECTIVE.
YOU'LL SEE WHAT OUR OCCUPANCY FOR THE WEEKEND, UM, LISTED THERE.
YOU'LL ALSO SEE THE PARTICIPATION BY OUR HOTELS, UM, LISTED THERE.
AS FAR AS HOW IT COMPARES, WE HAVE A 16.2% INCREASE OVER THE LA OVER THE AVERAGE FROM THE LAST 12 MONTHS.
WE ALSO HAVE AN 18.6 INCREASE OVER THE SAME WEEKEND IN 2024.
WHEN WE LOOK AT METRICS FOR SUCCESS, WHAT ARE THOSE METRICS THAT OUR TEAM IS LOOKING TO HIT WITH REGARDS TO GOALS? THERE'S A NUMBER OF THEM THAT WE LOOK AT, A NUMBER OF THEM THAT WE TARGET IN DIFFERENT AREAS.
WHEN YOU TALK ABOUT ATTENDANCE, A LOT OF TIMES IT'S JUST HOW MANY PEOPLE ARE WALKING THROUGH THE GATES WITH TASTE ADDISON IN THE FORMAT OF THE EVENT AS IT IS.
THERE'S ACTUALLY A COUPLE OF OTHER ANCILLARY METRICS TIED TO ATTENDANCE.
YOU SEE SOME OF THOSE LISTED THERE.
HOW MANY RESTAURANTS DO WE HAVE PARTICIPATING? THAT'S CERTAINLY A METRIC TIED TO ATTENDANCE THAT ISN'T NECESSARILY ABOUT THE NUMBER OF PEOPLE THAT ARE WALKING THROUGH THE GATES, BUT THAT IS A METRIC THAT WE STILL LOOK AT.
WE ALSO LOOK AT THE FINANCIAL IMPACT.
WE LOOK AT ALL OF THE REVENUE OPPORTUNITIES, UM, AS WELL AS THE NET AND THE ROI ON THOSE PARTNERS THAT ARE PARTNERING WITH US, WHICH TIES INTO OUR SPONSORSHIP AND PARTNERSHIPS.
UM, WHEN A SPONSOR IS LOOKING TO PARTNER WITH YOU, WHAT THEY'RE LOOKING FOR IS NUMBER ONE, EXCLUSIVITY.
WHERE DO I GO? AND I'M THE ONLY, IF I'M AN AUTO DEALER, WHERE DO I GO WHEN I GET TO BE THE ONLY AUTO DEALER? I DON'T WANNA BE SATURATED WITH FIVE OF THEIR AUTOMOBILE, UM, MANUFACTURERS IN, IN THE BUNCH.
AND SO LOOKING AT THAT SPONSORSHIP, NOT JUST WITH REGARDS TO DOLLARS, BUT THE OPPORTUNITIES THAT WE HAVE TO PROVIDE, UM, A SPECIFIC SPONSOR, ANNUAL PARTNER.
AND THEN FROM A PROGRAMMING PERSPECTIVE, ARE WE IN FACT PROGRAMMING OUT AN EVENT FOR THE DURATION OF THE ENTIRE TIME THAT THE FESTIVAL IS OPEN? OR ARE WE HEAVY IN ONE AREA AND OFFERING NOTHING FOR SOMEONE TO DO, UM, DURING, UH, OTHER AREAS, OTHER HOURS DURING THE EVENT? AND SO YOU SEE A QUICK GRAPH OF SOME OF THE THINGS THAT WE LOOK AT WHEN WE'RE IDENTIFYING WHAT SUCCESS LOOKS LIKE FOR US.
UM, AGAIN, OUR PARTICIPATING RESTAURANTS, YOU'LL SEE THE HISTORY THERE.
UM, ATTENDANCE IS LISTED AS THAT IS A METRIC, UM, THAT IS VERY IDENTIFIABLE JUST ACROSS THE BOARD WITH RESPECT TO DOLLAR AMOUNTS.
UM, THE NUMBER OF VENDORS, UM, THAT WE HAVE ON THE GROUND.
WHEN YOU'RE RECRUITING, I WOULD LOVE TO SAY THAT YOU JUST PUT AN APPLICATION OUT AND THAT THE APPLICATION START FLOODING IN.
THAT'S NOT ACTUALLY THE WAY THAT IT GOES.
A LOT OF TIMES YOU'RE CASTING THE VISION OF WHAT YOUR EVENT IS GOING TO BE BECAUSE THEY HAVE A BUSINESS TIED TO THIS TOO.
THEY WANNA KNOW THAT THEY'RE COMING TO A WEEKEND THAT IS GOING TO BE FRUITFUL FOR THEM AS A BUSINESS OWNER, BE IT A SMALL BUSINESS OWNER OR A COMMERCIAL, UM, BUSINESS AS WELL.
WE ALSO LOOK AT THE PERFORMANCE AREAS.
THAT TIES TO WHAT WE'RE DOING AS FAR AS PROGRAMMING.
UM, DO WE JUST HAVE ONE MAIN STAGE AND WE HAVE, WE HOPE THAT EVERYBODY WANTS TO SEE WHAT'S ON THAT STAGE OR HAVE WE PROGRAMMED OUT THE SPACE TO ALLOW MULTIPLE AUDIENCES TO ACTUALLY COME AND ENJOY THE EVENT.
AND THEN THE NUMBER OF APPS THAT ARE PROVIDED ON THOSE AS WELL.
WHEN WE LOOK AT THE DEMOGRAPHICS OF THE EVENT ITSELF, OFTENTIMES WE'RE ASKED, WHY IS THIS INFORMATION IMPORTANT? THIS INFORMATION IS IMPORTANT TO SPONSORS THAT ARE LOOKING TO PARTNER WITH US.
THEY WANNA KNOW WHO'S GOING TO BE OUT ON THE GROUND AND IS THERE A PRODUCT, A RIGHT MATCH FOR US? UM, AND SO WE PROVIDE THIS INFORMATION TO ANYBODY THAT'S LOOKING TO PARTNER WITH US.
WE ALSO LOOK AT ATTENDANCE AND WE DO A DEEPER DIVE INTO WHAT ATTENDANCE LOOKS LIKE.
UM, ON THIS SLIDE, YOU SEE OUR OFFICIAL ATTENDANCE FOR THE WEEKEND, BUT I'VE ALSO PROVIDED SOME HISTORICAL INFORMATION AROUND BOTH THE HISTORY OF OUR ATTENDANCE AS WELL AS OUR RESTAURANT PARTICIPATION.
UM, AS WE LOOK TO FOCUS ON OUR RESTAURANT PARTICIPATION THE LAST COUPLE OF YEARS, UM, I FELT LIKE IT WAS IMPORTANT FOR YOU TO SEE WHAT THAT NUMBER LOOKED LIKE AS WELL.
WHEN WE LOOK AT RESTAURANT GROSS SALES, THIS IS ACTUALLY, UM, DERIVED FROM THE REPORTS THAT THE RESTAURANTS THAT ARE PARTICIPATING SUBMIT TO US.
UM, A COUPLE OF THINGS TO NOTE.
UM, THIS SHOWS THE IMPACT ON THE RESTAURANTS THAT ARE PARTICIPATING WITH US.
WHEN A RESTAURANT LOOKS TO PARTICIPATE WITH US, THE FIRST THING THEY ASK IS, WHO'S THE HEADLINER? BECAUSE IN THEIR MINDS, WHOEVER IS, IS HEADLINING THE STAGE ON THAT EVENING IS GOING TO DRIVE THEIR EVENING ATTENDANCE.
THEY'RE ALSO LOOKING TO SEE HOW MUCH MONEY THEY'RE ACTUALLY GOING TO MAKE.
MANY OF 'EM HAVE BRICK AND MORTAR, AS WELL AS THEIR PARTICIPATION
[00:20:01]
ON THE GROUNDS AND BALANCING THAT BUSINESS.THAT BUSINESS DECISION IS IMPORTANT TO THEM.
THE GROSS SALES IS THE REPORT THAT THEY SUBMIT TO US.
I'LL NOTE THAT WE ACTUALLY DON'T RECEIVE ANY REVENUE FROM ANY ADDISON PARTICIPATING RESTAURANT.
THE RESTAURANTS, WHEN THEY APPLY TO PARTICIPATE WITH US, THEY SUBMIT AN APPLICATION FEE.
THEY COME OUT WHEN THEY COME OUT TO THE FESTIVAL.
ANYTHING THAT THEY SELL ON THE GROUND IS 100% THEIRS.
THEY ALSO PROVIDED THEY SHOW UP, THEY GET THAT DEPOSIT BACK IN THE EVENT THAT THEY'RE UNABLE TO SHOW UP, THEY DO FORFEIT THAT DEPOSIT.
BUT THAT WOULD BE THE ONLY WAY THAT WE WOULD GENERATE ANY REVENUE FROM OUR ADDISON PARTICIPATING RESTAURANTS.
ONE THING THAT YOU'LL ASK IS, I SEE, UM, THAT THERE, THERE YOU'LL SEE ON REVENUE SLIDE, THAT THERE'S REVENUE THERE.
THAT REVENUE ONLY COMES FROM NON ADDISON PARTICIPATING CONCESSIONAIRE.
AND I'LL HIGHLIGHT THAT WHEN WE GET TO THE REVENUE SLIDE.
UM, AS WELL, THIS SHOWS THE IMPACT ON THE RESTAURANTS.
IN 2024, WHEN THAT STORM HIT, MANY OF OUR RESTAURANTS WERE WITHOUT POWER FOR THE ENTIRE WEEK.
AS FRIDAY GOT CLOSER, MANY OF THE RESTAURANTS WERE CALLING US ASKING US IF THERE WAS AN OP, IF THERE WAS A CHANCE THAT WE WOULD CANCEL TASTE ADDISON.
THE CONCERN ON THEIR PART WAS, IF YOU DON'T HOLD THIS FESTIVAL, I WILL HAVE NOT GENERATED ANY REVENUE ALL WEEK BECAUSE I'VE NOT HAD ANY POWER.
IF YOU REMEMBER FROM 2024, THE NUMBERS WEREN'T FANTASTIC, BUT IT WAS MORE THAN ZERO, WHICH IS WHAT THEY HAD GENERATED DUE TO THE STORM.
THERE'S ALSO IMPACTS BEYOND THE FESTIVAL.
UM, WE HAVE AN ECONOMIC IMPACT WITH TASTE ADDISON OF $1.1 MILLION.
THAT IS A FORMULA THAT COMES FROM DESTINATIONS INTERNATIONAL.
IT TAKES INTO CONSIDERATION OUR ADMISSION AMOUNT AND ATTENDANCE.
IT ALSO TAKES, UM, INTO CONSIDERATION OUR HOTEL STAYS AND THE PRICE PER ROOM.
AND THEN IT ALSO TAKES INTO ACCOUNT ADDITIONAL SPEND ON THE GROUND, WHETHER THAT BE FOR FOOD AND BEVERAGE AND OR, UM, MERCH THAT'S PROVIDED ON THE GROUND.
WE ALSO HAD 200 OVER 200 MEALS THAT WERE PROVIDED WITH OUR METROCREST SERVICES FILLED WITH PANTRY PROMOTION.
AND THAT WAS IF YOU BROUGHT HAND GOODS TO THE GATE, YOU RECEIVED A REDUCED ADMISSION PRICE.
WE PROVIDED OVER 400 KIDS, UM, WITH, UH, FOOD THROUGH THE SAP SUMMER HUNGER PROGRAM WITH OUR TASTE OF THE TARMAC COMPETITION THAT WAS PRESENTED BY ENCORE AND SUPPORTED HEAVILY BY CHAMBERLAINS.
WE HAD A NUMBER OF PROMOTIONS, UM, THAT ENCOURAGED PEOPLE TO COME OUT.
WE HAD KIDS IN FREE ON SUNDAY.
WE HAD A VETERAN'S PRICE AND AS WELL AS AN ADDISON, UM, RESIDENT RECEIVING HALF OFF ADMISSION PRICE.
AND WE HAD OVER 400, 4,000 OR 40,000 PASSENGERS THAT RECEIVED A FREE MINI CONCERT OVER A HOLIDAY WEEKEND WHEN WE POPPED UP.
UM, LIVE AT LOVE FIELD, UM, AT DALLAS LOVEFIELD THIS WEEKEND.
ALL OF THAT TAKES US TO OUR TOTAL REVENUE FOR THE ENTIRE WEEKEND.
THESE ARE THE DIFFERENT AREAS THAT MAKE UP THAT REVENUE.
UM, LINE YOU'LL SEE WE HAVE, UM, OUR ONLINE AND ONSITE PURCHASES, WHICH IS OUR ADMISSION TICKETS AND ALL OF THE TICKETS THAT GO WITH THE, UM, PAID EXPERIENCES WE HAVE SPONSORSHIPS WE HAVE THAT IS THE TOTAL CASH AMOUNT THAT YOU SEE LISTED THERE, THERE AT THE BOTTOM.
YOU'LL SEE THAT WE ALSO DO, UM, HAVE IN KIND SPONSORSHIPS THAT WE WORK WITH VARIOUS PARTNERS AROUND THE CONCESSIONAIRE LINE ITEM THAT IS OUR REV SHARE OF 20%.
THAT IS COMPRISED OF ONLY THE NON ADDISON BASED CONCESSIONAIRES.
SO ANY ADDISON BASED RESTAURANT DOES NOT PAY INTO THAT.
OUR RESTAURANT MARKETPLACE VENDOR FEES, THESE ARE THE VENDORS THAT ARE ON THE GROUND THAT SELL THEIR WARES.
THEY DO HAVE, UM, A VENDOR BOOTH FEE DEPENDING ON THE FOOTPRINT, UM, OF THEIR SIZE.
AND SO THAT'S WHAT THAT THERE IS.
AND THEN THE LAST ITEM IS AROUND A MERCH SALES, ANY MISCELLANEOUS REVENUE THAT WE MIGHT GENERATE.
AND ALL OF THAT MAKES UP THAT OUR EXPENDITURES OVER A MILLION DOLLARS.
AND THESE ARE THE DIFFERENT AREAS THAT MAKE UP WHAT WE, UM, PAY FOR TO PRODUCE THE EVENT.
UM, YOU'LL SEE ENTERTAINMENT, CONTRACTUAL SERVICES AND RENTALS ARE SOME OF OUR HIGHER PRICE TYPE ITEMS. UM, WE ALSO COMPENSATE STAFF FOR, UM, WORKING THROUGH THE WEEKEND.
UM, WE HAVE WEATHER INSURANCE, WE HAVE KIDS AREA.
ALL OF THE ACTIVATIONS THAT YOU SEE ON THE GROUNDS HAVE COSTS ASSOCIATED WITH THEM.
OUTSIDE SECURITY, UM, IS A BIG ONE FOR US.
UM, THIS YEAR AN UNBUDGETED ITEM, UM, THAT HIT THE EXPENSE SIDE FOR THE INCLUSION OF THE MERIDIAN BARRIERS, UM, THAT COME TO KEEP US SAFE.
UM, AND THEN THE COST OF DOING BUSINESS, OF COURSE ARE CREDIT CARD FEES.
WHEN YOU LOOK AT THE INVESTMENT HISTORY, UM, OF THE TOWN OVER THE LAST SEVERAL YEARS, YOU'LL SEE THAT THERE WITH OUR, UM, REVENUE AND GREEN, OUR EXPENSES IN THE LIGHTER BLUE AND
[00:25:01]
THEN THE TOWN'S INVESTMENT THERE ON THE FAR LEFT HAND SIDE IN THE DARK BLUE.AS WE LOOK AHEAD, SOME OPPORTUNITIES THAT THE TEAM HAS IDENTIFIED, COALITION BEING CRITICAL AND VITAL TO THE PLANNING AND STRUCTURE OF WHAT TASTE ADDISON WILL BE IN THE FUTURE.
WE ALSO HAVE SEE SOME OPPORTUNITIES FOR ENHANCED PROGRAMMING.
WE'D LIKE TO LOOK AT WHAT THAT MAIN STAGE LINEUP LOOKS LIKE AND HOW WE CAN PLAY WITH THE PROGRAMMING AROUND THAT.
UM, WE WOULD LOVE TO CONTINUE TO FOCUS ON THE CULINARY AND THE VISUAL ARTS, THE TRACTION THAT WE HAVE WITH OUR RESTAURANTS.
UM, IF YOU'VE EVER SAID WE'RE 4.4 SQUARE MILES AND WE HAVE OVER 200 RESTAURANTS, THAT IS A PART OF THAT AND THAT'S WHAT HELPS US TO SHOWCASE THIS.
AND SO FOCUSING ON THOSE CULINARY AND VISUAL ARTS, UM, WITH A MUSIC COMPONENT IS SOMETHING THAT WE'RE VERY FOCUSED ON.
THE DARK SILVER LINE COMING TO TOWN WILL ALSO BE A GAME CHANGER.
UM, I'VE BEEN A PART OF AN EVENT, UM, THAT HAD THAT STOP RIGHT AT YOUR FESTIVAL GATE, WHICH IS WHERE WE'LL BE, UM, WHEN THE DARK SILVER LINE STARTS RUNNING.
AND THE IMPACT ON THAT IS, UM, GREAT AND WE'RE EXCITED TO SEE THAT HAPPEN.
AND THEN THE IMPLEMENTATION OF A CORPORATE VOLUNTEER PROGRAM THAT'S GONNA ALLOW US TO TAP INTO THE VOLUNTEER PIECE TO HELP US STAFF SOME OF THESE AREAS.
BUT IT'S ALSO GOING TO HELP BUILD UP A PIPELINE FOR SPONSORSHIPS TO, UM, ACCRUE IN THE FINANCIAL CATEGORY AS WELL.
I'VE TALKED PRETTY EXTENSIVELY ABOUT THE COALITION, UM, AND THE PARTICIPATING RESTAURANTS.
I HIGHLIGHT SOME OF THE FEEDBACK THAT CAME BACK TO US AFTER THIS YEAR.
I'LL ALSO NOTE THAT THERE'S FAR MORE FEEDBACK THAT CAME FROM THE SURVEY.
WHAT I DID IS I PULLED OUT THE FEEDBACK THAT WAS SPECIFIC TO THE WAY WE, WE HANDLED THE RESTAURANTS AND THE MUSIC.
ONE OF THE THINGS THAT GETS ASKED, IT WAS ASKED DURING MY INTERVIEW PROCESS, ARE WE A FOOD FESTIVAL OR ARE WE A MUSIC FESTIVAL? AND I THINK THAT THAT'S BEEN A LONG STANDING QUESTION.
AND SO WE POSE THE QUESTION TO OUR RESTAURANTS THIS PAST YEAR, HAVING GONE THROUGH 2024 AND NOW 25 WITH US, WE PULLED OUT THE RESPONSES THAT WERE TIED TO THOSE TWO THINGS.
AND YOU SEE THAT THERE, MANY OF 'EM ARE PRETTY PLEASED WITH THE CHANGES THAT HAVE COME ABOUT, UM, SINCE 2023.
UM, BUT THEY DON'T FEEL LIKE WE HAVE TO BE ONE OR THE OTHER, THAT THERE'S ROOM TO BE BOTH.
AND SO AS WE CONTINUE TO DEVELOP THE COALITION, AS WE CONTINUE TO GARNER MORE SUPPORT FROM OUR RESTAURANT COMMUNITY, WE TAKE THIS FEEDBACK SERIOUSLY AND INTO OUR PLANNING PROCESS.
AND SO I WANTED TO HIGHLIGHT SOME OF THAT FEEDBACK HERE FOR YOU TO SEE.
UM, JUST SO YOU GET AN IDEA OF WHAT THE SCOPE OF OUR PLANNING LOOKS LIKE AND THE THINGS THAT WE TAKE INTO CONSIDERATION.
AND FIVE, I'LL TAKE ANY QUESTIONS.
QUESTIONS, COMMENTS? I'VE GOT, I'VE GOT A FEW ON THE CONCESSIONAIRE, UH, COLLECTIONS REVENUE.
HOW DO WE COLLECT THAT? HOW DO WE KNOW? WE'RE COLLECTING THAT AMOUNT.
EACH OF THE RESTAURANTS THAT PARTICIPATE ARE REQUIRED TO TURN IN A REPORT AND THEN WE WORK WITH FINANCE THAT INVOICES THEM FOR THE 20% REV SHARE THAT WE TAKE WITH THEM.
AND THEN WE RECEIVE THAT AFTER THE FESTIVAL CONCLUDES.
SO IT'S NOT LIKE WE USE SOME, UH, WE HAVE THEM USE A PARTICULAR POS TERMINAL AND WE, UH, I'M SORRY.
AND EACH RESTAURANT IS ABLE TO USE THEIR OWN POS SYSTEM AND THEN PROVIDE THE COMPARABLE REPORTS.
UM, AND YOU GET THIS, THIS ONE SLIDE, I THINK IT'S SLIDE 20 WHERE IT'S GOT PERFORMER PERFORMERS AND ACTS.
CAN YOU KIND OF TALK ME THROUGH THAT? TALK US THROUGH THAT A LITTLE BIT AS FAR AS WHAT THAT LOOKS LIKE.
I'M MAINLY THINKING PERFORMERS AND AXES, THE BANDS, BUT I'M GUESSING YOU, WE'VE GOT A LOT OF OTHER ONES.
AND I'M TRYING TO KIND OF TRYING TO FIGURE OUT WHAT THAT LOOKS LIKE AND HOW THAT FITS INTO THIS, UH, $306,000 ENTERTAINMENT COST.
SO CAN YOU KIND OF ADD SOME COLOR ON THAT? YEAH.
AND SO THE PERFORMERS NOW ARE EXACTLY THAT.
UM, IT'S ANY OF THE LOCAL ENTERTAINMENT, ENTERTAINMENT THAT IS IN THE COURTYARD TO SPEAKEASY.
THE BLUE.SPOT HAS BUSTERS THAT ARE PERFORMING ALL WEEKEND LONG.
AND SO EACH OF THOSE ARE VARIOUS PERFORMERS.
AND SO ANY TYPE OF LIVE ENTERTAINMENT THAT GOES INTO THAT IS CALCULATED AS A PERFORMER SLASH ACT.
SO, SO, UM, WE HAVE SOME, BUT THEY'RE NOT BANDS.
UM, AND THEN, AND THEN THE OTHER THING IS, UH, MAYBE SLIDE 25.
UM, YOU'VE GOT THIS TO THE TOP RIGHT ONLINE AND ONSITE PURCHASES.
UM, CAN I TAKE THAT NUMBER, DIVIDED IT BY THE ATTENDANCE AND, AND GIVE TO A A PER TICKET PRICE? IS THAT, IS THAT FAIR? WOULD THAT BE YES AND ACCURATE? YES AND NO.
IT WOULD BE AN AVERAGE FOR YOU.
UM, WE ACTUALLY HAVE A PRE-SALE PRICE AND THEN WE HAVE AN AT THE GATE PRICE.
[00:30:01]
AND THEN ALSO INCLUDED ON THE ONSITE PURCHASES WOULD BE, UM, THE CHOW HALL PASS.IT WOULD BE THE COURTYARD AND CPZ PASSES THE ON CHARTS THAT ARE AVAILABLE.
SO IT'S NOT ALL JUST BASED OFF OF ATTENDANCE.
SO YOU WOULD HAVE AN AVERAGE, BUT IT WOULDN'T NECESSARILY BE A HUNDRED PERCENT ACCURATE.
SO WHEN I, WHEN I TAKE THAT NUMBER AND DIVIDE IT BY THE ATTENDEE, I GET ABOUT $12 AND 84 CENTS PER ATTENDEE.
THAT, AND I'M THINKING THAT WOULD BE THE COST TO ENTER, GET INTO THE EVENT.
AND SO DO ANY, IF THAT'S NOT ACCURATE, DO YOU HAVE ANY FEEL WHAT THE COST FOR ENTRY? I WOULD SAY THAT'S PRETTY ACCURATE.
THAT AGAIN, THE PRESALE PRICE IS $10 AT THE GATE WAS 15.
AND THEN, UH, THE LAST IS, IS, UM, NOT, YEAH, SO I THINK BITTER SISTERS WAS THERE, BUT THEY DIDN'T REALLY HAVE A BIG PRESENCE IN SOME OF THEIR, I THINK SOME OF THEIR COMPETITORS FROM NEARBY CITIES WERE THERE AND HAD A MUCH BIGGER PRESENCE.
UM, THAT'S KIND OF WHAT I REMEMBER.
IS THAT NOT ACCURATE? SO WHEN YOU SAY THAT THERE WAS, UM, A BIGGER PRESENCE BY THEIR COMPETITORS, DO YOU HAVE, LIKE, DO YOU HAVE AN EXAMPLE JUST ON THREE NATIONS, FOR EXAMPLE? THREE NATIONS? AND SO, UM, THREE NATIONS WOULD'VE BEEN PARTICIPATING, UM, AS PART OF THE BEVERAGE CONCESSIONAIRE.
SO BITTER SISTERS, UM, THE STORY OF BITTER SISTERS IN THE JOURNEY THAT THEY TOOK WITH US IN 2025, BITTER SISTERS ACTUALLY WANTED TO POP UP IN THE CHOW HALL AND BE A PART OF THE CHOW HALL PASS.
THEY WANTED TO PROVIDE SAMPLES AND THEN OF COURSE SELL THEIR PRODUCT.
TABC CAME IN AND DID AN INTERPRETATION OF THE LAW THAT WE HAVE BEEN INTERPRETING.
UM, THE FESTIVAL INDUSTRY FOR A NUMBER OF YEARS NOW HAS INTERPRETED, INTERPRETED THAT AS ANY ESTABLISHMENT THAT'S GOING TO SELL ALCOHOL OUT ON THE GROUNDS WOULD APPLY FOR A SPECIAL EVENT PERMIT.
WHEN YOU APPLY FOR THAT SPECIAL EVENT PERMIT, THE FESTIVAL ITSELF IS REQUIRED TO PROVIDE A MAP OF EVERY ESTABLISHED METHOD THAT'S GOING TO BE SELLING ALCOHOL.
WE'RE ALSO REQUIRED TO SUBMIT WHAT OUR GATE AND OUR FENCING LOOKS LIKE.
UM, AND THEN THE RULES FOR BEER AND WINE VERSUS SPIRITS ARE VERY DIFFERENT.
ANY RESTAURANT, WITH THE EXCEPTION OF TABLE 13, HAD THE OPPORTUNITY TO PROVIDE AND SELL BEER AND WINE.
BITTER SISTERS CAME IN UNDER THAT AND THERE'S ACTUALLY TWO TYPES OF PERMITS THAT COME THROUGH T-A-T-A-B-C.
THERE'S A GENERIC BEVERAGE AND THEN THERE'S THE SPIRITS, UM, PERMIT.
WHAT TABC CAME BACK AND SAID TWO WEEKS BEFORE THE EVENT STARTED WAS THE LAW IS NOW INTERPRETED, UM, AS WHATEVER PERMIT YOU HOLD AT YOUR BRICK AND MORTAR IS WHAT YOU HAVE TO OPERATE ON THE FESTIVAL GROUNDS.
OUR FESTIVAL STAFF WENT BACK AND FORTH WITH T-A-B-C-A NUMBER OF TIMES TO SAY, WE ACTUALLY FENCE OFF THE ENTIRE FESTIVAL.
SO THERE IS NO IN AND OUT ENTRANCE AS YOU WOULD REQUIRE A MANDATE FROM A BRICK AND MORTAR TABC THAT SAID THAT THAT WASN'T ENOUGH.
AND SO BITTER SISTERS WAS GOING TO HAVE TO PROVIDE THEIR SISTERS HOLDS, UM, THE LICENSE THAT ALLOWS THEM TO SELL SPIRITS AT THEIR BRICK AND MORTAR.
THEY WOULD HAVE TO OPERATE UNDER THAT, EVEN THOUGH THE FESTIVAL AS WELL AS THEIR SISTERS SHARED, THEY'RE NOT GOING TO BE SELLING SPIRITS.
THE ONLY AREA THAT WOULD BE SELLING SPIRITS WAS THE SPEAKEASY, WHICH WAS CONTAINED, WHICH IS REQUIRED BY TABC.
TABC SAID THAT THE INTERPRETATION OF THAT LAW DIFFERS NOW.
AND SO THEY WERE, THEIR SISTERS WAS GOING TO HAVE TO PROVIDE A FENCE AROUND THEIR IMMEDIATE AREA.
WHAT THAT DOES IS, WHILE WE CAN ACCOMMODATE THAT IN, IN CERTAIN INSTANCES, WHAT THAT DOES IS IT JEOPARDIZES THEIR PERMIT AT THEIR BRICK AND MORTAR.
IF THEY'RE, IF THEY'RE FOUND IN, UM, VIOLATION, IT WOULD IMPACT THEIR BRICK AND MORTAR STANDING.
AND THE CHALLENGE WITH THAT WAS, UM, NATE SEAFOOD WAS THE OTHER, UM, ESTABLISHMENT THAT WAS, THAT WAS FALLING UNDER THE SAME, UM, SITUATION SCENARIO.
BOTH OF THEM AT THE LAST MINUTE DECIDED NOT TO SELL BECAUSE THEY DID NOT WANT TO JEOPARDIZE THE PERMIT.
AT A BRICK AND MORTAR NATE, WE WERE GOING TO HAVE TO PROVIDE FENCING IN AND AROUND.
HOWEVER, THE WAY THE LAW IS WRITTEN, IF A PERSON ENTERED INTO THIS FENCED OFF AREA WITHIN THE FESTIVAL, THEY COULD NOT BE CARRYING IT.
JUST LIKE GOING INTO A RESTAURANT, YOU CAN'T BRING OUTSIDE FOOD AND BEVERAGE.
AND SO IF I HAD JUST BOUGHT A BEER AT THE BEVERAGE BOOTH OR AT A NEIGHBOR NEXT TO NATE'S OR BITTER SISTERS, I WOULD HAVE TO DUMP OR DISPOSE AND THEN ENTER THEIR AREA AND THEN WHEN I CONSUMED IT, I WOULD HAVE TO STAY IN THE AREA JUST LIKE YOU WOULD HAVE TO DO AT THEIR BRICK AND MORTAR.
GOING FORWARD, DO YOU SEE, UH, SOME PATH WHERE, WHERE WE MIGHT WANNA EMPHASIZE OUR ADDISON BREWERY, UM, OVER AND ABOVE THE NEARBY CITY BREWERIES? ABSOLUTELY.
AND THE IMPACT ON THAT THOUGH, IT'S FIGURING OUT THE BEST WAY TO MANEUVER THAT.
THE IMPACT ON THAT IS YOU HAVE TWO MAJOR DISTRIBUTORS IN AND AROUND THE INDUSTRY.
YOU'VE GOT BENNY, KEITH, AND ANDREWS CERTAINLY NOT THE ONLY ONES.
THERE ARE OTHER DISTRIBUTORS AS WELL.
UM, THE CHALLENGE AROUND THE WAY WE DO THINGS AT TASTE IS WE ACTUALLY HAVE BOTH DISTRIBUTORS
[00:35:01]
ON THE GROUNDS.BENNY KEITH SETS UP A BEVERAGE TRUCK, ANDREW SETS UP A BEVERAGE TRUCK.
IF I GO TO YOU AND I SAY, COUNCILMAN MARLIN, UM, WHAT DISTRIBUTOR DO YOU GO TO? AND YOU SAY, WE'RE ANDREWS.
AND I COME TO COUNCILMAN HOWARD AND I SAY, HEY, WHAT DISTRIBUTOR DO YOU DO? I GIVE THEM TO KEEP, IF WE GO WITH A SOLE BEVERAGE PROVIDER, ONE OF YOU IS GOING TO HAVE TO GIVE AND YOU WOULD BE REQUIRED BY LAW TO PURCHASE ALL FROM THE SPONSORING BEVERAGE DISTRIBUTOR.
BUT THAT'S ALSO GOING, REQUIRES THE RESTAURANTS TO DECIDE WHAT THAT LOOKS LIKE FOR THEM AS A SOLE ENTITY.
AND SO I THINK WE CAN GET THERE.
I THINK THE CHALLENGES THAT WE HAD THIS PAST YEAR WITH TABC AS THE RESTAURANT COALITION REALLY LEANED IN THAT GROUP, CAME TOGETHER AND ACTUALLY MENTORED SOME OF THE OTHER RESTAURANTS THAT WERE NERVOUS, AFRAID, DIDN'T UNDERSTAND.
AND IT ALSO GAVE RESTAURANTS AN OPPORTUNITY TO KIND OF GET UP TO SPEED ON, BECAUSE WHAT WAS ALLOWED AND WHAT WAS PERMITTED WAS THE PROTOCOL THAT WAS PUT IN DURING COVID WHEN TO GO BEVERAGES WERE APPROVED.
AND SO YOU SAW SOME OF THAT ON THE GROUND.
AND SO IT'S FINDING A HYBRID OF HOW THAT IMPACTS EVERYONE INVOLVED.
SO FROM, FROM YOUR STANDPOINT, DO WE WANT BOTH OF THOSE, THOSE, UH, DISTRIBUTORS PRESENT? WE WOULD LIKE TO HAVE ONE BEVERAGE PROVIDER THAT WOULD PROVIDE SPONSORSHIP DOLLARS AS A PART OF THE EVENT TO ONE AND SPONSORSHIP DOLLARS WITH, TO SUPPORT THE REVENUE STREAM.
I WAS GONNA ASK ON THE SPONSORSHIPS, I THINK IT WAS 101,000.
CAN YOU TELL US WHO THOSE SPONSORS WERE OR WERE THERE SOME LARGE SPONSORS? UM, JUST CURIOUS IF YOU MADE THAT NUMBER.
SO IT'S, IT'S A COMBINATION OF LARGE AND SMALL.
UM, WE HAVE, UM, PRESENTING SPONSORS THAT COME IN AT FIVE FIGURES.
WE HAVE MARKETING SPONSORS THAT COME IN.
UM, THE LOWEST LEVEL THAT WE PROVIDE IS ABOUT 5,000.
AND THEN IT RANGES ALL THE WAY UP.
UM, AND SO IT JUST DEPENDS ON WHAT YOUR NEEDS ARE.
WE HAVE SOME SPONSORS THAT JUST WANT NAMING RIGHTS AND THEY DON'T WANT ANYTHING ELSE.
WE HAVE SOME SPONSORS THAT JUST WANNA GO ON THE GROUNDS.
WE WANT, WE HAVE SOME SPONSORS THAT SAY, I JUST WANNA DO, UM, LEAD GENERATION, WHICH MEANS, AND THOSE ARE THE ONES THAT ARE, THAT ARE ASKING YOU, DO YOU NEED THIS? DO YOU NEED THAT? 'CAUSE THEY'RE TAKING DOWN YOUR INFORMATION TO PRODUCE LEADS ON THE BACK END.
WE HAVE SOME SPONSORS, UM, THAT ARE ALL IN, THAT ARE, THAT WANT TO DO ALL OF IT.
THEY WANNA DO SOMETHING GROUNDS, AND THEY WANT TO IMPACT NOT ONLY THE FESTIVAL, BUT THE COMMUNITY IN A BIGGER WAY.
THE REASON I'M ASKING IS I'M LOOKING AT THE BOTTOM LINE, WHICH WAS MADE OF 703.
I I THINK IT WAS MADE OF 800 AND SOMETHING.
SO I'M CONCERNED, I KNOW THAT WE GET SOME RESIDUAL BENEFITS THAT WE MAY NOT EVEN BE ABLE TO MEASURE, BUT I READ SOME OF THOSE COMMENTS EARLIER THAT I'M NOT SURE.
YOU SAID IT WAS FROM, UH, I GUESS A PARTICIPATING RE UH, RESTAURANT.
THAT THEY FELT LIKE WE DIDN'T HAVE THE NAME BRAND NAMED RECOGNIZED VANS, THAT WE NEEDED MORE NATIONAL WHATEVER BANDS.
AND THAT RAISES THE COST OF BRINGING THOSE BANDS.
AND SO I'M JUST WONDERING WHERE ARE WE GONNA OFFSET THAT COST? I, I GET IT.
WE MIGHT GET MORE, MORE PARTICIPATION, MORE PEOPLE COMING, BUT WE HAVE TO SPEND THE MONEY TO GET THE VANS AND WE DON'T KNOW IF WE'RE GONNA GET THE REVENUE TO OFFSET.
I DON'T WANT TO SEE THIS NUMBER, THIS HIGH, THIS NEGATIVE NUMBER.
I'D LIKE IT TO NOT BE NEGATIVE AT ALL.
BUT, UM, WHEN YOU HAD LIKE 300 SOMETHING THOUSAND THAT WE SPENT ON ENTERTAINMENT MM-HMM
WHAT WAS THE HIGHEST SPICY PAID PROGRAM? MAN DID THAT? UM, IT WOULD'VE BEEN, LET ME LOOK AT, LET ME TAKE THROUGH THE LINEUP OF WHO WE HAD.
UM, UBA STAK, IT WOULD'VE BEEN WHO STAK, UM, SILVER SPOON PICKUPS ALSO.
SO, SO THOSE PROBABLY WOULD'VE BEEN ABOUT THE 60, 65,000 IS THE MOST THAT WE SPENT.
WHO UBA SINK AND, UM, SILVER SPOON PICKUPS.
BOTH OF THOSE WERE ON AGENDAS.
SO WHAT WE BUT WHEN WAS ON SUNDAY FOR 35, WHAT WOULD WE HAVE TO SPEND TO GET SOMEBODY THAT THESE, THESE RESTAURANTS WANT? WHAT, WHAT KIND OF NUMBER IS THAT GONNA GROW TO IN THE, IN THE FUTURE, IN THE, WHEN I TALK ABOUT THE FUTURE I SUPPOSED TO ASK? NO, IT'S A GOOD QUESTION.
WE'LL TALK ABOUT IT MORE IN THE BUDGET BIT.
THIS IS A GREAT TIME TO ASK YOU.
ONE OF THE THINGS THAT ABBY CAN EXPAND ON IT, SORRY, I THINK THIS WILL ANSWER YOUR QUESTION TO SOME DEGREE, UM, IS WE ARE KIND OF, AND IT GOES TO SOME OF THE CONVERSATIONS THAT WE HAD, ABBY CAN, CAN CONTINUE.
IT IS WITHIN, WE THINK WITHIN THE, THE BUDGET THAT WE HAVE, THE SAME AMOUNT THAT WE SPEND ON ACTS ON ENTERTAINMENT THAT WE CAN PRIORITIZE THE NIGHT HEADLINERS INSTEAD OF THE OPENERS.
SO REALLY TAKE THE SAME PIE AND DEVOTE IT MORE TOWARD GETTING A BIGGER HEADLINER IN THERE AND HAVING SMALLER BANDS FOR THE OPENERS.
AND SOME OF THAT IS BECAUSE OF ABBY'S WORK OVER
[00:40:01]
THE PAST FEW YEARS BY HAVING ALL THE OTHER THINGS THAT ARE GOING ON AND UTILIZING THE SPACE DIFFERENTLY.WE FEEL LIKE THAT'S BRINGING PEOPLE IN.
AND THIS IS PART OF THAT PLAN OF TRYING TO REALLY CHANGE THE, THE WAY THAT CASES THOUGHT OF.
SO BRING PEOPLE IN WITH SOME OF THOSE DURING THE DAY AND THEN HAVE A MAJOR HEADLINER AT NIGHT THAT WE THINK CAN DRIVE THAT ATTENDANCE.
AND WE HAVE, WE THINK AS WE LOOK FORWARD, ESPECIALLY IN 26, 27, THAT THAT ATTENDANCE CAN GO UP SIGNIFICANTLY BASED ON DOING THOSE THINGS AND THE MOMENTUM THAT WE HAVE.
AND THEN NUMBER OF METRICS, RIGHT? ONE METRIC IS WHAT IS THE INVESTMENT? WHAT DOES THE SUBSIDY LOOK LIKE? ANOTHER INVESTMENT IS HOW MANY RESTAURANTS DO WE HAVE AND HOW SUCCESSFUL IS IT FOR THE RESTAURANTS? AND ANOTHER ONE IS ATTENDANCE.
SO TRYING TO THINK ABOUT ALL THOSE AS WE MAKE THOSE CHANGES.
WELL, I'M TRYING TO THINK ABOUT EVERYTHING, BUT I'M, I'M FOCUSED ON THE COST AND, AND I GET IT THAT WE COULD LOOK AT IT AS AN INVESTMENT AND WE'RE GETTING BENEFITS BEYOND JUST THE DOLLARS THAT COME IN THAT NIGHT.
BUT I READ THE COMMENTS FROM THOSE PEOPLE AS I READ ALL THAT BEFORE, AND I THOUGHT, WELL, IF WE SPEND MORE MONEY TO GET MORE NAMES, NOW YOU MAY HAVE FIGURE DRAFT TO THIS REARRANGE, BUT I, I DON'T KNOW.
I'M JUST, I DON'T KNOW HOW TO ASK THE QUESTION BECAUSE IF THE COST GOES UP THEN AND THE THE INCOME GOES UP AS A RESULT AND THE BOTTOM LINE IS STILL THIS, WELL, HOW, HOW CAN WE GET THE LOSS LOWER? YEAH, THERE'S, THAT'S WHAT I'M FOCUSED ON.
THERE'S OTHER THINGS THAT COME INTO PLAY ON THAT.
IT'S NOT, I WISH IT WERE JUST THAT SIMPLE AND I COULD HAVE DONE EVERYTHING FOR IN TWO SLIDES FOR YOU AND, AND CALLED IT A DAY.
UM, THERE'S A COUPLE OF THINGS THAT YOU CAN DO WHEN YOU LOOK AT THEIR, THEIR, UM, FEEDBACK AROUND, UM, THE BANDS THAT ARE PLAYING AND HOW WE IMPACT THAT.
WE DO EXACTLY WHAT DAVID SAID.
WE LOOK AT WHAT OUR PROGRAMMING LINEUP GOES, LOOKS LIKE, AND THEN WE FIGURE OUT, OKAY, MAYBE WE DON'T HAVE, AND WE DON'T PAY FOR PERFORMERS THAT ARE ON THE MAIN STAGE DURING THE DAYTIME.
WE'RE FOCUSED ON THE DAYTIME ACTIVITIES AND MAYBE THE STAGE EITHER SITS DARK OR THERE'S A STATIC ACTIVITY THAT'S NOT A BAND THAT'S CONTRIBUTING TO THIS.
SO WE CAN TAKE THE SAVINGS FROM THAT AND APPLY IT TO A BAND THAT WOULD APPEASE SOME OF THE REQUESTS THAT WE HAVE.
AND SO IT'S TAKING THE BUCKET OF MONEY THAT WE HAVE AND MOVING THINGS AROUND AND NOT NECESSARILY JUST CONTINUING TO BUILD UP.
AND THEN ABBY, IT'D PROBABLY BE GOOD FOR YOU TO MENTION THIS.
I THINK ON THE SPONSORSHIP SIDE TOO, ON THE REVENUE SIDE, WE HAVE A LOT OF OPPORTUNITY TO INCREASE THE SPONSORSHIPS EVEN THIS YEAR AND APPLICANT TALK ABOUT IT.
I THINK WE HAD, JUST BECAUSE OF THE NATURE OF MOVING THE EVENT, WE HAD SOME SPONSORS THAT WE GET THAT DIDN'T COME TO FRUITION THAT APPLICANT SPEAK TO, BUT WITH SOME OF THOSE CHANGES AND AS WE LOOK TO THE FUTURE, WE SEE THAT REVENUE LINE INCREASING.
UM, BUT A GOOD POLICY CONVERSATION TO HAVE WITH COUNCIL.
NOW WHEN WE GET INTO THE BUDGET, UH, I HEARING THIS A LITTLE BIT IS WHAT IS THAT? WHAT DO WE, WE'RE GONNA COME FORWARD TO YOU AND SAY IN FY 27, HERE'S WHAT WE WANT DO.
AND IT IT IS PART OF THIS LONG RANGE PLAN OF TRYING TO CHANGE THE CULTURE OF THE EVENT AND GETTING MORE RESTAURANTS THERE.
AND REALISTICALLY, HERE'S WHERE WE THINK WE CAN GET ON THE SUBSID.
HERE'S HOW WE, HERE'S WHERE IT'S GONNA REDUCE.
WE'RE NOT GONNA SIT HERE AND SAY IT'S GONNA BE ZERO OR THAT IT'S EVEN GONNA BE 300,000.
SO WE DO NEED TO GET SOME FEEDBACK ON THAT.
HERE'S WHERE WE GO, HERE ARE THE GOALS THAT WE'RE FOCUSED ON.
IS THIS SOMETHING THAT'S PALATABLE? IS THIS WHERE WE WANT TO GO? BECAUSE IT'S, IT'S A VALID CONVERSATION THAT WE NEED TO HAVE.
SO WE'RE TRYING TO LAY THAT OUT FOR YOU TO TRY TO GET SOME OF THAT AS WE HAVE THIS DISCUSSION.
AND JUST A LITTLE MORE COLOR AROUND THE SPONSORSHIP INFORMATION THAT HE SHARED WE'RE ACTUALLY DOWN ABOUT 30, WELL, I'M GIVING YOU AN EXACT EXACT NUMBER.
WE ACTUALLY HAD TWO SPONSORS THAT WERE DONE.
ONE FOR 25,000, ONE FOR 12 THAT ACTUALLY HAD TO BACK OUT WHEN WE KNEW THE DATE.
ONE OF 'EM WAS TIED TO A TRUCK AND WE HAD ONE TRUCK AND IT WAS IMPORTANT AS PART OF THEIR ACTIVATION THAT THE TRUCK BE A PART OF THE EVENT THAT WAS $25,000 THAT WE LOST BEFORE WE EVEN STARTED.
AND WE ACTUALLY HAD A RENEWAL WITH THEM TO BE A PART OF 2025.
UM, THE DATE CHANGE IMPACTED THAT.
ANOTHER ONE WAS FOR $12,000 AND THEY WERE INSTRUMENTAL IN HELPING US SET UP THE FREE SAMPLING AREA THAT WE HAD.
UM, THEY CAME, THEY COME WITH THE NATIONAL BRANDS THAT TOUR, AND SO YOU NEVER RUN OUT OF RUN OUT OF THE FREE SAMPLES.
UM, THAT TOUR UST ACTUALLY BEGAN UNTIL MAY ONE.
SO PROVIDED THAT OUR DATES STAY IN APRIL, WE WON'T EVER HAVE THEM BACK.
AND SO RIGHT OUT OF THE GATE WE WERE DOWN 37,000, UM, AND THEN LOST 30 DAYS IN THE PLANNING PROCESS.
AND SO WE DO ANTICIPATE HAVING LONGER LEAD TIME TO BE ABLE TO FIND SOME OTHER SPONSORS.
WE ALSO HAVE BEEN REPORTING SPONSORS SINCE 2023 GOING INTO 2024.
AND A LOT OF THAT IS, IS PAINTING A VISION OF WHAT THE EVENT LOOKS LIKE SO THAT YOU CAN DECIDE IF YOU WANT TO ACTUALLY INVEST.
ARE YOU FINISHED? NO, THAT'S OKAY.
ARE YOU FINISHED? WELL, I HAD A QUESTION, BUT IT'S OH NO, GO AHEAD.
ONE OF THE SLIDES TALKED ABOUT THE ATTENDANCE BY AGE,
[00:45:01]
AND I WANT TO SAY 7% WERE THE SENIORS.SO BEING A SENIOR, OF COURSE I FOCUSED ON THAT.
THE VANS THAT YOU HAD OR BANDS THAT I'VE NEVER HEARD OF MM-HMM
AND I WAS JUST GONNA SUGGEST SENIORS HAVE DISPOSABLE INCOME.
UM, I DON'T KNOW WHO WE'RE TRYING TO ATTRACT IF WE WANT THE 20 TO 30, 20 TO 40 OR THAT'S THE WHERE WE'RE FOCUSED AND WE'RE GONNA GET THOSE BANDS.
UM, BUT I DO THINK MAYBE LIKE I HAD MENTIONED BEFORE, SOMEONE, SOMEONE LOCAL LIKE, UM, UH,
I THINK BRUCE EVEN SAID, YEAH, BUT WE'RE OLDER AND, YOU KNOW, THE YOUNGER PEOPLE AREN'T GONNA RESPOND TO THAT.
MAYBE THERE'S A WAY TO GROW THE NUMBERS IN THAT DEMOGRAPHIC BECAUSE I THINK THOSE, THOSE PEOPLE WHO HAVE DISPOSABLE INCOME WILL COME AND WILL GO BACK AND SUPPORT THOSE RESTAURANTS AFTER THE FACT.
UM, WELL FIRST OF ALL, THANK YOU FOR THE PRESENTATION AND ALL THE CREATIVITY THAT YOU AND YOUR TEAM BRING.
SOME OF MY COMMENTS, PROBABLY A LOT OF THEM ARE GONNA BE MORE FOCUSED ON IN THE BUDGET SESSION, BUT I DO HAVE A COUPLE, THEY'RE, THEY ARE ALONG THE LINES WHERE HOWARD WAS HEADED BECAUSE MY THOUGHT WAS THE SAME THING.
YOU KNOW, THERE'S SO MUCH FIXED COST BAKED INTO DOING A FESTIVAL, RIGHT? UM, AND, AND IT SEEMS LIKE OUR PROBLEM IS MORE OF A, A REVENUE PROBLEM.
I MEAN, THERE THE COST IS THE COST, RIGHT? SECURITY INFRASTRUCTURE, PORT POTTIES, ALL THAT STUFF.
SO IF, IF WE WERE ABLE TO, I KNOW, BRING MORE PEOPLE IN, RIGHT? RUN MORE PEOPLE THROUGH HOW DO WE CAPTURE MORE REVENUE? BECAUSE IT SEEMS LIKE THIS YEAR, UM, ATTENDANCE WAS UP LIKE BY 25%, BUT REVENUE WAS DOWN.
SO THAT WOULD BE MY FEAR IS IF WE SAY, HEY, WE'RE GONNA HAVE ONE LINER BAND AND WE PACK THAT PLACE, HOW DO WE KNOW THAT PEOPLE COMING IN FOR THE HEADLINE OR AREN'T JUST GONNA HAVE A COUPLE OF BEERS AND, AND WATCH THE SHOW AND LEAVE? SO MY, MY THOUGHT IS WHAT CAN WE DO TO GROW THE REVENUE? LIKE, LIKE ARE, ARE THERE ADDITIONAL REVENUE SOURCES? CAN WE TAKE OVER ALL THE BEER SALES OR IS THERE SOMETHING WE CAN DO LIKE THAT THAT MIGHT MAKE IT EASIER FOR US TO, TO GROW THE REVENUE SIDE? YEAH, CHRIS, AND, AND WE AGREE WITH ALL OF THAT AND THAT WAS ACTUALLY PART OF OUR THREE TO FIVE YEAR PLANNING THAT WE STARTED IN 2024.
EVERY POINT THAT YOU JUST HIT IS OUR ULTIMATE GOAL AND YOU'LL SEE SOME OF THAT THAT WE'RE HOPING TO TAKE FRUITION IN 2027.
THE DELICATE BALANCE THAT WE HAVE IS THE CORE OF WHAT WE DO WITH TASTE ADDISON REVOLVES AROUND OUR RESTAURANTS.
THERE'S BEEN A NUMBER OF CHANGES THAT HAVE HAPPENED WITH THE EVENT THAT HAVE DONE EXACTLY WHAT WE'RE TALKING ABOUT.
HOW DO WE GET MORE PEOPLE IN? HOW DO WE GET MORE RESTAURANTS PARTICIPATING? HOW DO WE DO ALL OF THAT? UM, AND SO WE'RE HERE TODAY WITH WHAT THAT LOOKS LIKE.
UM, WHEN YOU TALK ABOUT REVENUE STREAMS, I THINK IF YOU SAW SOME OF THE FEEDBACK THAT THE RESTAURANTS PROVIDED, MANY OF THEM, ALL OF THEM PARTICIPATE FOR ESSENTIALLY FREE.
THERE'S EVEN A HARD COST THAT'S ASSOCIATED WITH WHAT THE TOWN INVESTS FOR A RESTAURANT TO PARTICIPATE.
WE PROVIDE THE TENT, WE PROVIDE THE SIGNAGE, WE PROVIDE A LOT OF THE ANCILLARY THINGS THAT IT TAKES TO EVEN JUST SHOW UP.
WE'RE OUR HOPE IS YOU SAW SOME OF THE RESTAURANTS THAT ARE LIKE, WELL, MAYBE IT IS TIME THAT RESTAURANTS ACTUALLY STARTED PAYING SOMETHING BACK, WHICH WOULD ALLOW US TO DECREASE THAT SUBSIDY.
AND SO CERTAINLY SOMETHING THAT WE'RE LOOKING TO MOVE TOWARDS, IT IS A DELICATE BALANCE.
UM, WE WORKED HARD AND WE FOUNDED THE PAVEMENT OVER THE LAST TWO YEARS TO GET RESTAURANTS TO PARTICIPATE.
AND SO THE RESTAURANT COALITION IS VITAL IN THAT THE RESTAURANT COALITION IS THE ONE THAT'S LIKE, OKAY, WELL WAIT A MINUTE.
YOU KNOW, WE, WE AS A FESTIVAL TEAM GO OUT AND SAY, THIS IS WHAT IT COSTS ON OUR SIDE JUST TO GET YOU TO THE FESTIVAL ONCE THE FESTIVAL WRAPS UP.
IF YOU ARE A CONCESSIONAIRE, THIS IS WHAT WE TAKE TO HELP OFFSET THAT COST.
THE COST FOR THAT IN ALL OF OUR ADDISON RESTAURANTS IS ZERO.
AND THEY'RE NOW SEEING WHEN YOU CAN SEE THE NUMBERS, TO YOUR POINT.
AND SO THAT IS ONE OF OUR GOALS.
THE BEVERAGE PIECE OF IT IS ANOTHER BIG ONE.
UM, BUT IT'S ALSO A HARD ONE AS YOU'RE IMPACTING THE RESTAURANTS IN A BIG WAY.
UM, MANY OF OUR FOLLOW UP CONVERSATIONS WITH OUR RESTAURANTS THIS YEAR, EVERY SINGLE ONE OF THEM SAID, WELL, WHY DON'T WE JUST GET A BEVERAGE SPONSOR AND YES, WE CAN GET A BEVERAGE SPONSOR.
WHAT COMES WITH THAT IS EXCLUSIVITY.
AND YOU WILL BE FORCED TO GET THE PRODUCT FROM WHATEVER THAT SPONSOR IS.
BECAUSE I THINK THE QUESTION THAT WE NEED TO ASK IS, YOU KNOW, WHAT, WHAT ARE WE REALLY TRYING TO ACCOMPLISH HERE? AND THEN WHO ARE WE DOING IT FOR? AND I THINK IN THE NINETIES, IF YOU COULD VERY EASILY ANSWER THAT QUESTION, IT WAS ALL ABOUT THE RESTAURANTS.
IT WAS ALL ABOUT SAYING, HEY, WE'VE GOT WHAT, HOWEVER MANY RESTAURANTS WE HAD AT THE TIME IN 1990, WE'RE GONNA MAKE SURE THEY DON'T GET LOST.
WE WANT YOU TO COME TO THIS FESTIVAL, TRY SOMETHING YOU MAYBE NEVER HAD BEFORE, AND THEN COME
[00:50:01]
BACK AND HAVE A FULL MEAL.I, AND I DON'T FEEL LIKE THAT'S HAPPENING RIGHT NOW.
AND, AND I THINK THAT'S PART OF IT IS, IS WHAT DO WE REALLY WANT THIS THING TO BE? I MEAN, IF WE HAVE 46 RESTAURANTS AND A LOT OF 'EM WANNA SERVE LIKE TWO CHICKEN WINGS BUT HAVE 16 DRINK MACHINES, I DON'T THINK THAT'S WHO WE REALLY WANNA BE.
AND I THINK THAT'S MIGHT BE A CONVERSATION FOR LATER, BUT, UM, UM, I'LL, I'LL I'LL SAY THE REST OF MY COMMENTS FOR LATER.
CHRIS, I COMPLETELY AGREE WITH YOUR FINAL STATEMENT OF COMMENT.
REMIND ME OF PRESALES YOUR 10 AT THE GATORS 15.
SO REMIND ME OF WHAT, WHAT YOU GET FOR YOUR $10 THAT YOU PRESALE OR YOUR $15 THAT YOU PAID THE GATE.
SO ALL OF THE ACTIVITIES THAT ARE ON THE GROUND AS WELL AS THE CONCERTS, UM, WOULD BE INCLUDED IN YOUR TICKET.
CAN YOU, CAN YOU GIVE ME AN EDUCATED GUESS AS TO WHAT A, WHAT A CONCERT TICKET FOR ONE OF THESE BANDS WOULD COST SOMEBODY TO GO SOMEWHERE TO SEE THEM PLAY A CONCERT? IT DEPENDS ON THE VENUE.
SO LIKE OUR BIG HEADLINER, WHAT WOULD, WHAT WOULD THEY TYPICALLY DRAW IN A TICKET IN A, IN A CLOSED VENUE? SURE.
THEY TAKE A RED SHARE AT THE GATE AND SO THAT WOULD BE SIGNIFICANTLY HIGHER.
YOU'RE PROBABLY LOOKING AT 75, 80, WHO DID YOU TICKET FOR A CONCERT? RIGHT.
IS THERE ANY THOUGHT IN REARRANGING IF, IF WE WANT TO CONTEND, I AGREE THAT THIS USED TO BE TO HIGHLIGHT OUR RESTAURANTS AND WE'VE GONE COMPLETELY AWAY FROM THAT.
WE'VE REBRANDED THREE TIMES AND I THINK THAT'S HURT US AS WELL.
IS THERE ANY THOUGHT ON MAY IF, IF WE'RE GOING TO DO A CONCERT, HAVE HAVE SEATING THAT YOU PAY FOR TO GET TO THAT CONCERT? NOT JUST A BIG PUSH OF PEOPLE AT A STAGE AND YOU'RE ALL UP THERE, BUT, BUT HAVE, HAVE SEATING AREAS WHERE YOU PAY TO GET INTO A SEATING AREA TO WHERE YOU CAN WATCH THESE BANDS PLAY? CERTAINLY SOMETHING THAT WE COULD CONSIDER, UM, OUTDOOR FESTIVAL SCENE.
UM, NOT, NOT NECESSARILY THE NORM, BUT NOT NECESSARILY MEANING THAT WE CAN'T EXPLORE THAT.
UM, WHY DID WE MOVE THE DATE THIS YEAR? THIS YEAR? IT WAS MOVED, UM, TO ACCOMMODATE THAT LAST YEAR WHEN WE HAD THE STORM, AFTER THAT STORM HAPPENED, WE HAD LESS THAN 30 DAYS TO THEN PRODUCE KABOOM TOWN.
THE IMPACT ON THE PARK, UM, THERE WAS A LOT OF DRS THAT WENT THROUGH THE PARK AND HAVING TO REPAIR THOSE IN TIME FOR KABOOM WHEN THOUSANDS OF PEOPLE WOULD BE ON THE GROUND WAS TOUGH ON THE PARK CREW.
THE IMPACT ON THE TEAMS THAT ARE INVOLVED, UM, PUBLIC SAFETY, PUBLIC WORKS PARTS, UM, AS WELL AS SPECIAL EVENTS, WE WEREN'T DOING KABOOM A SERVICE BY HAVING LESS THAN 30 DAYS TO ACTUALLY, UM, PRODUCE THAT.
I MEAN, I WOULD STAB QUICKLY AS WE LOOK TO THE FUTURE TOO, IF WE WERE TO, WE WILL CERTAINLY CONTINUE EARLY VOTING AT NEW TOWN HALL CONFERENCE CENTER, WHICH WE HAD IT AT TWO YEARS PRIOR BEFORE WE WERE DOING CONSTRUCTION, EARLY VOTING, IF WE KEPT THE SAME DATE IN THE FUTURE, WOULD ALWAYS RUN INTO IT.
SO WE WERE GONNA HAVE TO LOOK AT A NEW DATE ANYWAY.
AND SO MOVING IT UP TO APRIL THIS YEAR, KNOWING WE WERE GONNA HAVE TO DO THIS LONG TERM MADE A LOT OF SENSE TO TRY TO GIVE SOME GAP BETWEEN KABOOM, LIKE ABBY MENTIONED.
UM, BUT WHAT WE REALLY WANNA DO IS GET A CONSISTENT DATE MOVING FORWARD SO THAT EVERYONE KNOWS.
WHEN YOU, WHEN YOU BRAND SOMETHING, YOU BASICALLY BRAND IT AT A CERTAIN DAY TO YEAH.
THE MASTER'S GOLF TOURNAMENT IS PLAYED THE SAME EVERY YEAR.
SO WHEN YOU BRAND SOMETHING, PART OF THE BRANDING IS EXACTLY THE TIME FRAME.
THERE'S JUST NO WAY WE COULD HAVE THE EVENT.
WE, WE DID SEEM TO REALIZE, DIDN'T WE REALIZE COOLER TEMPERATURES WITH THE EVENTS? THIS, YOU KNOW, AT THE TIME IT WAS IN, IN APRIL VERSUS, UM, MAY OR JUNE? MAY, YEAH.
IT JUST SEEMED LIKE WE REALIZED A LITTLE BIT COOLER TEMPERATURES AND, AND IN MY MIND A LITTLE BIT, UH, LESS OPPORTUNITY TO GET RANDALL SHOWER, JULY SHOWER.
SO THANKS FOR ANSWERING THE QUESTION ON THE SPONSORSHIP.
THAT WAS, THAT IS THE, THE REVENUE, UH, DECLINE WE SAW.
UM, SO DO YOU THINK YOU HAD THAT SOLVED FOR NEXT YEAR? FILLING THOSE GAPS OF SPONSORSHIPS? WE'RE CERTAINLY WORKING ON IT.
UM, SO ON THE ATTENDANCE ON THE, THE SLIDE, I'VE GOT SLIDE 22.
HOW DO YOU COUNT, UM, ATTENDANCE ACTUAL STAND, UM, THAT COME THROUGH THE GATE? WE DO THE SOFTWARE.
IS IT, SO IS IT IN AND OUT? IS IT COUNTED TWICE OR IS IT JUST THE ONCE WHEN YOU SCAN OUT, THERE'S A SCAN OUT OPPORTUNITY SO THAT WHEN YOU COME BACK IN THAT YOUR TICKET CAN BE, SO DO YOU HAVE ANY SORT OF TIME OF DAY? UH, LIKE ON SATURDAY WHEN THE, THE PEAK ATTENDANCE WAS, WE'VE ASKED OUR TICKET PLATFORM TO PROVIDE THAT DATA FOR US.
AND THAT HELPS US IN PLANNING TO FIGURE OUT
[00:55:01]
WHEN WE NEED TO, WHERE WE NEED TO FOCUS ON OUR PLANNING.SO WILL YOU HAVE THE TABC ISSUES RESOLVED FOR NEXT YEAR? YEAH, SO THE TABC UM, ISSUES ARE LIKE, THEY'RE ESTABLISHED.
AND SO SOME OF THE CHALLENGES THAT WE HAVE WITH TABC IS, IT KIND OF DEPENDS ON WHO YOU TALK TO.
AND SO WE TALK TO OUR, OUR PARTNERS, UM, IN THE REGION THAT ARE DOING THE EXACT SAME THING WE ARE.
AND WE LIKE TO HIGHLIGHT SOME OF THE INCONSISTENCIES THAT WE'VE EXPERIENCED WITH TABC.
WE DO THINK THAT WE HAVE A HANDLE ON IT.
WE HAVE AN UNDERSTANDING OF WHAT THAT LOOKS LIKE.
THINK PRESENTATION IS REALLY COMPREHENSIVE.
AND YOUR SLIDE BACK ON THE GOALS, CAN YOU GO BACK TO THAT SLIDE? SO THAT THAT'S, I MEAN, RIGHT IN LINE WITH WHAT I WAS ASKING, UH, LAST YEAR AND THE YEAR BEFORE IS WHAT, WHAT'S THE OBJECTIVE? WHAT DOES SUCCESS LOOK LIKE? THAT ONE, UM, PROBABLY MORE SPECIFICS ON THAT, UH, IS GOOD FOR WHAT I'D LIKE TO SEE.
WHAT ATTENDANCE TARGETS ARE WE LOOKING AT? WHAT REVENUE, AND I AGREE WITH CHRIS, IS, IS YOUR EXPENSES GONNA BE ABOUT WHAT THEY'RE GONNA BE, YOU'RE NOT GONNA CHANGE 'EM THAT MUCH.
UM, SO YOU GOTTA SELL YOUR WAY THROUGH THIS AND HAVE HIGHER REVENUE ON THAT.
AND THEN AGAIN, IS, IS, DOES THIS MAKE SENSE? JUST FUNDAMENTALLY, IS THIS SOMETHING THAT, THAT IS, IS MAKES SENSE FOR ADDISON? IS DO WE KEEP DOING IT? AND THAT'S, I MEAN, I WOULD CALL IT A SUBSIDY, I'D LIKE TO CALL IT AN INVESTMENT INSTEAD OF A SUBSIDY HAPPY LIKES TO CALL IT AN INVESTMENT TOO.
UH, BUT YOU ARE SUBSIDIZING IT.
UM, AND SO, UH, I THINK IT'S REALLY GOOD PRESENTATION.
UM, I THINK IT'S REALLY WELL DONE.
AND IF YOU, IF YOU GET THE, THE, UH, ATTENTION TO IT, THEN I, I THINK PEOPLE WILL SEE THAT IT'S, IT'S REALLY A, A FUN EVENT TO COME TO AND SPEND A COUPLE DAYS AT.
SO THANK YOU FOR THE PRESENTATION.
I A REALLY GOOD PRESENTATION AND, UH, YOU KNOW, IT, IT IS AN INVESTMENT AND TO ME, THIS, THIS IS MARKETING.
THIS IS MARKETING A I I WAS JUST THINKING IN MY HEAD, WONDER HOW MANY TIMES OVER THE, THE WEEKS LEADING UP TO IT AND THROUGH THE WEEKEND IS THE NAME ADDISON SPOKEN.
MILLIONS, I WOULD THINK, YOU KNOW, BETWEEN, UH, TV AND THE PEOPLE COMING, IT'S, IT'S, IT'S, IT'S A HUGE MARKETING THING FOR US, AND THAT'S, IT IS AN IMPORTANT PART OF OUR BRAND.
UM, I LIKE THE IDEA OF THE, OF THE HEADLINERS, YOU KNOW, REALLOCATING SOME OF THAT FROM BEGINNING WITH THE DAYTIME SHOWS AS MUCH, UH, CONCERTS AS MUCH.
'CAUSE I, I LOOK BACK TO, YOU KNOW, THE EARLY 20 TEENS, YOU KNOW, WHEN WE WERE ON THE COUNCIL BEFORE CHRIS, YOU KNOW, UH, WHEN THE, THE CROWDS WERE BIG AT NIGHT, UH, AND IT WAS, THERE, THERE WAS A, THERE WAS A CONSISTENCY EVERY YEAR WHERE FRIDAY NIGHT WAS COUNTRY NIGHT, SATURDAY NIGHT WAS ROCK AND ROLL, AND YOU, AND ABOUT THE TIME THE SUN STARTED TO GO DOWN BEFORE THE CONCERTS START, YOU SEE THE CROWDS START TO SWELL AND THEY'RE REALLY COMING IN, YOU KNOW, FRIDAY NIGHT, YOU KNOW, ITS BOOTS AND JEANS AND, AND DAISY DUKES AND, AND, UH, THAT'S JUST THE GUYS AND, UH,
AND THEN, THEN SATURDAY IT'S A WHOLE DIFFERENT CROWD COMING IN.
SO IT'S REALLY FUN TO WATCH THAT DIFFERENT VIBE.
BUT, BUT, UM, BUT THEY WERE COMING IN AND THE LINES WERE LONG AT ALL THE FOOD BOOTHS SO THAT THEY WERE COMING AND THEY WERE EATING AT THE RESTAURANTS.
AND SO, UM, SO I THINK HAVING A, A DRAW OF, OF A CONCERT, 'CAUSE THEY'RE BOTH IMPORTANT.
'CAUSE PEOPLE DON'T WANNA COME AND JUST GO TO A CONCERT.
THEY WANNA COME AND ENJOY THE FOOD AND A DRINK OR SOMETHING, YOU KNOW.
BUT, UH, BUT HAVING THAT DRAW OF, OF A BIG HEADLINE, I THINK IS IMPORTANT.
AND, UH, AND, AND REALLY, I KINDA LIKE YOUR IDEA ABOUT, AND MAYBE SOMETHING TO THINK ABOUT, I DON'T KNOW.
BUT THEY'RE HAVING SOME SORT OF, UH, PREMIUM SEATING THAT SOMEBODY COULD OPT FOR AS PART OF THAT, YOU KNOW, IF THEY WANNA BE IN THE FIRST FRONT FIVE ROWS OR WHATEVER THAT IS.
I DON'T KNOW HOW MANY PEOPLE THAT WOULD BE.
BUT, UM, SOMETHING TO THINK ABOUT.
UM, I REALLY LIKE THE IDEA OF THE COALITION AND GETTING THAT GROUP AT THERE, THAT YOU GET THAT GROUND SWELL BECAUSE WE HAVE MOMENTUM GOING NOW, YOU KNOW, WE, WE'VE DONE SOME CHANGES THE LAST TWO YEARS, AND SO THE MOMENTUM IS, IS THERE.
SO NOW WE JUST HAVE TO KEEP, KEEP PUSHING THAT UPWARDS.
AND SO I THINK THAT'S AN IMPORTANT GROUP.
AND, AND I THINK IF YOU, IF YOU ASK ANY OF US, ANY OF THE COUNCIL MEMBERS, YOU KNOW, IS THERE ANYTHING THAT WE CAN DO TO HELP IN, IN, IN GROWING SOME INTEREST FROM THE RESTAURANTS? I'M SURE WE'D ALL BE BE WILLING TO, UH, TO DO A LITTLE LEGWORK.
SO WE'RE A RESOURCE IF YOU, IF YOU NEED TO SIGN.
AND I, I CAN ONLY SPEAK FOR MYSELF, BUT I'M PRETTY SURE THAT, UH, I WOULD GET THAT FROM OTHERS TOO.
AND JUST ONE OTHER LITTLE THOUGHT THAT I'VE THOUGHT PRETTY MUCH EVERY EVENT THAT WE HAVE, UM, MEAN ALL OF OUR EVENTS, WE OFFER FREE PARKING, RIGHT? LIKE, IS IT THREE DIFFERENT PARKING GARAGES? YES, SIR.
IT'S REALLY HARD FOR PEOPLE TO EVEN KNOW THAT WE HAVE THAT, BECAUSE WE DON'T, I DON'T THINK WE DO A VERY GOOD JOB OF SIGNAGE ON THAT.
BUT THERE'S REALLY GOOD SIGNAGE WHEN YOU PULL ONTO MORRIS OFF OF ADDISON ROAD THAT SAYS $25 PARKING.
SO I DON'T KNOW HOW WE COMBAT THAT.
OR IF WE NEED TO JUST GET BIGGER SIGNS AND FREE PARKING THIS WAY AND HAVE CHRIS OUT THERE WAVING 'EM DOWN,
[01:00:01]
FREE PARKING CUT, WE, WE'LL GIVE YOU 50% ON THAT FREE PARKING.UM, BUT THAT'S JUST, IT DOESN'T LINE A LITTLE SIDE THOUGHT THERE.
BUT, UM, I MEAN, I APPRECIATE THE, THE, ALL THE EFFORTS AND ALL THAT YOU'VE DONE TO IT.
THINKING BACK TO THAT, THAT FORK AND CORK EXPERIENCE, WHICH WAS INTERESTING TO GO THROUGH FOR TWO YEARS, WE DID FORK AND CORK, AND THE IDEA WAS OF THAT WAS TO, I THINK THE CONVERSATION STARTED WITH THAT WAS, HOW DO WE GET MORE OF THAT AUDIENCE TO COME IN THAT'S GONNA COME BACK AND GO TO OUR NICE RESTAURANTS? AND THAT WAS REALLY KIND OF WHAT THE, THE GENESIS OF THAT I THINK WAS TO, WAS TO CHANGE OUR TARGET MARKET SORT OF.
AND, UH, THERE WERE SOME PARTS OF IT THAT WERE REALLY, REALLY GOOD, BUT WE GOT A LOT OF NEGATIVE FEEDBACK, ESPECIALLY FROM, 'CAUSE THE, THE PRICE POINT WAS SIGNIFICANTLY HIGHER.
AND WE GOT A LOT OF FEEDBACK FROM FOLKS, UH, THAT SAID, WELL, ALL OF A SUDDEN WE JUST WE'RE EXCLUDING THE FAMILIES AND NOW IT'S A REALLY GREAT FAMILY EVENT.
YOU KNOW, I LOVE ALL THE THINGS THAT YOU'RE DOING WITH ALL THE LITTLE US OUT THERE.
AND, UM, SO YOU, YOU CAN INCLUDE ALL THAT.
AND YOU HAVE, I THINK YOU'VE INCORPORATED ALL THAT INTO, INTO THE CURRENT TASTE STATUS.
AND SINCE WE LITERALLY USE EVERY SQUARE FOOT OF THE PARK IN THE THEATER CENTER AREA.
SO, UM, BUT REALLY GREAT JOB WITH THAT.
I GOT ONE OF THOSE SMALL QUESTIONS.
UM, THERE'S SEVERAL REFERENCES TO 2027, LIKE WE JUST SKIPPED 26.
IS THAT BECAUSE THE BUDGET'S ALMOST SET FOR 26 AND WE'RE LOOKING BEYOND THAT? IS THAT, IS THAT THE REASON WHY 27 IS BEEN TALK ABOUT SO MUCH? NO, NOT NECESSARILY.
SOME OF IT IS JUST DEPENDENT ON THE COALITION AND WHERE YOU'RE AT AND WHAT THAT LOOKS LIKE.
AND SO ALLOWING SOME TIME FOR CHANGE TO HAPPEN.
JUST WANNA MAKE SURE I DIDN'T MISS 26.
NO, ALL NOW, YOU KNOW, IF YOU GO BACK TO 2 20, 23 GOING INTO 24, WE HAD A BIG CHALLENGE AND WE WERE TRYING TO DO A, HEY, HERE'S A FOUR, FIVE YEAR PLAN, OR HERE'S WHERE WE WANT TO GO.
AND THE FIRST THING WE FOCUSED ON WAS GETTING MORE RESTAURANTS.
AND SO, AND THIS IS OVER SIMPLISTIC, RIGHT? WE SAID WE WANT TO MAKE SURE WE GET MORE, THE NUMBER OF RESTAURANTS WE HAD WAS SO SMALL THAT IT WAS TOUGH TO SAY, THIS IS A, THIS IS AN EVENT FOCUSED ON FOOD.
SO WE SAID WE'RE GOING TO GET MORE PEOPLE THERE THROUGH ALL THE EVENTS AND, AND THE DIFFERENT UTILIZATION OF THE SITE THAT ABBY'S DONE AND REACH OUT AND GET THE RESTAURANT.
SO SOME OF THE THOUGHT PROCESS IS NOT GONNA HAPPEN OVERNIGHT.
LET'S GET THE RESTAURANTS UP, GET MORE PEOPLE THERE, HAVE THESE CONVERSATIONS, HOW CAN WE CHANGE THINGS? AND WE THINK BY WE'RE SAYING 27, OBVIOUSLY WE'RE NOT IGNORING 26, BUT WE THINK THAT'S A GOOD TARGET WHERE ALL THOSE, YOU KNOW, WE HAVE 'EM UP RIGHT THERE.
THOSE GOALS CAN START TO ALIGN WHERE WE CAN GET THE INVESTMENT LOWER WHILE STILL HITTING THE RESTAURANTS AND THE PROGRAMMING EXPERIENCES.
SO IT'S TRYING TO TAKE A STRATEGIC VIEW.
I'VE GOT, UH, TWO MORE QUESTIONS.
AND THEY'RE RELATED TO KIND OF WHAT YOU SAID, WHAT RANDY SAID, REVENUE, BASICALLY HOW CAN WE, WE'VE GOT A REVENUE PROBLEM, RIGHT? AND SO ABBY, I THINK YOU WERE TOUCHING UPON IT WITH THE, WITH THE RESTAURANTS YOU PROVIDE A POINT OF SALE.
THEY THEY DO THEIR OWN POINT OF SALE.
SO EACH OF THEM IS, WERE YOU GETTING THAT? UM, THEY WERE, THEY WERE BASICALLY SHARING WITH YOU.
SOME OF 'EM WERE THAT THEY WOULD, THEY WOULD PAY MORE, SO BETTER.
PART OF THE FEEDBACK THAT WE RECEIVED FROM THEM WAS THAT, OKAY, WELL MAYBE IT'S FINE THAT WE STARTED SHARING, WE STARTED GIVING, PAYING INTO THIS.
UM, AS LIKE I SAID, WE, UM, EDUCATE THEM ON WHAT THE TOWN DOES AS FAR AS INVESTMENT.
ONCE WE PUT UP THE TAG, ONCE WE PUT UP THE FACADE SO THAT EVERYBODY HAS A CONSISTENT LOOK WHAT IT COSTS FOR SIGNAGE AND WHAT THAT INVESTMENT LEVEL LOOKS LIKE.
AND A COUPLE OF THE RESTAURANTS IN OUR DOWNLOAD AND DEBRIEF SAID, I DON'T THINK THAT I REALIZED, UM, BUT PERHAPS WE NEED TO CONSIDER PAYING IN TOO.
SO YEAH, I GOT THAT PART, BUT THEN THE, THE TOUGH PART IS WHAT DOES THAT LOOK LIKE? HOW MUCH, RIGHT? RIGHT.
I MEAN, IT'S FUN TO TALK, BUT, UM, YEAH.
DO WE, DO YOU HAVE A THOUGHT ON THAT? UM, I THINK IT CAN LOOK A COUPLE OF DIFFERENT WAYS.
I THINK AS WE START TO TRANSITION, UM, INTO THAT, ONE OF THE MOST POSITIVE FEEDBACKS THAT WE RECEIVE FROM THE RESTAURANT COMMUNITY IS THAT WE REALLY ARE WORKING TO MEET RESTAURANTS WHERE THEY'RE, WHERE THEY ARE.
AND SO THERE ARE SOME RESTAURANTS THAT ARE NOT GOING TO COME OUT AND SELL PRODUCT.
THEY'RE NOT, IT'S PART OF THEIR MARKETING INITIATIVES TO GO OUT AND THEY WANT THE OPPORTUNITY TO MARKET AND PROVIDE FREE SAMPLES.
WE HAVE RESTAURANTS THAT WERE ON THE GROUNDS THAT ARE LIKE, WE DON'T WANT FREE SAMPLES.
AND SO CREATING AN ENVIRONMENT THAT ALLOWS EVERYBODY TO GET A LITTLE PIECE OF THE PIE TO FULLY BUILD OUT THE TASTE EXPERIENCE.
DO I HAVE A SET NUMBER THAT I CAN TELL YOU? YES.
EVERY RESTAURANT NEEDS TO GIVE US 30%.
IT'S MORE OF A HYBRID, UM, LEANING ON OUR COALITION TO SAY, OKAY, FIRST YEAR THIS IS MAYBE WHAT IT COULD LOOK LIKE SECOND YEAR.
THIS IS KIND OF WHAT IT NEEDS TO EVOLVE TO IN THE, IN THE, SORRY, JUST ADD DIRECTLY IN THE BUDGET PRESENTATION.
WE DO CALL OUT, WE SAY, HEY, COULD WE FALL BEFORE WE GONE REVENUE?
[01:05:01]
IN A NORMAL EVENT, YOU AT LEAST DO 20% SAY, HEY, YOU'RE GONNA COME HERE, YOU'RE GONNA DO FOOD 20%.SO THAT'S A NUMBER AS WE START TO THINK ABOUT THAT.
AND THEN GETTING, GETTING IT, UH, TO RANDY'S THOUGHT ABOUT, UH, YOU KNOW, HOW MUCH SHE MIGHT PAY FOR ONE OF THESE VANS AND CHARGING HER $12 AND 84 CENTS.
I MEAN, IN MY MIND IT JUST SEEMS LIKE, UM, IF WE'VE GOT SOME ENTERTAINMENT VALUE WHERE IF WE DO, WE'RE NOT REALLY CHARGING MUCH FOR IT.
SO THAT, THAT IN MY MIND SEEMED LIKE AN EASY ONE TO, TO INCREASE $5.
I DON'T KNOW WHAT, BUT, BUT MORE THAN 1284, IS THAT, AM I THINKING ABOUT THAT THE CORRECT WAY OR DO YOU THINK THAT THAT WOULD SCARE EVERYBODY OFF IF, IF THEY WOULD HAVE TO PAY, UH, $15 TO $20 TO GAIN ACCESS? IT DEPENDS ON WHAT OUR INVESTMENT ON THE ENTERTAINMENT SIDE LOOKS LIKE.
IF I DO AN EMERALD CITY BAND, I DON'T NECESSARILY FEEL LIKE IT WOULD BE WISE TO SKYROCKET THE TICKET PRICE.
EMERALD CITY YOU CAN ALMOST SEE IN ANY MAJOR METRO AREA AND AROUND THE, AND SO, UM, SOMEONE LIKE GEORGE STRAIT ABSOLUTELY RIGHT.
HOWEVER, GEORGE STRAIT COMES AT A PRICE TO BOOK VERSUS WHAT EMERALD CITY BAND WOULD COST.
AND SO THAT'S SOME OF, SOME OF WHAT WE HAVE TO WEIGH.
IS THERE AN OPPORTUNITY TO RAISE TICKET PRICES TO CORRELATE? YES.
WE ALSO HAVE TO SHOW THE VALUE THAT YOU'RE GETTING FOR THAT TICKET PRICE.
AND SO IF IN AN EFFORT TO, YOU KNOW, DRIVING REVENUE IS CERTAINLY THE WAY THAT WE ARE LOOKING TO DECREASE THAT INVESTMENT LEVEL.
UM, THERE'S ALSO LOOKING AT OUR EXPENSES AND LIME LINE ITEM, THOSE ITEMS THAT ARE HARD COSTS.
UM, DO WE HAVE TO HAVE DELAYS EVERYWHERE? CAN WE GO TO A SMALLER STAGE? THOSE ARE ALL THINGS THAT ARE TAKEN INTO CONSIDERATION.
AND SO IT'S NOT AS SIMPLE AS JUST RAISING THE PRICE, BUT CERTAINLY AN OPPORTUNITY TO EXPLORE.
I GUESS IF, IF WE THINK THAT WE NEED TO SOLVE THE PROBLEM AND THE, AND THE BIGGEST PROBLEM IS REVENUE, IT'S LIKE WE GOTTA START SOLVING THAT.
YOU'VE GOT TWO QUICK ONES TOO.
THESE CAN BE QUICK, I PROMISE.
IF THIS SLIDE, AM I, AM I MEETING THIS RIGHT? WHEN YOU SAY GROSS SALES PER PERSON, I BELIEVE THAT'S NUMBER 23 IS AM I SEEING THAT AS THESE PEOPLE ARE ONLY SPENDING 15 BUCKS ONCE THEY GET IN THE DOOR? ON AVERAGE, ONCE WE TAKE THE, THE, NOW YOU HAVE SOME RESTAURANTS THAT GROSS, UM, UPWARDS OF 20 TO 30,000 OVER THE COURSE OF THREE DAYS.
AND THEN YOU HAVE SOME THAT JUST BECAUSE OF THE NATURE OF THEIR PRODUCT, GROSS FAR LESS.
AND SO THAT IS AN AVERAGE OF ALL OF THOSE.
AND THAT'S, AND THAT'S JUST AT THE RESTAURANTS.
I MEAN, THEY COULD GO TO THE CARNIVAL AND SPEND MONEY.
THEY COULD GO TO THE MERCH, THEY COULD GO TO THE BEVERAGE.
THAT'S JUST AT THE RESTAURANT THAT'S, WELL, I SEE BEVERAGE HERE, BEVERAGE IS DOWN AT THE VERY BOTTOM.
IT BROKE AS A TOTAL OF 83,000.
THAT SEEMS, THAT SEEMS WAY LOW.
IT'S JUST FOOD THAT'S JUST FOR THE RESTAURANT.
THAT'S JUST FOOD FOR THE REST.
SECOND QUESTION WOULD BE, DO WE HAVE A NUMBER OF ADDISON RESIDENTS THAT COME THROUGH THE DOOR? UM, I CAN SPLIT THAT OUT THROUGH, UM, THE TICKET RESOURCES THAT WE HAVE.
UM, I THINK THAT ISH, YOU'LL HAVE TO KEEP ME HONEST ON THE NUMBER OF TICKETS THAT WERE SOLD AT, UM, THE ATHLETIC CLUB FOR TASTE.
WE SELL, UM, TICKETS FOR, DID YOU HAVE A GIFT? YES, ACTUALLY I HAVE IT ON THE SLIDE HERE.
UM, 302 ADDISON RESIDENTS TOOK ADVANTAGE OF THE ADDISON RESIDENT DISCOUNT.
AND WHAT IS THAT THROUGH? IT'S, UM, HALF OFF ADMISSION, HALF OFF FOR ADDISON RESIDENT.
UH, ONE ENCOURAGING THING I SAW IN YOUR PRESENTATION, WE GOT 1600 PEOPLE INTO THE PERFORMING ARTS CENTER TO WATCH THE ACROBATS.
CAN WE BOOK THEM 13 TIMES A YEAR? IT'S SOMETHING I TAKE THAT REALLY FUN TOO.
THAT'S THE KIND OF SHOWS THAT I WOULD LIKE TO SEE US GETTING HERE.
I MEAN, THAT'S, THERE'S INTEREST THERE, SO THANK YOU FOR PRESENTING THAT.
I DIDN'T REALIZE HE WAS BROKEN DOWN LIKE THAT, BUT THAT WAS AN ENCOURAGING NUMBER TO MEET.
SOMETHING CAN BE PRODUCTIVE THERE,
ALRIGHT, ANYTHING ELSE FROM ANYBODY? NO, THANK YOU.
AND, UH, I UNDERSTAND THAT THE FOOD IS READY UPSTAIRS.
AND SO LET'S GO AHEAD AND, UH, TAKE A, A BRIEF DINNER BREAK, 15, 20 MINUTES AND WE, UH, THINK WE CAN WRAP, RUN THAT TIME AND THEN, UH, MAKE IT BACK DOWN HERE AT TIME.
SO WE'LL GO AHEAD AND TAKE A RECESS RIGHT NOW AT FIVE NINE.
IT IS 5 56 AND WE WILL RECONVENE BACK INTO OUR OPEN SESSION HERE UP RECESS, AND WE'LL MOVE RIGHT INTO
[b. Present and discuss an overview of the Neighborhood Vitality Grant program.]
ITEM FIVE B.FIVE B IS PRESENT AND DISCUSS AN OVERVIEW OF THE NEIGHBORHOOD VITALITY GRANT PROGRAM.
[01:10:01]
THAT'LL BE LEFT.UM, SO THIS EVENING, UM, I'M GONNA GIVE A, A THOROUGH OVERVIEW OF THE GRANT PROGRAM STARTED BACK TO KIND OF HOW THE PROGRAM DEVELOPED AND WHY THE CONVERSATION STARTED YEARS AGO.
AND THEN THE DEVELOPMENT OF THE PROGRAM AND THEN ALSO QUICKLY GO OVER EVERYTHING THAT'S HAPPENED IN THE LAST YEAR, WHICH WAS THE FIRST YEAR THAT WE HAD TO ADMINISTER THIS PROGRAM.
SO BACK, UM, THIS WOULD'VE BEEN IN 2023, THERE WERE SOME FAMILY NEIGHBORHOODS THAT WERE ASKING IN TOWN TO MAINTAIN SOME EXISTING MAIN STREET SCREEN WALLS.
THEY IDENTIFIED THAT, UM, PREVIOUS TOWN LEADERSHIP HAD COMMITTED TO MAINTAINING THESE WALLS.
AND THEN ALSO THAT FORMER TOWN LEADERSHIP DID, UM, AT THAT TIME, UM, CONFIRMED THERE WAS A VERBAL COMMITMENT TO MAINTAIN THE WALL.
AND I'LL ALSO POINT OUT THAT SOME OF THESE WALLS WERE ON TIME PROPERTY OR WITHIN AN EASEMENT, AND SOME OF THEM WERE NOT.
SOME OF THEM WERE ON PRIVATE PROPERTY, SO THERE WAS A VARIATION OF THAT AND WE'LL, WE'LL, UH, TOUCH ON THAT AS WELL.
SO THE STAFF DID, UM, INTERNALLY REVIEW ALL OF THE PAPER PUTS AND VARIOUS INFORMATION AND DID DETERMINE RITUALS WERE THE CLEAR RESPONSIBILITY OF THE TOWN, UM, BECAUSE THEY WERE EITHER ON TOP PROPERTY OR WITH AN EASEMENT SO FORTH.
SO THEY WERE LOCATED ON, ON PRIVATE PROPERTY AND DID NOT HAVE ANY, ANY, UM, AGREEMENTS OR MAINTENANCE EASEMENTS.
UM, THE STAFF ALSO WENT THROUGH THE, UM, PROCESS OF TRYING TO IDENTIFY HISTORICALLY WHAT AREAS WE HAD BEEN MAINTAINING OR AREAS WE DID NOT 'CAUSE THOSE ALSO DIDN'T ALWAYS ALIGN.
UM, AND WE SHARED THIS WITH COUNCIL, SO IS AT THE TIME COUNCIL GRANT STAFF TO FACILITATE A CONVERSATION REGARDING THIS TOPIC ON HOW WE MOVE FORWARD AND ADDRESS IT.
SO I AM GOING TO KIND OF START FROM THE FIRST ENGAGEMENT OF COUNSEL AND MOVE THROUGH THAT.
SO IN SEPTEMBER OF 2022, UM, ONCE AGAIN, THIS IS REPETITIVE, BUT WE HEARD SOME REQUESTS TO MAINTAIN THESE WALLS THAT DID NOT BELONG TO THE TOWN.
UM, AND SO AT THE TIME WE DID NOT HAVE THE MAINTENANCE BUDGET, UM, TO ACCOUNT FOR THIS ADDITIONAL MAINTENANCE COST FOR THE MAKE ADDITIONAL MAINTENANCE REQUESTS WE WERE RECEIVING.
SEPTEMBER, 2022, COUNCIL ASKED STAFF TO PURSUE AN INVENTORY OF ALL OF OUR EXISTING WALLS TO CLEARLY DETERMINE OWNERSHIP AND MAINTENANCE RESPONSIBILITY OF THOSE RESIDENTIAL MAINSTREAM PERIMETER SCREENING WALLS.
STAFF BROUGHT THAT BACK IN FALL OF 2023.
UH, AND WE PRESENTED AN INVENTORY OF THOSE EXISTING WALLS, WHICH IS COMPLETED BY FINLEY.
UH, THEY'RE A FIRST PARTY, UM, ENGINEERING CONTRACTOR THAT HELPS US DEVELOP THAT REVIEW.
UM, THEY ARE A PROFESSIONAL ENGINEERING FIRM AS WELL.
SO THEY BROUGHT BACK THAT INVENTORY.
SO, AND STAFF PRESENTED THAT TO COUNCIL TO IDENTIFY WHAT AREAS WERE CLEARLY ARE RESPONSIBLE AND WHAT NOT.
AND WE ALSO, UH, DISCUSSED MAINTENANCE COSTS AND OTHER POSSIBLE POLICY CONSIDERATIONS, UM, WITH THE ONGOING MAINTENANCE OF THESE WALLS.
AT THAT MEETING IN AUGUST 23, STAFF, UM, EXCUSE ME, COUNCIL ASKED STAFF TO PROVIDE ADDITIONAL INFORMATION TO POTENTIALLY PURSUE ITS EXPLORATION OF, UH, VARIOUS, UH, BRANCH PROGRAMS OR MAINTENANCE PROGRAMS RELATED TO THESE, UM, THAT MOVING FORWARD, UM, FALL OF 23.
SO THERE WERE SOME POSSIBLE POLICY CONSIDERATIONS TO ADDRESS THESE UNIQUE ONGOING MAINTENANCE CONCERNS.
UM, THE FIRST WAS, WAS NO ACTION.
SO WHAT THAT WOULD ULTIMATELY MEAN WAS ANY WALL THAT WAS ON PRIVATE PROPERTY WOULD BE THE SOLE RESPONSIBILITY OF THAT PROPERTY OWNER, AND WE WOULD LIKELY PURSUE THAT VIA CODE ENFORCEMENT PROCESS IF IT GOT TO THAT POINT.
UM, OPTION TWO WAS THAT THE TOWN JUST TAKES FULL RESPONSIBILITY AND MAINTENANCE OF ALL OF THE WALLS.
AND THEN THE THIRD OPTION WAS TO EXPLORE AN ALTERNATIVE TO SUPPORT THE MAINTENANCE AND STRAINING RESTRAINING WALLS WITHOUT TAKING ON FULL LIABILITY.
SO THROUGH THAT, UM, COUNSEL'S DIRECTION WAS TO EXPLORE THE THIRD OPTION, WHICH WAS, UH, IDENTIFY AN ALTERNATIVE, UH, MAINTENANCE PLAN.
THROUGH THIS DISCUSSION, IT WAS EMPHASIZED THAT THESE MAINTENANCE
[01:15:01]
WALLS, UH, WERE AROUND THE PERIMETER OF OUR RESIDENTIAL, UH, NEIGHBORHOODS, AND THEY DID HAVE A SIGNIFICANT VALUE TO THE CHARACTER AND CONTINUITY OF ADDISON.THEY DID PROVIDE A UNIFORM AESTHETIC BUFFER ALONG OUR, UH, CORRIDORS AND THOROUGH PAIRS, UM, ALONG OUR RIGHT OF WAY AND OFFERED, UM, CONSISTENT SCREEN THROUGHOUT THE AREA.
YEAH, SO THEN LOOKING FORWARD NOVEMBER OF 23, UM, COUNSEL, UH, WE REENGAGED COUNSEL AGAIN AND, UH, PRESENTED ADDITIONAL RESEARCH ON THE SCREENING WALLS.
UM, AND THEN THROUGH THAT DISCUSSION THIS, UH, COUNSEL DID ASK STAFF TO EXPLORE FURTHER EXPLORE THE CREATION OF A GRANT PROGRAM WINTER OF 24, WHICH WAS FEBRUARY, 2024.
UH, WE BROUGHT BACK THE NEIGHBORHOOD VITALITY GRANT OR NBG PROGRAM AS IT'S COMMONWEALTH FALL.
UH, AND THAT WAS APPROVED FEBRUARY 13TH, 2024 VIA A RESOLUTION.
AND THAT PROGRAM WAS FOR AN 80 20 SPLIT, UH, SPECIFICALLY FOR THE REPAIR AND MAINTENANCE OF RESIDENTIAL PERIMETER MAINSTREAM SCREENING WALLS.
THE FOLLOWING YEAR, UM, THE CITY COUNCIL APPROVED A HUNDRED THOUSAND DOLLARS TO FUND THAT GRANT PROGRAM, UH, WHICH TOOK EFFECT OCTOBER 1ST OF LAST YEAR.
AND SO WE ARE NEARING THE COMPLETION OF THE FIRST YEAR OF THE IMPLEMENTATION OF THIS PROGRAM THAT WAS ADOPTED IN FEBRUARY OF 24.
SO THAT'S KIND OF THE HISTORY LEADING UP TO THIS POINT.
UM, I'M GONNA QUICKLY REVIEW THE MAINSTREAM SCREENING WALL INVENTORY, UM, THAT WAS CONCLUDED, UM, BY FINLEY THAT I REFERENCED EARLIER.
SO THIS IS A QUICK SNAPSHOT OF ADDISON.
UH, YOU SEE THE AIRPORT IN THE CENTER.
SO EVERYTHING THAT'S IDENTIFIED IN RED IN THIS MAP IS PRIVATE MAINTENANCE AND OR RESPONSIBILITY BASED UPON YOUR PROFESSIONAL OPINION.
AND THEN ANYTHING YOU SEE IN BLUE, UM, BOTH IDENTIFIED THAT IT, IT IS THE RESPONSIBILITY OF THE TOWN.
SO YOU CAN SEE, UM, THERE'S A VERY SMALL AREA, UM, IN BLUE IN UM, WEST ADDISON THAT THE TOWN DOES, UH, MAINTAIN IS RESPONSIBLE FOR DOING THAT.
UM, SO YOU CAN SEE THERE IS SOME INCONSISTENCY OF WHERE WE ARE, UM, RESPONSIBLE FOR MAINTENANCE THROUGHOUT ADDISON.
THIS IS, UH, A TABLE THAT WAS ALSO PRODUCED.
UH, REALLY THE FOCUS OF, FOR THE DISCUSSION OF WHO'S RESPONSIBLE IS ON THE FAR RIGHT HAND SIDE OF THIS TABLE, UH, YOU SEE RESPONSIBILITY WITH AND THAT YOU HAVE, UH, VARIOUS COLUMNS RELATED TO H TWO A, THE TOWN INDIVIDUAL LOT OWNERS, COMMERCIAL PROPERTY OR NOT THE TOWN.
UM, SO IN THAT, IN THAT INSTANCE WE KNOW IT'S NOT RELATED TO THE TOWN, BUT IT WAS, UM, UNABLE TO BE DETERMINED WHO EXACTLY THAT WAS THAT RESPONSIBILITY BY.
SO THAT'S JUST A SNAPSHOT OF YOU GET VARIOUS NEIGHBORHOODS AND WHEN AND WHEN NOT THE TOWN IS RESPONSIBLE.
SO THEN TOUCHING ON THE RELATED GRANT PROGRAM.
SO WHEN WE BROUGHT THIS BACK TO COUNCIL AND DISCUSSED THE VARIOUS OPTIONS FOR, UH, OTHER ALTERNATIVES TO SUPPORT THESE MASON DRAIN WALLS WHILE PROVIDING, UH, LIMITED LIABILITY TO THE TOWN, UM, STAFF IS OR OTHER GRANT PROGRAMS THAT ARE COMPARABLE.
COMPARATOR CITIES ARE, UH, AND DO HAVE AN EFFECT NOW AND THEY ARE ADMINISTERING.
UM, SO WE HAVE SEVERAL, UM, OF OUR COMPARATOR CITIES DO HAVE SIMILAR PROGRAMS. UM, YOU CAN SEE THAT THERE'S VARIOUS APPLICATIONS OF THESE PROGRAMS. SO FOR EXAMPLE, ALAN HAS A PROGRAM THAT'S SPECIFIC TO ENTRYWAY FEATURES.
UM, AND THERE'S ALSO, THERE'S FOUR MORE HERE IF IRV AND RICHARDSON, UH, ONCE AGAIN SOME OF THEM HAVE MAX REQUEST RELATED TO THEIR GRANT PROGRAM AND VARIOUS MATCHING CONTRIBUTIONS, UH, OFFERED WITH THEIR PROGRAMS. ADDISON IS ON THE HIGHER SIDE WITH AN EIGHT 20 SPLIT.
UM, AT THE TIME THAT WAS CONSIDERATION OF COUNCIL, UM, GIVEN THAT PREVIOUS TOWN LEADERSHIP HAD UH, COMMITTED TO MAINTAINING THOSE WALLS PREVIOUSLY.
AND THEN I ALSO WANNA TOUCH ON, THERE'S A COUPLE OF OTHER, UH, TEXAS CITIES, COLLEYVILLE AND AUSTIN THAT ALSO HAVE, UH, SIMILAR PROGRAMS RELATED TO, UM, IMPROVEMENTS VIA A PROPERTY, VIA A GRANT REIMBURSEMENT PROGRAM.
AND THEN, SO I'M GONNA, UH, MOVE FORWARD AND TALK ABOUT THE NEIGHBORHOOD BY COLLEGE GRANT FRAMEWORK.
SO THIS IS THE PROGRAM THAT WE CURRENTLY HAVE ADOPTED.
UM, SO THE PURPOSE OF THIS PROGRAM IS TO SPECIFICALLY ADDRESS
[01:20:01]
THE INFRASTRUCTURE AND PROVIDE FUNDS FOR THE MAINTENANCE OF RESIDENTIAL, UH, MAINSTREAM PERIMETER SCREENING WALLS.IT IS THE INTENT TO PRESERVE OUR CONDITION OF OUR NEIGHBORHOODS AND OUR CHARACTER CONTINUITY OF THE AREA, UM, PROTECT OUR NEIGHBORHOOD IDENTITY, IDENTITY AND ALSO ADDRESS ANY SAFETY CONCERNS.
SO ANYONE CAN TECHNICALLY APPLY THE MEANING.
IT COULD BE THE HOMEOWNER ITSELF, IT COULD BE THE HOA OR OTHER NEIGHBORHOOD GROUP IF THAT APPLIES.
UM, OBVIOUSLY WE WOULD WANT, UM, AND NEED THE APPROVAL OF THE HOMEOWNER IN THAT INSTANCE.
WE ACCEPT APPLICATIONS ANNUALLY FROM AUGUST 1ST TO AUGUST 31ST.
AND THOSE WOULD BE CONTINGENT UPON APPROVAL OF, UH, A BUDGET TO FUND THIS PROGRAM.
AND THEN A STAFF USES THE MONTH OF SEPTEMBER TO REVIEW THOSE MEDALS.
AND IF, UM, APPLICABLE WOULD ISSUE GRANT AWARDS IN THE MONTH OF OCTOBER.
SO THAT WOULD BE OUR ANNUAL CYCLE.
UM, THEN THE APPLICANT WOULD HAVE THE FISCAL YEAR, UM, TO COMPLETE THOSE REPAIRS AND HAVE THOSE, UM, FUNDS REIMBURSED IF SUCCESSFULLY COMPLETED.
SO WITH THIS, UH, MENTIONED IT PREVIOUSLY, THE, THE MATCH POST PROGRAM IS AT 80 20.
UM, SO THE APPLICANT IS RESPONSIBLE TO, FROM THE COST OF THESE REPAIRS OR MAINTENANCE AND THEN THE TOWN WILL REIMBURSE THEM FOR 80% OF THE PROJECT COST FOR IMPLEMENTATION PROCESS.
SO AS I MENTIONED, WE UH, AWARD THOSE GRANTS IN OCTOBER, UH, ANNUALLY, UM, IF THE PROGRAM'S FUNDED AND THEN THEY'RE RESPONSIBLE FOR SELECTING THE CONTRACTOR, MANAGING THE PROJECT, SERVING AS ESSENTIALLY THE GENERAL CONTRACTOR, UH, TO MAKE SURE THAT IT'S COMPLETED.
UM, WE ALSO WORK CLOSELY WITH THESE RESIDENTS TO COMPLETE INSPECTIONS AND MAKE SURE THAT IT'S BEING, UM, COMPLETED TO CODE, ET CETERA.
AND THEN, UH, AT THE COMPLETION OF THE, THE PROJECT AND ONCE THEY'VE, UM, PASSED ALL INSPECTIONS, THEN THEY CAN LEAVE AN APPLICATION PROCESS TO SUBMIT FOR REIMBURSEMENT.
UM, AND THEY HAVE TO PROVIDE, UM, VARIOUS FORMS OF EVIDENCE SUCH AS RELEASE OF LIEN, UM, PROOF OF PAYMENT FOR THE CONTRACTOR, SO FORTH.
SO NOW MOVING ON TO THE FY 2025 PROGRAM AND WHAT WE COMPLETED.
SO, UM, THIS IS NOW OUTDATED 'CAUSE THE THIRD PROJECT, UH, FUNDS GOT RELEASED ON FRIDAY.
SO WE ARE NOW COMPLETELY DONE WITH ALL THE GRANT AWARDS THAT WERE ISSUED FOR THIS PAST FISCAL YEAR.
SO IN AUGUST OF 24 WE RECEIVED FIVE GRANT APPLICATIONS.
TWO OF THEM ACTUALLY WITHDREW THEIR APPLICATIONS, UM, ONE OF THEM SOMEWHAT RECENTLY, UM, ONE DUE TO A DEATH AND THE OTHER THEY DECIDED THEY DIDN'T WANT TO PURSUE THE REPAIR AT THAT TIME.
AND SO THREE UM, APPLICATIONS WERE UM, ENDED UP BEING AWARDED THESE REIMBURSEMENTS WITH THE THREE PROJECTS LISTED.
UH, THE TOTAL GRANT REIMBURSEMENT WAS JUST OVER $53,000 AND AS I MENTIONED, THE BUDGET FROM BUDGET OF 3000 LAST YEAR HAD THOSE OTHER TWO PROJECTS.
THOSE OTHER TWO PROJECTS WERE UM, ALMOST AT $22,000.
SO THAT WOULD'VE, UM, INCREASED OUR GRANT REIMBURSEMENT HAD THEY NOT MOVED THROUGH THEIR APPLICATION THOUGH.
UM, AND THEN JUST TOUCHING ON THE BUDGET CONVERSATION, UM, THIS WOULD BE THE SECOND YEAR THAT WE'D BE ABLE TO MINISTER, UM, THE PROGRAM, THE MBG PROGRAM AND APPLICATIONS TO GO LIVE ON AUGUST 1ST, WHICH WAS FRIDAY, UM, IN LINE WITH THE ADOPTED PRO UM, ORDINANCE, OR EXCUSE ME, RESOLUTION FOR THIS PROGRAM.
AND STAFF IS SEEKING A ONE TIME FUNDS TO HUNDRED THOUSAND DOLLARS TO FUND THIS PROGRAM.
UM, CAN I BE HAPPY TO TAKE A QUESTION? UM, YEAH, I'VE GOT A QUESTION.
I JUST WANNA MAKE SURE I UNDERSTAND YOU CORRECTLY ON THE, ON THE TWO THAT THAT DIDN'T MOVE FORWARD.
UM, DID I HEAR YOU CORRECTLY THAT THEY JUST KIND OF DECIDE TO DEFER THE REPAIR, SO NOT MAKE THE REPAIR? CORRECT.
SO ONE OF THEM WAS DUE TO A DEATH AND FOR OBVIOUS REASONS THEY HAD A LOT YEAH GOING ON AND THEY DIRECTLY, WE DON'T HAVE THE TIME TO MANAGE OR TO PAY FOR THIS REPAIR AT THIS TIME, SO WE'RE GOING TO DEFER INDEFINITELY.
THEY DID NOT INDICATE THAT THEY WOULD APPLY NEXT YEAR.
THEY SAID WE DON'T, WE DON'T HAVE THE ASK TO TO MOVE FORWARD WITH THIS RIGHT NOW.
THE OTHER APPLICANT SAID, WE ARE NOT, WE'RE NOT READY TO DO THIS.
HOWEVER, WE MAY REAPPLY NEXT YEAR.
SO I WOULD EXPECT THAT THEY'LL APPLY THIS YEAR, THIS COMING YEAR.
[01:25:03]
SO THE 47,000 WE DIDN'T SPEND, IS IT STILL AVAILABLE PLUS YOU'RE ASKING FOR A HUNDRED OR IS THAT 47 NOW THAT'S OVER WITH THIS? NO.SO, UH, I GUESS THAT'S CORRECT.
YEAH, THIS, THE MONEY'S NOT REAPPROPRIATED SO IT JUST GOES TO FUND BALANCE AND WE REAPPROPRIATE WE APPROPRIATE A HUNDRED THOUSAND SO IT WON'T BE 147 AND WE'LL JUST CORRECT.
UH, GO BACK TO THE SLIDE WITH WHERE THE OPTIONS WERE PLEASE.
WHEN COUNSEL HAD OPTION ONE, TWO, AND THREE.
IT SEEMS LIKE OPTION ONE WAS TO DO NOTHING, OPTION TWO TO DO EVERYTHING AND THEN OPTION THREE WAS TO, FOR ALTERNATIVES, 80 20 IS PRETTY
UH, THAT DOESN'T SEEM LIKE MUCH OF A DIFFERENCE BETWEEN OPTION TWO AND OPTION THREE.
UH, UH, SO THE BIGGEST DIFFERENCE THERE IS, UM, IF WE WERE TO TAKE FULL RESPONSIBILITY, IT WAS GOING TO BE EXTREMELY CUMBERSOME 'CAUSE WE WERE GONNA HAVE TO, UM, OBTAIN MAINTENANCE EASEMENTS AND, AND OR ACQUIRE LAND.
IT JUST DEPENDING UPON THE SCENARIO FOR EVERY PROPERTY THAT WRONG WAY, I APOLOGIZE, THAT WAS SHOWN IN RENT.
SO ANY WALL THAT WAS ON ANY PROPERTY, WE WERE GOING TO HAVE TO ACQUIRE EITHER AN EASEMENT OR REAL PROPERTY IN ORDER FOR US TO TAKE OWNERSHIP OF THAT WALL AND MAINTENANCE.
UM, AND SO THAT WAS GOING TO TAKE A CONSIDERABLE AMOUNT OF TIME AND EFFORT TO GO THROUGH THAT PROCESS PLUS THE ADDED COST OF THE PHYSICAL MAINTENANCE OF THE WALLS.
SO IT WASN'T, IT WASN'T, UM, SO THAT'S THAT SECOND LINE ON OPTION TWO, UM, THAT WE WOULD HAVE TO ASSUME RELIABILITY AS WELL.
THE, UM, WHEN YOU WENT TO THE SLIDE AND IT WAS SHOWING THE, ALL THE XS OF AS TO WHO'S RESPONSIBLE FOR WHAT, I ONLY SAW ONE THAT'S NOT TOWN RESPONSIBILITY AND THAT'S OAKS NORTH.
IS THAT OAKS NORTH THE ONLY AREA THAT THIS APPLIES TO? NO.
UM, SO THIS IS THE TOWN RIGHT HERE, THIS COLUMN UHHUH.
SO WE, IF YOU LOOK AT IT FROM A PERCENTAGE STANDPOINT, THE TOWN IS RESPONSIBLE FOR 19% OF THE TOTAL LINEAR FEET OF WALLS OR APPROXIMATELY 4,800 LINEAR FEET.
AND SO THEN WHEN YOU LOOK AT EIGHT, THE HOA FOR THE RESPECTIVE NEIGHBORHOODS, UM, IS RESPONSIBLE FOR APPROXIMATELY 27%.
SO THIS ONE, THIS ONE WAS UM, UNABLE TO BE DETERMINED WHO EXACTLY WAS THE RESPONSIBLE PARTY.
HOWEVER, IT WAS DETERMINED THAT IT IS NOT THE TOWN.
SO THAT IS CLEAR, SO TO SPEAK.
THERE'S A, THERE'S A DISPUTE BETWEEN THE HOA AND THE IN INDIVIDUAL
SO WE KNOW WE'RE NOT, WE KNOW THE TOWN'S NOT RESPONSIBLE, SO THAT'S WHY WE PUT IT.
BUT IT SEEMS LIKE WE SPENT $50,726 ON THE FENCE IN THOSE NORTH.
WE'RE, WELL, WE'RE NOT RESPONSIBLE THROUGH AN EASEMENT AND THAT, BUT OBVIOUSLY IT'S, IT'S ELIGIBLE FOR THE GRANT.
UM, AND UNDER THE GOAL OF THE, THE PROGRAM WE STATED WHILE WE'RE DOING THIS MM-HMM
UM, CAN WE NOT, I WOULD GO BACK TO THE ORIGINAL PART TO DO THIS THROUGH CODE ENFORCEMENT AND ONCE CODE ENFORCEMENT GOT INVOLVED AND WE, WE'VE GOT TO A POINT WHERE SOMETHING HAS TO BE DONE AND THE RESIDENT SHOWS A NEED FOR HELP TO HELP WITH THAT ONCE, ONCE THAT GETS INVOLVED.
BUT FOR THE THING THAT MAKES MY TEETH PITCH A WHOLE LOT ON THIS IS ONE PERSON CAN GET THIS ENTIRE GRANT.
AND ON THE OTHER END OF THE SPECTRUM HERE, THERE'S NOT A MINIMUM.
IF YOU OWN A HOME AND YOU CAN'T PUT A THOUSAND DOLLARS INTO YOUR PROPERTY, THAT DOESN'T SOUND RIGHT EITHER.
THERE, IN MY OPINION, THERE SHOULD BE A MINIMUM AMOUNT OF THE SCOPE OF WORK THAT YOU QUALIFY AND A MAXIMUM AMOUNT FOR WHAT, WHAT'S THE, WHY ARE THE RESIDENTS GETTING OUT OF THIS IF WE PUT $50,000 INTO ONE PERSON'S EXPENSE.
I JUST DON'T SEE THAT AS EQUITABLE.
AND THAT'S ALL I'VE GOT FOR RIGHT NOW.
LIZ, I'VE GOT A COUPLE QUESTIONS.
SO, UM, FOR THE INDIVIDUAL LOT OWNERS, ARE THERE ANY REQUIREMENTS FOR THEM? SO IF THERE'S
[01:30:01]
A WALL ON THEIR PROPERTY, THEIR PORTION OF THE WALL FALLS, CAN THEY PUT UP WHATEVER THEY WANT? LIKE A CHAIN LINK FENCE? UH, NO, NOT AS A PERMANENT SCREEN WALL.SO SOME OF THESE, UM, I'M GONNA SPEAK IN SOMEWHAT GENERAL TERMS 'CAUSE SOME OF THESE NEIGHBORHOODS HAVE A PLANNED DEVELOPMENT ZONING AND SO SOME OF THE REQUIREMENTS MIGHT BE SLIGHTLY DIFFERENT.
THIS, UH, ISN'T A BLANKET REQUIREMENT 'CAUSE THERE'S VARIATION IN ZONING, BUT GENERALLY SPEAKING, ALMOST ALL OF OUR RESIDENTIAL NEIGHBORHOODS REQUIRE A MASON STREAMING WALL ON THE PERIMETER.
SO IT IS A, IT'S IT, AND THOSE WERE PUT INTO PLACE FOR SOME OF THE REASONS THAT WE KIND OF STATED THE PURPOSE OF THE SCREENING WALL.
PROVIDE CONTINUITY TO PROVIDE SCREENING, UM, MAKE OUR THOROUGH AFFAIRS LOOK CONSISTENT AND NICE.
THAT'S WHY I ASKED THE QUESTION.
'CAUSE WE'VE GOT SOME OF THOSE LONG RUNS, I MEAN LIKE, UM, PROTON AND BELTWAY AND I WOULDN'T WANT TO GET IN A SITUATION WHERE SOMEONE REPLACED IT WITH SOMETHING OTHER THAN MASONRY 'CAUSE THEY COULDN'T AFFORD IT.
AND, AND ALSO I, WE DO HAVE A STANDARD THAT SAYS THAT IF YOU ARE, LIKE IN AN INSTANCE WHERE A SECTION OF YOUR WALL GETS HIT OR FALLS DOWN, IT DOES NEED TO BE REPLACED WITH SIMILAR MATERIAL OF IN COLOR AND AND MATERIAL.
SO THEY COULDN'T COME BACK IN WITH A, YOU KNOW, A PINK BRICK OR SOMETHING.
AND I DID HAVE THAT SAME QUESTION ABOUT DO WE HAVE A MAXIMUM.
UM, SO YOU'VE ANSWERED THAT WITH THIS QUESTION IS FOR YOU, DO WE, DO WE HAVE ANY LIABILITY? SO IF, IF WE, YOU KNOW, I, I GET IT, THE WORK GETS COMPLETED, A WAIVER, YOU KNOW, THE LIEN RELEASES GET SIGNED BECAUSE OF FAULTY WORK.
IF IT WAS TO FALL ON SOMEONE OR, OR, OR CREATE SOME DAMAGE BECAUSE WE PAID FOR A PORTION OF IT, DOES THAT OPEN US UP FOR ANY KIND OF LIABILITY? NO, I MEAN, NO, NOTHING BEYOND THE NORMAL LEVEL OF, OF ANYTHING WE WOULD EVER DO ON A, ON A RESIDENTIAL PROPERTY BY RIGHT.
WE WERE HAVING THEM IN DIGNIFY THE TOWN, WE'RE HAVING THEM PROVIDE ALL THE LABORS TO THE TOWN STAFF.
SO WHEN WE GO OUT THERE AND, AND, AND AGAIN, TOWN STAFF'S NOT DOING ANYTHING IN THIS CASE, WE'RE JUST REIMBURSING MONEY.
SO, UM, WE, I DON'T THINK HAVE ANY PHYSICAL, UH, YOU KNOW, INVOLVEMENT, CERTAINLY NOT UNLESS JUST THROUGH INSPECTION PROCESS INSPECTION.
ARE WE APPROVING PLANS OR ENGINEERING PLANS OR ANYTHING? YEAH, NO.
SO WE DO, UH, WE DO APPROVE PERMITS AND PLANS AND WE DO INSPECTIONS, BUT, UM, THAT WOULD NOT BE ANY DIFFERENT THAN ANY OTHER RESIDENTIAL OR NON RESIDENTIAL PERMIT.
SO THERE, THERE, THERE'S SHORT, THERE'S REALLY NO LIABILITY, CERTAINLY NO INCREASE IN LIABILITY TO THE GENERAL, WHETHER WE DO THE PROGRAM OR NOT, BECAUSE IT'S JUST A MONETARY AND PERSONAL PROGRAM.
UH, LESLIE, CAN YOU GO BACK TO SLIDE FIVE? UM, I'M STRUGGLING A LITTLE BIT WITH THIS WORD MAINTENANCE BECAUSE WHEN I LOOK AT THE PLAN, I'VE LOOKED AT IT, UH, IN DETAIL.
UM, I DON'T, I DON'T REALLY SEE US PROVIDING MAINTENANCE.
IT'S LIKE WE'RE WE, WE, IF WE APPROVE THE GRANT, WE'RE WE'RE PROVIDING FUNDING FOR LIKE A REPAIR OR REPLACEMENT.
AND THEN ALSO IN THE APPLICATION THE, UH, THE APPLICANT IS, IS COMMITTING TO MAINTAINING, UM, THAT WALL.
IS THAT, AM I THINKING ABOUT THAT CORRECTLY? UM, THAT'S NOT, UM, EXACTLY HOW THE, THE APPROVED PROGRAM WAS, UM, WAS WORDED.
SO IT ALSO, FOR EXAMPLE, ONE OF THE PROJECTS THAT WAS COMPLETED THIS PAST FISCAL YEAR, THERE WAS A, UM, A CRACK THAT COULD HAVE LED TO A FAILURE OF THE WALL.
UM, WHAT THIS PROGRAM ALLOWED WAS TO GO IN, PUT BRICK TIES IN THERE TO S RESECURE THE CRACK AND THEN REORDER THE CRACK.
SO I DON'T KNOW THAT IT, UM, IT INDEFINITELY, I I CAN'T TELL YOU IF IT WILL NOT WILL OR WILL NOT FAIL IN 10 YEARS BECAUSE IT'S HARD TO SAY WITH SHIPPING SOILS AND SO FORTH, THERE'S A LOT OF OTHER FACTORS TO CONSIDER THAT SIGNIFICANTLY PROLONG THE LIFE.
AND THAT TO ME SOUNDS LIKE A REPAIR.
DID THE TOWN PERFORM THAT WORK? NO, THAT WAS, DOES THE TOWN GET A MAINTAIN THAT WALL OR IS IT THE OWNER'S? NO, THAT'S NOT, THAT'S ON A PRIVATE, THAT WAS, THAT WAS, THEY SUBMITTED A, A, A REQUEST RIGHT.
THROUGH THE GRANT GRANT PROGRAM.
THEY WERE AWARDED THE GRANT AND THEY HAD CONTRACT TO COMPLETE THAT WORK.
WE INSPECTED IT AND REIMBURSED FOR THE 80% OF THAT WORK.
AND IT WAS, IT'S THAT PARTICULAR WALLS ON PRIVATE PROPERTY AND IT'S THE RESPONSIBILITY OF THE PRIVATE PROPERTY OWNER.
YEAH, I WOULD, I WOULD SAY THAT THAT IS A REPAIR, UM, THAT THE PROPERTY OWNER IS MAKING AND THE TOWN IS FUNDING IT FOR REPAIR AND THE TOWN IS NOT MAIN MAINTAINING.
UM, THAT WELL I JUST, THAT'S JUST MY, MY TAKE ON.
IF YOU, IF YOU THREATEN ME, I'D LOVE TO HEAR IT.
BUT YEAH, I JUST, WHEN UM, WHEN I'VE LOOKED AT THIS THING, UM, I'VE LOOKED AT IT, UH, THERE'S A, UH, ONE EXAMPLE HAS BEEN A REPLACEMENT
[01:35:01]
OF A WALL AND THEN THE HOA HAS TO BASICALLY MAINTAIN IT FOR THE LIFESPAN OF THAT WALL, WHICH IS 40 YEARS MM-HMMSO, YOU KNOW, I'M NOT, I'M I'M THINKING THAT THE TOWN IS NOT THERE.
I GUESS WHAT I'M SAYING IS IT SEEMS LIKE THERE'S STREAMS ATTACHED TO THIS YES.
AND THE PROPERTY OWNER REALLY IS THE ONE THAT, THAT HAS TO BE MAINTAINING IF THE TOWN'S NOT GONNA COME OUT THERE AND, AND DO ANY TYPE OF MAINTENANCE WORK.
YEAH, I I, I WOULD AGREE WITH THAT.
I THINK MAYBE WE'RE, WE'RE SPEAKING THE SAME LANGUAGE.
UM, YEAH, I JUST THINK THAT, THAT THERE ARE THESE WORDS THAT ARE LIKE REPAIR AND REPLACEMENT AND MAINTAIN ARE VERY, VERY SPECIFIC WHEN IT COMES TO THINGS LIKE THIS.
AND THAT'S WHAT I'M DRIVING AT.
AND, BUT THERE IS THE, ALSO THE OTHER POINT IS I'M MAKING IS THERE IS AN OBLIGATION BY THE APPLICANT IS THEY'RE NOT THAT CORRECT.
THE APPLICANT HAS TO MAINTAIN THAT REPAIR THE REPLACEMENT.
IF I CAN JUST, JUST INJECT HER.
SO FOR ME, THE FACT THAT IT'S A SUPPORT MAINTENANCE OF THE SCREENING WALLS, THAT HELPS ME WITH THAT.
IT'S JUST, 'CAUSE IT'S KIND OF A BROADER TERM FOR ME.
INSTEAD OF BEING SPECIFIC ABOUT WHAT WE'RE DOING.
IF IT'S COULD BE, IT COULD BE MAINTENANCE THING.
A MAINTENANCE ITEM COULD BE A REPAIR, IT COULD BE A REPLACEMENT, BUT IT'S JUST SUPPORTING THE MAINTENANCE.
FOR ME IT'S JUST MORE GENERAL TERM.
I GUESS THE POINT I'M MAKING IS THE TOWN IS NOT IN THE, UH, MAINTENANCE.
THAT'S WHAT I LIKE THE WORD SUPPORT BEING IN THERE.
WELL, I'M JUST SPEAKING TO, YOU KNOW, RANDY WAS TRYING TO GET CLARIFICATION ON, ON THIS, UH, SLIDE THREE AND THE WORD MAINTENANCE IS IN THERE.
SO THAT'S, THAT'S WHAT I WAS TRYING TO CLEAR UP IS, IS THE TOWN WOULD NOT BE IF THEY DID APPROVE A GRANT AND FUND AND FUND THE THING, WE'RE NOT IN THE, THE MAINTENANCE BUSINESS AT THAT POINT.
UM, THE THE PROPERTY, YEAH, THAT'S, THAT'S, AND THAT'S NOT HOW I READ THAT OR THAT'S NOT HOW I INTERPRET THAT.
I'M JUST LEGALLY, UM, I WOULD THINK THAT THAT'S, THAT'S HOW THE GRANT READS OR THE APPLICATION READS.
BUT BUT THAT THE, THAT THE, THE PROPERTY OWNER MAINTAINS IT GOING FORWARD.
AND A PART OF THE, AND THAT'S FOR ME THAT I'M COMFORTABLE WITH THAT BECAUSE IT'S IN THE GRANT.
THE FACT THAT IT'S THE WAY, THE WAY IT'S WORDED HERE IS, OH YEAH, I'M JUST ONE THING, YOU KNOW, HE'S LOOKING AT THIS FOR THE FIRST TIME AND I'M JUST TRYING TO OKAY.
WELL I'M JUST KIND OF GIVING YOU WHERE I WAS ABOUT THIS, SO I'M NOT, I'M NOT, I'M NOT ARGUING THE POINT.
AND THIS LINE WAS WHEN IT WAS BEING, UH, WORKED ON.
I MEAN THIS IS WHERE THE SAUSAGE IS.
THIS IS JUST WHEN THE COUNCIL WAS CONSIDERING THESE THREE OPTIONS.
THIS IS NOTHING THAT END UP IN THE FINAL WHICH, WHICH, RIGHT.
AND WE, SO NOTHING TO, THIS IS JUST BACKGROUND HISTORY.
WE, WE'VE ALL EXPERIENCED THIS A LOT WITH OUR PAST HISTORY, BUT RANDY HASN'T.
AND SO I WAS JUST TRYING TO, WELL, I CLARIFICATION, HAVING TO BE REDONE HAS HAD LACK OF MAINTENANCE.
UM, I THINK WE CAN POINT TO A COUPLE OF THESE THAT HAVE THESE BIG NUMBERS AND FROM WHAT I UNDERSTAND, IT WAS DUE TO DRAINAGE AND WATER ISSUES NOT MAINTAINING THAT.
SO I I I THINK THE WORD MAINTENANCE IS A VERY, WORDS HAVE MEANING.
UM, AND WHAT'S TO SAY, FIVE YEARS FROM NOW, WE DON'T COME BACK IN.
THIS SAME PROJECT NEEDS TO BE COMPLETELY REDONE AGAIN BECAUSE WHAT CAUSED THE WALL TO FAIL ORIGINALLY IS STILL THERE.
AND WE, WE COME BACK AND HAVE TO REDO IT AGAIN.
I, I I I JUST SEE THIS, THAT AS A NEVER ENDING.
HAVE YOU SEEN THE APPLICATION PAPERWORK? I DON'T KNOW.
I THINK IT WOULD HELP IF WE SHARED IT WITH HIM BECAUSE IT WOULD, IT WOULD SOLVE THE YEAH.
AND WE ALSO, UM, AND ANOTHER THING WE CAN SHARE IS WE HAVE A, A, UH, SCORING MATRIX.
IT'S LIKE A RUBRIC, UM, TO SCORE GRANT APPLICATIONS.
IN THE INSTANCE, FOR EXAMPLE, IF, UM, IF WE HAD, WE HAD A HUNDRED THOUSAND DOLLARS LAST YEAR, WE WOULD'VE GOTTEN AN EXCESS OF A HUNDRED THOUSAND DOLLARS OF APPLICATIONS.
WE WOULD'VE HAD TO DENY ONE OR MORE OF THEM DEPENDING ON HOW THE FIGURE SHOOK OUT.
UM, SO WE HAD ESTABLISHED A COMMITTEE, UM, AS WELL AS A SCORING RUBRIC THAT IN ONE OF THOSE WAS HAVE LIKE WHAT, WHAT CAUSED IT? UM, SOME MORE, IS IT AN URGENT SAFETY MATTER? UM, WAS IT DUE TO LACK OF MAINTENANCE? SO THOSE THINGS ARE TAKEN INTO CONSIDERATION.
SO, UM, HYPOTHETICALLY IF IT WAS DUE TO NEGLIGENCE THAT THAT PARTICULAR ITEM WOULD SCORE LOWER AND COULD POTENTIALLY NOT QUALIFY, I CAN'T SPEAK 'CAUSE IT'S ON A CASE BY CASE BASIS.
IS THERE, IS THERE ANY APPRAISAL DONE BEFORE OR AFTERWARDS TO WHERE WITH A NEW APPRAISAL SHOWING THE VALUE OF THE PROPERTY GOING UP AND THE TOWN DIDN'T, SOMETHING BACK ON THIS PROGRAM THROUGH PROPERTY TAX INCREASE THAT WALL, THAT WALL'S NOT GONNA INCREASE THE PROPERTY VALUE.
IT'S NOT, YOU'VE GOT, IF YOU'RE SELLING A HOUSE AND THE WALL IS DILAPIDATED IN THE BACKYARD
[01:40:01]
AND THE NEXT DOOR NEIGHBOR'S HOUSE, THE WALL IS GOOD.THE VALUES OF THOSE HOMES ARE GONNA BE THE SAME TO THE, THE WHAT SOMEBODY MIGHT PAY FOR IT WOULD BE, WOULD BE DIFFERENT, COULD BE DIFFERENT THAN THE VALUE.
BUT, BUT IN HAVING A GOOD WALL, HAVING A GOOD WALL THAT'S IN GOOD CONDITION IS AN EXPECTATION.
SO, SO IT'S NOT AN IMPROVEMENT, IT'S JUST GETTING IT UP TO, WELL I KNOW WHEN MY SWINGING POOL IS DRAINED AND I'M RESURFACING AND IT'S DRAINED, YOUR VALUE, YOUR APPRAISED VALUE GOES DOWN AND WHEN YOU REDO THAT, YOUR APPRAISED VALUE GOES UP.
SO WHAT'S THE DIFFERENCE THERE? A POOL ACTUALLY HAS APPRAISABLE VALUE.
SO WE, ARE WE REVIEWING HOW WE GOT HERE OR ARE WE LOOKING AT SOMETHING GOING FORWARD? WAS THIS JUST TO GET EVERYBODY UP TO SPEED ON IT? A REQUEST FOR COUNSEL TO, AND I THOUGHT IT WAS OVERVIEW OF HOW WE GOT HERE.
I'D LIKE TO HAVE A CON YOU KNOW, MAYBE IN THIS CONVERSATION OR WHEREVER IT FITS SOMETHING GOING FORWARD ON HOW WE, YOU KNOW, TALK ABOUT ANY CHANGES.
I DON'T KNOW IF IT HAPPENS HERE OR GO FOR IT.
UM, SO, UM, GO BACK TO SLIDE SIX.
UM, TALKING A LITTLE BIT THAT ONE A LITTLE BIT ABOUT THE REASON.
SO THIS IS KIND OF, THIS IS MORE, UH, HISTORY AND HEARSAY AS FAR AS MASONRY.
UH, THE, THE FIRST SENTENCE, THEY WERE REQUIRED TO BE CONSTRUCTED BY THE TOWN REQUIRED TO BE CONSTRUCTED.
SO THEY, THEY, THEY WERE, THEY HAD TO BE THERE AS PART OF THE DEVELOPMENT.
SO SOMEBODY CAME IN WITH THE DEVELOPMENT TOWN SAYS, YOU GOTTA PUT A WALL THERE.
30 YEARS LATER, NOW WE HAVE TO DO SOMETHING ABOUT MAINTAINING.
SO SOMEBODY HAD SOME OBLIGATION, IT WASN'T VERY SPECIFIC AND NOW WE'RE HAVING TO DEAL WITH IT.
SO IT'S KIND OF A, A PROBLEM THAT'S HAPPENED OVER, AND THIS COUNCILS HAVE WANTED TO DEAL WITH THIS OVER THE YEARS AND NOBODY TACKLED IT.
SO WE FINALLY TACKLED IT AND HERE'S WHAT WE HAVE.
DOESN'T MEAN WE CAN'T CHANGE IT.
SO WHAT GUARDRAILS, AND I DON'T HAVE THE APPLICATION MEMORIZED, SO I MAY MISS MISS SOME OF THE THINGS, BUT WHAT GUARDRAILS WERE IN PLACE FOR LACK OF MAINTENANCE NEGLIGENCE? UM, 'CAUSE IT DOES BURN ME.
AND THEN, UM, WE DON'T HAVE A MAXIMUM RIGHT NOW, RIGHT? CORRECT.
THE ONLY MAXIMUM THAT WOULD BE IN PLACE WOULD BE THE FUNDS AVAILABLE, WHICH FOR LAST YEAR WAS A HUNDRED THOUSAND.
IT DOES BURN ME UP THAT WE DROPPED THAT MUCH ON ONE WALL AND THAT IN MY, MY VIEWPOINT, YOU KNOW, I'M NOT ALL INFORMED, BUT IT LOOKED LIKE IT WAS NEGLIGENCE ALSO.
UM, BUT THAT'S NOT FOR ME TO JUDGE.
SO I SOME SORT OF, UM, MAXIMUM SOME SORT OF, UM, MAYBE A SLIDING SCALE OF THE 80%, 20, 80% DEPENDING ON VALUE TO THE TOWN.
I'M JUST THINKING ABOUT THESE THINGS OUT LOUD.
AND UM, SO IF THAT WALL IS REPAIRED, A WALL IS REPAIRED, THEN WE NO LONGER HAVE LIABILITY AT ALL FOR IT.
SO IT'S, IT'S ONE OF THE THINGS THAT THEY, THEY GIVE UP WHENEVER THEY DO THE GRANT IS THEY TAKE ON ALL FUTURE.
WE KNOW WE DON'T HAVE LIABILITY TO START WITH.
BUT THEY, THEY OFFICIALLY HAVE, CAN THEY, OKAY.
SO WE, AS A COMPLETION OF THE PROJECT CLOSE OUT, WE REQUIRE 'EM TO SUBMIT A MAINTENANCE PLAN.
AS I MENTIONED, THEY'RE REQUIRED TO SUBMIT A, A LIEN RELEASE AS WELL AS, UM, THEY HAVE TO, THEIR CONTRACTOR HAS TO SUBMIT, UM, A PAID IN FULL SURE FORM.
UM, THEY'RE ALSO REQUIRED TO SUBMIT A MAINTENANCE PLAN.
SO ALL OF THOSE THINGS, AND THEN THAT, UM, PROJECT CLOSE OUT IS ESSENTIALLY SAYING IF YOU MOVING FORWARD, YOU ARE RESPONSIBLE FOR MAINTENANCE.
AND SO YOU HAVE, WE HAVE THIS MAINTENANCE PLAN ON RECORD.
UM, IT WAS, IT WAS OUR UNDERSTANDING OF PART OF THIS PROGRAM IS IT WAS KIND OF A ONE, I SHOULDN'T SAY ONE TIME THING, BUT WE'RE, WE'RE GETTING YOU TO BASELINE AND THEN IT'S THE PROPERTY OWNER'S RESPONSIBILITY TO UM, TO TOMORROW THE POINT TO MAINTAIN MOVING FORWARD.
SO IT DOESN'T GET TO A POINT OF DISREPAIR.
SO IS IT CLEAR AND LEGAL THAT IT IS THEIR RESPONSIBILITY GOING FORWARD? YEAH.
CAN THEY REAPPLY FOR A GRANT? TECHNICALLY THEY COULD, BUT AS FAR AS THE SPRAYING MATRIX IS CONCERNED, IT WOULD, THEY WOULD SCORE EXTREMELY LOW.
LIKE WALLS DONE RIGHT FOR THE LAST 40 YEARS.
THE LACK OF MAINTENANCE AND NEGLIGENCE, UH, CONCERNS ME.
UM, AND THEN, UH, A MAXIMUM IS, IS A CONCERN TO ME ALSO.
UM, I'M JUST SAYING THIS AS AS COUNCIL CONVERSATION, NOT GIVING DIRECTION.
UM, AND UM, THE SLIDING SCALE OF REIMBURSEMENT, UH, IS SOMETHING THAT,
[01:45:01]
YOU KNOW, MAY, MAY GO ONTO THE RUBRIC ALSO.SO THAT'S WHAT I GOT FOR RIGHT NOW.
SO THERE'S BEEN CONVERSATION ABOUT OTHER ASSETS TO BE MAINTAINED, LIKE A ROAD, LIKE THE ROAD OVER ON LAKE FOREST.
WHY DON'T WE MAINTAIN THAT? AND I RECALL THE HISTORY ON THIS CONVERSATION IN COUNCIL WAS IT CAN GET STICKY WHEN YOU'RE LOOKING AT OTHER THINGS.
NOT JUST THAT ROAD, BUT SOME OTHER THINGS THAT COULD BE PUT IN.
UM, AND FOR RIGHT NOW, LET'S JUST FOCUS ON THE WALLS BECAUSE THAT IS THE BULK OF, OF THE CONCERN AND VISIBILITY AND UM, UH, AFFECTING MORE OF ADDISON THAN JUST ONE STREET FOR EXAMPLE.
AND THAT'S, THAT'S KIND OF THE, THE IDEA THAT WAS, UH, THAT WE WENT WITH ON THIS FIRST ROUND.
AND, AND I DID SEE THAT, I DID SEE THIS AS AN EVOLUTION IN THIS, UH, IN THIS STRUCTURE IN THE FRAMEWORK.
SO THAT'S A LITTLE BIT MORE BACKGROUND FOR EVERYBODY ELSE FROM COUNSEL.
SO I WAS GONNA SAY, WHEN I FIRST HEARD ABOUT THE PROGRAM, I WAS NEW AND I DIDN'T REALIZE ANY KIND OF LIMITATION AT ALL.
AND I THOUGHT DID ADDISON COULD BE TAKING ON MILLIONS OF DOLLARS OF LIABILITY FOR WALLS ALL OVER TOWN.
THE MIGHT NEED TO BE REPAIRED.
AND THEN WE PUT A LIMIT WITH JUST A HUNDRED THOUSAND.
UM, THIS GENTLEMAN THAT GOT THE 50,000, HIS, HE HAD TO HAVE AN ENGINEER COME IN TO TO REDESIGN AND THEN THE REDESIGN WAS A WALL DIFFERENT THAN THE WAY THE ORIGINAL WALLS WAS BUILT.
SO THEN THERE WAS A QUESTION ABOUT THE 80 20 ON THE NEW WALL OR JUST TO REBUILD IT LIKE IT WAS, BUT THE REBUILD LIGHT WAS, WOULD PROBABLY FAIL AGAIN AND TO REBUILD IT THE WAY THE ENGINEER WANTS.
SO THIS 80 20, IS IT ON THE TOTAL COST OF WHAT THE PERSON HAS TO SPEND OR IS IT PUTTING IT BACK THE WAY IT WAS AND THE IMPROVEMENTS TO THE WALL ARE ON THE HOMEOWNER AND THE HOAI AGREE WITH BOTH OF Y'ALL THAT THERE SHOULD BE A LIMIT AND I WORRY ABOUT HOW EXPENSIVE THIS COULD BE FOR THE TOWN, EVEN THOUGH IF WE'RE ONLY PUTTING A HUNDRED THOUSAND DOLLARS LOT OF MONEY.
BUT, UM, I DON'T WANNA SEE IF I GO TO ONE PERSON, EITHER I WANT A SAFETY SITUATION.
I MEAN THAT WALL COULD HAVE FALLEN AND HIT SOMEBODY WALKING DOWN THE SIDEWALK.
A HOMEOWNER MAY NOT BE ABLE TO PUT THE BILL FOR IT.
UM, I DON'T KNOW WHAT THE SOLUTION IS.
I JUST, I DO HAVE CONCERNS ABOUT THE PROGRAM.
AND UM, I'M CURIOUS ON THAT WALL FOR THE, THAT WE REIMBURSED 50,000, DID WE REIMBURSE 80% OF WHAT THE TOTAL COST WAS? OR DID WE ONLY, AM I ABLE TO ASK THAT QUESTION? YEAH.
DID WE JUST REIMBURSE BASED ON WHAT IT WOULD COST TO PUT BACK THE WAY IT WAS AND THE ADDITIONAL REINFORCEMENT OR WHATEVER WAS ONE BY ONE? YEAH.
SO YES, I CAN NEXT EXPLAIN THAT.
UH, SO WHEN WE FOUND OUT A LOT MORE INFORMATION WHEN THE DEMO WALL OCCURRED IN THE NUMBER OF LAST YEAR, SO WHEN THAT WALL WAS DEMOED, THERE WAS ACTUALLY ANOTHER RETAINING WALL THAT WAS BEHIND THAT WALL THAT WAS SECURE IN THE SOIL.
AND IT WAS NOT THE RETAINING WALL THAT FAILED, IT WAS THE SCREENING WALL.
AND THE SCREENING WALL FAILED BECAUSE THE OAKS STORM NEIGHBORHOOD WAS ACTUALLY CONSTRUCTED ON FILL.
SO THAT NEIGHBORHOOD, THERE'S A LOT OF SHIFTING SOILS IN THERE.
UM, AND THAT'S WHY WE BELIEVE IT FAILED AND THAT'S WHY THE ENGINEER BELIEVE THAT FAILED AS WELL.
AND THEN IN ADDITION TO THAT, THE WALL WHEN IT WAS CONSTRUCTED IN THE EIGHTIES WAS NOT EVER, UM, I GUESS THE QUESTION YOU POSE IS, WAS IT TO CODE IN THE EIGHTIES? POSSIBLY.
UM, BUT TO REPLACE THAT WALL, UM, LIKE FOR LIKE TODAY WOULD NOT HAVE BEEN TO CODE.
SO IN THAT SENSE, THE, I'M GONNA SAY THE UPGRADE TO BUILD THAT WALL TO CURRENT CODES, UM, WHICH WE ARE ON 2024.
UM, THAT COST DID GET SPLIT 80 20 WITH THE TOWN AND THE OTHER HOMEOWNER.
BUT IT, BUT IT GENERALLY, YEAH, WE'RE NOT GONNA REIMBURSE FOR ENHANCEMENT.
SO THE OTHER, THERE'S OTHER SECTIONS OF THAT SAME WALL THAT DON'T HAVE THE EXTRA, YOU KNOW, FEW FEET.
SO IF SOMEBODY CAME IN AND SAID, HEY, WE WANNA REPLACE THIS, BUT TO GO UP TO THAT ADDITIONAL HEIGHT, THEY WOULD ONLY GET 80 20 FOR THE HEIGHT AS IT EXISTED, THAT ADDITIONAL WOULD BE A HUNDRED PERCENT ON THE PROPERTY LINE.
SO I THOUGHT ON THIS PARTICULAR WALL, THE, THE ENGINEER, UM, PLANS WERE PI AND FOOTERS THAT DIDN'T EXIST BEFORE AND NOW THEY EXIST TO PREVENT IT FROM FAILING AGAIN, WHICH YOU'D WANT TO BUILD IT SO IT DOESN'T FAIL AGAIN.
SO HE WAS REIMBURSED FOR ALL, IS THAT RIGHT? THAT IS CORRECT BECAUSE THE PEERS THAT WERE CONSTRUCTED, ONCE AGAIN, THAT WAS, THAT'S THE QUESTION.
THE PEERS THAT WERE CONSTRUCTED IN THE EIGHTIES MAY HAVE BEEN TO
[01:50:01]
CODE AT THAT TIME.THOSE SAME, THAT SAME SCENARIO WOULD NOT BE TO CODE TODAY.
SO WE WOULDN'T, WE WOULDN'T HAVE EVEN ALLOWED THAT FROM A PERMIT MEETING STANDPOINT.
NO ENGINEER WOULD'VE SEALED THAT.
AND AN ENGINEER, A SEALED ENGINEERING PLAN WAS REQUIRED FOR THAT WALL.
'CAUSE IT'S REQUIRED ANY WALL GREATER THAN FOUR FEET TALL PER BUILDING CODE.
AND SO THAT PARTICULAR WALL, WE KNOW IT STARTED AS TWO SECTIONS ENDED UP BEING FOUR.
AND WE WERE AT THE MAXIMUM OF OUR A HUNDRED THOUSAND DOLLARS GRANT AND THEN WE RAN INTO THAT PROBLEM AND NOW THAT WALL'S GONNA COST TWICE AS MUCH.
HOW DO WE SOLVE THAT? SO THERE'S A, THERE'S, IN THAT SCENARIO, THERE'S PROBABLY TWO OPTIONS.
THE FIRST OPTION WOULD BE TO ENGAGE COUNSEL AND SEE IF THERE WOULD BE AN INTEREST IN FUNDING ADDITIONAL FUNDS INTO THAT PROGRAM TO MAKE UP THOSE DEFICIENT FUNDS OR PUT THAT ON THE RESPONSIBILITY OF THE HOMEOWNER.
'CAUSE THEN, AND FROM A, FROM A LIABILITY AND RESPONSIBILITY STANDPOINT, THE HOMEOWNER'S RESPONSIBLE REGARDLESS, UM, THIS GRANT PROGRAM WAS TO SUPPORT THE COMMUNITY, UM, BY REIMBURSEMENT AND FOR THE FUNDS.
SO I DON'T KNOW IF THAT ANSWERED IT BECAUSE IF THEY, THEY'RE HALFWAY INTO THIS AND NOW IT'S GONNA COST TWICE AS MUCH AND THEY DON'T HAVE, SO, SO THE, WE WOULD'VE TO COME TO COUNCIL AND SAY, DO YOU WANT TO INCREASE THE AMOUNT? IF YOU SAID NO, THEN THERE WOULD BE NO MONEY.
THEY WOULD, IT WOULD BE ALL BORN BY THE PROPERTY OWNER.
SO THE TOWN COULDN'T FINISH THE PROJECT FOR THEM.
WE ONLY HAVE THE MONEY APPROPRIATED BY COUNCIL.
SO IF WE WENT OVER THAT, WE'D HAVE TO COME AND COUNCIL, ASK FOR A BUDGET AND, AND COUNCIL COULD APPROVE THAT.
BUT THAT'S NOT SOMETHING WE COULD DO FROM STAFF LEVEL.
YOU KNOW, LAST YEAR WHEN WE SAW THIS FOR THE FIRST AURORA, AT LEAST WHEN I SAW IT FOR THE FIRST TIME, UM, I WASN'T CRAZY ABOUT THE IDEA.
UM, I THINK NOW I DO SEE SOME OF THE VALUE I WOULD HATE TO GET IN A SITUATION WHERE ONE OF THOSE LONG STRETCHES OF WALLS FAILS AND WE HAVE TO SIT THERE AND LOOK AT IT BECAUSE EITHER THE HOMEOWNERS OR THE HOA CAN'T AFFORD IT.
SO I THINK, I DO THINK THERE'S SOME VALUE IN THE PROGRAM, BUT I WOULD LIKE TO SEE SOME SORT OF MAXIMUM.
AND I DON'T KNOW WHAT THAT WOULD LOOK LIKE.
UM, I ALSO THINK IT SHOULD BE, YOU KNOW, A ONE TIME GRANT.
SO IF YOUR WALL FAILS IN FIVE YEARS, YOU CAN'T APPLY AGAIN.
UM, I, I THINK THAT'S REALLY, I AGREE WITH, UNDERSTAND.
I AGREE WITH EVERYTHING YOU JUST SAID.
SHOULD, SHOULD, SHOULD HAVE SENT OUT A MAXIMUM PER PROJECT.
AND, UH, AND YEAH, IT'S A ONE TIME BILL OR MAYBE IT'S, YOU KNOW, MAYBE 10 YEARS DOWN THE ROAD YOU CAN, OR RIGHT, RIGHT.
I THINK WAY YOU GET, ONE WAY YOU GET TO A MAXIMUM AMOUNT IS TO LOWER 80 20 AND PUT IT AT LEASE IT.
THE ONLY THING I WOULD EVEN LOOK AT IS 50 50.
MAKE HIM, MAKE THE HOMEOWNER HAVE AS MUCH SKIN IN THE GAME AS THE CITY DOES.
I AGREE THAT I DON'T WANT TO GET IN A SITUATION EITHER WHERE WE HAVE WALLS LAYING IN PEOPLE'S YARDS THAT CAN'T FIX, BUT IN THAT CASE, WE ALSO HAVE ALTERNATIVES THROUGH CODE ENFORCEMENT.
IT'S JUST LIKE, YOU DON'T MOW YOUR YARD.
WE'RE GOING TO COME IN AND CHARGE YOU MOW YOUR YARD.
AND IF IT COMES TO HAVING TO PUT A LIEN ON YOUR HOUSE WHEN YOU SELL THE HOUSE, SO BE IT.
THE CITY'S GONNA BE MADE HUMBLE.
UM, BUT RANDY, RANDY, THE WAY I SEE THAT THOUGH, THERE, THERE'S FOLKS IN OUR COMMUNITY THAT AN EXTRA THOUSAND, 5,000 BUCKS, IT'S NOT DOABLE FOR 'EM.
AND SO, SO THIS IS, THIS IS A, THIS IS A, A LIFESAVER FOR THEM.
IT IS A LIFE, WHAT YOU CALL IT, LIFE LIFELINE.
WHEN WE GET INTO THE TAX RATE, WE'RE TALKING ABOUT LOWERING PEOPLE'S TAXES.
THAT TAXES WILL REMEMBER THAT WHEN WE DO THAT.
I AGREE THAT A THOUSAND DOLLARS IS A LOT OF MONEY.
WELL, IT DIDN'T SOUND LIKE YOU DID BECAUSE YOU, YOU, YOU ONLY WANTED TO DO 50 50, 25 IS A LOT OF MONEY.
IF WE WENT 50, 50, 50 ON THIS $50,000 DEAL, IT'D BE 25.
WELL, BUT THAT, THAT'S, I DON'T THINK WE SHOULD BE SPENDING $50,000 ON ONE PROJECT EITHER.
I THINK WE'RE, WE'RE AGREEING ON THAT.
DO WE HAVE AN IDEA OR FEEL OF A MAXIMUM AMOUNT? I WAS LOOKING AT A COMPAR, UH, COMPARATORS AND THEY'RE AT THE, UM, OTHER THAN COLLEY, BILL AUSTIN THROW THAT WAY OUT.
THAT'S, THAT'S DOESN'T EVEN FIT.
UM, YOU KNOW, IT'S 10 OR 12 IS SOME OF THE MAXIMUMS. WHAT'S THE FIRST PAGE? UH, CARROLLTON HAS 25, GRAPEVINE HAS 10 AND 5,000 FOR, THERE'S TWO DIFFERENT TYPES OF GRANTS.
AND, AND THEN SOME OF THE MATCH AMOUNTS ARE, AND I KNOW WHEN THE CONVERSATION ON COUNCIL WAS, UH, ADDISON WANTED THE WALLS AS ADDISON WAS BEING BILLED.
SO WE WANT TO BE GENEROUS ON THE REIMBURSEMENT ON HELPING, UM, MAINTAIN, GET THESE WALLS, KEEP THESE WALLS IN SHAPE.
THAT I, I REMEMBER THAT'S GENEROUS.
UM, YOU KNOW, I'M, I'M NOT AS GENEROUS.
SO, UM, THAT'S, AND ALSO WHEN, YOU KNOW, WHEN I, WHEN I MOVED INTO MY HOUSE AND THERE WAS A TREE
[01:55:01]
IN THE FRONT YARD AND I SADLY HAD TO CUT IT DOWN, UM, THAT WAS MY LIABILITY.I MEAN, I MOVED IN AND, AND THE TREE WAS THERE.
SO IT WAS KIND OF A, UM, UM, AN OWNERSHIP PART OF, OF THE HOMEOWNER IS EVEN IF THEY DON'T HAVE A THOUSAND DOLLARS, THEY STILL GET A CODE VIOLATION FOR SUCH.
IF I COULD JUST, WE, WELL, NO, I DIDN'T, AND I DON'T MEAN TO INTERJECT TOO MUCH.
SO WE, WE DID A BIG, WE DID A VERY LONG HISTORY IN FOUR OR FIVE SLIDES.
AND THIS WAS OBVIOUSLY THREE, FOUR COUNCIL COUNCIL MEETINGS AT THE TIME.
BUT A BIG PART OF THE CONVERSATION WAS A LONG TIME AGO, THERE WAS CONVERSATIONS FROM TOWN LEADERSHIP THAT SAID, HEY, WE WILL TAKE ON RESPONSIBILITY OF THESE WALLS.
AND IN SOME INSTANCES WE ACT, THEY TOWN AT THE TIME DID TAKE ON EASEMENTS AND WE ARE MAINTAINING PERIMETER WALLS FOR NEIGHBORHOODS.
SO THERE WAS SOME INEQUITY THAT COUNCIL CONSIDERED.
THEY SAID, WELL, THERE WAS A COMMITMENT.
SOME OF IT DIDN'T GET PAPERED, SOME OF IT DID.
SO WE, ONE OF THE REASONS THE COUNCIL WAS OPEN TO A GENEROUS PROGRAM WAS THAT REASON TO SAY, WE UNDERSTAND THE BENEFIT OF THIS.
OBVIOUSLY THERE'S SOME NEIGHBORHOODS, SOME AREAS WHERE WE'RE DOING IT SOMEWHERE WE OUGHT, WE AREN'T, WE CAN GO AGAINST THAT.
I'M JUST TRYING TO GIVE A LITTLE BIT OF THAT HISTORY OF THAT CONVERSATION AND, AND TO GO WITH THAT THOUGHT.
IT'S, IT'S BASICALLY, HEY, WE ARE NOT DOING THAT ANYMORE.
WE ALL, WE WOULD LIKE TO TELL YOU ON ANYTHING THEY HAVE IN THE PAST MM-HMM
UM, THAT, AND THIS MAP IS WE HAVE DOCUMENTED, UM, RESPONSIBILITY GIVEN TO THE TOWN FOR MAINTENANCE AND RESPONSIBILITY OF THOSE SCREENING WALLS.
SO EVERYTHING YOU SEE IN RED, THOSE AND, AND THOSE PERIMETER SCREEN WALLS, WE HAVE NO DOCUMENTED, UM, MAINTENANCE OR RESPONSIBILITY.
SO THE, SO THE BLUE WE ARE DOING A HUNDRED PERCENT.
AND THAT BLUE IS A HUNDRED PERCENT HAS NOTHING TO DO WITH THIS A HUNDRED THOUSAND.
I WOULD JUST SAY TO WHOEVER SAID WHEN THEY DID IT BEFORE, THE WALLS WEREN'T AS OLD.
TODAY THE WALLS ARE OLDER, SO WE'RE GONNA HAVE MORE FAILURES NOW IN GOING FORWARD THAN WE HAD IN THE PAST.
SO IT IS OBLIGATING US TO A LOT MORE RISK THAN WHAT WAS OBLIGATED BEFORE.
AND I DON'T KNOW HOW THEY JUST FIXED THE, BUT OUR ONLY LEVEL OF RISK IS THE AMOUNT THAT WE BUDGET FOR IT.
AND I THINK, I MEAN, JUST OFF THE TOP OF MY HEAD, I THINK 25,000 IS A GOOD MAXIMUM.
I IAND RESPECT
I DUNNO HOW MUCH WOULD BE MAXIMUM OR MINIMUM.
IF I COULD JUST MAKE ONE, JUST ONE COMMENT ON THE MINIMUM IS PART OF THE GOAL OF THE PROGRAM IS THAT FOLKS COME TO US WITH MINOR REPAIRS.
SO THERE'S, THERE'S NOT, IF THEY CAN DO A MINOR REPAIR NOW AND AVOID A MAXIMUM REPAIR IN SEVEN YEARS AND HAVE IT COST THOUGHTLESS, I WOULD BE HESITANT TO DO SOMETHING THAT WOULD, YOU KNOW, THAT WOULD HAVE SOMEONE AVOID A REPAIR IF IT WAS $5,000.
'CAUSE THAT $5,000 REPAIR COULD REALLY SAVE SOME MONEY IN THE LONG RUN.
SO THAT'S WHEN WE'RE SUPPORTED MAINTENANCE, RIGHT? THAT OR MINOR REPAIRS, SORRY? OR MINOR REPAIRS.
I, I WOULD NOT BE INTERESTED IN A, IN A MINIMUM NECESSARILY, OR LEAVE THAT JUST TO THE RUBRIC.
THIS SECOND EDITION COMMITTEE AND 25 I COULD LIVE WITH ON A MAX MM-HMM
UM, THEN I'M OKAY WITH THAT MINIMUM.
I WOULD, I WOULD HATE TO NOT HAVE THIS PROJECT ONE AND THREE YEAH.
BECAUSE WE, WE HAD A, A MINIMUM GIST ABOVE YOUR THRESHOLD.
AND IT'S FUNDED FROM SURPLUS FROM THE GENERAL FUND.
SO IF WE HAVE A LEAN YEAR, WE MIGHT NOT BE ABLE TO FUND SOME OF THAT ANYWAY.
I WOULD LIKE TO SEE IT, YOU KNOW, A ONETIME GRANT OR ONE TIME, UM, ELIGIBLE IN 20 OR 30 YEARS OR SOMETHING LIKE THAT.
A LONG DIRECT, CAN WE PUT THE LIFE OF THE WALL, THE EXPECTED LIFESPAN? YEAH.
THAT CAN WE DO THAT? THAT'S KIND OF A VAGUES VAGUE.
PROBABLY BE EASIER TO HAVE A YEAR, BUT WE CAN LOOK AT YEAH, I GUESS I WOULD THINK OF LIKE, IF YOU HAD A, A WALL REPLACEMENT, THAT MIGHT BE THE LIFE OF THE YEAR.
BUT FOR EXAMPLE, LIKE PROJECT THREE IN THIS SCENARIO WAS THE, THE BRICK TIES THAT I TALKED ABOUT.
SO THEY DID A MIRE REPAIR TO PROLONG THE LIFE OF THE WALL.
THAT DOESN'T MEAN IF THIS PROGRAM EXISTS IN 10 YEARS, THAT THEY MIGHT NOT NEED TO TO COME IN AND UTILIZE THESE FUNDS AGAIN.
UM, SO IT MIGHT, IT MIGHT VARY SIGNIFICANTLY BEYOND DUE TO THE NATURE OF THE REPAIR OR THE REPLACEMENT.
DO YOU HAVE ANY SUGGESTION I PUTTING YOU ON THE SPOT? UM, WELL, IT COULD
[02:00:01]
BE A SCENARIO WHERE YOU CAN'T SEEK REIMBURSEMENT FOR THE SAME ITEM AGAIN, THE SAME SECTION OF WALL OR THE SAME REPAIR.LIKE WE'RE ONLY GONNA PAY FOR THE REPAIR AND OR REPLACEMENT ONE TIME AND THEN YOU ARE ON THE HOOK FOR IT.
UM, WE CAN DO A LITTLE BIT MORE RESEARCH ON THAT.
I WOULD THIS, I MEAN, AS WE ALL KNOW THAT WE'VE ONLY DONE ONE YEAR.
SO MAYBE PICK A NUMBER FIVE OR 10 YEARS.
BUT WE CAN ALSO COME BACK IN A COUPLE YEARS AND WE HAVE MORE WALLS THAT WE'VE DONE OR BETTER INFORMED ON SOME OF THOSE.
UM, OBVIOUSLY CHANGED THAT IN THE YEAR.
AND ALSO, LOOK, WE HAVE A HUNDRED THOUSAND IN THE BUDGET RIGHT NOW.
IT'S JUST, IT'S COMING FROM A, YOU KNOW, A DEDICATED FUND.
IF, IF YOU SAY, HEY, WE'RE GONNA CAP AT 25, WE WANT TO BUMP THAT NUMBER DOWN A LITTLE BIT IN THE BUDGET AND GO TO 75, I THINK THAT'S FINE TOO.
SO, I MEAN, THERE'S OPTIONS FOR COUNCIL AS WE DEVELOP THE BUDGET.
SO ANYBODY WANNA TALK ABOUT THE, UH, REIMBURSEMENT SPLIT? YOU WANNA STANCE ON THAT? I'D LOVE TO TALK ABOUT IT.
WHAT'S YOUR IDEA? YOU BRING THAT? YEAH, IT'S, I'M NOT AS GENEROUS.
HOWEVER, ADDISON'S MORE GENEROUS THAN ME.
SO I HAVE TO TEMPER MY, UM, FREENESS MY GENEROSITY.
UM, I'M NOT OPPOSED TO 80% I COULD LIVE WITH IT, BUT I WOULD, UM, I WOULD BASE IT ON WHAT PARTIALLY WHAT SOME OF OUR COMPETITORS DO.
I THINK IT'S A GOOD BASELINE TO THINK ABOUT.
UM, BUT I COULD, I COULD STAY WITH 80% FOR ANOTHER YEAR.
AND THEN AGAIN, THE HISTORY AND HOW THIS DEVELOPS IS, IS SOMETHING TO, TO KEEP IN MIND AS WELL.
CAN WE, CAN WE ADJUST THE, UH, THE DECISIONS ON THE, ANY SORT OF LACK OF MAINTENANCE OR ODOR CAUSED, UH, DAMAGE? LIKE IF THEY RAISE THE SOIL LINE IN THE WALL, AND IT'S NOT SUPPOSED TO BE A RETAINING WALL, IT'S NOT A RETAINING WALL, IT'S A SCREENING WALL AND THEY CAUSED SOME OF THAT.
DO WE, CAN WE RAISE THAT BAR? I CALLED IT NEGLIGENCE, BUT WHATEVER THE RIGHT TERM IS, IS THAT SOMETHING, IS THAT COVERED IN THE APPLICATION? I THINK THERE IS, THERE IS A SECTION THAT ASKS LIKE IF, IS THERE A KNOWN COVER? IS THERE A KNOWN CAUSE OF THE, OF THE, THE ISSUE? UM, I THINK THERE'S A SECTION ON THAT.
I MEAN THAT'S, SO I'M LOOKING EXPLORE LIKE HOW, BECAUSE LIKE I SAID, IT'S ON THE RUBRIC.
UM, WE HAVE TO, I, I GUESS EXPLORE HOW WE WOULD, UM, ADD IT TO THE RESOLUTION IN TERMS OF GIVING STAFF A LEVERAGE TO BE ABLE TO MODIFY THAT MATCH BASED UPON, YOU KNOW, PERCEIVED NEGLIGENCE AS YOU DESCRIBED.
UM, I DO WANT TO MAKE IT AS CLEAR FOR THE STAFF TO FOLLOW AS POSSIBLE SO THEY DON'T HAVE TO GET IN TROUBLE BY, YOU KNOW, MAKING A OBJECTIVE SUBJECTIVE DECISION.
UM, BUT IF THERE'S CAN BE SOME, SOME, UH, HIGHER WEIGHT OF, OF THAT.
AND THE OTHER THING IS WHAT HOWARD, THE SCENARIOS HOWARD SET UP WITH THAT WALL AND EXCEEDING OUR FUNDS, THEN WE GET STUCK WITH A, A $200,000 PROJECT AND WE ONLY HAVE A HUNDRED THOUSAND DOLLARS.
I'D LIKE SOMETHING BUILT INTO THE AGREEMENT OR APPLICATION THAT THAT NEVER HAPPENS.
WELL, IF WE PUT A MAXIMUM ON IT, THAT'S ALREADY FIXED, ISN'T IT? YEAH.
'CAUSE IF IT WAS INCOMPLETE, IT WOULD BECOME A CODE COMPLIANCE ISSUE.
AND WE WOULD ULTIMATELY, IF, IF NECESSARY, HAVE TO WRITE THEM A CITATION AND GO TO GO TO COURT AND DISPUTE IT THAT WAY.
WOULD WE EVER FIX THE WALL AND THEN GO LIE ON THE PROPERTY? UM, THAT COULD EVENTUALLY OCCUR.
THAT WOULD, THAT TYPICALLY OCCURS AFTER, UM, WE ISSUED POTENTIALLY SEVERAL CITATIONS WITH NO ACTION.
THAT'S WE, BECAUSE WE'D HAVE TO GET A, A WARRANT WITH TO ON THE PROPERTY COURT.
SO THAT'S TYPICALLY NOT A FIRST RESORT.
THAT WOULD BE A, THAT'S MULTIPLE STEPS IN THE PROCESS.
I DON'T KNOW IF THIS IS REASONABLE.
IF THERE'S AN HOA INVOLVED, I'D BE FINE WITH A 50 50 SPLIT WHEN A HOMEOWNER IS RESPONSIBLE BY THEMSELVES.
SO IF THERE'S AN HOA, THE RISK IS SPREAD TO THE WHOLE NEIGHBORHOOD.
THAT WALL'S PROTECTING THE ENTIRE NEIGHBORHOOD.
'CAUSE IF IT FAILS, IT GIVES ACCESS INTO THE NEIGHBORHOOD.
I I, I'M NOT SURE THAT THAT, UH, THAT THOUGHT MAKES SENSE TO ME.
BEING IN AN HOA, IT'S LIKE WE, WE AS AN HOA HAVE FORCED SAVINGS.
YOU SHOULD, YOU'RE RUNNING YOUR HOA CORRECTLY.
UM, AND THEN, AND BASICALLY YOUR, YOUR, UM, YOU'RE GIVING THE PROPERTY OWNER, THE INDIVIDUAL SINGLE FAMILY HOMEOWNER LENIENCY BECAUSE MAYBE THEY JUST HAVEN'T SAVED APPROPRIATELY.
[02:05:03]
I SEE THAT.I JUST, I DON'T SEE THIS, I DON'T REALLY SEE ANY DIFFERENCE.
UH, I, I HATE TO GET INTO IT BECAUSE SOMEBODY PERCEIVES IT.
LIKE WE GIVE LESS OF A, UH, LESS OF A GRANT TO SOMEBODY WHO'S, WHO WE THINK IS WEALTHY BECAUSE THEY CAN AFFORD IT MORE.
THAT'S NOT WHERE I WAS COMING FROM.
I'M JUST FROM YEAH, IT'S A LOT OF EXPENSE UPON THE HOMEOWNER INDIVIDUALLY.
WHEREAS IF THERE'S AN HOA INVOLVED, THEN IT'S SPREAD ACROSS THE WHOLE, I, WE DON'T HAVE AN HO MONEY, BUT I, YEAH.
AND I DON'T KNOW, I JUST WAS TRYING TO COME UP WITH A COMPROMISE THAT IF WE'RE NOT HAPPY WITH 80 20 SOME OF THE TIME IT'D BE 50 50 IF THERE'S AN HOA INVOLVED SO THAT IT'S NOT ALL ON THAT HOME.
OR, AND IT WAS, I GUESS IN THIS CASE, THE HOA IN, IN OAKS NORTH DIDN'T, WASN'T RESPONSIBLE.
IS THAT RIGHT? I, I THINK THERE'S DISPUTE, VAL, I DON'T AN OKAY, WELL, I DON'T KNOW WHAT THE DIFFERENCE IN AN H HOA WOULD OR GIVING $50,000 AND EVERY TAXPAYER IN TOWN'S ON THE HOOK FOR THAT.
YOU DON'T HAVE, I DON'T HAVE UNDERSTAND, WELL, I'M PAYING, THIS IS $50,000 TAX MONEY.
IF YOU GIVE SOMEBODY $50,000 TAX BILL OR WALL BECAUSE THEY HAVE A WALL IN THEIR YARD, THE PEOPLE ACROSS TOWN THAT DOESN'T HAVE A WALL IN THEIR YARD, THEIR TAX MONEY'S GOING TO IT.
SO I'M NOT SURE IT'S EVERYONE'S RESPONSIBILITY TO MAINTAIN YOUR WALL.
YEAH, I THINK, I MEAN, THERE'S A LOT OF THINGS, TO YOUR POINT THAT WE REQUIRE PEOPLE TO DO WHEN THEY'RE BUILDING NEIGHBORHOODS AND BUILDING HOUSES THAT WE DON'T TAKE RESPONSIBILITY FOR 40 YEARS LATER WHEN WE SAY, WELL, WE MADE YOU DO IT, SO WE'RE GOING, WE'RE GOING TO TAKE RESPONSIBILITY FOR THAT.
SLIDE IMPLIES THAT WE, WE ASSUMED THAT IT IMPLIES WE ASSUMED RESPONSIVE.
THAT'S, THAT'S THE, THE PROBLEM IS IT'S JUST IMPLIED THAT REQUIRED TO BE CONSTRUCTED BY THE TOWN.
THE TOWN HAS MAINTAINED WALLS.
SO IT'S IMPLIED THAT THE WALL IS GONNA BE BUILT TO MAKE ADDISON PRETTY, AND THEN ADDISON'S GONNA TAKE CARE OF THE WALLS.
AND HERE WE ARE 30 YEARS LATER HAVING TO REALLY DO SOMETHING ABOUT IT.
I WALK BY WALLS ON PROTON ALL THE TIME.
I LOOK AT 'EM EVERY DAY AND I SEE SMALL, YOU KNOW, UH, MAINTENANCE ITEMS AND BIG MAINTENANCE ITEMS, AND I'M LIKE, YEP, THAT'S, THAT'S PROBLEM.
JUST, IT'S, IT'S SOMETHING WE GOTTA DEAL WITH.
SO I'M OKAY WITH THE 25 LIMIT.
I'M OKAY WITH A HUNDRED THOUSAND DOLLARS FUNDING THIS YEAR.
UM, JUST, JUST TO LET EVERYBODY KNOW FOR THE THINGS.
AND I, I CAN, I CAN CHANGE ON THE SPLIT OR I CAN, UH, STICK WITH 80, UM, MORE, MORE DATA ON REPAIRS IS, UM, IS WILL BE GOOD AS WE GO ALONG HERE.
ALSO, WE CAN CHANGE THE PROGRAM IN THE FUTURE, RIGHT? MM-HMM
WE DON'T WANNA WIG AND WAG SO MUCH.
WE'D LIKE TO KIND OF COME INTO A CONSTANT, SOMETHING THAT WE'RE GONNA STICK WITH.
SO THE WALL PROBLEMS WE HAVE AROUND TOWN, WE ONLY HAD FIVE APPLICATIONS.
WE HAD SOME QUESTIONS, UH, FROM A COUPLE OTHER INDIVIDUALS, UM, BUT THEY DID NOT CHOOSE TO PURSUE AN APPLICATION.
SO WE'VE ALREADY HAD INTEREST FOR THIS NEXT YEAR.
UM, SO WE'LL SEE HOW MANY APPLICATIONS WE GET.
SO WE'VE ALREADY, WE HAVE SENT IT OUT, UM, OFF OF OUR MARKETING TEAM ON THE NEWSLETTER AND, UM, POSTING ON OUR SOCIAL MEDIA AND SO FORTH THAT WE'RE ACCEPTING APPLICATIONS IN
I THINK WE'VE TALKED ABOUT THIS FOR A LONG TIME.
ARE WE, ARE WE OKAY TO MOVE FORWARD WITH SOMETHING WITH SOME SORT OF LIMIT 25,000? YEAH, I'M, I'M, I'M AGREEABLE WITH THE MAXIMUM OF 25 AND, AND NO MINIMUM, I THINK WE'VE HAD NO, NO MINIMUM CLEAR CONSENSUS OF THAT, THAT ONE TIME FUNDING.
HOW ABOUT A 10 YEAR WAITING TIME? 10 YEAR.
IS IT GONNA COME BACK AS A VOTE OR IS THIS JUST GONNA BE IT'S PART OF THE BUDGET.
WELL, WE'LL BRING A REVISION TO THE ORDINANCE MM-HMM
UM, AND THE BUDGET WILL CONTINUE WITH THAT HUNDRED THOUSAND.
AND, AND TO COVER YOUR POINT, IT NOT, CAN WE MAKE SURE IF IT'S NOT THERE ALREADY IN THE RESOLUTION, BASICALLY TO DARREN'S POINT ABOUT, HEY, THE, THE PROPERTY OWNER HAS TO MAINTAIN IT GOING FORWARD PROPERLY.
BUT WE CAN PROVIDE SOME ADDITIONAL CLARIFICATION AND WE'LL EXPLORE OTHER, I THINK JUST IN CASE IT'S NOT YEAH, WE'LL FIRM IT UP.
WERE YOU SAYING MARLON, UH, THAT IT COULDN'T BE OWNER CAUSED OR IT IS, THEY HAVE A LIABILITY GOING
[02:10:01]
FOR THERE'S WELL, IT'S ALWAYS THEIR LIABILITY.YOUR PROPERTY OWNER, WHOEVER, WHOEVER THAT IS THAT OWNS THE LOSS, THEIR LIABILITY.
OKAY, WELL THE RE REAPPLICATION 10 YEAR WOULD ALL THAT SECOND QUESTION.
WELL, BUT WHAT I'M SAYING IS IF IS IF, UH, LET'S SAY IT'S FIVE YEARS, HALF THE TIME, BUT THEY, THEY DID SOMETHING, UM, THEY DIDN'T MAINTAIN IT.
CAR RAN IN WHATEVER, UM, YOU KNOW, THEY COULDN'T, THEY COULDN'T COME BACK.
YEAH, THAT'S WHAT I, AND JUST TO CLARIFY, IS IT 10 YEARS PERIOD, OR 10 YEARS FOR THAT PARTICULAR ITEM YOU HERE AND THEN AT THE OTHER END OF THE WALL YOU HAVE FOUR SECTIONS AND WE REPAIRED ONE, COULD THEY COME BACK FOR THE SECOND? THAT'S THE QUESTION.
THIRD, THAT'S THE QUESTION SECTIONS, RIGHT? WOULD THAT BE ALSO A PRIORITY IN THE DECISION PROCESS IN THE RUBRIC IS IF THEY GOT A GRANT LAST YEAR AND THERE'S OTHER 10 PEOPLE IN FRONT OF 'EM, THEN THEY DON'T GET A, A GRANT FOR THE NEXT SECTION THAT NEXT YEAR.
UM, I THINK IT'S, IT'S FRAMED AS, AS LIKE URGENCY AND PRIORITY.
SO OBVIOUSLY IF THERE'S A WALL THAT'S FAILING AND THEN THERE'S A WALL WITH A MINOR REPAIR THAT COULD OKAY.
SO, YOU KNOW, WOULD BE FINE FOR THREE MORE YEARS.
WE WOULD, IN INSTANCES WHERE THERE WAS A BUDGETARY CONSTRAINT, WE WOULD ALWAYS PRIORITIZE THE SAFETY CONCERNS OF, OR AN URGENT SAFETY MATTER OVER MINOR REPAIRS THAT COULD BE DELAYED.
WE'RE WORKING ON LANGUAGE THAT SAYS SECTION.
[c. Present and discuss the Proposed Annual Budget for the Town of Addison for Fiscal Year 2026 (Beginning October 1, 2025, and Ending September 30, 2026), including, but not limited to, the General Fund, Utility Fund, Stormwater Fund, Airport Fund, Hotel Fund, Economic Development Fund, Information Technology Fund, Capital Replacement Fund, Infrastructure Investment Fund, and Long-Term Planning.]
FIVE C, UH, PRESENT AND DISCUSS THE PROPOSED ANNUAL BUDGET FOR THE TOWN OF ADDISON FOR FISCAL YEAR 2026, BEGINNING OCTOBER 1ST, 2025, AND ENDING SEPTEMBER 30TH, 2026.INCLUDING BUT NOT LIMITED TO THE GENERAL FUND, UTILITY FUND, STORMWATER FUND, AIRPORT FUND, HOTEL FUND, ECONOMIC DEVELOPMENT, FUND, INFORMATION TECHNOLOGY FUND, CAPITAL REPLACEMENT FUND INFRASTRUCTURE, INVESTMENT FUND, AND LONG TERM PLANNING.
I SEE A COUPLE COMMENTS BEFORE STEVEN GOES.
FIRST, I WANNA THANK STEVEN FINANCE TEAM, ALL THE DIRECTORS ON THE BUDGET PROCESS TO GET TO THIS POINT.
IT REALLY STARTS MONTHS AND MONTHS AGO, AS STEVEN WILL TALK ABOUT TO GET TO, TO GET HERE.
UM, AND WE'RE EXCITED FOR THIS OPPORTUNITY.
ONE THING I WILL NOTE, EV WE'RE GONNA HAVE A COUPLE DEPARTMENTS COME UP THAT HAVE FUNDS AND SO THEY CAN TALK ABOUT THEIR FUNDS AND WHAT'S BEEN GOING ON.
EVERY DEPARTMENT, EVERY DIRECTOR PUT A PRESENTATION TOGETHER THAT HIGHLIGHTS WHAT THEY DID LAST YEAR, WHAT THEY'RE DOING NEXT YEAR, WHAT THEIR BUDGET IS.
WE WANTED TO HAVE THOSE ALL PRESENTED.
WE JUST DIDN'T HAVE ROOM ON THE CALENDAR OVER THE PAST MONTH FOR EACH DIRECTOR TO COME AND PRESENT.
BUT THEY'RE ALL IN YOUR BACKUP.
SO IF YOU WANNA TAKE A LOOK AT THOSE, IF YOU HAVE ANY QUESTIONS RELATED TO THOSE, PLEASE ASK THEM AS WE GO THROUGH THE BUDGET PROCESS OVER THE NEXT MONTH.
A LOT OF GOOD INFORMATION IN THERE.
UM, AND IT'S CERTAINLY THERE FOR YOUR REVIEW.
SO JUST WANTED TO SAY THAT AND KICK IT OVER TO STEVEN.
STEVEN LITMAN, CHIEF FINANCIAL OFFICER.
VERY SHORT PRESENTATION TONIGHT.
SO, UM, THIS SHOULDN'T TAKE AS MUCH TIME AS THE PREVIOUS TWO ITEMS I'M SURE, BUT
SO WE DELIVERED THIS, UH, TO YOU, UM, LAST WEEK, LAST THURSDAY, AND IT WAS POSTED ON OUR WEBSITE LAST THURSDAY FOR THE TOWNS CHARTER AND, UH, GOING FORWARD, UH, THROUGH, THROUGH WORKSHOPS.
SO WE'RE GONNA, SOME OF THIS STUFF YOU'VE ALREADY SEEN, YOU PRESENTED BACK IN JUNE, BACK IN JULY, UH, SOME INFORMATION.
SO SOME OF THIS WILL BE A REHASH OF SOME OF THAT INFORMATION.
UH, AS DAVID MENTIONED, UH, SOME OF THE DEPARTMENTS THAT WILL PRESENT THIS EVENING, UH, OR POTENTIALLY TOMORROW, UH, WILL, UM, HAVE THEIR OWN FUNDS THAT, THAT YOU'LL SEE AND THEY'LL GO OVER THEIR OWN FUNDS AND, UH, SOME OF THOSE DECISION PACKAGES THAT, THAT YOU HAVEN'T SEEN THROUGH THIS PROCESS SO FAR.
BUT, UH, WE'RE GONNA GO OVER A LITTLE BIT OF AN OVERVIEW OF THE BUDGET PROCESS, WHICH WE HAD DONE A COUPLE OF MONTHS AGO.
THIS WILL, UM, BE A, A LITTLE BIT OF A, UH, GOING THROUGH THAT AGAIN, WE'LL GO THROUGH THE PRIORITIES AND FINANCIAL ASSUMPTIONS WE HAVE, UH, WHAT WE CALL RESOURCE MAXIMIZATION.
UH, THAT'S A PROCESS THAT WE LOOK FOR SAVINGS AND EFFICIENCIES THROUGH THE PROCESS.
WE'LL GO OVER THE RESULTS OF THAT.
AND AS WE MENTIONED, WE'LL GET TO DEPARTMENT PRESENTATIONS.
WE'LL HAVE, UH, FASHION WILL COME UP AND GO OVER TO THE AIRPORT.
AND THEN WE'LL HAVE BECKY WHO WILL COME UP AND GO OVER THE PUBLIC WORKS, WHICH IS, UH, UTILITIES STORE, WATER AND STREETS.
AND THEN WE'LL HAVE ABBY COME UP AND SHE'LL GO OVER SPECIAL EVENTS IN THEATER.
UH, AND THEN WE'LL GET INTO A SUMMARY OF ALL THE DECISION PACKAGES.
AND AT THAT POINT YOU'LL HAVE SEEN ALL OF THOSE DECISION PACKAGES.
AND THEN WE'LL GET INTO, UH, THE MAJOR OPERATING FUND, GENERAL FUND, UH, AND GO OVER, UH, REALLY IN DEPTH WITH THAT BUDGET.
AND THEN WE'LL TALK ABOUT NEXT STEPS.
DO YOU WANT US TO WAIT UNTIL THIS, THE PRESENTER HAS GONE THROUGH THEIR PRESENTATION, OR, UH, WHEN DO YOU WANT US TO, TO ASK QUESTIONS OR NOT? I THINK THERE'S NATURAL STOPS IN THE PRESENTATION.
[02:15:01]
YOU.THERE WILL BE A LOT OF SHUFFLING OUT THERE.
SO, WE'LL, WE'LL ALL BE, WE'LL ALL BE TRADING OFF QUITE A BIT.
SO, UM, SO WE SHOWED THIS AT THE, UH, THE JUNE MEETING WHEN WE TALKED ABOUT OUR BUDGET PROCESS.
BUT, UH, IT REALLY STARTS WITH THE STRATEGIC PLANNING EFFORTS THAT COUNCIL DOES IN JANUARY.
UH, STAFF TAKES THAT STRATEGIC PLAN AND THEN WE BEGIN TO DEVELOP OUR BUDGET PACKETS AND BUDGET INFORMATION BASED ON THAT STRATEGIC PLAN.
WE ROLL THIS OUT TO THE DEPARTMENTS AND WE ASK THEM TO START PREPARING THEIR BUDGETS AND AS THEY'RE GOING THROUGH THEIR BUDGETS AND PREPARING THINGS.
AND THESE DECISION PACKAGES ALL TIE TO ONE OF YOUR KEY FOCUS AREAS, ONE OF YOUR STRATEGIC OBJECTIVES.
THESE ARE REALLY THE INITIATIVES TO ACHIEVE THOSE STRATEGIC OBJECTIVES AND KEY FOCUS AREAS.
DEPARTMENTS ARE PRESENTING AND PREPARING THEIR BUDGETS.
WE MEET WITH THE CITY MANAGER'S OFFICE.
WE GET TO, UH, JUNE AND JULY AND WE START GETTING SOME PROPERTY TAX INFORMATION.
WE RECEIVE OUR, UH, CERTIFIED APPRAISED VALUES, UH, BACK, UH, JULY 25TH.
SO THERE'S A VERY SHORT TURNAROUND FROM WHEN WE GET THOSE TO WHEN WE, WE, UH, SUBMIT THAT PROPOSED BUDGET TO CITY COUNCIL ON JULY 31ST.
AND THEN WE'RE HERE IN AUGUST WITH OUR BUDGET WORKSHOP.
AND THEN OVER THE NEXT MONTH OR SO, WE'LL CONTINUE DISCUSSING THE BUDGET.
UH, IF THERE'S ANY FOLLOW UPS, UH, FROM THIS MEETING, WE'LL WE'LL DISCUSS THOSE AT THE FOLLOWING TWO COUNCIL MEETINGS BEFORE WE GET TO SEPTEMBER.
WE'LL HAVE OUR FIRST PUBLIC HEARING, SEPTEMBER 2ND, WHICH WILL BE A TUESDAY.
UH, SECOND PUBLIC HEARING WILL BE AT YOUR REGULAR COUNCIL MEETING ON SEPTEMBER 9TH.
AND THEN DURING THAT MEETING, WE'LL BE ASKED TO VOTE ON THE PROPOSED BUDGET AND TAX RATE.
AND IF THERE'S ANY OTHER FEE CHANGES SUCH AS UTILITY CHANGES OR ANYTHING LIKE THAT, THERE WILL BE ORDINANCES TO ADOPT THOSE CHANGES AS WELL.
AND THEN AFTER THAT, WE BEGIN OUR FISCAL YEAR IN OCTOBER, AND THEN WE REALLY START TO DO IT ALL OVER AGAIN.
SO IT REALLY IS A, A A YEAR, YEAR LONG PROCESS, UH, TO DEVELOP AND MAINTAIN THE BUDGET.
UH, SO JUST SO I KIND OF WENT OVER SOME OF THIS, BUT THE PROPERTY TAX RATE PROCESS IS A LITTLE BIT DIFFERENT.
UM, SO AS I MENTIONED, WE GOT OUR CERTIFIED VALUES ON JULY 25TH.
UM, AFTER, UH, THIS WEEK, THE, UH, THE PROPOSED, UH, TAX RATES WILL BE POSTED, UH, ON THE DALLAS, UH, COUNTY TAX OFFICE WEBSITE.
WE'LL POST THOSE, UM, REQUIRED NOTICES ON OUR WEBSITE AS WELL.
UH, MONDAY, AUGUST 25TH, WE'LL, UH, PUBLISH THE NOTICE OF OUR PUBLIC HEARINGS.
UH, THAT'S A REQUIREMENT, UH, THAT WE HAVE TO DO.
AND THEN AS I MENTIONED, UH, WE'LL HAVE THOSE PUBLIC HEARINGS TUESDAY, SEPTEMBER 2ND, AND TUESDAY SEPTEMBER 9TH.
AND THEN OCTOBER 1ST AGAIN IS THE FISCAL YEAR BEGINNING.
AND GETTING INTO, AS WE TALKED ABOUT, STRATEGIC PLANNING AND KEY FOCUS AREAS.
THIS IS REALLY A LOOK AT WHAT WAS, UH, WHAT WAS APPROVED IN THE FISCAL YEAR 2025 BUDGET.
UH, EACH ONE OF THOSE INITIATIVES THAT ARE LISTED, THERE ARE DECISION PACKAGES THAT WERE APPROVED DURING LAST YEAR'S BUDGET PROCESS.
AND THIS SHOWS HOW THOSE ITEMS TIE TO YOUR KEY FOCUS AREAS.
SO WE DO THAT SAME THING WITH THIS BUDGET THAT YOU'RE, YOU'RE ABOUT TO REVIEW.
SO FOR FISCAL YEAR 2026, AND WE TRY TO FIT THIS ON ONE PAGE, BUT WE NOTICED WE HAVE A LOT OF INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE ITEMS. SO THERE ARE A TON OF, UH, THERE ARE SOME, SOME AREAS THAT HAVE MORE ITEMS THAT, THAT COME UP WITH DECISION PACKAGES THAN OTHERS.
INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE, UH, TENDS TO HAVE, HAVE A LOT MORE, UH, DECISION PACKAGES ASSOCIATED WITH THAT THAN, THAN SOME OF THE OTHER AREAS.
BUT, UM, PUBLIC SAFETY, I THINK IN THE MANAGER'S MESSAGE, IN THE BUDGET, THERE WAS A REAL FOCUS ON THAT.
UH, THIS BUDGET HAS THAT MARCUS, MARKET BASED STEP PLAN IMPLEMENTATION, A COUPLE OF OTHER DECISION PACKAGES, UM, THAT, THAT WE'LL TALK ABOUT, ECONOMIC DEVELOPMENT, UH, THAT FOCUS, UM, THAT WAS DISCUSSED WITH CHANGING, UH, THE PROPERTY TAX ALLOCATION THAT'S INCLUDED IN THIS BUDGET.
AND THEN THERE'S SOME, SOME OTHER DECISION PACKAGES ASSOCIATED WITH THAT.
UH, MOBILITY AND CONNECTIVITY, AGAIN, THOSE ARE, A LOT OF THOSE ARE, UM, YOU KNOW, TRANSPORTATION TYPE PROJECTS AS WELL.
SO PEDESTRIAN IMPROVEMENT, WAY FINDING SIGNAGE.
UM, THOSE ARE SOME ITEMS THAT WE TALKED ABOUT.
UH, IN JULY WHEN WE WENT THROUGH SOME OF THE, SOME OF THE ITEMS, I THINK WE WENT THROUGH ALL OF THOSE EXCEPT FOR THE AIRPORT RELATED ONES THAT WE'LL GET TO, UH, LATER AS FAR AS THE INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE, UH, ITEMS. AND THEN, UH, FINANCIAL HELP, ORGANIZATIONAL EXCELLENCE.
UM, SO THERE IS A REDUCTION IN THE OPERATING TAX RATE, UH, IN THE PROPOSED BUDGET, UH, SO THAT THAT'S IN THERE.
AND THEN, YOU KNOW, CHANGING THAT, UH, TAX RATE OVER TO ECONOMIC DEVELOPMENT A LITTLE BIT.
AND THEN THE M AND O TAX RATE, WE'LL GET INTO WHAT, WHAT SOME OF THESE TAX RATE DEFINITIONS ARE, BUT THAT MAKES MAINTENANCE AND OPERATIONS TAX RATE IS ONLY EXCEEDING WHAT WE CALL THE NO NEW REVENUE TAX RATE BY 0.6%.
[02:20:01]
GO OVER A LITTLE BIT MORE ABOUT THAT IN A LITTLE BIT.UM, WE JUST TALKED ABOUT THE NEIGHBORHOOD VITALITY GRANT, UH, UNDER COMMUNITY ENGAGEMENT AND THEN SOME VIBRANT ACTIVE COMMUNITY, UH, COMMUNITY, UH, ITEMS, WHICH ABBY WILL BE GOING OVER LATER IN HER, UH, PRESENTATION.
UH, WE HAVE EACH DIRECTOR IN TOWN TO, UH, NOMINATE AN EMPLOYEE THAT THEY WOULD LIKE TO SERVE ON THE COMMITTEE.
AND WE MEET, UM, REALLY FOR OVER ABOUT, I THINK WE HAD SIX OR EIGHT MEETINGS THIS YEAR.
AND WE ALSO PUT FLYERS UP AROUND TOWN WHERE ANYBODY CAN SUBMIT, UH, ANYTHING ANONYMOUSLY.
THEY DON'T HAVE TO TELL US WHO THEY ARE, THEY JUST, WE JUST WANT YOUR IDEAS AND WE WANT TO TALK ABOUT 'EM.
SO THE COMMITTEE REALLY GOES THROUGH THOSE IDEAS AND COME UP WITH OUR OWN THINGS AND DISCUSS THOSE AND HOW WE CAN IMPLEMENT THOSE THINGS THAT MAY MAKE TO TOWN A LITTLE BIT MORE EFFICIENT.
UH, AND THAT'S REALLY THE GOAL HERE.
BUT WE'RE NOT TALKING ABOUT POLICY DECISION.
WE'RE TALKING ABOUT JUST DOING THE, THE THINGS THAT ARE ALREADY APPROVED, JUST DOING THEM BETTER AND CHEAPER.
SO SOME OF THE ITEMS THAT WERE, THAT ARE IN THE PROPOSED BUDGET THAT YOU HAVE, UM, THAT ARE RECURRING ITEMS, UH, THERE'S SOME REDUCED PRINTER MAINTENANCE.
UH, THE $6,000 REDUCED PHONE SERVICES, UH, 30, ALMOST $35,000 REDUCED MOBILE DEVICE SERVICE COST ALMOST $24,000.
UH, WE, WE CHANGED OUR BUDGET PRODUCTION AND PRINTING, UH, METHOD, UH, REDUCED $8,000.
UH, THE CHANGES FROM THE NEW TOWN HALL FINANCE, MOVING OVER TO WHAT WE'LL CALL THE NEW, THE NEW FINANCE BUILDING.
THE ELIMINATION OF THE OPERATING COST AT THE OLD FINANCE BUILDING, UH, GENERATES, UH, $66,000 IN OPERATING SAVINGS EACH YEAR.
UM, ELIMINATION OF, UH, SOME SYNTHES CONTRACT FOR FIRST AID.
WE, UH, HAVE OUR FIRE DEPARTMENT DOING ALL THAT NOW.
SO, UH, SO THEY'RE REPLENISHING THOSE, UH, AT A MUCH CHEAPER COST, UH, ELIMINATING COFFEE SERVICES AT A COUPLE OF LOCATIONS AND HAVING OUR STAFF DO THOSE.
WE CHANGED OUR AUCTION VENDOR, UH, WHICH CHARGED US AN 8% FEE, AND NOW IT'S A FEE TO THE PURCHASER, UM, OF THE VEHICLE.
UH, CHANGING THE PROSECUTOR SCHEDULE AT THE COURT SAVED, UH, $4,000.
UH, THE POLICE DEPARTMENT'S UTILIZING, UH, MY A PD FOR ONLINE PARKING EXEMPTIONS, UH, COMMUNITY DEVELOPMENT, UH, TRANSITION, THE, UH, POOL AND SPA INSPECTIONS.
NOW THEIR STAFF IS TRYING TO DO THOSE THAT SAVES 30,000, UH, PARKS, UM, PURCHASED, UH, SITE FURNISHINGS, UM, TO ELIMINATE RENTALS, WHICH SAVES, UH, $2,000.
UH, MARY AND HER TEAM ARE PRODUCING AND DISTRIBUTING THE VISITORS GUIDE IN HOUSE.
THAT'S A BIG SAVINGS, $110,000 EACH YEAR.
UH, THE AIRPORT IS, UH, DOING THE STERILIZATION OF, UH, REGULATED GARBAGE.
UH, ECONOMIC DEVELOPMENT IS, UH, REDUCING PRINTED MATERIALS AND GOING TO MORE DIGITAL, UH, $4,000 IN SAVINGS.
WE'RE ALSO UTILIZING DIGITAL BUSINESS CARDS, UH, $7,500.
AND THEN SPECIAL EVENTS IS REDUCING, UH, OVERTIME OF SPECIAL EVENTS BY 80,000.
SO WE ALSO HAD SOME ITEMS THAT OCCURRED DURING THIS FISCAL YEAR, WHICH WE DIDN'T TALK ABOUT LAST FISCAL YEAR, BUT THESE, THESE ARE ITEMS THAT KIND OF POPPED UP DURING THE YEAR, AND WE WANTED TO RECOGNIZE THOSE AS WELL.
BUT, UH, SO THESE ARE ONE TIME THINGS.
A LOT OF THESE ARE, ARE GENERAL SERVICES.
SO BILL AND HIS TEAM HAVE, UH, REALLY DONE A GREAT JOB OF, UM, NOT NECESSARILY IF THEY CAN DO THE WORK.
UH, THEY, THEY'VE BEEN DOING THE WORK RATHER THAN, UM, YOU KNOW, HIRING A CONTRACTOR TO DO SOME OF THE THESE THINGS.
SO THEY WERE ABLE TO DO THAT AT SAVINGS, $15,000 FROM A CONTRACTOR.
UH, UH, SOME DEMO AT THE, UH, THE ADDISON THEATER CENTER SAVED $25,000.
UH, THE NEW TOWN TOWN HALL, UH, THEY DID SOME OF THE DEMOLITION AND PREP WORK OVER THERE.
UH, THEY WORKED ON SOME OF THE FIRE STATION INTERIOR PROJECTS, UH, TRIM REPLACEMENT AT THE ATHLETIC CLUB.
AND THEN, SO THIS IS SOMETHING THAT, UH, THAT IS INTERESTING AND HOPEFULLY AN ONGOING THING, BUT DETERMINING IF THE VEHICLES THAT WE'RE PURCHASING ARE THE RIGHT SIZE AND, UH, SCOPE OF VEHICLE FOR EACH USER.
SO THEY WERE ABLE TO RIGHT SIZE SOME OF THOSE VEHICLES AT A, AT A LOWER COST OF ABOUT $35,000 THIS YEAR, UH, UTILIZING SOME CUBICLES.
UM, THAT WOULD'VE COST $32,000 TO REPLACE.
UH, HR RECEIVED WELLNESS CREDIT CREDITS AND SPONSORSHIPS.
THOSE WERE, THOSE WERE ACTUALLY CASH, UH, $17,600.
AND THEN, UH, PARKS REFURBISHED, UH, VI TRU AND PARK BENCHES, UH, WHICH TO REPLACE THOSE WAS GONNA BE A LITTLE OVER $36,000.
SO, UM, WAS ABLE TO, TO REFURBISH THOSE.
UH, AND THEN A COUPLE OF BIG ONES, UH, PUBLIC WORKS.
WE DID NON-DESTRUCTIVE TESTING OF THE, UH, WATER LINE ON BELTWAY DRIVE.
THIS WAS A PROJECT THAT WAS COMING UP PRETTY QUICKLY.
UH, THAT WATER LINE IS, I THINK FROM THE
[02:25:01]
1960S.UH, THEY DID SOME NON-DESTRUCTIVE TESTING, DETERMINED IT HAS OVER 20 YEARS OF USE OF LIFE LEFT.
WE HAD THAT ON THE CIP PLAN FOR $1.1 MILLION.
SO THAT COMES OFF THE CIP PLAN.
AND THEN WHEN THEY DO THAT, WHEN THEY DO THAT TESTING, PROBABLY HERE IN 10 OR 15 YEARS, AGAIN, IT MAY POP UP AGAIN, BUT FOR NOW IT'S NOT IN OUR, IN OUR PLAN SINCE THAT CAME BACK AS A, AS A WATER LINE THAT HAS, UH, SOME, SOME SIGNIFICANT USE OF LIFE.
WE SURE THAT'S CAN HOLD IT UP,
I'M OKAY PUTTING THAT IN THE BUDGET.
AND THEN WE ALSO HAD A, A SIGNIFICANT, UH, OPERATING BUDGET ITEM, UH, FOR SOME STORM WATER REPAIRS.
AND THEY WERE ABLE TO DO THESE, UH, WHICH, UH, WERE NOT AS INVASIVE.
THEY DIDN'T HAVE TO RIP UP THE STREET AND DO THESE REPAIRS.
UH, SO FROM WHAT WE BUDGETED TO, WHAT WE ACTUALLY SPENT WAS A SAVINGS OF, UH, ALMOST $600,000, UH, FOR THE STORM WATER IN PLACE FROM THERE.
SO I JUST WANNA MAKE ONE COMMENT ON THE RESOURCE IZATION EFFORTS.
OBVIOUSLY THE ONETIME COSTS, THOSE ARE BIG AND WE'RE GOING THROUGH CAPITAL PROJECTS, BUT REALLY THOSE RECURRING COSTS, THAT WAS SOMETHING WE KICKED OFF WITH THE ENTIRE ORGANIZATION LAST YEAR AND WE GOT A LOT OF BUY-IN AND FOLKS BRINGING IDEAS.
AND SO OVER TWO YEARS NOW, WE'RE ALMOST $900,000 IN OPERATING SAVINGS BY GOING THROUGH AND LOOKING FOR EFFICIENCIES AND JUST GETTING IDEAS FROM FOLKS.
SO I THINK THAT'S A TESTAMENT TO EVERYONE HERE, TO THE ENTIRE ORGANIZATION.
SO, UM, I THINK IT'S, IT'S SHOWING AND WE'RE JUST SHOWING FOLKS THAT WE ARE DOING EVERYTHING WE CAN WITH THE DOLLARS AND THERE'S GONNA BE MORE, WE'LL FIND MORE EFFICIENCIES AS WE GO ALONG.
UM, BUT IT'S A PRIORITY FOR US AS WE GO FORWARD.
THE GROUP'S GETTING VERY CREATIVE.
NOBODY WANTED TO SAY, HEY, YOU CAN LOOK HERE, UH, THIS YEAR I THINK WE, THERE WAS A LOT MORE STONES BACK DURING THIS YEAR, SO, SO IT IS BEEN FUN TOO.
SO ANYWAY, WE'LL GET INTO OUR BUDGET ASSUMPTIONS.
FISCAL YEAR 26, THIS WAS SIMILAR TO WHAT WE SHOWED, UH, BACK WHEN WE DID THE, UH, THE, THE BUDGET INTRODUCTION BACK AT THE BEGINNING OF JUNE.
SO THE BUDGET PRIORITIES WERE, UH, FROM THE CITY MANAGER.
WE'RE TAKING CARE AND MAINTAINING THE ASSETS THAT WE HAVE, INVESTING IN OUR EXISTING EMPLOYEES, UH, MAINTAINING CONSERVATIVE FISCAL APPROACH, UH, AS I KIND OF TALKED ABOUT ALIGNING, UH, THE DEPARTMENTAL NEEDS AND THOSE INITIATIVES WITH THE CITY COUNCIL PRIORITIES, UH, YOUR KEY FOCUS AREAS AND STRATEGIC OBJECTIVES.
AND THEN AS WE JUST WENT THROUGH, IDENTIFY, ANALYZE, AND IMPLEMENT MEASURES TO DECREASE COSTS AND IMPROVE EFFICIENCY, WHICH IS WHAT OUR RESOURCE MAXIMIZATION GROUP DOES.
SO OUR BUDGET ASSUMPTION, WE SHOWED A SIMILAR SLIDE TO THIS, IT'S CHANGED A LITTLE BIT.
UM, SO WHEN WE GOT OUR CERTIFIED VALUES, THEY ACTUALLY WAS A 3.2% INCREASE IN OVERALL TAXABLE VALUE IN THE TOWN.
UH, 1.9% OF THAT INCREASE WAS, WAS ON EXISTING PROPERTIES.
AND THEN WE HAD, UH, A LITTLE OVER $80 MILLION IN NEW PROPERTIES ADDED TO THE TAX ROLL, WHICH, WHICH MAKES UP THE OTHER 1.3% IN THE PROPERTY TAX VALUE INCREASES OUR SALES TAX.
WE'RE PROPOSING A 5.8% INCREASE IN SALES TAX REVENUE BASED ON, WE'VE JUST BEEN PERFORMING WELL IN SALES TAX.
AND BASED ON THAT TREND, UH, THAT'S, UH, UH, A GOOD TARGET FOR US.
BUT AS I MENTIONED, THERE IS A HALF SET INCREASE OR, OR A, WELL, THERE IS A HALF SET INCREASE IN THE DEBT SERVICE TAX RATE, AND AS I MENTIONED, THERE'S A HALF CENT DECREASE IN THE OPERATING TAX RATE.
SO THE PROPOSED BUDGET THAT YOU HAVE HAS THE SAME TAX RATE AS THE PRIOR, UH, FISCAL YEAR.
AND I THINK IT MAY BE THE PRIOR THREE FISCAL YEARS AT THIS POINT, UM, INCLUDED THE BUDGET IS A 4% COMPENSATION INCREASE, PLUS THE $475,000 THAT WAS DISCUSSED BACK ON JUNE 24TH, UH, TO IMPLEMENT THE PUBLIC SAFETY STEP PLAN IMPLEMENTATION.
AND THEN WE ALSO HAVE 7% IN THERE FOR HEALTH INSURANCE INCREASES.
HOPEFULLY WE'LL GET SOME MORE INFORMATION ON THAT COMING UP.
AND, UM, ONE CHANGE, I THINK WHEN I PRESENTED THIS EARLIER, UH, WE WERE PROPOSING AT THAT POINT NO INCREASE IN WATER AND SEWER RATES.
UH, WE STILL HAVE NO INCREASE IN WATER RATES, BUT, UH, TRINITY RIVER AUTHORITY CAME BACK WITH ABOUT A 13.5% INCREASE IN OUR, UH, SEWER SERVICE TO THEM SO THAT WE'RE ABLE TO ABSORB THAT.
BUT WE ARE, UH, NEEDING A 1% INCREASE IN SEWER RATES.
OUR RATE MODEL HAS A 5.5%, UH, INCREASE IN THERE.
SO WE'RE STILL WELL BELOW WHAT'S IN THE RATE MODEL, BUT, UH, BIG INCREASE FROM TRINITY RIVER AUTHORITY, UH, RELATED TO, TO SEWER SERVICE FOR US.
[02:30:01]
A QUESTION ON THAT.SO ON THAT 5.5%, THAT'S WHAT WE APPROVED AS THE MODEL TO GO FORWARD.
AND SO INSTEAD OF 5.5 ON WATER AND SEWER, IT'S 1%, IT'S ZERO ON WATER AND 1% ON SOIL.
SO IT IS WELL UNDER WHAT WE HAD PROJECTED.
YEAH, I THINK, I THINK GOING, GOING FORWARD THAT THOSE HAVE BEEN, THOSE RATES HAVE KIND OF BEEN COUPLED TOGETHER THAT WE'VE DONE THE SAME RATE INCREASE FOR BOAT, BUT WITH TRINITY RIVER AUTHORITIES PROJECTION ON THEIR WHOLESALE INCREASES, WE'RE GONNA PUT TO DECOUPLE THOSE, UH, BECAUSE WE GET ALL OF OUR WATER FROM DALLAS THIS YEAR, UH, NOT MUCH OF AN INCREASE.
AND, UH, TRINITY RIVER AUTHORITY HAS SOME BIG PROJECTIONS, BIG PROJECTED INCREASES IN THERE.
SO GOING FORWARD, THE SEWER SIDE MAY BE A LITTLE BIT HIGHER THAN WHAT WAS IN THE MODEL.
UH, I THINK THE WATER SIDE, WELL, THE WATER SIZE IS ALREADY SIGNIFICANTLY LESS THAN WHAT RIGHT.
WE ORIGINALLY HAD IN THE MODEL.
UM, ON THAT SLIDE WHERE YOU TALKED ABOUT THE 3.2% OVERALL INCREASE IN TEXTUAL PROPERTY VALUES, MAY, MAYBE I MISSED IT, BUT WHAT, WHAT KIND OF INSIGHT CAN YOU GIVE US ON THE VALUE OF THE OFFICE TOWERS? SO NOT GREAT.
UM, I THINK THAT WE'RE OVERALL LOOKING AT A DECREASE FROM CERTIFIED VALUE FROM LAST FISCAL YEAR TO THIS FISCAL YEAR.
AND I'LL HAVE TO REALLY DIG INTO THAT.
BUT WHAT I'LL SAY IS THAT REALLY ALL OF THEM, AND NOT JUST NOT JUST OFFICE, YOU KNOW, MULTI-FAMILY RETAIL, ALL OF THE LARGE PROPERTY OWNERS END UP SUING THE ABRASIVE INDUSTRY.
UM, SO WE STILL HAVE TWO, $2 BILLION IN PROPERTY VALUES FROM THE PREVIOUS FISCAL YEAR THAT ARE STILL UNDER LAWSUIT.
SO WE DON'T HAVE FINAL VALUES ON A LOT OF THOSE OFFICE BUILDINGS, UM, FROM LAST YEAR.
SO I THINK WHEN IT, WHEN IT PROBABLY SHAKES OUT, BECAUSE I THINK WE'LL SEE BIGGER DECREASES FROM THE LAWSUITS FROM LAST YEAR THAN WE WILL FROM THIS YEAR.
BECAUSE I THINK THAT THE APPRAISAL DISTRICT WAS A LITTLE MORE CONSERVATIVE IN THEIR APPROACH THIS YEAR.
I WILL SAY THAT THEY DID INCREASE THE LAND VALUE ACROSS TOWN PRETTY SIGNIFICANTLY.
UM, BUT SOME OF THE OFFICE TENANTS DON'T NECESSARILY OWN THE LAND THAT THEY'RE RIGHT.
THAT THEIR BUILDING IS SITTING ON.
UH, WHAT I'LL SAY IS THAT SOME OF THE OLDER STOCK ALONG THE FORM CORRIDOR SEEMS TO BE STRUGGLING.
SOME OF THE STUFF THAT'S ON, YOU KNOW, THE TOLLWAY SEEMS TO BE DOING BETTER.
SOME OF THE LARGER ONES SEEM TO BE HOLDING STEADY, NOT NECESSARILY INCREASING OR DECREASING A LOT.
IT'S REALLY THAT THE OLDER STOCK LONG FORM THAT HOPEFULLY WHEN THAT, WHEN THAT'S RECONSTRUCTED, IT BECOMES A DESTINATION.
THOSE, UH, THOSE OFFICE TENANTS OR THOSE PROPERTY OWNERS CAN REINVEST IN THOSE PROPERTIES, UM, BECAUSE IT'S PROBABLY GONNA BE A PLACE TO FOLKS WANNA WORK.
THEY, THEY MAKE IT A NICE, NICE PLACE TO WORK.
SO THOSE VALUES, THOSE, THOSE BUILDINGS WHERE LAWSUITS WERE FILED MM-HMM
I'M ASSUMING THEY PAID TAXES ON A CERTAIN VALUE.
AND, AND THEY GOT A LAWSUIT SAYING THE VALUE SHOULD BE LESS.
SO IF THOSE LAWSUITS COME BACK AND THEY AGREE THAT THE VALUE'S LESS, DO WE HAVE TO REFUND WHAT THEY PAID TO US? WE DO.
UM, SO THE TAX OFFICE IS DOING ALL OF THE COLLECTIONS AND REFUNDS.
SO IF IT DOES COME BACK THAT, THAT THE PROPERTY VALUE WAS ADJUSTED, UH, WHICH THIS HAPPENS A LOT, SO, AND THEY'LL, SO THEY DO PAY BEFORE JANUARY 31ST DUE DATE, AND THEN THEY, THEY MAY BE IN A LAWSUIT FOR, FOR SOME OF THESE, TAKE A COUPLE OF YEARS IT SEEMS LIKE.
UM, SO THEY MAY BE IN A LAWSUIT FOR ONE TO TWO YEARS, ONCE IT GETS THROUGH THE SYSTEM AND THERE'S, THERE'S AN AGREED JUDGMENT, THEY WILL REFUND THE OVERAGE THAT THEY PAID IN TAXES.
SO WHEN WE BUDGET, WE BUDGET THAT WE'RE GONNA COLLECT 96.5% OF ALL OF OUR PROPERTY TAX REVENUE.
AND IT'S NOT NECESSARILY THE CURRENT YEAR.
IT'S MOSTLY BECAUSE OF WE'RE, WE COLLECT REALLY A HUNDRED PERCENT OF WHAT, YOU KNOW, THE CURRENT YEAR IS GONNA BE.
WE'RE JUST REFUNDING SOME, SOME OF THE PAST YEARS FROM THOSE LAWSUITS.
SO GENERALLY THE HISTORY HAS BEEN THAT WE'VE LOST ABOUT SOMEWHERE BETWEEN TWO AND 5% OF, UH, OF, UH, VALUE OVERALL FROM THOSE LAWSUITS.
SO THAT THREE AND A 5% NUMBER IS ABOUT THE AVERAGE OF WHAT WE GENERALLY LOSE IN A YEAR.
SO IT'S THE FOURTH ONE DOWN WHEN YOU DO PERCENTAGES INSTEAD OF DOLLARS, I JUST LIKE TO SEE DOLLARS IS 4%, 4% OF 42 MILLION IS THAT, IT'S NOT ALL 42 MILLION.
THAT'S ALL OF, THAT'S THE ENTIRE PERSONNEL BUCKET.
SO THAT INCLUDES BENEFITS AND EVERYTHING ELSE.
UM, I DO HAVE, FOR THE GENERAL FUND, AS WE GET THROUGH LATER IN THE PRESENTATION, I DO HAVE A DOLLAR AMOUNT OF WHAT THAT 4% COSTS, AND I THINK IT COSTS 1.02 MILLION IN THE GENERAL FUND.
[02:35:01]
OVERALL, I, I COULD DO THAT MATH FOR YOU, BUT IT, IT IS NOT COMPOUNDED ON LIKE HEALTH INSURANCE AND SOME OF THOSE OTHER BENEFITS PENSION THAT'S NOT COMPOUNDED IN THERE.THE, SO WE GET A, WE GET A PENSION RATE EACH YEAR, SO OUR PENSION RATE WENT DOWN A LITTLE BIT, BUT IF SALARIES GO UP, RIGHT, YOU'RE PAYING THE PENSION ON THE ADDITIONAL 4%.
I WAS LOOKING AT THAT THINKING THAT'S PROBABLY CLOSE TO $2 MILLION BETWEEN THE 4% AND THE 4, 7 5, WHAT IS THE 7% HEALTH? I MEAN, I DON'T KNOW WHAT THE HEALTH INSURANCE COST IS, DO YOU KNOW, OVERALL FOR, FOR THE TOWN OVERALL? UM, I'M JUST WONDERING WHAT 7% IS, HOW MANY YEAH, I DOLLARS IS THAT? UH, I'M GONNA SAY, I, I CAN DO THE MATH, EXACT MATH, BUT IT'S ABOUT 250,000.
ANY OTHER QUESTIONS? NO INCREASE IN STORM WATER RATES AS WELL.
SO WE'LL GET INTO THAT FUND AS WE GO FORWARD AS WELL.
UM, SO JUST SOME FUND DEFINITIONS.
SO GENERAL FUND, THIS IS OUR PRIMARY OPERATING FUND.
THE ONE WE'LL PROBABLY END UP TALKING ABOUT THE MOST SPECIAL REVENUE FUNDS.
THESE ARE FUNDS THAT EITHER, UH, THE COUNCIL HAS, HAS RESTRICTED THEIR USE OR HAS, YOU KNOW, SO WE HAVE A LOT OF LITTLE FUNDS THAT YOU NOTICE IN YOUR BUDGET.
THOSE ARE RESTRICTED BY THE STATE.
UH, SOME MAY BE RESTRICTED BY THE FEDERAL GOVERNMENT, SUCH AS HIS GRANT FUNDS AND THOSE TYPES OF THINGS.
WERE PUT IN THE BUCKET OF SPECIAL REVENUE FUNDS.
OUR DEBT SERVICE FUND IS WHERE THAT 17 POINT A HALF CENT PORTION OF OUR PROPERTY TAX RATE GOES TO PAY OUR GENERAL OBLIGATION DEBT.
AND THEN WE HAVE OUR OPERATING OUR ENTERPRISE FUNDS, WHICH ARE, UH, AIRPORT, WE HAVE OUR UTILITY FUND ON OUR STORE WATER FUND.
THOSE REALLY ARE OPERATING LIKE A BUSINESS WHERE, UH, THE CHARGES ARE PAYING FOR THE COST OF FINANCE OR THE COST TO PROVIDE THOSE SERVICES.
AND THEN WE HAVE THREE INTERNAL SERVICE FUNDS, AND THESE ARE REALLY PROVIDING SERVICES TO ALL THE OTHER FUNDS IN TOWN.
SO FOR INSTANCE, WE HAVE A CAPITAL EQUIPMENT REPLACEMENT FUND.
WE HAVE A FACILITY MAINTENANCE FUND AND AN IT REPLACEMENT FUND.
SO, UH, EVERY, UH, OTHER FUND, UH, FUND IS CONTRIBUTING SO THAT WE CAN CASH FUND TO REPLACE EQUIPMENT, REPLACE OUR IT INFRASTRUCTURE AND EQUIPMENT OR SOFTWARE AND, UH, PROVIDE MAINTENANCE TO SOME OF OUR FACILITIES.
AND THEN EXPENDITURES BY FUND.
SO WITHIN YOUR BUDGET, UH, THAT YOU HAVE, THERE'S A $111 MILLION OPERATING PROPOSED BUDGET.
UH, THE GENERAL FUND MAKES UP ABOUT 44% OF THAT, THE LARGEST PORTION.
THEN WE HAVE OUR UTILITY FUND THAT MAKES UP 17%.
AND THEN DEBT SERVICE MAKES UP 11% OF THAT TOTAL.
AND THEN WE HAVE TWO AT 7%, AND THAT WOULD BE THE AIRPORT AND THE HOTEL FUND, UH, ALL THE OTHER FUNDS.
AND THERE'S ABOUT PROBABLY 12 OTHER FUNDS THAT I DIDN'T MENTION.
UH, SOME OF THE REST, UH, ECONOMIC DEVELOPMENT, THE REPLACEMENT, THOSE ARE, THOSE ARE A COUPLE OF THE LARGER ONES, UH, THAT WOULD BE IN THERE.
BUT, UH, COMBINED THE OTHER MAKES UP 5% AND THAT COMPRISES QUITE A FEW OF THOSE SMALLER FUNDS.
THE OVERALL STAFFING SUMMARY, SO THIS IS A THREE YEAR LOOK AT, UH, OVERALL STAFFING.
SO THERE'S ONLY ONE PROPOSED, UH, NEW, UH, FULL-TIME EQUIVALENT EMPLOYEE WITHIN THE PROPOSED 2026 BUDGET.
THAT IS AN ECONOMIC DEVELOPMENT COORDINATOR POSITION.
AND, UH, THAT IS THE ONLY CHANGE.
SO GOING FROM 324.6 FULL-TIME, UH, EQUIVALENT EMPLOYEES UP TO 3 25 0.6, AND THEN GETTING INTO THE TAX RATE.
SO TAX RATE IS COMPRISED OF TWO DIFFERENT PARTS.
I KIND OF WENT OVER THIS A LITTLE BIT, BUT WE HAVE THE M AND O RATE, WHICH IS MAINTENANCE AND OPERATIONS.
UH, AND THIS IS WHAT'S FUNDING THE PROPERTY TAX PORTION OF OUR GENERAL FUND.
IT'S FUNDING, UH, UNIQUELY IN ADDISON.
UH, WE HAVE THE INFRASTRUCTURE INVESTMENT FUND, WHICH IS, IS A SMALL PORTION, AND THEN THAT TWO AND A HALF CENTS THAT'S GOING TO THE ECONOMIC DEVELOPMENT FUND ARE REALLY ALL COMPONENTS OF THE M AND O, UH, PORTION OF THE TAX RATE.
UH, THAT PORTION OF THE PROPERTY TAXES YOU CAN GENERATE EACH YEAR, 3.5% MORE IN MAINTENANCE AND OPERATIONS, PROPERTY TAXES EACH YEAR.
UM, SO THAT'S, UH, A RESTRICTION BY THE STATE.
AND THEN WE HAVE THE INTEREST IN SINKING RATE.
THAT'S THAT 17.50 CENTS TO FUND THE DEBT SERVICE.
SO THIS RATE IS SET AT WHATEVER OUR DEBT SERVICE IS, THAT RATE THAT WE NEED TO PAY THAT DEBT SERVICE.
SO THERE'S NOT A RESTRICTION OTHER THAN A REALLY HIGH, I THINK IT'S $2 AND 50 CENTS OF STATUTORY LIMIT, BUT, UH, WE'RE NOWHERE NEAR THAT.
BUT ANYWAY, THAT ONE'S CALCULATED BASED ON OUR DEBT SERVICE.
AND, UH, WE HAVE THAT AT 17 POINT A HALF CENTS THIS YEAR.
CAN CAN YOU REPEAT WHAT YOU SAID EARLIER ABOUT THIR? IS IT THREE, THREE AND A HALF PERCENT ON THE MAINTENANCE SIDE? CORRECT.
CAN, CAN YOU EXPLAIN THAT AGAIN? YEAH.
SO I THINK, UH, 20, UH, 2019 LEGISLATIVE SESSION, THIS WENT INTO EFFECT IN 2020.
[02:40:01]
THE, THE LEGISLATURE PASSED A, A LAW THAT BASICALLY FOR OPERATING YOUR OPERATING PROPERTY TAX REVENUE CAN ONLY INCREASE 3.5% EACH.IT USED TO BE YOU COULD DO IT UP TO 8% EACH YEAR.
UM, SO WE'VE BEEN UNDER THAT THREE AND A HALF PERCENT, UH, RESTRICTION FOR, I GUESS THIS WILL BE THE SIXTH FISCAL YEAR AT THIS POINT.
BUT, UM, SO JUST TO SAY THAT, YOU KNOW, THAT'S WHAT, AND I'LL GET INTO THAT A LITTLE BIT.
SO THAT VOTER APPROVAL RATE THAT'S, THAT'S LISTED DOWN THERE, IF YOU WANT TO EXCEED THAT 3.5% INCREASE, YOU HAVE TO GO AND ASK LEADERS STORY.
SO A QUESTION YOU MENTIONED UNIQUELY IN ADDISON, WHAT WERE YOU REFERRING TO? UH, THE INFRASTRUCTURE INVESTMENT FUND.
AND THEN WE ALSO, AND WAYNE DID A, YOU KNOW, WAYNE WENT THROUGH THIS QUITE A BIT WITH, WITH HIS ECONOMIC DEVELOPMENT, UM, FUND PRESENTATION.
BUT A PORTION OF OUR PROPERTY TAX RATE IS GOING TO THE ECONOMIC DEVELOPMENT FUND AS WELL.
SO, UM, SO A LOT OF CITIES THAT JUST GO STRAIGHT INTO THE GENERAL FUND AND THAT'S, THAT'S THE WAY IT, SO THAT'S THE UNIQUE PART.
THAT, THAT WE, THAT WE'VE SET ASIDE THAT INFRASTRUCTURE INVESTMENT DOLLARS THAT ARE GOING INTO THAT SPECIFIC FUND.
AND THEN YOU HAVE THE A AMOUNT, WELL, SO THE INFRASTRUCTURE INVESTMENT FUND, UM, KIND OF MORE PAY AS YOU GO YES.
VERSUS BIG BONDS COMING THROUGH.
AND THAT'S, THAT'S THE DIFFERENTIATOR WHENEVER PEOPLE TALK ABOUT OUR TAX RATE OR I GUESS JUST THE WAY IT'S ALLOCATED.
SO I THINK, AND THE, WHEN THAT, UH, WHEN THAT ORDINANCE WAS PASSED TO, TO CREATE THOSE TWO FUNDS, THAT WAS FOR PROJECTS THAT, OR CASH FUNDED THAT HAVE VALUE, THAT ARE BASICALLY OVER $500,000.
SO ONE PROJECT THAT'S BUDGET IN THERE FOR THIS FISCAL YEAR IS THE, THE DUKE ACCOUNT HALL.
IS COMING FROM THE INFRASTRUCTURE THAT, THANKS.
SO, UH, THE NO NEW REVENUE TAX RATE, THAT'S THE RATE THAT, UH, WOULD PROVIDE THE CITY WITH ABOUT THE SAME REVENUE AS IT RECEIVED LAST, THE PREVIOUS FISCAL YEAR ON THE SAME PROPERTIES.
SO IT DOESN'T TAKE INTO ACCOUNT NEW, NEW PROPERTIES ADDED TO THE TAX ROLL.
UH, IT JUST IS LOOKING AT THE PROPERTIES THAT WERE ON THE TAX ROLL LAST YEAR VERSUS THOSE SAME PROPERTIES ON THE TAX ROLL THIS YEAR TO GENERATE THE EXACT SAME AMOUNT OF REVENUE.
THAT'S, THAT'S WHAT THE NO NEW REVENUE RATE IS.
SO IF PROPERTY VALUES GO UP THAT NO, NO NEW REVENUE TAX RATE GOES DOWN.
NOW IF PROPERTY VALUES FALL THAT NO NEW REVENUE TAX RATE GOES UP BECAUSE YOU'RE GONNA HAVE TO HAVE A HIGHER TAX RATE TO GENERATE THE SAME AMOUNT OF REVENUE.
HEY, STEVEN, I I JUST MAKE ONE COMMENT ON I GUESS THE SLIDE BEFORE THIS ACTUALLY.
UH, SO WE ALL, WE'RE ONLY ADDING ONE POSITION FOR THE ENTIRE ORGANIZATION.
THERE ARE SEVERAL WORTHWHILE POSITIONS THAT DEPARTMENTS PUT FORWARD, UM, THAT WOULD HELP A LOT, THAT WOULD HELP US IMPROVE SERVICE.
BUT AS WE MENTIONED AT THE BEGINNING AS ONE OF OUR GOALS AND THE PRIMARY FOCUS WE HAVE IS TO MAINTAIN THE EMPLOYEES THAT WE HAVE TO MAINTAIN OUR COMPENSATION PHILOSOPHY.
SO THAT'S REALLY WHAT WE FOCUSED ON IS THE COMPENSA MAINTAINING A COMPETITIVE COMPENSATION IN LINE WITH THAT PHILOSOPHY AND OBVIOUSLY THE STEP PLAN IMPLEMENTATION.
NEW POSITIONS WERE NOT THE PRIORITY AND THAT'S REFLECTED THERE.
SO YOU KEEP THE PEOPLE YOU HAVE AND MAYBE YOU HAVE A LITTLE LARGER, UM, UH, MERIT INCREASE POOL POTENTIALLY, UH, VERSUS ADDING MORE PEOPLE AND NOT BEING ABLE TO GIVE AS MANY RAISES OR RAISE YOUR TAX RATE.
SO LOOKING AT THOSE, UH, THOSE TAX RATES THAT I JUST MENTIONED, NO NEW REVENUE TAX RATE OVER GOOGLE TAX RATE, UH, YOU CAN SEE THOSE, THOSE CALCULATIONS FOR THE LAST TWO FISCAL YEARS.
SO THIS YEAR THE NO NEW REVENUE TAX RATE IS 60.6094 UH CENTS.
UH, THE PROPOSED RATE AT 60.98 CENTS, IT'S JUST ABOVE THAT.
SO, UH, SO IN TOTAL, THE TOWN IS NOT GENERATING A LOT OF, OF PROPERTY TAX REVENUE FROM THE SAME PROPERTIES AS WERE ON THE TAXABLE LAST YEAR.
UH, AND THEN THAT VOTER APPROVAL RATE, UH, THAT IS AT 65.4287.
SO IF YOU WENT TO THAT, WANTED TO EXCEED THAT RATE, THAT'S WHY IT'S CALLED THE VOTER APPROVAL RATE, YOU HAVE TO GO TO THE VOTERS TO GET APPROVAL, UH, TO EXCEED THAT RATE.
SO WE'RE WELL BELOW THAT, UH, OVER FOUR AND A HALF CENTS BELOW, UH, THAT VOTER APPROVED RATE, UH, THIS YEAR.
SO AGAIN, THE, THE ADOPTED RATE LAST YEAR WAS, UH, THE 60.9822.
THAT'S WHAT'S ALSO IN THE PROPOSED BUDGET RULE 2026.
SO ON THAT VOTER APPROVED, IS THAT FROM THE BOND ELECTION? PARTIALLY.
THAT IS NOT FROM THE BOND ELECTION.
SO THAT'S REALLY THAT, THAT THREE AND A HALF PERCENT, IT'S JUST THE THREE AND A HALF.
IT, IT DOES, IF YOU, IF YOU JUST TOOK THAT AND MULTIPLIED THE TIMES THREE AND A HALF, IF THE MATH DOESN'T COME OUT, THERE IS A, WHAT THEY CALL AN INCREMENT THAT YOU CAN BUILD UP BECAUSE
[02:45:01]
IF YOU HAVEN'T GONE UP TO THE 3.5% EVERY YEAR MM-HMMUM, YOU CAN BANK SOME OF THAT INCREMENT.
SO THAT'S INCLUDED IN THAT 65 CENT CALCULATION.
SO THEY'LL LET YOU GO UP TO THAT AMOUNT.
SO IT'S NOT EXACTLY THREE POINT A 5%, BUT IT'S THREE POINT A HALF PERCENT PLUS WHATEVER.
YOU HAVEN'T GONE, GONE UP TO THREE POINT HALF PERCENT IN THE PREVIOUS THREE YEARS.
IT'S A VERY COMPLICATED, IT IS VERY COMPLIC NEW VALUE.
IT'S, I'M STILL BACK ON THE BOND THING.
SO IF WE DID ALL THE PROJECTS IN THAT BOND PROGRAM, WE WOULD BE ABOVE 65%, UH, 65.
SO THE DEBT SERVICE AS, AS STEVEN IS NOT INCLUDED.
SO BASICALLY WHEN THEY'RE CALCULATING THIS TAX, THEY SAY, OKAY, WE'RE GONNA TAKE YOUR DEBT SERVICE 'CAUSE YOU HAVE TO PAY THAT, PUT IT TO THE SIDE, THEY MAKE THE CALCULATION, AND THEN THEY JUST THROW THE DEBT SERVICE ON TOP.
AND THEY'RE ASSUMING THE DEBT SERVICE IS VOTER APPROVED? CORRECT.
WELL, IT DOESN'T NECESSARILY HAVE TO BE VOTER APPROVED, BUT IT CAN BE.
THERE'S A PROCESS CERTIFICATE, BUT UM, I, IT HAS TO MAKE IT THROUGH THE ATTORNEY GENERAL'S OFFICE.
DOES THAT REPRESENT LIKE OUR MAXIMUM TAX RATE? THIS WOULD BE THE MAXIMUM TAX RATE THAT THE COUNCIL COULD APPROVE WITHOUT GOING TO THE VOTERS AND HAVING THEM VOTE TO APPROVE A RATE ABOVE THAT.
SO, AND I DIDN'T GO OVER MY WHOLE
THIS IS VERY COMPLICATED CALCULATIONS AND THEY HAVEN'T MADE IT EASIER.
WE'VE ALREADY BEEN HERE THREE AND A HALF HOURS, THOUGH.
SO A LITTLE MORE ON THE, AND THIS IS WHERE WE GET INTO REALLY THE OPERATING AND MAINTENANCE PORTION OF THE TAX RATE.
AND THAT'S REALLY WHERE THAT, WHAT DETERMINES THAT VOTER APPROVAL RATE.
BECAUSE AS DAVID MENTIONED, THAT THE DEBT SERVICE IS THE DEBT SERVICE, SO YOU HAVE TO ADOPT THE TAX RATE TO COVER THAT DEBT SERVICE.
BUT AS, AS I TALKED ABOUT, WE HAVE THE GENERAL FUND, THAT KIND OF DEVELOPMENT AND INFRASTRUCTURE INVESTMENT FUND.
UH, THE GENERAL FUND IS ACTUALLY GOING DOWN ABOUT A LITTLE OVER SIX TENTHS OF 1 CENT.
UH, AS WE TALKED ABOUT AT THE LAST MEETING, UH, COUNCIL WANTED TO INCREASE THAT ECONOMIC DEVELOPMENT FUND PROPERTY TAX RATE, UH, UP TO TWO AND A HALF CENTS.
THAT'S ABOUT 0.12 OF THE CENT.
UH, AND THEN WE HAVE HALF A CENT THAT'S GOING OVER TO DEBT SERVICE.
SO OVERALL THAT O AND M PROPERTY TAX RATE IS GOING DOWN, UH, FROM HALF A, UH, ONE HALF OF A CENT FROM JUST UNDER 44 CENTS TO UH, JUST UNDER 43 AND A HALF CENTS.
SO JUST TO NOTE HERE, THAT THAT TRANSFER, THAT MOVE FROM THE, UH, GENERAL FUND TO THE ACK DEVELOPMENT FUND, THAT ACCOUNTS FOR ABOUT, UH, ALMOST $83,000 IN PROPERTY TAX REALLY WAS GONNA BE IN THE GENERAL FUND.
AND IT'S NOW GOING OVER TO ACK DEVELOPMENT.
AND THEN HOW DOES THIS IMPACT OUR AVERAGE HOMEOWNER, UH, ON A MONTHLY BASIS? SO IF YOU LOOK AT PROPERTY TAX, UH, THE AVERAGE HOMEOWNER WAS PAYING ABOUT $239, UH, UH, IN PROPERTY TAX EACH MONTH, UH, WOULD BE ABOUT 255 UNDER THE PROPOSED TAX RATE.
UH, NO CHANGE IN WATER RATES AND A SLIGHT CHANGE IN 1% ON SEWER RATES, UH, WHICH IMPACTS THEM ABOUT 41 CENTS.
AND SO WHEN YOU ADD ALL THAT TOGETHER, ABOUT A $16 AND 33 CENTS INCREASE, UH, PER, UH, YOUR AVERAGE RESIDENTIAL, UH, HOMEOWNER PER MONTH, AND STEVEN IS THAT AVERAGE HOMEOWNER, IS THAT THE ONE THAT'S THE LITTLE OVER 500,000? THAT'S CORRECT.
AND WHEN WE LOOK AT OUR TOTAL CERTIFIED VALUE HISTORY, UH, SO OUR, UH, LARGEST BAR THERE, COMMERCIAL PROPERTIES, THOSE, UM, UH, MAKE UP 69% OF THE TOTAL, UH, PROPERTY VALUES FOR 2026.
UH, WE ACTUALLY HAD SOME DECREASE IN BUSINESS PERSONAL PROPERTY THIS YEAR.
AND THEN RESIDENTIAL INCREASE, UH, TO 17% OF THIS YEAR.
AND THEN THE TOTAL TAX RATE IN ADDISON.
SO ONE OF THE THINGS THAT, UH, ALSO HAPPENED IN 2019, THAT 3.5% CAP WAS PUT ON CITIES.
THEY ALSO CHANGED THE WAY THAT THEY WERE, THE STATE WAS FUNDING, UH, THE SCHOOL DISTRICTS.
SO THE OVERALL TAX RATE HAS COME DOWN PRETTY SIGNIFICANTLY REALLY BECAUSE, UH, OF THE SCHOOL DISTRICT TAX HAS BEEN DECREASED SIGNIFICANTLY OVER, OVER THE LAST FEW YEARS.
UH, IF YOU LOOK AT REALLY EVERYTHING ELSE, YOU KNOW, THIS IS ADDISON, DALLAS COUNTY PARKLAND HOSPITAL, UH, THE COMMUNITY COLLEGE DISTRICT.
IT'S BEEN RELATIVELY FLAT, UM, OVER THE LAST REALLY, UH, EIGHT YEARS.
UH, IT'S REALLY THAT SCHOOL DISTRICT PORTION HAS COME DOWN.
SO 2019, I THINK THE, THE TAX RATE WAS OVER TWO AND A HALF, UH, DOLLARS PER $100 VALUATION.
[02:50:01]
ABOUT, UH, 2025 WAS ABOUT $2 AND 14 CENTS.WE DON'T HAVE ALL THE NUMBERS YET FOR THE OTHER ENTITIES, BUT, UH, I WOULD PROBABLY THINK THAT SCHOOL DISTRICTS BASED ON, UH, THE LEGISLATURE'S ACTIONS WILL, WILL COME DOWN AGAIN, UH, POTENTIALLY.
SO, UH, $2 AND 14 CENTS IS WHAT WE HAVE IN THERE FOR 2026 AS WELL.
UH, BUT AGAIN, WE DON'T KNOW WHAT THOSE PROPOSED RATES ARE FOR THOSE OTHER ENTITIES YET.
I JUST THINK ONE, JUST ONE MORE NOTE ON THE TAX RATE, AND THIS WAS IN THE PREVIOUS PRESENTATION THAT WE MADE ON THE CIPA FEW WEEKS AGO.
DON'T HAVE IT IN HERE, BUT JUST AS A REFERENCE POINT, THE DEBT SERVICE IS REALLY GOING UP BECAUSE OF 2019 BOND PROGRAM AND IT'S NOT GOING UP NEAR AS MUCH FROM A RATE PERSPECTIVE AS WAS ANTICIPATED IN THE BOND PROGRAM.
SO WHEN YOU SEE INCREASES ON THAT SIDE, THAT'S REALLY JUST, THAT'S REALLY RELATED TO WHAT THE VOTE WAS APPROVED IN THE BOND PROGRAM AND NOW, AND NOW THE OPERATING SIDE, YOU KNOW, WE'RE OFFSETTING THAT.
SO JUST AS A REMINDER, AND I THINK THAT'S SOME OF THE QUESTIONS YOU, SO THE HALF PERCENT DOWN AT THE BOTTOM, THE, THAT SLIDE THAT TO MAKE UP FOR HALF AN INCREASE IN DEBT SERVICE? THAT'S CORRECT.
SO IT'S OVERALL FLAT, BUT MAINTENANCE GOING DOWN HALF A CENT, THE DEBT SERVICE IS GOING UP HALF A CENT.
UM, WE DO PROJECT, 'CAUSE WE ARE STILL, WE DO HAVE THAT SAME INFRASTRUCTURE BANK LOAD.
WE'LL GET OUR FINAL DISBURSEMENT FROM THAT, UM, NEXT IN FISCAL YEAR 2026.
SO WE DO HAVE HALF OF THAT DEBT SERVICE AMOUNT FOR 26 AND THEN SOME MORE WILL HIT US IN 27.
SO THERE SHOULD BE AN INCREASE THERE IN 27 AS WELL.
AND THEN WE'RE DONE WITH THE 2019 BOND PROGRAM.
REALLY AS FAR AS FAR AS FAR FROM A TAX RATE FAR.
I WAS JUST SAYING NOW YOU HAVE TO BUILD, GOTTA PAY FROM TAX PERSPECTIVE.
WITH THAT, IF THERE'S ANY OTHER QUESTIONS FOR ME, UM, I'LL STILL HANG AROUND, BUT, UM, I'LL PASS IT OVER TO PASSION AND UM, I'LL HAVE SOME PORTIONS OF YES, YOU ONLY QUESTIONS FOR, I CAN'T, I CAN'T PUNISH MY BUDGET, BUT, BUT I'M PRETTY SURE I, I'VE SEEN THIS AND IT WAS ALMOST LIKE WE'RE BUDGETING, UM, FOR, UM, UH, FOR THIS EXCESS AMOUNT TO GO INTO THE ECONOMIC DEVELOPMENT FUND IS 25% CORRECT.
WE'RE BUDGET, 'CAUSE I WAS THINKING WE HAD NOT BUDGETED FOR IT YET.
UM, IT WILL BE PART OF THE END OF YEAR BUDGET AMENDMENT THAT WE DO.
AND EACH YEAR, I THINK FOR THE LAST FOUR YEARS WE'VE DONE IT WHERE EXCESS REVENUES OR EXPENDITURE SAVINGS FROM THE GENERAL FUND WOULD GO TO THE SELF-FUNDED SPECIAL PROJECTS FUND.
UM, AND THAT HAD BEEN A HUNDRED PERCENT.
SO 25% OF THAT IS PROPOSED TO GO TO ECONOMIC DEVELOPMENT WHILE THE REMAINING 75% STILL GOES TO THAT CELL PHONE.
IT'S IN OUR ESTIMATE FOR 2025 FOR CURRENT HERE.
IS THAT ANYWHERE HERE IN, IN OUR BUDGET? IT IS.
IT ITS IN THE, IT'S IN THE BOOK'S.
GO TO ONE, LOOK AT FUND SUMMARIES.
THANK YOU STEPHEN MAYOR AND COUNCIL PASSION HAY.
I'M THE DEPUTY CITY MANAGER AND THIS EVENING I AM PRESENTING THE DEPARTMENT BUDGET FOR THE ADDISON AIRPORT.
HOWEVER, BEFORE I BEGIN, I'M SO EXCITED TO INTRODUCE TO YOU OUR NEW AIRPORT DIRECTOR JAMIE.
AND JAMIE, IF YOU DON'T MIND STANDING.
JAMIE IS A PROVEN AVIATION LEADER WITH EXPERIENCE IN BOTH THE PUBLIC AND PRIVATE SECTOR WORKING FOR RENO, TAHOE AIRPORT AUTHORITY, CINCINNATI MUNICIPAL AIRPORT, AND AMAZON AIR.
SO WE ARE SO EXCITED TO HAVE HIM ON BOARD.
I WOULD ALSO LIKE TO TAKE THIS OPPORTUNITY TO RECOGNIZE BOTH OUR ASSISTANT AIRPORT DIRECTORS, BILL DYER AND DARCY
THEY HAVE SUPPORTED ME TREMENDOUSLY AS THE INTERIM DIRECTOR FOR OVER FOUR MONTHS.
BILL ACTUALLY HAS BEEN A PART OF THE AIRPORT FOR OVER 20 YEARS AND OVERSEES ONE OF THE MOST IMPRESSIVE REAL ESTATE PORTFOLIOS IN THE COUNTRY.
SO THANKS BILL ALL YOUR SUPPORT.
DARCY IS UNABLE TO BE WITH US THIS EVENING, BUT SHE IS A TREMENDOUS ASSET TO THE AIRPORT AS WELL.
OVERSEES THE OPERATIONS AND MAINTENANCE OF THE AIRPORT, AND, UM, PRODUCES ONE OF THE MOST SPECTACULAR AIR SHOWS IN THE COUNTRY WITH
SO GRATEFUL TO VOTE WITH THEM FOR THEIR SERVICE.
AND THEN I KNOW DAVID'S GONNA START CHECKING HIS WATCH ON ME, BUT ONE MORE PERSON I WANNA RECOGNIZE.
SO THANKS TO ME FOR YOUR SUPPORT.
SO AS I JUMP INTO THE ACCOMPLISHMENT CREDIT AIRPORT, ONE OF THE MAJOR ACCOMPLISHMENTS INCLUDES, UH,
[02:55:01]
OUR SIGNATURE ACCOMPLISHMENT ACTUALLY KICKING OFF THE AIRPORT MASTER PLANNING PROCESS.THE FAA REQUIRES THAT AIRPORTS THAT RECEIVE FEDERAL FUNDING ACTUALLY MAINTAIN AN UPDATED MASTER PLAN.
SO THIS IS AN IMPORTANT INITIATIVE IN SUPPORTING COUNCIL'S STRATEGIC OBJECTIVE TO LEVERAGE THE AIRPORT TO MAXIMIZE BUSINESS GROWTH IN THE KEY FOCUS AREA OF ECONOMIC DEVELOPMENT AND REVITALIZATION.
ANOTHER IMPORTANT ACCOMPLISHMENT FOR THE AIRPORT AND OUR TENANTS INCLUDE HIRING A DEDICATED POLICE OFFICER ASSIGNED TO THE AIRPORT.
THIS POSITION FOCUSES ON THE SAFETY AND SECURITY OF THE AIRPORT, AND WE JUST CONTINUE TO RECEIVE SUCH POSITIVE FEEDBACK FROM OUR FBOS AT TENANTS OF THIS VERY IMPORTANT VALUE ACT STAFF ALSO COMPLETED PHASE ONE OF THE TAXI WAVE WABA EXTENSION PROGRAM.
THIS IS ACTUALLY A THREE PHASE PROGRAM THAT IS BEING FUNDED LARGELY BY TECH STOCK.
IT PROVIDES OPERATIONAL RELIEF WHEN TAXIWAY ALPHA IS CONGESTED OR OUT OF SERVICE.
AND TAXIWAY BRAVO IS REALLY CRITICAL TO OUR REDEVELOPMENT EFFORTS ON THE WEST SIDE OF THE AIRPORT.
ACTUALLY, THE PHASE TWO OF THIS PROGRAM IS RECOMMENDED IN OUR CIP BUDGET, WHICH I'LL TALK ABOUT A LITTLE BIT LATER.
ANOTHER ACCOMPLISHMENT INCLUDES THE RECONSTRUCTION OF OUR VEHICLE SERVICE ROAD THROUGH DEVELOPER PARTICIPATION AGREEMENTS WITH MILLIONAIRE SKY HARBOR AND SKY SQUARE SQUARE ENTERING INTO DPAS WHERE THE FORCE CONTRACTS THE GROUND TENANT TO USE THEIR ENGINEERS AND CONTRACTORS, LIKE THE VEHICLE SERVICE ROAD HAS REALLY SERVED US WELL AND BENEFIT BOTH PARTIES THROUGH COORDINATION OF PROJECTS WHICH RESULT IN LESS DISRUPTION ON THE AIRPORT.
LAST BUT DEFINITELY NOT LEAST, THERE HAS BEEN SIGNIFICANT DEVELOPMENT AND REDEVELOPMENT THAT OUR STAFF HAS LED.
SKY HARBOR PHASE ONE EQUALS ABOUT A HUNDRED THOUSAND SQUARE FEET OF EXECUTIVE CAMBRIDGE SPACE.
PHASE ONE IS SCHEDULED TO BE COMPLETED THIS YEAR.
MILLIONAIRES INTERNATIONAL RAMP, ABOUT A SIX AND A HALF MILLION DOLLAR PROJECT THAT YOU CAN SEE AS YOU DRIVE DOWN JIMMY DOOLITTLE ROAD.
ANOTHER HUGE ACCOMPLISHMENT FOR US.
AND THEN LASTLY, TANGO WHISKEY AND WEST GROVE AIR PLAZA
THAT WAS ACTUALLY DONE WITH THE DPA AS WELL.
WITH ALL THE DEVELOPMENT AND REDEVELOPMENT THAT'S HAPPENING AT THE AIRPORT.
WE WANTED TO PROVIDE COUNSEL WITH A FISCAL YEAR TO DATE UPDATE OF ALL OUR PROJECTS.
AND SO THAT ACTUALLY WAS INCLUDED IN YOUR FRIDAY REPORT, THAT DETAILED, UH, BREAKDOWN.
AND OUR PLAN IS TO COME BACK TO COUNCIL ON AUGUST THE 12TH IN THE WORK SESSION TO PROVIDE A MORE DETAILED UPDATE.
WE'LL TALK ABOUT CUSTOM FLIGHTS, WE'LL TALK ABOUT, UM, OPERATIONS AS A WHOLE.
AND THEN ONE OF THE QUESTIONS THAT WE'VE RECEIVED FROM SOMEONE'S COUNSEL HAS TO DO WITH THE COST OF FUEL AT AN AIRPORT COMPARED TO OTHER AIRPORTS IN THE METROPLEX.
SO WE'RE GONNA BRING THAT DISCUSSION AS WELL AS WE LOOK AT THE DEPARTMENT'S OBJECTIVES FOR THE UPCOMING FISCAL YEAR.
CONTINUING TO SUCCESSFULLY LEAD THE AIRPORT MASTER PLANNING PROCESS IS A TOP PRIORITY.
IN FACT, WE'LL BE BACK LATER THIS FALL TO PROVIDE AN UPDATE ON OUR COMMUNITY ENGAGEMENT EFFORTS.
WE'VE CREATED A SURVEY, WE HAVE FEEDBACK THAT WE WANT TO SHARE WITH COUNSEL, AS WELL AS TALK ABOUT NEXT STEPS IN FORECASTING FOR THE AIRPORT.
SO WE WILL COME BACK LATER THIS FALL WITH OUR CONSULTANT TO HOST THAT CONVERSATION.
BASED ON SOME OF THE SUCCESS THAT WE SAW WITH OUR FIRST ENGAGEMENT MEETING WITH OUR TENANTS BACK IN JUNE, ONE OF OUR OBJECTIVES IS TO CONTINUE TO INCREASE ENGAGEMENT AND BUSINESS RETENTION VISITS WITH THE AIRPORT.
UM, WE'VE HAD GREAT FEEDBACK FROM SCOTT HARBOR GALAXY AS WE'VE HAD CONVERSATIONS.
SO OUR GOAL IS TO CONTINUE THOSE CONVERSATIONS AND REALLY MAXIMIZE THOSE RELATIONSHIPS ON THE REPORT.
I'LL GO INTO MORE DETAIL WHEN WE GO OVER OUR CFP BUDGET, BUT WE HAVE, UM, AN OPPORTUNITY TO MAKE IMPROVEMENTS TO OUR CURRENT FIELD FORM FACILITY TO REALLY ENHANCE IT FOR ADDITIONAL USE AND SAFETY PERSPECTIVE.
AND SO WE'RE GONNA TALK A LITTLE BIT MORE ABOUT THAT LATER.
AS I MENTIONED, WE ARE CONTINUING OUR WORK WITH THE TAXI WITH BRAVO EXTENSION PROGRAM AND PHASE TWO IS PROPOSED IN OUR, UH, CIP BUDGET AS WELL.
WE WILL ALSO CONTINUE OVERSIGHT OF DIFFERENT RECONSTRUCTION AND FACILITY REDEVELOPMENT ON THE AIRPORT.
WE HAVE THREE MAJOR PROJECTS LISTED HERE,
[03:00:01]
SKY HARBOR PHASE TWO.UH, IT'S PROGRAMMED FOR THE UPCOMING FISCAL YEAR.
UH, ATLANTIC AVIATION HANDLING NUMBER TWO, WHICH IS CURRENTLY IN DESIGN.
AND THEN THE HANDLER CONSTRUCTION.
THIS IS ACTUALLY OFF AIRPORT PROPERTY AT THE SOUTHWEST CORNER OF THE AIRPORT.
BUT AGAIN, LEVERAGING THE AIRPORT TO CONTINUE TO MAXIMIZE BUSINESS GROWTH IS A KEY, UH, UH, AREA OF OPPORTUNITY THAT WE'RE LEANING INTO.
WE ARE PLANNING TO MARKET FOR LEASE A FIVE ACRE, UM, REDEVELOPMENT OPPORTUNITY ON THE WEST SIDE OF THE AIRPORT.
AGAIN, TAXIWAY BRAVO WAS CRITICAL TO THAT WORK THAT WE'RE DOING, SO WE'RE EXCITED TO GET THAT UNDERWAY.
AND THEN OUR LAST OBJECTIVE, WHICH IS OUR KEY OBJECTIVE IN OUR CRP PROGRAM.
THAT'S TO DESIGN AND RECONSTRUCT TAXIING, UH, UNIFORMS, STRONG DRAINAGE IMPROVEMENTS, AND I'LL SPEND SOME TIME ON THAT AS WELL.
STEVEN ALREADY SHARED THIS IN HIS RESOURCE MAXIMIZATION, BUT THE AIRPORT STAFF DID AN AMAZING JOB IDENTIFYING OPPORTUNITIES HERE AS WE LOOK AT RESOURCE MAXIMIZATION.
AND AS BACKGROUND FOR THIS, UH, PROCESS, THE DEPARTMENT OF AGRICULTURE HAS DIFFERENT REQUIREMENTS AROUND REGULATING GARBAGE.
AND SO FOR OUR AIRPORT TO COMPLY, WE ARE ACTUALLY COLLECTING THE GARBAGE AND DRIVING TO DFW AIRPORT MULTIPLE TIMES A WEEK TO PROCESS BASED ON THE WORK OF OUR STAFF, WE'VE ACTUALLY BEEN ABLE TO OBTAIN THE EQUIPMENT NEEDED AND WE ACTUALLY ARE ABLE TO STERILIZE AND DISPOSE OF THE GARBAGE ON SITE.
AND SO NO LONGER HAVING TO DRIVE TO DF EVERY AIRPORT MULTIPLE TIMES A WEEK.
SO THIS IS A HUGE SAVINGS FOR THE AIRPORT OF OVER $25,000.
AND JUST A REAL TESTAMENT TO THE GREAT WORK OUR TEAM IS DOING, WE HAVE LISTED THE, UM, BREAKDOWN OF FTES IN THE AIRPORT.
THIS, AS YOU CAN SEE, WE'RE STAYING AT 14.2 FTES, UH, IN THIS UPCOMING BUDGET.
BUT ONE OF THE THINGS THAT WE'VE ASKED JAMIE TO DO IS TO TAKE A LOOK AT, UH, STAFFING NEEDS FOR THE REPORT.
WE WANNA MAKE SURE THAT AS WE HAVE THESE IMPORTANT CONVERSATIONS AROUND PROJECTS AND UM, PEOPLE, THAT WE HAVE THE RIGHT PEOPLE TO DO THESE THINGS AND HAVE THE RESOURCES NEEDED FOR THE FUTURE.
SO WE ANTICIPATE JAMIE COMING BACK TO US NO LATER THAN MID BUDGET, EXCUSE ME, MID FISCAL YEAR TO HAVE ADDITIONAL CONVERSATIONS WITH COUNSEL IF ADDITIONAL STAFF IS RECOMMENDED.
THIS IS THE CURRENT ORGANIZATIONAL CHART.
WE'VE ALSO ASKED JAMIE TO TAKE A LOOK AND MAKE SURE THIS IS THE APPROPRIATE STRUCTURE FOR THE AIRPORT, UH, ALONG WITH WORKING WITH HIS ASSISTANT DIRECTORS TO MAKE SURE WE ARE SET FOR SUCCESS.
AS WE TAKE ON THESE PROJECTS AND LOOK TO THE FUTURE, WE HAVE ONE DECISION PACKAGE FOR THE DEPARTMENT AND THAT IS FOR A CONTRACT GIS MANAGER POSITION.
THIS IS IMPORTANT AS WE LOOK TO THE FUTURE THROUGH OUR AIRPORT MASTER PLANNING PROCESS.
AS WE TALK ABOUT SUCCESSION MANAGEMENT, IT'S IMPORTANT THAT WE CAPTURE THE IMPORTANT FEATURES OF THE AIRPORT, WHETHER WE'RE TALKING ABOUT UTILITIES, SAFETY ZONES, NAVIGATIONAL AIDS, THE ABILITY TO COLLECT AND DOCUMENT DATA ABOUT THE AIRPORT AND ITS ASSETS IS CRITICAL FOR THE FUTURE.
AND SO INSTEAD OF RECOMMENDING A FULL-TIME EMPLOYEE THAT WOULD CREATE REOCCURRING CAUSE WE ARE RECOMMENDING A ONE-TIME OPPORTUNITY TO BRING A GIS TECHNICIAN IN TO ACTUALLY CREATE AND MAINTAIN THE DATABASE THAT WE CAN TRANSITION OVER TO STAFF TO MAINTAIN GOING FORWARD.
AGAIN, A ONE TIME COST OF $150,000 AND IT WOULD SOLELY BE FUNDED THROUGH THE AIRPORT FUND.
I'LL TRANSITION NOW AND TALK ABOUT OUR CAPITAL IMPROVEMENT PROGRAM REQUEST.
HOWEVER, BEFORE I DO, I WANT TO RECOGNIZE SARAH ANDREWS WITH, UH, BARBARA CONSTRUCTION.
SARAH IS THE AIRPORT'S ENGINEER OF RECORD, UH, WITH BARBARA CONSTRUCTION.
SHE'S ACTUALLY THE AVIATION PRACTICE LEAD FOR NORTH TEXAS.
UH, WORKS, UH, AT LOVE FIELD DALLAS EXECUTIVE MCKINNEY, AND OF COURSE HER FAVORITE AT THE AIRPORT.
UH, AND SO I'M GRATEFUL FOR HER TO BE HERE TONIGHT.
IF YOU HAVE ANY, UH, DETAILED QUESTIONS, WE HAVE FOUR CIP REQUESTS TO PRESENT TONIGHT.
THE FIRST ONE IS THE, UH, DEPARTMENT'S TOP PRIORITY TAXI LANE, UNIFORM STORM DRAINAGE IMPROVEMENTS.
AND WE HAVE PHASE TWO, A TAXIWAY BRAVO EXTENSION PROGRAM, IMPROVEMENTS TO OUR EXISTING FUEL FORM AND THE RECONSTRUCTION OF AMY BRICKEN BUTTER DRIVE.
[03:05:01]
PRIORITY AS A DEPARTMENT.WE CURRENTLY HAVE, UM, DRAINAGE THAT IS ABOVE GROUND IN THIS AREA, BASICALLY AS AN OPEN DITCH DRAINAGE, IF YOU WILL.
AND SO OUR GOAL IS TO MOVE DRAINAGE UNDERGROUND BECAUSE AS IT CURRENTLY SITS, IT CREATES OPERATIONAL AND MAINTENANCE CHALLENGES FOR OUR TENANTS AND OUR MAINTENANCE STAFF.
SO THIS PROJECT HAS BEEN TALKED ABOUT IN OUR 2014 MASTER PLAN.
IT'S BEEN A PART OF SUBSEQUENT, UH, CAPITAL CONVERSATION.
HOWEVER IT IS NEEDED AS WE PLAN FOR SCOTT HARBOR PHASE TWO TO ACTUALLY SET THEM UP FOR SUCCESS AND ADDRESS THIS IN THE UPCOMING, UH, FISCAL YEAR THROUGH DESIGN.
DESIGN COST WOULD BE $245,000 AND UH, WOULD BE FUNDED THROUGH THE AIRPORT FUND.
HOWEVER, AS WE LOOK AT FISCAL SCHOOL YEAR 27, THERE IS FUNDING PROGRAMMED OF OVER $3 MILLION THROUGH A GRANT THAT WE WOULD RECEIVE WITH ONLY AN ADDITIONAL 175 NEEDING TO COME FROM THE AIRPORT FUND IN FY 27.
THE NEXT ITEM IN OUR CFP LIST IS THE EXTENSION OF, UH, TAXIWAY BRAVO PHASE TWO.
AS I MENTIONED, TAXIWAY BRAVO IS THE PARALLEL TAXIWAY SERVING THE WEST SIDE OF THE AIRPORT AND IT PROVIDES OPERATIONAL RELIEF WHEN ALPHA IS CONGESTED OR OUT OF SERVICE.
THIS PROJECT IS CRITICAL TO THE REDEVELOPMENT OF THE WEST SIDE OF THE AIRPORT.
WE ACTUALLY WILL REALIZE ABOUT THREE AND A HALF ACRES OF UNIMPROVED LAND THAT WE WILL BE ABLE TO MARKET AND UTILIZE FOR THE GROWTH OF THE WEST ISLAND AIRPORT.
SO THIS IS AN IMPORTANT PROJECT BECAUSE IT WILL ACTUALLY EXTEND TAX WAVE BRAVO TO THE NORTH.
SO IT JUST CONTINUES TO, UH, PUT OUT YOUR REPORT ON THE MAP, IF YOU WILL.
OPPORTUNITY OPS ACTUALLY PROGRAMMED THE DESIGN OF THIS CHART FY 26 AND CONSTRUCTION IN 27.
SO WHAT THAT MEANS IS DESIGN COSTS OF, UH, 609,000 FY 26, BUT ALMOST 550,000 COMING THROUGH A GRANT AND 60,000 COMING FROM THE AIRPORT FUND.
AS WE LOOK AT FY 27 CONSTRUCTION COSTS.
WHERE WHERE DOES BRAVO STOP NOW? UH, I'M SEVEN MID MIDFIELD.
AND THIS WILL TAKE US ALL THE WAY NORTH FROM HERE.
UM, CONSTRUCTION COST OF OVER 10 MILLION FY 27, UH, WITH 9 MILLION AGAIN BEING PROGRAMED FOR
SO, UH, GRANT FUNDING BEING IMPORTANT TO OUR CONTINUED SUCCESS.
THE THIRD ITEM, UM, THAT'S LISTED IN OUR CIP PROJECT IS TO MAKE, UH, IMPROVEMENTS TO OUR EXISTING DRILL FORM.
COUNCIL MAY RECALL DURING LAST YEAR'S BUDGET PROCESS, WE ACTUALLY DISCUSSED A NEW FIELD FARM FACILITY, BUT AS WE LOOKED AT THE ASSOCIATED COSTS AND THE OPPORTUNITIES FOR FUNDING, WE DECIDED NOT TO PURSUE, BUT INSTEAD LOOK AT MAKING IMPROVEMENTS TO OUR CURRENT FIELD FARM SITE.
AND THERE ARE ACTUALLY THREE AREAS OF OPPORTUNITY FOR US.
ONE OF THE THINGS THAT WE SEE IS WHEN THERE'S A STORM, WE OFTEN LOSE CONNECTIVITY TO THE FUEL FORM.
AND THAT'S BECAUSE OUR ELECTRICAL SYSTEM IS NOT HOUSED PROPERLY.
SO THIS IS ONE OF THE IMPROVEMENTS WE WOULD MAKE TO ACTUALLY HOUSE OUR ELECTRICAL COMPONENTS, UH, TO PREVENT THAT CONNECTIVITY ISSUE.
ALSO, WE ARE PROPOSING TO ADD ABOVE BROWN STORAGE TANKS TO SERVE TOWN VEHICLES AND EQUIPMENT.
THIS WOULD BE A HUGE, UH, WIN IN TALKING TO GENERAL SERVICES.
AND SO WE'RE EXCITED TO OFFER THIS TO BE ABLE TO FUEL TOWN VEHICLES AND EQUIPMENT.
AND THEN LASTLY, WE'RE PROPOSING TO ADD RESTROOMS TO THE SITE.
SO AS OUR FUELERS AND TOWN STAFF ARE UTILIZING THE SITE, WE'LL HAVE RESTROOMS THERE AS WELL.
CAN I ASK A FEW QUESTIONS? SURE, PLEASE.
SO ON THE ABOVE GROUND, UH, FUEL TANKS FOR, UH, REGULAR GASOLINE AND DIESEL, I GAS, UM, IS THERE ANY COST SAVINGS FOR US THAT WE'LL SEE FROM THAT? FROM HOW WE FEELING THEM NOW? AND I BELIEVE SO I'LL HAVE TO ASK BILL OR
SO IT SAYS, UH, YOU SIGNIFICANT LAST TIME WE DID ESTIMATE TO, UM, REPAIR THE EXISTING TANKS THAT ARE UNDERGROUND WAS CLOSE TO $2 MILLION.
SO THE TANKS ARE UNDERGROUND NOW, THE YES.
THE FUEL TANKS FOR THE VEHICLES.
[03:10:01]
I DIDTHE OTHER QUESTION IS OF ON THE FIVE ACRE REDEVELOPMENT ON THE SOUTHWEST CORNER, CAN YOU GO BACK TO, WHAT'S IT SLIDE 37 OR 30 37? JUST CURIOUS, WHERE IS THAT? I'M ASSUMING BRAVO FACILITATES THAT.
THE EXTENSION OF BRAVO FACILITATES IT, IF I'M NOT MISTAKEN.
IT'S HIGHLIGHTED, IT'S ACROSS FROM SONIC.
THE FIVE ACRE DEVELOPMENT IS, DO YOU WANNA COME TALK TO US A LITTLE BIT FURTHER? ALRIGHT.
UM, YOU KNOW, BILL BY PACIFIC AIRPORT DIRECTOR, UM, THE, UH, FINAL PIECE THERE THAT YOU'RE SEEING THERE IS ACTUALLY THIS COMBINATION, UH, IS ABOUT ONE IN A THIRD ACRE OF, UH, CITY LAND AND ONE IN A THIRD ACRE, UH, THAT IS PRIVATELY HELD, UH, WITH ONE OF OUR CONCURRENT TENANTS THAT IS LOOKING TO DEVELOP THAT AS A AERONAUTICAL FACILITY.
UH, SO THE EXTENSION OF THE PHASE TWO TAX LAND WILL FACILITATE THAT AS WELL AS MORE OPERATIONAL, UH, NEEDS.
UH, UH, FOR THE, UH, FUNWAY BACKUP, UM, THE FIVE ACRES THAT YOU'RE REFERRING TO IS FIVE ACRES.
THAT'S USUALLY NORTH OF THE TUNNEL ON THE WEST SIDE OF THE AIRFIELD, UM, THAT IS CURRENTLY LAND HELD BY THE AIRPORT THAT, UH, DID NOT HAVE FUNWAY ACCESS UNTIL THE PHASE ONE PROJECT JUST COMPLETED.
SO WE'LL LOOK INTO, UM, MARKET THAT PROPERTY SOON.
UH, A KEY MOMENT OF WHY THIS EXTENSION PROGRAM IS SO IMPORTANT IN ASSOCIATED FUNDING, WHEN WE, I THINK I TOUCHED ON THE DESIGN FOR THE FUEL FARM WOULD BE 95,000 FOR THE UPCOMING FISCAL YEAR, AND THEN THE CONSTRUCTION COST WOULD BE 1.6 MILLION IN FY 27, AND YOU'LL BE FUNDED THROUGH AIRPORT BOND AND CERTIFICATES OF OBLIGATION.
AND I THINK STEVEN WILL SPEAK TO THAT WHEN HE GOES OVER THE REPORT.
ON SUMMARY, THE LAST ITEM THAT WE HAD WOULD BE THE, OH, SORRY.
YEAH, CAN YOU GO BACK TO THAT SLIDE? UM, ON THE 95,000, IS THAT FOR JUST DESIGN WORK? IS THAT WHAT WE'RE LOOKING AT THERE? THAT'S CORRECT.
OUR LAST ITEM IN THE CIP PROGRAM WOULD BE THE RECONSTRUCTION OF ANNIE KUER DRIVE.
UM, EDDIE REBA, JUST LIKE JIMMY DOWELL HAS, UM, SEEN THE END OF HIS USEFUL LOCK, IF YOU WILL.
AND SO WITH THE NEW CONSTRUCTION AND REDEVELOPMENT THAT'S HAPPENING AT THE AIRPORT, THIS NEEDS TO BE RECONSTRUCTED TO ENSURE THAT TOWN UTILITIES, SIDEWALKS ARE PROPERLY, UM, REPLACED AND INFRASTRUCTURE IS SET AS IT'S NEEDED.
AND SO TO ACCOMPLISH THAT, WE'RE EXCITED TO WORK WITH OUR PUBLIC WORKS AND ENGINEERING DEPARTMENT.
THEY'RE ACTUALLY LEADING THE JIMMY DO LITTLE PROJECT WITH US, AND SO WE'RE EXCITED TO WORK WITH THEM ON THIS PROJECT AS WELL.
UM, THE, UH, PROJECT IS SCHEDULED TO GO INTO DESIGN AND F FY 26, 200 $20,000 AND 1.48 WOULD BE THROUGH AIRPORT BONDS AND CERTIFICATES OF OBLIGATION.
AGAIN, STEVEN CAN SPEAK TO THAT, REVIEW YOUR, UM, SUMMARY AND WITH THAT I'LL ANSWER ANY QUESTIONS BEFORE I TURN IT BACK OVER TO STEVEN TO TALK ABOUT THE SUMMARY.
UH, ABOUT THE ON THE FUEL FARM? YES, SIR.
SO I THOUGHT WHEN WE TALKED ABOUT THAT BEFORE, PART OF THE REASON WE WANTED TO BUILD MORE WAS TO ADD CAPACITY.
IT IT WITH WHAT WE'RE DOING THAT REALLY DOESN'T ADD CAPACITY FOR THE, FOR THE AIRPORT, DOES IT? CORRECT.
I THINK IN TALKING WITH SOME OF THE FPOS, WE, UM, NOW REALIZE THAT THE ADDITIONAL CAPACITY IS NOT CURRENTLY AS NEEDED AS WE THOUGHT IT WAS.
AND THAT DOESN'T PRECLUDE US FROM HAVING ADDITIONAL CONVERSATIONS TO THE AIRPORT MASTER PLAN.
BUT AS OF RIGHT NOW, THIS WILL TAKE CARE OF OUR CURRENT NEEDS AND OUR FBOS ARE SATISFIED WITH THE CURRENT STRUCTURE WE HAVE.
HOW LONG DOES IT TAKE TO FUEL FOR ONE OF THOSE BIG TRUCKS TO, TO REFUEL THE TANKS? IS THAT HOURS? I DON'T THINK SO, BUT I'M GOING, I MEAN, I WAS THINKING ABOUT, I'M THINKING ABOUT THE RESTROOM NEEDS IS I'M THINKING ABOUT, I TAKE HIS FIRST STAB AT THIS, HE DIDN'T HAVE TO DO THE BUDGET.
GENERALLY IT'S BETWEEN 30 MINUTES AND AN HOUR.
YEAH, IT'S A PRETTY GOOD TIME THERE.
UM, IT JUST SEEMS LIKE THERE'S A, BETWEEN THE ESTIMATED, UH, BUDGET THIS YEAR AND, AND THE BUDGET FOR NEXT YEAR, IT SEEMS LIKE THERE'S PRETTY RECENT DROP OFF IN THE SERVICE FEES.
THAT SEEMS TO BE THE, THE BIGGEST DIFFERENCE IN REVENUE.
IS THAT CORRECT? AND WE DO YOU HAVE AN IDEA OF WHY? SURE.
I'LL LET STEVEN SPEAK TO THAT AND IF THAT'S OKAY,
[03:15:04]
BECAUSE HE GOES OVER THEUM, THE, THE REAL DROP OFF IS INTERGOVERNMENTAL REGULATOR.
AND THAT IS RELATED TO, UH, WE HAD THE, A BUDGET FOR, UH, THEY TALKED ABOUT SOME GRANT FUNDS RELATED TO THE INFRASTRUCTURE IN BETH JOBS ACT, UM, FOR ONE OF THEIR PROJECTS.
WE HAD A BUDGETED REIMBURSEMENT, UH, IN THE CURRENT FISCAL YEAR FROM THAT PROGRAM.
AND THEN IN 2026, WE, WE DON'T HAVE THAT BUDGET, SO, SO THIS IS REALLY GRANTS FROM THE FAA OR TECH STOCK, THAT TOP LINE.
SO SOMETIMES, UH, WE GENERALLY GET A HUNDRED THOUSAND, BUT BECAUSE OF THAT PROGRAM IT WAS GOING GONNA BE SIGNIFICANTLY HIGHER.
SO REALLY ONE, ONE TIME REVENUE.
SO, SO OUR, AND JUST, JUST STARTING TO GO, GO THROUGH THE FUND, BUT OUR SERVICE FEES, UH, HERE ARE PROJECTED TO GO UP SLIGHTLY.
THAT'S REALLY, UH, OUR, UH, FUEL FLOWAGE FEES, THAT'S OUR CUSTOMS FEES.
UH, RENTAL INCOME IS PROJECTED TO GO UP, UH, ALMOST $300,000, ABOUT $270,000.
UM, AND THEN INTEREST AND OTHER INCOME AS WELL SUICIDE.
SO BASICALLY IT'S A DROP OFF IN, IN A SPECIFIC TYPE OF FA GRANT.
THAT'S REALLY A, THIS IS GOING AWAY.
WE'RE NOT GONNA SEE IT ANYMORE.
YEAH, IT'S A COVID AREA GRANT OR COVID RELATED GRANT FROM THE, UM, FROM THAT BIPARTISAN, SO CALL IT BIPARTISAN INFRASTRUCTURE LAW.
UM, SO THAT'S, THAT'S REALLY WHAT IT REALLY THANK YOU, STEVEN.
CAN YOU SAY THAT AGAIN? REVENUE, WHERE ARE THE FUEL? UH, THEY'RE IN SERVICE FEES.
SERVICE FEES ARE REALLY MOSTLY FUEL FLOWAGE FEES.
AND THEN, UH, ANOTHER COMPONENT OF THAT IS RELATED TO THE, UH, CUSTOMS FEES.
SO THOSE ARE MAKE UP FOR THAT.
AND THEN ON THAT, FINANCIAL PERSONNEL SERVICES ARE UP LIKE SIGNIFICANTLY, LIKE 30%.
DO YOU KNOW WHY THAT INCREASE? SO, AND I'LL GO BACK A LITTLE BIT HERE.
SO AS YOU CAN SEE, UH, THERE, THERE'S THE EMPLOYEES, UH, LISTED HERE FROM THE AIRPORT, 14.2.
UH, THERE'S VARIOUS OTHER DEPARTMENT EMPLOYEES THAT ARE ASSIGNED OR PARTIALLY PAID OUT OF THE AIRPORT.
UM, SO THAT'S INCREASED, UH, QUITE A BIT.
PART OF WHAT WE'VE DONE, AND PART OF WHAT WAS RECOMMENDED, UM, IN IN PUBLIC SAFETY STAFFING WAS THAT THREE OF OUR DRIVERS, UH, FROM THE FIRE DEPARTMENT BE PAID, CAN BE PAID FROM THE AIRPORT FUND.
SO WE'VE SORT OF MOVED FOLKS OUT OF THE GENERAL FUND FOLKS OUT OF THE GENERAL FUND, ESSENTIALLY INTO THE AIRPORT FUND.
AND I, I WOULD JUST REALLY, IT'S GOOD NEWS, IT'S BEING THE AIRPORT FUNDS AT A POINT NOW WHERE IT'S PAYING FOR ITSELF AND THEY CAN AFFORD TO KIND OF, TO REIMBURSE EXPENSES OR PAY FOR EXPENSES THAT ARE APPROPRIATE FOR THEM TO PAY FOR THE FIRE POSITIONS.
STEVEN CAN TOUCH ON SOME FINANCE POSITIONS AND OTHER ADMINISTRATIVE POSITIONS.
SO IT'S GOOD NEWS THAT THE AIRPORT FUND CAN NOW PAY FOR THE COSTS THAT ARE, THAT ARE ALLOCATED TO IT.
SO REALLY IT IS, YOU KNOW, PARTIALLY ADMINISTRATIVE OVERHEAD.
SO NOW WE HAVE SOME RESOURCES, UH, THERE'S A LOT OF FINANCE RELATED AT THE AIRPORT, ALL THE GRANTS THAT THEY RECEIVED.
UH, WE DO THE BILLING FOR THEM.
SO, SO PORTIONS OF SOME FINANCE FOLKS ARE PAID OUT OF THERE.
CITY MANAGER'S OFFICE, UM, YEAH, I KNOW THREE POLICE OFFICERS AND NOW THREE FOLKS FROM THE FIRE DEPARTMENT COMING THERE.
AND THEN MY, MY LAST QUESTION IS, UM, ON THE FUEL FARM AND EDDIE RICKENBACKER, YOU'RE, YOU'RE PROPOSING COS I MEAN THERE'S A, THERE'S A HEFTY BALANCE.
ANY REASON WHY YOU'D WANT TO GO TO DEBT? THERE IS SO 3 MILLION OR SO.
YEAH, AND, AND I'LL GET TO THE, ACTUALLY, OH, I'M SORRY IF I'M JUMPING AHEAD.
I'LL GET TO, THIS IS THE LONG TERM PLAN HERE.
UM, SO WE ARE CASH FUNDING AND, AND THIS THIS GREEN, UH, LIGHT GREEN UP THERE IS, IS CAPITAL IMPROVEMENTS.
SO WE ARE CASH FUNDING A LOT OF CAPITAL, CAPITAL PROJECTS ALREADY.
UM, AND I'M NOT SAYING THAT WE COULDN'T DO ALL OF THOSE PROJECTS WITH CASH.
YOU COULD, BUT YOU KNOW, IT PROBABLY MAKES SENSE TO KEEP, UH, YOU KNOW, YOU CAN SEE THE FUND BALANCE DOES COME DOWN QUITE A BIT OVER THE 10 YEAR HORIZON.
UM, YOU KNOW, KEEP A LITTLE BIT OF THAT POWDER DRY SO TO SPEAK, SO THAT IF WE DO NEED THAT OR IF THERE ARE SOME LEAN TIMES AT THE AIRPORT THAT WE'VE EXPERIENCED IN THE PAST THAT, UH, THAT THERE IS SOME FUNDING THERE AVAILABLE AND WE'RE ALSO SPREADING THOSE ASSETS OVER 20 YEARS AT COST OF THOSE ASSETS BY I SEE.
[03:20:01]
FINANCING.SO THAT FUEL FARM, UH, THOSE IMPROVEMENTS AND THE ROAD IMPROVEMENTS, THEY'RE ALL REALLY 20 TO 40
UM, SO, SO JUST BEING ABLE TO SPREAD THAT COST OVER, YOU KNOW.
I'D REALLY LIKE TO SEE THAT PROJECTION BECAUSE THAT'S, THAT'S WHAT I THINK ABOUT ALSO, I MEAN, YOU, YOU ANSWERED MY QUESTION ON THE, UH, THE WATER FUNDS AND, AND THOSE WITH THE SAME QUESTIONS LOOKING AT WHAT HAPPENS WITH THE MODEL.
IF YOU, IF YOU DO THIS, YOU PAY FOR IT TODAY AND HOW IT LOOK, WHAT IT LOOKS LIKE SIX YEARS OUT.
SO IT'S REALLY A REALLY A GOOD THING TO, TO SEE ON THOSE PROJECTIONS THAT WE'RE LOOKING AT FAR OUT.
AND I, YOU KNOW, I'LL NOTE HERE THAT WE DO HAVE A, YOU KNOW, WE DO HAVE A DRAW DOWN IN FUND BALANCE, BUT REALLY IT'S PLAN A PLAN DRAW DOWN MM-HMM
UM, UH, BACK IN 2012, VOTERS APPROVED $7 MILLION FOR THE AIRPORT THINKING THAT, YOU KNOW, WITH THE APPROVAL THAT THEY WERE GONNA HAVE TO PAY FOR IT WITH PROPERTY TAXES, RIGHT? MM-HMM
UM, SINCE THE AIRPORT'S BEEN DOING BETTER THAT WE STARTED TO SERVICE THAT DEBT WITH THE AIRPORT FUND.
UM, SO THAT FALLS OFF IN 2033.
SO IN 2033 YOU CAN SEE THAT IT STARTS TO, WE START TO GET, YOU KNOW, SOME POSITIVE, UM, YOU KNOW, COME BACK AFTER, AFTER WE PAY THAT CUTOFF.
SO THERE IS A LITTLE BIT OF A PLAN DRAW DOWN, BUT, UM, IT'S WITHIN, WITHIN OUR PLAN.
BUT WE, WE ARE DOING SIGNIFICANT INVESTMENT IN CASH CAPITAL PROJECTS HERE THROUGHOUT THE FIVE YEAR PLAN, UH, FIVE YEAR CAPITAL
BUT, BUT I HAVE A FEW OF THOSE PROJECTS THAT I CAN GROUP TOGETHER AND, AND FINANCE 'EM.
I'LL PROBABLY, THAT'S PROBABLY WHAT I'LL DO FOR PROPOSE AT LEAST, JUST TO, JUST TO KIND OF, UH, YOU KNOW, HOPEFULLY SPREAD THOSE, SPREAD THOSE COSTS OVER MULTIPLE DECADES AND THEN, YOU KNOW, KEEP, KEEP US, UH, A LITTLE BIT.
SO GETTING, GETTING BACK A LITTLE BIT, GOING OVER THE FUND, UH, OVERALL REVENUE IN THE AIRPORT'S PROJECTED AT 8 MILLION.
HERE'S OUR OPERATING EXPENSES AT 7.2 MILLION, AND THEN THIS IS THAT TRANSFER TO DEBT SERVICE I'M TALKING ABOUT.
THAT'S THEN SERVICING THAT NET FROM 2012 THAT, THAT WAS SOLD.
AND THEN THE ONE TIME DECISION PACKAGE, UH, FOR THE GIS THAT PASSION TALKED ABOUT.
AND THEN THESE ARE ALL REALLY THE CASH FUNDED CAPITAL PROJECTS.
YOU CAN SEE OVER THE LAST REALLY THREE BUDGET CYCLES.
THEY'RE SIGNIFICANT CAPITAL PROJECTS THAT ARE BEING PAID THROUGHOUT THE AIRPORT CASH RESERVES.
SO, UH, WE HAVE THE AIRPORT REGULATED, UH, GARBAGE UTILITY BUILDING THAT WAS IN OUR, UH, CIP PLAN ALREADY.
PASSION WENT OVER THE BRAVO TAXIWAY, BRAVO EXTENSION PHASE TWO, UH, THE STORM STORM DRAINAGE IMPROVEMENTS.
UH, AND THEN WE HAVE A REC RICK AND BLOCKER DRIVE, UM, UH, RECONSTRUCTION AND THE AIRPORT FIELD STORAGE IMPROVEMENTS.
SO THOSE ARE THE FIRST YEARS OF THOSE PROJECTS THAT SHE MENTIONED IN, UH, HER PRESENTATION.
SO OVERALL THAT EXPENSE IS 8.8 MILLION OF BRINGING US TO ABOUT 7.2 MILLION IN ENDING FUND BALANCE.
SO JUST THAT RIGHT AT ABOUT A HUNDRED PERCENT, UH, OF FUND BALANCES.
AND THEN GETTING BACK TO THIS, SO, UH, THE, THE REVENUE, WHICH IS, UH, THE LARGEST PORTION, WHICH IS THE, THE ORANGE, UH, COLUMNS, UH, THAT'S REALLY BASED ON COMBINATION OF OUR EXISTING LEASE INVENTORY.
UH, THERE IS INFLATION ADJUSTMENTS THAT HAPPEN TO THESE LEASES PERIODICALLY AND THEN POTENTIAL REDEVELOPMENT.
SO BASED ON, ON THAT, UH, WE HAVE 3%, 3.5% INCREASES IN SALARIES, 5% INCREASES IN HEALTH INSURANCE PROGRAM, AND THEN 2% INCREASES IN OTHER OPERATING COSTS.
UH, AND THEN AS I MENTIONED DOWN HERE, WE DO ANTICIPATE BOND ISSUANCES IN 26, 27 AND 2030, UH, FOR THE AIRPORT RESCUE FIREFIGHTING VEHICLE, UH, FOR 2026.
UH, AND THEN, UH, THE, THE PROJECT'S, THE PASSION I MENTIONED, UH, 2027 AND 2030, AND I WENT OVER THAT TRANSFER IN THE DEBT SERVICE FUND IS EXPIRING IN 2033.
SO ANY QUESTIONS ABOUT THE AIRPORT FUND? I HAD ONE BACK ON THE, THE, UH, FUEL FARM.
FUEL FARM YOU WENT ON, PASS IT THERE.
I DIDN'T WANT TO INTERRUPT YOU.
HOW IS THAT REVENUE STREAM? HOW, HOW DOES IT PAY FOR ITSELF AT 1.7 MILLION? WHERE, WHERE DOES THE MONEY AND HOW LONG DOES IT TAKE TO PAY FOR ITSELF BASICALLY? WELL, RIGHT NOW WE'RE GENERATING, AND I DON'T HAVE THE, THE FULL BREAKDOWN, BUT I THINK FUEL FARM REVENUE IS PART OF THIS BUCKET OF SERVICE FEES AND I BELIEVE IT'S BUDGETED A LITTLE OVER BETWEEN 1.2 AND 1.3 MILLION, UH, RIGHT NOW.
WELL, I, I'VE BEEN TOLD THAT WE DON'T SET THE FUEL PRICES, WE DON'T DO ANY OF THAT NATURE.
DO WE PAY, DO WE BUY THE FUEL TO PUT IN THERE AND SELL IT TO THE FBOS? DO THE FBOS SPILL 'EM? HOW DOES, HOW DOES THE FUEL FARM WORK? W YEAH, WE CAN GET THOSE BACK.
[03:25:01]
UM, IN SPEAKING TO THE, UH, THE FUEL FARM, UM, IT WAS CONSTRUCTED IN 2007 MM-HMMAND THE COSTING OF THAT FUEL FARM WAS BASED ON SOME INCENTIVES THAT WERE STRUCTURED WITH FUELERS WAY BACK PRIOR TO WE HAD 29 BURIED UNDERGROUND TANKS THAT WERE IN VARIOUS ARRAY OF CONDITIONS, WHICH THE TOWN MEDIATED ALL THOSE TANKS AND CLEAR AND BUILT THE NEW FUEL FARM, BROUGHT ALL THE FUELERS.
WE OWN AND MANAGE THE FUEL FARM FACILITY, WHICH HAS, UM, JET FUEL AND UH, APP GAS FUEL, SOME DIESEL AND MO GAS FOR GROUND VEHICLES, 315,000 GALLONS.
THE AIRPORT MANAGES AND CONTROLS THE FUEL FARM.
AT LEAST 10 CAPACITY WAS JUST THE 1 MILLION AND A HALF THAT, UH, STEVE HAD ALLUDED TO AS KIND OF A RENTAL AND ALSO, UH, COVERS THE DAY-TO-DAY MANAGEMENT COST.
UM, THAT RATE STRUCTURE WAS INCENTIVIZED THROUGH THE STRUCTURED BACK IN 2007.
UM, THE FUEL PERMITS ARE 25 YEAR PERMITS WILL BE COMING UP ON REEVALUATING THE, THE COST OF THE FUEL FARM AT THAT POINT IN TIME.
UM, BASICALLY THE FUELERS ARE PAYING THE NET RENTAL FEE, THE COST OF OPERATIONS AND ADVERTISING THE COST OF, UH, TANKS ON A PER GALLON CAPACITY BASIS.
THAT MILLIONAIRE HAS A HUNDRED THOUSAND GALLON TANK CAPACITY.
WE'RE PAYING A RATE THAT IS, UH, PAYING PART OF THE COST OF THE TANK ITSELF.
AND THAT'S JUST THE, THE STRUCTURE THAT WAS BUILT, UH, OR UH, OFFERED BY THE TOWN BACK IN 2007 TO, UH, GET CONTROL OF THE FUEL FARM.
SO WE'LL REALLY LOOK TO THE FUEL FARM AS A HOPEFULLY A, A BREAK EVEN COST OPERATION.
UM, OR AT WORST, A LOSS LATER BECAUSE WE HAVE TO HAVE IT WITH FUEL FARM AND UM, UH, BUT UH, THAT IS AN AMENITY OF THE AIRPORT THAT, UM, IS UH, VERY CRITICAL TO THE AIRPORT.
BUT I DIDN'T KNOW, SO YEAH, AND I'M SORRY I MEANT TO ANSWER NO, PLEASE.
YOUR QUESTION REGARDING ABOUT FUELING, UH, THE FUELERS BY THEIR OWN FUEL, WE DO NOT MANAGE FUEL.
WE DO, UH, MONITORING ACCOUNT INTO THE TANK SINCE THEY'RE PICKING UP FUEL FLOWS FEED, BUT OTHER THAN THAT, WE HAVE NO CONTROL OVER THE FUEL ITSELF.
THEY BUY THEIR FUEL FROM THEIR SUPPLIERS, UH, IT GOES INTO THE TANK AND THEY TAKE IT OUT OF THE TANK AT THE END OF THE DAY.
WE HAVE THE TANK AT AND, UH, WHEN, WHENEVER THEY, UM, CEASE TO OPERATE WHATEVER THE CASE MAY BE.
SO THE EXPANSION THAT WE'RE MAKING IS JUST FOR CITY VEHICLES TO BE ABLE TO COME THERE FOR THOSE THREE, UM, AREAS I MENTIONED THANK RESTROOMS, UM, THE, UH, ADDITION OF THE, UM, TOWN ABOVE GROUND STORAGE TANKS IN THE ELECTRICAL HOUSE.
AND SO THOSE ARE THE THREE IMPROVEMENTS WE'RE MAKING.
WE'RE NOT ADDING ANY ADDITIONAL FIELD CAPACITY FOR THE FBOS.
SO IT IT IS STRICTLY FOR, FOR CITY USE THERE? THAT IS CORRECT.
I IS THAT THE MOST, IS THAT THE BEST PLACE FOR THAT FOR CITY USE OR UP CLOSER TO THE SERVICE FACILITY UP THERE ON THE NORTH END OF THE AIR WHERE WE'VE GOT LAND WHERE WE CAN PUT THAT.
IS IT EASIER TO PUT IT THERE BECAUSE THERE'S ALREADY STRUCTURE IN PLACE YES.
JUST TO ADD ON RATHER THAN MAKING SOMETHING NEW? ABSOLUTELY.
WE HAVE THE SYSTEM AND THE STRUCTURE ALREADY IN PLACE TO BE ABLE TO ADD TO IT AS OPPOSED TO CREATING SOMETHING HAS.
AND YOU TALKED ABOUT, WE TALKED ABOUT A REASON WE'RE DOING THAT IS WE HAVE HAD ANY TANK IN THE GROUND AND IT WOULD COST A LOT OF MONEY TO A LOT OF MONEY.
WE'RE GONNA HAVE TO DIG THAT UP ANYWAY.
ARE WE, WE CAN'T JUST LEAVE A CONTAMINATED TANK IN THE GROUND SOMEWHERE.
I THINK THIS IS SOMETHING THAT NITA AND HIS TEAM ARE WORKING THROUGH.
UM, I DON'T KNOW THE SPECIFICS ON, BUT YES, THEY DO HAVE A PLAN FOR THAT.
BUT SINCE WE HAVE SOME ADDITIONAL OPPORTUNITY NOW WE WANT TO GO AHEAD AND ADDRESS IT ALL.
WE MAKE THESE OTHER IMPROVEMENTS AND YES, THEY HAVE A PLAN ON WORKING WITH THAT.
NOW THE, UH, FOR THE, FOR THE EXISTING UNDERGROUND FUEL STORAGE TANKS, IT WAS ABOUT $2 MILLION TO REFURBISH THOSE TO BE USABLE.
NOT TO JUST DECONDITION 'EM LIKE WE HAVE LESS EXPENSIVE, IT'LL BE MUCH LESS DISPOSE OF THEM TO DISPOSE OF THEM RATHER THAN RATHER TODI AND ALL THAT.
ANY OTHER QUESTIONS ON THIS? ON THE AIRPORT FUND? OKAY, WELL WE HAD TARGETED, UH, EIGHT O'CLOCK FOR US TO KIND OF WRAP UP THIS EVENING AND UH, SO WE'LL GO AND DO THAT.
THIS SEEMS LIKE A GOOD PLACE TO DO THAT.
SO IT'S EIGHT 15 NOW AND WE'LL BE BACK HERE TOMORROW.