City Council - Regular Meeting

That's it. Yes.

No. All right, we will call this regular city council meeting to order on March 9th, 2026 at 6 p.m. Roll call. Mayor Tney here. April Arand here. Jane Rididgeway here. Alex Esquavel is absent. Dr. Pam Sardo here. Gary Chapel also absent.

All right, if you will stand for the pledge of allegiance. To the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

I am going to do the invocation. Thank you. Will you bow your head with me, please? Father God, Easter will soon be here to celebrate that you love this world so much that you gave your one and only son that we might be called your children also. Lord, help us to live in the gladness and grace of Easter every single day. Let us have hearts of thanksfulness for your sacrifice. You are bigger than any problem in this world. Help us to tell your good news to the world. And please protect all of the first responders who help and protect us. and all for your glory we do pray. Amen. Amen.

All right. This time we would uh like to uh recognize Lloyd Brown. Lloyd, if you'll come up. Lloyd's been the uh planning and zoning commission for what, eight years since 2018. Um he's served as the uh chair I guess for I mean the last seven years. So uh we just want to show our appreciation and gratitude. He's got a certificate there. On behalf of the city of Josephine, I'd like to present this uh recognition certificate of appreciation to Mr. Brown in recognition of his service to the city of Josephine. He he has made a significant impact to the community. I think his legacy will be visible for generations to come as the projects um the plans and and codes that he helped establish before my arrival here impact the new projects that are coming in. So uh we also have a card that we signed for you from all the team. So thank you, Mr. Mayor.

Thank you, Mayor. Thank you. Thank you. going down.

No, I think you get in the picture, too.

Thank you very much. All right. Before we move to the next one, I just want to say my appreciation for Lloyd's mentorship and knowledge over the last six, seven years. um sitting up at the store drinking coffee, you know, just talking about things in the city and his knowledge and where he came from and um it's really been appreciated. So, I want to personally thank you for every word of wisdom you gave me. So, thank you.

All right. Um this is a recognition of a few of our employees. I'm going to let Lisa, you doing you want to take this one? I'll let you do this.

Yes, sir. Yes, sir. Uh we have a couple of employees to celebrate tonight as far as their accomplishments. Uh Jerica uh is our utility billing manager, but she is also our assistant city secretary. And I want to congratulate uh Jerica on receiving her Texas registered municipal clerk certification. Uh this is a program through and it's it's very rigorous. So it includes um 200 hours of coursework uh four exams and completion of at least eight seminars along with ongoing evoc um um professional education and reertification every five years. So it's quite an accomplishment. So just wanted to congratulate her. A lot of work went into that. And then we have one more. Uh Lena is not here tonight, but I did want to recognize her for finishing her um level one certified municipal court clerk course. U so this focuses on the basics of municipal courts, including the role of the clerk, um charging the pre-trial, trial procedures, traffic law, and ethics. And she had to take three exams for this certificate. So she's not here tonight, but we congratulate her as well. All right. Next, uh 1.3. This is a recognition for distinguished budget award.

Yes, Mayor. Um we are so proud of Melissa. This is our second year in a row to receive the distinguished budget award. And um this is uh it's exciting for our city and we're also so excited to have Melissa uh whose talent puts this together every year. There's a lot of pressure to meet a lot of very specific requirements for governmental accounting to receive the award. So we're very excited to have that for the second year and very proud of Melissa for putting that together for us.

That was a You didn't print it. No, sorry. All right. I shall later. Great job. Um, all right. We have um people's here for somebody here to represent Peoples. Mason is here.

I'm Mason Dofield. with People's Communication and uh kind of here on behalf of People's because we've been your internet service provider to the city for the last 10 years and we appreciate that. There's been a lot of activity here in the last 10 years working with Kurt, Patty, Lisa, Garrett over there. Uh so 10 years have gone by pretty fast and we're very appreciative of being able to work with the city. And it started at 2016. We were able to just provide wireless service over to I think your temporary city hall over on that's where I first met Patty over there on Hubard and we had fiber built to the downtown tower and this building here was our first fiber installed business or anything in this community. So, and since then we've been expanding to Magnolia, of course, Fountain View, High Meadows, and of course the whole city limits of Josephine. And um what we want to let the city know is that we're going to continue to uh make our infrastructure compatible to what the city needs are. whether that would be for the police, the fire, the schools, and anything the city needs to be able to identify things that helps them provide service to their community. So, um I had a PowerPoint, but I'm just doing it on paper, so I'm uh Oh, there it is right there. All right. Need to get my glasses checked. Um I guess it's the next one really is what we're looking at. So this on the left hand side that was kind of what Josephine looked several years ago and the red on the right and the purple that's where all the fiber network is now what we have built and we were the only provider for about 8 years and I know a lot of people have come here at that time and but we've always been appreciative of

being still the sole provider for the city here at the city hall and the new uh fire station and police department and u After all these years, we've made an investment of over $7 million in the area and we've passed 4,100 residential homes, which is seems significant from 10 years ago. And we have a little over,2700 customers. And these 4,100 homes, they have capable speeds of up to 5 gig. And a lot of metro areas in the United States, cities are not providing that. So we want to ensure that Josephine gets the best that they need to help them grow in the future. And uh I think the last slide is what we want to commit to is just keeping this long-term infrastructure partnership with this city going. Uh we also want to keep things with whatever like shop with the cop. We've done that now for 40 years and we'll always continue to do that. We feel like that's a very uh good program that they've put together. It's grown quite uh quite big now. So, and uh so we want to be a big part of that and anything that we can help sponsor within the city. So, I've talked to Lisa about that and Kurt and so we we're here for you guys. And uh so in May we're doing a appreciation lunch and we tend to leave it I've said it with Brandon May 20th and I want to extend that out to all of you of course Kurt Eric Chief Graham Lisa Patty Jerica and we were having builders and developers come there and I may speak a little bit about just where the techn is going. I'm not going to try to sell you a time share or anything like that, but it will just be a lunch over a lunch hour where you can come and enjoy, talk to people, that you know, and leave as you please. And it won't be anything um

formal. So, when we get to that time, I'll let either one of you know when that date will and sure like to see you there and just appreciate what we feel like we've done with the city. So, it's hard to get everybody in one room. So, I thought, well, this is the place to do it. So I can tell Kurt or Lisa or Patty and everybody else how we appreciate working with them, but telling you in person is the best way to to get that across. So that's all

I would just like to say I've been here in one capacity or another on the council since the beginning and y'all, you know, it's been a great partnership working with y'all. So, um, just the ease of, you know, from our perspective. So, we appreciate y'all as well. So, thank you. You're welcome. Yep. So, thank you. All right. Um, Pam brought up she, uh, had mentioned to she would like to thank all the staff for their, uh, long hours in the voting. So, um, I'll let Pam say her thanks and then

Yeah, thank you. Um, every time there's an election, the staff has to put in extra hours. The staff are helpful to new people who are coming in have never been judges or clerks before, helping to set up the room, helping to take things down. This time the equipment was delivered to the wrong building and had to be moved over here. So, I just wanted to thank the staff for the extra hours, the extra time and kindness that was put in and especially Patty. Thank you all.

Yeah, thank y'all. Which hopefully next year it'll be in the community center. Um, but just on, you know, thanking the staff. I mean, there's a lot of hours that the public doesn't realize staff is storms, you know, meetings. I mean, there's a lot of a lot of time that goes in to many things that go unseen. So, thank y'all. Um, all right. And now we're going to move on to citizens comments. Um, did we have any turned in? Okay. So, at this time, we'll let anybody who didn't fill out one of those forms, if you did, if you didn't, you can go fill it out and turn it into our city and uh we'll call you up and just state your name and address. You have three minutes.

I have one card for Russell Leonard.

Uh yes, my name is Russell Leonard. I want to thank you all for allowing me to speak today. Uh I am I live in Rowlet, Texas, but uh I am a part of Heritage Baptist Church. Uh we actually meet over here in the community center and uh we I I just wanted to come today and one help you guys put a face with with uh our church and let you know a little bit about what we're we're doing and just to thank you for allowing us to use the community center. It's been a massive blessing for our church. Uh we're a small church plant uh that was started uh from WY uh from Cornerstone Baptist and uh we uh were outgrowing our our facilities there and needed a place to to move uh to our our small group and so Cornerstone is still there. They're still growing. Um but we have three families that are out here in Josephine and then we have seven other families including myself that commute and go to the church on Sunday. And uh we um just a few things about us is uh we're an expository uh church meaning that we preach verse by verse through the scriptures and uh they are our highest authority and so um we have a desire to we heard heard you talk about the preaching the good news earlier. That's our passion at at Heritage. Uh we want to see the good news go out to this community and so we're committed to do that. We'll be out at uh any events that are out here uh handing out tracks um taking people through God's law. Through the law comes knowledge of sin and we want people to understand that uh it is only through you know Jesus Christ that salvation is found. Um so the other things that we're committed to is biblical counseling. I'm currently going through uh biblical counseling certification. So we want to support the community uh through uh biblical counseling. I also have a full-time job. So, uh, I do that on the side. Uh, but, um, uh, the last thing I want to say is that we, um, like I said, we we really appreciate the community center. Uh,

it's been a blessing to us. Um, I know that there's a couple of rooms there. I heard in the last, uh, one of the last meetings that you guys had that there's potential to have those rooms be open. And I just want to let youall know if those rooms are open, we would love to use those for Sunday school facilities. Uh, cuz we've got lots of kids. We have 10 families and almost every family has two to three kids and they're all um you know looking for space and we we've got them in a small area there that's uh it works um but if we ended up having those rooms it would be a real real blessing to us. So like I said just wanted to put a face to the name and uh let you guys know that that facility is being you know used and and we we think in a a way that honors the Lord. So thank you for for your time.

Thank you. Do we have any other cards? Anybody else that would like to speak? All right. If not, we will move on. All right. We'll move on to the consent agenda. Council questions or discussion? I have just one TN question to pull the finance report for just 30 seconds and everything else um is fine to vote on the consent agenda. All right. Do we have a motion?

I'll make I'll make a motion to accept the consent agenda. Excuse me. Second. All right. Are we sending the electronic?

Yes. Um, wait a minute. There it is. There it is. Did you get them? Do what? Yeah.

Okay. All right. I didn't see nothing on my end. So, all right. And my only very quick question is um regarding the financial report or the um the income statement, where will the TCEQ fine be placed? That's my only question. We do have a budget line on the report for the TCEQ fines. It is not sufficient to handle what we have discovered but from my understanding our engineers will be working with them to hopefully eliminate that. So right now no changes on

right now. No. All right. Thank you. All right. So now we need a motion to approve the uh I'll make a motion to approve the financial report. I have a second. I'll second.

Okay. Voting signs in favor. All in favor. Okay. Okay. Item four, new business. This is 4.1. This is um take action to adopt a resolution of the city of Josephine, Texas. Determine the cost of certain authorized improvements to be financed within improvement area number one of the Josephine Public Improvement District. Number one, approving a preliminary service and assessment plan, including proposed assessment role, calling a regular meeting, and noticing a public hearing for Octo or October April 13th, 2026 to consider an ordinance levying assessments on property located within improvement area number one of the Josephine Public Improvement District number one, directing the filing of the proposed assessment role with the city secretary to make available for public inspection, directing city staff to publish a mail notice of said public hearing approving a preliminary limited offering memorandum and resolving other matters incident and related there too.

Yes, mayor. We have our professional consultants here this evening. Uh they've been here several times before, so hopefully none of this is a surprise to anyone. Um if you have questions, they are here to answer your questions about the resolution. All right, who's the first one?

We pretty much went over most of it, but if um you're our representative, so if council does have any questions and direct them in his direction.

Yes, sir. Good evening, mayor and members of the council. Rudy Sagura with McCall Parkhurst and Horton. We are bond council to the city. Um this is sort of the second to the last action. Um the 4.1 and then the following uh resolution. This is for the city's first PID commonly known as Morningside. Um so this is the step that's required a step required by the PID act is you do have to call a public hearing and notify the land owners that assessments are proposed to be levied on their property. It is a singular singular land owner. This is what was Brightland Homes now acquired by DRB. Um and so we will if uh subject to approval by council uh we'll work with uh the city secretary to have the notice published in the paper uh of the levy uh proposed levy on April 13th and we'll send certified letters to the land owners on the on the city's behalf. Uh the land owners representatives are here in the room. Um uh Mr. Michelos and Mr. Tate. Um and if if you have any questions for the land, you know, we're directed at the land owners. But basically, we set a budget uh for what we think are the going to be the costs of the improvements that have already been built in phase one. uh and uh Jordan Sawyer, the city's pit administrator, has been working uh with uh Evan and his group and your financial adviser Hilltop to come up with what we believe are, um you know, good estimates of the costs. And so, um you know, there may be a little conservative because we will sort of the amount that the city can fund you, I think last time was asked like how much, right? And so it

allows up to I don't remember a much bigger amount than is what they actually going to build. And so um um you know we're only funding the amount that the developer actually is building putting in the ground and deeding over to the city infrastructure, roads, water lines, sewer lines, sidewalks, drainage infrastructure, uh you know, light posts, stuff that's going to be owned by the city. And so uh we'll publish that notice and with that approval we'll move forward. There's already been a limited offering memorandum which is a very long offering document that has been drafted and this resolution each one delegates to city staff in consultation with bond council and your pit administrator or your financial adviser to approve the final version which will be c uh circulated maybe two weeks from now to investors. And then the city will the investors the underwriter will take bids the morning of April 13th from potential buyers and we'll be back here on April 13th with an offer from those underwriters to buy the bonds. Um you know those bonds as we discussed are only payable from the assessments from the land owners right now. One land owner future land owners um there's really there's really no recourse to the city. you know, the only sort of re, you know, liability is sort of political liability. Uh, and and the city does have to do things to make sure that the tax exempt status of the bonds is preserved. But, uh, but this is, you know, designed to be a nonreourse transaction for the city. Um, but this is sort of the last step before we get to the actual bond sale, which will be April 13th. We'll have two bond sales, have a big stack of papers for y'all to sign, and then that'll be the last time we come before this council for any

financing uh until they finish their phase two. Each of them has a second phase, which you know, how many years away do we think that is? Two.

Okay. Could be four or five. Just depends on uh market, right? And how sales and how they do. So, um, that's, you know, that's the the matter before you hear for more. It'll be, we need two separate votes. Um, I am open to I would like to take any questions that the council may have. I would have a kind of an odd request, but I would add that if you make a motion to approve that in the motion, you move to ratify the acreage of this pit as 50.033 033 acres. That is a very we I have feel like I've been on the phone with the attorney general's office continuously for the last eight business days. Uh they're always coming up with new things and new requirements. And uh you know on this one when it was created 5 years ago there was uh you know it was a it was an old deed from years ago was called acorage. That means people kind of just like eyeball it and we say that's about 55 50.221 acres and then later it was surveyed with modern techniques was reserveyed again and the final acreage is 50.033 acres. Right, Robert?

Yes, sir. Right. And so that was something that just was brought up to me on a call this morning with Ken Paxton's office is that um anytime there's a discrepancy like that, they would like the council to ratify the correct acreage. So with that, I'm happy to answer any questions. I just had one question. You said Brightland was there and now it's BRD DRB acquired Brightland. I don't see them here, but they they merged. DRB is DS and Dog RS and Roger. Yeah, DRB. They're from Maryland. Yes.

Enterprises company. What's the rest of it? DRB group group. So you know from my sort of you know that's sort of more of you know Robert's world but you know D Brightland was sort of a higherend homebuilder and my understanding is DRB is also a higherend east coast home builder. Okay. And they have acquired um Brightland. So they now own it. I think was Brightland Texas based? I didn't hear. Was Bri uh Brightland? Were they a Texas based firm? Yes. So now they're part of a national firm. Are they still going to build under their name or are they going to phase them out? They are still going to be the builder on both phases.

Of course, anything could I'm sorry. Anything could ever change. Yeah. But right now the plan is for them to build on both phases. Signage. Is it going to say Brightland or DRB? I don't know. Okay. My guess would be DB. A specific question. So, I don't want to make something up. Um, they've I I mean, all the communications I've started getting from them have now changed over to DRB. Yeah. Okay. Even their emails. Yeah. So, yeah, then they're probably going to take them. I know DRB, too. I've seen them. All right. Questions? Anybody else?

Um, I have one quick question. Um, you mentioned that Hilltop Hilltop will come up with the estimates amongst others. Um, once the April 13th vote occurs, will the costs remain fixed into perpetuity or is there a chance that they'll change? Let me I'm going to pass that one off to the home that purchases each lot.

Yes. Yeah. For the homeowners, the assessment will not increase. Uh, that Yeah. That that will be set on the April 13th. The cost of the improvements when the developer constructs the improvements, those are dedicated over to the city. The costs that are associated with that are sent over to our group that we actually will go through on behalf of the city and then working with the city to review and make sure that those costs are what we levied for before any dollars are are ever released. So, two parts homeowners will never see an increase there. The homeowners can still pay it off at any time. That's a special feature of these assessments. Uh the cost of the improvements will be falling under there.

Okay. Excellent. And is you're not with P3, are you? Yes, ma'am. Oh, you are? Okay. Are you going to be along for the ride forever into perpetuity or is it a oneand done? You set it up and you leave. No, ma'am. Yeah. Unless uh Lisa wants to take over. Yes, ma'am. No, we we will serve as a the city's per pit administrator. These are 30 years assessments. We'll be here for those full 30 years. Okay. Thank you. Absolutely. That's all. Any other questions for him? All right. Thank you. Thank you.

All right. council, we entertain a motion. Um, as he stated, make sure when the motion we if we make a motion forward, state the acreage correction. See if I do this right. I make a motion. Make sure you're speaking to the mic. Thought I was.

There you go. I wasn't. There you go. Okay. I'll make a motion to accept the certificate of resolution for the Josephine Public Improvement District number one, which contains 50.33 acres to set a meeting for the for a public hearing. Uh 55.033. Apologies. 55 Yeah, the discrepancy is literally like two or three hundths of an acre. Okay. 55.33

033 acres. 55.03. 55.033. Boy, I wrote that one down wrong. Anybody want to start over with the motion? No, you're good. Go ahead. Just make your correction and move on. You're good. Okay. and to set a public hearing for April the 13th to consider an ordinance letting assessments on the property within the improvement area of 55.033 acres.

That works for me. Yeah, I mean you're you're adopting them the resolution as stated um with that one finding that um ratifying the the correct acreage is 50 point 55.033. That's what I heard and I'll second. Okay, I think that's sufficient. We have a sec motion and a second. You send the votes

and I'm not getting in one end. So, as far as So, I don't know when we're done. I'm just saying.

I haven't got nothing. Yeah. If you just want to tell me the results, we'll move on.

Okay. All right. Next. Next item is 4.2. This is a continuation of the 4.1. This is a take action to adopt a resolution of the city of Josephine, Texas, determining I just got it. Determining the cost of certain authorized improvements to be financed within improvement area number one of the Morgan Farms Public Improvement District, approving a preliminary service and assessment plan, including a proposed assessment role, calling a regular meeting, and noticing a public hearing for April 13, 2026 to consider an ordinance levying assessments on property located within improvement area number one of the Morgan Farms Public Improvement District, directing in the filing of the proposed assessment role with the city secretary to make available for public inspection, directing city staff to publish and mail notice of said public hearing approving a preliminary limited offering memorandum and resolving other matters, incidents and related to therefore.

Thank you. Any questions council or discussion on this one? And one more tiny question. So, I appreciate that you said the cost won't go up to the homeowners. Will it ever go down? Like, if the development is less costly than you project,

it will. And I'll let Jordan jump in here, but you know, first like whatever we whatever we bond for and we levy on April 13th, it's not for that for that phase is not going to go up. So, that anything that above that the developer would have to cover if for any reason the cost came up, which it's pretty much built. So they pretty much known uh but that would never be an increase. The decrease would only be if theoretically if interest rates no I guess if they come in really high they come in really high at pricing.

Yeah. And so the two ways that it would decrease is like you were saying a refunding. If the cost came in high for the interest rates, but if there are cost savings and the the costs don't actually go to what we thought they were going to be for, those dollars can be used to pay off some of the bonds. Okay. Thank you. Which would be that producing assessment. That's good. Any other questions? Okay. All right. We entertain a motion.

Okay. Um I make a mo I move that we accept the resolution for the Morgan Farms um to determine the costs of the authorized improvements and um call a regular meeting and notice of a public hearing on April 13th. And it's for the same acreage. Right. And this one there's no change. This one. All right. um on the property located in the improvement area one of Morgan Farms Pit. That's it. A second. All right. That's sufficient, right? Okay. Did you hear me? I have a second.

Yes. Jane seconded. So now we just need the votes. Three votes. All right. All right. Thank you. Thank you all very much. Thank you for having us here tonight. All right. This is uh 4.3. I'll give them time to exit the room.

Thank you. This is the uh Kimley Horn and Associates um monthly engineering report. Sorry. Good evening, council. Um just a few things. This month, the Greenville Avenue reconstruction project is in progress. Um RFI number four and change order number one are still being processed. We haven't had any coordination in a few weeks though. Um so no updates on those for the reviews. I think last council we I mentioned it but the fourth construction plan was recommended for approval for the Sonic. So the precon has the precon happened already or is it still

for Sonic?

Not yet. Okay. So it's going to be scheduled at some point. Um 610 East Cook Street. We completed that review on the 6th of February and they have not resubmitted yet. So, we're awaiting that resubmitt. Harvest Bend, they submitted their initial submittals back in December and we're awaiting those resubmitts, but I imagine those are incoming just from coordination that we've been having. Um, 703 East Cook Street, that was also done in December, but I'm not really sure when that would be coming in. and flood studies usually take a little bit more time. And then the 520 Milton Street project, we did a site study review back in February and then we had a pre-application meeting in the middle of February. So, I'm sure we'll be seeing something from them um in the next month or so.

All right, I'm going to open it to the rest of the council for questions. First, I have one tiny question um regarding the tent submitt on Cook Street. Each council member received a letter. Um, is it possible to try to have a sub team meeting to try to move things along or find out if there's a communication barrier, a human factor barrier um to I'll just say I'm currently working on that. Um, you are I am I am and then executive I'll share some information with y'all. Okay, perfect. Thank you. All right, that's all I have then. Um Oh, and do we have the sign up on Greenville yet? I didn't go by there today. I don't know.

Okay. It is awesome. Thank you. That's all I have. You can't say yes because I have a problem with it. It's not the prettiest sign, but it's there. I have I do have one question. I just want to let them finish first. Do you have anything? No, I'm good. Okay. Okay. The Greenville construction. You know where I'm going? I probably the one lane. The one lane. Yeah. Like is that with a big hole? I mean, it's I haven't been on site yet. Okay. So, I'm not Do we Who's the inspector that's on site? The city inspector.

The city inspector. Okay. Well, I'll follow up with city staff then cuz I was just curious. It's I know there's not a lot of traffic on that road, but um yeah, they're supposed to keep the existing road open while they're constructing the new they kept it open, but I mean it's literally one lane. Patty, you live on the road. So Oh, they have they have fixed the big dip. Yeah. Thankfully. Yeah. and Mason, our city inspector, was out there one day, last week. And I know our new city our city inspector is fairly new, so he's well, it was fixed that day. He's coming into it, but yeah.

Um, I mean, it's I'll I'll speak with It is a muddy mess. When it rained, it's pure mud. Yeah. And I understand the way they've designed the project is to complete it in a faster manner by closing down and and doing it, but you still still got to be safe for traffic cuz there's no way two cars can easily Yeah. I can look back at the traffic control plan. Yeah. And and make sure and I can try and go out there and take a look and make sure that they're doing it the way they're supposed to. All right. I think they are the residents, the people coming through are coming from the other and and

what's the completion date on that? I forgot. Um, it was later this year, I think. Maybe November. Oh my gosh. I can double check though. I have it on my calendar. The sign says September. September. Okay. Okay. Hopefully, it's sooner than later. Thank you. Yes. All right, council. We have a motion to move forward. I make a motion to accept the Kimley Horn report. I have a second. I'll second.

Voting sign sent, please. Habit of all. All in favor. Next item is the um Dunaway 4.3 monthly report.

Yes. Good evening, Mayor Council. Jacob with Dunaway. So on the status of development review, we've got movement Morgan Farms, their final plat will be on the agenda a little bit later today. So we'll discuss that one. Kind of a new one that's recently added is the FM177 retail center. Uh we just finished a first plan and plat review. Uh provided feedbacks to their developer and their engineer. Oh, maybe two weeks ago, give or take. Um, for those of you that don't know, this one is actually a lot included in Magnolia Mud. Um, it's south of town on the east side of 1777. Um, for most of the mud districts, they left retail strips kind of parcled out along highway frontage. And so, this is kind of the first one that's been able to pop up and get some traction on it. It's proposed to be um a 10,500 foot kind of retail center with restaurant as well.

Did they say what else they want to put in there? Not to my knowledge. Not on the plans. Did they say anything to you, Miguel? This is just your generic uh commercial space. They don't have a list of tenants yet. Um, we've had some people call looking for space. I've directed them to the developers who have potential projects on the table, but they don't have that yet. They don't have a list of tenants finalized, but they're looking at at least one restaurant site. One will have a drive-thru window and a patio, and then the rest are kind of just spec space based on their tenants. They're going to make modifications to the interior of the Shell building.

Thank you. So, is this mud pro? I mean, it's mud property. Is it mud owned? No. Okay. It's privately owned by a developer. Okay. Um, it is in the mud. We still have jurisdiction over the site plan because it's in the ETJ. Okay.

Um, the developer had actually wanted to annex, but because it's in the mud, we can't. So, it's it's we're going to get a portion of the sales tax though through the municipal development district, but it cannot be annexed into the city. All right. Um status moving forward on various engineering design projects. Um kind of one of the the bigger ones that you discussed earlier was the actual um the violation notice from TCQ. We've submitted what they call the SCP to them. We've had conversations with them about our inclusion of funds that are being geared towards the actual building of the new plant that's been favorably received. They just want to have a few things from us to document it correctly. So, we're working through all of that. And um the ideal scenario is that you're showing um over and above what you're paying for those treatment plants that this fee would essentially be waved as part of that. And so we're just working through to make sure everybody's on the same page that document gets correctly um detailed out for them. The um kind of another update on the North Texas the meter vault improvements. We uh the contractor was supposed to reach substantial completion actually last Friday and he uh he reached out last week and kind of gave a detailed breakdown. um he has not met that threshold just yet and so he's estimating there's about 30 more days remaining to complete everything. Um a lot of this is more in relation to electrical power from the utility provider over there coordinating with North Texas to make sure they're in agreement with everything and then um working with the city's SCADA provider track control to get startup

correctly initiated. So, we're looking about 30 more days to ideally get that wrapped up. It won't be any impact to your current water or anything like that. Those improvements have already been made. So, mostly just kind of finishing everything off to the side from it. So, the water won't have to be shut off to anybody's house. It should not be shut off again or anything like that.

Thank you. Then kind of one of the other big ones from the workshop meeting was the um the 12-in sewer line and those roadway repairs. So I have a few numbers that we were able to track down for you guys. The the sewer line is already completed and installed, but one of the items that came up was kind of existing costs that were allocated to that roadway repair. So, per the existing contract with Horton Excavating, they had a line item for roadway repair at $340,000. Um, to date, they've been paid about $94,000 to get the road to where it is today, which is drivable condition essentially. And so, what we've been doing, because I kind of mentioned previously that they're not really a roadway repair contractor and they've voiced as such to us. And so we've actually been reaching out and talking to other ones that have done local work for you guys. Um we um we we have a little bit better number now. Again, this this project, if y'all chose to do so, would be open back for public bidding, but other local contractors in that exhibit that I provided last time, they've came back with about a $300,000 quote to repair it to those standards that we talked about. And um we'd be looking to we're still working with Horton Excavating for kind of a final change order deduction from their contract. We're estimating it's in about the $250,000 mark. Um so significantly better than what I presented previously. Um potentially some additional city involvement in the in the ballpark of about 50 to $60,000. And there was a little bit of money um my understanding that was provided by the school district uh for kind of those overages way over by Kado Street

$30,000. So and that that portion is included in this scope of work that we kind of have. So what you're saying is we have the money already to cover the project of the you have just about 80% of it 90% of it with the the uh with the Horton construction or whatever the buyback in the contract is going to cover the other 20. Correct. Then you guys would have to put up like an extra 20,000. Yeah. On top of that. Yeah. Okay.

So um and again they've they've been favorable for for having that done. um they would probably like to go ahead and kind of wrap up the contract with the sewer line, get another contractor in there that's more favorable for roadway repairs. And so with what we're seeing, it's a lot more favorable uh for the city and it it expands a little bit beyond. And so it'll be from and some of it is too uh we would have had it we wouldn't have needed the other 20 if the contractor wouldn't have ground up more than they were supposed to. And they're going to get back a little bit on that too, but you're correct. Yep. So, we're speaking on the terms of where I thought we should have been in the beginning.

So, we are right there at, you know, threshold of breaking even on the contract that we originally started with. Yes, sir. And not the shock and all of, oh, council, you need $400,000. That is correct. Okay. And those those I had long meetings with staff council just so we discussed this over the week and the weekend. So,

and those those values that you guys were receiving were kind of the some numbers provided by that contractor of I'm going to have to get a sub person to come in and do it. So, there's going to be overhead associated with it. I have to warranty extra work performed by this sub. So, there was some additional cost. And so I think for efficiency and obviously protecting your your investment, it's probably safer to kind of

So moving forward on this project, what are we going to have to do far as councilwise? Like um this is going to have to go out to bid, right? So um this has already been delay like I want this to move. So this is going to have to go out for bid. We're going to need what do we need as far as council? This was already in the original contract, correct? Only thing we're going to need is an extra allocation if we need more money for council to approve. Correct. Yes. So, Jacob's office would prepare any kind of bid documents that we would need. Um, and that would come before you. It'd come back to you guys again with a secure number for just those roadway improvements.

And how soon are we going to have that? Do you know? We can begin advertising within the next week or two. Okay.

Yeah. Not not very long at all. All right. So, we'll get moving immediately on that for ease uh time and whatnot. And then the the last item that I had to kind of give an update on, one of the other items we talked about at length at the workshop meeting was um my last bullet point, which is the one and a half million ground storage tank. So, I've been kind of talking to Kirk. I don't quite have things I'm ready to present to you guys. Um, I know there was a few scenarios that I presented and some other pivots that council expressed some interest in and so we're fine-tuning some of those details of what those changes and whatnot would look like. I'd like to kind of get in front of Kirk and Garrett and the rest of the city staff, show them what we've come up with, and then it'll come back to you guys for more input and probably some final effort to move it forward again.

Yeah, we're not ready. want to meet with staff again and we'll discuss this too and then probably meet with you and Yeah. Yeah. We can bring it back to have us sit down and talk about it. Okay, council. Any questions for Okay. All right. Thank you. Thank you. All right. I'll make a motion to accept the Dunaway report. I'll second. We have a second. Voting signs, please.

All right. Next item, 4.4. This is a presentation of the fiscal year end 2025 comprehensive annual financial report from Frank Conroe CPA representing Fox Bard and Company. Good evening, council mayor. Uh for those of you who haven't met me, my name is Frank Conroy. I'm a CPA and shareholder with Foxburgen Company. Uh we were engaged to perform the audit for the fiscal year ending September 30, 2025. Um we have completed that audit and delivered that report along with the governance letter that's required by auditing standards. Um, the governance letter also has attached to it a copy of the representation letter signed by management as well as a report that summarizes all the journal entries that were developed during the course of the audit. Um, I'm sorry. Okay. Is that better?

Little bit. Maybe a little.

Sorry about that. Uh in the governance letter, we report to you some various items that are required by standards. For example, we remind you that we performed the procedures um as laid out in the engagement letter that was dated September um 23rd of 2025 and signed by management accepting the engagement. Um we report to you that we performed the audit and maintained independence consistent with auditing standards and by that that's all members of the firm involved in the engagement as well as the individuals the firm and the individuals involved in that. Um we consider the accounting policies that are embedded in your financial statements. We consider significant accounting estimates that are embedded in your financial statements. Um, for example, um, there are multiple estimates in there that I've told some of you in the past. Depreciation is an estimate. Uncollectible receivable is an is an estimate. Uh, unpaid compensated absences is an estimate. Your pens and liability is an estimate. Um, so there's quite a few estimates embedded in the financial statements. um we consider what we believe to be the most significant and as has been consistent for the years I've been coming here, I generally conclude that the pension estimate is probably the most significant mostly because of the complexity involved in determining what that potential pension asset or liability is. Um there's disclosures in the notes to the financial statement that recap a lot of the facts relative to the pension as well as the impact of a assumed 1% increase or decrease in the rate of return that's earned by the pension. Uh I'll touch on that in a little bit more detail when I get into the notes of the financial statements. I'm happy to report that we did not have any

disagreements with management during the course of the audit. Um, I'm also happy to report that as far as we know, there were no significant consultant consultations with other accountings uh accountants or accounting firms relative to the application of finan accounting standards in your financial statements. Um, that's commonly referred to as as potentially opinion shopping if there was something in in the standards that is complex enough that it could be applied in different ways. and we we didn't necessarily agree, but another firm might agree with how you're doing it. But again, I'm happy to say that as far as we know, that's not going on. Um, having said that, let me switch to the financial statements themselves. They're approximately 70ome pages. They're made up of the management discussion and analysis, which essentially belongs to the city. That's the city's and staff's opportunity to um present information to the users of the financial statement, generally the community on what's going on in the city, the the overall condition in the financials of financial condition of the city. Um expectation of what coming up in the future. For example, if there's significant growth expected, um, significant capital improvements in progress, significant new debt issues, etc. Um, as well as comparative financials that um, present current year and the prior year on a comparative basis. They're not required by um generally accepted accounting principles to be a part of the basic financial statements, but you're certainly welcome to include that in the uh management discussion analysis for additional um understanding of what's embedded in the financials. The next

section is the opinion itself. I'm happy to say that we issued what we call a clean or unmodified opinion. Essentially what that means is in layman's terms we're saying that the users of financial statements can rely on them to be free of material misstatement. Emphasis on the term material being that it's we're not making the assertion that there are no mistakes or errors or misstatements in the financial statements. What we are saying is if there are any they would be insignificant enough that they would not influence the user's conclusions on the financial position or or result of operations. Um after the opinion comes the required supplementary information the MDNA. After the MDNA is the basic financial statements which are the ones that are required by generally accepted accounting standards for governments. There is a statement of net position and a statement of activities which is a kind of a combination of the entire city the the governmental funds and the proprietary funds debt service fund etc. And then um there's a reconciliation between that presentation and the governmental presentation which is essentially a balance sheet of the governmental funds. A statement in that position for the proprietary funds, a statement of revenues, expend expenditures and other financing sources and uses for governmental funds and a profit and loss statement for the proprietary fund with a cash flow statement that supports the proprietary fund statement. The governmental funds presentation is significantly different than what you would normally see in a in a um commercial operations financial statements where you have a balance sheet and income statement, cash flow statement. Um governmental funds are

focused on sources of funds and uses of funds. One of the best examples to illustrate the distinction there is when you issue debt from a governmental fund, you collect x number of dollars when you issue the debt. That's a financing uh resource in generally accepted accounting principles for commercial operation that would not be revenues. So it would be an increase in liabilities not an increase in resources. Um I mentioned earlier the disclosure relative to the pension liability and on page back.

Page 40 of the report is where it summarizes the impact of the potential change in the returns on investment for the pension. You have a pension liability of approximately 62,000 as of September 30, 2025. That's on the assumption that the assets invested in the pension are going to return approximately 6.75%. If you assume that that were to drop by 1 percentage point, your liability would increase to about 393,000. Conversely, if you were to do 1% better than that 6.75%, you would swing to having a pension asset of a little better than $29,000. So you can see the impact of of a 1% swing on the returns on investment inside the pension which kind of supports what I was s saying earlier that um it's my conclusion that that's probably one of the most significant if not the most significant estimate embedded in your financial statements. Having said that, um there's a couple other supplemental schedules that are included in the report at the end. The last two pages of the report, they summarize the net taxable valuation for the city for the past 10 years as well as the uh property tax rate for the past 10 years. You can see that the valuation increased from 2024 to 2025 by a little better than a million dollars. I'm sorry, $51 million. I thought that was a dollar sign. Um the result of which um at the same you're you set your property tax rate at the same rate for 2024 as you did in 2025. Um but because of the increased in assessed value, you're going to have an

estimate of um additional revenue. Where'd that go? approximately 239,000. Um, which based on an estimated population of 3,300 works out to be um about $72 per person in additional property taxes that would be assessed. Um, that pretty much concludes my summation of the report. Um, I know you've had an opportunity to look at it to some degree. I don't know if you had an opportunity to digest it to your fullest content, but I will give you the opportunity to ask questions now as well as um convey that we're always open to questions whenever. You're welcome to reach out to us at any time during the year once you've got an opportunity to digest the financials. If something looks curious to you or you just like further elaboration on what it means,

anybody got any questions for him? I don't I'm good. Yeah, I do want to uh congratulate the city on this because Senate Bill 1851 um was recently enacted because there were problems with financial audits around the state and we've got 20 days to spare before we had the clock. We were well aware of that. So, congratulations deadline and and and I have to give kudos to the staff, especially Melissa and and Lisa and and Patty and and the assistance that they provide to us so we're able to complete the audit timely. And

I don't know since I've been on the council we've ever missed the deadline. But I will say I I have been on the council with this tax rate that has went down under my regime. So, I take pride in managing a budget and not just raising taxes. So, well, the the city has benefited from significant growth that I've been coming out here. So, use that to your benefit and not raise taxes has been I'm sure the citizens appreciate that. Yeah, I know I do. We want to thank you. Okay.

I don't guess anybody else have any questions. I need a motion. I guess we need a motion. Okay. Um, I move that we accept the fiscal year end 2025 comprehensive annual financial report from Frank Conroy, CPA. I'll second. All right. Will you send the votes, please?

Thank you. Okay, one more time. Thank you all for the opportunity to serve the city. We look forward to seeing you next year. Thank you. Okay, next item is 4.6. This is going to be uh Miguel's report for the city planner. I see your name a lot on here. So, I'm sorry. I see your name a lot on the agenda. So, yeah, I should probably just stay up here. Straight and to the point.

Yeah. Um, honorable mayor, members of the city council, Miguel Inclan, for the record. U just got my monthly report for your consideration. Um, not a lot of movement in uh, February, I think, compared to other months, but still pretty busy. Um, you have any questions on any of the items listed, I'll be more than happy to to respond. Go ahead, council. I have one quick tiny question regarding the um, UTA team. Which developers are they reaching out to?

Uh, so far, Mr. Pototts who is a land owner in most of the downtown. Um I uh I don't think they've gotten a chance to talk to anybody else but Mr. Pots responded and and is collaborating with them just giving them some feedback and and uh vice versa. Okay. On his properties. Okay. Thank you. And regarding the outer loop um your comment best possible outcome um regarding the 637. Thank you for that. And is there any other comment regarding your discussion with them that you can share with us tonight?

Not really. I mean, we we recognize that this is a county owned and led project and they've been really gracious to give us, you know, the the the concept changes that we have asked, you know, continuously since, you know, the alignment uh issue back in about a year ago, right? So, um it's extraordinary collaboration and cooperation from the county. Unfortunately, in some other areas, they're like, "Well, we do what we want, right?" So, they just do whatever they want. They've been great partners with us, and we recognize that this solution isn't perfect and doesn't solve every single, you know, concern, but the main one both from the council in the conversations we've had and the staff is preserving the east to west connection. So, I I believe this is the very best we're going to we're going to get and we're happy with that outcome.

Thank you. Mhm. I have a quick question on this new speed study. Yes. Which other like will the police department be we're coordinating that? We don't have the timing for that project yet. We we're waiting on um you know passing spring break and we'll reach out to text and get that scheduled. What about the red light? Do you know anything? Is there any update? Nobody the traffic signal. No update at the FM6. I do know the work on FM 1777 is going to get started soon. So, please be prepared for those nightmares. Unfortunately, it already started. Oh, it started today. Okay. I drove by and I could tell they were getting ready. They must have started this afternoon. Okay. Construction.

That's it. Anybody else? Okay. All right. Do we have a motion to move forward? I'll make a motion to accept the planning report. Second. We have a second. Can you send the voting signs or the voting, please? Wonder why it's not showing up on mine. It does really delay. It's weird.

I don't know. It's It's working fast. So,

okay. See 4.7. This is the discuss considering act to approve a resolution adopting an initial legislative agenda for the interterm period following the Texas legislators 89th regular session and in preparation for the 90th legislation session authorizing limited representation and policy advocacy activities consistent with adopted legislative agenda.

Yes, mayor and council. This came out of conversation from our work session. Um this is worded very broadly but it is an initial legislative agenda. I do expect it will change as committee hearings and things progress uh towards the next session. Uh but we are in between the 89th session which concluded and the 90th which will not start until next January. A lot happens during the interim period. Uh there are charges for various committees. Um there will be assignments made and we do expect that um in the coming months uh there will be lots of discussion especially about development and other things that will affect local government. So the items on here are very broadly worded and the intent is that it will allow uh any council members uh or myself uh or representative to um advocate in a on a limited basis on the city's behalf. Um and I listed about five things here but they are all related to maintaining local government control especially uh regarding development. So uh there's municipal authority and local governments. Uh that would be preservation of municipal decision-m regarding land use and regulations. uh infrastructure planning and development coordination allowing us to um uh have policies, adopt policies, promote policies that help coordinate and uh relieve um financial burden on uh city uh residents and taxpayers and so that development essentially pays for itself. Um it is uh also regarding special districts and coordination um concerning m municipal utility districts or sometimes they're called other districts uh water types of water districts but they're all kind of similar. Um and this would be that you know we're we we do recognize that there need to be some changes with the mud laws. Um and that is also about

preserving our uh local government control here. So controlling development versus having development control a city. And then also just being um fiscally um sustainable and having revenue stability. And then just being aware of the pre-emption and mandates that sometimes come down from the legislators uh in affect our city in a way that either we were unexpecting uh or that impose operational service or regulatory requirements that create burdens. So this is about just maintaining awareness and that if we see something that's going to affect us uh just some of us it may come upite quite quickly quite quickly uh it would allow any of you or myself to uh advocate on the city's behalf uh regarding that and we'll tighten those up as time passes. So um as bills are talked about, introduced or things come out of these interim sessions, we'll bring things back to you. So, if there's a specific piece of legislation that um I think is worth speaking on or um reaching out a little bit further, we'll bring that back to you as we have them. But this is just very broadly worded and it is just meant to be an initial legislative agenda and we can certainly add to it, tighten it up as time passes.

Council question or discussion. I appreciate the presentation that came before us and the um the efforts at hand uh because there's so many bills. Um, however, I thought it was kind of vague and at one point there was not a big opportunity to change a lot. But majorly, I feel the Texas Municipal League can do it. And Texas Municipal League um, even on their website talks about working with officials to develop, analyze, and prioritize legislative goals, direct advocacy, bill drafting, bill sponsorship, supporting and opposition of bills. We can use them already. Yes, ma'am. Um, and we hope that too. Um, there are so many bills that TML has told us that they primarily uh end up um trying to f fight the bad bills, the ones that hurt us, and they don't necessarily have a lot of time to promote the things that we would like to see changed. So, we did kind of push that the last session. Um and we did have a resolution that we put before TML to try to uh get them to support support some changes especially as um pertains to mud laws. This would just allow us to communicate with other stakeholders regarding MUDS, whether that's cities, counties. Um we're hoping to actually gain some developer support, other cities. Um just coordinating events so that we can come hopefully as a united front and talk to our various representatives throughout the state and hopefully get a little bit more attention and hopefully some meaningful change this next session. um to again to protect your taxpayers inside city limits and to being able to control uh development as much as possible rather than having it uh control us. So I don't expect that there will be any cost here. There's none intended. Um there's no

dues or there's uh nothing at this point that would indicate that this is going to cost you anything other than perhaps some staff time or any time that you would like if you want to attend a um a committee hearing or a meeting which I expect those would be fairly local most of the time unless there's an Austin hearing or something like that. Um I think I worded in here that any other costs would have to come to you for authorization. My personal thought is to just delay a little bit longer until we find out if there's going to be a law firm associated with this group that is more aligned with the city's wishes than their previous clients. I'll word it that way. So, um, okay. So the um the only time I think that we've talked about um a attorney um for mud attorneys was just to kind of get their opinion on things. So sometimes we can we don't want to be surprised if we get all the way to a hearing um or have our legislators kind of surprised by one of their opinions, their attorney opinions. So if an attorney is involved and it's a mud attorney, it would be to get their concerns up front so that we have, you know, a means of talking about that and opening that conversation before we get all the way to when a bill is presented. So it they wouldn't be uh representing the mud necessarily um in a way that's against the city. It would just it's meant to be stakeholder feedback is what it is. But I understand your point.

Thank you. Is he the one that's going to be talking when he goes for the legislation? I think anyone he he seems to talk a lot around stuff and he doesn't really say a whole lot of like get to the point like let's fix the problem. He just talked around it for a very very long time. So like I don't think anybody in legislation is going to actually like stay with the story. they're going to wander off in their head because it was very hard.

It's very broad at the moment. I think he's at this point he's just trying to get a few cities on board. So, we've got a starting place. I expect it will tighten up. Um and I imagine that there will be multiple people. He he's trying to have a board. So, um anyone who's interested in serving on that board, I'm sure he'd be happy to uh talk to any of you about that. He'd love to have some kind of representation from cities, but I think at this point it's just trying to get started and yeah, I think he's just trying to explain the broad to the council. Whenever you go down to legislation, you only have a certain amount of time you got to you got to go right to the point. So, I've seen him deliberate. These are just early discussions and getting started.

He's a wealth of knowledge. That guy's that guy's pretty He's very knowledgeable in it. He's and he's doing it all for out of his pocket. So, but that's a council decision. I mean, regardless, I would rather delay until we get our other two council members. I'm fine with that. Table it till the next meeting. I appreciate it. Thank you.

So, we'll table this item to the next meeting. Okay. All right. 4.8. This is a discussion and consider and act approval of the final plat of the Morgan Farm subdivision phase 1 consisting of 211 residential lots in six common areas on 43.246 acres located east of County Road 642 north of Hubard Road.

Mayor, members of the city council, Miguel Inklan for the record. Uh this is the final plat for Morgan Farms phase one that couldn't be acted on in January due to the pending ement abandonment and the completion of the infrastructure improvements. Both of those items were addressed last month. The planning and zoning commission voted to approve the final plat and forward it to you all at a special meeting a week ago. Um the city engineer um Dunaway is here to um answer any questions you may have but they provide uh or they they offer a recommendation of approval and so do I

questions council. Um, yeah, I do. I have just a couple. Um, regarding the plat that's on page one, L29 says it's 7 ft and I'm seeing 50 ft and I don't know where the 7 ft is coming from. Um, also one of the uh lots says it's 003 acres, which is lot number one. And I don't know why the lot number one can't be added to lot number two unless there's a bunch of infrastructure utilities or something that I don't know about.

You're looking at line 29. Um no no um it's lot it says L29 which maybe it's the third attachment. Let me go back there. The first attachment with a photo. I have no question. Second attachment lists the lots but a little bit differently. And I think it was the third. Let me try to open that one. 4.8, right? Yeah. Yes. Okay. So maybe it's the next one now.

So So the first tables on page one. Yeah. Um Jar, can you scroll down on that page? So the the the the one that says just L's, those are lines. That's the surveyor references. And then the following page is the lot, the actual lot count with the the it and you said there's a discrepancy. Yeah, let me um I was looking at 4.8 and 4.9. So maybe it maybe I'm messing up and it's 4.9. Nope, that's not it. Where did I see it? Okay. Did you say it was AL? It said L plat page one L29 listed 7 feet not 50 ft.

Oh, those are those are lines like for surveyors when the line the lines are too small to actually put the actual length. Okay, those are for reference table. Those aren't the lot widths that Yeah. the the following page has the actual U lot table. So lot number one teeny weeny little teeny weeny little less than pencil thin says 003 acres and I didn't know those are those are like the landscape buffers and open spaces those are owned and maintained by the HOA so they're very just little strips and they're they have to be uh categorized as X lots these right here yeah the teeny no

where you at lot number one next to lot number two. Super skinny right here. The 1X right there. Yeah. See, and it wasn't added to lot one. It was separate. And then there was another one that said it was 12 ft. Yes. Those are those are the XL houses. That is the landscape. All right. All right. Thank you. That that's all I have. So, thank you. That'll be Bobby. Uh cuz I want the lots as big as possible. HOA. Yeah. So, so anytime you see an X, that's like an open space or U HOA owned and maintained. Sorry to slow you down. Just No, no worries. Trying to learn. Okay, that's all I have. Anyone else?

All right. Make a motion to accept the final plant of Morgan Farms. I have a second.

I'll second. They uh send the votes, please. All right. Item 4.9. This is consideration and possible action of an interlocal contract between the city of Josephine and the University of Texas at Dallas for the development application fee schedule study in an amount not to exceed 2500. Mayor, members of the city council, um this is the item related to the uh student fee uh schedule project that is currently ongoing. Uh we discussed this back in the fall. Um so the students are working on the research. Once that research is completed, the professor under this agreement would take all of that data, refine it, and present the recommend recommended fee schedule for planning and development applications only. Um the city attorney has reviewed the the interlocal contract and had no no comment.

Council questions discussion no question. We said no or yes we entertain a motion. I move that we accept the interlocal contract with UTD and the city of Josephine to determine a fee schedule to proceed with a fee schedule project. I'll second.

We have a second. Send the voting, please. Sorry again.

All right. 4.1 11 discuss discussion on a proposed residential development in the city's extra territorial jurisdiction and direct staff to I skipped one. Did I skip one? Yes. Okay. 4.10. Discuss. 4.10. Discussion with possible action on a proposed nocost policy lab study project by the school of economic, political, and policy sciences at the University of Texas at Dallas.

Honorable mayor, members of the council, u once again, Miguel Linklan for the record. Um Dr. Love who is our member of our planning and zoning commission and a Josephine resident is spearheading this project at the University of Texas at Dallas and has offered uh this project for the city of Josephine for a project of the council's choosing. So um this had been uh preliminarily discussed a few months ago and um in my time here I've I've noticed that you know mud development and the relationship with cities has been strained and uh kind of piggybacking on uh the state legislative agenda about you know enhancements to muds. We believe that a project related to researching the impacts of m development on the city's uh policies could help support and produce research that can support the city's legislative agenda if we decide to present that at the state level whether it's through TML or through the initiative that have been presented earlier. But we believe that this is a a great project to have a neutral party, do academic research that will um show the state the impacts of both good and bad of of mud development in the hopes that they this can improve how muds and and other special districts develop in the state, not just here in Josephine. And Dr. Love is here to answer questions. And again, that was just one idea. there are there could be other problems that you know policy discussions or research that you would like to engage that group to do. Um Dr. Love is here to introduce a little bit more about the project and and answer any questions you may have.

I mean it's a no cost, there's no commitment. I mean how can you go wrong?

Yeah. It's not often that somebody comes offering the city something for free. And here I am. My name's uh Tony Love. I am a professor and the head of the criminology and criminal justice program at the University of Texas at Dallas, which is part of the school of economic, political, and policy sciences. I'm also a commissioner on the planning zoning committee here in Josephine, and I live in Fountain View neighborhood right over here. Uh so, uh the summer schedule's coming up. Uh we have a an army of PhD students who are looking for summer credits. And one of the best ways to do that in in the school of economic, political and policy sciences is to have a summer policy lab in which uh PhD students bring their expertise uh to the classroom and we work on a hands-on project to uh produce real world solutions for cities and other nonprofit organizations. And since I live here in in Josephine, I thought it might be a good idea to extend this opportunity to the city of Josephine. Uh like I said before, I discussed uh we talked about uh projects that might have to do uh with cities and muds and their relationships and looking up uh you know doing some research about uh what's going on elsewhere in the state as well as what our uh stakeholders here in Josephine might uh have in mind as well as how that might affect the city. But honestly, I'm open to any project that the city might want to charge us with finding answers for uh because I'm going to be doing it anyway. So, it would be better if the, you know, we got something out of it as a city. Uh, I don't make any money off of this. I don't get paid to teach in the summer. This is, uh, for hands-on, um, experience for our PhD students who either want to go into city and city planning or, uh, into academia themselves. So, I guess all I'm proposing is, uh, do you want to ask some questions that we can answer for you for free?

Um, yeah, sounds great. Love to love the opportunity. Um, and Lisa, let me pingpong to you first and then maybe an idea can lead to another idea. Um, previously during the early during the year, we worked on creating an industrial zone which was not well defined how we want to proceed with that to kind of I get maybe use the word insulate us against additional muds in the areas that have not been developed yet. Right. Yes. to prevent additional MUDs and um to prevent um people from petitioning out of the ETJ. Okay, perfect.

Those are the two.

So, with that in mind, do you feel that there might be an opportunity to try to figure out a development plan for the industrial zone? How big or how little? I'm just saying because you took the time to explain it to us. you got the legislation for us to look at. I don't want to miss an opportunity. Um I don't know how it's going to fit in the ETJ in the ESD, Emergency Service District, too. So, I don't know if there might be something related to that. Um just a thought. Um the mud idea. Yeah, the mud is a beast. The the muds are a beast um in many different ways, but you have time during the summer for one project pretty much, right?

Yes. Yes. And the way the way the way it would work is uh I don't need to know now, but at least in a couple of weeks I would need to know so I could put it on the schedule uh the schedule for classes. But generally the way it works is the city gets together and produces a charge, excuse me, a charge for the class with questions that you would like to see addressed and some some guidance about the way you'd like it to be addressed and then we complete that in the summer summer months and supply that report to city. My initial thought was, is there something we could do to advance the work that you already laid the foundation on for the industrial zone? Or is there also an opportunity to not dictate what the MDD will do, but maybe have prioritize some ideas that are facing the MDD, the municipal development district, as to what might go first.

And I'm looking for your feedback on that.

I appreciate that. Um, as far as the industrial district, uh, it, like I said, its whole purpose was to prevent people from petitioning out of the ETJ because there's a little loophole that actually is on the city side for a change rather than the developer side that uh allows us to um um it prevents ETJ um removal by petition. So, that's that. As far as like how we labeled it all, we just decided uh that housing is an industry and it's throughout our ETJ. Uh there also some agricultural is is also an industry. Agriculture is an industry. So it's kind of the two of them. They were either housing or agriculture. U most of it was future housing identified. Um large tracks of land that seemed more potential for that or if they were um heavily agricultural, I think we left it as that. But there's not really anything left to do as far as that. is just other than maybe just keep an eye on it. So, uh I think probably as far as what we would get the most out of it would definitely be looking at the municipal utility and special districts. I know there's been um I I'm happy to share with you what I have too and I'm sure you have your own as well, but I've got a little library I've been creating. So, as I see articles, I pull them. Most of the articles I've seen that have been scholarly have actually been in favor of municipal utility districts and have kind of gone on that side of they support affordable housing efforts. Um, but I'm happy to share with you anything I have and anything your students can come up with um I'm thrilled to look at. anything that would support us as far as um finding some ways to convey to the state that um there are positives and negatives, but for cities that it there are some places they can really hurt us.

Okay. Okay. Now, I've got the Mount Fuji icing on the cake question. Um because an idea just made me think of another idea. I personally believe this is me of an N equals one that we are deeply in need of a market analysis to get a grocery store here. Every citizen has talked about that. Is there an opportunity for your PhD group to come up with a market analysis if the group agrees that would be um that has the components that grocery stores are looking for? demographics, spending categories, how far they want to travel. Our closest grocery stores, as you know, are 11 to 13 miles away at the minimum. And there's no, you know, we're in a food desert pretty much except for Dollar General. So I'm asking um to me that rises above what I just asked about I as a number one priority that every voter I have talked about people who have come to the planning people who gave us ideas and surveys in my opinion the pretty much unanimous consensus is we want a grocery store doesn't matter you know how little how big whatever um we need a market analysis a true market analysis like the big boys do to get one here. Does anybody disagree with that?

I think Mel's Miguel's got his hand up.

I hear what you're saying and and I think the the based on what you initially mentioned about developing the industrial district and the MDD. I also had discussed with Dr. love that this could also be an opportunity to develop an economic development policy for the MDD and the city to follow in addition to obtaining the data that you need to advance that strategy. So if this strategy is okay grocery and retail then their group could give us like you mentioned the market analysis and the data that the city needs to attract those. Um but but I think the like you mentioned there are going to be challenges with the MDD coming. We hope that this could be something that the group could address, but I would support that market analysis and the demographic

too. And I don't think we're that far off. We have some data in the comprehensive plan. We have some data from websites that are already out there.

It's pretty much assimilating it and make it look beautiful and then distribute it to corporate headquarters wherever why they should come here. And we also know that you know other towns near us are having things. But, you know, to me, one thing to put in there is we got bies down the road. The real giant bies. And when people hear bies, that's an economic draw right there to make them think twice. And the population we have between cattle mills and Leavon is way over 70,000. We have the population and young demographics and spendable people who have spending money. Um, people, you know, are hurting with a lot of their fees and taxes. Sure.

But they need to eat. And I'm hoping that that you know everything from diapers to soap and food there might be an opportunity there. Sure. I my response would be I agree with you. Number one. Okay. Number two, uh what I can promise is if if you ask a question that we're not properly trained to answer, I'll let you know that that we can't answer it and we'll answer it truthfully and as a third party neutral objective party. But and but this I don't this isn't going on the 5:00 news. So if I give you something that's contrary to what you think's best for the city,

you don't have to abide by it or go that direction or anything like that. It would just be an objective answer to your question based on the existing data and the analysis that we provide uh statistically. Yeah. So I think council's all in agreeance want to do move forward with doing this. Yeah. The real cost would might be some time uh time from time which you don't have but uh that can that's quite expensive but that's the only cost. But do we agree? Okay. So you need a project in the next few weeks. Does city council want to move ahead and the city council agree with a certain project

and how's this going to affect our staff? I guess that's my main question. Just be answering questions would be normal. Um I think if we had input, we can just tell Miguel and then um move forward that way. And it can be evol evolving. You know, we we can meet during the summer and say, "Oh, here's what we found about this. Do you have a followup?" You know, it can be, you know, collaborative. I think we got a good basis, though. A couple of different items that were spoken up here tonight. doesn't have to be direct just you know

I move that we move forward with an uh policy lab study project during the summer with the school of economic political and policy sciences at the University of Texas at Dallas. I would like to add that I part of the motion is to have a market analysis be the project for groceries. I second. Uh can you send the voting signs please?

Thank you.

Appreciate it. Go to the bathroom. All right. Now, item 4.11. This is discuss discussion on a proposed residential development in the city's extra territorial jurisdiction and direct staff to pursue a development agreement with contemplated voluntary annexation. Mayor, members of city council, um we typically get general inquiries from developers in in our area, you know, particular within the ETJ saying, "Hey, I'm looking at developing what are your water, sewer availability, things like that." uh few months ago uh u Jim Dwey who's the engineer representing a development group approached us uh scheduled a conversation and uh presented an initial concept of uh for a development here in this area. uh at the time uh you know the conversations turned into you know water sewer availability and naturally those discussions on the city's part where you know would you be interested in annexing into the city right because this is in the ETJ um as I've mentioned uh many times our our comp plan uh one of the strategies that that it mandated or asked for staff to pursue is in the city is to seek these volunteer annexations to help uh increase the boundaries of the city and have somewhat more control over how the land in the ETJ develops because then it becomes part of the city similar to Morgan Farms and Morningside as was done through a you know as you have been discussing lately. Uh obviously that uh

always brings a lot of questions because you know developers in the ETJ have no zoning you know restrictions so they can practically land use there is no land use restrictions um when they want to come into the city of course there's questions about I am I going to be able to get the density that I want you know and then the city starts making asks such as you know open space um considerations um road design uh you know the the subdivision design and and things like that. So um I'm going to share with you the first concept that was presented to us. And before I continue, uh, workshops of this nature are just informal discussions to gain early feedback from the city council and provide early direction to staff. This is not a zoning or plat development application. So you you cannot indicate, you know, there's nothing to vote on here. um there is no request to uh you know regarding the specific concept that you're looking at right so it's just to gain your e feedback you can show your concerns express your concerns um ask questions from the developers representative who's here um so um over time you know we discussed that um the product here had very little open space right is practically none. The density calculations that were shown were relatively in keeping with the

future land use plan um in terms of the the net density. Um however, as I've mentioned before, you know, when you ask for additional open space beyond what's required, then the question becomes a trade-off, right? A potential trade-off of additional density in exchange for open space. So um if if if you if I miss a step or you want to add context, you're more than happy to approach. But uh as a result of those conversations, we had a different concept and obviously we this is a work in progress as well. But it shows you how sometimes these discussions evolve. As you can see, the density increased by 100 lots. The the net lots count increased by about 100 from about 685 to 700, but your open space significantly increased. Now again, these are just pretty

got to make it profitable, huh? They look at it as making it profitable. That's give and take.

I mean, it is it is it becomes a give and take. And um and really what we're here to ask tonight is your direction. Uh you know, the the developer wants to pursue a development agreement. Um obviously the question becomes what what density would the city council be comfortable bringing forward? Um again with the understanding that uh our current regulations require just 5% of the land area for open space regardless of the lot count. So uh if this develops under our current subdivision regulations the open space will be very limited and really what you see in the initial concept plan regardless of count. Whereas in the second concept, you know, you do get additional density in and a mix of housing uh products, but you do get additional usable open space. Uh, one of those questions is if we pursue the increased open space regardless of density, um, in support of the parks and trails plan that was just approved, uh, is the council's vision to have, uh, HOA owned and maintained open spaces accessible to the public, but that they do not become the city's liability and or, you know, maintenance liability and uh, I mean really just understanding that this is um this development is going to bring property tax revenue if annexed into the city limits.

Yeah. Any questions of me so far? If you like to ask the developer questions. So what what if not annexed into the city? What happens? What's your Well, the developer has the right to to, you know, submit plat applications and develop as is. We have very limited, you know, zoning jurisdiction or nearly no zoning jurisdiction in the ETJ. So, we have very limited things that we can get out of their design team and and this would still happen. I know the answers. I just want to hear somebody else say it.

But the county does not like these little small lots either or their roads. Don't get mistaken, the county likes tax dollars. I mean, they're going to the county I guess Colin County does. Hunt County does the I mean, truthfully, you know, if a plat application meets all development standards by law, the governing body subject to the plat's jurisdiction, you know, has to approve it. Yeah. It's not a subjective.

So, this plan here is, you know, more the first one. um you know that's doable with uh there there could be more there could be some green space I mean so just my looking at it initially is this is greedy on the developer end just first initial look there can be a green spot here or there so that's my this one here is you know this is more of your um what can the lines of what I would envision a more of a metropolitan area. It's got the density in the middle, the the bigger ones. And then the only question that I would have, which I know we're not there, I'm just bringing it up, that railroad crossing. So yeah, Jim Jim,

that's been a that's been a very expensive feat in the past and we've had developers jump away from that because I have Jason, I have to go. Okay. Excuse me. Okay, hold up for a minute. Are you coming right back? You want us to wait on you? Take a recess or Okay, go ahead.

Good evening, Mayor, members of the council. I'm Jim Dwey with JDJR Engineers. We've been working on this particular piece of property for a little bit of time. We met with the staff before Miguel came on board and we were basically looking at doing something similar to Riverfield. I believe that's the name of the development. Seems quite successful. Wraps around us on two sides. We were kind of matching that design and I think that's the what he labeled as the first plan. and we can certainly add some open space to that as well. Uh we do really want to be annexed into the city. We think that's, you know, beneficial to us and I think it'd be beneficial to the city. So we would like to work with the city council and the city staff in order to achieve that and come up with a plan that we think this council can approve and we can develop by. Miguel wanted us to look at some a little bit of a different approach with a little bit of some higher density different type of products and in exchange for that larger really large nice usable open spaces and even the plan that before you we might still be able to add an open space or two to that plan. Um but we were just trying to get there now that has some product that I'm not sure um that would be in future phases. We want to start phase one being what's the west portion that kind of wraps around that piece of Riverfield and we would match that and even on the second plan with the different products uh we were using the exact same lot sizes as Riverfield and abudding that development with it so that they weren't they wouldn't be you know same type of product against their product and not have any issues with the development but there I mean we're open to you know either choice. Looking at something with a little more density in the future. It

certainly is not would be in phase one or even probably in phase two. These could be include single family attached housing. Um I mean we're just kind of getting maybe. So you're repres what you are you the land owner or the I'm the engineer. The engineer here in behalf of the landowner. Okay. Okay. And I know it's just trying to get a feel on the council, but being annexed in as just straight annexed in, is that what they're after or what? Voluntarily annexed. Voluntarily. Okay. What's your timeline on starting to build?

As soon as we can get a development agreement. And I know you don't need the railroad. What as far the railroad? We didn't You're talking about having outlets. Are you talking about tying in to the existing Riverfield development for We only They didn't provide any street stubouts. Okay. Exception of one on the south side of our project. I think you can kind of see

where that go that street goes up. We will be tying in there. So, we have limited access unfortunately. Uh it would have been good if Riverfield would have provided some stubout especially on that east side but uh we will be you know having access off of Cado and then eventually off of County Road 850 to the north. Now that rectangular piece on the north side is not within the city's ETJ would not be able to be developed I guess. Yeah within the ETJ but it would be probably maybe phase two or three. One of the challenges we have with that tract is it's not in your CCN either. So, we'd have to get water from Cattle Basin. Uh, so that's a whole different and there's not water that readily available there. Now,

you're talking about the purple. Yeah, the purple area. Those are larger lots, but all of the blue is in our water district. Uh, I believe so. I don't think it is. I think it's um based on my read, I think it's leaprogging. Um because if you look at where the city line is um that doesn't mean that our CCN for the water is different. Yeah, that's all within our water except for on the north side of the railroad. I am curious about have y'all had any discussion about the railroad. We have

we we use a consultant that has experience dealing with the railroad. We met we met with them had a meeting virtual meeting. Um and they said we could get a permit to do a street crossing of that ride over. So whenever we had um the developer down here, they were hit hitting at them at $500,000 is what the railroad was telling them. $500,000 for the crossing. For the crossing, well, it's not active and there's no tracks there. Correct. And that's that was the thing is because we wanted another outlet. We were really pushing, but it was just it was unfeasible um for the

That may be the case here. I hope not. I think it's a nice tiein to 850 and would be another outlet for the project. Half of this purple is our water. Would this require us to get another fire truck? I'm just asking bouncing back up fire truck for well this isn't with I'm just looking at all these little bitty houses and

this one here. What I've noticed as I go from town to town, they're they're developers are coming into the small towns and they're building tiny house lots is what it is. Tree line is the railroad. I just think it's fire hazard because they're not even brick tiny houses. They're just little paper tiny houses. It's up in Leonard. It just looks awful. Not that anybody So tonight, what are we looking for? direction on if we want to work with them from the council. We're open to to proceed either way to start discussions.

Okay. We we the increased the the different housing products with the little higher density and the bigger open space. That's fine. We think that product will be coming to Josephine but not as phase one or two. Uh it's not tiny house projects but I understand what you're saying. These are some of that in includes single family attached which is townhouse where you own your unit but there you know they're right

actually live in a townhouse it's nice if you like that lifestyle and it's it's not for some people uh but that product may gain some popularity in the future. uh or we can keep it more medium density and proceed kind of basically like Riverfield and many of the other developments that you've had come through. They've been successful, but Miguel asked us to look at some alternatives um bringing a little bit of a different different housing types in an overall development. Now, we did that that section over there that has the higher density. It's kind of secluded. You don't really you could drive through this neighborhood and never know it's there. We did that on purpose so that if you live in the larger lots, all the at that on that design, you look across to the same product. You're never the higher density products are not visible from the medium density products. Could you explain that to again? I want to make sure I didn't miss something. So, are you putting up walls? There'll be a wall around.

No, they're just segregated by the streets that higher density is kind of what I call an enclave. It's kind of wrapped around. Okay.

Um and it's as you get unfortunately, you know, the price of things has just gotten housing is just unbelievably expensive. what these houses are costing today. There's no way I could have afforded that when I was a young person and I have my youngest, he's 26 and I don't, you know, he's not in a position to be able to afford a house. Hopefully, he will, but it's difficult and land prices are so expensive. The smaller products are how we get a a little bit there, but they're still they're still expensive. But we're just looking. We want to do a development. We want to come into the city. We don't want to try to do it in the ETJ uh without being part of the city. It's a great y'all got a vibrant city. I've been impressed with this meeting and the people and a lot of people want to move here and we want to make this a place that they want to move to and we're open to either product. We will just Miguel suggested that we kind of present and see if you're open to something a little different coming in future phases. the west side with the link out to Cattle Street would be phase one. I think it's kind of shown on those plans.

My personal concern is that at our last meeting we had a calculation of $8 million of immediate need things that we have. We've received a TCEQ fine. Hopefully that'll go away, but it's on the books. We don't have a lot of infrastructure. We're trying to bring on firemen. We're trying. We don't know how many police are going to be needed. We don't know about EMS. We don't know what's going to happen with the emergency services district. And in my in my opinion, we're not ready for you. We're not. Of course, I'm only one person. So, the development in as a whole or just a higher density.

Correct. I mean, you got two counties to deal with and you know, it um I appreciate you coming. I appreciate the conversations. Um, I appreciate the flexibility on open space. Um, well, just know we're not making a decision on that tonight. We're simply just discussing if we wanted staff to even talk to them and see what the options were. We're not directing or or trying to take an annexation. I would defer this until the other council members come in. And I'm I mean, I'm I'm fine. Couple questions. I'm fine, but we can still discuss it tonight. On the flat without the town houses. Yes.

What is the probable square footage and what does that equal for us in taxes that we would be bringing in every year on that square footage? Like what's your average square footage of the house? Well, those are minimum 6,000 foot lots. Many of them are larger. The strip up to the north would not be phase one. Those are 7,500 to 13,000. Those are those are much nicer lots. U but in phase one they would be 20 2,000. I mean that would be part of the development agreement too. We we would present development standards what the minimum house size would be. I would think for these type of lots the minimums would be in the 2,000 maybe

and what what is the average tax for us on a 2,000 foot? I I think what I hear you saying is you want us to examine how much revenue the different types of densities would generate the two the two I would like to know how much money we're going to be getting to offset this this is actually a great case to use the calculator that did for us what I was thinking fiscal impact as far as what it would generate in taxes it really just depends on the value so that would be a combination of the size of the lot and and the product that's on it and and the square footage of that.

And then also you got when it like say they come in and they they build like say a developer comes in, there's there's fees that they have to pay that will cover like sewer. They have to pay a certain amount. Every developer is going to pay that fee per lot and that's going to basically back pay you for your developments and and you use to pay in your future develop. That's the way cities try to offset. But I get what you're saying like what are we going to make? It's going to be substantial number I can. But once the development is finished and we have all these taxpayers here, we also have extra police and extra fire and extra city staff to take in water bills and put up meters and like

we can run those numbers just, you know, and and just food for thought right as part of the consideration, you know, our fire department will likely still serve them in the ETJ. Police department most likely will still serve them in the ETJ. We'll still or not police arguments. No, not unless we have some kind of agreement. Not unless we have an agreement. However, they're in our district. But I see what you're saying is you want to understand if the tax revenue that would be generated by these subdivisions would be offset those additional costs in the future. But you have to see they will be driving on our roads coming out. So if they're not paying any taxes, they're wearing our roads out. It just becomes a that's where you have to

typ typically though the the tax value the the value per acre is um the higher the density the higher the value per acre. Yeah. The the conversation is is value per acre not value per lot because you regardless of the density you'll still have the same number the miles of pipes the miles of roadway. That won't change. You still have the same amount of water lines to serve 143 acres on this site regardless of housing count. Right. But we have more money per square foot. Like if you live in a 3,000T house in the same neighborhood that I live in and somebody else lives in a 2,000 foot house, we have different values on So the value paying taxes.

It it's kind of surprising, but the value per acre is actually higher in say Fountain View. And if um the meds were in our city limit, it I mean the value per acre is actually higher in those higher densities than it is in the value of the house in the lot itself may individually be higher, but if you look at per acre, all that tax revenue, it's actually higher in these higher density developments.

We'll examine that. So, I think with what you're saying is this like do y'all want to direct staff to to move forward and and come up with those numbers and and start working on that and then that way council has something to analyze and look at hard data. Okay. Ask your question. What which roads which roads would they be bothering of ours? Well, they would be state highways and county roads. They're not our roads. Our roads are right around here. Well, we have right here. I guess they could come down Kat Street.

This right here is County Road that comes out to Kat. Yeah. Okay. So, this one comes out on Cat Street. So, then will we take care of all their roads? No. If they're not in the No, I mean if we annex them into the city, then their roads become our roads. Oh, yeah. Yeah. Okay. That's why you have Are we going to build those roads out? No, they do. The developer will pay for all the developer pays all costs putting in every bit of the infrastructure. They have to build them to your development standards. So have to build to your standards. Yeah. They we have a set standard and and they have to build the roads the to the 32 foot and all the all that. So um

we would like to connect to city services. We're not proposing a mud um with a new plant going online. So, I think council um do y'all want to have staff? That's what we're looking for. It's up to y'all when either make a motion to move forward with staff talking with uh the developer and um bringing back and answering the questions y'all had. I don't know that they can do it within a month, but um

I don't know that we need a motion. I think maybe just direction and if you'd like, if the developer's willing, I think we could just explore that uh fiscal impact analysis and and maybe look at a couple of different scenarios. Um and then we could kind of bring back the idea of inside city limits versus remaining outside. But um I do believe the development will probably happen either way. So, it's just a matter of, you know, do you want them inside the city limits or do you want to leave them outside city limits? Well, again, we we would prefer to annex into the city. I think there's a there's a a lot of advantages to the citizens that would live in this neighborhood as well. What advantage

to be within the city limits for this project to be annexed into the city limits? Police, fire, that's our place. and that's what they're looking for. I understand the shortage of infrastructure now and the shortage of personnel, but you know, you do have a lot of residences coming on board fairly soon all around the city and having this in the city limits would bring a enormous tax benefit. All right. So, council, do you uh do you I know we don't need a motion, but I would like some kind of consensus from the council tonight to at least I'm not my my Yeah, I

I don't want to annex into the city at this point. Maybe in 10 years. I agree. But you want a grocery store? I want a grocery store. We want a grocery store. Yeah. It's not going to happen. I think I would like to see what the tax value would be if we were to annex a development like this into the we'll to the city. We'll examine both scenarios, bring them up next month and as mentioned earlier the full council can take a look and then we can give direction to the developer as well after after. Okay. Thank you. Thank you. Uh,

thank you very much.

4.13 staff briefing on National Sun Plaza's program and consider to Oh, 4.12. I'm sorry, skipped another one. Discussion on a on a request by the city of Nevada to establish an ultimate mutual boundary between the exterestal exterial jurisdictions of both cities due to recent boundary changes. Um this one should be fairly straightforward. Um the green line that you see is is the uh alignment of the approximate alignment of the outer loop. The red line uh represents Nevada's ETJ. The blue line represents Josephine's ETJ. Um both cities are expected to expand their ETJs as time goes, you know, and development comes in. And their intent is to uh secure an ultimate boundary where the middle line of the outer loop becomes the ETJ uh boundary. If you will scroll to the um forgive me I was waiting on Jerica too.

Sorry. No, no worries. Is that

the area that's that's kind of striped and crossed out in the middle is is the Greenwood mud which left our ETJ. So that area is now Nevada's ETJ. So basically their ETJ at least there is already east side on the east side of the outer loop. Uh the areas where we would lose ETJ under this would be um on the western part and actually

just so you know while he's doing that uh it was allowed to leave the ETJ because it was in two ETJs. And when it's in a MUD is in two ETJs, the MUD gets to choose which ETJ uh it wants to belong to. And the cities don't get a choice and the industrial district doesn't matter at that point. So So we would lose this area right here. They want to keep this common property line for now, but ideally they want to what they're looking for is towards the north really to longterm establish that.

So is is the red shaded area with the stripes that is now theirs?

Yeah. on paper, you know, it makes it clean because it's clearly defined boundaries. However, uh the reason why I don't support and I think the administrator neither doesn't support it either is that any loss of ETJ results in a loss of potential sales tax revenue for the municipal development district. And ideally we have the leverage and the advantage that our ETJ is currently on both sides of the outer loop at that interchange which is going to become the only major interchange between US 380 and I30 on this outer loop. So the high potential of a retail development going on four well four of those corners really on those four corners is very high. We brought it up to you just, you know, to to receive your direction on this to pursue it or not. My recommendation is to um only make the adjustments that were caused by their annexation. Um there's a little area where they annexed a little bit more land as well as the loss of the Greenwood mud. I don't want to lose any tax dollars. Like if if all four corners of that highway are possible

retail, restaurants, grocery, whatever. Like we don't want to give that to Nevada. Well, and and you know the other risk is these if you expand ETJ those properties could eventually be annexed and that even expands the ETJ greater and more annexations can occur. So um we as a city also want to pursue as this item just before you an annexation strategy to have more control and more property tax revenue as these areas develop. So what's your recommendation?

Recommendations to not support it to I don't I don't mind sharing it with ET I mean them over there. I'm happy I'm doesn't bother me. They're they're looking out for for Nevada and we're looking out for Joseph, right? We don't want to lose anything. Yeah, I would agree. Guess I want to be neighborly cuz um city limits and ETJs is worth a lot of money for the city in the long run in the future. Tax dollars.

So keep our roads built and maintained and water lines flowing. If we don't market our city, we're not going to get anything. Jason, oh we've been marketing. So you saying our planner ain't doing his job? just slapped him in the face while he's standing at the podium. I know. I know. We are marketing. He's been working hard behind the scenes just because we don't know everything. He's been out there hard and heavy. He's talked to many many many companies. It It sounds like we'll That's why we hired a planner. We wanted to market our city.

Um it sounds like we'll respectfully decline then the request. That would be my recommendation. Mine, too. Okay. Thank you.

All right. Next item. 413 staff briefing on the national sign plazas program and consideration to schedule a presentation to the council at a later date. Mayor, members of the council, um this is uh a request by a company named National Sign Plazas. They're the ones that put out the subdivision builder signs in different cities. Um and uh there is uh that's how they make their money. So basically they they get the uh revenue from those home builders. There is a a u cost share to some cities. some some cities get the opportunity to do directional signage and and kind of you know using that as their wayfinding signs as well. Um you know we we uh didn't want to commit to having them come to a presentation unless the council wanted to entertain them at a future date. U I didn't want them to come here and speak for 45 like yeah I mean I'm not saying they're going to speak for that long but we want to trim agendas. So, um, this one is very up and very easy. Yes or no? Do you want to hear them?

I mean, do they put the signs up for the I mean, is there a cost to the city? No. Do they want to be a preferred vendor? Is that what they want to be for? So, it's it's it's basically a a contract with just them as a sole source. So, they become the only the only person to put up those types for the development. Mhm. and then the builders go to them and put their signs. The the uh advantage, I guess I'll call it, is that usually when the builders do that, then that eliminates the need to be putting up those weekend signs that litter, you know, your roads. And, you know, I'm not sure if that's

So, would we be creating an ordinance that if you were a home builder, you would have to go to them and use only their signs? Sometimes you don't even need to do that because the home builder say, "Well, I'll just pay them to just put my sign. I don't have to be paying somebody to go out there every weekend and putting those signs and taking them out." I'm just opposed to, you know, to that. I be like, you know, us telling people who they got to use to, you know, paint their house or mow their yard. I just I don't

We have sign ordinances. I don't even like the the fact that being a resident you can't get a dumpster from somebody besides Republic. I don't even like that. I think it's I just don't I don't like it. Yeah. I don't think we need this. We're We're too small. There's not enough land left to put Oh, we got plenty of land, but I don't think we I don't think we I don't think we have this issue. And I don't think we I don't think we will. We have more trash on the road than we have those signs. This is freedom love in Texas. Fair. Fair enough. That's That's what I needed to hear. All right. Thank you. Are you Let's see. Are you still standing? Yes, actually I am.

I just need a stool at this point. Just Just make this my station. Just get a rubber band and put her in. So, we on uh for 4.14. Yep. Yep. This is discuss and consider and possible action for the appointment of a chair for the planning and zoning commission. Uh, mayor, members of the council, u we just recognized our outgoing chair this morning or this evening. Uh, we also had another vacancy. So, we technically just have four commissioners, two full members and two uh

alternate members. Um, we reached out to the ones who had been serving the longest as is customary in planning and zoning commissions. Uh, Mr. Wrren said he may be considering not returning after his term expires in November. Uh, Mr. Cusk happily to accepted our request to gauge interest and we recommend that he be appointed as the chairman. Pretty straightforward. Y sounds wonderful. Works for me. So, do we need a motion or just Yes. Yes, please. I I will need a motion. Yep. Probably. Yeah. Um I move that we um accept uh Mr. Pat Cusk as the uh chair for the planning and zoning commission. With pleasure. I would just say a point.

A point. Yeah, a point. Not accept. Do we have a second? A second. Can you send the votes on this one or Okay. Just making sure. All in favor? My computer just said no. Okay. And um 4.15 staff briefing on proposed farmers market at Josephine City Park and possible action to direct staff on fees and other operating terms.

Mayor, members of the council, I'll be brief. Um Valerie and I have been talking for some time, you know, going back and forth about the interim use agreement and and uh one of the things that had been left pending that I needed to bring before you was the uh fee structure and and how the city will be incorporating that into the contract. Now, uh council member Orin had mentioned a like per vendor fee based on the previous months like I think that something you had discussed. Um, that's one of the options of of going with a fee of about $15 per vendor per event. Uh, that's about a range. We can go lower or higher, but but really what I what I want right now is to understand the structure that you want me to follow in this agreement. Um, other communities do a percentage of the vendor fees. I will tell you I'm not supportive of that because the record keeping and being that's too much of a burden. Um, some cities also do a hybrid model, which is a flat fee plus a per vendor fee, which may truly be the best option. Um, an example structure could be uh $50 per event plus $10 per vendor. Again, this is a startup, you know, I and very minimal city, you know, participation really. We're not providing any staff. We're not providing any anything additional from what's already there. So we I feel comfortable going with a relatively low fee for the initial term and then we can examine that upon renewal. Um there's also a tiered vendor fee model that that could be explored which is you know a structure for the first 10 vendors and then you know higher amount if you go with a higher number of vendors. Uh, and that will, you know, allow flexibility based on the seasons, right? Cuz sometimes things get rained out, some vendors just don't show up.

Um, so I I kind of need direct well, not kind of I need direction from from you all on what fee structure you prefer. We're not necessarily like I'm not I'm not throwing numbers out there, just really the structure and then we'll come up with a number that I I think we can all be comfortable when we bring up the agreement next month. I think I would start with like a three-month agreement and do like a small fee like um you said $15 as a introduction and then see how that goes for the first couple months and then do another three months and see if it just continues to get bigger

um to help them get started. You don't want to charge them $50 a vendor in the very beginning and three people show up to buy stuff. Okay. So, mean and the first month could be free of charge because they're barely starting out and then we can deal with the 15 based on the previous month's number of vendors. Is that for say the first three months after that? Mhm. So, for the first four months, the first month free and then maybe $15 a vendor for the next three months. And then if it does really really well and they're making great money, bump it to $50 even. Yeah, we can. Are we staffing any of this or powering any of this? what they using generators and

they'll be bringing their own equipment. Most most of these since it's daytime, they won't even need generators. You know, they're not going to empty our trash cans, but but they'll do their own clean up. Yeah, they're responsible for all of those those items as well. Yes, they better. I don't I don't I think it's a learn and see what happens process. Um

any other questions? My suggestion is to charge the least amount possible when they start out. It's very gracious to have the first month gratus no fee for the first month, but that means if three vendors show up two months, they get charged the 15, but the first if the fifth vendor shows up that's new, that's their first month. You're going to keep that rolling tally and and that first month of the fifth vendor is going to be free. No, cuz that one person's in charge and she's going to pay per vendor. So, it would be the first month is free. Yeah. for like every one of these. This is a fee we're charging her. We're charging all the vendors individual. I I don't talk to the vendors. Okay. She's the she's the middle

and I agree with that. Um I I think we do need to give new businesses and farmers market plus fresh vegetables are healthy and and and there are safeguards to ensure that and this is based on state law about ensuring that it's truly a farmers market and and artisan like bakery and things like that and not anything else. I want to try to avoid the failure that happened in Nevada. Nevada, they set one up and they had crafts and things as well and it totally flopped. No, there there are safeguards for that in our in our agreement. All right. But Eleivon, they're they're booming. They got like 50 vendors or more. Well, they got a lot of people over there, too. Yeah. So, whatever we can do to give them a break at the beginning. Sure. Thank you. I agree. All right. Thank you. It wasn't that

soon as they build that grocery store over there, we're going to have to drive a little to go to the grocery store. We don't need a vote, right? Motion. No, I think just a direction. 17, right? Or 16 16.

All right, that's 4.16. staff briefing on proposed food truck operations at Josephine City Park and possible action to direct staff on fees and other operating terms. All right, I'll try to be brief on this one. So, this one's a little more u uh complicated, I guess. So, I need direction on a few things that I've discussed with some of the interested vendors. um ideally is um an affirmation that you know are we going to require this to be truly mobile where there is no overnight trailers or food trucks left in the park or is it something that you're willing to say okay you get this spot for a full month you can leave your vehicle there overnight the full month um that's one of the question marks that I keep getting uh and I'd like council direction on that because I could go either way I mean we could go with a block schedule where people can reserve in advance saying, "Hey, I want Monday, Wednesday, and Friday lunchtime and I can reserve one of those spots for a fee of, you know, $30 per time slot or like, you know, that's one option. The other option could be, you know, eight spots, first come, first serve, gets them for a whole month, and they pay a monthly fee and they can be there as long as they want during that month." and their food truck would just be sitting out there every single day even if they're not open.

That's where I want direction from council. Like if do you want truly a a mobile vehicle that moves in and out or do you want something like in faith where there's semi like they're basically parked there for an extended period and they don't come in and out. Are we then responsible for their trucks since it's on city property? I mean we wouldn't be broken into. I mean, there would be a a safeguard on our agreement where we wouldn't be liable and they would for contract. Yeah. They'd be forced to carry insurance. But, I mean, I guess this is more of an aesthetics concern. Do you want the trucks to just be there parked all the time or do you want them to move in and out?

Uh, some of the vendors have expressed can go either way. Some said if I can't park there and leave it there all the time, I'm I'm out. Others have said, I don't want to leave it there. I want to have the flexibility to go to different cities and different events you know and and that's why um one of the thoughts was that flexible schedule where we say here we have you know three daily time slots lunch you know afternoon and dinner time Monday through every day and then people can reserve you know in advance we would have safeguards to ensure that there's no duplication of cuisines but you know to be able to have variety those are the kind kind of things I I need um direction before I uh fully start u structuring the agreements that I'm going to send to the foot truck.

So the and all I mean all the vendors have to provide their own generated power and and and there there will be a requirement and most of the ones I've talked to with the exception of one said they have quiet generators. Well, I mean, I'll just say I was opposed to this from the very beginning for all these reasons in the park, but I'll just say I don't I don't like the overnight and just 247 them being parked there. I think it's more of a use cleanliness of Yeah. And even just park in general,

we're going to have events and that, you know, to me, okay, we'll put it out there. We now have the extra parking came in handy, you know, for the voting, but um I'm just I'm I am totally against the vendors trucks and I just I don't I don't like it in the I it's it's not growth that we're looking for in the city. It's just temporary. So I would in my opinion is you do it on set times, you know, a weekend or a Saturday or or whatever it may be and not just left there. And if they don't like the agreement, then they don't park there. So that's my opinion. I'm only

I like the idea of the food trucks. I I like that we're getting some business here even if it's not permanent because like that's how Smoke Sessions got started. they were in a food truck and now they've got a big beautiful building that they built because they did so good there. So, I want to encourage that kind of behavior, but I also want you to be able to see how beautiful our park is and all the kids playing in there and people coming to the park and enjoying it and not be crowded up with a whole bunch of food trucks that are closed. Well, and and you know the the mindset when this came up of being a pilot program, you know, and I I I know that consideration of the generators and noise, but you know, given that it's a pilot program, I didn't feel comfortable going out and asking for funding to actually run electricity to to each of the paths, right, that were intended. Um, if they're successful and and this becomes a more popular program, I think I could I could see us doing that. maybe even putting a canopy and bringing actual like furniture to enhance the area. But, you know, given that it's a pilot program and like you mentioned, it's truly just to test out the waters. I mean, the hope is that these businesses like Smoke Sessions or Torches Tacos, even using a very large large scale example, they do so well that they decide to invest in an actual brickandmortar location here, not just a food truck.

And yeah, so I'd like a little clarification. You're only talking about the pad out front. You're not talking about a private rental agreement between a land owner and a food truck. This is solely about is not on the pad. This is solely about our city park right here. All right. But you're the the separate if somebody wants to go in a different property, our zoning code is silent on it.

And you know that becomes a challenge for me to administer. Uh so if if the council and this I'm trying not to dive into a different agenda item, but if council says I want to either allow or disallow those private agreements on private properties, then I need to bring forward a zoning update to address those concerns and either allow them or disallow them. No, please don't please don't try to do that retroactively. Please

don't do that. Um, so regarding the park, I also was one who was not in favor of blocking the beautiful park, but I also understand we don't have a grocery store. We don't have a food market yet, a farmers market. It's all I mean, council voted for it. I didn't want it cuz I didn't want it to look like other cities, but it got approved. So I guess now there are other there are vendors that have said to me they want to be the only style. So one person said they wanted to be the only barbecue, the only coffee, the only snow cone, whatever it is. And that was there was no guarantee for that because there's nothing in writing yet.

So is that going to be addressed? Yes, there is a scoring system for the the ones that have gauged interest to ensure that you know regardless of which way we go of going like monthly agreements or just on a flexible basis we have safeguards to ensure that we don't have you know three taco trucks and an ice cream you know truck in one shift right let's just call them shifts for argument sake so yes we have those all of those safeguards are being worked into this agreement but what I need direction from council right now is for um the uh the struct the the timing. So it sounds like you want them to be mobile, not not park there on any basis, so they roll in, sell, roll out. Um, and do you want to pursue a an option uh where some of the spots are assigned on a monthly basis where they pay a flat fee for the whole month or do you want to let every spot be open for on a first come first served basis?

I don't see a problem with, you know, a monthly basis. You know, I think a monthly basis would give the citizens they would know something was going to be there for them to go eat if they wanted to. Yeah. No. So my question would be like when you say a time slot or a monthly basis, if if you got on there for a time slot and you said, "I want to come every single Monday from 3:00 in the afternoon till 10:00 at night." Like they can do that every Monday or they can do that Monday through Friday.

Yeah. I mean it it'll give them flexibility to choose when they want to be here and they'll pay a fee per shift. And I like that option because most of the people I've talked to have other engagements in other cities. So they they don't want to be here on a permanent basis either. Say, "Hey, because like for example, some cities even when they roll in and out say, well, you got to be here, you know, the three serving times a day every day." And sometimes these trucks can't really meet those expectations. So they could book it for the whole month. If they want to, we could they could do that. Even if we did just the time slots. Yeah. Either or. Okay. They just can't leave it overnight. They just can't leave it overnight. But yeah, we couldn't.

Now, if we did a like a three-day festival, we don't have any of those planned or or booked or thought about even. But if we were doing like a whole Fourth of July bash, that was like a Friday. That would be I'm sorry. Friday, Saturday, Sunday. Would that be like a special event where they could leave overnight or I mean, I don't I'm not opposed to that. And I'm not opposed to, you know, you know, like a a Friday or a Saturday night. I know these vendors, if they come out here and they set up until 11:00 at night, then they're going to have to hook up and haul it out. I mean, I get it, but also it's a public park. We got to try to

So, when it comes to special events, we'll block it out because that's a whole other process done separately with other vendors and I want to just I rather have that untouched. And the pad would be used for the special events, but it wouldn't be reserved for those vendors. So, we'll block out those dates. I think y'all could do like some kind of, you know, like a deal to where, you know, say, "Hey, we're posted on the website or Facebook and have like a two or three day the vendors that are going to be here Thursday through Saturday or Sunday." And, you know, I'm sure council would make, you know, some concessions on letting them be there, you know, for the whole weekend. I agree. And just setting up for Chamber of Commerce takes hours. Yeah. So,

hey, we're getting it down. We're pretty good. So, yeah, I I would like them to have the ability, you know. So, we Okay. I think from what everybody's saying is they don't want them just parked there and anchored down permanently, but I don't think the the council is going to be opposed if there's a, you know, a three-day deal or something where they stay there. Somebody booked for 3 days the whole time, something like that. the slots and pays for all of the slots. They could keep, you know, Friday the truck overnight. Okay, that works. Thank you. Maybe for the weekend, but for some Okay, lost where I was. Okay.

All right. 4.16. Now we're on 4.17. Discuss. consider an act to approve a resolution authorizing the city to submit a grant application to the motor vehicle crime prevention authority for the 2026 autotheft task force grant program.

Thank you, mayor and council. Uh as we briefly discussed uh the last council meeting, this is a grant grant that needs to be submitted sometime between March the 18th and May the 8th. U it would be for some cameras throughout the city. Uh the cost uh for them would be $12,000, but through this grant, the only cost would be to the city would be $2,400. And that would be for a minimum of four, or we could do more if if uh if the council would like it. Uh, this is a year-to-year deal. Even we don't have to accept it if we decide we don't want to, but we do have to have a resolution approved and signed by the council uh by May 8th to go forward with this. Uh, I have had some experience with it. Like I said, uh I believe I told you last time, uh we use this system here to have a homicide uh suspect in custody within 2 hours of a murder that happened in Farmersville because of this system. And uh I highly recommend it. It's pretty much going everywhere in every city. Uh but I'm answer I'm ready for any questions or anything

questions. council. Um, you said that it's a $12,000 for the whole system and we have to apply for the grant, but it's only going to cost the city $2,400. But in here, it says um the city agrees to provide applicable matching funds for said project as required by the motor vehicle crimerevention authority grant application.

Well, what what was explained to me was they would pick up the cost of 80% and we would have 20% is what I was told. But like I said, if that wasn't the case when this comes up, we don't have to accept this grant uh when it comes comes through. But from my understanding, it's only 20% which would be $2,400. Now, next year, there may not be a grant that we can apply for. So, we may have the whole cost of it if we want to keep stay with it. Uh but I'm sure there'll probably be other grants later on, too. And that would be another $12,000. Yes. If It would be $12,000 a year. If there's no grants,

if there's no grants, it would be 12,000 a year. But you don't, like I said, it's a year-to-year deal. Uh you're not having to sign a contract for one year, two years, or anything. You can either accept the grant, not accept the grant, and do away with it anytime you want to. I think Kato just did this too, didn't they? KO did it in Leavon also and Farmersville. Yeah. this the citizens are complaining in Kado, but I I they're complaining because of the cameras.

So, I I noticed that there were eight thefts, whatever that means, on the police report, which is very concerning for a small town. Um, this is not specific what you're going to use it for. Are you going to use it for, and excuse me for not getting this, are you going to use it for the flock cameras or for some other theft project? Well, it would mostly be if we have an offense like in the city park or something like that, but it would tell you if there's stolen cars that come through town, if they're in block cameras. Yes. Okay.

And then uh it would also like if if if a wanted person uh if they had entered that that tag number, it would also give the officers information. But it really the the main thing is if you have a a criminal offense that occurs and you you check the cameras and whatever information that you might have about the vehicle and you can identify it real quick. We use we used one for a little while that was on a loaner to us and there was about 8,000 cars a day coming through here. So trying to be sensitive to uh April's concerns about the 8020 or the total cost. What if we got three cameras instead of four? Would that lower the cost?

Yeah, it would lower the cost each one. But what I with a minimum of four, possibly five, uh I'm looking at the main entrance and exits Yeah. of the city. And I'm I'm I'm kind of concerned too that, you know, 596, which is West Hubard, there's quite a bit of traffic on that. So we might even So if you don't hit every exit and entry, like the exit's going to be the entry. If you don't hit them all, it's kind of you might miss them if they go out. Yeah. Because I think at one time when we were talking about something once before uh on a different subject, I think I came up with nine to 10 ways that people could

get out of the city limits. Uh but like I said, the only one that really concerns me that if we only go with four is that 596 because it is used quite a bit. Yeah, these are a good crime fighting tool. I know that. Yeah, they are. Yeah. Like I said, we there was a murder in Farmersville. There was there was an Arlington officer got hit on a motorcycle. Uh and that's how they identified them all through through these cameras to be able to Yeah. It identified their license plate and tracked them. So, if they put an Amber Alert out for a certain license plate, every time that car goes through one of these cameras, it's going to notify them like this is where they were at.

Yeah. I if it if it's entered correctly from DPS, correct for Amber Alerts and stuff like that. Cuz like like the deal we had at Farmersville, it the the car that we determined that we thought he was in hit over by Bies on I30 and it was showed it was going eastbound and we called ahead to I think it was to New Boston uh because we were a few you know probably 30 to 45 minutes behind and he was off duty. He came out and had the tag number in his computer and as soon as the car came by, it notified him there was a car chase into Texar Canon before he finally wrecked out.

All right, I think we got enough information. Council looking for entertain a motion one way or another. I'm reconnecting. Um, I move that we um move forward with applying for the um theft grant. I'll second.

All right, we have a motion to second. We send the voting signs. All right. Moving forward 4.18. Discuss consider an act to authorize tax note from the bank account that held the in incoming tax note bond funds for the public safety building to be closed. This is just a formality. The account's really not necessary anymore. We have spent the funds on the public safety building. We've got the closeout documents for the public safety building. So, it's just closing down the account.

Can I ask a question cuz you know I'm going to Of course. I forgot to ask you this this afternoon. I'm sorry. Okay. We had what? 4,000 or 4,884 million in there. That was the tax note. Correct. Okay. So, we've received all the funds from Dr. Horton to pay that or is that still coming in? The funds are on a schedule. Okay. So, that's coming in annually. Correct. And that will go that money will go into the they'll go into the operating investment account. Yes. This was specifically the incoming bond funds which have been spent.

Okay. So we pay the tax note just regular out of our property taxes. Correct. Okay. Gotcha. Thank you. All right. We have a motion.

I make a motion that we close out the tax note account. Have a second. I'll second. the voting signs.

All right. Next item. This is uh discuss considering act regarding paying off the lease number JSTX 2022-01E-183065. I don't have the amount right in front of me. You guys probably do, but I did an analysis on how much it would save. I believe it was about 46,000 in um uh lease fees if we went ahead and paid this off. We have collected 115% of our property tax revenue. So, we have the funds to go ahead and pay this off outright is my suggestion. How would this affect us going forward doing the budget?

That's my question. I mean, I'm all for saving money, but we're because it's not in the budget right this minute, it means that I will add this to a budget adjustment in April. April is our six-month mark. That is when we do our budget adjustment. And since you guys would, if you would approve it tonight, it would just go on as an item of a budget adjustment in April. That was already previously approved.

And I But I'm talking about us going forward, like creating our budget for next year. It's already paid off. If we do not approve paying this off, yes, I'll have to add a monthly pay or not a monthly, an annual payment to pay this off in future years. And this will this amortization schedule will become the cities. So, so I think it's over 200,000. So, um, is there anywhere else that we can cut to make up that difference in our balancing in April? There's really not. No, no. This is something that we took on because we took the fire department on. So, this becomes our liability.

Melissa, we're ahead on revenue, correct? For the year. Yes. Like I just said, we have already collected 115% of our property tax revenue for the year. So, we have the funds to pay this off, which may make sense. Pay it off, save the 40ome,000 in interest, and you don't have to worry about funding that the following year. Okay. To pay off.

Got the money. Save the interest. And it's in that operating fund already, right? Got that on the report. council. I'm just hoping we can offset the 200,000 someplace because we from the last meeting, we also have another 8 million of them. We don't actually have 8 million. We'll discuss that in the back. We've already got a bunch of that money. Okay. You're going to pay for this firetruck one way or another. You're either going to pay without paying the 45,000 in interest or not. And we have the funds. The staff's telling us we do. So,

I'm going to make a motion that we pay off this fire truck because I like to have my stuff paid. So, I will make a motion we pay off the and I'll second $200,000. I'll second. All right. Send the votes, please.

Paid for. Thank you. Thank you. Thank you, Melissa.

All right. Next item. This is a update for the utility billing card payments slash errors. Okay, this was the request from the last meeting to discuss what happened with the utility billing side of there's no billing issues. So, I included that. Just letting you know there was no billing issues. But the the errors that we saw that um were on social media was due to multiple people clicking on um submit multiple times and u not getting any kind of declined message or anything letting them know when they were going to check their bank. Um all the pending payments were there. The city can't do anything when you're you have a pending payment in your account because we didn't get the payment. So, a declined payment, it's a decline. It's a declined payment, so there was nothing we could do. Um, some banks get it back to you within two to three days, some within the same day. So we told everyone that did make that error that um it would take about 3 to five business days and we had to get with our IT um for the payment processing and we did they did disabled this was a certain implementation they made temporarily and ended up taking it offline because of the issues that it was creating for everyone that has this software. Um they are reimplementing it eventually. So, we went ahead and made a post in our um emailing out to everyone that in our software to let them know that everything has to match exactly um it's all the way from capitalization. If you have TX lowercase on your bank statement, it needs to be lowercase when you make a payment. it is a fraud protection to

protect because um they're I guess uh on the payment software side they're seeing more or preventing they're trying to just have pre prevent fraud for the future. So that's kind of what that was um about just to let youall know. Do we need to like we filled out a form not like I filled out a form with y'all not online because they take it directly out of the bank account. There's nothing we have to do different than that. Correct. The notice that's going out that's what I've been telling people. Okay. Yes. The notice that went out to everyone is anyone with card. Okay. So, if you don't pay by card, whether that's credit or debit, whatever your banking is, you will have to update it. If you have it correct, you don't have to do anything.

So, when is our contract end with this? We've had this discussion. So, and you're working with you're you're working I work with um payment tech. Chase Payment Tech is who we get our payment processes and then Municipal Online payments and Tyler Technologies which is all three of ours and they are all on the same page now. I know but we discussed like we were working on the new moving forward like our contract is what two years or we got a year left. I don't know what the are you wanting with the payment process? Yeah. Yeah. the one that this the payment process uh the last time we spoke and you said

we looked at we added the AC and which we have nearly a thousand accounts on that which is a lot so most people just avoid the processing fee which is astronomical. Yes, it's um with the 3.7% it integrates and updates and it it would affect every process the utilities in especially the major one being shut off if we were to change payment processing and I think it's it's built to use their stuff if you we used an outside one. It's a manual process for every payment. And

I know, but the company that does the utility billing, didn't we have a Weren't we weighing all our options moving forward with the contracts? And I don't I don't believe so. For the actual billing software, Tyler Technologies, not Tyler, but Tyler doesn't just use this one company for processing, do they? They only use this one company that integrates with their software. So, that's why we went with them. Um, if we chose anything else, it's a manual. It's not an automatic. You if you made a payment on a portal or something, you wouldn't see a pending payment until your staff physically posts that payment and verifies everything. Thank you.

I want to thank you for investigating cuz the social media blew up and I appreciate you putting it in the newsletter and I appreciate you reaching out to people. No problem. Anything else? No, ma'am. Okay. Now we will um recess our regular scheduled meeting and uh go into executive session at 8:52 p.m. We still have a guest here today. Are are you after executive session?

after. Oh, you're gonna be here a while. Okay. Yeah. Thank you. Sorry. Sorry, Jason. I just um council will meet in executive session, close meeting, deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of public officer or employee. Mun municipal development district MDD board of directors. Mayor, are you all right if I let the rest of staff go for the evening? Yes, go ahead. And we're going to recess for long enough to go to the restroom while we make our way back. But yeah, go ahead.

I typed it right. All right, we are got everybody here. Oh, wow. Yeah, we will um reconvene from the executive session to our uh regular scheduled meeting at 9:48 p.m. We will adjourn back into regular meeting. Um we're going to move to 8.2. This is the uh appoint the board members to the Josephine Municipal um development district. Uh the board of directors.

Yes. Thank you. Um I move that for the municipal development district board of directors that we um have the have David Reid, Kevin McKinnon, Whitney Bear, and Gabby Sepon be members of the MDD with a city council member Sardo as well. the first term. Who's got the terms?

Oh, okay. So, David Reid and Kevin McKinnon will have the longer term. Is that till 2028? And Whitney Bear, Gabby, and Sarda will have the shorter term to 2027. Do we have a second? A second. Can you sign uh for vote? Oh, sign. No hand sign. Oh, you don't have it? Okay, raise your right hand for yes. All in favor? Okay, so I guess staff will reach out to them. Next item.

Okay. Yes. Next item 8.3. This is uh consider act to approve the list of qualified firms for as needed on call engineering services to supplement city engineering needs. Okay. Go ahead. Um I move that I move that we have for the engineering in no specific order no just for the record that we have uh Dunaway Shamberg and Poke Teague Nail and Perkins and Bartlett and West. Do we have a second? I second.

Voting signs in favor right hand. All right, last item is going to be adjourned. I move that we adjourn. Do we have a second? Wait, wait, wait. Next meeting stuff that's not on. There's not on here. You can send an email. We'll send an email. You can send me an email. Send it Lisa an email if you got something. Okay. So, we have a motion to adjurnn. Do we have a second? I second. All right. Right hand to adjourn. All right. Thank you all. Meetings adjourned.