City Council - Packet - Regular Meeting

Good evening. Tonight's invocation will be given by Pastor Felix Bomarin of Grace Way Church. Pastor, come on up.

Thank you. Call this next clock. City Councilman in order. Ann, please call the roll.

Senator, are you able to stand with me for the pledges? I pledge 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. Honor the Texas flag. I pledge allegiance to thee, Texas, one state, under God, one nation.

Citizen communication. Any citizen wishing to speak during citizen communication, guard an item on or off the agenda may do so after completing the required registration card. All comments must be no more than three minutes in length per person. Section 2-26B5 of the Round Rock Code of Ordinances, 2018 edition. Any comments, current items not on the post-agenda may not be discussed or responded to by city council per state law. All right. I have two that are not on any agenda item. Mitchell Snyder.

All right. Thank you, Carlos. All right. That's all I have for items not on the agenda. Does anyone else wish to speak? All right. Staff presentation Z1, consider presentation department update from human resources department. On up, Sandra.

All right. Thank you, Sandra. Anybody have any questions or comments? Council Member Stevenson.

Thanks, Sandra, for that. And you've got two new people, relatively new people in charge. I think y'all are doing a fabulous job. It's great to see you both here. I do have two questions. So our interns, do you track how many interns come through an internship and then actually turn around and apply for a job? Even if it's not like a specific number, like 25% of them, 10%?

So it's pretty good. Yeah, really good. Yes. And then also I appreciate that total compensation statement that you did for the first time. I think that it's really important for employees to see their total value, you know, not just a dollar on a paycheck. And I'm just curious, since it's the first time doing it, how the feedback has been from the employees involved.

I think that's very important. I'd be curious you already have a very High retention rate. I'm just be curious if there's any trend going forward Related to employees seeing their whole the whole package. So I appreciate that. Thank you. Thank you.

Yeah, I'd like to ask almost the same question here in reference to internships. Are you saying you're going to try to increase that number Did I hear that correctly?

Well, thanks for that. And thanks for mentioning mentors, because I'm a big proponent about mentors. I think we all should be mentors. to serve one way or another, though, because they're the key to success in my idea. But the program you presented today was absolutely good right on. So I appreciate that and the hard work your department has put together on this. Thank you.

Thank you. Any other questions on this, though? Questions? Chancellor Fleming.

I respect y'all's group. It's so important for the health of the organization and city. So I know y'all work really hard and appreciate everything you do. I just had a quick question because I'm a numbers person. But when we were looking at the turnover rate and it was low, but it said like seasonal was really about a third of the employees. I think it was over 500 versus the 1,700 employees. So do you look at them differently for turnover? Is it year to year or are you just removing them completely? How do you look at that?

I didn't have a question. I just wanted to let Sandra and the team know that 72 promotions to date is phenomenal i think and it speaks to your professional development of the team and i think that's that's awesome so encouraged by that thank you i mean it's it's also the supervisors and the experts in every department that are willing to share that knowledge you know with with their team members so any other questions or comments over here yeah i just want to say thank you for all that y'all do and all the work you put in and

As Council Member Fleming said, it's important for the health of the organization. So great job to all of you and your team.

All right. Consent agenda items listed under the consent agenda are considered to be routine by the city council and be enacted by one motion. There will be no separate discussion of these items unless requested by a council member in which event the item will be removed from the consent agenda and considered separately. Are there any items or questions? All right. I'll read the consent. F1, consider approval of minutes from the August 13, 2026 city council meeting. F2, consider a resolution authorizing Merida to execute an agreement with Paradigm Traffic Systems, Inc. for the purchase of traf

Mayor Morgan. Yes. Resolution is G1. Consider resolution authorizing execution of an engagement letter with Rare Law and Associates. PLLC for the appeal to District Court of the PUCT final order in PUCT docket number 48836. You doing that one?

CHRIS JERRAMSEN. OK. Questions? Hearing none, motion to adopt the resolution. So moved. Second. CHRIS JERRAMSEN. Motion made by Council Member Fleming, seconded by Council Member Ortega. Any other discussion? And please call the council.

Yes. G2, consider a resolution authorizing Mayor Descoupe quantity adjustment change order number one with AP Gulf States Inc. doing business as Adolphson and Peterson Construction for the Public Safety Training Center Phase 2 project.

I just had a question since I wasn't here Tuesday morning. So this is in addition to what the original budget was, or are we still going to be coming in within budget when looking at the total project?

Thank you. Any other questions? Anytime else, stop the resolution.

Motion made by Council Member Ortega, seconded by Council Member Stephens. Any other discussion? And please, public council.

Yes. Thank you, sir. G3, consider a resolution approving and adopting financial policies related to the budget for fiscal year 26-27.

Thank you. Just a comment mostly I appreciate them the update and certainly this document has served us well for the last many years and kept us yes, sir pretty very viable and very sound, solid foundation. So thanks for the continued work on it.

Any other questions over here? Questions over here? I entertain motion to adopt the resolution. So moved. Motion made by Councilmember Ortega, seconded by Councilmember Stephens. Any other discussion? And please, public council.

Yes. G4, consider a resolution authorizing Beresha Creek Regional Utility Authority to execute a financing agreement with the Texas Water Development Board.

Questions? I'm going to tell you a motion to stop the resolution. So moved. Motion made by Council Member Ortega, seconded by Council Member Fleming. Any other discussion? And please, public counsel.

Yes. Thank you. G5, consider a resolution authorizing Mary to execute a real estate contract with A.V. Ranch Company, LTD, for the purchase of an 8.085-acre parcel required for construction of the proposed Kenny Fort Boulevard Segment 5 roadway project.

Questions? I entertain a motion to stop the resolution. Motion made by Council Member Flores, second by Council Member Lee. Any other discussion? And please poll the council.

Yes. G6, consider a resolution approving the action of the Round Rock Transportation Economic Development Corporation and amending the Transportation Capital Improvement Program.

Any questions? I entertain a motion to adopt the resolution. So moved. Motion made by Council Member Ortega, seconded by Council Member Fleming. Any other discussion? And please, public counsel.

Yes. Michael, let's skip down to H5. Where we can get Mr. Donahue and all them. That's what they're on here, right? H5? Oh, I'm sorry. I thought it was you doing it. Come on down, Kevin. Just sit there for just a quick second. Of H5, consider approval of the sixth supplemental ordinance to the matter. Consider approval of the sixth supplemental ordinance to the master ordinance established in the City of Round Rock, Texas Utility System Revenue Financing Program. First reading. Second reading not required.

All right. Any questions on this item? All right. I will entertain a motion to adopt the ordinance. So moved. Motion made by Council Member Ortega, second by Council Member Lee. Any other discussion? And please poll the council.

Mayor Morgan? Yes. All right, Michael, come on up. H. H1, considered an ordinance amended chapter 44, article 6, sections 44-149, M44-151, code of ordinances, 2018 edition, regarding environmental service fees. First reading requires two readings.

Aaron, entertain a motion to adopt the ordinance. So moved. Second. Motion made by Council Member Flores, seconded by Council Member Ortega. Any other discussion? And please, public council.

Yes. Page 2, considered an ordinance amending Chapter 44, Article 2, Sections 44-32, 44-33, and 44-34, Code of Ordinances, 2018 edition, regarding water rates, reuse water rates, and sewer rates. First reading requires two.

Michael, on the utility, on the rate for the power utility, you have an estimated increase of 6 plus percent Is that negotiable, or is that a fixed increase? Could it be more? Could it be less?

In reference to Georgetown, the contract, if that doesn't come through, we do have a backup to take care of that, or?

If you will just help me with the logic. So when I was looking at the residential water, 45,000 gallons, that would be really high end, because I think you were saying like the average is 10,000, and that's what you were showing. But when you showed the 45,000, it was like $254, if I'm remembering, if I was looking at that correctly. I think it's before that. There you go. So 285, sorry. OK. But if I look at commercial and they're doing 40,000 gallons, then it's more like $145 if I was looking at that. So I was wondering why residential would be paying more for their water bill. I think if you

So I was just trying to understand the logic to why, I guess, in essence, I mean, if the average person is $10,000, I understand, but it seems like commercial will get a little bit more leniency. So I was wondering that logic.

It makes sense. I was just wondering why they would get a lower rate. What's the logic behind having a lower rate for the commercial versus residential?

Well, I think some of that, to Council Member Fleming's point, is why, I mean, just go back to 2011, what we were talking about. There was 44 million gallons of water used that day. And the next day when all the restrictions went in, it dropped to $11 or $12 million. And what that told us is that the higher, heavier users on the system are residential properties. I mean, I'm fortunate. I mean, that's the reality of it. And I think that's where some of that comes is that it's, you know, theirs is much more non-discretionary use versus, you know, what we have. And, you know, the thing is is that

And then I think the other thing is, can you explain when you say, you know, we're increasing the rates but we're having – new growth helps pay for itself, where does that come from and where does it go toward when you say a business comes in and what happens?

All right. Entertaining motion to adopt the ordinance. So moved. Motion made by Council Member Flores, seconded by Council Member Stephens. Any other questions, discussion? And please, public council.

Yes. I think we're going to take a quick five, just before the next two items, a five-minute recess. So we'll recess at 7.25. I'll read the next item. H3, consider public testimony regarding and an ordinance adopting the fiscal year 2027 annual budget for the city of Round Rock. First reading requires two readings.

Who fires these keys? Hey, sir. You're scaring people. Can you please just get out of here?

Any questions on this for Kevin? Council Member Stephens.

First of all, good job, Sarah. Good job, Neil. I'm worried that we might lose him to a career in acting, but nice job on that. Two questions. Can you go back to the second slide? I think it was the second slide.

I think it was the new maybe keep going. It was the new one that you added. I think this one right here. So if I'm reading it correctly on our base budget,

It's kind of an on-the-spot question, but I know property values are down. The appraisal district has said that. Do you know how many, just a rough estimate, how many properties in Round Rock had a decrease in their appraised value versus increase?

Any other questions on this side? Questions? Council Member Fleming.

Just keeping on the same page, the total new spending, $6.2 million, that would be equivalent to the .9 cents increase for M&O. That's where you're getting this .9 cents when we look at property tax or not?

So it's kind of combined, the M&O bond versus just the maintenance. OK. Thank you for clarifying.

I have a couple real quick. You mentioned on the bond. you know, that we had, when we asked the voters to pass that, that we said it would be 6.9 cents. You said we're right around 3 cents. It doesn't mean that we might ever get to the 6.9, right? I mean, with sales tax, general self-finance, we're going to pay off one-time expenditures and stuff, right?

Okay. And then, you know, you showed a slide on here where about 18, you know, Residential property owner pays about 18% of the general fund revenue. So if it's 48% is where the revenue comes from, So we're only doing 18, but we make up the rest of that through sales tax and other fees and stuff, right?

Right. So if we didn't have the sales tax, it would be much higher, right? Yes. And if we didn't have commercial, it would be much higher. Yes, sir. Okay. All right.

All right. I'll entertain a motion to adopt what? Sorry. This is a public hearing. I'll open up the public hearing on item H3. Anybody wishing to speak on this item? All right. Seeing none, the public hearing is closed. I'll entertain a motion to adopt the ordinance.

Second. Motion made by Councilmember Stephens, seconded by Councilmember Ortega. Any other discussion? And please poll the council.

Yes. All right. H4, consider public testimony regarding an ordinance adopting the 2026 property tax rate for the city of Round Rock. First reading requires two readings.

I have a question on this. So going back to your slide, we're talking about new revenue and where it shows what you had it on, where it went toward. So you hear a lot about adopting the no new revenue rate, right? So if we adopted the no new revenue rate, That would generate from our new growth about $1.9 million, right? Yes, sir. That's correct. So somewhere in that 6.2 would have to be cut?

OK. And talking about base budget and stair-step pay raises that are already done by agreement with the police and fire, they're scheduled to get a little over $2 million in raises next year.

So the NNR doesn't even cover the pay step increases. We're not even talking about the new stuff. It doesn't even pay enough to pay our police and fire what we've agreed to.

OK. All right. That's all I have right now. Anybody have any questions on this for Kevin? All right. This is a public hearing. I've got two cards. I'll just call the ones I have. Justin Tankersley. Let her do the speaking, too.

Anybody have any questions? All right. Thank you, Justin. Thanks, guys. All right. Gary Oldham.

Thank you, Gary. All right. Anybody else wishing to speak? All right. Seeing no public hearings closed, I entertain a motion to adopt the ordinance. So moved.

I have a second. Second. I have a motion made by the Mayor Pro Tem, second by Council Member Ortega. Any other discussion? And please, public counsel.

Yes. All right. Council comments regarding items of community interest. Council Member Lee.

Council Member Flores. Good night, Round Rock. Council Member Fleming.

Council Member Ortega. Good night, Round Rock. Council Member Stevens.

And I'll say good night. We're adjourned at 7.58.