8.B. Receive a report and hold a discussion regarding the Johnson County Bond Program. (Contact: Jennifer VanderLaan, Director, Johnson County Public Works)

[8.B. Receive a report and hold a discussion regarding the Johnson County Bond Program. (Contact: Jennifer VanderLaan, Director, Johnson County Public Works)]

ITEM 8.B, IN CONSIDERATION OF THE MEMBERS FROM JOHNSON COUNTY IN ATTENDANCE TO PRESENT TO US A REPORT.

AT THIS TIME.

WE'LL CALL FORWARD ITEM EIGHT B.

THIS IS TO RECEIVE A REPORT AND HOLD A DISCUSSION REGARDING THE JOHNSON COUNTY BOND PROGRAM THIS EVENING.

COLT FRIEDRICH FROM THE JOHNSON COUNTY WILL BE PRESENTING.

TO START OFF WITH.

GOOD MORNING, MAYOR, COUNCIL.

I'M COLT FRIEDRICH. I'M THE JOHNSON COUNTY ENGINEER.

I'D LIKE TO THANK YOU FOR YOUR TIME TONIGHT AND THE OPPORTUNITY TO DISCUSS OUR TRANSPORTATION BOND PROGRAM.

OUR BOND PROGRAM.

THAT WAS RECENTLY AN ELECTION CALLED FOR THE BOND PROGRAM BY THE COMMISSIONERS COURT AT THE AUGUST 12TH MEETING.

OUR BOND PROGRAM IS PRIMARILY FOCUSED ON SYSTEM TXDOT PROJECTS WITH THE GOAL OF IMPROVING SAFETY AND MOBILITY THROUGHOUT THE COUNTY.

HERE TO GIVE YOU A BRIEF OVERVIEW AND ANSWER ANY QUESTIONS ON SPECIFIC PROJECTS THAT YOU MAY HAVE.

AS CHRIS BOSCO WITH FREESE AND NICHOLS.

THANK YOU. SO I WANT TO GO THROUGH A FEW SLIDES THAT KIND OF THAT KIND OF GOES OVER WHAT COLT HIGHLIGHTED IN TERMS OF WHAT WE'RE FOCUSED ON IN THE PROGRAM.

DOESN'T NEED TO HIT ANYTHING HERE.

GOOD DEAL. THANK YOU.

SO ONE OF THE THINGS IS LIKE, WHY? WHY DO COUNTIES DO BOND PROGRAMS? AND SO WE WANTED TO KIND OF HIGHLIGHT SOME OF THE MAJOR THEMES THERE.

SO ONE OF THE THINGS I KNOW YOU ALL HAVE EXPERIENCED BUT MANY COUNTIES HAVE THAT ARE KIND OF THE PERIMETER COUNTIES OF THE MAJOR METROPOLITAN AREAS IS TREMENDOUS GROWTH IN THE LAST YEARS WITH PEOPLE MOVING INTO TEXAS AND, YOU KNOW, HIGHLY DESIRABLE PLACE TO LIVE LIKE JOHNSON COUNTY.

THERE'S A LOT OF GROWTH, AND IT'S REALLY KIND OF OUTPACED THE TRANSPORTATION SYSTEM.

BOTH THE ON SYSTEM, BUT AS WELL AS COUNTY AND CITY ROADWAYS.

AND SO ONE OF THE ITEMS THE BOND PROGRAMS AIM TO TRY TO ADVANCE THOSE PROJECTS.

AND SO THAT KIND OF LEADS TO BULLET ITEM TWO.

ONE OF THE INITIATIVES IS THIS PROGRAM IS, AS COLT MENTIONED, IS FOCUSED ON A LOT OF ON SYSTEM TXDOT ROADWAYS, IN WHICH THE GOAL OF THE COUNTY IS TO ADVANCE THOSE PROJECTS TO BEGIN THE ENGINEERING ACQUIRE RIGHT OF WAY IF NEEDED, AND GET THOSE PROJECTS POSITIONED TO RECEIVE STATE AND FEDERAL

[00:15:09]

FUNDS. AND SO, IN EFFECT, YOU GET THE PROJECT.

SHOVEL READY IS A TERM THAT'S OFTEN USED SO THAT YOU CAN RECEIVE AND BE BETTER POSITIONED FOR STATE AND FEDERAL FUNDS.

AND ONE OF THE THINGS WE'VE SEEN IS SOMETIMES THERE'LL BE A LARGE PROJECT IN, SAY, THE MAJOR METROPOLITAN AREA THAT GETS DELAYED.

AND IF THE COUNTY HAS A PROJECT READY, IT PUTS YOU AHEAD ON ON GETTING THAT FUNDING FOR YOUR PARTICULAR PROJECT.

AND SO THE PROJECTS THAT TECH STOCKS ALREADY DOING, THEY'RE GOING TO CONTINUE WORKING ON THAT.

AND THE GOAL HERE IS FOR THE COUNTY TO ADVANCE THE NEXT CYCLE OF PROJECTS.

SO IN ADDITION TO THAT IS PARTNERSHIPS WITH COG.

COG HAS BEEN A BIG PARTNER TO ALL THE COUNTIES IN THE METROPLEX THAT THAT IS WITHIN THE COG BOUNDARIES.

AND THAT'S IN ADDITION TO TECH STOCKS.

SO SOME OF THE FUNDS COME FROM TECH STOCK FUNDING, SOME IS REGIONAL FUNDING.

AND SO US ADVANCING PROJECTS AND WORKING WITH THE COG ALLOWS US TO BRING ADDITIONAL FUNDS INTO THE COUNTY.

AND THEN CERTAINLY SAFETY IN THE STREAK IS A CAMPAIGN THAT TECH STOCK HAS.

IF YOU'RE FAMILIAR, IT'S BEEN SINCE 2001.

EVERY SINGLE DAY THERE'S BEEN A DEATH ON A TEXAS ROADWAY.

AND SO THE IDEA IS WHATEVER WE CAN DO TO ADVANCE SAFETY PROJECTS TO END THAT STREAK.

THAT'S A CAMPAIGN THAT THEY HAVE GOING.

THAT'S A CAMPAIGN THAT WE REALLY WANT TO GET BEHIND.

AND THAT'S WHY WE HAVE SEVERAL PROJECTS FOCUSED ON SAFETY.

SO ONE OF THE THINGS IS WHAT WHAT IS A BOND PROGRAM LIKE THIS COST, AS COLT MENTIONED, THE COURT CALLED THE ELECTION FOR $60 MILLION. AND IN A MOMENT, WE'LL GO OVER THE DIFFERENT PROJECTS THAT'S INCLUDED IN THAT.

SO THIS SHOWS YOU WITH AN AVERAGE TAXABLE HOME VALUE IN THE COUNTY OF 251,707 AND JUST UNDER A PENNY INCREASE.

SO THAT WOULD BE ABOUT $25 PER YEAR FOR THE AVERAGE HOME, EQUATING TO ABOUT $2.10 A MONTH.

AND SO THE GOAL IS THAT THERE'S THERE IS A COST TO THIS TYPE OF PROGRAM, BUT WE'RE TRYING TO BRING IN ADDITIONAL FUNDS.

SO LEVERAGING THE LOCAL TAXPAYERS FUNDING TO BRING IN MUCH MORE INVESTMENT DOLLARS IN THE TRANSPORTATION SYSTEM THROUGHOUT THE ENTIRE COUNTY. SO THE NEXT GIVES YOU KIND OF AN OUTLINE OF THE PROJECTS, AND THERE'S A VARIETY OF PROJECTS.

SO ONE OF THE THINGS THAT IS VERY VALUABLE IN THIS PROGRAM IS THERE IS SOME INTERSECTION PROJECTS THAT WE CAN MOVE QUICKLY ON FEASIBILITY STUDIES FOR MORE OF THAT LONG RANGE AREAS THAT'S DEVELOPING IN THE COUNTY, BUT ALSO SOME LARGER PROJECTS.

AND YOU'LL SEE THE THEMES HERE.

THESE ARE KIND OF THEMES AS WE'VE WORKED WITH THE STEERING COMMITTEE ALSO, THAT BARED OUT FROM THE THOROUGHFARE PLAN WORK THAT THE COUNTY IS DOING.

WE SOLICIT A LOT OF PUBLIC INPUT THROUGHOUT THAT PROCESS, WHICH IS STILL ONGOING, BUT A LOT OF THE FEEDBACK WE GOT FROM THE PUBLIC MEETINGS WE'VE INCORPORATED INTO THIS PROGRAM.

SO ONE OF THE KEY ITEMS YOU SEE IS ALL THE RAILROADS.

AND I KNOW YOU ALL BEING RESIDENTS HERE CERTAINLY ARE FAMILIAR WITH THE RAILROAD NETWORK IN THE COUNTY, WHICH HAS A LOT OF VALUE, BUT IT DEFINITELY CREATES BOTTLENECKS ON THE TRANSPORTATION SYSTEM.

SO THAT'S A KEY THEME.

YOU CAN SEE FROM THIS MAP THE NEED FOR EAST WEST ARTERIAL IMPROVEMENT.

AND SO YOU HAVE THE MAJOR NORTH SOUTH ROADS AND LOOKING FOR AN EAST WEST THAT CAN CONNECT TO THOSE AND HELP FACILITATE THAT THROUGH THE COUNTY. I MENTIONED THE FEASIBILITY STUDIES.

SO ONE OF THE ELEMENTS WHEN YOU HAVE A PROJECT THAT'S MORE LONG RANGE AND BUT DEVELOPMENTS HAPPENING, YOU WANT TO MAKE SURE YOU IDENTIFY THOSE ROUTES SO THAT A DEVELOPMENT DOESN'T PRECLUDE THAT ALIGNMENT FROM HAPPENING.

SO THAT'S ANOTHER KEY ELEMENT WITH KIND OF THE SOUTHERN AND WESTERN PORTIONS OF THE COUNTY TO LOOK AT THOSE ULTIMATE ROUTE STUDIES, DO THE PUBLIC INVOLVEMENT AND WORK ON DEVELOPING THAT ROUTE, AND SO THAT WE CAN WORK WITH TECH STOCK TO ULTIMATELY GET THAT PROJECT FUNDED.

AND THEN, AS I MENTIONED, SAFETY AND MOBILITY IS PARAMOUNT.

AND SO THERE'S A NUMBER OF PROJECTS THAT REALLY KIND OF HIT ON THAT.

SO THIS THESE NEXT SLIDES KIND OF GIVE YOU A VISUAL.

SO THE KIND OF REDDISH ORANGE COLOR THERE REPRESENTS ALL THE RAILROADS RUNNING THROUGH THE COUNTY.

AND YOU'LL SEE EACH OF THE PROJECTS THERE IN BLUE ARE PROJECTS IN THE BOND PROGRAM.

AND SO THE ONE IN RED IS AN ACTIVE TECH STOCK PROJECT THERE.

AND JOSHUA, I THINK ONE OF NOTE IN THE BURLESON AREA IS THE HULEN BRIDGE, WHICH THAT'S PROJECT 2.2.

[00:20:05]

YOU KNOW, THAT ONE'S RATHER UNIQUE WITH IT BEING AT A LOW WATER CROSSING AND NEEDING A GRADE SEPARATION OVER THE RAILROAD THERE.

AND SO, THAT'S A KEY PROJECT THAT WE WANT TO LOOK FOR OPPORTUNITIES TO GET FEDERAL FUNDS.

THERE'S A LOT OF FEDERAL RAILROAD MONEY, THAT WE'VE EVEN IN OUR INITIAL MEETING WITH COG, THAT WAS ONE OF THE THINGS THEY BROUGHT UP AS THE OPPORTUNITY TO MAYBE GET SOME FEDERAL RAILROAD SAFETY MONEY FOR THAT PROJECT.

SO THAT'S A KEY ONE.

THIS NEXT SLIDE DOES SHOW YOU 917.

SO WHAT YOU SEE IN RED THERE IS ACTIVE IMPROVEMENTS THAT TECH STOCKS DOING ON 917 TO THE EAST.

AND THEN THE JOSHUA RAILROAD CROSSING THAT I MENTIONED EARLIER.

ANOTHER KEY ONE THAT I DIDN'T MENTION ON THE PRIOR SLIDE IS PROJECT 3.1, WHERE 917 AND 2280 KIND OF CONVERGE AT THAT RAILROAD CROSSING. SO THAT'S ANOTHER ONE.

WE WANT TO GET A GRADE SEPARATION OVER THE RAILROAD IN THAT LOCATION, BUT ALSO THAT THE EAST WEST ARTERIAL, LIKE WE MENTIONED, IS TO BUILD UPON THE WORK TECH'S ALREADY DOING AND TO GET PHASES, THE NEXT PHASES READY SO THAT WE CAN GET CONSTRUCTION FUNDING TO BUILD THOSE.

AND SO THAT'S KIND OF THAT KEY EAST WEST ARTERIAL.

THE FEASIBILITY STUDY.

SO ONE OF THE THINGS YOU'LL SEE HERE IS WE HIGHLIGHTED FM 2331 IN OUR INITIAL CONVERSATIONS WITH TXDOT, THE THINKING WOULD BE THAT MAYBE THAT GETS REALIGNED.

AND SO YOU KNOW, IT BEING ABLE TO GO TO 174 ALL THE WAY UP TO THE NORTHERN BOUNDARY OF THE COUNTY.

CURRENTLY IT RUNS THROUGH THE MIDDLE OF GODLEY, BUT THE THINKING IS PROJECT 1.1.

ULTIMATELY YOU WOULD HAVE A GRADE SEPARATION OVER 171 AND THE RAILROAD AND PROVIDE THAT THAT ALTERNATIVE ROUTE ALONG THE WEST LEADING DOWN TO THE SOUTH.

AND THEN CERTAINLY WHAT YOU SEE AROUND CLEBURNE IS TRYING TO GET THE TRUCK TRAFFIC OUT OF THE DOWNTOWN LOOKING FOR THE MOST DESIRABLE ALTERNATE ROUTE THERE. SO THAT KIND OF GETS YOU A HIGHLIGHT OF THE FEASIBILITY STUDIES TO KIND OF MAKE SURE WE CAN IDENTIFY THAT ROUTE AND PROTECT THE RIGHT OF WAY AS DEVELOPMENTS OCCURRING IN THAT PORTION OF THE COUNTY.

SO THE SAFETY AND MOBILITY, WHAT YOU SEE ON THIS MAP IS ACTUALLY A CRASH DENSITY.

SO YOU SEE THE HOTSPOTS THERE.

OF COURSE, I'M SURE YOU'RE ALL FAMILIAR WITH THE ONES IN IN BURLESON.

BUT WHAT WE WANTED TO IDENTIFY IS A NUMBER OF PROJECTS THAT ARE IN AND AROUND THOSE HOTSPOTS.

SOME OF THEM ARE MORE SAFETY IMPROVEMENTS ALONG 67, BUT INTERSECTION IMPROVEMENTS LIKE PROJECT 3.2.

AND TO REALLY WE WANTED TO KIND OF LOOK AT THOSE HOTSPOTS AND START ADDRESSING THEM.

ONE OF THE THINGS I DIDN'T SHOW IN THE SLIDE IS THERE'S OBVIOUSLY A NUMBER OF ONGOING TECH STOCK PROJECTS THAT ARE OCCURRING, THE DEVELOPMENT ALONG I-35.

I MENTIONED THE 917, SO WE WERE LOOKING FOR IS PROJECTS THAT KIND OF COMPLEMENT WHAT'S ALREADY IN THE WORKS.

AND WE'VE HAD A NUMBER OF MEETINGS WITH TXDOT TO GET THEIR INPUT AS WELL AS WITH THE STEERING COMMITTEE.

SO THIS GIVES YOU A COUPLE OF KEY DATES.

CULT HIT ON THE AUGUST 12TH IS WHEN THE COURT CALLED THE ELECTION.

Y'ALL ARE OUR FIRST MEETING.

YOU KNOW, WHAT WE'RE TRYING TO DO IS EDUCATE THE PUBLIC ON WHAT'S INCLUDED IN THE BOND PROGRAM AND GET ANY KIND OF QUESTIONS THAT WE CAN. AND SO LEADING UP, WE HAVE A NUMBER OF THESE WITH DIFFERENT COUNCILS.

WE'RE ALSO PLANNING A TOWN HALL MEETING THAT WE WANT TO COMBINE WITH THE THOROUGHFARE PLAN MEETING TO GET AS MANY FOLKS OUT TO LEARN ABOUT THE BOND PROGRAM. SO EARLY VOTING BEING OCTOBER 21ST THROUGH NOVEMBER 1ST AND THEN WITH ELECTION DAY ON THE FIFTH.

WE'RE DOING A NUMBER OF THESE MEETINGS.

WE'RE ALSO WORKING ON SOME EDUCATIONAL VIDEOS TO BE ABLE TO SHARE.

AND SO THAT THAT WILL HELP EDUCATE THE PEOPLE ON EACH OF THESE PROJECTS.

THIS IS A WEBSITE, SO IT HAS JENNIFER'S CONTACT INFORMATION THERE.

YOU SEE THE QR CODE AND THE URL THERE.

THE GOAL IS TO HOUSE EVERYTHING.

SO AS WE DO PRESENTATIONS WE'LL PUT IT ON THIS SITE.

WE ACTUALLY PUT TOGETHER A KIND OF A FLIER THAT'S BASICALLY CONDENSES THIS PRESENTATION INTO TWO PAGES THAT PEOPLE CAN DOWNLOAD OFF OF THE WEBSITE TO GET ANY OF THAT INFORMATION.

[00:25:05]

AND THAT BEING KIND OF THE EDUCATIONAL HUB, AND AS WE DEVELOP SOME VIDEOS THAT THAT SUMMARIZE THE PROGRAM WILL PUT ON THE HOME PAGE THERE AS WELL.

SO THAT CONCLUDES THE OVERVIEW AND HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.

WHAT'S THE SCHEDULING ON THE PRESENTATIONS? I WENT TO THE PARKER COUNTY, ONE OF THOSE CITY HALL MEETINGS.

AND HOW DO YOU GET THE WORD OUT? YEAH. SO, WHAT WE'RE WORKING ON NOW IS TO UPDATE THE WEBSITE.

WE HAVE A EVENTS TAB.

AND SO WE'VE SET ALL THOSE DATES AND I'LL GET ALL THOSE DATES ON THE WEBSITE SO PEOPLE CAN SEE THE UPCOMING MEETINGS.

WE'RE TRYING TO GET SCHEDULED, THE TOWN HALL MEETINGS.

SO WE'LL ALSO PUBLISH THAT ON THE WEBSITE SO THAT EVERYONE CAN KNOW WHEN THAT MEETING WILL BE.

WE'RE TRYING TO GET THE VENUE FOR THAT AT THE MOMENT AND THE WEBSITE IS GREAT, BUT HOW'S THE WORD GETTING OUT? DO YOU UNDERSTAND WHAT I'M SAYING? I MEAN, HOW ARE YOU GOING TO TELL THEM TO GO TO THE WEBSITE.

HOW DID Y'ALL DO IT IN PARKER COUNTY? SO WE THE IDEA IS THAT WE'VE HAD THESE MEETINGS AND TRY TO, YOU KNOW, FOR PEOPLE THAT FOLLOW YOUR COUNCIL.

AND THEN AS WE GET THE VIDEOS DONE, WE'LL SHARE THAT THROUGH A SOCIAL MEDIA AND USE THAT TO KIND OF GET PEOPLE EDUCATED ON THOSE VIDEOS.

THAT POINTS PEOPLE TO THE WEBSITE.

AND WE'RE TRYING TO GET AS MANY.

THERE ARE SEVERAL LUNCHEONS THAT WE HAVE PLANNED AS WELL TO TARGET THOSE IN ADDITION TO THE COUNCIL MEETINGS.

ARE YOU GOING TO BE DOING ANYTHING WITH THE BURLESON CHAMBER? DID WE HAVE THE BURLESON CHAMBER? I KNOW THAT WE HAD SEVERAL PLANNED THAT HAVE BEEN REQUESTED.

YES. THERE ARE DIFFERENT COMMUNITY GROUPS HERE IN THE BURLESON AREA, AS WELL AS THE REST OF THE COUNTY.

WE'VE REACHED OUT TO THOSE CONTACTS TO REQUEST AN OPPORTUNITY TO MAKE THIS SAME PRESENTATION, TO HELP EDUCATE THE VOTERS.

OKAY. IS THERE ANYTHING THAT COUNCIL CAN DO TO HELP YOU KNOW, I KNOW THAT YOU GUYS HAVE SOCIAL MEDIA AS WELL.

SO, YOU KNOW, AS WE PRODUCE THESE MATERIALS, IF IT'S ABLE TO BE, YOU KNOW, SHARED THROUGH THE CITY'S SITE TO KIND OF POINT THEM TO THE WEBSITE.

AND FOR THEM TO BE ABLE TO VIEW THE INFORMATION WE PRODUCE WOULD BE GREAT.

OKAY. I THINK IT'S REALLY HELPFUL TO BRING IT HOME.

SO WE NEED TO EDUCATE PEOPLE ON WHAT'S GOING TO BE GOING ON THAT WILL DIRECTLY IMPACT OR AFFECT THEM.

YOU'RE SPEAKING HERE TO BURLESON CITIZENS, AND THERE IS A BIG CHUNK OF OUR CITY THAT IS IN JOHNSON COUNTY.

SO, YOU KNOW, IT'S, I WOULD RECOMMEND HAVING WHILE THE MAPS ARE HELPFUL, IT KIND OF SHOWS JUST ABOUT WHERE THINGS ARE LOCATED.

BUT WE AND MYSELF AND DAN MCCLENDON AND ALEX PHILLIPS HAVE SERVED ARE SERVING CURRENTLY ON THE STEERING COMMITTEE.

AND SO YOU SEE OUR FACES PERIODICALLY, AND IT'S JUST HELPFUL TO BE ABLE TO SAY SPECIFICALLY LIKE THE INTERSECTION THAT'S GOING TO BE IMPACTED.

SO WHILE ON A MAP, IT'S LIKE, OKAY, I SEE 2.2 IS IN BURLESON, BUT WHAT EXACTLY IS THAT? AND WHEN YOU SAY TO OUR CITIZENS, WE'RE GOING, WE'RE LOOKING FOR FUNDING.

AND THIS BOND WOULD HELP, HELP DIRECT SOME SPECIFIC FUNDS TO ADDRESSING THE RAIL CROSSING AT HULEN.

I MEAN, WHEN YOU SAY THAT IT PIQUES INTEREST BECAUSE IT'S CLOSED OFTEN, IT DOES NOT TAKE MUCH RAIN FOR THAT TO CLOSE BECAUSE IT'S NOT REALLY MEANT TO BE AN UNDERPASS. IT'S A CREEK BED, AND THERE'S SO MUCH DEVELOPMENT HAPPENING OFF OF HULIN.

THE CITY HAS LAND OUT THAT WAY.

THERE'RE CRAFT MASTERS, A TRADE SCHOOL COMING IN OFF OF 121.

SO THERE'S GOING TO BE SO MUCH TIE IN.

THERE'S ALREADY A LOT OF RESIDENTS THAT LIVE THERE.

AND THAT HULIN, IT'S UGLY AND WE ABSOLUTELY NEED TO BRING SOME ATTENTION TO IT.

FIND SOME FUNDING THAT CAN ADDRESS THE RAILROAD CROSSING, BECAUSE THAT'S A THAT'S A HEAVILY USED AVENUE IN AND OUT OF THAT SIDE OF TOWN.

SO I THINK HAVING BEING SPECIFIC ABOUT AREAS THAT WE'RE ADDRESSING, WHILE MAPS ARE HELPFUL AND IT SHOWS, YOU KNOW, HOTSPOTS AND AREAS THAT WE'RE ADDRESSING, BUT WHEN WE BRING IT HOME AND POINT DIRECTLY TO THIS IS GOING TO BE HULEN OR THE OTHER PROJECT THAT WE'RE LOOKING AT FOR THAT'S HEAVILY IMPACTS CITIZENS IS THE INTERSECTION OF 714 AND 731.

I MEAN, THERE THAT DOBSON TURNS INTO 714 AND IT IS SO HEAVILY USED.

BUT VERY SOON, LIKE IN THE NEXT YEAR WHEN 174 STARTS UNDER CONSTRUCTION AND WE GET LANE EXPANSIONS.

DOBSON IS GOING TO BE USED.

EVEN AN INTERSECTION WILL BECOME CRITICAL TO HAVE SAFETY IMPROVEMENTS AND AGAIN BRING SOME ATTENTION TO IT SO THAT WE'RE APPROPRIATELY ADDRESSING THAT.

[00:30:07]

THIS IS, AGAIN, COUNTY.

SO WE HAVE TO PUT IN PERSPECTIVE THAT YOU ALL HAD TO LOOK AT A BIG LIST OF WISHES.

WE BASICALLY ALL CAME TO THE TABLE AND SAID IT WOULD BE GREAT IF YOU DID THIS, THIS, THIS AND THIS, AND THEN WE HAD TO NARROW IT DOWN.

AND THEN ULTIMATELY THE COURT DECIDED WHAT WOULD BE INCLUDED IN THIS BOND PACKAGE.

BUT SO BASICALLY A LITTLE BIT OF EVERY PRECINCT AND YOU MIGHT WEIGH IN ON THIS COMMISSIONER HAD TO BE REPRESENTED OR THAT WAS THE GOAL OF THIS PACKAGE IS TO GIVE A LITTLE BIT TO EVERY PRECINCT AND TRY REALLY HARD TO NARROW DOWN THOSE PROJECTS THAT ARE KIND OF BEEN ON THE BRINK, LIKE, OH, YOU KNOW, THERE'S ALREADY SOME WORK GOING ON 917.

WOULDN'T IT BE AWESOME IF WE COULD ADDRESS THIS RAILROAD CROSSING BECAUSE IT'S ALREADY ON 917 AND IT IS A TXDOT ROAD? YOU MENTIONED, MR. BOSCO, THAT THESE ARE ON SYSTEM PROJECTS.

SO AGAIN, TO REITERATE, THAT'S TXDOT SPECIFIC.

AND WHAT WE'RE TRYING TO DO HERE WITH THIS TYPE OF PROGRAM IS TO SAY, LET'S PUT SOME SKIN IN THE GAME.

AND SO, TXDOT ULTIMATELY CAN FIND THE FUNDING OR COG TO COMPLETE THESE PROJECTS OR FURTHER THEM ALONG, BECAUSE WE'VE ALL HEARD SHOVEL READY, THAT'S WHAT'S ATTRACTIVE.

AND SO WE WANT TO MAKE OUR PROJECTS THROUGHOUT ALL OF JOHNSON COUNTY THE MOST ATTRACTIVE TO PARTNERSHIPS WITH TXDOT AND COG.

SO I WOULD JUST AGAIN LIKE TO REITERATE, LIKE ON THE WEB, I HAVEN'T LOOKED AT THE WEBSITE YET.

I KNOW I SAW THIS PRESENTATION IN OUR IN OUR NOTES AND I REVIEWED IT, BUT I HAVEN'T LOOKED AT THE WEBSITE YET.

BUT SPECIFICALLY, BEING SPECIFIC ABOUT WHERE THEY ARE LOCATED IS HELPFUL BECAUSE PEOPLE WANT TO KNOW HOW DOES IT IMPACT ME IF I'M GOING TO BE PAYING TOWARD THIS, WHAT KIND OF IMPROVEMENTS AM I GOING TO SEE IN MY DAILY ROUTES? TAKING MY KIDS TO SCHOOL, RUNNING TO CLEBURNE TO DO BUSINESS IN THE COUNTY, ALL OF THESE THINGS AND GENUINELY APPRECIATE JENNIFER AND COLT AND COMMISSIONER FOR BEING HERE AS WELL TO SUPPORT THIS AND GIVE US INFORMATION ON IT.

JUST JUST REAL QUICK.

AND I WILL ADDRESS, FOR INSTANCE, THE 714 AND 731, ALTHOUGH THAT'S NOT REALLY A PINPOINTED PROJECT.

OUR IDEA WAS TO PINPOINT THESE REALLY BAD, THESE REALLY CRITICAL AREAS, BUT AT THE SAME TIME HAVE THAT AVAILABILITY AS OTHER THINGS BEGIN TO CHANGE, LIKE THE 731 EXPANSION AND WHAT HAVE YOU BE ABLE TO LOOK FOR FUNDING TO TAKE CARE OF THOSE? AND THAT WILL BE A CRITICAL SPOT THERE AT 714 AND 731, YOU KNOW, THAT'S 714 IS CITY, COUNTY, CITY, COUNTY AND CITY.

IT'S DIVIDED UP, I THINK, FIVE DIFFERENT TIMES THROUGH THERE.

AND, AND WE WORK MYSELF AND THE CITY WORK REAL GOOD TRYING TO KEEP IT UP.

BUT THAT'S A VERY, VERY, VERY HEAVILY TRAVELED ROAD THROUGH THERE.

AND JUST LIKE THE BRIDGE.

YOU KNOW WHAT YOU GUYS CONSIDER TO BE SOUTH HULEN TO ME IS COUNTY ROAD 920.

BUT MY OFFICE IS AT 920 AND 1902, AND I CAN SIT THERE IN MY OFFICE AND THAT IT'S A SOLID LINE OF TRAFFIC FROM SOMEWHERE AROUND 630 IN THE MORNING TILL ABOUT 9-10:00, YOU'LL GET A LITTLE BIT OF A BREAK AND THEN IN THE AFTERNOON.

THAT'S A SOLID LINE AND I HATE TO SAY IT.

AND WE HAD ONE JUST LAST FRIDAY.

BUT THERE HAVE BEEN MULTIPLE SERIOUS ACCIDENTS RIGHT THERE.

SO YOU KNOW AND WE'VE ASKED TXDOT MULTIPLE TIMES ABOUT PUTTING A RED LIGHT THERE OR A FLASHING LIGHT OR WHATEVER.

SO THAT HEALING IS GOING TO BE ONCE THE COLLEGE IS OUT THERE AND EVERYTHING ELSE IS GOING TO BE VERY HEAVILY.

BUT WE'RE TRYING TO LEAVE ROOM FOR EVERYBODY'S INFORMATION TO BE ABLE TO GO BACK AND PICK THOSE PROJECTS UP.

AND TO YOUR POINT ON THE SPECIFICITY ON THE WEBSITE, CITIZENS CAN CLICK ON INDIVIDUAL PROJECTS AND IT WILL GIVE THEM A OVERVIEW OF WHAT THE PROJECT IS SUPPOSED TO BE AND WHERE EXACTLY IT'S LOCATED, AND WHAT THE PLANS ARE FOR IT.

YEAH, WE UPLOADED THE FACT SHEET.

SO WHEN YOU GO TO THE PROJECTS PAGE OR YOU CAN EITHER CLICK ON THE MAP, THERE'S A DYNAMIC LINK THERE OR THE PROJECT DESCRIPTION, AND IT WILL BRING YOU TO A MORE ZOOMED IN WITH A DESCRIPTION AND, YOU KNOW, TELLING A LITTLE BIT ABOUT THE PROJECT.

SO IT GIVES A, YOU KNOW, A LITTLE BIT DEEPER DIVE THAN WHAT THE OVERVIEW HAS.

I KNOW THE MAYOR TOUCHED ON PARKER COUNTY, BUT THEY HAVE REALLY SET THE TONE FOR HOW TO BRING ATTENTION TO THEIR COUNTY AND DOLLARS AND MAKE PROJECTS MOVE.

I MEAN, TEN, 12 YEARS AGO, THINGS LOOKED A LOT DIFFERENT.

IF ANYONE GOES SHOPPING IN PARKER COUNTY OR GOES DOWN I-20.

IT LOOKS SO DIFFERENT, AND THEY GOT ATTENTION BY CONSIDERING BOND PACKAGES AND FINDING NEW WAYS AND CREATIVE PARTNERSHIPS WITH

[00:35:08]

TXDOT TO GET THEIR STUFF MOVING.

AND SO APPRECIATE THE COMMISSIONERS COURT CONSIDERING THINKING OUTSIDE OF THE BOX AND TRYING TO FIGURE OUT HOW DO WE ADVANCE OUR STAFF, HOW DO WE GET SOME ATTENTION HERE? THE WEST SIDE'S HAD ITS ATTENTION.

IT'S OUR TURN NOW. SO THANK YOU.

THANK YOU. YOU KNOW, ONE OF THE THINGS THAT I WANT TO BRING UP IS YOUR SUCCESS STORY.

AND WHEN VICTOR VANDERGRIFF ASKED ME TO GO TO PARKER COUNTY AND SET IN ON THIS THING, THERE WAS ONLY LIKE A HALF DOZEN PEOPLE IN THE ROOM, AND Y'ALL WAS PRESENTING TO THEM.

BY THE TIME YOU GOT THROUGH EXPLAINING THE SUCCESS STORY WITH PARKER COUNTY, AND THEY'RE ON THEIR SECOND RUN ON THIS, THIS IS THEIR SECOND BOND COMING UP.

WHAT WAS THE SUCCESS RATE ON VOTING FOR THE BOND IN PARKER COUNTY? IT WAS LIKE 60 OR 70% POSITIVE, OR SOMETHING WASN'T IT? YEAH, YEAH, IT WAS LOW.

LOW 60, YOU KNOW, AT THIS LAST ELECTION WAS, I THINK, LIKE 61 OR SO.

BUT THE THING ABOUT IT IS EVERYBODY IN THAT ROOM IS, WELL, WE NEED TO GO TALK TO THEM AND WE NEED TO GO TALK TO THEM.

THIS IS A GAME CHANGER, THE WAY YOU'RE DOING THIS BECAUSE OF THE FEDERAL FUNDS AND THAT WE NEED TO GET THAT STORY OUT THERE THAT WE ARE MATCHING WHAT WE'RE DOING WITH THE FEDERAL GOVERNMENT, WHICH IS JUST AMPLIFYING OUR CAPABILITY HERE.

AND I KNOW Y'ALL REALLY NEED TO GET THAT OUT TO THE CITIZENS.

WE'RE NOT THIS ISN'T YOUR FIRST RODEO.

AND WE HAVE GOT A MINDSET IN JOHNSON COUNTY THAT THEY HATE BONDS.

SO YOU REALLY GOT TO YOU GOT TO PUSH THIS.

AND IF THERE'S ANYTHING ME PERSONALLY CAN DO, IF I CAN GO OUT THERE AND TALK ABOUT IT OR MEET WITH PEOPLE OR ANYTHING, WE NEED TO ALL DO THIS.

WE NEED TO PUSH THIS.

EVERY TOWN NEEDS TO PUSH THIS BECAUSE IT'S A GREAT PROGRAM OF THIS WHOLE THING IS SET UP.

ONE OF THE THINGS I LEARNED THAT YOUR SHOVEL READY IS NOT JUST THE ENGINEERING.

IT'S THE ENGINEERING.

CORRECT ME IF I'M WRONG.

THE ENGINEERING, THE EPA, MOVING UTILITIES, AND ALSO PURCHASING THE RIGHT OF WAY.

IS THAT CORRECT? YES, SIR. YEAH. AND THAT'S THE WAY THIS PROGRAM IS BUILT AS WELL.

SO, YOU KNOW, WHEN YOU WORK ON SYSTEM, THERE'S AN EXTENSIVE ENVIRONMENTAL.

SO THAT'S A KEY ELEMENT.

SO IT'S DOING THE ENGINEERING, THE ENVIRONMENTAL STUDIES AND THEN PURCHASING RIGHT OF WAY.

AND THAT'S AN ELEMENT THAT WE PARTNER WITH THE STATE ON AS WELL.

USUALLY THE COUNTY ADVANCES THE ENGINEERING AND THE STUDIES.

BUT SOMETIMES WE DO HAVE TECH STOCK BUY THE RIGHT OF WAY AND THEN SOMETIMES THE COUNTY BUY BASICALLY WHATEVER GETS THE PROJECT DONE QUICKER.

THAT'S THE DECISION OF WHETHER RIGHT OF WAYS PURCHASE.

BUT THE PROGRAM HERE INCLUDES THE RIGHT OF WAY PURCHASE AND THE COST.

THIS IS GREAT FOR JOHNSON COUNTY AND I APPRECIATE IT.

ANYBODY ELSE? I GOT A QUESTION, MR. MAYOR. THIS MAY BE FOR THE COMMISSIONER.

I'M PRETTY MUCH IN THE DARK ON THIS.

WHAT I'VE READ IS A GREAT IT'S A GREAT THING THAT YOU'RE DOING.

AND I APPRECIATE ALL THE WORK.

AND THE MATCHING FUNDS THAT MAY COME DOWN THE ROAD FROM FEDERAL OR STATE ARE GOING TO BE WELCOMED.

BUT AS FAR AS PREPARING FOR THIS, MYSELF AS A COUNCIL MEMBER AND MAYBE THE CITY MANAGER MAY BE ABLE TO ANSWER THIS FOR ME.

AND I PROBABLY SHOULD HAVE ASKED HIM BEFORE I CAME TO THE MEETING.

BUT I KNOW THAT YOU HAVE AN INTERLOCAL AGREEMENT WITH CLEBURNE IN THEIR ETJ TO MANAGE THEIR SUBDIVISION, FLOOD WATER RUNOFF, AND GIVES YOU AUTHORITY OVER SOME OF THE ROADS.

ARE WE GOING TO NEED THAT AGREEMENT WITH BURLESON IN ORDER FOR COUNTY BOND FUNDS TO BE SPENT OR LEVERAGED IN BURLESON? I'M GETTING ADVICE FROM JENNIFER WHILE I'M TRYING TO ANSWER YOUR QUESTION, AND I THINK THAT'S A TOTALLY SEPARATE THE INTERLOCAL WOULD BE TOTALLY SEPARATE FROM THIS BOND PROPOSAL, AM I NOT CORRECT? YES. SO FOLLOWING THE ELECTION, LIKE THE HULEN PROJECT, THERE WOULD BE AN INTERLOCAL TO ALLOW THE COUNTY'S CONTRACTOR TO WORK WITHIN YOUR CITY.

SO THERE WILL BE INDIVIDUAL INTERLOCAL INSTEAD OF JUST ONE.

OKAY. YES, SIR.

AND THAT WILL BE WORKED OUT WITH THE CITY MANAGER AND STAFF AHEAD OF TIME.

WHAT WILL BURLESON'S ROLE BE IN THIS AS FAR AS FINANCIAL? WELL, WHAT WE'VE THE PROJECTS WE HAVE IN HERE, WE BUILT THAT THE COUNTY'S ADVANCING THE SOFT COST, THE RIGHT OF WAY ENGINEERING.

AND THEN WE'RE LOOKING TO GET FEDERAL OR STATE FUNDS TO FUND THE CONSTRUCTION.

SO THERE'S NOT AN ASK FROM THE CITY FINANCIALLY.

OKAY. ALL RIGHT.

LIKE I SAY, I'M IN THE DARK, SO I'M ASKING QUESTIONS THAT YOU PROBABLY TALKED ABOUT FOR SIX MONTHS, BUT I APPRECIATE THOSE ANSWERS.

THANK YOU. AND I'LL APOLOGIZE FOR INSTANCE, YOU SAID YOU'VE BEEN COMPLETELY IN THE DARK.

[00:40:01]

AND YES, WE HAVE BEEN DISCUSSING THIS FOR A LONG TIME, BUT IT WAS BASICALLY JUST MEETINGS AND DISCUSSIONS.

AND CAN WE AND CAN WE NOT AND ARE WE AND YOU KNOW, THIS IS THE FIRST TIME WE'VE EVER DONE THIS AS A COUNTY.

AND THEN ON THAT 12TH MEETING, WHEN THE COURT, THE ENTIRE COURT VOTED TO GO FORWARD WITH IT IS ACTUALLY WHEN THEN WE WERE ALLOWED TO GET UP AND MEET WITH PEOPLE, YOU KNOW, WITH CITY COUNCILS AND WHAT HAVE YOU AND TALK ABOUT WHAT'S GOING ON.

SO, I APOLOGIZE FOR THAT.

BUT MAYBE WE CAN GET THE WORD OUT THERE NOW.

OKAY. THANK YOU. THANK YOU.

ANYTHING I CAN DO TO HELP, LET ME KNOW.

THANK YOU, SIR. I GUESS THE ONLY QUESTION I HAVE IS OUT OF THE 60 MILLION, IS THERE A WAY TO PUT ON THE WEBSITE WHAT EACH LIKE HOW THAT MONEY IS GOING TO BE SPENT? AND LIKE EACH LINE ITEM, EACH PROJECT 2.1, 2.2.

LIKE WHAT DOLLAR AMOUNT IS GOING TO BE ALLOCATED TO EACH ONE? YEAH, WE COULD PROVIDE SOME.

YOU KNOW WHAT ONE OF THE THINGS WE DO, YOU KNOW, WITH I KNOW YOU ALL HAVE EXPERIENCED INFLATION TOO, BUT WE BUILD CONTINGENCY INTO EACH PROJECT TO, YOU KNOW, PROTECT YOU KNOW, THE COUNTY AS, AS COST INCREASE.

BUT, YEAH, WE, WE WENT THROUGH WITH THE COMMITTEE BASICALLY A COST ON EACH PROJECT OUTLINE WHAT THE ENGINEERING RIGHT OF WAY AND CONSTRUCTION WOULD BE.

WE DID ESTIMATES FOR THAT RIGHT ON THE WEBSITE.

YOU MIGHT WANT TO, IF IT'D BE HELPFUL TO PUT THE COST ON THERE.

OKAY. YOU KNOW ON EACH ITEM.

SO THAT WAY EVERYBODY CAN SEE WHERE THE 60 MILLION IS GOING AND HOW IT'S BROKEN UP WITH ALL THE PROJECTS.

OKAY. OKAY.

ALONG WITH WHAT ADAM WAS SAYING WE'VE BEEN HAVING LOTS OF DISCUSSIONS AROUND THE CITY OF BURLESON.

AND ONE THING THAT SEVERAL CITIZENS HAVE SAID WAS, YOU KNOW, CAN YOU TELL US WHAT IS A BREAKDOWN OF WHAT IS BEING SPENT ON WHAT PROJECT AND THEN FOLLOWING THROUGH? THIS IS HOW MUCH MONEY IS GOING TO BE SPENT ON THIS.

AND SO THEY DON'T FEEL LIKE THEY'RE IN THE DARK.

YOU KNOW, THE 60 MILLION IS A LOT OF MONEY, AND THEY WOULD JUST LIKE TO KNOW WHAT IT IS THAT THEY'RE VOTING ON AND MAKING IT CRYSTAL CLEAR, LIKE WE'RE GOING TO HAVE THIS RAILROAD OVERPASS AREA TAKEN CARE OF.

AND THE MORE THE MORE COMMUNICATION THAT YOU HAVE OUT THERE, I FEEL LIKE THE MORE THAT THE CITIZENS, YOUR BUY IN IS GOING TO BE GREATER.

OTHERWISE, THEY'RE GOING TO SHOW UP TO VOTE AND THEY WON'T KNOW WHAT THEY'RE VOTING ON.

SO JUST MAKING IT CRYSTAL CLEAR WHAT IT IS, I THINK YOU WOULD HAVE A MUCH BETTER OUTCOME.

OKAY. THANK YOU.

I WAS PRIVILEGED TO BE ABLE TO OFFER MY INPUT ON ALL OF THIS DURING THE THE DISCUSSIONS THAT WE'VE HAD.

THAT AND I WANTED TO CONGRATULATE YOU ALL AND THANK YOU FOR THE APPROACH THAT YOU TOOK IN ORDER TO BRING AS MANY MINDS INTO THE PLANNING AND EXECUTION OF THIS AS POSSIBLE.

AND I THINK IT'S A BRAVE STEP FOR THE COUNTY OF THE COMMISSIONERS COURT DESERVES A LOT OF CREDIT FOR HAVING THE RECOGNIZING AND FULFILLING THE NEED TO TELL THE PEOPLE YOU'RE GOING TO NEED TO SPEND SOME MORE MONEY TO MAKE THINGS BETTER AROUND HERE.

STICK AROUND A WHILE AND YOU'LL SEE SOMETHING LIKE THAT HAPPEN HERE WITH US AT TONIGHT'S AGENDA, BECAUSE WE'RE GOING TO HAVE TO MAKE VERY SIMILAR, SOMETIMES PAINFUL DECISIONS TO LET THE PEOPLE KNOW THAT WE NEED TO BE DOING MORE ABOUT THESE PROBLEMS THAN WE HAVE IN THE PAST.

BUT FOR Y'ALL, BEING THE FIRST TIME AROUND, THE LANDMARK DECISION.

KUDOS TO YOU FOR YOUR FORESIGHT, FOR YOUR WISDOM.

AND AND THANK YOU FOR ALLOWING US TO TO PLAY A ROLE IN THAT.

AND I'M SURE THE MAYOR AND I WOULD AGREE THAT WE'LL DO EVERYTHING WE CAN TO HELP FURTHER THE SITUATION AND GET THIS BALL ROLLING IN THE RIGHT DIRECTION.

SO THANK YOU. ANYBODY ELSE PROUD OF YOU GUYS.

THANK YOU ALL VERY MUCH FOR DOING THIS.

THANK YOU FOR HAVING US.

YES. THANK YOU. AND I WANT TO THANK DAN AND VICTORIA FOR CONTINUING TO SERVE ON THAT STEERING COMMITTEE AND BEING ON IT.

THANK YOU ALL FOR FOR BEING WILLING TO TAKE THE TIME TO DO THAT.

WE APPRECIATE IT. THANK YOU.

THANK YOU, MAYOR AND COUNCIL, THAT WILL BRING US BACK ON SCHEDULE HERE TO THE REGULAR AGENDA.

[Items 6A - 6J]

THAT BRINGS US TO SECTION SIX BUDGET.

BUDGET ITEMS 6.A THROUGH 6.J WILL HAVE ONE PRESENTATION.

THE PRESENTER THIS EVENING IS HARLAN JEFFERSON, DEPUTY CITY MANAGER.

MR. JEFFERSON.

THANK YOU, MISS CAMPOS.

GOOD EVENING, MAYOR. MEMBERS OF THE COUNCIL, AFTER YOU TAKE ACTION ON THE BUDGET AND TAX RATE TONIGHT.

THERE'S GOING TO BE A NUMBER OF BACK OFFICE ACTIVITIES THAT THE FINANCE DEPARTMENT ARE BEING ENGAGED IN.

I WANT YOU TO KNOW, WE'VE ADDED SOME ADDITIONAL STAFF MEMBERS TO THE FINANCE DEPARTMENT TO ASSIST WITH THOSE ACTIVITIES.

I WANT TO INTRODUCE THEM TO YOU.

THE FIRST ONE IS NATALIE TURNER.

SHE'S A NEW SENIOR ACCOUNTANT.

SHE COMES TO US BY WAY OF DELOITTE.

[00:45:01]

SHE'S A CERTIFIED PUBLIC ACCOUNTANT.

SHE'S BEEN WITH US A COUPLE OF WEEKS AND SHE'S MOVING TO TOWN NEXT WEEK.

THE OTHER ONE IS A NEW FINANCE DIRECTOR.

GLORIA PLATT IS WITH US TONIGHT.

GLORIA PREVIOUSLY WORKED FOR A PRIVATE FIRM.

SHE HAD HER OWN FIRM.

SHE WORKED FOR THE CITY OF CLEBURNE.

SHE COMES TO US BY WAY OF A RED OAK, WHERE SHE HAD SERVED AS THE ASSISTANT FINANCE DIRECTOR AND MOST RECENTLY, AS THE FINANCE DIRECTOR.

SHE HOLDS CERTIFICATIONS WITH GOVERNMENT TREASURERS, ORGANIZATION OF TEXAS, GOVERNMENT FINANCE, ORGANIZATION OF TEXAS AS WELL, AND FOR THE GOVERNMENT FINANCE ORGANIZATION OF THE NATIONAL FIRM.

SHE DOES BUDGET REVIEWS FOR THEM, SO SHE REVIEWS BUDGETS FROM TAX AND ENTITIES AROUND THE COUNTRY TO MAKE SURE THEY'RE IN COMPLIANCE WITH THEIR CERTIFICATION OF BUDGET, CERTIFICATION, AWARD OR ACHIEVEMENT AWARD.

REGARDING THE PRESENTATION, IN LIGHT OF THE FACT THAT THE COUNCIL HAS BEEN REVIEWING THE BUDGET SINCE MAY OF THIS YEAR ADDITIONALLY, THE CITY MANAGER COMPLETED AND PRESENTED TO YOU A COMPREHENSIVE BUDGET PRESENTATION TO YOU AS WELL AS THE FINANCE COMMITTEE IN EARLY AUGUST.

AND THE PRESENTATION IS IN YOUR PACKET.

TONIGHT WAS THE SAME ONE THAT I PRESENTED LAST WEEK.

IN LIGHT OF ALL OF THAT, OUR PROPOSED ACTUALLY THAT INSTEAD OF GOING THROUGH THE PRESENTATION, THAT STAFF ACTUALLY RESPOND TO QUESTIONS THAT YOU MIGHT HAVE BEFORE YOU CONSIDER THE INDIVIDUAL ITEMS ON YOUR AGENDA TONIGHT.

IF THAT'S NOT ACCEPTABLE, I HAVE THE 40 PAGE SLIDE QUEUED UP THAT I CAN WALK THROUGH.

YOU TALKED US INTO IT.

IS THERE ANY QUESTIONS? I GUESS WE'RE READY TO START.

WELL, I HAVE A QUESTION.

OH. GO AHEAD. OKAY.

AGAIN, I FEEL LIKE I'M GOING ON REPEAT FROM WHAT I WAS SAYING JUST A MINUTE AGO.

I DID SPEAK WITH SEVERAL CITIZENS, BUSINESS OWNERS AND SO ON.

REGARDING THE TAX INCREASES AND THE FEES AND SO ON.

IT WAS VERY ENLIGHTENING TO SAY THE LEAST.

THE BIG THING THAT CAME OUT IS TRANSPARENCY WHICH WE'VE KIND OF TALKED ABOUT A COUPLE OF TIMES, BUT THEY WANT TO KNOW WHAT THEIR TAX DOLLARS ARE BEING SPENT ON.

AND WHICH I DID BRING IT TO THE CITY MANAGER AS WELL.

IS BEING WE'RE USING SOCIAL MEDIA IN MANY WAYS AND EXPECTING PEOPLE TO LOOK ON THE WEBSITE.

AND MANY CITIZENS, THEY DON'T DO THAT.

IT WAS ACTUALLY BROUGHT UP ABOUT, YOU KNOW, WE USED TO GET NEWSPAPER PRINT AND WE'VE KIND OF GOTTEN AWAY FROM THAT IN MANY AREAS.

SO MY SUGGESTION WAS WHAT IF WE HAD ANNUALLY OR BI ANNUALLY SEND OUT A LIST OF AND IT COULD GO IN WITH OUR, YOU KNOW, OUR WATER BILLS OR WHATNOT, BUT A LIST OF WHAT PROJECTS DO WE STILL HAVE? WHAT PROJECTS ARE STILL ANTICIPATED? WHAT'S BEEN COMPLETED? THAT WAY, THE CITIZENS SEE EXACTLY WHERE THEIR TAX DOLLARS AND THIS TAX INCREASE IS BEING SPENT.

BECAUSE SITTING WITH THEM, I CAN TELL THEM, LOOK, THIS IS WHERE IT IS, BUT THEY DON'T GET TO SIT WITH EVERY ONE OF THEM EVERY DAY.

BUT ALL OF THEM THAT IT WAS MENTIONED SEEMED TO FEEL A LITTLE BIT BETTER ABOUT THE DIRECTION THAT WE'RE TRYING TO GET IN, WHICH IS MAKING THE CITY OF BURLESON EVEN BETTER WITH OUR WATER AND WASTEWATER, IN WHICH MANY OF THEM DID NOT KNOW THAT WASTEWATER IS INCLUDED IN, YOU KNOW, WHEN WE GO AND TALK ABOUT OUR ROADWAYS AND SO ON AND ALL THE EXTRA LAYERS OF PROJECT THAT IT REALLY DOES ENTAIL, BUT BASICALLY JUST BEING TRANSPARENT.

MAYOR, COUNCIL, I'LL SPEAK TO THAT PERSONALLY.

I THINK SOME OF YOU KNOW, WHO HAVE BEEN ON COMMITTEE THAT WE TALKED ABOUT OUR ASSET MANAGEMENT POLICY.

WE'VE BEEN SPEAKING ABOUT THAT AT THE COUNCIL LEVEL 2 AT OUR NEXT COUNCIL MEETING, WE'RE GOING TO BE BRINGING THAT ITEM FOR YOU FOR FULL DISCUSSION AT COUNCIL, TALKING ABOUT THE RESULTS OF THAT ANALYSIS.

I'M PLEASED TO REPORT WE'VE GOT SOME DATA DRIVEN DECISIONS FOR YOU TO MAKE NOW.

SO A LOT OF THAT WILL SIMPLY BE ADDING ADDITIONAL TRANSPARENCY.

IF WE KNOW WE HAVE X AMOUNT OF DOLLARS, WE'RE GOING TO HAVE A VERY SPECIFIC MATRIX THAT'S SET UP BASED ON FEEDBACK AND APPROVAL FROM THE COUNCIL ON THE RISK AND CONSEQUENCE OF FAILURE. RIGHT. AND THAT'S HOW WE PRIORITIZE THINGS.

SO THEN WE'RE GOING TO ULTIMATELY GENERATE A LIST FOR US OF THE SEGMENTS OF STREET THAT WE NEED TO ADDRESS.

SO FROM THE 23RD, WE'LL SEEK DIRECTION FROM YOU ON SOME OF THE RESULTS OF THAT INFORMATION.

AND FROM THAT WILL ULTIMATELY LEAD TO OUR BID DOCUMENTS THAT WILL BID OUT AND CARRY FORWARD FOR COUNCIL, AND THAT WILL BE OUR FY 2425 FISCAL YEAR

[00:50:01]

PLAN OF PLANNED ACTIVITIES.

SO OUR INTENTION IS TO BE VERY TRANSPARENT AND VERY DELIBERATE ABOUT HOW WE'RE SPENDING THOSE DOLLARS, WHAT THEY'RE SPENDING THEM ON.

ERIC OSCARSSON IS NOT HERE TODAY, BUT HE'S GOING TO BE DOING A PRESENTATION IN OCTOBER ABOUT PROJECTS THAT WE HAVE UNDERWAY, AS WELL AS PROJECTS THAT WE'VE RECENTLY COMPLETED. I THINK THAT'S SOMETHING THAT WE CAN DO A BETTER JOB OF, IN TERMS OF TELLING OUR STORY ABOUT WHAT'S GOING ON.

AND THEN, COUNCILMEMBER BECKER, TO YOUR POINT, I THINK LEVERAGING OUR MAILOUTS AND HOW WE WHAT INFORMATION WE'RE INCLUDING IN THAT IS ANOTHER GOOD AVENUE.

SO THE INTENTION WILL BE TO DO THAT AND BE VERY SPECIFIC AND DELIBERATE.

SO I WANT TO BE CLEAR THAT I DON'T THINK ON THE 23RD, WE'RE GOING TO BE ABLE TO GENERATE THAT SPECIFIC LIST FOR YOU.

BUT BASED ON THAT FEEDBACK, WE'LL BE ABLE TO MOVE FORWARD WITH BIDDING OUT PROJECTS AND THEN BRINGING THEM BACK AT A LATER DATE.

DOES THAT ADDRESS YOUR CONCERN? YES. ONE ITEM THAT'S ADVANTAGEOUS TO ME IS A QUARTERLY REPORT.

IT'S ON THE WEB. IT'S PRINTED EVERY QUARTERLY.

IT GIVES ALL THE CURRENT PROJECTS WE'RE WORKING ON.

IT GIVES THE BUDGET WHERE THE BUDGET FUNDING IS COMING FROM AND THE PERCENTAGE THAT EACH PROJECT IS COMPLETE.

THAT'S AN EXCELLENT RESOURCE FOR CITIZENS TO LOOK AT, TO SEE WHAT'S GOING ON IN THEIR CITY.

THE COMPLAINT WAS THAT THEY NOT EVERYBODY IS ONLINE LOOKING AT IT ONLINE.

WE DO RECEIVE ONE MAILER.

IS IT QUARTERLY? THAT IS THE QUARTERLY WE DO.

SO I AGREE, I DON'T KNOW THAT WE'VE USED IT TO ITS FULL ADVANTAGE.

I REMEMBER THE LAST ONE I RECEIVED WASN'T VERY MEATY.

AND SO THERE WAS THERE'S OPPORTUNITY TO INCORPORATE SOME OF THAT.

THOSE I ALWAYS LOOK ON OUR QUARTERLY REPORT FOR THE LITTLE BAR GRAPHS THAT SHOW US HOW FAR ALONG SOMETHING IS, HOW MUCH AND HOW IT'S BEING PAID FOR.

I AGREE WITH THAT. IT IS A GREAT TOOL WE'RE ALREADY CREATING.

WE JUST NEED TO FIGURE OUT.

AND IT'S GOING TO BE A FINANCIAL COMMITMENT BECAUSE MAILERS ARE EXPENSIVE.

SO BUT AND PRINT BUT IT'S A BALANCE OF WE DO NEED TO INFORM OUR CITIZENS SO THAT THEY UNDERSTAND WE'RE PUTTING YOUR DOLLARS TO WORK.

DO YOU DO YOU HAVE THE GIANT PDF OF THE BUDGET WORKBOOK THAT YOU CAN ACCESS IN YOUR ONEDRIVE? BECAUSE I HAVE A SPECIFIC PAGE.

IF YOU COULD BE ABLE TO PULL IT UP SO I COULD SHOW IT.

I DON'T KNOW IF IT'S OVER THERE.

YEAH, I DON'T THINK I HAVE IT SET UP, BUT I CAN.

WHAT? I HAVE IT MEMORIZED, SIR.

WHAT? WELL, NO, I'M JUST SAYING, IF YOU LOOK AT PAGE 196, IT HAS SUPPLEMENTAL BUDGET ITEMS. THIS IS FOR STREET MAINTENANCE, AND IT.

AND IT SHOWS STREET MAINTENANCE AND REPAIR.

1,645,833. THAT IS ALL OF THE EXTRA EXCESS TAX REVENUE THAT WE ARE COLLECTING THIS YEAR.

AND THAT IS EXACTLY WHERE IT'S GOING.

CORRECT. SO THE INTENTION WAS TO BE VERY DELIBERATE AND PUT THAT MONEY IN ITS OWN INDIVIDUAL FUNDS.

SO IT COMES INTO THE GENERAL FUND.

WE IMMEDIATELY DO A TRANSFER.

THERE'S $1.1 MILLION THAT IS IN THE EXISTING BASE BUDGET OF THE PUBLIC WORKS DEPARTMENT.

THAT WILL REMAIN, BUT THE ADDITION DERIVED FROM THE TAX INCREASE WILL BE IN THE STREET MAINTENANCE FUND.

RIGHT. BUT IT IS IN THE WORKBOOK.

SO JUST IF WE COULD HAVE PULLED IT UP AND JUST TO SHOW EVERYBODY.

BUT IT IS YOU KNOW IF WE COULD MAKE THAT I'M NOT SURE THAT'LL BE AVAILABLE FOR EVERYBODY, BUT IF ANYONE, IF ANYBODY WANTS TO KNOW WHERE IT'S GOING, THAT'S WHERE IT'S GOING.

I'M SORRY. I DON'T HAVE IT QUEUED UP.

I WILL ADD, IN ADDITION TO THE COUNCIL GIVING US DIRECTION TO SET UP THE FUNDS IN ITS SEPARATE DESIGNATED FUNDS, SO IT WILL COME OUT IN OUR MONTHLY REPORT, WHICH CAN BE VIEWED AS WELL.

BUT IN TERMS OF TRANSPARENCY, WE ARE CONTINUING TO TRY TO IMPROVE IN THAT AREA.

I HAD TALKED TO A PASTOR ONCE AND HE TOLD ME TO COMMUNICATE INFORMATION.

YOU HAVE TO SEE IT SEVEN DIFFERENT TIMES.

SO EVEN THOUGH WE ARE PUSHING THAT INFORMATION OUT, I UNDERSTAND YOU'RE ASKING US TO MAKE SURE THAT WE PURSUE OTHER AVENUES, TO MAKE SURE WE CONNECT WITH RESIDENTS, AND WE'RE GOING TO TALK WITH OUR COMMUNICATION TEAM TO, TO MAKE SURE WE DO THAT.

SO THANK YOU VERY MUCH FOR THAT SUGGESTION.

I GUESS WE'RE READY TO GO.

ANY OTHER QUESTIONS? HERE WE GO.

OKAY. MAYOR AND COUNCIL.

ARE WE READY? WE'RE GOING TO HAVE TO LET ME CALL THEM FORWARD PROPERLY THROUGH THE.

YOU'RE GOING TO CALL THEM ONE AT A TIME? YES, SIR. I'M GOING TO CALL THEM ONE AT A TIME WAITING ON YOU.

ALRIGHTY. WE'RE GOING TO START 6.A CONSIDER APPROVAL OF AN ORDINANCE ADOPTING THE BUDGET FOR FISCAL YEAR 2024 2025, BEGINNING OCTOBER 1ST, 2024, AND TERMINATING SEPTEMBER 30TH, 2025, AND MAKING APPROPRIATIONS FOR EACH FUND, REPEALING CONFLICTING ORDINANCES, PROVIDING A SAVINGS CLAUSE AND AN EFFECTIVE DATE, AND FINDING THAT AT THE MEETING IN WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC.

[00:55:02]

THIS BUDGET WILL RAISE MORE PROPERTY TAXES THAN LAST YEAR'S BUDGET BY THE AMOUNT OF $4,381,461, WHICH IS AN 11.57% INCREASE.

AND OF THAT, AND OF THAT AMOUNT, 1,258,438 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLLS THIS YEAR? THIS IS BEFORE CITY COUNCIL ON FINAL READING.

ARE YOU READY? ARE YOU READY TO GO? YES, SIR.

DO I HAVE A MOTION ON SIX? A MOVE TO APPROVE THE ORDINANCE ADOPTING THE BUDGET FOR THE FISCAL YEAR 2024-2025.

I HAVE A MOTION BY ADAM AND A SECOND BY PHIL.

PLEASE VOTE. PASSES.

UNANIMOUS. DO YOU HAVE A MOTION ON 6.B? SO THAT'S TO CONSIDER APPROVAL OF A MINUTE ORDER RATIFYING THE ADOPTION OF THE FISCAL YEAR 2024-2025 ANNUAL OPERATING BUDGET BEGINNING OCTOBER 1ST, 2024, AND TERMINATING SEPTEMBER 30TH, 2025.

NOW, DO I HAVE A MOTION ON 6.B.

I MAKE A MOTION TO MOVE TO APPROVE THE MINUTE ORDER RATIFYING THE ADOPTION OR ADOPTION.

THE BUDGET FOR FISCAL YEAR 2024-2025.

WE'RE OUT OF SYNC HERE.

IS THAT GOING TO MAKE IT? IF YOU'LL HOLD ON.

THERE YOU GO. YOU WANT TO DO IT AGAIN? THERE YOU GO. I HAVE A MOTION BY LARRY, A SECOND BY ALEXA.

PLEASE VOTE. PASSES.

UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO ITEM 6.C CONSIDER APPROVAL OF AN ORDINANCE LEVYING THE AD VALOREM PROPERTY TAX OF THE CITY OF BURLESON FOR TAX YEAR 2024 ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1ST, 2024, AND ADOPTING A TAX RATE OF $0.6627 $7 PER $100 OF VALUATION FOR TAX YEAR 2024, PROVIDING FOR REVENUES FOR PAYMENT OF CURRENT MUNICIPAL MAINTENANCE AND OPERATION EXPENSES, AND FOR PAYMENT OF INTEREST AND PRINCIPAL ON OUTSTANDING CITY OF BURLESON DEBT.

PROVIDING FOR ENFORCEMENT OF COLLECTIONS, REPEALING CONFLICTING ORDINANCES, PROVIDING A SAVINGS CLAUSE AND AN EFFECTIVE DATE, AND FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC.

THE PROPOSED TAX RATE EXCEEDS THE NO NEW REVENUE TAX RATE.

THIS IS BEFORE CITY COUNCIL ON FINAL READING COUNCIL.

IF YOU'LL REMEMBER, THERE ARE THREE DIFFERENT MOTIONS YOU WILL NEED TO MAKE FOR THIS ITEM.

OKAY. IS THERE A MOTION ON 6.B, MAYOR? NUMBER ONE HERE, I MOVE THAT THE PROPERTY TAX RATE BE INCREASED BY THE ADOPTION OF A TAX RATE OF $0.6627 PER $100 VALUATION, WHICH IS EFFECTIVELY A 2.22% INCREASE IN THE TAX RATE.

I THINK. YOU TWO GUYS WORK THIS OUT.

I'LL MAKE IT ALL ONE OR I'LL MAKE IT THREE.

YOUR CALL. WE'RE VOTING ON ONE ITEM THAT YOU MAKE ALL THREE ELEMENTS OF THE MOTION.

GLAD TO. FURTHER, I MOVE TO APPROVE OF THE TOTAL TAX RATE $0.4704 FOR EACH $100 OF VALUATION TO FUND MAINTENANCE AND OPERATION EXPENDITURES.

AND FURTHER, I MOVE TO APPROVE OF THE TOTAL TAX RATE $0.1923 FOR EACH $100 OF VALUATION TO FUND THE CITY'S DEBT SERVICE.

SECOND. I HAVE A MOTION BY DAN.

A SECOND BY ADAM. PLEASE VOTE.

PASSES. UNANIMOUS.

THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO 6.E.

CONSIDER APPROVAL OF AN ORDINANCE APPROVING THE 2024 TAX ROLLS AND DECLARING AN EFFECTIVE DATE.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 6.E? I MOVE TO APPROVE THE ORDINANCE APPROVING THE 2024 TAX ROLLS.

I HAVE A MOTION BY ALEXA AND A SECOND BY PHIL.

PLEASE VOTE. MOTION.

PASSES UNANIMOUSLY.

THANK YOU. 60.

CONSIDER APPROVAL OF AN ORDINANCE TO AUTHORIZE CHARGING, CREDIT CARD PROCESSING AND NON-SUFFICIENT FUNDS FEES TO CUSTOMERS.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

[01:00:01]

IS THERE A MOTION ON 6.E? I MOVED TO APPROVE THE ORDINANCE, ADDING THE PAYMENT OF FEES FOR CREDIT CARDS AND DEBIT CARDS AND THE NON-SUFFICIENT FUND FEE.

I HAVE A MOTION BY ADAM. A SECOND BY ALEXA.

PLEASE VOTE. PASSES UNANIMOUS 6.F. CONSIDER APPROVAL OF AN ORDINANCE PROVIDING A FISCAL YEAR 2024 2025 SCHEDULE OF FEES FOR VARIOUS CITY OF BURLESON SERVICES.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 6.F? I MOVE TO APPROVE THE FEE ORDINANCE FOR FISCAL YEAR 2024-2025.

I HAVE A MOTION BY A SECOND BY ALEXA.

PLEASE VOTE. PASSES.

UNANIMOUS. THAT BRINGS US TO SIX G.

CONSIDER APPROVAL OF AN ORDINANCE PROVIDING FISCAL YEAR 2024 2025 RATES FOR WATER AND WASTEWATER SERVICE.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON 6.G TO APPROVE THE ORDINANCE PROVIDING A WATER AND WASTEWATER RATES FOR FISCAL YEAR 2024-2025.

I HAVE A MOTION BY DAN, A SECOND BY ALEXA.

PLEASE VOTE.

PASSES UNANIMOUS.

THAT MOVES US ON TO 6.H.

CONSIDER APPROVAL OF AN ORDINANCE PROVIDING FISCAL YEAR 2024 2025 RATES FOR COLLECTION AND DISPOSAL OF RESIDENTIAL AND NONRESIDENTIAL SOLID WASTE, RECYCLABLES AND TRASH.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON SIX H.

I MOVE TO APPROVE THE ORDINANCE PROVIDING SOLID WASTE AND RECYCLABLE RATES FOR FISCAL YEAR 2024 2025.

I HAVE A MOTION BY DAN, A SECOND BY VICTORIA.

PLEASE VOTE. PASSES UNANIMOUS.

THAT BRINGS US TO ITEM SIX.

I CONSIDER APPROVAL OF AN ORDINANCE PROVIDING FOR RESIDENTIAL HOMESTEAD EXEMPTION FROM THE AD VALOREM TAX FOR TAX YEAR 2025 AND ALL FUTURE YEARS, UNLESS REVISED, OF AN AMOUNT EQUAL TO 5% OF THE APPRAISAL VALUE.

REPEALING CONFLICTING ORDINANCES.

PROVIDING A SAVINGS CLAUSE.

INCORPORATING THE RITUALS.

FINDING THAT AT THE MEETING IN WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AND DECLARED AN EFFECTIVE DATE.

THIS IS BEFORE CITY COUNCIL ON FINAL READING.

IS THERE A MOTION ON SIX? I MOVE TO APPROVE THE ORDINANCE APPROVING OR PROVIDING A FOR A RESIDENTIAL HOMESTEAD.

EXEMPTION FROM THE AD VALOREM TAX RATE FOR TAX YEAR 2025, IN AN AMOUNT EQUAL TO 5% OF THE APPRAISED VALUE.

I HAVE A MOTION BY ADAM AND A SECOND BY VICTORIA.

PLEASE VOTE. MACHINE PASSES.

UNANIMOUS. THAT BRINGS US TO ITEM 6.J.

CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE CITY OF BURLESON FISCAL YEAR 2024-2025 STRATEGIC PLAN.

IS THERE A MOTION ON 6.J.

I MAKE A MOTION TO APPROVE THE RESOLUTION ADOPTING THE STRATEGIC PLAN FOR FISCAL YEAR 2024 2025.

I HAVE A MOTION BY VICTORIA.

A SECOND BY DAN. PLEASE VOTE.

PASSES UNANIMOUS. THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO ITEM 6.K.

[6.K. Consider a resolution adopting the updates to the employee handbook and the city's compensation structures for FY 2024-2025. (Staff Contact: Cheryl Marthiljohni, Director of Human Resources)]

CONSIDER A RESOLUTION ADOPTING THE UPDATES TO THE EMPLOYEE HANDBOOK AND THE CITY'S COMPENSATION STRUCTURE FOR FISCAL YEAR 2024-2025.

THE STAFF PRESENTER THIS EVENING IS CHERYL MARCHEGIANI, DIRECTOR OF HUMAN RESOURCES.

GOOD EVENING, MAYOR COUNCIL.

I FEEL LIKE THERE SHOULD BE A CONGRATULATIONS IN THERE SOMEWHERE ON ALL THAT WAS JUST DONE.

SO CONGRATULATIONS.

SO THERE'S A LOT OF HARD WORK THAT GOES INTO THAT.

SO I'M HERE THIS EVENING JUST TO WRAP UP A PRESENTATION THAT WE PROVIDED TO YOU EARLIER IN THE SUMMER AROUND EMPLOYEE HANDBOOK AND COMPENSATION STRUCTURES TO ALIGN WITH REGARDS TO THE NEW FISCAL YEAR.

HELP, MIKE. THANK YOU.

SO THIS IS A SLIDE THAT WE PRESENTED LAST TIME JUST TO TALK ABOUT THE HIGH LEVEL EMPLOYEE HANDBOOK UPDATES THAT WE WERE GOING TO BE MAKING.

AND SO IN SUMMARY YOU'LL SEE THOSE WITH AN ASTERISK ARE EFFECTIVE OCTOBER 1ST 2024.

THERE ARE TWO THAT HAVE RED LINES UNDERNEATH EACH ACCEPTABLE USE POLICY THAT WE'RE CONTINUING TO WORK ON.

AND WE'RE TARGETING AN EFFECTIVE DATE OF JANUARY 1ST FOR THAT POLICY UPDATE, AS WELL AS ANY WORK ARRANGEMENTS OR TELECOMMUTE.

[01:05:07]

DEVELOPING THAT POLICY.

WE'RE IN THE PROCESS OF GETTING FEEDBACK ON THAT POLICY AS A DRAFT RIGHT NOW, BUT WE'RE LOOKING AGAIN AT TARGETING THE EFFECTIVE DATE OF ONE 125.

SO IN ADDITION TO ALL THE OTHERS, I'M GOING TO GO THROUGH THE NEXT COUPLE OF SLIDES AND TALK ABOUT SORT OF HOW WE THEN UPDATED OUR HANDBOOK TO CORRELATE WITH REGARDS TO THESE UPDATES. THE RED LINE HANDBOOK.

SUMMARY OF CHANGES.

WE DID REPLACE IN CHAPTER FOUR THE NEED TO REPORT TO BEAT IT.

REPLACEMENT OR DISPOSAL OF CITY ELECTRONIC OR TECHNOLOGY EQUIPMENT.

SO THAT STATEMENT WAS ADDED IN THERE.

UNDER CHAPTER FOUR DRESS CODE WE ADDED LANGUAGE IN THERE THAT INAPPROPRIATE VISIBLE TATTOOS WILL BE REQUIRED TO BE COVERED.

TONGUE RINGS, BROW RINGS, FACIAL PIERCINGS, EAR GAUGES, OR VISIBLE BELLY BUTTON RINGS MAY BE PERMITTED DEPENDING ON THE POSITION AND HAVE DONE SO IN A WAY THAT REPRESENTS A PROFESSIONAL APPEARANCE AT WORK.

THIS POLICY IS REALLY REFLECTIVE OF UPDATING TO CURRENT PRACTICE.

THERE ARE THOSE THINGS GOING OUT IN THE WORKPLACE AND OUR POLICY WAS DATED.

SO THE STATEMENT HERE JUST GETS US TO OUR CURRENT PRACTICE.

CHAPTER SIX HOLIDAYS.

THERE WAS SOME CLEANUP LANGUAGE WITH REGARDS TO REMOVING SOME SECTIONS.

A RESCHEDULED HOLIDAY MUST BE USED WITHIN 60 DAYS OR BE FORFEITED.

SO WE CLEAN THAT SECTION UP AGAIN.

THAT CHANGE REFLECTS OUR CURRENT PRACTICE.

AND THEN WE CAME BACK AND ADDED THE PERSONAL DAY.

THAT WAS A BENEFIT THAT WE CAME BACK AND ADDED.

AND SO NOW WE HAVE LANGUAGE IN THERE THAT DESCRIBES WHAT THAT PERSONAL DAY LOOKS AT.

EVERYONE WILL RECEIVE THE ONE PAID PERSONAL DAY EACH FISCAL YEAR.

IT WILL BE A USE IT THAT YEAR OR LOSE IT BENEFIT.

IT DOES NOT CARRY OVER AND IT'S NOT THEN TIED TO THE CASH OUT FOR POLICE AND FIRE WITH REGARDS TO THEIR HOLIDAY TIME.

IN ADDITION, ON WORK PERIODS AND COMPENSATION, WE UPDATED THE POLICIES TO REFLECT OUR NEW WORK SCHEDULE IN FIRE 4896 AND CHAPTER NINE LONGEVITY PAY. WE ADDED THE STATEMENT WITH REGARDS TO BEING PAID PER PAY PERIOD BASIS UNLESS ALREADY GRANDFATHERED IN WITH THE LUMP SUM PAYMENT, AND THEN CHAPTER SEVEN UNDER EMPLOYEE BENEFITS TUITION REIMBURSEMENT.

WE WENT FORWARD AND ADDED THE STATEMENT AROUND PARTICIPATION IN ACADEMIES AND OR EDUCATIONAL INSTITUTIONS THAT HELP FOSTER CAREER GROWTH FOR CURRENT EMPLOYEES IS NOW ALSO INCLUDED IN THAT TUITION REIMBURSEMENT POLICY.

IN ADDITION TO THOSE RED LINE CHANGES, WE DID OVERALL UPDATE THE HANDBOOK TO REFLECT THE AFFECTED DATES OF 10/1/2024.

THE TABLE OF CONTENTS AFTER TONIGHT WILL GO BACK AND MAKE SURE THAT ALL THE FORMATTING IS UPDATED TO REFLECT CURRENT PAGE NUMBERS THROUGHOUT THE HANDBOOK.

THE TERM DISCIPLINARY OR DISCIPLINARY ACTION WAS REPLACED WITH CORRECTIVE ACTION.

THAT WAS ANOTHER CHANGE THAT WE HAD RECOMMENDED.

WE ALSO ADDED THAT TERM TO OUR VOCABULARY OR OUR GLOSSARY AT THE END OF THE HANDBOOK.

AND THEN IN YOUR PACKET, I BELIEVE YOU HAVE A DRAFT POLICY FOR OUR CATASTROPHIC LEAF POOL.

WE WILL ADD THAT INTO CHAPTER SIX AND THEREFORE WILL FORMAT ACCORDINGLY AFTER THAT'S BEEN ADDED.

IN ADDITION TO THE HANDBOOK CHANGES JUST A LITTLE BIT ON OUR COMPENSATION STRUCTURES.

WE UPDATED THOSE TO REFLECT THE TEN 124 DATE AS WELL FOR FISCAL YEAR 24-25.

SO THOSE STRUCTURES INCLUDE OUR GENERAL GOVERNMENT STRUCTURE, FIRE POLICE STEP PLANS, OUR RECREATION INSTRUCTOR COMPENSATION STRUCTURE, AND THEN CERTIFICATION AND ALLOWANCES. CHANGES FOR OUR FISCAL YEAR 2425 INCLUDE JUST CURRENT DATES FOR THE NEW FISCAL YEAR.

AND THEN WE ALSO UPDATED ANY APPROVED BUDGETED POSITIONS, AS WELL AS ANY RECLASS POSITIONS THAT WE MADE, AND PRIMARILY ON THAT ONE WAS THE FAIR LABOR STANDARDS ACT. CHANGE OF PAY GRADE 27 UP TO PAY GRADE 29.

SO WE'VE MADE THOSE CHANGES WITHIN THESE COMPENSATION STRUCTURES.

AND I'M HERE TO ANSWER ANY ADDITIONAL QUESTIONS THAT YOU MIGHT HAVE.

ANYBODY. YOU DID GOOD.

OKAY. THANK YOU VERY MUCH.

ARE YOU READY? I'LL ENTERTAIN A MOTION ON 6.K.

I MOVE TO APPROVE THE RESOLUTION.

ADOPTING THE EMPLOYEE HANDBOOK AND COMPENSATION STRUCTURE FOR FISCAL YEAR 2024-2025.

I HAVE A MOTION BY VICTORIA, SECOND BY ALEXA.

PLEASE VOTE. PASSES UNANIMOUS.

THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO SECTION SEVEN.

GENERAL SEVEN A IS CONSIDER RECOMMENDING APPROVAL OF A CONSTRUCTION CONTRACT WITH JASCO CONSTRUCTION LLC FOR THE CONSTRUCTION FOR THE

[7.A. Consider recommending approval of a construction contract with Jasco Construction LLC for the construction for the parking lot addition and trailhead improvement at Oak Valley South Scott trailhead in the amount of $442,734.98 with project contingency of $28,600.54 for a total amount of $471,335.52. (Staff Contact: Jen Basham, Director of Parks and Recreation)]

[01:10:10]

PARKING LOT ADDITION AND TRAILHEAD IMPROVEMENT AT OAK VALLEY SOUTH SCOTT TRAILHEAD IN THE AMOUNT OF $442,734.98, WITH PROJECT CONTINGENCY OF $28,600.54, FOR A TOTAL AMOUNT OF $471,335.52. I DID NOT DO THAT MATH.

THE STAFF PRESENTED THIS EVENING IS JEN BASHAM, DIRECTOR OF PARKS AND RECREATION.

ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL.

I ALSO HAVE A SLIDE DECK THAT IF YOU DON'T WANT TO SEE, WE CAN MOVE FORWARD.

NO, I'M JUST KIDDING. SO A LITTLE BIT OF BACKGROUND ON THIS PROJECT.

WE DID APPROVE THE TRAILHEAD IMPROVEMENTS AT OAK VALLEY SOUTH.

THAT'S ACTUALLY AT THE SCOTT STREET TRAILHEAD IS WHAT WE'LL CALL IT MOVING FORWARD.

SINCE WE HAVE SO MANY OAK VALLEYS, WE TRY TO DELINEATE WHERE WE'RE AT ON THE TRAIL SYSTEM.

THIS WAS APPROVED AS A 2024 CAPITAL PROJECT.

THE IMPROVEMENTS INCLUDE THE ADDITION OF A PARKING LOT, WHICH IS THE MAIN COMPONENT OF IT, LIGHTING, LANDSCAPE, AND THEN A FEW ADDITIONAL AMENITIES SUCH AS A BIKE REPAIR STATION AND A WATER FOUNTAIN WITH A CHILLER.

SO THIS WILL BE OUR FIRST ON THE SYSTEM.

WE SHALL SEE HOW IT GOES.

AND WE DID BRING THIS BACK TO COUNCIL IN FEBRUARY TO APPROVE THE DESIGN CONTRACT WITH DUNAWAY ASSOCIATES.

SO THIS IS THE PROJECT SITE ON THE LEFT.

YOU SEE THE HIGHLIGHTED AREA THAT DIRECTLY ATTACHES TO THE EXISTING TRAIL.

AND ON THE RIGHT YOU SEE THAT WE'RE ALREADY USING IT FOR PURPOSES SUCH AS RUNNING.

SO THIS IS THE DESIGN THAT YOU'LL SEE.

WE HAVE 22 PARKING SPACES FOR ADA PARKING SPACES.

WE DID HAVE A REQUEST WHEN WE DISCUSSED THE ORIGINAL DESIGN TO ENSURE THAT OUR SIDEWALK ACTUALLY EXTENDS AROUND BOTH SIDES, SO THAT YOU DON'T HAVE TO RUN THROUGH THE MIDDLE OF THE PARKING LOT. SO WE HAVE EIGHT FOOT CONCRETE SHARED USE TRAIL ON BOTH SIDES OF IT.

WE ALSO HAD ORIGINALLY INCLUDED A RESTROOM AT THIS PROJECT SITE, BUT WE MOVED THAT TO THE OAK VALLEY SOUTH PARK.

AND SO WE DON'T HAVE THAT INCLUDED HERE, WHICH GAVE US A LITTLE FUNDING TO MAKE THIS MORE OF A RESPITE.

SO WE HAVE A SHADE STRUCTURE AS WELL AS TRAIL SIGNAGE, THE BIKE REPAIR STATIONS, SOME BENCHES, AND THEN OF COURSE, WE'LL HAVE SOME TRAIL SIGNAGE THAT SHOWS DIRECTIONAL THROUGHOUT. THE LIGHTING FOR THIS PROJECT IS SOLAR POWERED AND LIKE I SAID MENTIONED EARLIER, IT WILL BE A CHILLED WATER FOUNTAIN.

WE RECEIVED FOUR BIDS FOR THIS PROJECT.

THE HIGH WAS A LITTLE OVER 600, THE LOW WAS 442, AND WE ARE ACTUALLY RECOMMENDING THE LOW BID FOR THIS PROJECT TO JASCO CONSTRUCTION.

WE'VE USED THEM ON MULTIPLE PROJECTS WITH THEM.

TYPICALLY WE DO A PERCENTAGE, BUT THIS IS WHAT'S REMAINING IN OUR CIP FOR THIS.

SO WE ARE DOING A CONTINGENCY OF 28,600.

AND WE'RE HOPING ONCE WE GET THIS, IF IT'S AWARDED THIS EVENING, WE WILL BEGIN CONSTRUCTION TOWARDS THE END OF THIS MONTH WITH THE AMBITION OF GETTING DONE BY NOVEMBER.

WE ARE AWARE THAT THE SCHOOL DISTRICT USES THIS RIGHT NOW AS PART OF THEIR FLOW, SO WE'LL BE WORKING WITH THEM TO TRY TO MAKE SURE WE MITIGATE ANY ISSUES THERE AS WELL.

AS THE FOOTBALL FIELD WAS RECENTLY SOLD TO THE CHURCH, AND THEY'RE LOOKING AT TRANSITIONING THAT TO A PARKING LOT.

SO THERE WILL BE LOTS OF MOVEMENT IN THIS AREA, AND WE WILL BE WORKING IN CONJUNCTION WITH ALL OF THEM.

ANY QUESTIONS? ANY QUESTIONS? I DO HAVE A QUESTION, JEN, HAVE YOU ADDRESSED WITH THE CONTRACTOR, WITH THE BIDS THAT YOU TOOK, THE NEED TO KEEP ACCESS TO THE TRAIL OPEN DURING CONSTRUCTION, AND HOW ARE THEY GOING TO DO THAT? SO WE WON'T ACTUALLY KEEP THAT TRAILHEAD OPEN, BUT THE TRAIL ITSELF WILL OPEN.

SO PEOPLE WILL HAVE TO DO A TURNAROUND, BUT THEY WON'T HAVE ACCESS WHILE THAT'S ACTUALLY UNDER CONSTRUCTION.

CAN WE REVIEW THAT AND SEE IF WE CAN MAKE IT POSSIBLE TO KEEP ACCESS DURING CONSTRUCTION? WE COULD KEEP ACCESS.

THINKING THROUGH THIS ON THE FLY, WE CAN KEEP ACCESS AND PROVIDE PARKING WITH THE CHURCH THAT'S ADJACENT, AND SEE IF WE COULD PARTNER WITH THEM TO DO SOME TEMPORARY PARKING AND THEN JUST KEEP AN ACCESS POINT ALONG THE EDGE.

IT WASN'T PARKING THAT I WAS CONCERNED ABOUT.

I WAS ONLY CONCERNED ABOUT ACCESS FOR TO REACH THE TRAIL FROM THE STREET SYSTEM.

IN OTHER WORDS, IT SHOULD BE POSSIBLE.

AND I'M GOING TO ADMIT I HAVE A PERSONAL INTEREST IN IT, BECAUSE THIS IS A PART OF MINE AND MY WIFE'S ALMOST DAILY RIDES WITH OUR HANDICAPPED SON, WITH OURSELVES FOR EXERCISE AND SO FORTH.

TO BE ABLE TO LEAVE OUR HOME AND COME THROUGH THE CHISHOLM HALL AREA, THROUGH THE BAILEY LAKE TRAIL AREA, AND THEN TRANSITION THROUGH OLD TOWN INTO THE OAK VALLEY TRAIL AND ON IT.

AND WE'RE NOT THE ONLY ONES DOING THIS.

WE MEET PEOPLE GOING BACK AND FORTH EVERY DAY.

SO I KNOW A LOT OF PEOPLE WOULD MISS THE ABILITY TO ACCESS THAT TRAIL, BECAUSE THAT SEGMENT OF TRAIL FROM HERE ON AROUND TO MEMORIAL PLAZA IS ONLY ACCESSIBLE

[01:15:02]

FROM THAT AREA, FROM THAT SPOT.

AND, YOU KNOW, IF THE CONTRACTOR IS WILLING TO COOPERATE AND MAKE SURE THAT THAT ACCESS IS NOT CLOSED DURING CONSTRUCTION.

HECK, IF HE NEEDS ASPHALT, I'LL BRING HIM SOME OUT THERE.

BUT WE WE NEED TO SEE IF WE CAN MAKE SURE THAT THAT STAYS ACCESSIBLE DURING CONSTRUCTION.

YES, SIR. NOTED.

THANK YOU. ANYBODY ELSE? ALL RIGHT.

I'LL ENTERTAIN A MOTION ON THIS.

7.A. I HAVE A MOTION BY DAN.

A SECOND BY VICTORIA. PLEASE VOTE.

PASSES. UNANIMOUS.

THANK YOU. MAYOR AND COUNCIL.

THAT BRINGS US TO ITEM 7.B.

CONSIDER APPROVAL OF A CONTRACT WITH C1 S FOR A MECHANICAL EQUIPMENT PACKAGE FOR THE BURLESON RECREATION CENTER AT THE GUARANTEED MAX PRICE OF

[7.B. Consider approval of a contract with C1S for a mechanical equipment package for the Burleson Recreation Center at the guaranteed max price of $4,079,342. (Staff Contact: Jen Basham, Director of Parks and Recreation)]

$4,079,342. STAFF PRESENTER IS JEN BASHAM, DIRECTOR OF PARKS AND RECREATION.

ALL RIGHT.

WE ARE EXCITED TO GET THIS ONE IN FRONT OF COUNCIL THIS EVENING.

WE'VE BEEN WORKING ON THIS FOR QUITE A WHILE, SO BACK IN JANUARY OF THIS YEAR, COUNCIL DID SUPPORT THE PLAN TO RENOVATE THE BRICK AS MUCH LARGER PROJECT.

SO ORIGINALLY, WE HAD JUST HAD A SMALLER SCOPE OF DESIGNING THE LOBBY, WHICH WE'D ALREADY ENTERED INTO A CONTRACT WITH RON HOBBS FOR.

ONCE WE ADDED MULTIPLE OTHER PROJECTS, LIKE THE EQUIPMENT PACKAGE WE'RE BRINGING YOU THIS EVENING, WE BROUGHT A CONSTRUCTION MANAGER AT RISK ON BOARD IN MAY C-1S.

THEY ARE WITH US THIS EVENING.

IF YOU HAVE ANY SPECIFIC QUESTIONS OF THEM.

AND THE NEW SCOPE OF THE PROJECT INCLUDES THAT LOBBY REMODEL REPLACING THE DEHUMIDIFICATION SYSTEM IN THE POOL, REPLACING THAT INDOOR POOL SAND FILTER, RESURFACING THE POOL, AND THEN REPLACING THE AC UNITS AND THE CHILLERS.

THE FIRST PACKAGE THAT WE'RE BRINGING FORWARD THIS EVENING IS JUST THE LONG LEAD TIME ITEM.

SO THE DEHUMIDIFICATION AND THE HVAC SYSTEM, WE'RE ANTICIPATING BEING ABLE TO BRING THE FINAL PACKAGE WITH THE REST OF THE ITEMS NEXT MONTH.

SO THE TWO ITEMS THAT WE'RE FOCUSING ON THIS EVENING IS THE DESERT AIR ON THE LEFT.

YOU SEE THAT THE PROJECT IS ESTIMATED AT A LITTLE OVER $1.5 MILLION, AND THIS DOES NOT INCLUDE THE EVACUATOR SYSTEM.

WE WOULD BRING THAT FORWARD AS PART OF THE FINAL PACKAGE.

IT DOESN'T HAVE THE SAME LEAD TIME, AND WE NEED TO SEE HOW THE DOLLARS AND CENTS WORK OUT TO SEE IF WE CAN AFFORD IT THIS ROUND.

THE SECOND ITEM IS THE HVAC UNIT, WHICH WE'RE LOOKING AT RIGHT UNDER 3 MILLION.

AND THE FIRST PACKAGE COST IS $4 MILLION.

AND YOU SEE THE SCOPE BREAKDOWN ON THERE WITH ALL OF THE DIFFERENT EQUIPMENT PIECES THAT WILL BE PART OF THE SCOPE.

SO OUR ORIGINAL BUDGET FOR THIS FIRST PACKAGE WAS ALMOST 4.4 MILLION.

SO WE'RE A LITTLE UNDER 400,000 UNDER RIGHT NOW, WHICH WE ANTICIPATE MAY BE COMING BACK TO YOU DURING THE FINAL PACKAGE.

BUT RIGHT NOW, REMEMBER, TOTAL BUDGET FOR THIS PROJECT IS 5.4.

IN THIS FIRST EQUIPMENT PACKAGE IS 4 MILLION.

SO THIS EVENING WE ARE REQUESTING APPROVAL FOR THAT FIRST PACKAGE.

NEXT MONTH WE'LL BRING THE FINAL PACKAGE.

WE DID WANT TO TALK ABOUT THE LENGTH OF TIME THAT THE BRICK WILL BE UNDERGOING, BECAUSE WE WILL BE WORKING AROUND THAT AND THE FACILITY WILL REMAIN OPEN, WITH THE EXCEPTION OF WHEN WE CLOSE THE POOL NEXT FALL.

SO WE ANTICIPATE STARTING THE LOBBY RENOVATIONS IN NOVEMBER THIS YEAR, HOPEFULLY WRAPPING THEM UP PRIOR TO JANUARY FEBRUARY WHEN WE START TO GET BUSY AGAIN AFTER THE NEW YEARS.

AND THEN IN AUGUST OF NEXT YEAR IS WHEN WE ANTICIPATE REPLACING THE DEHUMIDIFICATION SYSTEM, DOING THE SAND FILTERS AS WELL AS REPLASTERING THE POOL.

AND WE'RE HOPING TO DO IT IN THAT AUGUST SEPTEMBER TIME FRAME, BECAUSE THEN WE CAN EXTEND THE SEASON OF THE OUTDOOR POOL WITHOUT TAKING ALL POOL ACCESS OPTIONS AWAY.

AND THEN NEXT SEPTEMBER IS WHEN WE ANTICIPATE THE HVAC UNITS ACTUALLY COMING IN, AND WE WILL REPLACE THOSE AT THAT TIME.

ANY QUESTIONS? IS THERE A MOTION ON 7.B? I'D LIKE TO MAKE A MOTION TO APPROVE THE FIRST PACKAGE.

SECOND. I HAVE A MOTION BY LARRY.

A SECOND BY ADAM. PLEASE VOTE.

PASSES UNANIMOUSLY. THANK YOU.

THANK YOU, MAYOR AND COUNCIL.

THAT BRINGS US TO ITEM 7.C, WHICH I WILL CALL FORWARD NOW.

[Items 7C & 7D]

ITEM 7.C AND 7.D FOR ONE PRESENTATION WITH TWO DIFFERENT MOTIONS AT THE END.

SO SEVEN C IS TO CONSIDER APPROVAL OF A MINUTE ORDER REJECTING BIDS FOR ITB 2020 019 ADVERTISEMENT OF CITY NOTICES, AND THEN 7.D IS CONSIDERED APPROVAL OF A CONTRACT WITH MCCLATCHEY SHARED SERVICES.

THE FORT WORTH STAR TELEGRAM, IN THE AMOUNT OF 45,000 FOR THE ADVERTISEMENT OF LEGAL NOTICES FOR ONE YEAR.

THE STAFF PRESENTER ON BOTH ITEMS IS RICHARD ABERNATHY, DIRECTOR OF ADMINISTRATIVE SERVICES.

YES. GOOD EVENING, MAYOR AND COUNCIL.

YES. THE TWO ITEMS TONIGHT IS ONE RECOMMENDING THE REJECTION OF BIDS.

[01:20:04]

AND THEN THE OTHER ONE IS AWARDING THAT ONE YEAR CONTRACT WITH MCCLATCHEY SHARED SERVICES, WHICH IS THE PARENT COMPANY OF FORT WORTH STAR TELEGRAM.

AND JUST TO GIVE A QUICK BACKGROUND ON THIS ITEM, YOU KNOW, THIS IS A PROJECT WE DID.

WE STARTED AT THE BEGINNING OF LAST YEAR, REALLY WITH THE OBJECTIVE OF MAKING SURE WE REMAIN COMPLIANT WITH BIDDING PROCUREMENT REQUIREMENTS, AS WELL AS JUST FINDING ALL COST SAVING MEASURES TO REDUCE THE COST FOR PUBLISHING LEGAL NOTICES USING A NEWSPAPER.

AND SO WE DID START WORKING, DOING OUR RESEARCH, LOOKING AT DIFFERENT NEWSPAPERS IN THE AREA.

WE ALSO TALKED TO OUR DIFFERENT DEPARTMENTS TO SEE WHAT NEWSPAPERS DID THEY PREFER? WOULD THEY PREFER A MORE HIGH PROFILE NEWSPAPER LIKE THE FORT WORTH STAR TELEGRAM OR MORE GENERAL, SMALLER NEWSPAPERS LIKE THE CLEBURNE TIMES REVIEW? AND FOR THE MOST PART, MOST DEPARTMENTS WERE PRETTY, PRETTY OPEN TO REALLY USING ANY NEWSPAPER.

BUT THERE WERE SOME DEPARTMENTS THAT NEEDED A NEWSPAPER, SOME LIKE STAR-TELEGRAM FOR LIKE HIGH PROFILE POSTINGS LIKE ELECTION NOTICES OR ZONING CASES.

AND SO WE DID BRIEF THE COUNCIL POLICY AND VALUATION COMMITTEE IN APRIL AND RECOMMENDED THAT WE DO GO OUT, BID OUT THE NEWSPAPER SERVICE WITH THE OBJECTIVE OF SELECTING A PRIMARY AND SECONDARY NEWSPAPER FOR PUBLISHING LEGAL NOTICES.

AFTER RECEIVING CONSENSUS THERE, WE DID TAKE THIS TO THE FULL COUNCIL IN MAY, AND THE CONSENSUS WAS TO GO AHEAD AND MOVE FORWARD THAT RECOMMENDATION.

SO SINCE THEN WE DID GO OUT AND ADVERTISE FOR SERVICES.

WE DID RECEIVE THE ONE BID FROM THE CLEBURNE TIMES-REVIEW.

WE'VE REVIEWED THROUGH THAT AND HAVE OUR RECOMMENDATION.

AND REALLY, BEFORE WE GET INTO DETAILS ON OUR RECOMMENDATION, JUST A QUICK EXCUSE ME THERE.

WHAT HAPPENED? OKAY.

JUST A QUICK BACKGROUND ON THE LOCAL GOVERNMENT REQUIREMENTS ONE MORE TIME.

SO REGARDLESS OF HOW WE COMMUNICATE INFORMATION TO CITIZENS, WE ARE REQUIRED TO PUBLISH CERTAIN LEGAL NOTICE IN THE NEWSPAPER THAT BE FOR ITEMS LIKE COMPETITIVE BIDS, ELECTION NOTICES, ZONING CASES, AND PUBLIC HEARINGS RELATED TO THE BUDGET AND TAX RATE.

AND IN TURN, THE NEWSPAPER WE USE ALSO HAS TO MEET CERTAIN REQUIREMENTS.

THEY CAN'T DEVOTE NOT LESS THAN 25% OF TOTAL COLLEGE TONNAGE TO GENERAL INTEREST ITEMS. THEY HAVE TO BE PUBLISHED AT LEAST ONCE A WEEK, AND ALSO BE A CONTINUOUSLY AND REGULARLY PUBLISHED NEWSPAPER FOR THE LAST 12 MONTHS WHEN YOU ACTUALLY ARE POSTING IN THE NEWSPAPER.

AND THEN AGAIN, LIKE I MENTIONED, WE ARE CURRENTLY USING THE FORT WORTH STAR TELEGRAM.

AND AGAIN, THIS IS A QUICK HISTORICAL COST AND WHY WE REALLY NEEDED TO REALLY GO OUT AND LOOK AT THIS.

AND, YOU KNOW, IN PREVIOUS YEARS WE DID EXCEED THAT 50,000 THRESHOLD.

YOU KNOW, REALLY THAT WAS DUE TO THE PANDEMIC.

YOU KNOW, WE HAD TO CANCEL ELECTIONS AND, AND RE-ADVERTISE AND THERE WAS A THERE WAS A COST TO THAT.

AND IN 2021, THE CITY SECRETARY'S OFFICE WAS SUCCESSFUL IN RENEGOTIATING THAT RATE.

AND SO, YOU SEE, OUR COSTS DID GO DOWN AFTER THAT, BUT WE WERE STILL KIND OF HOVERING AROUND THAT $50,000 THRESHOLD.

AND, YOU KNOW, RIGHT NOW WE'RE AT ABOUT 22,000 TODAY.

BUT THERE ARE A LOT OF LAGGING INVOICES THAT ARE GOING TO COME IN.

AND SO WE SUSPECT ONCE WE CLOSE THE BOOKS ON THE CURRENT FISCAL YEAR WILL BE RIGHT AROUND WHERE WE WERE LAST YEAR.

AND SO, AGAIN, SINCE WE MET WITH Y'ALL BACK IN MAY, WE DID GO OUT TO BID ON JUNE 21ST.

AND IN ADDITION TO DOING OUR TYPICAL NOTIFICATIONS FOR BIDS, WE ALSO EXTENDED INVITATIONS TO PROSPECTIVE BIDDERS, INCLUDING THE FORT WORTH STAR-TELEGRAM, THE CLEBURNE TIMES-REVIEW, AND THE COMMERCIAL RECORDER AND OTHERS.

WE HELD A NON-MANDATORY PRE-BID MEETING ON JULY 1ST, AND WE ACTUALLY EXTENDED THE DEADLINE BY ONE WEEK TO GIVE BIDDERS AN OPPORTUNITY TO REALLY PUT A BID IN.

BUT ON JULY 21ST, WE DID RECEIVE ONE BID FROM THE CLEBURNE TIMES-REVIEW.

SINCE THEN WE DID RECEIVE THOSE TERMS. AND ALTHOUGH THEY DID SUBMIT A BID, THEY ACTUALLY GAVE US THE SAME RATES THAT THEY QUOTED US WHEN WE STARTED DOING THE RESEARCH ON THIS PROJECT ORIGINALLY, SO WE REALLY DIDN'T SEE REALLY A SAVINGS PER SE FROM THAT BIDDING.

BUT WE ALSO REACHED OUT TO MCCLATCHY SHARED SERVICES BECAUSE, AGAIN, OUR GOAL WAS TO TRY TO GET TO NEWSPAPERS AND, YOU KNOW, FIND OUT EXACTLY WHY THEY DIDN'T BID AND THEY DID ACKNOWLEDGE RECEIVING THE BID, BUT THEY WERE GOING THROUGH SOME STAFF CHANGES AT THE TIME.

AND SO THEY DID ACKNOWLEDGE THEY WEREN'T ABLE TO DO IT.

THEY DID OFFER HER A ONE YEAR OFFER, US A ONE YEAR CONTRACT AT $5.06 PER LINE, WHICH IS A DOLLAR LESS THAN WHAT WE'RE PAYING NOW.

BUT THEY ALSO SAID IF WE USE THEM JUST EXCLUSIVELY, THEY DROP THAT DOWN TO $4, WHICH ACTUALLY KIND OF MADE US GO BACK AND REALLY LOOK AT THE RATES.

AND SO THAT'S WHAT WE DID.

AND SO WHEN YOU LOOK AT WHAT CLEBURNE TIMES-REVIEW PRESENTED TO US, YOU KNOW, ABOUT $388, WHAT A TYPICAL AD WOULD COST WITH THAT $5.06 RATE.

IT'S ABOUT 460 WITH THE STAR-TELEGRAM.

BUT WHEN YOU ACTUALLY PLUG IN THAT $4 PER LINE, IT ACTUALLY IS RIGHT AT THE SAME COST AS THE CLEBURNE TIMES REVIEW OR A LITTLE BIT LESS.

AND SO WITH THAT SAID, IT REALLY KIND OF CHANGED OUR APPROACH.

AND SO OUR APPROACH REALLY, SINCE IT'S LESS THAN $50,000, THIS SERVICE WILL BE WE DO RECOMMEND GOING WITH THE MCCLATCHY SHARED SERVICES CONTRACT REJECTING THE BID WITH CLEBURNE TIMES REVIEW.

AND THEN OVER THE NEXT OVER THIS NEXT YEAR, WE'LL REEVALUATE THE SERVICE AND POTENTIALLY GO REBID AGAIN FOR A LONGER TERM CONTRACT.

WE DID PRESENT THIS RECOMMENDATION TO THE CITY COUNCIL POLICY AND VALUATION COMMITTEE ON AUGUST 21ST.

THE CONSENSUS WAS TO PROCEED THIS RECOMMEND WITH THIS RECOMMENDATION.

AND SO AGAIN, WE'RE PRESENTING THAT SAME RECOMMENDATION TONIGHT TO REJECT THAT ONE SUBMISSION AND THEN EXECUTE THAT ONE YEAR CONTRACT WITH MCCLATCHY SERVICES.

[01:25:06]

THANK YOU. AND I'M AVAILABLE. ANY QUESTIONS? ANYONE. IS THERE A MOTION ON 7.C.

I HAVE A MOTION BY VICTORIA AND A SECOND BY LARRY.

PLEASE VOTE. PASSES UNANIMOUS.

7.E. IS THERE A MOTION ON 70? MOVE TO APPROVE. SECOND.

I HAVE A MOTION BY PHIL AND A SECOND BY ADAM.

PLEASE VOTE.

PASSES UNANIMOUS.

THANK YOU, MAYOR.

I'M SORRY. I HAVE A RANDOM QUESTION FOR YOU, RICHARD.

AND IT MAY BE.

MADAM SECRETARY, YOU MIGHT BE ABLE TO WEIGH IN ON THIS, TOO.

BUT AS I WAS READING THROUGH THIS AND THINKING ABOUT IT, IT'S ONE OF THOSE THINGS THAT I WONDER LEGISLATIVELY IF THIS IS VISITED, BECAUSE I JUST THINK ABOUT HOW LITTLE PEOPLE EVEN PURCHASE NEWSPAPERS ANYMORE.

AND THEN, YOU KNOW, I CLICK ON AN ARTICLE THINKING I CAN READ IT AND YOU HAVE TO HAVE A SUBSCRIPTION, AND I DON'T WANT TO PAY WHATEVER IT IS FOR THAT, BECAUSE I'M GOING TO READ ONE ARTICLE FOR THE YEAR, MOST LIKELY.

SO I DON'T KNOW IF THIS IS SOMETHING ELSE.

IT'S READING THROUGH THIS.

IT PIQUED MY INTEREST OF THIS IS SOMETHING WE SHOULD PUT ON OUR LEGISLATIVE WATCH LIST, BECAUSE I JUST DON'T THINK IT'S A GOOD USE OF TAXPAYER DOLLARS.

AND IT'S INTERESTING.

IN THE LAST LEGISLATIVE SESSION, THERE WAS A BILL INTRODUCED TO MAKE IT TO WHERE YOU WOULD POST INSTEAD OF USING THE NEWSPAPER YOU POST ON WEBSITES, OTHER TYPES OF OUTREACH.

IT ACTUALLY GOT VOTED OUT OF THE COMMITTEE, BUT IT WAS NEVER SCHEDULED FOR A FLOOR VOTE.

AND THAT WAS ACTUALLY SPONSORED, I BELIEVE, OR BACKED HEAVILY BY THE TEXAS PURCHASING PROCUREMENT ASSOCIATION.

I'M NOT SURE WHAT THAT IS.

YOU BROUGHT IT, YOU TOLD US ABOUT IT, AND I BROUGHT IT FORWARD TO BECAUSE THEN THE TEXAS CITY CLERK'S ASSOCIATION, WE ALSO BACKED IT, TOO, AND IT WENT NOWHERE.

WELL, IF YOUR ORGANIZATION PUTS SOMETHING FORWARD, YOU SHOULD PUT IT ON OUR RADAR SO WE CAN SUPPORT IT.

BECAUSE THIS IS THESE NUMBERS ARE RIDICULOUS.

THAT'S A POTHOLE WE COULD BE FILLING OR ANYTHING ELSE THAN BEING FORCED TO RUN AND IT'S NOT THAT I LACK OF WANTING TO LET THE PUBLIC KNOW, BUT WHAT ARE OTHER AVENUES WE COULD BE REACHING PEOPLE THAN MAKING THEM SUBSCRIBE TO THE STAR, TELEGRAM OR WHICHEVER NEWSPAPER TO GET A NOTICE THAT THEY'RE MOST LIKELY NOT GOING TO SEE? YEAH. THANK YOU.

SO THAT BRINGS US TO ITEM 7.E.

[7.E. Consider approval of a resolution casting the City of Burleson’s vote in the Texas Municipal League Intergovernmental Risk Pool Board of Trustees 2024 Election. (Staff Contact: Amanda Campos, City Secretary)]

CONSIDER APPROVAL OF A RESOLUTION CASTING THE CITY OF BURLESON VOTE IN THE TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL BOARD OF TRUSTEES 2024 ELECTION STAFF PRESENTER IS AMANDA CAMPOS, CITY SECRETARY.

GOOD EVENING, MAYOR AND COUNCIL, I AM PLEASED TO BRING YOU THIS ITEM WHERE THIS IS YOUR CHANCE TO VOTE.

SO WHAT IS HTML IP? SO THIS CAME ABOUT IN 1973, WHEN THE LEGISLATURE DECIDED TO REQUIRE EVERY CITY TO PROVIDE WORKERS COMPENSATION, WHICH WE THINK IS IMPORTANT.

THEY ALSO RECOGNIZED THAT THIS WOULD BE COSTLY.

AND SO THEY CREATED AN AVENUE TO CREATE A POOL TO HELP CITIES BAND TOGETHER AND GET A BETTER RATE.

IN 1989, THEY HAD HAD SO MANY MEMBERS JOIN THAT THEY CHANGED THEIR NAME, AND THEY CHANGED IT TO THE ONE WE HAVE TODAY, HTML.

I SAY THAT REALLY FAST.

IT'S A DRINKING GAME IN THERE SOMEWHERE.

THE POOL OF APPROXIMATELY 2800 CITIES UTILIZE THE STRENGTH IN NUMBERS TO GET A BETTER COST FOR EVERY CITY, WHICH IS KIND OF ON THEME OF WHAT WE'VE BEEN TALKING ABOUT TODAY, RIGHT, WITH BUDGET AND TAX RATE AND BEST WAY TO USE OUR FUNDS.

AND THIS IS ONE OF THE WAYS IN THE CITY OF BURLESON UTILIZES ALL THE COVERAGE THEY PROVIDE, WHICH IS NOT JUST WORKER'S COMPENSATION, BUT LIABILITY AND PROPERTY INSURANCE, TOO. THERE'S ALSO WAS AN ITEM, I BELIEVE, EARLIER THIS EVENING FOR THEM TO DO CYBERSECURITY, TOO.

THAT WILL BE UTILIZING THAT TOO.

SO LET'S TALK A LITTLE BIT ABOUT THE BOARD AND THE BOARD STRUCTURE.

THERE ARE 15 MEMBERS ON THE BOARD.

IN ORDER TO BE ON THE BOARD, THERE IS NO PARTICULAR HTML REGION.

SO IT'S NOT LIKE REGION ONE IS RESPONSIVE TO PLACE ONE.

[01:30:05]

THEY'RE JUST KIND OF ALL OVER THE PLACE.

SO THERE'S NOT A LIMITATION ON THAT, WHICH GIVES US A BROADER BAND OF CANDIDATES TO CHOOSE FROM.

THE 12 MEMBERS ARE COMPOSED OF ELECTED OFFICIALS AND APPOINTED OFFICIALS, AND THEN THEY HAVE THREE MEMBERS ON THERE THAT THEY ARE WHAT THEY CALL AT LARGE CITIZENS, AND THOSE ARE APPOINTED BY THE BOARD.

SO CITIES DON'T VOTE ON THOSE.

THE BOARD THEMSELVES WILL APPOINT THOSE MEMBERS.

THEY SERVE STAGGERED TERMS AND THEY HAVE SIX YEAR TERMS EACH.

THEY'RE CHAIR AND VICE CHAIR ARE APPOINTED AMONG THEIR MEMBERSHIPS.

SO WHO'S ON THE BOARD? THIS IS THE LIST OF WHO'S ON THE BOARD CURRENTLY.

YOU CAN SEE THAT PLACE ONE IS VACANT.

YOU WILL NOT BE VOTING ON THAT BECAUSE THAT'S A CITIZEN ONE.

SO THAT WILL BE APPOINTED.

AND TONIGHT YOU ALSO WILL NOT BE VOTING ON PLACE 15 WHICH EXPIRES THIS YEAR BECAUSE THAT'S ALSO A CITIZEN.

SO THAT'S GOING TO BE BOARD APPOINTED.

SO WE CAN GET RIGHT INTO WHAT'S ON THE BALLOT THEN.

SO WHAT'S ON THE BALLOT IS PLACE 11 1213 AND 14.

AND IF YOU'LL SEE THERE ARE THE CANDIDATES THERE AND IN YOUR CANDIDATE PACKET, I PUT THIS AHEAD OF TIME SO THAT YOU COULD READ ON EACH CANDIDATE.

SO WE CAN START WITH PLACE 11 CANDIDATES THERE.

THERE ARE TWO CANDIDATES LISTED.

SO AT THIS TIME, COUNCIL IS OPEN FOR YOUR DISCUSSION TO DETERMINE WHICH ONE OF THESE CANDIDATES YOU WOULD WANT TO PUT YOUR VOTE BEHIND.

I KNOW NOTHING ABOUT THESE PEOPLE.

HOW DO HOW DO WE VOTE ON SOMETHING? WE DON'T KNOW ANYTHING ABOUT THEM? I GOT MY VOTE FOR 13 AND 14.

UNOPPOSED. THERE.

SO. SO I WILL JUST I WILL JUST POINT OUT THAT THERE IS A NOTATION OF WHO THE INCUMBENTS ARE.

SO IF OUR BOARD HAS BEEN PERFORMING WELL AS A GROUP AND AS A UNIT AND BEEN BRINGING OUT AND PROVIDING BETTER SERVICES FOR US, YOU MAY WANT TO TAKE THAT INTO CONSIDERATION. WELL, CONSIDERING HARLAN'S AN INCUMBENT, THEN I WOULD SAY WE JUST VOTE FOR THE INCUMBENTS AND ALL THE ALL THE OPEN SEATS OR THE AVAILABLE SEATS. WE'RE GOOD WITH THAT.

SORRY, HARLAN. AND YOU EVEN SHOWED UP TO THE MEETING.

IT'S NOT LIKE YOU DIDN'T SHOW UP AND GOT APPOINTED.

SO YOU WANT US TO BRAG ON YOU FIRST BEFORE WE DO THIS? I WOULD LIKE TO KNOW.

I JUST APPRECIATE YOU'RE DOING GOOD, HARLAN.

LET'S VOTE HIM IN. ALL RIGHT. THANK YOU.

I'M GOOD.

THE INCUMBENTS ALL THE WAY.

OKAY. IT'S A GOOD THING THAT PLAYS FOR.

HE GOT YOUR VOTE, TOO.

SO HE'S UNOPPOSED.

THANK YOU, MAYOR AND COUNCIL.

WE'LL MAKE THAT NOTATION.

SO IF YOU ASK FOR A VOTE.

PLEASE, SIR. IS THERE A MOTION ON NOTICE? I MOVE TO CAST OUR VOTES FOR ON PLACE 11, RANDY CRISWELL.

PLACE 12, ALLISON HAYWARD.

PLACE 13 HARLAN JEFFERSON AND PLACE 14 MIKE LAND.

I HAVE A MOTION BY ADAM AND SECOND BY ALEXA.

PLEASE VOTE. PASSES UNANIMOUSLY.

THANK YOU VERY MUCH.

THANK YOU, MAYOR AND COUNCIL.

I THINK HARLAN'S DONE A GREAT JOB ON THAT BOARD.

THAT BRINGS US TO SECTION EIGHT REPORTS AND PRESENTATIONS.

[8.A. Receive a report, hold a discussion, and give staff direction, on updates to the FY 2024-2025 Health Fund and benefit plan changes for 2025. (Staff Contact: Cheryl Marthiljohni, Director of Human Resources)]

EIGHT A IS TO RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF DIRECTION ON UPDATES TO THE FISCAL YEAR 2024-2025.

HEALTH FUND AND BENEFIT PLAN CHANGES FOR 2025.

THE STAFF PRESENTER IS CHERYL MARTIN.

MARTHA. JOHNNY. SORRY, DIRECTOR OF HUMAN RESOURCES.

THANK YOU, MISS CAMPOS.

I APPRECIATE THAT.

SO TONIGHT WE'RE GOING TO HAVE A COUPLE OF SPEAKERS IN FRONT OF YOU.

I'M GOING TO GIVE SOME INTRODUCTIONS FOR OUR BENEFIT CONSULTANTS, AND THEN I'M GOING TO TURN IT OVER TO HARLAN AND HIS NEWLY NOMINATED POSITION.

CONGRATULATIONS, HARLEY.

HARLAN, HE'S GOING TO TALK ABOUT THE FINANCIALS AS IT RELATES TO THE CITY'S HEALTH FUND.

AND THEN WE'LL COME BACK WITH REGARDS TO OUR BENEFITS, TO TALK THROUGH SORT OF SOME OF WHAT WE'RE SEEING IN THE MARKETPLACE, AS WELL AS OUR RFP WORK THAT WE DID.

SO I KNOW THERE IS A LOT OF INFORMATION IN THIS PRESENTATION, AND WE'RE GOING TO TRY TO DIGEST IT DOWN FOR YOU AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE AS WE GO THROUGH HERE.

SO WITHOUT ANY FURTHER ADO WE HAVE THE PRESENTATION.

THERE WE GO.

THANK YOU. I JUST WANT TO FIRST OFF, JUST GROUND US IN A GOAL STATEMENT THAT SAYS, YOU KNOW, THAT WE CONTINUE TO WANT TO MAKE SURE THAT WE'RE MAINTAINING BENEFITS FOR OUR EMPLOYEES, NOT ONLY FROM A COMPETITIVE STANDPOINT ON ATTRACTION, BUT ALSO FROM RETENTION.

ALSO, WHILE BEING FINANCIALLY RESPONSIBLE IN THE HEALTH FUND, WITH HEALTHCARE INCREASES CONTINUING TO GO UP EVERY YEAR.

[01:35:07]

SO MCGRIFF BENEFITS IS OUR BENEFIT CONSULTANTS THAT HELPED US WITH OUR RFP WORK THAT WE DID EARLIER THIS SUMMER WHEN WE WENT TO LOOK AT FULLY INSURED PLANS.

SO LANCE FINLEY WILL BE HERE TONIGHT TO PRESENT TO YOU THE FINDINGS OF THAT, AS WELL AS TALK MORE ABOUT SORT OF WHAT SOLUTIONS WE CAN COME UP WITH ON OPTIONS FOR OUR HEALTH PLAN. HE IS THE SENIOR VICE.

I MISSPELLED THAT. SORRY.

SENIOR VICE PRESIDENT OF EMPLOYEE BENEFITS.

AND THEN NIKKI ROSS, I WOULD BE REMISS IF I DIDN'T GIVE HER A SHOUT OUT, EVEN THOUGH SHE'S NOT HERE TONIGHT.

SHE WAS THE SENIOR ACCOUNT MANAGER THAT REALLY PUT A LOT OF WORK AND WORKED WITH THE CITY'S HR TEAM.

IN REGARD TO WHAT YOU'RE GOING TO SEE HERE TONIGHT.

I'LL LET LANCE TALK A LITTLE BIT ABOUT MCGRIFF, BUT WITHOUT FURTHER ADO, I'M GOING TO INVITE HARLAN UP TO TALK A LITTLE BIT ABOUT THE FINANCIALS OF THE HEALTH FUND, AND THEN HE'LL TURN IT OVER TO LANCE, AND WE'LL BE READY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.

THANK YOU ALL. THANK YOU.

THANK YOU. CHERYL I REMIND THE COUNCIL BACK IN JUNE, ON JUNE 17TH, WE TALKED TO YOU ABOUT THE HEALTH FUND AND LOOKED AT A FIVE YEAR PERIOD. THIS IS BEFORE WE BROUGHT LANCE ON BOARD.

AT THAT TIME, WE TALKED ABOUT HAVING AN ANNUAL 5% INCREASE IN THE CITY'S PREMIUM AS WELL AS THE EMPLOYEE PREMIUM GOING FORWARD.

WE SAID WE HAD ANTICIPATED A 7 TO 10% INCREASE IN EXPENDITURES OVER THE FIVE YEAR HORIZON, AND WE TALKED ABOUT ENGAGING A CONSULTANT TO HELP US LIMIT THE COST INCREASES ANNUALLY.

AND THAT'S WHAT MCGRIFF AND LANCE WAS BROUGHT ON BOARD TO HELP US ACCOMPLISH THAT.

IN TERMS OF NEXT FISCAL YEAR, YOU SEE OUR FORECAST LISTED ON THE SLIDE HERE.

WE HAVE THE CITY PREMIUMS AND EMPLOYEE PREMIUMS, AS WELL AS OTHER REVENUE SOURCES TOTALING $6.5 MILLION.

ON THE EXPENDITURE SIDE, WE HAVE AN ESTIMATE OF OUR CLAIMS, OTHER EXPENDITURES.

I'M SORRY. I MEAN, OTHER REVENUE EARLIER.

OTHER EXPENDITURES FOR A TOTAL OF ALMOST $7.3 MILLION.

SO WE HAVE A DEFICIT OF OVER $750,000.

IF YOU WERE TO LOOK BACK TO OUR PREVIOUS FORECASTS, WE HAD INCLUDED IN THAT 571,000 ON THE REVENUE SIDE FOR A REVENUE COMING INTO THE FUND, AS WELL AS ON THE EXPENDITURE SIDE FOR A COST ALLOCATION BACK TO THE GENERAL FUND.

ONCE WE BROUGHT MCGRIFF ON BOARD, WE HAD CONVERSATIONS WITH THEM, AND THEY RECOMMENDED THE BEST BUSINESS PRACTICE WAS NOT TO HAVE A COST ALLOCATION LIKE OUR OTHER FUNDS HAVE.

SO, WE REMOVED IT FROM THE REVENUE SIDE AND EXPENDITURE.

SO IT WAS A NEUTRAL IMPACT.

BUT I WANT TO EXPLAIN THAT TO THE COUNCIL.

SO IF YOU WERE COMPARING PREVIOUS NUMBERS TO THE NUMBERS THAT WE HAVE GOING FORWARD, SO USING A FISCAL YEAR 25 AS A BASE YEAR, YOU SEE THE NUMBERS HERE, THE REVENUE THAT I MENTIONED, THE EXPENDITURES AS WELL AS THE DEFICIT OF IS, 750,000 ARE LISTED.

WE USE THAT AS THE BASE YEAR.

AND IF YOU GO FORWARD USING ASSUMPTION THAT LANCE GAVE US OF 9% INCREASES ON THE EXPENDITURE SIDE, THAT'S CLAIMS AS WELL AS OTHER EXPENDITURES, AND ONLY A 5% INCREASE ON PREMIUM SIDE FROM THE CITY AND THE EMPLOYEE.

THEN WE HAVE A 4% DEFICIT GROWING EVERY YEAR ON TOP OF THE 750,000.

SO, YOU SEE, VERY QUICKLY WE MOVE AWAY FROM A HEALTHY FUND BALANCE INTO THE INTO THE RED.

I WANT TO TAKE A MOMENT AND REALLY HIGHLIGHT THE CURRENT YEAR.

IN THE CURRENT YEAR, YOU SEE THAT WE HAVE A FUND BALANCE ENDING FOR FISCAL YEAR 2324 OF 21, EXCUSE ME, OVER 51%.

AND I WANT TO JUST MENTION THAT THE PLAN REALLY HAS PERFORMED WELL UP TO THIS POINT.

WE HAD A BAD YEAR LAST FISCAL YEAR.

WE HAD BUDGETED A DEFICIT FOR THIS YEAR.

WE TALKED TO LANCE ABOUT WHAT IS A GOOD HEALTHY FUND BALANCE NUMBER.

AND HE TOLD US ANYWHERE FROM SIX, EXCUSE ME, THREE MONTHS TO SIX MONTH PERIOD.

SO THAT'S 25% TO 50%.

SO YOU CAN SEE WHERE WE'RE FORECASTING IN THE CURRENT YEAR IS REALLY RIGHT ON THE MARK WHERE WE WOULD WANT TO BE.

AND I THINK THE UPPER LIMIT IS IMPORTANT.

SO IF YOU HAVE A BAD YEAR, YOU CAN ABSORB THAT AND A PLAN CAN CONTINUE OPERATING AS PLANNED OR AS INTENDED THE FOLLOWING YEAR.

SO, I KNOW WE'VE HAD A BAD YEAR LAST YEAR, BUT IT LOOKS LIKE THOSE WHO PLAN THE HEALTH INSURANCE BUDGET DID IT REALLY WELL UP TO THIS POINT, WE'RE JUST FORECASTING OUT WHICH IS THE TOWN TENDENCY GOING FORWARD AND WHAT'S THE IMPACT OF THAT.

SO THIS SETS THE STAGE OF THE CONCERNS THAT WE HAVE GOING FORWARD.

AND, AND, AND LANCE IS GOING TO COME FORWARD AND TALK ABOUT STRATEGIES TO, TO MITIGATE THAT.

THANK YOU VERY MUCH, HARLAN.

MR. MAYOR, MEMBERS OF CITY COUNCIL, CITY MANAGER LANCE MCGRIFF.

[01:40:06]

JUST AS CHERYL MENTIONED, JUST A LITTLE BACKGROUND ON MCGRIFF IN GENERAL AND IN MY BACKGROUND, THE DFW OFFICE FOR MCGRIFF, WE ARE THE CENTRAL HUB FOR THE PUBLIC ENTITY, MUNICIPALITY ENVIRONMENT FOR BOTH THE PROPERTY CASUALTY SIDE OF THE INSURANCE BUSINESS AS WELL AS THE EMPLOYEE BENEFITS.

SO A LOT OF SPECIFIC FOCUS WITH CITIES.

A LOT OF YOUR PEERS HERE IN THE METROPLEX THAT THAT I PERSONALLY WORK WITH.

SO IT'S A PLEASURE TO BE HERE AND HAPPY TO BE WORKING WITH YOU ON THIS PROJECT.

RIGHT. JUST DOWN ON THIS, IS THAT RIGHT HERE ON O ON THE KEYBOARD? OKAY. YEP.

ALL RIGHT. SO, YOU KNOW, ONE OF THE THINGS WE WANTED TO GET DIRECTION AND TALK TO THE COUNCIL ABOUT IS, YOU KNOW, HARLAN MENTIONED THE BUDGET PROJECTED BUDGET SHORTFALL FOR NEXT FISCAL YEAR OF $750,000.

YOU KNOW, REALLY, WHAT? WE'RE HERE TODAY, TONIGHT IS TO TALK TO YOU ABOUT A PROPOSAL TO OFFSET THAT BUDGET DEFICIT BY 500, ROUGHLY $550,000.

AND THEN KNOWING, AS HARLAN SHOWED YOU ON THOSE PRIOR PROJECTIONS, THAT MOVING FORWARD INTO THE FUTURE FISCAL YEARS, WE ARE GOING TO HAVE TO IF WE'RE GOING TO BUDGET 5% INCREASES FROM A REVENUE SIDE, BOTH ON THE CITY'S PROJECTED REVENUE AND THE EMPLOYEE PROJECTED REVENUE INCREASES, WE'RE GOING TO HAVE TO FIND 4% SOMEWHERE ELSE.

NATIONAL TRENDS.

REGIONAL TRENDS SUGGEST THAT MEDICAL AND PHARMACY INFLATION COMBINED IS ROUGHLY 9% PER YEAR.

AND THAT'S BEEN VERY STABLE, YOU KNOW, FOR THE LAST FIVE YEARS.

SO I JOKINGLY TOLD HARLAN YOU KNOW, SEVERAL MONTHS AGO THAT IN MY BUSINESS.

UNFORTUNATELY, I'VE BEEN DEALING WITH INFLATION FOR THE 23 YEARS THAT I'VE BEEN IN THE BUSINESS.

SO WE'RE USED TO THIS.

IT'S ACTUALLY DOWN FROM DOUBLE DIGITS.

IT WAS YOU KNOW, AT THE EARLY PART OF MY CAREER.

SO BUDGETING THESE 5% INCREASES, AS HARLAN SHOWED YOU, WE STILL ARE GOING TO HAVE TO COME UP WITH STRATEGIC OFFSETS TO COME UP WITH 9%.

SOME OF THOSE PROJECTS THAT THE CITY HIRED ME TO DO, WE'RE GOING TO BE PRESENTING TONIGHT AS WELL TO TALK ABOUT, YOU KNOW, STRATEGICALLY, HOW DO WE COME UP WITH THAT OTHER 4% ON AN ANNUAL BASIS? AND PLEASE STOP ME DOWN IF YOU'VE GOT QUESTIONS AS I GO THROUGH THE PRESENTATION.

WE SINCE WE PROVIDED THE PRESENTATION IN ADVANCE, THERE WILL BE SOME AREAS THAT I'LL PROBABLY HIT AT A HIGH LEVEL, BUT PLEASE STOP ME.

I'D BE HAPPY TO ANSWER QUESTIONS FOR YOU.

SO ADDRESSING THE FUND GAP THERE WERE REALLY THREE CORE PROJECTS THAT THE CITY HIRED US TO DO.

AND AND ONE OF THOSE WAS TO PERFORM AN RFP FOR FULLY INSURED MEDICAL, DENTAL AND VISION COVERAGES.

SO, YOU KNOW, THAT WAS A BIG PART OF OUR OUR PROJECT.

I'M GOING TO GO THROUGH THOSE RESULTS WITH YOU.

WE DID RECEIVE A GREAT RESPONSE FROM THE MARKET.

SO I'LL KIND OF GO INTO THOSE DETAILS CONSIDERING OUR MONTHLY CONTRIBUTION CHANGES.

THOSE ARE REALLY PREMIUM ALLOCATIONS FOR THE EMPLOYEES.

WE TALKED ABOUT PLAN DESIGN CHANGES.

AND I'M GOING TO SHOW YOU SOME DETAILS ON THAT PLANE.

DESIGN CHANGES TO BOTH THE HDHP OR HIGH DEDUCTIBLE HEALTH PLAN.

WE USE A LOT OF ACRONYMS IN OUR BUSINESS.

SO I APOLOGIZE.

AND THEN THE CO-PAY PLAN, WHICH IS, YOU KNOW, THE PLAN WHERE EMPLOYEES CAN BUY UP AND THEY CAN HAVE CO-PAYS FOR PRESCRIPTION DRUGS AND OFFICE VISITS.

WE ARE GOING TO MAKE SOME CHANGES TO THE SHORT TERM DISABILITY PROGRAM.

WE'RE GOING TO TALK ABOUT THAT A LITTLE BIT.

WE ARE LOOKING AT THE HEALTH SAVINGS ACCOUNT.

AND ARE WE CONTRIBUTING PROPORTIONATELY TO OUR PEERS? WE DO.

YOU KNOW, I DID SOME BENCHMARK WORK FOR THE CITY.

WE WENT TO A LOT OF YOUR PEERS THAT THAT HR IDENTIFIED AND WE GOT THEIR BENEFIT PLAN DESIGNS, WHAT THEY CONTRIBUTE TO THEIR HSA ACCOUNTS, ET CETERA. SO ALL OF THOSE THINGS CAME INTO CONSIDERATION.

AND THEN WE DID GO TO UNITEDHEALTHCARE, YOUR CURRENT PARTNER FOR SELF-INSURANCE, AND TALKED TO THEM ABOUT WHAT ARE SOME OPPORTUNITIES THAT WE CAN, I CALL IT LOW HANGING FRUIT. WHAT ARE SOME OPPORTUNITIES WE CAN ADDRESS THAT MAY IMPACT NOBODY? IT MAY IMPACT SOME OR A SMALL PERCENTAGE OF THE POPULATION.

SO THAT'S YOU SEE THE PRE-AUTHORIZATION PROCESS ON ADDITIONAL DRUGS.

BUT SHERYL MENTIONED IT IN.

A BIG THING THAT I HAVE TO FOCUS ON WITH THE FINANCIAL MINDSET IS ALSO THAT WE'RE REMAINING AND KEEPING A COMPETITIVE BENEFIT

[01:45:05]

PACKAGE TO NOT ONLY RETAIN OUR CURRENT EMPLOYEES, BUT TO ATTRACT NEW EMPLOYEES.

ALL RIGHT. SO LET'S GO THROUGH THE INITIAL THE REALLY THE NUMBER ONE PROJECT I HAVE, WHICH WAS TO GO OUT AND GET THE FULLY INSURED QUOTES FOR MEDICAL, DENTAL AND VISION.

YOU KNOW, COMPARED TO COMPARED FULLY INSURED PROPOSALS TO CURRENT FUNDING RATES AND COSTS ASSOCIATED WITH OUR SELF-FUNDED HEALTH PLAN, WE DID FACTOR IN. SO WE ARE A SELF-INSURED PROGRAM.

SO IF WE WERE TO SHUT THE HEALTH PLAN DOWN DECEMBER 31ST, WE WOULD HAVE.

IN PARTICULAR, I GIVE AN EXAMPLE OF WE HAD AN EMPLOYEE THAT WENT TO THE DOCTOR DECEMBER 15TH.

WELL, THAT CLAIM MAY NOT BE PAID UNTIL JANUARY OR FEBRUARY.

SO WE WOULD SHUT DOWN THE SELF-FUNDED HEALTH PLAN, BUT WE WOULD STILL POTENTIALLY INCUR COSTS AFTER THAT.

AND I'M GOING TO SHOW YOU THOSE DETAILS HERE IN A SECOND.

SO WE DID HAVE TO FACTOR THAT IN ALONG WITH THE COST OF THE FULLY INSURED PROGRAMS. WE REALLY ENJOY OUR RELATIONSHIP.

MY FEEDBACK FROM THE CITY, FROM THE AIR STAFF, FROM FINANCE AND EVEN UP TO THE CITY MANAGER IS THAT RIGHT NOW, EMPLOYEES ARE NOT REALLY SEEING ANY ISSUES WITH UNITED HEALTH CARE. WE OBVIOUSLY LAST FISCAL YEAR, THE CITY INCURRED SOME INCREASED COST OVER THE PRIOR YEAR.

SO, YOU KNOW, A LOT OF THE REASONS THAT I'M HERE TODAY.

BUT FROM A SERVICE PERSPECTIVE, FROM A NETWORK PERSPECTIVE YOU KNOW, EVERYTHING SEEMS TO BE RUNNING FINE WITH UNITED HEALTH CARE.

AND I'LL TELL YOU, THEY'RE ONE OF MY PREFERRED PARTNERS.

MOST OF MY CUSTOMERS, MY MUNICIPAL CUSTOMERS, MY PRIVATE SECTOR CUSTOMERS ARE EITHER WITH BLUE CROSS, BLUE SHIELD OR UNITED HEALTH CARE.

THAT'S A MAJORITY OF WHERE MY BUSINESS IS.

WE DID RECEIVE FIVE FULLY INSURED MEDICAL QUOTES, SO WE BASICALLY RECEIVED A RESPONSE FROM THE ENTIRE MARKET.

AND LIKE I SAID, I WAS VERY HAPPY TO SEE THAT.

AND WE RECEIVED SEVEN FULLY INSURED DENTAL AND VISION PROPOSALS.

I WON'T BORE YOU WITH ALL THE DETAILS HERE, BUT BASICALLY ON THE FAR LEFT IS OUR CURRENT 2024 RATES.

AND REMEMBER, WE DO EVERYTHING ON A CALENDAR YEAR SO SLIGHTLY DIFFERENT THAN OUR FISCAL YEAR BUDGET PROCESS THAT YOU ALL ARE GOING THROUGH RIGHT NOW. BUT WE HAVE A CURRENT RATE STRUCTURE.

WE HAVE THE TWO PLANS THAT I MENTIONED.

AND WITH THAT RATE STRUCTURE SET WE'RE BUDGETED FOR, YOU KNOW, FIVE POINT I THINK IT'S 5.8 MILLION.

I'M SORRY. I'VE GOT IT RIGHT HERE IN FRONT OF ME.

WE ARE BUDGETING THAT 10% INFLATIONARY INCREASE FOR NEXT YEAR.

SO OUR SELF-FUNDED HEALTH PLAN EXPENSES JUST THE THE HEALTH.

WE'RE NOT TALKING ABOUT DENTAL, WE'RE NOT TALKING ABOUT HSA CONTRIBUTIONS, ANYTHING LIKE THAT.

WE JUST SIMPLY PUT IN A FLAT NUMBER BASED ON TREND OF 10%, GETTING US UP TO THAT $6.4 MILLION NUMBER FOR FOR CALENDAR YEAR 2025.

THEN WE FACTOR IN THE QUOTES THAT WE RECEIVED.

WHAT'S FUNNY IS UNITEDHEALTHCARE.

WE CONVINCED THEM AND HAD THEM SUBMIT A BID.

THEY WERE AT 9.98% INCREASE OVER THE CURRENT COST THIS YEAR.

AETNA WAS LESS COMPETITIVE AT 20.33%.

WE'VE GOT BLUE CROSS BLUE SHIELD IN HERE AT 9.34%.

AND THEN CIGNA WHO'S BEEN ACTUALLY VERY COMPETITIVE LATELY, I DON'T HAVE A LOT OF BUSINESS WITH THEM, BUT THEY ARE ONE OF THE MAJOR MANAGED CARE ORGANIZATIONS AROUND THE COUNTRY, AND THEY'VE BEEN VERY COMPETITIVE.

THEY ACTUALLY GAVE US, YOU KNOW, A FLAT PROPOSAL OFF OF OUR CURRENT, WHAT WE CALL OUR ADVERTISED RATES.

SO YOU SEE THAT 0%.

BUT I HAVE A LINE ITEM DOWN HERE.

AND ONCE AGAIN I APOLOGIZE FOR THE ACRONYM IB AND R THAT IS INCURRED BUT NOT REPORTED.

THOSE ARE THE SELF-FUNDED CLAIMS THAT I WAS TELLING YOU THAT WE WOULD PROJECT.

THE CITY OF BURLESON WOULD SPEND IF WE SHUT DOWN THE HEALTH PLAN ON 1231, SO WE WOULD INCUR, YOU KNOW, ESTIMATED THREE MONTHS OF MEDICAL AND PHARMACY CLAIMS AT 1.25 MILLION.

WHEN YOU WHEN YOU FACTOR IN THE INCURRED BUT NOT REPORTED CLAIMS, IT DOES MAKE ALL OF THESE BIDS UNCOMPETITIVE COMPARED TO OUR SELF-FUNDED PROJECTIONS FOR NOT ONLY FISCAL YEAR 25, BUT PLAN YEAR 25.

AND YOU CAN KIND OF SEE THOSE NUMBERS.

THEY RANGE ANYWHERE FROM 8.63% WITH CIGNA UP TO 29% WITH AETNA.

SO YOU KNOW, WE WOULD BASICALLY BE DOUBLE PAYING FOR JANUARY, FEBRUARY AND MARCH IF THAT MAKES SENSE.

[01:50:09]

SO AND I'M WORKING WITH TOMMY AND HARLAN AND CHERYL AND THE REST OF THE HR DEPARTMENT.

I JUST WANT TO YOU KNOW, WE DEAL WITH THIS EVERY DAY.

WE DO HAVE A LOT OF CUSTOMERS THAT ARE FULLY INSURED.

THEY ARE RECEIVING RENEWAL INCREASES AS WELL.

I KIND OF SIMPLIFY IT AS WE HAD THAT BAD FISCAL YEAR 23.

2223 I BELIEVE WE WOULD HAVE RECEIVED A REALLY ROUGH RENEWAL AT, AT THE, AT RENEWAL TIME I'VE RECEIVED FOR CLIENTS THAT ARE RUNNING REALLY GOOD, THEY MAY SEE A FLAT INCREASE UP TO, YOU KNOW, I'M SEEING CUSTOMERS RECEIVING 3,035% INCREASES.

SO YOU KNOW WHAT? WE'RE INCURRING THOSE COSTS IN REAL TIME AS A SELF-FUNDED HEALTH PLAN VERSUS IF WE'RE RUNNING BAD, WE'RE JUST GOING TO SEE THAT ONCE OUR 12 MONTH RENEWAL CONTRACT ENDS.

SO LOOKING AT ALL THE INFORMATION THAT I'VE BEEN PROVIDED, AND WE DO HAVE KIND OF SOME YOU KNOW, KIND OF SOME FULLY INSURED AND SELF-FUNDED DIFFERENCES HERE.

BUT, YOU KNOW, OUR RECOMMENDATIONS TO BOTH TO CITY ADMINISTRATION IS THAT A FULLY INSURED PROGRAM IS NOT NECESSARILY GOING TO IT'S NOT GOING TO SOLVE OUR PROBLEMS. IF WE'RE HAVING INCREASES IN COST.

THE INSURANCE CARRIERS ARE GOING TO COME FOR THAT AT RENEWAL.

SO, WE WANT TO ADDRESS THAT.

IS THERE ANY, YOU KNOW, KIND OF QUESTIONS AS IT RELATES TO THAT RFP PROCESS? YOU KNOW, KIND OF GOING OUT FOR FULLY INSURED BIDS JUST TO SEE WHAT THE MARKET DICTATED THERE.

OKAY. MY RECOMMENDATION, ONCE AGAIN, JUST TO BE VERY CLEAR, IS THAT THE CITY REMAINS SELF-FUNDED FOR PLAN YEAR 2025.

ALL RIGHT. WE'RE GOING TO TALK A LITTLE BIT ABOUT THE BENCHMARKING PROJECT.

THAT WAS REALLY KIND OF OUR NUMBER TWO PROJECT.

WE WENT OUT AND PEER CITIES WERE IDENTIFIED BY THE HR DEPARTMENT.

AND PEERS CAN BE SIMILAR SIZED CITIES, CITIES THAT WE COMPETE WITH, CITIES THAT YOU KNOW, THAT LOOK A LOT LIKE US, YOU KNOW, PARTICULARLY HERE IN THE METROPLEX. AND I THINK IT'S A VERY IMPORTANT PRACTICE THAT MOST OF MY CUSTOMERS DO TO MAKE SURE THAT WE ARE COMPETITIVE VERSUS OUR FRIENDS AND NEIGHBORING CITIES.

WE'VE GOT OURS HIGHLIGHTED IN RED.

HERE YOU CAN SEE THE LIST OF CITIES THAT WE WENT TO AND YOU CAN SEE THE FUNDING ARRANGEMENTS.

SO I'VE REALLY GOT NOTED HERE.

YOU KNOW, THERE WERE FOUR CITIES THAT ARE FULLY INSURED AND ROUGHLY TEN CITIES THAT ARE THAT ARE SELF-FUNDED.

SO ANYWAY, YOU SEE THAT THE LARGE MAJORITY OF OUR MUNICIPAL CLIENTS AND PEERS ARE ALREADY SELF-FUNDED.

ALL RIGHT. I'M ONCE AGAIN, I'M NOT GOING TO GO THROUGH THE DETAILS OF THE PEER BENCHMARKS, BUT WHAT WE DID AND HOW WE USED THIS INFORMATION WAS LOOKING AT OUR PEERS, SEEING WHAT THEY'RE DOING.

IT'S VERY DIFFICULT TO COMPARE US TO INDIVIDUAL CITIES, BUT WHAT WE DID IS HOLISTICALLY, WE LOOKED AT WHAT ARE THE DEDUCTIBLES THAT THEY ARE OFFERING, WHAT TYPES OF PLANS ARE THEY OFFERING, OR ARE THEY OFFERING A HIGH DEDUCTIBLE HEALTH PLAN WITH AN HSA ACCOUNT, OR ARE THEY OFFERING COPAY PLANS? WHAT ARE THEY CHARGING FOR THOSE PLANS? WHAT ARE THEIR DEDUCTIBLES? WHAT ARE THEIR OUT-OF-POCKET MAXIMUMS, WHAT ARE THEIR CO-PAYS, ET CETERA? AND THAT'S REALLY HOW WE CAME TO THE RECOMMENDATIONS THAT WE DID ON PLAN DESIGN AND WHAT WE'RE GOING TO BE PRESENTING TO THE COUNCIL TONIGHT.

SO ONCE AGAIN, HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE ON OUR BENCHMARKING PROJECT.

BUT I'M GOING TO GET INTO THE TO THE RECOMMENDED BENEFIT CHANGES IF THERE'S NO QUESTIONS.

ALL RIGHT. SO THIS WAS ALREADY KIND OF PRIOR TO MCGRIFF'S ARRIVAL FOR THIS PROJECT, THERE WAS ALREADY INTERNAL COMMUNICATION ABOUT A 5% CONTRIBUTION INCREASE STARTING ON JANUARY 1ST, 2025.

WE YOU KNOW, ADMINISTRATION AND MCGRIFF.

WE IDENTIFIED NAVY GUARD, WHICH IS A UHC PROGRAM FOR OUT-OF-NETWORK BENEFITS.

IT'S REALLY NOTHING THAT IMPACTS EMPLOYEES ON A DAY TO DAY BASIS.

IT'S REALLY A DIFFERENT WAY OF ADMINISTERING THE OUT-OF-NETWORK BENEFITS THAT YOU KNOW, CLAIMS THAT MAY COME IN.

THE ANALYSIS THERE, WE'RE GOING TO SHOW YOU THE DETAILS HERE IN A MINUTE.

BUT I THINK IT WAS, YOU KNOW, $50,000 IN FISCAL YEAR IMPACT.

[01:55:05]

WE ARE GOING TO REMOVE THE HEALTH REIMBURSEMENT ACCOUNT ON THE COPAY PLAN.

WE ALREADY HAVE A VERY COMPETITIVE CO-PAY PLAN.

WE JUST KIND OF AS A, AS A TEAM, WORK TOGETHER TO SAY WE DON'T NEED THIS HEALTH REIMBURSEMENT ACCOUNT.

IT'S ACTUALLY VERY COMPLEX YOU KNOW, DIFFICULT.

WE'VE TRIED TO COMMUNICATE THAT BENEFIT TO THE EMPLOYEES.

AND IT'S BEEN VERY DIFFICULT TO YOU KNOW, UNDERSTAND AT TIMES.

SO IT'S NOT MUCH OF A FISCAL YEAR ROLLOUT, BUT IT WAS REALLY UNNECESSARY.

AND THERE IS EXPOSURE TO THE CITY FINANCIALLY IF, IF A LOT OF EMPLOYEES STARTED TO FILE CLAIMS ON THAT, WE WANT TO REMOVE A PROVISION. WE ARE NOT RECOMMENDING REMOVING STOP LOSS INSURANCE.

STOP LOSS INSURANCE IS VERY IMPORTANT.

THAT'S SOMETHING THAT Y'ALL SPEND A LOT OF MONEY ON.

SO WE WANT TO MAKE SURE THAT WE'VE GOT THE APPROPRIATE VENDORS IN HERE AND THAT YOU GUYS ARE, OR THE CITY IS WELL PROTECTED.

BUT THERE IS A PROVISION IN THAT CONTRACT THAT WE'RE RECOMMENDING REMOVAL ON THAT WILL BASICALLY REDUCE THOSE RATES AT RENEWAL.

AND THEN I MENTIONED MOVING THE SHORT TERM DISABILITY TO AN TO A VOLUNTARY BENEFIT VERSUS AN EMPLOYER PAID BENEFIT.

THE BENCHMARKING STUDIES THAT WE'VE DONE BACK THAT UP AS WELL.

VISION PREMIUM INCREASE OF 2.5%.

THAT WAS ACTUALLY NEGOTIATED DOWN IN THE RFP.

SO THAT'S ONE LITTLE WIN THAT WE HAD.

THEY STARTED AT A HIGHER RATE AND WE WERE ABLE TO KIND OF NEGOTIATE THAT DOWN WITH COMPETITIVE DATA.

WHAT WILL BE STAYING THE SAME.

WE ARE GOING TO STAY WITH UHC.

ON THE NETWORK SIDE.

I'VE TOLD YOU IT'S A VERY ROBUST NETWORK.

MY CLIENTS WITH UNITEDHEALTHCARE ARE VERY HAPPY.

THE PREMIUM DISCOUNT PROGRAM.

SO EVEN THOUGH THERE'S A 5% INCREASE TO THE EMPLOYEE PREMIUMS, ALL EMPLOYEES WILL STILL HAVE ACCESS TO SAVE MONEY.

IF THEY DO THE WELLNESS PLAN.

THE MEDICAL OPT OUT BENEFIT WILL REMAIN THE SAME.

LONG TERM DISABILITY EAP AND LIFE INSURANCE.

DENTAL PLAN AND VISION PLAN DESIGN.

OTHER BENEFIT CHANGES ADDING EMPLOYEE VOLUNTARY PET INSURANCE.

THE HR TEAM HAS BEEN WORKING ON A CATASTROPHIC LEAVE DONATION PROGRAM.

CHERYL PRESENTED TO YOU EARLIER THE ADDITIONAL PERSONAL DAY AND EXPANDING THE TELEWORK AND ALTERNATIVE WORK SCHEDULES AND THEN EXPANDING ON THE WELLNESS POINTS PROGRAM THAT EMPLOYEES HAVE ACCESS TO TODAY.

THIS JUST IS THE BENCHMARK ON THE PEER CITIES AS IT RELATES TO THE SHORT TERM DISABILITY FOR HAVE IT AS A VOLUNTARY BENEFIT, THREE HAVE AS AN EMPLOYER PAID BENEFIT AND SIX DO NOT OFFER.

I CAN'T CLAIM TO KNOW EVERYTHING ABOUT SICK BANKS AND MY MUNICIPAL CUSTOMERS HAVE, BUT MOST OF YOUR EMPLOYEES HAVE ACCRUED ENOUGH SICK LEAVE THAT WOULD GET THEM THROUGH TO LONG TERM DISABILITY.

THE VOLUNTARY SHORT TERM DISABILITY PLAN THAT WE'RE RECOMMENDING FOR THOSE NEWER EMPLOYEES THAT COME IN AND DON'T HAVE SICK BANK ACCRUALS, THEY'LL BE ABLE TO BUY SHORT TERM DISABILITY TO GET THEM UNTIL THAT ACCRUAL BUILDS UP TO WHERE THEY NO LONGER NEED IT.

AND THEN ONCE AGAIN, THE LONG TERM DISABILITY WOULD REMAIN IN PLACE.

HERE ARE THE RATES WITH THE 5% INCREASE TO EMPLOYEE PREMIUMS. AND YOU CAN KIND OF SEE THAT ON THE FAR RIGHT.

ONCE AGAIN WE'VE PROVIDED THIS TO EVERYONE.

BUT YOU CAN KIND OF SEE HOW THAT WOULD IMPACT THE EMPLOYEES PAYCHECKS PER PAY PERIOD.

AND THEN BY TIER.

SO THE CO-PAY PLAN IS A MORE EXPENSIVE PROGRAM.

IT'S A RICHER BENEFIT, OBVIOUSLY.

SO THOSE RATES WOULD GO UP A LITTLE BIT MORE THAN THE HIGH DEDUCTIBLE HEALTH PLAN.

AND THEN THE CITY IS GOING TO INCREASE THE HEALTH PREMIUM DISCOUNT, AS I MENTIONED FROM, SO THAT THAT HSA OR THE HIGH DEDUCTIBLE HEALTH PLAN REMAINS A ZERO COST PLAN FOR THOSE EMPLOYEES THAT PARTICIPATE.

YOU CAN SEE THAT AT A 10% INCREASE, IT JUST BASICALLY DOUBLES ALL THE PER PAY PERIOD INCREASES.

BUT THAT IS SOMETHING FOR CONSIDERATION WITH THE COUNCIL TONIGHT IN OUR PRESENTATION.

AND THEN WE'VE GOT A VARIABLE PAY OPTION WHERE WE'RE REALLY MOVING TO MORE OF A PERCENTAGE BY TIER.

BASED ON IF YOU HAVE EMPLOYEE SPOUSE COVERAGE, IF YOU HAVE EMPLOYEE CHILD COVERAGE, IF YOU HAVE EMPLOYEE FAMILY COVERAGE, YOU COULD PAY SLIGHTLY HIGHER RATES THAN JUST

[02:00:07]

THE, YOU KNOW, 5% INCREASE OR THE 10% INCREMENTAL INCREASES THAT WE HAVE.

ALL RIGHT. BENEFIT PLAN DESIGN CHANGES I'M REALLY GOING TO FOCUS ON OPTION TWO BECAUSE THAT'S WHAT WE KIND OF CAME TO A CONSENSUS ON.

YOU'LL SEE ONCE AGAIN ON THE FAR LEFT WE HAVE A AND I'LL FOCUS ON DEDUCTIBLE.

DEDUCTIBLE IS SOMETHING THAT REALLY EVERYBODY KIND OF GLEANS IN ON, AS WELL AS WHAT THEIR PREMIUMS ARE GOING TO BE OUT OF THEIR PAYCHECK.

BUT RIGHT NOW WE HAVE A $3,200 DEDUCTIBLE ON OUR HIGH DEDUCTIBLE HEALTH PLAN, AND WE HAVE A $2,000 DEDUCTIBLE ON OUR COPAY PLAN. SO ONCE AGAIN, THROUGH THE BENCHMARK STUDIES AND EVERYTHING, WE FELT LIKE, HEY, YOU KNOW, OBVIOUSLY WITH THE FISCAL YEAR CHALLENGES WE'RE HAVING FROM A BUDGET PERSPECTIVE, WE'VE GOT SOME WIGGLE ROOM HERE.

WE ARE GOING TO ALSO HAVE A REQUIRED IRS CHANGE.

YOU'LL SEE THAT. OPTION ONE I JUST HIGHLIGHT A REQUIRED IRS CHANGE TO OPTION TO THE HIGH DEDUCTIBLE HEALTH PLAN.

AND THOSE GO UP ANNUALLY BASED ON LIKE I SAID, THE IRS REQUIREMENTS.

BUT OPTION TWO IS REALLY WHAT WE'RE HONING IN ON WHERE WE WOULD WE'RE MAKING A RECOMMENDATION OF TAKING THAT DEDUCTIBLE ON THE HIGH DEDUCTIBLE HEALTH PLAN, AN ADDITIONAL $200 ABOVE THE IRS REQUIREMENT TO $3,500.

WE WOULD THEN ALSO TAKE THE COINSURANCE, OR THE PERCENTAGE THAT THE PLAN IS PAYING FROM 90% TO 80% AFTER THAT DEDUCTIBLE IS MET ONCE AGAIN WITHIN BENCHMARKS OF YOUR PEER CITIES.

AND THEN WE WOULD HAVE A DEDUCTIBLE CHANGE ON THE CO-PAY PLAN OF $500 FROM 2000 TO $2500. AND YOU CAN SEE THE FISCAL YEAR SAVINGS IS 180,000.

SO THAT WOULD HELP US KNOCK OUT SOME OF THAT $750,000 DEFICIT THAT WE HAVE.

WE CAN COME BACK TO OPTION THREE IF THERE'S SOME DISCUSSION ON THAT.

THAT WAS SOMETHING THAT WE KIND OF PUT ON THE TABLE, AS YOU KNOW, HEY, IF WE WANT TO KEEP HEALTH SAVINGS ACCOUNT CONTRIBUTIONS WHERE THEY ARE IF THE, THE CITY COUNCIL DECIDES THAT WE HAVE TO MEET THAT FULL $750,000 OBLIGATION.

WE CAN, YOU KNOW, COME BACK AND REVISIT THIS OPTION.

BUT I DO BELIEVE AND, YOU KNOW, TOMMY'S HEARD ME SAY, THIS IS, I DO BELIEVE THAT THIS OPTION KIND OF TAKES US SLIGHTLY ABOVE OUR PEERS AND BENCHMARKS.

AND WE COULD HAVE, YOU KNOW WHEN IT COULD BE PROBLEMATIC WHEN TRYING TO RECRUIT TALENT FROM OTHER CITIES HERE IN THE METROPLEX. ALL RIGHT.

SO ONE OF THE THINGS THAT WE IDENTIFIED WAS THE HEALTH SAVINGS ACCOUNT CONTRIBUTION.

WE ARE VERY GENEROUS.

MOST OF OUR MUNICIPAL CLIENTS DO PROVIDE SEED MONEY INTO THE HSA ACCOUNT, AND IT'S GREATLY APPRECIATED.

I THINK IT REALLY ENCOURAGES PEOPLE TO SIGN UP FOR THE HIGH DEDUCTIBLE HEALTH PLAN.

A LOT OF FOLKS HAVE BUILT UP, YOU KNOW, REVENUE OVER TIME AS A REMINDER THAT MONEY ROLLS OVER EVERY YEAR.

IF YOU DON'T USE IT, IT STAYS IN YOUR ACCOUNT AND IT GOES WITH YOU WHEN YOU LEAVE.

BUT ONE OF THE THINGS THAT WE IDENTIFIED IS THAT CURRENTLY WE FOR AN INDIVIDUAL OR AN EMPLOYEE, WE GIVE $1,000.

AND IF YOU HAVE A FAMILY, WE GIVE YOU $2,000.

YOU'LL SEE THAT THE AVERAGE CONTRIBUTIONS OVER HERE ARE SIX, 31, 43 FOR INDIVIDUALS BASED ON OUR PEER CITY REVIEW, AND THEN 1153 FOR FAMILIES. SO ONE OF THE THINGS THAT WE HAVE IN OUR LIST IS TO TAKE OUR CONTRIBUTIONS DOWN TO $750 AND $1,500, AND THAT WOULD BRING $110,000 OF FISCAL YEAR SAVINGS TO OUR BUDGET ITEM HERE ON THE HEALTH FUND.

ALL RIGHT.

HERE ARE THE OPTIONS AND THE IMPACTS FOR EMPLOYEES.

PLAN DESIGN CHANGES INCREASING DEDUCTIBLES AND OUT OF POCKET.

THE IMPACT THERE WOULD BE EVERY EMPLOYEE ON THE HEALTH PLAN ESTIMATED THERE'S 377 EMPLOYEES.

THERE ARE 365 RETIREES ON THE PLAN ALSO THAT WOULD BE IMPACTED BY PLAN DESIGN CHANGES, LOWERING THE HEALTH SAVINGS ACCOUNT CONTRIBUTION THAT WOULD ONLY IMPACT EMPLOYEES ON THE HIGH DEDUCTIBLE HEALTH PLAN THAT HEADCOUNT IS.

AND IT CHANGES EVERY MONTH.

SO WE JUST SAY ESTIMATED THERE 282 EMPLOYEES ADDITIONAL INCREASES ON TOP OF THE 5%.

[02:05:03]

EVERY EMPLOYEE ON THE HEALTH PLAN WOULD SEE THOSE INCREASES.

AND THEN IF WE WANTED TO EXPAND OUR PHARMACY PRIOR AUTHORIZATION PROGRAM, THERE'S 29 DRUGS AND 45 MEMBERS THAT WOULD BE IMPACTED.

THAT COULD BE EMPLOYEES, IT COULD BE FAMILY MEMBERS.

THERE COULD BE SOME, YOU KNOW, THERE COULD BE AN EMPLOYEE THAT IS TAKING MULTIPLE DRUGS.

SO THAT NUMBER COULD BE A LITTLE BIT SMALLER.

BUT WE WANTED TO GIVE THE COUNCIL AS MUCH DATA AS WE COULD THERE.

ALL RIGHT. SO THE SAVINGS WE'VE IDENTIFIED THIS IS THESE ARE THINGS THAT, YOU KNOW, WE WANT TO MOVE FORWARD ON THAT WILL IMPACT THE $750,000 IN DEFICIT.

THE NAVIGATOR PROGRAM I TOLD YOU ABOUT THAT THE HRA REMOVAL, THE PROVISION IN THE STOP LOSS CONTRACT AND THE MOVING THE SHORT TERM DISABILITY TO A VOLUNTARY BENEFIT. SO THAT WOULD BRING IN $204,000.

AND THEN YOU'LL SEE ON FUTURE SLIDES, WE'RE GOING TO WHEN WE SAY IDENTIFIED SAVINGS THAT ARE THESE FOUR ITEMS THAT WE REALLY WOULD LIKE TO JUST MOVE FORWARD WITH THAT ONCE AGAIN IMPACT THE FISCAL YEAR BUDGET.

ALL RIGHT. HERE'S WHERE WE YOU KNOW, ONCE AGAIN, WE WERE OPEN TO DISCUSSION HERE AND DIRECTION FROM THE COUNCIL.

BUT WE HAVE IDENTIFIED KIND OF, YOU KNOW, THREE DIFFERENT EXAMPLES OF HOW WE WOULD LIKE TO PROCEED WITH COMING UP WITH THE PROJECTED GOAL OF 550,000.

YOU'VE GOT THE IDENTIFIED SAVINGS IN ALL THREE CATEGORIES.

AND THEN YOU'LL SEE EXAMPLE A, REDUCING THE HSA CONTRIBUTION, ADDING THE PRIOR AUTHORIZATION.

AND THEN PLAN DESIGN.

OPTION TWO WILL HELP US MEET OUR COMMUNICATED GOAL HERE, JUST OVER OUR COMMUNICATED GOAL OF $557,000. SO OPTION OR EXAMPLE B WOULD BE THE IDENTIFIED SAVINGS PLUS THE PLAN OPTION THREE.

SO THAT WOULD BE LEAVING OUR HSA CONTRIBUTIONS THE SAME.

OUR PRIOR AUTHORIZATION.

THAT'S SOMETHING THAT WE WOULD NOT DO EITHER.

AND THEN EXAMPLE C IS THE PREMIUM, THE VARIABLE PREMIUM OPTION, WHICH WOULD BRING IN $96,000 AND THEN HSA CONTRIBUTION REDUCTION AND THEN PLAN OPTION TWO.

SO THAT'S ONCE AGAIN THAT'S THE HIGHEST PROJECTED IMPACT FROM A SAVINGS PERSPECTIVE.

ONCE AGAIN ALL THREE MEETING THE $550,000 GOAL.

TOMMY DO YOU WANT TO. YEAH.

MAYOR COUNCIL I WOULD JUST SAY A FEW THINGS.

ONE, THE 550,000 GOAL WAS ESTABLISHED BY ME, AND THE INTENTION WAS SIMPLY TO TRY TO GET TO A POINT WHERE WE WEREN'T CLOSING THAT GAP ALL IN ONE YEAR. WHEN HARLAN GETS UP TO SPEAK ABOUT OUR FIVE YEAR FORECAST, HE'LL TALK ABOUT THIS IS GOING TO BE AN ONGOING YEAR OVER YEAR THING THAT WE'RE GOING TO HAVE TO DO BECAUSE AS LANCE HAS ALREADY MENTIONED, OUR ANTICIPATED COSTS ARE GOING TO GO UP 9% IF WE CAN CONTINUE TO CONTRIBUTE AT 5%, WELL, WE HAVE A DELTA OF 4%.

WE'RE GOING TO HAVE TO CONTINUALLY LOOK AT WAYS TO MAKE UP THAT MIGHT BE MADE UP.

DO WE HAVE A GOOD PLAN HERE? AND WE HAVE ADDITIONAL FUND BALANCE AND WE CAN, YOU KNOW, UTILIZE THAT OR MAYBE FUTURE PLAN DESIGN CHANGES THAT WE HAVE TO MAKE.

THE INTENTION HERE ONE WAS SIMPLY TO TRY TO NOT HAVE DRASTIC SWEEPING CHANGES FOR THE EMPLOYEES ALL IN ONE YEAR.

I THINK THE OTHER THING, TOO, IS THAT WE'RE NOT WE'RE NOT NECESSARILY ASKING THE COUNCIL TO TRY TO DO OUR WORK FOR US MORE.

SO THE HOPE IS TO GET DIRECTION ON WHETHER OR NOT YOU'RE COMFORTABLE THAT A $550,000 GAP CLOSING, OR IF YOU PREFER TO BE AT A FULL 750.

A LOT OF WHAT'S GOING TO ULTIMATELY GUIDE MY RECOMMENDATION TO YOU ALL IS GOING TO BE BASED ON THE FEEDBACK THAT WE'VE HAD FROM OUR BENEFITS COMMITTEE, AS WELL AS OUR DEPARTMENTAL MEETINGS. WE'VE MET WITH THE POLICE AND FIRE ASSOCIATIONS.

SO I WISH I COULD TELL YOU THAT I HAD A UNIFORM ANSWER FROM EVERYBODY, BUT EVERYBODY'S SITUATION IS DIFFERENT, SO EVERYBODY'S PREFERENCES ARE A LITTLE BIT DIFFERENT.

SO YEAH, I THINK THAT THE EXAMPLE A IS A GOOD EXAMPLE OF A WAY TO GET THERE.

THE EMPLOYEES WERE CERTAINLY CONCERNED ABOUT THE REDUCTION OF THEIR HSA CONTRIBUTIONS FOR THOSE INDIVIDUALS THAT ARE ON THAT PLAN.

THERE WAS ALSO A FAIR AMOUNT OF CONCERN ABOUT THE PRIOR AUTHORIZATION.

THERE WAS LESS CONCERN IN TERMS OF DEPENDING ON THE GROUP EMPLOYEE PREMIUM INCREASES.

BUT AGAIN, THAT ONLY ADDS ABOUT $35,000, YOU KNOW, TO CLOSE THE GAP.

IT DOESN'T MOVE THE NEEDLE QUITE A BIT UNLESS YOU ACTUALLY HAVE FAIRLY SIGNIFICANT INCREASES.

THERE WAS NOT AS MUCH CONCERN REGARDING THE PLAN DESIGN CHANGES AS I THOUGHT THERE MAY HAVE BEEN, BUT OF COURSE THOSE IF YOU GO ALL THE WAY TO OPTION THREE, AS LANCE HAS

[02:10:07]

INDICATED, I'VE GOT PERSONAL CONCERNS THAT WE MAY NOT BE AS COMPETITIVE, AND THEN THOSE FOR INDIVIDUALS THAT DO FIND THEMSELVES IN A POSITION WHERE THEY'RE GOING TO BE AT THEIR MAX OUT OF POCKET FOR INDIVIDUAL OR MAX OUT OF POCKET FOR FAMILY, THEY WILL BE SIGNIFICANTLY IMPACTED.

SO JUST IN TERMS OF WHERE MY HEADSPACE IS AT RIGHT NOW, I WOULD LIKE TO STILL CONTINUE TO HAVE SOME FLEXIBILITY TO HAVE CONVERSATIONS WITH THE EMPLOYEES. BUT EXAMPLE A IS LIKELY WHERE I'M LEANING RIGHT NOW.

I DO THINK THAT THERE IS AN OPTION TO POTENTIALLY LOOK AT HOW WE'RE MAKING OUR CONTRIBUTIONS FOR THE HSA.

RIGHT NOW, THEY'RE SPLIT, SO YOU GET HALF AT THE BEGINNING OF THE YEAR AND THEN HALF IN THE MIDDLE OF THE YEAR.

IF WE FRONT LOADED THAT ALL TO KIND OF OFFSET THE IMPACT OF THE REDUCTION, WE'D ANTICIPATE A $20,000 REDUCTION ON THE SAVINGS.

SO RATHER THAN 110, THAT WOULD BE $90,000.

AND AGAIN, THOSE ARE ESTIMATIONS, BUT THAT WOULD STILL PUT US CLOSE TO THAT.

THAT GOAL OF 550.

SO I THINK I'LL STOP THERE WITH THAT EXPLANATION, BUT I THINK JUST SEEK DIRECTION ON WHERE THE COUNCIL WOULD LIKE TO BE.

AND THAT MAY BE A DISCUSSION THAT YOU CAN HAVE AFTER YOU LOOK AT YOUR THE FIVE YEAR FORECAST AS WELL, BUT HAPPY TO ENTERTAIN QUESTIONS.

ANYBODY. YEAH.

GO AHEAD DAN. NO.

YEAH. TOMMY.

FIRST OF ALL, I'D LIKE TO THANK MCGRIFF AND LANCE AND STAFF FOR WORKING HARD FOR THE BENEFITS, FOR THE EMPLOYEES, FOR THIS CITY, AND ALSO FOR THE SAVINGS THAT THE EMPLOYER HAS, WHICH IS THE CITIZENS.

YOU TOOK CARE OF BOTH ENDS VERY WELL.

SOME OF THE QUESTIONS I HAVE IS THE STOP LOSS INSURANCE, IS THAT ROLLED INTO THE UHC OR WILL IT BE A SEPARATE BINDER? YEAH, IT'S COUNCILMAN.

THAT'S A GREAT QUESTION.

WE WHAT WE HAVE DONE FOR THIS PRESENTATION TODAY IS WE HAVE ANTICIPATED AN INCREASE TO YOUR STOP LOSS INSURANCE.

I THINK I'M USING ESTIMATES OF ABOUT 10%.

AND THEN THE IDENTIFIED SAVINGS AS IT RELATES TO THE STOP LOSS IS ONCE AGAIN JUST REMOVING A PROVISION IN THE CONTRACT THAT WOULD ALLOW US TO SEE SOME SAVINGS OFF OF THAT 10%.

OUR CURRENT INSURANCE CARRIER FOR THE STOP LOSS IS ACTUALLY SYMETRA.

IS THAT IT'S BERKSHIRE HATHAWAY.

I'M SORRY. BERKSHIRE HATHAWAY IS ACTUALLY OUR REINSURANCE CARRIER RIGHT NOW.

IF THAT ANSWERS YOUR QUESTION, UNITED HEALTH CARE DOES NOT CARRY THE STOP LOSS INSURANCE.

I KNOW PREVIOUSLY, YEAR OVER YEAR, HISTORICALLY, OUR INCREASE WAS 11 TO 15% ON STOP LOSS.

YES, SIR. THERE WAS A SPECIAL RATE NEGOTIATED LAST YEAR.

IT WAS WELL APPRECIATED.

YES, SIR. IS THAT GOING TO BE THE HISTORY GOING FORWARD? OR DO YOU THINK IT WILL BE 9% JUST LIKE THE OTHER? YEAH. YOU KNOW.

STOP LOSS INSURANCE A LOT LIKE, YOU KNOW, PROPERTY INSURANCE, YOU KNOW, AUTO WORKERS COMP SOME OF THE THINGS ON THE OTHER SIDE OF THE HOUSE, IT'S THE INFLATIONARY IMPACTS ARE SIGNIFICANT.

LIKE I SAID, YOU KNOW, I'M USING 10% ON STOP LOSS INSURANCE.

CURRENTLY SOME OF OUR CUSTOMERS ARE SEEING A 0%.

OTHERS MAY SEE 15 OR 20.

SO WE'RE JUST KIND OF A PLACE MARK NUMBER.

BUT I WOULD EXPECT US TO SEE SOME INFLATIONARY INCREASES TO OUR STOP LOSS THIS YEAR.

YES, SIR. OKAY. ON THE IBNR INJURED BUT NOT RESERVED.

IT APPEARS THAT IT'S ROLLED INTO THE UHC PLAN AT 1.25 MILLION.

IS THAT CORRECT? ARE WE GOING TO HAVE TO PULL A RESERVE FOR IT? YES, SIR. SO WE IF WE REMAIN SELF-FUNDED, WHICH IS MY RECOMMENDATION, WE REALLY FROM AN IBNR PERSPECTIVE, INCURRED BUT NOT REPORTED.

THAT'S REALLY JUST A FINANCIAL COMPONENT THAT THE AUDITORS ASK FOR.

THE IBNR WOULD REALLY COME INTO PLAY.

IF WE GO FULLY INSURED, WE WOULD HAVE TO PAY PREMIUMS, PLUS WE WOULD HAVE TO INCUR RUN OUT CLAIMS ON OUR SELF-FUNDED PROGRAM. SO THAT'S WHAT'S CAUSING THOSE FULLY INSURED QUOTES TO LOOK SO BAD.

FRANKLY, I DON'T KNOW IF I'M ANSWERING YOUR QUESTION OR NOT, BUT IBNR IS REALLY MORE IMPACTFUL.

IF WE WERE TO MOVE FULLY INSURED FROM A FISCAL BUDGETARY STANDPOINT.

OKAY. SO WITH THE PLAN THAT WE'RE RECOMMENDING HERE, EXAMPLE A, WE GOT A LOWER COST, BUT THEY'RE GOING TO GIVE UP SOME BENEFITS. EMPLOYEES WILL GIVE UP SOME BENEFITS.

AND MOSTLY THAT'LL BE IN COPAY AND COINSURANCE, GOING FROM A 9010 TO AN ON HDHP TO AN 80/20 AND TO GET THAT COPAY.

[02:15:04]

NORMALLY THAT'S CATASTROPHIC.

IT DOESN'T HAPPEN ON A REGULAR BASIS.

RIGHT? SO LOOKING AT THE SAVINGS, I THINK WE'D BENEFIT THE EMPLOYEES AND THE CITY AND THE CITIZENS WOULD BENEFIT FROM THE SAVINGS HERE.

557 NOW BRINGING THE FEE DOWN TO 43.80 AFTER FIVE YEARS, THE FUND BALANCE PERCENTAGE.

WAS THAT WAS THAT THE GOAL YOU WERE SHOOTING FOR? BECAUSE I'M LOOKING AT HERE WITH A 5% INCREASE FOR EMPLOYEES AND SAVING IT AT 200 FOR 770, WHICH IS THE FOUR ITEMS THAT THE CITY IDENTIFIED.

YES, SIR. WOULD BRING IT DOWN TO AROUND 32.42.

AND I KNOW WE'RE TRYING TO STAY BETWEEN 25 AND 50.

SO IS IT BENEFICIAL TO THE CITY TO STAY UP NEAR 50 IN CASE WE HAVE A CATASTROPHIC EVENT THE NEXT YEAR OR SO? THESE QUESTIONS STARTED TO COME IN BEFORE I WAS EVEN HIRED.

OKAY. I, YOU KNOW, PERSONALLY, THE BIGGER THE FUND BALANCE IS, THE BETTER IT IS, THE EASIER THE JOB IS FOR ME, AND THEN FOR HARLAN OR WHOEVER THE FINANCE DIRECTOR IS, AND ULTIMATELY THE CITY MANAGER.

I THINK 50% IS A VERY GOOD CONSERVATIVE NUMBER.

I WOULD BE COMFORTABLE WITH THREE MONTHS WORTH.

BUT A 50% FUND BALANCE ON YOUR ANNUAL PROJECTED COST WOULD BE THE GOLD STANDARD INDUSTRY PRACTICE FOR THE CITY OF BURLESON.

OKAY. WELL, LOOKING AT THE PLANS THAT YOU CAME UP WITH AND YOU PRESENTED HERE, I'M GOOD WITH THE SELF-FUNDED EXAMPLE A.

THANK YOU. THAT'S.

I'VE GONE OVER IT SEVERAL TIMES AND THAT'S THE BEST OPTION THAT THERE IS AVAILABLE.

I FOUNDED A BUSINESS 34 YEARS AGO, AND 34 TIMES I'VE HAD TO LOOK AT SPREADSHEETS ABOUT HEALTH INSURANCE PLANS THAT LITERALLY MADE ME DIZZY AND HAVE TO MAKE THAT DECISION BASICALLY UNILATERALLY.

FORTUNATELY, TONIGHT I HAVE SIX INTELLIGENT, CAPABLE PEOPLE WHO ARE ALL GOING TO SHARE THE SAME GRIEF THAT I HAVE TO SHARE TO TRY TO PICK OUT THE PATH TO GO.

BUT IT ALWAYS SEEMED TO ME LIKE IN ALL THOSE YEARS OF DELIBERATION ABOUT HEALTH INSURANCE PLANS THAT IT DESCRIBED IN AD INFINITUM, DETAIL HOW MUCH THIS DEDUCTIBLE WOULD GO UP, HOW MUCH THAT MAXIMUM COPAY WOULD GO DOWN, HOW MUCH THIS IN-NETWORK, THAT OUTLET.

NOBODY EVER SAYS THIS IS WHAT OUR EMPLOYEES LIKE.

THIS IS WHAT CAUSES OUR WORKFORCE TO THINK OF THE CITY OF BURLESON, OR MCCLENDON CONSTRUCTION AS BEING A POSITIVE EXAMPLE OF TAKING CARE OF ITS EMPLOYEES BY GIVING THEM A POLICY THAT'S UNDERSTANDABLE THAT THEY CAN WORK WITH, THAT DOESN'T PUT THEM THROUGH THE KINDS OF ONEROUS BURDENS THAT I'VE SEEN. IF I SIGN UP FOR THIS POLICY.

THEN I ALSO HAVE TO PUT UP WITH IT MYSELF.

I'VE, IN RECENT YEARS, GONE TO UNITED HEALTH CARE, WHO'S CARRIED MY COVERAGE FOR QUITE A WHILE AND INSTITUTED AN HMO PLAN, AND MONTHS LATER FOUND MYSELF SITTING IN A GENERAL PRACTITIONERS OFFICE TRYING TO EXPLAIN TO HIM WHAT THE SURGERY WAS THAT MY RIDE I NEEDED THAT WAS RECOMMENDED BY MY OPTOMETRIST, WHO HAS THE KIND OF AUTOMATED EQUIPMENT AND CAN EVEN RECOGNIZE WHAT A MACULAR PUCKER IS AND LET ALONE TELL THEM HOW TO DO A VITREOUS PEEL.

AND THE DOCTOR I'M TALKING TO DOESN'T EVEN UNDERSTAND WHAT I'M SAYING.

BUT BEFORE UNITED HEALTH CARE WOULD PAY FOR THAT, I HAD TO GO BACK TO THIS GP AND GET THEM TO MAKE A REFERRAL TO A SURGEON THAT HE'D NEVER HEARD OF.

AND THIS GETS IDIOTIC.

AND MY POINT IN ALL THIS DIGRESSION IS I WANT TO SPEND THE CITY'S MONEY ON WHAT OUR EMPLOYEES PERCEIVE AS A POSITIVE BENEFIT FOR THEM.

BECAUSE IF WE DO THAT, THEN I'M MEETING THE OVERARCHING GOAL OF TRYING TO MAKE THE CITY OF BURLESON AN OUTSTANDING EXAMPLE OF AN EMPLOYER SO THAT WE CAN ATTRACT AND RETAIN THESE HIGHEST EMPLOYEES.

I APPRECIATE ALL THE GREAT MINDS AND ALL THE EFFORT AND THE BUILDING OF SPREADSHEETS AND ANALYSIS OF PLANS IN GREAT DETAIL.

BUT WHAT I REALLY WANT TO DO IS SPEND THE CITY'S MONEY IN SUCH A WAY THAT THE EMPLOYEES GET THE BEST DEAL THAT WE CAN PROVIDE FOR THEM WITHIN OUR MEANS.

AND I'M GLAD, TOMMY, FOR YOUR REMARKS, THAT YOU WANT TO KEEP THE DIALOG GOING WITH OUR EMPLOYEES AND OUR AND OUR ORGANIZATIONS WITHIN THE CITY, BECAUSE THAT'S WHERE I WANT TO FOCUS MY ATTENTION, I WANT TO I WANT TO GIVE THEM THE THINGS THE BEST THAT WE CAN AFFORD TO DO.

YEAH. I THINK, YOU KNOW, AGAIN, THESE ARE ALL EXAMPLES.

[02:20:03]

AND AGAIN, I WISH THAT THERE WAS AN OVERWHELMING MAJORITY OF EMPLOYEES THAT WANTED X, Y, OR Z CHANGES.

THE CHALLENGE JUST BECOMES WHEN THERE'S SO MANY AND EVERYONE HAS DIFFERENT SITUATIONS, IT BECOMES DIFFICULT.

I THINK THAT I CAN SAY THE BIGGEST CONCERN REVOLVED AROUND THE PRIOR AUTHORIZATION AND THE AND THE HSA REDUCTION.

HOWEVER, DEPENDING ON THE AMOUNT OF SAVINGS THAT OR THE AMOUNT OF DEFICIT THAT WE WANT TO TRY TO ADDRESS, ONE OR BOTH OF THOSE WILL HAVE TO BE ON THE TABLE TO A CERTAIN EXTENT.

I'D HAVE TO SAY THAT MY PERCEPTION OF REDUCING THE HSA CONTRIBUTION AND THE PRIOR AUTHORIZATION IS NOT TAKING THE SAVINGS OUT OF THE CITIES OR THE CITIZENS, THE TAXPAYERS' POCKETS. IT'S TAKING IT OUT OF OUR EMPLOYEES POCKETS.

THAT'S MONEY THAT THEY WOULD GET TO PAY FOR THEIR HEALTH CARE NEEDS IF WE KEPT OUR CONTRIBUTIONS WHERE THEY ARE.

SO WE CAN'T REALLY BRAG THAT WE SAVED MONEY IF IT'S THE MONEY THAT WE'RE SAVING IS COMING OUT OF OUR EMPLOYEES POCKETS.

AM I READING THAT WRONG? IT'S NOT NECESSARILY THAT YOU'RE READING IT WRONG, BUT WHEN YOU LOOK AT THE AND LANCE CAN SPEAK TO THIS BETTER THAN I CAN.

BUT WHEN YOU LOOK AT THE TOTAL COST PER EMPLOYEE THAT THE CITY PAYS, WE'RE PAYING ABOUT 88% OF THE MEDICAL COSTS ASSOCIATED WITH AN EMPLOYEE, AND THE EMPLOYEES ARE PAYING 12.

SO THAT'S WHEN YOU SEE THAT 5% INCREASE.

IT'S ABOUT ONLY ABOUT $35,000, BECAUSE THE VAST MAJORITY OF THE COST ASSOCIATED WITH THE PLAN IS PAID FOR BY THE BY THE CITY.

SO IT DEPENDS ON HOW YOU LOOK AT IT, IN THE SENSE THAT THE CITY IS PUTTING IN THE VAST MAJORITY OF THE COST ASSOCIATED WITH THE PLAN.

I'VE HAD THE SAME SITUATION WITH UNITED HEALTH, WHERE WITH MY COMPANY WE HAD A HARD TIME DEALING WITH THEM, AND I DON'T KNOW IF THEY'VE CHANGED OR WHATEVER, BUT I DON'T THINK IT'S NECESSARILY UHC.

IT'S JUST THE KIND OF PLAN THAT WE WERE ON AND WHAT IT WAS, AND WE WERE FACING LARGE JUMPS IN THE PREMIUMS. AND, YOU KNOW, I'M PAYING THE LION'S SHARE OF THAT OUT OF THE COMPANY'S REVENUE.

WE HAD A HARD TIME WITH THEM.

SO BUT THE COST OF APPOINTING ALL OF THAT WAS THAT THE COST SAVINGS MAY COST YOU IN WAYS THAT YOU CAN'T SEE IF YOU SAVE THE MONEY, BUT YOU LOSE YOUR ATTRACTIVENESS AS AN EMPLOYER OF CHOICE, THEN WE'RE NOT ABLE TO MEET OUR STRATEGIC GOALS OF PROVIDING THE BEST WORK, THE BEST SERVICE TO OUR CITIZENS BY HIRING AND RETAINING THE BEST EMPLOYEES IN THE MARKET.

THAT'S ALL I'M SAYING.

THAT'S OKAY. MAYOR PRO TEM, YOU'RE NOT WRONG.

AND AGAIN, I'LL GO BACK TO, YOU KNOW, THE INTENTION OF BRINGING FORWARD 550,000 OF THE 750 WAS TO SHOW THAT WE'RE TRYING TO MAKE SOME RELATIVELY AGGRESSIVE CHANGES, BUT NOT ALL IN ONE YEAR.

WE'RE GOING TO HAVE TO LOOK AT THIS ON A CASE BY CASE BASIS.

SO I'M TRYING TO BE CAREFUL IN NOT REDUCING TOO MUCH.

AND, YOU KNOW, SWINGING THE PENDULUM TOO FAR ON THE OTHER SIDE BECAUSE IT'S POSSIBLE WE COULD HAVE A GOOD A BETTER CLAIM YEAR.

BUT I DIDN'T WANT TO NOT GO FAR ENOUGH AND BE MINDFUL ABOUT THE FACT THAT IF WE DIDN'T MAKE ANY CHANGES, YOU COULD SEE WHAT THE FUND BALANCE WAS GOING TO DO IN 2 OR 3 YEARS. I THINK IT'S SUCH WHETHER, YOU KNOW, IF IT SWINGS 50 TO $75,000 ONE WAY OR ANOTHER, IT'S LARGELY NOT GOING TO BE SIGNIFICANTLY IMPACTFUL SO LONG AS WE KNOW THAT IF IT GOES IN THE WRONG WAY, WE'RE GOING TO HAVE TO MAKE IT UP THE FOLLOWING YEAR.

AND SO IT JUST MEANS POTENTIALLY GREATER SHIFTS THAN A 4%.

DO YOU NEED DIRECTION ON THE FIRST THREE EXAMPLES? I THINK WHAT I WOULD RECOMMEND IS THAT THERE'S STILL A FEW MORE SLIDES.

I WANT TO LET HARLAN SHOW YOU THE FIVE YEAR FINANCIALS, AND THEN WE CAN PROBABLY GET TO THAT POINT IF THAT'S OKAY WITH YOU.

AND THANKS, TOMMY.

I DID WANT TO GET THROUGH A COUPLE OF THESE OTHER SLIDES.

JUST TO CLARIFY, JUST SOME HISTORICAL DIFFERENCES.

WE HAVE HAD NO PREMIUM CHANGES SINCE 2020 TO THE HIGH DEDUCTIBLE HEALTH PLAN AND 2021 ON THE CO-PAY PLAN.

WE'VE MADE SOME CHANGES TO THE HIGH DEDUCTIBLE HEALTH PLAN COINSURANCE IN 2020.

WE ACTUALLY IMPROVED THAT BENEFIT FROM 8020 TO 9010.

WE ADDED THE SHORT TERM DISABILITY BENEFIT IN 2022.

WE'VE IMPROVED THE CITY LIFE INSURANCE AND ONCE AGAIN IMPROVED THE LEAVE PROGRAM FOR EMPLOYEES AS WELL.

AND THEN TO THE COUNCILMAN'S POINT, YOU KNOW, I JUST WANT TO CLEARLY STATE THAT WE MET WITH THE BENEFITS COMMITTEE.

I WAS A PART OF THAT.

TOMMY WAS A PART OF THAT.

HR WAS A PART OF THAT.

WE GOT SOME GREAT FEEDBACK TO.

TO HIS POINT, WE GOT MIXED SIGNALS IN THE ROOM.

BUT, YOU KNOW, A CONSENSUS WAS THAT I THINK THEY UNDERSTAND THE, YOU KNOW, THE FISCAL SITUATION THAT WE'RE IN.

YOU KNOW, CHERYL, CHERYL MET WITH THE POLICE AND FIRE ASSOCIATION, AND THEN THERE WERE VARIOUS DEPARTMENT MEETINGS AS WELL.

[02:25:05]

SO AND THEN TOMMY'S POINTED OUT KIND OF THE GENERAL FEEDBACK WAS, YOU KNOW, WE SAW SOME RESERVATIONS ON THE PREAUTHORIZATION.

YOU KNOW, THEY PREFERRED PLAN DESIGN CHANGES VERSUS PREMIUM INCREASES.

AND, YOU KNOW, THEY IN OUR BENEFITS COMMITTEE, THE ONE THAT I ATTENDED, THEY PREFERRED, YOU KNOW, HAVING THE HSA ACCOUNT VERSUS THE PLAN DESIGN CHANGES. AND ONCE AGAIN, I JUST, YOU KNOW, CAUTION TOMMY AND THE REST OF THE ADMINISTRATION THAT WE JUST, YOU KNOW, FROM A COMPETITIVE STANDPOINT, WE WANT TO MAKE SURE WE'RE STAYING COMPETITIVE THERE.

TURN IT BACK OVER TO YOU, HARLAN.

ALL RIGHT. THANK YOU.

LANCE. I WANT TO SHOW YOU THE FIVE YEAR FORECAST.

ASSUMING THE EXAMPLE A THE 557,000 IN SAVINGS WAS PLUGGED IN.

WE TALKED ABOUT THE COST ALLOCATION BEING REMOVED.

SO IT'S REMOVED HERE AS WELL FROM THE REVENUE SIDE AS WELL AS THE EXPENDITURE SIDE.

THE WAY WE REACH THE 557,000 SAVINGS YOU NOTICE THAT THAT WE DROPPED FROM A DEFICIT OF 750,000 FOR NET REVENUE TO LOSS TO NEGATIVE OF 993,000.

NOW, SO WE HAD THE SHORT TERM DISABILITY, THE 97,000 FOR THAT.

THAT WASN'T ACTUALLY AN EXPENDITURE IN THE HEALTH INSURANCE FUND.

IT WAS EMBEDDED IN THE DEPARTMENT FUNDS.

SO, WE DIDN'T TAKE THAT OUT AS A PLAN DESIGN CHANGE HERE MINUS THAT 557,000, MINUS THE 97,000.

YOU COME UP WITH A -460,000.

BUT THE 97,000 CAME IN AS REVENUE ON THE ON THE TOP SIDE.

SO STILL YOU HAD THE NET EFFECT OF 460,000 REDUCTION IN EXPENDITURES PLUS 97,000 IN REVENUE.

SO YOU STILL REACHED THE 457,000.

FROM THERE, WE FORECAST THE 9% INCREASE IN EXPENDITURES GOING FORWARD, AS WELL AS THE 3% INCREASE IN EMPLOYEE PREMIUMS AS WELL AS EMPLOYEE PREMIUMS GOING FORWARD.

SO THE WAY THE FORMULA WOULD WORK, ONCE YOU REDUCE THE MAKE THOSE PLAN DESIGN CHANGES, YOU REDUCE THAT DOWN AND THEN THE EXPENDITURES GO FORWARD BASED ON A 9% GROWTH MINUS THOSE PLANNED DESIGN CHANGES IN FISCAL YEAR 26.

AND THAT'S WHERE WE TRIED TO RECOUP THE 193,000 IN SAVINGS THAT WE DIDN'T PICK UP.

SO, AS LANCE MENTIONED, WE'RE GOING TO HAVE THIS DEFICIT OF 4% EVERY YEAR.

AND HE BELIEVES HE CAN WORK WITH US SO WE CAN MAKE SOME OTHER CHANGES TO RECOUP THAT.

SO WE FORECAST IN FISCAL YEAR 23 A 4% SAVINGS.

IT'S THE 475,000 PLUS THE 193,000.

SO THAT NUMBER IS HIGHER THAN JUST STRAIGHT 4%.

SO WE'RE PICKING UP THE 193 FROM FISCAL YEAR 25 PLUS 4% OF SAVINGS AND THEN REDUCING THE OTHER EXPENDITURES AND FORECASTING FORWARD.

THEN THE SUBSEQUENT YEARS ARE ALL JUST BASICALLY PLAN DESIGN CHANGES AT 4% GOING FORWARD.

SO, THE NET EFFECT OF THAT IS YOU BASICALLY PICK UP THE COVER THE DEFICIT OVER A TWO YEAR PERIOD.

THAT'S HOW IN FISCAL YEAR 26, YOU SEE THE NET REVENUE.

WE GET TO ZERO BECAUSE OF THAT.

AND THEN GOING FORWARD, WE'RE JUST ASSUMING WE HAVE A 4% SAVINGS.

SO THAT KEEPS US REALLY, YOU KNOW, ABOVE 40% OF FUND BALANCE GOING FORWARD WITH THAT METHODOLOGY.

SO THAT GIVES US A LITTLE BIT OF LEEWAY.

WE DON'T STAY RIGHT AT THE 50% THAT LANCE TALKED ABOUT OVER THE FIVE YEAR HORIZON, BUT WE'RE STILL AT THE UPPER END OF THE RANGE THAT HE HAD FORECAST.

WITH THAT, I'D BE HAPPY TO RESPOND TO ANY QUESTIONS YOU MAY HAVE.

THIS ISN'T NECESSARILY A QUESTION, BUT I THINK THE PREAUTHORIZATION LISTENING TO WHAT DAN WAS SAYING ABOUT HIS PREDICAMENT, AND I THINK MANY OF US HAVE FACED SOME HOOP JUMPING THAT WE HAVE TO DO WHEN WE'RE TRYING TO GET SOMETHING APPROVED.

INSURANCE IS JUST SO FUN TO DEAL WITH.

BUT I MEAN, WHEN WE'RE I HAVE NO DOUBT THAT STAFF IS UNBELIEVABLY APPRECIATIVE OF US BEARING A GOOD CHUNK OF THIS THAT PRE-AUTHORIZATION.

I MEAN, SOMETIMES IT GETS TO THE POINT OF LIKE, WHY DID I GET THE DIRECTIVE FROM THE PHYSICIAN IF I WAS GOING TO HAVE TO MAKE ALL OF THESE ADDITIONAL PEOPLE APPROVE SOMETHING THEY MAY NOT EVEN UNDERSTAND THAT I NEED, THAT IS MORE HEADACHE.

[02:30:06]

AND TO SOMEBODY THAT'S, SOMETHING THAT'S, YOU KNOW, MAJOR, THAT IS NOT SOMETHING YOU WANT TO BE DEALING WITH.

AND I JUST THINK FOR A SAVINGS OF $62,000, I JUST DON'T KNOW THAT THAT'S A BIG WIN TO ME.

I WOULD RATHER CONSIDER SOMETHING ELSE IN ANOTHER POCKET THAN MAKING THINGS LESS USER FRIENDLY, BECAUSE THEN IT'S NOT REALLY A IT'S NOT A BENEFIT.

SO, AND LANCE CAN PROBABLY SPEAK TO THIS BETTER THAN I CAN WITH REGARDS TO THE PRIOR AUTHORIZATION.

JUST TO BE CLEAR, THAT'S REALLY GEARED MORE TOWARD PRIOR AUTHORIZATION FOR CERTAIN MEDICATIONS AS OPPOSED TO PROCEDURES.

BUT AGAIN, I DON'T TAKE IT LIGHTLY.

IT WAS CERTAINLY ONE OF THOSE THINGS THAT WAS A POINT OF CONCERN AND CONTENTION.

AND AGAIN, I THINK, YOU KNOW, MY HOPE FOR TONIGHT'S PRESENTATION IS SIMPLY TO GET DIRECTION ON HOW MUCH OF THE GAP YOU GUYS WANT ME TO CLOSE AND YOU'RE COMFORTABLE CLOSING, BUT I KNOW THAT ONE THING THAT CHERYL AND I HAVE TALKED ABOUT IS SIMPLY THIS IS THAT WE HAVE TO MOVE QUICKLY BECAUSE WE HAVE TO DO OPEN ENROLLMENT. WE HAVE TO DO THOSE THINGS.

SO WHILE I'M TALKING ABOUT STILL HAVING SOME CONVERSATIONS IN THE BACKGROUND WITH EMPLOYEES, I'M TALKING LIKE IN THE NEXT WEEK OR SO, WE'LL HAVE TO BRING SOMETHING BACK ULTIMATELY FOR THE COUNCIL TO RENEW OUR THIRD YEAR, THIRD YEAR OF OUR CONTRACT WITH UHC SO WE COULD COME BACK AND TELL YOU THIS IS WHERE WE LANDED.

BUT I'M REALLY LOOKING FOR KIND OF A GUIDEPOST AMOUNT OF YOU NEED TO BRING ME X.

I THINK, YOU KNOW, JUST FOR YOUR EXAMPLE, IF WE ONLY WENT WITH IF WE TOOK OFF THE PRIOR AUTHORIZATION IN THE EXAMPLE A, AND WE DROPPED DOWN TO LIKE $90,000 FOR THE HSA CONTRIBUTION, THAT WOULD GET US TO ABOUT $475,000 WORTH OF CLOSING THE GAP, WHICH IS, YOU KNOW, ABOUT $75,000 OFF ON WHERE I KIND OF SET THE GOALPOST FOR US TO TRY TO GET TO WITH COUNCIL.

IT'S ULTIMATELY COUNCIL'S DISCRETION IS TO HOW MUCH OF THE GAP WE WANT TO CLOSE.

AND JUST I WOULD JUST PREFACE IT WITH SAYING IS THE FUND BALANCE IS GOING TO BE MY ULTIMATE GUIDEPOST IN FUTURE YEARS.

AND SO IT JUST MAY MEAN IF YOU KNOW, WE DON'T MAKE AS MUCH OF REDUCTIONS THIS YEAR, I THINK THE EMPLOYEES WOULD PROBABLY BE GRATEFUL FOR THAT, BUT MY CONVERSATIONS WILL BE.

IT'S JUST MORE THAT WE'LL HAVE TO MAKE UP IN THE FOLLOWING YEAR AND THE NEXT YEAR.

AND I THINK UNDERSTANDABLE.

AND I GENUINELY APPRECIATE THAT THESE ARE THESE OPTIONS ARE BEING CONSIDERED.

WE KNOW THAT THE FUND BALANCE IS ULTIMATELY THAT'S OUR CUSHION, AND IT'S NOT AN OPTION TO NOT HAVE THE CUSHION.

WE DO HAVE TO HAVE THE MONEY TO COVER THE EXPENSES.

BUT AND I THINK THAT THAT'S JUST IT.

TOMMY IS HAVING CONTINUAL CONVERSATIONS, BRINGING STAFF ALONG WITH THIS THE ENTIRE WAY THROUGH.

PHIL LEANED IN AND SAID, WE BOTH PREVIOUSLY WORKED FOR THE SAME EMPLOYER THAT DIDN'T.

YOU KNOW, IT WAS JUST LIKE, THIS IS WHAT YOU'RE GETTING.

AND IT WAS A POO-POO OF A PLAN TO BEGIN WITH.

SO I APPRECIATE THAT STAFF IS PART OF THIS THE WHOLE WAY THROUGH BECAUSE THAT THEY HAVE TO IT CAN'T JUST BE SOMETHING THAT WE FORCE FEED THEM.

THEY AND THE MORE WE EDUCATE AND BRING THEM ALONG, THEN THEY CAN UNDERSTAND THE ULTIMATE OUTCOME.

BUT I THINK WE JUST I JUST WANT US TO BE CAUTIOUS OF WHEN WE START GETTING NITPICKY ABOUT THIS IS 62 THIS IS THAT.

AND ULTIMATELY HEARING WHAT DAN SAID, YOU KNOW, THINKING ABOUT THE BENEFIT, WE WANT TOP TALENT SO THAT WE CAN GET THE WORK DONE FOR THE CITIZENS.

AND IF WE DON'T HAVE GOOD PEOPLE WORKING FOR US, THEN THE WORK DOESN'T GET DONE.

YEAH, THAT'S THE ONE I'VE GOT HEARTBURN ON THE PRESCRIPTIONS.

I THINK WE JUST DON'T NEED TO WORRY ABOUT THAT ONE.

AND I KNOW WE'RE TRYING TO MAKE UP A GOAL, BUT AT THE END I AGREE WITH MAYOR PRO TEM MCLENNAN LIKE WHAT ARE THE EMPLOYEES WANT? AND AT THE END OF THE DAY, WE GOT TO HAVE SOMETHING THAT'S GOOD.

AND OBVIOUSLY WE HAVE TO BE MINDFUL OF THE FUND BALANCE.

I'D, I'D PREFER EASING INTO IT IF WE COULD, YOU KNOW, IF WE DECIDED, OKAY, WE'RE GOING TO REDUCE THE HSAS AND TAKE THE 110% OFF.

I SEE THE NEED TO DO A 5% INCREASE BECAUSE WE HAVEN'T HAD ANY INCREASES SINCE 2020, BUT THE FUTURE INCREASES OF 5% MAYBE DO IT JUST THIS YEAR. AND THEN IF YOU WERE TO PUT ZEROS FOR THE REST OF THEM, WHAT WOULD THAT NUMBER BE? IF IT'S ONLY 34,000, IT'S NOT GOING TO MAKE A DROP IN THE BUCKET.

BECAUSE WE'RE ALREADY GOING TO GO TO PLAN TWO.

AND, AND NOW WE'RE MOVING EVERYTHING BACK FROM 90 TO 80 AND EVERYBODY'S DEDUCTIBLES ARE GOING TO GO UP.

SO I'M FINE NOT HAVING TO MAKE UP THE 750 IN 1 YEAR.

[02:35:05]

YOU KNOW, IF WE JUST IF WE TOOK OFF THE HSA AND THE AUTHORIZATION, YOU'D BE AT 380, SO YOU'D BE HALFWAY THERE.

BUT AGAIN, IN FUTURE YEARS, WE HAVE TO FIGURE OUT WHERE WE WANT TO GO.

IF YOU TAKE OUT THE 5% EMPLOYEE CONTRIBUTION FOR EVERY YEAR EXCEPT NEXT YEAR, IT'LL DROP YOU DOWN TO 35% FUND BALANCE.

38.17, OF COURSE FOR 2829, THEN 2930, IT'LL DROP IT EVEN LOWER TO 35.

OKAY, THAT'S WITH THE FIVE THIS YEAR.

BUT THEN ZERO IS GOING ZERO GOING FORWARD.

SO IT GOES FROM 43 TO 35.

YES. OKAY.

LARRY HAS THE MAGICAL SPREADSHEET FOR EVERYTHING.

IT'S AWESOME.

LOTS OF WHAT IFS.

BUT I UNDERSTAND YOU NEED THAT.

YOU NEED SOME GUIDANCE BECAUSE DECEMBER 1ST IS.

YEAH. SO ACTUALLY IT'LL BE NOVEMBER WILL BE OPEN ENROLLMENT.

THERE'S LOTS OF WORK TO DO BETWEEN NOW AND THEN TO DO IT.

SO I AGAIN, I THINK WHAT I HEAR YOU GUYS SAYING IS I HAVE SOME FLEXIBILITY IN TERMS OF NOT MAKING UP 750 AND MAYBE THE MAJORITY OF COUNCIL IS TELLING ME THAT 550 MAY BE A LITTLE BIT TOO LOFTY OF A GOAL FOR THIS YEAR, BUT BECAUSE WHAT I WOULD TELL YOU IS SORT OF IF WE TAKE PRIOR AUTHORIZATION OFF AND WE WANT TO GET TO 550, THEN THAT'S EITHER COMING FROM PREMIUM INCREASES OR FURTHER PLAN DESIGN CHANGES.

AND I WOULD TELL YOU I WOULD NOT RECOMMEND PLAN DESIGN CHANGES BEYOND OPTION TWO.

RIGHT. AND NORMALLY THE PLAN DESIGN THAT COMES WITH IT, I MEAN, WE'VE DEALT WITH IT AT THE BANK WHERE I THINK WE HAD FIVE YEARS IN A ROW.

IT WAS LIKE 25% A YEAR.

AND THEN WE GOT LUCKY. THIS YEAR IT WAS A HALF PERCENT INCREASE.

WELL, THAT'S BECAUSE YOU JACKED IT.

YOU KNOW, IT QUINTUPLED IT OVER THE LAST HOWEVER LONG WE'VE HAD TO MAKE PLAN DESIGN CHANGES AND EVEN THE HSA CONTRIBUTION, YOU COULD ALWAYS TWEAK THAT.

INSTEAD OF DOING 250 AND 500, YOU COULD DO 150 AND 300 OR, YOU KNOW, SOME COMBINATION THEREOF.

BUT YOU'RE VERY OPEN MINDED.

I'LL LOOK TO SEE WHETHER THERE ARE ANY OTHER COMMENTS.

GO AHEAD, COUNCIL MEMBER SCOTT.

WE HAVE TO KEEP IN MIND WHERE WE ARE AND WHERE WE WERE IN THE LAST FOUR YEARS.

IF WE CONTINUED MAKING THE CUTS THAT WE MADE, THIS ACCOUNT WOULD BE BANKRUPT IN TWO YEARS.

SO AT SOME POINT, WE'VE GOT TO MAKE A DECISION TO FUND THIS ACCOUNT AND BASICALLY TO FUND THIS ACCOUNT.

IT'S GOING TO TAKE SOME ADJUSTMENT IN THE POLICY.

THAT'S THE THAT'S THE ONLY WAY TO FUND IT UNLESS WE START TAKING MONEY OUT OF PEOPLE'S POCKETS.

SO I THINK WHAT I WOULD TELL YOU IS, IS THAT I'M GOING TO SHOOT FOR A NUMBER THAT IS AT MINIMUM 475 BASED ON THESE COMMENTS, AND BETWEEN 475 AND THE 557 OR SO, I'LL CONTINUE TO HAVE CONVERSATIONS AND DIALOG WITH STAFF, AND THEN WE'LL BRING SOMETHING BACK AT A LATER DATE FOR COUNCIL FOR FORMAL ADOPTION OF THE NEW THIRD YEAR WITH UNITEDHEALTHCARE AND WILL OUTLINE, AT LEAST AT THAT TIME, WHAT THE RECOMMENDATION IS AND GO FROM THERE IF THAT'S SUFFICIENT.

LANCE, DO YOU HAVE ANY? TOMMY. THANK YOU, MEMBERS OF COUNCIL.

THANK YOU, MR. MAYOR.

THANK YOU, MAYOR AND COUNCIL.

WE HAVE ALREADY TAKEN CARE OF 8.B AT THE BEGINNING OF THE MEETING.

SO THAT BRINGS US TO SECTION NINE LEGISLATIVE REPORTS AND RELATED ACTION ITEMS.

[9.A. Consider approval of a resolution establishing the City Council’s priorities for the 89th Legislative Session. (Staff Contact: Janalea Hembree, Assistant to the City Manager)]

9.A IS TO CONSIDER APPROVAL OF A RESOLUTION ESTABLISHING THE CITY COUNCIL'S PRIORITIES FOR THE 89TH LEGISLATIVE SESSION.

THIS IS NOT JANET LEE.

THIS IS BRANDON AGHAMALIAN WITH FOCUS ADVOCACY PRESENTING TO YOU TONIGHT.

I'M A POOR SUBSTITUTE FOR JANET LEE.

MAYOR. MEMBERS OF COUNCIL.

MR. MANAGER, IT'S GOOD TO SEE YOU AGAIN.

I THINK MY PRESENTATION IS PULLING UP.

CAN YOU HELP HIM, PLEASE? MIKE, CAN YOU HELP HIM? PLEASE? ESCAPE? OKAY. YOU SAID HIT NEXT.

NOT. NOT HIT X, RIGHT? IT'S THE DETAILS THAT I'M GOOD AT.

I'M STARTING TO FEEL LIKE A REGULAR HERE.

IT'S. THIS IS.

IT'S GOOD TO BE BACK AGAIN WITH SORT OF THE END OF THE PROCESS.