MINUTES CITY OF MELISSA CITY COUNCIL WORK SESSION AND REGULAR MEETING JANUARY 14, 2025 5:15 PM WORK SESSION AGENDA A. Call to Order Mayor Northcut called the meeting to order at 5:15 p.m. B. Roll Call Mayor Northcut, Preston Taylor, Rendell Hendrickson, Dana Conklin, Joseph Armstrong, Craig Ackerman, and Sean Lehr were present. C. Public Comments There were no public comments. D. Facade Grant Program Update Jason Little, City Manager, introduced members of the Masonic Lodge who gave a presentation regarding their upcoming request to apply to the City's Façade Grant Program. E. CWD Presentation Jason Roemer and other employees of CWD gave the annual presentation regarding 2024. F. Discussion regarding Electronic Voting Sid Hudson, Director of Innovation and Technology led a discussion regarding the implementation of electronic voting in Council meetings. G. SH121 Pedestrian Crossing Jason Little, City Manager, gave an update to Council regarding the SH 121 Pedestrian Crossing which will connect Brookside to Avilla Springs via an underground pedestrian walkway. H. Discussion regarding any items on the Regular Agenda Jason Little, City Manager, gave an overview of items 5A, 5B, and 5C on the Regular Meeting agenda. I. Discussion regarding any future agenda items There was no discussion regarding future agenda items. J. Adjourn Council Action: Motion was made by Dana Conklin and seconded by Sean Lehr to adjourn the Regular Meeting at 8:20 p.m. Vote: 7/0/0 REGULAR MEETING AGENDA 1. CALL TO ORDER AND ROLL CALL Mayor Northcut called the meeting to order at 6:33 p.m. Mayor Jay Northcut, Preston Taylor, Rendell Hendrickson, Dana Conklin, Joseph Armstrong, Craig Ackerman and Sean Lehr were present. 2. INVOCATION AND PLEDGE OFALLEGIANCE Mayor Northcut gave the invocation. 3. PUBLIC COMMENTS -AGENDAI ITEMS There were no public comments. 4. CONSENT AGENDA A. Consider the minutes from the December 3, 2024 Work Session and Special Meeting and December 10, 2024 Work Session and Regular Meeting. B. Consider the purchase of furniture related to the City Hall renovation project. C. Consider an ordinance repealing Ordinance No. 18-34 and 18-39; adopting the 2021 Edition of the International Property Maintenance Code. D. Consider authorizing the City Manager to negotiate the second amendment to a Development Agreement between BT Cole Three, LLC and the City of Melissa, Texas. Council Action: Motion was made by Craig Ackerman and seconded by Dana Conklin to approve the Consent Agenda as noted. Vote: 7/0/0 5. REGULAR AGENDA A. Consider authorizing the City Manager to draft, negotiate, and execute an Annexation Agreement and Development Agreement with Ashton Dallas Residential, LLC. Daniel Satsky, Vice President of Land for Ashton Woods, gave a presentation regarding the Tranquility project. Dana Conklin stated she likes Ashton Woods products and what has already been brought to the Melissa community. Mrs. Conklin stated that she had concerns with residential on the Collin County Outer Loop as it would be better suited for commercial retail. Joseph Armstrong stated that he is not used to see the waiving of park fees and asked the applicant to address the request. Mr. Satsky stated that there are some county road improvements in the water sewer extensions and enhancements to the park. Ashton Woods saw that as a chance get credit for impact fees. It would give Ashton Woods a way to still build the amenities, but then also be able to provide basic water, sewer, road extensions and widenings, and everything else typically done with a project of this scope. Mr. Satsky stated that Ashton Woods is oen to getting impact fee credits elsewhere instead of waiving as it would help offset some other costs. Rendell Hendrickson asked if Ashton Woods did have the 18 acres of park, like North Creek, would the plan be to connect to the trail system that is open to the community or is it more intended for a specific residential community only. Mr. Satsky stated that it would connect to the trail system. Joseph Armstrong stated that they just wanted to make sure the trail would be used for all residents of Melissa. Mr. Satsky confirmed. Rendell Hendrickson stated that he also has some concerns along the lines of highest and best use for the area. Mr. Hendrickson stated that because North Creek to the south, which think there's some value to some sort of transition, but he would like to know if townhomes would be lining the North Creek Estates property line. Mr. Hendrickson asked if this concept map is just an idea or if it is solid, because he feels like he does not have enough information yet. Lastly, Mr. Hendrickson stated that the City cannot control whatever happens to the direct east of the property because that would be part of the City of Anna, sO it could end up with something like a neighborhood next to commercial. Mr. Satsky stated that when you do the development agreement, this site plan does get attached sO it is a blueprint for how the formal zoning would have to then follow suit, SO it would be in Ashton Woods best interest not to modify that and move the townhomes. Mr. Satsky stated that if the development agreement gets approved then ultimately the underlying zoning is a blueprint for the growth. Jason Little, City Manager, stated that there is language within the development agreement that gives flexibility as you go through engineering to relocate throughout the property. Mr. Little stated that Council is asking there to be some balance, where if Ashton Woods is committing to certain elements, particularly with the adjacency to North Creek, is that it doesn't become a complete flop because of the wide latitude. Mr. Satsky stated that is traditional single-family detached homes. Rendell Hendrickson asked for Mr. Satsky's thoughts on being on the Collin County Outer Loop and if the property to the east will end up being something like commercial. Mr. Satsky stated that when Ashton Woods put it under contract, the landowner told the history, talking about transitional use to traditional family, and that traditional uses of multifamily were much met with significant opposition maybe from North Creek and others. Mr. Satsky stated that if you industrial commercial in there he does not know if that brings up a bigger fight, because he does not know if the residents of North Creek rather have industrial warehouses in front of them or more single family. Mr. Satsky stated that he feels very comfortable selling homes at half a million dollars and above in this location, but that he cannot control what happens to the east. Mr. Satsky stated that Ashton Woods would take whatever happened to the east and they understand maybe what is going to happen to the west. Mr. Little asked if Mr. Satsky could elaborate on what is happening to the property to the west. Mr. Satsky stated that they were asked to not reveal as it is current under contract. Mr. Little stated that he understood, but that he thought it was fair to ask since it was brought up. Mayor Northcut asked ift the applicant could talk more on that process of getting water, where the expense comes from, and why it's more unique than something else. Mr. Satsky stated that they understand that there is a 12-inch water line required in Throckmorton that would have to come across about 38 acres, the west side if you will. There is are two 8-inch lines in the North Creek Estates. The cost to get the procurement from the family has become a negotiation. Mr. Satsky stated that this point Ahston Woods would be procuring an easement from that family and then having to construct the cost of a 12-inch water line across 800-1,000 feet as well as $2.1 million worth of improvements to County Road 418. Mayor Northcut asked Staff if they had any comments to add to Mr. Satsky's statement. There were no additional comments. Mayor Northcut expressed concerns with the amenities not being built until possibly the 500th home is a problem because there have been times when residents did not get their amenities at a certain point when promised or expected, and at some point, those kinds of things tend to come back to Council. Mr. Satsky stated that by the 500th home, all amenities should be built; however, Ashton Woods can commit to building the main amenity center with the first phase. Mr. Satsky stated that the phasing is to do immediately east and west of the open space park. Mayor Northcut stated that giving up that much in park fees is insurmountable. Joseph Armstrong agreed. Mr. Satsky stated that he understands. Council Action: Motion was made by Dana Conklin and seconded by Preston Taylor to not authorize the City Manager to draft and negotiate an Annexation Agreement and Development Agreement with Ashton Dallas Residential, LLC on this item. Vote: 5/2/0, with Rendell Hendrickson and Craig Ackerman voting against the item. B. Consider authorizing City Manager to execute the Letter of Intent for Vineyard Hill Estates for annexation into the City of Melissa and execute the necessary agreements. Jason Little, City Manager, presented the item to Council stating that tonight should conclude or bring some resolution to the request made by Vineyard Hill Estates, a single-family subdivision proposed just to the south of Melissa's ETJ, on whether or not that this is a deal that the City is willing to enter into. This is a 65-acre tract, 245 total lots, 6,000 square feet per lot. Vineyard Hill Estates has come before you to explain the value that the public improvement district would offer them in the terms of amenities. They showed you the plan in December 2024. In order to decide where the City is going with this, Staff drafted the Letter of Intent (LOI) to outline the provisions that are critical to this decision ultimately being made. This item has a few more complexities, not that they are thing that cannot be overcome, but they're just different elements, such as the sewer billing. In our conversations with North Collin, we would have to come into an agreement. They seem very willing to work with us and to understand what our concerns are. This has a two-step annexation process. The first one stage is to incorporate from really the County into Melissa's ETJ and then to petition to annex into the City Limits, which is part of this agreement. Lastly is the PID. The LOI was proposed last week and was incorporated into your packet in two elements that have been clarified since then. One of the elements is a proposal by the developer to remove the spa for health and safety reasons. The second is the loan-to-value ratio on how that would be assessed or evaluated SO that PID bonds could be sold. In their LOI, they are requesting a two-to-one ratio. Hilltop Security, our financial advisor, recommends on bare dirt bonds. Thr PID bonds are sold before the improvements or values on the ground that they're recommending a three-to-one ratio. There are cities around us that also have a three-to-one written policy ratio, but they have from time to time deviated from that. The alternative to the bare dirt bond is a PID reimbursement bond, which is done after the improvements are installed SO that it can be at a lower loan-to-value ratio. In a previous proposal to the City, which hasn't been executed yet, there was an agreement for a 2.25-to- one ration, but that was for a PID reimbursement bond. Cameron Costaldo and Rob Daake are present to answer any questions and hopefully bring this to conclusion if this is something the Council wants to proceed with or not. Rob Daake, representative with Daake Law, presented to Council stating that he thinks they are close to a meeting of the minds on the LOI. The first point is just total transparency, Vineyard Hill Estates did remove one amenity from the very robust amenity package that was shown to Council. That was not done for cost reasons, that's by far the least expensive amenity, but it was removed to health issues. Mr. Daake stated that he wanted to make sure that he was totally transparent with Council on the removal of that amenity. Secondly, the request this evening would be that Council authorizes the City Manager to move forward with a development agreement based on the LOI, save and accept the question of the loan-to- value ratio. Mr. Daake stated that they believe it will be better outcome for both the community and his group financially to do the two-to-one ratio up front. The basis for that is it actually results in lower total bond sales throughout the life of the project. Mr. Daake stated that ift they were able to do two-to-one ratio, it is cost-effective to do an upfront dirt bond sale and in SO doing, they would be selling debt based on a predicated value. As the value of the project increases, those bond sales get higher and higher. In the end, they would end up selling a little more debt, which ultimately is not in the best interest of anyone. Mr. Daake stated that he has a long way to go to get the City Manager and the financial team comfortable with that, but what he would request tonight is just allowing us to continue to discuss that with the Staff. In the end, Staff may agree, or they may not. Dana Conklin asked how we handle the ratio into the LOI. Mr. Little stated that the LOI is non- binding, but that is gives direction to the legal team; however, Council will need to figure out how they are going to come to that conclusion because it is not a Staff role to decide whether it's 2.25 or whatever the number is. One of the benefits that was brought up, if you have a dirt bond, there is not a lot of value on the ground, meaning there is not a lot of dollars that would be sold which would then translate to the assessment. Mr. Little stated that a PID is one of those elements that the City has resisted doing for a long time and others are light years in experience ahead ofthe City of Melissa. As shared, Nick with Hilltop Securities predicated his recommendation. Joseph Armstrong stated that while it is slightly cheaper, there is more risk involved in the other version. Mr. Little stated that the financial advisor's concern is that if the collateral is not there for the PID bonds that are sold, then what happens if the worst-case scenario happens, which we have to at least acknowledge. Rendell Hendrickson asked what the recourse is if the worst happened. Mr. Little stated that at some point when the land finally sells or the development occurs that the development ultimately will pay back, the City will be on the hook at least in the interim for those payments. Mr. Hendrickson asked if the City would be maintaining the loan until the sale. Mr. Little confirmed. Mr. Daake stated that the funds from the bond sale are held with the trustee, and they are not released to them until such time as we have engaged in recompensable expenses. Ultimately, ifthe project were to go belly up and the project's value were reduced by 50%, at that point there could be a risk point, but the trustee would be holding those funds. Mr. Daake stated that they would not have met their obligation, and they would not be able to move forward with infrastructure construction. Mr. Daake stated there are a lot of risk points to discuss, but there is also some benefits to discuss and that is why the request tonight would be that the Council approve to move forward with the financial advisor and just talk through all of that. The Council is not disempowering itself in any way to move forward at this point in time. It just lets Mr. Daake and his team engage in that more detailed conversation. Let the experts exchange numbers, then let them come to Council with their recommendation. Joseph Armstrong asked if Staff is okay with that piece of the puzzle. Mr. Little confirmed and said that there are safety elements, but it is just not a process the City has done before. Mr. Little also stated that if Council looks at the base land use, and they see this as a value in the way it has been presented, then tell Staff what direction you want them to go. Joseph Armstrong stated that he is in support of the land-use and trusts Staff to vet the process and bring back their recommendation. Dana Conklin asked if Council needed to table the item or just give direction. Mr. Little stated that Staff just needs direction. Mayor Northcut stated that Council just needs to authorize the City Manager to negotiate, and that does not mean he will be authorized to complete and finalize anything. Mr. Little confirmed that Staff will need to bring back the financial element. Dana Conklin stated that the item reads that we need to execute the LOI. Mr. Little stated that if Council give Staff corrections, not the authority to execute, then it would be appropriate way to move forward. Mayor Northcut stated that, because this has been going on for a while, and he thinks time for Council to say if they are for or against the land use and then let the financial side get worked out. Mayor Northcut stated that he would like to go forward with the item as it stands here in authorizing because that says Council is okay with the land use, but they need this little detail worked out. Dana Conklin stated that she thinks Council can give the direction without actually executing the document, because she would feel more comfortable seeing the final document. Mr. Little stated that a motion to authorize the City Manager to finalize the details related to the PID and bring back the development agreement that outlines the content and the letter of intent but not execute the letter of intent. Mr. Little also stated that it is good that the developer and their representatives hear the opinions on the land use, because that's the core. Everything else or details can be worked out. If the land use is what Council is supporting, everything else can be worked out. Mayor Northcut stated that he does not want to be vague about the project. Mr. Little stated that the Council's direction revolves around expressing support for land use and giving City Manager authority to move forward. Mayor Northcut stated that when the City gets in these annexation situations, sometimes it feels like Council gets two different types: those that understand the complexities that we face with annexation and they try to hold us hostage in that process, and those that understand the complexities that the cities face and they try to work with the City on making it all more amenable. Mayor Northcut stated that he has put this project in the latter category. Mayor Northcut also stated that this is not a way out ETJ type project, but that it is sitting on the border of Melissa and accessible to everything that Melissa has to offer, that Melissa residents do pay for. Mayor Northcut stated that he feels very strongly that this is a project that is going to happen with or without Council and he would rather they be with the City and in the City contributing to using those services. Council Action: Motion was made by Rendell Hendrickson and seconded by Joseph Armstrong to authorize the City Manager to move forward with negotiations with the understanding that Council is okay with the proposed land use but there are some financial terms and things that will be worked through. Vote: 7/0/0 C. Consider the approval and acceptance of the Guaranteed Maximum Price for the 2nd Phase of Melissa Lake Park. Jason Little, City Manager, presented the item to Council stating that in June 2024 Piazza Construction was selected to serve in a two-step construction manager process. First in estimation services to provide a cost for various improvements that we defined as Melissa Lake Park Phase Two. Phase Two improvements include open-air amphitheater, 310 parking spaces, a community splash pad, a launch point for kayaks on the lake, covered playground, pavilion and a multipurpose natural-grass area. Those elements were bid and are shown in the rendering in the packet. The guarantee maximum price is back at $11.9 million, sO just right at $12 million. It is approximately an 8-10 month project, because we are entering the wettest time of1 the year. If the Council is accepting of the guarantee maximum price, the City Attorney will draft the necessary AIA construction documents and will execute. That would establish a guarantee maximum price with Piazza Construction. Funding is available through current bond funding and our park development fees. Joe Piazza with Piazza Construction is here to answer any questions. They have been a pleasure to work with, and the City is excited to see this project get going. Rendell Hendrickson asked if the play equipment would include ADA accessibility. Mr. Little stated that the playground includes various zones for all accessibility and ages (0-3,3 3-5, etc.) Council Action: Motion was made by Dana Conklin and seconded by Rendell Hendrickson to approve the Guaranteed Maximum Price for the 2nd Phase of Melissa Lake Park. Vote: 7/0/0 D. Consider Interlocal Agreement with the City of Midlothian to utilize Bound Tree to purchase needed EMS medical supplies. Jason Little, City Manager, presented items 5D, 5E, 5F, and 5G to Council stating that tonight really sets in motion a lot of the legwork that Staff has been talking with the Council about creating a City of Melissa fire-based EMS service. Currently, the City is part of a consortium of about 11 cities and various MUDS that EMS services to an area that covers about 384 square miles. Melissa is quickly outgrowing the viability of that coalition and the value that the community, both police and fire departments, in the passage of the districts earlier this year is immeasurable. Particularly it's given the City the ability to strongly consider creating a fire-based EMS service in Melissa. Since we had that discussion in late 2024, we have embarked on getting ready for what unveiling or rolling out as service for the Melissa community would look like. Tonight Council will see two proposed interlocal agreements, one with the City of Midlothian to utilize their procurement for the purchase of medical supplies with a company called Bound Tree because the City will not only need the supplies that we currently buy, but also we will need a lot more when we go into this ambulance and transport business. The interlocal agreement with the City of Midlothian costs the City nothing. It is only if and when we choose to buy from Bound Tree, which has been a reputable provider for some time for us. The second item is the ratification of the box purchase from a company called Frazer. The box is the back part of the ambulance, sO you get the chassis of the box and the box takes the longest time, about an 18-month build time. We wanted to get in line if we were going to provide the service. The box was ordered in late 2024 with Frazer. They are part of the buy board, the Houston-Galveston Area Council Procurement Program. It meets all the State guidelines. It is being asked to be ratified tonight and that that box will continue to be developed to the City of Melissa specifications and be delivered in about 17 months. In the meantime, we have purchased two ambulances that will be re-wrapped and rebranded in the City of Melissa Fire Department look. Those will probably be delivered starting next week. There is a bit of a delay because of last week's weather, but pretty soon those are going to be rebranded and they'lI be ready for service as soon as we get through all the administrative elements, which also includes how we will bill for services rendered through our base EMS. This brings us to the interlocal agreement with the City of Webster. Webster is a community south of Houston. They procured a company for EMS billing services called Emergicon, and they're willing to allow us to piggyback off of that procurement. Emergicon is willing to offer us similar terms to Webster, which meets our needs. And again, with Webster, the interlocal agreement costs us nothing, but the agreement for specialized services with Emergicon will allow the City to start the process. You still, at some point between today and the time we actually start service, will decide how billing is done, but that is not a decision for tonight. That is a future pending decision that we really do not get into until the City is under contract with Emergicon and they are a recommended billing provider. These elements, not only the ratification but the interlocal agreements, allow us to piggyback off of others work just streamlines the process for us to get ahead oft this implementation process as soon as possible. Because while we have the coalition through the end of September, we would love to see the Melissa Ambulance Service be operational as soon as possible. Rendell Hendrickson asked if it is common practice to leverage and partner with other cities. Mr. Little stated that it is very common and stated that the billing world has two main providers in our area or in this part of the state. Regardless, a city is going to get the same two providers getting the same thing. This brought us closer to the one who is a local biller that we felt more comfortable with. We had been piggybacking off oft the City of Richardson for the Bound Tree purchases in prior years. Their term was expiring SO we had to find a different route. This will not be how we will do it forever. We will ultimately bid our own at some point, it's just we have to have certain things when the State does their inspection of us. Rendell Hendrickson asked if we are purchasing through Midlothian, do we still work with the vendor. Mr. Little confirmed and stated that Midlothian will not be part of this at all once we sign the interlocal agreement. Dana Conklin asked if the new ambulance service will have stuff koalas and bears for children. Chief Nix confirmed. Council Action: Motion was made by Joseph Armstrong and seconded by Craig Ackerman to approve an Interlocal Agreement with the City of Midlothian to utilize Bound Tree to purchase needed EMS medical supplies. Vote: 7/0/0 E. Consider ratification of ambulance box purchase from Frazier through the HGAC Cooperative Purchasing Program. Council Action: Motion was made by Dana Conklin and seconded by Rendell Hendrickson to approve the ratification of ambulance box purchase from Frazer through the HGAC Cooperative Purchasing Program. Vote: 7/0/0 F. Consider Interlocal Agreement with the City of Webster to utilize Emergicon for EMS billing services. Council Action: Motion was made by Craig Ackerman and seconded by Preston Taylor to approve the Interlocal Agreement with the City of Webster as noted. Vote: 7/0/0 G. Consider an Agreement for Specialized Professional Ambulance Billing Services with Emergicon. Council Action: Motion was made by Craig Ackerman and seconded by Dana Conklin to approve an Agreement for Specialized Professional Ambulance Billing Services with Emergicon as noted. Vote: 7/0/0 H. Consider an Ordinance amending Chapter 10 (Traffic Control) of the Melissa Code of Ordinances, Article 10.300, Section 10.304, authorizing Towing Storage Companies to Tow Uninsured Motorist upon Police Authorization. Jason Little, City Manager, presented the item to Council stating that the City just began the expansion and proof of services that the Police Department has been able to do or provide for our community. Creating the Districts is going to be one of those things we look back and feel like it was the right thing at the right time. Again, the City has seen the motor pool, the commercial motor vehicle that should start getting rolled out this first quarter, and a new Chief of Police come in and make the department in his image. Tonight is another evolution in the police toolbox and that is how we address uninsured motorists. Chief Stokes has worked with the City Attorney and is proposing this amendment to our chapter 10 of our traffic control. Dana Conklin asked ifthe Police Department will also be carrying koala bears and other stuff animals for children. Chief Stokes confirmed. Chief Stokes stated that when Staff reviewed the ordinance, they wanted to amend the ordinance to make sure that everything is in line with what the Police Department wanted to accomplish, which for the City of Melissa, is to tow for uninsured motorists. Whenever the Police have a traffic stops and the violators or the drivers do not have any insurance, we authorize our contract towing service to impound those vehicles. Same thing with motor vehicle accidents and things of that nature. If a person is not insured by the Texas Transportation Code, then we get your vehicle and we will tow your vehicle and send it to that lot. This ordinance cleans up the existing ordinance. Joseph Armstrong asked what happens to the person when their car gets towed. Chief Stokes stated that a licensed and insured driver can come pick up the vehicle and if not, we tow it and give the person a ride to a public place, but they will not get left on the side of the road. Craig Ackerman asked what happened prior to this ordinance. Chief Stokes stated that it was dependent on the circumstance and situation. If it was involved in an accident, the person may have been cited for not having insurance. Rendell Hendrickson asked if there was already a code regarding this or if we are just adding to. Chief Stokes stated that the Police Department already had the authority to tow, but that this helps the contract towing company and align our ordinance with State law. Council Action: Motion was made by Dana Conklin and seconded by Preston Taylor to approve the ordinance amending chapter 10, traffic control, as noted. Vote: 7/0/0 I. Recess into Executive Session in compliance with Section 551.001 et seq. Texas Government Code, to wit: 1. 551.074 Discussion of Personnel Matters (City Manager) Council Action: Motion was made by Preston Taylor and seconded by Sean Lehr to Recess into Executive Session as noted at 7:27 p.m. Vote: 7/0/0 J. Reconvene into Regular Meeting and Take Any Action Necessary from Executive Session. Council Action: Motion was made by Dana Conklin and seconded by Sean Lehr to to Reconvene into Regular Meeting at 8:18 p.m. Vote: 7/0/0 Council Action: Motion was made by Craig Ackerman and seconded by Dana Conklin to authorize the Mayor to negotiate the City Manager's employment contract. Vote: 7/0/0 6. PUBLIC COMMENTS- NON-AGENDA ITEMS There were no public comments. 7. COUNCIL DISCUSSION There was no Council discussion. 8. ADJOURN Council Action: Motion was made by Dana Conklin and seconded by Sean Lehr to adjourn the Regular Meeting at 8:20 p.m. Vote: 7/0/0 ATTEST: ah Poehe Day Hope Baskin, City Secretary JagNorthcut, Mayor NELISSA / C à