Richardson City Council Meeting February 24th, 2025

OPENING

Six of the seven councilmembers are present as well as City Manager (CM) Don Magner and City Secretary Aimee Nemer. Councilman Corcoran is absent.

Mayor Pro Tem Shamsul leads a prayer and the pledges.

Minutes of the previous meeting are approved unanimously.

CM Magner acknowledges public comment cards. He starts with comments in support of ZF 25-02 (Staycation). He reads them quickly to save some time. By my count, 20 comments are submitted in favor. For ZF 24-33 (Drone Operations & Maintenance Center New Use), Stephanie Cook will speak in favor, and I will speak (briefly) in neutrality with some recommended amendments.

FY25 FIRST QUARTER FINANCIAL REPORT

The first presentation of the evening is on the First Quarter Financial Report for FY25. This covers Oct. 1^st – Dec. 31^st, 2024. Budget Officer Bob Clymire presents. In the General Fund, revenues are on track with expectations. Budget Officer Clymire states that January and February’s sales tax revenues have been trending higher than estimated. We are hopefully on track to recover in that revenue category this year. The ‘Licenses and Permits’ revenue category is trending ahead due to recent multifamily developments. The ‘Other Revenue’ category is trending ahead due to an unanticipated Northside property tax repayment agreement. General Fund expenditures are in line with expectations.

Water & Sewer Fund revenues are also in line with expectations. The ‘Installation Charges’ category is trending ahead due to an 8” meter installation at UTD. Water sales were higher in November and December than they have been for at least the past four years. Expenditures in this fund are in line with expectations.

Solid Waste Fund revenues and expenditures are also in line with expectations. Golf Fund revenues are trending below expectations at this time. This is because the budget planned on Course #2 reopening in November. However, that course opening was delayed until February. Golf Fund expenditures are tracking as budgeted for. Hotel/Motel Tax Fund revenues are slightly less than projected. Eisemann Center revenue is outperforming last year’s numbers but still falls slightly short of expectations. Hotel/Motel Tax Fund expenditures are in line with expectations.

Council has no questions on this financial report.

COMPREHENSIVE FEE ORDINANCE

Budget Officer Bob Clymire also presents the next item, which is a discussion on creating a singular comprehensive fee ordinance. Budget Officer Clymire states that the city has over 1,000 fees set across about 40 ordinances and resolutions. These could be made easier for stakeholders to access and for the city to make revisions if they were all described under a single comprehensive ordinance. If Council agrees, this ordinance will be brought to Council for consideration at a future meeting.

Council agrees with this direction.

PUBLIC HEARING – THE EVENT FACTORY

Three public hearings are scheduled tonight. The first is a continuation of the public hearing on ZF 25-01. This is a special permit request for an event center, The Event Factory, at 1101 E. Arapaho Rd. This area requires a special permit for this use. The Future Land Use Plan deems this as an appropriate secondary use for the area. This request was continued at the Feb. 17^th Council meeting because the applicant was not able to attend the hearing. This request was discussed in detail at the Jan. 21^st CPC meeting: https://open.substack.com/pub/justinneth/p/richardson-city-plan-commission-meeting-dbb?r=3ahunk&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

Once again, the amending ordinances are paired with considering the request for tonight’s hearings. Staff presents a background of the request. The applicant is seeking to utilize a suite in a multi-tenant building. This request allows a maximum of 99 attendees for events. Security personnel will be present at events to ensure neighboring tenants’ suites are respected. Hours of operation will be M-Th 5 pm – 12 am, F-Sat 9 am – 1 am, and Sun 9 am – 12 am.

Councilman Hutchenrider asks if the applicant will have to use security personnel from an approved list of licensed vendors. CM Magner answers that if the applicant were to utilize off-duty RPD officers, there is a system in place to request that. They wouldn’t be restricted on who they use. The state handles licensing for security personnel. Councilman Hutchenrider also asks if security is required when alcohol is served. CM Magner answers that this isn’t a requirement of the city, but establishments may have their own policies for that.

The applicant steps forward to answer questions about their request. Mayor Pro Tem Shamsul asks for more details on how they will handle security. The applicant answers that they prefer to utilize off-duty RPD officers. They will ensure that security personnel are vetted and that any mobile alcohol service vendors have the proper TABC licensing. BYOB will not be allowed.

No speakers are present for this request. Council unanimously approves the request and accompanying ordinance.

PUBLIC HEARING – STAYCATION MOVE

The next public hearing is on ZF 25-02. This is Staycation’s request to allow major modifications to the W. Spring Valley Corridor PD development regulations at 707 S. Floyd Rd. This request was covered in detail at the Feb. 4^th CPC meeting: https://open.substack.com/pub/justinneth/p/richardson-city-plan-commission-meeting-5d4?r=3ahunk&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

Staff presents a background of the request. Staff explains that the requested modifications are necessary to request since this is an existing nonconforming building. Staycation plans on expanding their hours of operation and expanding their offerings to include food service. The applicant steps forward to present her request. This new location will still have an outdoor yard with seating.

Councilman Dorian asks the applicant to elaborate on their plans to offer food service. The applicant confirms that she is planning to offer breakfast and lunch offerings. Councilman Dorian also asks about plans for exterior lighting. The applicant confirms that they will have outdoor lighting but nothing that will be too bright or cause issues for neighbors.

Councilman Hutchenrider asks if they plan on hosting events or allowing live music. The applicant answers that they currently have concerts from the Dallas Symphony Orchestra in the yard twice a year. She plans on still hosting those concerts in addition to other live music events from time to time.

One speaker is present for this hearing, Hillary Bridgman. Hillary is a former employee at Staycation. She supports the request and states that this move will allow them to have more space and offer more services to the community.

Council unanimously approves the request and the amending ordinance.

PUBLIC HEARING – DRONE OPERATION CENTER NEW USE

The final public hearing of the evening is on ZF 24-33. This is a city-initiated request to establish a new defined land use, Drone Operations and Maintenance Center, within the Employment Sub-District of the Collins/Arapaho TOD & Innovation District Form Based Code. This request was covered in detail at the Jan. 7^th CPC meeting: https://open.substack.com/pub/justinneth/p/richardson-city-plan-commission-meeting-8e6?r=3ahunk&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

The CPC recommended 4-3 to require a special permit for this use. CM Magner states that this request and the accompanying ordinance have now been updated to reflect a special permit requirement for the use. Any applicants who apply for this use will have to request a special permit from Council in the future. Councilman Hutchenrider asks what the process would be for other companies to establish drone operations or delivery elsewhere in the city. Staff answers that Drone Operations and Drone Delivery are unlisted uses. Some areas of the city allow special permit requests for unlisted uses, and some areas do not. Since this area does not allow requests for unlisted uses, this PD amendment defining the use is necessary if any applicants seek to request this use in the future. Staff also explains that this ordinance will require a 300 ft. separation between this land use and any single-family zoned property.

Councilman Barrios asks if they should require a certain amount of liability insurance for any applicants for this use. CM Magner answers that the city cannot regulate anything that is in the air, including requiring additional insurance. The FAA regulates these things. Councilman Barrios also asks if other types of housing like multifamily could be added to the 300 ft. separation included in the ordinance. CM Magner answers that they can include that if Council desires.

Mayor Pro Tem Shamsul asks if the city should expect any consideration of autonomous delivery to come up in the near future. CM Magner answers that Fedex had been testing this technology, but there is nothing currently being tested like that now. Mayor Pro Tem Shamsul asks if this is something that would require a special permit request in the future. CM Magner answers that it would not, as long as they are using the existing sidewalks for their routes.

Mayor Dubey asks if Councilman Barrios’ suggestion to add multifamily to the 300 ft. separation from this land use would even come into play. CM Magner clarifies that this separation requirement does not apply to any flight path, only to the land use. CM Magner also adds that if a special permit request for this use comes up, Council could add additional special conditions at that time, including prohibiting any flying of drones if that is the desire.

Councilman Barrios asks if other cities have this use already. CM Magner answers that this is likely going to start becoming a regularly requested use in other cities.

Two speakers are present for this request. The first is Stephanie Cook. She represents Zipline, a drone delivery operator. She supports this request. She states that Zipline would seek to establish this use as a maintenance and operations hub to maintain their fleet of delivery drones and send them out to Walmarts to pick up and deliver goods. She states that they will request a special permit for this use and will elaborate on a site plan at that time. She asks to address any questions from Council. Mayor Dubey clarifies that they aren’t allowed to ask public speakers questions.

The second speaker is me. Since Councilman Barrios addressed my written comments already, I just briefly reiterate my support for requiring a special permit for the use and adding multifamily and any other type of housing to the 300 ft. land use separation.

Mayor Pro Tem Shamsul supports the request to prepare for the future. Councilman Barrios requests to officially add multifamily to the 300 ft. separation buffer from this land use. Councilman Hutchenrider moves to do just that and includes the multifamily amendment. Council unanimously approves this amended request.

CLOSING

The consent agenda is approved unanimously. It includes an ordinance raising the 65+/Disabled Persons Homestead Exemption to $160K as discussed at the Feb. 3^rd meeting. It also includes a resolution approving a notice of intent to issue Series 2025 Certificates of Obligation. Two bid awards are also included: a $200K annual requirements contract to WEX for fleet fuel cards and services and $84K to Mallory Safety and Supply for helmet-mounted night vision equipment for the police department.

Council discusses a robotics event at JJ Pearce High School, a visit to Austin to speak with state legislators, the North Texas Commission Transportation and Water Summit, visits with family (including cats), and the UTD Community Recognition event, and the meeting adjourns.