Apr 14, 2022 Town Council

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OKAY? ALL RIGHT. GOOD EVENING, LADIES AND GENTLEMEN, THIS IS THE TOWN COUNCIL MEETING IN THE TOWN OF NORTH LAKE. IT IS, UH, APRIL 14TH AND 5 30 PM WE HAVE SIX OUT OF SEVEN COUNCIL MEMBERS PRESENT THIS EVENING COUNCIL MEMBER. BOYER WILL NOT BE WITH US THIS EVENING. AND SO WE'RE GONNA GET STARTED. AS WE TYPICALLY DO WILL HAVE AN INDICATION DO OUR PLEDGES. DO WE HAVE SOMEONE TO GIVE OUR INVOCATION THIS EVENING? WE DO NOT ALL RIGHT, THEN I WILL. I'LL DO IT MYSELF. ALL RIGHT, LET'S LET'S PRAY. HEAVENLY FATHER. WE COME BEFORE YOU TONIGHT AND ASK YOU FOR YOUR WISDOM BLESSING UPON THIS MEETING, WE ASKED FATHER FOR WISDOM TO MAKE THE RIGHT CHOICES FOR THE OPPORTUNITY TO DISCUSS THE ACTIONS BEFORE US AND PRETTY JUST GIVE US WISDOM AND HELP US TO KNOW THE PATH FORWARD. MASTER YOUR BLESSING UPON OUR TIME TOGETHER, GET PEOPLE SAFETY AS THEY TRAVEL BACK AND FORTH FROM THIS MEETING AND FOR ANYONE WATCHING AND PRAY THAT WE WOULD DO WHAT THEY WOULD HAVE US TO DO. FATHER JUST PRAYED, BLESS US AND HELP US TO WORK TOGETHER TOWARDS THAT UNITY AND CONSENSUS. FATHER AND PRAY THAT WE WOULD GET DOWN THE BUSINESS OF OUR TOWN AND EXPEDITIOUSLY AND MOVE FORWARD THIS EVENING PRAYER THESE THINGS NOW IN CHRIST'S NAME. AMEN. ALRIGHT. LET'S STAND FOR THE PLEDGE IS.

FICTIONS. ALL RIGHT, JUST A COUPLE OF THINGS ABOUT THE AGENDA THIS EVENING. WE HAVE.

THERE ARE TWO ITEMS ON THE AGENDA THIS EVENING THAT ARE PULLED HAVE BEEN WITHDRAWN BY THE APPLICANT. THOSE ARE ITEMS ARE ITEMS. I AND M IS THAT CORRECT, MR CORN, OKAY, SO THAT WE WILL NOT BE DISCUSSING THOSE THIS EVENING. AH WE ALSO HAVE A COUPLE BRIEFINGS TO GET THROUGH THIS EVENING, SO WE'LL GET STARTED WITH THOSE AS WE START OUT THIS EVENING. WE GOT A

[2.A. Proclamation - Declaring May 2022 Mental Health Awareness Month and May 7, 2022, Children’s Mental Health Awareness Day]

WE JUST SHORTENED IT TO WATCH. SO I'M HERE ON BEHALF OF THE WATCH COALITION, DENTON COUNTY AND MAJOR MAR, WHICH IS THE MENTAL HEALTH AUTHORITY OF DENTON COUNTY, AND THEN ALSO THE BEHAVIORAL HEALTH LEADERSHIP TEAM, WHICH IS OUT OF THE UNITED WAY OF CRONY. AND SO THOSE THREE ORGANIZATIONS ARE COLLABORATING IN ORDER TO ASK MUNICIPALITIES THROUGHOUT, DIDN'T COUNTY TO PROCLAIM MAY IS NOT HEALTH AWARENESS MONTH AND MAY 7TH AS CHILDREN'S MENTAL HEALTH AWARENESS DAY. SO, AS WE ALL KNOW, MENTAL HEALTH IS ESSENTIAL TO EVERYONE'S OVERALL HEALTH AND WELL BEING ONE IN FIVE ADULTS WILL EXPERIENCE MENTAL ILLNESS AND GIVEN YEAR THIS IS 167,242.

RESIDENTS IN DENTON COUNTY. ADDITIONALLY ONE IN FIVE ADOLESCENTS HAVE OR WILL HAVE A SERIOUS MENTAL HEALTH ILLNESS, BUT THERE IS HOPE. MENTAL HEALTH ILLNESSES ARE BOTH COMMON AND TREATABLE. WE APPRECIATE THE TOWN OF NORTH LAKE FOR HELPING US TO INCREASE AWARENESS OF MENTAL HEALTH CONDITIONS AND RESOURCES AS PART OF MENTAL HEALTH AWARENESS MONTH IN MAY.

THANK YOU. YES, I WOULD LOVE TO THANK YOU.

[2.B. Presentation - Anniversary recognition to Tyler Lenderman for five years of service to the Town of Northlake]

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MEMORY IT THOSE TWO THIS EVENING. ALL RIGHT. NOW, LET'S GET ON TO A COUPLE BRIEFINGS.

[2.C. Briefing - Indoor Sports Facility Funding and Operations Options]

AND THAT'S PROBABLY FAIR TO SAY , MR CORN AS WELL THAT WHILE WE'RE TALKING ABOUT THE POSSIBLE WAYS THAT THIS COULD WORK OR FUNDING, THIS IS NOT A PROJECT THAT IS APPROVED OR PLANNED BY THE TOWN. THAT IS A DECISION THAT STILL HAS TO BE MADE. THIS IS TO INFORM ON INTENT AND WHAT YOU KNOW THE LIABILITIES THE BENEFITS WOULD BE. WE HAVE A LOT OF INFORMATION ON THIS THAT NEEDS TO BE PRESENTED YET, BUT THIS IS A CRITICAL PIECE OF THAT, BECAUSE WITHOUT WITHOUT THESE OPTIONS AND SOMETHING VIABLE, THEN THERE'S NOT REALLY ANY POINT TO TALK ABOUT A PROJECT LIKE THIS. YES SIR. THIS IS KIND OF THE, UH, HOW YOU COULD DO IT. NOT NECESSARILY. DO YOU NEED TO DO IT OR SHOULD YOU DO IT? SO THERE IS A IN STATE LAW. THERE IS THE ABILITY TO FUND VENUES THEY COULD BE PROFESSIONAL AMATEUR CAN BE ANY OF THE FACILITIES. YOU SEE THERE. ENDING AND INCLUDES QUITE A FEW DIFFERENT RELATED INFRASTRUCTURE. SO BESIDES KIND OF BASIC INFRASTRUCTURE AT THE BOTTOM, THAT LIST THERE'S EVEN FOR STORES AND RESTAURANTS AND KIND OF MAKE MORE SENSE AS WE GO THROUGH THIS SO CREATING A SPORTS VENUE DOES REQUIRE A VOTE . AND THOSE ARE THE STEPS. UM FOR MULTI JURISDICTIONAL YOU WOULD CREATE A BOARD. IN ALL LIKELIHOOD, IT WOULD BE SOMETHING THAT TOWN WOULD DO BY ITSELF, SO THE TOWN COUNCIL COULD BE THE GOVERNING BODY OF THIS, UM BUT IF WE DO INVOLVE, UH IF YOU WERE INVOLVED THE COUNTY POTENTIALLY SCHOOL DISTRICT. WE'VE HAD SOME VERY INITIAL DISCUSSIONS IN SCHOOL DISTRICTS MAY NOT BE INTERESTED AT THIS POINT, BUT THE BASIC WAY OF DOING THIS IS THE TOWN COUNCIL BE THE GOVERNING BODY. AND IT WOULD JUST BE THAT THE TOWN BEING THE PROJECT LEADER.

UH ALSO, THERE'S AN EXTRA STEP AS YOU'RE SETTING THIS UP TO HAVE IT. COME CONTROLLER ANALYZE THIS PROJECT. AND MAKE SURE IT DOESN'T AFFECT THE STATE'S REVENUES. UM WE'RE NOT IN A TRANSPORTATION AUTHORITY, AND, UH, SO THAT DOESN'T APPLY. AND THEN, OF COURSE, THE VOTE.

WAITRESS WAY TOO SHORT OF NOTICE FOR THE MAY ELECTION. THE NEXT ONE'S COMING UP ON NOVEMBER.

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PURVIEW AND THEN WE'D HAVE RULES ABUSE OF THAT. SECOND ONE AND ONE. WE'VE ANOTHER. ANOTHER OPTION IS THE TOWN HIRES A MANAGEMENT COMPANY. THE TOWN WOULD STILL RECEIVE THE TICKET REVENUE AND SO FORTH IN THE MANAGEMENT COMPANY AND WE GET A MANAGEMENT FEE. SO, UM LITTLE BIT DIFFERENT THAN KIND OF HANDING THE KEYS OVER. UH BUT STILL, IT WOULD TO THE CASUAL OBSERVER. IT LOOK ABOUT THE SAME. IT WOULD BE THEIR EMPLOYEES MANAGING THE FACILITY FOR US THE THIRD ONE, WHICH IS UM WOULD WOULD CHOIR KIND OF A MAJOR RESTRUCTURING OF THE TOWN STAFF WOULD BE THE TOWN TO OPERATE IT WITH TOWN EMPLOYEES? AND TICKET SALES BOOKING. ALL OF THAT COULD BE DONE BY THE TOWN SO UH, IN ANY OF THESE SCENARIOS AND ANY OF THIS, UM THE TOWN ALMOST ALWAYS OWNS A FACILITY IN PROFESSIONAL SPORTS IN AMATEUR SPORTS, AND THESE VENUES THAT THE MODEL IS SUCH THAT IT'S UH THE FINDING THAT THE TOWN BASICALLY NEEDS TO BE THE BANK TO FINANCE THIS AND THEN BECAUSE IT'S THE TOWN'S ASSET. THE TOWN WOULD BE RESPONSIBLE FOR CAPITAL REPLACEMENT COSTS. AND THEN, UM UM. BUT IN THE END THE FACILITY BECAUSE IT WOULD BE THE TOWNS WOULD BE TAX EXEMPT, WHICH WOULD HELP LOWER OPERATING COSTS AS WELL. SO AND I KNOW WE'VE DISCUSSED WITH THE POTENTIAL MANAGEMENT COMPANY AND I KNOW THE MAYOR. PRO TEAMS DONE.

NUMBER OF. OF CALLS AND STUFF, SO I DON'T I DON'T KNOW IF MY PROTEIN WANTS TO TALK ABOUT SOME

[00:15:02]

MR CORN. COULD YOU HIGHLIGHT THE ALTERNATIVE OPTION THAT WAS DISCUSSED? BUT THERE WAS ANOTHER PLAYER INVOLVED. THAT WOULD BE A DIFFERENT OPTION. WHAT WAS WHAT'S THE HIGHLIGHTS OF THAT ONE? THE ABSOLUTE NUMBER TWO. THAT THAT, UM, WE'VE WE'VE TALKED ABOUT IN THE PAST IS A MANAGEMENT COMPANY COMING IN AND THE STEPS WOULD BE THE TOWN WOULD WOULD FINANCE THE BUILDING LIKE IT WOULD IN ANY OF THESE SCENARIOS AND THE THIS COMPANY WOULD, UM. MANAGES THE FACILITY . THEY WOULD RUN THE BOOKS. BUT ALL THE ALL THE TICKET SALES WOULD BE THE TOWNS AND ALL THE EXPENSES WOULD BE THE TOWNS OF MANAGEMENT COMPANY WOULD JUST GET A FEE A MONTHLY FEE TO RUN THE WHICH WOULD BE MUCH LESS THAN THE LEAST BUT IT WOULD BE SO YEAH, I APOLOGIZE. I'M KIND OF STUMBLING OVER THIS SO. NUMBER ONE THE OPERATOR WOULD HANDLE. ALL THE REVENUES AND EXPENSES AND JUST PAY US JUST ONE CHECK A MONTH FOR THE LEASE OF THE FACILITY. AND THEN ANY TYPE OF SPONSORSHIPS. THAT KIND OF STUFF WOULD BE WITH THAT ENTITY. NUMBER TWO ALL THE REVENUES. ALL THE SPONSORSHIPS WOULD BE THE TOWNS, BUT THE MANAGEMENT COMPANY WOULD GET WE WOULD PAY THEM A MANAGEMENT FEE. SO IT'S REALLY KIND OF THE REVERSE FLOW OF THAT OF THOSE EXPENSES. I GUESS WHAT I'M TRYING TO HIGHLIGHT IS THAT THERE'S AS COMMUNICATED TO ME.

SO FAR, THERE'S BEEN TWO SEPARATE ENTITIES INTERESTED IN A SIMILAR VENUE. YES. WITH DIFFERENT APPROACHES. EXACTLY AND SO THAT'S WHAT I WANT. EVERYBODY TO HEAR RIGHT NOW IS TO SEPARATE IDEAS FOR DOING IT UNDER TWO DIFFERENT OPTIONS, BUT THAT'S THAT'S WHAT I JUST WANT TO MAKE CLEAR FOR. SOME OF YOU HAVE BEEN ON THE COUNCIL FOR AWHILE. WE HAD TO AH, TWO GROUPS APPLY FOR THE HOTEL CONFERENCE CENTER, AND SO ONCE IT BECAME TOO TO BE MORE TRANSPARENT AND TO LAY OUT ALL OF THE KIND OF GROUND RULES. THAT'S WHY WE'RE TAKING A STEP BACK AND TAKE TAKING A BACKING UP AND TAKING A BIGGER PICTURE OF THAT, BUT THE MAYOR'S RIGHT THERE ARE TWO ENTITIES NOW INTERESTED. THEY HAVE DIFFERENT MODELS AGAIN. THE FINANCING OF THE FACILITY WOULD BE THE TOWN THROUGH MULTIPLE MECHANISMS OR ONE OR ALL OR NONE. UM AND UM SO WE CAN'T LAY ALL THAT INFORMATION OUT AND GET YOU ALL START THINKING ABOUT THAT, OR OR OR ASK QUESTIONS. IF YOU HAVE THEM NOW I'M DOING MY BEST OR WILL GET BACK WITH YOU. I WOULD LIKE WE DON'T HAVE IT HERE, BUT I WOULD LIKE AN OVERVIEW. OF THIS TYPE OF FACILITY IN TERMS OF ITS IMPACT ON, UM SALES TAX HOTEL OCCUPANCY. THOSE TYPE OF THINGS SO THAT THE BENEFITS MODEL BASICALLY THERE NEEDS TO BE SOMETHING PROVIDED. WELL, THAT'S THAT'S I GUESS THAT'S THE $64,000 QUESTION IS EACH OF THE BOTH OF THESE ARE GOING TO NEED A STUDY TO ANSWER YOUR QUESTIONS. GET US SOME DETAILS ON A STUDY OKAY, BECAUSE THOSE THAT INFORMATION IS IMPORTANT TO THIS PICTURE. AND THEN, UM, WHEN APPROPRIATE. WE NEED TO HEAR WHERE SO THAT COUNSELORS AND THE PUBLIC CAN START TO THINK ABOUT APPLICABILITY AND WHETHER THAT THAT SUITS THE TOWN'S FUTURE. WE DID YOU KNOW, THIS IS KIND OF OFFSHOOT OF WHAT WE TALKED ABOUT. IT ARE OFF SITE A LITTLE BIT TALKING ABOUT ICONIC. EVENTS AND AMENITIES FOR THE TOWN. UM DOESN'T NECESSARILY MEAN THAT THIS IS THE RIGHT ONE FOR US, BUT IT IS OF THAT CALIBER, SO WE NEED TO EVALUATE IT CAREFULLY AND WITH MULTIPLE PARTIES INTERESTED, WE NEED TO BE FAIR. AND HOW WE DO THIS, SO I WANT TO

[00:20:02]

WELL, THEN, THAT'S IMPORTANT. YEAH ONES, UH, ICE AND ONE'S HARDCORE. BUT BOTH WANT TO 11 WANTS TO START OUT ICE AND MOVED TO HARD COURT ONE WOULD START AT HARDCORE AND MOVED TO ICE, SO THEY BOTH WANT TO GET TO THE SAME PLACE, BUT AGAIN THAT JUST DIFFERENT DIFFERENT OPTIONS.

DIFFERENT PROPOSALS. AND OR HAD ALL HAVE MORE INFORMATION FOR COUNSEL IN SESSION. ALL RIGHT.

QUESTION ON THE FINANCING OPTIONS SINCE WE'RE TAX EXEMPT. DO WE STILL DO THE FITTING? MUNICIPAL MANAGEMENT DISTRICT ON ASSESSMENT. ARE YOU? IF YOU CHOOSE TO, UM IF YOU CHOOSE TO USE ONE OF THOSE THOSE DON'T HAVE ANY OTHER PIT WILL HAVE AN ADDITIONAL ASSESSMENT. IT'S A CHOSEN BY THE PROPERTY OWNER. THAT TAX INCREMENT REINVESTMENT ZONE WOULD TAKE ALL OR A PORTION OF THAT. ATTACKS AND INVESTED BACK INTO THE AREA. BUT YOU SAID, WILL IT CHANGE THE ASSESSMENT? RIGHT THERE. THE. THE THERE WAS NOT A MUNICIPAL MANAGEMENT DISTRICT MENTIONED THE TEARS WOULD NOT ADD TO THE TAXES IT WOULD BE YOU WOULD. YOU WOULD USE A PORTION OR ALL OF THE TAXES TO REINVEST IN THERE. THE PIT WOULD BE IN. YES IT WOULD BE AN ADDITIONAL ASSESSMENT AND IT WOULD BE BASED ON ASSESSED VALUE PROPERTY VALUE. AND THAT WOULD BE PAID JUST BY THE ENTITIES IN WHATEVER YOU JUST, UH, DESIGNATED AS THE DISTRICT. SO WHAT ABOUT A BLENDED FEE IN TERMS? POLICE. AND PERCENTAGE OF THE TAPE. CLOSED. PLEASE. AND OR MANAGEMENT. SURE CAN. I THINK THAT'S THAT'S COMING FROM RN THAT WOULD BE ARE PART OF OUR NEGOTIATION. I THINK THE TWO ENTITIES THAT HAVE COME FORWARD ARE ON THE BOOKENDS OF THAT. ONE IS BASICALLY, THEY PAY THE FEE ENTIRELY. BOTH OF THEM ARE STILL TOWN FINANCED. ONE IS THEY'RE GOING TO PAY THE WHOLE THING AND OPERATE THE WHOLE THING. THE OTHER ONE IS OPERATIONS ONLY THEY DON'T PAY ANYTHING. WE GET ALL THE REVENUE AND WE PAY THEM A SEAT. SO IT'S KIND OF THE OPPOSITE ENDS. WHAT YOU JUST DESCRIBED IS KIND OF THE MIDDLE, AND THAT'S WHERE NEITHER ONE OF THESE ENTITIES IS REALLY WELL, MAYBE, BUT THAT'S PRIORITY. PART OF A NEGOTIATION DO HAVE A LITTLE BIT OF INFORMATION. HEALTH. LOOK AT THAT. WONDERING THINGS WERE THE ONLY OPTIONS AVAILABLE TO US OR IF THERE WERE THESE TWO OPTIONS AND PRESENTED TO US SO FAR. THAT'S GOOD. I APPRECIATE THAT. THANK YOU. CORRECT ME IF I'M WRONG, BUT IF THIS GOES OVER LIKE TEACHERS. WE MAKE GOOD. MONEY OFF OF IT WOULD BE BETTER OFF WITH THE OPTION NUMBER TWO. BUT IF IT'S BARELY SCRAPING BY, WE'D BE BETTER OFF WITH OPTION NUMBER ONE BECAUSE THAT GUARANTEES US THE LEAST THING IS THAT A CORRECT STATEMENT? ONE IS VERY SAFE TO, UH IT COULD BENEFIT US. IF YES.

SO A STUDY THAT YOU'RE GOING TO DO IS GOING TO GIVE US SOME BETTER INFORMATION ABOUT HOW WELL IT WOULD DO HERE. YES YEAH . BE A STUDY THAT WE WOULD WE WOULD FIND. WE STILL NEED TO MEET WITH THE A B, C AND C D C AND DISCUSS IT WITH HIM AND SEE IF THAT BE SOMETHING THEY'RE INTERESTED IN. FUND FUNDING THAT STUDY. I THINK WE SHOULD ADD ONE MORE PIECE THIS SO WE FOCUSED ATTENTION ON THE DEBT PAYMENTS, THE LEAST PAYMENT THE OPERATIONS. THE VALUE OF ONE OF THESE IS USUALLY NOT ANYMORE THAN THE FACILITY. IT'S USUALLY A NET WASH. BUT THE, UM THE

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AND SO IT'S AND AS A AS A BASKETBALL DAD. I CAN I CAN ATTEST HOW CRAZY THOSE THINGS GET. QUESTIONS ANYTHING ELSE BEFORE WE MOVE ON. WE'VE GOT YOU KNOW, WE NEED QUITE A BIT OF WORK ON EXPLORING THIS BEFORE IT'S VIABLE. BUT THIS IS A GOOD A GOOD START. IT'S AN INTERESTING PROPOSAL TO OUR TOWN . UM AND ONE WE SHOULD WE SHOULD TAKE SERIOUSLY. WHETHER OR NOT THIS IS THE RIGHT CHOICE IS TO BE DETERMINED. BUT IF WE DO THIS RIGHT IN TERMS OF HOW WE APPROACH THIS, AND WE DO IT IN A STRUCTURED FASHION IT WILL HELP US AS WE THINK ABOUT FUTURE OPTIONS OR FUTURE AMENITIES FOR THE TOWN. IT'S JUST A GOOD EXERCISE FOR US TO GO THROUGH.

THINK TO YOUR POINT MERIT IT CREATES FINALLY A DESTINATION IN NORTH LAKE. REALLY PEOPLE PASS THROUGH HERE. PEOPLE LIVE HERE. NOTHING REALLY DRAWS PEOPLE HERE. AND THAT'S KIND OF THE ECONOMIC IMPACT THAT I THINK WE COULD IF IT FROM HERE. ALRIGHT ARE WE GOOD WITH THIS ONE MOVE

[2.D. Briefing - Hotel Conference Center Construction Cost Increases and Proposed Funding Methodology]

WELL UM, THIS IS OUR THIS IS ANOTHER ONE OF OUR KIND OF ICONIC BUILDINGS, ICONIC PROJECTS. THE MAYOR AT THE CHAMBER LUNCH AND EMPHASIZED IN OUR VISION THAT WE WANT TO BE YOU KNOW, ICONIC, AND SO THIS IS THIS IS ONE OF OUR BOOK ENDS DOWN IN THE SOUTH PART OF TOWN.

EVERYTHING MOVING FORWARD. THEY WE MET WITH THE DEVELOPER EARLIER THIS WEEK AND WE'VE. SO WE HAD THE WE HAD THE ESTIMATE OF THE COST OF THE FACILITY. AND UM WE HAVE THE ACTUAL NUMBERS NOW, SO THEY DID EVERYTHING OUT. AND THIS IS WHAT ARE ABORTION WILL COST AND. BETWEEN 2019 AND 2022. THERE WERE A NUMBER OF THINGS THAT HAPPENED AND ONE OF THOSE WAS SUPPLY CHAIN AND CONSTRUCTION COSTS. AND SO I KNOW YOU'RE I TOLD YOU ABOUT THIS SEPTEMBER PROJECTS WERE ON ONE OF THE PARTNERSHIPS WE HAVE DOWN AT THE CATHERINE BRANCH PROJECT. BUT, UM MM HMM. SO ONE OF THE THINGS THAT IS HAPPENING IS PRESSURE GOING UP, BUT SO IS THE PRICE OF A HOTEL ROOM. SO IN A SENSE, IT'S A RESETTING OF THE VALUE OF THE DOLLAR. UNFORTUNATELY, BUT THE DOLLAR'S WORTH LESS. AM I GETTING IT RIGHT? AND SO THAT'S WHY ALL THESE ALL THESE THINGS ARE THE SAME. IT'S STILL STILL GIRDERS OR WOOD OR WHATEVER YOU WANT TO BUY, BUT UM AND BUT WE HAVE A VERY HEALTHY HOTEL HOXBY TAX FUND WE HAVE. EVEN AFTER WE PURCHASED THE LAND, REMEMBER, WE THAT THAT BLUE WAS SET IN. WE PURCHASED THAT LAND IN 2019 SO EVEN WITH THAT WE HAVE A MILLION IN THE IN THE BALANCE. JUST WITH OUR CURRENT HOTELS, NOT LOOKING AT ANY FUTURE HOTELS. WE CAN FUND UP TO SEVEN MILLION UM, SO WE HAVE AN OPTION OF FINANCING THE ENTIRE, UM AMOUNT OF THE BAR ACCOUNTING CONFERENCE CENTER. AND STILL KEEP THE MILLION IN CASH FOR RAINY DAYS OR FOR SOMETHING ELSE, OR WE COULD DO IT LARGE PAY DOWN AND REDUCE THE DEBT SERVICE OVER OVER THE TIME FOR THAT, SO ANYWAY, THERE'S A NUMBER OF OPTIONS AND THEN WE'LL HAVE THE CAMBRIDGE, CAMBRIDGE COME ONLINE AND THREE ADDITIONAL HOTELS ARE IN THE WORKS, SO THIS THIS NUMBER WITH THOSE HOTELS, WE COULD GET 9 10 MILLION IN DEBT. UM, JUST KIND OF HUNG UP ON THAT LAST BULLET. SO THREE ADDITIONAL ARE WE TALKING ABOUT THE BEST WESTERN WE'RE TALKING ABOUT THE 11 71 CORNER. IS THAT CORRECT? AND THEN THE WHOLE OKAY? OFF DEAL ON HER. OKAY SO IT'S THESE 33 ADDITIONAL, IN ADDITION TO THE CAMBRIA OR NOT BUILT RIGHT NOW, SO WE HAVE WARMEST AND FOUR MORE COMING. OKAY, JUST ON 1 14. WELL, THERE WAS THE ONE EYED BORN THAT DYLAN HART WILL BE ON

[00:30:02]

WHAT. OKAY? GIVE IT. I'LL GIVE IT A DOCTOR SAYS HE'S 51. THAT'S IN, UH, THAT'S THAT'S WHAT WE TRY TO DO WITH WITH ALL OUR DEBT. WE TRY TO BASE IT OFF WHAT WE KNOW AND NOT NOT WHAT'S COMING. SO YES, SIR. FROM ACCOUNT STANDPOINT, WE'VE GOT SIX OPERATIONAL RIGHT NOW. WE GOT FOUR IN PLANNING. SEVEN, MAYBE, PLUS THREE. UM. THAT PUTS US AT 10 HOTELS DOWN THERE, AND THEY'RE ALL THEY ALL FEEL IN YOUR CONVERSATIONS WITH THEM, AND ECONOMIC DEVELOPMENT OR OTHERWISE INTERACTIONS. THEY FEEL PRETTY STRONG. THEY FEEL LIKE THEY'RE GOING TO BE FINE WITH THAT. MANY COMPANIES, ALMOST DOUBLING IS SEEMS LIKE IT . THEY KNOW WHAT'S OUT THERE NOW, AND THIS IS SMALL WORLD IN THE HOTEL DEVELOPMENT, SO THEY ALL KNOW EACH OTHER IS COMING.

THERE IS THE, UH YOU KNOW, ONCE YOU BECOME A SINNER, THERE'S KIND OF LIKE A RESTAURANT CLUSTER. THERE'S IT'S BECOMES A DESTINATION, ESPECIALLY WE COULD ADD THAT BEEN THERE ALL EXCITED ABOUT THE SPORTS VENUE AND THE CONFERENCE CENTER BECAUSE THAT ALL THAT THAT RAISES THE DAY TOO. SO I THINK ALL INDICATIONS ARE IT'S VERY HEALTHY MARKET DOWN THERE AND COULD EVEN GET BETTER. ANY OF THEM IN THE RESTAURANT BUSINESS THAT THEY COULD EXPAND AROUND THEM A LITTLE BIT. UH YEAH. YEAH, I'LL ASK, BUT NOT IN THE MOTORCYCLE BUSINESS. YES. SORRY, MATE.

ALRIGHT WE GET IT JUST A QUICK QUESTION ABOUT VALUE ENGINEERING AND SOME OF MY ENGINEERING CLASS . I'M SURE WE HAVE SOME ENGINEERS WHO MIGHT PEOPLE ANSWER THIS QUESTION, BUT THERE'S PROS AND CONS TO STEEL CONSTRUCTION VERSUS WOOD CONSTRUCTION, STEEL. IT'S VERY HOT AND CAN COLLAPSE IN A FIRE. WHEREAS WOOD OR TIMBER CONSTRUCTION, CHARGE THE OUTSIDE OF THE WOOD AND SLOWS THE PROGRESSION OF A FIRE, SO I HAVE AN OPINION ON THAT, BECAUSE THAT'S WHAT I LEARNED. IS THAT STILL CAN BE SO YOU WOULD YOU WOULD RECOMMEND THE WEB CONSTRUCTION CONSTRUCTION. WELL, I WOULD SAY, THAT'S WHAT I'VE LEARNED. THAT'S UM BUILDING AND IS THAT A RECORD IS THAT RECOMMENDATION OR DO YOU WANT US TO LOOK AT THAT QUESTION? YEAH I DON'T KNOW WHETHER OR NOT THAT'S BEEN CONSIDERED. NOT HERE BEFORE YOU DO. WE MOVE FORWARD WITH KIND OF THE ICONIC OR WOULD YOU LIKE US TO LOOK AT THE VALUE ENGINEERING? ARE YOU ASKING FOR A CHOICE TONIGHT OR TO MOVE YES . MOVE FORWARD WITH THE ICONIC OR WOULD YOU LIKE US TO FOLLOW? YOU'RE ASKING THE QUESTION I'M ASKING IS DO YOU NEED THAT CHOICE TONIGHT? THAT WOULD BE HELPFUL GIVEN THE COMMENTS ABOUT WOOD CONSTRUCTION. I THINK THAT THERE I'M NOT A P. IN MY

[00:35:09]

WE HAVEN'T LOOKED AT THE FIRE. RISK OF THIS. I WAS JUST TRYING TO HELP ANSWER HARTMAN'S QUESTION THERE. UM, I IT'S NOT LIKE WE'RE PREFERENCES. I'M NOT PROFESSIONAL ENGINEER. BUT IN MY EXPERIENCE, THERE'S NOT THE CONSUMABLES AND THAT TYPE OF STEEL STRUCTURE LIKE YOU MIGHT HAVE AN ALL FRAMED HOTEL. WHERE EVERYTHING'S STEEL INSIDE FOR EVERY SINGLE STUD AND EVERY SINGLE WALL. SO THAT'S JUST MY OPINION. I DO LIKE THEIR SPANS. RIGHT? FROM A USER STANDPOINT, SOMEONE THAT SPENT 50 YEARS TRAVELING UM THE WHOLE DIFFERENCE TO ME IS WHEN YOU BUY WOOD OR BUILD A WOOD WOOD. 10 YEARS FROM NOW IT'LL SQUEAK EVERYWHERE IT IS. BUILD ONE OUT OF STEEL THAT THE WINDS WE GOT UP HERE IT'LL STILL BE THERE, AND IT WON'T BE NOISY AND SOMEBODY THAT TRAVELS ALL THE TIME, WHICH ARE THE KIND OF PEOPLE WERE LOOKING FOR. WE'RE GOING TO WANT THEM TO STAY IN A HOTEL. THAT'S UH, NOT ALREADY SOUNDING OLD. MY TAKE ON. THIS IS ONE AS LONG AS YOU CAN STRUCTURE THE FINANCING IN SUCH A WAY THAT ALLOWS US TO PAY FOR IT UNDER OUR CURRENT REVENUES. UM, WHETHER THAT'S THE LENGTH OF TIME OR WHETHER WE GET PREFERRED RATES OR IF YOU USE THE PAY DOWN MODEL. WHATEVER YOU CAN DO IS I DON'T WANT TO SACRIFICE THE INTENT OF THE WAY IT WAS EXPECTED TO BE BUILT. UM FOR DOLLARS AS LONG AS WE CAN PAY FOR SO MY VIEW IS LEANING TOWARDS OPTION ONE PROVIDED WE CAN PAY FOR IT. I WOULD CONCUR WITH THAT. CONSTRUCTION. YES, MA'AM. RIGHT? I WOULD LEAN BECAUSE OBVIOUSLY WE HAVE SOME OTHER PROJECTS THAT ARE SIGNIFICANT HERE. WE JUST TALKED ABOUT ANYTHING YOU CAN DO TO MAKE SURE THAT THIS THIS PAYMENT AND THE WAY WE STRUCTURE IT, LET'S NOT BE IN A HURRY TO DUMP MONEY ON IT. LET'S MAKE SURE WE STRUCTURE THIS THE LENGTH OF TIME THAT LEAVES US FLEXIBILITY FOR OTHER CHOICES. MM HMM. LET'S NOT MAXIMIZE OUR PAYMENT AND THEN HAVE TO SIT ON OTHER PROJECTS WITH THREE OR FOUR YEARS. LET'S LET'S TRY TO GROW INTO THE ADDITIONAL AMENITIES THAT WE'RE LOOKING AT. SO JUST, YOU KNOW, THIS IS A LONG TERM ASSET. WE'D USE A LONG TERM DEBT AND WE'D PRESERVE FUNDING FOR FUTURE PROJECTS. RIGHT? ANYWHERE ELSE WENT AWAY AN OPTION ONE OPTION TWO. YOU HEARD FROM ENOUGH OF US? YES, SIR. THANK YOU. VERY GOOD. THANK YOU. ALL

[2.E. Briefing - Fiscal Year 2021 Audit Presentation by Town Auditor]

AND SO OUR ORDER WILL BE DOING THIS. WE HAVE AUSTIN HENDERSON HERE. HER WITH BROOK WATSON AND CO. AND HE IS OUR AUDIT MANAGER . AND SO HE IS. HE'S BEEN ACTUALLY PROMOTED IN TUESDAY, ROLAND, SO HE'S BEEN HELPING OUT. A LOT OF CITIES AROUND HERE SO OFTEN ACTUALLY LIVES THEIR HOUSE, TOO. WHO, SO HE'S NOT TOO FAR. IT'S NOT IN NORTHLAKE, BUT HE'S FROM THE AREA AND SO HE'S BEEN WORKING FOR HIM FOR A COUPLE OF YEARS. NOT EVEN BEFORE I CAME HERE, SO I'M I'M EXCITED TO PRESENT ALL OF THIS INFORMATION TO YOU. WE HAD A GOOD CLEAN ON IN SUMMARY. IT WAS GOOD. WE HAD A GOOD YEAR. WE HAD A LOT OF GROWTH THAT'S HAPPENED REALLY CLOSE TO RIGHT AT THE END OF THE YEAR. THAT CAUSED US SOME MASSIVE THINGS. I THINK I'M STILL IN AUSTIN ABOUT EARLIER. I SAID, YOU KNOW, WE BUDGETED 1000 NEW HOUSES LAST YEAR. THEN WE AMENDED THE BUDGET. YOU GUYS REMEMBER RIGHT AT THE END OF THE YEAR TO ABOUT 1250 HOUSES BY THE END OF THE YEAR AND WE GET THE FINAL COUNT IN IS ABOUT 1500 NEW METER SETS, AND SO WHAT THAT DOES IS ALL OF THAT GUY'S TO GO THROUGH DEVELOPMENT REVIEWS, AND WE SAW A LOT OF IN YEAR. ADDITIONAL REVENUE COME IN. THAT

[00:40:04]

THIS IS THIS IS THE SECOND YEAR WE'VE HAD THEM WORKING FOR US. OKAY SO COUNSELING MAY RECALL WE WENT OUT FOR BED AND GOT A NEW AUDITOR. GIVE SOME FRESH EYES TO THIS IS THE SECOND TIME THEY'VE BEEN THROUGH AND BOTH YEARS IT SEEMS LIKE FROM MATERIAL I'VE RECEIVED AND BEEN PRETTY PLEASED WITH IT. SO LOOKING FORWARD TO YOUR SUMMARY AND ANYTHING YOU CAN TELL US ABOUT OUR STATE OF AFFAIRS WOULD BE GREAT. SO TURN IT OVER TO YOU. JUST WANT TO KNOW IF I GET A PICTURE WITH THE MAYOR AFTERWARDS, LIKE EVERYBODY ELSE. YEAH. SO MY NAME IS AUSTIN HENDERSON. I LIVE HERE. I LIVE IN FORT WORTH, SO I'M JUST DOWN THE ROAD 30 MINUTES AWAY. SO UH, YEAH, I ENJOY BEING HERE. THANK YOU FOR LETTING ME PRESENT TO YOU TONIGHT. REALLY? EXCITED TO BE HERE EXCITED TO BE WITH YOU.

SO LIKE JOHN WAS SAYING THINGS ARE IN GOOD SHAPE. I HATE HAVING TO DO THESE WHEN IT'S LIKE, YOU KNOW, YOUR TOWN'S DOING TERRIBLE. SO, YEAH, I ENJOY ENJOY WHEN IT'S A GOOD ONE.

WE'LL START WITH JUST OVERVIEW OF THE AUDIT PROCESS HERE. SO UM , WE KIND OF GO THROUGH, YOU KNOW, CERTAIN STEPS WHEN WE COME TO PERFORM AN AUDIT, RIGHT? IT TAKES TAKES A LITTLE WHILE SO IT STARTS OUT WITH THE ASSESSMENT. WE LOOK AT UM, YOU KNOW, LAST YEAR BEING THE FIRST YEAR IT TOOK US A LITTLE BIT LONGER TO KIND OF, YOU KNOW, GARNER WHAT? HOW DO THEY DO THINGS HERE AT THIS TOWN, RIGHT? YOU KNOW, WE GOTTA PROBABLY 60 SOME MUNICIPALITIES AROUND TEXAS. YOU KNOW WHAT IS NORTH LAKE? YOU KNOW, WHAT ARE THE CONTROLS WHERE THE PROCESSES SO THIS YEAR COMING IN? BE A LITTLE BIT OF THAT PRIOR YOUR KNOWLEDGE OF NOT OKAY. THIS IS WHAT THEY DO.

THESE ARE SOME OF THE CONTROLS THAT WE LOOKED AT LAST YEAR AND SAID, HEY, MAYBE YOU SHOULD IMPLEMENT THIS FOR GOING FORWARD. SO I KINDA HAVE A LITTLE BIT BETTER IDEA EACH YEAR AS WE MOVE FORWARD, AND SO THAT'S PART OF THAT ASSESSMENT. THE NEXT THING WANT TO POINT OUT IS OUR RISK BASED APPROACH. SO WITH THAT, YOU KNOW, WE'RE NOT LOOKING AT EVERY SINGLE TRANSACTION WE'RE NOT LOOKING AT. YOU KNOW, EVERY SINGLE INVOICE THAT COMES IN EVERY SINGLE REVENUE THAT COMES IN. WE'RE LOOKING AT WHAT ARE THE RISK AREAS WHERE WHERE COULD THERE BE PROBLEMS AND WE KIND OF EVALUATE FROM THERE AND THEN OBVIOUSLY, WE HIT EVERYTHING MATERIAL ON THE FINANCIAL STATEMENTS AS WELL. SO THE NEXT PIECE HERE, COMPLIANCE LOOKING AT, YOU KNOW, MAKING SURE THAT THERE'S NO. YOU KNOW, ILLEGAL ACTIVITY. ANYTHING THAT'S YOU KNOW, OBVIOUSLY BREAKING SOME SORT OF REGULATION. UM WE ANYTHING THAT WOULD POP UP OBVIOUS THERE WE OBVIOUSLY LOOK THROUGH AND SEE. HEY, YOU KNOW, THEY'RE KIND OF MEETING THE MARK ON ALL THIS STUFF, AND WITH THAT WE TRY TO KEEP ON ANY NEW REGULATIONS. YOU KNOW NEW LAWS, ANYTHING THAT WOULD AFFECT THE TOWN SPECIFIC TO FINANCES, USUALLY SO AND THEN FINALLY, THE FIELDWORK. SO THAT'S THE ACTUAL COMING OUT DOING THE WORK, YOU KNOW, GRABBING A SAMPLE OF INVOICES LOOKING AT, UM YOU KNOW, PAYMENTS AND REVENUES AND JUST KIND OF SOME OF THE KRUL'S THAT ARE PART OF THE ACCOUNTING, SO THAT'S THE ACTUAL FIELD, RIGHT? THAT'S USUALLY WEEK OR TWO THAT HAVE REALLY KIND OF HARDCORE TIME. AND THEN FINALLY CONCLUDING, REPORTING THAT'S TONIGHT. YOU KNOW, BEING HERE IN FRONT OF YOU MAKING SURE THAT YOU KNOW HOW THINGS ARE GOING AND MAKE SURE THAT WE ADDRESS ANY CONCERNS THAT YOU KNOW YOU MAY HAVE. SO THE NEXT WE'LL LOOK AT THE COMPONENTS OF THE REPORT HERE. SO IT STARTS WITH THE INTRODUCTION. UM COMING THROUGH WHAT I LIKE TO ALWAYS POINT OUT THE AUDITOR'S OPINION. THAT'S THE ONLY PIECE THAT WE ACTUALLY OWN OF THE REPORT. THE REST IS THE TOWN'S REPORT TO KIND OF MODIFY OUR OR CHANGE UP HOW YOU KNOW THEY WANT TO PRESENT THEIR SELVES, YOU KNOW, PRESENT ALL THEIR FINANCIAL POSITIONS WHERE OUR AUDIT IS SAYING, ALL OF THAT IS CORRECT. SO ARE OPINION THIS YEAR, YOU KNOW, YOU CAN SEE THE DIFFERENT OPINION TYPES THERE AT THE BOTTOM OF THE SLIDE. OUR OPINION IS UNMODIFIED CLEAN.

THAT'S THE HIGHEST LEVEL OF ASSURANCE TO THE GOOD GREEN THUMBS UP. SO UM, I ALWAYS LIKE TO SEE THAT THE NEXT PIECE OF THE REPORT YOU'VE GOT YOUR MANAGEMENT'S DISCUSSION ANALYSIS. THAT'S REALLY THE TOWN'S CHANCE TO KIND OF TELL THEIR STORIES SAY, HEY, HERE'S WHAT'S GOING ON HERE IS WHERE YOU KNOW SOME DIFFERENT BUDGET THINGS THAT HAVE HAPPENED, WHICH WILL LOOK AT A LITTLE BIT LATER AND JUST GIVES A KIND OF A CLEAR PICTURE TO ANYONE THAT'S PICKING UP THE REPORT AND READING IT. UM AS FAR AS HERE'S WHAT'S GOING ON AT THE TOWN. HERE'S WHAT'S KIND OF GOING ON THE FUTURE. HERE'S WHAT'S HAPPENED THIS YEAR. IT'S KIND OF A GOOD YOU KNOW, PAST PRESENT FUTURE PEACE THERE. NEXT WILL BE THE FINANCIAL STATEMENTS THEMSELVES. SO YOU'VE GOT YOUR

[00:45:03]

[00:50:06]

ALL THIS WATER AND SEWER THAT YOU HAVE TO SERVICE. RIGHT? SO YOU GOT TO BUILD ALL THESE BUILT ALL THESE OUT, SO AS THAT HAPPENS, YOU GET THOSE TRANSFERS COME OVER TO CAPITAL PROJECTS.

UM ANYTHING I WANTED TO POINT OUT ON THIS SLIDE, AND YOU LOOK AT THE UTILITY IMPACT FEE. THE OPERATING INCOME THERE SHOWS A LOSS OF 860,000, BUT THEY HAVE A POSITIVE CHANGE IN THAT POSITION. THE REASON FOR THAT. IS THAT YOU UTILITY IMPACT FEE. THE WAY THAT IT'S PRESENTED ON THE FINANCIAL STATEMENTS IS AS LIKE A CAPITAL CONTRIBUTION, SO IT COMES IN UNDER THE OPERATING INCOME, SO OVERALL, THAT WAS A NET POSITIVE INCREASE, EVEN THOUGH YOU HAVE WHAT LOOKS LIKE A BIG OPERATING LOSS THERE. SO SEND ANOTHER WAY. I'M GOING TO TRANSLATE THIS IN MY HEAD. WATER AND SEWER. WE'RE MAKING ENOUGH MONEY TO PAY THE BILLS 100% BUILDING A TON OF INFRASTRUCTURE, SO WE'RE MOVING A LOT OF CASH OUT RIGHT NOW. WATER TOWERS, GROUND STORAGE, WATER METERS. IT'S JUST VERY FAST GROWTH. AND WE'RE PULLING FROM THE FRONT WERE BUILT UP AS THE WAR CHEST. CORRECT CORRECT, SUSTAINABLE, HAVE A LOT OF CITIES THAT THEY'RE NOT PAYING FOR THEIR WATER AND SEWER. THEY REFUSED TO INCREASE RATES, THOSE SORTS OF THINGS AND SO THIS IS A , UH, LIKE I SAID, ON THE SURFACE IF YOU'RE JUST LOOKING AT THIS SLIDE, LIKE WHOA, HEY, WHY IS THE CHANGE IN THAT POSITION? SO IS IT BLEED MONEY? NO IT'S NOT BLEEDING MONEY. IT'S JUST PAYING FOR ALL THE CAPITAL PROJECTS THAT ARE GOING ON. AN IMPACT FEES, OPERATING LOSS AND IMPACT FEES. DOESN'T NECESSARILY CONCERNED BECAUSE I KNOW WE'VE BEEN DRAINING THOSE TO PAY FOR A TON OF PROJECTS RIGHT NOW, THAT'S GOING IN THE GROUND, WHICH IS WHAT IT'S THERE FOR. UM WHICH I KNOW WE'VE BEEN SPENDING A LOT OF THEM SO, SO THAT'S REPRESENTED HERE. ANY CONCERN WITH THAT WITH US USING THOSE OR WE DRAINED THEM DRY. IS THAT A PROBLEM OR FROM JUST A VERY HIGH LEVEL STANDPOINT? I DON'T SEE ANY ISSUE WITH AS LONG AS YOU KNOW, YOU'RE THE BASIC THING THAT WE REALLY LIKE TO SEE IS THAT THE WATER AND SEWER RATES ARE PAYING FOR THE INFRASTRUCTURE AND YOU DON'T WANT TO GET TO CURRENT USERS ARE PAYING FOR ALL THE FUTURE USERS TO USE AND YOU DON'T WANT TO GET TO PUSHING IT KICKING THE CAN DOWN THE ROAD EITHER. SO WHAT WE'RE SEEING HERE I FEEL LIKE FROM JUST TO HAVE VERY HIGH LEVEL PERSPECTIVE IS A HEALTHY, YOU KNOW. PULLING THE IMPACT FEES. YOU KNOW, THEY'RE KIND OF THEY'RE MEANT TO BE SPENT RIGHT? SO THEY COME IN. YOU SPEND THEM SO THANK YOU. OKAY I THINK THIS IS THE LAST SLIDE HERE. THE

[00:55:06]

THERE'D BE A FEW THINGS THAT WEREN'T UM, MOVED INTO THE RIGHT ACCOUNTS, RIGHT? THE TOWN KNOWS ABOUT EVERYTHING THAT'S THERE. THEY'RE JUST NOT. IT'S NOT ALL ALL THE PIECES AREN'T IN THE RIGHT PLACE TO PRESENT IT THE WAY THAT GATSBY, WHICH IS THE GOVERNMENTAL BOARD MAKES IT MAKES US PRESENT THEM RIGHT, SO THERE'S JUST A FEW ENTRIES THAT WE HAVE TO KIND OF MOVE THINGS AROUND. LIKE I SAID. I TOLD THE MAYOR THIS EARLIER. IT'S NOTHING THAT CONCERNS US AS AUDITORS BECAUSE WE SEE THIS EVERYWHERE AND THAT THE TOWNS AND CITIES KNOW WHAT'S GOING ON JUST A MATTER OF KIND OF MOVING THINGS AROUND. SO NOTHING THAT BROUGHT BIG CONCERN. I KNOW. SOMETIMES YOU HEAR MATERIAL WEAKNESS, ANYTHING. OH MY GOODNESS. THIS IS LIKE A TERRIBLE FINDING.

THAT'S A PRETTY BOILERPLATE FINDING THAT WE HAVE A LOT OF PLACES. THE SECOND ONE. WAS ON THE UTILITY BUILDING. UM CHALK IT UP TO BAD LUCK. I WAS TALKING TO JOHN EARLIER WE HAD WE PICKED A SAMPLE OF 10 UTILITY BILLING ACCOUNTS. ONE OF THE 10 THAT WE FOUND WAS SUPPOSED TO BE BEING BUILT AS IRRIGATION AND WAS DON'T KNOW WHAT IT WAS RESIDENTIAL WAS BEING BUILT RESIDENTIAL. SO UM, AND THEN SO THAT PROMPTED JOHN TO DO A FULL AUDIT OF ALL 6000 ACCOUNTS AND FOUND SIX OF THESE IN THE TOTAL , SO I THINK JOHN SAID, 60.1, YOU KNOW, FAIL RATE, BUT WE HAPPEN TO FIND ONE OF THE TENDER IN THE AUDIT. SO WE LIKE TO MENTION THIS AND JUST SAY, HEY, HERE'S SOME THINGS YOU CAN DO TO MAKE SURE THAT YOU KNOW THAT'S NOT HAPPENING AT ALL THE COUNCILOR GETTING BUILT AT THE APPROPRIATE RATES, I THINK JOHN AND IN THE UTILITY BUILDING, YOU KNOW, TEAM THAT HAS BROUGHT IN THEY'VE THEY'VE HAD IN THE LAST FEW MONTHS, PROBABLY BEEN ABLE TO TAKE A STEP BACK AND LOOK AT THE WHOLE PROCESS. AND, UM, YOU KNOW, DO SOME KIND OF AUDITING THE INDIVIDUAL ACCOUNTS, MAKING SURE THAT THE RATES ARE BEING BUILT PROPERLY. SO I THINK THIS IS PROBABLY ALREADY BEING ADDRESSED IF NOT ALREADY ADDRESSED FULLY, SO THE OTHER TWO NOTES THAT WE HAD IN THERE. JUST INFORMATIONAL. ONLY TALK ABOUT GATSBY, 87 THE LEAST STANDARD THAT'S COMING AS WELL AS OUR COMPLIANCE, WHICH I KNOW THERE'S ALREADY A GREAT ANALYST IN PLACE TO KIND OF HANDLE SOME OF THOSE COMPLIANCE REQUIREMENTS WITH THEY'RE THEY'RE PRETTY HEFTY, SO THANK YOU FOR DISTILLING 180 PAGES DOWN TO A FEW MINUTES. YEAH WE TRY TO WE TRY TO GET IT DOWN 10 15 MINUTES AS MUCH AS WE CAN. I KNOW LIKE THIS. THIS WAS VERY WELL DONE, GENTLEMEN. THANK YOU. UM COUNSELORS. I WANT TO GIVE YOU AN OPPORTUNITY TO PROBE INTO ANYTHING YOU WANT HERE. IS THERE ANYTHING THAT YOU WANT TO DISCUSS WITH THE AUDIT THAT I HAVEN'T COVERED? NO, THEY HAVEN'T COVERED. OH, SORRY. OKAY. THANK YOU VERY MUCH FOR GOODYEAR. APPRECIATE IT. APPRECIATE YOUR DILIGENCE ON THIS, JOHN WELL DONE AGAIN, VERY IMPRESSED WITH YOU KNOW THE STUFF YOU'VE GOTTEN DONE THIS YEAR AND 99.9. PERCENT OR 99% I GUESS WE CAN FIGURE IF YOU THAT BUT THAT'S THAT'S ACTUALLY A AS I SAID BEFORE THE SIGNIFICANCE OF THE DEFICIENCIES IS VERY IMPORTANT IF THEY ARE MATERIAL MATERIAL. YEAH SIGNIFICANCE THAN THAT POSES A PROBLEM WHEN IT'S TRULY THIS SMALL WEREN'T QUITE BUILDING THE RIGHT RATE

[01:00:01]

OKAY VERY GOOD. THANK YOU, SIR. APPRECIATE YOU COMING COUNSELORS MOVE ON THE NEXT TOPIC. ALRIGHT?

[2. F. Briefing - Quarterly Reports]

THAT I'M NOT A TRAINED CPA AND YOU SENDING ME BACK TO YOUR GET A CPA WOULD NOT ACTUALLY BENEFIT THE TOWN ON A COST SAVINGS WISE , SO HAVING THEM DO SOME OF THOSE THINGS. THEY'RE THE SPECIALISTS, AND SO EVENTUALLY WE JUST WE HOPE TO SHRINK IT DOWN BELOW MATERIAL. SO YOU MUST LIKE YOUR JOB AND IN ORDER TO ENJOY FINANCIAL COLONOSCOPY, BUT YES, SIR. GOOD JOB. ALL RIGHT.

SO LET'S TALK ABOUT THIS YEAR. SO OUR QUARTERLY FINANCIAL REPORTS COULD I MOVE ON QUICKLY, MAYOR SO YOU GUYS REMEMBER WE'VE GONE TO A FULL LIKE TRANSPARENCY WEBSITE THAT GIVES FULL ACCESS TO OUR FINANCIALS THROUGH OUR WEBSITE, AND SO IN THIS ANY OF OUR CITIZENS AND ALL OF YOU CAN GO ONLINE AND LOOK AT THIS. YOU CAN LOOK AT MY PAST QUARTERLY FINANCIAL REPORTS ON THERE AS WELL. BUT IT'S A TRANSPARENCY PORTAL, SO IT PROVIDES THE SAME LEVEL OF INFORMATION. I'M GIVING YOU, BUT IT ALSO OFFERS THE ABILITY TO EXPLORE IT. SO I ALWAYS ENCOURAGE YOU OR ANY CITIZENS. PLEASE GO ONLINE AND LOOK AT THAT TOOL. IT'S A GREAT PIECE OF WAY AND I CAN EVEN TRACK HOW PEOPLE ARE LOOKING AT IT AND WHETHER THEY GO TO IT. IT'S NOT A CRAZY NUMBER, BUT WE DO HAVE A GOOD COUPLE OF CITIES THAT ACTUALLY LOOKED AT OUR FINANCIALS AND TRY TO MODEL SOME OF OUR STUFF. AFTER THAT. I JUST SHOWED SOMEONE OF THEIR CITY AND SAID, GO TO THIS. IT'S EASIER AND IT'S A LOT LESS NUMBERS TO THROW AT PEOPLE. IT'S A LITTLE BIT MORE FRIENDLY AND KIDS WILL EVEN GO ON AND CLICK AND PLAY THROUGH IT. SO THAT'S WHY I LIKE IT. IF CHILDREN CAN LOOK AT IT AND NOT BE OVERWHELMED, THEN WE'RE DOING A GOOD JOB BECAUSE THIS STUFF IS VERY COMPLICATED.

SO THE BUDGET HIGHLIGHTS THAT I WANT TO GIVE TO YOU WERE 50% THROUGH THE YEAR. WE HAVE 64% OF OUR TOTAL REVENUES. 30% OF OUR TOTAL EXPENDITURES HAVE BEEN SPENT THROUGH THE YEAR AND 12% OF BUDGET CAST. HAS BEEN EXPENDED. AND SO SOME OF THE OTHER HIGHLIGHTS THAT I PUT WITHIN MY STAFF REPORTED MEMO TO YOU IS THAT WE RECEIVED 99% OF THE PROPERTY TAXES THAT WE BUDGETED FOR THIS YEAR. THAT'S PRETTY TYPICAL. MOST OF THE TIME. YOUR COLLECTIONS YOU GUYS KNOW YOU GOTTA START GETTING HIT WITH FEES. IF YOU DON'T HAVE IT IN BY JANUARY ONE, SO MOST EVERYONE GETS THEIR PROPERTY TAXES IN THAT LITTLE LESS PERCENT THAT COMES IN SO WITH THAT WE DID ALL OF OUR TRANSFERS. WE HIT MOST OF THE THINGS THAT WE NEEDED TO GET DONE WITHIN THE YEAR. THE ONLY PLACES THAT WE SAW KIND OF AN OVERRUNNING EXPENDITURES IS POLICE OVERTIME. BUT WITH THE ACCIDENT THAT'S GOING TO BE NORMAL. WE'RE DOWN SOME OFFICERS, AND SO DURING THAT WE SAW SOME SPIKES OVER TIME. ESPECIALLY WITH THE WEATHER EVENTS THAT WE'VE BEEN GOING THROUGH THE WINTER. WE HAVE SEEN INCREASED USES OF THAT. SO THAT'S THE ONLY PLACE THAT WE'RE ACTUALLY SEEING EXCESSIVE REVENUES IN OTHER AREAS, AND SO , UM IT'S BEEN GOOD. WE HAVE A STRONG SALES TAX BASE WHERE WE'RE MOVING THROUGH THE YEAR AND A GOOD WAY AND WE'RE NOT OVERSPENDING AND SO ARE OPERATIONAL STUFF IS GOING TO MEAN AS ACCORDING TO PLAN AND WE'RE NOT LIKE OVERSPENDING ON PERSONNEL WERE NOT AHEAD ON ANY OF THAT. THAT'S USUALLY WHERE YOU HAVE TO WORRY IS IF YOU GET OUT OF YOUR SKIS AND OPERATIONS AND WARNED OUT THERE AT ALL SO IF YOU HAVE ANY QUESTIONS OR WANT TO DIG INTO ANYTHING ELSE, WE CAN GO INTO THAT. DAUGHTER WE'RE GONNA MOVE ON TO QUARTERLY INVESTMENT REPORTS SO AS YOU GUYS PROBABLY KNOW. INFLATION'S HAPPENING. I THAT WORD COMES OUT OF MY MOUTH. PROBABLY 2 TO 3 TIMES A DAY NOW, SO YEAH, IT'S VERY HARD TO TALK ABOUT IT. BUT ONE OF THE BIG THINGS THAT IS HAPPENING THAT WE'RE SEEING IS THE FEDS ARE RAISING THE RATES AND THEY'RE DOING IT TO STAMP DOWN INFLATION. SO WHAT THAT MEANS IS THAT INVESTMENT AS A WHOLE ARE GOING UP. AND SO THE BASE VALUE OF LENDING MONEY TO BANKS HAS INCREASED. THAT'S WHAT A FED FUNDS RATE INCREASES, THEN PRINTING MONEY AND SENDING IT TO BANKS IS COMING OUT OF HIGHER COST, AND THAT CAUSES PEOPLE TO LEARN LESS MONEY, WHICH INCREASES THE RATE OF RETURN ON INVESTMENTS OVER TIME, AND SO AS SUCH, OUR INVESTMENT BOOK VALUE FOR MONEY THAT WE HAVE IN THE BANK IS NOW GETTING HIGHER INTEREST RATES AND SO WE ALSO RECEIVED OUR BOND ISSUANCE MONEY. SO THAT INCREASED THE AMOUNT OF MONEY THAT WE HAD IN THERE. AND SO WE SAW A BIG UPTICK IN THE INTEREST EARNINGS.

WE HAD BOTH BECAUSE THE INCREASE IN CASH AND THE INCREASE IN THE FED FUNDS RATE LIKE I JUST TALK TO LAMAR BANK THIS WEEK AND JUST SAID HEY, FEDS ARE RAISING THIS. WE NEED TO BE MARKET COMPETITIVE THERE BETWEEN 2.5 AND 0.5. WHEN COUPLE MONTHS AGO, THEY WERE AT LESS THAN YOU KNOW, 0.1. SO WE'RE GETTING THERE AND GETTING CLOSER AND OUR INVESTMENTS ARE GONNA MATCH. BUT AS WE SEE THE INVESTMENT VALUE GROWTH, WE NEED TO START LOOKING AT FUTURE DIVERSIFYING INVESTMENTS BECAUSE THIS IS A GOOD TIME TO START LOCKING IN AND THINKING ABOUT LONG TERM INVESTMENT THINGS SO

[01:05:04]

BEFORE WE USE MONEY MARKETS BECAUSE THE VALUE OF INVESTMENTS IS NONE. AND SO THE BEST DOLLAR VALUE YOU COULD GET WAS KEEPING MONEY IN SOMETHING THAT WAS FLUID AND FLEXIBLE. NOW WE PROBABLY NEED TO LOOK AT YOU GOT A LOT OF LOT OF CEOS ARE DIFFERENT, TOTALLY MECHANISMS AND INVESTMENT MECHANISMS. IF WE WANT TO GET BETTER RETURNS ON INTEREST OVER TIME, SO WE HAVE A LOT OF DEBT THAT WE TOOK OUT TO DO CAPITAL PROJECTS. THOSE CAPITAL PROJECTS WILL HAPPEN OVER TIME. SO UTILIZING THAT MONEY AND GETTING INTEREST ON IT DURING THAT TIME IS PROBABLY A BETTER USE. YEAH IT'S A GOOD POINT YOU'RE MAKING. BUT THE POINT IS KIND OF A WASH, BECAUSE I MEAN, WE'RE TALKING ABOUT FRACTIONS OF A PERCENT HERE, AND WE'RE NOT. WE DON'T HAVE A MANDATE TO GO. SPECULATING BITCOIN OR SOMETHING? NO, NO, IT'S IT WILL BE NOTHING LIKE THAT. NO, I UNDERSTAND. BUT MY POINT IS THAT THE BUYING POWER OF THE MONEY WE WERE SITTING ON THE BANK IS LOSING ITS VALUE IT 67% A YEAR. A LOT OF THIS DEDICATED TO CAPITAL PROJECTS IS LOSING GROUND AT 15 20 PLUS PERCENT A YEAR BECAUSE OF THE INCREASE IN MATERIALS. SO UM, I CAN'T BELIEVE I'M ACTUALLY SAYING THIS BUT ONE OF THE BEST WAYS TO MAKE MONEY OFF OF YOUR CAPITAL IS TO GET IT IN THE GROUND SO THAT IT MAKES MONEY FOR YOUR CITIZENS AND FOR YOUR BUSINESSES. SO AS A POLICY. I'D LIKE US TO FOCUS MORE ON THAT END THAN TRYING TO SQUEEZE THE NEXT, YOU KNOW, POINT 1% OF INTEREST OUT OF THIS WHEN WE'RE LOSING THAT MUCH GROUND SO WHEREVER POSSIBLE. WE NEED TO BE , YOU KNOW, GETTING OUR PROJECTS GOING, GETTING THE CONTRACTS LOCKED IN, SO LET'S MAKE SURE WE'RE FOCUSING AS MUCH ATTENTION ON GETTING THOSE PROJECTS OUT THE DOOR AND LOCKED IN AS FAR AS MATERIALS COSTS BECAUSE THAT'S WHERE WE'RE GONNA SAVE A LOT OF MONEY. YEAH IT'S OUR CONTRACTORS THAT WE DO LOCK IN PRICES WITH FOUR CAPITAL PROJECTS. THEY'RE THEY'RE INCENTIVIZED BECAUSE BY THE TIME THEY DID IT OUT, IT'S ALREADY UNDERBID. SO OH, SERIOUSLY LOCKED THOSE CONTRACTS AND WE ARE OUR CNN MOVE QUICKER . SO THAT IS THAT IS SOMETHING THAT WE ARE SEEING ALREADY AND SO YEAH, WE WOULDN'T LOOK AT TRUE, VERY EARLY LONG TERM INVESTMENTS. BUT IF WE CAN'T MOVE ENGINEERING PROFESSOR OF THEIR SUPPLY CHAIN ISSUES. WE MAY HAVE TO LOOK AT IT LIKE IF PROJECTS THAT WON'T START FOR TWO OR THREE YEARS, SUCH AS IF WE DO THE LARGE TRUNK LINE, SO THAT'S AN INVESTMENT THING. WE WOULD DO THE ISSUANCE FOR THAT AND FOR WORTH, AND WE MIGHT PAY THAT. OUT OUT TO THE CONTRACTOR FOR ENGINEERING SERVICES, PROFESSIONAL SERVICE, AND SO LET ME LOOK AT YOU KNOW ANOTHER THING WE'LL DO IS WE'LL TIME THE DEAD ISSUANCE IN BREAK IT UP INTO PHASES LIKE JOHN SAYING SO WE CAN ISSUED AS WE COME UP UPON THAT PHASE OF CONSTRUCTION. THAT'S THAT'S YEAH, THAT'S STAGGERING OUR DEBT AND LIKE ISSUANCES TO CLOSER TO CONSTRUCTION TIME IS A GOOD ANOTHER OPTION. SO NOT GOING OUT AS SOON AS WE NEED THE CASH BY GOING OUT AS SOON AS WE ACTUALLY STARTED TO MAKE PAYMENTS, AND CASH IS ANOTHER GOOD ONE OF PUSHING BACK. THAT ISSUE. INSIST FOR TIMING IS A IS A GOOD OPTION TO OKAY. VERY GOOD. WELL, THANK YOU FOR YOUR ATTENTION ON THIS. IT'S A TINY BIT OF MONEY IN THE GRAND SCOPE OF THINGS, BUT EVERY DOLLAR COUNTS SO APPRECIATE YOUR TIME AND FOCUS ON THIS. BUT IF THERE'S ANYTHING TO HAVE THAT TINY BIT AMOUNT OF MONEY IN MY BANK ACCOUNT, BUT LIKE 44 MILLION IS PRETTY GOOD. SO I'M TALKING ABOUT THE 30. DON'T WORRY. ALRIGHT QUESTION. IF YOU DON'T MIND, PLEASE, IF YOU DON'T MIND GOING BACK TO SLIDES, MAYBE, UM THE ONE WHERE YOU HAD THE 64% OF REVENUES 36% OF TOTAL . OKAY 12% OF BUDGETED CASH EXPENDITURES HAVE BEEN SPENT, BUT WE'RE IN. WE'RE HALFWAY THROUGH THE YEAR. WHAT DO YOU EXPECT THAT WE'RE GOING TO SPEND? SPENT SO, UM, BECAUSE WE DO CAPITAL PLANNING, WE ADAPT TO HELP CAPITAL BUDGET AND CAPITAL EXPENSES STRAIGHT UP FRONT. SO WHENEVER YOU GUYS ADOPTED THE CATHERINE BRANCH PHASE TWO PROJECT, IT ALL CAME ONLINE DURING THAT. THAT'S WHY THE EXPENSES SO LOW BECAUSE YOU HAD TO ADOPT THE ENTIRE COST OF THAT PROJECT UPFRONT, AND SO THAT'S WHY THAT VALUE IS SO LOW, BUT OPERATIONS WISE, WE'RE TRACKING WHERE WE SHOULD BE WITH OPERATIONAL CAST BY THE END OF THE YEAR. I DON'T ANTICIPATE AS SPENDING ABOVE LIKE 60 OR 70% OF THE BUDGETED EXPENDITURES THAT WE DO BECAUSE CAPITAL IS ALWAYS BUDGETED UPFRONT JUST SO THAT WE DON'T EXTEND. UM WE DON'T OVEREXTEND THE AUTHORITY THAT YOU GIVE US FOR CAPITAL SPENDING. SO THAT'S THAT'S WEIRD PROCESS. WE CAN'T GO OUT AND BUILD PROJECTS THAT ARE MORE THAN WHAT SHE GIVES US THE AUTHORITY TO DO. THAT'S WHY CAPITAL SENATORS OR BUDGETED CAPITAL EXPENDITURES ARE UP FRONT. TIRES NOW, NO FREE MONEY AT THE END OF THE YEAR. WE'RE GONNA SPEND IT ALL. NO, NO, THAT'S OKAY. GUYS WHO PUT ME IN JAIL? YEAH ALRIGHT. VERY GOOD. THANK YOU. ALRIGHT IT IS 6 40 PM AND WE'RE AT THE PUBLIC INPUT PART OF THE MEETING. SO IF THERE'S ANYONE HERE TONIGHT I SEE A NUMBER OF FACES TONIGHT. IF YOU'D LIKE TO SPEAK TONIGHT WE'D LOVE TO HAVE A CARD FOR ME AND HAVE YOU COME UP AND TALK TO US? IS THERE ANYBODY THAT WANTS TO SPEAK TONIGHT? ALL RIGHT.

EVERYBODY IS HERE FOR THE ENTERTAINMENT. OKAY? VERY GOOD. ALL RIGHT. WELL I DON'T HAVE ANY

[01:10:06]

[4. CONSENT ITEMS]

THANK YOU. THANKS. ALL RIGHT. AND THEN WE HAVE THE ACCEPTANCE OF THE AUDIT. SO WE CAN COUNSELORS. YOU CAN PULL ONE OF THESE OR YOU CAN ACCEPT THEM. SO GO AHEAD AND MAKE YOUR MOTION.

THAT'S A MOTION TO APPROVE. ALL RIGHT. I HAVE A SECOND FROM COUNCILOR GANZ. OPEN THE VOTING, PLEASE. ALRIGHT VERY GOOD, UNANIMOUS THOSE PRESENT WHEN ABSENT OKAY? LET'S MOVE ON TO THE REGULAR SESSION TONIGHT. ALRIGHT ACTION ITEM. I IS WITHDRAWN. ITEM J IS RESOLUTION

[5.J. Consider Resolution 22-19, approving and authorizing the Town Manager to execute a lease agreement with NextLink to locate an antenna on the Town of Northlake North Water Tower for an annual amount to be paid to the Town of Northlake not to exceed $2,500, pending an engineering report on installation]

JUSTIN GOT THE NORTHWEST RESIDENTS HAVE PRETTY MUCH SATURATED BOTH THOSE TOWERS.

OKAY SO OUR GOAL WITH UM WITH OUR TOWER, WE DO HAVE FOUR ANCHORS ON THE TOWER FOR WIRELESS COMMUNICATION SERVICES. AND IT'S BEEN OUR DESIRE TO GET CELL SERVICE WIRELESS SERVICE GET SOME COMPETITIVE OPTIONS. THAT'S THE ONLY ONE WE'VE GOTTEN TO THE FINISH LINE AT THIS POINT , AND $2500, WHICH IS A NOT VERY SIGNIFICANT LEASE, BUT IT IS AT LEAST THAT IS USED BY AN EXCELLENT SERVICE THAT IS USED BY A SIGNIFICANT NUMBER OF OUR RURAL RESIDENTIAL CUSTOMERS WHO DON'T HAVE BROADBAND IN THE GROUND. SO THIS IS AN EFFORT TO TRY TO EXTEND AND MAKE MORE RESILIENT OUR OUR WIRELESS AND HIGH SPEED INTERNET IN THE TOWN. IN AREAS THAT DON'T HAVE UNDERGROUND BROADBAND. SO DO WE HAVE ANY ANYTHING ELSE TO HIGHLIGHT ON THIS? OKAY MAYOR PRO TEM. YOU DID SOME WORK ON THIS? UM WHAT? WHAT DO YOU HAVE TO SAY ABOUT IT? THIS WAS BASICALLY, UM AS THOSE TOWERS ARE SATURATED, OR NORTHWESTERN RESIDENTS AND FULL DISCLOSURE, INCLUDING MYSELF, DON'T HAVE ANY OPTIONS FOR UM, INTERNET INCLUDING PRAIRIE VIEW. AH! CREEK MEADOWS. I BELIEVE AS WELL, UM STARDUST RANCH, SO THERE'S A WHOLE AREA OF THE TOWN THAT DOESN'T HAVE BROADBAND ACCESS OTHER THAN WIRELESS ACCESS, WHICH IS A INTERESTING PROPOSITION IN ITSELF. BUT NEITHER HERE NOR THERE ARE CONTACTED NEXT LINK AND ASKED THEM IF THEY HAD BEEN ARRESTED IN DOING SOME SORT OF LEASE WITH THE TOWN. AND IN THAT PROCESS, THEY SAID, WE REALLY AREN'T LOOKING TO EXPAND RIGHT NOW. I SAID. BUT YOUR PROPOSAL UP TO COUNSEL AND HAVE COUNCIL DECIDED ON. UH, WE NEED THE SERVICES. BUT IT'S UP TO YOU AND THE REASON THAT SAYS PENDING ENGINEERING DESIGN IS THEY CAME BACK TO DRAWING MYSELF AND SAID, WE DON'T WANT TO PAY FOR THIS DRAWING SET TO BE APPROVED BY ERIC AND OUR PUBLIC WORKS TO HANG IT ON THERE UNLESS WE KNOW THE COUNCIL'S GONNA ACCEPT THEIR OFFER. SO THEY STILL HAVE TO PASS THEIR ENGINEERING QUALIFICATIONS TO HANG IT PHYSICALLY HANGING ON THE TOWER , BUT THEY WANTED TO MAKE SURE THAT THE COUNCIL WAS IN LINE TO ACCEPT THEIR THEIR OFFER SERVICE TO THE TOWN AND YES TO DREW'S POINT. IT IS LOWER THAN WE WOULD LIKE TO GET. BUT WE'VE SEEN LEAST RATES ON WATER TOWERS GO DOWN DRASTICALLY. WE HAVEN'T HAD ANY INTEREST FROM AT AND T OR VERIZON OR T MOBILE. WHEN THOSE PUBLIC PUBLIC BID DOCUMENTS WENT OUT. SO THIS IS KIND OF ONE OF THOSE. THEY'RE HELPING US. COUNCIL CAN CHOOSE IF WE WANT TO ACCEPT THEIR OFFER, NOT, BUT IT'S DEFINITELY NEEDED IN NORTH NORTHWESTERN PART OF TOWN. HOW MANY OF YOU USE THIS SERVICE BESIDES YOURSELF, MAYOR PRO TEM ANY OF OTHERS. ONE QUESTION IS, IS NEXT LINK, PUTTING ANY STIPULATIONS ON IT? WHERE NO OTHER BROADBAND PROVIDERS CAN LEASE SPACE. IF THEY'RE RELEASING SPACE. WE HAVE THREE OTHER CONDO IT'S AVAILABLE ACTUALLY. ERIC PROBABLY HIT ME AND I SAID THIS WE COULD EXPAND IT BEYOND THAT, IF NECESSARY. YOU'VE SEEN SOME WATER TOWERS THAT ARE JUST FESTOONED WITH THESE ANTENNAS. BUT WE HAVEN'T. WE HAVEN'T HAD ANY INTEREST. WE CONTACTED ALL THE MAJORS LIKE THE MAYOR. DIMENSIONS SO THIS THIS IS THE ONLY ONE I WANTED TO

[01:15:05]

FROM MY HOUSE AND BRIAN'S PLACE , SO, AS BRIAN SAID, WE DON'T HAVE MANY OPTIONS OUT AND IN OUR NECK OF THE WOODS AND I THINK COUNCILOR BOYARS WORKING ON SOMETHING AS WELL IN THE GROUND SERVICES, MAYBE THROUGH HIS H O A BUT THAT'S PRIVATE WITH HIS AGE AWAY, SO I DON'T KNOW WE MET THERE IS TALK ABOUT THEIR EXTENDING SERVICES, POSSIBLY A LITTLE FURTHER. IN THE TOWN, BUY NECESSARY SOMETHING THAT GOES UP ON TOWN PROPERTY. I JUST BE RIGHT AWAY. APPEASEMENT AND STUFF. YEAH WHAT I'LL SAY ABOUT THAT IS IT'S NOT REALLY GERMANE TO OBVIOUSLY THIS ITEM TONIGHT, SO WE CAN'T REALLY GIVE AN UPDATE ON THAT. BUT IT IS A. I THINK. A CONSENT GOAL OF THIS COUNCIL TO SEE THE SERVICES THAT ARE RESIDENTS WANT. IN PARTICULAR ADVANCING BROADBAND IN CERTAIN PARTS OF THE TOWN THAT DON'T HAVE IT IN ANY WAY WE CAN AS WELL AS CELL SERVICE. AND SO WE'VE TAKEN THAT SORT OF CONSENSUS IF YOU WILL, AND TRY TO ENCOURAGE AND OTHERWISE UTILIZE OUR ASSETS, PARTICULARLY THE WATER TOWER TO GET STARTED, AND SO THIS OBVIOUSLY IS NOT A TYPICAL LEASE AS MR CORN SAID. AND SO THAT IS THE THING WE HAVE TO DECIDE AS A TOWN. DOES IT DOES THE VALUE OF IT. I MEAN, THE MONEY IS IRRELEVANT BECAUSE I MEAN, IT'S SMALL ENOUGH THAT IT REALLY IS A ROUNDING ERROR HERE. UM THE POINT IS DO WE WANT TO START WITH SOMETHING OR DO WE WANT TO HOLD OUT AND JUST HOLD EACH YOU KNOW FOR THE MAXIMUM AMOUNT WE CAN GET IS THE UTILITY OF IT VALUABLE AT THIS POINT, AND THAT'S WHERE I'M KIND OF CURIOUS FOR THOSE OF YOU THAT DO USE NEXT LINK. THINGS LIKE THE CAPACITY AND IT DOESN'T HAVE ISSUES WITH DURING STORMS AND DOES THE PROXIMITY WITH DOES THAT GIVE SOME SORT OF RESILIENCE? I MEAN ANYTHING THAT COULD WAY AND THAT WOULD HELP US. BETTER UNDERSTAND IF THIS HOW MUCH COMMUNITY SERVICE THIS IS GOING TO LEND. WOULD BE HELPFUL IN MAKING THIS DECISION.

YEAH AND THEIR SERVICE HAS BEEN BETTER THAN AVERAGE. UM, FOR ME PERSONALLY. BUT THERE IS WITH THE GROWTH AND STARDUST WITH THE GROCERY PRAYER VIEW CREEK MEDALS . THEY'RE DEFINITELY STRETCHED OUT. WE'RE KIND OF THE DISTANCE TO PONDER TOWER AND JUSTIN TOWERS ARE RIGHT AT THE EDGE OF SERVICE. FOR MOST OF OUR RESIDENTS, HAVING SOMETHING NEARBY WOULD DEFINITELY HELP DISTRIBUTE THAT LOAD. AND I'M FINE WITH THE RATE BECAUSE ALL THEY'RE GOING TO DO IS IF WE CHARGE A HARD RIGHT. THEY'RE GONNA PASS THAT ON TO THEIR CUSTOMERS, WHICH ARE OUR CITIZENS, SO I THINK IF WE KEEP THE RIGHT LOW, THEN WATCH THEIR SERVICE AND MAKE SURE THAT YOU KNOW THEY'RE PROVIDING. GOOD SERVICE TO OUR CITIZENS, AND WE KEEP IT AT THAT. DON'T HAVE A PROBLEM WITH THAT. AND I THINK THE TOWN DOES GET A FREE CONNECTION OUT OF THIS. SO GOOD BACKUP LINK IF SOMETHING GOES DOWN HERE. OKAY THAT'S THAT'S THAT'S GOOD TO HEAR. UM YOU KNOW, I DID. LOOK AT THE TERMINATION CLAUSE. THINK IT'S 60 DAYS AND THEY HAVE 90 DAYS TO GET IT DOWN. UM SO THERE'S A LITTLE BIT OF TIME THERE, BUT I THINK GIVEN IF WE HAVE ANYBODY COME THAT'S GOING TO FILL UP OUR TOWER. I THINK THAT GIVES US ROOM TO SAY, OKAY, YOU KNOW, RENEGOTIATE THIS AT THIS TIME, BUT WITH NOTHING UP THERE AND NOTHING SEEMINGLY ON THE HORIZON. I THINK WE HAVE TO WORK WITH WHAT WE'VE GOT. IN TERMS OF POSSIBILITY, AND FROM WHAT I SAW THE NEGOTIATIONS THAT LOOK LIKE THIS IS PROBABLY ABOUT AS GOOD AS WE'RE GOING TO GET QUICK QUESTION FOR ANYONE WHO MIGHT KNOW THE ANSWER TO THIS IS THAT WOULD INCREASING THE NUMBER OF,

[01:20:01]

THEY CAN ONLY REALLY TO DO IT. THEY'VE GOT TO ACTUALLY HAVE THEM ON FOUR SIDES AND THEY, UH THEY GO OUT. THEY DON'T GO DOWN AND SO UM, AND ANOTHER THING I'VE LEARNED IS IF THEY SO COMPANY HAS A TOWER. THEY WILL NOT LET IT GO. AND SO I MEAN, THERE MIGHT BE A WAY TO SAY HEY , WILL YOU TAKING AND KIND OF AN INFERIOR STRUCTURE AND GET RID OF ONE OF YOUR YOU KNOW YOU'RE BETTER STRUCTURE THAN JUST LIKE A COMPLETE CIRCLE. SO KNOWING THOSE TWO THINGS, IT'S NOT LIKELY, BUT IT'S SOMETHING THAT WE CAN. WE COULD ASK, BUT LITTLE . IT'S KIND OF LIKE, UH, A GAS.

WELL THEY'RE NOT GOING TO LET THAT GO. AND YOU'RE PROBABLY FAMILIAR WITH HOW THAT WORKS, TOO. YEAH. I ONLY SEE ONE REAL CHALLENGE WITH THIS AND IT'S AT THIS PRICE POINT. UM DOES A TRIP US UP WITH WITH FUTURE LEASES, WHICH I DON'T THINK SO I THINK THE MARKET IS THE MARKET. I DON'T THINK WE'D BE EVEN CONSIDERING THIS AS A PROVIDER IF THEY WEREN'T ALREADY SIGNIFICANT PROVIDER IN THE TOWN FOR OUR RURAL AREA. I'VE HEARD A LOT OF PEOPLE USING THE SERVICE . OBVIOUSLY A COUPLE OF HERE AS WELL. UM AND YOU KNOW IF WE COULD GET SOME GET SOME OF THE OTHER PROVIDERS UP THERE, THEN THAT'S THAT'S THE GOAL IS REALLY TO START IT. I THINK BACK TO MY POINT IS THE ONLY CHALLENGE HERE IS THE PRICE POINT. IT DOESN'T SET A PRECEDENT OR DO WE DO WE BE ABLE TO TAKE CARE OF THE MARK OR TAKE ADVANTAGE OF THE MARKET LATER IF THE LEASE PRICES ARE HIGHER? I MEAN, IT IS A PRESIDENT. I DON'T THINK IT'S NECESSARILY SETS IT. YOU GUYS CAN NEGOTIATE EACH ONE INDIVIDUALLY. THAT'S THE REASON I WANTED THIS PUBLIC DISCUSSION TO TALK ABOUT THE COMMUNITY BENEFIT. TALK ABOUT THE CHALLENGES AND WE CAN I CAN POINT BACK TO THIS MEETING AND THESE MINUTES AND TELL THEM THAT KNOW THIS? TWO DIFFERENT SITUATION. NOW THAT WAS A SPECIAL CASE THAT WAS KIND OF A PIONEER. ONE OF THE INITIAL ONES SO, UH AND WE'VE TALKED. I'VE TALKED TO ASHLEY ABOUT THIS AS WELL. WE'RE NOT EACH ONE IS UNIQUE. AND IN ROANOKE, WHERE I GOT SOME OF THE DATA AND GOT SOME OF THE KIND OF THE MARKET PRICES I MEAN, THEY JUST THEY GO UP. EVERY NEW PERSON GOES UP HIGHER THAN THE ONE BEFORE.

HOPEFULLY THE NEXT ONE WILL BE MUCH HIGHER THAN THIS ONE. BUT IT DOESN'T IT DOESN'T SET A LEGAL PRECEDENT BY ANY MEANS OR CONTRACTUAL PRESIDENT. AND ALSO IF YOU IF YOU KNOW ANYTHING ABOUT COMMERCIAL REAL ESTATE IN TERMS OF LEASING SPACE, IS NORMALLY THE FIRST PERSON TO LISA'S FACE IN A STRIP CENTER OR MALL OR SOMETHING GETS THE BETTER DEAL. THEREFORE, THE FIRST ADOPTER AND SO IF THERE ARE THE FIRST ADOPTER ON OUR WATER TOWER I THINK THAT'S EASILY DEFENSIBLE. YEAH KNOWING HOW MUCH IT WAS PULLING TEETH TO GET TO THIS POINT, WHICH I APPRECIATE ALL THE EXTRA EFFORT , WHICH BY THE WAY, IS THIS ONE? I'M NOT QUITE SURE IS REALLY WITHIN OUR PRIMARY SCOPE OF RESPONSIBILITY, BUT OUR STAFF STRETCHING THEMSELVES A LITTLE BIT TO ACCOMMODATE AND TRY TO. OBVIOUSLY THEY NEEDED TO DO SOME OF IT BECAUSE IT'S OUR WATER TOWER. BUT YOU KNOW, HIGH SPEED INTERNET IS NOT REALLY ONE OF OUR UTILITIES, BUT ORGANIZING IN SUCH A WAY THAT WE'RE DRIVING VALUE FOR OUR COMMUNITY. IS PART OF OUR CHARTER. AND SO I THINK THIS WAS I THINK I THINK THEY SQUEEZE THIS THING AS HARD AS THEY COULD TO TRY TO GET A DEAL TO THE TABLE, AND IT WAS PRETTY PAINFUL. AND SO I'M VERY PLEASED THAT WE'RE AT THIS POINT AND I DON'T HAVE ANY PROBLEM WITH IT. SO UM, YOU KNOW, I DON'T WANT TO DRAW OUT THE CONVERSATION FOREVER HERE, BUT I WANTED TO HAVE ENOUGH OF THIS CONVERSATION THAT WE GOT IT ON THE RECORD. SO I'M OPEN TO WHATEVER YOU WANT TO DO WITH THIS COUNSELORS. NO. YOU WANT TO SECOND THAT COUNSELOR GAINS. ALRIGHT THERE WE GO. WE HAVE A MOTION TO APPROVE FORMALLY FROM MAYOR PRO TEM SECONDED BY COUNCILOR GANZ ON THE RECORD, SO WE'LL OPEN THE VOTING UNLESS THERE'S ANY FINAL COMMENTS. HEARING NONE. ALL RIGHT. WELCOME TO WITH LAKE WATER TOWER NEXT LINK. OKAY? THANK YOU, SIR. APPRECIATE IT. ALRIGHT RESOLUTION, 22-20 AUTHORIZED TALENT MANAGER AND

[5.K. Consider Resolution 22-20, approving and authorizing the Town Manager to enter into an agreement with Neel Schaffer for the design and project management of the North 0.6 MG Ground Storage Tank and Pump in an amount not to exceed $233,330]

[01:25:04]

DO YOU THINK? HOW LONG IT TAKE YOU TO DESIGN IT, DEREK. OKAY OVER THE WINTER, HOPEFULLY HAVE IT BY MAY. THAT WORK FOR YOU, ERIC. YOU WILL GET THAT TANK ON BY THE SUMMER. OKAY SO HOPEFULLY 13 MONTHS. ALRIGHT, SO THAT'S A TANK. UM DID I READ CORRECTLY? I WAS TRYING TO REMEMBER THAT THERE'S A DIFFERENT PROJECT. THERE'S SOME UPGRADES TO THE PUMP STATION AS WELL. YES SIR.

HE WE'LL PUT A LARGER PUMP. WHAT WAS THE PUMPING CAPACITY ON THAT? WE HAVE A WE HAVE 12.

SMALLER POP NO LONG. WHAT ARE YOU GOING TO UPGRADE IT TO? OKAY. YOU HAVE A 75, RIGHT? 7 50 50 50 50. OKAY, ALRIGHT. OKAY GOOD. GOOD. ANYTHING ELSE WE SHOULD KNOW ABOUT TANK CONSTRUCTION THAT WOULD BE USEFUL. IT'S REALLY COOL, AND THAT LITTLE CAR GOES AROUND AND SPRAYS CONCRETE ON THE TANK. THAT IS COOL. MY OFFICE WAS OUTSIDE OF THAT FIRST ONE, AND IT WAS MESMERIZING. YEAH. I SHOULD HAVE DONE ONE OF THOSE YOUTUBE RELAXATION VIDEOS. MHM.

IF ANY OF THE COUNSELORS WANNA VOLUNTEER TO DO THE DUNK TANK OUT THERE WITH THE WITH THE SUIT ON JUST POURING. NO, THAT'S VERY HIGH, SPECIALIZED PROCESS. A LOT OF CHLORINE INVOLVED. OKAY? ALL RIGHT, UH, I'VE ASKED A FEW QUESTIONS JUST TO PUT THIS ON THE RECORD COUNSELORS BEGIN ANY QUESTIONS ABOUT THIS PROJECT. ALRIGHT, LET'S GET HARVEST SOME WATER THEN, UM. THIS WILL SERVE THE WHOLE NORTH PRESSURE PLANE. MHM YEAH. ALRIGHT, SO I'LL MAKE A MOTION. MR PUTIN. MONTINI SECONDS. ANY FURTHER DISCUSSION , SEEING NONE. OPEN THE VOTING, PLEASE. ALL RIGHT. VERY GOOD.

UM, S SENDS THE ONE ABSENCE. ALL RIGHT. THIS ONE'S FUN RESOLUTION . 22-21 WE'RE LOOKING AT A NEW

[5.L. Consider Resolution 22-21, approving a Unified Sign Development Plan for Chadwick Commons Phases 1 & 2, a mixed-use development consisting of 249 apartments, a 17,400 square-foot commercial building, and another 17,400 square-foot building proposed to be built on 24.638 acres situated in the L. Medlin Survey, Abstract No. 830, generally located south of State Highway 114 (SH 114) approximately 1,000feet east of Interstate Highway 35W (IH 35W), and zoned Mixed-Use Planned Development (MPD). Chadwick Farms Ltd, Chadwick Retail Ltd, and Chadwick Apartments Phase II Ltd are the owners. Signs Manufacturing Corporation is the applicant. Case # USDP-22-001]

[01:30:01]

THEY COME HERE, BUT WE'LL TAKE IT IF YOU OFFER IT UP FOR NOW. SO IT'S BASICALLY THE. KIND OF SEE THE BIGGEST TENANTS AND DRIVE TRAFFIC THERE AND THEY'LL FIND OUT WHO ELSE IS. HOW MANY DO WE HAVE TOTAL? HOW MANY UNITS DO WE HAVE TOTAL IN THE FIRST BUILDING. UH, I THINK THERE'S JUST ONE MORE SPACE LEFT IN THAT FIRST BUILDING THAT INCLUDES EVERYBODY. THEY'RE SHOWING ON THERE, SO THERE'S WOULD BE 17. IT'S TOTAL THE FIRST BUILDING. OKAY? AND SO THE BOTTOM TWO OF EACH BUILDING WITH GOING TO GET BUMPED OFF AS FAR AS SIZE. YES, AND THE OTHER BUILDING COULD HAVE MORE ATTENDANTS DEPENDING ON HOW LARGE IS THE SPACES ARE OKAY, IS THAT TYPICAL? YES, OKAY. AND THIS THIS VERTICAL THAT GOES NEXT TO IT IS THAT DESIGN GOING TO BE STABLE AND EVERYTHING. SIDE VIEW SIDE VIEW WAS GOING TO SAY IS KIND OF, UH OH. ALRIGHT, I'M GLAD I ASKED THAT QUESTION. NO AND THE OTHER REASON THAT YOU DON'T INCLUDE EVERY SINGLE TENANT ON THERE IS IT'LL GET TO WHERE IT'S SO BUSY . THAT KIND OF HAVE YOU SEEN THE ONE ITS EFFECTIVENESS IN ROANOKE AT 1 14 AND 3 77. REMEMBER YES. THE 1 51 GOFFI. YES, SIR. IT'S VERY BUSY, VERY BUSY.

COUNSELORS. WHAT DO YOU THINK OF THIS? OUR DESIGNER. YOU GOT ANY I'M KIND OF CURIOUS. IS IT ALL RIGHT? OKAY, UM IT'S UM. IT'S NOT WHAT I WOULD CONSIDER HIGH END DESIGN. IT IS A NICE, SIMPLE APPROACH TO SIGNAGE. UM, BUT I'VE SEEN MORE BEAUTIFUL SIGNS. BUT UM, LIKE I SAID, IT IS VERY SIMPLE. IT'S ONE OF THE GOOD THINGS YOU DID IS YOU TOOK THE INFORMATION OFF THE GROUND, BECAUSE WHAT I SEE IN SIGNAGE THESE DAYS AS I C S SON, AND THEN I SEE THE FOLIAGE IN FRONT OF IT, BLOCKING ALL OF THE LETTERS AND THE NAMES OF THE BUILDINGS AND STUFF WITH THE NAMES OF THE TENANTS. AND SO THAT'S ONE GOOD FEATURE. THAT'S WHAT FIVE FT OFF THE GROUND

[01:35:04]

UNLESS IS THERE ANYTHING THAT YOU THINK WE MIGHT COME OUT OF EXECUTIVE SESSIONS WITH MR CORN? I DON'T SEE ANYTHING. NO SIR. OKAY ALRIGHT. SO WHILE WE RESERVE THE RIGHT TO DO SO,

[6. EXECUTIVE SESSION]