[1. CALL TO ORDER] [00:00:02] GET TO THE GROCERY STORE TESTING GREAT WORK. ALRIGHT IT IS 5 30 PM FEBRUARY 9TH 2023. THIS IS THE NORTH LAKE TOWN COUNCIL MEETING. WE HAVE A FOLK QUORUM. TONIGHT ALL COUNSELORS ARE PRESENT. LET'S GET STARTED AND GET THIS MEETING MOVING TONIGHT . WE HAVE PASTOR BURROWS HERE. IF YOU WANT TO COME UP AND INTRODUCE YOURSELF YOUR MINISTRY AND OPENINGS IN PRAYER PLACE. SURE THANK YOU. THANKS FOR HAVING ME. I'M DUSTY BURRESS ON THE PASTOR OF NORTHLAKE BIBLE CHURCH, WHICH MEETS HERE IN HARVESTED LANSTON. ELEMENTARY SCHOOL. AND WE HAVE LAND DOWN 407 THAT WE'RE WILLING HOPE TO BUILD ON IT SOME POINT. THANKS FOR HAVING ME. LET'S PRAY. LORD GOD, WE ARE SO GRATEFUL FOR YOUR GOODNESS AND YOUR KINDNESS AND WE RECOGNIZE THAT YOU ARE THE GOD OF INFINITE WISDOM AND WE ARE FINITE AND OUR WISDOM IS LIMITED. AND SO HE ASKED FOR YOUR HELP FOR EACH OF THOSE WHO ARE HERE TONIGHT YOU HAVE THE POWER TO MAKE DECISIONS THAT SHOULD GIVE THEM WISDOM TO MAKE WISE DECISIONS THAT WOULD HONOR YOU THAT WOULD BE IN THE BEST INTEREST OF THE CITIZENS OF THIS TOWN. GIVE THEM A SENSE OF UNITY AND EVEN FRIENDSHIP TOGETHER AS THEY DISCUSSED THESE IMPORTANT MATTERS OF BUSINESS, AND MOST OF ALL, WE THANK YOU FOR YOUR PRECIOUS SON AND FOR HIS SACRIFICE ON THE CROSS, IN CHRIST'S NAME, WE PRAY. AMEN IF YOU ARE ABLE, PLEASE STAND FOR THE PLEDGE IS. ONE NATION. HONOR AGENCY, TEXAS SAY ONE. I'M IN TEARS. IT'S OUR TRADITION TO RECOGNIZE OUR EMPLOYEES WHEN THEY REACH A [2.A. Presentation - Employee Service Awards] SERVICE MILESTONE, AND WE HAVE THREE TONIGHT THAT WE PLAN TO RECOGNIZE. UM CURTIS CAMPBELL, LISA PRAY AND TARA WILSON. ALL THREE OF THEM STARTED RIGHT ABOUT THE TIME THAT I STARTED COMING TO COUNCIL MEETINGS, AND SO IT'S BEEN NEED TO SEE THEM GROW IN THEIR SERVICE TO THE TOWN. MR CORN DO WE HAVE THE DEPARTMENT HEADS ARE GONNA SAY IF YOU WORDS ABOUT EACH OF THESE TONIGHT OR BELIEVE ROBERT IS IN, ERIC MAY SAY, A FEW WORDS TO AND WE HAVE TERROR REQUESTED NO PICTURES. SO THAT'S WHY WE DON'T HAVE ANY PICTURES OF HER SO I DON'T WANT TO. I DON'T WANT TO ANYBODY TO GET MAD AT ME. SO OKAY. ALRIGHT, FORWARD CHIEF. CURTIS AND LISA DIDN'T GET THAT. RIGHT. SO THESE ARE TWO OF MY BEST OFFICERS. BUT I CAN SAY THAT ABOUT ANY OF OUR OFFICERS BECAUSE THEY'RE ALL REALLY, REALLY GOOD AT WHAT THEY DO. UM SO FIRST READ OFF A LITTLE BIO ON CURTIS CAMPBELL. OFFICER CURTIS CAMPBELL WAS HIRED BY THE NORTH LAKE POLICE DEPARTMENT ON FEBRUARY 13TH 2018. 10 OF THE 188 TARRANT COUNTY POLICE ACADEMY, WHERE HE RECEIVED MANY AWARDS FOR HIS ACADEMIC ACHIEVEMENTS. OFFICER CAME UP, GRADUATED THE ACADEMY ON AUGUST 3RD AND BECAME A TEXAS SWORN PEACE OFFICER. AT THAT TIME, CAMPBELL HOLDS A BACHELOR'S DEGREE IN COMMUNICATION FROM NORTHERN ARIZONA UNIVERSITY ALSO HOLDS AN INTERMEDIATE PEACE OFFICER LICENSE AS WELL AS ONE OF OUR BASIC INSTRUCTORS OF FIREARMS INSTRUCTOR FIELD TRAINING OFFICER AND AFTER TOMORROW AND INTERMEDIATE ACCIDENT INVESTIGATOR HIS CURRENTLY ASSIGNED TO THE AS A TRAFFIC OFFICER HAS OVER 4000 HOURS OF TRAINING. SO DO WE WANT TO? DO THE NEXT 12 AND THE PICTURES SEPARATELY TOGETHER. OKAY, WHAT'S DOING THE GUEST SINCE THEY'RE LIKE THE BEST OF FRIENDS BACK THERE, SO LISA PEREA, AFTER LISA PRAY, WAS HIRED BY THE NORTH LAKE POLICE DEPARTMENT ON FEBRUARY 13TH AS WELL. THEY WENT TO THE ACADEMY TOGETHER, ALSO GRADUATING. THE 108 TARRANT COUNTY COLLEGE POLICE ACADEMY. AND BECAME A SWORN PEACE OFFICER ON AUGUST 3RD AS WELL OFFICER PRAISE A FIELD TRAINING OFFICER. MENTAL HEALTH PEACE OFFICER SERVED IN CRIMINALS INVESTIGATIONS. THAT WAS OUR FIRST FEMALE DETECTIVE, AND IT WAS OUR FIRST FEMALE OFFICER IN THE HISTORY OF THE FULL TIME FEMALE OFFICER IN THE HISTORY OF DEPARTMENT. OVERALL OFFICER PRAYER CURRENTLY SERVES IN THE PROFESSIONAL STANDARDS DIVISION, WHERE SHE OVERSEES RECRUITING, HIRING, TRAINING INTERNAL AFFAIRS ASSISTANCE, POLICE ACADEMY. IT'S THE C P A LIAISON AND SERVES ON THE EXECUTIVE BOARD OF AS PLANNING COMMITTEE CHAIR FOR THE WOMEN OF LAW ENFORCEMENT CONFERENCE WITH OVER 5500 ATTENDEES ANNUALLY, AND SHE TOLD ME TODAY THAT THEY'RE GOING TO FIVE DAYS NEXT YEAR HAVE THREE DAY CONFERENCE SO BUT BOTH OF THEM DO AN EXCELLENT JOB. THEY'VE BOTH TAKEN ON MANY ROLES, AND I'M VERY PROUD TO HAVE THEM HERE FOR FIVE YEARS AND HOPEFULLY KEEP THEM FOR A LITTLE BIT LONGER, SO I AGREE. COME ON DOWN. IF YOU WOULD PLEASE, LET'S GIVE THEM A ROUND OF APPLAUSE. THANK YOU. INDICATOR BY A READY THREE THERE YOU GO. YES. [00:05:20] ONTARIO HAS BEEN WITH THE PUBLIC WORKS DEPARTMENT SINCE, UH, JANUARY 9TH 2018. SHE HAD A LITTLE HEADS UP ON KIND OF WHAT WE DO. BOTH OUR PARENTS HAVE BEEN LOCAL GOVERNMENT FOR CLOSE TO 30 YEARS, AND SHE HAD A GOOD HEADS UP ON WHAT WE DO, BUT SHE'S BEEN A GREAT ASSET WITH, UH, THE DEPARTMENT ORGANIZATIONAL SKILLS OR GREAT. UM KEEPING UP WITH THE DAILY WORK SINCE OUR DEPARTMENT'S BEEN GROWING SO MUCH JUST IN THE LAST FIVE YEARS SHE'S BEEN UH, GROWING AS ALL OUR, UH UM WORK HAS BEEN GOING ALSO BUILDING PROCESS. SHE DOES ALL THE GUYS UM TRACKING OF THEIR OCCUPATIONAL LICENSING, SETTING UP THEIR CLASSES FOR THEM, MAKING SURE THEY'RE COMPLETING THEIR RENEWAL HOURS ON TIME. UM SO SHE'S BEEN. SHE'S BEEN A GREAT HELP TO, UH, DEPARTMENT. WE REALLY APPRECIATE EVERYTHING THAT SHE DOES ON A DAILY BASIS. DON'T GET UP BACK HERE. OKAY? ALL RIGHT. THANK YOU. SO MUCH FOR ALLOWING US TAKE THE TIME TO RECOGNIZE OUR STAFF. WE APPRECIATE THEM SO MUCH. ALL OF OUR STAFF, HOWEVER LONG THEY'RE HERE, BUT WE DO LOVE IT WHEN THEY STICK AROUND FOR A WHILE THEY LEARN OUR TOWN. THEY LEARN OUR PEOPLE, AND I THINK IT JUST MAKES FOR MUCH BETTER CUSTOMER [2.B. Briefing - Hillwood Industrial Park Concept Plan] SERVICE. SO APPRECIATE ALL OF THEM. ALRIGHT LET'S GET STARTED WITH THE OUR PRESENTATIONS AND BRIEFINGS TONIGHT. FIRST ONE UP TONIGHT IS A BIG ONE IMPORTANT ONE FOR OUR TOWN. THIS IS THE HILLWOOD INDUSTRIAL PARK CONCEPT PLAN. THIS IS OUR ITEM B BRIEFING. SO, MR CORN YOU WANT TO START US OFF, PLEASE? YES, VERY BRIEFLY. THIS IS KIND OF THE FIRST PUBLIC ANNOUNCEMENT OF THIS PROJECT. AND WHO WOULD IS HERE? WE'RE GOING TO TALK ABOUT KIND OF BIG PICTURE STUFF. I'M GOING TO HAND IT OVER TO KIMBERLY COLE WITH HILLWOOD DEVELOPMENT. BUT THIS IS THE PROJECT WE'VE BEEN TALKING ABOUT , UM, ALMOST 10 MILLION SQUARE FEET OF INDUSTRIAL SPACE. IT IS THE AREA. IT KIND OF IN OUR SOUTHWEST CORNER AT 1 56 AND VICTORY CIRCLE. THERE ARE A NUMBER OF NEEDS THERE THE TOWN HAS FOR INFRASTRUCTURE AND THIS IT'S AREA CURRENTLY OF MAJORITY OF THE AREAS IN OUR E T. J AND SOME OF THE THINGS WE'RE DISCUSSING AND NEGOTIATING WITH HILLWOOD OR SOME SOME INCENTIVES TO HELP. BUILD OUR INFRASTRUCTURE AND REIMBURSE THEM FOR THIS INFRASTRUCTURE. BUT BEFORE WE GET INTO INTO ANY OF THAT, THEY WANT TO TALK ABOUT HILLWOOD AND TALK ABOUT THIS PROJECT IN PARTICULAR, AND OF COURSE, THEY WERE AT NORTHPORT AND TALK ABOUT THE SUCCESS OF THAT SO HERE'S THE CLICKER, AND I'LL HAVE KIMBERLY COME UP. AS SHE'S COMING. THIS IS A STRATEGIC PARTNERSHIP THAT IS AN EXTENSION OF THE CATHOLIC BRANCH INDUSTRIAL PARK THAT WE'RE BUILDING AND THE INFRASTRUCTURE THAT WE'VE BEEN PUTTING IN THE GROUND ALL THE WAY TO ACROSS 1 56 FROM A SEWER LINE PLANNING STANDPOINT, WATER COMING UP FROM FROM FORT WORTH? THE ALLIANCE AIRPORT. WE'VE PUT A LOT OF PROJECTS HAVE BEEN COMMITTED TO COME, AND WE'RE WORKING VERY HARD TO MAKE SURE THAT ALL OF THE PROPERTY IN THE MIDDLE DEVELOP SO THAT WE CAN PAY FOR IT ALL. SO THIS IS ALL COMING VERY FAST, AND THAT WHOLE AREA IS DEVELOPING VERY FAST, BUT IT'S CRITICAL TO THE FUTURE OF OUR TOWN. THAT THIS ALL GETS CAPTURED INTO THE TOWN LIMITS AND THEN IT TURNS INTO PROFIT CENTERS FOR US TO BE ABLE TO PAY FOR THE INFRASTRUCTURE AND, OF COURSE, PROVIDES SERVICES FOR THE REGION. SO WITH THAT, UM, BACKDROP FROM THE TOWN STANDPOINT, I WOULD TELL YOU TELL US ABOUT YOUR PROJECT. RIGHT? THANK YOU ALL. THANK YOU VERY MUCH FOR THE OPPORTUNITY TO TALK TO YOU A LITTLE BIT ABOUT WHAT WE'RE PLANNING HERE IN NORTH LAKE. MINE AS BEFORE. MY NAME IS KIMBERLY COLIN, THE VICE PRESIDENT DEVELOPMENT WHO WOULD PROPERTIES. OKAY, OKAY. UM UH, ONE OF THE BIG THINGS I WANT TO HIT ON AS PART OF OUR DEVELOPMENT PROGRAM. WE WANT TO TELL YOU A LITTLE BIT ABOUT WHO WE ARE. UM CRITICAL MARKET DRIVERS AND THEN TALK A LITTLE BIT ABOUT MORE IN DEPTH ABOUT THE PROJECT. HILLWOOD DEVELOPMENT COMPANY WAS FOUNDED AND HAS A STORIED HISTORY WERE FOUNDED IN 1988 HERE IN NORTH TEXAS. UM WE'VE LEVERAGED THAT GROWTH INTO NATIONAL AND EVEN INTERNATIONAL MARKETS WITH OUR REAL ESTATE DEVELOPMENT PROGRAM. UM. AS I NOTED EARLIER AND PART [00:10:05] OF THE WHO WOULD PROPERTIES DIVISION ALLIANCE. TEXAS IS OUR MAIN PRIMARY FOCUS. EVERYTHING THAT YOU SEE COLORED ON THIS MAP IS WHAT WE CONSIDER ALLIANCE TEXAS THE GREEN AND THE BLUE PIECES ARE THE ONES THAT THE PROPERTIES DIVISIONS HAS MAIN CONTROL OVER AND ALL THE ORANGE IS OUR SINGLE FAMILY, HILLWOOD COMMUNITIES DIVISION. UM. ALLIANCE IS A 27,000 ACRE. MIXED USE DEVELOPMENT. UM IT SPANS ALL THE REAL ESTATE CLASSES. THE NAME OF NOT ALLIANCE ITSELF WAS FOUNDED ON A PUBLIC PRIVATE PARTNERSHIP. AND WE BELIEVE THAT THAT SUCCESS IS ROOTED IN THAT DEEPLY IN THAT PARTNERSHIP. UM OVER THE COURSE OF 30 YEARS. WE'VE AMASSED 55 MILLION SQUARE FEET. GENERATED OVER 111 BILLION IN ECONOMIC IMPACT AGAINST A $14 BILLION PRIVATE INVESTMENT. ONE OF THE REASONS WE FEEL LIKE WE'RE SUCCESSFUL, THERE'S SEVERAL ACTION FACTORS WE FEEL LIKE WE'RE SUCCESSFUL. UM OR TENANTS. THESE TENANTS THAT WE SHOW UP HERE. ALL OF THEM. WE'VE BEEN ABLE TO ATTRACT SOME OF THESE VERY RECOGNIZABLE GLOBAL BRANDS ACROSS ALL ALL DIFFERENT TYPES OF ASSET CLASSES. UM. PRIMARILY WE FEEL IT STARTED WITH OUR ABILITY TO CREATE QUALITY ENVIRONMENT, EQUALITY, DEVELOPMENT QUALITY INFRASTRUCTURE. AND THEN PROTECTING THAT QUALITY THROUGH OUR BUILDING STANDARDS. SOME OF THESE TENANTS HAVE ALSO FOLLOWED US INTO OTHER MARKETS. WE'VE LEVERAGED OUR RELATIONSHIPS TO LISTEN TO OUR CUSTOMERS. UH, RESPOND TO THEIR NEEDS. AND WITH THAT WE'VE GAINED THEIR TRUST. THE OTHER FACTOR. WE FEEL THAT WE'RE SUCCESSFUL IN HIS OUR LOCATION. BNSF INTERMODAL FACILITY. IS ONE OF THE LARGEST IN THE NATION. IT RIVALS THE L. A LONG BEACH, COMPLETING OVER A MILLION LIFTS A YEAR. WITH AN ABILITY TO SPAN UP TO TWO MILLION. THEIR ABILITY TO EXPAND. THIS FACILITY IS CRITICAL TO THE GROWING NEEDS OF THE NORTH TEXAS ECONOMY. IT'S EASY TO SEE WHY ALLIANCE IS CONSIDERED TO BE ONE OF THE PREMIER LOGISTICS HUB WITH OUR ACCESS TO AIR RAIL AND TRANSPORTATION TO THE INTERSTATE PROGRAM. ANOTHER SUCCESS FACTOR FOR US IS OUR ABILITY TO INNOVATE. WE CONTINUE TO INNOVATE THROUGH OUR PARTNERSHIPS. AND THROUGH OUR MOBILITY INNOVATION ZONE. WE'VE DEVELOPED STRONG RELATIONSHIPS WITH AIR AND SURFACE MOBILITY COMPANIES, MANY OF THOSE PARTNERS WHO HAVE OPERATED OUT OF THE FLIGHT TEST CENTER HERE IN NORTH LAKE AND HAVE CHOSEN TO BRING THEIR COMPANIES TO ALLIANCE. WHEN YOU MIGHT RECALL THE SIT HERE IS WING. THEY ARE A LAST MILE DELIVERY. UH, PACKAGE DELIVERY SOLUTION. THAT WAS BORN HERE OUT OF ALLIANCE. I TALKED A LOT ABOUT OF OUR ALLIANCE PROGRAM. BUT I WANT TO TALK A LITTLE BIT MORE ABOUT NORTHPORT. AND THEIR SUCCESS THAT WE ALL HAVE SEEN UP THERE. THIS IS AN AERIAL PHOTO. TAKEN IN 2018. YOU'LL SEE. THERE'S ABOUT 260 ACRES. NORTH OF 1 14 THAT'S UNDEVELOPED. TODAY. THIS IS WHAT IT LOOKS LIKE. FIVE YEARS LATER , WE HAVE STABILIZED 2.6 MILLION SQUARE FEET. ACROSS FIVE BUILDINGS. WE'VE INCREASED THE RESIDENTIAL TAX BASE. AND WE'VE LEVERAGED THAT PARTNERSHIP THAT WE CREATED TO ADVANCE DEVELOPMENT AND ADJACENT AND SURROUNDING AREAS. WE BELIEVE WE HAVE ANOTHER GREAT PARTNERSHIP IN FRONT OF US. THIS PROJECT WE'RE PROPOSING IS 855 ACRES. AS DREW MENTIONED. IT STRETCHES ALL THE WAY FROM DELL EARNHARDT UP TO 11 71. OUR GOALS ARE TO INCORPORATE THIS PROPERTY INTO THE TOWN. BOTH OF THE NON RESIDENTIAL TAX BASE. AN ADVANCED DEVELOPMENT IN THE SOUTHWEST AREA OF TOWN. THERE'S A LOT OF INFRASTRUCTURE THE TOWN'S ALREADY BEEN WORKING ON. I THINK THERE'S TWO HERE THAT ARE REALLY CRITICAL HIT ON ONE IS THE ADVANCEMENT OF THE WHOLESALE AGREEMENT. WITH FORT WORTH AND THE COMMITMENT TO DEVELOPING THAT OFF SITE INFRASTRUCTURE. THE OTHER IS THE CATHERINE BRANCH, WHICH EXTENDS ALL THE WAY PAST 1 56. WITHOUT THE TOWN COUNCIL'S LEADERSHIP. INSTEAD LEADERSHIP OF STAFF. THIS DEVELOPMENT WOULD BE EVEN MORE DIFFICULT TO ACHIEVE. WE HAVE A LOT OF INFRASTRUCTURE TO BUILD. WE'RE BASICALLY BUILDING OUT THE ENTIRE SOUTHWEST QUADRANT OF THE TOWN. WHETHER IT BE THE ROADWAY EXTENSIONS. THE WATER EXTENSIONS, WHICH ARE UPWARDS OF SEVEN MILES OF WATER. THE PUMPING STATION THAT WE'RE BUILDING TO HELP NOT ONLY BOLSTER THE DEVELOPMENTS PRESSURE BUT ALSO THE PRESSURE OF THE SURROUNDING PROPERTIES. AND ONE OF THE THINGS I THINK THAT GOES ON NOTICES THAT CONTINUED PARTNERSHIP. AND [00:15:04] DEDICATION OF OFFSITE EASEMENTS THAT WE'RE PROPOSING BOTH WITHIN THE PROPERTY IN OFF OFF SITE THROUGH VARIOUS PROPERTIES WE OWN I THINK I RETALIATED UP TO ABOUT FIVE MILES LITTLE OVER 5.5 MILES. SO I'LL CLOSE THE PRESENTATION WITH THIS. WE'RE HERE TO DEVELOP A CLASS A REAL ESTATE ASSET. THEY CAN CREATE LONG TERM VALUE. WE WANT TO HELP THE TOWN ACHIEVE THEIR GOALS BY DRIVING THEIR NON RESIDENTIAL TAX BASE FOR THE TOWN AND INCORPORATE THE PROPERTY IN THE TOWN OF NORTH LAKE. WE HAVE PROPOSED A PUBLIC PRIVATE PARTNERSHIP. FOR YOUR CONSIDERATION. THIS PARTNERSHIP IS BASED ON AND APPROVED PROJECT LIST. AND EARNED. REIMBURSEMENT STRUCTURE. WE LOOK FORWARD TO CONTINUING OUR PARTNERSHIP WITH NORTH LAKE. AND HOPE AND BELIEVE THAT THIS WILL DRIVE TO ANOTHER NORTH LAKE SUCCESS. SO THANK YOU GUYS SO MUCH FOR YOUR TIME. APPRECIATE IT. THANK YOU VERY MUCH. SO COUNSELORS, UM, WE'VE HAD THE OPPORTUNITY TO DISCUSS THE LEGAL RAMIFICATIONS OF THIS PROPOSAL IN OUR STRATEGY BEFORE AN EXECUTIVE SESSION, BUT I THINK THIS IS OUR OPPORTUNITY TO FRAME THE CONSIDERATIONS THAT GO INTO THE FRAMEWORK FOR THIS FOR THIS PROJECT. UM TRANSFERRING THE OPPORTUNITY THAT THE SEWER AND WATER PROVIDES TO THIS REGION AND MAKING SURE THAT IT STARTS TO RESULT IN VALUE TO THE TOWN AND REVENUES RETURNED TO TOWN TO PAY FOR THOSE ANNEXING INTO THIS CORNER OF THE ENTIRE TOWN INTO THE TOWN. UM, AND ALSO PROVIDING THAT TAX BASE THAT WILL SERVE THE TOWN FOR MANY, MANY YEARS TO COME. ALL OF THOSE ARE KEY PARTS OF WHAT WE'RE INTENDING TO ACHIEVE. UH OF A REALLY IMPORTANT NOTE IS THIS PUBLIC PRIVATE PARTNERSHIP? UM THIS THIS APPROACH IS A LITTLE DIFFERENT THAN WE'VE DONE IN THE PAST. I THINK IT'S IT REALLY HELPS MAKE SURE THAT THIS IS FOLLOWS WHAT WE'RE LOOKING FOR, WHICH IS TO DEFINE ALL OF THE INFRASTRUCTURE FOR THE FOR THE AREA. AND THEN HAVE THEM BUILD BOTH. THEY'RE THEY'RE OBLIGATED PORTION BUT ALSO HAVE THEM BUILD THE PORTION OF THE TOWN PROJECTS SO WE DON'T HAVE TO WORRY ABOUT THE CAPITAL. UM AND THEN IN TURN BECAUSE THEY'RE BUILDING MORE THAN JUST FOR THEIR USE, ESPECIALLY WHEN IT COMES TO THE WATER INFRASTRUCTURE. UM, THEY WOULD, AS WAS MENTIONED, THEY TURNED BACK THEIR OPPORTUNITY TO GET REIMBURSEMENTS FOR THAT, AS IT'S BUILT. THAT PROVIDES A LOT OF BENEFITS TO US, SO I WANT TO MAKE SURE I HIGHLIGHT THAT. BUT THIS IS OUR FIRST OPPORTUNITY TO LOOK AT THE PROJECT AS A WHOLE AND SEE HOW IT FITS WITH THE AREA, WHICH OF COURSE, IS VERY SIMILAR AND LAYOUT. SO I DON'T THINK THAT'S A SURPRISE. NECESSARILY. BUT THIS IS YOUR OPPORTUNITY TO WEIGH IN. ASK SOME QUESTIONS IN PUBLIC TO GET SOME THINGS ON THE RECORD. I OPEN THE FLOOR TO YOU TO ASK ANY QUESTIONS YOU MAY HAVE AT THIS POINT. I KNOW WE'VE HAD OPPORTUNITY TO SORT OF GET GET SOME OF OUR QUESTIONS ANSWERED THROUGH STAFF ALONG THE WAY, BUT IS THERE ANYTHING THAT YOU WANT TO HIGHLIGHT FROM YOUR PERSPECTIVE ABOUT THIS OR GIVE FEEDBACK TO HELEN AT THIS POINT? YEAH. I THINK AS YOU SAID, MAYOR THAT THIS IS A PROJECT THAT HELPS SET NORTH LAKE ON A PATH TO KEEPING A LOW TAX RATE. FOR THE FORESEEABLE FUTURE. AS FAR AS WE CAN SEE AHEAD BECAUSE THIS WILL OFFSET WE CURRENTLY HAVE A VERY LONG RESIDENTIAL. UH TAX BASE COMPARED TO BUSINESS, AND THIS JUST OFFSETS UP EVEN FURTHER. SO THAT WE HAVE THAT SECURITY IN OUR TOWN AND THE FEAR OF RAISING TAXES UNLESS THERE'S A DRAMATIC DESIRE FOR INCREASED SERVICES. SO THIS IS SOMETHING THAT KIND OF BUSINESS IT NOT EVEN MUCH OF AN INVESTMENT, BUT MORE ABOUT PLANNED. PHASING OF KEEPING OUR TOWN SAFE. HAVE A QUESTION FOR YOU. I KNOW I SPENT THE BETTER PART OF TWO HOURS WITH Y'ALL DISCUSSING MY FOCUS AND WHAT'S IMPORTANT TO ME IN TERMS OF WHAT COMES IN THESE BUILDINGS, WHICH, OF COURSE YOU CAN'T COMMIT TO, BUT I WOULD BE INTERESTED IN YOUR YOUR YOUR ACQUISITION STRATEGY FOR TENANTS AND SOME OF THE VISION YOU HAVE FOR THEM IS WHAT IS THAT? HOW WOULD THAT PLAY END UP HERE? AND AS I'VE SAID BEFORE, AND ARTICULATE FOR EVERYBODY ELSE, ONE OF THE KEY THINGS THAT'S NECESSARY FOR US TO BE SUCCESSFUL AS NORTH LAKE AND PARTNERING WITH INDUSTRIAL PARTNERS IS A SIGNIFICANT DIVERSITY OF THE TYPE OF USES WITHIN THESE BUILDINGS. IT'S NOT . IT'S NOT IN OUR ADVANTAGE TO BE PURELY DISTRIBUTION. IT'S NOT AN ADVANTAGE TO US TO BE PURELY MANUFACTURING. BECAUSE THE GLOBAL ECONOMY CAN SHIFT IN A HEARTBEAT AS WE'VE SEEN IN THE LAST FEW YEARS. WE DON'T WANT TO BE LEFT WITH EMPTY BOXES. SO WE NEED THINGS LIKE MANUFACTURING. WHAT THINGS LIKE RESEARCH AND DEVELOPMENT WE WANT, YOU KNOW, END CAP CORPORATE HEADQUARTERS TO TYPE USES. IF THAT'S POSSIBLE . WE WANT A DIVERSITY OF INDUSTRIES SOMEONE ENDED. ONE [00:20:02] INDUSTRY IS STRUGGLING. ANOTHER ONE CAN PICK UP. ANOTHER ONE IS SURGING. DIVERSITY OF THESE USE IS IMPORTANT TO US BECAUSE OF THE CONCENTRATION OF OUR TAX BASE IN INDUSTRIAL USES. AND ESPECIALLY WHEN WE LOOK AT OUR TOTAL BUILD OUT, THIS WILL PROBABLY BE AT LEAST PROBABLY A SOLID QUARTER. UM TO A THIRD OF OUR TOTAL BUILD OUT WHEN IT COMES TO INDUSTRIAL, SO IT'S REALLY IMPORTANT TO US THAT THE USES AND THE TENANTS THAT COME HERE HAVE NAME BRANDS AS MUCH AS POSSIBLE. PUT NORTH LAKE ON THE MAP. HAVE HIGH DENSITY OF TAX VALUE, AND, UM, AND HAVE A DIVERSITY THAT BALANCES THOSE SELF OUT, DEPENDING ON WHICH WAY THE ECONOMY GOES, SO I'LL PUT IT BACK TO YOU FOR A MINUTE TO MAYBE HIGHLIGHT YOU HAVE A SIGN THERE WHERE YOU TALK ABOUT THE DIVERSITY, THE OVERALL ALLIANCE AND I THINK THAT'S PART OF ANSWERING THE QUESTION. I KNOW, BUT THE PUBLIC TALK FOR A MINUTE OR TWO ABOUT THAT DIVERSITY THAT YOU'VE ATTRACTED AND SOME OF THE POTENTIAL TENANTS WHEN IT COMES TO THE EXPANSION OF THEM IS WHAT WOULD THAT POTENTIALLY LOOK LIKE? RIGHT IN AND YOU HAD THE NAIL ON THE HEAD? I MEAN, IF YOU LOOK AT WHEN WE STARTED, YEAH. 30 YEARS AGO. WE DIDN'T REALLY KNOW WHAT WHAT WAS GOING TO SHOW UP RIGHT? AND I THINK IF YOU LOOK ACROSS THE PORTFOLIO THAT I SHOWED EARLIER, I THINK IT STARTS WITH THE ABILITY FOR US TO PLAN QUALITY. PLAYING QUALITY INFRASTRUCTURE. PROTECT THOSE ASSETS BY CREATING BUILDING STANDARDS. LANDSCAPING. THEY DO ATTRACT THOSE TYPES OF FORTUNE, 500 INDUSTRIES AND COMPANIES THAT MAKES THEM WANT TO CO LOCATE THERE. UM YOU KNOW IT IT REALLY THERE'S NOTHING ON THAT SIDE THAT I SHOWED. THAT IS SIMILAR. ALL OF THEM ARE DIFFERENT AND DIVERSE, AND I THINK WE FEEL LIKE IF YOU BUILD QUALITY AND YOU MARKET THE WAY WE MARKET AND YOU HAVE THE TENANT BASE WE HAVE. WE CAN ACHIEVE A LOT OF REALLY WONDERFUL THINGS HERE. THAT'S HOW I WOULD SUMMARIZE THAT. APPRECIATE THAT COUNSELORS. THIS IS A BRIEFING. MR CORN. COULD YOU GIVE US BRIEFLY? WE TALKED ABOUT A SCHEDULE FOR THE NEXT COUPLE OF KIND OF LAYOUTS OF THIS. WHAT'S OUR NEXT COUPLE MEETINGS LOOK LIKE. LEGAL WILL GO TO THAT. EXECUTIVE SESSION AGAIN. I WOULD LIKE TO BRING THAT FORWARD IN OUR NEXT COUNCIL MEETING, WHICH WILL 23RD. DOUBLE PUBLICLY. MAIN POINTS OF THE THAT'S ALL. MHM CHANCE TO ACT. THE ACTION BEGINS WITH THE NEW PROJECT INTERNET. THANK YOU. COUNSELOR. DO YOU HAVE ANY FURTHER QUESTIONS? FOR HOW IT THIS TIME. ALL RIGHT. THANK YOU GUYS. APPRECIATE IT. YOU HAVE A GREAT NIGHT, TOO. ALL RIGHT. [2.C. Briefing - Final Report for Impact Fee Update for the Town of Northlake Water & Sanitary Sewer Systems] SPEAKING OF INFRASTRUCTURE, WE HAVE A PRETTY DENSE PIECE OF OUR PACKET. TONIGHT IS AN IMPACT FEES STUDY. AND SO WE'VE GOT AN OVERVIEW TONIGHT, MR CORN, SO THE IMPACT THE WE'VE. WE'VE GOT OUR EXPERTS HERE, BUT I'LL SAY IT AND MANAGE YOUR MANAGERIAL TERMS. IT'S WE PROJECT OUT THE NEXT 10 YEARS OF WHAT WE NEED FOR OUR WATER AND SEWER INFRASTRUCTURE THAT REQUIRES US TO MAKE ASSUMPTIONS ON WHAT'S GOING TO HAPPEN. THEN WE DIVIDE THAT NUMBER BY THE NUMBER OF UNITS IN THAT AREA, AND WE COME UP WITH A NUMBER. AND SO THAT'S WHAT THIS IMPACT FOR YEARS. IT'S FOR WATER. IT'S ALSO FOR SEWER. UM THE. IN THE PAST WHAT THE WATER IMPACT FEE WAS FOR THE ENTIRE TOWN, AND WE'VE NOW SINCE BROKE IT UP INTO TWO REGIONS IN NORTH REGIONS IN THE SOUTH REGION. UM AND I TOLD THE CONSULTANTS IF THE IN ANY WAY OF THESE IMPACTS THE NORTH IMPACT FEEDS SUBSIDIZES THE SOUTH IMPACT FEED BECAUSE NORTH IS PRIMARILY RESIDENTIAL IN THE SOUTH IS PRIMARILY COMMERCIAL. I SAID WE'RE NOT. WE'RE NOT GONNA DO A COMBINED FEE. AND SO YOU DO NOT HAVE A COMBINED FEE AND SO YOU YOU WILL SEE THE COST. OF THE OF THE SOUTH REGION AND THIS IS A 10 YEAR. LOOK SO THIS IS A DIFFERENT 10 YEARS FROM THE FEES THAT WE HAD IN 2018. SO THIS IS FAST FORWARD FIVE YEARS AND SO A LOT OF NEW AND LARGER PROJECTS HAVE COME IN. IN THAT THAT 2028 TO 2033. ALSO. WE'VE TALKED ABOUT THIS AD INFINITUM. CONSTRUCTION COSTS HAVE GONE UP, SO YOUR NUMERATOR HAS GONE UP. IN ADDITION IN THE SOUTH WHEN WE RE ZONED AND DID THE COMPLAINT [00:25:01] UPDATE TO TAKE THIS AREA THAT HILLWOOD WAS JUST TALKING ABOUT , AND WE CHANGED IT FROM MIXED USED TO INDUSTRIAL. WE CHANGED THE UNITS IN THE SOUTH, AND THAT'S IN THEIR DENOMINATOR. SO THEY DECREASED. SO THAT MAKES THAT NUMBER GO UP. SO THAT'S THE MANAGERIAL MATH TO THIS AND TO GET OUR EXPERTS IN. I'LL BRING THEM IN A SECOND. BUT YOU HAVE YOU HAD ASSIGNED THE PLANNING AND ZONING COMMISSION TO SERVE AS YOUR CAPITAL IMPROVEMENTS ADVISORY COMMITTEE. THAT'S A THAT'S A REQUIRED IT'S A STATE REQUIRED REVIEW. THEY HAVE LOOKED AT THIS. THEY HAVE AFFIRMED THE LAND USE ASSUMPTIONS IN THE CAPITAL IMPROVEMENT PLAN. THEY ARE READY TO SIGN THAT LETTER WE HAD. WE HAVEN'T BEEN ABLE TO GET THE CHAIR OF THAT TO SIGN THAT. BUT WE'LL SEND THAT TO YOU WILL EMAIL THAT TO YOU? THIS IS JUST A REVIEW. YOU'RE TAKING NO ACTION EXCEPT TO CALL A PUBLIC HEARING. WE HAVE TO HAVE IT IN A CERTAIN AMOUNT OF DAY SO IT WON'T OCCUR TO MARCH 9TH. WE HAVE NOTICED A FEW, UM KIND OF CLERICAL AREAS THAT WE'RE GOING TO GET. WE'RE GOING TO GET FIXED. I DON'T THINK IT HAS A MAJOR IMPACT ON THE NUMBERS. SO UM, AND THEN ONE OTHER THING THAT WE'VE DONE THAT WE HAVEN'T DONE IN THE PAST. SO ONCE YOU ONCE YOU DO THIS FRACTION ONCE YOU GET ALL YOUR COSTS FOR 10 YEARS AND ALL YOUR UNITS AND GET THAT NUMBER YOU HAVE TO DIVIDE IT BY TWO. IT CAN ONLY BE 50% UNLESS YOU GET A SPECIALIST THAT LOOKS AT THE VALUE OF MONEY AND INTEREST RATES AND ALL THE INS AND OUTS AND I DONT MATTHEW GARRETT IS THE GUY THAT DOES THAT WITH NUGENT AND HE'LL TELL YOU I THINK WE'RE ROUGHLY 60% BUT WE'RE STILL NOT CAPTURING 100% OF WHAT THESE COSTS ARE. AND THESE ARE COSTS THAT ARE CHARGED TO THE DEVELOPER. THEY'RE NOT CHARGED TO EXISTING RESIDENTS. THEY'RE CHARGED TO DEVELOPERS. IT'S THE IMPACT THEIR DEVELOPMENT IS HAVING ON OUR SYSTEM. AND JUST LIKE WITH ANYTHING, THE COUNCIL HAS THE ABILITY TO GO BELOW THIS RATE, YOU CAN ACTUALLY CASE BY CASE WITH THE DEVELOPMENT DECIDE ON WHETHER YOU WANT TO CREDIT THOSE FEES. WAIVE THOSE FEES. THIS IS JUST YOUR THIS IS YOUR CEILING OF WHAT YOU WOULD CHARGE IF SOMEBODY CAME IN ROUGHSHOD DIDN'T WANT TO WORK A DEAL WITH THE TOWN. THIS IS WHAT WE CHARGED THEM, BUT YOU HAVE THE ABILITY TO LOWER HIM NOW OR WHEN YOU WHEN YOU DECIDE TO ACT ON THEM IN MARCH, 9TH OR YOU HAVE AN ABILITY TO DO THEM CASE BY CASE, SO THAT'S KIND OF THE BIG PICTURE. I'LL LET SO WE'RE GONNA HAVE A LITTLE TAG TEAM HERE, RIGHT? MATTHEW GARRETT FROM NUGENT. HE HELPED US WITH OUR WATER RATES AND REMEMBER, WATER RATES ARE ON EXISTING CUSTOMERS. THESE ARE IMPACT FEES FOR NEW BUILDS, RIGHT AND THEN OUR WATER EXPERT PRESTON DILLARD WITH HALF ASSOCIATES WILL TALK ABOUT THE NUMBERS AND THE PROJECTS AND THE TIME THE TIME FRAME ON THAT SO ANY BIG QUESTION BIG PICTURE QUESTIONS. I THINK YOU HIT IT ALL. IT'S A FIVE YEAR UM, YOU KNOW, TIMELINES, 10 YEARS, BUT WE SHIFTED FIVE YEARS. YES, SIR. BUT WE HAVE TO LOOK AT IT EVERY FIVE YEARS. SO WE'RE DOING OUR FIVE YEAR REVIEW. UM AS AS YOU SAID, THERE'S I. I EXPECT THAT THERE'S MORE, BUT I FOUND A COUPLE IN HERE THAT I HAD TALKED TO STAFF ABOUT AND THERE WERE A COUPLE OF CLERICAL THINGS. A COUPLE OF PROJECTS THAT DON'T NEED TO BE ON THERE, ONE OR TWO AND THEN A COUPLE ADJUSTMENTS. SOME NUMBERS THAT I WAS AWARE OF, SO IT'S THAT'S TO BE EXPECTED, BUT THAT'S PART OF OUR REVIEWS TO MAKE SURE THAT WE'RE SATISFIED WITH THE PROJECTS IN THE OUTLINE OF THOSE PROJECTS. OBVIOUSLY WE DON'T HAVE THE ABILITY TO LEAST I DON'T TO STRESS TEST THE PROJECT COST FOR THE PROJECTS THEY'RE ON HERE. BUT IT'S OUR JOB TO MAKE SURE THAT THE PROJECTS THAT ARE ON HERE MEET OUR EXPECTATIONS. AS FAR AS THE MASTER PLANS ARE CONCERNED, SO YOU NEED TO REVIEW THOSE, UM AND THEN PUTTING OUR SUP AT 60,000 FT. YOU KNOW, TAKING A LOOK AT WHAT THE NET TOTAL OF IMPACT FEE COSTS ARE. WHAT DOES THAT MEAN? FOR BUILD OUT? OF COURSE, OUR PRIORITIES NEED TO BE THAT WE RECOUP THE COSTS NECESSARY FOR ANY GROWTH THAT COMES TO THE TOWN. IT SHOULD COME FROM FROM GROCERY PAY FOR ITSELF. THAT IS, THAT'S A PRINCIPLE THAT WE ALL I BELIEVE BELIEVE IN. SO I THINK THIS IS, UH, THAT'S A GOOD OVERVIEW. APPRECIATE IT. SO LET'S LET'S HEAR FROM FROM THAT. THAT'S ALL RIGHT. THANK YOU, SIR. ROGER THAT. DREW I WILL DO BETTER THIS TIME. HOW DO YOU GOOD EVENING, MAYOR AND COUNCIL MATTHEW GARRETT WITH NUGENT STRATEGIES AND SOLUTIONS. ALWAYS GOOD TO SEE YOU. GLAD TO BE WRAPPING THIS UP. AS NOTED, THERE MAY BE A FEW TWEAKS. THIS IS A DRAFT REPORT. SO WE WELCOME ANY FEEDBACK YOU HAVE. CLEARLY IF YOU HAVE SUGGESTIONS, WE HAVE THE OPPORTUNITY TO REVISE THAT. AND THEN, FRANKLY, DREW DID GOOO TALK ABOUT, EXCEPT WE HAVE SUBMITTED A DRAFT REPORT. AND WE WILL HAVE, UM PRESTON COME UP AND ACTUALLY TALK ABOUT MOST OF THE BIG DETAIL AREAS BEFORE WE GET INTO CALCULATIONS, SO IT'S A QUICK TAG TEAM, BUT WE'LL GO RIGHT TO THE ENGINEERING SIDE. THANKS TRUE, THANKS. DREW [00:30:04] MATTHEW PRESTON DILLARD AGAIN WITH HALF SO AS MENTIONED, I'LL BE TALKING MORE ABOUT THE ENGINEERING SIDE TO, UH, PREPARATIONS MADE TO PREPARE THE CAPITAL IMPROVEMENT PLAN AND I'LL APOLOGIZE UP FRONT. I KNOW THE, UH ON THE SCREEN. IT'S PROBABLY HARD TO SEE SOME OF THESE FIGURES, BUT THEY ARE INCLUDED IN YOUR DENSE PACK IT IN YOUR TOWARDS THE BACK FOR THOSE EXHIBITS ARE SO, PARTICULARLY IN A SITUATION WHERE WE'RE PREPARING A PLAN FOR A TOWN LIKE NORTH LAKE THAT HAS BEEN DYNAMICALLY GROWING HERE. FOR SEVERAL YEARS AND EXPECTING TO CONTINUE IN THE FUTURE. AND WE CERTAINLY WANTED TO START OUT AT THE FRONT OF THE PROJECT AND SIT DOWN WITH STAFF AND MAKE SURE WE ARE AWARE OF ALL THE ACTIVE DEVELOPMENT GOING ON. AND SO THIS MAP REFLECTS THAT INFORMATION. AND AS THE MAYOR MENTIONED, THERE'S A FEW THINGS WE NEED TO CORRECT ABOUT THAT, BUT WE WANT TO MAKE SURE WE UNDERSTOOD EVERYTHING THAT WAS HAPPENING IN SUCH A DYNAMIC SITUATION IS HERE. AND THEN, OF COURSE, THAT INFORMATION CAN TURN INTO A POPULATION PROJECTION. AND SO THERE YOU GO. WE'RE EXPECTING A LOT TO HAPPEN. AND WE'RE ANTICIPATING THAT THE BUILD OUT POPULATION THERE AND ABOUT A YEAR 2050 WOULD BE AT 55,000 FOLKS. SO A LOT TO HAPPEN THERE. SO THEN DRILLING DOWN A LITTLE BIT INTO THE WATER SIDE OF THINGS AS MENTIONED IS, I THINK, YOU KNOW THERE'S REALLY TWO SERVICE AREAS WITHIN NORTH LAKE, THE NORTHERN SIDE BASICALLY NORTH OF DENTON CREEK. YES SERVED BY OPPORTUNITY. REGIONAL WATER DISTRICT. THEY PROVIDE THE TREATED WATER AND THEN NORTHLAKE SYSTEM DISTRIBUTES THAT TO INDIVIDUAL USERS. ON THE SOUTH SIDE. IT'S THE CITY OF WHAT WORTH BASICALLY SOUTH OF DAYTON CREEK. SO YOU CAN MAKE OUT THOSE AREAS IN THE FIGURE THERE. UM AND SO, OF COURSE, WE'VE PLANNED A FUTURE WATER SYSTEM THAT WOULD MEET THE NEEDS OF BOTH THE NORTH AND THE SOUTH. UM LOTS OF PIPELINES, TANKS AND PUMP STATIONS TO COME TO MEET THOSE NEEDS. AND AS MENTIONED, UM THE PORTION OF THE CAPITAL PLAN THAT WE CAN USE IN THE IMPACT FEES IS REALLY THE ONLY IN THE NEXT 10 YEARS. OBVIOUSLY TO MEET THE NEEDS OF 55,000 PEOPLE. BY THE YEAR 2050. THERE'S GONNA BE MORE THAN THAT IT HAPPENS DOWN THE ROAD. BUT FOR THE PURPOSES OF IMPACT CALCULATIONS, WE CAN ONLY LOOK AT THE NEXT 10 YEARS. AND THEN, OF COURSE, OVER THE NEXT TWO SLIDES. WE'VE GOT THE WATERSIDE CAPITAL PROJECTS LISTED THERE. OBVIOUSLY THERE'S A LOT MORE INFORMATION ABOUT EACH OF THOSE IN THE REPORT ITSELF. AND IF YOU TOTAL ALL THAT UP, IT'S ALMOST $110 MILLION FOR THAT 10 YEAR CHUNK ON THE WATERSIDE. UM SWITCHING OVER TO THE WASTEWATER SIDE FOR A MOMENT. SIMILAR PROCESS TOOK PLACE THERE. UM AGAIN, THERE'S GOING TO BE NEEDS OVER THE NEXT 10 YEARS TO SERVE . WHAT MAINLY IS THE SOUTHERN AND CENTRAL PARTS OF NORTH LAKE , SO THOSE ARE SHOWN IN THE EXHIBIT THERE? AND THEN WE ALSO HAVE A TABLE OF COSTS FOR THOSE AS WELL, UM, A FEW LESS PROJECT ON THE WASTEWATER SIDE THAN ON THE WATER. MATTHEW IS GOING TO RETURN TO TALK ABOUT THE IMPACT FEE CALCULATIONS. BUT PERHAPS IF YOU HAVE ANY QUESTIONS ABOUT THE C, IPM, MAYBE, BUT HANDLE THOSE NOW IF YOU DO COUNSELORS. DO YOU HAVE ANY QUESTIONS? MY UNDERSTANDING IT'S THE FORMULA IS PRETTY PRETTY STANDARD FARE, BUT IT'S WHAT YOU PUT INTO IT THAT MATTERS. AND SO AGAIN BACK TO MY POINT FOR A MINUTE AGO, SCRUB THESE MAPS TO MAKE SURE THAT THESE LINES GO WHERE YOU'RE EXPECTING TO GO. THE PROJECTS AROUND HERE THAT YOU ARE AWARE OF UM, I NOTICED ONE MORE THAT ASK ABOUT LATER. UM BUT I'VE ASKED ABOUT A FEW ALREADY, BUT THAT'S IT'S IMPORTANT FOR US TO MAKE SURE WE GET IT RIGHT AND IT'S 99% THERE. I MEAN, THIS DOES FOLLOW OUR MASTER PLANS. BUT AS WE LOOK AT THIS, IT'S IMPORTANT TO STRESS TEST AND GET YOUR QUESTIONS ANSWERED. SO I DON'T HAVE ANY QUESTIONS FOR YOU AT THIS TIME. WELL THANK YOU AGAIN. WE APPRECIATE THOSE COMMENTS. YOU KNOW, HAVING THAT MORE SETS OF EYES ALWAYS HELPS. MATTHEW. EXCELLENT. GOOD DEAL. WELL, SO THE FORMULA I THINK IS THE MAYOR POINT OUT IS PRETTY STRAIGHTFORWARD OF SORT OF OUTLINED IT HERE. WHAT WE DO AS YOU ALLUDED TO 3 95, WHICH IS CHAPTER OF TEXAS, LOCAL GOVERNMENT CODE SPELLS OUT HOW THIS HAS TO GET DONE. SO STATUTE DRIVES EVERYTHING BUT BELOW THAT ARE INCLUDED PROJECTS, INCLUDING EXPENSES. THAT'S WHAT THE HALF GROUP HAS DONE. THOSE ARE THE PROJECTS YOU SEE. A DRAW YOUR ATTENTION TO A FEW THINGS SUBJECT TO THE MAYOR'S POINT HERE. WE HAVE CAPITAL ITEMS AND A LOT OF PROJECTS RIGHT AND WE WANT TO BE AS COMPREHENSIVE AS POSSIBLE. AND AS THE PRIOR PRESENTATION POINTED TO, THERE ARE OTHER FUNDING MECHANISMS, AS YOUR TOWN MANAGER ALLUDED TO, UH WE ALSO HAVE THE ABILITY YOU HAVE THE ABILITY TO MAKE OTHER DECISIONS AND OTHER DEALS IMPACT THE CREDIT AGREEMENTS AND THE LIKE, SO YOU'RE NOT TYING OR BINDING THE HANDS OF FUTURE COUNCILS. THIS IS A STRAIGHT FORMULA, AND I SAY THAT BECAUSE THE FORMULA STILL ON SCREEN I TAKE THE TOTAL PROJECTS IS [00:35:04] DETERMINED BY AN ENGINEER. AND I TAKE THAT PORTION, WHICH IS UTILIZED AND YOU CAN SEE UTILIZATION FOR REFERENCE ON TABLE 3, 11 AND 3 12 AND YOUR PACKET. IT'S ACTUALLY VERY INTERESTING. IT'S A NICE SEGUE FROM MILLIONS AND MILLIONS OF DOLLARS OF PROJECTS TO HOW MUCH OF THAT IS ACTUALLY ELIGIBLE IN THE NEXT 10 YEAR WINDOW OF GROWTH. FROM THAT NUMBER, OF COURSE, THEN I APPLY FINANCING COST, WHICH WE ASSUME THAT TODAY'S MARKET RATES EARNINGS AT TODAY'S MARKET RATES. UM PLUS REMIND US CHANGES SINCE I DRAFTED THIS, UM AND THEN WE CALCULATE A CREDIT THAT WOULD BE DUE TO EACH CUSTOMER WHEN THEY COME ONLINE BECAUSE THEY, TOO WILL BECOME RATEPAYERS SO THEY MAY PAY A PORTION OF ANY DEBT OR ANY EXISTING COST. WITHIN THEIR RATES FOR THE SAME ASSET, HENCE THE CREDIT FOR UTILITY REVENUES , WHICH PRODUCES PRETTY MUCH MY FINAL ANSWERS BY SERVICE AREA AND SO YOU SEE IN THE SOUTH, IT'S 20,034. THESE ARE ALL SUBJECT TO MINOR CHANGES WHICH HAVE BEEN POINTED OUT TODAY. WE CAN ALSO AMEND THAT IF NEEDED, AND THEN 41 68 IN THE NORTH. IF THAT WERE TO BE COMBINED. OF COURSE, IT WOULD BE BETWEEN THE TWO NUMBERS, PROBABLY AROUND $7000. FOR WASTEWATER CHARGES 67 31 AFTER I I'VE DONE THE COMPUTATION SO. HOW DOES THAT COMPARE TO WHERE YOU ARE NOW? SO YOU HAVE YOUR COMPARISON? SLIDE UM, ONSCREEN NOW, UM, AND SO THESE TOTALS ALSO EXCLUDE THE PAST THE AMOUNT FROM FORT WORTH. SO THAT'S THAT LITTLE SIDEBAR DISCLAIMER THERE, BUT IN THE REGION, IT PUTS YOU RELATIVELY HIGH IN THE SOUTH BECAUSE YOU HAVE, AS WAS POINTED OUT FEWER BUT MOSTLY INDUSTRIAL USES. AGAINST A LOT OF CAPITAL NEED IN THE NORTH. YOU STAY SORT OF MIDLINE STREAMLINE FROM NUMBERS I'VE SEEN IN THE MARKET. ADDITIONALLY WE ARE UPDATING A NUMBER OF YOUR COMPARATOR Z, INCLUDING DENTON. AND A COUPLE OTHERS ON THIS SCREEN. NOW I BELIEVE YEAH. WITH THAT HAPPY TO TAKE ANY QUESTIONS YOU HAVE ABOUT THE MATH, UM OR THE COMPARATOR BEFORE YOU LEAVE THIS ONE. HOW MANY OF THESE HAVE GONE THROUGH THE PROCESS RECENTLY? SINCE YOU KNOW, PRICES HAVE REALLY CHANGED THE LAST YEAR, TOO. I DID FLOWER MOUND A FEW YEARS AGO, AND THEY MAY LOOK AT IT AGAIN. THAT'S A GREAT POINT. AS YOU ALLUDED TO THE CHAPTER OF CODE REQUIRES UPDATES EVERY FIVE YEARS. UM I JUST COMPLETED OR HALFWAY DONE WITH GEORGETOWN. THERE SEE, I ACTUALLY RECOMMENDED BECAUSE OF THE ECONOMY, WE COME BACK AND LOOK AT IT IN TWO MORE YEARS TO SEE WHAT'S CHANGED AND THE TURNING COST OF CAPITAL BEING SUBSTANTIALLY HIGHER HAS GENERATED A NEED TO LOOK AT THE SOONER I CAN'T SPEAK TO THE COMPARATIVE GROUP ON SCREEN. AS FOR RECENT NUMBERS, BUT I DO BELIEVE DENTON IS OFF SCHEDULE AND DOING IT EARLIER BECAUSE THE CAPITAL NEEDS AND COSTS ARE SO MUCH DIFFERENT THAN PROJECTED THREE YEARS AGO. HAPPENS IN THE CASE OF THE SOUTH PLANE HERE. WATER PROJECTS THAT ARE DRIVING THAT WE'VE PUT A SUBSTANTIAL AMOUNT OF WATER INFRASTRUCTURE ON THE GROUND. WE JUST COMMITTED TO MAJOR INFRASTRUCTURE EXPANSION FOR WATER. UM IS THIS INCLUSIVE OF THOSE COSTS? OR IS IT ALREADY EXCLUDING THOSE BECAUSE THEY'RE BEING BUILT? I MEAN, WHAT HAPPENS WHEN THOSE ALREADY GET BUILT OR PAID FOR BY A DEVELOPER ON THE WAY? SURE THOSE PROJECTS COME OFF THE LIST. ARE WE ABLE TO ADJUST? UM AS WE GO ALONG, SO THE BOTH SIDES OF THE EQUATION, RIGHT? THIS IS A SIMPLE FRACTION WITH TOTAL DOLLARS OVER UNITS AND SO IF THAT PROJECT WERE 10 MILLION, AND THEIR PORTION WAS TOO RIGHT , AND THEY THEY'VE ACTUALLY CONSTRUCTED ALL OF IT AND YOU END UP DOING SOME CREDIT KALAC'S THEY COULD BE PAID THROUGH IMPACT FEES ON NEW CONNECTIONS AS THEY COME IN OVERTIME. UM AND SO THERE IS A WAY TO HAVE IT OVERBUILT OR OVERSIZED AND THEN CREDIT BACK TO THE DEVELOPER. I THINK THAT ANSWERS THE SECOND QUESTION. THE FIRST QUESTION WAS, WHAT DO WE DO ABOUT EXISTING OR SUNK COST? AN EXAMPLE. LAST YEAR FROM DENTON. THEY HAVE A LAKE, AND THAT HAS 2.5% 5% I FORGOT THE NUMBER BUT SOME PORTION OF THAT SOURCE WATER SURFACE WATER KIND OF RARE ANYMORE IN TEXAS. IS AVAILABLE FOR THE ADDITIONAL EXPANSION. DESPITE THE FACT THAT THEY INVESTED IN IN 1950. IT'S STILL IN MY CALCULATIONS TODAY. SO WE HAVE INCLUDED SOME OF YOUR EXISTING PROJECTS. ADDITIONALLY SOME OF THE EXISTING PRINCIPAL AND INTEREST THAT YOU'VE BEEN PAYING ON WHAT IS PRIOR INVESTMENT TO SUPPORT GROWTH AS IT COMES ALONG. SO IN ONE ANOTHER WAY TO PUT IT IS THAT WE'RE ACTUALLY GETTING CREDITED BACK FOR INFRASTRUCTURE THAT WE'VE COMMITTED TO ALREADY. YES LIKE THE WATER TOWER, RIGHT AND SUBJECT TO YOUR 10.22 THE COUNCIL MEMBERS. IT IS IMPERATIVE THAT THIS LIST BE INTACT BECAUSE CODE DOES REQUIRE WHEN WE SPEND MONEY. IT'S FOR PROJECTS ON THIS LIST, NOT PROJECTS ON OUR SKYPE, NOT PROJECTS. WE THOUGHT OF TOMORROW, BUT IT HAS TO BE ON THIS LIST. AND TO THAT END, THAT'S WHY DENTON STILL HAS A VERY OLD LAKE ON ITS LIST OF PROJECTS, SO IT'S STILL INCLUDE A BLE. AS A PART OF MY CALCULATION, SO THAT'S WHY IF YOU SEE SOME EXISTING COMPLETED [00:40:01] PROJECTS ON THIS LIST, UM THEY'RE STILL PRESENT BECAUSE WE'RE GETTING A PORTION OF THE UTILIZATION FOR THOSE THAT ARE GONNA COME TOMORROW. SO THE THINGS THAT WE'RE GOING TO NEED TO PAY ATTENTION TO, ESPECIALLY ON THE WATERSIDE IN PARTICULAR HERE, SUICIDE NOT SO MUCH, BUT ON THE WATERSIDE. WE'RE GOING TO NEED TO TAKE A CLOSE HARD LOOK AT THE PROJECTS THAT ARE IN THE WINDOW AND MAKE SURE THAT WE EXPECT THAT THOSE PROJECTS ARE GOING TO BE NEEDED IN THAT WINDOW. SO FROM OUR EXPECTATION AS A COUNCIL THAT THAT MAY OR MAY NOT BE IN A LINE WITH WHERE THE PROJECTIONS ARE FROM STAFF AS TO WHEN THOSE AREAS WILL DEVELOP. WE DO HAVE A LITTLE BIT OF INFLUENCE ON THAT. NOT A LOT, BUT WE NEED TO TAKE A LOOK AT THAT LIST PRETTY CRITICALLY, AND MAKE SURE THAT WE BELIEVE THOSE PROJECTS ARE GOING TO BE NECESSARY. UM AND IF WE DON'T THEN HAVE A CONVERSATION AND MAKE SURE WE CAN ALL COME TO THE SAME CONCLUSION. I DON'T LIKE TO, IN ITS JUST OPINION A LITTLE BIT HERE FOR Y'ALL. I DON'T NECESSARILY LIKE TO JUST GO TWEAKING NUMBERS BECAUSE THEY LOOK BIGGER. THEY LOOK SMALL. I THINK IT SHOULD BE ROOTED IN SOME MATH, SO WE NEED TO CHALLENGE THE BOTH NEWMAN NUMERATOR AND DENOMINATOR OF THE FRACTION. IF WE EXPECT THAT NUMBER SHOULD BE SOMETHING DIFFERENT IF THAT'S WHAT WE'RE TRYING TO DO, BUT THAT MEANS LOOKING AT PROJECTS AND SAYING WE'RE GOING TO HAVE TO WAIT ON THAT PROJECT, OR WE THINK WE'RE GOING TO PUT THAT OUTSIDE THE WINDOW. WHAT DOES THAT MEAN IN TERMS OF GROWTH AND DEVELOPMENT AND IN THOSE AREAS, SO WE HAVE TO TAKE A CRITICAL LOOK HERE TO MAKE SURE WE'RE DOING THIS RIGHT IF WE GET THIS RIGHT GROWTH PAYS FOR ITSELF. WE GET THIS WRONG, THEN WE HAVE TO EITHER MAKE UP OR OVER COLLECTING EITHER ONE IS NOT A GOOD SCENARIO, SO THERE'S A DITCH ON BOTH SIDES OF THE ROAD HERE. THAT'S JUST A LITTLE BIT OF OPINION THERE. FOR OUR COUNCIL, BUT COUNCIL AS FAR AS THIS NEXT SECTION IS CONCERNED. DO YOU HAVE ANY QUESTIONS FOR MATT? ALRIGHT SO WE'VE GOT SOME WHAT'S WHAT'S THE SCHEDULE ON THIS AS FAR AS OUR REVIEW PERIOD? I DON'T THINK WE HAVE THAT ON THE SCHEDULE, DO WE? WE DO NOT. YEAH WELL, WE'LL CALL THE PUBLIC HEARING. WE'LL HAVE THAT FOR MARCH 9TH AND TAKE ACTION ON MARCH 9TH. AND IF YOU WANT TO DIVERT OR DELAY IT, YOU CAN AS WELL BUT BASICALLY FOUR WEEKS TO LOOK AT THIS OVER. OKAY COUNSELOR, YOU HAVE ANY FURTHER QUESTIONS FOR THE CONSULTANTS? OKAY. IS THAT $20,834 MONEY WE HAVE ALREADY COMMITTED. NO SIR. NOT IN FULL. I COULDN'T SPEAK TO THE ACTUAL PROJECTS. BUT I KNEW THAT I'D KNOW THAT A LOT OF THAT IS PERSPECTIVE, RIGHT? WE WERE JUST TALKING ABOUT AND YOU SAW A MAP ON THE PRIOR. THIS SOUTH SIDE OF TOWN HAS A LOT OF EXPECTED DEVELOPMENT. AND SO IT IS NOT AT ALL 100% EXISTING PROJECTS. IT IS A LOT OF FUTURE FORECASTED PROJECTS, UM, AND AS AS AMERICAN POINTED OUT, THE FRACTION HOLDS. IF WE WANT TO BUILD THE PROJECT, WE COULDN'T SUPPORT THE SERVICE UNITS. SO MY NUMERATOR AND DENOMINATOR WOULD BOTH HAVE A CHANGE. THEY'RE NOT ALWAYS LOCKED STEP, BUT WE HAVE TO CONSIDER BOTH PARTS. IF WE AFFECT THE PROJECTS. WE PROBABLY CAN'T HAVE THOSE CONNECTIONS. QUESTION FOR YOU, UM THERE'S A SUBSTANTIAL AMOUNT OF DEBT FUNDING INTERESTS THAT'S ACCUMULATED IN THESE IN THESE PROJECTIONS. WHAT DO YOU PROJECTING IN HERE? HOW DO YOU PROJECT INTEREST RATES AND TAKE THAT INTO CONSIDERATION AS IT USED TODAY'S INTEREST RATES TOMORROW'S I MEAN, IT WAS AT LEAST YESTERDAY'S MAYOR FOR SURE , BECAUSE I DID THIS SO YEAH, MY CRYSTAL BALL IS ALWAYS WRONG. IT RANGES FROM 4.5% TO 6.5% ON LONG TERM BORROWING AT 20 YEAR TERMS. THESE WERE VETTED WITH YOUR FINANCE DEPARTMENT. IT ALSO ENVISIONS. WE'RE GOING TO CONTINUE TO GET 2.5% EARNINGS ON DAY MONEY IN OUR POOLS, WHICH IS GREAT TODAY, BUT IT HASN'T BEEN THAT WAY FOR NOW FOR THREE YEARS. UM SO IF THAT BALANCING ACT HELPS. THAT'S HOW I JUSTIFY MAINTAINING THOSE EARNINGS. AND THOSE COSTS. BUT THOSE ARE THE NUMBERS. I BELIEVE I HAD IT GOING UP 25. MAYBE 15 BASIS POINTS PER YEAR. I CAN CHECK SUBJECT TO CHECK HOLD ON. SO YOU'RE PROJECTING THAT INTEREST RATES WILL RISE THROUGH THE PERIOD? YES, SIR. STARTING AT 4.5 FOR 5.5. 59% UP TO 6.5% AND IT'S 25 BASIS POINTS PER YEAR UNTIL WE HOLD OUT AT 6.5. IN YOUR FIVE. ALL RIGHT. AND I SEE YOU HAVE AND HOW DID YOU PROJECT SOME OF THESE COSTS FOR AS FAR AS COST INFLATION, SO WE'RE AT A PRETTY PRETTY SIGNIFICANTLY HIGH POINT IN TERMS OF MATERIALS AND LABOR AND PROJECTS. SURE PROJECTING THAT THAT INCREASES ARE YOU PROJECTING THAT WE ENTER A PERIOD OF STABILIZATION? I THINK THEY'RE PRETTY GOOD NUMBERS BECAUSE THEY WERE ON THE TAIL END OF 22, WHICH HAD ABSORBED A LOT OF THE COST. I THINK STEELE WAS EVEN DOWN. BUT THAT'S ME TALKING MARKETS. I DON'T PLAY AND I SHOULD DEFER TO HALF ON HIS NUMBERS. OKAY? JUST A COUPLE OF RESPONSES. SO YES, [00:45:08] THE VAST MAJORITY OF PROJECTS LISTEN, REPORT OR NOT COMMITTED TO YET, YOU KNOW, THEY HAVEN'T LEFT THE GROUND. AND THEN, UM, IN TERMS OF THE COST. UH YOU KNOW, I THINK THOSE OF US ON THE ENGINEERING CONSTRUCTION WORLD HAVE BEEN SHOCKED BY SOME OF THE PRICES HERE OF THE LAST 18 MONTHS. SO THE COSTS REFLECTED THEIR DO SHOW A BUMP UP IN TERMS OF WHAT WE WOULD HAVE FORECAST EVEN JUST TWO OR THREE YEARS AGO. UM BUT WE'RE NOT. WE'RE HOLDING THAT YOU'RE GOING FORWARD OVER THE 10 YEAR PERIOD . WE'RE NOT SHOWING AGGRESSIVE INCREASES NEXT YEAR IN THE FOLLOWING YEAR IN THE FOLLOWING YEAR AFTER THAT, FOR THOSE THAT ARE SCHEDULED FOR THE TOWARDS THE END OF THE 10 YEAR PERIOD. OKAY? ALL RIGHT. COUNSELORS THERE'S A SECTION IN THE BACK OF YOUR STUDY THAT I THINK IS REALLY IMPORTANT. THERE'S A THERE'S A WHOLE SECTION OF ADDENDUMS HERE FOR THE SOUTH SERVICE, AREA WATER NORTH SERVICE AREA AND PURSUER, AND THOSE PROJECT LISTS BACK THERE. AND THEN SOME OF THE MATH THAT GOES INTO THESE SHEETS, ESPECIALLY THINK THE PROJECT LISTS ARE IMPORTANT TO LOOK AT THE MAPS. AND TAKE A LOOK AT THOSE AND YOU CAN SEE SOME OF THE PROJECTS THAT WE HAVE COMMITTED TO, AND OTHERS THAT ARE YET ON THE MAP THAT YOU CAN SEE ARE DEFINITELY IN THE FUTURE. UM THERE'S DEFINITELY SOME SOME WORK TO DO THERE TO TAKE A LOOK AT THOSE MAKE SURE THOSE MEET YOUR EXPECTATIONS. UM OKAY. I NEED TO ABSORB YOUR COMMENTS, SO I DON'T EXACTLY HAVE A FOLLOW UP. QUESTION TO THAT. COUNSELORS ANY FURTHER QUESTIONS. YEAH PROBABLY JUST ONE. IF YOU'LL GO BACK. ONE SLIDE, PLEASE. JUST AS A POINT OF REFERENCE, RIGHT WHEN YOU PUT A GRAPH ON THE SCREEN, AND YOU SEE GIGANTIC NUMBER ON THE TOP AND LITTLE BITTY NUMBER ON THE BOTTOM. WHY IS RUN LOOKS SO SMALL BECAUSE THEY'RE BUILT OUT. SO I DID NOT COMPLETE THAT THEY MAY NOT HAVE UPDATED IN A WHILE, UM, AND THEY MAY HAVE MOST OF THEIR NEEDS MET ON MAIN STREET, RIGHT? LIKE NOT EVEN CLOSE TO THE AVERAGE, RIGHT? YES SIR. I CAN SHOW YOU SOME AND I DIDN'T BECAUSE THEY'RE NOT IN YOUR COMPARATIVE MARKET. BUT NEW BRAUNFELS RECENTLY PASSED SOMETHING NORTH OF 20 AND GEORGETOWN IS CONTEMPLATING SOME NORTH OF 15. PFLUGERVILLE ALSO WAS IN THE 20 PLUS RANGE ON A COMBINED BASIS, BASICALLY, JUST NAMED QUICKLY GROWING COMMUNITIES. YES, SIR. SIMILAR CHALLENGES, WHICH BASICALLY IS NOT THERE NEAR BUILD OUT. YES SO ALL THOSE ARE ELEMENTS? YES SIR. YOU'RE CORRECT, SO I DON'T KNOW THE TIME I CAN'T REALLY SPEAK TO THEIR CIRCUMSTANCES. MAKES SENSE. ALL RIGHT. ANYTHING FURTHER. NO SIR. OKAY, THANK YOU FOR THE BRIEFING. THERE'S DEFINITELY SOME SOME THOUGHT TO BE PUT INTO THAT ONE. APPRECIATE YOU GENTLEMEN COMING OUT. ALL [2.D. Briefing - Fiscal Year 2023 First Quarter Investment Report (Oct - Dec 2022)] RIGHT. DO WE HAVE JOHN HERE TONIGHT? WE DO. ALRIGHT LET'S TALK SOME MORE NUMBERS. I'LL KEEP THIS BRIEF. AH DEFENDED THINGS. YES ALRIGHT. SO THIS FAR THIS YEAR? UM INVESTMENTS. IF ANYBODY ELSE IS AN INVESTOR RIGHT NOW, YOU CAN PROBABLY SAY THINGS. INTEREST RATES ARE DOING WILD THINGS AND IT'S BECAUSE THE FED JUST KEEPS RATION UP RATES FOR THE FIRST TIME AND 40 PLUS YEARS. THE PEOPLE CAN BUY TREASURY BILLS AND GET RETURN ON INTEREST RATES IN 26 MONTHS, 13 MONTHS BETTER THAN THEY CAN GOING OUT INTO THE STOCK MARKET AT SOME POINTS, SO IT'S A VERY INTERESTING TIME. AND BECAUSE OF THIS, YOU'RE SEEING A VAST INCREASE IN YOUR INTEREST EARNINGS LIKE WE'VE NEVER SEEN BEFORE, AND THIS IS WHY EACH QUARTER I KEEP COMING UP AND WE'RE EARNING MORE MONEY, WHICH IS GOOD. IT'S ALWAYS GOOD TO BE THE EARNING INTEREST ON THE FUNDS THAT WE HAVE SO FIRST ORDER FIRST QUARTER TOTAL INVESTMENTS IS AROUND 44,000. OUR FIRST QUARTER INTEREST EARNINGS ARE ABOUT 191,000. SO OVER THREE MONTHS, THAT'S THAT'S PRETTY GOOD. WE'RE DOING VERY WELL THERE. YOU'RE LOOKING AT ROUGHLY AROUND 70 $80,000 A MONTH THAT YOU'RE EARNING INTEREST ON THE BOOK VALUE. YOU HAVE INTEREST EARNINGS, OR 44 SINCE LAST 44% SINCE LAST QUARTER OR IN A AGAIN I ANTICIPATE THIS GROWING AGAIN NOW IF IT HAS SLOWED SOME OF THEIR INTEREST RATES, BUT ONE OF THE THINGS THAT WE'RE DOING IS WE'RE WORKING WITH ONE OF OUR BANKS, LAMAR THAT WE'VE HAD A CONTRACT WITH FOR A NUMBER OF YEARS. AND WE'RE ACTUALLY SECTIONING OUT SOME OF THE FUNDS THAT WE HAVE FROM OUR INITIAL AGREEMENT WITH THEM TO A MORE AGGRESSIVE AGREEMENT FOR ANOTHER PORTION OF OUR FUNDS, SO WE'RE GOING TO SEE INTEREST CONTINUE INCREASE OVER THE NEXT QUARTER. DO YOU GUYS HAVE ANY QUESTIONS OF OUR INTEREST INVESTMENT? WE'RE GETTING THE INTEREST NOW. ALL RIGHT. IF YOU GUYS ARE GOOD [2.E. Briefing - Fiscal Year 2023 First Quarter Financial Report (Oct - Dec 2022)] WITH THAT, I'M GOING TO JUMP RIGHT INTO QUARTERLY FINANCIAL REPORTS. SO WE ARE NOW ONE QUARTER THROUGH OUR FISCAL YEAR. 25% HAS TRANSPIRED. 33% OF TOTAL REVENUES HAVE BEEN BOOKED, UM JUST REALLY, REALLY GOOD. IT'S BECAUSE PROPERTY TAXES ARE LEADER 85% OF PROPERTY TAX HAS BEEN RECEIVED HERE TODAY. THIS IS NORMAL. IF YOU'VE HAD YOUR ESCROW ACCOUNT, THEY PROBABLY [00:50:04] TOLD YOU PAID YOUR TAXES. SO UM , THANK YOU, EVERYONE WHO WAS AUTOMATED PAYMENTS THERE THROUGH YOUR ESCROW ACCOUNTS BECAUSE WE RECEIVE PAYMENTS RIGHT AT THE END OF DECEMBER INTO THE FIRST OF JANUARY, AND SO BY THE NEXT TIME, YOU'LL PROBABLY SEE AROUND 95% OF TOTAL PROPERTY TAXES RECEIVED, UM AT OUR NEXT AND LIKE AT 50% OF THE YEAR. 9% OF TOTAL EXPENDITURES HAVE BEEN SPENT. THIS IS JUST CAPITAL SPENDING. SO WHEN YOU ADOPT THE BUDGET, YOU ADOPT THE ENTIRE CAPITAL PROJECT BUDGET THAT YOU HAVE FOR THAT YEAR FOR NEW PROJECTS WE ADD ON SO THIS WILL ALWAYS BE A SLOW NUMBER BUT OPERATING EXPENDITURES OR 18% TODAY, AND SO WE HAD A COUPLE NEW POSITIONS PUT IN THERE. WE'VE HAD SOME VACANCY SAVINGS, UM, WITH PD, BUT OPERATIONS ARE RUNNING ON COURSE. CONCERNS. NO RIGHT NOW WE'RE DOING WELL AND FINANCIALLY. WE'RE RUNNING THROUGH THE COURSE OF THE YEAR. REVENUES ARE COMING IN, UM, DEVELOPMENT REVENUES ARE SLOWER THAN ANTICIPATED, SPECIFICALLY RESIDENTIAL BUILDING PERMITS, BUT THAT ALSO RESULTS IN LESS THIRD PARTY SERVICES FOR DEVELOPMENT REVIEW. SO EVEN THOUGH WE HAVE LESS REVENUE THERE, WE HAVE LAST EXPENSES ON THAT SIDE, SO IT'S COMPLETELY OFFSETTING. OKAY? ANYTHING ELSE, SIR? OKAY, COUNSELOR. ANYTHING. ALL RIGHT. THANK YOU VERY MUCH. HMM SHELF. YEAH IT IS. 6. 21 PM [3. PUBLIC INPUT] IT'S TIME FOR PUBLIC INPUT. IF YOU'VE TURNED INTO CARD, I DON'T HAVE ANY ENHANCED BUT FEEL FREE TO TURN ONE IN OR WAVE AT ME. WHAT DO YOU THINK DURING THE CAMPAIGN? YES, MA'AM, IF WE HAVE A PUBLIC HEARING. ALRIGHT 6. 21 PM WILL CLOSE PUBLIC HEARING PUBLIC INPUT ONLY HAVE A PUBLIC HEARING FOR THE ANNEXATION, OKAY? IS THAT ACCEPTABLE? IS THAT WHAT YOU WANTED TO SPEAK ON ANY AGENDA CASE? THAT'S NOT BEEN OUR PRESIDENT. IT'S UP TO YOU IF YOU WANT TO OPEN THAT. TO BE CLEAR THAT WE HAVE A PUBLIC HEARING ON THE ANNEXATION. WE DON'T HAVE ONE ON ANY OTHER OTHER ITEM TONIGHT. OKAY I WOULD ENCOURAGE SPEAKING OF PUBLIC INPUT, THEN IF YOU DON'T MIND. HI MARINA HARDMAN. I JUST WANT TO SPEAK ON THE PROPOSED VENUE NUMBER ONE. I THINK MOST OF Y'ALL KNOW THAT. I DON'T THINK THAT GOVERNMENT SHOULD BE INVESTING IN THESE TYPES OF THINGS THAT, UM, THAT PRIVATE INDUSTRY COULD INVEST IN. IT TAKES OUR SALES TAX AND PUT IT TOWARD THE BUILDING. MAINTENANCE CONSTRUCTION OF THESE BUILDINGS, AND I JUST THINK THAT IF IT'S BEEN DISCUSSED ON SOCIAL MEDIA AND THEY'VE BEEN SAYING THAT IN FACT, UM MAYOR PRO TEM MONTAGNY HAS SAID THAT IT'S SET TO BE QUITE SUCCESSFUL, AND IF THAT'S THE CASE, IT'S GOING TO BE SO SUCCESSFUL THAN PRIVATE INDUSTRY SHOULD TAKE OVER AND I JUST DON'T THINK THAT GOVERNMENT SHOULD OWN ASSETS LIKE THAT WHENEVER WE HAVE PEOPLE PAYING PROPERTY TAXES AND SALES TAX, AND THERE ARE A COUPLE OF UNANSWERED QUESTIONS ON THIS, THAT I WOULDN'T MIND IF YOU ALL WOULD ADDRESS IS THAT THE 2% IS AN ADDITION CORRECT TO THE TO THE CURRENT HOTEL TAX. YES IT WOULD BE A PROPOSED INCREASE TO THE CURRENT HOTEL TEXT AND THEN, UM. IS THERE A EXPIRATION ON THE , UM 8TH 8TH 18% OF THE DCC DCC MONIES THAT GO TOWARD THIS, OR WOULD THIS BE IN PERPETUITY? I WILL HAVE TO ADDRESS THAT IN THE FUTURE. I DON'T HAVE THE ANSWER OF TOP OF MY HEAD. ALRIGHT THERE'S MY QUESTIONS. THANK YOU FOR YOUR TIME. OKAY WE'LL ADD THAT TO THE AGENDA ITEM FOR A FUTURE. UM FUTURE SESSION, OKAY? ALL RIGHT. ANY OTHERS THAT WOULD YOU WISH TO SPEAK TONIGHT? ALRIGHT IT IS 6 24 PM AND WE'LL CLOSE THE PUBLIC INPUT. ALL RIGHT. WE HAVE FOUR CONSENT [4. CONSENT ITEMS] ITEMS. THREE CONSENT ITEMS TONIGHT. ITEM A IS MEETING MINUTES. ITEM B IS ACCEPTING THE POLICE REPORT FOR RACIAL PROFILING. AND ITEMS SEE IS DISPOSING OF SURPLUS PROPERTY. SO COUNCIL YOUR CONSIDERATION OF THESE CONSENT ITEMS BECAUSE THEIR EMOTION I SHOULD DO APPROVE. I HAVE A MOTION TO APPROVE BY THE MAYOR PRO TEM. I SECONDED IT MYSELF. PLEASE VOTE. OKAY? IT'S BEEN RECORDED SEVEN AND OH, UNANIMOUS. WE MOVED TO OUR REGULAR ACTION ITEMS AT 6 25 [5.A. Consider an Ordinance of the Town of Northlake, Texas, authorizing and ordering a municipal election to be held in the Town of Northlake on May 6, 2023, and if required, a Runoff Election on June 10, 2023, for the purpose of electing Council Members to Places 4, 5, and 6; prescribing the time and designating the locations, and manner of conducting the election to be in accordance with the Joint Election Agreement and Contract for Election Services with Denton County and the Denton County Elections Administrator; authorizing the Town Manager to execute the agreement and contract; and providing an effective date] [00:55:04] PM ITEM. A IS AN ORDINANCE CALLING THE ELECTION FOR THE TOWN COUNCIL FOR PLACES 45 AND SIX FOR MAY. 6 2022 3 IS THEIR EMOTION FOR THIS ITEM. I HAVE A MOTION FROM THE MAYOR PRO TEM. I HAVE A SECOND BY COUNCILOR KICKER. ANY DISCUSSION, OTHERWISE PLEASE VOTE. [5.B. Consider an Ordinance of the Town of Northlake, Texas, authorizing and ordering a Special Election to be held in the Town of Northlake on May 6, 2023, for the purpose of submitting to the qualified voters of the Town of Northlake, Texas, a ballot proposition on the question of approving and implementing Resolution No. 23-06 designating the use of special revenues to fund a Sports Venue Project, through (1) the proceeds of any lease agreement; (2) the assessment of an additional two (2) percent hotel occupancy tax within the town; (3) the dedication of 1/8 cent of existing sales tax levied by the Town of Northlake Economic Development Corporation; and (4) the dedication of 1/8 cent of existing sales tax levied by the Town of Northlake Community Development Corporation, pursuant to Chapter 334 of the Texas Local Government Code, as amended; prescribing the time and designating the locations and manner of conducting the election to be in accordance with the Joint Election Agreement and Contract for Election Services with Denton County and the Denton County Elections Administrator; authorizing ] ALRIGHT UNANIMOUS SEVEN AND OH, THANK YOU. ACTION ITEM B TOWN IN NORTH LAKE AUTHORIZING A SPECIAL ELECTION TO BE HELD IN THE TOWN OF NORTH LAKE FOR THE PURPOSE OF SUBMITTING. I'LL GO AHEAD AND READ THIS FOR THE PERSON SUBMITTING TO THE QUALIFIED VOTERS OF THE TOWN OF NORTH LAKE, A BALLOT PROPOSITION ON THE QUESTION OF APPROVING AND IMPLEMENTING RESOLUTION, 23 OH, SIX, DESIGNATING THE USE OF SPECIAL REVENUES TO FIND A SPORTS VENUE PROJECT THROUGH ONE THE PROCEEDS OF ANY LEASE AGREEMENT TO THE ASSESSMENT OF ADDITIONAL 2% HOTEL OCCUPANCY TAX WITHIN THE TOWN. AND THREE THE DEDICATION OF THE EIGHTH CENT SALES TAX LEVIED BY THE SEA AND CDC. THAT'S ALSO NUMBER 44 IS THE EIGHTH SENT FROM THE CDC AND THAT'S PURSUANT TO APPROPRIATE CODES. THIS WOULD PUT THIS ON THE JOINT ELECTION IN MAY AS WELL. ALRIGHT, COUNSELORS. YOUR DISCUSSION. QUESTION ON THE HOTEL'S, UM WHAT PERCENT OF THE TOWN'S RESPONSIBILITY WOULD BE COVERED BY THE EXPECTED HOTEL TAX 20% 30. UM. I CAN. I CAN SPEED THIS ONE UP SO UP TO THE INITIAL PROPOSAL FRAMEWORK IS 1.75 MILLION FROM THE TENANTS 250,000 EXPECTED FROM EACH OF THE 80. C AND C. D. C. AND THEN 250,000 FROM THE HOT TAX FOR A TOTAL OF 2.5 MILLION. ANYONE. 10. FROM THE HOTEL'S OKAY. WHAT IS OUR CURRENT INCOME FROM THE HOTEL TAX? UM. IT'S THE IT'S THE SEVEN ITS EXISTING 7% AND IT'S, UH. ITS UPWARD OF 900,000 ANNUALLY PROJECTED TO BE DURING THIS TIME, PERIOD. A MILLION OR MORE . UM RIGHT NOW, I BELIEVE THAT WE HAVE THREE HOTELS. HOLIDAY IN QUINTA AND MOTEL SIX IS THAT CORRECT LANGUAGE SIX AND ANOTHER THREE ON THE BOOK IN THE WORKS, BUT SIX EXISTING THERE'S THE THERE'S THE TRU BY HILTON. YEAH HOLIDAY INN EXPRESS, LOOKING TO UM, MOTEL SIX, MOTEL SIX. IT'S A CHOICE HOTEL AND THEN, UM. THERE'S ANOTHER LIMITED. STAY NEXT TO THE TRUE, UM LIKE YES, AND THEN THERE'S ONE THAT'S BEING PLANTED. THAT WILL BE ON DELL EARNHARDT WAY. THERE'S ONE PLAN SOUTH OF THE HOLIDAY INN EXPRESS, POTENTIALLY AND OF COURSE, THE CAMBRIA THAT COMES WITH THIS PROJECT, SO THAT NUMBER WOULD WOULD INCREASE. BUT WE'RE NOT COUNTING ON THAT NUMBER. WE'RE JUST COUNTING ON THE NUMBERS OF THE EXISTING HOTELS. COUNSELORS. SO I SHOULD PROBABLY FRAME THIS UP. UM WE DON'T THIS PARTICULAR PROJECT WE'RE NOT GOING TO ACTUALLY HAVE THE RIGHT TO BUILD THIS OR TO APPROVE IT AS A COUNCIL, SO THIS ITEM HAS TO GO TO THE VOTERS TO BE APPROVED. CAN'T BE FUNDED. UM AND ANY OTHER WAY TO COVER THIS. THIS THIS GAP. SO IN ORDER FOR THE PROPOSAL TO MOVE FORWARD, THIS HAS TO GO TO THE VOTERS OF THE TOWN HAS TO BE APPROVED BY THEM. UM SO JUST CALL THAT OUT HERE, BUT WHAT YOU'RE DOING WITH THIS ACTION ITEM IS CALLING THE ELECTION. AND ALLOWING THEM TO DECIDE. SO WHAT'S ON THE BALLOT IS JUST THE EIGHT CENTS EIGHT CENTS 2% CORRECT. THAT'S CORRECT. UM YOU COULD USE ALL DIFFERENT SOURCES YOU COULD USE GENERAL FUND YOU COULD USE EXISTING NBC. CDC EXISTING HOTEL TAX. THIS IS A THIS IS IDENTIFYING, UH, SMALL FRACTION OF THE E. D. C AND C D. C EXISTING CELLTECH USED FOR EXECUTIVE ECONOMIC DEVELOPMENT. ADDING AN ADDITIONAL 2% TO GET TO COVER THAT GAP. BUT YOU COULD AS A COUNCIL YOU COULD USE ANY ANY EXISTING SOURCE TO BUILD THIS IN ORDER TO DO THAT. 2% AND TWO UH, SEGREGATE THAT EIGHT SENT YOU NEED TO HAVE THIS ELECTION AND TO DO THAT YOU NEED TO DESCRIBE WHAT THE PROJECT IS CORRECT. THANK YOU FOR THAT CLARIFICATION. SO IT IS MY INTENTION TO SAY THAT THIS [01:00:01] PARTICULAR PROPOSAL AND USING AN EIGHT CENTS EIGHT CENTS SEGREGATED AND AN ADDITIONAL HEART HAD TO GO BEFORE THE VOTERS TO IMPROVE THIS AND SINCE IT'S BEEN OUR INTENTION TO GO FORWARD WITH THIS PROPOSAL, BECAUSE THAT'S WHAT'S BEEN FRAMED UP. IT'S NECESSARY FOR IT TO GO TO THE VOTERS TO BE APPROVED. SO THEREFORE WE CAN'T DO IT ANY OTHER WAY TO ACHIEVE THIS FRAMEWORK. THAT'S THAT'S WHAT IT WAS MY INTENTION. OKAY YES, AND THAT'S BECAUSE COUNSEL HE WENT LOOKING AT THIS PROJECT. UM COUNCIL DOES NOT WANT TO USE ANY PROPERTY TAX BECAUSE THAT SHOULD BE USED FOR ROADS THAT SHOULD BE USED FOR POLICE THAT SHOULD BE USED FOR PUBLIC SERVICES. THESE SPECIALLY IDENTIFIED FUNDS LIKE HOTEL TAX AND CBC. ME. BC CANNOT BE USED FOR ROADS. THEY CANNOT BE USED FOR THINGS LIKE THAT. SO PUT THEM TO WORK FOR THE TOWN. INVEST IN THE TOWN SO THAT WE CREATE MORE ECONOMIC DEVELOPMENT. SO PEOPLE WILL. COME TO NORTH LAKE, USE OUR BUSINESSES INSTEAD OF JUST DRIVING RIGHT THROUGH AT 1 14. AND SKIPPING US OVER. COUNSELORS. FOUR STILL OPEN ANYBODY ELSE WANT TO WEIGH IN? COULD WE VOTE TO DO THAT? EVEN IF THIS DIDN'T PASS? UM, YOU COULD, UM YOU WOULDN'T HAVE THE 2. UM AND YOU WOULD YOU WOULD NEED THE E. D C AND C D. C TO FUN PART OF THIS, UM, WHICH THEY CANNOT. THEY CAN THEY CAN THIS WOULD HAVE THE VOTERS SAY THAT SAY THAT AND SEGREGATE THAT, BUT THEY COULD USE ANY OF THE EXISTING HALF CENT. THEY HAVE EACH ANY OTHER. GOOD BECAUSE I CAN GET IN ANOTHER WORD NOW, ANDREW. ALRIGHT GO AHEAD AND GO GET IT IN. UM SO WE'RE LETTING THE VOTERS DECIDE WHERE THE MONEY COMES FROM. BUT WE'RE NOT REALLY LETTING THE VOTERS DECIDE WHETHER OR NOT WE DO IT UNLESS WE COMMIT OURSELVES TO SAYING THAT THAT WE WON'T DO IT IF THE VOTERS AREN'T FOR IT. UM I BELIEVE I'VE MADE RIGHT. THIS IS A THIS IS A CHANCE FOR THE VOTERS TO SPEAK, AND, UH, IF THEY THEY SAY NO. THEN YOU COULD RESURRECT. THEY'RE NOT RESURRECT. BUT YOU COULD FUND THIS OTHER MEANS. IF THEY SAY YES AND YOU STILL DON'T WANT TO DO IT. THERE'S AN OPPORTUNITY FOR YOU TO COME YOU TO SAY NO. SO THERE'S MULTIPLE OPTIONS HERE . THIS IS AN OPPORTUNITY FOR THE VOTERS TO TELL YOU WHAT, WHAT THEY WANT TO DO. AND LIKE I'M TRYING TO MAKE CERTAIN THAT WHAT WE'RE VOTING ON IS TO GIVE YOU THE VOTERS THE OPPORTUNITY TO DECIDE. THAT WE'RE NOT TELLING THEM THAT WERE FOR OR AGAINST IT. AND ONCE YOU SENT THIS ELECTION YOU YOU CAN'T ALL WE CAN DO IS GIVE THEM THE FACTS YOU CAN PERSONALLY BUT ANY TYPE OF TOWN MESSAGING. WE JUST HAVE TO STATE THE FACTS AND WE ARE TELLING THE OR YOU YOU ARE TELLING THE VOTERS WHAT THEY'RE GETTING. AND IF MR IF YOU WANT TO GO THROUGH THE SLIDES WHERE THERE'S ONE MORE. THERE'S TWO ICE RINGS FOR HARDCOURTS. IT'S 165,000 SQUARE FEET, SO UM, BEING VERY TRANSPARENT ON WHAT THEY'RE GOING TO GET FOR. THESE ADDITIONAL TAXES AND, YOU KNOW, UH, 70% OF THIS, UH IN THE INITIALLY WILL BE PAID BY THE TENANT. AND THEN, UH, PROBABLY 10 15 YEARS INTO THE LIFE OF THIS. THE MAJORITY OF THE DEBT WILL BE PAID FOR THE TENANT, BUT WE'RE RECOMMENDING TO HAVE A SINKING FUND BECAUSE WE WANT TO HAVE PLENTY OF RESERVES TO DO ANY TYPE OF RENOVATIONS, IMPROVEMENTS. REPAIRS OF THIS IS IF WE AS WE HOPE THIS WILL BE A WELL USED FACILITY IN IT, AND WE WANT TO MAKE SURE IT STAYS IN GREAT SHAPE. THAT'S A GREAT POINT, COUNSELOR. I APPRECIATE YOU BRINGING THAT UP BECAUSE I THINK THAT IS THE INTENTION OF SOME OF US AT LEAST MY THINKING AND I THINK WHERE YOU'RE LEANING IS THAT THIS IS A REFERENDUM ON THIS ITEM. AND DOING IT IN THIS MANNER BY PUTTING IT TO A BALLOT GIVES THEM THE FOLKS A CHANCE TO SAY YES OR NO. I THINK THAT WOULD BE A PRETTY STRONG SIGNAL THAT IF THEY DON'T WANT TO ALLOW IT TO BE PAID FOR BY HOTEL TAXES, THEN THEY PROBABLY SHOULDN'T BE DONE AT THAT POINT , UNLESS THERE'S ANOTHER COMMUNICATION WITH THE PUBLIC, BUT I LIKE WHERE YOU'RE GOING WITH THAT THOUGHT, AND I THINK IT'S A GOOD IT'S A GOOD DIRECTION FOR US TO BE IN BECAUSE NONDISCRETIONARY PROJECTS, MEANING ROADS, POLICE SERVICES THAT WE ARE COMMITTED TO DELIVER. WITHIN OUR FRAMEWORK . I THINK WE ARE RESPONSIBLE FOR SAYING WE DO HAVE TO DO THESE [01:05:05] AND SETTING A TAX RATE APPROPRIATE TO COLLECT. THE MONEY IS NECESSARY TO DO THOSE PROJECTS. BUT ANYTHING WE DO OUTSIDE OF THAT. THAT'S NONDISCRETIONARY. THAT IS, DISCRETIONARY, I THINK IS THE TYPE OF THINGS THAT WE NEED A LOT OF ENGAGEMENT ON. AND I DO THINK THIS IS THE BEST POSSIBLE WAY YOU CAN DO THAT IS TO FORMALIZE IT AND GIVE HIM A CHANCE AT THE BALLOT BOX TO SAY IF THIS IS SOMETHING WHAT THEY WANT. SO THANK YOU FOR BRINGING THAT UP, RIGHT? UM STILL HAVE CONCERNS ABOUT A LOT OF THE IFS THAT HAS TO FALL INTO PLACE. GET THIS FUNDED PROPERLY. UM WHAT'S NOT TO SAY A FUTURE COUNCIL OR FUTURE MAYOR WILL HAVE TO RAISE TAXES TO COVER A SHORTFALL. THERE'S A LOT OF WHAT IFS THEY HAVE TO FALL IN LINE. TO GET THIS FUNDED PROPERLY. THAT'S STILL MY ONLY THAT'S ONE OF MY MAIN CONCERNS RIGHT NOW. PROJECT OF THIS MAGNITUDE. I THINK WHAT WAS SAID BEFORE AND THIS THIS IS WHAT GETS ME MORE COMFORTABLE COUNSELORS THAT, UM, THERE'S NO UH THERE'S NO INDICATION THAT WE HAVE TO RAISE TAXES ON ANYBODY BECAUSE CDC, CDC AND THE HOT TAX ARE BOTH OR ALL THREE ARE FLUSH WITH REVENUES THAT ARE UNCOMMITTED. AND SO ANY OF THOSE SOURCES ARE AVAILABLE TO COVER ANY SHORTFALL IF THERE WAS ONE, WHICH IS IN PROJECTED, BUT IT IS SOMETHING THAT WE DO HAVE AVAILABLE A TREMENDOUS AMOUNT OF RESERVES THERE TO DEDICATE TO THE PROJECT IF IT WAS NECESSARY . I DON'T BELIEVE WE'RE GOING TO HAVE TO DIP INTO THOSE BECAUSE I DO THINK THAT THE ADDITIONAL HOTELS THAT WE'RE BRINGING ONLINE AND THE GROWTH IN SALES TAX ACROSS THE TOWN IS GOING TO MORE THAN FUND. THROUGH THESE THREE DEDICATED THINGS. I THINK WE'RE ACTUALLY GONNA END UP WITH A SURPLUS DOWN THE ROAD THAT WILL BE THAT AVAILABLE FOR THAT SINKING FUND. SO I UNDERSTAND YOUR POINT. I DON'T SEE A WAY IN WHICH THERE'S A TAX INCREASE NECESSARY TO COVER THIS. WE'RE NOT AT THE POINT WHERE WE'RE SPENDING EVERY PENNY. THESE ARE DISCRETIONARY FUNDS THAT WE CAN USE FOR THESE PURPOSES, AND THERE'S PLENTY MORE REVENUES COMING FROM WHERE WE'RE SOURCING THESE FROM NO SPEAK ABSOLUTE WORST CASE SCENARIO IT TANKS ALL RIGHT. I MEAN, IT'S I SEE NO WAY THAT THAT'S GOING TO HAPPEN, BUT LET'S SAY IT TANKS. ALRIGHT, LET'S SAY THE TENANT PULLS OUT. WE HAVE NO MORE LEASE INCOME. WE DO HAVE AN ASSET. BUILDING. THAT I SAID, IS. BE WORTH 40 OR $50 MILLION, AND IT CAN BE SOLD. SO THAT IS, YOU KNOW, THERE IS AN EXIT RAMP. IF TIMES WERE TO GET INTO SCRIBBLED INDESCRIBABLY BAD . THERE'S AN EXIT RAMP THERE AS WELL. UM WHAT WE'RE SEEING ACROSS THE SPORTS INDUSTRY WHAT WE'RE SEEING ACROSS THE TRAVEL, SPORTS AND COMPETITIVE SPORTS, EVEN IN RECESSIONS. PEOPLE DON'T PULL THEIR KIDS OUT OF THAT TYPE OF STUFF. THEY STILL SURVIVE. THE ICE RINKS IN DALLAS ACTUALLY HAD RECORD PROFITS IN THE COVID YEARS WHEN EVERYBODY ELSE WAS SITTING HOME AND BUSINESSES WERE SHUTTERING THEIR DOORS. SO THAT THAT'S A VERY POSITIVE THING. AND IN MY EYES, I DON'T I THINK COUNCILOR BLUE RECRUIT SPEAK THIS I DOUBT MANY PEOPLE LEFT KARATE DURING COVID. YEAH, SO THOSE THINGS ARE ALL VERY ENCOURAGING, AND I REALLY APPRECIATE WHAT THE MAYOR SAID THERE BECAUSE WE DO HAVE THESE OTHER FUNDS THAT ARE DISCRETIONARY. EVEN IN THE WORST POSSIBLE YEAR, BASICALLY PAY THE ENTIRE LEASE OURSELVES. SO. I THINK THERE'S A COUPLE OF RISKS INVOLVED, SO I THINK THEY'RE DIFFERENT RISKS AND I THINK YOUR POINTS WELL MADE COUNCILOR THERE'S BUT I WOULD ADDRESS A DIFFERENT ONE. THERE'S ONE IN TERMS OF AN ECONOMIC YOU KNOW, A BROAD SCALE ECONOMIC ISSUE. THAT'S ONE MAYOR PRO TEM IS ADDRESSED. I THINK THE SECOND ONE IS THE RISK OF THE TENANT ITSELF, WHICH I THINK IS MITIGATED BY WHEN WE'RE ABLE TO SHARE TENANT'S NAME AND THEIR SUCCESS IN THIS AREA. I THINK THAT WILL HELP MITIGATE SOME OF THAT CONCERN. I ALSO THINK THAT WE SHOULD POINT OUT THAT THERE WERE MULTIPLE ENTITIES BIDDING FOR THIS PROJECT. AND SO IN THE CASE WHERE THERE'S ONE ENTITY THAT DOESN'T DO IT, THERE'S OTHER ENTITIES THAT WANTED TO AND OTHER EVEN TERTIARY ENTITIES THAT MAY WANT TO AND SO FROM AN OPERATOR STANDPOINT, AND THEN THERE WAS THE OPTION FOR US WHEN WE FIRST STARTED LOOKING AT THE FRAMEWORK TO OPERATE IT OURSELVES, WHICH THERE'S MORE REVENUE FROM THIS FACILITY THAN JUST THE 1.75 THAT THEY'RE PAYING US. THERE'S ALSO A PROFIT MARGIN IN OPERATING COSTS THAT THEY'RE ABSORBING. ON TOP OF THAT. WHERE WE HAD OPERATED OURSELVES WITHOUT AN ENTITY. IT COULD STILL BE DONE. DON'T THINK THAT'S A RECOMMENDED COURSE OF ACTION. BUT I DO THINK THAT THAT'S A POSSIBILITY AND IN ANY EXTREME SITUATION, SO I THINK THAT THAT ADDRESSES A DIFFERENT TYPE OF RISK. I DO THINK THAT WE'RE AT A PRETTY PRETTY HIGH POINT IN TERMS OF INTEREST RATES AND SO THIS COST, ACTUALLY WHAT WE'RE ABSORBING HERE. IS SOMETHING THAT HOPEFULLY WE HAVE THE OPPORTUNITY TO REFINANCE IN THE FUTURE. AND THERE IS THE POSSIBILITY OF PAYING DOWN WITH [01:10:02] ADDITIONAL ECONOMIC E. D. C. C. D. C DOLLARS IF THE HOTEL TAX COMES IN AS STRONG AS WE EXPECTED TO HAVE GOT ADDITIONAL OPPORTUNITY TO PAY DOWN INSTEAD OF BUILDING THE SINKING FUND EARLY I THINK WE HAVE OPPORTUNITY TO STRUCTURE THE DEBT IN SUCH A WAY THAT ARE REALLY ON THE PAYMENTS ARE LOWER TO GIVE US A LITTLE BIT MORE COMFORT. I THINK THERE'S A TERMINUS MATTER OF STRUCTURING THAT WE STILL OF COURSE, NEED TO SEE IN TERMS OF HOW WE'RE GOING TO FINE TUNE IT AS WE GET CLOSER , BUT THE ONLY THING AT THIS POINT THAT REALLY IS THE BIG QUESTION FOR ME IS WHAT DO THE VOTERS WANT? AND THAT'S WHAT I WANT TO HEAR FROM, BECAUSE IF THEY'RE NOT INTERESTED IN THIS I DON'T THINK ANY OF THE REST OF IT MATTERS. I DON'T I DON'T THINK I'M AND SUPPORT OF IT IF THEY DON'T THAT'S MY TAKE. HOW EXACTLY ARE THOSE THREE THINGS ON THE BALLOT WORDED? OR IS IT ACTUALLY FIVE THINGS ON THE BALLOT? FOUR THINGS. OKAY? YEAH. SO ONE OF SIMILAR TO WHAT YOU SEE IN THE POSTING. UM THE ORDINANCES IN YOUR PACKET. I MEAN, IT'S PRETTY DENSE. THE STATUTE REQUIRES CERTAIN LANGUAGE TO BE IN THERE, AND IT'S VERY SIMILAR TO WHAT'S ON YOUR AGENDA, POSTING. I ASSUME THEY'RE ALL 11 MEASURE. IT'S NOT FOR MEASURES ONE BIG. YES, IT'S FOR OR AGAINST THIS WHOLE THING . OKAY, SO THIS IS WHAT THE VOTERS WILL SEE ONE ITEM AUTHORIZING THE TOWN IN NORTH TEXAS TO PROVIDE FOR THE PLANNING, ACQUISITION, ESTABLISHMENT DEVELOPMENT, CONSTRUCTION, LEASING AND FINANCING OF A NEW MULTIPURPOSE SPORTS VENUE PROJECT. AND TO DESIGNATE THE SPORTS VENUE PROJECT AS A SPORTS AND COMMUNITY VENUE PROJECT AND IMPOSE AN ADDITIONAL 2% HOTEL OCCUPANCY TAX WITHIN THE TOWN OF NORTH LAKE AND AUTHORIZED THE USE OF 1/8 CENT OF EXISTING SALES TAX LEVIED BY THE TOWN OF NORTH LAKE ECONOMIC DEVELOPMENT CORPORATION AND AUTHORIZED THE 1/8 CENT OF EXISTING SALES TAX LIVING BY THE TOWN OF NORTH LAKE COMMUNITY DEVELOPMENT CORPORATION FOR THE PURPOSE OF FINANCING THE SPORTS VENUE PROJECT, WHICH IS IF THIS PROPOSITION IS NOT APPROVED, SHALL REDEDICATE THE 18 CENTS OF EXISTING SALES TAX TO THE NORTH LAKE ECONOMIC DEVELOPMENT CORPORATION AND THE 18 CENTS OF EXISTING SALES TAX WITH THE NORTH LAKE COMMUNITY DEVELOPMENT CORPORATION, RESPECTIVELY, IF APPROVED THE MAXIMUM HOTEL OCCUPANCY TAX THOSE FROM ALL SOURCES. IN THE TOWN. NORTH LAKE WOULD BE 15% 9% FROM THE TOWN OF THIS PROPOSITION IS APPROVED AND 6% FROM THE STATE OF THE PRICE PAID FOR A ROOM IN A HOTEL PURSUANT TO APPLICABLE LAW. THANK YOU, MR HORTON. I DO THINK THAT THIS IS BETTER LANGUAGE THAN THAN SOME BALLOT INITIATIVES. THAT ONE'S PRETTY CLEAR THAT IT'S LONG, BUT IT'S CLEAR BOND FOR THE SCHOOL AGREED. COUNSELORS. HAVE YOU ALL HAD TO SAY. ALL RIGHT. LET'S UH I'LL ENTERTAIN MOTIONS. MAKE A MOTION TO PUT THIS ON THE BALLOT. ALRIGHT, WE HAVE EMOTION. NO. SECOND TONIGHT. BIG LET'S OPEN THE VOTING. GOOD NIGHT. MISSING. ONE MORE, GET THEM. GOT IT. OKAY, SIX AND ONE. THANK YOU VERY MUCH. ALRIGHT ITEMS SEE ON THE AGENDA [5.C. Consider an Ordinance of the Town of Northlake, Texas, providing for the annexation of approximately 6.533 acres of land situated in the Patrick Rock Survey, Abstract No. 1063, generally located on the north side of FM 407 approximately 1,200 feet west of Thompson Road. Northlake Land Development Partners, LLC, and Northlake MOB Development Partners, are the owners/applicants. Case # ANX-22- 004] TONIGHT AN ORDINANCE PROVIDING FOR ANNEXATION OF 6.5 ACRES OF LAND OFF OF 407 WEST OF THOMPSON ROAD. WE'RE GOING TO HAVE A PUBLIC HEARING. DO WE WANT TO TALK ABOUT IT FIRST, AND THEN I'LL DESCRIBE IT VERY BRIEFLY. NATHAN HAS STREPTOCOCCUS AND IMPETIGO. SO HE WON'T BE HERE TONIGHT. AND SO I'M GONNA FILL IN HOPEFULLY, I SAID THOSE RIGHT DOCTOR SESSIONS. OKAY, CLOSE ENOUGH. UH SO THIS IS PART OF THE DEVELOPMENT AGREEMENT. THIS IS A, UM UM, A RETAIL AREA. UM. THEY'RE GOING TO DO A RETAIL CENTER AT THE FRONT ON THE FRONT OF YOUR 407. ACTUALLY THEY REMEMBER, THEY KIND OF OPEN IT UP AND YOU CAN SEE THE BACK INITIALLY. THIS WILL BE SEPTIC SYSTEM, BUT PART OF THAT AGREEMENT WAS THAT THEY WOULD ANNEX AND SO THIS IS THE THIS STEPS AND THAT THEY'RE JUST FOLLOWING THAT DEVELOPMENT AGREEMENT, AND THIS FOLLOWS THE COUNCIL'S STRATEGIC GOAL TO ANNEX AREAS IN THE TJ. OR ANYTHING ELSE FURTHER ON THAT [01:15:01] COUNCIL, YOU HAVE ANYTHING ON THAT. BEFORE WE CALL THE PUBLIC HEARING. GO AHEAD. AND ULTIMATELY, THEY WILL GO ON THE SEWER SYSTEM. YES, SIR. ALRIGHT 6:45 P.M. LET'S OPEN THE PUBLIC HEARING. IS THERE ANYONE WHO WISHES TO SPEAK TONIGHT? JUST WAVE AT ME AND COME ON UP. ALRIGHT SAYING NONE WILL CLOSE THE PUBLIC HEARING AT 6 45 PM WILL MOVE TO ACTION ON THIS ITEM. IS THERE A MOTION. A MOTION TO APPROVE BY COUNCILOR GANS. I HAVE A SECOND BY COUNCILOR SESSIONS. FEEL FREE TO VOTE, GENTLEMEN. UNANIMOUS. THANK YOU. ITEM D CONSIDERING [5.D. Consider an Ordinance of the Town of Northlake, Texas, amending the Code of Ordinances and Appendix "A"; Special Events Fees (A3.002), and Water and Sewer Sanitary Services Fee (A4.001) (a) & (b); effective January 27, 2023] AUDIENCE IN TOWN IN NORTH LAKE TO AMEND THE SPECIAL EVENTS, FEES, WATER AND SEWER, SANITARY SERVICES FEES, EFFECTIVE JANUARY 27TH. SO THESE ARE POLICE AND PUBLIC WORKS, BUT WE'RE GONNA MAKE JOHN DOING IT. ALRIGHT VERY COUNCIL FEEDING STICK WITH ME FOR A FEW MORE FINANCE NUMBERS. SO UPDATING YOUR FEET SCHEDULE IS A PRETTY ROUTINE PROCESS. WE SHOULD LOOK AT OUR SCHEDULE EACH YEAR. MAKE SURE THAT WE REMAIN COMPETITIVE WITH OUR SERVICES AND THAT WE'RE NOT PAYING FOR THINGS THAT ARE NOT RECOUPING THEIR COSTS IN CERTAIN AREAS. SO THERE'S ARE A FEW SELECTED FEES THAT WE REALLY NEEDED TO LOOK AT. WHEN WE LOOK AT OUR FEE SCHEDULE THIS YEAR. SO THE SPECIAL EVENTS FEE IN PUBLIC SAFETY, SO CURRENTLY WE CHARGE $35 PER HOUR PER POLICE OFFICER. WE'RE PROPOSING THE INCREASED THAT OF $50 PER HOUR BECAUSE THE PRICE OF POLICE OFFICERS HAS CHANGED. ALSO WITH A FOUR HOUR MINIMUM, WE'RE ALSO GOING TO CHARGE $75 PER HOUR. IF WE HAVE A POLICE OFFICER OUT THERE DOING TRAFFIC CONTROL BECAUSE WE DO NEED A VEHICLE OUT THERE AS WELL. AND THAT'S IN DANGER, USUALLY RUNNING TRAFFIC CONTROL SO THAT COVERS JUST EXTRA LIABILITY AND RISK OF THAT THAT ALSO HAS A FOUR HOUR MINIMUM. YOU GUYS DON'T HAVE ANY QUESTIONS OVER THIS. I'M GOING TO GO OVER TO THE NEXT CITY. ALRIGHT CARRY ON CURRENT ONE IS A WATER TAP METER FEED. SO THIS IS ONE. THIS IS PUBLIC WORKS FEE . WE SHOULD PROBABLY JUST CALL US THE WATER TAP FOR YOU, RIGHT ? YES WATER TAP WATER TAPS WHERE YOU TEASE IN. IT'S NOT THE T INITIALLY, BUT IT'S THE EQUIPMENT THAT GOES AROUND IT. AND SO IT'S THE INTERSECTION OF THAT WITH THE WATERLINE. AND SO THIS IS INCREASING THE COST BECAUSE THE MARKET COST OF BUYING THAT INTERSECTION HAVE CHANGED, AND SO IT'S CALLED A TAP SADDLE. I'VE LEARNED SOME NEW TERMS HERE LATELY, BUT IT'S A TAP SADDLE, AND SO THERE'S SOME EQUIPMENT AND THEY GO IN THERE, AND IT'S ALSO WITH A BOX AND SO THREE QUARTERS INCH AND A ONE INCH ARE BASICALLY THE SAME PIECE OF EQUIPMENT AND THAT HAS GONE UP FROM 1100 ABOUT $2500 FOR US, AND SO THIS ENSURES THAT WE RECOUPING THAT COST AND THEN WE DON'T SET VERY MANY OF THESE , BUT ANYTHING 1.5 INCHES AND ABOVE USUALLY DEVELOPERS OR WHOEVER. COMES OUT AND SETS THEIR OWN AND PAYS FOR THAT, AND THEN WE GO AND INSPECT IT. SO BUT IT'S ON WANTS US TO DO THAT WORK. IT'S SPECIALLY EQUIPMENT AND WE'RE JUST GOING TO CHARGE THEM. WHATEVER THE MARKET RATE IS FOR ALL OF THAT COSTS, SO THESE ARE JUST SMALL CHANGES IN HERE. UM YOU GUYS HAVE ANY QUESTIONS ABOUT THIS? YES, SIR. SO THAT'S BASICALLY THERE'S NOT A BLACK BOX IN THE GROUND ALREADY. THAT'S A NEW BLACK BOX IN THE GROUND WITH ALL THE ASSOCIATED CONNECTIONS. YES. SO YOU SAID. THIS IS A MARKET RATE. SO THIS IS WHAT'S TYPICALLY CHARGED IN THE MARKET OR THIS IS COST RECOVERY FOR US RECOVERY. SO THIS IS WHAT THE MARKETS LIKE. THIS IS HOW MUCH IT'S COSTING US NOW TO DATE VERSUS THE LAST TIME WE HAD, UM, SINCE THE FEE SCHEDULE HAS BEEN LAST YEAR, COVERS OUR STAFF TIME TOO, BECAUSE THIS IS THIS IS PART OF OUR UTILITY FUND. IT'S SUPPOSED TO BE COVERING OUR COSTS. UNDERSTOOD SO MY UNDERSTANDING IS WE DON'T DO A LOT OF THESE, AND MOST OF THESE ARE SET BY THE DEVELOPERS. THEY BUILD OUT HOMES, AND THEY'VE GOT THEIR OWN PLUMBERS AND PIPEFITTERS AND ALL THAT KIND OF IF WE DISCHARGE THEM FOR INSPECTING IT. YEAH. SO THE LAST FEES THAT WE ARE WHEN WE DO. THIS IS FEES THAT SPECIFICALLY WE CHARGE AND THIS IS ABOUT RECOVERING OUR TIME. SO ONE OF THE ISSUES THAT WE'VE HAD IN THE PAST COUPLE YEARS LIKE EVERYONE KNOWS ABOUT THE COFFEE SO YOU CAN CALL IT ONCE A YEAR FOR A REREAD SOMEONE WILL COME OUT TO YOUR METER RE READ IT AND GO AND SAY, HEY, YOU KNOW, HERE'S YOUR CURRENT READ. HERE'S YOUR LISTING OF THAT REPORT. WELL THE OTHER TIMES THAT WE GET CALLED OUT TO GO DO SOMETHING IS TO GO OUT AND INSTALL A METER. AND MANY OF THE TIMES IT'S A BUILDER, CALLING US OUT IN THE METER METER BOXES COMPLETELY BURIED. WE CAN'T GET TO IT TO INSTALL ANYTHING. WE HAVEN'T BEEN CHARGING THEM FOR THE EXTRA TIME IT TAKES TO KEEP COMING OUT THERE AND REDOING IT. SOMETIMES THIS IS 234 TIMES TO GO OUT BECAUSE THEIR SITES VERY DIRTY. THAT WE WERE GOING TO RECEIVE $50 FOR THAT FOR THE BERRY METER FEE, SO THEY'RE COMING OUT AND WASTING OUR TIME. WE'RE GOING TO CHARGE THEM THE EARLY OF COMING OUT. HEY, THIS IS NOT GOOD. EVERY TIME THEY MAKE US COME OUT. WE WANT TO MAKE SURE WE CHARGE THEM FOR THIS. ALSO WE WERE CHARGING $25 FOR A REDUCED FEE. THE COST OF OUR EMPLOYEES THE COST OF OUR EQUIPMENT, EVERYTHING. IT WAS GONE UP THERE. AND SO WE WANT TO [01:20:03] INCREASE THE 50. SINCE I'VE BEEN HERE. WE HAVE NOT CHARGED ANYONE. THIS $50 FEE FOR REREAD FEED, BECAUSE MOST TIME WE WORK WITH PEOPLE, WE RARELY CHARGED RESIDENTS THIS, BUT IT'S THE BUILDERS THAT WILL TAKE ADVANTAGE OF STAFF TIME. JUST BECAUSE THEY DON'T THEY'RE SAYING YEAH, WE WANT TO. WE WANT THIS GIRL. WE WANT THIS PROJECT TO MOVE FORWARD. WHILE THEY HAVEN'T GONE OUT AND ACTUALLY SEEING THAT IT'S WE CAN ACTUALLY PUT ANYTHING THERE BECAUSE THEY'VE COMPLETELY COVERED IT UP WHEN THEY GRADED THE ENTIRE SITE. FOR LANDSCAPING. SO THIS IS KIND OF A MARKET ADJUSTMENTS. THERE'S TWO OTHER FEES. THESE WE HAVE BEEN CHARGING, BUT WE NEED TO PUT THEM IN OUR ORDINANCE TO ACTUALLY CHARGE AND SO THEY'RE JUST LOWER AMENDMENTS TO IT. BUT IT'S A LOST METER FEED, SO NORMALLY WE RECOVER THIS COST. THIS HAPPENS WITH FIRE HYDRANT METERS SO CONSTRUCTION METERS THEY SAY, HEY, WE'VE COMPLETELY LOST IT. AND SO WE HAVE NO READING HISTORY. WE HAVE NO IDEA OF HOW MUCH WATER THEY USED. ALL WE HAVE IS A $3000 DEPOSITS, AND WE CAN ESTIMATE THEIR WATER BASED ON WHAT READS. THEY TURNED IN. WE HAVEN'T BEEN CHARGING HIM FOR THE COST OF METER, SO ONE OF THE THINGS THAT I WANT TO DO IS MAKE SURE THAT WE RECOVER THE COST THE METER AND WE'RE GOING TO GET ALL ANYTHING THAT WE PAID IN WATER OUT FROM THAT. SO THIS HAPPENS SOMETIMES, AND SO WE WANT TO BE ABLE TO CHARGE AS MUCH AS POSSIBLE THEM BECAUSE IT'S VERY HARD TO KNOW EXACTLY HOW MUCH THEY USED, THE THINGS GONE, AND IT'S GETTING HARDER AND HARDER TO GET THESE AND REPLACE THESE AND SO THE COST OF THESE IS GOING UP, AND SO I WANT TO BE ABLE TO CHARGE THEM THE REPLACEMENT COST OF THE METER BECAUSE THAT'S ONE LESS PERSON WE CAN HAND THOSE OUT TO THE LAST ONE IS A DAMAGED PROPERTY FEE. WE HAVE BEEN CHARGING THIS WHEN PEOPLE GO OUT AND DAMAGE METER BOXES. THEY DAMAGE THE ENDPOINTS AT ALL OF THOSE THINGS THAT HAPPENS MOSTLY WITH BUILDERS WHEN THEY'RE COMING IN, AND THEY GO BURY METER BOX. OH, WAIT. WE CRUSHED IT BECAUSE WE RAN OUR LITTLE BOBCAT OVER IT. SO THAT'S WHEN THEY DAMAGE THE ENTIRE PROPERTY. WE HAVE TO GO AND REPLACE IT. WE WANT TO BE ABLE IN ACCORDANCE TO SAY YES, HERE'S POINT TO WHERE WE SAY YES, WE'RE GOING TO CHARGE YOU FOR THE COST OF REPLACING OUR EQUIPMENT. HAVE ANY QUESTIONS? SOME OF THESE ARE JUST LITTLE THINGS, BUT MOST OF THIS IS TARGETED BUILDERS AND RECOUPING THE COST FOR OUR TIME AND EQUIPMENT. ALRIGHT I'M GLAD YOU'RE ON TOP OF THAT. APPRECIATE THAT. WE'RE PUSHING BUTTONS. YOU WANT TO MAKE A MOTION? ALRIGHT OKAY. ALRIGHT COUNSELOR SESSIONS MAKES THE MOTION SECONDED BY PRINT. BRIAN MONTINIPNI. I'M ASSUMING YOU'RE EMOTIONALLY TO APPROVE. OKAY? WE HAVE A MOTION TO APPROVE SECONDED BY THE MAYOR PRO TEM ALL THOSE IN FAVOR OR OPPOSED VOTE AS YOU WILL. ALRIGHT, UNANIMOUS. THANK YOU. ALL RIGHT . WE HAVE ONE MORE ITEM ON THE AGENDA THIS EVENING RESOLUTION [5.E. Consider a Resolution of the Town of Northlake, Texas, awarding BI D 22-06 and authorizing the Town Manager to execute an agreement/contract with Ed Bell Construction Company for reconstruction of Cleveland Gibbs south, in an amount not to exceed $5,649,214.35 (Part 1 of 2)] TOWN, NORTHLAKE, AWARDING BID NUMBER 22-6 AND AUTHORIZING TOWN MANAGER EXECUTED AGREEMENT WITH ED BELL CONSTRUCTION COMPANY FOR RECONSTRUCTION. CLEVELAND GIVES SOUTH MOUNTAIN NOT TO PROCEED 5.6 MILLION AND CHANGE. MR CORN YOU HAVE SUMMARY OR HISTORY FOR US. YES, SIR. THIS IS, UH THIS PROJECT IS BEEN WITH US FOR MANY YEARS NOW WE WENT THROUGH THE EMINENT DOMAIN PROCESS. THE COUNTY ACTUALLY TOOK THAT, UH, FOR US. THIS WAS UNDER AN INTER LOCAL COOPERATION AGREEMENT. I BELIEVE THE ORIGINAL FUNDING WAS 2.9 MILLION. THEY INCREASED IT TO 4.6 MILLION. WE HAVE, UM, HAVE AN ASSOCIATES HAS THIS DESIGN? IT WAS BID. WE HAD SIX SEALED BIDS, WHICH IN THIS CURRENT MARKET VERY FAVORABLE, AND WE GOT THE BID IN NOW WE'VE ALREADY SPENT. ABOUT 300,000 ON DESIGN FEES, WHICH IS, YOU KNOW, THE APPROPRIATE AMOUNT FOR THAT. UM AND SO WE'RE. WITH THIS BID. WE'RE ALL IN IT. 5.9. WE ONLY HAVE 4.6 FROM THE COUNTY. THIS DOESN'T COUNT THE RODEWAY IMPACT FEE CREDIT. WE GAVE THE EWING PROPERTY, THE INSTANCES OF PROPERTY AND THE ADDITIONAL AMOUNT WE PAID. I BELIEVE IT'S 300. 1000 OR SO FOR THE COURT AWARD FOR THE COUNTY WENT THROUGH THE EMINENT DOMAIN. SO WE'RE. ALL IN. WE'RE WE'RE A MILLION THREE SHORT. UM SO. YOU KNOW, I'M PROBLEM SOLVING, TRYING TO FIGURE OUT A WAY TO MAKE THIS GAP I HAVE I HAVE SOME SOME OPTIONS FOR YOU. BUT YOU'RE BEFORE YOU LIKE YOUR COUNSEL. MEMO SAYS YOU'RE WELCOME TO REJECT THIS. THIS WAS TWO WEEKS AGO AND YOU ASKED FOR MORE TIME. UM WE ARE STILL WORKING WITH THE COUNTY. WE DON'T. WE HAVEN'T IDENTIFIED THE 1.3 FROM THE COUNTY YET. WE SO, UM, KINDA [01:25:04] SALAT UP HERE BUT MOVING SOME MONEY AROUND. WE UM AND MAKING SURE WE CAN CONTINUE TO DO THE THOUGHT PROJECT. THAT WAS A PRIORITY OF THE COUNCIL IN A IN A PARTNERSHIP. UM IN A SENSE OR WHAT? WE'RE WHAT THIS DOES, IS IT? UM. GETS THE ADDITIONAL 1.3 FROM FUTURE, UM, BOND ISSUANCE FROM THE TOWN. AND WE WILL BE. WE HAVE PLENTY OF CASH TO CASH FLOW THIS IF THAT'S WHAT THE COUNCIL DECIDES TO DO. SO, UM UM . AND WE WANT IF YOU WANT TO. UM IF YOU WANT TO AWARD THE BID UM, WE WILL NEED TO GET THAT FUNDING IN THE FUTURE DEBT ISSUANCE, BUT WE'LL HAVE TIME TO DO THAT. OR YOU CAN REJECT THE BID IS THAT YEAH. FAIR WAY TO THROW IT RIGHT DOWN THE MIDDLE, OKAY? DID. THE PEOPLE ON FAULT ROAD, DECIDE THEY WANT THE PROJECT. UH ON FORT ROAD. FLORENCE NORTH. OKAY I'M SORRY ON FLORENCE. IT'S NOT REALLY ON THE AGENDA. I DO HAVE THIS OR YOU'RE TALKING ABOUT WHERE YOU COULD GET MONEY, RIGHT ? RIGHT. SO WE ARE REPROGRAMMING THE FLORENCE NORTH MONEY TO THE THOUGHT PROJECT. BUT WE'RE REALLY TALKING ABOUT THE CLEVELAND GIBBS AND THAT'S GOING TO BE FUTURE MONEY. BUT I WANTED TO SHOW YOU THAT. WHERE WE'RE COVERING. WE'VE WE'VE GOT A PLAN FOR THE THOUGHT PROJECT. AND YES, THE FLORENCE PROJECT HAS BEEN PAUSED. BECAUSE WE HAVE NOT RECEIVED ANY RIGHT AWAY FROM FROM THE THOSE PROPERTY OWNERS. ALRIGHT COUNSEL. I'M GONNA ADD A LITTLE BIT MORE UNLESS YOU'VE GOT SOMETHING TO JUMP IN WITH. SO IN NEGOTIATION WITH THE COUNTY AT THIS MOMENT THAT THEY ARE, THERE APPEARED TO BE PRETTY FIRM ON NOT ADDING ANY MORE MONEY TO THIS PROJECT. THE COST OF ESCALATIONS ARE STICKER SHOCK THAT I'M NOT HAPPY WITH IT ALL. UM AND SO WE'VE GOT A COUPLE A COUPLE OF THINGS THAT WE NEED TO CONSIDER HERE. ONE WE NEED TO CONSIDER THIS PROJECT IS IN THE BEST INTERESTS OF THE TOWN. UM MOST OF THE AIRPORT. SUBSTANTIAL PORTION OF THE AIRPORT IS IN THE T. J. AND THAT'S PRIMARILY WHY THE COUNTY, YOU KNOW, STEP FORWARD TO RUN THIS PROJECT. IN TERMS OF BRINGING THE MONEY. WE HAVE, UH, YOU KNOW, A POTENTIAL INDUSTRIAL PROJECT DOWN BY THE AIRPORT, WHICH GUT THE FIRST. DEVELOPER BACKED OUT OF THAT ONE AND ANOTHER DEVELOPER, HAS PICKED IT UP WITH THE SAME PROJECT UNDER THE SAME TERMS THAT WERE NEGOTIATED TO THAT POINT. BUT THAT DOESN'T INCLUDE THIS PARTICULAR ROADWAY, SO THAT PROJECT IS SOMEWHAT DEPENDENT ON THIS, BUT THEIR TIMEFRAME IS STILL TBD. SO WE HAVE. WE MIGHT POTENTIALLY HAVE SOME TIME THERE. BUT THIS COULD. IF WE FORGO THIS, IT COULD HAVE SOME IMPACT OF THAT, IN TERMS OF IF THEY HAD DECIDED TO MOVE QUICKER , WE HAVE AN OBLIGATION TO THINK ABOUT THE ENTIRE AREA AROUND THE AIRPORT. ARE WE OPEN? ARE WE PREPARED TO START OPENING UP? THAT BECAUSE YOU DO THIS PROJECT, THERE'LL BE ANOTHER ONE AFTER IT AND SO ON AND SO FORTH, AND WE DO HAVE A LOT OF TIED UP ACROSS THE ACROSS THE STREET THERE IN THE CATHERINE BRANCH. UM WE HAVE THE MONEY ITSELF. UH, WELL, WE CAN CASH FLOW THINGS. WE'RE AT A POINT WHERE WE HAVE TO START THINKING ABOUT WELL. IS THIS CART BEFORE THE HORSE ARE WE DOING? WANT TO, UM, EVALUATE WHERE WE STAND WHEN WE COME TO THE NEXT BUDGET CYCLE. IN ORDER TO PLAN IN THAT BUDGET CYCLE FOR THE PROJECTS WE WANT TO TACKLE WHICH THINGS COULD CHANGE BETWEEN NOW AND THEN. IT'S ONLY SIX MONTHS AWAY AND TERMS OF ROADS. IT'S NOT A THAT'S NOT A VERY LONG TIME WE'VE BEEN TALKING. I FEEL LIKE WE'VE BEEN TALKING ABOUT FLORENCE AND FOUGHT FOR TWO YEARS ALREADY SINCE WE STARTED PUTTING SOME MONEY TO IT. LEAST IN TERMS OF WHEN WE STARTED TALKING ABOUT IT, AT LEAST UM THEN, SO, AS I SAID, THE COUNTY IS PRETTY MUCH LIKE THEY THEY'VE THEY'VE GIVEN THE MONEY THAT THEY INTEND TO GIVE. WE'VE GOT A COUPLE OTHER THINGS HERE. IT'S NOT CLEAR TO ME WHETHER THIS PRICE POINT IS GOING TO HOLD. UM THERE IS A TREMENDOUS AMOUNT OF COMPETITION. IN THE MARKET RIGHT NOW. WHICH HAS PUSHED UP PRICES DRAMATICALLY. UM I'M NOT SURE I'M CONFIDENT THAT THEY'RE GOING TO COME BACK DOWN. BUT THERE IS SOME TALK OF THAT. AS A POTENTIAL POSSIBILITY, BUT I'M NOT SU A I DON'T KNOW IF THAT'S A MAJORITY OPINION, UM, INTEREST RATES AS WELL, SOMETHING THAT IT CONSIDERED IF WE'RE GOING TO BE BORROWING MONEY THAN WHAT WILL INTEREST RATES DUE IN THE NEXT YEAR OR TWO? SO I THINK WE HAVE A TIMING [01:30:01] TO CONSIDER. WE HAVE FINANCES TO CONSIDER THE MONEY. THE 4.6 IS IN ESCROW. AS LONG AS WE MAINTAIN OUR I C A. IT IS AVAILABLE TO US AT A FUTURE TIME, BUT NOT TOO DISTANT FUTURE. SO I THINK YOU'VE GOT A COUPLE A COUPLE OPTIONS IN FRONT OF YOU. ONE IS YOU CAN WE CAN HAVE STAFFS GROUND AROUND AND FIND THE 1.3 MILLION AND THAT WILL START TO LIMIT THE PROJECTS FOR NEXT YEAR. ALTHOUGH YOU'VE YOU'VE YOU KNOW THE STAFF OF PLANNED OUT A THE BOND PARTNERSHIP MONEY WITH THE COUNTY FOR THE NEXT COUPLE OF YEARS, SO YOU COULD DRAW ON THAT THAT IS ALREADY COMMITTED FROM THE COUNTY SIDE SO WE CAN START . YOU KNOW, PUTTING SOME MONEY AGAINST THAT? WE'VE ALREADY GOT THAT ALLOCATION READY FOR THE NEXT COUPLE OF YEARS. BUT THEN AGAIN, I MEAN, IT ISN'T OUR NUMBER ONE PRIORITY. I MEAN, CLEARLY, WE'VE MADE THAT POINT THAT YOU KNOW, FOUGHT FLORENCE. FEW OTHER ROADWAYS MIGHT COME ABOVE THIS ONE. BUT IT'S ALSO IMPORTANT FOR US TO REMEMBER THAT WHEN SOMEONE ELSE STEPS FORWARD WITH THE MONEY, IT'S NOT NECESSARILY GOING TO BE THERE IN THE FUTURE. IN THIS CASE, THE MONEY IS LOCKED IN FOR THIS PROJECT. FOR A LITTLE WHILE. AT LEAST THE I C IS IN PLACE, BUT THERE'S I DON'T THINK IT'S A INTERMINABLE THING. DO WE HAVE AN ACTUAL TIMELINE ON THAT? NO. IT'S JUST HOLDING THEIR UNTIL IT'S NOT IT'S AN IT'S AN ESCROW , SO AS LONG AS I SEE A EXISTED TECHNICALLY EXIST, BUT IF WE DON'T FINISH THIS PROJECT AND MOVE IT FORWARD, I THINK WE START TO MOVE INTO THE REALM OF BEING A LITTLE ANTAGONISTIC WITH OUR RELATIONSHIP WITH THE COUNTY AND NOT KIND OF PULLING OUR WEIGHT. AND SO I THINK WE HAVE AN OBLIGATION TO SORT OF FIGURE OUT IF THIS PROJECT IS A PRIORITY. I'LL ADD ONE MORE THING, WHICH WHICH TWO MORE THINGS WHICH ARE WRINKLES. ONE IS IF WE'RE GOING TO ACCEPT THE BID, YOU KIND OF HAVE TO ACCEPT THE BID AND GO FORWARD WITH IT RIGHT NOW. WE CAN'T REALLY DRAG THAT OUT FOR MUCH LONGER AND DON'T REALLY HAVE TO JUSTIFICATION TO DRAG IT OUT MUCH FURTHER. I DO HAVE A MEETING COMING UP WITH THE AIRPORT ON A WHOLE SLEW OF ISSUES THAT THEY WANT TO TALK TO US ABOUT THEIR EXCITED TO TALK TO US ALL THE DEVELOPMENT PROJECTS IN THE AREA. ALL THE ROAD PROJECTS, THE ENCORE TRANSMISSION PROJECT AND SO ON AND SO FORTH. IT WILL BE EXPECTING A LENGTHY MEETING WITH THEIR BOARD. WE'RE TRYING TO GET THAT SCHEDULED IN TWO OR THREE WEEKS. AND I WANT TO KNOW FROM MORE OF THEM ABOUT THIS PROJECT AND THEIR APPETITE FOR I KNOW THAT THEY WANT THE PROJECT. AS A WHOLE. BUT THE INDIVIDUAL PROPERTY OWNERS THAT ARE ON THAT WEST SIDE AND IT'S BEEN A COUPLE OF HOURS THIS WEEK OUT THERE, SURVEYING THE SITE, THEY ARE CONCERNED ABOUT IMPACT. HELLA POD DID DID RELAY THOSE CONCERNS ABOUT THE FOOTPRINT OF THE ROAD? THIS IS THE WEST LANES OF THE EVENTUAL FOUR LANES. THAT WOULD BE BUILT SO THEY WOULD STILL HAVE A FAIR AMOUNT OF SPACE LEFT , WHICH WOULD BE COMMENSURATE OF WHAT THEY HAVE. TODAY WE WORKED OUT SOME DETAILS ON THE CONTRACT BEING INCLUDING FENCING TO MAKE SURE THAT EXISTING FENCE WOULD REMAIN WHEN IN FACT, BE SPLIT WOULD BE OFFENSE ON EITHER SIDE OF THE ROAD FOR BOTH PROPERTY OWNERS THAT'S INCLUSIVE IN THIS PROJECT, JUST BARBED WIRE BUT VERY CHEAP SOLUTION, BUT IT IS WHAT'S THERE TODAY? SO WE HAVE TAKEN CARE OF A FEW THINGS WITH REGARD TO THE CONVERSATION WITH THEM. BUT THAT CONVERSATION IS STILL UPCOMING. SO THAT'S ANOTHER LITTLE LITTLE TIDBIT. I'M NOT SURE THAT THAT REALLY WARRANTS ON THE BASIS OF THAT MEETING. I DON'T THINK IT WARRANTS LIKE JUST CUTTING THE PROGRAM AND TO HAVE THAT MEETING, BUT IT'S JUST ONE OTHER LITTLE PIECE INFORMATION REGARDING THIS. SO I ENDED. OPEN UP TO Y'ALL GET YOU SOME REACTIONS TO WHAT I JUST SAID. ANY PIECE OF IT THAT STANDS OUT TO YOU YOUR THOUGHT PROCESS. UM WHAT DO YOU ALL THINKING? MY FIRST QUESTION WOULD BE HEARD YOU AND DREW BOTH SAY. WE CAN'T TIME IS LIMITED. WHAT IS IT? ARE WE IN A POSITION WE WANT TO PUBLICLY SAY HOW LONG TIME LIMITED. UM AND THEN THE OTHER THING IS, I WOULD SAY THAT WHOEVER MAKES THE PROPOSAL TO VOTE ON THAT IT'S A SOUTH OF 407 OR EXCUSE ME SOUTH OF 11 71. SO IT DOESN'T CONFUSE PEOPLE TO THINK YOURSELF CAN'T SQUARE THEY'RE FINALLY GONNA FIX THAT CORNER. YES THAT'S A DIFFERENT PROJECT, BUT THAT'S THAT'LL BE TAKEN CARE OF SOON. UNDERSTOOD. SO, YES, THIS IS BY THE AIRPORT ONLY. UM SO LET ME ANSWER HIS QUESTION REAL QUICK. THE FIRST ONE WAS ON THE TIMELINE. I WOULD SUGGEST THAT IF WE WERE TALKING ABOUT A TIMELINE OF A DELAY, WE'RE TALKING ABOUT MONEY. THAT'S WE'RE THINKING OF ALLOCATING FROM NEXT YEAR'S BUDGET PROPOSAL FOR A BOND PARTICIPATION WITH THE COUNTY. THAT'S THE SAME POOL OF MONEY WE WOULD BE TALKING ABOUT. ONCE WE GET THROUGH THE BUDGET CYCLE LATER THIS YEAR. I WOULD SUGGEST THAT THIS SAME DECISION WE NEED TO BE MADE. LATE IN THE YEAR AS PART OF THAT BUDGET CYCLE AND NO LATER THAN PART OF THAT BUDGET CYCLE. THE OTHER THING I WOULD JUST POINT OUT IS THAT THE BID IS GONE. SO THIS DOES HAVE TO BE REBID AND WE'RE WE WOULD BE. WE ARE EXPOSED TO THE MARKET. WILL THE MARKET BE SUBSTANTIALLY DIFFERENT IN NINE MONTHS THAN IT [01:35:03] IS TODAY? I THINK IN TWO YEARS MHM THINGS. THERE'S A MUCH BIGGER QUESTION MARK AS TO WHERE THE MARKET WILL BE IN TWO YEARS. VERSUS IN 9 TO 12 MONTHS. WHAT'S YOUR DEADLINE? YOU NEED TO ACCEPT IT OR REJECT IT TONIGHT. THAT WAS MY POINT REBIDDING PROCESS. REBIDDING IS HOW BIG A DEAL SO THE ENGINEERING THAT'S BEEN DONE IS A REUSABLE LOSE ANY OF THE RE ENGINEERING COSTS. I DON'T THINK WE LOSE ANY ENGINEERING WILL HAVE A LITTLE COST. UH TOO BIG TO ADVERTISE AND TO BID TO HOLD A PRE BID AND ANSWER QUESTIONS, BUT IT'LL BE IT'LL BE NOMINAL COMPARED TO THE TOTAL PROJECT COST. THE BRAIN WORKS BEEN DONE. YEAH, MR CORN. YOU SAID WE HAD A $1.3 MILLION SHORTFALL AT THIS POINT. ROUGHLY YES, SIR. AND THEN I HEARD SOMETHING ABOUT THE 300,000. I WASN'T SURE IF WE IF WE ACTUALLY HAVE A CASH SHORTFALL OF A MILLION, OR A MILLION THREE WE HAVE A PROJECT SHORT 4,000,003. WE'VE SPENT 300,001 ENGINEERING . IT'S WE HAVE A COMPLETE ENGINEERING SET. IT WAS BID. SO THAT'S THE THAT'S THE MONEY WE'VE SPENT. SO LET'S JUST SUNK. WE STILL NEED 1.3 MILLION FOR CONSTRUCTION. YES SIR 6.35613. ALRIGHT SO COUNTY HAS PUT UP A LOT OF MONEY. THEY DO WANT THIS PROJECT DONE. IT DOES SERVE THE HENRY PROPERTY POTENTIAL DEVELOPMENT DOWN THERE. THERE'S THREE PROJECTS THAT KIND OF. STOOD UP AT ONE POINT AND TWO OF THEM HAVE TWO OF THEM ARE BACKED OFF AT THIS POINT OR ONE ONCE ONCE ONCE BACKED OFF. THERE'S THIS IT WAS REALLY ONLY ONE LEFT OF THE THREE THAT WE'VE HEARD FROM RECENTLY. OKAY AND IT ALSO FIXES SOME SEVERE SAFETY ISSUES ON THE ROAD. CORRECT AND I'M NOT , AND I JUST THOUGHT OF THIS APOLOGY. I'M NOT SURE WHO'S RESPONSIBLE FOR THE MAINTENANCE OF THE CURRENT ROAD. I KNOW IT'S IN THE WAY THEY'VE DRAWN THE LINES. IT'S IN THE COUNTY. IT'S A STRIP OF COUNTY THAT GOES ALL THE WAY DOWN TO THE AIRPORT. BUT I DON'T KNOW WHETHER NEW PHILOSOPHY OF THE COUNTY AND THE COUNTY COMMISSIONER WHO IS GOING TO BE AM ASSUMING IT'S GOING TO BE THE COUNTY WILL BE RESPONSIBLE. I THINK THEY'VE BEEN DELAYING MAINTENANCE BECAUSE OF THIS POTENTIAL PROJECT, BUT WE MIGHT HAVE TO HAVE A CONVERSATION WITH THE COUNTY ABOUT THAT. AND THIS CREATES THE NEW ALIGNMENT. CORRECT. WE HAVEN'T TALKED ABOUT THE ALIGNMENT, RIGHT? THIS WOULD BE THE S CURVE, AND THAT WOULD ABANDON THE EXISTING RIGHT. SO THERE'S A WHOLE STRETCH OF ROADWAY THAT CURRENTLY GOES RIGHT INTO THE MIDDLE OF THE AIRPORT. THIS WOULD BE MOVING IT OUT OF THE AIRPORT. BE A LOT OF OPPORTUNITY FOR GROWTH IN THAT AREA FOR ANYTHING THAT WANTED TO GROW BECAUSE NOW THERE'S A PIECE OF ROAD THAT IS A FIELD CURRENTLY. YEAH THERE'S A THERE'S A MANY TIMES THAT AIRCRAFT ARE CROSSING RIGHT. THIS PUBLIC ROADWAY. YEAH. THAT WAS THE ONE ARE APPOINTED WANTED TO CONCERN BECAUSE I KNOW THE PEOPLE WHO LIVE DOWN THERE ARE VERY CONCERNED ABOUT THAT SAFETY ASPECTS. SO WE HAVE A TIME ASPECT. WE HAVE A COST ASPECT OF SAFETY ASPECT. THERE'S A LOT OF THINGS TO CONSIDER THERE. I THINK WE YOU KNOW, FROM LISTENING TO OUR CONSULTANT LAST MEETING AND THE AMOUNT OF TIME THAT IT TAKES TO GET THE OPPORTUNITY TO ACTUALLY SPEND THE MONEY TO BUILD A ROAD AND HERE WE HAVE THE OPPORTUNITY TO BUILD A ROAD. LET'S BUILD A ROAD. HOW OFTEN DO WE TRULY GET THAT OPPORTUNITY? HERE IT IS RIGHT IN FRONT OF IT. PHILOSOPHICALLY AGREE. YEAH I WILL TELL YOU THAT. I MOVED FROM BEING ENTHUSIASTIC ABOUT THIS PROJECT, WHICH WAS, YOU KNOW, BORDERLINE OF GIFT BECAUSE IT WAS BEING COMPLETELY COVERED FOR SOME CONTRIBUTION TO ENGINEERING AND RIGHT OF WAY, WHICH WE INHERIT THE ROAD AND THEN THE POTENTIAL EXPANSION OF IT WITH THE PROJECTS, THE ONE PROJECT SLOWING DOWN UM, AND THEN THE GAP AND THEN YOU KNOW NOW WE'RE LOOKING AT, YOU KNOW FUNDING IN THE NEXT YEAR. THE FACT IS THAT EVEN THE PROJECTS WE STARTED FIND FLORENCE. I MEAN, THEY'RE STILL NOT GOING ANYWHERE IN TERMS OF THERAPY AND MOVED AT THIS MOMENT, THE PROJECTS ARE MOVING FORWARD. BUT THEY AT LEAST THIS PART. ALL THE DETAILS WERE WORKED OUT, THOUGH, RIGHT? YES, THE RIGHT OF WAY HAS BEEN CONCLUDED. IT'S BEEN HOW MANY? HOW MANY YEARS HAS JUST BEEN IN RUSSIAN? PROBABLY 45? YEAH TRUE IF WE AWARDED THE BID IF THAT HAPPENED WITH DIRT, START MOVING QUICKLY, OR IS THAT A YEAR OUT TOO? MONTH OR TWO. WE ORIGINALLY HAD A BUSINESS THAT WAS GOING TO MOVE. WEST OF THE AIRPORT. BUT WE DON'T HAVE THAT NOW. WHAT'S THE POSSIBILITY WE'RE GOING TO [01:40:03] GET SOMETHING THERE? UM WE'VE WE'VE RESUMED TALKS, UM, HAD HAD A CHANCE TO GET IT ON THE EXECUTIVE SESSION FOR AN AGREEMENT DEVELOPMENT AGREEMENT AND GO THROUGH THOSE DEAL POINTS WITH YOU. BUT THERE IS A NEW GROUP. IT'S TAKEN OVER FOR DUKE , UM FROM DUKE REALTY THAT IS. MORE OR LESS THE SAME PLAN AS WHAT WAS PRESENTED FOR THAT DO PRESENTED TO THE PUBLIC. SOME MONTHS AGO BEFORE THEY WERE BOUGHT OUT BY PRO LODGES. SO THERE IS THERE IS, UH OFFICIAL NIBBLING AT THE BAIT. DO YOU THINK IT WILL MAKE THEM QUIT LOOKING AT THE BAIT? IF WE DON'T DO THIS, DO NOT. I DO NOT KNOW THAT, UM UM, THEY ARE. YOU KNOW, IN THEIR PERSPECTIVES THEY HAVE COUNTED ON THIS ROAD BEING THERE. BUT, UM, WE HAVEN'T. WE HAVEN'T TALKED ABOUT DEVELOPMENT INCENTIVES, OR, UM. YOU KNOW, UM , ANY BAD STUFF? SO, UM. WHAT'S YOUR GUT FEELING ON THEIR TIMELINE? I KNOW THAT'S A GUESS. BUT AH, THERE'S A WHILE. YEAH. GOVERNMENT. IT'S RARE. YEAH. I WOULD SAY SOMETIME THIS YEAR. THAT THEY WOULD LOOK TO MAKE A DEVELOPMENT AGREEMENT WITH US. SO WHAT I WOULD SAY TO YOU IS THAT PROJECT IS PROBABLY AT THE SAME POINT. IT WAS THE LAST TIME YOU THOUGHT WHICH IS IMMINENT. CONSIDERING THE ROAD. DOES THAT MAKE SENSE THE ROADS NOT THERE. THEN THE PROJECT SEEMS LESS LIKELY. MY THEORY IS THAT THEY WOULD NOT GO FORWARD WITH THAT. THE ROAD WELL, I CAN'T GO FORWARD WITHOUT THE ROAD. BUT IN TERMS OF YOU KNOW HOW THE ROAD COMES. I THINK THAT THE TIMING IS GOING TO BE PRETTY CLOSE TO THIS ROAD. THEY'RE GOING TO NEED IT. SO I'M GOING TO SPIN THIS FORWARD A SECOND. HMM YOU'RE YOU'RE THE ONE THAT STEPPED OUT THERE AND SAID, BUILD A ROAD. SO MY CHALLENGE TO YOU IS WHERE YOU GET THE MONEY? YEAH. YEAH. WELL, THE POINT. SO IT'S UP TO YOU. I MEAN, YOU'VE HEARD THE POSSIBILITY IS THAT YOU? WE CASH FLOW IT UNTIL WE LOOK AT OUR PACKAGE OF ROADS FOR NEXT YEAR. THAT'S THAT'S THE PROPOSAL THAT'S IN FRONT OF YOU, THE STAFF OF FIGURE THAT OUT BASICALLY EXCEPT THE BUDGET AND GO FORWARD WITH IT. IT'S NOT THAT THE CASH ISN'T LAYING AROUND IS THAT WE JUST DON'T ALLOCATE CASH LAYING AROUND WITHOUT A PLAN TO REPLENISH THAT CASH PLAN THAT PUNISHED THE CASH WOULD BE NEEDED ASSESSED TO BE FUNDED AS PART OF NEXT YEAR'S PROGRAM. IT'S A IT'S A SLOPE, WE DON'T NECESSARILY WANT TO START SLIDING DOWN. WE'RE JUST GOING ABOUT THINGS, I GUESS IS THE RIGHT WAY. FOR A NET PROJECT THAT WE'RE FUNDING. YEAH, I'D BE TELLING YOU. HOLD YOUR HORSES FOR A PROJECT THAT HAS THREE QUARTERS OF IT IS SOMEONE ELSE. AND YOU'VE ALREADY GOT THE RIGHT OF WAY. AND YOU'VE GOT A PROJECT THAT WOULD WOULD PAY FOR IT AND SALES IN, UH, EXCUSE ME THAT SALES PROPERTY TAX PAPERWORK THAT SIGNED AND WE DON'T HAVE THAT IN A IN A PRETTY GOOD YOU KNOW, PROJECT PLAN FOR THAT PROJECT, THEN I THINK THAT THAT THAT GIVES YOU THE LONG TERM FINANCIAL BENEFIT AND SAFETY FACTORS AND THE APPROPRIATENESS . THIS IS, BUT THIS IS A LOOK AHEAD PROJECT VERSUS AN IMMEDIATE ONE. IMMEDIATE PROBABLY, YOU KNOW, IN TERMS OF A YEAR THAT'S PROBABLY IMMEDIATE IN TERMS OF ROADS IS WAIT UNTIL WE START TALKING ABOUT FUTURE THINGS AND HAVE IT RE BID LATER THIS YEAR. I MEAN LATER THIS YEAR, YES. SO REDID YEARS A RISK OF REBID BEING MORE. THERE'S A RISK OF, UM THE MONEY GETTING TANGLED BETWEEN NOW AND THEN, AS FAR AS WHAT'S BEEN OFFERED, AND THAT POTENTIALLY ENCROACHING ON OTHER PROJECTS BECAUSE THEY'RE NOT SURE THEY'RE SPENDING THAT WITH US OR NOT. UH, I THINK THERE'S. THERE'S AN AWFUL LOT OF VARIABLES HERE. IT'S JUST A MATTER OF. HONESTLY. IF YOU JUST SWEEP IT CLEAR FOR A SECOND, IT'S DO YOU WANT IT TO BE? DON'T IS THIS A PRIORITY AT $1.3 MILLION, OR IS IT NOT? I THINK THAT'S HONESTLY WHAT IT COMES DOWN TO. QUESTION FOR YOU, MAYOR. IN ALL YOUR DISCUSSIONS WITH THE COUNTY. IF YOU TOLD THEM WE'RE LOOKING TO JUST PUT THIS IN NEXT YEAR'S BUDGET. DO YOU THINK THAT YOUR MARKET EARMARKS THAT FUNDING FOR US OR [01:45:01] YOU THINK IT'S STILL HAS CHANCES SLIPPING AWAY? I CAN'T SAY. I DON'T KNOW THE ANSWER THAT I'VE HAD A BUNCH OF CONVERSATIONS. TRYING TO FIGURE THAT OUT TODAY EVEN AND I DON'T HAVE A GOOD ANSWER FOR YOU. I THINK THAT THERE IS RIGHT. THAT'S WHY I SAID, I KIND OF MOVED TO NEUTRAL ON THIS. I THINK THERE IS A PATH FORWARD. THIS MONEY IS TIED UP FOR A LITTLE WHILE. THE GAMBLE IS THAT WILL THE RATES BE ANY CHEAPER? AND YOU KNOW, IN TERMS OF DELAYING THE PROJECT THAT'S DOWN THERE. YOU DELAY IT BY A YEAR DELAY. HALF A MILLION BUCKS OR SOMETHING IN TERMS OF PROPERTY TAXES. THAT'S LOST FOREVER IN THE CASH FLOW SENSE. UM. I WILL SAY IF THE IF THE COUNTY WAS HERE TO REPRESENTATIVE FROM THE COUNTY, I THINK THEY WOULD SAY WE PUT A LOT OF MONEY ON THE TABLE AND WE EXPECT YOU TO BUILD THIS ROAD AND THEY DID COME TO US BEFORE. AS YOU KNOW, WE COMMITTED TO COVERING THE RISK ASSOCIATED WITH RIGHT OF WAY ACQUISITION, BUT THERE WASN'T A COMMITMENT FOR BRIDGES ON THE ROAD. BUT HMM. THAT WAS SORT OF OPEN ENDED LIKE WE WERE TAKING THAT RISK TO FIGURE OUT WHAT WE WOULD DO WHEN WE GOT THERE WERE HERE NOW HERE AND THEIR RESPONSES THAT THEY PUT IN AS MUCH AS THEY INTEND TO. FOR THIS. SO IT'S STILL THERE. BUT WE'RE GOING TO RUN THE RISK OF EVEN MORE OF A RUNS LATER IN THE YEAR. UM BUT WE COULD ALSO CONTINUE TO NEGOTIATE AND FIGURE OUT. WE'VE GOT A WHOLE BUNCH OF ROADS ON THE DOCKET WITH THEM. AND WE COULD, YOU KNOW THAT'S OUR BOTH OUR BOND MONEY. AND THEN THE TRIP. 22 MONEY IS JUST AN ONGOING CONVERSATION OF HORSE TRADING IN THE MIDDLE TO FIGURE OUT WHICH ROADS AND WHEN AND WHAT PRIORITY . UH I CAN'T TELL YOU THAT THERE'S ANY MORE COMING, BUT I CAN'T TELL YOU THERE WOULDN'T BE SIMPLY DON'T KNOW. AND THE RIGHT THING THAT THE UNKNOWN IS DIFFICULT HERE, AND I DON'T IF WE HAVE TO REBUILD THIS IN SIX MONTHS, MY GUT TELLS ME IT'S GOING TO BE MORE AND THEN OUR SHORTFALL IS GOING TO BE BIG, AND IT'S EVEN WORSE IF WE HAD REPEATED IT IN TWO YEARS. THE COUNTY MONEY IS PROBABLY GONE BY THEN THE COST COMES DOWN. BUT OUR NEXT COSTCO'S SURE WELL, IT'S A REALLY TRICKY ONE. I'M STILL HAVING A HARD TIME SEEING 2.4 MILLION BALANCE AT FLORENCE AND NORTH THAT'S NOT SPENT NOW. IS ALL OF THAT GOING TO FAULT. YES UH, FOUGHT NORTH. UM SO THAT BRINGS YOU DOWN. ONE POINT NO 1.7. THEN YOU'VE GOT, UM. THE WATER LINE. UM, YOU GOT THE EVELYN INTERSECTION. SO, UM. YEAH, BASICALLY THE FLORENCE NORTH COVERS YOUR YOUR WATERLINE . WE'RE STILL GONNA NEED SOME ADDITIONAL MONEY TO UM TO COVER FOR THOUGHT NORTH. WE RENTED THOSE NUMBERS AGAIN. UM YEAH, YEAH, BASICALLY YOUR BUT NORTH COVERS YOUR NOW THERE IS A MILLION IN OTHER FUNDING. WE DID. IN 2023 THE CEOS IN 2023 THAT LAST ROW BEFORE YOU GET TO THE TOTALS AT ONE MILLION THERE. 2023 C. O S. THAT'S UM, THAT WAS FOR COST OVERRUNS FOR FLORENCE AND FOUGHT SO EXACTLY 3.4 THAT YOU'VE GOT FOR, UM VAUD IN THE WATER LINES, SO ROUGHLY, UM YEAH. THE FLORENCE SAVINGS, THE COST OVERRUNS FROM 2023 NOTES. WILL COVER THE EVELYN INTERSECTION NORTH AND THE FAULT WATERLINE. COUNSELORS UM, I'M [6. EXECUTIVE SESSION (Part 1 of 2)] GONNA RECOMMEND WE TAKE THIS TO EXECUTIVE SESSION ON A NEGOTIATION STRATEGY ON THIS RIGHT? SOMETHING OCCURS TO ME THAT I THINK MIGHT MIGHT. TRY TO SEE IF WE CAN FIND A WAY FORWARD ON THIS, BUT, UM WE CAN NEGOTIATE. WE CAN GO IN EXECUTIVE SESSION OF NEGOTIATIONS, CAN'T WE? DEVELOPMENT. I DON'T YOU COULD MHM ONE THAT YOU'RE HURT IF YOU'RE NEGOTIATING THE PURCHASE OF SOMETHING. UM HMM. TALKING ABOUT? NEGOTIATING WITH THE COUNTY. AND OR THE DEVELOPER. OH YEAH, I WOULD SAY WE COULD SAY IT'S NEGOTIATIONS BUT ALSO LEGAL ADVICE TO OKAY. ALL RIGHT. ARE WE COVERED? ALL RIGHT, THEN I WOULD RECOMMEND WE GO TO [01:50:04] EXECUTIVE SESSION AND I'LL LAY OUT AN OPPORTUNITY TO TRY TO FIGURE THIS OUT. WE STILL HAVE TO COME BACK AND MAKE A DECISION. IT ISN'T. I'M NOT GONNA BE ABLE TO GIVE YOU A PATH FORWARD. THIS CAN BE VERY CLEAR. BUT I'LL GIVE YOU A LITTLE BIT MORE THAN I CAN. IN A WAY WE MIGHT BE ABLE TO NEGOTIATE THIS LITTLE FURTHER, BUT I THINK IT HAS TO BE TAKEN INTO CLOSED SESSION IN ORDER TO DO THAT. GOOD ALRIGHT, IT IS 7 20 PM UNDER SECTION 551.71 DOT 72.87. WE'RE GONNA RETIRE INTO EXECUTIVE SESSION TO DISCUSS THE ITEMS ON THE AGENDA AND THIS ITEM THAT WE ARE TALKING ABOUT NOW I EXPECT TO COME BACK WHEN WE END AND HAVE TO MAKE A DECISION ABOUT THE BID. DO WE HAVE ANY OTHERS TONIGHT THAT WE MAY POTENTIALLY BE ACTING ON? ALL RIGHT? THAT'LL BE ALL THANK YOU FOR ATTENDING WITH US TONIGHT. APPRECIATE YOUR TIM TESTING. IT IS 7 48 PM WE'VE RETURNED FROM EXECUTIVE SESSION TO CONSIDER ACTION ON ITEM E. [5.E. Consider a Resolution of the Town of Northlake, Texas, awarding BI D 22-06 and authorizing the Town Manager to execute an agreement/contract with Ed Bell Construction Company for reconstruction of Cleveland Gibbs south, in an amount not to exceed $5,649,214.35 (Part 2 of 2)] COUNCILORS BASED ON THE DISCUSSION IN EXECUTIVE SESSION. DO YOU HAVE SOME DIRECTION FOR US AS TO HOW YOU WANT TO PROCEED WITH ME MAKE A MOTION TO APPROVE THE AGREEMENT AWARDED? 100 BEATING YOU FROM BUTTON, OKAY, BEATING MOTION. WHATEVER WE DID A BACKWARDS COUNSELOR SESSIONS. YOU HAVE EMOTION. YES. MAKING A MOTION THAT WE AWARD. WE'RE SICK. OKAY? ALL RIGHT. SO WE HAVE WHERE DO YOU 2ND 2ND COUNSELOR SESSIONS MOTIONS. SECONDED BY COUNCILOR BOYER. IS THERE ANY FURTHER DISCUSSION FROM THE COUNSELOR'S STATEMENT? YOU WANT TO MAKE ALRIGHT. I WOULD LIKE TO JUST SAY THAT I APPRECIATE GENTLEMEN WORKING THROUGH SOME OF THE CHALLENGES ON THIS ONE. WE ALL RECOGNIZE THAT BUILDING ROADS IS A HIGH PRIORITY IN THE TOWN AND, UH WELL, THIS ONE WAS A DIFFICULT ONE TO GET A STRATEGY TO GO FORWARD WITH. I THINK THAT WE WILL DO OUR BEST HERE TO CLOSE THIS GAP WITH OUR NEXT YEAR'S FUNDING. WHICH IS THE PROPOSAL MR MR CORNERS, PUT FORWARD AND PURSUE ADDITIONAL OPTIONS. AS AS AS I DEFINED AN EXECUTIVE SESSION, AND, UH, IN THAT CASE, THEN WE'LL MOVE FORWARD TO VOTE. THERE'S NO OTHER DISCUSSION. THANK YOU. ALRIGHT THE ITEM IS UNANIMOUS. NOW WE NEED TO RETURN TO EXECUTIVE SESSION UNDER [6. EXECUTIVE SESSION (Part 2 of 2)] SECTIONS. WHERE'S MY SECTION LIST? 0.71 DOT 072. 087. WHAT OTHER ONES? THAT'S IT ABOUT THREE. OKAY AND IT IS 7. 50 PM WILL RETURN TO EXECUTIVE SESSION IN GOOD. ALRIGHT [7. RECONVENE INTO OPEN SESSION] IT'S 8 25 PM WE ARE RETURNED FROM EXECUTIVE SESSION * This transcript was compiled from uncorrected Closed Captioning.